Estrategias de producción de textos escritos

Mark et Factors Produc t Factors _De mand Factors Sup ply

Factors Export _Perfo

rm

Network Factors

Representation in multiple countries

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Representation in domestic market

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International market niche

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Distribution in “low psychic distance” markets

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Distribution in “high psychic distance” markets

International brand recognition

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Foreign direct investment Regular travel to foreign markets

Internalised knowledge of foreign markets

Increasing number of foreign markets

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Unique selling proposition/s

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Inimitable technology and/or patent protection

Product line diversification/expansion

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New product manufacturing alliances

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Market/client customisation

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Demand for distribution rights/alliances

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Pull from end-users

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Repeat purchases/customer satisfaction

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Brand preference over generic preference

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High and stable distributor commitment Multiple supply options

High and stable supply commitment

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Responsive supply base

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Offshore manufacturing or materials sourcing Market dominance

High export intensity

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Sustainable profitability levels

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Global market coverage

Revenue protection through currency hedging

Long term growth prospects/plans

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Interaction with social network

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Interaction with end-user network

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Interaction with supplier network

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Interaction with industry network

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Interaction with previous employment network Interaction with professional services network

Even though there is currently no direct competition, revenue performance is fairly modest. However, the impressive product and demand outcomes together with the upward trend in revenue and export intensity, suggests that FF has significant expansion potential. Perhaps the greatest threat to this occurring is an over-reliance on Roanne’s

own inputs, together with a lack of reliance on others to contribute bilaterally. It would seem that this is a situation may lead to stagnation in sales or even business decline. The probability of this occurrence may be heightened by the “arms length” approach applied to relationships and an intense dislike for most forms of business networking.

…This business is me.

…[If I “dropped out” tomorrow, those taking over] would have a list of contacts.

They would have a list of sources and um and what else would they need? I mean I can point them in the direction of the factory ha ha….

[Networking]…it’s so boring, it’s all men…they ask all the wrong questions as far

as I’m concerned. They’re not really interested in what I do. They want to know how much money I’m making…I stay at home and see manufacturers and distributors when I have to…

It is suggested that FF’s internationalisation outcomes are largely due to product uniqueness creating demand pull. A heavy dependence is also placed on industry partners for manufacturing, promotion and distribution solutions, but under the auspices of market or unilateral governance rather than bilateral governance. Roanne’s input has been critical in the creation of a world-class product range. However the necessary expertise for other activities has been procured from external contractors. The next section explores the key relationships that FF developed before and during its internationalisation journey. In particular, it highlights how a unilateral form of governance and TCA relational mode are embraced in facilitating the achievement of foreign market objectives.

4.5.3 Relationships and Internationalisation

4.5.3.1 Key Relationships

Whilst internationalisation was not the first objective of FF, it was immediately clear given the method of operations employed in the domestic market and the non- consideration of capital expansion measures, that developing relationships with value chain participants would be critical to foreign performance. As FF comprises a sole working proprietor, its international progress has been absent of input from employees or financial partners. Even Roanne’s husband retains a distant and non-financial interest in activities, strengthening the observations made herein that a desire for business independence is paramount. Furthermore, self reliance was emphasised on a number

occasions during interviewing indicating that the development of relationships for the achievement of business objectives is neither easy nor immediately desired.

…I develop new product in the kitchen here. Actually I run it very cheaply. My office is upstairs and everything is contract manufactured for me...I did have a loan from the bank which I don’t have any more…

…my support in the marketplace is winning the hearts and minds of food writers and chefs and people like that who will promote my product by using it…

I don’t want to. I have no interest in it. I don’t want to employ people…it’s just too much of a nightmare.

…I’m a holistic person. I have to know everything before I embark on anything…I know it could be [a ten million dollar business in five years]. It’s entirely up to me.

As can be seen, the absence of a close internal relationship is not of great concern to Roanne and in her view is in fact advantageous. What assumes far greater importance is a manufacturing solution to meet FF’s stringent quality standards. Ironically, the choice of a manufacturer (a South Island firm that had extra capacity at the time) occurred within a week of searching, and it is an association which continues today. Because of an obvious unilateral mode of governance, the manufacturer’s responsibilities are kept firmly within the confines of the production process, with Roanne preferring to retain control over raw materials production and ordering. Interestingly, the desire to maximise product quality through managing the process herself does not seem to have translated through to being particular about the choice of growers.

…By that time I had a contract manufacturer who…is down in Central Otago and I still have them.

…this company that had this product which just hadn’t worked and therefore they had a whole lot of space…So within a week of looking for somebody, I had somebody.

[In terms of growers]…I choose whoever is available.

Appointment of both domestic and international distributors has also been critical to the development of the foreign market. Customers worldwide are able to order directly from FF’s sole New Zealand distributor4, an Auckland based business that has been contracted to manage an online sales portal for smaller volumes. However the main gains in sales have arisen from focussing on the US and in this market the bulk of activity has come from one large retail chain5. Whilst Roanne secured them “through a

4

The small number of New Zealand based retailers who also stock FF products are supplied directly by the manufacturer.

5

This analysis treats them as a distributor, because of their responsibility for ordering for hundreds of geographically dispersed outlets.

phone call”, and by undertaking the ensuing six months of compliance activities, this may not have occurred if the original publicity generated by NZTE had not taken place. It follows then that the subsequent securing of a West Coast US distributor may also be related to such publicity.

[XYZ retail chain] did the most amazing promotion of this product. They’ve got

these very beautiful stores and they have some kitchenware as well, but they have shelves and there would be three bottles there, three bottles there and three bottles there and then they’d develop recipes in their kitchen. They promote it in their catalogue which comes out quarterly…it’s pretty amazing really. And they also have it on their website.

…it’s so phenomenally big and the potential is just massive and I’ve had a fantastic response. I’ve got a distributor there [West Coast USA] and he said he was just completely bowled over…very high end stores…because of the publicity, because of the New York Times and Trade NZ…

…their involvement is not only as the agent, but they have a freighting company and so they can freight at a very competitive rate, and that’s very attractive to [XYZ

retail chain]. So it’s very fortuitous, they happened to be around when I was looking

for someone to give me some assistance…So now they have set up a distribution in the States as well…

FF experienced further good fortune when the main American client prompted Roanne to establish a relationship with their local distribution firm (who also had an office in Australia). The internal freighting service offered by this firm not only provided cost efficiencies but enabled Roanne to divest herself of challenging logistical responsibilities. These benefits forced her into the realisation of the importance of distributor interaction, and in fact provided the motivation for increasing investigations into the UK market. However again, these alliances are established with some reserve and even distrust of those representing her. Furthermore, Roanne’s limited knowledge of what is occurring in these main markets is further evidence of the distance she prefers to keep from them. It seems that unless potential relationship partners are themselves “foodies”, then they lack the credibility to be relied upon6.

…food area and he’s very interested and keen about food and that’s what I like so much about him. Distributors are often…I’m very wary, because they’re wanting customers, and they’re not really interested in anything else… just dollar signs. But there’s no reason why you can’t be in it for dollar signs and food if you’re in food distribution.

No, no, no, I haven’t actually got the list of all the people that are buying it, but I know that Dean and Deluca who are probably the most prestigious delicatessen in the world take my product. They’re in New York. I think that they might be in a few other places as well but I’m not sure exactly where. Just as well that I’m going in May. I’ll be able to find all this out….

Whilst the domestic market has not declined with the onset of international sales, activities to stimulate reseller interest have reduced. It was found to be too labour intensive and frustrating when the original Auckland distributor appeared to lack commitment to FF products. The relationship was summarily terminated by Roanne whereby her focus returned to international market development and sporadic sales visits to local retailers. The effect of this on New Zealand representation has been a small concentration of specialty food stores and supermarkets within Christchurch and lower South Island but little anywhere else.

…I don’t go to any markets now, whereas I could do that. There is lots more opportunity to sell apart from what I’m doing in the supermarkets. I mean I don’t even have - I had a distributor in Auckland who was absolutely hopeless so I hardly have an outlet in Auckland, because I focus on export.

…because I don’t have a distributor here, like in Christchurch I manage it myself, but anywhere else it’s important, it’s essential to have a distributor because they have to merchandise it and they make regular visits to the stores…

Perhaps the most influential relationships in the advancement of FF’s initial and ongoing internationalisation outcomes have been those of Support and EPOs. This is ironic given Roanne’s minimal attempts in developing these, reinforcing the notion that it is the strength of the product range which has compelled their involvement7. It is fair to say however that chefs and food writers are her “kind of people” and she is more inclined to foster these relationships over others. On other occasions unpaid8 support is called upon when required to assist with such things as bureaucratic mix-ups or deficiencies in export procedural knowledge.

…Peter Gordon is a real fan… thankfully and…his latest cookbook [has recipes]

using my product.

I really like talking to chefs. I like talking to people who know about food…

…I have a reporter, journalist coming…and am cooking lunch for a number of people…

…Trade NZ bought a number of bottles…to give to food writers and chefs in the States just to kind of promote New Zealand…

…I’ve kind of done it differently. I’ve spent very little on promotion. The way I promote is by packaging and what’s in the bottle…

It did give me a panic, so I got on the phone and…I had a barrister in Wellington. I rang the local MP. I rang [the Minister of Trade and Industry]. I spoke to… an exporter who helped me with all the business of getting the stuff to America…So we all came down on New Zealand Food Safety and they panicked and they got the NZ Consulate in the States to approach USDA…

7

FF has increased its profile with EPOs by receiving food awards from internationally recognised institutions.

8

…they were absolutely impossible. They are a bunch of the crappiest bureaucrats you’ve ever come across. It was just extraordinary and what really surprised me was that they had no will whatsoever to make it happen for me.

…I don’t think they quite realised who they were taking on. They didn’t realise the strength of my will.

As is shown, Roanne is not beyond being adversarial with those that she perceives to be hindering FF’s performance. Whilst this same disdain is not extended to EPOs, she assesses them overall as adding little value to the small exporter, with the exception of the Los Angeles office of NZTE and other more industry specific organisations.

…I expected something more than that and I just found their approach to be so unprofessional and I decided to do my own thing. But since then, Rachel who is based in Los Angeles, she is, in fact their whole office…are really interested in food and I’ve just had tremendous support from them…

…I had approached them for information on markets [in the US] which I found to be highly unsatisfactory quite frankly…I think they’re too general…

[For the inquiry regarding Germany] they got a Trade New Zealand guy to wander

up and down the aisles of a supermarket and they were going to ask me to pay for that and I said ‘that’s ridiculous!’…

…I’m a member of Organic Producers and Exporters New Zealand who have taken a space at Biofair, which is the biggest organic food show in the world...[Their

representative has] taken my product, promotional materials and he’s going to do a

report, so that’s pretty good.

Given that FF is selling a range of low value consumer goods albeit at an upmarket level, interaction with end-users is somewhat nominal. However, Roanne does derive value from consumer feedback such as website postings of recipes. The purpose here is to generate a consumer sub-culture encouraging communication but ultimately promoting purchase. Overall, it is the responsibility of retailers and in some cases distributors to respond to end-user communication. The commissioning of an Auckland online gift firm to market her range directly is a manifestation of this strategy. One exception to this approach though, is the face to face interaction which occurs when potentially large clients (such as a hotel chain) demand it.

…I get a huge amount of emails, particularly from America. Especially when [XYZ retail chain] ran out of product.

…I would prefer [less contact with end-users] - I now have online a gift business in Auckland who will sell it online.

…I had an enquiry yesterday from…the most extensive chain of hotels in the world and the executive chef through Trade New Zealand has requested samples…I’m having to investigate this right now. This kind of thing takes up a lot of my time…

4.5.3.2 Governance Form and Relational Mode

FF’s continuity centres on the guiding principle of “remaining true to the ingredients” and this in itself reveals a profound insight into the relational style employed. Whilst Roanne considers her contract partners to be “friends”, she chooses not to bond with them on a social or emotional level, and finds activities beyond that of experimentation with recipes and the solicitation of “foodie” responses to be tedious. This finding is somewhat concealed by the internationalisation success experienced to date, but it is suggested that a less than unique product would not have yielded the outcomes achieved. It is not proposed here that proportions of success can be assigned to product or relationship factors, although Roanne’s employment of a unilateral management approach does indicate the former carries more weight.

I can manage it very well. I have a contract manufacturer. I have people who make labels for me, people who make cartons for me. I buy bottles, I buy lids, I use a graphic designer, I use a professional photographer to photograph these images here. I use a lot of different people, but I can do all that outside.

If product quality is of paramount importance, then the manufacturing relationship assumes no less significance. It seems that FF is committed to the present manufacturer given the longevity of the connection to date. However, the years of interaction have not engendered a high degree of trust or bilateralism. For instance, when a problem occurred threatening a production deadline, although immediately communicated to Roanne, she arrested control of the situation from the manufacturer. Other episodes that would usually be the sole domain of the manufacturer were treated in a similar manner. On the face of it, it does not seem that the manufacturer’s competency is in question. In fact the advance warning given would indicate the converse to be true. Roanne’s unwillingness to trust that the right outcome would be achieved is the more likely explanation. After making a significant effort to organise, transport, feed and accommodate a “truckload of university students” to fulfil the order, Roanne eventually found that the manufacturer had sought and implemented a solution as promised.

…We had a timeframe. The manufacturer, the manager of the factory…rang me three weeks before the shipment was due out and said, ‘Roanne, we can’t do it’. And I said, ‘Fred, we can’. And I said ‘what will it take’ and he said ‘look we don’t have enough staff [at the moment] but leave it with me’… but I ignored that… …this was about putting labels on, because all the labels are hand applied. Every single label, they had a template where the label was to go on the bottle…and one thing I stressed [was that] the labels had to be absolutely straight, and they had to be in exactly the same position on every single bottle…that’s what I told the factory.