The regional meat producers' way to the market

Abstract: Siljans Chark and Konsum Värmland cured meats and provisions factory are small-scaled meat producers that market their products with "the regional concept". As the centralization is increasing in the food retail chains, it is becoming more difficult for companies like these to succeed. The two companies in question however, have been successful with the regional meat concept on their individual, regional markets. The purpose of this thesis is to identify the factors that determine whether a company with the regional concept as its marketing strategy will succeed or not. There are several companies using this strategy, but the degree of success has been varying. It is therefore interesting to examine the reasons behind the success of these two companies. By using Supply Chain Management, SCM, and a number of hypotheses consisting of key words that can be perceived as important in a firm's business relations, the report sets out to determine what makes a company succeed or not. Several relationships are examined, primarily those with farmers, retail shops and consumers. Supply Chain Management is a way of thinking – flow thinking. Three large flows go through the production and distribution chain: financial, information and physical flow. The interviews presented in the empirical part are based on the key words and SCM. To get a complete picture of the problem at hand, interviews were made at the two cases study companies, in the shops with shop managers, consumers and distributors. The analysis shows that there are some similarities between the two case companies, even though they have different prerequisites. Siljans Chark is a limited company, were a number of farmers in Dalarna are the major stockholders, while Konsum Värmland is a consumer co-operative business outside Coop Norden. Flow thinking seems to be something both companies find important. Konsum Värmland has advantages in being independent with its own distribution central and shops. Siljans Chark relies on its good reputation and the credibility it has developed over the years. An important factor in both cases is the regional patriotism. It is widespread in both Värmland and Dalarna, and makes the consumers less sensitive to the price of product, when buying a regionally produced product. The consumer feels solidarity and security and the fact that it offers job opportunities appeals to the consumer. It is not likely that the penetration power would be as great in other parts of the country. The added values the regional products possess have to be elucidated and developed constantly. They also have to be communicated to the consumers. The shops need this information too, to maintain their interest in selling the products. The shops have to receive economic advantages when selling these products. That includes not only profitability per produced unit, but also the fact that the products attract a customer stream to the shops. The good image the regional producers have can be transferred onto the shops and they can improve their reputation among the customers.