Sales Strategies for Eggs and Special Brand Eggs in Japan II. Structure of Production Market Strategy of Special Brand Eggs

일본의 계란 판매전략과 특수란 II. 특수란의 생산과 판매대응

The features of special brand eggs are growing more and more diverse and it is hard to draw a clear distinction between these and ordinary (no-brand) eggs. Special brand eggs range from those with objectively recognizable characteristics to those given only an unsubstantial product image and price differentials are among them great, too. The relation between product features and prices is unclear. Special brand eggs are the commodity whose characteristics are the vaguest of all livestock products. Farm's brand eggs produce a high profitability to producers is they are directly sold to consumers, by, for example, home-delivery service. But if they are sold to supermarkets, etc., producer's (poultry farmer's) income becomes lower by the amount of distributors' margin, reducing the profitability substantially. Thus how to increase the ration of retailing is important for farmers to secure a high profit. The sales strategies of poultry are the combination of two elements, that is, new product development (product differentiation) and creation of new market. But it is difficult for special brand egg producers to develop products with clear characteristics (use value) distinct form ordinary eggs and so these producers depend on the factors of appearance, such as the color of egg shells and package. Special brand eggs manage to keep their marketable value by the combination of the few product features and product image. Thus NB eggs from feed producers have a great market-ability since they can take advantage of the power of patents and TV commercials. However, market differentiation affects profitability much more than product features and price gaps are very wide between directly sold and wholesaled eggs. The producers of special brand eggs have come to the turning point where they have to decide whether they will content with being the subcontractors for NB and PB eggs or they will continue to keep their independence in production and marketing.