The resilient character of PDO/PGI products in dynamic food markets

The European and Italian food system is experiencing a change in the relationship with the consumer and with the distribution. In fact, customers are increasingly demanding, and are attracted, by products that have high quality content and a strong link with the territory. The brands with the price are the two factors affecting the strategic policies of the food producer firms. At the same time, the retail system has proven to be very sensitive to consumer demands by providing quality products at competitive prices and using their brand as an element of loyalty. In the European context, the Italian agri-food system has the higher number of products with the Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) recognition. However, 90% of PDO products are represented by only 15 Designations. This figure shows how different types of products find a much diversified business position in relation to the firm’s characteristics, to the markets characteristics, to the reputation of the Designation and to the consortium strategies in relation to their commercialization. The objective of this research, based on observed data collected through the survey of QUALIVITA Association, is to provide an exhaustive picture of the economic characteristics of the Italian PDO, PGI Designations and define a typology of such Designation according different set of variables as production system, reputation level, role of the territory and distribution channel. The ultimate goal is to determine the strategic levers taken at the marketing stage and to identify which factors clarify their potentiality on the market. The methodology adopted for the quantitative analysis is based on non-hierarchical cluster analysis by the method of k-mean in order to identify clusters of similar designations which explain what variables act on the various strategies adopted and on the related development processes.PDO/PGI, quality, modern distribution, cluster analysis, marketing strategies, development processes, Agricultural and Food Policy, Marketing,

Geographical Indications, Differentiation Strategies and Policies for Consumers

Il presente lavoro si pone un duplice obiettivo: analizzare il contesto dei marchi di origine in Italia e indagare la domanda e l’offerta di Prosciutto di Parma DOP. Per raggiungere questo scopo la ricerca è stata organizzata in tre parti: la prima, attraverso l’articolo “The resilient character of PDO/PGI products in dynamic food markets: the Italian case” (Arfini e Capelli, 2011), si propone di fornire un quadro esaustivo delle caratteristiche economiche delle denominazioni DOP e IGP italiane, tramite una analisi approfondita dei dati Qualivita, e di identificare gruppi di denominazioni simili, sulla base di determinate variabili, con l’intento di illustrare le strategie di ciascuna denominazione e valutare la loro potenzialità sul mercato. La seconda parte della ricerca, proposta con l’articolo “Group heterogeneity and cooperation on the geographical indication regulation: The case of the “Prosciutto di Parma” Consortium” (Dentoni, Menozzi e Capelli, 2012), cerca di comprendere come le differenti caratteristiche, risorse e strategie dei singoli membri del Consorzio Prosciutto di Parma DOP influiscano sul livello di cooperazione per la definizione della futura strategia per l’indicazione di origine. Nello specifico questo studio intende approfondire il tema attraverso una analisi qualitativa del Consorzio ed una quantitativa (Path Analysis) sulla base di una indagine a cui hanno partecipato 94 aziende consorziate. Infine l’ultima parte, attraverso il lavoro “Consumer willingness to pay for food quality labels: the case of “Prosciutto di Parma” PDO” (Capelli, Menozzi e Arfini, submitted), intende analizzare l’importanza data dal consumatore all’indicazione in etichetta di alcuni attributi legati alla qualità, emersi durante la fase di analisi dell’offerta, e comprendere le preferenze del consumatore e la sua disponibilità a pagare per l’ipotetica introduzione di un nuovo marchio “Alta Qualità” nel disciplinare di produzione del Prosciutto di Parma. A tal fine, è stata così condotta una analisi qualitativa (mediante un focus group e una serie di interviste in profondità) per conoscere il comportamento di acquisto del consumatore di Prosciutto Crudo di Parma DOP, ed una quantitativa attraverso un esperimento di scelta Choice Based Conjoint – CBC su un campione di 250 consumatori. Alla luce di queste valutazioni, il presente lavoro si propone di analizzare e sollevare spunti di riflessione per i membri del Consorzio Prosciutto di Parma DOP, al fine di formulare una futura strategia comune adeguata e attenta alle esigenze dei consumatori.The objective of the present work is twofold: first, to analyse the context of the designations of origin in Italy and, secondly, to investigate the demand and the supply of the Prosciutto di Parma PDO. To achieve this goal the research was organized into three parts: The first, through the article “The resilient character of PDO/PGI products in dynamic food markets: the Italian case” (Arfini and Capelli, 2011), aims to provide a comprehensive picture of the economic characteristics of the Italian PDO and PGI, through an in-depth analysis of the Qualivita data, and to identify clusters of similar designations, based on certain variables, with the intent to illustrate the strategies of each designation and evaluate their market potential. The second part of the research, namely “Group heterogeneity and cooperation on the geographical indication regulation: The case of the “Prosciutto di Parma” Consortium” (Dentoni, Menozzi and Capelli, 2012) aims to understand how the different characteristics, resources and strategies of individual members of the Prosciutto di Parma PDO Consortium affect the level of cooperation on defining the future strategies of this Geographical Indications (GIs). Specifically, this study aims to explore the theme through a qualitative analysis and a quantitative path analysis of the Consortium based on a survey which was attended by 94 members. Finally, the research "Consumer willingness to pay for food quality labels: the case of "Prosciutto di Parma" PDO" (Capelli, Menozzi and Arfini, submitted) aims to analyse the consumer's perception of some attributes related to quality, which emerged during the previous phase, and estimate consumer preferences and willingness to pay for the hypothetical introduction of a new "high quality" label within the Prosciutto di Parma PDO specification. To this end, it was conducted a qualitative (through a focus group and in-depth interviews), and a quantitative analysis through a choice experiment (Choice Based Conjoint – CBC) on a sample of 250 consumers to understand their Prosciutto di Parma PDO purchase behaviour. In light of these assessments, the present work aims to provide food for thought to members of the Prosciutto di Parma PDO Consortium, in order to develop a common future strategy adequate to satisfy the consumer needs

The resilient character of PDO/PGI products in dynamic food markets

The European and Italian food system is experiencing a change in the relationship with the consumer and with the distribution. In fact, customers are increasingly demanding, and are attracted, by products that have high quality content and a strong link with the territory. The brands with the price are the two factors affecting the strategic policies of the food producer firms. At the same time, the retail system has proven to be very sensitive to consumer demands by providing quality products at competitive prices and using their brand as an element of loyalty. In the European context, the Italian agri-food system has the higher number of products with the Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) recognition. However, 90% of PDO products are represented by only 15 Designations. This figure shows how different types of products find a much diversified business position in relation to the firm’s characteristics, to the markets characteristics, to the reputation of the Designation and to the consortium strategies in relation to their commercialization. The objective of this research, based on observed data collected through the survey of QUALIVITA Association, is to provide an exhaustive picture of the economic characteristics of the Italian PDO, PGI Designations and define a typology of such Designation according different set of variables as production system, reputation level, role of the territory and distribution channel. The ultimate goal is to determine the strategic levers taken at the marketing stage and to identify which factors clarify their potentiality on the market. The methodology adopted for the quantitative analysis is based on non-hierarchical cluster analysis by the method of k-mean in order to identify clusters of similar designations which explain what variables act on the various strategies adopted and on the related development processes

Heterogeneity of Members’ Characteristics and Cooperation within Producer Groups Regulating Geographical Indications: The Case of the “Prosciutto di Parma” Consortium

Several studies have analyzed the conditions under which geographical indications (GIs), such as the European Protected Designations of Origin (PDOs) and Protected Geographical Indications (PGIs), can represent a profitable market opportunity for agri-food producers. The development of a common set of rules by a group of producers and the governance of the collective brand are key issues to jointly exploit market opportunities through GIs. This paper explores whether heterogeneous characteristics, resources and strategies of individual producers within a PDO Consortium influence their level of agreement on the future of the collective regulation and governance of GIs. We conduct an in-depth study on a representative sample of firms member of the “Prosciutto di Parma” PDO Consortium by integrating a multi-variate statistical analysis with a qualitative description of the vision that companies have for the future of their PDO. From the results of this study, we found confirmation that “Prosciutto di Parma” PDO Consortium members have highly heterogeneous characteristics which lead to significant segmentation in two major groups. The first segment includes a large number of Consortium members, mostly constituted by smaller firms, producing mainly PDO-labeled “Prosciutto di Parma”. The second is composed by a group of larger companies focusing on production of generic hams without the PDO-label. This difference clearly affects the level of agreement on the future regulation of "Prosciutto di Parma" as GI. The first segment advocates for the establishment of a “high-quality” PDO or for a PDO with stricter controls and standards, while the second would prefer that a PGI label was introduced, either in substitution to or parallel with the current PDO. Results, although explorative in nature, show that group heterogeneity influences the level of cooperation among the members of a producer group regulating and governing a PDO. Therefore, this study provides evidence that increasing group heterogeneity may represent a new challenge for the sustainability and profitability of GIs

Consumer willingness to pay for food quality labels: evaluating the prosciutto di parma PDO quality differentiation strategy

This poster paper aims to investigate the consumers’ preferences and willingness to pay for different quality strategies associated with the designations Prosciutto di Parma PDO. After a qualitative analysis, an on-line choice experiment was conducted on a sample of 250 Italian consumers. A multinomial logit model was tested to assess the relative importance of quality attributes. The results show that price, a “high quality” PDO label and the ageing period are the most important attributes for consumers. These findings provide Consortium members with an important food for thought for the development of future strategies for the Designation of Origin