MARKETING PRODUCE.

Hauraki Plains Gazette, Volume XXXIV, Issue 4593, 3 August 1923, Page 1

MARKETING PRODUCE.

A SCIENTIFIC BUSINESS. APPLICATION IN NEW ZEALAND. A good illustration of the importance attached to' the science of marketing was given, by Mr A. J. Heignway, of the executive staff of the N.Z. Co-op.. Dairy Co., Ltd., at a meeting of suppliers recently. He had been informed, he said, by one of the heads of Messrs Swifts, Ltd., of Chicago, that that organisation deliberately incurred a high overhead expense every year in acquiring information relative to marketing outlets. In their head office in Chicago they had one big room, upon the wall of which a huge map of the whole railway system of the United States showing all the main towns and cities. Into this room daily came weather reports from every area covered by • that, map. These were carefully tabulated and applied to commercial pursuits. Whenever it was found that a cold snap was developing in a certain area, or that a blizzard was expected throughout certain territory, steps were immediately taken by telegraph to divert three or four or more trainloads of meat from the nearest distributing centre, so as to have there ready for the demand that extra supply of meat which a cold snap always calls for. This high degree of marketing skill was found of great value by the company, and had contributed in no small measure to its sound financial position in the course of, the recent slump, which had seriously affected other organisations not so well controlled. It was simply the knowledge gained by organisation which enabled it to successfully market its products. In the same way the time had already come when the New Zealand producer had to apply marketing skill to his business, said Mr Heighway. The tremendous expansion of the past four years meant, that New Zealand to-day was supplying Britain with between a quarter and a third of all the butter imported yearly by .her. In addition we supplied Britain with half the cheese she required yearly. The essential difference between New Zealand and Denmark in this connection was that the Danes aimed at levelling their production throughout the whole 12 months, whereas New Zealamd worked primarily in accordance with the seasons, and, consequently, towards the epd of our producing season very heavy shipments fell upon the English market. These heavy shipments produced a temporary over-supply, which reacted in the direction of slump prices. The only way to prevent such periodic slumps was to widen the area of marketing and develop alternative centres of distribution or alternatively lengthen the, period of sale. The solution of the problem would be found probably in the development of both ideas. The N.Z. Dairy Company had laid the foundation of profitable marketing areas in America and the East. Arrangements had already been made for sending regular supplies to New York, carrying sales into Canada and Honolulu, and perhaps even more import ant still, attention was being paid to developing trade in the East —China, Japan, and Java. From this work very definite gain was expected in future years, and this emphasised the point that it was only as the producer applied to marketing metnods of big business that he would secure the fullest possible return for his produce. The producer had the power to improve marketing if ho coul'd exercise it, and it would be proved by experience that it could most definitely be exercised only through big commerical organisations such as had already been built up in the South Auckland province by tire producer himself.