THE NEW ZEALAND MANUFACTURER.

Taranaki Daily News, 12 November 1921, Page 11

THE NEW ZEALAND MANUFACTURER.

HIS LOCAL MARKET. To-day’s Great Opportunity for Securing a Still Larger Share of the’ Trade of the Dominion and How to .Get it. (By J. M. A. ilott, of .1. Hott Ltd., Advertising Agents, Wellington.) At no period in the history of the Dominion has the time been more opportune for the New Zealand manufacturer to secure a large share of the trade of the community than at the present; moment. Before the war his, position in many lines was most difficult. The imported article held pride of place, and a large section of the community werestrongly prejudiced in favor of the product which came from overseas. One of the difficulties in overcoming this prejudice was the ■faet that &o many retailers insisted- that the manufacturer who supplied their wants should remove' his own labels or brands —and should mark them “Specially made for Blank and Blank.’’ In some instances, dire again to the fact that the public generally viewed the local article with disfavor, the actual product of the New Zealand manufacturer was sold as am imported line. The writer can w^ell-re-member visiting the office of a pe-’sohal friend —one of the leading business mem in Wellington. During the interview .a parcel was delivered to him, and lie: opened it and produced a really beaut i-: fully made pair of boots. These bore ft brand which had no direct connection/ with Now Zealand. lie mentioned witn prj.de that he had bought.these from a well known local retailer, and stressed the fact that there was no boot to equal those made In America. The writer happened to know something about the boot in question —it had been produced at a Christchurch factory—and his friend was astonished to learn that the article which he had admired so much and which he had purchased in the full belief that it had been made in one of the large shoe factories in the United States, had actually been produced in New Zealand. Indeed, he was quite incredulous for some time, until further evidence showed him that the article in question had been made by New Zealland workmen and in a. New Zealand factory, hut that his attitude and that of tens of thousands of others made it necessary for the manufacturer to brand it thus.

The war has changed this attitude largely, however. For some years much of the Dominion’s requirements has been largely supplied by New Zealand manufacturers. The public has been aware of this fact ,for it knew it was not possible to import many lines which, in the past had coine into New Zealand in large quantities. The average New Zealander will now freely admit that in many lines the manufacturers of ,|he Dominion can turn out articles of just as high quality as any which come from overseas. This has entirely altered his view point, while the difficulties which existed in connection with the retailer have also been lessened very greatly for similar reasons.

The time has arrived, however, when the ball is no longer at the foot of the local manufacturer. The enormous flood of importations has entirely changed the situation.. The reason why the warehouses and shops of the Dominion have been so heavily overstocked is wellknown. The fact remains that there is a huge stock of imported articles which compete with the local product, andi both retailers and wholesalers will not spare time nor effort in the endeavor to. shift them from their shelves into the bands of the consumer. This means that the favorable attitude of mrnd created through the fact that New Zealanders have bought and used New Zea-' land made products for some years past, must slowly but surely change. The man who has worn New Zealand boots for some years, but who has been induced to purchase an Australian boot which gives him equally good service, is ■ much more likely to remember the satisfaction secured from his latest purchase, particularly if nothing is being done to keep the merits of the New Zealand product before him. It must be remembered that the fact that an article is of good quality and is sold at a fair price, will not in itself ensure large sales. The preference of the buying public is another important •factor,’and it is ohe to be considered: seriously.

The writer has just returned after spending -some four ihonths at his Sydney ofljees, and was struck with the marked difference between the conditions prevailing in New Zealand and Australia. The average Australian — whether consumer, retailer, or wholesaler—is a whole-hearted and enthusiastic supporter of any product made in the Commonwealth. Quite 4part from the considerations of- tariff, a number of overseas manufacturers have found that local sentiment so strongly supports Australian made goods that it has been essential for them to come to Australia and manufacture locally in order to maintain the demand for their products —in view of the competition ot local brands.

Not only does this support of the local manufacturer extend to the trader and the consumer, but it is equally strong in the Legislatures. A marked feature of the debates in the Commonwealth Parliament was the extraordinarily strong prejudice exhibited there in favor of the local manufacturer by members of all parties. There are, of course, many reasons which account for this state of affairs, but one of them undoubtedly is the fact that the Australian manufacturer is proud of his product, and that he has been far-sighted enough to see that education of the public mind by means of advertising is one of the essentials to maintain his market and develop his business. / Large advertising allocations are made each year, not only by individual firms, but also by groups of associated manufacturers. Year in and year out. various associations have recognised that they must acquaint the public of the facts regarding their respective industries, and money has thus been allocated regularly towards aggressive and persistent advertising. rhe splendid results of this policy were particularly noticeable in May last, 'ri’ en Manufacturers’ Week was held in Sydney. The windows of almost every important retailer were entirely given over to displavs of Australian made products, covering every possible article from paints to perambulators, woollens to proprietary remedies. U onderfullv effective window shows oi locally produced articles were made by the huge departmental stores—-lanner> , David tones’. Hordern's, Eoy's an- by scores of others. The newspapers as -sisted with special issues dealing with local industry generally, while every journal contained scores of advertisements tolling the public of the merits of locally produced goods, and why tne Australian should purchase an Australian made product. .» L.iuilar methods must be employed A

the New Zealand manufacturer is to his fair shalje of tbe trade of tl.ie Dominion. Advertising must be utilised—the consumer must be told why he should buy New Zealand made goods, and. the reason* product must- ba .advanced consistently and persist'entty; The lack of orders and consequent unemployment now existing in so many'industries could be used _as...the keyjioie a . really strong | series of advertisements telling Maorflanders why they should support the products of the local factory or mill. It may be argued by some manufacturer who reads this that the amount he could spend in advertising the products of his comparatively small factory would not enable him to make a sufficiently strong appeal. In reply, it must be remembered that it is always possible for him to concentrate his expendt-tui-e into some specific territory which he caii develop most efficiently. Having i<uill his business j effectively in that district <he can then add territory after territory to his. field of operations until eventually he is covering the Dominion as a whole,. This is known as the zone plan, and it has been employed successfully by some of the largest and most successful advertisers of to-day. Starting in a small way, they concentrated their advertising -expenditure into a specific -district, and gradually extended their operations until the Dominion was covered. Another way in which the disabilities of* th? small manufacturer eafi be oveicome rs by means of groihp ad%’'ertising. This has been used with marked effect by many trades in tire United States and Canada, in the Hoittchmd and in Australia. TTobably • rttany readers' 'iof these pages have • seen t'he adverti-fiie-ments '«on bchaif of th'e ScottisSl Woollen Manufacturers’ Association. This Association is skid to have allocated ■CSO,O(N) for advertising during 1921, and the bulk of this sum was spent in “the newspapers of the Motherland. Strong and .efi’ective advertisements are. being used in a long list of journals, and the campaign provides continuous advertising t hroughout the Twelve months. Another very interesting campaign,’ which is running in England just at thq present time is that on behalf of the' Associated Straw Hat Manufacturers. This trade group was faced with exceptional difficulties, and it wdm felt that they could best bp overcome by each manufacturer contributing to an advertising fund, based on a fair ratio of contribution, the ~ entire sum being utilised in newspaper advertising. The advertisements tell why straw hats should be worn, particularly the British straw hat. They dp not refer to any'individual brand, but endeavor to stimulate the purchase of straw hats generally. and particularly to convince th l reader that it is essential that the straw hat which he purchases is of British manufacture.

The group advertising for Irish Linen is another ease fri point. Some three or four years ago the various linen manufacturers in Ireland ranre to the conclusion that advertising was essential in order to stimulte the demad for their products. Some of them still conduct individual campaigns, but in addition to these they contribute in conjunction with all other linen manufacturers to a fund which is expended in advertising Irish linens generally. The campaign is. conducted in the name of -the Irish. Linen Society, and very large sums of money are being spent. in newspaper, And trade paper advertising in Ejigland and also in the United States and Can- ’ ada.

Of special interest to our manufao-, turers is the advertising campaign which is running this year on behalf of the Shoe Manufacturers’ Associations of Canada. This group of Canadian traders is placed in precisely the same position which faces many New Zealand manufacturers to-day. A huge qrjan•tity of imported boots had been brought into Canada, while the so-called “Buyers Strike’’ commenced operations at ab'enit the same period. It was felt that there was danger of wreckage in W' l3 industry which employs some 70,000 workers, so the Committee of th? Association met ami decided that an advertising campaign was imperative. A levy was agreed upon which enabled every manufacturer to contribute his quota towards the fund as a whole, and the money was expended in large and effective newspaper advertisements address-, ed to the Canadian buyer, and stressing, the reasons why he should purchase only boots and shoes which had been made in Canadian factories.

The general attitude of the American manufacturer towards advertising is markedly more sympathetic than thatprevailing in the Alotherland, and in British Dominions, -and therefore.the examples which . have been quoted in this article have been those of operations on behalf of manufacturers of the British. Empire. Mnay similar instances could be quoted from the United States— showing how the members of various associations of manufacturers have got. , together, each paying his share towards a general advertising canipaigp. -designed to develop the demand for the products of that particular industry. In this connection it is pleasing to. note that /the first group advertisement which has appeared in any paper in New Zealand takes the form of a three column announcement in the Lyttelton Times of October 8, where a large display appears on behalf of the Christchurch Boot Manufacturers. Sound Arguments are given why the people of Canterbury should purchase the products of the Christchurch factories. The only weakness in the announcement is the' fact that the names of the leading brands of the various factories are not given in the advertisement. Much of the activities of the New Zealand manufacturers have, in the past, been devoted to the question of tariffs, but the point cannot be too strongly stressed that protection against the imported article is only one side of the problem. This in itself will not create demand except on the basis of price. The public must be taught to ask for the New Zealaiid article, and to ask for it by name. The wholesaler and re-j tailor must be educated—they must bo shown that it is to their advantage as well as to the advantage of New Zea-, land, to assist the New Zealand manufacturer by giving his product every possible assistance, and this alone can be clone by educative work through means of advertising in the trade and through the mails. Too often the New Zealand manufacturer forgets that while his market is comparatively small, nevertheless it offers many special advantages. The purchasing power per head is higher than that of almost any other country in (he world, while the small percentage

of illiteracy’ means that his appeal is much more likely to secure results than in older countries which have not these advantages. Another factor of assistance to him is the really high standard of the newspapers of the Dominion. Some years a«n» Professor Earl Williams, one of th? world’s greatest authorities on journalism. visited practically every country a.nd examined the newspaper situation in each. His report reviewed the newspapei' press of the world and expressed the opinion that the New Zealand jour-

nals coiilcl more than hold their own with newspapers published in any other •Gounti’y. Lord Northeliffe will be recognised as a competent authority; he said at Brisbane on Wednesday, October 5, 1921, that: “The newspapers of the Empire were the .best -in the world, and the New Zealand Press the most wonderful in the world.” Tht?fG Is scarcely a home in the Dominion which does not take a daily paper, and the advertising columns of these journals offer an exceedingly effective medium for telling the New Zealand family .why it should insist on purchas* ing Dominion made products. • - -It should nfct -be a difficult matter for a group of New Zealand manufacturers in_ any one industry to get together and to arrange a scale of contribution based on a small percentage of the output of each, individual firm. This would give a really substantial fighting fund which could Weft be Utilised in telling the merits of the goods. This fund should be .placed in the. hands of a competent advertising agency, which in turn will •work out a plan of campaign -for the educaticn of the consumer, and Will also suggest ways and means for securing -the assistance of the retailer and whole saier. The day has passed when the value of advertising cab be questioned. One has only to point out the many examples where the most largely selling product in the trade is the one most consist--en44y- -ami insistently- advertised. In., quite a number of instances it is the manufacturer of the imported line who realises the value of publicity, and his advertising campaign has been maintained year’in and ye&r out. A signal example of’tliTs is to be seen in the case of one of the clients of myfirxn—Messrs. Cadbury Bros*. INZ2.) r Ltd., Manufacturers of Bournville Cocoa. If ever a product was put on ar'4nark<?t by means of A advertising .it really fine brand, for most of us can remember the time the .c.oc.pa with tlie largest sale in ,lj7ew Zealand was not Bournville, but another brand—and it. was not very long either. A high quality article,. British made and at the . right price, ~ backed by the Cadbury reputation, and assisted by a well conceived and carefi’nlf planned advertising campaign put Bournville in the best seller class in, double quick time. Then came the war —and the decision of the British Government that the needs of the boys in and of the folks in the Mojhetkind must take precedence; and hence came the order that no Bournville Cocoa could be exported—all of it was required jfor war needs. It’s fine to think that one’s business is so import- -! anfc.'-.timt its products are deemed essential to the nation —but it’s mighty . uncomfartable for the—branches. in New Zealand and overseas who must have supplies to. fill orders. This was the situation that faced Messrs. Cadbury Bros. (N.Z.), Ltd. Tens of thousands of pounds had been spent in advertising in New Zealand to build up sales for an article that could no longer be supplied. But how differently the situation Was faced. Realising that the advertising that built sales could keep the brand in the mind of the consumer even Though the goods could not be purchased} and advertising expenditure was. authorised for the .express purpose of ; teljing. folks why th? Cadbury products were not . procurable, and asking them to remember and purchase Bournville Cocoa when available after the war. It takes., .two ' things to authorise a cam- ’ pa'i'gn this —the first is COURAGE 1 J_l write the Word in capital letters--the second is knowledge —realisation of the value of advertising—of its place in' 'maintaining as well as in creating goodwill. What has been the result? After the wai* was over Bournville Cocoa came on to the New Zealand market again, and came to the top at once. What many had said was a foolish and needless ' exiienditurt— ‘consistent advertising at a time when not a single tin of the article could be bought —had kept the brand In the mind of the housewife, with the result that it almost immediately bounded again to pride of pldce in sales.

The moral should not be lost on the manufacturer of New Zealand articles for the Bournville story is but another instance of the fact that price is not the only consideration to be taken into account. Bournville Cocoa is certainly not the cheapest cocoa on the market, but despite tkis handicap it is the brand with the largest sale.

The New Zealand manufacturer faces a critical period in his history, and it will be interesting to see whether he will realise that conditions aie changed, fie must sde to it that his selling campaign includes an allneation providing for the education of the consumer by means of adveftieemehts telling the purchaser why the article should be bought. -If .he- does not do „so it. is .quite certain that tariff walls alone will uot prove sufficiently strong to help him to l secure the major share of the trade, for despite tariff disadvantages . a large portion of business will -go -to ’those manufacturers of imported articles’ who have tHe wisdom and courage to advertise the merits of their goods.