8 minute read
Patterns of Success
Insights on how to succeed
The Partnering for Customer Value (P4CV) initiative commissioned 11 case studies profiling 14 agribusinesses in the horticulture, livestock, dairy, grains, seafood and processed foods sectors, across small, medium and large enterprises that were from Australia, New Zealand, Europe and the United Kingdom.
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A report titled Patterns of Success draws together insights on how to succeed from the 11 agribusiness case studies. The report describes how five key business practices, or ‘patterns of success’ are common across the successful case studies and lacking in those businesses that ultimately failed. The five key patterns of success provide a roadmap for businesses looking to grow and succeed in competitive markets.
Department of
Primary Industries and Regional Development
Department of
Primary Industries and Regional Development
Department of
Primary Industries and Regional Development
Department of
Primary Industries and Regional Development
Department of Primary Industries and Regional Development
Partnering for Customer Partnering for Customer Partnering for Customer Partnering for Customer Value case study:Value case study:Value case study:Value case study:
Mountain Milk Co-operativeOBE Organic Beef Manbulloo Ltd. Dingley Dell Pork
Prepared by Professor Andrew Fearne, Norwich Business School, Prepared by Professor Andrew Fearne, Norwich Business School, Prepared by Dr David McKinna and Catherine Wall, MCKINNA et alPrepared by Dr David McKinna and Catherine Wall, MCKINNA et al University of East Anglia, United Kingdom University of East Anglia
Business
Mountain Milk Co-operative
Location
Kiewa Valley, Victoria
Product
Milk
Business
OBE Organic Beef
Location
Channel Country of Central Australia
Product
Organic beef
Business
Manbulloo Ltd
Owner
Marie Piccone
Location
Queensland and Northern Territory
Product
Mangoes Business Dingley Dell Pork Owners Mark and Paul Hayward Location Suffolk, England Product Pork Partnering for Customer Value case study: Zespri International Limited Prepared by Professor Andrew Fearne, Norwich Business School, University of East Anglia
Key findings from the report
1 Focusing on key strategic relationships A strategic relationship is the opposite of the transactional relationship. There is a shared interest between both parties and business transactions are planned and delivered so that an attractive margin is earned at both ends. There is mutual regard and both parties are motivated to support each other’s continued success.
Business Zespri International Limited Owners 2435 growers Location Mount Maunganui, New Zealand Product Kiwifruit
2 Delivering customer value The key insight from the case studies is the need to deliver genuine, differentiated customer value. WA businesses need to focus on competing through product differentiation that delivers customer value.
3 Developing a ‘whole product’ offering The ‘whole product’ offering bundles a physical product together with a range of the accompanying services (may also include emotional engagement components) that deliver additional value to the customer that a business’s competitors find hard to replicate. Businesses therefore need to protect this investment (in developing a whole product) and establish a barrier to competition by making sure the advantages are “hard to replicate”. It is in recognising these components of customer value and connecting them to a hard to replicate business capability that the most successful case study businesses demonstrate their entrepreneurial acumen.
4 Using customer development to investigate and understand customer needs The key outcome from customer development process is to ensure that a business’s whole product delivers genuine, superior customer value before the business commits to scaling up to full commercial production.
5 Partnering between businesses to deliver a differentiated whole product Partnerships allow businesses to develop and deliver customer value in novel ways previously beyond their individual capabilities.
Strategic Relationships
Manbulloo ● Dingley Dell Pork ● Zespri ● OBE Organic ● Mountain Milk ● Sun Lychee & Exotico ● Beerenberg ● Greenyard Frozen ● Island Fresh Seafoods ◑ Blue Stripe, ProForm Foods & Darwin Prawns ○ Carlsberg Null-LOX ○
Together they work to drive the transition from a business with many transactional customer relationships that are not delivering the desired results, to a business with a set of strategic customer relationships The ability to reposition customer relationships is unlocked by delivering genuine value through a differentiated whole product.
3 THE ability to reposition customer relationships is unlocked by delivering genuine value through a differentiated whole product.
Through systematic customer development, a business can understand exactly what its key customers truly value. Value chain partnering can then provide the capabilities to develop and deliver the whole product that meets these needs. Are there common patterns in what successful businesses do? Yes. The case studies show five key ‘patterns of success’.
TABLE 1. CASE STUDY BUSINESSES DEMONSTRATING THE PATTERNS OF SUCCESS.
that do. Key: ● Case study demonstrates strong application of business practice ◑ Case study demonstrates some application of business practice ○ Case study demonstrates little or no application of business practice
Whole Product
● ● ● ● ● ● ● ● ○ ○ ○
Customer Value ● ● ● ● ● ● ● ● ◑ ◑ ◑
Customer Development ● ● ● ● ● ● ● ● ● ◑ ○
Value Chain Partnering ● ● ● ● ● ● ◑ ◑ ◑ ○ ○
Case study snapshot
Manbulloo Ltd
BY PROFESSOR ANDREW FEARNE NORWICH BUSINESS SCHOOL, UNIVERSITY OF EAST ANGLIA, UNITED KINGDOM
Snapshot Industry
Horticulture
Location
Queensland and Northern Territory, Australia
Timeframe
• Established: 2005 (acquired existing brand and orchards) • Established own exporting business: 2009 • Pivot to fewer, more profitable export markets: 2013
Transformation
Acquired rundown brand and orchards Major supplier of Kensington Pride to Coles under 8-year contract and more than 200 tonnes exported to key markets during 2018
Key investments
• $2.4 million during 2009 for Vapour
Heat Treatment (VHT) plant to enable export market access • 22,000 additional trees planted during 2017–18
Key markets
South Korea, Canada, United States Manbulloo Ltd is a mediumsized family-owned company consisting of seven mango farms across northern Queensland and the Northern Territory. It is Australia’s largest grower of the Kensington Pride variety, at 80 per cent of production. Its focus is on growing the best quality mangoes and fostering collaborative value chain relationships. “We rated all of our customers, not just on profitability but on the potential for growth, the stability of the market, the technical ability of our partners and the nature of our relationship with them. We came to the conclusion that nobody was adding value. It was all opportunistic; nobody really knew what was going on with the consumer, communication was long and unwieldy, everyone was transactional and there were lots of inefficiencies.” Marie Piccone, Founder and Managing Director, Manbulloo
Critical Success Factors
1 Focus on delivering a ‘whole product’ to their customers; high quality mangoes, early and consistent supply, marketing and promotion in-market.
2 Focus on developing long term, collaborative relationships with key customers whose strategic outlook align with Manbulloo’s. “Manbulloo is committed to collaborating with Coles and their vision is to be a significant part of the best mango retail offer in Australia. They are absolutely focused on delivering top quality mangoes to our customers.” John Durkan, Managing Director, Coles
3
Willingness to invest time and money in export development projects with Queensland Department of Agriculture and Fisheries (DAF), Australian Mango Industry Association (AMIA), Australian Government, etc.
4 Willingness to innovate and to constantly apply learnings from previous exporting endeavours. “We went through this incredible journey of discovery; learning about the management of the value chain. The project showed us what we needed to do and how to analyse information in order to identify the key elements we needed to put in place to achieve success. It gave us a picture of what we could be. That’s when we started to look more critically and analyse our export business.” Scott Ledger, Quality Manager, Manbulloo
5 Ability to undertake a strategic rationalisation of export business (reducing both markets and customers) in order to focus on profitable, long term relationships. “Profitability matters but the ability to grow profitability in the longer term is more important. The goal is to work with our partners to build demand that we are able to meet. We don’t want to build demand for our competitors. When you start building demand you have got to be ready to fulfil that demand and you also have to be ready for the journey of innovation that comes with it. You have to look at ways to become more efficient and more effective.” Marie Piccone, Founder and Managing Director, Manbulloo
6
Desire to invest considerable time, effort and capital in developing export business, through improving business structure, systems, assets and human resources.
Why you should read the full case study
• Detailed analysis of Manbulloo’s initial approach to their key export markets. • Real world examples of value chain partnerships. • Manbulloo’s customer analysis matrix, used to rationalise their export business.
MORE INFORMATION
Manbulloo full case study dpird.wa.gov.au Phone: +61 1300 374 731 Email: enquiries@dpird.wa.gov.au
3 MARIE Piccone, Founder and Managing Director, Manbulloo.
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