Channel Management and Differentiation Strategies in the Supply Chain for Fresh Produce

Abstract

The article analyses the current differentiation strategies in the market for fresh produce. The article is arranged into three parts. First a short review of the literature on channel structure and product differentiation is presented in order to identify, on a theoretical grounding, the incentives for differentiation strategies. Second, the fresh produce sector is reviewed and analysed. Finally, an empirical investigation is made of a UK channel intermediary organisation carrying out differentiation policies in the fresh produce category (on behalf of UK multiple retailer customers') supplied by a dedicated Italian grower.

Results show that in the fresh produce industry there is room for product differentiation, but with contradictory welfare effects.

KEYWORDS:

• fresh produce
• product differentiation
• channel structure and management

Notes

CIA (2006). Nuova Agricutura, CIA, Rome.

Data IRI (2006). La mappa degli impermarcatie dei supermercati in Italia, Data IRI, Montpellier.