Creating value for channel partners: the Cervena case

Abstract

Purpose

Aims to report on the approach used by the New Zealand Game Industry Board (NZGIB) to create a competitive advantage with channel buyers in the USA. This examination is in response to calls for research on international marketing strategy implementation in business markets. The NZGIB developed an innovative marketing program labeled “Cervena” to reposition commodity venison as an up‐market product sold through specialist restaurants.

Design/methodology/approach

An in‐depth case study of the Cervena approach was conducted. Data were gained through in‐depth interviews with key marketing staff. Interviews were supplemented with secondary data.

Findings

The findings identified the synergistic relationships between demand chain partners and end consumers. Tacit competitive advantages were built by adapting to channel requirements, leveraging established relationships, and drawing on aspirational imagery at the consumer level. Critically, no one part of the program could operate in isolation. Implementing such a strategy was difficult because of the failure to convert transactional relationships between farmers and their buyers into long‐term ones that provided greater certainty of supply and pricing. This illustrates both the benefits of networks and the need to adapt the implementation effort over time to ensure ongoing commitment to the relationship, and high quality market‐oriented outcomes.

Originality/value

This article provides a rare glimpse into international strategy implementation in industrial networks and suggests that such success will be contingent on initial strategic choices, adaptability, and supportive policies that reinforce market‐oriented values. Managers need to ensure adaptability within a relationship or network structure in order to consolidate initial competitive advantages and ensure ongoing buyer commitment.

Citation

Beverland, M. (2005), "Creating value for channel partners: the Cervena case", Journal of Business & Industrial Marketing, Vol. 20 No. 3, pp. 127-135. https://doi.org/10.1108/08858620510592740