AUSTRALIAN RAMBUTANS Market Opportunity and Analysis of the Domestic Market
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AUSTRALIAN RAMBUTANS Market opportunity and analysis of the domestic market A report for the Rural Industries Research and Development Corporation by Judy Noller, Marketing Officer, Department of Primary Industries, Queensland March 2001 RIRDC Publication No 01/26 RIRDC Project No. DAQ-260A (Rambutans) © 2001 Rural Industries Research and Development Corporation. All rights reserved. ISBN 0 642 58247 5 ISSN 1440-6845 Australian Rambutans - Market opportunity and analysis of the domestic market Publication No. 01/26 Project No. DAQ-260A The views expressed and the conclusions reached in this publication are those of the author and not necessarily those of persons consulted. RIRDC shall not be responsible in any way whatsoever to any person who relies in whole or in part on the contents of this report. This publication is copyright. However, RIRDC encourages wide dissemination of its research, providing the Corporation is clearly acknowledged. For any other enquiries concerning reproduction, contact the Publications Manager on (phone) 02 6272 3186. Researcher Contact Details Judy Noller Department of Primary Industries, Queensland Phone: 07 4044 1617 Fax: 07 4035 5474 Email: [email protected] RIRDC Contact Details Rural Industries Research and Development Corporation Level 1, AMA House 42 Macquarie Street BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604 Phone: 02 6272 4539 Fax: 02 6272 5877 Email: [email protected]. Web: http://www.rirdc.gov.au Published in March 2001 Printed on environmentally friendly paper by Canprint ii Foreword Presented in this report is a detailed analysis of the domestic market for Australian rambutans and a marketing plan to assist the industry to expand and improve its current market position. Rambutans are an exotic fruit introduced from South-East Asia. Commercial production was 600 tonnes in 2000, and continues to grow. This publication investigates the current market for rambutans, and potential new market segments. This report is an addition to RIRDC’s diverse range of over 450 research publications, and forms part of its Prospective New Industries – New Plant Products program, which aims to accelerate the development of viable new plant-based industries. Most of our publications are available for viewing, downloading or purchasing online through our website: • downloads at www.rirdc.gov.au/reports/Index.htm • purchases at www.rirdc.gov.au/pub/cat/contents.html Peter Core Managing Director Rural Industries Research and Development Corporation iii Acknowledgements The author gratefully acknowledges the assistance and support of all those who provided information for this study, including the steering committee of members of the FNQ Rambutan Marketing Group and other rambutan growers; the various wholesalers, retailers, marketing specialists and horticulturists who provided the information in this report; and those retailers who allowed and supported consumer research in their stores, in particular David Harris, Managing Director of Harris Farm Markets. iv Contents FOREWORD .................................................................................................................................. iii ACKNOWLEDGEMENTS ............................................................................................................ iv EXECUTIVE SUMMARY ............................................................................................................. vi 1. INTRODUCTION.................................................................................................................... 1 Background ..................................................................................................................................................1 World production..........................................................................................................................................1 Australian production....................................................................................................................................1 Research issues.............................................................................................................................................2 Research objectives.......................................................................................................................................2 Methodology.................................................................................................................................................2 2. RESEARCH FINDINGS.......................................................................................................... 3 Market segments...........................................................................................................................................3 Product .........................................................................................................................................................8 Pricing........................................................................................................................................................12 Distribution.................................................................................................................................................14 Competition................................................................................................................................................16 Promotion...................................................................................................................................................17 3. SWOT ANALYSIS................................................................................................................. 23 4. MARKETING PLAN............................................................................................................. 24 Introduction ................................................................................................................................................24 Key issues...................................................................................................................................................24 Marketing objectives...................................................................................................................................24 Target markets............................................................................................................................................24 Marketing strategy and tactics.....................................................................................................................26 5. REFERENCES....................................................................................................................... 32 6. APPENDICES ........................................................................................................................ 35 Appendix 1. Case studies – lychees and mushrooms ...................................................................................35 Appendix 2. Product description.................................................................................................................39 Appendix 3. Countries/territories/regions with domestic markets for rambutans ..........................................41 Appendix 4. Selected ethnic distribution by geographic region — Sydney and Melbourne...........................42 Appendix 5. Retail store observations, 2000 ...............................................................................................44 Appendix 6. Media list...............................................................................................................................46 Appendix 7. Indices for matrix of market attractiveness and business strength.............................................49 Appendix 8. Highest-earning suburbs of Sydney and Melbourne, 1997–98..................................................50 Appendix 9. Photographs ...........................................................................................................................52 Appendix 10. Consumer survey findings from interviews in Sydney and Melbourne ...................................53 Appendix 11. Consumer survey questionnaire ............................................................................................65 v Executive summary Presented in this report is a detailed analysis of the domestic market for Australian rambutans, together with a marketing plan to assist the industry to expand its markets. A similar analysis has been done for the Australian longan industry. Rambutan is a tropical fruit originating in South-East Asia, and in 2000 production in Queensland and the Northern Territory reached 600 tonnes. Almost all fruit is sold to ethnic Asian consumers in Sydney and Melbourne, although producers gained access to the attractive Japanese market late in the 2000 Queensland season, a development that will affect future supply to domestic markets. Most fruit is supplied by two marketing groups, one with quality control systems, to wholesale market agents specialising in exotic and tropical fruits. More coordination of supply would support the development of new markets, avoid competition among suppliers for the same market, and improve market feedback to the industry. The main market for rambutan is ethnic Vietnamese and Chinese consumers, who use it in a variety of ways: as a fresh snack; as a palate cleanser after meals at home and in restaurants; as a religious offering; as a gift; or