Analysis on necessity and feasibility management of agricultural products brand building in family farms

Размещено на http://www.allbest.ru/

Analysis on necessity and feasibility management of agricultural products brand building in family farms

(Niu Lichen, Sumy National Agrarian University)

Introduction

At present, scholars' research on brand building presents a variety of characteristics, mostly focusing on theoretical research and case studies, and studying brand building issues from different perspectives. Wu Yi and Zhu Guangyue learned from [1]. In the investigation and research on the factors affecting the brand building of family farms, the results show that: the brand building of family farms is dominated by the farmer's subjective will, and the improvement of the ecological environment of family farms has a further role in promoting brand building; in addition, government financial subsidies The remaining "accuracy" problem is not obvious, and the promotion effect on brand building is not obvious. Yu Zizhong learned from [2]. By analyzing the problems existing in the brand management of Taizhou family farms, it is proposed that government departments should strengthen the guidance of brand building, cultivate regional family farm brands, and support the "model effect" of leading family farm brands. Luo Xuan and Lin Yafei learned from [3]. Through analysis, suggestions on the establishment and application of family farm brands in Zhejiang Province are put forward from the government and farmer levels: at the farmer level, large farmers should start from the basics and carry out the branding of family farms step by step. Zhang Xuefeng learned from [4]. By analyzing the necessity and reality of implementing brand marketing strategies for family farms in the fierce market competition of agricultural products, this paper proposes specific measures for family farms to use the Internet of Things to produce and manage their own agricultural products before, during and after production. Establish the brand image of the family farm, win the target market, and maximize profits. Wang Zheng learned from [5]. By analyzing the problems existing in the brand establishment process of the Xiaoshulin family farm in Hengshui area, the creativity, brand and design concept are integrated into the brand building.

In terms of how to improve brand equity: promote brand effect from the ecological aspect. Anne Chesky learned from [6]. Family farms should promote the production of green products, organic products and other special products, and develop to the order model, and ultimately further form a brand effect through the development of ecological agriculture and tourism agriculture. Domenico Miller learned from [7]. Farm-based tourism combines farm and rural settings, giving visitors a feeling that reflects their understanding of the rural environment and agricultural life, and can enhance the consumer experience of the family farm brand. Bart Minten learned from [8]. While unbranded produce is indistinguishable from competitors', marketing of branded produce adds "brand value" to the product, which allows sellers to charge higher prices for their products; the real benefit to brand owners over time Elapsed because consumer loyalty to the brand and the cheapness of retaining those loyal customers (compared to the cost of attracting new customers) make it a brand farm; the benefit to the consumer is quality assurance or food safety. Alma learned from [9]. Driven by increased demand from consumers concerned with health and “post-materialistic” values, various organic certifications for family farms can increase brand value and drive the growth of family farms. feasibility management agricultural products brand

Through literature review, the current literature on the brand building of family farm agricultural products mainly focuses on the development of influencing factors and countermeasures from the perspective of brand effect, enhancing brand equity, and enhancing brand value through geographical indications and various certifications. These studies help to deepen our understanding of the construction of agricultural products on family farms, and have great inspiration for the sustainable and healthy development of agricultural products on family farms in China. However, the information on the necessity and feasibility of the construction of agricultural products in family farms is not sufficient. Therefore, it is particularly important to analyze the necessity and feasibility of brand construction of family farms.

Presenting of main material

China has been a big agricultural country since ancient times, and agricultural production plays a very important role in the development of the national economy. Since the beginning of the 21st century, the scale of China's agricultural exports has continued to expand. However, due to the lack of effective brand support, China's agricultural exports lack core competitiveness in the international market, and the economic benefits obtained are very limited. Therefore, strengthening the brand building of agricultural products is not only an important way to enhance the international competitiveness of China's agricultural products, but also an important measure to increase the added value of exported agricultural products and help build a modern agricultural powerhouse.

In June 2018, the Ministry of Agriculture and Rural Affairs issued the "Opinions on Accelerating the Promotion of Brand Strengthening of Agriculture", which aims to significantly improve the level of agricultural branding in China within 3-5 years and enhance the role of brands in driving industrial development and benefits. In order to speed up the cultivation of family farms and give full play to their important role in rural revitalization, in September 2019, 11 departments and units including the Central Agriculture Office and the National Development and Reform Commission jointly issued the "Guiding Opinions on Implementing the Family Farm Cultivation Plan", and clearly stated: "Support family farms to carry out green food, organic food, geographical indication agricultural product certification and brand building."

The need for family farm branding. (1) To meet the needs of their own survival and development, family farms are market- oriented, which overcomes the drawbacks of traditional farmers' market information blockage. Because the main labor force is family members, it retains the intrinsic incentive function of family management and avoids the incentive and supervision problems of bureaucratic organizations. Not only that, family farms also take advantage of the moderate scale and intensification of agricultural production. However, the development of family farms still has problems of low quality and weak driving ability. Branding can promote the high-quality development of family farms and is the guarantee for the realization of the strategic significance of family farms. First of all, branded family farms can increase the market share of agricultural products and achieve product premiums, and obtain considerable economic benefits. Secondly, an excellent brand means the improvement of various systems of family farms, and perfect internal procedures are the endogenous driving force for the development of family farms. Finally, the development of family farms requires social resources and the support of the government. Their choice must be a family farm that is well-run and has a certain influence and great development potential, thereby producing greater social benefits.

(2) Able to establish brand loyalty in the target market, the power of the brand, through the role of consciousness, is ultimately manifested in consumer behavior, that is, brand loyalty. Brand loyalty allows consumers to choose the brand he admires among the many agricultural products. Consumers' respect for a brand is expressed through repeated purchases and by recommending others to purchase. Brand loyalty is a key part of the family farm's ability to achieve brand benefits. This kind of sales brought by brand loyalty largely reflects the effectiveness of brand building. For fast-moving consumer goods such as agricultural products, brand loyalty is particularly important because of the frequent repeat purchases involved. Branding a family farm builds brand loyalty in the target market.

(3) Stabilize market position and create new value. Common agricultural products have strong homogeneity, and usually prices vary with production. (Figure 1). The demand curve for traditional agricultural products is D, and the market price of ordinary agricultural products will decrease as the supply increases. When the agricultural products are less harvested, the output is Q0, the corresponding price is P0, and the income is R0=P0*Q0-C0. When the agricultural products are harvested, the output is Q1, and the corresponding price is P1, and the income is R1=P2*Q2- C1. Although Q1>Q0, but P1<P0, and with the increase of production, it is generally accompanied by the increase of cost, so it is very likely that there will be an increase in production without an increase in income.

When a family farm builds a brand, it can improve its credibility. Consumers have the nature of "seeking advantages and avoiding disadvantages". Brands reduce their choice costs, expand demand, shift the demand curve to the right, and become more inelastic. The demand curve after the introduction of the brand is represented by D1, D1 is called the demand curve of brand agricultural products. When maintaining the same output Q1, the price of brand agricultural products is P2. As can be seen from the figure, P2 is much larger than P1, and the premium SP1BCP2 generated by the brand is much larger than the sales income of ordinary agricultural products. In the same way, when the price of common agricultural products is the same as that of branded agricultural products, the sales volume of branded agricultural products is much larger than that of ordinary agricultural products. The demand curve after the introduction of the brand shows that under the same price conditions, the branded agricultural products have a larger purchase volume. When the demand curve shifts, the purchase volume of the branded agricultural products can also be increased compared with before when the price increases.

Figure 1. Changes in the demand curve after the introduction brands

(4) Forming brand equity, as an important intangible asset, brand has a high value. Family farm branding is a necessary condition for the formation of brand equity, and brand is one of the most important assets of a family farm. On the one hand, the development, establishment, and promotion of a family farm brand requires a certain investment of people, money, and materials, and various expenses form the economic value of the brand. In addition, on the basis of comparison with other agricultural products, the popularity and credibility generated by consumers in the minds of the public constitute the intangible value of the family farm brand.

(5) Conducive to improving competitiveness and broadening the international market. A large number of foreign famous brand agricultural products poured into the domestic market, and China's agricultural product market has been greatly affected. The 2014 China Grain Development Report shows that since 2011, the cost of China's main grain varieties has been on a new upward trend. According to data released by the General Administration of Customs of China, in 2021, China imported 164.539 million tons of grain (soybeans, corn, wheat, sorghum, cotton and other agricultural products), ranking first in the world. It can be seen that the competitive advantage of China's main grain varieties has gradually disappeared. The reason is that China's agricultural products lack brand effect, which reduces market competitiveness. The United States is the world's largest grain exporter. As we all know, American agriculture is supported by family farms. The international market has a high demand for branded agricultural products, so the branding of family farms in China is of great strategic significance.

Feasibility of family farm branding. By the end of 2021, there were 3.9 million family farms in China. With the vigorous development of family farms, the state has introduced a series of measures for the healthy development of family farms, providing various support for the branding of family farms.

(1) The brand awareness of family farmers is enhanced. First of all, the rural "mass entrepreneurship and innovation--- innovation and entrepreneurship" is booming, and the number of migrant workers, college graduates, retired soldiers, scientific and technological personnel, and enterprise managers who go to rural areas to start a business and become rich is increasing year by year. High-quality farmers and rural "mass entrepreneurship and innovation" main groups continue to grow, with innovation and brand awareness, which is more conducive to the construction and promotion of family farm brands. Secondly, the rapid development of family farms has attracted the participation of high-quality farmers and rural "mass entrepreneurship and innovation" groups, and improved the innovation awareness and brand awareness of family farmers. On the one hand, they are willing to try new varieties of breeding, which has increased the contribution rate of agricultural science and technology progress, from 27% in the early stage of reform and opening up to 58.3%. On the other hand, they pay more attention to the quality of agricultural products, with a pass rate of 97.5% for main agricultural products, which is a manifestation of the increased brand awareness of family farmers.

(2) Enhancement of public brand awareness. On the one hand, with the development of the national economy, people's living standards are improving day by day. Due to the frequent occurrence of food safety incidents and the lack of heterogeneity of agricultural products themselves, although there is no difference between unbranded agricultural products and branded agricultural products, consumers are willing to buy branded agricultural products at higher prices because of the benefits that brands bring to consumers. Is to ensure quality or food safety. On the other hand, the popularization of Internet technology has broadened the channels for consumers to obtain information on branded agricultural products, subtly affected consumers' consumption habits, and enhanced consumers' view of consuming branded agricultural products.

(3) The development of information technology brings new opportunities. The development and dissemination of brands is inseparable from the support of the development of information technology. In recent years, the development of information technology has driven the rapid development and wide coverage of new media, stimulated the brand awareness of family farmers and consumers, and brought new development opportunities for

the branding of agricultural products. First of all, high-quality agricultural products are the cornerstone of the development of agricultural brands, and the traceable growth process of agricultural products enhances the credibility of agricultural products. In 2018, the first agricultural high-score satellite was successfully sent, which installed the sky's eye for agricultural inspection and provided a qualitative guarantee for the development of agricultural product brands. Secondly, "12316" and information entering villages and households will speed up the construction of a multi-level "Internet +" modern agricultural service platform to make agricultural and rural information services more inclusive and convenient. Finally, the growth of ecommerce has opened up a new situation in the agricultural product market.

On the one hand, the development of informatization has opened up information channels for family farmers to build their brands. They can not only use the information platform to obtain various agricultural information, but also obtain relevant training and information support for brand building and communication through the platform. On the other hand, it has opened up agricultural product sales channels and brand communication channels, increased sales and delivered brand information, improved brand awareness and credibility, and achieved product premiums, thereby achieving considerable economic benefits. This is a process of a virtuous circle and a new opportunity for the branding development of family farms.

(4) Policy support provided by the government for brand development. In September 2018, the Ministry of Agriculture and Rural Affairs issued the "Opinions on Accelerating the Promotion of Brand Strengthening of Agriculture", calling on family farms to create agricultural product brands with distinctive regional characteristics. Improve the brand development mechanism of family farms and standardize the standards for brand creation.

Encourage and guide family farmers to register trademarks, brand certification. In September 2019, in the "Guiding Opinions" issued by the Ministry of Agriculture and Rural Affairs, From the aspect of land use: guarantee the right to operate the land of family farms, and eliminate worries for the brand building of family farms. Strengthen the construction of infrastructure, establish a sound brand service system, and provide basic support for the brand building of family farms. Improve and implement fiscal and taxation policies, and encourage family farms to carry out "three products and one standard" certification and brand building of agricultural products. Strengthen financial and insurance services, And support family farms to pledge financing with intellectual property rights such as trademarks. Support the development of "Internet +" family farms, enhance brand marketing capabilities, expand brand distribution channels, and expand the market share of brand agricultural products.

With the improvement of people's income level, consumers have changed from simply pursuing to be full to eating nutritious, safe and healthy food, and also to reflect culture and taste. At present, the supply of agricultural products has changed from a shortage to a relative surplus, the competition in the agricultural product market is becoming more and more fierce, and consumers have a dominant position in the market. Agriculture is the basic industry of the national economy. At present, China's agriculture is in a critical period of transition from traditional agriculture to modern agriculture. With the acceleration of the internationalization process, China's agricultural products are facing more and more fierce competition. We must start from strengthening ourselves, starting from the analysis of necessity and feasibility, in order to further actively adapt to the trend of improving consumer consumption levels and enhance the competition of agricultural products. In order to improve the production efficiency of agriculture, it is necessary to actively explore and implement brand building of agricultural products.

Conclusion

Based on the analysis of the development status, development mechanism, and necessity and feasibility of family farm agricultural product construction, the following conclusions can be drawn:

(1) As China's economic development has entered a "new normal" and is in a critical period of economic transformation, the economic benefits of many domestic industries have increased and declined, and the practice of many successful regional brand marketing of agricultural products has proved that regional brand marketing of agricultural products is very important for improving a region. It plays an important role in improving the level of agricultural development, increasing farmers' income and driving the economic development of the entire region. Moreover, the study of regional brand marketing of agricultural products has become an important strategy for a region to develop agricultural modernization and upgrade the agricultural industrial structure.

(2) Against the background of increasingly fierce domestic and foreign trade games for agricultural products and increasingly invisible barriers, agricultural brand building has become an important method to meet the diverse needs of consumers, resist various risks, and strengthen international cooperation among countries along the “Belt and Road”. Agricultural brand building should pay special attention to the construction of its own quality standard system. It should be led by technological innovation, and should be based on coordination and cooperation, and continue to cultivate brand competitiveness, vitality, appeal and communication.

(3) By studying the development model and operation mechanism of family farm agricultural product brands, it is found that there is still a lot of room for development in the current family farm agricultural product construction. The construction and development of agricultural product brands is a long-term

systematic project. Therefore, it is necessary to combine regional resource advantages and market development trends to continuously adjust the development model of agricultural product brands, build a dynamic operation adjustment mechanism suitable for the development of regional agricultural product brands, and promote the efficient processing of agricultural products. , sustainable development.

(4) At present, there are many problems in the brand building of family farm agricultural products that need to be solved urgently, such as: weak brand awareness of agricultural related personnel, lack of regional brand main body of agricultural products, lack of regional brand protection, and insufficient publicity of agricultural products regional brands. The advantages of brand management and management play the most crucial and guarantee role in the development of regional agricultural products brands into regional famous agricultural products. The establishment of a regional brand property rights governance mechanism for agricultural products can give full play to the advantages of brand operation and management such as brand authorization, supervision and regulation, service guidance and marketing promotion.

(5) For the brand building of family farms, the government's policy support services, development mechanism, top-level design, and implementation of regional marketing for the development of regional brands of agricultural products play an important role in the play of regional advantages, industrial advantages and management advantages. positive regulation. Industry associations play a pivotal role in brand building. They not only build effective communication channels between the government and enterprises, promote the coordination and cooperation between the government and enterprises, as well as resource integration and information communication between enterprises, but also contribute to brand awareness. The

construction forms effective supervision to ensure the healthy and stable progress of brand building. As the leader in the agricultural industry cluster, the role of agricultural leading enterprises in the process of regional brand creation is irreplaceable. Continuously improve the quality of products and related services, create high- end and differentiated products, better highlight product personality, play a leading role, continuously improve its own management system and optimize its own production processes, strengthen the construction of its own innovation capabilities, and continuously enhance The core competitiveness of enterprises, strengthen the contact and communication of the same type of enterprises, and create a good industrial foundation.

References:

1. Wu Y., Zhu G.Y. Analysis of the influencing factors of brand building of family farms in Shandong Province. Gansu Agriculture, 2018. No. 5. P.72-75.

2. Yu Z. Analysis of Taizhou Family Farm Brand Management in the Background of Rural Revitalization. Rural Economy and Technology, 2018. No.10. P.156-158.

3. Luo X., Lin Y.F. The creation and application of Zhejiang family farm brand. Journal of Ningbo Institute of Education,2014. No.1. P.101-108.

4. Zhang X.F., Zhang F. Family Farm Brand Marketing Strategy Based on Internet of Things Technology. Logistics Technology, 2014. No 23. P.400-403.

5. Wang Z. Taking the small forest family farm as an example to analyze the creative agricultural brand design. Farm Staff, 2018. No. 4. P.82-90.

6. Anne C. Can Agritourism Save the Family Farm in Appalachia-A Study of Two Historic Family Farms in North Carolina. Journal of Appalachian Studies, 2009. No 2. P. 87-98.

7. Domenico M. Farming and tourism enterprise: Experiential authenticity in the diversification of independent small-scale family farming . Tourism Management, 2012. No 12. P.285-294.

8. Bart M. Branding and agricultural value chains in developing countries: Insights from India, Food Policy, 2013. No. 6. P. 23-34

9. Alma A. Smallholder participation and certification of organic farm products in Mexico, Journal of Rural Studies, 2005. No. 4. P. 449-460

Размещено на Allbest.ru