PROJECTS

Development of the Cervena Venison Appellation, New Zealand

The problem

The Cervena Venison Appellation was not achieving its objective to increase the value of New Zealand venison in international markets. Farmers were required to subscribe to the appellation, but were unwilling to pay for it to be promoted effectively, preventing the initiative from succeeding.

How we helped

Our analysis identified the lack of coordination between product and appellation marketing as the key weakness of the Cervena Appellation, creating opportunities for free riding and preventing exporters from taking full advantage of promotions. We recommended turning the Cervena appellation into a brand, with a single entity coordinating brand promotion and product sales. This would be accompanied by removing compulsory subscription, so that venison processors would be free to join the brand or to opt out of its sales channels. We consulted producers, processors, and marketers in the venison industry and obtained their buy-in into the proposed commercial and ownership structure.

Impact

The client adopted Castalia’s recommendations. New Zealand exports venison to 50 countries around the world, with most of the venison it exports to the US marketed under the Cervena brand.