Marketing your products and services
Market entry
Retailers will buy from local distributors, local producers or from wholesalers, depending upon their size and buying power. Few retailers will buy direct from Australia because of the import issues and costs. Irish retailers employ category management techniques, and except suppliers to handle the distribution issues.
Some options for entering the food and beverage industry in Ireland include the following:
- Appointing a distribution partner to handle importing and customer liaison.
- Managing the customer base from Australia and find a fulfilment company to warehouse and ship to the customers.
- Setting up an office in Ireland or another European Union country.
- Sending staff to Europe as a representative.
- Sharing distribution with another Australian company – preferably with a synergistic product range.
- Having product manufactured under licence or in partnership with a local company in Ireland (or Europe)
Of these options, the most effective – in the short-term – is appointing a distribution partner as they have expertise in Irish company market.
Although all of the big international food brands are available in Ireland, it would be wrong to assume that Irish consumers have the same tastes as British consumers. Private label penetration in Ireland is around 10 per cent, much lower than other European countries. Irish consumers are brand loyal, and manufacturers make an effort to explain the benefits of their products on the labels and through their advertising.
Australian exporters should consider Ireland as a strategic market, as Irish companies have a reputation of being easier to deal with than companies from many other European countries.
It is vital to maintain a face-to-face relationship with your distributor and retail customers by visiting the country regularly.
There is a high level of awareness in Ireland of Australia as a quality wine and food producer. Irish consumers are very brand-loyal and discerning when it comes to packaging and presentation. It is best to work with a local specialist to develop branding and packaging or risk not having the product listed with any larger stores.
It is important to consider the following because category management is common in Irish supermarkets and buying groups:
- What is the value to the retailer of listing your product?
- How your product ‘fits’ in the current product offering
- Who the target consumers are
- Projected level of sales
- What the retail price will be
- What margins the retailer and distributor expect
- How you are going to promote the product?
- Are you willing to change the product ingredients or packaging to suit the retailer?
- Is an exclusivity deal appropriate?
- Are you ready to provide product samples?
You will need to tailor your presentation to each retailer in order to be successful. Research the market and your potential competitors thoroughly before making contact with customers. Irish companies prefer to have brochures and product samples, rather than relying on websites for information.
Many retailers offer online purchasing for home delivery. The online mall www.Buy4now.ie has linked with supermarket Superquinn to offer food and beverages.
Distribution channels
Retail
Ireland has a strong independent retail sector, but although this is large in numbers, supermarkets still dominate sales:
- Supermarkets and other multiples – 78 per cent
- Independents – 17 per cent
- Convenience stores – 5 per cent
Supermarkets: Ireland’s leading supermarket and multiple stores are:
Irish multiple retailers tend to have centralised buying teams located in headquarters. All of the multiples are locally owned, with the exception of Tesco, which is owned by Tesco UK.
Although 30 per cent of Ireland’s population is in Dublin, Ireland is still a very rural country and independent stores outnumber all other types of food retailer added together. Independents tend to buy from cash-and-carry wholesalers such as Musgrave.
Most convenience stores are either franchises (eg. Centra) or part of buying groups such as Spar/Mace which wholesale and retail. Most have centralised buying teams located in the head office.
Food service
Unlike the UK, where chains and major corporates dominate, food service in Ireland is very much about independent operations. Restaurants, pubs and other food outlets tend to buy from catering suppliers, wholesalers/cash-and-carry stores, or specialist companies (where needed).
Food manufacturing
As Ireland has a highly developed and sophisticated food manufacturing industry, it is worth considering this sector as a channel. Companies with raw materials and ingredients may be able to supply Irish-based manufacturers. Quantity and consistency of supply are likely to be issues for smaller, or new, exporters.
Transport
Ireland’s three most important airports are Dublin Airport, Cork International Airport and Shannon Airport. Belfast International Airport is the main airport in Northern Ireland.
There are several regional airports, including:
- Galway Airport
- Kerry Airport
- Knock International Airport
- Sligo Airport
- Shannon Airport
- Northern Ireland’s Belfast City Airport and City of Derry Airport cater for short haul services.
Aer Lingus is the national carrier and provides passenger and cargo services. Ryanair, Europe’s largest budget airline, is based in Dublin.
Rail freight infrastructure in Ireland is being upgraded to create a suitably efficient system. Passenger services connect most major towns and commercial centres. The railway is run by Iarnród Éireann (Irish Railways).
In Northern Ireland, rail services are run by Northern Ireland Railways (NI Railways), part of Translink – a public-owned entity that manages rail and bus services.
Almost all goods imported into Ireland arrive by sea. The main port for the Republic of Ireland is Dublin which handles approximately 50 per cent of imported goods for the country. Other ports include Cork, Drogheda, Dundalk, Dun Laoghaire, Shannon Foyns, Galway, New Ross, Waterford and Wicklow.
Northern Ireland ports – Belfast (the largest), Derry, Larne and Warrenpoint – process more imported goods direct from Britain and are a significant competitor to the ports in the Republic of Ireland.
The Republic of Ireland is undertaking major investment in its road infrastructure. Although the road network is extensive, it is considered to be of the standard required by Ireland’s economic growth.
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