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Market Strategies in Branded Dairy Product Markets

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  • Ronald W. Cotterill
  • Lawrence E. Haller

Abstract

This paper documents the extent of cooperative penetration into branded dairy product markets and presents case study evidence on competitive strategies in the skim/low fat milk, whole milk, cottage cheese, butter, margarine, and ice cream markets. We employ data for 51 local market areas from the Information Resources, Inc. "Supermarket Review" data base for 1988 and 1989. Using national data, we identify the twenty top brands (by volume sales) and all cooperatives that market one or more brands in each of the above categories, and report their national market shares, averages prices, number of local markets in which they are sold, and a summary of their local rankings. Using local data for selected brands, we graphically analyze how prices, quantities, and shares change over time in particular markets. We find that cooperatives have much stronger positions in local markets than their national market shares indicate. When looking at the brand share-price relationships for particular brands across local markets, we find examples of positive, negative, and no relationships.

Suggested Citation

  • Ronald W. Cotterill & Lawrence E. Haller, 1994. "Market Strategies in Branded Dairy Product Markets," Food Marketing Policy Center Research Reports 023, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    • Handle: RePEc:zwi:fpcrep:023
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    File URL: http://fmpc.uconn.edu/publications/rr/rr23.pdf
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    Cited by:

    1. Pampanini, Rossella & Marchini, Andrea & Diotallevi, Francesco, 2010. "A quantitative analysis of olive oil market in Italy," MPRA Paper 40638, University Library of Munich, Germany.
    2. Francesco Torrisi & Gianluca Stefani & Chiara Seghieri, 2006. "Use of scanner data to analyze the table wine demand in the Italian major retailing trade," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 391-403.
    3. Andrew W. Franklin & Ronald W. Cotterill, 1994. "Pricing and Market Strategies in the National Branded Cheese Industry," Food Marketing Policy Center Research Reports 026, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    4. Bergtold, Jason S. & Akobundu, Eberechukwu & Peterson, Everett B., 2004. "The FAST Method: Estimating Unconditional Demand Elasticities for Processed Foods in the Presence of Fixed Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-20, August.
    5. Cotterill, Ronald W., 1994. "Scanner Data: New Opportunities For Demand And Competitive Strategy Analysis," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 23(2), pages 1-15, October.
    6. Cotterill, Ronald W., 1997. "The Performance of Agricultural Marketing Cooperatives in Differentiated Product Markets," Journal of Cooperatives, NCERA-210, vol. 12, pages 1-13.
    7. Diotallevi, Francesco, 2010. "L’analisi della domanda degli oli extravergine d’oliva in Italia Un’applicazione del modello A.I.D.S [The analysis of the demand for extra virgin olive oil in Italy An application of the AIDSmodel]," MPRA Paper 41469, University Library of Munich, Germany.
    8. Lawrence E. Haller & Ronald W. Cotterill, 1996. "Evaluating Traditional Share-Price and Residual Demand Measures of Market Power in the Catsup Industry," Food Marketing Policy Center Research Reports 031, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    9. Junko Kinoshita & Nobuhiro Suzuki & Tamotsu Kawamura & Yasuhito Watanabe & Harry M. Kaiser, 2001. "Estimating own and cross brand price elasticities, and price-cost margin ratios using store-level daily scanner data," Agribusiness, John Wiley & Sons, Ltd., vol. 17(4), pages 515-525.

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