Sales of the new CRG FT chocolate range outperformed the previous own label

Sales of the new crg ft chocolate range outperformed

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Sales of the new CRG FT chocolate range outperformed the previous own label range by over 30 per cent and is regarded as a key success. According to Brad Hill, CRG FT Marketing Manager: The success of the CRG Fairtrade chocolate venture resulted in the move to switch the entire CRG own label range of coffee to Fairtrade (interview with Brad Hill, 2005). Due to its distribution via the mainstream retailers Day has been in a position to carry out Supermarket staff training and leverage space in supermarket staff magazines and therefore addressing some of the concerns outlined by Byles (2006). Another example of Day influencing mainstream practice is in the case of a leading high street coffee chain who commented: Working with Day on Fairtrade chocolate has provided us with access to the ‘‘Fairtrade Community’’ which is a diverse group of individuals, NGOs, companies and opinion formers. Being a part of this broad group is healthy and provides us with the opportunity to understand and contribute to the debate (interview with trading manager at leading high street coffee shop chain, 2005). The activity of Day shows how companies can leverage their social resources in the mainstream. Doherty and Meehan (2006) argue that while re-constructing the theory of marketing, Vargo and Lusch (2004) still do this within the confines of a managerialist tradition that underemphasises the interest of upstream stakeholder groups such as producers of coffee and cocoa. Vargo and Lusch (2004, p. 2) observe: ‘‘The relative role of operant resources [resources that enable change to be effected in chiefly physical resources – knowledge and processes for example] began to shift in the late twentieth Downloaded by York University At 17:25 08 April 2017 (PT)
EOI 26,7 706 century as humans began to realize that skills, relationships and knowledge were the most important types of resources’’. Doherty and Meehan (2006) propose that intangibles such as company’s ethical and social standards can be an appealing foundation for differentiation in increasingly valuable retail segments and an attraction for business partners looking to position themselves on such a basis. They refer to such resources as ‘‘social resources’’ which are made up of three inter-related components whose simultaneous presence underwrites the credibility of a product/service offer targeted at the ‘‘ethical consumer’’. The components are (1) Ethical and social commitments; (2) Connections with partners in the value network; and (3) Consistency of behaviour over time to build trust. This research shows the central brand proposition of farmer ownership made Day Chocolate attractive both to partners such as Comic Relief and CRG as well as consumers. Further research will be conducted on the value of these intangible resources to develop the concept of social resources.

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