SMALL IS BEAUTIFUL-HOW ABOUT COMPETITION?

Most small scale and home based food industries fail when it comes to marketing their products and facing the heat of competition from the organized brands is their "Achilles heel". But in a small town in the US the micro enterprise operating entrepreneurs have found a way to compete with national brands through their products with some USPs, most important one being their local credentials. Though their prices are higher because of their disadvantage vis-a-vis "economy of scale", this handicap is more than made up with quality and uniqueness of the products made by them. In stead of placing their products in national super market chains, they largely sell through local and regional retailing outlets. Here is a take on this interesting phenomenon.

"Country Day products are among more than a dozen locally manufactured foods found in many area grocery stores. Small, independent local producers compete with the behemoths of the grocery aisle such as Kraft, Tyson, ConAgra and Smithfield. "What gives them their edge is their quality and their uniqueness," said Joe Fasula, co-owner of Gerrity's Supermarket, which has nine regional stores. "It comes down to setting yourself apart. You have to compete on price or some intangible quality about yourself. These guys hold their own."

Probably there is a lesson to be learned from the above example for thousands of micro enterprises in other parts of the world and that is not to depend on large retail chains but use smaller stores for selling their products. Of course there still could be problems regarding credibility of their products for which sustained efforts need to be taken to instill confidence in the local population. Quality will ultimately sell and combined with assured safety products from small local enterprises can out sell even the best brand in the local market. 

V.H.POTTY

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