Debate:The ‘made in Australia’ slogan is a major selling point for Australian firms operating in overseas markets.

The ‘made in Australia’ slogan is a major selling point for Australian firms operating in overseas markets.

The “Australia made” logo is a registered certification trademark used to assist consumers identifies Australian made products. Made in Australia means a product is substantially transformed in Australia and at least 50% of the cost of production has been incurred in Australia. If a product contains a high percentage of imported ingredients, it cannot legally be described as “Australian made”. Consumers want to know where the goods they buy come from. Ownership is important to many Australians and for that reason a great number of businesses choose to use the logo with the term “Australian Made” (logo n.d.). For that reason, “Australia made” logo reflects Australia’s reputation as a country with a clean and green environment, high standards of quality and integrity that gives Australian businesses a strong selling point in export markets (Food and beverage to Singapore n.d.).

Export products from Australia to the overseas markets are required to meet an acceptable standard of GMP (Good Manufacturing Practices) system, sponsors of Australian manufacturers must provide acceptable GMP evidence to the government that the goods are manufactured at the standard level. Under this strict trade regulation, consumers will be more likely to trust Australian products (GOOD MANUFACTURING PRACTICES (GMP) CERTIFICATION n.d.). According to one of the marketing research, 62% of respondents trust the tagline “Australian Made, Global Quality”, because they believe Australian products are of high quality; 70% of importers and distributor respondents stated that the logo would positively influence their choice to purchase if choosing between two similar products, and 78% of respondents mentioned that the logo would have a positive impact on the allocation of shelf space in outlets (2007 CONSUMER AND BUYER SURVEY IN THAILAND n.d.). Base on this survey, the “made in Australia” slogan can be very important to Australian exporters. Beside this, labeling regulations in Australia require manufacturers to list information on the back of packages when export to overseas so that oversea customers could be more confident and loyal to buy Australian products. Base on a research in USA, 93% of American respondents strongly agree that AMAG logo stands for high quality, 77% of them agree for good design, 84% for reliability, 83% for pure and natural, finally 73% of respondents think it has good value of money (Australian Made Australian Grown Research n.d.). Therefore, this can find that overseas consumers are being attracted by “made in Australia” logo.

Australian goods are demanded after by consumers around the world. Mr Ian, Directors of AMAG Campaign, said that there is a unique opportunity for Australian firms to capture this hunger for Australian goods and service. Furthermore, the “Australia made” logo has been around for 22 years and most of the products have carried the logo to export success over its 22 years ( Minister for Industry Open New AMAG Offices n.d.). In 2010, YSC online survey shows the number of exporters has increased steadily over the three year period, with 137 exporters in 2006/07, 145 in 2007/08 and 163 exporters in 2008/09 (2010 survey of exporting logo users n.d.). Overall, 50 % of logo users’ export in 2008 and another 11 % intend to start exporting in 2009 (2008 survey of logo users n.d.). The use of the logo in export markets has increased significantly over the reported period. Additionally, in 2008/2009 highlights include growth in the use of the logo over the two year period in the US by 67% and growth in China by 90%. Canada experienced growth of 84%, Dubai of 41% and Singapore of 46%. Export sales information provided by respondent’s shows that there has been a growth in turnover during the period. The overall results show a remarkable change in sales (2010 survey of exporting logo users n.d.).

In conclusion, by using this logo, it can bring several benefits towards Australia firms to operate their business overseas. For example, consumers will have positive attitudes toward their brand, increase consumer awareness toward the business products and boost company export sales. Overall, we can conclude that for “Australia made” logo can be a major selling point to export their products overseas. Case study example:

1.      MIG INTERNATIONAL, textile Manufacture Company also use the AMAG logo. The AMAG logo is of the utmost importance to our company, both for local sales, and especially, for export sales,’’ Company Director MR Roman says. ``The logo is quickly becoming a true icon that doesn’t just represent Australian made or grown, but also quality, trust, integrity and pride. These qualities are particularly relevant to export sales,’’ Mr Romano says. The consumer is now demanding valued and quality for their hard earned money,’’ Mr Romano says. ``The Australian consumer will pay a little extra for quality and this is where the logo comes into play. Even the Chinese consumer wants quality and value for money and hence why we are now exporting to China with the logo (MIG INTERNATIONAL CRACKS CHINESE MARKET n.d.).’’

2.      Drum and materials handling expert Hydrum continues to export to new and existing markets during the strong exchange rate of the Australian dollar. Hyrum, the drum and materials handling company. Australian made, global quality is reflected in both Hydrum products due to high up-time, low cost of operation, innovative, simple engineering and longevity of our machines,” Mr Whittle adds. “Hydrum continues to   grow as an Australian manufacturer because it can customise any of our machines or create a special design to suit a specific application. This is something that imported machines struggle to achieve. We value the use of the AMAG logo as it provides quick visual confirmation that you’ve purchased an Australian owned and manufactured product, with proven global quality. We believe these identifiers are recognised globally and customers know that the products conform to good engineering practice, synonymous with a proud Australian manufacturer (HYDRUM—AUSTRALIAN QUALITY EXPORTED TO THE WORL n.d.).

3.      Henselite is the biggest manufacturer and distributor of Lawn Bowls worldwide. `The AMAG logo is a sustainable competitive advantage as it can’t be copied by our competitor. In just three months after joining the Australian Made, Australian Grown Campaign in 2009, the percentage of bowlers who gave Australian made as a reason for purchasing. Henselite bowls increased significantly, from 36 per cent to 50 per cent. After they got the Australian logo, Henselite became the first business to sell 7 million bowls in Australia. The uptake of its latest model to hit the green, Alpha, has been strongly influenced by marketing activities which focused on the fact it is made right here. The logo helps create awareness of the company’s origins, educates new and existing customers, and taps into the consumer’s desire to purchase their production. Mr Hansell says: “ Half of the bowls we make are exported worldwide and, as an Australian company we are proud of our ability to compete as a global leader in the lawn bowls market. We are the only bowls manufacturer in Australia and it’s important for us that our customers know they are getting the best bowls, manufactured right here where the best lawn bowls is played. Being part of the Australian Made, Australian Grown Campaign helps us to achieve this (HENSELITE CONTINUES TO OUT-BOWL INTERNATIONAL COMPETITORS n.d.).’’

4.      Chocolate grove, which is one of the Australia chocolate companies, has benefited a lot after using this “AMAG” logo. Director James MacDonald said that the AMAG logo backs up their claims and gives all of their consumer’s confidence toward their brand. Also, they have often had to go up against overseas suppliers which can be difficult to compete with on price alone. By using AMAG logo helps us stand out and distance ourselves from other chocolate companies who may have similar but inferior products. After the firm has used the logo, it has changed a lot in the last five years, experiencing growth in turnover and further increase their reach into the Asia market such Vietnam, Indonesia and Japan. It has been able to purchase new production equipment and will continue to extend its product range and staff in the coming years (GROOVY CHOCOLATE EMBRACES SWEET MARKETING TOO n.d.).

5.      One of the examples is an Australia famous brewer companies, Cooper Brewery. In 2008, Cooper Brewery has registered to use the AMAG logo and labelled on all the Cooper beers. Coopers Director, MR Glenn said that the logo is very helpful in letting export consumers recognised their beers are 100% Australian and this has proved to be an excellent marketing tool for them. Also, the director had said that one of the keys to improving our overseas sales is to ensure that potential buyers are aware of the origin of our product. After using this logo, Cooper Brewery has sold 62 million litres of beer in 2009-10.Additionally, MR Glenn has expected the demand reach 90 million litters of beer a year by 2016 (COOPER SENDS TASTE OF AUSTRALIA TO THE WORLD n.d.). 

Appendix 2

2010 DUBAI AWARENESS OF AUSTRALIAN MADE LOGO AND PRODUCTS

Australian Made has been promoting their logo over the past three years at trade shows in Dubai, but have not yet run any store promotions. Research was conducted by Horizon Consumer Science in Dubai, December 2010 to determine the current baseline awareness of the AMAG campaign and promotions  among Dubai customers.

Summary of findings:

One in five shoppers recall a promotion and the same percentage recall having seen the logo when prompted. 13% of shoppers feel they have seen the logo in a store recently. This figure is higher than recall of country of origin labels from Mexico (9%) and Canada (6%), but lower than China (24%) and the  USA (42%). Respondents agree that the AMAG logo clearly reflects positive attributes of Australian products.  They strongly agree that the logo communicates high quality (93%), good design (77%), reliability  (84%), produced with great care and craftsmanship (80%), pure & natural (83%), good value for  money (73%) and finally innovation (85%). It is interesting to note that while innovation is generally  not rated highly in international surveys, Dubai shoppers give this aspect the second highest ranking (2010 DUBAI AWARENESS OF AUSTRALIAN MADE LOGO AND PRODUCTS n.d.).

2010 SINGAPORE AWARENESS OF AUSTRALIAN MADE LOGO AND PRODUCTS ABOUT THE AUSTRALIAN MADE, AUSTRALIAN GROWN LOGO

Research was conducted by Horizon Consumer Science in Singapore to determine the current awareness of the AMAG campaign and any promotions as well as whether the AMAG logo is the most suitable for promoting Australian products. 202 respondents were surveyed through intercept interviews outside two Fair Price grocery stores in Singapore during the latter half of October.

Summary of findings:

Awareness of AMAG’s promotion and the logo was high with 70%+ recalling having seen the logo as part of a promotion or in general. 39% recalled having seen the promotion without any prompts, while 85% recalled the AMAG promotion after being prompted. A very high percentage of respondents, 71%, believe they saw the logo during a recent shopping trip. This figure is much higher than for other country logos such as USA (34%), China (20%), Canada (18%) and Mexico (5%).

The AMAG logo is by far (74%) considered the most recognised symbol for products that are Australian. Respondents believe the AMAG logo communicates high quality (69%), good design (65%), reliability (65%), produced with great care and craftsmanship (65%), pure & natural (56%), good value for money (56%) and finally innovation (56%)  (2010 SINGAPORE AWARENESS OF AUSTRALIAN MADE LOGO AND PRODUCTS n.d.).

2010 SHANGHAI AWARENESS OF AUSTRALIAN MADE LOGO AND PRODUCTS ABOUT THE AUSTRALIAN MADE, AUSTRALIAN GROWN LOGO

AMAG has also promoted the logo through various trade shows in Shanghai. Research was conducted by Horizon Consumer Science in Shanghai, to determine the current awareness of the AMAG campaign as well as whether the AMAG logo is the most suitable for promoting Australian products.

Summary of findings:

Awareness of the logo and AMAG’s recent promotion was high with 78% aided awareness of the logo (and 38% aided in-store awareness of the logo) and 60% aided awareness of promotion (unaided awareness also high at 37%).The AMAG logo is considered the most recognized symbol for Australia (49%) followed by the Australian flag. Respondents believe the AMAG logo communicates a number of positive attributes about Australian products including high quality (71%), good design (65%), reliability (64%), produced  with great care and craftsmanship (65%), pure & natural (50%), good value for money (49%) and  finally innovation (57%) (2010 SHANGHAI AWARENESS AND PERCEPTIONS OF AUSTRALIAN MADE LOGO n.d.).

 Rebut questions from opposition sides and solution

Trade regulation is not an important issue in today topic, why we have to mention that?

I disagree on your point. We totally agree that government regulation or standard toward the Australia’s goods are very important. Trade regulation acts an intermediate component to ensure the goods are up to the standard and safe to consume. Adding up with the Australia made logo; it can increase consumers confident toward the Australia product. Again, this can become a major selling for their Australia exporters to sell their products oversea. That why we need to emphasis this point to strengthen our point.

This logo cannot compete with other competitors?

 I total disagree on your point. First of all, the consumers have their positively attitude toward the product over the years. Additionally, this logo has been around 2 years, and most of the company who have carried the logo export success over its 22 years. Also, 89% of the exporters who said that it is a very useful tool that can help them promote their product and stand up themselves from their competitors. Also, there are a lot of successful examples or cases such as TASMANIAN HONEY COMPANY, PASSAGE FOODS, CHOCOLATE GROVE, RICE CUBE, GOLDEN EGG FARMS , CLARENCE RIVER FISHERMAN’S CO-OP, COBRAM ESTATE OLIVE OIL company . All for the company have experience sales growth and increase in the market share in the overseas market. That why we think that this logo can be an useful promotional tool to help Australian firm to compete with their competitors.

There are some businesses that have used this logo yet their business still fail.

I agree that from all the cases you all have mentioned is true and we cannot deny it. However, this is just a minority cases as according to my research has showed   89% of the exporters who used this logo has experienced sales increase and increase in the market share in the oversea market .For example, TASMANIAN HONEY COMPANY, PASSAGE FOODS, CHOCOLATE GROVE, RICE CUBE, GOLDEN EGG FARMS , CLARENCE RIVER FISHERMAN’S CO-OP, COBRAM ESTATE OLIVE OIL company . Also, I would like to argue that those business fail may not because of the logo, it may be caused by other reasons such as they implement wrong marketing strategies. Overall, with all the successful example and most of the exporters have said that this logo can be very useful for them to sell their business overseas. That why we can conclude that this logo still can provide firm a major selling point to sell their products overseas.

There is some incident that showed that Australia made logo does not provide or ensure the product is quality for consumer.

Yes, we agree those cases you all mentioned is true and we cannot deny it, but we have to know that nothing is prefect in today world, this incident is not only happened in Australia but it also happens in other countries. Also, even though this incident has happed, it does not really affect consumer confident towards the Australia product, instead consumer still have positively confident toward Australia made product. Also, Australia exporter’s sales still growth from 2006 till now. Overall, we can conclude that “Australia Made” this logo is so strong that all the incidents my opponent has mentioned does not really can bring negative impact toward this logo. Therefore, we can conclude that this logo is still a strong selling point for Australia export to sell their product overseas.

Other countries of origin such as Japan and USA have same quality as Australia

True, I agree that all of the country’s logo that you mentioned can become the major selling point for their own country product to sell in overseas. Also, I agree that consumer may choose other country product. However, it does not mean Australia cannot be a major selling point for exporters to export their product overseas. The reason is because the consumers have their positively attitude toward the product over the years. Additionally, this logo has been around 2 years, and most of the company who have carried the logo export success over its 22 years. Also, 89% of the exporters who said that it is a very useful tool that can help them promote their product and stand up themselves from their competitors. Also, there are a lot of successful examples or cases such as TASMANIAN HONEY COMPANY, PASSAGE FOODS, CHOCOLATE GROVE, RICE CUBE, GOLDEN EGG FARMS , CLARENCE RIVER FISHERMAN’S CO-OP, COBRAM ESTATE OLIVE OIL company.

Reference

Minister for Industry Open New AMAG Offices. n.d. http://www.australianmade.com.au/assets/Uploads/November-2008-newsletter.pdf (accessed April 30, 2010).

2007 CONSUMER AND BUYER SURVEY IN THAILAND. n.d. http://www.australianmade.com.au/assets/Uploads/2007-CONSUMER-AND-BUYER-SURVEY-IN-THAILAND2.pdf (accessed May 2, 2010).

2008 survey of logo users. n.d. http://www.australianmade.com.au/assets/Uploads/2008-LOGO-USERS-SURVEY.pdf (accessed April 30, 2010).

2010 DUBAI AWARENESS OF AUSTRALIAN MADE LOGO AND PRODUCTS. n.d. http://www.australianmade.com.au/assets/Uploads/2010-DUBAI-AWARENESS-PERCEPTIONS-OF-AUS-MADE-LOGO.pdf (accessed April 30, 2010).

2010 SHANGHAI AWARENESS AND PERCEPTIONS OF AUSTRALIAN MADE LOGO. n.d. http://www.australianmade.com.au/assets/Uploads/2010-SHANGHAI-AWARENESS-PERCEPTIONS-OF-AUS-MADE-LOGO.pdf (accessed April 30, 2010).

2010 SINGAPORE AWARENESS OF AUSTRALIAN MADE LOGO AND PRODUCTS. n.d. http://www.australianmade.com.au/assets/Uploads/2010-SINGAPORE-AWARENESS-PERCEPTIONS-OF-AUS-MADE-LOGO.pdf (accessed April 30, 2010).

2010 survey of exporting logo users. n.d. http://www.australianmade.com.au/assets/Uploads/2010-SURVEY-OF-EXPORTING-LOGO-USERS.pdf (accessed April 30, 2010).

Australian Made Australian Grown Research. n.d. http://www.australianmade.com.au/assets/Uploads/COMPLETE-RESEARCH-SUMMARY-2002-10.pdf (accessed April 30, 2010).

COOPER SENDS TASTE OF AUSTRALIA TO THE WORLD. n.d. http://www.australianmade.com.au/assets/Uploads/100830-Coopers-2.pdf (accessed April 30, 2010).

Food and beverage to Singapore. n.d. http://www.austrade.gov.au/Food-and-beverage-to-Singapore/default.aspx (accessed May 5, 2010).

GOOD MANUFACTURING PRACTICES (GMP) CERTIFICATION. n.d. http://www.foodsafety.sgs.com/gmp-food-safety-information-request.htm?wt.mc_id=gSSCglo0042&WT.seg_1=GMP&WT.srch=1&gclid=CNmsueX02agCFcF56wodZiXyHA (accessed May 2, 2010).

GROOVY CHOCOLATE EMBRACES SWEET MARKETING TOO. n.d.  shttp://www.australianmade.com.au/assets/Uploads/Groovy-Chocolate.pdf (accessed April 30, 2010).

HENSELITE CONTINUES TO OUT-BOWL INTERNATIONAL COMPETITORS. n.d. http://www.australianmade.com.au/assets/Uploads/100617-Henselite.pdf (accessed April 30, 2011).

HYDRUM—AUSTRALIAN QUALITY EXPORTED TO THE WORL. n.d. http://www.australianmade.com.au/assets/Uploads/101105-Hydrum-update.pdf (accessed April 30, 2010).

logo.n.d. http://www.australianmade.com.au/logo/ (accessed May 2, 2011).

MIG INTERNATIONAL CRACKS CHINESE MARKET.

http://www.australianmade.com.au/assets/Uploads/100716-MIG-International.pdf (accessed April 30, 2010).