On Fri, 21 Mar 2008 12:53:15 +1100, "Rod Speed"
> wrote:

>Robert Klute > wrote
>> Rod Speed > wrote
>>> Robert Klute > wrote
>>>> Sqwertz > wrote
>>>>> SMS <SMS >> wrote
>>>>>> Sqwertz wrote
>>>>>>> SMS <SMS >> wrote
>
>>>>> Happy now? This is getting boring. You will never convince me that
>>>>> you and any other person who follows religious dietary restrictions
>>>>> are of sane mind and body. And nothing short of a scientifically
>>>>> conducted poll would convince us that kosher products do/don't
>>>>> sell better among non-koshers because they're kosher.
>
>>>> To an extent you are right - in this newsgroup we are just speculating as
>>>> to why. We don't know for sure if it is people who keep kosher, believe
>>>> kosher is purer or tastes better, have food allergies, keep halal, etc.
>
>>> Or even whether they even consider whether its got a kosher label on it or not.
>
>>>> But, it doesn't matter.
>
>>> Corse it matters, particularly if they dont even
>>> check whether its got a kosher label or not.
>
>> What doesn't matter is if they do check, why the check.
>
>Wrong. We happened to be discussing whether the kosher
>label significantly increases the sale of particular items.
>
>> If they don't it they don't contribute to the increased sales
>
>You dont know that they arent buying it because the product
>appeals to them more than the alternatives available.
>
>> and thus not part of the population the manufacturer is targeting.
>
>We arent discussing targetting.

Yes we are, adding the Kosher symbol it targeting a group of consumers
for whom that designation has a positive influence on their purchasing
decision.


>>>> What matters is that the manufacturers believe that
>>>> getting a kosher designation increases their sales
>
>>> You dont even know that. Campbells clearly doesnt believe
>>> that if they really do only have one item with a kosher label.
>
>> Well, yes, that is the point. Campbell's doesn't
>> believe it is worth the cost for most of their products.
>
>And when you havent established that the cost is significant, that
>clearly shows that Campbells doesnt believe that the kosher label
>significantly affects sales of at least the products they sell.

The cost may or may not be significant. Campbell's has decided it is
not worth the effort, and that is there right.


>> Apparently, just one had enough of a audience,
>> possibly strict vegetarians or vegans.
>
>And you dont even know whether Campbells believes that the
>kosher label significantly increases the sales of the particular
>product, JUST that the tiny cost of the kosher label is worth
>spending with that particular item or that they chose to give it a
>whirl to see if it had any effect on the sales of that particular product.

I have no idea, and you don't either, as to why Campbell's only has one
kosher product or even why they got the kosher designation for that
product.

>
>Its sales clearly didnt convince them to bother with any
>other products if that is the only one with a kosher label.
>
>>>> and that the resulting profits more than offset the cost of getting that designation.
>
>>> And that in spades.
>
>>>> If getting the designation didn't, companies other than those
>>>> intentionally serving the kosher market, like Hebrew National
>>>> and Empire, would not bother with it.
>
>>> Or the cost of the kosher certification is a trivial part of their total costs,
>>> so they just take the easy way out and get it when it doesnt require any
>>> fundamental change in the way the product is produced etc.
>
>> Again, they do it when the increase in net revenue
>> exceeds the costs of implementing it.
>
>You dont know that, particularly when its going to be very difficult for
>any manufacturer like Campbell to quantify just what increase in revenue
>there is from having a kosher label on that particular product, when there
>are so many other factors that also affect the sales of a particular product.

That is true for any product, kosher or not, particularly new product
introductions. Why bother introducing any new product when you have no
idea whether it will sell or not?


>> I would include the cost of setting up separate production lines or
>> changing the recipe as part of the costs of getting the designation.
>
>The second is very unlikely, and you dont know that it doesnt have
>a separate production line regardless of the kosher certification.

I didn't say it would involve a separate production line. Only that if
it did it would have to be included in the costs. For example, if
Campbell's did decide to do a kosher split pea soup, it would have to do
it on a separate production line from the split pea with ham soup to be
kosher. Similarly for the vegetarian vegetable soup to be pareve, it
could not be prepared or canned on the same line as a cream of vegetable
soup or any meat containing soup.


>
>>>> After all profit is profit.
>
>>> But it may not be feasible to work out just what
>>> value the kosher label has in terms of sales.
>
>> Maybe not the exact cost,
>
>Not even close in fact when so many other factors also affect the sales
>that a particular product will achieve with an operation like Campbells.
>
>> but good enough to whether to do it.
>
>Easy to claim, hell of a lot harder to actually substantiate that claim.

If it were easy, everyone would do it or not. But that is what surveys,
market research, data mining, benchmarking, etc are for - helping to
make more than a wild guess. And, you may be right, Campbell's may have
decided it just isn't worth the effort to even research it. We just
don't know.

>
>> If you are not that sure, then you do it for one product and see if
>> there is enough of an increase to justify doing for other products.
>
>Pity its impossible to be sure what a change in sales
>volume of a particular product like that is due to.

Oh, I don't know. If sales increase by X percent within Y months of
introducing the kosher version. The odds are pretty good that something
to do with that process resulted in a a favorable perception by the
public.


>It can be something as basic as no one else bothering to produce a soup
>for vegetarians, whether stores bother to stock that particular soup based
>on what they decide is likely to appeal to their customers, etc etc etc.

That's the whole point. The kosher designation has a broader appeal
within the populace than just those who keep kosher for religious
reasons. If it didn't only companies for whom producing kosher products
is part of their mission statement would do it. Although even Coca-Cola
finds it worthwhile to ship non-HFC coke during Passover.