Marketing Products identified by their origin
(or Geographical Indications)
A tool for rural development
1. What is a GI ?
A GI or geographical indication:
• is a Geographical or traditional name or sign (reference to) used on
certain products
• which corresponds to a specific geographical location or origin (eg. a
town, region, or country).
• The use of a GI may act as a certification that the product possesses
certain qualities, or enjoys a certain reputation, due to its
geographical origin.
• GIs are usually the result of many years of development of a product
by producers and artisans in a given region, development which give
to the product a certain reputation !
• Art 22.1 of the TRIPS agreement :
•
Geographical indications are, for the purposes of this Agreement, indications
which identify a good as originating in the territory of a Member, or a region
or locality in that territory, where a given quality, reputation or other
characteristic of the good is essentially attributable to its geographical origin.
3. Justification for special protection of GIs ?
• Because GIs reflect a know-how built up over years, by
generations of artisans
(They are a collective Intelectual property) - A regional heritage
• Because they represent traditional values,
• Because they often fullfill external benefits (maintain
landscapes, or biodiversity, maintain a healthy regional
economy)
• To protect against cheaper industrial imitations (that do not
guarantee the same internal qualities or external benefits)
• Protection of consumers against misuse of Gis
• To protect against « delocalisation » and the « robbery » of the
IP
Important dimensions of PDOs and PGIs
-Origin
-Link to the terroir and tradition
-production method that respects the product
- It is a collective right !
EXAMPLE : The Gruyère Cheese
Origine
«Gruyères» village
Production methods that respect the product
They are really Territorialised collective
heritage.
PDOs and PGIs give the rights to the
supply chain to have exclusive rights on
this heritage.
Link to the Terroir and to tradition
On Marketing :
The creation of Value for the consumer involves :
•A number of physical functions:
•
•
•
•
Production
Processing
Transport
…
•But value is increasingly created by non-physical
attributes :
• Image
• Security – assurance
• …
•Which depend on other functions:
•
•
•
•
•
Management
Coordination
Quality control
Marketing
…
The hypothesis of differentiation
• - Generic : batches may be mixed because
they are perceived as perfectly equivalent.
• - Differentiated : products provide
buyers/consumers with a specific « unique
selling proposition » (USP)
Generic vs differentiated
5
generic
Differentiated?
5
A Geographical Indication is
differentiated !
A Geographical Indication is a common asset for
all producers of the area
•All actors of a PDO supply chain “share” the reputation
of the name (a common asset !).
•They must therefore coordinate to assure common
quality production, in which each partner is rewarded for
the quality (added-value) he contributes.
•PDO products are often produced by many smaller, artisan based enterprises,
but they compete with larger industrial models – that integrate many (or all) of
the functions.
2. The specificities of the PDO supply chain – the alliance
• For an alliance to work, they need :
• An internal governance structure to assure that all members feel
represented and that decisions are reached efficiently
• A code of practice to define the product (a certain latitude is necessary, to
let each artisan contribute his personal touch and assure the product does
not become uniform)
• A quality assurance system, to assure:
•
•
•
no free riders
and that different chain actors may trust the work of the others
and that the final product fulfils the “common” promise to the consumer
• Common high quality marketing efforts to communicate these specific
qualities and assure the product is recognised by the consumer as carrying
immaterial values