Our KIM Strategy
AWI’s strategy for increasing knowledge + innovation + marketing (KIM), is simple: research and uncover what consumers want and deliver it to them in the most efficient and effective way possible.
Any program implemented by AWI is always focused on one simple strategic vision: to increase the global demand for Australian Merino wool.
Increasing demand is possible through the development of Australian Merino products that:
- Knowledge - Target and understand consumers’ needs, concerns or desires
- Innovation - Utilise new production knowledge and emerging technologies
- Marketing Support - Develop partner marketing programs to drive sales
Combining the intellectual property and production know-how from AWI’s knowledge banks is the guiding force behind Australian Merino products with the potential to shift significant global demand.
Once products are developed, AWI provides the new lines of Merino wool products with the appropriate marketing support to see that it grabs the attention of the right customers.
1. Knowledge - Understanding What Consumers Want
Unlike traditional marketing strategy that dictates to consumers what they need, AWI is instead focused on listening to what consumers want.
AWI’s close business relationship with manufacturers and retailers provides market intelligence on what it is that their consumers are looking for in wool garments.
The identification of these market demands sets a challenge to work towards. It also means that the products created by AWI directly attack unfulfilled market segments and, as such, create a bigger market for Australian Merino.
It is for this reason that AWI focuses so much attention on consumer and product research with our global retail and manufacturing business partners when developing new products.
Research and communication from our business partners produces very specific results that AWI can work towards. Recent examples include the need for machine-washable wool suiting, less pilling on garments and quick drying Merino fabrics.
AWI is dedicated to developing very strong relationships with these partners and as a result AWI offices are located close to our most vital markets:
- China
- Hong Kong
- USA
- Italy
- India
2. Innovation - Developing Production and Technologies
Once research has established what product characteristics are in demand, AWI’s task is to find the best, most economically viable and sustainable ways to fill this market niche.
The scientific development of new fabrics often taps into the existing know-how that AWI has accumulated in undertaking many previous projects. Alternatively, deep research is instigated to find the best possible methodology or technology available to create the product in question.
In either case, the development of each new product builds on AWI’s collective intellectual property.
AWI works collaboratively with commercial partners to develop products to meet consumer needs.
These products are then brought to market as quickly as possible and delivered to the right retail chains to reach the right consumer.
In many ways AWI acts as a facilitator of information: from consumers, all the way back down the wool pipeline to where Merino begins its life cycle. The best methodology and technology are employed from the farm back up the supply chain to reach a targeted consumer with the product they want. Each stage is developed to be as efficient as possible and with the final consumer in mind.
3. Marketing Support
Crucial to the successful development of any new product, a targeted marketing strategy is often employed to ensure that the new benefits of any particular product are communicated to the consumer.
Where companies that are working with AWI - AWI will support marketing activities where there is new demand creation, not for existing products.
As the Merino products brought to market by AWI are often world-first in delivering new technology and ideas to consumers, marketing support is vital to help educate the market.
AWI does not employ ‘shot-gun’ style advertising to reach consumers; instead it undertakes very targeted marketing campaigns to ensure efficiency in both are marketing budget and consumer reach.
This means that traditional advertising methods such as buying billboards or TV ads are sacrificed in favour of more directed activations. These are developed specifically for each new product, but can include:
- Informative and visible swing tags – directing consumers to the benefits of each garment
- In-store adverting and point-of-sale displays to boost the sales of Merino items on the shop floor
- Building the Australian Merino brand via public relations and business-to-business relations
- Market research to uncover consumer trends and focus product development
- Market presence: from building a dominating package for each important global trade show to opening dedicated offices in each important territory
- Activating key influencers: from fashion designers to movie stars, new Merino products are aligned with those whose influence can affect the market and consumers
Much like product development, marketing support is often undertaken in conjunction with a specific business partner who is carrying or launching an Australian Merino line that is new demand creation.
AWI is constantly launching new marketing devices and marketing opportunities continue to educate consumers about innovative new Merino products and drive the demand for Australian Merino.