BM A

B13002 | B13021 | B13022 | B13032 | B13039| B13047 | B13052 | B13182

Calgene Inc. and the Pure Food Campaign
Case Facts
Calgene has invested $20 million in a research to develop rot-resistant tomatoes by employing gene-
splicing. This technique results in redder, firmer and more flavourful tomatoes. The general
environment is a major concern because many consumers are sceptical of modern science and feel
such products are harmful. Moreover, Jeremy Rifkin, whos heading the Pure Food Campaign, is urging
farmers, retailers and shippers to boycott this product. Consequently, Calgene has taken the
necessary promotional steps to garner support.

Attributes in Product Evaluation
Tomato, being a commodity, is a low-involvement purchase and is generally bought by senior
members of the family (wife/husband) or singles who are living independently. Most of these
consumers have very clear, pre-defined criteria on which they are able to quickly evaluate the product.
The evaluation is generally done through proxy criteria (colour and firmness are taken as a proxy for
taste) since functional criteria (taste and juice content) cannot be directly tested. Some of the key
criteria which are considered typically for normal tomatoes are: Colour, shape, firmness, size,
availability and price.

The Perception of Genetically Modified Tomatoes
In the case of synthetically engineered tomatoes, the users have to contend with a new evaluation
rule, i.e., whether they are okay with consuming tomatoes which have been genetically modified.
While taking this decision, the consumers are bombarded with a large number of negative publicity
which has completely changed the associations that consumers might draw with this new product.
Hence, instead of analysing this product on the typical functional dimensions, decisions are now being
based purely on an emotional dimension, with a large number of negative connotations:
Dangerous/Harmful to health
Anti-religion
Against natures laws
Product Diffusion and Target Market
Factors that affect product diffusion for a new product are:
View of opinion leaders
Timing of launch
Pre-conceived notion about similar products existing in the market
Brand credibility
Most of these factors are going against Calgene, and hence they would have to use a disruption
strategy to build any kind of positive perception in the consumers minds. Simply providing more
information through pamphlets etc. will not be sufficient. They will have to change the customers
thinking completely through a strong advertising campaign sustained over a long period of time so that
focus can be brought back on the functional features of the product, the area where the product is
strong. Taste tests by consumers can help in gaining customer confidence, which Calgene should have
performed as their first step.
Since the bioengineered tomatoes demand a 30-100% premium, the target market for Calgene would
be:
Higher income individuals who are ready to pay a premium for better quality
Youngsters living independently who are more open to scientific notions and would be less
bothered by anti-religion or anti-nature sentiment
In terms of retail outlets, they should focus on Modern Trade stores which are in their supply
chain because fresh supply of tomatoes is important