Unit 2: Chapter 1: Marketing Plan Basics
A Marketing Plan should concisely answer the questions: What are the industry and market trends for my product? Who are my customers? Who is my competition? What can I charge? and How will I promote my product throughout the year? Articulating well-researched answers to these questions is one of the most important steps you can take toward your success! Use the worksheet at the bottom of this page to create your marketing plan online as part of your overall business planning process.
Know your customer
Most importantly- what does your customer want? Customer preferences are based on a number of factors. Take some time to do some research on your customer base before you commit to a specific product. You might be surprised to find that the people you thought might be your customers don't want or aren't able to buy the cave aged cheese that you love to produce. Consider such factors as: What are the demographics of your potential customers? Are they rural or urban? How old are they? How much do they earn (and how much disposable income do they have)? Do some outreach to see if they are interested in your product- even provide samples. Bottom line- no matter how much you love to make or produce something, it doesn't necessarily mean that someone will buy it.
Size of the market
What is the local, regional and national demand for your product? This will take some research on your part, but it is essential to know the size of your market. Is your product something that is well known or something that provides a well known benefit to consumers? If your product is a "hot topic" nationally, this could be a key part of your marketing strategy. For example, "locally grown" and "pasture raised" are hot topics nationally. One local farmer is able to direct market his pasture raised, black angus beef at a premium price to local customers based on this market preference.
Know your the competition
Depending on which marketing channel you use and the type of customer you are targeting, you will have competition for your products. Gather as much information as you can about your potential competitors. Articulate what makes your product unique and capitalize on this.
Bring your product to your customer
Once you've identified your customer, go to them. For example, one farm markets their premium quality pastured pork through a local acupuncture clinic- because that is where they identified a population of people who not only wanted the product but would also pay for it. Some ideas are to: create mailing lists to send flyers, newsletters or postcards to; contact local restaurants, groceries or specialty stores; cater events or set up free tastings in cooperation with local farmers markets, grocery stores, or at festivals.
Promote your product
Make a direct connection with the consumer. They want to know where their food comes from. Educate your consumer about why your product is better for them. A highly visible and descriptive label highlighting your production practices should be part of your product's package. Provide amazing customer service and build customer loyalty - word of mouth can be your most powerful marketing tool.
Ask Yourself Hard Questions (1)
Do some homework on your product ideas and your marketing strategies. One of the simplest ways to do some preliminary market research is to talk about your product ideas and research the products you are thinking about growing, processing, or selling. Some examples:
- Ask your friends and family what they think about your ideas—do they think that the product will sell? Would they buy it? Would their friends buy it? How much would they buy and how frequently would they buy it?
- Visit people in a different part of the state who are growing, processing, or selling similar products. Many farm businesses are quite open and friendly to visitors. In some cases, these businesses are willing to help get you started with some good advice on what to do & what not to do.
- Contact your local extension office or specialist. Interview them about their experiences with farm businesses that are producing similar products. Ask them about meetings and industry groups that might be pertinent for you to attend.
- If you are going to wholesale your product, visit the wholesaler! Have the wholesaler tell you what they want—maybe it is something different than what you had in mind.
- Remember that you will have to test these ideas further when you prepare your full business plan.
For each enterprise you're considering, complete an online Marketing Plan worksheet and save it to edit or print out later:
[Continue on to Unit 2 Chapter 2: Choosing Market Channels]
(1) text and online worksheets from the publication Starting an Ag Business: A Pre-Planning Guide by Steve Richards, 2004.
