Section 2 - Marketing: Sell what you grow

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Section 2 - Marketing: Sell what you grow
Audio-embedded PPT (will include videos, pictures and audio narration of each slide)
Each of the following (1-6) represents a single slide, except No. 3, which will probably be a few
slides long
1)
2)
Table of contents
 goal of marketing lesson
 basic marketing concepts for a small-scale diversified farmer
 how to use the tip sheets
 how to use the marketing worksheet and how it relates to your business
plan
Lesson 2 Goals for farmer participants:
a) to learn about a variety of market channels for small/medium-scale diversified
farmers
b) to consider each market channel individually and what it would take to enter that
market
c) to identify the 2-4 market channels that seem like the best fit for your farm
business and briefly describe how they would complement one another in an overall
farm marketing plan
d) to identify challenges and next steps to entering those markets
3) Marketing overview (a few slides long): a beginning small-scale diversified farmer
should consider a variety of market outlets (as outlined in tip sheets), select a few of the
best options, and consider how they work together… Nick fill this in.
Include videos here: SARE and Cornell (could also include short video clips of a
few different market venues in action and/or videos of Latino or Hmong farmers
speaking about their marketing choices).
RMA golden rules of marketing - short stories and/or pictures that illustrate each
selected rule. Nick to pick out a few of the golden rules to illustrate, such as Marisa's
suggestions:
-start as small as you can and learn the markets
-diversify to manage risk
-know your story and tell it!
-direct sales and wholesale markets take different skills and different strategies, and bring
different benefits
-remember to keep your financial and personal goals in mind
-remember to calculate the COSTS of your markets as well
4)
How to use the tip sheets: read each one and ask yourself the question at the bottom –
try to answer those questions before moving on to the next tip sheet. The tip sheets are
meant to help farmers evaluate each individual marketing outlet option. (Slide could be
image of a tip sheet with arrows key parts and and voice narrating what to do.)
5)
How to use the marketing worksheet: use this worksheet to write down your choices
for marketing outlets, why you chose them, and how they complement one another.
This worksheet is meant to help farmers evaluate how their selection of marketing
channels work works together as a whole marketing plan. (Could use illustration and
narration similar to tip sheet slide.)
6)
Further resources list (ed. note: this list needs to be developed)
a.
Matchmaking for vegetables,
http://www.yesmagazine.org/happiness/matchmaking-for-vegetables
b.
Cornell Web site
c.
ATTRA resources
i. New markets for your crops
ii. Post-harvest handling
iii. Scheduling for a continuous harvest
iv. Selling to institutions (Crissie’s updated version)
Tip sheets:
These will be 1-2-page stand-alone pubs with plenty of illustrative pictures. Include: definition
(1-3-sentences) of highlighted market, bulleted advantages and considerations lists, and “askyourself” questions.
1. Agritourism and You-pick
1. Do I like having people at my farm and entertaining?
2. Can I keep my farm tidy and hazard free?
3. What permits and extra insurance do I need?
2. Community Supported Agriculture (CSA)
1. How many other CSA farms are in my area and do they have waiting lists (unmet
demand that I could tap into)?
2. What will it take to organize and deliver a consistent amount and variety of
fresh fruits and vegetables for all my CSA members each week over a whole
growing season?
3. What kind of record keeping do I need to do in order to keep track of how much
product in the field, when it will be ready to harvest, what’s needed for
deliveries, and other timing and planning issues?
4. Will I enjoy the social aspects of running a CSA, including hosting festive
gatherings or work days for members, writing newsletters to include in weekly
boxes, and generally creating opportunities for people to get to know the farm?
5. What will the impact be on net income, return on investment and cash flow?
3.
4.
5.
6.
7.
6. Will my quality of life be impacted?
7. How will a CSA fit with my other markets?
8. What do I need to buy to develop a CSA?
9. What are the time requirements? Will I have to hire employees?
Institutional marketing (hospitals, prisons, corp. cafeterias…)
1. Do I have liability insurance or a Good Agricultural Practices (GAPS) plan? Do
these buyers require either of these items?
2. How do these buyers want produce packed and delivered?
3. What quantities do they need?
4. Do they need produce to be pre-cut or lightly processed for easy use?
5. What’s the best way to communicate with these buyers about my product
availability (fax, email, phone)?
6. Is there a competitive bidding process (for schools and other public
institutions)? What do I need to do to be considered?
7. How will working with institutional markets affect my other markets?
8. Will I need to hire another employee?
9. What investments must I make?
Internet marketing
1. What is my experience and comfort level with computers? If limited, who can
help me with my computer/internet work on a regular (weekly) basis?
2. How will I keep my site up to date in order to keep attracting customers to it?
3. How much time will it take to maintain an electronic list of customers for enewsletters and updates?
4. How might internet marketing fit, and perhaps support, other marketing
channels, such as CSA, agritourism, and institutional markets?
5. Do I mind being on the computer?
Farmers’ Market
1. Where are the nearest farmers’ markets and are they accepting new vendors?
2. Do these farmers’ markets seem to have enough customers to make it
profitable for venders?
3. What are the other vendors selling? What’s my niche?
4. Do I have an extroverted personality and do I enjoy working with the public? If
not, can I hire someone with these qualities who can staff my booth?
5. Do I have the time to spend at market and willingness to wake up before dawn
week after week (for morning markets)?
Grocery Stores
1. What products do grocery stores near me want or need that I could supply?
2. How do these buyers want produce packed and delivered? What quantities do
they want?
3. How will I ensure a consistent supply of a few key products over a period of
several weeks?
4. Do I have a Good Agricultural Practices (GAPS) plan? Do these buyers require it?
Livestock auctions
1. Where are the nearest sale barns?
2. Does the sale attract a lot of buyers and are the prices generally good?
3. What additional equipment do I need (livestock trailer)?
8.
9.
10.
11.
4. Do I need a sale barn to supplement my other market channels? Is it a strong
enough option that I want to use for more than just a place to dump my
problem stock?
Restaurants
1. What restaurants are the best fit for my product profile? (i.e. ethnic restaurants,
specialty bakeries, high-end gourmet restaurants, etc.)
2. What production, handling, storage, and delivery methods will I use to ensure
the freshest and highest quality products to high-end chefs?
3. How much ahead of time do chefs need to see an accurate schedule of product
availability to allow them to plan their menus?
4. Am I willing and able to be extremely easy to get in touch with (via cell phone,
internet, etc.) and respond as needed to urgent requests from chefs?
5. How frequently and quickly am I able to deliver to restaurants?
Roadside Stand
1. Is my location on a road with a lot of traffic?
2. Do I have space for parking and can I put up sufficient signage to alert drivers
and give them time and space to pull off the road?
3. What would my hours and staffing needs be to run the stand effectively?
4. What licenses, permits or zoning ordinances do I need to be aware of?
Small or medium distributors
1. How do these buyers want produce packed and delivered? What quantities do
they want?
2. Do I have liability insurance or a Good Agricultural Practices (GAPS) plan? Do
these buyers require either of these items?
3. Will using produce jobber outlets complement my entire farm business?
4. Will there be requirements that don't complement my business?
Terminal Market
1. How far away is the nearest terminal market?
2. How do the buyers at terminal markets want produce packed and delivered?
3. How much volume is needed to supply terminal markets?
4. Do the demands and the production required at the terminal market
complement my other farm enterprises?
5. What additional costs will I need to incur to participate in this market?
Marketing worksheet
Short worksheet to help farmer organize information taken from tip sheets and (initial) choice of
marketing channels.
Preface:
The best marketing channels for your farm will depend on what kind of work you like to do, the
size of your farm and where it is located in relation to potential customers, and other factors
that vary from one farm to the next. As you consider which marketing channels to pursue, think
about which market outlets will allow for the best combination of the following criteria:

Low risk



High potential profit (either through high volume, low margins OR low volume, high
margins)
Low associated costs (labor, supplies, or equipment)
Enjoyable to you and/or your farm business partners
Based on your answers in the marketing tip sheets provided, please list what you would
consider to be the best 3 marketing methods for your farm. Please list the market channel that
you would use as your main method of marketing first.
1)
2)
3)
What are the 1 or 2 things you value most about the main marketing channel you chose as
Number 1 (above)?
1)
2)
How will you use the other (secondary) marketing methods listed above in combination with
your main method? (For instance, perhaps you plan to produce more than enough for your
Number 1 market to ensure a steady supply, but you keep the secondary markets open to take
surplus produce to as needed.)
What biggest challenge you expect to encounter in developing your main marketing method?
List 1 or 2 ways you will address this challenge
1)
2)
Are these market outlet choices consistent with your goals as outlined in your Lesson 1
worksheet?
Do you need more information? Where will you get it?
What are the first 3 steps you need to take now to develop these marketing channels for your
farm business?
1)
2)
3)
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