FARMERS' MARKET FEDERATION OF NEW YORK VOLUME 19 WINTER 2014 NUMBER 4 Gaining a Competitive Advantage for Your Business Debra Perosio, Dyson School of Applied Economics and Management Cornell University What type of business do you own? Maybe a farm market selling fresh produce? Maybe you produce artisanal cheese on your dairy farm that is sold wholesale. In either case what sets your business apart from the competition? What makes you different or unique from the “other” farm stands and artisanal cheese makers? Without some point of difference, or in marketing lingo, “positioning” of your business, you will soon become “just like everyone else” in the mind of your wholesale and/or retail customers. In today’s competitive marketplace your goal should be to stand out from the crowd! Here’s a step-by-step process to help you create a unique competitive advantage for your business! Step 2: Creating your “Frame of Reference” A frame of reference is the reference (it could be a reference to a type of product, business or industry) that is most like your business. For instance, when people think Wegmans the frame of reference is “supermarket.” When people think about your fresh produce business the frame of reference is “farm market.” Positioning Your Business Step 3: Creating your “Target Market” It is critical to understand and clearly define who your target customers are. Rather than trying to cater to everyone you should focus on a subset of customers who you feel are your “best” customers with the greatest potential. Step 1: Creating your “Owned Benefit” The “owned benefit” for your business is the one unique idea that you want your customers to associate with your business. Is that one thing clear, simple and positive? So for instance when you think about Apple Computers/iPhones, many people think “innovation”, when we think about Wegmans we think about “customer service” and “freshness” Understanding your target market allows you to tailor your marketing mix (product, promotion, price and place) to the specific preferences of that target market. What is that one thing that sets you apart from your competitors? It could be attributes like customer service, quality, growing the best sweet corn for 50 miles, or the experience you provide customers Once you have identified your target market you want learn as much about them as possible. 1 For example a target market for an organic farm selling produce at a roadside stand might be: “Gen X’ers” who are concerned with health and wellness that live within a 30 mile radius of the farm who have children and are looking for excursions the family can enjoy.” Advertising Step 4: Creating your Positioning Statement Putting the “owned benefit”, “frame of reference” and “target market” together creates a positioning statement. Typically a positioning statement looks like this: For ___________ (target audience) ___________ (your brand or business name) is the ____________ (frame of reference) that ________________ (owned benefit). Advertising can be “traditional” like TV, print, radio ads or “alternative” like signs on the floor of your farm market or someone standing by the road with a huge sign directing people in! Advertisements should be used consistency so that your target audience gets accustomed to hearing about you and know where to “find” you when they decide that a trip to the farm market is their destination Sales Promotion Thinking about the farm market, assume the produce is organic and picked fresh daily. In addition to produce you provide recipes and canning/freezing information. There is always someone at the stand to provide a high level of customer service. So based on this, what is your “owned benefit”, “frame of reference” and “target audience?” A possible positioning statement might Sales promotions can be a sale or, alternatively, it can be an event such as a corn husking contest Sales promotions are considered to be “short-term” promotional tactics and tend to stimulate action on the part of your target market Ideally advertising and sales promotions complement each other and should be used together Personal Selling be: “For Gen Xer’s who live locally , value organic produce and support local businesses (target market), Smith Farms (brand name), is the organic farm (frame of reference) which offers fresh picked organic produce along with superior customer service, education and information.” (owned benefit) Creating your Promotional Strategy Personal interactions with customers create an emotional connection to you and your business Consider ways to directly interact with your customers in a meaningful way…for our farm market think about offering samples, conducting cooking/canning demonstrations and hosting day-long family focused events Public Relations Based on this positioning statement you now have a template from which to develop your promotional strategy. A promotional strategy consists of five elements: advertising, sales promotion, personal selling, public relations and social media. 2 Create attention by sending your local paper a press release about a new variety you are growing Invite your local newspaper columnist to the farm…maybe they will write about their experience addresses so you can send out regular emails. Consider one or two “events” during the season at the farm where the entire family can enjoy an hour or two of fun. Make sure you include local newspaper columnists/radio personalities/other influential people in your emails…you never know where great PR will come from! Sponsorship of teams and events are also strategies that provide positive PR for your business Social Media Finally, if you haven’t already jumped on the social media bandwagon you need to explore how to utilize social media in your promotional strategy Start simply with a Facebook page but keep it interactive and updated! You should be posting daily during the season As you develop your promotional strategy make sure it reflects and highlights the elements of your positioning statement. This will help sharpen and gear your messages specifically toward your well defined target market. By creating a distinctive position for your business through the development of a positioning statement you are well on your way to an effective, successful and UNIQUE competitive advantage! Putting It All Together Let’s start with your target market: Gen X. Gen Xer’s are generally young families with children who are very busy, very scheduled and whose discretionary income is often directed toward kids, homes, etc. They are on-line, may not read a local newspaper and have satellite radio so local radio commercials may be out of the question. What is the best way to reach them? What types of experiences are they in search of? Understanding their lifestyle can give you insights into the optimal ways to communicate and create lasting relationships with them. If you are on a limited promotional budget think about using social media especially Facebook to let your target market know what is going on at the farm market and perhaps what is ripe day each day. Provide a quick and easy sign-up sheet at the farm market to collect email “Smart Marketing” is a marketing newsletter for extension publication in local newsletters and for placement in local media. It reviews elements critical to successful marketing in the food and agricultural industry. Please cite or acknowledge when using this material. Past articles are available at http://agribusiness.dyson.cornell.edu/SmartMa rketing/index.html. 3 2015 Farmers Market Managers Conference Farmers Markets: Maintaining Community Connections Ramada Inn, Syracuse Thursday, Feb 19, 2015 Time 10am Noon 2:15 2:30pm 3:45pm Session Registration and visit with the conference vendors Ambassador Room Local food lunch Food Safety: updates on the Food Safety Modernization Act and current Health Regulations Gretchen Wall, Produce Safety Alliance Coordinator, Cornell University John Luker, NYS Dept of Agriculture & Markets, Food Safety and Inspection Break in the Chancellor Room Ambassador Room Director’s Room Experienced Manager Track Beginning Manager Track Coming Back from Disaster: the Sandy Transparency in Management Story Vendors can be your best ally in How do you rebuild your market after a managing a successful market. But they natural disaster destroys the need to understand your decisions and community and the local farms? What feel they are a part of those decisions. does it mean to the community to have They need to understand why a rule is the market restored? Long Beach necessary and how it will build market experienced a disaster with success. They also want to feel that the SuperStorm Sandy and will tell their fees they pay are being used to build story. the market. How can you include your Bernadette Martin, Kennedy Plaza vendors in your decision making Farmers Market process? Sue Gardner Smith, Brighton Farmers Market Jim Farr, Rochester Public Market Jennifer Jennings, Schenectady Greenmarket Community Events: Are they a drain Key Elements of a Successful Farmers on the market or an untapped Market opportunity? The saying is “When you’ve seen one Many communities hold events farmers market, you’ve seen ONE throughout the summer that impinge farmers market.” They are all unique. on market attendance. The panel will But, there are commonalities with discuss how they have partnered with successful farmers markets. the community to make the market a Jim Farr, Rochester Public Market part of the event. Jackie Farrell, West Side Farmers Market Suzanne Carreker Vogt, former manager, Saratoga Farmers Market 4 Monika Kurjewski, Troy Waterfront Farmers Market 4:45pm 6:30pm 8:30pm Break until dinner program Ambassador Room Dinner Buffet and speaker: Innovations in the local food scene Chris Fowler, Syracuse First Hospitality Suite opens in the Continental Room Friday, Feb 20, 2015 Time 8am 9am 10am 10:45am 11am Noon 1pm 1:30pm 2:30pm 2:45pm Session Registration and breakfast Ambassador Room Emerging Models of Farmers Markets While most people think of farmers markets as multiple farmers and a sea of white tents, recent years have seen a wide variety of innovative market models. Each of these models plays a role in their community and fills a need. The panel will discuss their market, how it works and why it is needed in place of the traditional farmers market model. Suggested speakers: Mitch Gruber, Foodlink’s Urban Farm Stands and Curbside Market Maureen Blanchard, Schoharie Fresh Mike Leahy, CHOW bus, Binghamton Role Playing for Market Managers This hands on session will explore the issues managers face with “problem” vendors through role playing and group discussion. The Federation Board will play a cast of characters Coffee break in the Chancellor’s room Responding to a Crisis: Managing the Media Attention Lindsay Ott Wilcox Local lunch in the Ambassador Room Farmers Market Federation of NY annual meeting Healthy Tastings Margaret O’Neill Providing samples of delicious foods that feature fresh local produce is an effective way to encourage customers to try new foods, to eat healthy, and to increase market sales. Learn strategies and techniques for "market friendly" healthy tasting experiences that are safe, effective and fun. Coffee Break in the Chancellor’s Room Ambassador Room Director’s Room Experienced Manager Track Beginning Manager Track Regional Networking: What we can Social Media accomplish together Facebook, Twitter, Instagram, Pinterest… Where should a market be?!? This session will demystify social 5 Kim Lamendola, Southern Tier West Regional Planning and Development Board 3:45pm 4:45pm 5:00pm media and show you how effective it can be in communicating with your customers and promoting your market. Melanie Beam, Populuxe Marketing Technologies Ambassador Room Freebie Marketing Lindsay Ott Wilcox Effective marketing needs to break through the clutter - but it doesn't need to break the bank. You'll acquire savvy, budget-friendly strategies for connecting with your target audience. Adjourn Hospitality Suite opens in the Continental Room Saturday, Feb 21, 2015 8:45AM: Tour of the CNY Regional Market with Geno Elemos The CNY Regional Market is a very popular weekend spot for Syracuse eaters. The market offers a Thursday market from May through early November, a year round market on Saturdays and a year round Sunday flea market. Between markets they often host community events and concerts. The venue is located on 46 acres in the city of Syracuse and boasts a retail farmers market business, wholesale food buyers/distributers, an indoors retail “commons” and 5 retail sheds. The Regional Market was completely renovated in the early 2000’s. It transformed the look of the market and began an upward spiral of both consumer and farmer usage of the market. Today the market draws upwards of 19,000 people each Saturday throughout the summer and over 6000 during the cold winter months. Recently, the CNY Regional Market added an “F” Shed that is unique in design and energy efficiency. Geno will walk the group through the market grounds pointing out the highlights of the facility and allowing managers to see what goes on at this busy facility. Be sure to ask questions, as Geno is very knowledgeable about all aspects of the CNY Regional Market and its infrastructure and is happy to share. Join us after the tour for a Q & A session in the Market’s Executive Board Room where we will also snack on foods from the Regional Market vendors. Then visit the farmers on your own before you head out for home. Conference Sponsors: Premier Marketing Lead NY NYS Dispute Resolution Register online at http://www.nyfarmersmarket.com/annual-conference 6 GOVERNOR CUOMO ANNOUNCES HIGHLIGHTS FROM THE 2014 FARM TO TABLE UPSTATE-DOWNSTATE AGRICULTURE SUMMIT First Ever Summit, Hosted by Lieutenant Governor Duffy, Helps Strengthen the State’s Agricultural Economy Governor Andrew M. Cuomo today highlighted results from the first-ever Farm to Table Upstate-Downstate Agriculture Summit, which was introduced in the Governor’s 2014 State of the State address. The purpose of the Summit was to explore ways of increasing access to fresh food for underserved populations and growing New York City markets’ access to upstate agricultural producers as a means of boosting in-state production and consumption. Lieutenant Governor Robert J. Duffy presided over the first-of-its-kind summit, which took place today in New York City. “One of New York’s strongest economic drivers is the connection between the multi-billion dollar upstate agricultural industry and the many world-class restaurants and marketplaces in the New York City area. Today we laid out our plan to strengthen that relationship and take the State’s agriculture and tourism sectors to the next level,” Governor Cuomo said. “By keeping the revenue generated from our farms and tables right here in New York, we can create more jobs and opportunities in communities across the State, and I am proud to be joining with our business and community partners to grow this vital part of our State’s economy.” “Today’s Summit produced an array of ideas to further strengthen the State’s agriculture economy, and I was proud to preside over such a comprehensive event,” Lieutenant Governor Robert J. Duffy said. “Governor Cuomo has been a leader and innovator in finding new ways to leverage our agriculture industry with the downstate market. I applaud him for his efforts and thank New York City’s leaders for hosting today’s event as we move forward to expand this partnership.” “From growers’ markets to rooftop farms to food manufacturing, this is a part of our economy that’s growing by leaps and bounds. The Governor’s Farm to Table summit is good for farmers and growers upstate, and great for New York City’s booming restaurant and culinary scene,” said NYC Deputy Mayor for Housing and Economic Development Alicia Glen. “These are the kind of partnerships that will mean more opportunity for our people and will make our city a more dynamic place to live and visit. We look forward to working with the Governor and our partners all over the state to continue to build a strong local food economy.” A number of ideas and next steps were brought forth as a result of the summit, including: • Regional Food Wholesale Farmers’ Market – The Governor is committed to developing a Regional Food Wholesale Farmers’ Market, and state government will work with local and private partners to identify the resources and appropriate site. This market will enable the upstate agricultural industry to increase access to metropolitan markets for producers, while providing an array of healthy, affordable food for communities. It will also serve as an aggregation hub and processing facility to assist upstate producers and processors in targeting institutional and private sector procurement. 7 • Development of a Regional Food Hub Task Force and Action Plan - This new Task Force will consist of a balanced membership of stakeholders from upstate and downstate New York, including members of New York City government named by Mayor Bill de Blasio, along with members of New York State government named by Governor Andrew Cuomo. Working together, they will develop a plan to expand the distribution of regional foods to the New York City marketplace. A report will be presented to Governor Cuomo on how to expand regional food hubs across New York State within the next 90 days. • Food Box Expansion Program – This Program fulfills Governor Cuomo’s commitment to increase local food access to underserved communities by dramatically expanding the already-successful food box model to upstate and downstate neighborhoods. This program will enable underserved, low income communities to purchase New York State fresh and locally sourced fruits and vegetables. Consumers can use their SNAP benefits to pay for food boxes on a weekly or bi-weekly basis. This program will bridge the gap between farmers and consumers; farmers will benefit by selling more produce; and consumers will benefit by having access to fresh, healthy food. State funding will cover administrative costs associated with qualified and competitively chosen organizations plus procurement, transportation, distribution and nutrition education. New York State is committing $500,000 for this initiative. • Buy NY - Governor Cuomo announced the formation of a new initiative called “Buy NY,” a joint effort by the State Department of Agriculture & Markets, Department of Corrections and Community Supervision, Office of Mental Health, Department of Health, Office of General Services and Cornell Cooperative Extension, the purpose of which is to leverage existing centralized contracts regarding the purchase of State food products, including produce and dairy products. One of the initiative’s goals is to help state and local governments increase the purchase of local agriculture products in government-run institutions such as hospitals, colleges, prisons and other facilities. A new “Buy NY” website will be launched by the Office of General Services in January to provide a portal for state and local governments to learn more about purchasing New York State-produced products. It will also help educate New York agricultural producers and distributors about the state contracting system, which is available to all 62 counties and hundreds of municipalities across the state. • SUNY Farmers’ Market Certification Course – The State, in cooperation with the Farmers Market Federation of New York and six SUNY campuses, will develop a curriculum to improve the quality and performance of farmers markets across the state. These courses will help market managers improve their promotion of farmers markets and any market-based incentive programs offered at the farmers markets. • Taste NY Culinary Tour – This initiative will provide tours for downstate restaurateurs at upstate farms to cultivate stronger business-to-business relationships between the two entities. • Increased Outreach by the Taste NY Office in Brooklyn – At the Governor’s direction, the newly-formed Taste NY Office in Brooklyn will increase outreach to 8 highly-trafficked tourist attractions in New York City with the goal of expanding economic opportunities for New York State agricultural producers. Governor Cuomo has made opening new markets and increasing opportunities for New York State agriculture producers a priority, committing to maximize business between upstate producers and downstate consumers through the State’s multi-billion dollar agriculture industry. This is being achieved by creating new marketplaces for agriculture producers, increasing the “buy local” purchasing power of State institutions and facilitating connections to spur economic growth while keeping New York food marketplace dollars in the State. In 2011, the Governor created the FreshConnect Farmers’ Markets to increase access to healthy, locally-grown foods and address the issue of food deserts in the State’s urban areas. The Administration has invested $3.6 million in food hubs in Canastota, Kingston, Groton, Canton and Riverhead, providing a location for farmers to deliver their goods and get them processed for distribution to restaurants, grocery stores and consumers. The Governor also created one of the most effective marketing initiatives in New York State history, Taste NY, the goal of which is to highlight New York’s world class agricultural products to the masses through stores, events and special initiatives. He recently announced the next phase of Taste NY, which will include a revamped website with online purchasing options, Taste NY stores and vending machines at all SUNY and CUNY campuses, expanded Taste NY options at all 27 New York State Thruway Travel Plazas, additional Taste NY products in vending machines and a mobile phone application. State Agriculture Commissioner Richard A. Ball said, “As farmers, we live and work just a few hours away from the largest appetite in the world in the New York City metropolitan area. The potential for upstate farmers to harness this marketplace is limitless and we just need to connect the dots better. I’d like to thank Governor Cuomo and Lt. Governor Duffy for convening this important summit, which will help expand new markets for our producers and grow our state’s agricultural economy.” Office of General Services Commissioner RoAnn Destito said, “Governor Cuomo has made expanding the volume of New York State food products purchased by state and local governments a priority. Working with Ag and Markets, DOCCS, and OMH as well as our partners at Cornell Cooperative Extension, we have already increased the purchase of New York State grown and produced items including apples, potatoes, onions, cabbage, and yogurt. And we plan to continue working with agencies, institutions, and schools to help them add even more locally sourced food items to their menus.” Empire State Development President, CEO and Commissioner Kenneth Adams said, “The progress made at the first ever Farm to Table Summit will help strengthen the connection between Upstate farmers and the downstate market and promote New York’s agriculture products. I commend Governor Cuomo and Lieutenant Governor Duffy on their continued efforts to boost our state’s agricultural economy through initiatives like Taste NY, the New Farmers Grant Fund, and the Dairy Summits which help our farmers and create jobs.” 9 Board of Directors 2015 Producer Expo Syracuse, NY January 20 – 22 Metro Region: John Ameroso Cornell Cooperative Extension, NYC jma20@cornell.edu Tupacamaru Tiwoni 125 St. Fresh Connect Market ttiwoni@earthlink.net Northern Region: Jo Ellen Saumier, Vice President kirbsidegardens@twcny.rr.com Join us at the Empire State Producers Expo in Syracuse, NY this January. The Expo features a huge trade show as well as 3 days of workshops for farmers of all sizes and experience levels. Below are the tracks that will be hosted by the Farmers Market Federation of NY: Suzanne Carreker-Voigt voigtny@gmail.com Central Region: Beth Irons Oneida county Public Market info@oneidacountymarket.com Chuck McFadden Downtown Syracuse Farmers Market cmcfadden@downtownsyracuse.com Eastern Region: Sally Baker Philmont Farmers Market info@pbinc.org Steve Hadcock Cornell Cooperative Extension Seh11@cornell.edu Western Region: Phyllis Couture, Secretary Belmont Farmers Market cpcouture@hotmail.com James Farr Rochester Public Market farrj@cityofrochester.com At Large Laura Biasillo, Co-President Cornell Cooperative Extension LW257@cornell.edu At Large Margaret O’Neill. Vice President Friends of the Rochester Public Market mao6@cornell.edu At-Large Steve Feeney, Treasurer Schenectady Farmers Market Steve.feeney@schenectadycounty.com Executive Director Diane Eggert 315-637-4690 deggert@nyfarmersmarket.com Wednesday, January 21 Building your customer base at farmers markets 9:00 – 9:45 am A virtual walk through a small farm with an eye for food safety Betsy Bihn, Director, Produce Safety Alliance 1:00 – 2:30pm CSAs and Farmers Markets: competition or compatibility? Laura Biasillo, CCE Broome County 3:30 – 5:00pm Making the Chef Connection Eamon Lee, Corporate Chef, Maines Thursday, January 22 Technical Skills for Farmers 9:00 – 11:00am Websites: making a website work for your business Galena Ojiem, Farmers Market Federation of NY 1:00 – 3:00pm Tracking Your Finances with Quickbooks Bonnie Collins and Steve Hadcock, CCE For more information, visit http://nysvga.org/expo/information/ Farmers Market Federation of NY www.nyfarmersmarket.com 10 Federation Project Updates Farmers Market Benchmarking Project: Websites as a Tool to Develop New Marketing Opportunities for Farmers: This project is funded by the New York Farm Viability Institute and has three goals: This project, funded by USDA’ s Farmers Market Promotion Program, will create a template for both farmers market and farm sites that will include ALL the necessary elements of a market and farm site. The farmers market website will offer key information that will encourage farmers to participate in your market. The farmer website will be customer focused and help to build and maintain a customer base for the farm. The templates are currently under construction, with written instructions for using the website, customizing it to your own specifications and then maintaining the site. The first training will be held at the Empire Producers Expo in Syracuse, Feb. 22. Look for additional webinar trainings to be announced. 1) Identify industry benchmarks that will help farmers weigh their farm's marketing success against industry standards to help farmers make critical business decisions. 2) Create an online tool that helps farmers to identify the farmers market(s) that most closely match their farm and personal goals. 3) Demonstrate the value that farmers market participation brings to farmers. Located at https://www.surveymonkey.com/s/FMFNYBenc hmarks, the survey is gathering farm data. The survey will be active until sometime in January. If you are a farmer or vendor at a New York farmers market, we ask that you participate in this survey. If you are a market manager or otherwise work with farmers, we ask that you encourage those you work with to participate in the survey. The larger the database of responses, the more accurate the farmers market benchmarks will be. Market Managers Certification Program: In collaboration with Cornell Cooperative Extension of Broome County and SUNY Cobleskill, the Federation will be developing an online market manager training program. Completion of the program will provide the participant with a certificate of completion, signed by the Federation and SUNY Cobleskill. This certificate, showing the quality and professionalism of the market’s management, can be used to leverage further support for the market. In addition, the course will be utilized by SUNY Cobleskill in their food sustainability curriculum, providing a pool of trained market managers for markets across the state. Special thanks to Linda LaViolette, Farmers Market Director, Empire State Development Agency and the Governor’s office for supporting and funding the program. Watch for details to come on this exciting program. In early January a request will go out to all farmers markets in New York State. An online form is being developed that will allow markets to enter key characteristics about their market. This will be used to develop a searchable database that farmers can use to identify appropriate farmers markets for participation by searching by those characteristics that are important to their farm business. This will also create a new, updated market locator for the Federation website, www.nyfarmersmarket.com. 11 MarketLink: with MarketLink, aiding participants through the applications, providing signage, tokens and marketing materials, and fee support. The Federation continues to partner with MarketLink, bringing new markets and farmers into the SNAP program through smartphone technology. MarketLink provides easy access to applications, coordinates with Novo Dia for Mobile Market +; the application allowing SNAP to be accepted through smartphones; and WorldPay as a third party processor offering nationally negotiated rates for SNAP, debit and credit. The New York EBT program partners If you would like to accept SNAP, debit or credit at your market, farm stand, PYO, mobile market or CSA, call the Federation at 315-637-4690. We will also be holding training webinars throughout the winter and Spring. Watch your emails and the Federation website , www.nyfarmersmarket.com for announcements of the webinar schedule. Welcome to the Farmers Market Federation of NY’s first official Chapter: The Mohawk Valley Farmers Market Managers Alliance. The Alliance covers Oneida, Herkimer and Madison counties. The chapter is beginning to develop programs and workshops to help bring success to ALL the markets in their three county region. Their first workshop will be held February 3 at the Oneida County Cornell Cooperative Extension office in Oriskany. The day-long workshop is focuses on the issues of the region, but is open to any farmers market manager, organizer, or farmer. Watch the Federation website for more about an agenda and registration, www.nyfarmersmarket.com. 12