Prairie Crossing Organic Farm
Marketing Plan
L.F.G. Team
Agenda
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Executive Summary
Situation Analysis
SWOT and Planning Issues
Goals and Objectives
Marketing Strategy
Action Plans
Financials
Questions
Executive Summary
The Opportunity
• Significant
growth potential
in organic
farming sector
• Partner with
local businesses
• Support the
community and
expansion
The Service
• Farm Business
Development
Center (Organic
Farm)
• Learning Farm
The Strategy
• Leverage
existing local
health conscious
market
• Educate through
targeted
advertising &
promotion
Executive Summary
Objectives &
Results
~Long-term
sustainability
~Increased brand
recognition by 25%
~Synergy between the
Learning Farm and
Farm Business
Development Center
Critical
Success
Factors
External:
word of mouth,
incorporation of
social media,
continued growth of
organic products
market
Internal:
commitment from the
foundation, budget,
execution of plan
Situation Analysis
Aerial of the Prairie Crossing Organic Farm in Grayslake, IL
Situation Analysis Cont.
Farm Business Development
Learning Farm
Objectives & Goals
Objectives
Goals
• Develop greater
presence of PCF in the
community
• Increase demand /
recognition of 25%
• Support sustainable
existence of PCF and
the organic food
industry
• Develop & enhance
sales channels –
increase demand 20%
• Increase the number of
farms growing organic
produce
• Expand land &
equipment capacity –
est. increase in
capacity of 50% over
next 5 years
Consumer Analysis

About U.S. Families
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
73% buy organic products at least occasionally, chiefly for
health reasons
31% were buying more organic foods in 2009 than in 2008
17% largest increases in spending in past year were for
organic products
59% expect to increase the amount of organic
products purchased in 2010
Organic foods appeal most to those ages 35 – 44
Consumers back to basics to bolster health
Source: 2009 U.S. Families' Organic Attitudes and Belief Study, Source: Consumer Union poll data March 2010 & “Today’s
Specialty Food Consumer 2009”
Primary Research – Survey

29% - familiar/71% - not familiar
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Prairie Crossing References


Familiar with Prairie Crossing offers

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
14% - Farmer’s Market
4% - Sandhill Organics
4% - Learning Farm
4% - Business Development Center
Organic foods cooking class
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

14% - other, 11% - friend, and 4% - family member
47% - likely to neutral
53% - somewhat to very unlikely
Organic farming



21% - very to somewhat likely
11% neutral
68% somewhat to very unlikely
Source: 28 surveyed from Surveymonkey.com
Market Size & Sales Analysis

US Organic Market


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
24.8 billion in 2009; 5.1% growth
Highest growth in produce – 11.4%
1.8 billion or 9.1% growth in non-food
Retail make-up

Mass markets i.e. Wal-Mart



Natural markets i.e. Whole Foods



2009 - 54% of sales
2008 – 43%
2009 – 43% of sales
2008 – 48%
Remainder from farmers markets, online, export, etc.
Product Line Analysis

Organic markets

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
Non-food (Organics fabrics and cleaning products)
Animal (Beer, Pork & Poultry)
Produce (Vegetables, Fruits & Grains)
Prairie Farm


Services (farming & education)
Produce through incubator and permanent farms
Competitive Analysis
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Varies by channel

Channels:

Direct Markets
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Other farmers markets participants
Local Community Supported Agriculture Programs (CSA)
Home Gardens
Natural Product Retailers i.e. Whole Foods
Conventional Retailers i.e. Wal-Mart
Restaurants i.e. McDonalds
Competitive Analysis
Share of Organic Sales by Market Channel
100%
8%
90%
80%
44%
38%
70%
68%
63%
Natural Product Retailers
Share
60%
Direct Markets, Export & Other
10%
50%
Conventional Retailers
40%
6%
30%
20%
54%
46%
25%
31%
10%
0%
7%
1991
1998
2006
2009
Competitive Analysis
Direct
Markets
Local Growers
Out of Region
Foreign
Natural Products
Retailers
Conventional
Retailers
SWOT Analysis
Strengths
in farming and
exceptional business acumen of
family farm as a model
Weaknesses
 Success
 Limited
 Success
 Lack
rate for incubator
farmers after leaving Prairie
Crossing (80%)
 Business
fully supports the trend
for a healthier lifestyle &
consumer preference for locally
grown produce
 PCF
is certified as an organic
grower
 Property
borders major roads
& train line
community awareness
and understanding of the
organization
of connection of the two
sectors
 Limited
land and equipment
capacity
 Location
of the farm is hidden
and somewhat secluded
 Lack
of revenue from the
Learning Farm, not selfsupportive
SWOT Analysis Cont.
Opportunities
 Growing
demand/awareness of
organic food & locally grown
produce
 Sales
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Expansion:
Larger food chains (Jewel, Whole Foods)
Small independently run markets
Institutions (hospitals, schools, prisons)
Restaurants
 Effectiveness
of websites
(fragmented & hard to find)
 Partnerships
with universities/
hospitals/health clubs to educate
the community
 Develop
uncertified land to
increase farming capacity
Threats
 Economic
funding
conditions limit external
 Economic
conditions effecting
consumers ability / desire to pay
the higher price for organic food
 Growing
season is limited
compared to out of state
competitors
 Impact
 Sales
of weather conditions
competition with other local
organic farmers & non-organic
farmers
Planning Issues

Connections to greater community

Leveraging of synergies

Limited land & equipment
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Limited Supply -> Limits ability to expand sales

Seclusion of the farm
Marketing Strategy Statement
“Increase brand identity and recognition
within health conscious consumers who
want to support the community by
purchasing locally grown organic produce.”
“Increase awareness of the learning farm
which looks to educate and inspire people to
value healthy food, land, and community
through experiences on the farm.”
Target Markets

Primary Target Market

Existing local consumers
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
Live in Grayslake or surrounding community (Lake County)
Purchase organic products 50% or more of the time
Secondary Target Market

Emerging / New organic consumers
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Live in Grayslake or surrounding community (Lake County)
Buy organic products less than 50% of the time
Educational component critical
Positioning
“To health conscious consumers, Prairie
Crossing Organic Farm is an organic farm that
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offers locally grown quality produce
educates on the value of healthy food & land
is an integral part of the community
It is the only organic farm in Lake County to offer
both produce and education.”
•CSA’s
•Farmer’s
Markets
•Company
website
(services)
•Social Networking
Sites
Price
•Billboard(s)
•Targeted
promotion
at local
establishments
•Sponsor
community
events
•Community
centers
•Local
restaurants
Distribution
•Keep
existing
products &
services
•Expand
education
offerings
Promotion
Product
Marketing Mix Strategies
•Appropriate
level to
expand and
support
organizational
growth
•Increasing foot
print
•Logo
•Billboard
•Organic
Restaurant on
premises
Processes & Procedures
•Local communities
•Schools
•Restaurants
•Beginning
Farmers
Physical Evidence
People
Service Mix Strategies
•Federal and State
Grants
•Marketing
promotions
initiatives
•Research &
Analysis of
Demand
•Customer
Satisfaction
Implementation Strategy
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PCF leading Brand in N.E. Illinois Organic Food
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Create PCF Label/Logo
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Subdivision Fresh Market Open Trade Day
Local School District Lunch program
Local radio stations program- Spanish/Russian
Information Board Center in Whole Food store
Redesign PCF Web Page
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Under one Umbrella - individual Farmers web page
Place order for Organic Food
Implementation Strategy Cont.
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Expand existing land size
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Seek new corporate investors
Seek Federal and State government sponsorship/grant
Develop new ‘One Delivery Center’
Allow multiple family participation in the program
Healthy life style
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Create a Healthy Juice Booth in the Health clubs
Use Local Community Center to advertise and sell
organic food
Use local News paper to introduce local organic food
Promotion Action Plan & Programs
Task/Activity
Appoint intern for March to October
2011
Research promotion and advertisement
sites
Time Period
March 2011
April 2011
Responsibility
Director
Intern
Cost
$20,000
N/A
Secure agreement from farmers to put
Prairie Crossing logo on their websites
May 2011
Director
Place order for promotion media design,
production and placement (billboards,
displays, brochures)
June 2011
Director
$10,000
1000/year
Organize and run events at corporate
cafeterias, health clubs, schools,
subdivisions, restaurants, organic food
retailers. 20 events in 2011 and 6 each
year @$1000 each
Growing Season
Intern
$20,000,
6000/ year
Update websites with event schedule
and product availability
Growing Season
Director
Sample Logo
Product Action Plan & Programs
Task/Activity
Secure farmer commitment to sell up to 50%
produce under the Prairie Crossing Organic
Farm brand at a predetermined price
Secure farmer commitment to adopt Prairie
Crossing recommended product mix
Develop packaging contract. Select a preferred
supplier
Time Period
April 2011
April 2011
Responsibility
Cost
Director
Director
May 2011
Director
Apply for Farmers Market Promotion Program
grant
March 2012
Director
$1,000
Secure equipment loan of $500,000 with US
Farm Service Agency credit guarantee if
necessary
Feb 2012
Director
$5,000
Explore corporate investments (Whole Foods,
Wal-Mart)
Jan 2012
Director
$5,000
Quality Action Plan & Programs
Task/Activity
Develop a peer inspection plan among
participating farms to ensure consistent quality
and labeling
Mediate peer inspections
Time Period
May 2011
Growing Season
Responsibility
Director
Director
Cost
Distribution Plan & Programs
Task/Activity
Issue order for website. Include
features not present in current website
like events, promotions and order
processing
Secure agreement with captive
farmers to distribute a portion of their
produce through Prairie Crossing’s
distribution channel and pricing
contract
Secure contract with distributor for
Chicago area
Time Period
March 2011
May of each year
April 2011
Responsibility
Cost
Director
$8,000 one time,
$1,000/ yr.
Director
Director
Develop packaging contract with a
preferred supplier
May 2011
Director
Form a cooperative of local organic
farmers in the region to sell under
Prairie Crossing brand.
Jan 2013
Director
$1000
$1000
$5,000
Pricing Action Plan & Programs
Task/Activity
Time Period
Primary research of price at regional retail stores
and farmers markets
March 2011
Order secondary market research data for
regional pricing and demand of organic produce
March 2012
Secure price agreements from farmers and
distributor to allow 2.5% margin on all produce
routed through Prairie Crossing cooperative
May of each
year
Responsibility
Cost
Intern
Director
Director
$5000/ year
Financial Assumptions
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Sales per acre = $20,000 / year
Margin for distributing through Prairie Crossing
channel = 2.5%
Equipment loan = $500,000 (Feb, 2012)
Interest on equipment loan = 6%
Expected acres and branded sales level
YEAR
2011
2012
2013
Acres
90
99
109
Branded Sale Level %
25
37.5
50
Financials
YEAR
Revenues
2011
Rentals
Margin on Produce Sale
$50,000
2012
2013
$800
$1,600
$55,000
$60,500
Expenses
Product/ Service
development
$11,000
Distribution development
$11,000
$1,000
$6,000
Promotions and
advertisements
$50,000
$7,000
$7,000
Pricing research
$5,000
$5,000
$5,000
$30,000
$30,000
$1,800
$14,100
Interest
Earnings Before
Tax
-$16,000