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Marketing & Promotional Tools for Farm Raised Beef What Works? Ginger S. Myers University of Maryland Extension Marketing Specialist 301-432-2767 ext. 338 [email protected] www.agmarketing.umd.edu www.mredc.umd.edu Ginger S. Myers [email protected] 301-432-2767 Director of the Maryland Rural Enterprise Development Center Extension Marketing Specialist, College of Agriculture & Natural Resources, University of Maryland Extension. Maryland Representative for Niche Meat Producers Assistance Network. Maryland Niche Meats and Poultry Marketing Group Operates a grass-based livestock farm with husband. What’s the Product; Where’s the Profit? Must produce a High Quality, Consistent Product that sells for a premium price. Carcass yield Cut & wrapped Beef Pork Sheep 36% 50% 40% My processing cost are 28% of my total expenses. Marketing is… EVERYTHING you do to promote your business from the moment you conceive of it to the point at which customers buy your product or service and begin to patronize your business on a REGULAR basis. Jay Conrad Levinson, Guerrilla Marketing Promotion is… The objective of promotion is to move customers through the following phases: Unawareness> Awareness> Beliefs> Attitude> Purchasing Intentions> Purchase. What’s the Difference? Promotion differs from marketing in its function to create product awareness . When customers think of grassfed beef, you want them to think of your product. 4 Ps of Marketing Traditional Approach – Product – customer needs and wants/satisfy and solutions – Place – making available and convenient to customer – Price – to reflect the marketplace … profit – Promotion – communicating, creating desire & developing relationships Marketing Style Matters Degree of promotional activity is directly related to your marketing outlets. Successful direct marketing hinges on effective product promotion to generate sales. Barriers to Direct Marketing Farm Raised or Grass-fed Beef Lack of trust in unknown sources – particularly those seen as unregulated or lacking standards Expect pasture-raised products will cost more, which means they expect more Concerns about affect on taste Need for convenience—access Resistance to buying in larger volumes What Do These Terms Mean to Customers? Free Range Pastured-raised Grass-fed Natural Niche Marketing Pasture-Raised Products: A Learning Module prepared by Jerry DeWitt, Leopold Center, October 2006 Result of Focus Groups Free Range +Many clear ideas about the meaning - Most, however, said it adds little or no value Pasture Raised +Nearly all think of cows – dairy & beef +Some think of rolling green hills/ “traditional” family farm Grass Fed +Brings cows to mind, elicits many comments - Some were confused - Some expressed concern about taste Natural +Many say they know what it should mean, but.. - Has become little more than a marketing term they don’t always trust What’s Your Product?Grass-Fed or Pasture-Raised Grass-fed Pasture-raised Be clear in your material Both are is in tune with Consumer Trends Local Food Food Safety Healthy Food Your Promotional Materials Make sure they reflects the tastes of your target audience. Keep them simple and your message clear. The quality of your printed materials reflects directly on the perceived quality of your products. Your Logo Doesn’t have to be costly or glitzy Does need to be professional and designed with your target market in mind. You’re a beef producer, not a graphic designer. Can project your farm story. Print & Graphic Materials Should Tell Your Story Customers are looking for authenticity in their products. Help them understand that your product is the “real” thing. Your Production Methods Your Farm Heritage Why They should Purchase Your Product Words and Phrases that Work Tastes great, fresh High quality, superior quality Good for you, healthy Free of antibiotics, hormones Chemical free Low in fat Excellent source of nutrition Fresh air and sunshine High quality pasture Good Pictures Take pictures throughout the seasons. Picture Product. Picture People- Clean clothes and watch what’s in the background. Sizzle sells Cooking Tips and Recipes Cooking instructions and recipes are key to helping customers have a positive first experience with a grassfed product. Distribute recipes with every purchase whether at the farm, the market, or over the Internet. Print Advertising Very expensive and often don’t reach your target audience. Running a smaller print ad in a weekly section of the paper can be effective. The key to effective print ads is frequency- may take up to six months of ads to determine effectiveness. Internet Not having a website today is like not having a telephone. A website is increasingly becoming the gateway to a company’s brand, products, and services - even if the firm does not sell “on-line.” Why the Web 85% of today's customers search the Internet for information You can develop a website for very little investment Your website is working for you 24 hours a day, seven days a week telling your customers your products, business hours, access to expertise, special events, and directions right to your door! Listings are Vital Free listings: – Localharvest.org – Foodtrader.org – Marylandsbest.net – Community websites Email & Text Alerts Email definitely and effective tool for delivering promotional materials. One of the best uses for your website is to collect email addresses. Research shows that customer retention may be the highest and best objective of e-mail marketing. Personal Efforts “Networking” and “word of mouth” referrals are the most effective way to reduce out of pocket costs and cultivate a customer. The valued opinion of influential customers is the most important and cost effective promotion that a business can develop. Start Small Family, Friends, & Target Groups Get feedback and learn about: Cuts, Packaging, Presentation Grow Incrementally