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Marketing Grass Roots Style
Marketing Grass Roots Style
Lara L. Worden Area Agriculture Agent NC State Cooperative Extension Serving Catawba, Cleveland, Gaston, & Lincoln Counties
What is Marketing?
Transactional Marketing
transaction for profit a sale is one time event increased profits = increased sales & lowered costs seeks to grow a business by cultivating loyal, repeat customers and by word of mouth advertising to help recruit new customers
Relationship Marketing
What is Marketing?
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.
The key words to remember are everything and regular basis.
- Jay Conrad Levinson
Guerrilla Marketing
What is Direct Marketing? Direct marketing is selling directly to the end consumer.
The 4 Ps of Marketing
Product
Place Price
needs to standout, why buy your product over someone elses?
where you market is has as much to do with how you market cost of production, break-even analysis, competition, what will the market bear
Promotion
everything you do to sell your product; can mean the difference between success and failure
The traditional 4 Ps of Marketing matter. They are the four areas in which a producer can make changes. But the challenge is to get beyond them to the 4 Cs.
The 4 Cs of Marketing
Product = What the customer wants/needs
Customer
Price = Cost to User Promotion = Communication
Customer Wants
or even tomorrows
they want it, how they want it ready to use Time is a lot more than money these days Beyond placement to instant accessibility
Costs/Competition/Communication/ Breakeven/What the market will bear, but Can you express/sell the Benefit of your product? (Benefit to the customer)
Features Benefits
Communication
When is a tomato more than a tomato
Understand and communicate back to the customer the attributes the customer is looking for; Advertising and Word of Mouth matter Display and Merchandising matter Image projection matters!!!
Online Newsletters/Blogs
Where to Start???
1. Determine what people want (the new buzz; DO NOT produce what everybody already has; e.g. produce in off season) 2. Find or create products that satisfy their wants 3. Select the most effective means of communicating with people about the product and its benefits 4. Develop strategies that will create a desire for the product in prospective customers who have not actively expressed their wants
Customer Profile:
Demographics
Age Gender Location Education Occupation Income Level Martial Status Kids?
Modern, traditional, artistic, religious, liberal, conservative, environmentally aware Early/late adopter, passive or active, work or pleasure
Age Subcultures
GI or WWII Generation (before 1933) accounts for 10% of population, mostly over age 79 Swing Generation (19341945) 12%; 67 to 78 Baby Boomers (1946-1964) 25%; 48 to 66 Generation X (1965-1976) 17%; 36 to 47 Millennial Generation (1977-1995) 25%; 17 to 35
American Generations by Susan Mitchell, 1998
GI WWII Generation
Born before 1933 10% population today In 2012: 79 years plus In 2015: 82 plus Characterized as frugal spenders Less likely to try new things Less formal education, but more affluent
Swing Generation
Born 1933 to 1945
Only 12% of population In 2012: 67 to 78 In 2015: 70 to 82 Small segment caught between two powerful forces Some have prospered; others have not
Baby Boomers
Born 1946 to 1964 25% of population In 2012: 48 to 66 In 2015: 51 to 69 Larger discretionary income; buy more save less; health conscious Largest generation, raised by younger stay at-home mothers & Dr. Spock (Not Mr. Spock)
Generation X
Born 1965 to 1976 17% of population In 2012: 36 to 47 In 2015: 39 to 50 Well educated, event or experience focused Technology drivers Tend to be big spenders
Millennial Generation
Born 1977 to 1995 25% of population In 2012: 17 to 35 In 2015: 21 to 38 Children of Baby Boomers & Gen X Most culturally diverse Busy, wealthy, the next economic powerhouse
http://www.claritas.com/MyBestSegments/Default.jsp
CITY-DATA.COM
Gastonia, NC
Gastonia, NC
Union ($60,074) Mecklenburg ($55,587) Lincoln ($47,859) Gaston ($42,110) Catawba ($43,303) Cleveland ($37,889)
http://factfinder.census.gov/home/saff/main.html?_lang=en
Proximity to customers Neighborhood Convenience Safety (lighting, off-street parking, etc.) Accessibility (ADA) Visibility Foot traffic, vehicle traffic Other complementary businesses nearby Size / floor plan requirements Lease or own Zoning restrictions Landlord restrictions Costs (property, amenities, required improvements)
% Using
Innovators Early Adopters
Time
Laggards
Can you identify light (occasional), medium (regular) and heavy (very frequent) consumers of your product?
Call this the 20/80 Rule 20% of consumers buy/use 80% of product. Call them the Heavy Half
SWOT Analysis
Strengths
What are your business strengths? Competition strengths?
Weaknesses
What are your business weaknesses? Competition weaknesses?
Opportunities
What opportunities are available for your business?
Threats
What threats might you encounter?
No stone unturned!
http://www.ncagr.gov/NCproducts/index.htm
No stone unturned!
http://www.foothillsfresh.com/
Piedmont Grown
http://www.piedmontgrown.org/
In Review
The customer is the central focus of marketing
Identify the ideal market area Is there market potential???
Location, location, location Who is going to buy your product? Who are your competitors? Where are your competitors? How is your product unique? Demographics, psychographics, age, zip code, etc.
Marketing Wisdom
Dont underprice your product(s) Dont try to satisfy all customers Play the role of educator Quality is the #1 job!
Step 1: supply
Step 2: demand
www.localharvest.org
Is there Demand?
Who wants mushrooms?
In the U.S., per capita consumption is 3.65 pounds of mushroomsMushrooms are the sixth leading vegetable in farm receipts, consumers are primarily whites and asians.1
1Lucier,
G. and A. Jerado. Vegetables and Melons Outlook. VGS-304. Washington: US Dept of Agriculture. 2009.
Is there Demand?
Who wants mushrooms?
A heavy user segment is larger families (i.e. households with children under 18 years living at home), as they buy fresh mushrooms significantly more often than their counterparts without children.1
1Fresh
Is there Demand?
Who wants mushrooms?
The U.S. is the worlds second largest mushroom producing country behind China. Pennsylvania, California, & Florida are the largest mushroom growing states.1 Popular Mushrooms: White button Crimini Portabella Shiitake Maitake Oyster
1Mushroom
Is there a niche?
Niche #1: Foodies! www.foodnetwork.com 2,955 mushroom recipes; 608 are shiitake related/asian inspired.1 Niche #2: Natural Health- Mushrooms (shiitake) may play a role in breast cancer prevention and treatment.2 May have health benefits for immunity and cancer recovery.2
1From: 2From:
Potential Customers
Population (Within Gaston Co.): 199,673 PRIMARY ETHNIC MARKET White (79%): 160,4891 Asians (1.2%): 24021
1 US
http://factfinder.census.gov/home/saff/main.html?_lang=en
Union ($60,074) Mecklenburg ($55,587) Lincoln ($47,859) Gaston ($42,110) Catawba ($43,303) Cleveland ($37,889)
http://factfinder.census.gov/home/saff/main.html?_lang=en
Results
Competitors? 10 or fewer farms direct marketing mushrooms within 100 miles Customers? Asian & Caucasians with children at home that have above average incomes and are health conscious Market? Farmers markets & restaurants in Gaston, Lincoln, Union, & Mecklenburg counties