Marketing Honeybee Products Cleveland Beekeepers Association Eric Barrett The OSU South Centers 11 September, 2013

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1 Overview for the Day Local Food Trends Marketing Combination Marketing Honeybee Products Cleveland Beekeepers Association Eric Barrett The OSU South Centers 11 September, 2013 The Ohio Direct Marketing Team Selling directly to s buyers Local in Ohio Grocery/Retailers want local Importance of Supermarket Features Offers locally grown produce and other local packaged foods Very Important 45% Somewhat important 41% Not Too Important 10% Not At All Important 4% Restaurants want local 1 Locally sourced meats and seafood 2 Locally grown produce 4 Environmental sustainability 7 Hyper-local sourcing 9 Sustainable seafood 11 Farm/estate-branded ingredients 18 House-made/artisan ice cream 20 Food trucks Other ingredients: artisan cheeses & ancient grains Panel-Survey-2011.pdf local, specialty, sustainable Food Industry Report Today in Food Food Price Outlook Snacking Specialty Foods The Media Want Local Food Stories m/articles/article/top-tenfood-trends m/fn-dish/2012/12/2013- food-trend-predictionsfrom-food-network-kitchens 1

2 Marketing: Combination Relationship Marketing Via Various Marketing Channels Chefs Restaurants & Caterers On & Off Farm Markets, Farmers Markets SELLERS Selling Directly to Buyers Grocery Stores & Specialty Retailers Selling Directly to s Community Supported Agriculture (CSA) Food Service (schools, institutions) & Food Processors Agritourism BUYERS Marketing is not only much broader than selling, it is the whole business seen from the customer s point of view. Peter Drucker Think Like a Customer Think Like a Direct Marketer Customers: can you think like them? My business goals/capabilities Place Why Sell Products Locally? Satisfying Experience Sense of Community Compatible Philosophy Market Opportunity What to Consider Your Personal, Family & Business Interests/Goals Your Resources & Strengths Your Lifestyle & Motivations Product Selection & Supply Product selection and supply Packaging & Labeling Pricing, Invoicing & Payments Place What products/services do you offer? Honey (liquid, comb, whipped, sticks, ) Beeswax, candles, Mead, Agritourism Pollen, propolis, royal jelly, bees, Quality & Attributes (organic, kosher, artisan, ) Quantity Product depth or breadth Timing Specialized vs. commoditized People Product Place Promotion Plan 2

3 Packaging & Labeling Protection against damage, spoilage, and pilferage Assist in marketing Function, Education, Reinforce Brand, Differentiate Regulation Cost Effective Packaging & Labeling Restaurant - Grocery - School/Institution - Other Food Labeling _sales_q_and_a_final.pdf Appropriate certifications UPC codes, QR codes, People Product Place Promotion Plan Pricing & Payments How Much $? Pricing Objectives? Bottom Up ALL costs are starting point, then influences such as competition & market tolerance Top Down Analyze range, set retail price, then analyze - costs covered / profit enough? What are customers willing to pay? (supply & demand, seasonality, competition/substitutes, unique known value, perceived value - What image convey? Penetration, Rate, Skim - Other Strategies: Bundling, Lost Leader, Impulse POP (no more than 1/3 of average sale) Pricing & Payments How & When Pay? Cash (ATM), Check, Credit Cards Mobile Payments ( Square, Intuit, GoPayment, Verifone, Payware Financial services, device makers, software co. Industry group exploring standardized system Google, Apple and Research in Motion have also shown interest in mobile payments. Pricing & Payments Restaurants, bakeries, caterers Margin-based retail pricing Selling to/with other farmers Invoices, Bill of Lading, Place Distribution & Storage Marketing Environment Promotion 3

4 Distribution Options Restaurant - Grocery - School/Institution - Other Own delivery direct-to-buyer Shared delivery with other producers Pre-arranged pick up points 3 rd Party delivery company r or distributor working with restaurants Each system has own benefits and costs Grow Farms Signage Way finding On Premises Point of Purchase Direct, Find You Inform, Educate Select Product Other Action Answer common Questions or Solve problems Positioning/Branding Elements of good signage Simple, clear message Tough to read ALL CAPS, Fancy Fonts Size of Letters & Color Combinations Color Psychology... Consistency Appropriate Materials (Permanent/Temp) Background dsandpractices.aspx POP Signage (Point Of Purchase) What is it (and quantity)? What do I do with it? How much does it cost? Benefit Other (brand) Merchandising Merchandising Inviting / Interactive Abundance (not perfection) Experience Shopping is a sensory experience Height of product (signage, theater) Sloped shelves Lighting Decisions/Actions What do you want them to do? cuments/pb1794.pdf Marketing Environment Parking Accessible? If not, drive through If limited - Reserved Parking for? Expanded with you? Drainage (after last rain fall?) Ease of ingress/egress? Lighting? Surroundings Cooperating with neighbors What s happening beyond your property? 4

5 Marketing Environment Farm Market - Farmers Market - CSA -AgriTourism Basic sign maintenance Details -paint on buildings, missing boards Solutions for common grounds problems (mulching, weed control, etc.) Preserving farm atmosphere Match brand Barriers from customers point of view? What s visible in unused areas? Marketing Environment What s happening in my business & around me and my customers Opportunities & Threats P - political E - environment / economy S -social T - technology + Competitors, Basic Communications Place Basic Communications Social Media Market Partners Connecting through Ohio MarketMaker + others Campaigns People Plan Product & Process Place Promotion Plan Print Business Card Brochure Price List Electronic Website Social Media Other Story + Elevator Pitch Directory Listings Uniforms People Product Place Promotion Plan Social Media Social Media - You re already there - What are people saying? google alerts & social mention Blogs Twitter Social Networking Photos & Videos Mobile media Other People Product Place Promotion Plan Market Partners Restaurant - Grocery - School/Institution - Other Sales & Marketing to wholesale buyers Marketing with wholesale customers People Product Place Promotion Plan Local honey producer included as a local source 5

6 Connecting Through Ohiomarketmaker.com Connecting through MarketMaker Free Business Profile buyers can find you Farmer - specialty Buy/Sell Forum post/find (private) Free market data demographics, food consumption, industry contacts Feature your business Connecting Through Listings Affiliations Other Directories, Search Engines, Maps & Apps e-prods.jsp Maps & Apps Other - Internet Sales Campaigns Why, how & when you lead the customer to purchase (Taylor, 1965) Online Guide to Marketing Online Why? (what will you measure?) Right Reason Awareness, Trial, Customers, Referrals, Loyalty Who? Right Audience/s Relationships What? Right Message (Benefits vs. Features) Attention, Interest, Desire, Action (Lavidge and Steiner, 1961) What do you want them to feel, do, know? When? Right Time, Frequency (4-9x), Consistency Where? - Right Place, Media Choices How Much?- Right Budget Resource Management Sales Service Daymakers WOW Place Resource Management ($, Human, Space, Equip) Risk Management (Insurance, Quality, Safety) Marketing & business plan/management (goals, milestones, budget, calendar) One person with passion is better than forty people merely interested." E. M. Forster 6

7 Are You? Bring it all Together Your Plan Marketing Audit Resources Contact Julie M. Fox, Ph.D., Direct Marketing Specialist The Ohio State University South Centers College of Food, Agricultural, and Environmental Sciences - Extension & OARDC 1864 Shyville Rd. Piketon, OH Tel: (ext. 225) Fax: Mike Hogan hogan.1@osu.edu 7