Transcript Horticultural Marketing

Horticultural Marketing
Wen-fei Uva
Senior Extension Associate
Department of Agricultural, Resource, and
Managerial Economics
Cornell University
October 27, 1999
Today’s Agenda:
• Marketing Functions and Channels
in the Horticulture Industry
• Trends in the Horticulture Industry
• Examples of Marketing Strategies
Used by Different Sectors
• Field Trip to Wegman & Iron Kettle
Farm
The Horticulture Industry
Including Fruit, Vegetable and
Ornamental Horticulture Sectors
The Fastest Growing Industry in
Agriculture
Diversified, Exciting, and
with Unlimited Opportunities
What is Marketing?
Marketing is a total system of business
activities designed to plan, price,
promote, and distribute products to
target markets.
Marketing is an exchange of a wanted
product or service for a price.
Major Functions in Marketing
Horticultural Products
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Production
Wholesale
Retail
International Marketing
– Exports/Imports
• Services
– Harvesting, Packaging, Processing, Brokerage,
Warehousing, and Transportation
– Landscape Design, Installation, Maintenance
Marketing Channels for the Horticulture Industry
Exports
Imports
Shippers &
Packers
Growers
Retail Outlets
Wholesalers &
Distributors
Processors
Brokers
Production Suppliers
Consumers
Institutions &
Food Service
Outlets
Service Businesses
Wholesale Opportunities:
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Shippers/Packers
Brokers
Wholesale Buyers
Grower Cooperatives - i.e. Ocean Spray
Retail Buyers
– Supermarkets, Mass Marketers, Food Services,
Farm Markets, Garden Centers, and Florists
• Terminal Markets
– Hunt’s Point in NYC
• Auctions
Retail Opportunities:
• Chain Stores / Mass Marketers
– Supermarkets, Wal Mart, K Mart
• Independent Retail Stores
– Farm Stands, Roadside Markets, Independent
Grocers, Florists, Garden Centers
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Pick-your-own Operations
Farmer’s Markets
Community Supported Agriculture
Mail Orders and E - Commerce
Trends in Horticulture Industries
• Global Sourcing and Competition
• More Consumer Oriented
• Differentiated Product Development
• Industrialized Production
• Industry Consolidations
• Utilization of Information Technology
• More Demand for Suppliers
Successful Horticulture Enterprises
Start with Good Marketing
Where Are the Best Opportunities?
Developing Marketing Strategies:
• Objectives
• Target Markets
• Products
• Prices
• Promotion
• Distribution
• Competition
• Skills, Preferences and Resources
Marketing Strategies for Mass Marketers
Targeting Retail Opportunities
• Low Prices
• Convenience
– Longer store hours, One-stop shopping
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Product Selection
Higher operation efficiency and lower costs
More Marketing Power
Special Marketing Emphasis
– Organic, Value-added, Local produce
• Tour: Wegman
Marketing Strategies for Small Marketers
Targeting Retail Opportunities
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Specialty/Niche Marketing
High Quality
Value-added Products
Agri-Tourism
More Services
Owner’s Identity
Collaboration, Joint Ventures, Alliances
Tour: Iron Kettle Farm
Marketing Strategies When Targeting
Wholesale Opportunities
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Be Competitive - Price and Service
Quick to Respond to Customer Needs
Sharing Costs and Risks of Customer
Maintain Good Relationship with the
“Customer”
• Know the Marketing Channel and Keep Up
with Changes
• Take Advantage of Information Technology
• Become a Preferred Supplier
Give the Customer a Reason to
Do Business with You
Don’t Just Satisfy the Customer;
“Delight” the Customer
Exceed the Expectations
Opportunities in the Horticulture Industries
Exports
Imports
Shippers &
Packers
Growers
Retail Outlets
Wholesalers &
Distributors
Processors
Brokers
Production Suppliers
Consumers
Institutions &
Food Service
Outlets
Service Businesses