Transcript Where and How to Market - Agnr Umd

Ginger S. Myers
University of Maryland
Extension
Regional Marketing Specialist
301-432-2767 ext. 338
[email protected]
1.What will it realistically take to achieve
your goals from a resources perspective?
2. How long will it take?
Where and
how your
process your
products
determines
where and
how you may
sell them in
Maryland.
Inspection mark on raw
meat
Inspection mark on
raw poultry
Inspection mark on
processed products
 Live Animals-
auctions, private
treaty, freezer sales
 Hybrid- Differentiation, graded
sales, group sales, seed stock
 Mixed Markets including ValueAdded & Direct Marketing
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Strengths and Weaknesses- usually
internal factors that you can control.
Opportunities and Threats- Usually
external factors you can’t control
Understanding trends, customer buying
“hot buttons” and industry issues is your
best “Risk Management” tool for dealing
with EXTERNAL Factors.
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Meat business is very different from the
cattle, livestock or poultry business.
Must become a student of “marketing”
 Consumer trends
 Product and Food safety
 Regulations
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Could take 2-4 years for your meat.
business to take off.
Access Necessary Infrastructure
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Processing capabilities
Distribution avenues
Market segments
Cooperative arrangements
Cash flow requirements
4Ps of Marketing- Product, Price, Position,
Promotion
What is Your Product ?
Production Method
Description
Processing &Packaging
Labeling
Target Market
1. Easy to sell high-end cuts and hard to sell
low-end cuts.
2. Pick customers in proportions to what you
need to sell.
3. Low end cuts are more price sensitive.
4. Consider adding value to low end cuts to
make them more profitable.
Tenderloin
NY Strip
Rib Eye
Stir Fry Strips
Roasts
Ground beef
12 lbs.
14 lbs.
24 lbs
6 lbs.
68 lbs.
107 lbs.
Where and How to Market
From the FarmLive
Processed1. On-farm Customers- Licensed by
Maryland Department of Health for
Direct Sales of frozen cuts.
2. Retail off the farm
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Label- At a minimum must have
 Product name
 USDA inspection legend
 Address line with “Distributed by” or “Packed for”
 Net Weight
 Safe Handling statement
 Ingredient Statement
RestaurantsLocally owned, may want fresh rather than frozen
Contact them off-hours.
StoresCharge a markup of about 30%
Questions- customers, current gross sales, case size,
promotional material, liability insurance
Go PreparedMultiple copies of brochures, business card, price list,
your sales proposal, two perfect sets of product. Do not
charge for them.
Where and How to Market
Farmers’ Markets- Go Prepared
1.
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3.
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Knowledge of health regulations and market
rules.
Good signage and display your price.
Display your product- people won’t buy what
they can’t see.
Be out going and tell your story.
Mail Order or Internet Marketing
1. Effective Web Design- Less is More
2. Keywords to improve search rankings
3. Free Listings
4. Update your website regularly
5. Contact info:
Secure credit card purchases
Contact number for orders
6.Reliable and Cost Effective Shipper
Shipping Frozen Meat
Must be USDA processed.
USDA guidelines:
www.fsis.usda.gov/OA/pubs/mailorder.htm
Of the 4Ps, price is the only one that brings
money in; the others send money out.
Determining Your Price-Point
1. Costs + Desired Profit
2. Pricing with the Competition
3. Low price hoping to make it up on volume
Place:
1. Marketing Outlets
2. Marketing outlets- contract, hybrid, direct
Promotion:
1. Product Perception
2. Website?
3. Supporting marketing materials vital for
direct marketing
Barriers to Direct Marketing
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Lack of trust in unknown sources –
particularly those seen as unregulated or
lacking standards
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Expect pasture-raised products will cost
more, which means they expect more
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Concerns about affect on taste
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Need for convenience—access
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Resistance to buying in larger volumes
Family, Friends, & Target Groups
Get feedback and learn about:
Cuts, Packaging, Presentation
Grow Incrementally
Women don’t want to lift more than 35 lbskeep boxed beef in this range
Risk
Added risk selling retail
Liability Insurance
Legally organizing meat sales
separate from your farm
Best Marketing Tool:
Your Marketing Plan
The 20 Minute Marketing Plan
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1. What’s My Product
2. How Much Will I Charge for It?
3. Who Will Buy It?
4. Where Will I Sell It?
5. How Will Customers Find My Product?
6. How Will I Know If My Plan’s Working?