marketing bee products - south centers · 2013-10-07 · the ohio direct marketing team marketing...

The Ohio Direct Marketing Team

Marketing Bee ProductsJulie Fox

The OSU South CentersSeptember 19, 2012

Overview for the Day

• Trends• Marketing Combination

• Selling directly to consumers• Selling directly wholesale buyers

• ‘Local’ in Ohio

Food Trends & ForecastsGrocery

• 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%

www.supermarketguru.com/public/pdf/Consumer-Panel-Survey-2011.pdf

Food Trends & ForecastsIndustry

• 1 Locally sourced meats and seafood• 2 Locally grown produce• 4 Hyper-local sourcing (restaurant gardens)

– (#1 culinary theme)

• 8 Locally-produced wine and beer• 12 Farm/estate-branded ingredients• 14 Micro-distilled/artisan spirits• 15 Artisan/house-made ice cream• Other ingredients: artisan bacon & artisan

cheese

Food Trends & ForecastsIndustry

•– Food Industry Report– Today in Food– Food Price Outlook

• Snacking• Specialty Foods

www.foodinstitute.com/research.cfm

Relationships & Risks with each Marketing Channel

Selling Directly to Consumers

On & Off Farm Markets, Farmers’ Markets

Community SupportedAgriculture (CSA)

Agritourism

Selling Directly to Wholesale Buyers

Chefs – Restaurants& Caterers

Grocery Stores & Specialty Retailers

Food Service (schools, institutions)& Food Processors

SELLERS BUYERS

Marketing: “Combination”

Marketing is not only much broader than selling, it is the whole business seen from the customer’s point of view.Peter Drucker

• People– Customers: can you think like them?– My business goals/capabilities

• Product• Place• Promotion• Plan & Process

Think Like a Customer

People – Product – Place – Promotion – Plan

• 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

Think Like a Direct Marketer

People – Product – Place – Promotion – Plan

• People • Product

– Product selection and supply– Packaging & Labeling– Pricing, Invoicing & Payments

• Place• Promotion• Plan & Process

MarketReady

People – Product – Place – Promotion – Plan

– 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

Product Selection & Supply

People – Product – Place – Promotion – Plan

People – Product – Place – Promotion – Plan

• Protection against damage, spoilage, and pilferage

• Assist in marketing – Function,Education, Reinforce Brand, Differentiate…

• Regulation• Cost Effective

www.foodandbeveragepackaging.com/

Packaging & Labeling

• Food Labeling http://www.honey.com/nhb/industry/labeling-information/

• http://codes.ohio.gov/orc/3715• Ohio Division of Liquor Control

• Appropriate certifications• UPC codes, www.uc-council.org• QR codes, …• www.specialtyfood.com/news-trends/featured-

articles/retail-operations/the-label-tablePeople – Product – Place – Promotion – Plan

Packaging & LabelingRestaurant - Grocery - School/Institution - Other

Wholesale

• 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)People – Product – Place – Promotion – Plan Consumer

Pricing & Payments

• How & When Pay?– Cash (ATM), Check, Credit Cards– Mobile Payments (www.mobiledia.com)

• 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.

People – Product – Place – Promotion – Plan Consumer

Pricing & PaymentsFarm Market - Farmers’ Market - CSA - AgriTourism

• Restaurants, bakeries, caterers

• Margin-based retail pricing

• Selling to/with other farmers

• Invoices, Bill of Lading, …

Pricing

People – Product – Place – Promotion – Plan Wholesale

• People • Product• Place

– Distribution & Storage– Signage & Merchandising– Marketing Environment

• Promotion• Plan & Process

MarketReady

People – Product – Place – Promotion – Plan

• Intensive Distribution• seek to distribute a product through all available

channels in a trade area. • suits items with wide appeal.

• Selective distribution• choose a limited number of outlets in market area.• helps control price cutting due to relatively few

outlets.• Exclusive distribution

• grant exclusive rights in a specific geographical region.

Distribution Intensity

People – Product – Place – Promotion – Plan Kotler, Keller and Burton, 2009. Marketing Management

• Own delivery direct-to-buyer• Shared delivery with other producers• Pre-arranged pick up points • 3rd Party delivery company• Wholesaler or distributor working with

restaurants• Each system has own benefits and costs

• Grow Farms

Distribution OptionsRestaurant - Grocery - School/Institution - Other

People – Product – Place – Promotion – Plan Wholesale

• 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

Signage & MerchandisingFarm Market - Farmers’ Market - CSA - AgriTourism

People – Product – Place – Promotion – Plan Consumer

• 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 www.oaaa.org/marketingresources/industrystandardsandpractices.aspxwww.thesignagefoundation.org/Research

Signage & MerchandisingFarm Market - Farmers’ Market - CSA - AgriTourism

People – Product – Place – Promotion – Plan Consumer

• POP Signage(Point Of Purchase)

• What is it (and quantity)?• What do I do with it?• How much does it cost?

• Benefit• Other (brand)

Signage & MerchandisingFarm Market - Farmers’ Market - CSA - AgriTourism

People – Product – Place – Promotion – Plan Consumer

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?

https://utextension.tennessee.edu/publications/Documents/PB1794.pdf

Signage & MerchandisingFarm Market - Farmers’ Market - CSA - AgriTourism

People – Product – Place – Promotion – Plan Consumer

• 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?

Marketing EnvironmentFarm Market - Farmers’ Market - CSA - AgriTourism

People – Product – Place – Promotion – Plan Consumer

• 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?http://vmsd.com/projects/food-retailing/supermarkets

Marketing EnvironmentFarm Market - Farmers’ Market - CSA - AgriTourism

People – Product – Place – Promotion – Plan Consumer

• What’s happening in my business… & around me and my customers

• Opportunities & Threats• P - political• E - environment / economy• S - social• T - technology• + Competitors, …

Marketing Environment

People – Product – Place – Promotion – Plan

• People • Product• Place• Promotion

– Communication & Relationship Building– Marketing Strategies, Tactics, Culture– Connecting through Ohio MarketMaker

• Plan & Process

MarketReady

People – Product – Place – Promotion – Plan

• Sales & Marketing to wholesale buyers• Marketing with wholesale customers

Marketing Strategies & TacticsRestaurant - Grocery - School/Institution - Other

People – Product – Place – Promotion – Plan Wholesale

Social Media - You’re already ‘there’ -What are people saying?google alerts & social mention

BlogsTwitterSocial Networking Photos & Videos Mobile mediaOther…

Marketing Strategies & Tactics

People – Product – Place – Promotion – Plan

Marketing Strategies, Tactics,…Farm Market - Farmers’ Market - CSA - AgriTourism

People – Product – Place – Promotion – Plan Consumer

Connecting through MarketMakerFree Business Profile – buyers can find youFarmer - specialty

Buy/Sell Forum post/find (private)

Free market data demographics, food consumption,industry contactsFeature your business

People – Product – Place – Promotion – Plan

Marketing Strategies & TacticsOhiomarketmaker.com

Listings – Affiliations

• http://www.honeylocator.com• http://www.localharvest.org/store/be

e-prods.jsp• http://ourohio.org• www.ohioproud.org

• Maps & Apps

Social Media Resources

http://ofbf.org/get-involved/resources/107http://directmarketing.osu.edu/content/technology.htm

Marketing Strategies & Tactics

People – Product – Place – Promotion – Plan

• Online Guide toMarketing Online

http://go.unl.edu/directmarketingfood

People – Product – Place – Promotion – Plan Consumer

Marketing Strategies, Tactics, …Farm Market - Farmers’ Market - CSA - AgriTourism

• People • Product• Place• Promotion• Plan & Process

– Insurance– Quality, Regulations, Certifications– Working Cooperatively– Management & financial capacity– Your marketing & business plan

MarketReady

People – Product – Place – Promotion – Plan

• Ohio Cooperative Development Center, http://ocdc.osu.edu

• Regions, http://ohiofoodshed.org• Organizations

– http://www.oeffa.org– http://ourohio.org

• Businesses

Working CooperativelyRestaurant - Grocery - School/Institution - Other

People – Product – Place – Promotion – Plan Wholesale

One person with passion is better than forty people merely interested."— E. M. Forster

People – Product – Place – Promotion – Plan Consumer

Resource ManagementSales – Service – Daymakers … WOW

Are You MarketReady?Bring it all TogetherYour Plan … Marketing Audit

Resources

• http://www.beesource.com/• http://www.beeculture.com/• http://www.ohiostatebeekeepers.org

• http://beelab.osu.edu/

ContactJulie M. Fox, Ph.D., fox.264@osu.eduDirect Marketing SpecialistThe Ohio State University South CentersCollege of Food, Agricultural, and Environmental

Sciences - Extension & OARDC1864 Shyville Rd.Piketon, OH 45661 Tel: +740.289.2071(ext. 225)Fax: +740-289-4591http://directmarketing.osu.edu

Julie Moosemoose.14@osu.edu(ext. 223)