business planning & marketing
DESCRIPTION
Oklahoma Beginning Farmer & Rancher Presentation, July 2013TRANSCRIPT
![Page 1: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/1.jpg)
Business Planning and Marketing
![Page 2: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/2.jpg)
Why do a Business Plan
• You can make “mistakes” on paper before you invest time, effort and money.
• Helps you track your efforts to meet your goals.• It is not easy or quick if done correctly• It can cost both time and money, depending on the complexity
![Page 3: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/3.jpg)
Elements of a Business Plan
• Executive Summary• Company (Farm) Description• Product or Service• Market Analysis• Strategy and Implementation• Web Plan Summary• Management Team• Financial Analysis
![Page 4: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/4.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
![Page 5: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/5.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Marketing plans typically include a description of:
• Market conditions• Products• Buyers• Sales potential• Contract terms or pricing strategy• Promotion and distribution ideas• Resources
![Page 6: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/6.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
The questions you address will depend on whether your strategy targets:
• New products• New buyers• Both
![Page 7: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/7.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Business Planning Guide can be used for any commodity.
However worksheets are geared toward :
• Specialty commodities• Value-added products• Services• Alternative distribution
![Page 8: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/8.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Specialty commodities include:
Unique varietiesNon-traditional Non-GMOOrganicAgraceuticals
![Page 9: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/9.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Value-added product/services include:
Processed -- meat, dairyIP grain drying and storageB&BHunting preserveEducational classes
![Page 10: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/10.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Alternative distribution channels include:
ProcessorsWholesaleRetailDirect where buyers include individuals, restaurants, and
institutions
![Page 11: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/11.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Strategy
Easier strategy questions to answer:
How to price product How to promote productHow to store and transport product
![Page 12: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/12.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Strategy
Harder strategy questions to answer:
How much buyers will purchase How your competition will respond How prices may change in long-run How regulations may change
![Page 13: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/13.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Characteristics of Specialty Commodity Markets
Not fluidImmature markets; volatilityLack of transparency and resources
![Page 14: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/14.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Strategy
Marketing strategies typically fall apart when:
Sales don’t materializeNew competition enters marketBuyer preferences changeInsufficient quality, volumeUnrealistic from start
![Page 15: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/15.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing PlanWhat can you do to develop a realistic
marketing strategy:
• Contact potential buyers• Ask questions• Review contracts• Be realistic, honest about sales
potential• Observe and learn about competitors• Get outside opinions
![Page 16: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/16.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Most importantly, if your strategy involves specialty or value-added products and alternative distribution channels:
Research and document your assumptions!
![Page 17: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/17.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Two Strategies for Agricultural Producers
Commodity Creative AlternativeStrategy Strategy_________
Expansion oriented Niche oriented
Low-cost producer Unique product
![Page 18: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/18.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Characteristics of Two Strategies
Commodity Creative Alternative
Look at Look for alternative
expanding enterprises that herd or acres generate
revenue
![Page 19: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/19.jpg)
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Characteristics of Two Strategies
Commodity Creative Alternative
Production emphasis End-user focusManufacturing mentality Marketing
mentalityLow-cost producer Value-added
productsLarge scale operation Smaller
operationPrice risk Relationship risk
![Page 20: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/20.jpg)
Market Analysis
• Target Market Strategy• Market Needs• Market Trends• Market Growth• Competition• Buying Patterns
![Page 21: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/21.jpg)
Strategy and Implementation
• Marketing Strategy• Pricing Strategy• Marketing programs• Sales Strategy• Sales programs• Partnerships
![Page 22: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/22.jpg)
Web, Email, Facebook, Plan
• Website Marketing• Development costs• Email and Facebook use
![Page 23: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/23.jpg)
Direct Market Options for Farmers
• Agricultural Tourism• Roadside Stands• On-farm store• Farmers’ Markets• Consumer delivery• Community Supported Agriculture (CSA)• Internet or e-mail sales• Pick-your-own (PYO)
![Page 24: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/24.jpg)
What can I produce?
• Endless possibilities• Bound by local ordinance• Limited by expertise and facilities
![Page 25: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/25.jpg)
Marketing Options for Animal Production
• Purebred• Commercial cow/calf • Stocker• Small ruminant(s)-Goat, Lamb• Pork• Poultry-chickens, turkey• Rabbit• Direct sales-live, whole carcass, individual cuts• Dairy products, eggs
![Page 26: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/26.jpg)
Pricing for Direct Sale of Meat
• Cost of animal• Land• Finishing• Transportation to slaughter facility• Slaughter fee• Processing• Packaging• Storage• Transportation to retail• Promotion
![Page 27: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/27.jpg)
Oklahoma Dept. of Ag. Contacts
• Jon Pruitt- Slaughter and Processing- 405-522-6114• Bryan Buchwald-Poultry & Egg products-405-397-1895• Sam Carter-Dairy-405-501-3928• Jeff Stearns-Organic Certification-405-501-3955• Oklahoma State Department of Health-Defines a Farmers
Market, Food safety inspections, retail meat sales, Vendor Licensing
![Page 28: Business Planning & Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062418/555318f5b4c905a7778b4789/html5/thumbnails/28.jpg)
Resources
• http://extension.missouri.edu/sare/resources/directmeat.aspx