marketing dairy products · marketing dairy products megan bruch leffew value-added agriculture ....
TRANSCRIPT
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Marketing Dairy Products
Megan Bruch LeffewValue-Added Agriculture Marketing Specialist
Taking a Closer Look at Value-Added Dairy Opportunities WorkshopDecember 19, 2019
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Most Challenging Aspects of VA Dairy Businesses
69% - Knowledge and fulfillment of
government regulations
64% - Marketing
2017 Penn State Extension Needs Assessment -https://scholarsphere.psu.edu/downloads/c5999n448x
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Marketing is all about understanding target customers and developing strategies to reach them.
Target Market Customer
Values
Product
Positioning
Price
Place
Promotion
People
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Take a Market Driven Approach
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Take a Market Driven Approach
• What and how much is needed or desired?
• What is valued?
• What competition exists?
Is there a need/want your business can fulfill?
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How?• Ask/listen to your customers and potential
customers• Research related products and services
online and in person• Read industry studies • Network with related businesses and
organizations
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Penn State Extension –https://extension.psu.edu/dairy-product-trends-fluid-milk
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USDA Economic Research Service Data
• Fluid Beverage Milk Sales Quantities by Product
• Dairy Products: Per Capita Consumption• PCC Selected Cheese Varieties
• https://www.ers.usda.gov/data-products/dairy-data/
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Check Out the Competition
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NetworkFood Processing Suppliers Association
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Take a Market Driven Approach
• Demographics & Psychographics
• Customer Values (Customer Benefit, Cost, Convenience, Communication)
Who is the target market?
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A portion of the population with a
1.Need/want that your business can fulfill
2.Willingness to purchase
3.Ability to purchase
Your first and best customer
Target Market
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Different Target Markets for Different Products
Pictures from Pexels and Unsplash
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Characteristics of Customers
• Demographic Analysis– Age– Gender– Geographic location– Annual income– Marriage/family status– Ethnicity– Education level
• Psychographic Analysis– What do they VALUE?
– Lifestyle– Behavior patterns– Beliefs and values– Attitudes
– How do they make decisions? What information do they need?
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Different Target Markets have Different Values
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Take on a Customer State of Mind
Customer Benefit Customer Cost
Convenience Communication
CUSTOMER VALUES
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How?• Ask/listen to your customers and potential
customers• Research related products and services
online and in person• Research industry studies
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Consumers Perception of Local Food/Producers
• Trustworthy• Transparent• Unique• Authentic• Tastes Good• Nutritious• Supports Small Farms• Supports Community• Environmentally
Friendly
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Social Media Research Strategies
Listen– Trending topics– Follow discussions
Engage– Get involved in
discussions– Ask questions– Use polls
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Take a Market Driven Approach
• Is there adequate market size and potential share?
• Able to produce at a cost low enough and sell at a price high enough to generate a profit?
Does a profitable market exist?
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How?• Census data
– Population by age, race, ethnicity– Household income
• Expenditure data from Bureau of Labor Statistics
• Industry studies• Run some numbers
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Take a Market Driven Approach
• Develop, implement and evaluate marketing strategies. (Product, Positioning, Price, Place, Promotion, People)
How do I reach the target market?
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Marketing Strategies Differ Depending on Target Market Values
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Product (Customer Benefit)What does the customer need or want? How can your product be unique?• Product characteristics and featureso Packagingo Informationo Serviceso Experiences
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Product (Customer Benefit)Goat Lady Dairy – N.C.Dinner at the Dairy
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Product Positioning(Customer Benefit)
• Image or message to portray to customers through marketing efforts
• Mental pitch
• Consider your unique selling proposition
• Be consistent
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Place/Distribution (Convenience)
• Where are customers likely to access product?o Farmers marketo On-farm retailo Roadside stando Internet sales/shippedo Other retailers (wholesale sales)
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Place/Distribution (Convenience)
• Days/hours• Delivery
services• Aesthetics• Merchandising• Customer
comforts
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Price (Customer Cost)• Pricing is part science and part art• Consider
– Fixed and variable costs of production and marketing
– Supply and demand – Customer willingness to pay
• Retail vs wholesale– Competition– Image/Positioning– Product/Service Quality– Place
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Promotion (Customer Communication)
• How do customers learn about products or services? – Promotion Strategy Options
• Word-of-Mouth• Publicity• Public Relations• Sampling• Discounting• Advertising
Promotion
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Promotion Musts
• Connect with local food promotion programs
• If you aren’t on the web, you aren’t.• Website• Social media• E-mail
• Don’t put all your eggs in one basket• Develop a promotion budget
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Develop a Marketing Budget• Create budget based on
expected sales and costs of marketing activities
• Marketing budgets often 5-10% of sales– Ads 3-5%
• May change over product life cycle
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Take a Market Driven Approach
• What and how much is needed or desired?• What is valued?• What competition exists?
Is there a need/want your business can fulfill?
• Demographics & Psychographics• Customer Values (Customer Benefit, Cost,
Convenience, Communication)
Who is the target market?
• Is there adequate market size and potential share?
• Able to produce at a cost low enough and sell at a price high enough to generate a profit?
Does a profitable market exist?
• Develop, implement and evaluate marketing strategies. (Product, Positioning, Price, Place, Promotion, People)
How do I reach the target market?
![Page 35: Marketing Dairy Products · Marketing Dairy Products Megan Bruch Leffew Value-Added Agriculture . Marketing Specialist. Taking a Closer Look at Value- Added Dairy Opportunities Workshop](https://reader034.vdocuments.mx/reader034/viewer/2022042620/5f447b63a938245fb67909a7/html5/thumbnails/35.jpg)
Marketing Resourcesag.tennessee.edu/cpa
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Megan Bruch LeffewCenter for Profitable AgriculturePhone: (931) 486-2777Email: [email protected]: ag.tennesse.edu/cpafacebook.com/ValueAddedAg
Marketing Dairy Products