prairie crossing organic farm marketing plan l.f.g. team
TRANSCRIPT
Agenda• Executive Summary• Situation Analysis• SWOT and Planning Issues• Goals and Objectives• Marketing Strategy• Action Plans• Financials• Questions
Executive Summary
The Opportunity
• Significant growth potential in organic farming sector
• Partner with local businesses
• Support the community and expansion
The Service
• Farm Business Development Center (Organic Farm)
• Learning Farm
The Strategy
• Leverage existing local health conscious market
• Educate through targeted advertising & promotion
Executive Summary
~Long-term sustainability
~Increased brand recognition by 25%
~Synergy between the Learning Farm and Farm Business Development Center
Objectives & Results
External: word of mouth,
incorporation of social media, continued growth of organic products market
Internal: commitment from
the foundation, budget, execution of plan
Critical Success Factors
Objectives & Goals
ObjectivesDevelop greater
presence of PCF in the community
Support sustainable existence of PCF and the organic food industry
Increase the number of farms growing organic produce
GoalsIncrease demand / recognition of 25%Develop & enhance sales channels – increase demand 20%Expand land & equipment capacity – est. increase in capacity of 50% over next 5 years
Consumer Analysis About U.S. Families
73% buy organic products at least occasionally, chiefly for health reasons
31% were buying more organic foods in 2009 than in 2008 17% largest increases in spending in past year were for
organic products 59% expect to increase the amount of organic products purchased in 2010 Organic foods appeal most to those ages 35 – 44 Consumers back to basics to bolster health
Source: 2009 U.S. Families' Organic Attitudes and Belief Study, Source: Consumer Union poll data March 2010 & “Today’s Specialty Food Consumer 2009”
Primary Research – Survey 29% - familiar/71% - not familiar
Prairie Crossing References 14% - other, 11% - friend, and 4% - family member
Familiar with Prairie Crossing offers 14% - Farmer’s Market 4% - Sandhill Organics 4% - Learning Farm 4% - Business Development Center
Organic foods cooking class 47% - likely to neutral 53% - somewhat to very unlikely
Organic farming 21% - very to somewhat likely 11% neutral 68% somewhat to very unlikely
Source: 28 surveyed from Surveymonkey.com
Market Size & Sales Analysis US Organic Market
24.8 billion in 2009; 5.1% growth Highest growth in produce – 11.4% 1.8 billion or 9.1% growth in non-food
Retail make-up Mass markets i.e. Wal-Mart
2009 - 54% of sales 2008 – 43%
Natural markets i.e. Whole Foods 2009 – 43% of sales 2008 – 48%
Remainder from farmers markets, online, export, etc.
Product Line Analysis Organic markets
Non-food (Organics fabrics and cleaning products) Animal (Beer, Pork & Poultry) Produce (Vegetables, Fruits & Grains)
Prairie Farm Services (farming & education) Produce through incubator and permanent farms
Competitive Analysis Varies by channel
Channels: Direct Markets
Other farmers markets participants Local Community Supported Agriculture Programs (CSA) Home Gardens
Natural Product Retailers i.e. Whole Foods Conventional Retailers i.e. Wal-Mart Restaurants i.e. McDonalds
Competitive Analysis
1991 1998 2006 20090%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
7%
31%
46%54%
25%
6%
10%
38%
68%63%
44%
8%
Share of Organic Sales by Market Channel
Natural Product Retailers
Direct Markets, Export & Other
Conventional Retailers
Sh
are
Competitive Analysis
Direct Markets
Natural Products Retailers
Conventional Retailers
Local Growers
Out of Region
Foreign
SWOT AnalysisStrengths
Success in farming and exceptional business acumen of family farm as a model
Success rate for incubator farmers after leaving Prairie Crossing (80%)
Business fully supports the trend for a healthier lifestyle & consumer preference for locally grown produce
PCF is certified as an organic grower
Property borders major roads & train line
WeaknessesLimited community awareness and understanding of the organization
Lack of connection of the two sectors
Limited land and equipment capacity
Location of the farm is hidden and somewhat secluded
Lack of revenue from the Learning Farm, not self-supportive
SWOT Analysis Cont.Opportunities
Growing demand/awareness of organic food & locally grown produce
Sales Expansion: Larger food chains (Jewel, Whole Foods) Small independently run markets Institutions (hospitals, schools, prisons) Restaurants
Effectiveness of websites (fragmented & hard to find)
Partnerships with universities/ hospitals/health clubs to educate the community
Develop uncertified land to increase farming capacity
Threats Economic conditions limit external funding
Economic conditions effecting consumers ability / desire to pay the higher price for organic food
Growing season is limited compared to out of state competitors
Impact of weather conditions
Sales competition with other local organic farmers & non-organic farmers
Planning Issues Connections to greater community
Leveraging of synergies
Limited land & equipment
Limited Supply -> Limits ability to expand sales
Seclusion of the farm
Marketing Strategy Statement
“Increase brand identity and recognition within health conscious consumers who
want to support the community by purchasing locally grown organic produce.”
“Increase awareness of the learning farm
which looks to educate and inspire people to value healthy food, land, and community
through experiences on the farm.”
Target Markets Primary Target Market
Existing local consumers Live in Grayslake or surrounding community (Lake County) Purchase organic products 50% or more of the time
Secondary Target Market Emerging / New organic consumers
Live in Grayslake or surrounding community (Lake County) Buy organic products less than 50% of the time Educational component critical
Positioning
“To health conscious consumers, Prairie Crossing Organic Farm is an organic farm that
offers locally grown quality produce educates on the value of healthy food & land is an integral part of the community
It is the only organic farm in Lake County to offer both produce and education.”
Marketing Mix Strategies
Product
Keep existing products & services
Expand education offerings
Pro
motion
Billboard(s)
Targeted promotion at local establish-ments
Sponsor community events
Community centers
Local restaurants
Distribution
CSA’s
Farmer’s Markets
Company website (services)
Social Net-working Sites
Price
Appropriate level to expand and support organi-zational growth
Service Mix Strategies
Peopl
e
Local communities
Schools
Restaurants
Beginning Farmers
Physical
Evid
ence
Increasing foot print
Logo
Billboard
Organic Restaurant on premises
Processes & Procedures
Federal and State Grants
Marketing promotions initiatives
Research & Analysis of Demand
Customer Satisfaction
Implementation Strategy PCF leading Brand in N.E. Illinois Organic Food
Subdivision Fresh Market Open Trade Day Local School District Lunch program Local radio stations program- Spanish/Russian
Create PCF Label/Logo Information Board Center in Whole Food store
Redesign PCF Web Page Under one Umbrella - individual Farmers web page Place order for Organic Food
Implementation Strategy Cont. Expand existing land size
Seek new corporate investors Seek Federal and State government sponsorship/grant Develop new ‘One Delivery Center’ Allow multiple family participation in the program
Healthy life style Create a Healthy Juice Booth in the Health clubs Use Local Community Center to advertise and sell
organic food Use local News paper to introduce local organic food
Task/Activity Time Period Responsibility Cost
Appoint intern for March to October 2011 March 2011 Director
$20,000
Research promotion and advertisement sites April 2011
InternN/A
Secure agreement from farmers to put Prairie Crossing logo on their websites
May 2011 Director
Place order for promotion media design, production and placement (billboards, displays, brochures)
June 2011 Director$10,000
1000/year
Organize and run events at corporate cafeterias, health clubs, schools, subdivisions, restaurants, organic food retailers. 20 events in 2011 and 6 each year @$1000 each
Growing Season Intern$20,000,
6000/ year
Update websites with event schedule and product availability
Growing Season Director
Promotion Action Plan & Programs
Task/Activity Time Period Responsibility Cost
Secure farmer commitment to sell up to 50% produce under the Prairie Crossing Organic Farm brand at a predetermined price
April 2011 Director
Secure farmer commitment to adopt Prairie Crossing recommended product mix
April 2011 Director
Develop packaging contract. Select a preferred supplier
May 2011 Director
Apply for Farmers Market Promotion Program grant
March 2012 Director $1,000
Secure equipment loan of $500,000 with US Farm Service Agency credit guarantee if necessary
Feb 2012 Director $5,000
Explore corporate investments (Whole Foods, Wal-Mart)
Jan 2012 Director $5,000
Product Action Plan & Programs
Task/Activity Time Period Responsibility Cost
Develop a peer inspection plan among participating farms to ensure consistent quality and labeling
May 2011 Director
Mediate peer inspectionsGrowing Season
Director
Quality Action Plan & Programs
Task/Activity Time Period Responsibility Cost
Issue order for website. Include features not present in current website like events, promotions and order processing
March 2011 Director
$8,000 one time, $1,000/ yr.
Secure agreement with captive farmers to distribute a portion of their produce through Prairie Crossing’s distribution channel and pricing contract
May of each year Director
Secure contract with distributor for Chicago area
April 2011 Director
$1000
Develop packaging contract with a preferred supplier
May 2011 Director$1000
Form a cooperative of local organic farmers in the region to sell under Prairie Crossing brand.
Jan 2013 Director $5,000
Distribution Plan & Programs
Task/Activity Time Period Responsibility Cost
Primary research of price at regional retail stores and farmers markets
March 2011 Intern
Order secondary market research data for regional pricing and demand of organic produce
March 2012Director
$5000/ year
Secure price agreements from farmers and distributor to allow 2.5% margin on all produce routed through Prairie Crossing cooperative
May of each year
Director
Pricing Action Plan & Programs
Financial Assumptions Sales per acre = $20,000 / year Margin for distributing through Prairie Crossing
channel = 2.5% Equipment loan = $500,000 (Feb, 2012) Interest on equipment loan = 6% Expected acres and branded sales level
YEAR 2011 2012 2013
Acres 90 99 109
Branded Sale Level % 25 37.5 50
Financials
YEAR 2011 2012 2013
Revenues Rentals $800 $1,600
Margin on Produce Sale $50,000 $55,000 $60,500
Expenses
Product/ Service development
$11,000
Distribution development $11,000 $1,000 $6,000
Promotions and advertisements
$50,000 $7,000 $7,000
Pricing research $5,000 $5,000 $5,000
Interest $30,000 $30,000
Earnings Before Tax
-$16,000 $1,800 $14,100