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The Ohio Direct Marketing Team
Marketing Bee ProductsJulie Fox
The OSU South CentersSeptember 19, 2012
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Overview for the Day
• Trends• Marketing Combination
• Selling directly to consumers• Selling directly wholesale buyers
• ‘Local’ in Ohio
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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
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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
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Food Trends & ForecastsIndustry
•– Food Industry Report– Today in Food– Food Price Outlook
• Snacking• Specialty Foods
www.foodinstitute.com/research.cfm
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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
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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
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• 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
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• 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
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• People • Product
– Product selection and supply– Packaging & Labeling– Pricing, Invoicing & Payments
• Place• Promotion• Plan & Process
MarketReady
People – Product – Place – Promotion – Plan
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– 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
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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
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• 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
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• 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
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• 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
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• Restaurants, bakeries, caterers
• Margin-based retail pricing
• Selling to/with other farmers
• Invoices, Bill of Lading, …
Pricing
People – Product – Place – Promotion – Plan Wholesale
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• People • Product• Place
– Distribution & Storage– Signage & Merchandising– Marketing Environment
• Promotion• Plan & Process
MarketReady
People – Product – Place – Promotion – Plan
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• 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
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• 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
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• 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
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• 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
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• 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
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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
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• 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
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• 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
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• 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
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• People • Product• Place• Promotion
– Communication & Relationship Building– Marketing Strategies, Tactics, Culture– Connecting through Ohio MarketMaker
• Plan & Process
MarketReady
People – Product – Place – Promotion – Plan
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• Sales & Marketing to wholesale buyers• Marketing with wholesale customers
Marketing Strategies & TacticsRestaurant - Grocery - School/Institution - Other
People – Product – Place – Promotion – Plan Wholesale
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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
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Marketing Strategies, Tactics,…Farm Market - Farmers’ Market - CSA - AgriTourism
People – Product – Place – Promotion – Plan Consumer
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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
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Listings – Affiliations
• http://www.honeylocator.com• http://www.localharvest.org/store/be
e-prods.jsp• http://ourohio.org• www.ohioproud.org
• Maps & Apps
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Social Media Resources
http://ofbf.org/get-involved/resources/107http://directmarketing.osu.edu/content/technology.htm
Marketing Strategies & Tactics
People – Product – Place – Promotion – Plan
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• Online Guide toMarketing Online
http://go.unl.edu/directmarketingfood
People – Product – Place – Promotion – Plan Consumer
Marketing Strategies, Tactics, …Farm Market - Farmers’ Market - CSA - AgriTourism
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• 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
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• 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
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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
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Are You MarketReady?Bring it all TogetherYour Plan … Marketing Audit
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Resources
• http://www.beesource.com/• http://www.beeculture.com/• http://www.ohiostatebeekeepers.org
• http://beelab.osu.edu/
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ContactJulie M. Fox, Ph.D., [email protected] 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 [email protected](ext. 223)