OCEAN MIST FARMS

OCEAN MIST FARMS

Syndicate MemberDevin Fortranansi FirdausKartika AmandaMaulana Angga UtamaMautia Kusuma WardaniMuhammad Inssan NasherNaafi Yudha DiputraRoro Arinda ReswantiSwastika Tiara ArdhianiINTRODUCTIONKori Tuggle is a director of marketing and business development at Ocean Mist Farms

Ocean Mist has several strategy for marketing :1. Use celebrity chef to create recipes2. In store demos & online videos3. Easy to cook microwaveable packages4. Internet based Fan Club

COMPANY HISTORYOcean Mist is the largest grower and shipper of artichokes which grew artichokes & 30 other Cooking Vegetables.

History :1922 : First time of farming1989 : Expanded to the Coachella Valley1995 - 1998 : Worst flooding at farming area 2000: Sales increase 6.5 %1998 - 2012 : Distributor for Retailer, Whosales, Foodservices channels, and spot market.

COMPANY HISTORY (cont)Ocean Mist grew, packed, and shipped 70 to 80 % of all fresh artichokes sold in U.S

a niche item and a differentiator by employees was the defining symbol of the privately held company.

The company employed about 1.500 people

GROWING ARTICHOKES IN CASTROVILLEArtichokes were a cool-season crop

Castroville has the perfect microclimate to grow artichokes 13C 24C.

Process of Growing Artichokes in CastrovilleHarversting & PackingCooling, Processing, & ShippingSales

U.S FRESH VEGETABLES INDUSTRYIn 2012, there were about 70.000 produce growing companies in U.S.

Early or late frosts or freezes hair or heavy rans, or extended periods of high temperatures, could drastically affecct the quality and availability of fresh produce

U.S FRESH VEGETABLES INDUSTRY (cont)Growers typically received about 25% of the consumer purchase price a product.

By 2011, fresh produce accounted for more than 50% of all produce purchase (in 1970s 40%).

One new product Ocean Mist had develop was a microwaveable packaged artichoke and it was first appeared in stores in early 2012.

U.S FRESH VEGETABLES INDUSTRY (cont2)The top 8 grocery store chains made up more than 50% of the market by 2012 and nontraditional food retails for another 25%.

Growers primarily sold fresh produce to retails and foodservice location either directly or through broker or wholesalers and other sold it as commodity items.

ARTICHOKES AT RETAILTotal U.S sales of artichokes in 2011 topped $175 million divided into :90 % : sold in grocery9 %: sold at mass merchandise1 %: used in the foodservice industry

Artichokes were only 0,1 % of stores annual produce sales.

ARTICHOKES AT RETAIL (cont)Two types of people by artichokes :1. Traditional Customers2. Upscale CustomersMost important characteristics when consumers purchasing fresh artichokes :Appearance % priceIn 2012, traditional U.S grocery retailers were experiencing a numbers of challenges including price sensitive and time pleased consumers.

MARKETING AT OCEAN MIST FARMSOcean Mist divide its consumer into 2 :1. Heavy users (purchased monthly)2. Light users (few times per year)

Digital Media that is used for marketing1. Website (launched in 2007)2. Artichoke fan club (created in 2007)3. Social Media (twitter, FB, YouTube)4. Mobile Site (launched February 2011)

MARKETING AT OCEAN MIST FARMS (cont)Uses for New Found Knowledge1. Data and Insight2. Direct consumer outreach

TREND IN DIGITAL AND SOCIAL MEDIACustomers looked for quick, authentic and individualizd resposnes to their questions and comments

Rewarded cunsomers for partisipaton on social media and in marketing campaigns. (customer loyalty programs)

Using social media and struggled with the risk of brand image losing control

LABELING ARTICHOKESPackaging or labeling artichokes added anywhere from $0.25 to $ 1.00

The company had recently develop petal inserts as a new, proprietar method of labeling artihokes

A final sticker design inclluded a brand identity, website URL, country of origin, PLU code, and stacked data barcode.

ISSUEWas labeling the entire artichoke crop the right next step for Ocean Mist? Would the sticker create more brand awareness and boost sales enough to offset the costs to growers? If demand did increase significantly would Ocean Mist be able to supply all of their customer? Who will incur the added cost and whats the return on investment?

PROBLEMSMany people in parts of the U.S have never seen one, let alone eaten one the fresh artichokes.

In this industry, the problems are to determine :When is a good year to farming artichokes?Where should grow & get a high price?The tendency about to plant for next year?How to estimating demands?

PROBLEMS (cont1)One retailer hoped that Ocean Mist would improve brand awareness, but worried about supply issues.

Labeling could increase labor costs by 1%-5%.

How to using social media and struggled with the risk of brand image losing control

CONCLUSIONS & SOLUTIONOcean mist should labelling their product because with the labelling consumer will known the product clearly. The customer will know which product they have to choose.

With the packaging and the labelling our product have more value then the other competitors product. Consumer will aware that we care about our packing quality include hygine of product.

CONCLUSIONS & SOLUTION (cont)With that benefits Ocean Mist can increase their price between 1-5 % to covering the additional cost for labelling and packaging.

To overcome the increasing of the demand, Ocean Mist can take some solutions like : Calculate the average of the demand. if Ocean Mist still can cover it with their own productions, Ocean Mist can add their finish product by their own field.Contract the local grower to growing the artichokes for us with several benefits like training to the right step, give them a best seed with a cheap price, help them to control, the progress and etc.

CONCLUSIONS & SOLUTION (cont2)Manage social media proactively and always response to customers questions & comments

The add cost will incure by costomer (by increasing the price).

The return of investment is consumer will known our product better then competitors product (hygine and exclusive)

Farming artichokes at Castroville a mild temperature range of 24 C days and 13 C at night (month march to may)