12… · 2017-01-04 · Advanced,Incubator, Management, 12| "Agribusiness"Incubaon" Component3"–Agribusiness"Marke1ng" 2 12#|#AgribusinessIncuba1on#–Component#3#–AgribusinessMarke1ng#

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12 | Agribusiness Incuba1on – Component 3 – Agribusiness Marke1ng

WWW.INFODEV.ORG I WWW.IDISC.NET 1

Suite 3 Advanced Incubator Management

12 | Agribusiness Incuba1on Component 3 – Agribusiness Marke1ng

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WWW.INFODEV.ORG I WWW.IDISC.NET

AGRIBUSINESS MARKETING Component 3:

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You will be able to: •  Specify where in the value chain to market there is opportunity to help your incubatees add value to their products/services

•  Specify acOons you can take to help your clients sell their products/services more successfully

Learning ObjecOves

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♦ Think for a moment about agricultural commodi1es and make a note of an example where the profitability of that commodity increased by adding value. (2 min)

♦ When invited, offer an example to trainer. (3 min)

WARM-‐UP AcOvity (5 minutes)

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1. Adding Value to the Market

♦ Your primary goal as an agribusiness incubator is to develop SME entrepreneurs into profitable and sustainable enterprises.

♦ You will help your clients turn their uncompe11ve commodi1es into compe11ve products

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2. Beyond CommodiOes: DifferenOated Products

♦ Differen1a1ng the products creates value ♦ Differen1a1ng products requires more coordina1on

♦ More coordina1on requires value chains (organized systems for the produc1on of higher value)

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From Markets to Value Chains

Commodity Product

Differentiated Product

Wheat White Bread

White, thinly slice, low carb Dark, raisin, seven grains

French Bague[e Italian RusOc, Olives, Focaccia,

Tuscan

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Examples of Successful Products

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3. Market InnovaOon Process: Steps to Add Value

Step 1 Choose a market which corresponds to the incubatees brand domain e.g. poultry products, agricultural hand tools, nut cracking equipment.

Step 2 IdenOfy a need in that market which is underserved or

served unproduc1vely Step 3 Create a value added product or service to meet that need Step 4 Test, refine and confirm the value, affordability and

salability of the new product in the target market Step 5 Communicate the value proposiOon associated with the new

product

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4. SelecOng a Market

There are four market entry op1ons available to an incubatee:

♦  tradi1onal markets ♦  ins1tu1onal markets ♦  incubator affiliated markets, and ♦  export markets.

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SelecOon of a Market in which an Incubatee Chooses to Compete

InsOtuOonal Markets: i) School Food Programs, ii)

Government Agencies, iii)

Restaurant and Hotel Industry; iv) Foreign

Embassies; etc

Export Markets: i) Specialty Food

Markets, ii) Fresh F&V Supermarket Sales; ii) Brokeras

& Agents

TradiOonal Markets: i) Rural Retail Outlets and Chains, ii) Street Vendors, iii) Urban

Whole Sale Markets

Incubator Affiliated

Markets, e.g. Villgro

Stores,Timbali, Technoserve Mozambique

Most Difficult/ Highest Return

Least Difficult / Lowest Return

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Fresh Fruit & Vegetable to Supermarkets

Different Product/Market Niches Require Different Core Competencies from Incubatees

Specialty Food to Foreign Distributor

Logis1cs

Selling ProducOon Quality Control

Logis1cs

Branding & Packaging

Food Regulatory Compliance

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♦  HACCP – Hazard Analysis & Cri1cal Control Points is a cri1cal food hygiene management system for consump1on products processing and produc1on.

♦  ISO – Interna1onal Organiza1on for Standardiza1on is a global network that iden1fies interna1onal standards for businesses, governments and socie1es. ISO 9000 is for Quality Management. ISO 14000 is for Environmental Management. Sub-‐categories for each.

♦  Organic – cer1fied by the registered en1ty.

♦  Fair Trade – guarantees fair pricing for producers in the value chain.

♦  Ethnic/Religious – Halal or Kosher are two most common religious cer1fica1ons in the US market.

♦  Regional/NaOonal or Cause cerOficaOons

CerOficaOon

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5. Market PosiOoning: Defining the Value ProposiOon vs ExisOng CompeOOon

0

5

10

15

20

25

30

35 Freshness

Appearance

Packaging Price

Food Safety Assurances

Incubatee Product

Market Leader

Market #2

Market #3

Example: Fresh melons sold in the Paris wholesale market (Origin: Senegal)

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6. ExecuOon: Influencing your Market

♦  A great deal of market success relates to execu1on.

♦  Marke1ng is not a true or false test. ♦  Companies shape and mold the markets in which they

par1cipate.

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6. ExecuOon: Be SystemaOc

♦  Listen systema1cally to customers and respond to their problems quickly

♦  Listen systema1cally to network partners and respond to their advice and admoni1ons

♦  Con1nuous adjustment and improvement: compare actual against planned revenue, market share and posi1oning. Fix problems quickly

♦  Celebrate successes and learn from failures

♦  Incorporate lessons learned in current marke1ng methods and keep moving forward

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7. Export Market Development

Export Markets are an excellent target market for value added food processing entrepreneurs. Incubator managers should: ♦  Learn about interna1onal opportuni1es and the requirements for

entering these markets ♦  Understand the value-‐chain associated with each market ♦  Do not ignore available markets in countries that are frequently

overlooked (Kenya, South Africa, Mexico, Korea)

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Good News for Export Market Development

§  Choma Sauce (Kenya) §  Jollof Rice Mix (Ghana) §  Cape Malay Curry (South Africa) §  Piri Piru Sauce (Mozambique) §  Chiponde Sauce (Zambia) §  Baobab products (Africa) §  Injera Mix (Ethiopia) §  Tagine Seasoning (Morocco) §  Yassa Sauce (Senegal) §  Chapa1 Majis (Tanzania)

PRODUCTS EXPORT MARKETS

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ACTIVITY -‐ Increasing Sales (30 Minutes)

1.  Recall the type of incubator you represent and note its strengths. (1 min)

2.  Review briefly the Value Chain map and the promising interven1on point(s) iden1fied for growth. (1 min)

3.  With a partner, brainstorm ways to support your incubatees’ capacity to increase sales by a factor of ten. (8 min)

4.  Select an idea with promise and integrate it into your Value Chain map. (10 min)

5.  When invited by trainer, explain briefly your idea for increased marke1ng . (10 min)

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SUMMARY -‐ Component 3

♦ Marke1ng is all about crea1ng value based on how value is defined in the mind of the customers which incubated companies target.

♦ Marke1ng agribusiness services and agribusiness prac1ces requires knowledge of the posi1on of: product formula1ons, packaging, pricing and promo1on.

♦ The best kind of incubator support comes from developing internal capabili1es, which include a mixture of business experience, business acumen and crea1vity.

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Stay Tuned!

www.idisc.net www.infodev.org

12… · 2017-01-04 · Advanced,Incubator, Management, 12| "Agribusiness"Incubaon" Component3"–Agribusiness"Marke1ng" 2 12#|#AgribusinessIncuba1on#–Component#3#–AgribusinessMarke1ng#

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