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