Finding your target market 2013

Identifying and Reaching your Target Market

Rick VanVrankenRutgers Cooperative Extension-

Atlantic County

6260 Old Harding Hwy.

Mays Landing, NJ 08330

609-625-0056

[email protected]

Rick VanVranken, Agricultural AgentCooperative Extension of Atlantic County

Ahhh… life on the farm!


If I grow it, they will come!

Won’t they?


Not your grandparents’ farm anymore!

Marketing your Produce

Producing for your Market!

Finding your Target Market Reaching your Target

Market

WHO are ‘they’?

If you grow it, they will come only if you can answer …


Knowing Your Market – The Most Challenging Part of a Business

Plan “Can you tell me how to

find customers for my products?"

"How much can I expect them to buy?”

“…probably the most troubling business questions that agricultural extension educators hear from small farm operators.”

Charles Schlough. 2001. Knowing Your Market – The Most Challenging Part of a Business Plan. Smart Marketing newsletter, Dept Applied Economics & Management, Cornell Univ.


What do ‘they’ want?

Some like them hot, some like them hotter, …

Scotch bonnet/habanero

Jalapeno, Cayenne

Pablano, Anaheim

Thai


…but some like them mild!

Have you asked?


WHO are ‘they’?

<American vs. Mexican>


#1 Rule in Marketing

Give the consumer what he/she wants!

Grow the right cropHarvest at correct stagePackage appropriately

for the customer/consumer

Avoid costly mistakesKeep the buyer happy!


The Food Chain from Farm to Plate

Farmer Cooperative

Retail Store/RestaurantProcessor

Broker/Buyer/Shipper

Direct MarketFarm Market

TailgateCSA

Mail Order/I-net

Consumer

Community Farmers’ Markets


Community Supported Agriculture


Wholesale Buyer-Shippers


Terminal Market Commission Merchants


Distributors


Retail Grocers


Finding your Target Market How?

Primary Research— just ASK! In-person Surveys Coupons

Visit the community Markets Trade shows Events

Read about them and what they read Trade publications Food magazines

Secondary Research US Census

National MarketMaker

WorldCrops.org

Pay for a market analysis?

Private Extension County or Municipal

Planning/Economic Development office

Better Business Bureau


Ask What?

Consumers How much do they normally

buy? How frequently do they shop? Do they prefer or only buy

local, organic, IPM? Will they pay a premium for

local, organic, IPM and how much?

Where do they shop now? Do they prefer to visit a farm,

a community farmers’ market, a retail market, or have it delivered?

How far are they willing to drive to a farm?

What else would entice them to buy your product?

Wholesalers How much volume they would

use? When would they want it Are particular varieties

preferred? At what stage should it be

harvested? What type of packaging

would be required? Will food safety certification

would be required, and if yes, which kind?

What price range would they expect to pay?

Will they pay a premium for local, organic, IPM and how much?


Market Analysis Describes

the product or service, the estimated size of the market in terms of

volume of product or amount of service, the segment of the market you expect to

serve, and the geographic area you will serve

Dean McCorkle and David Anderson. 2009. Niche Marketing. Texas A&M Extension.

WHO are ‘they’?

Distribution of Selected Asian & Hispanic Ethnic Populations in the NortheastBased on Richard VanVranken, Rutgers University NJAES Cooperative Extension

Asian Indian1895452, 35%

Chinese2106202, 29%

Filipino640030, 27%

Japanese163464, -5%

Korean739428, 22%

Vietnamese349454, 23%

Mexican2109372, 49%

Puerto Rican5030220, 16%

Cuban423070, 16%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

MD

MD

MD

MD

MD

MD

MD

MD

MD

MA

MA

MA

MA

MA

MA

MA

MA

MA

NJ

NJ

NJ

NJ

NJ

NJ

NJ

NJ

NJ

NY

NY

NY

NY

NY

NY

NY

NY

NY

PA

PA

PA

PA

PA

PA

PA

PA

PA

CT

DE

DC

ME

MD

MA

NH

NJ

NY

PA

RI

VT

WV

% of Total Northeast Ethnic Population in each State

Eth

nic

Gro

up

, Siz

e &

% G

row

th 2

000

to 2

010

Data: US Census 2010 and 2000. Graph prepared by Y. Han

Distribution of Selected Asian & Hispanic Ethnic Populations in the NortheastBased on Richard VanVranken , Rutgers University NJAES Cooperative Extension

CT DE DC ME MD MA NH NJ NY PA RI VT WV0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Cuban

Puerto Rican

Mexican

Vietnamese

Korean

Japanese

Filipino

Chinese

Asian Indian

% of Total Northeast Ethnic Population in each State

Eth

nic

Gro

up

Pop

ula

tion

(20

10)

Data: US Census 2010Graph prepared by Y. Han


Census Data RevealMarket

Opportunities

What kind of hot peppers should I grow?


Finding your Target Market


Communicate-ADVERTISE Word of Mouth Direct Mail

Post cards Newsletters

Merchandising Signs – on site or off Packaging and Display

Traditional Media Classified Ads Newspaper Ads Radio Television

Social Media Email Website Blogging

Reaching your Target Customer


Guerilla Marketing Down on the Farm

“Matty Matarazzo, media-whiz owner of Matarazzo Farms…is a master of using the media to gain free publicity.”

“…an album full of press clippings… largely as the result of sending out at least one news release a week.”

—from Sell What you Sow by Eric Gibson


“We can spend thousands of dollars on advertising,

commercials and radio … none give us the most

important reward of the press release—credibility.

Robert “Matty” Matarazzo



Communicate & Advertise

Word of Mouth

Direct Mail

Merchandising

Traditional Media

New Social Media

Primary Research ASK!

Visit the community

Read about them and what they read

Secondary Research US Census

National MarketMaker

WorldCrops.org

Target YOUR Customers

FIND them - REACH them -


Search for ‘Marketing Matters’ at http://www.growingproduce.com


Identifying and Reaching your Target Market

Rick VanVrankenRutgers Cooperative Extension-

Atlantic County

6260 Old Harding Hwy.

Mays Landing, NJ 08330

609-625-0056

[email protected]

Archived at: https://www.facebook.com/AnniesProjectNJ