Ginger S. MyersUniversity of Maryland

ExtensionRegional Marketing Specialist301-432-2767 ext. 338 gmyers@umd.edu

1.What will it realistically take to achieve your goals from a resources perspective?

2. How long will it take?

Where and Where and how your how your

process your process your products products

determines determines where and where and

how you may how you may sell them in sell them in Maryland.Maryland.

Inspection mark on raw poultry

Inspection mark on processed products

Inspection mark on raw meat

Live Animals- auctions, private treaty, freezer sales

Hybrid- Differentiation, graded sales, group sales, seed stock

Mixed Markets including Value-Added & Direct Marketing

Strengths and Weaknesses- usually internal factors that you can control.

Opportunities and Threats- Usually external factors you can’t control

Understanding trends, customer buying “hot buttons” and industry issues is your best “Risk Management” tool for dealing with EXTERNAL Factors.

Meat business is very different from the cattle, livestock or poultry business.

Must become a student of “marketing” Consumer trends Product and Food safety Regulations

Could take 2-4 years for your meat. business to take off.

Access Necessary Infrastructure

Processing capabilitiesProcessing capabilities Distribution avenuesDistribution avenues Market segmentsMarket segments Cooperative arrangementsCooperative arrangements Cash flow requirementsCash flow requirements

What is Your What is Your ProductProduct ? ?Production MethodProduction MethodDescriptionDescriptionProcessing &PackagingProcessing &PackagingLabelingLabelingTarget MarketTarget Market

4Ps of Marketing- Product, Price, Position, Promotion

1.Easy to sell high-end cuts and hard to sell low-end cuts.

2.Pick customers in proportions to what you need to sell.

3.Low end cuts are more price sensitive.

4.Consider adding value to low end cuts to make them more profitable.

Tenderloin 12 lbs.NY Strip 14 lbs.Rib Eye 24 lbsStir Fry Strips 6 lbs.Roasts 68 lbs.Ground beef 107 lbs.

Where and How to Market

From the Farm-Live

Processed-1. On-farm Customers- Licensed by Maryland Department of Health for Direct Sales of frozen cuts.2. Retail off the farm

Label- At a minimum must have Product name USDA inspection legend Address line with “Distributed by” or

“Packed for” Net Weight Safe Handling statement Ingredient Statement

Restaurants- Locally owned, may want fresh rather than frozenContact them off-hours.

Stores-Charge a markup of about 30%Questions- customers, current gross sales, case size, promotional material, liability insurance

Go Prepared-Multiple copies of brochures, business card, price list, your sales proposal, two perfect sets of product. Do not charge for them.

Where and How to MarketFarmers’ Markets- Go Prepared

1.Knowledge of health regulations and market rules.2.Good signage and display your price.3.Display your product- people won’t buy what they can’t see.

4.Be out going and tell your story.

Mail Order or Internet Marketing

1. Effective Web Design- Less is More2. Keywords to improve search rankings3. Free Listings4. Update your website regularly5. Contact info:

Secure credit card purchasesContact number for orders

6.Reliable and Cost Effective Shipper

Shipping Frozen MeatMust be USDA processed.

USDA guidelines:

www.fsis.usda.gov/OA/pubs/mailorder.htm

Of the 4Ps, price is the only one that brings money in; the others send money out.

Determining Your Price-Point

1.Costs + Desired Profit2.Pricing with the Competition3.Low price hoping to make it up on volume

Place:

1. Marketing Outlets2. Marketing outlets- contract, hybrid, direct

Promotion:

1. Product Perception2. Website?3. Supporting marketing materials vital for

direct marketing

Barriers to Direct Marketing

Lack of trust in unknown sources – particularly those seen as unregulated or lacking standards

Expect pasture-raised products will cost more, which means they expect more

Concerns about affect on taste

Need for convenience—access

Resistance to buying in larger volumes

Family, Friends, & Target Groups

Get feedback and learn about:Cuts, Packaging, Presentation

Grow Incrementally

Women don’t want to lift more than 35 lbs- keep boxed beef in this range

Risk

Added risk selling retail

Liability Insurance

Legally organizing meat sales separate from your farm

Best Marketing Tool: Best Marketing Tool: Your Marketing PlanYour Marketing Plan

The 20 Minute Marketing Plan

1. What’s My Product 2. How Much Will I Charge for It? 3. Who Will Buy It? 4. Where Will I Sell It? 5. How Will Customers Find My Product? 6. How Will I Know If My Plan’s Working?