Marketing Grass Roots Style

8/3/2019 Marketing Grass Roots Style

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Lara L. Worden

Area Agriculture Agent

NC State Cooperative Extension

Serving Catawba, Cleveland, Gaston, & LincolnCounties

Marketing


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What is Marketing?

Transactional Marketing transaction for profit a sale is one time event increased profits = increased sales &

lowered costs

Relationship Marketing

seeks to grow a business by cultivatingloyal, repeat customers and by word ofmouth advertising to help recruit newcustomers


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What is Marketing?

Marketing is EVERYTHINGyou do to promote your

business, from the momentyou conceive of it to the point

at which customers buy yourproduct or service and beginto patronize your business on

a regular basis.

The key words to rememberare everythingand regular basis.- Jay Conrad Levinson

Guerrilla Marketing


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What isDirect Marketing?

Direct marketing is sellingdirectly to the end consumer.


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The 4Ps and the 4Cs

The Marketing Mix


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The 4 Ps of Marketing

Productneeds to standout, why buy your product over someone

elses?Place

where you market is has as much to do with how youmarket

Price

cost of production, break-even analysis, competition,

what will the market bearPromotion

everything you do to sell your product; can mean thedifference between success and failure


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The traditional 4 Ps ofMarketing matter. They arethe four areas in which a

producer can make changes.But the challenge is to get

beyond them to the 4 Cs.


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The 4 Cs of MarketingWhat does the customer want???

Customer

Product =What thecustomer

wants/needs

Place =Convenience

Price =Cost to User

Promotion =Communication


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Customer WantsNot yesterdays buzz, but todaysor even tomorrows

i.e. Food Buying and Healthy Living Trends 2011 Local Food Rocks!

i.e. Rediscover the Butcher, the Baker, & theCheese Maker Fresh is Better! (follow Europeancounterparts)

i.e. Renewed interest in Food Preservation CanningComeback!

i.e. Chefs in Schools Serious about feeding our

youth healthier, better quality foods!The wrap-around, the bundle No confusion, no contradictions


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Farmers Market Growth:1994 - 2011


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Convenience to the Customer

When they want it, the waythey want it, how they want it

ready to use Time is a lot more than moneythese days

Beyond placement to instantaccessibility


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Cost the Value that theCustomer sees being met

Yes built onCosts/Competition/Communication/

Breakeven/What the market willbear, but

Can you express/sell the Benefit

of your product? (Benefit to thecustomer)


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Features vs. Benefits

FeaturesSize, Quality, Varieties, Price, Types,

Materials

BenefitsHealth, Convenience, Social Status,

Security, Time Savings

PEOPLE BUY BENEFITS, NOT FEATURES!
http://www.papajohns.com/index.shtm


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CommunicationWhen is a tomato more than atomatoUnderstand and communicate back to thecustomer the attributes the customer islooking for;

Advertising and Word of Mouth matter

Display and Merchandising matter Image projection matters!!!


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Online Newsletters/Blogs


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Displays/Image Projection areImportant!


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1. Determine what people want (the new buzz;DO NOT produce what everybody already

has; e.g. produce in off season)

2. Find or create products that satisfy theirwants3. Select the most effective means of

communicating with people about the productand its benefits

4. Develop strategies that will create a desirefor the product in prospective customerswho have not actively expressed their wants

Where to Start???


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Defining the Market

1. Identify your customer profile2. Identify your market area

3. Determine the number of people inyour market area who potentiallymatch your customer profile.

4. Determine the market potential for

your business in your trade area.


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Customer Profile:DemographicsAgeGender

LocationEducationOccupation

Income LevelMartial StatusKids?


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Customer Profile: Psychographics

Needs and ValuesSecurity, esteem, love, acceptance, understanding,beauty, good health, status, success, simplicity, altruism

Buying StylesPrice, fads, quality, technology, luxury, convenience

CulturesModern, traditional, artistic, religious, liberal,conservative, environmentally aware

Attitude Towards Technology

Early/late adopter, passive or active, work or pleasure Interests

Sports, reading, fitness, cooking, travel, gardening,outdoors, online activities


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Age Subcultures

GI or WWII Generation (before 1933)accounts for 10% of population, mostly overage 79

Swing Generation (19341945) 12%; 67 to 78 Baby Boomers (1946-1964) 25%; 48 to 66

Generation X (1965-1976) 17%; 36 to 47

Millennial Generation (1977-1995) 25%;17 to 35

American Generationsby Susan Mitchell, 1998


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GI WWII Generation Born before 1933 10% population today In 2012: 79 years

plus

In 2015: 82 plus Characterized asfrugal spenders

Less likely to try newthings

Less formaleducation, but moreaffluent


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Swing GenerationBorn 1933 to 1945 Only 12% of population

In 2012: 67 to 78

In 2015: 70 to 82 Small segment caught

between two powerful

forces Some have prospered;

others have not
http://www.whosdatedwho.com/celebrities/people/dating/james-brolin.htm


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Baby Boomers Born 1946 to 1964 25% of population In 2012: 48 to 66 In 2015: 51 to 69

Larger discretionaryincome; buy more saveless; health conscious

Largest generation,

raised by younger stayat-home mothers & Dr.Spock (Not Mr. Spock)


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Generation X

Born 1965 to 1976 17% of population

In 2012: 36 to 47

In 2015: 39 to 50 Well educated, event

or experience focused

Technology drivers Tend to be big spenders


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Millennial Generation Born 1977 to 1995 25% of population

In 2012: 17 to 35

In 2015: 21 to 38 Children of Baby

Boomers & Gen X

Most culturally diverse Busy, wealthy, the next

economic powerhouse


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Market Area & # of People

Eight Steps toIdentifying aMarketHandout

Use the Internet Google

Claritas

City-Data.com

U.S. CensusBureau


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You are Where You Live - CLARITAS

http://www.claritas.com/MyBestSegments/Default.jsp


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You Are Where You Live - CLARITAS


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CITY-DATA.COM


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Gastonia, NC


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Gastonia, NC


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Median Household Incomes in counties within 50miles

Union ($60,074)

Mecklenburg ($55,587)

Lincoln ($47,859)Gaston ($42,110)

Catawba ($43,303)

Cleveland ($37,889)

US Census, NC Quick Facts

Buying is a function of income

Focus in

these

income

zones

http://factfinder.census.gov/home/saff/main.html?_lang=en


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Location, Location, Location

Proximity to customers Neighborhood Convenience Safety (lighting, off-street parking, etc.) Accessibility (ADA)

Visibility Foot traffic, vehicle traffic Other complementary businesses nearby Size / floor plan requirements Lease or own

Zoning restrictions Landlord restrictions Costs (property, amenities, required improvements)


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What do you know?Who would buy a similar product orservice?

Can you describe them in terms ofmeasureable variables, including age,income, education, home value,gender, ethnicity, or zip code?

Do you know how often theypurchase or use the product?


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What do you know?Do you know why they use theproduct?

How often do they use the product?Daily, weekly, monthly? How much of the product do theyuse (light, medium, heavy)?

Why do they use the product?Health? Prestige? Comfort?

P d ti Ad ti St


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Production Adoption Stages

%

Using

Time

Early

Majority

Late

Majority

Innovators EarlyAdopters Laggards

ll


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Who is willing to pay whatprice? There is always a small group ofcustomers who consume/buy asubstantial amount of product

Call this the 20/80 Rule 20% of consumers buy/use 80% ofproduct. Call them the Heavy Half

Can you identify light (occasional),medium (regular) and heavy (veryfrequent) consumers of your product?


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Adoption and Use

Are more of the heavy users amongthe innovators?Are more of the medium users

among the early majority, some in thelate majority?Are more of the light users among

the laggards? Are there some who will neverbuy/use your product?


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Where are mycompetitors?

Wh l h C ?


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Why Analyze the Competition?

Because You Might: Learn more about what the customer reallywants (or doesnt want)Discover unserved niche markets Learn how theyre dealing with new laws, trends,

and technology(e.g., green, social networking,demand-driven manufacturing)

Get ideas for marketing, merchandising, andproduct mix

Obtain valuable advice, support, and information

Because You Will:Determine whether you have aCOMPETITIVE ADVANTAGE


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SWOT AnalysisStrengths

What are your business strengths? Competitionstrengths?

WeaknessesWhat are your business weaknesses? Competition

weaknesses?

OpportunitiesWhat opportunities are available for your business?

ThreatsWhat threats might you encounter?


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From the Internet!

www.localharvest.org

h l ll
http://www.localharvest.org/http://www.localharvest.org/


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COUNTY: www.localharvest.org

Am I the only one selling it?

N t t d!


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No stone unturned!

http://www.ncagr.gov/NCproducts/index.htm

N t t d!


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No stone unturned!

http://www.foothillsfresh.com/

ASAP L l F d G id


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ASAP Local Food Guidehttp://www.asapconnections.org/


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Piedmont Grown

http://www.piedmontgrown.org/


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In Review The customer is the central focus of

marketing Demographics, psychographics, age, zipcode, etc.

Identify the ideal market area Location, location, location

Is there market potential??? Who is going to buy your product? Who are your competitors? Where are your competitors? How is your product unique?


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Marketing WisdomDont underprice your product(s)Dont try to satisfy all customers

Play the role of educatorQuality is the #1 job!

Th R P d t


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Local, organic, log-grown fresh pickedShiitake mushrooms

The Raw Product

Th Shiit k Q


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Farm Location:Gastonia, NC (Gaston Co.)

Production:

800 pounds per yearGoal:Sell 100% of production

through direct sales to customer

The Shiitake Queen


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d k l !


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We need a marketing plan!

Step 1: supply

Step 2: demand


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Who are my

competitors?

h !


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From the Internet!www.localharvest.org

Farms: 2 w/in 25 miles

5 w/in 50 miles

3 w/in 100 miles


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From the Internet!

www.foothillsfresh.com


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Where are my

customers?

F h I !


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From the Internet!www.localharvest.org


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They shop at Farmers Markets

Within 50 miles

there are 58 farmers

markets

www.localharvest.org

They eat at fine restaurants that


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They eat at fine restaurants thatserve local grown foods

Within 50 mi- 2 listing

Also check:yellowpages.com

http://maps.yahoo.com

local chambers of commerce

Using these searches:

*200 sit down restaurants

*69 caterers

I th D d?


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Is there Demand?

Who wants mushrooms?

In the U.S., per capita consumption is 3.65

pounds of mushroomsMushrooms are thesixth leading vegetable in farm receipts,

consumers are primarily whites and asians.1

1Lucier, G. and A. Jerado. Vegetables and Melons Outlook. VGS-304.

Washington: US Dept of Agriculture. 2009.

I th D d?


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Is there Demand?

Who wants mushrooms?

A heavy user segment is larger families (i.e.

households with children under 18 years livingat home), as they buy fresh mushrooms

significantly more often than their

counterparts without children.1

1Fresh Mushroom Consumer Segment Study. The Mushroom Council. 2005.

Is there Demand?


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Is there Demand?Who wants mushrooms?

The U.S. is the worlds

second largest

mushroom producing

country behind China.Pennsylvania, California,

& Florida are the largest

mushroom growing

states.1

Popular Mushrooms:

White button

Crimini

Portabella

Shiitake

Maitake

Oyster

1Mushroom Council Research Report. 2004

I th i h ?


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Is there a niche?

Niche #1: Foodies! www.foodnetwork.com 2,955mushroom recipes; 608 are shiitake related/asian

inspired.1

1From: www.foodnetwork.com, 2011.

2From: http://my.webmd.com/content/article/20/1728_53385..htm

Niche #2: Natural Health- Mushrooms (shiitake)

may play a role in breast cancer prevention and

treatment.2 May have health benefits for immunity

and cancer recovery.2

P t ti l C t


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Potential Customers

Population (Within Gaston Co.): 199,673

PRIMARY ETHNIC MARKET

White (79%): 160,4891

Asians (1.2%): 240211 US Census, NC Quick Facts, 2005 - 2009.


Where do they live???


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Median Household Incomes in counties within 50

milesUnion ($60,074)

Mecklenburg ($55,587)

Lincoln ($47,859)

Gaston ($42,110)

Catawba ($43,303)

Cleveland ($37,889)

US Census, NC Quick Facts

Where do they live???

Focus in

these

income

zones


R l


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Results

Competitors?10 or fewer farms direct marketingmushrooms within 100 miles

Customers?

Asian & Caucasians with children at homethat have above average incomes and arehealth conscious

Market?

Farmers markets & restaurants in Gaston,Lincoln, Union, & Mecklenburg counties

Documents

Marketing Grass Roots Style