Time to review farm marketing strategy 

As the year draws to a close and thoughts turn to what 2007 holds, it may be timely to review marketing strategies for the farm and its output. 

If there is just one message to keep in mind, regardless of what is produced, it’s this – marketing means identifying what customers want, and gearing the farming system to supply it consistently. 

The questions this statement might raise are “which customers to sell to”, “what do they want”, and “how much profit is likely to be made from them?”  

A framework is given below which may help arrive at answers.

Marketing Framework

 If the aim is to review whether the current system is delivering the best profit, then
market research might just mean exploring whether a change in customer could be beneficial, and, having identified a list of possible customers, talking with them to check what value the farmer could add to the basic product. This could be a particular quality standard, guaranteed continuity of supply, or special service.  

The sort of premium the customer might pay should also be assessed.  

Market research could also help identification of a different market, say from stores to finishing, or sale of breeding stock. But again, it is important to be clear about who the customer is, and what in their mind constitutes added value and willingness to pay a premium. 

Analysis of farm resources in these cases would be a check of the farm’s ability to supply customer requirements, the cost of so doing, and the likely financial outcome.

 At this point it is possible to set down the final list of customers to be supplied, the products to be supplied and their specifications. The marketing plan then becomes a statement of quantities to be sold to each customer, likely price, costs, and resulting profit.

 If the producer wants to try something newer then risks are likely to go up.
Market research and analysis therefore needs to be more rigorous. It should start with a review of consumer trends to confirm that there is a demand for the product in question,
and if possible how big the demand might be. This should be followed by analysis of customers to whom the product could be sold, whether direct to the consumer or to an intermediate customer. If the plan is to sell a product which is ready for the consumer to use, it will be important to understand what competitive products are available, as the
farmer will need to offer something which is sufficiently different and better than what is currently available to make the consumer change their buying habits.

 Farm resources necessary to introduce the new idea and accompanying costs will also
need to be analysed in detail, and particular attention given to the impact of the new
venture on the existing business. 

Armed with all this information it should be possible to specify details of the new product, the customers to whom it will be sold, and the particular benefits it will offer.

 Those farmers planning to market a ready to use product will need to decide the price at which they will sell it, both to the end consumer and any intermediary, and identify how they will communicate with customers to let them  know the product is available whether through flyers, posters, a web site, or publicity in the press.  

Some confirmatory research of the final product with target customers also helps reduce risk. 

The last task is to prepare a detailed marketing plan for the next three years outlining expected turnover for the total business, all costs, and resulting profit and cash flow position. 

Over the last several months Farmers Guardian has featured articles which give an in
depth look at each marketing topic described in the framework. Those farmers wishing

to explore a particular aspect in more detail might want to turn to these.