Market Research Tim Johnson ATTRA Program Specialist.

Market ResearchMarket Research

Tim JohnsonTim Johnson

ATTRA Program SpecialistATTRA Program Specialist

ATTRA – National Sustainable Agriculture Information Service

P.O. Box 3657Fayetteville, AR 72702

1-800-346-9140 (English)1-800-411-3222 (Espanol)

http://attra.ncat.org


Knowledge is power. - Sir Francis Bacon

Take Home Message:

Gathering information about your market is critical to your company’s success


Market Research Market Research lets you discover lets you discover how your how your company actually company actually meets, exceeds or meets, exceeds or falls short of falls short of customers’ customers’ expectations. (Big expectations. (Big Trap)Trap)

Market Research can also identify Market Research can also identify competitive threats and competitive threats and opportunitiesopportunities



Two categoriesTwo categories Primary market researchPrimary market research

Based on data collected from your Based on data collected from your customers, competitors, employees, and customers, competitors, employees, and supplierssuppliers

Secondary market researchSecondary market research Based on data collected from industry Based on data collected from industry

studies, books, research, and other studies, books, research, and other published sources.published sources.Experience is the name everyone

gives to their mistakes - Oscar Wilde

Customer CharacteristicsCustomer Characteristics

Four Essential Four Essential CharacteristicsCharacteristics

They have a needThey have a need Resources to buy Resources to buy

what you are what you are sellingselling

Decision making Decision making powerpower

Easy access to Easy access to product or serviceproduct or service

Secondary ResearchSecondary Research

Identify a Identify a Customer ProfileCustomer Profile DemographicsDemographics

Who buysWho buys Where do they live, Where do they live,

level of home level of home ownershipownership

IncomeIncome AgeAge RaceRace Marital StatusMarital Status EducationEducation


Secondary information already existsSecondary information already exists Efforts spent locating and gatheringEfforts spent locating and gathering Most info is available from various Most info is available from various

government agencies, local libraries, and government agencies, local libraries, and the internet.the internet.

North Carolina District Office6302 Fairview Road, Suite 300Charlotte, NC 28210(704) 344-6563 Phone | (704) 344-6769 Fax


Rowan County, NCRowan County, NC 19% growth last decade, total 19% growth last decade, total

population 131,825population 131,825 70% residents own their homes, 70% residents own their homes,

median age is 36.6median age is 36.6 >50% of households make >50% of households make

>$35K>$35K $38,261 is median income$38,261 is median income 41% white collar jobs41% white collar jobs Freightliner, Schools, Food LionFreightliner, Schools, Food Lion


Charlotte, NCCharlotte, NC 2626thth largest city in largest city in

U.S.U.S. 594,176 people in 594,176 people in

city, 1.4 million in city, 1.4 million in metro areametro area

Ave. household Ave. household effective buying effective buying income $58,862income $58,862

63% of households 63% of households have EBI > $35Khave EBI > $35K

Primary ResearchPrimary Research

The information The information probably does not existprobably does not exist Conduct surveys Conduct surveys QuestionnairesQuestionnaires Focus GroupsFocus Groups InterviewsInterviews First hand observationFirst hand observation

Ask your current Ask your current customerscustomers

Observe customers in Observe customers in retail establishmentsretail establishments

Research OutcomeResearch Outcome

Increased Understanding of …Increased Understanding of … Identified customer needs and wantsIdentified customer needs and wants Determine if product meets the customers Determine if product meets the customers

needsneeds Identifies potential target marketsIdentifies potential target markets Determines the best advertising techniqueDetermines the best advertising technique

In the business world, the rearview mirror is always clearer than the windshield. - Warren Buffett

BenefitsBenefits

Guides Guides communicationcommunication

Identifies Identifies opportunitiesopportunities

Minimizes riskMinimizes risk Identifies potential Identifies potential

problemsproblems Provides Provides

benchmarksbenchmarks


Market Research is also a continual Market Research is also a continual process, conducting research for the process, conducting research for the business plan is not enough.business plan is not enough.

You’ll have to do it again, and again, You’ll have to do it again, and again, and again, to stay attuned to your and again, to stay attuned to your customers needs and address the customers needs and address the customer characteristics you have customer characteristics you have identified as a target market.identified as a target market.


It is worth it?It is worth it? 84% of those who 84% of those who

used it said yesused it said yes 58% said yes to 58% said yes to

identifying new identifying new opportunitiesopportunities

Can you really afford Can you really afford not to?not to?

Case StudiesCase Studies

Tallgrass Prairie Producers Co-opTallgrass Prairie Producers Co-op Ten families in KansasTen families in Kansas Marketed grass-fed beef for 5 yearsMarketed grass-fed beef for 5 years Process verified, nutritional testingProcess verified, nutritional testing Won national attention for their Won national attention for their

productsproducts Conducted market analysis, had a Conducted market analysis, had a

detailed business plan.detailed business plan.

Case StudiesCase Studies Tallgrass Prairie Producers Co-opTallgrass Prairie Producers Co-op

Management of Co-op took too much time away Management of Co-op took too much time away from what they really wanted to do… run the from what they really wanted to do… run the farmfarm

Niche marketing may not be all that it appearsNiche marketing may not be all that it appears Expertise in marketing and management neededExpertise in marketing and management needed Price and convenience really do matterPrice and convenience really do matter Natural foods? –many contradictionsNatural foods? –many contradictions How much education of consumers can you How much education of consumers can you

afford?afford? Quality of life and sustainability on personal levelQuality of life and sustainability on personal level


Fresh Air PorkFresh Air Pork Group of producers in Northeast IowaGroup of producers in Northeast Iowa Started in 1999, closed in 2002Started in 1999, closed in 2002 Marketed hogs that met the Niman Marketed hogs that met the Niman

Ranch criteria of no antibiotics, and Ranch criteria of no antibiotics, and Animal Welfare Institute certifiedAnimal Welfare Institute certified

Worked with experts in direct meat Worked with experts in direct meat marketingmarketing

Target market-local sales, health food Target market-local sales, health food stores, and institutional buyingstores, and institutional buying


Fresh Air PorkFresh Air Pork Success w/ two health food stores and Success w/ two health food stores and

locallylocally Never sold any product to an Never sold any product to an

institutioninstitution Could not sell the value cuts – loins, Could not sell the value cuts – loins,

hamshams Complex nature of meat businessComplex nature of meat business

Asset : developed relationship with Asset : developed relationship with professionalsprofessionals


Knowledge is power. - Sir Francis Bacon

Take Home Message:

Gathering information about your market is critical to your company’s success

www.ozarkpasturebeef.com

Market Research Tim Johnson ATTRA Program Specialist.

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