Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
But Do You Know Your Customer?
Rick VanVrankenRutgers Cooperative Extension-Atlantic County
6260 Old Harding Hwy.Mays Landing, NJ 08330
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Marketing your Produce?Producing for your Market?
Marketing 101
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
If I grow it, they will come!
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
#1 Rule in Marketing
❖ Give your customerswhat they want!
✓Grow the right crop✓Harvest at correct stage✓Package appropriately✓Avoid costly mistakes✓Keep the buyer happy!
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
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.
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Know your Market
BEFORE
you Pick a Peck of Hot Peppers
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
What do ‘they’ want?
Some like them hot,
some like them hotter, …Scotch bonnet/habanero
Jalapeno, Cayenne
Pablano, Anaheim
Thai
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
…but some like them mild!
Have you asked?
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
0123456789
1=
no
cra
cks
, 10
=se
vere
cra
ckin
g
Mean Fruit Checking Severity of Jalapeno Varieties on Three Harvest Dates
2-Aug
17-Aug
7-Sep
0
0.5
1
1.5
2
2.5
3
3.5
mg/ml
Total Capsaicinoids in Mature & Immature Jalapeno Pepper Cultivars
Immature
Mature
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Ethnic Greens - Past(?)
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Ethnic Greens - Present(?)
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Ethnic Greens - Present(?) Chinese
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Ethnic Greens - Future(?)West African
❖ Jute
❖ Sweetpotato
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
worldcrops.orgrelaunched early 2016
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Know your customersWhy?
Grow the right crop
Harvest at correct stage
Package appropriately for the consumer
Avoid costly mistakes
Keep your buyers happy!
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
The Food Chain from Farm to Plate
Farmer Cooperative
Retail Store/
RestaurantProcessor
Broker/Buyer/Shipper
Direct MarketFarm Market
Tailgate
CSA
Mail Order/I-net
Consumer
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic CountyUsed with permission from Roberta Cook. 2016. The Dynamic US Fresh Produce Industry.
UC Davis Postharvest Technology Short Course. Ag & Resource Econ, UC Davis.
42%
57%
<1.5%
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic CountyUsed with permission from Roberta Cook. 2016. The Dynamic US Fresh Produce Industry.
UC Davis Postharvest Technology Short Course. Ag & Resource Econ, UC Davis.
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Know Your Market
❖Market channels
Retail/Direct
Wholesale
Fresh whole
Fresh cut processed
Food Service
Restaurants
Institutions
❖Market organization
WholesaleDirect – farm to store
Cooperative (Food Hub?)
(Grower)-Buyer-Shipper
Broker
Packer/Processor
RetailOn-farm store
Community Farmers’ Markets
Internet/Mail Order
CSA/Farm dinners/Agritourism
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Know Your Market
❖Market tools
Analysis
Find Your Customer
Target
Draw in Your Customer
Subscription (CSA)
Clubs
Coupons
Promotional Events
Retain
Keep Your Customer
❖Market techniques
Selling
Advertising
Merchandising
Placement
Layout
Displays
Communications
Newsletters, email, social media, …
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
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 & Gardening magazines TV & Radio
❖ Secondary Research
US Census
National MarketMaker Find farmers markets,
wholesalers & retailers
Pay for a market analysis? Private Extension County or Municipal
Planning/Economic Development office
Better Business Bureau
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
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?
❖ Wholesale buyers 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?
What price range would they expect to pay?
Will they pay a premium for local, organic, IPM and how much?
Distribution of East Coast Ethnic Populations
Percentage by State
Source: US Census 2000
NY
NY
NY
NJ
PA
NY
NJ
NJ
NJ
PA
PA
MD
MD MA
MA
MA CT
VA
NC GA
FL
FL
FL
0% 20% 40% 60% 80% 100%
Chinese
884748 48%
Asian Indian
812576 106%
Mexican
1549761 53%
Puerto Rican
2718495 25%
Eth
nic
Gro
up,
Siz
e &
% G
row
th 1
990 t
o 2
000
% of Total East Coast Ethnic Population in each State
NY
NJ
PA
DE
MD
DC
ME
NH
VT
MA
RI
CT
VA
NC
SC
GA
FL
Distribution of the Northeast’s Ethnic Populations Based on Richard VanVranken/Food Policy Institute, Rutgers University
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
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Asian Indian
1895452, 35%
Chinese
2106202, 29%
Filipino
640030, 27%
Japanese
163464, -5%
Korean
739428, 22%
Vietnamese
349454, 23%
Mexican
2109372, 49%
Puerto Rican
5030220, 16%
Cuban
423070, 16%
% of Total Northeast Ethnic Population in each State
Eth
nic
Gro
up
, S
ize
& %
Gro
wth
20
00
to
20
10 CT
DE
DC
ME
MD
MA
NH
NJ
NY
PA
RI
VT
WV
Data: US Census 2010 and 2000. Graph prepared by Y. Han
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Census Data RevealMarket Opportunities
What kind of <fill in the
blank> should I grow?
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Consumer preferences
❖AsianChinese
Crucifers, Cucurbits, cilantro
Asian IndianEggplant, Cucurbits, mustard, fenugreek leaf (methi)
❖HispanicPuerto Rican
Batata, Peppers (sweet), Calabaza, cilantro
MexicanPeppers (hot), cilantro
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Weekly Purchases of Ethnic Produce
by Ethnic Consumer Groups on the East CoastSource: Govindasamy et al.
Tutum
a Squ
ash
Verdola
ga (P
ursla
ne)
Mala
bar S
pinac
hPeri
llaBas
il
Chile
Cari
be (Y
ellow
Pep
per)
Amara
nth
Anahe
im P
eppe
r
Whit
e Pum
pkin
Fava
Bea
ns
Chili S
erran
o
Mint
Leav
es
Edamam
e
Chili P
oblan
o
Ridge
Gou
rd/Luff
a
Cluste
r Bea
ns
Smoo
th Lu
ffa
Snow P
eas
Ají Dulc
e Swee
t Pep
per
Bottle
Gou
rd
Fenu
greek
Leav
es
Tomati
llo
Spinac
h
Sweet p
otato
Zuch
inni
Mus
tard
Baby P
ak C
hoy
Calab
aza
Napa C
abba
ge
Chili J
alap
eno
Pak C
hoy
Pepini
llo/B
itter M
elon
Cilantro
Eggpla
nt
INDIAN
CHINESE
MEXICAN
PUERTO RICAN
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Eggplants
Japanese
ThaiIndian (Brinjal)
Grown on >3400 farms, up >560 over 2007, but acreage down 17%
NJ, CA & NY leading producers
84% production worldwide from India & China
Iowa State’s Ag Marketing Resource Center Eggplant Profile (7/2014) African
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
NJ & Cooperatives
❖ Marketing Value-added product development
Co-op Branded produce & value-added lines
Single sales location
Post-harvest services Vacuum, Forced-air, Hydro Cooling
Refrigerated Storage
Ice Production
Promotion and Advertising
Value-added, branding products & packaging
❖ ServicesTransplant production
Financing/Banking
Production & Packaging Supplies
Buyer accommodations
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Roadside/On-farm Farm Market
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Community Tailgate Farmers’ Market
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Community Supported Agriculture
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Farm Dinners/Events(Agritourism – Experiential Marketing)
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Know your customers –Reach your customers
Marketing Campaign❖ Communicate = ADVERTISE
Word of Mouth Classified Ads Newspaper Ads Radio Television $$$
Post cards Newsletters Signs – on site or off Packaging and Display
Email Website Blogging (micro-blogging) Social Media
Market Analysis ❖ Ask questions
Surveys In-person Coupons
❖ Visit the community Markets Trade shows Events
❖ Read about them and what they read Trade publications Food magazines
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Guerilla Marketing Down on the Farm
❖ “Matty Matarazzo, … master of using the media to gain free publicity.”-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.-from Marketing for Success by Robert
“Matty” Matarazzo
❖ GrowingProduce.com
> VanVranken
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Selling “Sustainability”
❖ Economics –
“Get the economics right or you can’t take care of the environment or social issues!”
❖ Environment
Soil, water, pest control…
Organic ≠ Sustainable
…but be honest – NO GREENWASHING!
Explain IPM, etc.
Packaging – Reduce inputs, reduce waste
❖ Social – tell your story
“Mindful” Sourcing
Community involvement
Employee treatment
Experience
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
Selling “Sustainability”
❖ Economics –
Clever renaming/packaging increases income
Value-added products
❖ Environment
Reduce trash stream
Recycle/compost
❖ Social – tell your story
Donate to food/feeding programs
Innovative Waste Reduction
Rick VanVranken, Agricultural Agent
Cooperative Extension of Atlantic County
#1 Rule in Marketing?
❖The customer is always right!
Grow the right crop
Harvest at correct stage
Package appropriately for the customer/consumer
Avoid costly mistakes
Keep the buyer happy!
❖So you can build/grow it and they will come …
… and buy!
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