“Marketing For Profits: Tools For Success”

BUSINESS ASSESSMENT COURSE #15 MANAGING DATABASES “DRUDGERY THAT PAYS WELL”

Created by: Laura Biasillo, Cornell Cooperative Extension Broome County

Bio Laura Biasillo is an Agricultural Economic Development Specialist with Cornell Cooperative Extension in Broome County, in Binghamton NY. Laura has been in this position since 2007, and her educational and program responsibilities focus on increasing marketing channels for farmers, creating education programs focused on new marketing skills and technologies, and facilitating farmland protection and agricultural development initiatives in the county.

Contact Information Email: [email protected]

Course Summary Once you have successfully built, executed, and reviewed your marketing plan, you will need methods to find and update data so that your plan becomes a “living” document that evolves along with your business. It is more than just “being organized,” it is building a system of marketing that uses the most reliable data in the most effective and efficient manner available. It may mean “bookmarking” critical census or industry pages on your computer; or reserving one night a month to update your e-mail lists; or creating time to pay attention to social media outlets, or even deciding to employ some outside help to care for this aspect of business.

Prioritizing information is the most difficult part of running any business because there is so much of it out there. This course will help you identify what data is most important – and how to manage it.

Course Outline I) How Far We’ve Come: Marketing For Profit Journey II) What Do I Do With This Information? III) How Do I Evaluate Its Usefulness?

What You Will Gain  What type of data your business should collect, and how to maintain it  The basic data needed for business and marketing plans  Tips for successful ongoing marketing and promotions  Where you can go for additional help along the way! I) Marketing for Profit Journey 1) What We’ve Learned Over the last 3 years, the Marketing for Profit webinar series has taught us: • What data to collect • How to find the data to collect on our customers and our competition • How to conduct a SWOT analysis • How to create and maintain spreadsheets to track all the data we have collected • And valuable marketing and promotional skills.

2) Dealing with Data: Information Overload! At this point, we recognize that we are all operating on information overload. In other words, information is coming to us from everywhere. How do we filter this information and determine what is important. The goal of the data is to get you better access to your customers and fulfill their wants and needs.

A) You should be collecting the following types of information: • Customer contact information • The types of products your customers are buying and what else they want • What products are selling vs sitting on the shelf • What customers are asking for • Are your sales steady throughout the year or are there ebb and flows • What is your competition doing • Do you have any loss leaders vs. profit centers • What are your biggest costs

B) How should you be collecting the information: • In person – through conversations with your customers • On line – social media, website • Surveys – online or in person • Word of mouth (listening to what is being said)

C) How should you be maintaining the information: Store the information in a spreadsheet that will help you make year to year comparisons and recognize trends in production and sales. Collect the information throughout the season, but no less frequently than annually.

3) SWOT (Strengths, Weaknesses, Opportunities, Threats SWOT analysis is a process for identifying and analyzing the internal and external factors that can have an impact on your business. You should perform a SWOT for your farm and products, your community and your competition. This will help you position your business and where it fits within the community, with your customer, and with your competition.

A CLOSER LOOK AT THE “SWOT” Strengths - internal attributes/resources that support a successful outcome Weaknesses - internal attributes/resources that work against a successful outcome. Opportunities - external factors you can capitalize on or use to your advantage Threats - external factors that could jeopardize your goals

Herb Mix Fresh basil, oregano and thyme for an “Italian” theme night! Rosemary, lemon balm, and lavender for a “baker’s special”

. A CLOSER LOOK AT THE “SWOT” Strengths - internal attributes/resources that support a successful outcome Weaknesses - internal attributes/resources that work against a successful outcome. Opportunities - external factors you can capitalize on or use to your advantage Threats - external factors that could jeopardize your goals

Herb Mix Fresh basil, oregano and thyme for an “Italian” theme night! Rosemary, lemon balm, and lavender for a “baker’s special”

Ultimately you want to be able to identify your weaknesses and turn them into opportunities. A great way to do this is by creating a perceptual map. This will help you understand where you fit in with your customers and against your competition, allowing you to make the necessary adjustments to bring customer perceptions of your. business in line with the image you want your customers to have of you.

First, choose two attributes you want to measure – and then select each attribute’s opposite. Let’s say you’re a CSA, and you want to analyze if you’re perceived as generous. The opposite attribute would be stingy. Then, the other attribute you’re interested in is if people think you use some organic practices: the opposite is conventional.

Next, put yourself on the perceptual map. If you feel that you’re generous but the “word on the street” is that you are a little stingy with what you give them. Then you would need implement tactics to change where you fall on the perceptual map. Remember, this is all about how customers view you – and marketing can help you change that perception!

Finally, put in where your competition falls on the map. If you notice that most farms are clustered on the “organic” end of the spectrum, you might actually want to consider being known as the conventional farming provider. This would require that you educate your customers about the benefits of conventional farming: it saves time and money for the farmer, and they could pass along the savings to you. In addition, if you utilize SOME organic practices, you can point that out to your customers. They may also not be aware of just how careful you are with growing your produce and that you use many similar practices required by organic regulations.

GROW BY EXAMPLE SWOT + PERCEPTUAL MAP FOR A CSA

GENEROUS Now, let’s look at the perceptual map and interpret it using “threats” and “weaknesses.”

THREAT: Your farm grows conventionally, but your primary competitors grow organics. You could turn that COMPETITOR A into an OPPORTUNITY by educating your customers on the fact that you don’t use harsh pesticides and that you follow many of the same practices as the organic farmer. COMPETITOR B However, because you did not have to pay thousands of dollars to meet rigorous organic criteria, you are able to CONVENTIONAL ORGANIC keep your costs lower for your customers. COMPETITOR C WEAKNESS: Your customer has a perception that you are stingy because your share sizes are smaller than your YOUR FARM primary competitor. Again, you can educate your customer and break down the cost of each item for them to show them that in fact, they are getting a good deal with each share. You can also emphasize that the share sizes are built around average consumption. The customer can always “addSTINGY on” more produce at pick up. 4) Spreadsheets Spreadsheets will help you track all the data you have collected. You can use the spreadsheets to spot trends and to make informed business decisions on production, sales and marketing. There are minimally 4 types of spreadsheets you should maintain: • Customer database with contact information and all other information you collect from them • Planting/livestock information • Sales data; both gross sales information as well as what was taken to market versus what was brought back • Budgets; production and marketing

These spreadsheets need to be updated on a regular basis, best if done weekly. They can be electronic or paper, but electronic spreadsheets are easier to manipulate the data and spot trends, weaknesses and opportunities. But ultimately you must find the system that works best for you, whether an excel spreadsheet, or notebook with hand written charts.

5) Marketing & Promotions Marketing is NOT trying to get anybody to buy whatever you have. You must identify your target audience and tailor your products and marketing toward that target. There are 4 main types of consumers: 1. Foodie/locavore 2. Price conscious 3. Motivated by social causes 4. Ethnic or religious motivations

Determine which customer type fits your products and personality, then focus your promotional efforts on that target. Understand the importance of branding and maintaining that brand through everything you do – logo, color, font, messaging, etc. It helps maintain your identity in the eyes of your customers.

Be sure that your marketing efforts are professional. It doesn’t mean it can’t be a folksy format, but it must be professional as those efforts are a reflection of your business.

Promotions are not always the best way to build awareness of your product. Instead, determine which type of advertising and promotion best fits your product and your customer and will get you the biggest bang for your buck. But measure that against your time and skill level. Promotions must be ongoing to be effective so if you are reaching beyond your time and/or skills you may not be able to maintain an ongoing campaign.

II) What Do I Do with All the Information I’ve Gathered? We’ve covered how to manage all of the information that we’ve gathered through SWOT, surveying, and marketing practices. The next step is inputting this information into a business plan and a marketing plan, then implementing those plans. In the final section, we’ll review how to evaluate the effectiveness of these systems we’ve put into place!

1) The Business Plan The business plan is a roadmap that provides the detail on how you will achieve your business goals. You can use this business plan template for launching an entirely new business, or creating a new “arm” of your existing business – such as a CSA or farmstand. There are basic sections in every business plan:  What do you have to sell?  How will you sell it?  Market Analysis  Customer Analysis  Financial Projections

You will use all of this information to answer basic business questions, such as: • What do your customers want? • Will they pay enough for the product for it to be profitable for you? • Where and how will I sell the product? • When can I get started? (if you’re already established, ignore this question)

By creating a business plan, you have established a roadmap on how you will achieve your goals. It will help you understand the realities and the financial implications and steer you to making your business a success. We create a business plan using the data we have collected. People-watching is another method that is helpful. Go to a farmers market or a competitor’s business and watch people – what are they buying, how much are they buying, what are they paying for product, what is their reaction to their purchasing and general demeanor?

Finally, use a reality check. Does the project/product/business fit with your other life priorities and goals. For example, if you and your family plan to travel during the summer months, is it realistic to build a new vegetable farm? Probably not. Think also about the other people in your life, as your decisions will impact them as well.

2) The Marketing Plan A marketing plan spells out your marketing and promotions plans for your business, including the goals you want your marketing to achieve. Your marketing plan will drive your business plan. It should include the following sections:

 Objectives – including your target customer and the products you plan to sell  Research – is there enough of an audience, who will pay enough for a profit, for the product you intend to sell  Competition – who are they and how do they compare to your business. Is there enough of a market share remaining to make you successful  Communication – how will you reach your audience – includes all signage, marketing materials, advertisements and promotions

Once completed you will need to update your plan on a regular basis. Your maintenance should focus on your target customers, competitors and the changes in the marketplace over time. Again, perform a reality check against your time, resources and skills. If necessary, find someone to help you perform your marketing plans to achieve your goals.

3) Implementation Ultimately, the business and marketing plans are just plans – you must implement them to make them truly work for you! Look for common points and use them to create both long term and short term goals. Once established, write them down. This makes them real for you and more likely to be realized. And use your down time to work toward accomplishing those goals. This will help you keep the momentum going. It’s also important to prioritize your goals. You can prioritize by money or resources needed; time commitment required; outside forces or any combination. Look at who will perform each task (goal), what resources they need and when they should accomplish each objective.

III) How Do I Evaluate the Usefulness of the Systems in Place? You should take the time to evaluate whether you are achieving your goals. The evaluation does not need to be complicated. It can be as simple as an audit of your marketing materials. Take a look at your marketing materials, your farm stand, etc. from a customer point of view. For example, do a drive by of your farm stand or a walk by of your market stand. Then, look at these items from the customer’s point of view: • Does it draw your attention? Is it inviting? • Is there good signage? • Is there a memorable logo? • When entering the farm stand or approaching the market table, does the experience match the impression customers have of you?

Use this information to make adjustments to improve your customers’ impressions and ensure they are having the best possible experience with your business. You will use your business and marketing plan goals to assess your success. Determine how you are measuring your success as defined by your plan goals:

• Increased sales • Increased numbers of customers • Improved strategies • Increased efficiencies • Increase marketing channels used

Does your evaluation show that you achieved your goals? If not, what changes can you implement to help you get there?

Your business and marketing plans are living documents. They should be updated on an ongoing basis and brought down off the shelf to help you make your business decisions. These plans can help you be more profitable, but only if they are used!

If you don’t feel comfortable preparing these documents yourself, there are resources to help you:

• Most communities have a Small Business Development Center. Often they will help you prepare these documents without cost • Cooperative Extension offices frequently have an Ag Economic Development Specialist who is trained to assist farmers with these types of plans • Trade organizations may be able to help you; maybe with assistance in preparing your documents, but more likely in providing you information you need for your plans • Community colleges and universities can be of assistance too. They may have an internship program where you can get a student to help you or you might find a professor who will want to use your business as a class project to help teach business and marketing planning to his students • Local marketing firms can also help. They may be low cost assistance or they may be able to point you to other local resources and internship programs. MARKETING FOR PROFIT: TOOLS FOR SUCCESS CLOSING THOUGHTS

Congratulations! You have now explored the entire Marketing for Profit: Tools for Success workbook! The key to making the most of this toolkit is to apply what you have learned to your agribusiness. It’s one thing to master the concepts presented in this booklet, but true mastery comes from putting them into practice – and watching your profits increase!

It’s also important to recognize that just like farming, marketing has basic principles and best practices that stand the test of time. An example would be the marketing concept of branding: having a memorable, unique logo is as essential today as it was hundreds of years ago, and will be into the future. At the same time, you will want to stay informed of trends and emerging technology that will impact your marketing activities.

TIPS FOR STAYING ON TOP OF MARKETING TRENDS

1) READ INDUSTRY PUBLICATIONS Marketing and advertising publications are an excellent resource of the latest trends in marketing. Many can be accessed online, and others can be viewed at your local library. A few industry leading publications include: Advertising Age, Ad Week, Target Marketing, and Direct Marketing News. These publications also have online versions as well with some content available for free, and other content accessible by subscription.

2) TALK TO YOUR CUSTOMERS Ensure that you are marketing your products using the media that your customers are using. If more and more customers are using their smart phones to communicate, ask them if they would prefer being contacted through text messaging. Trends that catch on with your customers, are the most important trends to you!

3) ATTEND CONFERENCES AND MEET UPS There is no substitute for face-to-face collaboration with others who are striving to stay on top of what’s new in the marketing world. You can utilize the online networking platform, LinkedIn, to search for local marketing groups. Or, you could set up one yourself.

A final thought: Don’t be afraid to try new marketing strategies as they emerge and evolve. Use the assessments provided in this toolkit to gauge how well they’re working. You’ll find that as you experience success after implementing a new marketing tactic, your confidence will increase. It’s like a ripple effect, and it becomes exponentially easier to put a marketing concept into action. The result of constant and carefully planned marketing is an agribusiness that better serves your community – and meets your goals for success… whatever they may be!