Explorative market research on a family farm business in Switzerland How can a family farm business effectively implement a marketing strategy in order to be profitable and grow in the meat industry in Switzerland? Bachelor Project submitted for the degree of Bachelor of Science HES in International Business Management by Jenny WEBER Bachelor Project Mentor: Dr. Timothy Connerton Geneva, 21th of August 2020 Haute école de gestion de Genève (HEG-GE) International Business Management Disclaimer This report is submitted as part of the final examination requirements of the Haute école de gestion de Genève, for the Bachelor of Science HES-SO in International Business Management. The use of any conclusions or recommendations made in or based upon this report, with no prejudice to their value, engages the responsibility neither of the author, nor the author’s mentor, nor the jury members nor the HEG or any of its employees. Geneva, August 21st, 2020 Jenny Weber Explorative market research on a family farm business in Switzerland Jenny WEBER i Acknowledgements The realization of this bachelor thesis was made possible thanks to the assistance of several people to whom I would like to express my gratitude. First and foremost, I would like to express my sincere gratitude to Dr. Timothy Connerton, for being such an inspiring and encouraging project supervisor. I would also thank him for his constant availability, his guidance all along this research and above all his judicious advices and insights, without which this project would not have been possible. I would like to extend my deepest gratitude to Laura Moser-Weber, the farm manager of La Ferme du Château-Blanc and Jean Weber, the owner of La Ferme du Château-Blanc for their unlimited availability of time and their precious collaboration. I would also thank them for their valuable advices and for always being supportive to my work. My sincere gratitude to Charlotte Nuber, who, since the beginning, proof read my work, supported me and demonstrated enthusiasm towards my work. Also, a particular thanks to Nathalie Weber who proof read the analytical parts of my primary data analysis and always encouraged me throughout the writing of the bachelor thesis. Many thanks to all the survey and interview respondents who took time for my research, highly enhanced the quality of my statements and enabled the accomplishment of this research paper. Finally, I would like to give special thanks to William Schick, Maëla Welti and my family for always encouraging and supporting me throughout the writing of this thesis. They have always pushed me to go beyond my limits and give the best of myself. Thanks to them, without whom this thesis would not be what it is. Explorative market research on a family farm business in Switzerland Jenny WEBER ii Executive Summary On average, three farms disappear every day in Switzerland. Small-scaled farms are the most affected by this downturn (Conrad Widmer, 2019). However, larger farms (over 50 ha) have increased. The consequence of this trend is that larger farms represent now a bigger share in Switzerland farming market, at the expense of smaller farms. How can small farms survive in this fast changing and complex environment? Implementing effective differentiation and marketing strategies are key factors to success and to the survival of small farms. La Ferme du Château-Blanc is a family farm located in Gingins and is currently facing a challenging situation regarding its meat production. The general decrease in meat consumption as well as consumers changes in consumption habits are factors that directly impact the farming industry. In addition, with the recent takeover of the farm by the owner’s daughter, neither accurate differentiation nor marketing strategy are put in place. This research aimed at answering the following question; how can family farms implement effective marketing strategy in order to be profitable in the long-term and grow in the meat industry in Switzerland? The research suggests viable and sustainable recommendations for La Ferme du Château-Blanc in order to be profitable in the long-term and create value in the market place. Thanks to surveys and in-depth personal interviews, the research highlighted the fact that consumers are seeking to eat more local and healthier products. Quality, origin and proximity are the most important criteria in people’s decision to directly buy at the farmers’ place. Moreover, the research identified that consumers are willing to experience agritourism activities on farms and that demand for such events exists. La Ferme du Château-Blanc already sells some of its beef production directly to customers. In order to expand and diversify its business, the farm should develop agritourism events and open a store on the farm. By collaborating with local producers, the farm can enlarge its product offering and satisfy customers’ expectations. Besides, the farm location enables the organization of activities and events on the farm. Brunches, cooking classes and educational workshop are the main activities La Ferme du Château- Blanc should focus on and base part of its differentiation strategy. Emphasis will be placed on communication about the farm's constant research to improve meat quality, but also on transparency towards customers. In addition, building trust and solid relationship with customers will be key components of the farm’s success. Finally, this model could also be a source of inspiration for other family farms. Explorative market research on a family farm business in Switzerland Jenny WEBER iii Contents Explorative market research on a family farm business in Switzerland .................. 1 How can a family farm business effectively implement a marketing strategy in order to be profitable and grow in the meat industry in Switzerland? ..................... 1 Disclaimer ......................................................................................................................... i Acknowledgements ........................................................................................................ ii Executive Summary ....................................................................................................... iii Contents .......................................................................................................................... iv List of Tables ................................................................................................................ viii List of Figures ............................................................................................................... viii Abbreviations & Acronyms ............................................................................................ x 1. Introduction ............................................................................................................ 12 1.1 Motivation ................................................................................................... 12 1.2 Agricultural Overview ................................................................................ 13 1.2.1 International Agriculture.................................................................... 13 1.2.2 Swiss Agriculture .............................................................................. 14 1.3 Problem Statement & Research Question .............................................. 22 1.3.1 Research Objectives ........................................................................ 23 1.3.2 Expected Outcomes ......................................................................... 24 2. Case Study - La Ferme du Château-Blanc .......................................................... 25 2.1 Firm’s History ............................................................................................. 25 2.2 Firm’s Capabilities & Resources .............................................................. 27 2.2.1 Tangible Resources .......................................................................... 27 2.2.2 Intangibles Resources ...................................................................... 28 2.3 The Firm’s Beef Production ...................................................................... 30 2.3.1 Livestock Management ..................................................................... 30 2.3.2 Births ................................................................................................. 32 2.3.3 Production Process .......................................................................... 32 2.3.4 Fodder Method ................................................................................. 34 Explorative market research on a family farm business in Switzerland Jenny WEBER iv 2.4 Regulations & Controls ............................................................................ 36 2.4.1 Controls ............................................................................................ 36 2.4.2 Animal protection & Certification Labels .......................................... 37 2.5 Firm’s Competitors .................................................................................... 39 2.5.1 Map of Competitors .......................................................................... 40 2.5.2 Direct Competitors............................................................................ 40 2.5.3 Indirect Competitors ......................................................................... 43 3. Literature Review ..................................................................................................