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The Specialty Cheese Market

The Specialty Cheese Market

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Published by: CAPRINOS BAJA CALIFORNIA SUR, MEXICO on May 23, 2013
Copyright:Attribution Non-commercial

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The Specialty Cheese Market
PREPARED FOR:
THE NORTH CENTRAL INITIATIVE FOR SMALL FARM PROFITABILITY
A U.S.D.A.—FUNDED PROJECT
PREPARED BY:
FOOD PROCESSING CENTER INSTITUTE OF AGRICULTURE AND NATURAL RESOURCESUNIVERSITY OF NEBRASKA – LINCOLN
143 FILLEY HALL, EAST CAMPUSLINCOLN, NE 68583-0928PHONE: 402/472-2832FAX: 402/472-8831
OCTOBER 2001
 
Table of Contents
Introduction........................................................................................................................................3Executive Summary...........................................................................................................................41.0 The Cheese Industry....................................................................................................................62.0 Specialty Cheese..........................................................................................................................92.1 Specialty Cheese—Market Overview..........................................................................................92.2 Specialty Cheese—Retail Growth.............................................................................................112.3 Specialty Cheese—Foodservice Growth and Promotion...........................................................132.4 Specialty Cheese—Education....................................................................................................142.5 Innovative Production Ideas......................................................................................................163.0 The Marketing Mix and The Four P’s of Specialty Cheese.......................................................173.1 Product.......................................................................................................................................193.2 Promotion...................................................................................................................................233.3 Place...........................................................................................................................................273.4 Price...........................................................................................................................................304.0 Niche Markets............................................................................................................................344.1 Ethnic Cheese Market................................................................................................................344.2 Farmstead Cheese Market..........................................................................................................395.0 Conclusions................................................................................................................................426.0 Appendix....................................................................................................................................446.1 The Retail Grocery Industry—Margins and Product Introduction............................................446.2 Foodservice Industry–Product Introduction and Distribution...................................................466.3 Pricing Strategies.......................................................................................................................486.4 Food Brokers..............................................................................................................................496.5 Glossary of Popular Cheeses.....................................................................................................536.6 Contacts/Links...........................................................................................................................612
 
Introduction
This report is intended to be an overview of the specialty cheese market and the marketing of its products. The report also attempts to uncover some of the opportunities and barriers associatedwith entering the specialty cheese market. The report begins with a discussion of the recentfoodservice and retail industry trends, as well as the way the industry is continuing to promote andexpand the specialty cheese market.The report then turns its focus to what will be identified as the “Four P’s” of specialty cheese.This section is intended to assist individuals, farmers, small and mid-size producers and potential business owners, and others with an overview of the “marketing mix” and some of the necessarystrategies to market their products. The section on the “Four P’s” is not intended as a “one size fitsall marketing plan” but rather as a way to understand alternative markets (such as specialtycheese), and their function, structure, participants, and distribution channels. Although many of the marketing tasks (identifying a product, selecting and monitoring a channel of distribution, anddeveloping a promotional and pricing strategy) a business owner has to face may seemoverwhelming, its presentation is necessary in order to understand the nature of each task and howtheir structure leads to the success or failure of a product. Small producer-owned businesses needto be aware of these marketing tasks, and consequently take on as many as possible, to ensure thesuccess of their business. As a small beginning specialty cheese business enterprise, owners areoften required to wear many hats. This means that these small business owners have theresponsibility for multiple business and marketing functions such as marketing, distribution of  products, as well as business and finance manager functions.Successful small cheesemaking businesses have been analyzed to determine the market structures,niches, products and marketing strategies that have made them into successful businesses. Theseenterprises have been successful because they use “big business” marketing techniques to markettheir products on a much smaller but still-profitable scale. The report attempts to illustrate these“big business” techniques with the hope that the small business owner will be able to use
 some
of them to his advantage in order to successfully compete in the industry.3

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