Discuss: 1.

Marketing Goals and Objectives
What you plan to do with the marketing effort? What are sales forecast targets?

This section should convice the reader that you know how and where to sell your product.

2. Overall Marketing Strategy
A key element to discuss is the market niche the company will have. Discuss how customers will be identified and sold; pricing strategy – pricing policy versus competition policy; service and warranty policies; how you will capture customers from competitors; credit terms. Include goals and timetables.

3. Sales Methods
Discuss advertising and promotion policy; sales force management; sales staffing – manufacturing representatives or company sales force; sales area; distribution and sales methods – factory direct, dealers or wholesalers; how the sales methods will ensure projected sales levels are attained.

4. Test Marketing Completed or Planned
Provide results of completed test marketing or outline the plan to conduct test marketing.

5. Marketing Budget
Show the budget with dollars allocated for advertising, travel, sales balances and commissions, promotional materials, trade shows, samples.

6. Key Assumptions

SECTION 3

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Marketing Plan

Marketing Plan - 248

Sample Marketing Plan
Market Strategy Initially, Cattle Producers Marketing Coop will focus on farmers markets to establish its name in the greater central Iowa area while creating early cash flow. As the plan progresses over the next five years, added emphasis will be placed on sales to select grocery stores and distributors, including restaurants. Although greater gross margins are possible through direct sales, grocery and distributors. The market analysis shows a broad range of prospective clients, covering a wide range of consumers who are generally interested in quality food products. The largest of these groups is that of mainstream America, which is projected to grow at 12 percent per year.

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1

Market Goals and Objectives At the beginning of this year, White Tablecloth Restaurant in Big City signed a one-year agreement to take no less than $2,500 of Cattle Producers Marketing Coop meat products per month. $ 2500.00 x 12 = $30,000

Marketing Coop has doubled the number of farmers markets it will be attending and estimates at least an 85 percent increase in sales over last year. $37500.00 x 185% = $69,375 Total Restaurant and Farmers Markets: $99,375 The coop is also visiting with All Foods Markets regarding the possibility of moving over $100,000 in product annually through their market in Big City.

Total Sales to Farmers Markets and Restaurant in Year 1
$30,000 $20,000 $10,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec January $2,750 July $19,000 February $3,000 August $22,500 March $4,000 September $12,000 April $4,125 October $4,500 May $7,500 November $2,500 June $15,000 December $2,500 $99,375 Total

Marketing Plan - 249

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Total Year 1 Sales If All Foods Markets Places Large Order
$40,000 $30,000 $20,000 $10,000 $0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $199,375 Total

2

Overall Marketing Strategy The company’s strategy is based on being the best at providing what the consumer feels is best for them. “Our Only Choice Is What Is Best for You and Your Family” is the motto of the cooperative – a message owners feel sells the venture to its customers and its member/owners alike. A goal is to capitalize on consumer needs, wants and fears. The company also is building a seamless marketing process that takes the flagship beef products from the pen to the platter, while being guided along multiple inroads of direct and representative marketing routes. The planned advertising slant will be towards making the business and its members good neighbors to their customers, regardless of who they are. Marketing Strategies • Farmers markets to build one-on-one relationships and name recognition in the greater Midlands trade area. These markets also utilize sweat equity and create cash flow. • Representative sales, such as restaurant and grocery, to build tonnage. • Live cattle commodity pass-through contracts to liquidate producer overrun and off-grade. • Livestock. • Specialty foods and crafts division to supplement owner/member incomes. • Willingness to take any seat at the table as long as it is profitable. Pricing Strategy The company’s fresh meat products must arrive at the market wearing a label that reflects savings when compared to actual value. Once consumer allegiance is established, there may be some room to move prices upward relative to the competition. Pricing will be such that Marketing Coop products initially reach the consumers’ hands somewhere in the mid to upper portion of the top one-third of the range for similar products. Dealers and distributors will be encouraged by a pricing system that allows them a margin somewhere in the 33 percent range. Handcrafted items and specially prepared foods will be priced at whatever the local market will appropriately handle.

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Marketing Plan - 250

The packaging for this year’s farmers markets activities will include a new company logo. Marketing Coop will concentrate on the core of the greater Midlands area. The weekly syndicated radio program “What’s New to Eat” responded to our letter of suggestion and invited Bernice Aguila to record a feature each week on how to prepare various ethnic dishes that contain Marketing Coop meat cuts. service clubs. then move outward in the most opportune directions as they arise. The company is also continuing the practice of weekly press releases to all greater Midland newspapers regarding issues that speak to the advantages of purchasing certain products – ultra-fresh. Although the schedule is not finalized. there will be instructions on how to use the biodegradable bags made from recycled products to mulch gardens and flowerbeds to slow weed growth. a picture of the farm families who own the cooperative and seasonal gardening tips. Two of our members have established themselves as weekly regulars on local radio shows. Marketing Plan . produced and processed by local labor using minimum artificial inputs.Promotion Strategy The promotional goal is to maintain a level of visibility in order to constantly keep moving increasing volumes of product into an expanding trade territory. First. the company will use those relationships to gain referrals to more distant markets. Plus. We have signed on as a half-time sponsor for Cy Country College football. Cattle Producers Marketing Coop has purchased 350. locally grown foods. the Mobile Cooking and Catering committee is lining up a full season of weekend sampling demonstrations and special events appearances. church groups.251 SECTION 3 . At least one of the plans underway is to host a “High School Tailgate Night” at every school in the Midlands region and donate the proceeds to area public day care centers. businesses or any other interests that may be hosting a picnic. Andrew Michaels is going to be a panel member on the “Buy Local First” radio program in Big City. employee gathering or public dinner. Also. Finally.000 printed napkins to be made available to Midland area sports booster clubs. Marketing Programs Marketing efforts will focus on getting very close to the consumer and identifying those issues most important to them. Although present contacts in the grocery and restaurant business are primarily local. and then providing an answer via tailored food products or handcrafted items.

the heat-and-serve complete meal market appears to hold some promise. There is the possibility of some contract food preparation done on a scaled basis in a commercial kitchen. IA. the company conducted sidewalk surveys at five of the farmers markets attended by the group. rather. The focus has enabled the company to discover voids in the market. Factory and special events catering. The restaurant trade has been explored and Marketing Coop is now identified as a brand name on the menu of White Tablecloth Restaurant in Big City. it relates to them that they are very special and the company wants to feed them just like a member of the family. The company’s approach is to take its product image to higher market ground and make the most of the image of family farmers doing their honest best to make a living in a fair and ethical manner. it was clear that consumers identified the group with high quality and excellent value.252 . narrow niche ethnic preferences and member/owner services are all subjects that are either under study or on the hot list for consideration. SECTION 3 Marketing Plan . other meat products. emulating their practices and positioning the company to operate in a similar fashion. Marketing Coop has worked hard to research specialty food providers.Future Products and Services The company is exploring the addition of other processed items to offer via the convenience store market. The company is selling ultra-high quality and specially tailored attributes in a market segment filled with competition for the middle-of-the-road buyer. the market has grown to include a much larger geographical area. Pies and baked goods displaying eco-labels and health aspects appear to be promising. then add product as needed to fill those voids. The establishment of approved commercial kitchen space will open up new opportunities for partially prepared food items. The coop also has studied and quantified how ready access to a commercial kitchen might add to product lines and perhaps even create a source of employment for some of the cooperative member/owners and their families. Originally geared toward the local farmers market purchasers. Marketing Coop tells all buyers of its product that they are not just customers. Changing the name to Cattle Producers Marketing Coop is expected to allow the newly formed value added cooperative to draw those consumer opinions to an even wider assortment of food products and handcrafted items. Also. improved live cattle marketing agreements. some with special marinades. 3 Sales Methods Cattle Producers Marketing Coop sells its products to an ever-growing consumer group. in addition to a broadening specialty response. Last year. Although selling under the name of Golden Meadow Products at the time.

security. Inc. it was a loosely assembled group wishing to sell beef. Marketing Plan . Consumer Direct Farmers markets Counter sales at locker Catering There is yet another sales category that might best be described as a service for the member/owners of Marketing Coop.The coop has an owner/member speaker bureau that is providing programs for area service clubs and special events. they will select its products with greater enthusiasm and less price sensitivity. and it has been training for on-site cooking demonstrations and working with the Head Chef at the White Tablecloth Restaurant to develop new recipes. The company is selling quality.253 SECTION 3 . Distributor/Restaurant White Tablecloth Restaurant Grocery All Foods Market. Marketing Coop represents a formally organized marketing organization that is offering consumers the part of Americana most desired. Once the consumer is honestly assured that the company offers the best. To set itself apart. Today. In order to do so. value and environmental safety. The keys to viability are to establish a fluid market that will pay a fair price for goods produced on the farms of the company’s member/owners. This past summer. the company puts its “face” with the food and stresses authenticity and concern for the consumer. • distributor/restaurant. and • grocery. it can often move prices to a premium over other suppliers. That is commodity grade live cattle markets. Experience so far has been that once the coop establishes relationships with its customers. The company also has assured potential grocery retailers that it will be available to greet customers and provide weekend parking lot lunch activities to help them draw customers. It is selling the Cattle Producers Marketing Coop brand. taste. Marketing assistance will be a break-even consulting service for the owner/ members. Each of those categories can presently be divided this way. all buyers at the Big City Farmers Market received free compact discs that held pictures of each of the member farm families and short narratives about how they depend on the production of a quality product for a livelihood. the focus over the next five years will be on the creation of three different levels of marketing options: • consumer direct. Eight years ago.

Marketing Coop will first be a “seeker” of markets for live cattle. The All Foods Grocery account is showing promise.254 . the results indicated adequate available talent for a scaled up farmers market effort and any in-store cooking demonstrations or “friendly” consumer contacts at barbecue events or outdoor catering efforts. Centralized management and quality control may foster opportunities to pool production and secure equitable delivery contracts with major packers. such as Live Cattle Marketing Consultation fees. Categories and Skills Business Accounting Hiring/firing Purchasing Marketing Cold call sales Telephone sales Production management Processing Safety Supply chain management Quality Supervision Cash flow management Account management Experience? Yes No Comments When quantified and totaled. SECTION 3 Marketing Plan .000 in product this next year. routestyle deliveries. Not included in these sales figures is any incidental income that Marketing Coop may receive from services provided to the owner/members. Sales Programs The owners/members of Marketing Coop have each completed the following matrix as a way of identifying how their sweat equity might best be applied to an overall marketing effort. Instead of actually being a market for large volumes of live cattle. and 2) the written commitment by White Tablecloth Restaurant to take no less than $30. Cold call sales and telephone sales are areas that may need to be outsourced if the group wishes to concentrate on one-on-one sales and door-to-door.Sales Forecast It is presently forecast for the group’s sales to grow by 266 percent over the next 12 months due to: 1) a doubling of the number of farmers markets to be attended. Samples of Marketing Coop products were provided to the executive officers during the last visit with favorable reaction. Marketing Coop is following up on several details with the top level management and hopes to get a confirmation for delivery dates in the very near future.

food products.Direct sales to the consumer provide the greatest gross returns to Marketing Coop.255 SECTION 3 . will make all sales calls on commercial buyers. direct sales rely on a large amount of sweat equity and account for virtually all expenditures of volunteer time and effort. these interests may be willing to enter into a mutually beneficial agreement in which they would add non-competing Marketing Coop items to their product lines and allow the cooperative to do likewise with their goods. The General Manager. However. Some of these include: • Eastern Colonies Crafter’s Guild • Famous Organic Food Marketing Coop • Home on the Free Range Meats • Big City Community Supported Ag Ranch • We Want One-of-a-Kind Buyers Club • Everybody’s Favorite Everything Exchange Approached properly. Marketing Plan . along with one or two available Board Members. Strategic Alliances There are opportunities for building strategic alliances with several other suppliers of unique handcrafted items and organic. A commissioned sales incentive program is under consideration for meat brokers and others who have inquired about adding Marketing Coop meat and specialty products to their sales brochures and gift catalogs. or minimum input.

256 . organization and research.000 June $23. Although it may seem ambitious based on historical sales of the assorted participants in Golden Meadow Products.000 July $26.Milestones The following table lists important milestones with time periods for actual or expected dates of completion.000 August $30. has come about as a result of deliberate and thoughtful planning.500 September $20.000 We are also encouraged by letters received from All Foods Grocery and White Tablecloth Restaurant (copies enclosed).750 October $11. Elected Board of Directors. a value added cooperative.Marketing We have forecast a relatively rapid growth for Cattle Producers Marketing Coop. Fall 1999 Capital Equity Defined needed member cash and sweat equity investment. although each provides incentives to continue with an aggressive sales effort.000 May $16. the rate of early growth estimates are bolstered by the expanded product lines and a doubling of farmers market sales efforts.350 November $11. Winter 1998 Organize Cooperative Selected business structure for the group. Spring 2000 Capital Borrow Complete business plan and apply for financial assistance.500 December $12. Spring 1999 Research Possibilities Inventoried capabilities and available markets with help of ISU and other service providers. We are also encouraged about the possibilities now being presented in the convenience foods and specialty baked items. The milestone schedule indicates that Cattle Producers Marketing Coop. SECTION 3 Marketing Plan . Summer 2000 Production Manufacture Create and market products under brand name.275 February $12. Past Performance January $12. Financial Plan . Summer 1998 Idea Brainstorm Considered concepts with help of facilitator.000 April $12. Winter 1999 Marketing Realities Hired part-time sales consultant and made first sales calls to measure real market demand. Summer 1999 Feasibility Practicalities Quantified what efforts are most likely to generate cash first.000 March $12.

....... The owner/members are entering into this venture as a well-informed group that understands that their cash and near-term sweat equity may well be the keys to the long-term success of this venture.................................. Yet another assumption is that consumers will continue to appreciate Marketing Coop’s attempt to provide a “face” with its food and to provide detailed quality information about how the cattle were raised..00 Supplies ... who they are and what they want.................... 5 6 Marketing Plan ..... Expense) ........... the owner/members of Cattle Producers Marketing Coop have agreed to put up 50 percent equity in the form of initial cash investment......................257 SECTION 3 ............ Newly designed labels indicate the direction of the company...................................... Marketing Budget Advertising ................... Possible advantages of developing a Web site are being explored.. $0...................And finally.........00 Key Assumptions One assumption made by the company is that consumer demand for natural beef product will continue in the future.................................. but questions remain about how best to draw consumers to it. 4 Test Marketing The last three years of sales have been test marketing and development sales............................ $250.. $50. $100.......................... Sales Literature The coop currently is working on a line of brochures and sales materials to assist in marketing and efforts toward prospective new wholesale and retail accounts............00 Business Cards (Misc....................................... Another assumption is that large competitors will not enter the natural beef market for at least three to five years since the market is yet to be fully defined..................................... The company learned about its customers......................................00 Travel ......................

258 .SECTION 3 Marketing Plan .

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They put products on the market with the right message. competition and production potential. or be suppliers of the products through a supply network. Rather. drawing up a marketing plan to accompany your business plan should take some of the mystery out of what happens as you progress in your business. comparatively little importance was placed on the actual selling of goods. Such businesses have successfully used marketing tools and planning. In this manual. They also may buy from a business out of loyalties that have built up over a span of time – they’ve formed an actual or a mental relationship. Opportunities do seem to exist and actually to be growing for ag based groups to align themselves with established companies and to provide a market segmentation for them. at the right time. That doesn’t mean they are difficult to understand. they can target niche markets. Established companies have become such because of years of investment and buying. merging and taking over competitors. customer. this manual focuses on development of niche markets. allows you to make informed. A “market” is composed of actual or potential buyers of a product or service and the sellers who offer goods to meet buyers’ needs. Economic conditions. To become involved in a mass market would require displacing an already firmly established company. businesses found they needed to update their approaches to both product and sales. it should consider aligning itself with those who do through marketing partnerships with individuals and groups. intelligent marketing decisions. The market research you carry out. People generally buy from a business because that business gives them what they want in the most convenient and cost-effective way. Before the 1950s. If a group does not feel it has the marketing expertise necessary. more specific plans (or maps) of their own. That would take extremely deep pockets. How well you understand your customer and your market conditions will determine how effectively you are able to navigate your business around obstacles and take advantage of new opportunities. in the right place. you are developing marketing research plans and actual strategic plans for marketing as part of your business plan. to the marketplace. Or. trade barriers and agreements. composed of fewer customers with specific. competition and production potential. government regulations. Put in simple terms. and cultural and demographic shifts impact markets. with falling consumer demand and supply levels bouncing back from World War II shortages. It was thought that high quality goods would sell themselves.Marketing Plan Taking the Mystery Out of Marketing Marketing describes everything your business does as it readies its goods and services for the marketplace. literally. customer. very similar needs. In the mid 1950s. But marketing plans also can be larger. as discussed in earlier. . Primarily. the quantity and quality of competitors. marketing is the means of exchanging goods and bringing them. Your research should center on your product. Businesses can target mass markets composed of many people with broadly similar needs. Agricultural groups need to become successful marketers if their value added agricultural businesses are going to be successful.259 SECTION 3 Your research should center on your product. consumer trends. They have spotted new trends and created products and services that customers want. They have turned well-researched market opportunities into businesses. Marketing Plan .

S. and it cost a lot less. These activities include carefully researching and segmenting individual customer markets. Successful marketing is not a single activity you do. the world really didn’t need a better mousetrap! Businesses that set their goals without first looking to their customers’ needs often end up paying a price. Why? Because the old style also caught mice. They sell what they produce rather that make what they can sell to satisfy a customer need. It is a collection of strategies and tactics at varied levels and targeting varied end-results. Customers didn’t buy the better mousetrap. “Marketing Research and Analysis. businesses that focus solely on improving productivity and designing new products around new technology suffer from a product orientation.” by U. Along the same lines. its efforts failed. In short. West Foundation. Similar results happen when businesses focus on internal operations at the expense of getting out and knowing their customers. money and energy into creating a great mousetrap. In the end.260 . Most successful businesses have a strong customer orientation and design most of their marketing strategies around the needs of their customers.What ever happened to the business that believed the world needed a better mousetrap simply because it could build one? The company pumped time. SECTION 3 Marketing Plan . Credit Adapted from NxLeveL Manual.

you will deal with the basic outline of how you will market your goods. You probably cannot successfully carry out either effort without the other. But a more expanded marketing plan can provide that necessary information as well as take you on to the levels of how you carry out your strategies and who is going to perform certain tasks. • It is studying. We have addressed these in earlier chapters of this manual. marketing is everything you do in terms of addressing your Marketing Plan . After two weeks.Marketing Plan A Marketing Primer A basic understanding of the scope of marketing – and the questions raised therein – can help any new enterprise immensely. Your strategic business plan and your marketing plan go hand-in-hand. • It is making decisions about how to reach your goals. A key element in marketing is: Be consistent. Unbreakable Rules There are two common-sense. You may be well versed in the terminology and concepts of marketing as they relate to agricultural production. only 5 percent of those images are remembered. Instead. frequent and on target with your messages – all the messages you send out. you stand as good a chance as anyone of being the remembered (and acted upon) image if you are smart about it. although making good sales at the right time and prices is always a factor. keep a couple of things in mind: 1) You have to be noticed – you can’t get lost in other people’s “bigger picture. Be consistent. They continue to apply.500 images. some of which reinforce the previous day’s images. frequent and on target with your messages – all the messages you send out. the average customer/consumer is exposed to no fewer than 1. Remember that over that two-week period. According to the experts.261 SECTION 3 . What applies under that umbrella will still be important to many of you. To establish a full fledged marketing plan. Right in your business plan. This plan is one of building on what you know about yourself. It is a working document – one that changes as your business plan changes. Marketing is not just about sales. It’s easy to get the feeling you are on a racetrack and all the other cars are accelerating and passing you by – repeatedly. Actually. cardinal rules to continually keep in mind.” 2) Good marketing and image creation evolve. Rule 2: Know your competition.500 different images each day. 50 percent of those are forgotten in less than 24 hours. But the scope of your marketing considerations enlarges when you become part of the processor or other start-up business framework. As mentioned earlier. So what is this “thing” they call marketing? • It is something different to every person. you will need a marketing plan. some of which are new. • It is analyzing. each day brings in another 1. defining steps to reach goals and turning one success into a group of them. Rule 1: Know your customer(s).

Political Factors Potential customers Information about customers Known customers Information about potential customers Your Company’s Marketing and Image Efforts Community Information about competitors Operatives (lenders. Your best approach is to have as much information as possible about clients. you and others have been focused on one or two of the components in what marketing gurus frequently call the “Four Ps of Marketing. In the Market Research chapter. etc. Sound complicated? It can be. really good.” they are pricing. competitors and. methods and expected outcomes were discussed. Or. And all are considered in relation to the two basic rules of knowing customer(s) and knowing competition. This is called “environmental scanning. your own product and business capacity. but it doesn’t have to be. In your previous working endeavors. There are a couple of cautions to keep in mind.customers and in relation to your competition. Supportive attitudes and answers can make you feel good.262 SECTION 3 .” While it may not seem relevant at the time of beginning your operation. of course. you may wish to consider surveying or questioning others for this information. for a very short period of time. All that feel-good information can cause you to build a marketing and business plan that will not take you to the success you want. associates. you need to know what a chunk of “the rest of the world” thinks. None of the factors can be considered in isolation from the other. This means doing “research. product. Depending on your product and sales goals. These activities probably will lead to improved sales as an outcome. Roll these together and then add something we will address later – image or positioning. Marketing Plan . you do not wish to be caught by surprise by events that occur over which you do not have control. You need to know where you are sitting in the larger scheme of things. types of research information. You do not want to limit those you query to those who are a built-in market for your product or supporters of your ideas. potential clients. associations) Economic Factors You also need to know the climate in which both you and your customers are operating.” as was addressed in an earlier chapter. You may be able to do this simply with a meeting among you and your partners. place and promotion.

competition and environment information. needs to be part of your marketing plan.) perceive your company and products. There are volumes written in fancy. etc. Your image conveys knowledge – you have done your homework. Probably. at the very least. Marketing Plan .” How that is done is up to you. what do you do with all the information you have gathered? You go back to the drawing board. what is this thing called “image?” Quite simply. employees.You should know about the current political climate as it relates to your product. much as you did in devising your product. In terms of marketing your business. What factors in the economy (regionally. in which your targeted customers are making decisions. Setting Yourself Apart What makes you so special? We’ve all heard that question put to someone rhetorically. And. It conveys your savvy as a company and your respect for a customer. You are gathering information about your competitors. knowledge. it is a question to take very seriously. Otherwise. this is also a basic truth – your product and your service to the customer must be clearly and succinctly defined in all that you do. your business peers and the budget you can or wish to devote to image marketing. Now. However. What do they do right? What do they do better than you do? How do they deal with customers? What is their image? Why are they ahead/behind you in your field? You have checked out the environment in which you are operating your business and. habits. competitors. The image you leave with customers visually or by any contact conveys reliability. community units. The not-so-good news is some of it is helpful and you should always be learning new techniques to put a spotlight on your company and products. You have a big job simply in using the findings of research to make your product.263 SECTION 3 . The idea that successful marketing is about the customer/client and not about you or your product is valid. Worksheets to help you get started are included in Exhibit 3A at the end of this chapter. You already are gathering all the information you can out in the marketplace about customers and potential customers and their preferences. etc. Image Is this important? You bet it is. The really good news is that it all boils down to an old adage: “Put your best foot forward. more importantly. it is the action you take to bring that about. You need to know where you sit in the midst of all of this customer. production and sales decisions. nationally or world-wide) could affect your situation or your customers’ buying ability? What trends related to your product area exist? You may be able to do all of the information gathering yourself or with your own staff or partners. it is the way others (clients. ad-agency driven jargon about what you “must” do in terms of creating an image for your company. there is no reason to do business with you. Establishing an image. it will be money well invested to hire some assistance in this area. So.

the friendliest service. your ways of dealing with customers and other business people. • You don’t have to be cute – but use words that grab interest. if done well to the right audiences. For that you need a logo. it is not limited to that. – can help you further your product marketing efforts. but it is really about your customer.264 . A well-defined image also becomes important in dealing with the community(s) in which you work or do business. an “appearance. Let another professional or even a business associate help you out. and on down the line. • Stress the customers’ return on investment – what do they gain? • Use language that comes from your customers or whatever group you are addressing. It’s a reminder that these people (you) are the ones with the best product. But there are other tools that many businesses use that cost less and keep their name and image out where it needs to be. Written Materials The following set of guidelines may help you if you decide that written materials – promotional fliers. SECTION 3 Marketing Plan . Image must be believable and accurate. Web site information. lenders. It must be consistent – in visual approach as well as in the way you handle customers. All written materials should reflect your company image. Go back to the idea that what your customer thinks about you is everything. with governmental agencies. Brochures are good introduction pieces and can serve well as a substitute for your presence when you want to reach more people than you can possibly visit. Image is a part of everything you do – all written materials.” That visible image should be a part of everything that is viewed by customers (and competitors). what is noticed about you (in person or in product) at every interaction. Image must make sense. lenders. etc. with governmental agencies. a brochure. It needs some logic applied. • Step back. Maybe you are dealing with packaging issues. • Emphasize what you have learned about customer needs and wants in what you write. not the jargon of your own niche business. A well-defined image also becomes important in dealing with the community(s) in which you work or do business. What short phrase describes your interactions with customers or your product? You may want to develop a tag line and use it everywhere. not your heartfelt (though possibly accurate) assessment. etc. It is costly and. That probably means developing or having developed a logo and some preprinted stationery. Make your key words stand out visually. You may think a brochure or written piece is about you. You are defining yourself with your “presence” and also what you think of your customers. and on down the line. the quickest delivery. you are probably too close to be the one to have final say in its promotion. You are defining yourself with your “presence” and also what you think of your customers.While establishing an image can often mean gaining a visual identification. such as with a logo. can be effective. If you are the one responsible for the product’s success. Tools that Help Paid advertising is one of the first things we think about when we think of marketing and image issues.

• Be available once you have sent out a media release. but it also helps to establish your company or product credibility. Are you hiring new people during an economic downswing? Are you introducing another new product line? Have you expanded into a non-local market? • If a photo applies. Pretend you have only five seconds in someone’s vision. when available and where). you should know the value of being recognized in the press or by any media. then make sure that activity is included in what you are getting. especially in terms of dealing with smaller market media such as smaller community weekly newspapers.. Information about your business. What it means (perhaps a quote from the company owner). use statistics. NO MISTAKES! Marketing Plan . If possible. • Focus on what makes your news “newsworthy.” • Something “different” is generally more interesting. Remember when we talked about all the messages that people receive everyday. your new hirings. • Don’t feel defeated if your first media release doesn’t create interest. If you use an agency to do the piece. It helps to be noticed (free advertising). But you can – and should – be your own press agent. This is your chance to be one of them. You can send a press release representing your company by simply putting a bold “PRESS RELEASE” at the top of the empty portion of your letterhead stationery.265 SECTION 3 . Press Releases Too many smaller enterprises believe that getting media notice is a matter of the media somehow magically knowing there is a story there and then seeking it out. Who can predict when that might turn to your advantage? • Proofread everything that goes out. Continue to send releases. If nothing else. These are some points to remember: • You use press releases only when you have something that deserves to be noticed. What happens next (if a new product. This is not the forum for most opinions or issues stands – at least not associated with marketing your company. What you write should address these factors: What has happened.• • • • Stress authority. You will have blown an opportunity now – and maybe next time as well – if you aren’t around to answer questions or take advantage of something the media may wish to expand on. then a decision will be made as to whether or not to read further. is probably not going to get passed on as a news “tip” by someone else. Any written piece that is done “in-house” by you or associates should be tested on potential customers or recipients. This is another way your research pays off. Who was involved (include addresses). As an entrepreneur. Was there something recently in a trade magazine or newspaper? Always get a second opinion and always have someone else proofread for you. Someone else may be able to give you a testimonial or words of wisdom that fit the message you want to spread. your new products. supply it. your local media will know you exist. etc. therefore more interesting to media.

purchasers of products. If you are going to get into this arena. you are interested in getting the most bang for your buck. look for at least two outlets over a year’s time. • Gain a list of potential customers. agricultural. • Make valuable contacts in your product business arena. You will find them taking place in your region. etc. Your media contacts list does not have to be lengthy or detailed. timing. Finding the right trade shows to benefit your business and spending the resources to make yourself noticed when at the show will help you gain the best return on your investment. etc. expectations of you and your staff.Exhibit 3B has a sample form that will work for many items of “news” about your product or company. you – and your exhibit – have to be noticed and competitive. • What is the breakdown of the show’s attendance: General interest. You will need either large. Answers will help determine if the project is “do-able. restaurateurs? • What amount and type of pre-publicity is sent out and to whom? • What goes into the informational packets that are available to other vendors. It is expensive to buy exhibit space. Some basic questions should tell you which shows are worth your effort. you now must gear up to attend as one of the businesses “hosting” the show. however. too. You will want to add paragraphs to flush out the story angle for the media. that going to only one trade show each year or season is not the best use of your resources. You will need to construct a display that will fit within the allotted space at each show (or be adaptable to fit).266 . Most businesses need some graphic design and construction assistance with this. middle traders or vendors. That means planning ahead and preparing a booth that attracts visitors. Most are for tabletops. at the state level and nationally. pay staff and prepare a display that is effective. Trade Shows Trade shows may be one of the best means available to get word out about your new venture. which can help you save costs on the display itself as well as give you additional table area for demonstration. they will contact you.” Right now. product literature. • Build interest. In order to have these things happen. sponsors or attendees? • What are other displays of similar products like? There are many questions to ask about setup. Several companies produce ready-made. Your goals in making this effort can be quite simple and highly successful: • Gain exposure. easily folded up and transportable display units. food processing and specific meat associations. academics. They do need to be accurate and give contact information if the media wish to pursue it further. however. blown up photos or some type of graphically attractive word SECTION 3 Marketing Plan . logistics. Remember. If they want more. Talk to the group putting on the trade show. samples. Instead of going just to observe and learn. The associations sponsoring the shows will detail the amount of space that is available for what cost. You should check out the possibilities of exhibiting through grocery.

use to bring in interested passers-by. Of course, part of your package will be identification of your company. That could be a super-large logo on one of the display panels. What would attract potential customers to your display? Your research should help you out here. Just as that research brought you to certain conclusions about how to discuss your product and company, it also will lead you to those words that will entice lookers. Consider what benefits the customer wants and can find in your product, then splash it big on your signage. What are your differences from other products or companies? (Go back to doing worksheets if you need to do so.) Then spend some time finding out what the other booths (especially those with similar product lines) will be like at the show. While you want to be different and stand out, you need to be on a par with them – or stretch beyond them in terms of presentation, attraction characteristics, size, and use of technological bells and whistles. Yes, it is costly; but it is better to spend a little more than to get no return on investment for what you are spending. A few other items to put on your list of things to do: 1) Have printed materials available for passers-by to take with them. These should not just repeat what is in your display signage. 2) If your budget can stand it, this is the place where trinkets and gadgets can do you some good. Let those that stop by your booth leave with a reminder. 3) If you do not like the trinkets way of thinking, consider this: Make available a more substantial gift item (or several) and put a big bowl or box on your display table. Ask for individual’s business cards or let them fill out a card-size slip of paper. Then do a drawing for the item(s) at the event’s end. You will have to make it a prize that has some worth to those attending. But you will have gained a ready-made list of contacts. 4) This is a good time to consider milking the media. As well as finding out what media coverage is being handled by the sponsoring agency, determine if you have any “news” from your own company. If so, send out a relevant press release a week ahead of the trade show adding that you will be among those present at the trade show event. Perhaps a follow-up call to the media will create the impetus for a oneon-one meeting with a reporter, ag experts, columnist, etc. A Web Site Very few new facets in our lives and businesses have had the energy, following and potential of the Internet and, in particular, marketing and selling through a Web site. Some businesses (of all sizes) swear by it as a marketing tool. Others, quite simply, don’t feel it has added much to the bottom line. In very recent years, costs associated with creating and servicing a Web site have decreased, at least in the sense that you can get fancier display for your investment. But keep in mind that marketing activity and investment must have purpose. A Web site may boost your image as a company but some companies still find it has little impact on business.

What would attract potential customers to your display? Your research should help you out here.

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When is Web site development something to consider using in your marketing strategies? Ask yourself some questions similar to those you must ask to develop your overall marketing strategy. • What percentage of my customers and potential customers use computers, the Internet and Internet selling/buying mechanisms (E-commerce)? • Do I/we wish to use the Web as an avenue of sales, information or both in reaching customers? • Where are my customers located? What geographic areas do I want to add to my customer circles? • What is the competition doing? Will a Web site alter perceptions about your company compared to perceptions about other companies doing similar things? If you wish to conduct sales activity through your Web site, there are other things to consider as well. You will have to have in operation a means by which to receive payment (credit card, purchase order, etc.), since no cash or checks can change hands. People use E-commerce to speed up the process of making purchases. Are you able to deliver? Is staff available to process orders in a timely way? Are you up to speed on requirements for shipping in response to Web-based purchases. If your customer base is local, a Web site may be of less value to you. Your time may be spent more productively in dealing with these customers through printed messages, local advertising and one-on-one associations. If you are trying to increase sales to a broader area regionally or nationally – and you have sales and shipping details worked out – a Web site may be of more value to you. If you are looking at International sales, it is perhaps a strategy that is necessary. In some cases, your product sales increases will depend on a learning curve among potential buyers. For example, perhaps your meat product is one that is becoming known for health value or for its value in an eating trend of another type. A Web site may be a way to increase knowledge (again consider the geographic factors) among the public. Web browsing has become a favored, fun activity for many, especially the young (who are the longer-term customers). You can put information about benefits, ways of using a product, trend growth, etc., on your Web site that will in a broad way emphasize why buying your product is a good thing to do. Throughout much of agricultural production, increasing public awareness and knowledge is considered critical to future business. Where a Web site is linked is as important as using lively graphics on it. If you decide to proceed with developing a site, consider how a customer will come across the site if the exact site address is not known. These “hyperlinks” are critical for expanding image and sales, but don’t mean as much to existing customers. You will have already let them know exactly where to go to find you on the Web. A Written Plan You need to find the time to write down a plan that expands upon the marketing section of your business plan. As you build the plan, you will continue to do these things: • Look at where you are now and ask why. • Plan to maintain those positions, then expand them to fit your newer goals. • Define the stumbling blocks that exist between your company and the type or volume of business you want.

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The simplest marketing plan follows a format something like this: List overall goals, probably at least three or four; under each goal, list strategies that can help you achieve that goal; under each strategy, list a few actions that will be taken to finish out the strategy. Also, you will want to list a person(s) who will be responsible for an action or strategy.

Marketing Plan Goals
Goal GOAL 1: Strategy: Action: Action: Strategy: Action: Action: GOAL 2: Strategy: Action: Action: and so on... Person Responsible Completion Date

Most plans for new companies can safely list one-year goals. You may wish to set up a two-year set of achievable goals. Strategies and actions are given deadlines within the larger timeframe. If you can live up to the promise of continually revisiting the marketing plan to be sure it is on target or to rework it, you might consider doing a six-month plan as well as a two- or even five-year plan. It is a document that will be revisited and revised regularly. Sample marketing plan worksheets that can get you started are available in Exhibit 3C.

Additional Resources to Explore
Peppers, Don, and Rogers, Martha, The One to One Future: Building Relationships One Customer at a Time; New York: Doubleday; 1993. Rapp, Stan, and Collins, Tom, MaxiMarketing; New York: McGraw-Hill; 1987. Ries, Al, and Trout, Jack, Bottom-Up Marketing; New York: McGraw-Hill; 1989. Vavra, Terry G; Aftermarketing: How to Keep Customers for Life through Relationships Marketing; New York: Irwin Professional Publishing; 1992.

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Exhibit 3-A Marketing Worksheet About Your Company What good things can I say about my company and its products? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ What makes my company/products better than others? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ What is unique or different about my company/products? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ What criticisms have I heard about my company and/or its products? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ SECTION 3 Marketing Plan .270 .

______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Describe other clients you would like to have.271 SECTION 3 . ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ What differences exist between the above two descriptions? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ What do current clients say about you? (If you don’t know.Exhibit 3-A Marketing Worksheet About Your Clients Describe your current clients.) ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ What do you want them to say about you and your company? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Marketing Plan . find out.

Exhibit 3-A Marketing Worksheet About Your Competition Who are your competitors? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ Rank how you stack up against them in terms of clients you want. ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ What do customers say about your competitors? (Find out!) ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ How do your competitors market themselves? What works for them? ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________ SECTION 3 Marketing Plan .272 .

creation) The _______________________ will involve ___________________________________ (action) (number of people. companies. recent quotes. such as national or community statistics. product.Exhibit 3-B Marketing Worksheet Press Releases (your company letterhead or stationery) Press Release For release ______________________________________________________________ (date) For further information. etc. contact: ______________________________________________ (name) (phone) (fax) __________________________ has announced ________________________________ (City. etc.) Marketing Plan .273 SECTION 3 . State) (Your company name) (what event. a quote from a local politician.) ________________________________ noted that ______________________________ (Name of company spokesperson and title) (comment about the action) _______________________________________________________________________ (List any pertinent information. change.

SECTION 3 Marketing Plan .274 .

Exhibit 3-C (Two)-Year Marketing Plan Overall Goal/Mission Statement: Effective Who Is Responsible? GOAL 1: Strategy A: Task: Task: Task: Task: Strategy B: Task: Task: Task: Task: Strategy C: Task: Task: Task: GOAL 2: Strategy A: Task: Task: Task: Strategy B: Task: Task: Task: Strategy C: Task: Task: Task: GOAL 3: Strategy A: Task: Task: Task: Strategy B: Task: Task: Task: Strategy C: Task: Task: Task: Time Frame Done .

it must be effective. Notes Marketing Plan .. Your marketing efforts – for the most part – pay for themselves. figure into that marketing percentage of budget.277 SECTION 3 . It should pay off. But here are some more definitive guidelines. That means shifting – sometimes increasing – planned expenditures for marketing activities. • Direct advertising will boost the dollars you spend. etc. especially at start-up. After a few years. • If you are starting up as a company.” This tells you that instinct and common sense both are involved in the process of setting a marketing budget. The point of marketing is to increase business – in other words. for larger endeavors. • You also need to plan to seize opportunities when they arise. radio and television ads must be professionally done.” You will hear people say (often as a complaint) that they spend nearly one-third of their budgeting for marketing. If I spend X dollars to do this activity. your brand. • If your “marketing” category includes personnel (in sales or. those figures are in addition to the activity-based budget. • If you are simply carrying on with already established (and paid for) marketing activities. they can actually. there are some things you simply must do to establish your company’s image. 7 to 10 percent would be more realistic. and those cost goodly sums. • If you add trade show presence into the budget. It might be to your advantage to look at marketing expenditures beyond the bare necessities of establishing an image in the following way. you can expect to spend hefty bucks to have a presence that meets. especially with electronic modes added to (not replacing) the print vehicles you need to use. • As a start-up. for a marketing specialist). Print. a sizeable chunk of your budget over the first two to three years will go to marketing. Then you will turn around and hear a comment from another businessperson that he or she “got the lion’s share of the year’s business off of a $500 leaflet. with some economies of time and scale.Marketing Plan How Much Should You Spend? Setting up the marketing portion of your budget is no easy task. Sure. plan to spend 20 to 30 percent of your budget that first year or two on activities related to marketing. It comes somewhat under the shadow of “darned if you do and darned if you don’t. perhaps exceeds the impact of your competitors. how much new business do I need to turn to cover the costs of doing the activity? Can I reasonably expect to turn that amount of business? Can I reasonably expect to turn more than that? How much more? New business in addition to what would be needed to pay the costs of the activity is an increase in your bottom line.

278 .SECTION 3 Marketing Plan .

The sites are primitive compared to bigger company sites with little in security features. businesses accept orders and payments over the Internet. • 500 million people have Internet access. Total sales for the 32 sites were $4 billion. 3.3 billion to $4 billion out of $2. $3. Several companies (such as Arthur Andersen’s Enterprise Group. The most successful sites were Amazon. S. Those revenues are predicted to grow to $327 billion in 2002. The Yankee Group has identified three phases that small.279 SECTION 3 Internet sales are only a fraction of total consumer spending.5 percent in 1996 to 41. The firms gather customer prospect information and provide customer feedback and information requests. but only five sites accounted for 75 percent of the total sales. • On-line retail marketing is growing at a 200 percent annual growth rate. Some analysts predict that by 2000. Value America and Ebay. Consider these Internet facts. Boston Consulting Group and the Yankee Group) have done studies focused on small firms of 100 employees or less. with businessto-consumer sales topping $17 billion in 2001. but only 5 percent of customers who visit the Web site become customers.72 million.5 trillion in consumer spending in 1997. Selected findings from the various surveys include: • The percentage of small businesses with access to the Internet doubled from 21. 2.5 billion in consumer sales in 1997 and predicts that number will reach $25 billion in 2000.5 trillion in consumer spending in 1997. Three phases are: 1. Brochure-ware sites: Companies use the Internet primarily to advertise products.S. • Each generation has a new advertising technology . 30 percent were found to have used the Internet for promotion/advertising. Simple commerce sites: In this advanced stage of e-commerce. Traffic online has been doubling every 100 days.com. Internet sales are only a fraction of total consumer spending. $1. $1. Christmas sales for 1999 were up 1000 percent from 1998 on some sites. However. 37 percent for on-line ordering and 29 percent for receiving orders. such as America On Line (AOL) or Yahoo. Many companies use Internet marketing as a significant market channel.3 billion to $4 billion out of $2.com. • Small businesses that utilized the Internet had higher revenues when compared with those that did not. . will be conducted over the Internet. the largest component of e-commerce. Egghead. In a study of 1010 small firms by IBM and the U. National Small Business United. . Pre-commerce sites: Firms use the Internet to create immediate orders off the Internet.S. on-line transactions are not part of these sites. The most common use of the Internet by small companies was for e-commerce.2 percent in 1998.Marketing Plan Internet Marketing The Internet is quickly becoming a booming market option. There are 32 publicly traded Web sites. . household are on line.com. • Internet sales account for less than 1 percent of total retail sales in the U. Zdnet. Internet on-line sales are growing. one-third of all business-tobusiness transactions. radio age to TV age to Internet age. Priceline.to medium-sized companies go through over time in their Internet development. Marketing Plan . Access Media International estimated that small business gained $3. Chamber of Commerce. • 98 percent of all large companies have Internet access. • Almost 50 percent of the U. economy.79 million versus $2.

personal care. 3. Offers an inexpensive way for small firms to compete with larger companies by their products available worldwide. 1.Forrester Research. Inc. Small companies that use the Internet have higher revenues. Food Companies Few food companies to-date have been successful with only using the Internet as their marketing avenue. 4. music. 2. No market for old computers. Research has shown consumers start with ordering of convenience items and that it takes a year before moving to the next category of items. on average $3. Finding qualified consultants. apparel and flowers. Product selection and ease of shipping will keep customers ordering. 2. • When marketing livestock on the Internet you must be slaughtering and processing from a federally inspected plant. 5. Allows small companies to compete with other companies both locally and nationally. Consumer items are expected to generate $32 billion worth of sales by 2003. With the exception of specialty foods and refills. advantages and disadvantages of Internet use by companies are: Advantages 1. Items included are high frequency purchases like groceries. 5. Managing upgrades. Creates the possibility and opportunity for more diverse people to start a business. 3. Costs required to maintain a site. computers and automobiles. with no restrictions on hours of operation.280 . 3. Offers convenient way of doing business transactions.72 million overall. Finding and retaining qualified employees. Producers considering marketing over the Internet should consider some of the following: • Businesses which succeed most often on the Internet are those that are unique. Advantages and Disadvantages As highlighted in various studies. 6. has divided the on-line retail market into three categories based on type of goods purchased. • Promote your Web site by submitting it to several search engines repetitively and SECTION 3 Marketing Plan .. Airline tickets are the most often purchased item. Disadvantages 1. Research purchases: These are information driven purchases. commonly used and affordable. 7. • Unique businesses succeed on-line only if people can find them. Convenience items: Low cost items such as books. accounting for almost two-thirds of the $56 billion spent in this category. such as travel arrangements.79 million compared to $2. Assuring Web site security. 4. Replenishment goods: This group will account for a projected $19 billion in sales by 2003. 2. consumers will be slow to adopt this purchasing due to distribution issues. prescription refills and specialty foods. Avoiding being a victim of fraudulent activities on-line. unless you only sell to clients in your state.

• Consider a toll free number – a risk-free way for potential customers to inquire. Hiring a professional Web site designer is often a good idea. 10 cents/minute) • A user-friendly e-mail program (such as Microsoft Outlook) to manage client contact. related Web sites.95 per month and Web hosting.agecon. • ISP-Internet Service Provider: Provides dial-up access between your computer and the Internet.e. • Submission: registering your Web site with a search engine. ($12. • HTML-Hyper Text Markup Language: the language used to create Web sites. resource lists for more information and a glossary of Internet terms.95 $22. Washington State University also has a Web site. The other hosts are mostly feebased sites. although it may be higher in rural areas.$5) • An Internet Service Provider (ISP) to provide dial-up service to the Internet. but be cautious about having too many links that quickly redirect consumers away from your site. By looking at AOL: CNET Builder.extension. Netscape or Internet Explorer). usually $15-$20 per month. This site provides Web page design hosts.com) • Server: the unit that houses your Web site. Marketing Plan . • Link or Hotlink: a word or graphic you can “click on” to be taken to a new Web page.com for $24.edu. check references and on-line work samples. The modem needs to be fast enough to handle the Internet or e-mail and to perform desktop publishing. you will find sites which will host your page for free. ($5/ month. links to other farmers’ sites.281 SECTION 3 .umn. Before doing this. A short glossary for new Internet users: • Browse: a program through which you view the Internet (i.95 per month) If you use a commercial national service. which offers resources for farmers wanting to market their products. Promote your Web site off-line by sending out cards and putting your Web address on every promotion piece. Do-it-yourself design programs can be limiting and may create Web sites that look like many others.umn.wsu. Find a reliable service. charging $19.com. but check out your competitors’ Web sites. make sure you have a local access number assigned to the company in your area and you will not be billed for long-distance calls each time you dial up. One such site is Yahoo ! GeoCities. • Search engine: a Web site whereby you can locate Web sites for any particular topic by entering keywords. (free . Don’t link to your competitors. Their Web site provides information on the pros and cons of Internet marketing. rmontgomery@extension. The site location is www.edu/mainstreet or contact Rae Montgomery at (612) 624-2773. Link (with permission) to many applicable Web sites..yahoo.• • • • • • linking with other high-traffic. The cost for this second line will vary according to your local system.95 per month. tips for success. look up http://www. For information. (Example: www. although four other Web hosts were listed who will host your site for free. Examples of fee based sites are OLM.edu. ($600 and up) • Consider a second phone line to avoid busy signals while you are on-line promoting or researching your Web site. If you are ready to go on-line you will need: • A computer with a modem.

If you choose to hire a designer, here is what he/she will need to create an effective Web site. • Photographs representing your products and/or services. • Any printed material such as business cards, brochures and catalogs are helpful for formatting and content. • A storyboard that gives an idea how many pages and what each page should be about, as well as what you like and dislike.

Recommended Book
Sam’s Teach Yourself HTML in 24 Hours.

For Further Information
AOL: CNET Builder.com www.smartbiz.com/sbs/dobiz.htm - Find the site titled Internet Business Smarts on this site. Many sites are listed which are resources for a wide variety of information for marketing on the Internet.

Resources
Hobbs, Jennifer, Internet Eclipse; jennifer@webchoce.net. Quinn, Tom, Promoting Your Business Using the Internet; Iowa State University Extension, Ames, Iowa 50011. E-Commerce: Small Business Venture On-line; Office of Advocacy, U. S. Small Business Administration; July, 1999.

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Marketing Plan

Direct Marketing Options
Direct marketing involves selling products directly to the consumer in order to allow the producer the possibility of receiving a better price. This usually involves three critical steps: 1. making a direct connection to consumers; 2. determining the consumer wants or needs; and 3. offering products that meet those needs. Direct marketing often takes many forms and usually includes a combination of techniques, such as selling to farmers markets, door-to-door sales, Internet marketing, direct sale to restaurants or institutions, and so on. Producers often consider direct marketing channels because there can be many advantages. Neil Hamilton of Drake University in his book, The Legal Guide for Direct Farm Marketing, cites monetary benefits of direct marketing, including: • High prices, because you are selling at retail not wholesale prices. • More net income, because you retain the portion normally absorbed by intermediaries, such as wholesalers. • More stable and dependable sales, if your direct farm marketing outlet has a steady flow of customers. • Increased marketing opportunities, because you can still sell our products in the traditional wholesale markets. • Marketing higher value products, such as meat and processed foods. He also cites many personal or non-monetary benefits to direct farm marketing, which include: • Personal satisfaction and fulfillment. Every farmer knows how satisfying it is to produce a good crop, but direct farm marketers experience a special feeling as they directly supply fresh, wholesome food. They get to share the food with the people who appreciate its value and who let them know how much they appreciate their efforts. • Building relationships with customers. • Working at home with your family. • Maintaining autonomy or independence. • Creating “community” around the farm. Many direct farm marketing operations involve more than just one person working in the field. Instead, the family may be involved as well as outside workers. • Running a personal business enterprise. There are a number of terms used in direct farm marketing. The following are the common definitions: • Community Supported Agriculture (CSA): a form of subscription marketing where consumers buy a share of production and receive deliveries of the product. • Direct farm marketing: selling food and farm products directly to consumers without using an intermediary. This may include direct sales to grocery stores, restaurants, door-to-door and freezer sales, and Internet marketing. • Farmers markets: local open-air markets held regularly during the growing season where producers sell directly to consumers. Hamilton cautions, “The decision to become involved in direct farm marketing should include identifying the risks (or costs) which might be associated. The risks or costs associated with direct farm marketing will probably be of two types – those that are directly quantifiable and those that may be more difficult to measure. (Page 16-17.) Marketing Plan - 283
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Direct marketing often takes many forms and usually includes a combination of techniques, such as selling to farmers markets, door-to-door sales, Internet marketing, direct sale to restaurants or institutions, and so on.

In his book, Hamilton notes eight things that could get you into legal trouble if violated. • Selling more products produced by others than raised by you. • Not carrying sufficient liability insurance. • Failing to comply with labor rules when hiring employees. • Conducting a “commercial” business in an area not zoned for such use. • Allowing unsafe conditions to exist on your property. • Selling processed foods that have been produced at an unlicensed facility • Failing to observe farmers market rules designed to protect the safety or quality of food. • Not complying with record keeping and paperwork rules for tax or labor laws. Joel Salatin, a Virginia pastured beef and poultry producer and author of several books, suggests several things to think about when deciding on the pricing of your products. • First, don’t under-price your product. Attributes such as “sustainably produced” are perceived to be superior products to consumers because they may be more environmentally friendly, humanely produced, or are produced on family farms. Patronizing local farmers ensures that the local economy is stimulated. Salatin suggests that producers set a rewarding and satisfying gross margin and then stick to it. This will allow the producer to build a customer base with clients who appreciate the product for what it is, not for what it costs. • Second, don’t try to satisfy all customers’ needs. Take into account the time and extra effort that may be needed to accommodate their requests. (Salatin, Joel. “Sales Can Fail,” The Stockman Grass Farmer; June, 1994, p. 31.) • Finally, keep accounts receivable low. Operate on a cash and carry basis as much as possible. Direct marketing has a unique characteristic that depends on building relationships with the customers. In fact, the term “relationship marketing” has been used to describe the best methods of direct marketing for family farms. Salatin suggests these marketing tenets: • The producer has to tell the consumers why the products are different from meat that can be bought in the grocery stores. • Product quality: When the producer maintains control of the animals and raises them, it should be easier not to compromise the quality of the meat. • Customer loyalty: When the consumer knows the producer personally, the relationships built between them, both emotional and physical, are not easily broken. Good sellers know and use their customers’ names. Loyalty helps bring in repeat customers. The greater the loyalty and satisfaction, the higher the likelihood of repeat business, even though the product may be available at the grocery store at a cheaper price. • The producer has to remember that the first rule of business is that the consumer is always right, but in some cases a sale might actually cause a negative gross margin. If the consumer is not a good patron, the producer should consider not marketing to him or her.

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Marketing Plan - 284

and 15 in Iowa.htm Community Supported Agriculture Community Supported Agriculture or CSA is quickly becoming a direct marketing alternative.usda. Most CSAs are organized with produce. Most CSAs have between 35 and 200 members. This kind of CSA is quickly becoming the most common. PO Box 736. Marketing Plan . USDA Agricultural Marketing Service (AMS) Phone: (202) 720-8317 www. This arrangement gives growers up-front cash to finance their operation and higher prices since the middleman has been eliminated. This is a farmer-driven CSA in which two or more farms pool their resources to supply customers. This model is often used in the Northeast. Consumers organize the CSA and hire the farmer to grow what they want. • Farmer cooperative. The farmer organizes the CSA and makes most of the management decisions. or enough for 2 or 3 people.Following are further resources on direct marketing: • Appropriate Technology Transfer for Rural Areas or ATTRA Phone: (800) 346-9140 www. A typical offering would be 5-10 pounds of produce per week. There are more than 600 organized CSAs in the U.285 SECTION 3 .nafdma. IA 50311-4505 Phone: (515) 271-2947 Cost: $20 • North American Farmers Direct Marketing Association (NAFSMA) Phone: (888) 884-9270 www. the farmer grows food for a group of shareholders or subscribers.org • Direct Marketing Resource Notebook Nebraska Sustainable Ag Society. • Farmer Direct Marketing Action Plan Errol Bragg. In a CSA system. There are four types of CSAs: • Subscription or farmer-driven. NE 68739 Phone: (402) 254-2289 Cost: $20 • Legal Guide for Direct Farm Marketing Neil Hamilton.ams. who pledge to buy a portion of the farm’s crop that season. but some are adding meat products. Drake University Law School. The farmer and consumer co-own land and other resources and work together to produce food. The shareholder or subscriber is not very involved in the farm. Agricultural Law Center. Des Moines.S. The consumers make most of the decisions.attra.com Membership fee for one year is $75. • Shareholder or consumer-driven. One detailed three-year study showed that CSA shareowners would have paid 37 percent more at their supermarket for conventionally grown food. 2507 University Avenue. • Farmer-consumer cooperative. Hartington.gov/directmarketing/frmplan.

• Constant and varied supply of produce and products. • Finding consumers who are willing to be part of a CSA.unmass. • “Food with a Face” themes. Fayetteville. • Marketing to groups with social consciences. which have a wide array of products. . • Marketing to individuals who want organically-grown food and who are socially conscious. • Risk shared with consumer CSA members. Great Barrington. The following marketing themes and trends have been found helpful for groups wishing to promote their CSAs: • Connecting farmers directly with consumers. Placier County. • Need to ensure that the meat products sold have appropriate approvals.286 . environmental groups and civic groups. • Seasonal aspects of CSAs are difficult to overcome. • Variables that decrease the likelihood of someone joining a CSA are people with children under 12 years of age and people with teen-agers. May be less choice for consumers than is available at supermarket. etc. PO Box 3657. Making the Connection California Cooperative Extension. to provide consumers diversity throughout the year. • May be difficult to convince consumers they should participate. • Marketing to individuals who are well educated. • If marketing is done prior to planting and harvesting. Auburn. They can’t compete with yearround availability in grocery stores. . such as churches. PO Box 550. CA 95603 200 pages SECTION 3 Marketing Plan .Some of the barriers to entry and other considerations in a CSA are: • Organizing farmers to be part of a CSA. lamb.org • Bio-Dynamic Farming and Gardening Association Bio-Dynamic Farming and Gardening Association. with members generally having a higher level of education. 11477 East Avenue. Education level was found to be a very significant predictor of membership status. MA 01230 www. PA 19442 Phone: (800) 516-7797 • Community Supported Agriculture of North America c/o Indian Line Farm. Following are further resources on CSAs: • Appropriate Technology Transfer for Rural Areas (ATTRA) Appropriate Technology Transfer for Rural Areas. Additionally. • Lower cost per share. this helps to lower risk for producers than many other marketing options. • Lower risk. you may have several farmers who are willing to grow produce and perhaps have other species such as poultry.. eggs. AR 72702 Phone: (800) 346-9140 www. Jugend Road. Kimberton. Box 57. • Ease of facilitation if the group lives close together. • May be difficult to organize with other farmers. since participants share cost with others.edu/umext/csa • Community Supported Agriculture .attra.

org Farmers Markets The USDA estimates there are more than 2.S. the salesperson must orally inform a customer of his/ her rights at the time of sale and provide two copies of a cancellation form and a copy of the contract or receipt. IA 50447 Phone: (515) 495-6367 libland@frontiernet. IA 50011 Phone: (515) 294-1923 80 pages Iowa Network of Community Supported Agriculture (INCA) Jan Libby. 1465-120th St. The product is usually frozen to ensure longer life.org The USDA estimates there are more than 2.org www. in The Legal Guide for Direct Farm Marketing. ISU. direct mail or phone promotions.700 farmers markets in the U. with more than 20.. Door-to-Door Sales Some meat marketers have been successful with establishing a clientele and selling meat directly to the consumer. Des Moines. Bacteria multiply rapidly at about 40 degrees.287 SECTION 3 .• • • • Iowa Community Supported Agriculture: Resource Guide for Producers and Organizers Iowa State University Extensions Sustainable Ag Program. According to Neil Hamilton. 2507 University Avenue. They include: Marketing Plan . Ames. • Make sure the product has been carried in a refrigerated vehicle. show the name and address of the seller and explain the consumer’s right to cancel. The cooling-off rule does not cover sales of $25 or under. Kanawha. In direct sales to consumers.net Legal Guide for Direct Farm Marketing Neil Hamilton.priarienet. consider the following: • Most states require salespersons to have a state-issued license or permit to sell products door-to-door. Agricultural Law Center. IA 50311-4505 Phone: (515) 271-2947 Cost: $20 List serve: CSA-L@prairienet. Farmers markets are typically simple in organization and very straightforward in operation. Drake University Law School.attra.000 farmers selling through the markets.. Marketers often establish the sales through individuals whom they know or customers they have generated through farmers markets.000 farmers selling through the markets. The contract or receipt should be dated.S. with more than 20. • The Federal Trade Commission (FTC) Cooling-Off rule gives the customer three days to cancel purchases made in your home or at a site that is not the permanent place of business or local address of the seller. 2104 Agronomy. The following is a further resource on direct sales: • Appropriate Technology Transfer for Rural Areas www.700 farmers markets in the U.. Under the rule. there are some general features in how farmers markets operate.

288 . Several points to consider include: • The largest portion of your business may come from value-added products.• • • • There will be a set of regulations. which vendors must agree to follow. • Make sure the buyer understands there will be loss of weight during slaughtering. • In pricing. the producer needs to form a good working relationship with the locker or government-approved facility.) Producers need to emphasize that they are local farmers and their products are locally grown and raised. like sausages and other processed meats. Some markets also require vendors to purchase policies specifically for their market activities. For pasture-raised products. “Approaches to marketing – notes from a direct sales survivor. 48-51. (The Legal Guide for Direct Farm Marketing. The following are further resources on farmers markets: • ATTRA ATTRA’s Farmers’ Market publication www. Vendors pay a market fee on a daily or season basis. The most common way this issue is addressed is for the market agreement to require vendors to provide some proof of liability insurance. • Require a deposit before taking an animal to slaughter. so producers with meats have a marketing advantage. (From Klober. Before starting to market. Barbara Lovitt Phone: (515) 281-5402 Freezer Sales For many livestock producers. The customer should be able to easily understand all advertising materials Vegetables are the main items at farmers markets.org • Agricultural Diversification Bureau Iowa Department of Agriculture and Land Stewardship.attra. p. October-November 1998. Kelly. which includes that they agree to follow the rules. freezer meat sales have been the most successful when selling live. page 51.” Small Farms Today. it’s important to have photos displayed showing the clean. green aspect of pasture produced products. Vendors will be required to sign an agreement concerning their participation in the market. because customers like the idea of supporting local small-scale agriculture.) SECTION 3 Marketing Plan . Many markets purchase their own insurance policies to cover some of the potential events. who is responsible for running the market and enforcing the rules. which list the market as an insured party. Freezer sales usually force the producer to become a broker for the slaughtering and processing at a government-approved facility. developed by whoever is sponsoring the market. One of the important issues that can arise in the operation of a farmers market is liability in case of injury or accidents to shoppers or vendors. There is a market manager. be sure to include the cost of handling and delivery to the facility.

Jim Goodman and Brian Boehm. Use heavy foam or corrugated cardboard. Air space in the box will cause the food and cold source to thaw faster.fsis. organic or product with other unique attributes? • Will selling to restaurants fit into your marketing plans? Generally. and do not want multiple suppliers calling on them. selling directly to restaurants often works well. Furthermore. burgers or white tablecloth). • Clearly label your box “Perishable – Keep Refrigerated. and • knowing what types of foods restaurants serve and seeing if you can be a supplier for them.attra. • Do you have enough volume at a competitive price? • Are you featuring a premium product. pack your food gift with a cold source.The following is a further resource on freezer sales: • Appropriate Technology Transfer for Rural Areas www. • What is your sales volume? • Is the restaurant’s menu flexible enough to take other products? This could be a place to move volume depending on the type of restaurant (i.. such as a frozen gel pack or purchased dry ice.org Mail Order Many have found mail order to be an effective way to merchandise meat products. Fill up any empty space with crushed paper or foam popcorn.” The following web site contains further resources on mail order: • www. • linking with chef organizations and attending their meetings and trade shows. have successfully sold products to restaurants. or will the restaurant take frozen product? This will impact how many deliveries you must make. It may also not leave enough high-end cuts. The USDA provides the following food safety suggestions. In establishing a market with restaurants. Boehm and Goodman say you have to displace someone who is already selling. It can take up to seven years to establish good relationships. Have patience. After frozen. such as steaks and chops. such as Sysco or Marriott. all meat that crosses state lines must have been harvested and processed at federally inspected plants. They offer the following pointers and questions for consideration: • Know what type of products you will sell.usda.e. both from Wisconsin. • Use a sturdy box. Perishable foods will stay safe at a frozen temperature longest if frozen solid first. many restaurants buy all their food products from one source.gov/OA/pubs/mailorder. such as sustainable. Ways to establish clients include: • door-to-door calling on restaurants. restaurants want only the best cuts. for your other customers. However. • Pack it safely. It will be harder to move lesser cuts fast enough to supply the restaurants’ needs. • Must all the meat be delivered fresh. • referrals from other chefs. Marketing Plan .htm Restaurant and Institutional Sales When combined with other direct sales methods. The “rules” of direct selling that apply to restaurants are much the same as those for other direct channels.289 SECTION 3 .

• Menus change with customer demand. r. the chefs and the availability of other items. chefs and staff are imperative to have a positive supplier/buyer relationship. Oregon. Brian Brian. • Invite the staff to your farm. Establish your communications so the following procedural issues are addressed: • Does the restaurant call you. the season. Boehm and Goodman recommend that you ask the restaurant when it is a good time to take orders and deliveries. • Goodman. Success rate is rather low. • Insist on feedback. WI (608) 835-0264. • How are payments made? What is your credit policy? • Go to staff dinners. thus demand for your product will change. some of your product will be below the usual high standards. resolve them quickly. • Eventually. • Misunderstandings will occur. Boehm and Goodman say these problems may occur when selling to restaurants: • The restaurant business is very fluid.j. Northwood Farms. good and bad. Boehm. Wonemoc. WI.Communications with the owners. • Staff changes often. (608) 489-2291.290 .goodman@mwt. or do you call someone there? • Is there a regular delivery schedule or is it on an as available/demand? • Determine how problems and complaints can be resolved. Jim Jim Goodman. How will you deal with it? How will the restaurant deal with it? • Can your processor follow your instructions? • Can you keep all your customers happy? The following resources assisted with this section and may be of further help to you: • Boehm.net SECTION 3 Marketing Plan .

A low cost alternative is to rent a kitchen. Events and Festivals Any catering business will require someone with excellent cooking and management skills to run the operation. Much time is spent educating the customer about possibilities for food. halls rented for events. county and/or state health departments. The owner maintains quality control and customer contact every day by operating a catering truck. It is estimated that 70 percent of the business activity is related to business activities of marketing. construction sites. For this type of catering. The mobile catering business is a $5 billion dollar a year business. special events and many other places that do not have kitchens on site. Whatever the type of catering operation started. YES Catering. • skill and expertise to manage and run a food preparation kitchen. bakeries and other contact points for special events. Annual revenues: A few thousand dollars to a few million with pretax profits in the 40 percent of gross revenue range. is an example of what is possible in this business. Many cities require an institutional kitchen be established in a separate area. Health permits will need to be obtained from local. Most locales consider a catering operation a restaurant for health code purposes. movie sets. linens and other staples can be rented. Three Client Groups There are primarily three avenues for catering. located in Indiana. However.000 to build a professional kitchen. pricing and arrangements. • a sales effort to find the accounts. Time until breakeven: Breakeven can be achieved in less than one year depending on the fixed investment. in 18 months a second route was added. and • someone to do the ongoing marketing . Corporate catering takes in Marketing Plan . anniversaries. Financial Information Start-up investment: You can spend from a few thousand dollars to modify an existing kitchen to meet codes up to $75. with a separate entrance. you will need to ensure that the kitchen has been inspected. Kitchen facilities and items such as china. if you do so. Most cities will not let anyone start a catering business from a home kitchen without modifications to meet codes. Social Catering Targets weddings. street corners. based on the woman’s three years of experience working with another caterer. These are sometimes the more challenging events to cater since many people for social events will not have used a caterer before. it will require: • a consistent high quality meat product. such as a garage or basement.291 YES now serves 160 businesses five to seven breakfast items daily along with 18 lunch options. parties and other special events revolving around celebrations. These percentages are the opposite of restaurants. the business will want to network with bridal shops. SECTION 3 . • labor to prepare and deliver meals. Corporate Catering This includes the mobile industrial catering business. Catering allows for a start-up matched to your pocketbook. Going Mobile with Meals: Mobile industrial catering is a business that serves industry. One caterer estimated she kept up to two-thirds of the total revenue from a catering job after paying expenses. serving.Marketing Plan Catering. transporting food. Catering has the reputation for the best profit potential in the food and beverage industry. cooking. The first day the business opened with 13 accounts. churches. while only 30 percent of the effort is food related. such as from a church. eight years later the company has eight routes. clean-up and arranging for help. YES was started by a husband and wife in 1991.

Software is available to help with all aspects of a catering business. Resources Kahn. This site contains several chat rooms related to various aspects of catering. box lunches. How to Start a Home Based Catering Business. Web site is www. nonprofit organizations or other groups. and The Philip Lief Group. Human Resources workers handle such things as safety award and employee luncheons. 2000. usually with one or two people in the business. menu. 3rd Edition. recipe costing and sales analysis assistance.costguard. and are working from a budget. One such software is CostGuard for Windows published by AtYourService Software. Main Street Books. Different departments may need to be targeted. 1998.” 101 Best Businesses to Start.com/in/ yeschartz SECTION 3 Marketing Plan . These public events are a good way to generate publicity about your business. food delivered for noon breaks and other special occasions such as the annual summer family corporate picnic or winter holiday party. The Globe Pequot Press. Community Affairs These include special events hosted by city or county governments. Often the group will need a caterer to provide food and assist with other aspects of the event. Inc. breakfast meetings. the President’s or General Manager’s office handles special events and sales and marketing events for sales staff or customers. service and quality are the main issues and most businesses are experienced in this area. Vivaldo. An excellent Web site for a wide variety of information and assistance about catering is www.com. inventory control. CN. NY. The plant managers or top person’s secretary might also be a starting point. “Catering Events and Festivals. Sharon. New York. Doubleday. This software has food. pp. Guilford. 173189. Price.com.webfoodpros.292 . know what they want. Denise. This type of catering is conducted in a more business like manner. NY. http://webfoodpros.corporate lunches in the boardroom. Soliciting Business A good way to start is to talk with the business receptionist who handles the catering.com http://angelfire. Bronxville..

2 billion or 19 percent.Marketing Plan Catalog and Mail Order Business U. Per capita consumer mail order sales were $685 over a population of 270 million. That represents a 12 percent increase from one year earlier.293 SECTION 3 . women and children and search for goods that are low cost and frequently reordered. business-to-business sales were at $104 billion. however. Deciding what product to sell is the most critical decision in mail order marketing. Mail order opportunities arrive regularly at virtually every household with credit card statements. and accounted for 52 percent of the total. The publication rates mail order as a medium risk business with solid profit potential. Even when adjusted for the inflation rate. How to Get Started Assemble a team of people who have: • persistence • imagination • honesty • knowledge Learn from other catalog operations: • study catalogs • visit other operations if possible • study advertisements for items in magazines.S. accounting for 29 percent. how fast you want to grow and what your product requires.3 billion. Start-up costs depend on how much time and money you want to commit. according to Business Concepts’ Start Your Own Mail Order Business. in mass mailings and even with utility bills. and charitable sales were at $68. When deciding on an item to sell try to develop one or find one that will appeal to all ages. Consumer mail order sales were divided between product sales at $109 billion and services sales at $76. Some experts say that catalog presentation of products is simply mail order at its best.1 billion. mail order sales in 1998 were $357. Look for items that work for men. as advertising supplements in the daily newspaper.) Mail order is a lucrative endeavor for entrepreneurs. (Source: National Mail Order Association. The ideal mail order product: • offers a large profit margin • appeals to broad segment of the population • is lightweight and does not break or spoil Marketing Plan . It offers a high potential with relatively low start-up capital requirements. American consumers are conditioned to shopping by catalog and now receive catalogs for most essential items. Catalogs offer a way for anyone with a viable product or service in demand by consumers to compete successfully with bigger companies. the growth was 10 percent. catalogs and newspapers • learn what your competitors are doing Selecting product is critical. There are some considerations before rushing out to print up that catalog. Consumer mail order sales were at $185 billion.

“healthful” or “pure. • Include a toll free number to call. look at what your competitors are using for pricing strategy. ask for the sale. Price the product to attract customers. Here are some tricks to keep in mind. you will look for stand-out words that meet the needs you’ve identified in your customers. Use proven headline words such as “amazing. all meat that crosses state lines must have been harvested and processed at federally inspected plants.” “revolutionary” and “sensational. in the food business. An ad should get attention through a good headline. As you discover the combinations of variables that yield growing response. • Clearly label your box “Perishable: Keep Refrigerated. After frozen. • Use a sturdy box. • Provide incentive for the customer to order immediately. photographed display ads or both. check the book.. • The food should ideally be shipped overnight. These might include “most flavor. the USDA does have guidelines for storage and shipping of frozen food items that should be followed.but if the business address is your home you should consider possible privacy and security issues.A recommendation is to pick a product that will sell for three to four times what you pay for it. For simple test marketing. However. Many people selling meat products through direct sales have found mail order to be an effective way to merchandise meat products. Again. Develop interest and sell the benefits — sell the smell and sizzle of the meat.” Actually.) • Accept the use of a major credit card . Advertising is critical to success. • Show the benefits and advantages of the product.” For a list of such words. Use two-for-one deals. 2nd edition (New York: John Wiley & Sons. Cohen. Inc. • Deliver a call to action. Perishable foods will stay safe at a frozen temperature longest if frozen solid first. spend a small amount on an advertisement or mailing and check the results. Building a Mail Order Business. that is. (Response to a business address is actually better than response to a post office box . you will begin to get the feel for the right formula to reach your targeted market. pack your food gift with a cold source. Air space in the box will cause the food and cold source to thaw faster. • Use a post office box to maintain privacy.” “bargain. • Build and maintain credibility. Use heavy foam or corrugated cardboard. or one product for full-price and the second for half-price. Testing helps to lessen the guesswork for finding a winning combination.294 . SECTION 3 Marketing Plan .” “quick” or “in seconds” (when dealing with preparation aspects). • Use testimonials or references if available. such as a frozen gel pack or purchased dry ice. You may use print ads. The USDA provides these food safety suggestions: • Pack it safely. Shipping Frozen Foods Whether shipping items sold from a catalog or from items ordered over the Internet. 1985). Fill up any empty space with crushed paper or foam popcorn.” • Ship frozen items packed so that they arrive with ice crystals still visible. by William A.

Marketing Plan . Send a letter of introduction and product brochure to Mark Gaddis. • Families are the target market. While the conversation was directed at another project. Mark Gaddis is head of purchasing for pork and beef items. • USDA and HACCP certifications are absolute requirements. Schwan has grown his business to now include delivery in the 48 continental states plus Canada and Mexico. • All packaging is done at supplier’s plants per Schwan’s specs. Try for early in the week shipments. • Everything handled by Schwan’s is packaged under their name. assistant to Mark Gaddis. Schwan’s does have a catalog they leave with customers who can use it for ordering when they miss the route truck.295 SECTION 3 . selfaddressed envelope for the customer to use to cancel the order. This rule states a firm has 30 days to ship an order once it is received.portions should be of a size that promotes an order by the time the truck returns. you must notify the customer of the new ship date before the original date passes. While this is more than a catalog mail order operation. Since then. Gaddis’ phone number is (507) 537-8688.fsis. The following web site contains further resources on mail order: • www. 3. MN. (Do not send samples unless requested. The general number is (888) 724-9267.• • • Tell the recipient of a promised delivery date or alert the customer if the item has been shipped so someone is there to receive it. Notes The Federal Trade Commission has a Thirty-Day Delivery Rule. at Schwan’s Marshall. the outcome may apply to businesses like yours and is printed here.) 2. Other things learned during the conversation: • The product needs to be unique for it to have a chance of acceptance. The specific question asked was: What is the process for selling products to Schwan’s? The answer was: 1. A meeting will be scheduled or a request for samples will be made – if there is an interest. • Route trucks return to customers every two weeks . who was not satisfied with the market he was receiving for his milk products. A Conversation with Schwan’s… In early March 2000. but not a requirement and not always an advantage. The brochure will be reviewed by the buyers. • Schwan’s picks up its own products from the suppliers.gov/OA/pubs/mailorder. In the notification to the buyer you must include a stamped. Marvin Schwan.usda. Do not send packages at the end of the week when they may sit in a post office over the weekend. • Precooked is fine. a member of the team authoring this manual spoke with Julia Handeland. headquarters. If you can not ship within 30 days or by your stated shipping time.htm An Example of Opportunity Schwan’s is a Minnesota-based company that started in 1952 with a farmer. Do not send to a business address unless you are sure a refrigerator is available for immediate storage of the product.

New enterprises might wish to visit some of the Omaha Steak stores to become familiar with products. Most of the products it carries are beefsteaks. 1994. For Additional Information Check the National Mail Order Association homepage at http://www. the gift giving business offers significant opportunity to market high end products.” Business Concepts.sba. In 1952. References “Mail Order Marketing” http://www.nmoa.296 . displays and methods.com “Starting A Mail Order Business. Omaha Steaks built an inbound call center. Other Opportunities to Explore Omaha Steaks The company was started more than 80 years ago as Table Supply Meat Company: a Meat Wholesaler in Omaha.smartbiz. giving customers a quick and toll free way to order.to medium-sized companies in the area. In 1991. The company changed its name to Omaha Steaks International in 1966.Gift Giving In addition to the catalog sales. the company began the mail order business. • Explain that you ship all your product next day delivery – then be able to do it.gov http://fsis. • Explain that you are able to supply a high quality gift item for them to give to employees or valued clients. In 1975.usda. the company went on-line at http://www.omahasteaks. fax (402) 593-4230 Stock Yards Stock Yards is a small Chicago-based company.org/ for all kinds of great tips about mail order. • Omaha Steaks Phone: (402) 331-1010. • Show how and why the company will benefit by giving your product. owner or human resource director. • Schedule a meeting with the plant manager. Contact: Nicole at (800) 621-3607. Experts say the best approach for these types of markets is to: • Pick profitable small.com. http://www.gov SECTION 3 Marketing Plan .

a slotting fee is paid in order to gain access to shelf space. Then there are requirements for dollar volume that goes through that space in a certain time. To break into the retail market. In today’s market place the consumer is king. One of the key considerations for doing business with a retailer is meeting his/her gross margin goals. and the final interface with that consumer is the retailer for at least half the meat consumed in this country. considerations for doing business with a retailer is meeting his/her gross margin goals. This can be a problem when you are supplying a value added product such as pre-cooked or case-ready meat items. If it is a chain operation. Their belief is that the retailer is taking too big a cut for his action. It is important to note several often forgotten points about the retail market. Marketing Plan .297 SECTION 3 . you will make the sale at several points because you will need full buy-in at the store level as well as within the appropriate division management of the store. Ultimately. This can be a problem when you are supplying a value added product such as precooked or case-ready meat items. you may deal at a regional level and then also with specific stores. One of the key To successfully enter this market.Marketing Plan Working with Retailers The so-called farm to retail spread is often a sore point for producers. you will deal first with top management. You may find your product over-priced if the retailer applies his 25 percent markup to already value added product. These fees are charged because the retailer is trying to realize a specific percent margin on the gross dollar throughput.

298 .SECTION 3 Marketing Plan .

be sure to clarify the terms of the sale. Most buyers would like to receive a call in which you clearly state your intentions. price. they like to see in writing what products you have to offer and at what prices. If at any time you cannot meet the terms of your agreement with the buyer. It will be pure luck if you nail a big sale on your first try. Rehearse. When your product is known and you are assured you can meet the quality and volume needs. 7. Don’t just drop a product on the buyer’s desk – deliver an answer. • First. Familiarize yourself with the market.” Let them know you are calling with the intent to provide a great product. By the time the buyer picks up your call. Talk with other producers who are already operating in your general market. he or she may already have another one waiting. Initiate contact with a telephone call. Basic Steps to Set Yourself Up for a Sale • • • Call. Select an appropriate market for your capabilities. (Some buyers may ask you to send written material to review before setting up an appointment.) Marketing Plan . These include the production characteristics that distinguish your products from others. 5. keep in mind that most buyers like to see two sets of materials. If targeting restaurants or stores. Know your costs of processing and transportation. Review the exact item(s). you can approach other buyers and larger volume accounts. notify him or her as early as possible and be prepared to help the buyer meet commitments. Clarify the details of the business relationships. Prepare written materials.299 SECTION 3 .” Ask: “Could I please speak to your meat buyer. • The second type of written materials that most buyers like to have is a brochure that will help them sell your product to their customers. Get a sense of the products demanded by that market. Deliver what you promise. Setting up an appointment will assure you have his or her time and attention. This type of point-ofsale material should positively outline the characteristics of your meat for customers – who may need some explanation of the advantage of your product over others. 6. This sheet should also summarize the claims and characteristics of your meat in an easy to read and attractive manner. 3. Never just “drop in” on a buyer. 4. volumes. Ask when might be a good time for you to come and talk about your product. Professional salespeople often have a 50-. Try first to establish yourself with a buyer and a specific market that you are 100 percent certain you can supply and satisfy. 2. 100. potential level of interest and typical prices offered. Learn from each attempt. Promise only what you are sure you can deliver and then follow through. If a buyer expresses interest in buying from you. Never grow angry or stop asking questions about what you can do to help your buyer meet his/her needs.and 200-word explanation of their products ready to be delivered.Marketing Plan How to Approach Buyers Many buyers spoken with in this and other recent studies by the manual authors were willing to purchase directly from producers – if producers are able to deliver a product preferred by their customers. 1. Several of them had the following suggestions. Be persistent without being a pest. delivery date and conditions and any other requirements. Give your name: “This is Lynn Doe from Anytown.

” Once you have your foot in the door. say.300 .” Thank them if they say. SECTION 3 Marketing Plan . Or. keep it open for the next time. “Thank you!” Thank them if they say. Whatever the outcome. ask: “Can I send product brochures and some information about our quality?” Ask if the buyer wants you to bring samples.• • • • Ask if you can send information ahead of time. “No. in case of a negative response regarding a meeting. (Any particular cuts?) Find out if there are new products you can show them. “Yes.

did no contracting or less than 5 percent of their contracting with small business. The basics include definition of products.” With no business history. Program Manager Phone: (800) 458-4465 Coney’s staff can work with your group on an individual basis. this is an opportunity based on e-commerce. Although well defined. The breakfasts provide networking opportunities with other companies. Nineteen percent of the centers. product sizes. once procured almost exclusively from small business. How to Get Started It is recommended that producers visit the State of Iowa procurement office for assistance in getting started on the federal procurement system. The review looked at contracts over $25. were health services.235 federal procurement centers on their levels of procurement from small businesses during fiscal year 1998. The first site to visit is the Central Contract Registration (CCR) site. shipping and delivery. Marketing to the federal government is a series of well-defined tasks. but a much smaller amount. To be a successful government contractor requires Internet capability. a start-up business will have trouble meeting this criterion. Some are done one time and some are done on a repeat basis. Some contracts have a selection criterion to meet called “past performance. The CCR is the primary Marketing Plan . the business must price the product competitively and be prepared to package and ship according to very specific requirements. Central Contracting Registration (CCR) After contacting the Iowa center. the government spent $181. What does this mean for you? Marketing to the federal government is a series of well-defined tasks.2 billion.000. Janitorial and commissary services. ranks 2. and they sponsor sessions about how to get started with government contracting. Some are done one time and some are done on a repeat basis. the start-up business probably should not consider government contracting until the basics of business have been well established.000. Next. The contact is: • Iowa Procurement Outreach Center (CIRAS) Iowa Procurement Outreach Center (IPOC). These factors all should be outcomes of your business planning process and development of a written plan. Procurement was concentrated in engineering and management services. are no longer the domain of small business. business services. 419. electronic equipment and transportation equipment. A study of federal procurement sites. bookkeeping. a business needs to begin the registration process on the Internet. Small business received just 18. In FY 1998. pricing.7 billion for goods and services in prime contracts over $25. Bruce Coney. and marketing. The Iowa procurement unit sponsors monthly contracting networking breakfasts in Des Moines and Iowa City and is also considering expanding these events into Council Bluffs. For most of the federal purchasing agencies. The study revealed the centers spending the most on contracts did the least amount of spending with small contractors. general construction and real estate services.Marketing Plan Federal Procurement The federal government is a marketing possibility for any small business.3 percent of the total awarded or $33.301 SECTION 3 . to be successful in selling to the federal government. which was carried out by Federal Procurement from Small Firms. Like all other marketing opportunities.

The database contains trading partner information relevant to procurement and financial business transactions. The regional contracting office nearest Iowa is: • North Central Regional Contracting Office Tony D. as a starting point and offers information about the book. Government agencies as well as prime and subcontractors can use the database to identify potential suppliers. colleges. The Small Business Administration (SBA) has two programs to assist with government procurement opportunities.database for information about trading partners who would like to do business with the Department of Defense. SECTION 3 Marketing Plan . both perishable and non-perishable.pronet. KA 66101-2492 Phone: (913) 551-1067. Prime contractors use this system to post subcontracting opportunities.gov The Bureau of Prisons also buys food products. Signing up here will allow you to do business with anyone in the federal government. To get started with CCR registration. Justice buys over $2 billion in goods each year. PRO-NET is a program of the SBA that is an electronic gateway of small business procurement information. http://www. Registration at this site also allows trading partners to avoid registration with multiple procurement offices. It suggests reading a book.ccr2000.com/html/getstarted. Small businesses can review this Web site to identify opportunities in their area of expertise. Selling to the Military Handbook. Registration with CCR is important because the entire federal procurement system is moving to the use of the system. Government agencies. 400 State Avenue. Another SBA program is SUB-NET. state and local governments also use the Web site for listing procurement needs. It is an Internet data base with information on more than 170.bop. Hiscocks. agency homepages and other procurement opportunities. The web site address to get started is: http://www. The system also serves as an electronic gateway to the Commerce Business Daily. The process to request a number is free of charge and takes about 10 minutes.000 women and minority owned businesses.html This site provides helpful information on getting started with opportunities in selling to the military. This office has the responsibility to give contracts to small.gov The Department of Justice has an Office of Small and Disadvantaged Business Utilization. universities. This means that being listed in the CCR directory will give you electronic visibility to government buyers you have not yet met. Regional Chief. small women owned and small disadvantaged businesses. Gateway Complex Tower II. Kansas City.302 .com Another web site is: http://dodbusopps. Each prison is responsible for buying its own products as are six regional offices and various training centers. The number can be obtained by calling Dunn and Bradstreet at (800) 333-0505. The Web site address: http://www. you must have a Data Universal Numbering System (DUNS) number. 8th Floor. CCR provides worldwide visibility to government buyers and finance officers for the purpose of streamlining contract awards and payments.sba.

Once she did and supplied the product in a satisfactory manner. expect not to receive an award. Key Factors to Success in Government Contracting 1. One Iowa woman-owned business worked for seven years to win a contract bid. When you do respond. Agriculture Marketing Service (AMS) purchases meat products for the National School Lunch program and other Federal Assistance programs. One reason for this is bid solicitations may call for past performance information. Do not fail to respond. S. A visit to that Web site will provide a catalog to view information on how to sell products to the USDA and purchase reports.dla.The Web address is: http://www. 2.303 SECTION 3 . A new start-up may be much less successful receiving an award until it has had at least one year in business. Defense Supply Center Philadelphia: www. You must utilize the Internet for government contracting. 5. She now supplies product to PXs all over the world. 4. Have your basics of business.gov/jmd/osdbu/ The U. Go to any government procurement seminars offered and meet the federal purchasing agents present. delivery and production well established before attempting government bids. Research the Internet.mil This center purchases food service items. Respond to any solicitation for a bid from a government office.usdoj.dscp. Marketing Plan . Network. Be persistent.htm Other Web sites that provide information for government contracting are: Electronic Posting System: http://www. Order any solicitation for products and review it to see if you should respond. 6.eps. she continued to receive awards.ams. 3. The Web address: http://www. product. pricing. especially when you are just starting out. Department of Agriculture (USDA). Work with the procurement technical assistance centers to get started.usda.gov/cp/index.gov This site is a link to procurement opportunities.

304 .SECTION 3 Marketing Plan .

In the most active markets. respectively: California. New Jersey. Virginia.5 million Jews throughout the world.S. some consumers are drawn to eat halal and kosher foods simply because the label designations carry the connotation of quality and wholesomeness. are. Although estimates of the total number of Muslims in the world vary greatly. Each of the terms is applied to meats. Halal is a comprehensive Islamic term that means “lawful” regarding matters of food. Kosher (kashur in Hebrew) means “fit or proper for use” according to Jewish law.) Certification under either of the special food labels typically includes an inspection of the production facility.3 million Muslims in these states. Information regarding kosher and halal products and their markets can be found through the following sources.” The states with the 10 largest Jewish communities in the U. review of sanitation. Pennsylvania. The third largest Jewish community is 600. drink and daily life.Marketing Plan Halal and Kosher The terms “halal” and “kosher” refer to foods that are specially processed and prepared according to the customs and beliefs of members of the Muslim and Jewish faiths respectively. There are also special processes that must be followed regarding how the animal is slaughtered and processed.S. Ohio and Texas. Illinois.000 Jews living in France. ingredients and labels. For the beef merchandiser. California. Maryland. Some estimates peg the Muslim population in the United States as high as 5 million persons. fruits. Florida. New York. or between 19 and 22 percent of the world’s population. it is generally agreed that the figure is somewhere around 12. There are an estimated 3. Texas. Livestock must be inspected and prepared by a qualified specialist to ensure rigorous standards have been met. the largest community is 5. with premiums rising to more than double the cost of other meats. kosher and halal meats can be priced even higher. Illinois. The states with the 10 largest Muslim communities in the U. New Jersey. foods must pass inspection by an agency or individuals authorized by the hierarchy of the faith related to that label. Massachusetts. Ohio and Maryland. The second largest group is 4. halal and kosher foods may translate into lucrative niche markets. According to a 1998 survey by the World Jewish Congress. An estimated 5 million persons of Jewish faith live in these states. (Although the label requirements are similar and often confused in the marketplace. vegetables and other food items. are. respectively: New York.305 SECTION 3 . In addition to attracting buyers because of their religious faith. Indiana. Where in demand. As stated by the report from the World Jewish Congress: “Of these.3 billion persons.9 million Jews living in Israel. Marketing Plan . Michigan. there are 13. and training of company personnel in understanding and meeting specific label requirements.6 million Jews living in the United States. Before being declared as kosher or halal. kosher and halal packaged foods tend to carry a 10-25 percent premium over non-certified counterparts. discriminating buyers may demand that kosher and halal be treated as separate entities by the processor.

11 Broadway.ou.org/ E-mail: kosher@ou.Halal • Islamic Food and Nutrition Council IFANCA.htm E-mail: comments@ifanca.ifanca.org/ http://www. Suite 309.us-israel.islam101. NY 10004 Kosher hotline: (212) 613-8241 www. 5901 N.ifanca.org/halal.com/history/population2_usa.org/jsource/US-Israel/usjewpop.306 .org Kosher • Union of Orthodox Jewish Congregations of America OU. Chicago. Consultant and Market Research Reports http://www.ou.org Resources USADATA.html http://www. IL 60646 Phone: (773) 283-3708 Fax: (773) 283-3973 www.usadata.htm http://www.htm http://www.com/market_research/sml_00/sml_771. Cicero.org/halal.html SECTION 3 Marketing Plan .com. New York.

healthy. progeny guarantees and source verification. Breed specifications at the packer end point frequently include grade consistency. Breed and/or branded marketing serve to reinforce the message that the consumer demands are the priority. The focus is on a strategic list of specifications targeting an end product that meets special needs or desires of the processor or consumer – or both. The relationship with breed marketing sometimes comes into play when claims about the special traits of a particular breed of cattle are dynamically coupled with claims that the livestock have been raised without hormones or antibiotics in an effort to gain still greater consumer favor. taste-satisfying and consistent eating experience that promotes repeat purchases. • provide the processor with a consistent product that flows through the operation. For the producer. both direct and indirect? What are the fees for joining and participating? • What kind of market target do my cattle fit? Breed Marketing Each of the cattle breed associations involved in marketing works to establish its own unique consumer oriented claim to fame. Branded Marketing Branded marketing might be seen as either separate from breed marketing or related to it.” “tender” or “lean and tender” seem to be the most frequent eating-satisfaction claims. these initiatives represent tried and true methodology spiced up with a few new twists to serve the needs of the participants in the modern day beef marketplace. and • provide the consumer with a convenient.” “natural” or “naturally fed” are claims that are frequently associated with branded marketing efforts. narrowed weight parameters. What kind of information does the system provide and will it help me in my enterprise? • Can I access new technology in the system? If new technology comes along.Marketing Plan Breed and Branded Marketing There is nothing new about using breed advantages or special brands to establish a unique market identity. As with most marketing concepts. “All-natural. Harlan Ritchie of Michigan State University offers these questions to ponder when considering alliances or breed programs: • What can I gain from the system? • What parts of my business are weak that a coordinated system could help? • Can I get information from the system? This would include everything from overall management to herd health to feeding and carcass data. does the system have it or can I get it? • Can I get financing in the system? • Can I intensify my management and focus just on the parts of my business in which I’m good? • What are the costs of joining the system. “Lean. sifting through the wide variety of coordinated production and marketing system relationships that have resulted from the upsurge in the use of breed and branded marketing techniques can be a bit like searching for a needle in a haystack. There are three primary goals of breed and branded marketing: • produce an animal that brings a greater rate of return on investment.307 SECTION 3 . Marketing Plan .

(712) 769-2641 FAX: (712) 769-2610 E-mail: x1hall@exnet.S. MO 64153 Phone: (816) 891-2300.com/ • U. Inc. • Precision Beef Alliance Precision Beef Alliance. it keeps you out from under the steamroller backlash of the dominant industry players because you are not just replacing business they had. Futuristic? Strategic alliances represent strides toward a true value-based marketing system.com www. Here again.com/ • Coleman Natural Products.uspremiumbeef. Meat case products labeled as “certified premium” or “farmers choice” might be considered examples of this type of branded product. Denver. brand and method of production. This strategy is especially strong with local restaurants in the middle to upper clientele range. you are possibly creating new customers for beef or bringing lost customers back. (316) 767-7041 FAX: (816) 891-2310 www. Lewis.S. Premium Beef U. New Niches In a world that responds favorably to choice. breed designation may or may not be part of the claim. Kansas City. The nature of this impact is difficult to determine but it seems clear that more and more cattle are being placed into the marketing system via these alliances. Lexington..com www. going against the old commodity model may be a very smart idea.308 .precisionbeef.Another branch of branded marketing includes beef marketed through closed cooperatives and other forms of alliances and limited partnerships.iastate. 10100 NW Executive Hills Blvd. Coleman Natural Products.com SECTION 3 Marketing Plan . Suite 105. Premium Beef. KY 40505 Fax: (606) 299-6822 E-mail: customers@llbcorp. In addition. 2285 Executive Drive. Suite 200. where they frequently give meat items center-of-the-plate status based on the cache of breed. 53020 Hitchcock Ave. Producer and processor participation with breed and branded marketing groups will surely impact the beef market in the future.com/ • Laura’s Lean Beef Company Laura’s Lean Beef Company...laurasleanbeef. CO 80216 Phone: (800) 442-8666 www. 5140 Race Court.edu. Inc.colemannatural. The following represents a cross section of the types of producer alliances now available. IA 51544 Phone: (712) 769-2640. hdevorepetty@hotmail.

Missoula.gelbvieh. Box 656. Westminster. P. MO 64079 Phone: (816) 431-2808 • American Dexter Cattle Association American Dexter Cattle Association.org • American Hereford Association American Hereford Association. Box 014059. Suite 200. Box 307. (800) BEEFALO • American Belgian Blue Association American Belgian Blue Association. 310 West Spruce. CO 80216 Phone: (303) 292-9102 FAX: (303) 292-9171 Marketing Plan .. Joseph. P. 10900 Dover St. KY 42501 Phone: (606) 678-5438. Platte City.gelbvieh.O. MO 64506 Phone: (816) 233-3101 FAX: (816) 233-9703 • American Beefalo Association American Beefalo Association. Kansas City. Livestock Exchange Building. St. MO 64020 Phone: (816) 463-7704 FAX: (816) 463-7704 • American Galloway Breeders Association American Galloway Breeders Association. Route 1.. Denver.O. Box 890.309 SECTION 3 .org/~aga E-mail: aga@www. Concordia.O. • American Angus Association American Angus Association. some of which offer marketing programs. Somerset. MO 64101 Phone: (816) 842-3757 FAX: (816) 842-6931 • American Highland Cattle Association American Highland Cattle Association. Kansas City.. P. Box 12341. CO 80021 Phone: (303) 465-BEEF FAX: (303) 465-2339 www. 1313 La Concha Lane Houston. Sulfur Springs.O.Following is a listing of beef breed associations. Box 378. MT 59802 Phone: (406) 728-5719 FAX: (406) 721-6300 • American Gelbvieh Association American Gelbvieh Association. TX 75482-0307 Phone: (903) 885-2275 FAX: (903) 885-2464 • American Blonde d’Aquitaine Association American Blonde d’Aquitaine Association. 4701 Marion St. MO 64116 Phone: (816) 421-1305 FAX: (816) 421-1991 • American Brahman Breeders Association American Brahman Breeders Association. 3201 Fredrick Blvd. P. TX 77054 Phone: (713) 795-4444 • American Chianina Association American Chianina Association.

3995 E. 21555 St.. TX 77805 Phone: (409) 260-0300 FAX: (409) 846-4945 Ankole Watusi International Registry Ankole Watusi International Registry. Box 4071. North Kansas City. NE 68124 Phone: (402) 393-7200 FAX: (402) 393-7203 American Tarentaise Association American Tarentaise Association. Box 34705. Omaha. Jenera. 8288 Hascall St. OH 45841 Phone: (419) 326-8711 American Red Brangus Association American Red Brangus Association.O. KS 66083-9306 Phone: (913) 592-4050 WATUSI@AOL.O.. Kansas City. P. 7383 S. Spring Hill. TX 78620 Phone: (512) 858-7285 American Romagnola Association American Romagnola Association.698. 1 Simmental Way. Box 20247. Bryan.COM Marketing Plan . Rt.O. Dripping Springs. Bozeman. MO 64102 Phone: (816) 474-9555 FAX: (816) 474-9556 AmericanMurray Grey Association AmericanMurray Grey Association.O. Suite 103. Box 34590.. P. CO 80112 Phone: (303) 770-9292 Fax: (303) 770-9302 American Simmental Association American Simmental Association. 2000 Flagstone Rd. Kansas City.• • • • • • • • • • • • American-International Charolais Association American-International Charolais Association. P.310 SECTION 3 .Englewood. Reno. MO 64195 Phone: (816) 464-5977 FAX: (816) 464-5759 American Maine-Anjou Association American Maine-Anjou Association. MO 64116 Phone: (816) 421-1994 FAX: (816) 421-1991 American Pinzgauer Association American Pinzgauer Association. MO 64116 Phone: (816) 421-1993 FAX: (816) 421-1991 American Wagyu Association American Wagyu Association. North Kansas City. P. Alton Way. Highway 290. 239 St. MT 59715 Phone: (406) 587-4531 FAX: (406) 587-9301 American Shorthorn Association American Shorthorn Association. NV 89510 Phone: (775) 475-2333 FAX: (775) 475-2697 American Salers Association American Salers Association. 22484 W. 760 Livestock Exchange Building.

• • • • • • • • • • • • • Barzona Breeders Association of America Barzona Breeders Association of America.. San Antonio. Denver. P. Suite 290 West. Mid America RX3 Cattle Co. HC 75. CO 80237 Phone: (303) 770-0144 Marketing Plan . CO 80216 Phone: (303) 294-0847 International Beefalo Foundation International Beefalo Foundation. Denver. Box 696020. 108 Livestock Exchange Building. Box 1402. P. SD 57785 Phone: (605)347-3319. Box 486. 4701 Marion St. 6800 Park Ten Blvd. Denver. P.. 100 Livestock Exchange Building. FL 34278-6111 Phone: (813) 388-2258. TX 78540 Phone: (210) 318-3991 Mid America RX3 Cattle Co. P. Bells. Box 158.. Topeka. CO 80216 Phone: (303) 295-7287 North American Corriente Association North American Corriente Association. #3000.. (800) 533-2374 FAX: (813) 388-1790 Braunvieh Association of America Braunvieh Association of America.O. TX 78269-0771 Phone: (210) 696-8506 International Zebu Breeders Association International Zebu Breeders Association. Box 1454..O.O. P. Edinburg. San Antonio. Kenyon Ave. TX 75414-0281 Phone: (903) 965-7718 Foundation Beefmaster Association Foundation Beefmaster Association. San Antonio.O. Sturgis.O. 9101 E.O. Prescott. Sarasota. P. P. Box 631. TN 37133-0486 Phone: (615) 893-1005 International Brangus Breeders Association International Brangus Breeders Association.O. TX 782696020 Phone: (512) 696-8231 FAX: (512) 696-8718 International Red Brangus Breeders Association International Red Brangus Breeders Association.311 SECTION 3 . 4701 Marion St. P.O. Murfreesboro. TX 78213 Phone: (210) 732-3132 Belgian Blue Association of America Belgian Blue Association of America. Box 690771. KS 66601 Phone: (913) 234-9595 British White Cattle Association of America British White Cattle Association of America. Box 6111. AZ 86302 Phone: (602) 445-5150 Beefmaster Breeders United Beefmaster Breeders United. Box 281. (800) 215-0763 FAX: (605)347-2207 Piedmontese Association of the United States Piedmontese Association of the United States.

redangus1. 422 East Main. P. Madrid. Hibbing. 11538 Spudville Rd. IN 46975 Phone/FAX: (219) 223-5418 World Watusi Association World Watusi Association.edu/~scomstoc/breeds/assoc. 4201 I-35 North. TX 76207-3415 Phone: (940) 387-3502 FAX: (940) 383-4036 www. 419 North Water St. Fort Worth.sgbi. Kingsville. NE 69339 Phone: (308) 665-3919 Resource http://ops. Suite 100. Denton.agsci. Box 523. TX 75961 Phone: (409) 569-8200 FAX: (409) 569-9556 White Park Cattle Association of America White Park Cattle Association of America. Englewood. Rochester. Alton Way.O. Box 1257.org Santa Gertrudis Breeders International Santa Gertrudis Breeders International.html SECTION 3 Marketing Plan . TX 78363 Phone: (361) 592-9357 www. Co 80112 Phone: (303) 220-1693 FAX: (303) 220-1884 North America Normande Association North America Normande Association. CO 80112 Phone: (303) 770-3130 Red Angus Association of America Red Angus Association of America. 7383 S.. 7383 South Alton Way. O. MN 55746 Phone: (218) 262-1933 North American South Devon Association North American South Devon Association.colostate.org/~sgbi Texas Longhorn Breeders Association of America Texas Longhorn Breeders Association of America. IA 50156 Phone: (515) 795-2013 • P. 2315 North Main St. Crawford.312 . Box 14..org E-mail: info@redangus1. Nacogdoches. Suite 218.. TX 76106 Phone: (817) 625-6241 United Braford Breeders United Braford Breeders. Suite 401.• • • • • • • • North American Limousin Foundation North American Limousin Foundation. Englewood.

Inc.S. export markets for hides and skins accounted for about 80 percent of the total in 1999. South Korea with about 12 percent. Some companies begin export activities haphazardly without carefully screening target markets or options for market entry. Enid. where they are located and the variety of world demands and destinations. Meat Export Federation provides some idea of who is participating in the global beef marketplace. a company may be misled into abandoning exporting altogether. US. the diversity and size of the global marketplace also provides a great opportunity for niche market opportunities. they most likely have overlooked better export opportunities. (Source: U.313 SECTION 3 • . Mexico with 16 percent.. the top five export markets for beef accounted for almost 93 percent of total exports. U. TX 78216 Phone: (210) 525-1101 This trading company exports beef. followed by Taiwan with 17 percent. packers. Agri-West International. 201 S. export market.S.S.gov/agexport/ exporter. pork and lamb to Mexico. The major drivers of beef demand by consumers worldwide are: • safety of the product • quality and taste • health benefits and nutritional factors • ease of preparation and convenience The Foreign Agricultural Service (FAS) division of the United Stated Department of Agriculture (USDA) emphasizes that the best way to achieve export success is to formulate an export strategy based on solid information and sound assessments.S.fas. Dept.Marketing Plan Foreign Markets A complete search for ways to forge connections between producers and consumers requires the consideration of foreign as well as domestic markets.S. consumers. the Philippines. Japan. export market for beef. followed by Mexico with 17 percent. and Taiwan with 2 percent. China with 9 percent. The top five U. If early export efforts are unsuccessful because of poor planning. Raleigh Road. Industry & Trade Outlook 2000. Japan was the largest U. point-of-production or processing. The FAS Web site at http://www. new to exporting. of Commerce.S. San Antonio. While these companies may have a measure of success. Marketing Plan . Canada with 10 percent. Korea was the largest U. and Japan with 8 percent.html is designed to guide U.) While a large share of the export business is clearly handled by the major U. 511 West Rhapsody. Agri-West International. accounting for about 31 percent of the total. Korea. Aside from being farther away from the U.S. Grand Cayman and Aruba. Taiwan. In 1999. Meat Export Federation Exporting Packer Profiles • Advance Food Company Advance Food Company. through the information gathering and assessment process that is needed to develop a successful export plan. A review of a partial list of the packer-members of the U.S.S. Inc. OK 73701 Phone: (580) 237-6656 This establishment is Russian approved .usda. accounting for 52 percent. food and fiber companies. foreign consumers make beef purchasing decisions with the same things in mind as U.S.

Fair.. Japan. TX 75207 Phone: (214) 747-9606 EU-approved plant produces specialty beef and pork cuts manufactured. Singapore. the Philippines.. 3548 N. 10 Alload.. chicken and variety meats to Japan. Korea.. Molette St. Buena Park. 13055 E.. TX 75142 Phone: (214) 932-3436 This establishment is EU approved for muscle meat. WI 54308 Phone: (414) 436-6484 This establishment is EU approved for tongue. Green Bay. Day-Lee Foods. Taiwan. Bulgaria and Poland. Singapore. Dallas. Cateret. Taiwan. liver and stomach only. Inc. Inc. chuck rolls. Egypt. 400 Port Carteret Dr. Caribbean. Inc. Custom Meats Corporation Custom Meats Corporation. packaged and labeled according to customer specifications. fore and hind shanks. NJ 07008 Phone: (732) 541-0200 Crescent Foods is trader of beef.. Kostner. Santa Fe Springs. is a 2-year-old trading company specializing in frozen. heart. and pork bellies. The Bruss Company The Bruss Company. Korea. 3101 S. Inc.. Alload. Its major export markets are Germany. CA 90621 Phone: (714) 521-2000. Singapore and Hong Kong.. CA 90670 Phone: 562-802-6835 A purveying and trading company. Inc. veal and lamb. kidney. Korea. South Africa. Omaha. 24th . Inc. #215. pork. Kaufman. Green Bay Dressed Beef Green Bay Dressed Beef . Day-Lee Foods exports beef. Alload. Philadelphia. Hong Kong. Crescent Food Sales. Chicago. Columbus Blvd. Inc. Custom Meats is active in the European market. Bell Export Food Groups Bell Export Food Groups. Hong Kong.. 544 Acme St.314 .• • • • • • • • • AK-SAR-BEN AK-SAR-BEN. grain-fed choice and select short ribs. It currently exports to South Korea and hopes to expand its business in this particular market. Dallas Crown. Pier 19 N. Dallas Crown. 1802 Levee St.. Crescent Food Sales. PA 19106 Phone: (215) 829-9090 It currently represents six meat companies on the East Coast and exports to the EU.. pork. 6280 Manchester Blvd. 325 N. Russia. the Caribbean and the Middle East. Inc. 2000 W. SECTION 3 Marketing Plan . Denmark. ext. Inc. Day-Lee Foods. NE 68108 Phone: (402) 341-8720 This plant is halal certified. IL 60641 Phone: (773) 282-2900 This establishment is EU approved for muscle meats.

WA 98101 Phone: (206) 628-3750 The company specializes in chilled beef and pork and frozen processed meats along with a variety of other food products. TX 77251-1449 Phone: (713) 229-8000 Freedman Food is a full line distributor of meat products and a purveyor of portion food products. portion-controlled beef and pork products. E. Boyd & Associates. Russia and the Caribbean. Russia. Kansas City. Emerald International currently exports to Japan. Exton. Houston.. P. Box 1449.. Boyd & Associates. NC 27624-9189 Phone: (919) 846-8000 Currently. FL 33021 Phone: (954) 981-1770 ESS-Food USA. and Kobe. John Robert Thomas Dr. Mexico. Ellison Meat Company Ellison Meat Company. Inc.315 SECTION 3 . Inc. Wichita. Mexico. ESS-Food USA. It operates offices in Aalborg. Ellison exports to Japan. Mexico is its primary export market. 1218 3rd Ave. Box 99189..O. Inc. Europe. Moscow. Inc..O. Dubai. Raleigh. P. UAE.• • • • • • • • • Eastern Food Exporters Eastern Food Exporters. Hong Kong.O. P. 100 W.O. Pipestone. Suite 103. GA 30075-3090 Phone: (770) 643-1213 The Emborg Group is involved in the retail.. Hamburg. Germany. Europe. Farmland Foods.. Suite 420. foodservice and commodity sectors of the food business supplying meat.. Box 1299. is an importing and exporting trading company handling frozen pork and beef cuts and by-products.. KS 67201-2519 Phone: (316) 291-2500 Farmland Foods. Emerald International Trade. Russia. Taiwan. 4601 Sheridan St. Inc. Box 2519. Thailand and Korea. Suite 1620. and East and Southeast Asia. Inc. Japan. Ltd. Inc. Seattle. Excel Corporation Excel Corporation. Russia and Korea.. Its current export markets are South America. ESS-Food USA. Boyd & Associates. Inc. China. Emborg Foods USA. Roswell.. P. E. seafood and vegetable products to international markets. 110 Crabapple Road.. Inc. 10150 North Executive Hills Blvd. Inc. Inc. Denmark.. Emerald International Trade. Hollywood.. This plant served as a model facility in implementing USDA’s HACCP program. Inc. 1401 Sioux Dr. is exporting to Australia. Freedman Food Service. PA 19341 Phone: (610) 594-5000 Eastern Food Exporters is exporting beef and pork to Canada. E. dairy. Marketing Plan . MN 56164 Phone: (507) 825-5486 The company specializes in frozen. Emborg Foods USA. 151 North Main St. Hong Kong. MO 64153 Phone: (816) 891-1200 Freedman Food Service. Caribbean and Eastern Europe.. Ltd.

. Argentina. Ltd. TX 78570 Phone: (956) 565-6363 Product lines include processed beef products. Russia. Bahamas and South Korea. Inc.. Inc. Granpac Foods. CA 93662 Phone: (209) 896-3081 This establishment is halal certified. Global Marketing Associates 6445 Powers Ferry Rd. Saudi Arabia. NE 68110 Phone: (402) 455-6225 Shenson first exported beef to Japan in 1968. is a certified ISO 9001 facility. ext. (ITC). H & H Meat Products Co. OR 97203 Phone: (503) 286-6548 Granpac Foods. Inc. NJ 08512 Phone: (609) 655-2500...O. Granpac Foods.316 SECTION 3 . PA 19148 Phone: (215) 334-9284 Frontier Foods International is a trader dealing in beef products. slice ready and sliced red meat cuts for export to the food service industry. This establishment is halal certified and is approved for export to Malaysia. This establishment is halal certified. H & H Meat Products Co. particularly oriental food type products for the Japanese market. Suite 220.. Hanwha International Corp.• • • • • • • • • Frontier Foods International Frontier Foods International. Marketing Plan .. (Corporate Headquarters). IBP. portion control products and fully cooked charbroiled and breaded products. This establishment is halal certified. 100 Packer Ave.S. (800) 284-3242 International Trading Co. P. Inc. Inc. Philadelphia. It exports to Eastern Europe. including beef and pork products. produces value added meat products. H&H exports to Mexico and Korea. H. Atlanta. 800 Stevens Port Dr. Portland. (Corporate Headquarters) International Trading Co.. Cranbury.. SD 57049 Phone: (605) 235-2061 International Trading Co. Suite 813. Kuwait. IBP.. Inc. Selma. HSI is also a Certified Angus Beef Processor. McCall Ave.. 7124 North Marine Dr. This plant is kosher certified.. It specializes in portion control. It hopes to expand into other Asian markets. Inc.. 16th St.O. Hong Kong and China. beef and pork chorizo. Jordan. Harris Ranch Beef Co. TX 77003-1698 Phone: (713) 224-5901.. Mercedes. 2559 Route 130. Hanwha International Corp.. P. Jamaica. Houston. Mexico. with beef as its primary product. Dakota Dunes. Shenson International H. ITC exports processed pork and beef items and canned pork products to Japan. Omaha. Box 220.. GA 30339 Phone: (770) 859-0911 Global Marketing Associates is an international trading company dealing primarily in frozen beef and pork.-manufactured goods for the Korean market. Canada. Shenson International. Box 358. 3100 Canal St. 713 Hanwha purchases U. 6029 N. 16277 S.

• • • • • • • • • J. This establishment is halal certified. (800) 628-6328 This establishment is halal certified. L & L Packing Company 527 West 41st St. Local & Western of Texas. Inc... J. Suite 1105 LB67.. Inc. Evans Ave. 565 West St.. Latin America and the Caribbean. Long Island Beef Company Long Island Beef Company. 400 East Jackson Ave. Lee Enterprises. Loggins Meat Company. as well as offals.. TX 75225 Phone: (214) 750-6633 Local & Western represents companies that have approval to export halal and kosher products. Malaysia. Inc. Korea and China. 6000 E. Kraft Foods International Oscar Mayer/Louis Rich Exports Kraft Foods International. 800 West Chester Ave. Inc. Singapore and the Philippines. Inc. Inc. New York. Local & Western of Texas. Inc.F. O’Neill Packing Co. Dallas. hamburger and breaded meat products for export to Canada. All beef and pork muscle meats and variety meats are traded. Suite 3-337. It exports to Asia. Chicago. Loggins Meat Company. Suite 710. Inc. 3300 Edinborough Way. IL 60609 Phone: (773) 285-5400. (Ra-6S). TX 75702 Phone: (903) 595-1011 Loggins Meat Company produces portion control steaks. Lay’s Fine Foods Lay’s Fine Foods. Inc. Latin America and Europe.. 8235 Douglas Ave. Indonesia. NY 10573 Phone: (914) 335-7780 Oscar Mayer Exports produces processed beef and pork products for world markets. MN 55435 Phone: (612) 844-0585 Lamex Foods. Marketing Plan . Lamex Foods. Korea.. is a trading company dealing in frozen beef and pork products. Lee Enterprises. Tyler. O’Neill Packing Co. Erwin. Omaha. TN 37901 Phone: (423) 546-2511 Lay’s exports to Mexico and Russia. Denver. Mexico. to the EU and pork to the Russian Federation. 3120 G St. NE 68107 Phone: (503) 699-8926 This establishment is halal certified and EU approved for muscle meat. Knoxville.. Lamex Foods.. Edina. Japan. CO 80222 Phone: (303) 759-9468 Lee Enterprises is a trading company concentrating on Japan. NY 10014 Phone: (212) 243-1120 Long Island Beef Company exports to the EU. Rye Brook... marinated steaks.F. Oscar Mayer/Louis Rich Exports. 1908 E.317 SECTION 3 ..

. Inc. Suite 175. China. MacDonald Meat Company MacDonald Meat Company.L. Its major markets include Russia. Meat Commodities. Inc. It serves halal customers in the Middle East. Europe and Canada. GA 30328-5398 Phone: (404) 843-2400 Meta Foods’ primary product lines are fresh and chilled beef and pork products and pork and beef offals.. the Philippines. Scottsdale. Atlanta. WA 98134 Phone: (206) 623-7993 The MacDonald Meat Company exports to Taiwan.• • Notes • • • • • • Louis Dreyfus Corporation Louis Dreyfus Corporation. Box 218. Argentina. 1105 60th Ave.318 .. MeatLink. Its major export markets are Japan. Uruguay.. Cedar Rapids. China. and Mar del Plata. Montevideo. P. Mirasco. SW.. Atlanta. Thailand. Indonesia and Singapore. Asheville. ASEAN. Russia and Eastern Europe. pork and poultry trader. Inc. Japan and Mexico.C. 16247 N.. This establishment is halal and kosher certified. L. South Africa and Russia.S. CT 06897-0810 Phone: (203) 761-2000 Louis Dreyfus is a purveyor/trader of chilled beef sets and offals produced to Asian specifications. Taiwan. AZ 85259 Phone: (480) 419-8013 MeatLink. Inc. The company is especially interested in the export business to Mexico. 108TH Way. Meta Foods. NC 28801 Phone: (828) 258-0120 Meat Commodities. Seattle. MI 49348 Phone: (616) 792-6231 Midway Provision is a trading company dealing in the sale of beef.. Inc. beef and pork products. 5730 Glenridge Dr.. as well as products for the pharmaceutical industry. SECTION 3 Marketing Plan . Cairo Egypt. Inc. 339 Merrimon Ave. Its major export markets are Canada and Japan. warehouse and distribution center. 10 Westport Rd. Hong Kong. Inc. IA 52404 Phone: (319) 362-3711 FAX: (319) 362-4111 E-mail: midamar@mwci.L. Egypt. Korea. The company has offices in Alexandria. Suite 302. 401 South Main. Meta Foods. GA 30339 Phone: (770) 956-1945 Mirasco is a worldwide organization specializing in the exportation of meat products.C. It exports to Hong Kong. Japan. Midway Provision Midway Provision.. 900 Circle 75 Pkwy. MacDonald Meats is a Certified Angus Beef processor. pork and byproducts. MeatLink. Wilton.net Midamar Corporation is a contract slaughter plant.O. L. 2709 Airport Way South. Meat Commodities.. Inc. is a beef. Wayland. is a trading company dealing with U. Mirasco. Midamar Corporation Midamar Corporation.

P. Antigua. 2103 County Rd. Ruprecht exports to the Caribbean and to Mexico. Inc. St. IL 60607-1223 Phone: (312) 829-4100 The company specially selects and ages top quality beef to produce steaks and chops according to individual customer specifications. the Bahamas. the entire chain from cattle purchasing to feeding to fabrication is customized according to the specifications of the buyer. Box 3300. UT 84111 Phone: (801) 531-6565 Parker International. Parker International. FL 33013 Phone: (305) 691-3535 Quirch Foods supplies utility. The company would like to further develop these markets and also would like to expand into Asia.• • • • • • • • Monfort International (Division of ConAgra Refrigerated Foods International) Monfort International (Division of ConAgra Refrigerated Foods International). P. Provimi Veal Corporation Provimi Veal Corporation. Barts and the Cayman Islands. Inc.319 SECTION 3 . CO 80632 Phone: (970) 353-2311 Northern Beef Industries. Box 720427. Suriname.. Its main export market is Mexico. beef offals and white cow products under its private label “Cowboy” brand. Angus and Choice beef to its customers and operates a portion control facility to hand-cut and individually vacuum pack a variety of cuts for specific use in the foodservice sector.. Jamaica. Box G. TX 75372 Phone: (214) 219-0780 Rain or Shine International is a vertically cooperative beef export operation. NE 68103-0300 Phone: (402) 597-8100 Omaha Steaks is a purveyor and marketer of steaks..O.. Omaha Steaks Food Service Omaha Steaks Food Service. Hialeah. 311 RR 620 South. Indonesia and Eastern Europe. Turks & Caicos Islands. Inc. meats and other gourmet foods. WI 54165 The company is halal certified and EU approved for offals and muscle meats.. Suite 103. Its export markets are the Caribbean and the Pacific Rim countries. Greeley.O. Barbados. select. Seymour. Austin. Peru. Ecuador. the Dominican Republic.O. Nicaragua and Panama. Inc. Martin. P. Its export markets are Japan. 100 South. P. 265 E. Chicago. It also supplies customers in Haiti. Dallas. Omaha. It would like to export to Japan. Colombia. Suite 300. Korea. Venezuela. Quirch currently exports to Mexico. Inc. Brazil. no roll. Guatemala. W. It exports to Mexico and Korea. Box 3366. Through agreements with feedlots and a custom slaughter and fabrication operation. is a trader of beef and pork products as well as a distributor of beef. Salt Lake City. St. TX 78734 Phone: (512) 263-8763 Northern Beef Industries. Costa Rica. Parker International. Marketing Plan . specializes in beef and pork offals and grinding materials. 370 North Carpenter St. Rain or Shine International Rain or Shine International.O. Quirch Foods Company Quirch Foods Company. It offers customized products such as Omaha Steaks Angus Beef and USDA Prime and Choice. Honduras. Ruprecht Company Ruprecht Company. Hong Kong.

Washington Beef.. Box 188. San Bruno. Sakashita’s export business is in Japan. Taiwan and Korea. P.O.. sliced oxtails. CA 90501 Phone: 310-328-0000 Main product lines include beef. W&G Marketing Company. 413 Kellogg Ave. TX 76063 Phone: (817) 473-522 Primary products are portion controlled steaks.O. Mansfield.W. Inc. Meats R. ID 83653-1158 Phone: (208) 466-2478 Simplot Meat Products’ export markets are Asia. Inc.320 . beef offal. Box 1742. P. PA 18853 Phone: (717) 746-3820 This establishment is EU approved for offals. Simeus Foods International.W. Ames. Inc. Suite 122. W&G Marketing Company. It exports to Japan. including crown cut tongues. sliced short ribs. Simplot Meat Products. deals in beef and beef variety meats. Peru and Russia. (515) 232-5057 FAX: (515) 233-6229 Washington Beef. MN 55437 Phone: (612) 897-1134 R. Box 1158. lamb chops and some chicken items. Inc. breaded products. 1281 Cabrillo Ave.O. Inc. cooked meat products and ground beef patties... Box 832. veal. sliced back ribs. marinated items. Nampa. Australia and New Zealand. and cooked and processed meat items.. Taylor Packing Company. and pork products.. 1200 Bayhill Dr. Inc. Sakashita Meat Supply Corporation Sakashita Meat Supply Corporation.• • • • • • • • R. This establishment is halal approved for Indonesia. Mexico. Inc. 812 South 5th Ave.. Bloomington. #306. Inc. corned beef. P.. lamb. Its current export markets are Canada.O. Toppenish. Chile. pork. Korea and Brazil. Torrance.. Taylor Packing Company. patties. Specialty items are available for export. peeled skirts. an export trading company. Meats. pork chops. WA 98948 Phone: (509) 865-2121 The company produces portion control. TREX Corporation TREX Corporation. Inc. SECTION 3 Marketing Plan . 5001 West 80th St.W. This establishment is EU approved for offals and muscle meats. 201 Elmwood Rd. lamb. Route 706. Inc. IA 50010 Phone: (515) 233-4050. Simeus Foods International. Latin America. P. Brazil is the main export market. Meats is a trader of beef. CA 94066 Phone: (415) 589-4000 TREX Corporation. sliced feet. pork sausage.. Simplot Meat Products. pork. TREX is the exclusive representative for several packers and processors and is a licensed exporter of Certified Angus Beef. Canada. Wyalusing. mutton and offals including byproducts. cuts and processing materials.

Exporting can help your business: • enhance domestic competitiveness • increase sales and profits • gain global market share • reduce dependence on existing markets • exploit corporate technology and know-how • extend the sales potential of existing products • stabilize seasonal market fluctuations • enhance potential for corporate expansion • sell excess production capacity • gain information about foreign competition In comparison. It is very possible that you might be able to produce and/or process a product that can readily replace items presently being imported into the domestic marketplace.321 .Further Considerations about Global Market Participation The U. tariffs must be overcome. Unpredictability generated by political whims can be a negative. Language and currency are issues with which you must deal. Questions of who controls offloading. if your company’s financial situation is weak. an international business plan is essential. The foreign market sector is filled with unique problems for the marketer. In some cases. Also. as can volatility due to varied monetary and fiscal policies in other countries. some companies have been successful selling abroad even before they have made any sales domestically. A chief goal of any marketing plan should be to find your own space in the market. When looking to market products or service. For example. Small Business Administration advises that making the decision to export requires careful assessment of the advantages and disadvantages of expanding into new markets. That is the true niche approach. On the other hand. there are certain disadvantages to exporting. SECTION 3 Marketing Plan . do not overlook those products that are presently being imported into the U. warehousing and transportation will need to be answered. when thinking of expanding your markets through exporting. attempting to sell into foreign markets may be ill-timed. one key consideration is whether you will expand the market or simply compete to replace someone who is already there. Once the decision.S. Extended shipping times and varied climatic conditions highlight the issues around shelf life and packaging materials.S. The needs of foreign customers may be very different. Your business may be required to: • develop new promotional material • subordinate short-term profits to long-term gains • incur added administrative costs • allocate personnel for travel • wait longer for payments • modify your product or packaging • apply for additional financing • obtain special export licenses These disadvantages may justify a decision to forego exporting at the present time.

322 . organic or natural food items. the U..Good markets for different products and specialty processing are factors on the plus side. don’t overlook the minor items and simply capitulate those opportunities to someone else. • Probability is high that foreign economies will run on cycles that don’t match those in the U. Sensitivity to genetically modified (GMO) products may translate into an opportunity to supply non-GM. As in all markets today. And you will need to be highly responsive to the customer. That offers great opportunity for market diversity.S. Some of the organizations that can assist you are discussed here. Other cultures enjoy different tastes. Specific services offered to meat processors and others are: • trade show information and coordination • in-store promotions during missions • research into new markets • match-maker appointments in various countries where missions are scheduled SECTION 3 Marketing Plan . • Currency values can offer opportunity or a hurdle.S. • Digital technology can make this market possible for the smaller player. You will need a credible interface to quickly build trust. Meat Export Federation and other contractors can provide services to Iowa companies interested in exporting meat and livestock products. Iowa Department of Economic Development (IDED) International Marketing Division Meat and Livestock Promotion Program IDED’s International Marketing Division in conjunction with the state’s commodity groups. When seeking value added. Work with people who know the territory and can help you interpret the culture and language. There are emerging markets close to home that may represent less challenging logistics for the niche marketer. Relationships are key to all marketing. • We are in a global economy so the businesses increasingly expect to do business across borders. which is an advantage if you have some presence in both arenas. Keep in mind several key points. which are well accepted in many foreign countries but not the U. The Mexican market is an example of a substantial market for beef that is showing a positive trend. Export Assistance Providers Many governmental agencies and nonprofit groups have expanded information services and human resources to help in foreign markets. • Foreign markets automatically demand a different product mix than domestic markets. The cruise ship industry has grown tremendously and offers a high-end market of its own to those who can offer something special in product or service. Another example is variety meats. • Politics are a wild card. you have the equivalent of one shot at the deal and that situation renews itself every day. In the foreign arena this is doubly true.S. There are also programs that bring money to your efforts.

test market interest and evaluate the competition. services or samples of Iowa manufactured. and appointments are scheduled to help them access the buyers in the visiting delegations. processed or value added products or agricultural commodities in conjunction with a foreign trade show or trade mission. Marketing Manager Iowa Department of Economic Development. contact: Mark Fischer.fischer@ided.ia. the Iowa Department of Agriculture and Land Stewardship. Marketing Plan . Department of Agriculture • per diem (meals & lodging) for one employee for the duration of the event (rates calculated at 50 percent of the U. International Marketing Division Phone: (515) 242-4760 FAX: (515) 242-4918 E-mail: mark.S. Licensing agreements and joint ventures have also resulted from trade missions.us Export Trade Assistance Program (ETAP) Participation in international trade shows and trade missions is one of the most effective ways to enter into new international markets or expand visibility in existing markets.323 SECTION 3 . • Have at least one full-time employee or sales agent participate in the event. Eligible expenditures may include: • booth space rental • booth construction at show site • booth equipment and/or furniture rental • booth utility costs • freight costs of equipment and/or exhibit materials to and from show • interpreter fees at show site • participation fees for trade missions sponsored by the Iowa Department of Economic Development. the U. Mexico and China are brought to Iowa to meet with processors. the International Marketing Division of the Iowa Department of Economic Development will reimburse a sizable portion of a company’s eligible direct expenses per pre-approved event.S. Iowa companies are contacted to determine their interest. Through ETAP. Department of Commerce or the U. • Exhibit products. • Have at least 75 percent of employees employed within Iowa. IDED helps these buyers with their expenses and provides transportation while they are in the state. For more information about this program. The State of Iowa offers financial assistance to Iowa companies who wish to take advantage of international trade shows and trade missions to enter new markets. Department of State Standardized Regulations) To be eligible to participate in ETAP. Trade shows offer the opportunity to meet potential buyers. A trade mission can be a very efficient and cost effective means to meet potential distributors and buyers.S. Korea.state.• • • sponsored receptions in various countries trade shows and/or missions host buying missions Buying Missions Buyers from countries such as Japan. applicants must: • Employ fewer than 500 individuals.

Livestock and Grain Market News. and political science. producers and exporters. microbiology.ia. Iowa State University MERC was developed in 1984 to support the expansion of exports of U. Wallace Building.S. which will allow for fair access.. We can do this by breaking down artificial barriers to trade. International Marketing Division Iowa Department of Economic Development. CO. Denver. Secretary of Agriculture (IDALS) Patty Judge. Des Moines.us/international Iowa Department of Agriculture and Land Stewardship • Patty Judge. Secretary of Agriculture (IDALS). International Marketing Division. Research is conducted in the following areas: • market identification and assessment • product evaluation and product and process development • demographics and cultural preferences • trade barriers and public policy assessment Newsletter Information and technology developed in the center is transferred to meat processors. Meat Export Federation.state.state.ia. beans. SECTION 3 Marketing Plan . which can only be done on a global level. A monthly newsletter. meat and meat products and aid in the development of a stronger agricultural economy.fischer@ided. marketing. sociology.324 . hogs and cattle. contact: • Iowa Department of Economic Development. Des Moines. food science. Meat Export Analysis and Trade News.us Web site: http://www. economics.” Secretary Judge Meat Export Research Center (MERC). is published in cooperation with the USDA/Agricultural Marketing Service. and the U.S. providing timely price and trade information. IA 50319 Phone: (515) 281-5321 “Our challenge is to provide security through increased profitability for Iowa’s agricultural industry. U. Henry A. Des Moines. 200 East Grand Ave. IA. IA 50309 Phone: (515) 242-4760 FAX: (515) 242-4918 E-mail: mark. If we are to keep family farmers in Iowa raising corn. As part of the Utilization Center for Agricultural Products.Utilization of the ETAP funds are limited by the following: • three events per state fiscal year • participation in the same trade show not allowed in consecutive years • participation in the same trade show a maximum of two times • one trade show in a specific country per state fiscal year For more information. MERC is a multi-disciplinary center encompassing researchers in meat science.S. we must lower these existing barriers and expand our markets. transportation and logistics.

S. seminars and workshops are held to address specific export issues. descriptions of marketing systems. To request services. also can be made. such as franks. demographics and political profiles affecting public policies. Ames. export volumes. but add to economic development as well. Meat Safety and Meat Quality The safety and quality of U. 194B Meat Laboratory. The lab has full processing capabilities starting with slaughter for poultry and red meats. Identification of market needs leads to development of products that are potentially successful in specific markets. Models developed in these studies 1) determine relationships of price. Further processed meats.S. using the extensive pilot plant facilities in the ISU Meat Lab and often in cooperation with meat product manufacturers. meat is safe and wholesome. meats are critical determinants of U. luncheon meat and fermented products. Marketing Plan . transportation. contact: • Randy Petersohn Randy Petersohn. Product and Process Development Every international market has unique requirements and specifications for meat products. Value Added Utilization MERC researchers strive to add value to beef and pork primal cuts by working with industry creating new or novel further processed products that fit foreign consumers’ tastes. Researchers study and develop models of the livestock and meat industries of selected international markets. develop formulations and processes suited to products designed for specific international markets.Short Courses Conferences.S. IA 50011-3150 Phone: (515) 294-5321 FAX: (515) 294-6328 E-mail: randall@iastate. MERC researchers examine ways to reduce or eliminate pathogenic contamination. Consultations with individual companies address specific product issues. Meat Laboratory This state-of-the-art meat laboratory supports technology and product development. The lab is available to private companies for product and process development. demand and supply and 2) show possible changes in these relationships due to alternative public policies. Researchers. Iowa State University.325 SECTION 3 . distribution. extend shelf life (Linear Accelerator Facility). find objective measures of quality and convey to foreign officials and foreign buyers the knowledge that U. meat and meat products are evaluated.edu Market Studies New and expanding international markets for U. Further processed meat products not only enhance the carcass value of the livestock by taking the product out of the commodity mode. A variety of short courses designed to provide the latest information in processing technology are offered to commercial meat processors throughout the year.S. Included in these studies are cultural characteristics that affect current and future demand as well as consumption of meat and meat products.

Best access is through the Web site. MERC produces a newsletter. such as unloading. Moscow and Beirut. The conferences and seminars provide a forum in which key people with expertise in international meat and meat product trade share information that will lead to expansion of meat and meat product exports. Denver. contact: • Sev Johnson Sev Johnson.org/ Foreign Ag Service (FAS)/USDA FAS is an agency of USDA that holds as its mission to assist any and all qualified exporter candidates. knowledge is transferred to processors. There are offices in 13 foreign countries and representatives around the world.S. Mexico City..S.iastate.ag. etc. • U. workshops and conferences to disseminate this information. Meat Export Federation. which is designed to guarantee payments and improve exporter facilities in the target country. For additional information. Meat Export Analysis and Trade News. Cooperative projects in various countries are frequent and professional. Members have access to the full range of information but visitors can glean a great deal.S. MEF has become a central clearinghouse of vital information for groups or companies seeking markets or looking to expand their presence into foreign markets. FAS is a comprehensive service provider that offers data and analysis as well as specific programs for hands-on assistance to the exporting company.Information and Technology Transfer After gathering international market information and product technology. Some examples include: The Facility Guarantee Program. and holds seminars. Shanghai. producers and exporters.edu/centers/merc/ Meat Export Federation The U. The program is aimed at reducing the physical constraints to trade in emerging markets or developing countries. Much of the information is generated or analyzed in-house by MEF staff. Meat Export Federation U. Meat Export Research Center Phone: (515) 294-8899 FAX: (515) 296-6272 E-mail: sevjohns@iastate. warehousing. distribution. CO 80265 Phone: (303) 623-6328 FAX: (303) 623-0297 www. It cooperates with allied industry in its efforts and not strictly in production. Suite 2200. Meat Export Federation (MEF) is a nonprofit trade organization formed to identify and develop markets in foreign countries. MEF is unique in its private sector funding and governance. The Market Access Program (MAP) also uses Commodity Credit Corporation (CCC) SECTION 3 Marketing Plan . 1050 17th St.edu www. Information is available in a two tiered structure.326 . U. There are links to other industry and trade related Web sites.S. MEF also has offices in Tokyo. Osaka. Seoul.usmef.

The Intermediate Export Credit Guarantee Program (GSM-103) covers longer credit terms up to 10 years. Additionally.usda.bleggi@bbs. FAS Outreach Office.aphis. The Export Credit Guarantee Program (GSM-102) covers credit terms up to three years. contact: • USDA-APHIS-VS USDA-APHIS-VS.S. the Midwest has a local outreach office. The Supplier Credit Guarantee Program (SCGP). IA 50322-3782 E-mail: bleggi@fas. These direct credits must be secured by promissory notes signed by the importers.gov/ Marketing Plan .gov or scott. irrevocable letters of credit to pay for food and agricultural products sold to foreign buyers..fas.327 SECTION 3 . technical assistance and service after the sale. exporter) to approved foreign banks using dollardenominated. CCC guarantees a portion of payments due from importers under short-term financing (up to 180 days) that exporters have extended directly to the importers for the purchase of U. Des Moines. can be of great help. less commonly.usda. producers and exporters finance promotional activity in foreign countries.gov/. It has an extensive Web site at www. Riverdale. National Center for Import/Export. Director Scott Bleggi. Director. For permit applications and information about import/export requirements and user fees for animals. 10500 Buena Vista Ct. birds and animal products. It lists animal health requirements of the other countries. MD 20737-1231 Phone: (301) 734-3294 FAX: (301) 734-6402 www. 4700 River Rd.gov Animal Plant Health Inspection Service (APHIS)/ USDA Although APHIS is thought of in the context of quarantine and inspection of imports. Two programs underwrite credit extended by the private banking sector in the United States (or.S. Scott Bleggi can provide detailed information about the programs available through FAS.money to help U. CO.fsa. • Scott Bleggi..usda.S. Unit 40. The International Regulation Retrieval System in Fort Collins. FAS is an important stop for any company wishing to begin exporting. by the U. APHIS Veterinary Service is available to work with exporters. It includes market research.usda. agricultural commodities and products. This program is not only for market development. Veterinary Service will work with an exporting company to meet the foreign country’s requirements and issue certificates.

Small Business Administration. Des Moines District Office 210 Walnut Street . Davenport. IA 52801 Phone: (319) 322-4499 FAX: (319) 322-3956 Iowa Service Corps of Retired Executives (SCORE) There are many local SCORE chapters throughout Iowa.S. IA 52001 Phone: (319) 588-3350 FAX: (319) 557-1591 • Eastern Iowa Small Business Development Center Eastern Iowa Small Business Development Center.S. Dubuque. Cedar Rapids. political and social interests of the U. IA 50010 Phone: (515) 292-6351 FAX: (515) 292-0020 • Northeast Iowa Small Business Development Center Dubuque Area Chamber of Commerce Northeast Iowa Small Business Development Center. Small Business Administration.S. SECTION 3 Marketing Plan . cities. These experienced SBDC and SCORE counselors provide free and practical advice and assistance to hundreds of companies like yours each month.Small Business Administration The SBA provides a variety of resources for small businesses looking to expand their business through exporting. cattle business and to be an advocate for the cattle industry’s policy positions and economic interests. access http://www. IA 50309 Phone: (515) 284-4422 • U.score.S. 137 Lynn Ave. to find the one nearest you.S.Room 749. which concentrates resources around a unified plan. Cedar Rapids District Office 215 4th Avenue SE. 304 West Second Ave. Des Moines. Two excellent resources.” It works to advance the economic.328 .gov/OIT/txt/info/Guide-To-Exporting/.. which can be accessed at: http://www. Small Business Development Centers (SBDC) and Service Corps of Retired Executives (SCORE). Iowa Small Business Development Centers (SBDC) • Iowa State University Small Business Development Center Iowa State University Small Business Development Center. Ames.sba. Small Business Administration U. consistently meets global consumer needs and increases demand. 770 Town Clock Plaza. Dubuque Area Chamber of Commerce. National Cattlemen’s Beef Association (NCBA) NCBA works to achieve this vision: “A dynamic and profitable beef industry. IA 52401 Phone: (319) 362-6405 FAX: (319) 362-7861 Another excellent resource provided by the SBA is the SBA Guide to Exporting. are conveniently located in most U.org/ or contact: • U.S. Small Business Administration U..

Food Industries Division. Washington. Food and Color .iacattlemen. USDA Phone: (202) 690-2981 FAX: (202) 690-3982 Marketing Plan .org/ or contact: Denver • National Cattlemen’s Beef Association National Cattlemen’s Beef Association. Ames.Foreign Regulations Additives.329 SECTION 3 .beef. USDA Phone: (202) 690-1339 • Agribusiness-Information Agribusiness-Information. FAS. while setting higher quality and safety standards than those required by the government. For further information. Suite 300. Greenwood Village. exports. imports and related topics.htm Other Resources This select subject directory contains a quick reference to frequently asked marketing and trade assistance resources on agribusiness. • Additives. Food and Color . • National Cattlemen’s Beef Association National Cattlemen’s Beef Association. 1301 Pennsylvania Ave. 2055 Ironwood Ct. Office of Food Safety and Technical Service. NW. FAS. 5420 South Quebec St.org/index. D. P.Foreign Regulations. IA 50014 Phone: (515) 296-2266. International Cooperation and Development.O. AgExport Services Division. FAS. International Cooperation and Development. Food Industries Division.. FAS. D. CO 80111 Phone: (303) 694-0305 FAX: (303) 694-2851 Washington.C.. 20004 Phone: (202) 347-0228 FAX: (202) 638-0607 Iowa Cattlemen’s Association • Iowa Cattlemen’s Association Iowa Cattlemen’s Association. nutritious beef. access http://www.C. USDA Phone: (202) 720-2239 • AgExport Connections AgExport Connections. USDA Phone: (202) 720-7409 FAX: (202) 690-4374 • Agribusiness Development Program Agribusiness Development Program. toll free (800) 888-1730 FAX: (515) 296-2261 www.As family farmers and ranchers. cattlemen share an interest in meeting the needs of consumers worldwide by providing high-quality. Box 1490.

USDA Phone: (202) 690-1182 FAX: (202) 690-4374 Commodity Credit Corporation . Commodity Credit Corporation Operation Division. Supplier List Exporters . Supplier List. USDA Phone: (202) 720-4216 Credit Guarantees. FAS. Direct Export Sales. Trade Shows.CCC. USDA Phone: (202) 720-3241. FAS. FAS. AgExport Services Division. USDA Phone: (202) 720-5540 FAX: (202) 720-0938 Cooperator Programs Cooperator Programs.S. Commodity Credit Corporation Operation Division. FAS. Marketing Operations Staff. Types GSM-102 & GSM-103. FAS. USDA Phone: (202) 690-3421 FAX: (202) 690-4374 Calendar of Food.U.• • • • • • • • • • • Buyer Alert Program Buyer Alert Program. AgExport Services Division.Marketing/Trade Information · Dairy. Beverage. U. USDA. USDA Phone: (202) 720-0368 Export Enhancement Program (EEP) Export Enhancement Program (EEP). International/FAS Sponsored. Direct Export Sales Commodity Credit Corporation . Food & Drug Administration. Phone: (202) 720-8031 FAX: (202) 720-0617 · Market Promotion Programs Phone: (202) 720-2461 · Dairy Export Incentive Program & Export Enhancement Program Phone: (202) 720-8870 Emerging Markets Office Emerging Markets Office. FAS. FAS.U. Commodity Credit Corporation Operation Division. USDA Phone: (202) 720-5521 FAX: (202) 720-9361 Credit Guarantees Credit Guarantees. FAS.CCC. Livestock and Poultry Division . AgExport Services Division.S. USFDA Phone: (202) 205-4573 · Animals Phone: (301) 734-3277 Marketing Plan .330 SECTION 3 .S. FAS.Marketing/Trade Information. Beverage. Types GSM-102 & GSM-103 Credit Guarantees. Program Development Division. (202) 720-5540 Exporters . USDA Phone: (202) 720-3324 Dairy. International/FAS Sponsored Calendar of Food. Livestock and Poultry Division . Trade Shows. USDA Phone: (202) 690-3421 Exports Certification/Regulation Exports Certification/Regulation · Food and Cosmetics.

Bureau of the Census. USDOC Phone: (202) 482-3346 Harmonized Tariff Schedule . Economic Research Service. USDA Phone: (202) 690-3416. USDA Phone: (202) 720-1330 Marketing Plan . Animal and Plant Health Inspection Service. FAS. U. Food and Drug Administration Phone: (202) 205-4726 · Hides and Skins Imports.S. Multilateral Trade Negotiations Division. International Trade Commission Phone: (202) 205-2602 Health and Sanitary Foreign Regulations Health and Sanitary Foreign Regulations. USDA Phone: (202) 720-3333. Food and Drug Administration Phone: (202) 205-4726 · Food Safety Hotline. USDA. USDA Phone: (202) 720-6064 FAX: (202) 720-1139 Harmonized Tariff Schedule . FAS. Economics and Statistics Administration. (202) 720-3690 FAX: (202) 720-0617 · Laws-U. Prices & Expenditures. FAS.S. Food Industries Division.Classification. Food Safety Inspection Service. USDA Phone: (202) 720-2239 Imports · Animal Health Protection. USDA Phone: (202) 690-2981 FAX: (202) 690-3982 · Food Safety Inspection of Imports. U. Import Policies and Programs Division. Office of Food Safety and Technical Service. FAS. Commodity and Marketing Division. (301) 457-2227 Frozen Foods · Frozen Foods. USDA Phone: (202) 720-7285. AgExport Services Division. Economic Research Service. USDA Phone: (301) 734-8170 · Central America.S.. U. USDA Phone: (202) 720-1034 · Industry Desk.Classification Harmonized Tariff Schedule .Updating Harmonized Tariff Schedule . FAS.S. U. USDA Phone: (202) 694-5376 Food Safety · Food Safety. FAS. Livestock and Poultry Division. Dairy. International Cooperation and Development.• • • • • • • • • • Food Consumption. Prices & Expenditures Food Consumption. Phone: (202) 694-5449 Food Manufacturing Industry & Competition Food Manufacturing Industry & Competition. FAS.S. (800) 535-4555 Foreign Buyer/Importer Lists Foreign Buyer/Importer Lists. USDOC Phone: (301) 457-3041. FAX: (202) 690-4374 Foreign Trade Data Service Foreign Trade Data Service.331 SECTION 3 .Updating.

Foreign Requirements Labeling . (202) 720-9469 Snack Foods Snack Foods. Dairy. (North American Free Trade Agreement).S. USDA Phone: (202) 720-9439 FAX: (202) 720-6556 Transportation Transportation. Department of the Treasury Phone: (202) 927-6724 FAX: (202) 927-1393 Labeling . Shippers and Exporter Assistance. Dairy Phone: (202) 720-7461 FAX: (202) 720-4844 · Livestock and Grain Phone: (202) 720-6231 FAX: (202) 690-3732. Office of Food Safety and Technical Services. FAS. Meat and Poultry.S. Customs Service.• • • • • • • Livestock Import Regulations.Foreign Requirements. FAS. Agricultural Marketing Service. Customs Service Imports.iccwbo. USDA Phone: (202) 720-1325. U. Import Policies and Programs Division.U. Food Safety Inspection Service.U. Labeling .org/ SECTION 3 Marketing Plan .332 .S. Asia. Market News · Market News. USDA. Agricultural Marketing Service. NAFTA (North American Free Trade Agreement) NAFTA. FAS. USDA Phone: (202) 720-9408. Africa and Eastern Europe Division.S. Commodity and Marketing Programs. Meat and Poultry Labeling . USDA Phone: (301) 734-8170 · U. USDA Phone: (202) 418-8900. Animal and Plant Health Inspection Service. U.S. USDA Phone: (202) 690-1304 FAX: (202) 690-1340 · Chambers of Commerce Complete listings of worldwide chambers of commerce can be accessed on the following Internet sites: • International Chamber of Commerce (ICC) www. FAS. USDA Phone: (202) 720-1034 Tariff-Rate Quotas · Beef. USDA Phone: (202) 720-6553 FAX: (202) 720-0617 · Dairy. Livestock and Poultry Division. FAS.

usda.653 FAX: (515) 254-1573 • Export Assistance Centers Export Assistance Centers. Suite 100.reeusda.fsis.usda.nal.ag.miatco.333 SECTION 3 .ams.htm • Foreign Agricultural Service (FAS) www.gov/ • Cooperative State Research Education and Extension Service (CSREES) www. Chicago.usda.ceemail. Mid-America International Agri-Trade Council (MIATCO). Iowa.gov/OFO/export/explib.ars. 8182 Maryland Ave. IL 60610 Phone: (312) 944-3030 FAX: (312) 944-1144 www.fas. Regional Director. Midwestern Region..html World Trade Centers Association www.gov/ Marketing Plan . Foreign Agricultural Service. Louis. St. MO 63105 Phone: (314) 425-3300 FAX: (314) 425-3375 • State Regional Agricultural Marketing and Trade Organizations State Regional Agricultural Marketing and Trade Organizations..gov/ · FSIS Export Library www. Department Of Agriculture (USDA) • Agricultural Marketing Service (AMS) www.gov/ • Agricultural Research Service (ARS) www.usda.usda.gov/ • Alternative Agricultural Research and Commercialization Corporation (AARC) www.usda. Des Moines. 400 West Erie St. U. USDA.usda.iserve. IA 50322-3782 Phone: (515) 254-1540. ext.org/ Trade Associations and Organizations Regional Export Assistance Centers/Regional State Trade Organizations • AgExport Outreach Offices AgExport Outreach Offices. 10500 Buena Vista Ct..aphis.gov/ • Food Safety and Inspection Service (FSIS) www.S.usda.gov: 8080 • Economic Research Service (ERS) www. Department of Commerce.gov/ • Current Research Information System (CRIS) cristel.fsis.com/chambers.• • World Chambers of Commerce www. #1011.wtca. USDA/Farm Service Agency.org Internet Sites U.S.gov/aarc/ • Animal and Plant Health Inspection Service (APHIS) www.econ.

nal.exim.nal. Customs Service www.S.usda.gov/wqic/ National Agricultural Statistics Service (NASS) www.doc.fas.gov/ U.usaid.gov/eda/ · Trade Information Center infoserv2.ita.ustreas.doc.nsf U.193.S.gov/awic/ · Food and Nutrition Information Center (FNIC) www.customs.S.state.nal.nal.gov/nass/ Rural Development/Rural Business-Cooperative Service (RD/RBCS) www. Ex-Im Bank (Export-Import Bank of the U.gov/ U.gov/atmic/ · Alternative Farming Systems Information Center (AFSIC) www. Packers and Stockyards Administration (GIPSA) www.usda.gov/ U.usda.S.gov/ttic/ · Water Quality Information Center (WQIC) www.rurdev. Trade Shows www.usda.gov/ Marketing Plan .gov/ NAL Reference and Information Centers · General Reference Services www.nal.usda.nal.info. Beverage.334 • • • SECTION 3 .nal.usda.gov/tic.usda.gov/ref/ · Agricultural Trade & Marketing Information Center (ATMIC) www.bxa.usda.) www. Department of Commerce 204.html Grain Inspection.S.usda.gov/fnic/ · Plant Genome Data & Information Center (PGDIC) www.gov/gipsa/ National Agricultural Library (NAL) www.usda. Department of State www.usda.usda. Environmental Protection Agency www.doc.usda.gov/ric/ · Technology Transfer Information Center (TTIC) www.epa.nal.• • • • • Food.62/ · Bureau of Export Administration www.gov/agexport/shows/tshow.gov/pgdic/ · Rural Information Center (RIC) www.nal.gov/rbs/ Other Useful Internet Sites • • • U.nal.usda.246.gov/afsic/ · Animal Welfare Information Center (AWIC) www.gov/ · Economic Development Administration (EDA) Regulations & Notices www.S.S. Agency for International Development www.gov/ U.

nal. use and trade of livestock and poultry products.htm List of International Agricultural Organizations www.htm Reports/Special Reference Briefs Commodity/Trade Reports Foreign Agricultural Service (FAS).gov/ref/internat. and world production. Food and Drug Administration www.S. The publications listed below present information on U.S.usda. Federal Aviation Administration www.usia.S. Semi-annual ($21 domestic. and trade for many different commodities. • Dairy.gov/ U. VA 22161.S. Springfield.gov/ U. Information Agency www. trade information and analyses of the trade of dairy.nal.htm List of Internet Access for International Business. and world production. Marketing and Trade Information www.S.peacecorps. $42 foreign). Livestock and Poultry: U. • Livestock and Poultry: World Markets and Trade. Monthly ($98 domestic.S. the latest trade policy and marketing developments. International Trade Commission www.fda.htm List of Internet Sites on Agribusiness. Monthly ($65 domestic. Office of the U.nal. • Agricultural Trade Highlights.usda. $110 foreign).ustr. specialized coverage of trade topics. The Commodity Trade Reports are available via subscription from: National Technical Information Service. supply and demand.335 SECTION 3 .S.S. Department of Commerce. livestock and poultry products.gov/atmic/pubs/agriassn.S. Economics.S. along with in-depth analyses of country markets and specific consumer food product exports. Trade Prospects.S.gov/ Lists of Selected Agriculture and Trade Related Web Sites • • • • List of Agriculture Departments in Other Nations www. Trade Representative www. Provides an overview of U.faa.usitc. $214 foreign). Contains information on U.• • • • • • • U. Marketing Plan . U. trade policy developments and export market information.S. U. Food Industry & Forest Industry Associations www. summary of current trade statistics. agricultural exports.gov/ U.gov/ U.gov/ U. Contains U. Trade and Development Agency www.S.nal.gov/ref/govern.usda.tda.gov/atmic/links.S. Each issue contains a summary of current trade statistics and the latest trade policy and marketing development. Department of Agriculture (USDA).gov/ U.usda. Peace Corps www. Phone: (703) 487-4630.S.

fibers. Five issues ($26 domestic. Covers agricultural materials in seven categories: starches and carbohydrates. Shows fiscal year commitment figures for the Commodity Credit Corporation’s Export Credit Guarantee Program (GSM-102) and Intermediate Credit Guarantee Program (GSM-103) activities. all upland cotton. Each report explains how basic forces are changing agriculture and agricultural trade. by commodity and region. Publications listed below are published by the Economic Research Service (ERS). Gallo. Examines how agricultural materials are used by industry. • Industrial Uses of Agricultural Materials. including industry growth.25 foreign). based on reports submitted by private exporters ($175 domestic. $320 foreign). including crop. Herndon. as well as agricultural trade balance. conduct and performance of food processors.S. livestock and forestry estimates. weather and production briefs.S.S. including policies that affect commodity and input prices. other areas (703) 834-0125. Tony E.S. wheat products. U. October 1995 ($12). and special articles of interest to the trade. and cattle hides.. Annual. • Food Aid Needs and Availabilities: Projections for 2005. Examines the long-term prospects for global food aid needs and for food aid availabilities from donor countries. Stock # GFA-6. retailers and foodservice firms. Offers the latest value and volume of U. farm exports. World Agricultural Production. Monthly ($95 domestic. $11. animal products. Weekly. soybeans. Europe. Stock # SB-892. soybean cake and meal. SECTION 3 Marketing Plan . all wheat. Three issues ($17). natural plant products. Apec and NAFTA. • The Food Marketing System in 1996.• • • Monthly Summary of Export Credit Guarantee Program Activity. research report. Newly Independent States and the Baltics.336 . wholesalers. All countries with outstanding sales or accumulated exports are included for each class of wheat. Also includes short.and long-term production. Situation and Outlook Report Outlook for U.).50 foreign.S. Stock # AIB-717. and world production of major agricultural products. and natural rubber and resins. FAX: (703) 834-0110. Describes policies that affect the agricultural sector in 25 countries in the Western Hemisphere. Stock #IUS-1996. Research report.50). $32. $160 foreign). VA 22070. forest products. Stock # AES. and are available via subscription from: ERS-NASS. September 1994 ($12). Outstanding exports sales as reported and compiled with other data give a snapshot view of the current contracting scene.S. issued in October ($15). Department of Agriculture (USDA). Agricultural Exports. International Agricultural and Trade Reports Five-report series includes: China. U. Monthly ($70 domestic. activities of government-owned companies and integration of economies in the Western Hemisphere. structure. Phone: (800) 999-6779 (Canada and U. consumption and trade of the regions key commodities. • Global Review of Agricultural Policies: Western Hemisphere. Export Sales. fats and oils.. Provides information on U. corn. 341 Victory Dr. $120 foreign). American prima cotton. single copies are $9 domestic. Analyzes and assesses yearly developments in the nation’s food marketing system. import commodities and export outlook. August 1997 ($7.

Products wearing those labels may or may not be certifiably organic. It is important to gather some understanding of how various sectors of the food market place tend to interpret the term organic. Organic on the label generally implies to the consumer that: • The product was grown with a dedication to agricultural practices that strive for a balance with nature.fsis.Marketing Plan Organic Markets “Organic” has become a universal term to describe an array of products. prohibit the use of antibiotics. Organic generally also means market animals were raised without the use of toxic persistent pesticides.nofavt. using methods and materials that are of low impact to the environment. Congress temporarily tabled the issue. (http://www. and aging meats. • The product was created as a result of a commitment to maintain and replenish soil fertility with the belief that the highest quality foods are grown on healthy land. In the early 1980s in response to an explosion of food products claiming to be natural. grinding nuts. practices and procedures perceived as healthy for man.gov/index.S. it was recommended that Congress approve a definition be approved that could be enforced. Production methods are selected based on criteria that meet all federal. Organic to the livestock producer generally means farms have been inspected to verify they meet rigorous standards that mandate the use of organic feed. Marketing Plan . Minimal processing includes washing or peeling fruits or vegetables. • The contents have been minimally processed to maintain the integrity of the food without artificial ingredients. and foster healthy soil and growing conditions. state and local health regulations. and give animals access to the outdoors. animal and the environment. Perhaps the greatest confusion caused by such labeling surrounds the use of the word “natural. canning. and it never again came up for review. work in harmony with the environment. freezing.” According to the U. baking bread. At the time. build biological diversity. natural foods meet this definition: A food may be called natural only if it contains no artificial ingredients and had no more processing than it would normally receive in a household kitchen. there are now almost 600 organic producer associations in 70 countries. antibiotics and parasiticides The Natural Question Adding to the confusion of what is organic is the clamor caused by a new genre of product identification recognized as “eco” or “green” labeling. homogenizing milk. the Federal Trade Commission recommended standards for food products so labeled. In general though. (http:// www. or bottling foods.htm) Natural foods are generally understood to be any packaged food product that does not contain any added artificial (having no counterpart in nature) additives.usda. Virtually all definitions tend to share a degree of meaning. but it does not necessarily extend to the exclusion of pesticides or other chemicals used in processing. yet each definition has its own unique features. preservatives or irradiation.org/Organic%20faq2.htm) Each has developed its own version of the meaning of organic. Worldwide.337 SECTION 3 . Food Safety and Inspection Services (FSIS) the term “natural” may be used when products contain no artificial ingredients and are no more than minimally processed in accordance with the rules of the agency.

The upward consumption trends in the natural foods market are now significant. sales of organic food are likely to overtake sales of conventional food within 10-15 years. United Kingdom The market for organic food is increasing by more than 21 percent a year in the UK alone. often with the caveat that it is produced in an “environmentally friendly” way.hawiaa.S. (http://www.hawiaa.fas. World Market Trends Information gathered from various sources generally agrees that the growth rate being experienced in the U.org ) Virtually all projections tend to agree that U. Domestic Market Trends for Organic Products Information gathered from various sources generally agrees that the growth rate being experienced in the U.usda.worldwise.exe?Rep_ID=15000064) Netherlands The market for organic foods stands poised for growth as consumers are increasingly drawn to the environmental and health allure of organic foods. consumers are seeking what they perceive as healthful. Supermarkets are taking a serious look at expanding their organic food sections. adult population (between 40-50 million Americans) whose purchasing decisions are increasingly guided by their social and environmental values. safe food. (http://www.S. The summaries of recent reports from various offices of the Foreign Agricultural Service.338 . This expansion is remarkable when compared to a growth rate for mass market foods of an average of only 3 to 5 percent from 1990 to 1997. industry analysts propose that by 2008. products labeled as natural have possibly originated from growing and processing operations that are phasing into organic production but have yet to achieve a certifiable status. In some cases. USDA.com/sustainable_living/fact_sheets/food. (http://www.S. sales will continue upward at a very healthy rate for at least the next several years with some guessing the present rate-ofgrowth to continue until at least 2010.html) A natural label does not guarantee the product has been organically produced and processed according to the rules of a private certification entity. is mostly representative of what is happening in other developed nations.(http://www. paint a picture of world growth.gov/ scriptsg/gain_display_report. Presently measured at somewhere between 3 to 5 percent of the total food market.S. In ever increasing numbers.org) Several market studies conducted in recent years have described a sector of the market comprising about 25 percent of the U. (http://www. including two major supermarket SECTION 3 Marketing Plan . and in countries such as Denmark and Austria. Companies across the spectrum of the food system are working hard to respond quickly and accurately to these preferences. organic foods will make up nearly 10 percent of the total retail foods market. They are no longer products of choice for just a small group of consumers. is mostly representative of what is happening in other developed nations.org ) Public and private research groups register the growth rate of the natural and organic food business somewhere between 14 and 20 percent per year for the last seven to 10 years.hawiaa. opportunity and market competition in the organic food sector. although it does mean there has been a minimization of synthetic inputs and it may have been produced and processed according to those rules.

fas.usda. and therefore carry the positive health food image.0) France Organic food is still a niche market in France in terms of value. Albert Heijn and Konmar.usda.0) Belgium-Luxembourg Organic farming in Belgium is poised for growth with the potential for a ten-fold increase in the number of producers.gov/info/agexporter/ 1997/dutch.fas. best opportunities are for tree nuts and dried fruits. The Dutch government actively supports the organic food industry. grains. fruit juice and breakfast cereal.asp?Rep_ID=25545926.fas.S.gov/scriptsw/AttacheRep/gain_display_report. they are also attaching more importance to the evolution of healthy and nutritious food.chains in the Netherlands.asp?Rep_ID=25606931. Of U. rice cakes.fas. it constitutes a growing market both for sales and the image it transmits to consumers. (http://www. representing 0.gov/scriptsg/gain_display_report.fas.usda. (http:// www.gov/scriptsw/AttacheRep/ gain_display_report. products.S. As a result of the French government action plan to stimulate organic agricultural production and distribution in France. organic food and beverage exporters who are prepared to invest the resources necessary to properly market their product in Germany. (http://www.usda. vegetables and feed.fas. (http://www. distribution and sales of organics. (http:// www.usda.html) Austria As there are probably opportunities for Austrian organic products on the EU market.fas. the Dutch Government implemented a roughly $33-million action plan to stimulate production. It is apparent that while the people are attaching importance to the construction of a more ecological environment.gov/scriptsw/AttacheRep/ gain_display_report.339 SECTION 3 . Significant opportunities exist for U. (http://www. (http://www.usda.asp?Rep_ID=25495561. sales of organic products are expected to reach FF 15 billion ($2. About two-thirds of organic production is sold on the domestic market and the rest is exported. Best prospects for increased sales are baby food. Imports include mainly fruits.5 percent of total French retail food sales.0) Germany Germany is one of the world’s largest producers and consumers of organic food products.gov/scriptsg/gain_display_report. Organic foods are marketed as health foods here.5 billion) by the year 2003. However.0) Marketing Plan . agricultural representatives are interested in the expansion of organic agriculture. In February 1997.exe?Rep_ID=10005512) Hong Kong Organic food sales have grown slowly since the early 1990s as local Chinese have become increasingly health conscious. aiming to advance market share from less than 1 percent of total food consumption to as much as 6-10 percent.asp?Rep_ID=25546221.exe?Rep_ID=10006016) China The interest in “Green Food” is rising quickly.usda.gov/scriptsw/AttacheRep/ gain_display_report.

Retail chains are becoming more important: Chains represent about 100 stores. U. while a third indicated a willingness to pay 50 percent more for organic products. including foods marketed as “no chemical” and “reduced chemical. • They had to learn by trial and error. Current import regulations are ambiguous. (http://www.S.gov/scriptsw/AttacheRep/ gain_display_report.asp?Rep_ID=25606800. there are several points that seem to be mentioned repeatedly when discussing the transition period with groups of producers who have integrated the organic philosophy into their operations.fas.gov/scriptsg/gain_display_report.asp?Rep_ID=25535985) Republic of Korea The market for organic products is relatively small. organic animal production is growing as well. (http://www. (http://www.gov/scriptsw/AttacheRep/ gain_display_report.usda. Imports are insignificant. A final rule to regulate organic farming is due soon.Japan Total sales. now an estimated 500 exist. • They had to discover new sources for information. there were virtually no health food stores in Mexico. A majority of consumers surveyed indicated plans to purchase more organic foods. or 20 percent of the total. Fresh fruits and vegetables account for more than three-fourths of the total. of which 85 percent is exported and only 15 percent destined for domestic consumption.asp?rep_ID=25606944.0) Mexico In 1985.usda. However. Nutrisa. They handle mainly imported products and sell over 80 percent of Mexico’s health food imports. SECTION 3 Marketing Plan . The major chains are Super Soya.340 . (http:// www.fas. but has grown rapidly over the past 10 years. although from a very small base. good possibilities are opened for a larger demand of both domestic and imported organic products.fas.exe?Rep_ID=10002682) Argentina Organic production is estimated at $20 million.fas. The health food industry is now a $300 million per year business at retail. but market opportunities exist.0) Brazil Organic farming is growing at an estimated annual rate of 20 percent. GNC. • Production methods changed dramatically.usda. but favor processed organic ingredients.” are forecast to jump 15 percent in 1999 to almost $3 billion. Although largely limited to crops. with the largest per capita GDP in Latin America and the increasing interest of supermarkets in organic products.usda. Brazil is also exporting some organic products. more than 90 percent of which are located in Mexico City and Monterrey. • Making the change was not easy. Nutrisoya and Golden Harvest. products play a major role in the Mexican health food market. such as soybeans and sugar. However. and undocumented.gov/scriptsw/ AttacheRep/gain_display_report. Recurring Themes All farm operations are unique no matter what practices are being used.

That entity must have standards that define “organically produced” and a system for ensuring that products it certifies meet those standards. Web sites.341 SECTION 3 . prior to January 2000.e. on the labeling of meat and poultry products. Congress passed the Organic Foods Production Act (OFPA) of 1990 to: • establish national standards governing the marketing of certain agricultural products as organically produced products. some natural foods retailers. Pork. More time was needed for marketing and procurement of acceptable inputs and supplies. For many years.” i. animal production claims have served as an alternative to the Marketing Plan . which resulted in about 280. processors will need to show that products have been certified as organic by an authority or entity that certifies products as “organically” produced. There was renewed emphasis on grazing room for all livestock There was an initial dip in output. There was additional emphasis on record keeping for certification maintenance. A proposed rule discussing this important issue was published on December 16. There was greater integration of the farm and livestock system. but they may be labeled “certified organic by (name of the certifying entity)” if processors seek prior approval from USDA’s Food Safety and Inspection Service (FSIS) and the claim meets certain basic criteria. local markets. Furthermore. FSIS will permit the claim “certified organic by (a certifying entity)” along with the use of animal production claims and the term “natural. continues to advise AMS on promulgating OFPA regulations. labeling was most frequently cited as the primary obstacle in developing a scaled-up market for organic meats. However. Beef and Poultry Products Marketing. formed as a result of the OFPA.. frequently followed by return to near normal levels of production plus advantage of reduced inputs. USDA’s Agricultural Marketing Service (AMS) is still developing regulations for the use of the term organic on the labeling of food products. 1997. in the Federal Register (62 FR 65850). Organic meats presently have no legal status with the USDA. to use the claim in labeling.• • • • • • They had to learn to think organically. and • facilitate commerce in organically produced fresh and processed food. AMS is planning to reissue a proposed rule that will address issues raised and seek further comment. the National Organic Standards Board (NOSB). As a result.000 public comments. promotion and cultivation of consumer attitudes are all needed to escalate demand for organic meat products. Meat Labeling Issue Use of the term “organic” by itself is not permissible on meat and poultry products.” FSIS has permitted the application of “animal production claims. However. truthful statements about how the animals from which meat and poultry products are derived or raised. Specifically. as they could not be legally labeled purely as organic – even if certified privately. Nearly as much time was spent on marketing as on production. restaurants and farmers markets. • assure consumers that organically produced products meet a consistent standard. producers were mainly left to conditionally label their meat products and market them directly into a fragmented market place made up fractionally of direct-purchase consumers.

” “No Antibiotics Used in Raising.” The system FSIS has in place for evaluating the necessary supporting documentation to ensure the accuracy of animal production claims. b. use of the term “organic” on the labeling of meat and poultry products in the absence of a uniformly accepted definition. as well as Iowa’s Organic Agricultural Products Act of 1998.000 worth of product per year of total agricultural products are exempted. Under the Organic Foods Production Act (OFPA). Selecting a Certification Entity Once producers have identified which markets they will be selling to.Once producers have identified which markets they will be selling to. (1) A person who receives $5000 or less in annual gross income from the sale of agricultural products shall be exempt from fees and mandatory organic certification. The exempted producer or handler selling agricultural products as organic shall demonstrate compliance with Iowa Code chapter 190C and this chapter by implementation and documentation of the following measures: SECTION 3 Marketing Plan .342 . When trying to think organically.” “Raised in an Open Pasture. this does not mean that you may not have certain reporting and record keeping responsibilities when presenting or labeling a product as organic. two. Thus. it is best to go to those markets and ask which certification they need. Handlers who do not process agricultural products are exempt from certification. this is the reason many present organic producers and processors maintain certifications with one.” “Raised without Added Hormones. a. The Iowa Act states: 47.” and “Free Range. will continue to be used whenever these types of claims are made. Even though your operation may be of a size that is exempt from certification requirements. farms and handling operations that sell less than $5. Again. (2) Final retailers of agricultural products who do not process agricultural products are exempted from organic certification in the state of Iowa.” “Corn Fed. Examples of animal production claims are “No Hormone Implants Used in Raising. Exemptions There may be cases where your operation is exempt. such as producer affidavits and raising protocols.” “Fed an All Vegetable Diet.5(11) Parties exempted from organic certification. This term may be used in combination with the claim “certified organic by (a certifying entity)” when the conditions of the policy are met. Exempted parties. it is best to go to those markets and ask which certification they need. three or maybe even four different private certification entities – to make sure their product always has the opportunity to move into the best market while still wearing an organic label. producers may wish to continue the use of animal production claims on meat and poultry labeling. These exemptions do not release you from the responsibility of being able to verify the claims you might make on your product labels or in your marketing materials. The term “natural” may be used when products contain no artificial ingredients and are no more than minimally processed in accordance with FSIS Policy Memo 055. always keep in mind that the central theme in the organic process is continuous tracking of product from time and place of origin to final point of purchase.

5207 70th Street.nafdma. 62 White Loaf Road. MD 20705-2351 Phone: (301) 504-6559 www. collecting and providing information about sustainable and alternative agricultural systems. (3) Maintain records adequate to verify compliance and trace an organic product from production site to sale for consumption.nal.” and “Fresh to Processed: Adding Value for Specialty Markets. 10301 Baltimore Ave.. Appropriate Technology Transfer for Rural Areas (ATTRA) Appropriate Technology Transfer for Rural Areas (ATTRA). PO Box 3657.343 SECTION 3 . National Agricultural Library. AR 72702 Phone: (800) 346-9140 www.(1) Submit to the department a signed Exempt Party Declaration form. MA 01073 Phone: (413) 529-0386 or (888) 884-9270 www. Membership is $20. Southampton. publications and resources free of charge to farmers.attra. 304.” North American Farmers’ Direct Marketing Association (NAFDMA) North American Farmers’ Direct Marketing Association (NAFDMA). Resources for Additional Information • Alternative Farming Systems Information Center (AFSIC) Alternative Farming Systems Information Center (AFSIC). American Pastured Poultry Producers Association APPPA. you may find certification is necessary to sell any quantity of organic production to parties that must in turn guarantee an organic certification to their customers. Even if your production levels exempt you from state or federal certification requirements. Chippewa Falls. One of eight information centers at the library. attesting to knowledge of and compliance with Iowa Code chapter 190C and this chapter. legal issues and more. Records must be kept for five years. WI 54729 Phone: (715) 723-2293 dkaufman@discover-net. marketing. Fayetteville. AFSIC specializes in locating.com • • • Marketing Plan .org Provides assistance. It is a common practice amongst processors to refuse acceptance of delivery of any product claimed to be organic until the seller provides proper documentation from the preferred certification agency.gov/afsic. Beltsville. Extension educators and other ag professionals. processing equipment. Ask for “Adding Value to Farm Products: An Overview. Rm.usda.net American Pastured Poultry Producers Association publishes a quarterly newsletter about production practices. as provided by the department. (2) Submit a $10 processing fee with the declaration to the department. A database networks producers and customers.

sare. U. DC 20250-2223 Phone: (202) 720-5203 www.org/san/htdocs/pubs As SARE’s national outreach arm.344 .sare. University of Vermont. Department of Agriculture. VT 05405-0082 www.org Administered by USDA-CSREES. SAN disseminates information through electronic and print publications. SW.• • Sustainable Agriculture Network (SAN) Sustainable Agriculture Network (SAN).S. Stop 2223. Sustainable Agriculture Research and Education (SARE) program Sustainable Agriculture Research and Education (SARE) program.umv. Call (802) 656-0471 or e-mail nesare@zoo. Hills Building.edu for questions about bulk discounts or rush orders. Room 10. Washington. Burlington. SECTION 3 Marketing Plan . SARE studies and spreads information about sustainable agriculture via a nationwide grants program. 1400 Independence Ave.

It could be as simple as being a quick call.345 SECTION 3 . This is a special area of demand that remains under-served in the food market. there is not a member of a household who wants to cook or feels competent to do it well. consumers want to know more about the how their food was produced and how it was processed prior to purchase. and a 31 percent growth over the 1995 study. flavorful. a 53 percent growth over the same study conducted in 1997. The chef would benefit from an expanded possibility of marketing to prestige levels using “food with a face” and the Marketing Plan . firm. broadcast and online media over a three-month period in 1999. Those are among words two established specialty meat marketers are currently using to sell mail order packages of four 10-ounce filets for $65. thereby saving the chef a trip to a market. well-marbled. The image of a humble man and his donkey gathering hand picked coffee beans one-at-a-time (a recent advertising image for a major coffee company) garners mass consumer favor. The organization studied articles regarding diet and food safety news issued by 39 print. incredibly juicy. Where this could fit the smaller meat marketer is in hooking products and services to the personal chef. quick response provider of always fresh. then actually come into the home at scheduled times to prepare and serve the final dishes. The results were staggering. there are merit perceptions among consumers that can be tapped to realize added value in products. Customers would know you and the quality of your goods.00 and four 16-ounce T-Bones for $83. tender. services are springing up that help these people create special menus. It may be the idea of bragging rights or just being the one to introduce others to something new or different. There may also be an element of discovery that can be tapped. tastiest. Instead of agreeing to pay regular market price for a “very good” piece of beef. Now more than ever. beefy. hand-cut. a consumer may instead choose to pay extra for meat products that are marketed as succulent.Marketing Plan Marketing Targets Food with a Face (Relationship Marketing) According to the International Food Information Council.00. the idea that the product is a cut above mainstream fare has an appeal. this comes from a need in many consumers to underscore their ability to make great choices. perfectly aged. Increasingly. It apparently is comforting to consumers to feel a sense of relationship with the individuals who actually produce and handle their food. tender. tastier. Prestige Marketing In certain markets. outstanding. Shipping and postage not included. tasty. robust and/or delicious. you can develop a relationship that will foster brand loyalty and repeat business.” The service caters (literally) to busy people who do not prefer to invest their time fixing a meal.260 nutrition. If you can put a face with your food product and create a sustainable image that favorably connects your consumer to you or your group. In part. always tender products. Serving the Server A growing segment of the food service sector is a phenomenon called “personal chefs. meaty. Hence. the desire by consumers to know and understand more about their food is fueling an explosion of available food information. Many people find it desirable to buy something “different” or in some way special. health and food safety stories appeared during the three months reviewed in 1999. Certainly. Some 1. gourmet.

In those situations. With the surge in households having all adult members working outside the home there is more emphasis on time management. Two options for the beef marketer are obvious. Personal chefs and standard catering are also forms of solution marketing. It also keeps costs lower. There will also be the need to compete for shelf space at retail. SECTION 3 Marketing Plan . this could be an ideal place to offer beef entrees. one could become a specialty supplier to a company that has a brand and marketplace slotting already in place. fees are negotiable. The second option is to create product and brand. Most workers do not think about the evening meal until late in the day. This is an area of growth for beef even though it already owns the center of the plate. such as slotting fees paid to the store. this facilitates selling product and potentially working an additional service fee into the transaction. To some extent. In fact. tasty and work well in less than 20 minutes. This type of approach fosters expansion of product volume more quickly than the direct in-house marketing approach. so the opportunity is there to provide the solution through their car window as they leave. Doing so provides a way for the producer owned enterprise to get more “feet on the street” without payroll expense. Keep in mind. In fact. the old idea of the lunch wagon at a factory parking lot or office complex is still quite viable. Studies continue to show the female is the primary decision-maker on food purchasing.346 . as well as high costs in packaging and labeling in the early stages because volume will be low. The idea of stopping at the grocery or getting home to face the evening chore is not always a favorable one. First. This is the high volume. heat-and-serve entrees and complete meals. the extra service a company provides is the large value item in the equation. Solution Marketing The traditional view of solution marketing in food would certainly include the home meal replacement (HMR). price or quality. particularly by the female member of the household. In a similar vein. Those decisions are leaning toward convenience. which results in added flexibility. if the target companies already have beef suppliers. then enter the retail market directly. low margin and short run approach to moving beef. This approach brings much higher margin but will certainly be slower to build volume. the challenge is to somehow replace them through service. Among high beef user demographic groups. The whole concept of “serving the server” is built on the idea of how to utilize marketing people and organizations that already exist. including fast. There are substantial costs involved in creating brand identity. the idea of offering ready-to-heat-and-eat meals to workers as they exit the parking lot for home could be very well received.producer benefits from the endorsement of the personal chef. The challenge is to create beefbased meal options that are attractive.

Eating habits and tastes are closely tied to family customs and local/regional norms. Marketing Plan .Ethnic Marketing As you look for ways to sell the “whole set” of products coming from the market animal it is important to take a really hard look at other cultures and the ways of their countries for outlets. This is known as marketing to the learned responses of your consumer. it is important to gain a full understanding of the preferences and practices of the groups you hope to win over as new customers. In order to target these types of markets.347 SECTION 3 .

348 .SECTION 3 Marketing Plan .

Although there is every reason to be cautious when entering into any business transaction. In the market place. As part of her vision came a commitment not to stray from the core business at which her company would become specialists.349 SECTION 3 . Know who is supposed to perform what. Of course. As with any contract. cruise or casino business. Also understand that many of the markets that you might want to enter may only purchase through brokers. brokers provide a necessary service. There are also a few good ideas planted in the copy – ideas that could surely take root in other locales. 1950. you should have it reviewed by your legal counsel before signing if there is any part you do not understand or are concerned with. Inc. Know it and be comfortable with it before you sign. Marketing Plan . Brokers also tend to stand at the intersection through which all types of market knowledge passes daily. and who is responsible for picking up the pieces if somebody drops the ball. Meats and Provisions. there are good brokers and some that aren’t so good. brokers get paid for what they do. There will be days when you are going to need to move product and a broker is the only one bidding. As in any business or service. The only difficulty you are likely to encounter with a broker is if you enter into an agreement that you do not fully understand or have not asked for clarification of all the details. Consider a broker as a source of knowledge and opportunity. Essentially.” It just could be that someone who started out shopping through this broker’s list for a special imported meat product might find out about one of your products and give it a try. A study of the company’s ad copy and product listing will illustrate how doing business with a broker might benefit a start-up company by putting its products on a much larger “menu. train. Remember the final decision is yours on whether or not you want to participate in a broker’s program. when they are supposed to perform it. This has not changed.Marketing Plan About Brokers For the most part. don’t ever hesitate to listen to a broker’s offer – it just might be the best one you are going to get that day.) Chester White Company. The following pages show a listing of the products offered to the market place by one Eastern U. (Note: The name of this brokerage company has been changed to avoid any type of endorsement. the brokers will probably find a start-up business long before it goes looking for them. A broker could be the most economical ticket into the plane. was founded on September 25. We are soon to celebrate our 50th birthday and our company continues to grow and prosper. The information is presented purely as an example of how others are selling product and why a broker may be a good person to get to know. they are the professional go-betweens that move product from the producer to the processor and on to the retailer.S. Deli. broker. Auntie Bea once had a vision to start a Food Brokerage Company specializing in Dairy. Pay is their reward for the risk they take when they stand between buyer and seller as the one with the least control but the greatest responsibility for everyone’s performance.

the business we know best.” At Chester White Company. in the unlikely event a customer has a problem with one of our products. Monday through Friday. Each packer knows that they are being represented by a company who understands their business inside and out. Chester White Company has the luxury of being able to choose the very best packers to represent. or frozen food lines. expertise and work ethic. in person. We do not handle any products which do not fall in to the Dairy. A customer can call this office and talk to a live person from 6:00 a.m. perishables is what we are all about.There are many food brokers in this market and in markets across the country who claim to specialize in these areas but if you take a close look. through 6:00 p. Worse yet. the problem goes away. by simply dialing our toll free number.m. Meat & Provisions format. The real winner is our valued customer base. there are even some food brokers who service their refrigerated principals with just a “perishables division. Any one who answers the phone in our office is qualified to take and process an order or obtain information requested by packers and customers alike. professionalism. Because we specialize. Our commitment to quality products and services extends to everything we do. Several members of our company have been food industry professionals for well over 40 years. follow-up and professionalism. SECTION 3 Marketing Plan . within 24 hours of our office being contacted. By sticking to our core business. Even though our office hours are from 8:30 to 5:00. Our staff is highly trained and boasts of years of experience in the meat business. This is not an area we have expertise in. we have grown and prospered over the past 50 years in to a brokerage company most respected for quality products.350 . there is always someone here a little early or a little late to personally handle a question comment or an order. most of them have bakery lines. It is our goal as a company to become the standard by which our customers and packers alike judge every other sales and marketing effort they come in contact with. We guarantee it. we guarantee that the problem will be taken care of. This is not where our interests lie. We are the fresh and processed meat and cheese folks. or grocery lines. We feel we are privileged to sell only the very finest products in a category. In other words. If. Some of them even have product lines which are non-foods. We will constantly strive to meet and exceed all expectations regarding customer service. This works out well for all parties involved. quality people. This is not what we are all about. Deli.

The nation’s leading processor of bone in smoked hams.L. Glatt Kosher veal products. specialist in the dairy industry supplying natural cheeses for pizza and other pizza Marketing Plan . proven recipes and leading edge packaging to insure the longest shelf life. Bierig Brothers ships veal cuts all over the eastern half of the united states of America. portions. Garden-Fresh Foods. marinated and rotisserie fresh pork products Moisture enhanced Fresh Pork Products Slaughterers and packers of premium quality. Quality and consistency are the benchmarks of Bierig Veal products. Miami Beef Company Prima Foods RLB Food Distributors B. dips and fresh cut produce. Inc. Offers a new concept! A line of “Meat Solutions” complete meals ready to go into the oven using only the freshest of meats. Cook Family Foods. deli and salad line in the industry Finest quality American lamb and veal Simply the very best you can buy Bacon. Inc Product Seasoned. bacon and more bacon Quality fresh pork cuts for retail. award winning pâtés and charcuterie products Pre-cooked chicken. Ltd Cooper Foods Formaggio Italian Cheese Specialities. Inc. Inc. We also enjoy a professional association with H.351 SECTION 3 . Portion control meat products Imported ham and vegetable products from around the world Highest quality produce. From their new facility in Vineland New Jersey. Rosen & Son Spring Lake American Cheese Sugar Creek Packing Company Swift & Company Fresh Pork Salem Packing Company Trois Petits Cochons Watson’s Quality Food Products. desserts. turkey. food service and further processing Cow and bull beef cuts and lean beef trim “Three Little Pigs” all natural. ham steaks and other specialty smoked ham products Quality deli turkey breast and cured turkey products The leader in the specialty mozzarella industry Garden Fresh Foods is one of the nations leading manufacturers of salads. Inc. Stein. beef and pork products including marinated chicken and hot wings Chickadee Farms Wood River Foods.Chester White Brokerage Company Packer Armour Armour Advantage Bierig Brothers.

352 .SECTION 3 Marketing Plan .

You may want to set a lower-thanmarket place price to gain market share and to introduce your product. As any of these conditions change. The new business does not have information about the market place that is normally brought in by actually selling a product in the market. features and benefits unique to your product. As a small manufacturer. The point is this: There is more to pricing than just internal costs. Pricing should be considered as part of the marketing mix of product performance. technology. overhead and interest. This is the lowest price that you can set and still make a profit. Your goal may be to maximize profits.” Your challenge is to provide a competitive product priced within that range. the market most likely will determine the pricing at which your product will sell. Two factors are important in determining pricing.” That is. established by the market. The difference between the price ceiling. and estimating the sales price. Good pricing requires an understanding of influence in market factors. formulas are much the same as computers. Basic Rules of Pricing Pricing of products is a part of marketing strategy. garbage out. and other advantages you believe you have over your competitors. the answers are only as good as the assumptions and information used. the economy. The market sets a price ceiling. One. These can be difficult tasks. Internal costs include (but are not limited to) labor. That. A firm that is offering a product at a lower margin may do so because of capacity issues or because the product is complimentary to another product the firm is selling. Marketing Plan . material. The three factors of profits are cost. and the internal cost of your business. in the proper proportions. in the proper proportions. and the price floor. the maximum price you can set for your product and still compete in the market place against similar products. The ceiling is. Why are these two issues so often difficult in the new business venture? For one thing. However. The new business also can lack any market clout – it must be a follower and not a leader in pricing. established by internal costs and profits. in effect.Marketing Plan Pricing and Estimating Sales Potential Two tasks for any new business are estimating the potential sales volume. selling and the unit sales volume. you should not compete on the basis of price alone unless you are the low cost producer. because your product is new and is not recognized by consumers as having the same or superior features and benefits. The three factors of profits are cost. is the “relevant price range. Two. To set the price of your product the same as that one may not work. The product you are selling may have a rival product that is well established in the market place with many recognized features and benefits. prices may also change. The goal in setting prices should be to maximize profit as well as gain a share of the market place. “garbage in. your internal costs and profit goal can be used to establish a price floor. is difficult to know.353 SECTION 3 . New business owners are often surprised to learn that formulas exist that can be of help in both of these areas. the new business owner often lacks good information about the cost of the new product if it is one that will be manufactured in his/her business rather than purchased. the amount you think you can sell in the first year. competition and resources. quality. selling and the unit sales volume. delivery time. for a new business.

Both represent the difference between cost of merchandise and selling price. the anticipated margin will not be attained. Example Suppose we buy an article for $1.20 and sell it for $1.20. however. However. we must have a margin of 25 percent to cover the cost of operation and net profit. Adding 40 cents to the cost prices gives us a selling price of $1. Although many consider markup a percentage of the selling price. Margin is always figured on the selling price. What must the selling price be? The markup of 25 percent times the cost of $1. which is one-fourth or 25 percent of the selling price. however. It is a percentage of sales. The percentages. He assumes that the percentages of margin and markup on cost are the same. The margin is 40 cents. find your margin or gross SECTION 3 Marketing Plan .60. if we want to mark up the article so that we have a 25 percent margin. The selling price is always 100 percent because it is the total amount of money a business is going to get from the sale. This confusion is not strange. Looking at the Markup Table which follows.354 . and we have a selling price of $1. We would be losing money by pricing merchandise on the basis of a 25 percent markup on cost! To realize a 25 percent margin. equals 40 cents. are different.20 equals 30 cents. Markup can be computed as either a percentage of cost or of selling price. Therefore. retailing authorities point out that figuring markup on the cost price is easier and less confusing in everyday pricing. The important thing to keep in mind is that when markup is figured on the selling price. or 20 percent.50 with a margin of 30 cents. Multiplying 33 1/3 percent times the cost. The following table shows what the markup on the cost must be to give the desired margin in a number of more common cases. However – A markup on cost of 25 percent gives a selling price of $1.20. a different markup percentage must be used than when figuring the markup on the cost price. Selling price covers the cost of merchandise plus all expenses of operation and net profit. because both margin and markup in dollars are identical. To use this table.20 and wish to sell it on a markup of 25 percent. You will hear both terms. we must first determine the percentage that will yield the desired margin when applied to the cost price.60. we would have to use a markup of 33 1/3 percent on the cost price. you must understand the difference between margin and markup. Therefore. Before that. Add the 30 cents to the cost price of $1. our margin on this article would be 25 percent.50. $1. Margin and Markup Many a business fails to make an expected profit because its owner figures his percentage of margin on the cost of goods.How to Compute Price Based on Cost – Setting the Price Floor Several methods of cost based pricing will be discussed with examples. Example Suppose we buy an article for $1. Otherwise. The manufacturer often talks about margins. we see that a 25 percent margin is equivalent to a 33 1/3 percent markup on cost. and the retailer or wholesaler talks about markups.

look up the markup percent in the table above.0 5.0 Markup Percent of Cost 5.6 14.0 31.0 10.4 75.3 17.7 23.1 37.0 16.0 9.0 7.0 29.355 SECTION 3 .0 34.0 26.3 58.4 Formulas Which formula to use depends on what information you have to determine the price.1 12.0 36.0 10.0 32.0 26.1 12.0 Markup Percent of Cost 21.7 69.1 24.0 Markup Percent of Cost 42.5 13.0 27.6 19.0 17.4 12.9 11.0 33. If you are talking to the retailer.0 41.3 51.5 38.9 30.60.5 40. Multiply the cost of the article by the corresponding percentage in the right hand column.20*. If you know what contribution margin you want but need to know if the margin will give you a sales price within the relevant range and an acceptable markup to the retailer.0 28.0 22.8 Margin Percent of Selling Price 30.0 11.3 6.7 11.0 35.0 22.7 60.0 22.0 43.0 39. we bought an item for $1. who says he or she wants to have a 30 percent margin on sales.9 40.5 25.5 53.0 23. use the formula B.0 29.3 66.3 35.9 16.2 22.0 20.0 61.0 8.0 12.6 28.5 18.5 72. We wanted to have a 25 percent contribution margin based on sales price left from the sale after paying expenses.3 63.0 39.5 Margin Percent of Selling Price 17. The result added to the cost gives the correct selling price. One.333) = $1. Does this give you the desired contribution margin of 25 percent? Marketing Plan .20.8 56.3%. Markup Table Margin Percent of Selling Price 4.5 23.6 33. Price = 1. Percent Markup on Cost = 25/(100-25) *100 = 33. The second way is to use our formula B.7 9.0 42.9 47.0 20.2 29.0 18.8 5.4 7. What should the price be? There are two ways to work the problem.5 8.20+(1. in the above example.profit percentage in the left-hand column.0 6. Formula B: Percentage Margin on Selling Price Percent Margin = 100% Markup on Cost/(100% + % Markup on Cost) Note: markup on the selling price is equal to the contribution or gross profit margin per product Use this formula when you know the total cost of your product with profit and you know the contribution or gross profit margin you want to attain.9 44.0 38. For example.0 37. use formula A.0 31.0 15.0 25.9 65.0 37.0 14.1 49.0 13.5 19.0 21.

even though you do not make a profit. is that you have other acceptable products and that this particular product is needed or required in your product line.60 Less: Cost = 1. That information should be discovered during your competitor analysis. What alternatives do you have if the market will not take your product at the price you have set? There are several basic options to explore. you will make extra money. Then if the market will accept the product at that price. however.3 = 50%.50) = $1. then you have the option to not make the product.20*.20 Contribution = .3) = 33.3/67. delivery. A mistake you do not want to make is to put the product on the market at a low price. may prove to be more costly and time consuming. which squeezes your margins. The price is then $1. This practice is simply more favorable in consumers’ eyes. This may require changes in packaging. which is $1. The assumption here. Will that price still cover costs and allow for an acceptable margin? If not.3 percent provides us with a gross margin based on sales of 25 percent. Formula A: Percentage Markup on Cost Percent Markup = % Markup on Selling Price/(100%-%Markup on Selling Price) Two basic methods to determine the price ceiling are trial and error in the market place or market research. you will find market research is necessary to see how competitive products are priced and what is happening as a result.356 . If not. Even then. One is to lower the price. etc. Does that price put you in the relevant range? Price Ceiling Two basic methods to determine the price ceiling are trial and error in the market place or market research.30/1. how can you compute a sales price? Again assume you know the cost of goods. SECTION 3 Marketing Plan . Will it be less expensive and easier to actually make a small amount of product and do test pricing in the market place than to use market research techniques? Most small firms find it more reasonable to try the market introduction approach.60 *100 = 25% So a markup on cost of goods of 33. You may choose to accept the lower cost if the price will cover cost of goods and still contribute to paying overhead costs.30 Contribution Margin = . Market research. Another option is to reduce your costs so the price does cover costs. Another option is to accept the lower margin. The trial and error approach requires that the product be introduced to the market place to see what the customer will pay for it.3 percent markup on the sales price. You often will find it easier to lower your price at a later date than to raise it. portion size.Sales = $1.20. if the retailer says he/she wants a 33. In this case.80.20 +(1. of course.3/(100-33. Consider putting the product on the market with higher margins. Percent Markup on Cost = 33. you can lower the price to try to determine where the product will sell.

the price would then be $10 +$10/60%.00/5. the less sensitive the buyers are to prices when purchasing your product. Finally.00 = 40%. Marketing Plan . wholesale and manufacturing industries. then. is to produce a product at a price equal to or below the buyers’ perceived value for your product. then price may be less of an issue. So the price is $33. Determine a mark-up on percentage based on price per pound. a compilation of financial ratios for retail.33. compiled from company financial statements. Example 2 If the value of the material is high or material is the limiting factor. Price sensitivity comes into play with differentiation or trying to raise price. is to somehow differentiate your product from your competitors. If you want a 30 percent contribution margin. If the material cost is $5 per pound. if the market place will not accept your price. the assumption is made that the contribution margin can be determined. With these costs. the more likely they are to buy at a higher price. Proof is this way: $33.33. manufacturing overhead. Also. The mark-up on factor to use for pounds is 40 percent. You are trying to make customers recognize your product as one they will pay a higher price to have. That is. raw material or contribution per pound. then the customer may be willing to pay a higher price. In that case. Contribution margin of $13.33 equals the desired 40 percent. however. Cost Based Approaches to Pricing Using Contribution Margin The price can be set using several approaches based on which cost input has higher or equal value. if a substitute product is readily available. For example. Keep in mind that products are bought on the basis of perceived value in the minds of the buyers and not on the basis of what it costs you to produce the products.00 = 13. Your challenge. by Schonfield and Associates. labor. a way to approach the issue is to use the gross margin from one of two sources: Robert Morris Annual Statement Studies. a customer may choose the lower priced competitor’s product. Example 1 You determine your desired contribution margin (gross profit margin) is 30 percent. if the purchase is not a major budget item. or the IRS Corporate Financial Ratios.Another option. The cost of material is $10 per pound and direct labor cost is $10 per hour. a contribution margin can be established for material. Pricing Examples These examples are approached from the aspect of four elements of pricing: direct costs. Most banks and libraries will have a copy of the Robert Morris book. Direct labor and material is 60 percent of the selling price. if the buyer buys your product on an infrequent basis. then a fixed contribution margin per labor hour may be desired. Often.33. the new venture has difficulty determining all costs to determine the contribution margin required.357 SECTION 3 . non-manufacturing overhead and profit.20.33 divided by sales price of $33. Here is an example based on pounds. and a contribution of $2 per pound is required. there is less price sensitivity. But if there is no close substitute. If the labor is the limiting factor or if labor can not be fully utilized at all times. Then contribution as a percentage of pounds is 2.

00 Total = $8. 1976.Material cost = Labor cost = $3. Chairman of Lennon/Rose and Company.002. Victor A.00 Market conditions will affect pricing decisions. SECTION 3 Marketing Plan . Small Business Administration.00 Plus Contribution = Total price = $10. University of Colorado.005. Pricing for Small Manufacturers.00 $5. Lennon. IL. Chicago..358 . Management Aids 1. What is the Best Selling Price?..00 $2. but pricing based on costs will help you maximize your profits. Resources Wilsted. Small Business Administration. Management Aids 1. William D.

Find out what distributors your competitors are using. At the present time. Post messages to news groups available on the Internet. Some examples of small-scale integrated slaughter/processing and sales of carcass meat products exist successfully in the U. Many producers located near urban areas of the upper Midwest and far West report sales of live animals directly from the farm. most distribution to existing ethnic and other specialty markets takes place as a direct sale from a producer (live animal).Marketing Plan Distribution of Product Linking all vertical segments is product distribution. This method of distribution is only suitable for the very small-scale market. These small-scale packer processors have a common set of strategies designed to offset higher cost slaughter/processing and distribution costs compared to the commodity channel. Some producers supply and assist with slaughtering of individual animals for direct ethnic buyers. Some of those characteristics include: • Flexible (multi-species) slaughter • Flexible job description of most workers • Targeted customer segments (ethnic groups. etc. Many of these operations are integrated to production.) • Very high service • Catering to individual local demand for product/service combinations • Small order acceptability Checklist 1 Finding Potential Distributor Partner Ask the end users of your products what distributors they prefer to buy from. Marketing Plan . and Canada. Consult directories published by distributor associations. Most have acquired packing and processing services by the purchase and restoration of existing small-scale locker plants in the immediate area of production. Identify distributors of allied products. but some rely on local producers for live animal sales.359 SECTION 3 . In some cases the animals are delivered for slaughter to local processing plants. Place ads in industry trade and association publications. slaughter/processor (carcass or boxed) or through a network of jobbers. ultra fresh.) Attend meetings and trade shows sponsored by industry associations. published by Gale Research.S. Ask current distributors if they’re interested in expanding their territories or know of other distributors who might be available. (Check your local public library for the Encyclopedia of Associations.

ability to generate leads.360 . The best efforts to achieve market share and other sales goals in a specific geographical or other area of responsibility. supplementary and complimentary items. changes in management and other personnel. A level of service that encourages long-term loyalty on the part of the customer toward the manufacturer and its products. Industrial Performance Group. ability to track turnover rates and other important statistics. Prompt communication with the manufacturer regarding changes in the local market and/or distributor’s own business (e.. timeliness of payments. etc. IL. Growth potential — capability of distributor to keep pace with any anticipated growth in the local market. Prompt payment of all financial obligations.. Management ability — viewpoint of distributor on human resources. Technology capabilities — possession of and familiarity with the technology required to do business together most efficiently. financial management. Overall fit — how well your goals. including competitive. etc. Inventory handling capabilities — warehouse space. and/or operating policies). Knowledge of the local market — ability to accurately forecast future sales and identify changes in customer needs and expectations. Sales performance — past sales history for same or similar products. Commitment of sufficient resources required for aggressive sales and marketing of the manufacturer’s products. Succession planning — arrangements in place to continue the distributorship in case of retirement or death of distributor principal. A commitment to stock recommended inventories of products based on the needs of the local market. Inc. selling skills. President. Checklist 3 What to Expect from a Distributor Maintenance of a well-qualified and well-trained sales force that is familiar with the manufacturer’s products and is skilled in demonstrating the advantages of those products to the customer. Sales and marketing capabilities — size of outside and inside sales force. Northfield. SECTION 3 Marketing Plan . operating philosophies and business practices mesh with those of the distributor.Checklist 2 Evaluating Potential Distributors Financial stability — credit history. training. technical competence. Physical facilities and technology necessary to consistently perform the above functions.g. etc. Stecki. communication. planning. Resource Edward S. Product mix — types of products carried.

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