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Market Research Tim Johnson ATTRA Program Specialist.

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Presentation on theme: "Market Research Tim Johnson ATTRA Program Specialist."— Presentation transcript:

1 Market Research Tim Johnson ATTRA Program Specialist

2 ATTRA – National Sustainable Agriculture Information Service P.O. Box 3657 Fayetteville, AR (English) (Espanol)

3 Market Research Knowledge is power. - Sir Francis Bacon Take Home Message: Gathering information about your market is critical to your companys success

4 Market Research Market Research lets you discover how your company actually meets, exceeds or falls short of customers expectations. (Big Trap) Market Research lets you discover how your company actually meets, exceeds or falls short of customers expectations. (Big Trap)

5 Market Research can also identify competitive threats and opportunities Market Research can also identify competitive threats and opportunities Market Research

6 Two categories Two categories Primary market research Primary market research Based on data collected from your customers, competitors, employees, and suppliers Based on data collected from your customers, competitors, employees, and suppliers Secondary market research Secondary market research Based on data collected from industry studies, books, research, and other published sources. Based on data collected from industry studies, books, research, and other published sources. Experience is the name everyone gives to their mistakes - Oscar Wilde

7 Customer Characteristics Four Essential Characteristics They have a need They have a need Resources to buy what you are selling Resources to buy what you are selling Decision making power Decision making power Easy access to product or service Easy access to product or service

8 Secondary Research Identify a Customer Profile Identify a Customer Profile Demographics Demographics Who buys Who buys Where do they live, level of home ownership Where do they live, level of home ownership Income Income Age Age Race Race Marital Status Marital Status Education Education

9 Secondary Research Secondary information already exists Secondary information already exists Efforts spent locating and gathering Efforts spent locating and gathering Most info is available from various government agencies, local libraries, and the internet. Most info is available from various government agencies, local libraries, and the internet. North Carolina District Office 6302 Fairview Road, Suite 300 Charlotte, NC (704) Phone | (704) Fax

10 Secondary Research Rowan County, NC Rowan County, NC 19% growth last decade, total population 131,825 19% growth last decade, total population 131,825 70% residents own their homes, median age is % residents own their homes, median age is 36.6 >50% of households make >$35K >50% of households make >$35K $38,261 is median income $38,261 is median income 41% white collar jobs 41% white collar jobs Freightliner, Schools, Food Lion Freightliner, Schools, Food Lion

11 Secondary Research Charlotte, NC Charlotte, NC 26 th largest city in U.S. 26 th largest city in U.S. 594,176 people in city, 1.4 million in metro area 594,176 people in city, 1.4 million in metro area Ave. household effective buying income $58,862 Ave. household effective buying income $58,862 63% of households have EBI > $35K 63% of households have EBI > $35K

12 Primary Research The information probably does not exist The information probably does not exist Conduct surveys Conduct surveys Questionnaires Questionnaires Focus Groups Focus Groups Interviews Interviews First hand observation First hand observation Ask your current customers Ask your current customers Observe customers in retail establishments Observe customers in retail establishments

13 Research Outcome Increased Understanding of … Identified customer needs and wants Identified customer needs and wants Determine if product meets the customers needs Determine if product meets the customers needs Identifies potential target markets Identifies potential target markets Determines the best advertising technique Determines the best advertising technique In the business world, the rearview mirror is always clearer than the windshield. - Warren Buffett

14 Benefits Guides communication Guides communication Identifies opportunities Identifies opportunities Minimizes risk Minimizes risk Identifies potential problems Identifies potential problems Provides benchmarks Provides benchmarks

15 Market Research Market Research is also a continual process, conducting research for the business plan is not enough. Youll have to do it again, and again, and again, to stay attuned to your customers needs and address the customer characteristics you have identified as a target market.

16 Market Research It is worth it? It is worth it? 84% of those who used it said yes 84% of those who used it said yes 58% said yes to identifying new opportunities 58% said yes to identifying new opportunities Can you really afford not to? Can you really afford not to?

17 Case Studies Tallgrass Prairie Producers Co-op Tallgrass Prairie Producers Co-op Ten families in Kansas Ten families in Kansas Marketed grass-fed beef for 5 years Marketed grass-fed beef for 5 years Process verified, nutritional testing Process verified, nutritional testing Won national attention for their products Won national attention for their products Conducted market analysis, had a detailed business plan. Conducted market analysis, had a detailed business plan.

18 Case Studies Tallgrass Prairie Producers Co-op Tallgrass Prairie Producers Co-op Management of Co-op took too much time away from what they really wanted to do… run the farm Management of Co-op took too much time away from what they really wanted to do… run the farm Niche marketing may not be all that it appears Niche marketing may not be all that it appears Expertise in marketing and management needed Expertise in marketing and management needed Price and convenience really do matter Price and convenience really do matter Natural foods? –many contradictions Natural foods? –many contradictions How much education of consumers can you afford? How much education of consumers can you afford? Quality of life and sustainability on personal level Quality of life and sustainability on personal level

19 Case Studies Fresh Air Pork Fresh Air Pork Group of producers in Northeast Iowa Group of producers in Northeast Iowa Started in 1999, closed in 2002 Started in 1999, closed in 2002 Marketed hogs that met the Niman Ranch criteria of no antibiotics, and Animal Welfare Institute certified Marketed hogs that met the Niman Ranch criteria of no antibiotics, and Animal Welfare Institute certified Worked with experts in direct meat marketing Worked with experts in direct meat marketing Target market-local sales, health food stores, and institutional buying Target market-local sales, health food stores, and institutional buying

20 Case Studies Fresh Air Pork Fresh Air Pork Success w/ two health food stores and locally Success w/ two health food stores and locally Never sold any product to an institution Never sold any product to an institution Could not sell the value cuts – loins, hams Could not sell the value cuts – loins, hams Complex nature of meat business Complex nature of meat business Asset : developed relationship with professionals Asset : developed relationship with professionals

21 Market Research Knowledge is power. - Sir Francis Bacon Take Home Message: Gathering information about your market is critical to your companys success

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