1. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Marketing plans typically include a description of: Market conditions Products Buyers Sales potential Contract terms or pricing strategy Promotion and distribution ideas Resources

2. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan All of these make up your marketing strategy. What questions should you ask when developing your marketing plan?

3. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan The questions you address will depend on whether your strategy targets: New products New buyers Both

4. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan FINPACK Business Plan software can be used to develop a marketing plan for: Traditional, bulk commodities Specialty commodities and value-added products

5. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Business Planning Guide can be used for any commodity. However worksheets are geared toward : Specialty commodities Value-added products Services Alternative distribution

6. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Specialty commodities include: Unique varieties Non-traditional Non-GMO Organic Agraceuticals

7. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Value-added product/services include: Processed -- meat, dairy IP grain drying and storage B&B Hunting preserve Educational classes

8. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Alternative distribution channels include: Processors Wholesale Retail Direct where buyers include individuals, restaurants, and institutions

9. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Strategy Easier strategy questions to answer: How to price product How to promote product How to store and transport product

10. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Strategy Harder strategy questions to answer: How much buyers will purchase How your competition will respond How prices may change in long-run How regulations may change

11. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Characteristics of Specialty Commodity Markets Not fluid Immature markets; volatility Lack of transparency and resources

12. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Strategy Marketing strategies typically fall apart when: Sales don’t materialize New competition enters market Buyer preferences change Insufficient quality, volume Unrealistic from start

13. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan What can you do to develop a realistic marketing strategy: Contact potential buyers Ask questions Review contracts Be realistic, honest about sales potential Observe and learn about competitors Get outside opinions

14. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Most importantly, if your strategy involves specialty or value-added products and alternative distribution channels: Research and document your assumptions!

15. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan FINPACK Business Plan software asks questions and offers tips about: Current markets Potential new markets Pricing strategy Promotion and distribution strategy Storage and quality control Resources – suppliers, contractors, competitors

16. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan If marketing traditional commodities, software such as Marketeer can help with forward contracting strategies. Marketeer can be imported into the Business Plan Software.

17. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Business Planning Guide asks questions about: Current markets (Worksheet 2.2) Buyer preferences (Worksheet 4.1) Projected sales volume (Worksheet 4.2) Product uniqueness (Worksheet 4.3) Competition (Worksheet 4.4)

18. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan More Guide questions about: Distribution (Worksheet 4.5) Pricing (Worksheet 4.6) Promotion (Worksheet 4.7) Inventory and storage (Worksheet 4.8)