Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Marketing plans typically include: Market/buyer description Product description Competition overview Pricing strategy Promotion strategy Distribution strategy Inventory and storage strategy Risks and resources

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

Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan 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

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.

Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan The Business Planning Guidebook can be used by anyone but worksheets are geared toward managers interested in: Specialty commodities Value-added products Services Alternative distribution

Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Specialty commodity examples: Varieties – blue corn, high oil Non-GMO Organic Agraceuticals

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

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

Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Business Planning Guidebook 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)

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

Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan The questions you answer and resources you use will depend on whether the strategy is to market: New specialty commodities to current buyers New products or services to current buyers Current commodities to new distributors/buyers New commodities/products to new distributors/buyers

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

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

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

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 Strategy unrealistic from the start

Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Strategy What can you do to help business managers develop realistic marketing strategies? Ask the hard questions Share examples Identify resources

Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Encourage managers to do their homework: Contact potential buyers Ask questions Review contracts Be realistic, honest about sales potential Observe and learn about competitors Get outside opinion