Pricing right For the marketplace Deb Foote & Gunta Vitins SunOpta Inc. February 21, 2009.

Slides:

Advertisements

Similar presentations

Place (Distribution).

Advertisements

Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Marketing plans typically include a description of: Market.

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.

Alexander R. Christensen President Southeast Hay Distributors Challenges and Opportunities in Marketing Hay to the U.S.

6.04 Exemplify sales promotions

Conventional coffee trade

Horticultural Marketing Wen-fei Uva Senior Extension Associate Department of Agricultural, Resource, and Managerial Economics Cornell University October.

Partnering With Distributors. Agenda Role of the distributor Things to consider about distributors What distributors look for Pricing and margins Distributor.

Marketing Wines From Small Wineries NMSU AGE 420 – M03 CRN 40680© 2011.

The Role of IMC in the Marketing Process © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

The Functions of Marketing

PLACEMENT Getting the right product to the right customer at the right time, at the right place, in the right quantity. The basic objective of all placement.

Aquaculture Marketing. Opening Comments  Aquaculture—old in practice, new ag industries  Rapid expansion globally  Development plagued by marketing.

So you want to be a farmers’ market vendor?. Benefits of Farmers’ Markets Incubator and testing ground: “test the waters” to see how popular products.

Unit F: Harvesting Fruits and Nuts Lesson 3: Market Fruits and Nuts 1.

What is Marketing? - all of the activities involved in the planning, pricing, promoting, distributing and selling of goods and services TO SATISFY CONSUMERS’

Name the five marketing strategies that make up the marketing mix.

FRUIT and VEGETABLE MARKETING Small Farm Conference Wednesday May 16, 2007 Dr. Allen F. Wysocki Food and Resource Economics (352) ext 403

Direct Marketing NickAugostini Marketing Specialist NCDA & CS.

Trade Promotions #4 Today’s Learning Objectives: Identify Industrial side of the business world Define Trade Promotion Identify and understand all Trade.

Marketing Mix GCSE Business Studies. Marketing Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements.

Agricultural Marketing

SEATTLE TILTH FARM WORKS Direct Marketing Channels.

 Store features ◦ Question to ask yourself  Supermarket trends ◦ Fresh refrigerated ready-to-eat meal items ◦ Cross merchandising - involves pairing.

National Food Service Management Institute Section 7: Vendor Choices 1 Section 7: Vendor Choices (Step 4) Food Purchasing for Child Care Centers.

The Role of IMC in the Marketing Process © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin.

chapter 16 International Marketing International Business, 6th Edition

© 2012 Cengage Learning. All Rights Reserved. SLIDE MARKETING (part 2) Price and Distribute Products Goal 1Discuss how the selling price of a product.

Marketing CHAPTER Marketing Basics

Chapter 9 The Role and Functions of Marketing. Product Life Cycle (Fads and Seasonal look different)

The Single Market Demand, Supply, and Equilibrium J.F. O’Connor 2/7/00.

Lesson 2: Marketing. Outline of presentation Goals of marketing lesson Basic marketing concepts – Knowing your customer – Defining wholesale vs. retail.

Chapter 13 Marketing in Today’s World

MGT-519 STRATEGIC MARKETING AAMER SIDDIQI 1. LECTURE 22 2.

Place Chapter 14. What is Place? Any activity involved in making product available to consumers – Decisions involving when, where and how product get.

Chapter 17: The Promotional Mix. Promotion in Marketing Promotion is persuasive communication. Product promotion is a promotional method used by businesses.

MARKETING CHANNELS An Introduction. Distribution  Products must be available to consumers who want to purchase them conveniently, quickly, and with a.

Marketing & Promotion Creating the tools you need.

Back to Table of Contents pp Chapter 13 Marketing in Today’s World.

How is Local Food Good for Our Economy?. The system by which goods and services are produced, sold, and bought that helps us determine how to use limited.

MARKET PRICING Prepared by: GREGAR DONAVEN E. VALDEHUEZA, MBA Lourdes College Instructor.

The Four Ps of Marketing Product Any goods, services, or ideas that we wish to sell. Goods, Services, or Ideas Defining Target.

Restaurant Sales Grocery, Wholesale & Foodservice Sales.

Ginger S. Myers University of Maryland Extension Regional Marketing Specialist ext. 338

Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Chapter 5.

Price Strategy & Management

What is Marketing? - all of the activities involved in the planning, pricing, promoting, distributing and selling of goods and services TO SATISFY CONSUMERS’

Chapter 1 Marketing is All Around Us From the time that you woke up this morning how many products have you used? Activity #1.

Basics of Marketing The success of most businesses rests on production and marketing: the product must be good and the marketing plan must be well-organized.

Produced for CultivateNC™ Jackie Miller NC State Cooperative Extension ANR/CRD Introduction to Wholesale and Direct Marketing Channel Options for Produce.

Retail is the process of selling consumer goods and/or services to customers through multiple channels of distribution to earn a profit Retail is usually.

PowerPoint Presentation by Charlie Cook Copyright © 2005 Prentice Hall, Inc. All rights reserved. Chapter 11 Pricing, Distributing, and Promoting Products.

2 2 distribution Components to distribution physically distributing goods through those channels selecting, developing, and managing distribution channels.

Food Purchasing for Child Care National Food Service Management Institute The University of Mississippi

Chapter 14 Consumer Sales Promotion & Packaging Key Points:  How do sales promotions add value to a brand offering?  What are consumer sales promotions.

The Marketing Mix Discussion of the 4Ps. What is the Marketing Mix? Often referred to as the 4Ps The variables through which a company carries out its.

Driftless Region Food & Farm Project. Way Back When Farmers Independent Grocery Store Consumers Independent Restaurant.

Place – Marketing Mix 4.5 The four Ps.

With support from:.

Food Wholesaling and Retailing

Food Wholesaling and Retailing

Steps to start your women’s wholesale fashion marketplace

FACTS: 1/3 of the jobs in the USA are marketing jobs Skills learned in marketing are transferrable Exciting work; exciting places; exciting people 60%

Mrs. Alexander-Harrison

Types of Promotion Chapter 17.2.

Chapter 13 Marketing in Today’s World

4.4 Trade: elements and types

Marketing Ch 16 is the process of identifying and anticipating consumer needs, and then producing products or services to satisfy these needs - at a profit.

PLACEMENT Getting the right product to the right customer at the right time, at the right place, in the right quantity. The basic objective of all placement.

Presentation transcript:

Pricing right For the marketplace Deb Foote & Gunta Vitins SunOpta Inc. February 21, 2009

2 MARKET CHANNELS  Farm Gate  Farmers Market  Direct to Store  Direct to Restaurant  Direct to Processor  Through Distributors  Export

3 Margins  Distributors Produce: 20 – 25% Grocery: 25 – 30%  Retailers Produce: 35 – 40% Grocery: 35 – 40% Meat: 25 – 28% Dairy: 25 – 28% Deli: 50 – 60% Bulk: 40 – 50% Frozen: 40 – 45%

4 Margin does not equal Mark Up Example: 20% distributor’s margin on 1 case of apples  Farmer’s selling price = $40 per case  Distributor takes a 20% margin = $40 divided by 0.80 (note: 100% - 20% = 80% or 0.80)  Distributor’s selling price = $50 per case ****************** 20% Mark Up = $40 x 1.20 = $48 (don’t compare apples to oranges)

5 Farm Gate (*Mark Ups perspective)  Selling Direct to Consumers: Farmer’s Price: 95 – 105%* of retail Consider costs: -Product & packaging -Labour -Structure & signage: road side stand or enclosed retail outlet  Selling Direct to Retailer/Restaurateur/Processor Farmer’s Price: 50 – 80%* of retail Consider costs: -Product & packaging -Labour

6 Farmers Markets Farmer’s Price: 95 –100% of retail Consider costs: -Product & packaging -Labour -Market fees -Transportation -Structure: tents, tables etc -Presentation & Signage -Scales

7 Direct to Store Farmer’s Price: % of retail price Consider costs: -Product & packaging -Labour -Transportation  Include distributor’s margin  Establish minimum order requirements  Standard packaging/caselots  Labelling – UPCs, PLUs, bilingual, organic stickers, twist-ties etc

8 Direct to Restaurant Farmer’s Price: 70%+ of retail price Consider costs: -Product & packaging -Labour -Transportation  Include distributor’s margin  Split cases; non-standard quantities

9 Selling to Distributors Farmer’s Price: 45 – 55% of retail price Consider costs: -Product & packaging -Labour -Transportation  Standard packaging/caselots  Labelling – UPCs, PLUs, bilingual, certification, organic stickers, twist-ties etc  Volume  Service costs per unit for farmer are lowest

10 Organic Produce Pricing  Highly volatile -- changes daily  Based on market supply & demand  Standard premium for organic produce does not exist  Follow market fluctuations when determining selling price  Volume deals for promotions  Local versus Imports

11 Key Purchase Factors: Produce Wholesaler – Retailer – Consumer Quality: appearance, cleanliness, ripeness, taste Price: competitive (supply & demand) Supply: consistent, timely

12 Recommendations to Growers Use sales history and market trends to plan for production Discuss plans with distributors & retailers Base volumes on sound projections Set prices according to supply and demand Follow market fluctuations Communicate with your customer

13 Organic Grocery Products Must have :  Appropriate & appealing Packaging, labelling (bilingual, nutritional, etc), UPCs  Marketing Funds for:  Listing Fees  Advertising: Co-ops, In Store Specials, Flyer Costs  Product Demos  Guaranteed Sales  First Case Intro Offer (free fills etc)  Store Samples (after listing)

14 Questions? Contact: Deb Foote Deb Foote Organic Consulting Gunta Vitins VP Marketing, Pro Organics (604)

15