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

1.What will it realistically take to achieve your goals from a resources perspective? 2. How long will it take?

Where and how your process your products determines where and how you may sell them in Maryland. Inspection mark on raw poultry Inspection mark on processed products Inspection mark on raw meat

 Live Animals- auctions, private treaty, freezer sales  Hybrid- Differentiation, graded sales, group sales, seed stock  Mixed Markets including Value- Added & Direct Marketing

 Strengths and Weaknesses- usually internal factors that you can control.  Opportunities and Threats- Usually external factors you can’t control  Understanding trends, customer buying “hot buttons” and industry issues is your best “Risk Management” tool for dealing with EXTERNAL Factors.

 Meat business is very different from the cattle, livestock or poultry business.  Must become a student of “marketing”  Consumer trends  Product and Food safety  Regulations  Could take 2-4 years for your meat. business to take off.

Access Necessary Infrastructure Processing capabilities Processing capabilities Distribution avenues Distribution avenues Market segments Market segments Cooperative arrangements Cooperative arrangements Cash flow requirements Cash flow requirements

What is Your Product ? Production Method Description Processing &Packaging Labeling Target Market 4Ps of Marketing- Product, Price, Position, Promotion

1.Easy to sell high-end cuts and hard to sell low-end cuts. 2.Pick customers in proportions to what you need to sell. 3.Low end cuts are more price sensitive. 4.Consider adding value to low end cuts to make them more profitable.

Tenderloin 12 lbs. NY Strip 14 lbs. Rib Eye 24 lbs Stir Fry Strips 6 lbs. Roasts 68 lbs. Ground beef 107 lbs.

Where and How to Market From the Farm- Live Processed- 1. On-farm Customers- Licensed by Maryland Department of Health for Direct Sales of frozen cuts. 2. Retail off the farm

 Label- At a minimum must have  Product name  USDA inspection legend  Address line with “Distributed by” or “Packed for”  Net Weight  Safe Handling statement  Ingredient Statement

Restaurants- Locally owned, may want fresh rather than frozen Contact them off-hours. Stores- Charge a markup of about 30% Questions- customers, current gross sales, case size, promotional material, liability insurance Go Prepared- Multiple copies of brochures, business card, price list, your sales proposal, two perfect sets of product. Do not charge for them.

Where and How to Market Farmers’ Markets- Go Prepared 1.Knowledge of health regulations and market rules. 2.Good signage and display your price. 3.Display your product- people won’t buy what they can’t see. 4.Be out going and tell your story.

Mail Order or Internet Marketing 1. Effective Web Design- Less is More 2. Keywords to improve search rankings 3. Free Listings 4. Update your website regularly 5. Contact info: Secure credit card purchases Contact number for orders 6.Reliable and Cost Effective Shipper

Shipping Frozen Meat Must be USDA processed. USDA guidelines:

Of the 4Ps, price is the only one that brings money in; the others send money out. Determining Your Price-Point 1.Costs + Desired Profit 2.Pricing with the Competition 3.Low price hoping to make it up on volume

Place : 1.Marketing Outlets 2.Marketing outlets- contract, hybrid, direct Promotion: 1.Product Perception 2.Website? 3.Supporting marketing materials vital for direct marketing

Barriers to Direct Marketing  Lack of trust in unknown sources – particularly those seen as unregulated or lacking standards  Expect pasture-raised products will cost more, which means they expect more  Concerns about affect on taste  Need for convenience—access  Resistance to buying in larger volumes

Family, Friends, & Target Groups Get feedback and learn about: Cuts, Packaging, Presentation Grow Incrementally Women don’t want to lift more than 35 lbs- keep boxed beef in this range

Risk Added risk selling retail Liability Insurance Legally organizing meat sales separate from your farm

Best Marketing Tool: Your Marketing Plan The 20 Minute Marketing Plan 1. What’s My Product 2. How Much Will I Charge for It? 3. Who Will Buy It? 4. Where Will I Sell It? 5. How Will Customers Find My Product? 6. How Will I Know If My Plan’s Working?