1. Prairie Crossing Organic Farm Marketing Plan L.F.G. Team

2. Agenda Executive Summary Situation Analysis SWOT and Planning Issues Goals and Objectives Marketing Strategy Action Plans Financials Questions

3. Executive Summary The Opportunity Significant growth potential in organic farming sector Partner with local businesses Support the community and expansion The Service Farm Business Development Center (Organic Farm) Learning Farm The Strategy Leverage existing local health conscious market Educate through targeted advertising & promotion

4. Executive Summary ~Long-term sustainability ~Increased brand recognition by 25% ~Synergy between the Learning Farm and Farm Business Development Center Objectives & Results External: word of mouth, incorporation of social media, continued growth of organic products market Internal: commitment from the foundation, budget, execution of plan Critical Success Factors

5. Aerial of the Prairie Crossing Organic Farm in Grayslake, IL Situation Analysis

6. Farm Business Development Learning Farm Situation Analysis Con t.

7. Objectives & Goals Objectives Develop greater presence of PCF in the community Support sustainable existence of PCF and the organic food industry Increase the number of farms growing organic produce Goals Increase demand / recognition of 25% Develop & enhance sales channels – increase demand 20% Expand land & equipment capacity – est. increase in capacity of 50% over next 5 years

8. Consumer Analysis  About U.S. Families 73% buy organic products at least occasionally, chiefly for health reasons 31% were buying more organic foods in 2009 than in 2008 17% largest increases in spending in past year were for organic products  59% expect to increase the amount of organic products purchased in 2010  Organic foods appeal most to those ages 35 – 44  Consumers back to basics to bolster health Source: 2009 U.S. Families' Organic Attitudes and Belief Study, Source: Consumer Union poll data March 2010 & “Today’s Specialty Food Consumer 2009”

9. Primary Research – Survey  29% - familiar/71% - not familiar Prairie Crossing References  14% - other, 11% - friend, and 4% - family member Familiar with Prairie Crossing offers  14% - Farmer’s Market  4% - Sandhill Organics  4% - Learning Farm  4% - Business Development Center Organic foods cooking class  47% - likely to neutral  53% - somewhat to very unlikely Organic farming  21% - very to somewhat likely  11% neutral  68% somewhat to very unlikely Source: 28 surveyed from Surveymonkey.com

10. Market Size & Sales Analysis  US Organic Market 24.8 billion in 2009; 5.1% growth Highest growth in produce – 11.4% 1.8 billion or 9.1% growth in non-food  Retail make-up Mass markets i.e. Wal-Mart  2009 - 54% of sales  2008 – 43% Natural markets i.e. Whole Foods  2009 – 43% of sales  2008 – 48% Remainder from farmers markets, online, export, etc.

11. Product Line Analysis  Organic markets Non-food (Organics fabrics and cleaning products) Animal (Beer, Pork & Poultry) Produce (Vegetables, Fruits & Grains)  Prairie Farm Services (farming & education) Produce through incubator and permanent farms

12. Competitive Analysis  Varies by channel  Channels: Direct Markets  Other farmers markets participants  Local Community Supported Agriculture Programs (CSA)  Home Gardens Natural Product Retailers i.e. Whole Foods Conventional Retailers i.e. Wal-Mart Restaurants i.e. McDonalds

13. Competitive Analysis

14. Direct Markets Natural Products Retailers Conventional Retailers Local Growers Out of Region Foreign

15. SWOT Analysis Strengths  Success in farming and exceptional business acumen of family farm as a model  Success rate for incubator farmers after leaving Prairie Crossing (80%)  Business fully supports the trend for a healthier lifestyle & consumer preference for locally grown produce  PCF is certified as an organic grower  Property borders major roads & train line Weaknesses  Limited community awareness and understanding of the organization  Lack of connection of the two sectors  Limited land and equipment capacity  Location of the farm is hidden and somewhat secluded  Lack of revenue from the Learning Farm, not self- supportive

16. SWOT Analysis Cont. Opportunities  Growing demand/awareness of organic food & locally grown produce  Sales Expansion:  Larger food chains (Jewel, Whole Foods)  Small independently run markets  Institutions (hospitals, schools, prisons)  Restaurants  Effectiveness of websites (fragmented & hard to find)  Partnerships with universities/ hospitals/health clubs to educate the community  Develop uncertified land to increase farming capacity Threats  Economic conditions limit external funding  Economic conditions effecting consumers ability / desire to pay the higher price for organic food  Growing season is limited compared to out of state competitors  Impact of weather conditions  Sales competition with other local organic farmers & non-organic farmers

17. Planning Issues  Connections to greater community  Leveraging of synergies  Limited land & equipment  Limited Supply -> Limits ability to expand sales  Seclusion of the farm

18. Marketing Strategy Statement “Increase brand identity and recognition within health conscious consumers who want to support the community by purchasing locally grown organic produce.” “Increase awareness of the learning farm which looks to educate and inspire people to value healthy food, land, and community through experiences on the farm.”

19. Target Markets  Primary Target Market  Existing local consumers  Live in Grayslake or surrounding community (Lake County)  Purchase organic products 50% or more of the time  Secondary Target Market  Emerging / New organic consumers  Live in Grayslake or surrounding community (Lake County)  Buy organic products less than 50% of the time  Educational component critical

20. Positioning “To health conscious consumers, Prairie Crossing Organic Farm is an organic farm that offers locally grown quality produce educates on the value of healthy food & land is an integral part of the community It is the only organic farm in Lake County to offer both produce and education.”

21. Marketing Mix Strategies Product Keep existing products & services Expand education offerings Promotion Billboard(s) Targeted promotion at local establish- ments Sponsor community events Community centers Local restaurants Distribution CSA’s Farmer’s Markets Company website (services) Social Net- working Sites Price Appropriate level to expand and support organi- zational growth

22. Service Mix Strategies People Local communities Schools Restaurants Beginning Farmers Physical Evidence Increasing foot print Logo Billboard Organic Restaurant on premises Processes & Procedures Federal and State Grants Marketing promotions initiatives Research & Analysis of Demand Customer Satisfaction

23. Implementation Strategy  PCF leading Brand in N.E. Illinois Organic Food Subdivision Fresh Market Open Trade Day Local School District Lunch program Local radio stations program- Spanish/Russian  Create PCF Label/Logo Information Board Center in Whole Food store  Redesign PCF Web Page Under one Umbrella - individual Farmers web page Place order for Organic Food

24. Implementation Strategy Cont.  Expand existing land size Seek new corporate investors Seek Federal and State government sponsorship/grant Develop new ‘One Delivery Center’ Allow multiple family participation in the program  Healthy life style Create a Healthy Juice Booth in the Health clubs Use Local Community Center to advertise and sell organic food Use local News paper to introduce local organic food

25. Task/ActivityTime PeriodResponsibilityCost Appoint intern for March to October 2011March 2011Director $20,000 Research promotion and advertisement sitesApril 2011 Intern N/A Secure agreement from farmers to put Prairie Crossing logo on their websites May 2011Director Place order for promotion media design, production and placement (billboards, displays, brochures) June 2011Director $10,000 1000/year Organize and run events at corporate cafeterias, health clubs, schools, subdivisions, restaurants, organic food retailers. 20 events in 2011 and 6 each year @$1000 each Growing SeasonIntern $20,000, 6000/ year Update websites with event schedule and product availability Growing SeasonDirector Promotion Action Plan & Programs

26. Sample Logo

27. Task/ActivityTime PeriodResponsibilityCost Secure farmer commitment to sell up to 50% produce under the Prairie Crossing Organic Farm brand at a predetermined price April 2011 Director Secure farmer commitment to adopt Prairie Crossing recommended product mix April 2011 Director Develop packaging contract. Select a preferred supplier May 2011Director Apply for Farmers Market Promotion Program grant March 2012Director$1,000 Secure equipment loan of $500,000 with US Farm Service Agency credit guarantee if necessary Feb 2012Director$5,000 Explore corporate investments (Whole Foods, Wal-Mart) Jan 2012Director$5,000 Product Action Plan & Programs

28. Task/ActivityTime PeriodResponsibilityCost Develop a peer inspection plan among participating farms to ensure consistent quality and labeling May 2011 Director Mediate peer inspections Growing Season Director Quality Action Plan & Programs

29. Task/ActivityTime PeriodResponsibilityCost Issue order for website. Include features not present in current website like events, promotions and order processing March 2011 Director $8,000 one time, $1,000/ yr. Secure agreement with captive farmers to distribute a portion of their produce through Prairie Crossing’s distribution channel and pricing contract May of each yearDirector Secure contract with distributor for Chicago area April 2011 Director $1000 Develop packaging contract with a preferred supplier May 2011Director $1000 Form a cooperative of local organic farmers in the region to sell under Prairie Crossing brand. Jan 2013Director$5,000 Distribution Plan & Programs

30. Task/ActivityTime PeriodResponsibilityCost Primary research of price at regional retail stores and farmers markets March 2011 Intern Order secondary market research data for regional pricing and demand of organic produce March 2012 Director $5000/ year Secure price agreements from farmers and distributor to allow 2.5% margin on all produce routed through Prairie Crossing cooperative May of each year Director Pricing Action Plan & Programs

31. Financial Assumptions  Sales per acre = $20,000 / year  Margin for distributing through Prairie Crossing channel = 2.5%  Equipment loan = $500,000 (Feb, 2012)  Interest on equipment loan = 6%  Expected acres and branded sales level YEAR201120122013 Acres9099109 Branded Sale Level %2537.550

32. Financials YEAR201120122013 RevenuesRentals $800$1,600 Margin on Produce Sale$50,000$55,000$60,500 Expenses Product/ Service development $11,000 Distribution development$11,000$1,000$6,000 Promotions and advertisements $50,000$7,000 Pricing research$5,000 Interest $30,000 Earnings Before Tax -$16,000$1,800$14,100