Horticultural Marketing
Wen-fei UvaSenior Extension Associate
Department of Agricultural, Resource, and Managerial Economics
Cornell University
October 27, 1999
Today’s Agenda:
• Marketing Functions and Channels in the Horticulture Industry
• Trends in the Horticulture Industry
• Examples of Marketing Strategies Used by Different Sectors
• Field Trip to Wegman & Iron Kettle Farm
The Horticulture Industry
Including Fruit, Vegetable and Ornamental Horticulture Sectors
The Fastest Growing Industry in Agriculture
Diversified, Exciting, and with Unlimited Opportunities
What is Marketing?
Marketing is a total system of business activities designed to plan, price, promote, and distribute products to target markets.
Marketing is an exchange of a wanted product or service for a price.
Major Functions in Marketing Horticultural Products
• Production
• Wholesale
• Retail
• International Marketing– Exports/Imports
• Services– Harvesting, Packaging, Processing, Brokerage,
Warehousing, and Transportation– Landscape Design, Installation, Maintenance
Growers
Production Suppliers
Exports
Imports
Wholesalers & Distributors
Brokers
Consumers
Retail Outlets
Institutions & Food Service Outlets
Processors
Service Businesses
Marketing Channels for the Horticulture Industry
Shippers & Packers
Wholesale Opportunities:
• Shippers/Packers• Brokers• Wholesale Buyers• Grower Cooperatives - i.e. Ocean Spray
• Retail Buyers– Supermarkets, Mass Marketers, Food Services,
Farm Markets, Garden Centers, and Florists
• Terminal Markets – Hunt’s Point in NYC
• Auctions
Retail Opportunities:
• Chain Stores / Mass Marketers– Supermarkets, Wal Mart, K Mart
• Independent Retail Stores– Farm Stands, Roadside Markets, Independent
Grocers, Florists, Garden Centers
• Pick-your-own Operations• Farmer’s Markets• Community Supported Agriculture• Mail Orders and E - Commerce
Trends in Horticulture Industries
• Global Sourcing and Competition
• More Consumer Oriented
• Differentiated Product Development
• Industrialized Production
• Industry Consolidations
• Utilization of Information Technology
• More Demand for Suppliers
Successful Horticulture Enterprises Start with Good Marketing
Where Are the Best Opportunities?
Developing Marketing Strategies:
• Objectives
• Target Markets
• Products
• Prices
• Promotion
• Distribution
• Competition
• Skills, Preferences and Resources
Marketing Strategies for Mass Marketers Targeting Retail Opportunities
• Low Prices
• Convenience– Longer store hours, One-stop shopping
• Product Selection
• Higher operation efficiency and lower costs
• More Marketing Power
• Special Marketing Emphasis– Organic, Value-added, Local produce
• Tour: Wegman
Marketing Strategies for Small Marketers Targeting Retail Opportunities
• Specialty/Niche Marketing
• High Quality
• Value-added Products
• Agri-Tourism
• More Services
• Owner’s Identity
• Collaboration, Joint Ventures, Alliances
• Tour: Iron Kettle Farm
Marketing Strategies When Targeting Wholesale Opportunities
• Be Competitive - Price and Service
• Quick to Respond to Customer Needs
• Sharing Costs and Risks of Customer
• Maintain Good Relationship with the “Customer”
• Know the Marketing Channel and Keep Up with Changes
• Take Advantage of Information Technology
• Become a Preferred Supplier
Give the Customer a Reason to Do Business with You
Don’t Just Satisfy the Customer; “Delight” the Customer
Exceed the Expectations
Growers
Production Suppliers
Exports
Imports
Wholesalers & Distributors
Brokers
Consumers
Retail Outlets
Institutions & Food Service Outlets
Processors
Service Businesses
Opportunities in the Horticulture Industries
Shippers & Packers