marketing honeybee productsmarketing is not only much broader than selling, it is the whole business...

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The Ohio Direct Marketing Team

Marketing Honeybee ProductsCleveland Beekeepers Association

Eric BarrettThe OSU South Centers

11 September, 2013

Overview for the Day

• Local Food Trends

• Marketing Combination

• Selling directly to – Consumers

– Wholesale buyers

• ‘Local’ in Ohio www.census.gov/population/metro

Food Trends & ForecastsGrocery/Retailers want local

• Importance of Supermarket Features– Offers locally grown produce and other

local packaged foods

– Very Important 45%

– Somewhat important 41%

– Not Too Important 10%

– Not At All Important 4%

www.supermarketguru.com/public/pdf/Consumer-Panel-Survey-2011.pdf

Food Trends & ForecastsRestaurants want local

• 1 Locally sourced meats and seafood

• 2 Locally grown produce

• 4 Environmental sustainability

• 7 Hyper-local sourcing

• 9 Sustainable seafood

• 11 Farm/estate-branded ingredients

• 18 House-made/artisan ice cream

• 20 Food trucks

• Other ingredients: artisan cheeses & ancient grains

Food Trends & Forecasts…local, specialty, sustainable

•– Food Industry Report

– Today in Food

– Food Price Outlook

• Snacking

• Specialty Foods

www.foodinstitute.com/research.cfm

http://www.foodchannel.com/articles/article/top-ten-food-trends-2013

http://blog.foodnetwork.com/fn-dish/2012/12/2013-food-trend-predictions-from-food-network-kitchens

Food Trends & ForecastsThe Media Want Local Food Stories

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Relationship Marketing

Via Various Marketing Channels

Selling Directly to Consumers

On & Off Farm Markets, Farmers’ Markets

Community SupportedAgriculture (CSA)

Agritourism

Selling Directly to Wholesale Buyers

Chefs – Restaurants& Caterers

Grocery Stores & Specialty Retailers

Food Service (schools, institutions)& Food Processors

SELLERS BUYERS

Marketing: “Combination”

Marketing is not only much broader than selling, it is the whole business seen from the customer’s point of view.Peter Drucker

• People– Customers: can you think like them?

– My business goals/capabilities

• Product

• Place

• Promotion

• Plan & Process

Think Like a Customer

People – Product – Place – Promotion – Plan

• Why Sell Products Locally?– Satisfying Experience

– Sense of Community

– Compatible Philosophy

– Market Opportunity

• What to Consider…– Your Personal, Family & Business Interests/Goals

– Your Resources & Strengths

– Your Lifestyle & Motivations

Think Like a Direct Marketer


• People • Product

– Product selection and supply– Packaging & Labeling– Pricing, Invoicing & Payments

• Place• Promotion• Plan & Process

MarketReady


– What products/services do you offer?• Honey (liquid, comb, whipped, sticks, …)

• Beeswax, candles, … Mead,… Agritourism

• Pollen, propolis, royal jelly, … bees,…

– Quality & Attributes • (organic, kosher, artisan, …)

– Quantity

– Product depth or breadth

– Timing

– Specialized vs. commoditized

Product Selection & Supply


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• Protection against damage, spoilage, and pilferage

• Assist in marketing – Function,Education, Reinforce Brand, Differentiate…

• Regulation• Cost Effective

www.foodandbeveragepackaging.com/

Packaging & Labeling

• Food Labeling • http://beelab.osu.edu/images/honey_production_and

_sales_Q_and_A_final.pdf

• http://www.honey.com/nhb/industry/labeling-information/

• http://codes.ohio.gov/orc/3715

• Appropriate certifications

• UPC codes, www.uc-council.org

• QR codes, …

• www.specialtyfood.com/news-trends/featured-articles/retail-operations/the-label-table


Packaging & LabelingRestaurant - Grocery - School/Institution - Other

Wholesale

• How Much $? Pricing Objectives?– Bottom Up – ALL costs are starting point, then

influences such as competition & market tolerance– Top Down – Analyze range, set retail price, then

analyze - costs covered / profit enough?– What are customers willing to pay?

(supply & demand, seasonality, competition/substitutes, unique known value, perceived value

- What image convey? Penetration, Rate, Skim

- Other Strategies: Bundling, Lost Leader, Impulse

POP (no more than 1/3 of average sale)

People – Product – Place – Promotion – Plan Consumer

Pricing & Payments

• How & When Pay?– Cash (ATM), Check, Credit Cards

– Mobile Payments (www.mobiledia.com)

• Square, Intuit, GoPayment , Verifone, Payware

• Financial services, device makers, software co.

• Industry group exploring standardized system

• Google, Apple and Research in Motion have also shown interest in mobile payments.


Pricing & PaymentsFarm Market - Farmers’ Market - CSA - AgriTourism

• Restaurants, bakeries, caterers

• Margin-based retail pricing

• Selling to/with other farmers

• Invoices, Bill of Lading, …

Pricing & Payments

People – Product – Place – Promotion – Plan Wholesale

• People

• Product

• Place – Distribution & Storage

– Signage & Merchandising

– Marketing Environment

• Promotion

• Plan & Process

MarketReady


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• Own delivery direct-to-buyer

• Shared delivery with other producers

• Pre-arranged pick up points

• 3rd Party delivery company

• Wholesaler or distributor working with restaurants

• Each system has own benefits and costs

• Grow Farms

Distribution OptionsRestaurant - Grocery - School/Institution - Other


• Signage • Way finding• On Premises• Point of Purchase

• Direct, Find You• Inform, Educate• Select Product … Other Action• Answer common Questions or Solve

problems• Positioning/Branding

Signage & MerchandisingFarm Market - Farmers’ Market - CSA - AgriTourism


• Elements of good signage– Simple, clear message

– Tough to read ALL CAPS, Fancy Fonts

– Size of Letters & Color Combinations

– Color Psychology ... Consistency

– Appropriate Materials (Permanent/Temp)

– Background www.oaaa.org/marketingresources/industrystandardsandpractices.aspx

www.thesignagefoundation.org/Research



• POP Signage(Point Of Purchase)

• What is it (and quantity)?

• What do I do with it?

• How much does it cost?

• Benefit

• Other (brand)



Merchandising

• Merchandising• Inviting / Interactive• Abundance (not perfection)• Experience• Shopping is a sensory experience• Height of product (signage, theater)• Sloped shelves• Lighting• Decisions/Actions• What do you want them to do?

https://utextension.tennessee.edu/publications/Documents/PB1794.pdf



• Parking– Accessible? If not, … ‘drive through’

– If limited - Reserved Parking for…?

– Expanded with you?

– Drainage (after last rain fall ?)

– Ease of ingress/egress?

– Lighting?

• Surroundings– Cooperating with neighbors

– What’s happening beyond your property?

Marketing EnvironmentFarm Market - Farmers’ Market - CSA - AgriTourism


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• Basic sign … maintenance

• ‘Details’-paint on buildings, missing boards…

• Solutions for common grounds problems (mulching, weed control, etc.)

• Preserving ‘farm’ atmosphere

• Match brand

• Barriers from customers’ point of view?

• What’s visible in unused areas?http://vmsd.com/projects/food-retailing/supermarkets

Marketing EnvironmentFarm Market - Farmers’ Market - CSA - AgriTourism


• What’s happening in my business…

& around me and my customers

• Opportunities & Threats• P - political

• E - environment / economy

• S - social

• T - technology

• + Competitors, …

Marketing Environment


• People

• Product

• Place

• Promotion– Basic Communications

– Social Media

– Wholesale Market Partners

– Connecting through Ohio MarketMaker + others

– Campaigns

• Plan & Process

MarketReady


• Print– Business Card– Brochure– Price List

• Electronic– Website– Social Media

• Other– Story + Elevator Pitch– Directory Listings– Uniforms

Basic Communications


Social Media - You’re already ‘there’ -What are people saying?google alerts & social mention

BlogsTwitterSocial Networking Photos & Videos Mobile mediaOther…

Social Media


• Sales & Marketing to wholesale buyers

• Marketing with wholesale customers

Wholesale Market PartnersRestaurant - Grocery - School/Institution - Other


Local honey producer included as a local source

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Connecting through MarketMakerFree Business Profile – buyers can find youFarmer - specialty

Buy/Sell Forum post/find (private)

Free market data demographics, food consumption,industry contactsFeature your business


Connecting ThroughOhiomarketmaker.com Listings – Affiliations

• http://www.honeylocator.com

• http://www.localharvest.org/store/bee-prods.jsp

• http://ourohio.org

• www.ohioproud.org

• Maps & Apps


Connecting ThroughOther Directories, Search Engines, Maps & Apps

• Online Guide to

Marketing Online

http://go.unl.edu/directmarketingfood

People – Product – Place – Promotion – PlanConsumer

Other - Internet SalesFarm Market - Farmers’ Market - CSA - AgriTourism

• Why? (what will you measure?)– Right Reason – Awareness, Trial, Customers, Referrals, Loyalty

• Who? – Right Audience/s … Relationships

• What?– Right Message (Benefits vs. Features)

Attention, Interest, Desire, Action (Lavidge and Steiner, 1961)

What do you want them to feel, do, know?• When?

– Right Time, Frequency (4-9x), Consistency• Where? - Right Place, Media Choices• How Much?- Right Budget

Campaigns…Why, how & when you lead the customer to purchase (Taylor, 1965)


• People • Product• Place• Promotion• Plan & Process

– Resource Management ($, Human, Space, Equip)

– Risk Management (Insurance, Quality, Safety)

– Marketing & business plan/management

(goals, milestones, budget, calendar)

MarketReady


One person with passion is better than forty people merely interested."— E. M. Forster


Resource ManagementSales – Service – Daymakers … WOW

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Are You MarketReady?Bring it all Together

Your Plan … Marketing Audit

Resources

• www.centralohiobeekeepers.org/

• http://www.beesource.com/

• http://www.beeculture.com/

• http://www.ohiostatebeekeepers.org

• http://beelab.osu.edu/

Contact

Julie M. Fox, Ph.D., [email protected] Marketing SpecialistThe Ohio State University South CentersCollege of Food, Agricultural, and Environmental

Sciences - Extension & OARDC1864 Shyville Rd.Piketon, OH 45661 Tel: +740.289.2071(ext. 225)Fax: +740-289-4591http://directmarketing.osu.edu

Mike [email protected]