Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



Marketing plans typically include:



Market/buyer description



Product description



Competition overview



Pricing strategy



Promotion strategy



Distribution strategy



Inventory and storage strategy



Risks and resources

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



Business Plan software can be used
to develop a marketing plan for:



Traditional, bulk commodities



Specialty commodities and value-added
products

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



Business Plan software asks questions and

offers tips about:



Current markets



Potential new markets



Pricing strategy



Promotion and distribution strategy



Storage and quality control



Resources – suppliers, contractors,

competitors

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



If marketing traditional
commodities, software such as
Marketeer can help with forward
contracting strategies.



Marketeer can be imported into the
Business Plan Software.

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



The Business Planning Guidebook can

be used by anyone but worksheets are

geared toward managers interested

in:



Specialty commodities



Value-added products



Services



Alternative distribution

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



Specialty commodity examples:



Varieties – blue corn, high oil



Non-GMO



Organic



Agraceuticals

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



Value-added product/service
examples:



Processed -- meat, dairy



IP grain drying and storage



B&B



Hunting preserve

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



Alternative distribution examples:



Wholesale



Retail



Direct where buyers include individuals,
restaurants, and institutions

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



Business Planning Guidebook asks
questions about:



Current markets (Worksheet 2.2)



Buyer preferences (Worksheet 4.1)



Projected sales volume (Worksheet 4.2)



Product uniqueness (Worksheet 4.3)



Competition (Worksheet 4.4)

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



More Guidebook questions about:



Distribution (Worksheet 4.5)



Pricing (Worksheet 4.6)



Promotion (Worksheet 4.7)



Inventory and storage (Worksheet

4.8)

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



The questions you answer and resources
you use will depend on whether the
strategy is to market:



New specialty commodities to current buyers



New products or services to current buyers



Current commodities to new distributors/buyers



New commodities/products to new
distributors/buyers

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Strategy



Some of the easier strategy
questions to answer:



How to price product



How to promote product



How to store and transport product

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Strategy



Harder strategy questions to answer:



How much buyers will purchase



How your competition will respond



How prices may change in long-run



How regulations may change

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



Characteristics of Specialty

Commodity Markets



Not fluid



Immature markets; volatility



Lack of transparency and resources

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Strategy



Marketing strategies typically fall apart when:



Sales don’t materialize



New competition enters market



Buyer preferences change



Strategy unrealistic from the start

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Strategy



What can you do to help business

managers develop realistic

marketing strategies?

•

Ask the hard questions

•

Share examples

•

Identify resources

Copyright © 2003 Center for Farm Financial Management, University of Minnesota

Marketing Plan



Encourage managers to do their

homework:



Contact potential buyers



Ask questions



Review contracts



Be realistic, honest about sales potential



Observe and learn about competitors



Get outside opinion