Business Planning and Marketing
Why do a Business Plan
• You can make “mistakes” on paper before you invest
time, effort and money.
• Helps you track your...
Elements of a Business Plan
• Executive Summary
• Company (Farm) Description
• Product or Service
• Market Analysis
• Stra...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
 Marketing plans typically ...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
The questions you address w...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
 Business Planning Guide ca...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
 Specialty commodities incl...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Value-added product/service...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
 Alternative distribution c...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Strategy
Easier strategy questio...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Strategy
Harder strategy questio...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Characteristics of Specialt...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Strategy
Marketing strategies ty...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
 What can you do to develop...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Marketing Plan
Most importantly, if your s...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Two Strategies for
Agricultural Producers
C...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Characteristics of Two
Strategies
Commodity...
Copyright © 2003 Center for Farm Financial Management, University of Minnesota
Characteristics of Two
Strategies
Commodity...
Market Analysis
• Target Market Strategy
• Market Needs
• Market Trends
• Market Growth
• Competition
• Buying Patterns
Strategy and Implementation
• Marketing Strategy
• Pricing Strategy
• Marketing programs
• Sales Strategy
• Sales programs...
Web, Email, Facebook, Plan
• Website Marketing
• Development costs
• Email and Facebook use
Direct Market Options for Farmers
• Agricultural Tourism
• Roadside Stands
• On-farm store
• Farmers’ Markets
• Consumer d...
What can I produce?
• Endless possibilities
• Bound by local ordinance
• Limited by expertise and facilities
Marketing Options for Animal Production
• Purebred
• Commercial cow/calf
• Stocker
• Small ruminant(s)-Goat, Lamb
• Pork
•...
Pricing for Direct Sale of Meat
• Cost of animal
• Land
• Finishing
• Transportation to slaughter facility
• Slaughter fee...
Oklahoma Dept. of Ag. Contacts
• Jon Pruitt- Slaughter and Processing- 405-522-6114
• Bryan Buchwald-Poultry & Egg product...
Resources
• http://extension.missouri.edu/sare/resources/directmeat.aspx
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Business Planning & Marketing

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Oklahoma Beginning Farmer & Rancher Presentation, July 2013

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Business Planning & Marketing

  1. 1. Business Planning and Marketing
  2. 2. Why do a Business Plan • You can make “mistakes” on paper before you invest time, effort and money. • Helps you track your efforts to meet your goals. • It is not easy or quick if done correctly • It can cost both time and money, depending on the complexity
  3. 3. Elements of a Business Plan • Executive Summary • Company (Farm) Description • Product or Service • Market Analysis • Strategy and Implementation • Web Plan Summary • Management Team • Financial Analysis
  4. 4. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan
  5. 5. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan  Marketing plans typically include a description of: • Market conditions • Products • Buyers • Sales potential • Contract terms or pricing strategy • Promotion and distribution ideas • Resources
  6. 6. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan The questions you address will depend on whether your strategy targets: • New products • New buyers • Both
  7. 7. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan  Business Planning Guide can be used for any commodity.  However worksheets are geared toward : • Specialty commodities • Value-added products • Services • Alternative distribution
  8. 8. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan  Specialty commodities include: Unique varieties Non-traditional Non-GMO Organic Agraceuticals
  9. 9. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Value-added product/services include: Processed -- meat, dairy IP grain drying and storage B&B Hunting preserve Educational classes
  10. 10. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan  Alternative distribution channels include:  Processors  Wholesale  Retail  Direct where buyers include individuals, restaurants, and institutions
  11. 11. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Strategy Easier strategy questions to answer: How to price product How to promote product How to store and transport product
  12. 12. 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
  13. 13. 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
  14. 14. 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 Insufficient quality, volume Unrealistic from start
  15. 15. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan  What can you do to develop a realistic marketing strategy: • Contact potential buyers • Ask questions • Review contracts • Be realistic, honest about sales potential • Observe and learn about competitors • Get outside opinions
  16. 16. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Marketing Plan Most importantly, if your strategy involves specialty or value-added products and alternative distribution channels: Research and document your assumptions!
  17. 17. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Two Strategies for Agricultural Producers Commodity Creative Alternative Strategy Strategy_________ Expansion oriented Niche oriented Low-cost producer Unique product
  18. 18. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Characteristics of Two Strategies Commodity Creative Alternative Look at Look for alternative expanding enterprises that herd or acres generate revenue
  19. 19. Copyright © 2003 Center for Farm Financial Management, University of Minnesota Characteristics of Two Strategies Commodity Creative Alternative Production emphasis End-user focus Manufacturing mentality Marketing mentality Low-cost producer Value-added products Large scale operation Smaller operation Price risk Relationship risk
  20. 20. Market Analysis • Target Market Strategy • Market Needs • Market Trends • Market Growth • Competition • Buying Patterns
  21. 21. Strategy and Implementation • Marketing Strategy • Pricing Strategy • Marketing programs • Sales Strategy • Sales programs • Partnerships
  22. 22. Web, Email, Facebook, Plan • Website Marketing • Development costs • Email and Facebook use
  23. 23. Direct Market Options for Farmers • Agricultural Tourism • Roadside Stands • On-farm store • Farmers’ Markets • Consumer delivery • Community Supported Agriculture (CSA) • Internet or e-mail sales • Pick-your-own (PYO)
  24. 24. What can I produce? • Endless possibilities • Bound by local ordinance • Limited by expertise and facilities
  25. 25. Marketing Options for Animal Production • Purebred • Commercial cow/calf • Stocker • Small ruminant(s)-Goat, Lamb • Pork • Poultry-chickens, turkey • Rabbit • Direct sales-live, whole carcass, individual cuts • Dairy products, eggs
  26. 26. Pricing for Direct Sale of Meat • Cost of animal • Land • Finishing • Transportation to slaughter facility • Slaughter fee • Processing • Packaging • Storage • Transportation to retail • Promotion
  27. 27. Oklahoma Dept. of Ag. Contacts • Jon Pruitt- Slaughter and Processing- 405-522-6114 • Bryan Buchwald-Poultry & Egg products-405-397-1895 • Sam Carter-Dairy-405-501-3928 • Jeff Stearns-Organic Certification-405-501-3955 • Oklahoma State Department of Health-Defines a Farmers Market, Food safety inspections, retail meat sales, Vendor Licensing
  28. 28. Resources • http://extension.missouri.edu/sare/resources/directmeat.aspx

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