WI BCCB Local Foods Marketing Online

This program was brought to you by the
“Building Community Capacity (BCCB) through Broadband” Project.
Marketing Food Specialty Products Online
October 6, 2011
10:00 – 11:30 CST

Housekeeping…
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Presenters:
Connie Hancock, University of Nebraska Lincoln Extension Educator
Glenn Muske, Rural and Agribusiness Enterprise Development Specialist North Dakota State University Extension Service
Moderator:
Andy Lewis, Community and Economic Development Manager for the Building Community Capacity through Broadband (BCCB) initiative, University of Wisconsin Extension

Poll Questions
Do you use the Internet?
What do you use the Internet for?
Email, shopping, make travel arrangements, follow news, entertainment, keep in contact with friends, financial services,
Do you use:
Facebook
Twitter
YouTube
Have you ever purchased anything online?

Local Foods Go Global:A Preview ofDirect Marketing Food Specialty Products Online (B to C)
Connie HancockGlenn Muske
Jennifer Nixon
Jay Jenkins
http://srdc.msstate.edu/ecommerce/learningcenter/

Contributors & Sponsors
Sponsored by:
Original version of material developed by Stan Ernst
The Ohio State University
University of Delaware
University of Nebraska
Food Processing Center
Oklahoma State
Food and Agricultural Products Center

Local Foods – Why?
Safety
Looks and tastes better
Better for you
Preserves genetic diversity
Supports local families
Builds community
Preserves open space
Keeps taxes down
Benefits the environment and wildlife
Is an investment in the future
http://www.uvm.edu/vtvegandberry/factsheets/buylocal.html
Ten Reasons to Buy Local Food (Vern Grubinger, UVM)

Discussion Question
What’s your definition of “local foods” ?

Definitions:
Local Foods - No formal definition
Based on physical, socio-economic, cultural, and political concepts
Regional Foods - Again, no formal definition for regional
What some see as local, others call regional - It needs not be a competition
“Foodshed” is another term

What is a foodshed?
=
Foodshed
Watershed

Who is behind the movement?
Consumers – People wanting to know where their food comes from and how it has been grown
Producers:
Sell excess production
Earn extra income/Develop a second job
Put resources to more profitable use
Develop a primary occupation
Lifestyle
Communities – Economic development
(http://www.entrepreneur.com/article/220357)

Why?
Consumers
Nutrition, Safety, Appearance & Taste, Satisfaction
Producers
Higher prices, Direct feedback, Consumer support, Social connections
Communities
Supports local economy (jobs & lower taxes), Builds community , Maintains rural character, Strengthens ecological health (soil, water, habitat, biodiversity)

Poll Questions
Do you support local food growers?
How/where do you get local foods?
On average, how much do you estimate you spend on local foods each year?
Do your grocery stores sell local produce?
Do you give preference and shop at these stores?
Do you know your local producers?
Are their efforts to encourage local production?
Do your restaurants use local foods?
Do you give preference and go to these restaurants?

Traditional Marketing Methods
Grow your own
Roadside stands
Pick-your-own
The zucchini dash
Farmers markets
Community supported ag (CSA)
Limited sales through local grocery stores
Very few cooperative efforts
Local foods used in schools and restaurants

The Challenge
Capturing the “story” and the “importance” of local foods while expanding the business owner’s market size.

Some Issues
Dependent on grower interest
Dependent upon the weather
Seasonality
Pricing/Business mindset
Existing market size may limit profit/growth opportunities thus not allowing an owner to reach his or her goals
For communities, limited new dollars entering the local economy

Poll Questions
What state has the largest percentage of agricultural product sales directly to consumer for human consumption?
In 2007 how many Wisconsin farms sold agricultural products directly to the consumer for human consumption?
In 2007 what was the average farm sales in Wisconsin of agricultural products sold directly to the consumer for human consumption?
Between Wisconsin, North Dakota, and Nebraska, what state had the largest percentage increase in average farm sales between 2002 and 2007?

Source: http://www.agcensus.usda.gov/Publications/2007/Online_Highlights/Fact_Sheets/agricultural_diversification.pdf

Wisconsin
Value of agricultural products sold directly to individuals for human consumption

Nebraska
46.9%

North Dakota

Goal:Direct Marketing Food Specialty Products Online:Business to Consumer
Evaluate the role of technology in their business, in particular that of direct online marketing,
Examine the strategies necessary to begin the process of dealing with the technology and weigh out some cost /benefit measures,
Consider the evolution of information technology to meet changing business priorities or market demands

In addition to…
Helping food producers:
Explore additional value-added opportunities
Expand their market size and scope
Make more money

Curriculum Outline
Preface
Course goal, description and potential users
Participating Business Owners
Introduction – Do you need an online presence?
The Starting Point – A Business and Marketing Plan
Business Plan
Marketing Plan
Your Online Marketing Plan
Branding and E
Unified Branding
Food is Different
Need An Online Presence
Online World
Getting Found online
Planning Your Website
Social Networking
Other – email, podcasts, flickr, blog
ROI AND ANALYTICS
What does it look like?
The Future eTrends
Others in the distribution chain
Institutional
Other Potential Uses of online for wholesaler, retail grocer, etc.....
Operations and Management
Conclusion
One Step at a Time
Other resources
Curriculum
Major Food Processing Centers
References
Terminology/Glossary

Food is Different
Emotional product
Typically sells through quality signals obtained by touch, smell, and visual inspection
Bulky and perishable
Viewed often as a commodity – Gives us price points
Question – How can producer add value?
Local food – Often form connection with producer

Branding
Your brand is:
what consumers know and believe about your business.
your company’s face in the marketplace. It’s your promise to your customers.
how consumers respond to what they know and believe about your company.
your way of differentiating yourself within the marketplace. It is why consumers shop your store - buy your products as opposed to others.
For more information: http://www.youtube.com/watch?v=TCaJnPpmOWk

Discussion
Name 2 or 3 product brands you use
Why do you use those products?
Do you ever buy similar products made by other companies?

Brands
The strength of your brand can
ensure your success!
Brand not only your product but your business!!
See also: http://www.youtube.com/watch?v=TCaJnPpmOWk

Not only must you create a visual image for your company, you also need a consistent verbal message –
THE ELEVATOR PITCH

7 Elements of the Elevator Pitch
What are you pitching (be specific)?
Who is your target audience?
May need a different pitch for different audiences
What is your hook or WOW factor?
- Emotions may offer more WOW than numbers
Why does this situation impact your customer?
Why you? Sell your benefits.

7 Elements cont.
When? The ask for action – e.g. when can you meet with them?
Be prepared for questions.
- 90% of questions can be identified ahead of time
The “High 5" Elevator Pitch
Connie I. Reimers-Hild
University of Nebraska-Lincoln, creimers2@unl.edu

Participant Exercise
Share your elevator pitch
What are you pitching?
To who?
What is the WOW factor?
Why does this impact your customer?
Why you?
Ask for action
Be prepared for questions

An Online Presence
The #1 question
Do I need a web site?
YES!!!

Your Web Site
Key thoughts
Challenge – Putting your elevator pitch online
Plan
Build – Who?? – Test
Publish – Go live
Promote
SEO - Key words/Links/Content
Keep it fresh
Think generations of sites – Start simple and build additional tools and complexity over time.
For more information on Creating a Website, go to: http://campus.extension.org - Taking Charge of Your Online Presence

Your Website:Key to an Online Presence

Additional Online Presence
Do you need to consider?
Probably

Additional Online Presence
Major question - what tools and how often?
First step – Determine who your consumers are and what online tools they are using
Then, determine through evaluation and ROI (return on investment) how you should tweak what you are doing.
REMEMBER – Technology changes and so must your marketing tools!

Poll
What social media tools do you use or follow?
Email
Facebook
Twitter
Blogs
Linked In
YouTube
Google+
Other

eBizMBA – 9/20/11 data
http://www.ebizmba.com/articles/social-networking-websites

Consider Your Audience:Young Adults
Don’t Email
Blogging decreasing – only 15% (24% in 2007)
73% use social networks vs. 47% of older adults
Young adults text
59% buy things online – 17% increase in 9 yrs.
Young adults are more brand conscious
Older adult online behavior changing but at a less rapid pace
Young adults more likely to want to know where their food comes from
2010 Pew Report
http://67.192.40.213/~/media/Files/Reports/2010/PIP_Social_Media_and_Young_Adults_Report_Final_with_toplines.pdf

Food Companies Using Social Media
Sunbutter - http://www.sunbutter.com/ - web site, Twitter, Facebook, blog
Cetaks Meat Market – http://www.cetakmeats.com – web site
Pride Dairy – www.pridedairy.com – web site, Facebook
Heavenly Creations – http://www.jellyfromheaven.com/ - web site, Facebook, Twitter, blog
George Paul Vinegar – http://www.georgepaulvinegar.com/home.html - web site, Facebook
Country Neighbor - http://www.thecountryneighbor.com/- web site, Facebook
Wiley Farms - http://www.willeyfarmsde.com/ - web site, e-newsletter, Twitter, Facebook, StumbleOn
Suan’s Foods - http://suansfoods.com/ - web site, Facebook
Mike Ferrari Coffee - http://markferraricoffee.com/oshkosh/ - web site, Facebook, YouTube
Ziegelmeir and Co - http://ziegelmeiers.com/ - web site, Facebook
Freddy’s Lefse – http://www.freddyslefse.com – web site

Easy Way to Get Started

Take-Aways
When thinking about marketing for your food product business, remember:
Food is different
Branding is important
You must have a website
Growing use of social media

Take-Aways
Take small steps – generational growth
Know your goals and plan, measure & revise
Know your resources – Time and money
Practice and test your site
Change will occur!!
Watch and follow others
TAKE THE PLUNGE!

Direct Marketing Food Specialty Products Online (B to C)
Connie HancockGlenn Muske
Jennifer Nixon
Jay Jenkins
Coming Soon!!!
http://srdc.msstate.edu/ecommerce/learningcenter/

Questions?Forming a teamLearning about broadbandAssessing what you haveDesigning the futureCreating an action planImplementation and evaluationTelling your story
Powerpoint:http://www.slideshare.net/wi_broadband

This program was brought to you by the “Building Community Capacity (BCCB) through Broadband” Project.http://broadband.uwex.edu/resources/training-materials/For more information:Andy Lewis, Community and Economic Development Manager, Office of Broadband Sustainability, University of Wisconsin Extension, andy.lewis@uwex.edu, 608-890-4254

HomeworkRural Ecommerce: Webwise Design & Carr Valley Cheese
Why and how are they using the web to sell the
80 cheeses that they produce?

WI BCCB Local Foods Marketing Online

by WI Broadband

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