Get your Business Cookin'

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Slides from a workshop presented by the Ennovation Center in Independence, Missouri. The program features how to market, brand and promote your specialty food business.

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Get your Business Cookin'

  1. 1. Get Your Business Cookin’Workshop<br />March 24th, 2011<br />
  2. 2. Tonight’s Agenda<br /><ul><li>Introductions
  3. 3. Ennovation Center Update
  4. 4. 3 Guest Speakers Tonight
  5. 5. Valerie Jennings – Hippie Chow
  6. 6. Susan Henson – Missouri Small Business & Development Center
  7. 7. Sara Freetly Grubb – Candid Marketing</li></ul>This is a very open, informal discussion so feel free to ask questions during the presentations.<br />
  8. 8. Update on the Ennovation Center<br /><ul><li>Construction mostly completed.
  9. 9. Currently 11 kitchen incubator clients fully approved and operating.
  10. 10. Over 50 clients who have made application and are in various stages of licensing and permitting.
  11. 11. Independence School District has completed their move into the building.
  12. 12. “Novella’s Bistro” will be open in June.</li></li></ul><li>Where to Start?<br />“Everyone tells me my food is so good that it should be sold”<br />5 Must Do’s To Get Your Business Going<br /><ul><li>Establish a niche
  13. 13. Find taste testers
  14. 14. Figure out your price
  15. 15. Learn to advertise on the cheap
  16. 16. Write a business plan</li></li></ul><li>Get Your Business Cookin’<br />March 24, 2011<br />
  17. 17. My Background<br />Industry Profile<br />Pricing<br />Top Ten Mistakes<br />Agenda<br />
  18. 18. Industry Profile<br />
  19. 19. KNOW YOUR COGS!!!<br />Include raw materials, packaging, production costs and labor.<br />Gross Profit = Selling Price – COGS<br />Gross Margin = Gross Profit / Selling Price<br />Wholesale gross margin should be 40-60%<br />Pricing - Wholesale<br />
  20. 20. If COGS = $2.00 and gross margin is 50%, then selling price should be $4.00<br />$4.00 selling price - $2.00 COGS = $2.00 gross profit<br />$2.00 gross profit / $4.00 selling price = 50% gross margin<br />Rule of thumb: double COGS to determine wholesale price <br />Pricing – Wholesale (cont.)<br />
  21. 21. Retailer margins will vary<br />May range 25-60%; 30-40% on average<br />If wholesale price is $4.00 and retailer margin is 35%, retail price will be $6.15<br />$6.15 selling price - $4.00 COGS = $2.15 gross profit<br />$2.15 gross profit / $6.15 selling price = 35% gross margin<br />Pricing - Retail<br />
  22. 22. Not knowing what it will all cost.<br />Not understanding the competition.<br />Making packaging mistakes.<br />Not understanding pricing.<br />Not managing cash flow.<br />Top Ten Mistakes<br />
  23. 23. Credit pitfalls.<br />Going for fast vs. deep sales growth.<br />Not understanding sales channels.<br />Fear of mistakes.<br />Not asking for help.<br />Top Ten Mistakes (cont.)<br />
  24. 24. NASFT website at www.specialtyfood.com.<br />“The Basics: The Business of Specialty Food”<br />Additional Resources<br />
  25. 25. Valerie Jennings<br />Hippie Chow Natural Foods<br />Phone: 913.254.3580  <br /> <br />valerie@hippiechowgranola.com  <br />www.hippiechowgranola.com<br />
  26. 26. Branding & Marketing:Ingredients for Success<br />Sara Freetly-Grubb<br />March 24, 2011<br />
  27. 27. Eat Your Heart Out!<br />U.S. food industry is $1 trillion market per year!<br />Nearly 10% of Gross Domestic Product<br />That is a good and bad thing for you<br />Good:<br />Consumable<br />Essential — not luxury items<br />Bad:<br />Highly competitive<br />Difficult to break-through <br />Convince consumers they need YOUR product over another<br />
  28. 28. So What’s the Right Recipe?!<br />To successfully bring your product to market, you’ll need:<br />A dash of research<br />A cup of branding<br />A pinch of packaging<br />A dollop of marketing<br />
  29. 29. A Dash of Research<br />Identify your audience<br />Who will buy your product?<br />Why?<br />When?<br />Where?<br />How?<br />Shape your brand and marketing around this audience<br />Reach out specifically to your ideal customer<br />
  30. 30. A Dash of Research<br />Know your competitors<br />What is everyone else doing?<br />Is it working?<br />How are they talking about their product?<br />How is it packaged?<br />What is the price?<br />How is yours different?<br />Why buy yours instead of theirs?<br />
  31. 31. A Cup of Branding (the special sauce)<br />What is a brand and how do I get one?!<br />Branding is “sexy” – buzzword in the industry<br />A brand is more than just a logo…it starts with a position or promise<br />…and although it is the visual, outward expression of a brand — a logo is not a brand<br />A brand captures your product’s personality<br />Is something that must constantly evolve<br />Requires commitment to consistency<br />
  32. 32. A Cup of Branding (the special sauce)<br />A successful brand must:<br />Define your product<br />Be meaningful<br />Resonate with the target audience<br />Convince consumers to buy<br />Differentiate you from competition<br />Easily translate into:<br />Packaging<br />Point-of-Sale Displays<br />Web site<br />Marketing<br />Advertising<br />Etc.<br />
  33. 33. A Cup of Branding (the special sauce)<br />Identify your product<br />Values/Benefits/Qualities<br />Go beyond the obvious<br />Unique selling proposition<br />Develop a brand strategy <br />Incorporate all 5 senses<br />Look<br />Feel <br />Taste <br />smell<br />Create a promise to customers – Brand <br />And deliver on that promise EVERY time!<br />
  34. 34. A Cup of Branding (the special sauce)<br />Be patient. <br />Brands don’t gain credibility and recognition over night<br />Brands are living, breathing things – let it evolve<br />Protect it, no one else will<br />Communicate it to anyone who will listen<br />Shout it from the rooftops!<br />Be your own brand champion<br />Own it<br />Get buy-in from staff and customers <br />Think about it everyday<br />
  35. 35. A Pinch of Packaging<br />There are a lot of products on those shelves!<br />Make the decision easy<br />Packaging should be:<br />Visually appealing<br />Colorful<br />An extension of your brand<br />Convenient <br />Cost-effective<br />
  36. 36. A Dollop of Marketing<br />Your secret ingredient!<br />Know your budget<br />Develop a realistic marketing strategy<br />Define your objectives<br />Short- and long-term<br />Create a plan and work the plan<br />Keep it fluid!<br />Tweak the recipe if you need to<br />Spend the money!<br />It’s worth the investment<br />
  37. 37. A Dollop of Marketing<br />Incorporate multiple mediums<br />Advertising<br />Expensive but effective<br />Brand awareness and visibility<br />Print (Newspaper/Magazine)<br />Broadcast (TV/Radio)<br />Public relations<br />“Free publicity”<br />News releases<br />Know the right contacts<br />Get your story straight<br />Keep it short and sweet<br />Find your angle – and work it!<br />
  38. 38. A Dollop of Marketing<br />Use technology<br />Cost effective<br />Build a great web site <br />Spend the money on CMS – it will be worth it<br />Extension of your brand – bring it to life online!<br />Simple, easy to navigate<br />Make it interactive <br />Use social media<br />But use it wisely!<br />Communicate with your customers<br />Email blasts<br />Newsletters <br />
  39. 39. A Dollop of Marketing & Promotion<br />How do you do it?<br />Go it alone<br />You know food, but do you know marketing?<br />You have a CPA and an Attorney don’t you<br />Time consuming<br />Budget constraints<br />Competing priorities<br />OR<br />Hire the RIGHT professionals<br />Cost vs. value<br />An outside perspective <br />Leverage relationships and contacts<br />
  40. 40. Thank You!<br />Questions?<br />
  41. 41. Sara Freetly-Grubb<br />229 SE Douglas| Suite 120| Lee’s Summit, MO<br />Phone: 816.554.3608 | Fax:816.554.3629  <br /> <br />sara@justbecandid.com  |  www.justbecandid.com<br />
  42. 42. Best Practices:Marketing for small business<br />Susan Henson<br />Business Development Specialist<br />Missouri SBTDC<br />Kansas City, MO<br />hensons@missouri.edu<br />
  43. 43. Small Business & Technology Development Centers<br />SBTDC programs help businesses start, grow and succeed by providing unbiased, research-based expertise through <br />one-on-one consulting and targeted training.<br />32<br />
  44. 44. Overview: Marketing for Small Business<br />Explore and Discover<br />Marketing formula<br />Create the program<br />Put it into action<br />Marketing tactics<br />33<br />
  45. 45. Explore and Discover<br />34<br />
  46. 46. Look Inward and Outward<br />At your company<br /><ul><li>What is the value proposition?
  47. 47. What are trends in your industry & the marketplace
  48. 48. What you have done successfully in the past?</li></ul>Explore and Discover<br />35<br />
  49. 49. Look Inward and Outward<br />About competitors<br /><ul><li>Who are your primary competitors?
  50. 50. How about secondary competitors?
  51. 51. How are they priced?
  52. 52. How/Where do they distribute?,
  53. 53. What marketing tactics do they use?</li></ul>Explore and Discover<br />36<br />
  54. 54. Look Inward and Outward<br />About customers<br /><ul><li>Exactly who are your customers? What are their characteristics?
  55. 55. Will they understand your product value?
  56. 56. How much will they pay? Why?
  57. 57. Where do they shop for similar “stuff”? </li></ul>Explore and Discover<br />37<br />
  58. 58. Who are you anyway? <br />(yes, the “B” word – BRAND…<br /><ul><li>What do you do best?
  59. 59. What makes you different </li></ul> from competitors? <br /><ul><li>Do your customers “get” who you are?
  60. 60. Are you giving customers a unique, memorable experience?</li></ul>…Identity & Position)<br />Explore and Discover<br />38<br />
  61. 61. your marketing formula: the P’s<br />Product<br />What can you do to make your product/service<br /> more appealing?<br />Place<br />What can you do to make your product/service <br /> more accessible?<br />Price<br />What can you do to make your prices <br /> more appealing or sensible?<br />Promotion<br />What can you do to make your promotions <br /> more visible and persuasive?<br />People<br />What can you do to make your human interactions with customers more friendly and meaningful?<br />39<br />
  62. 62. Create the Program<br /><ul><li>Targeted, Unique, Creative
  63. 63. Focused, Simple
  64. 64. Consistent, Repetitive
  65. 65. Emotional
  66. 66. Appreciates Loyalty
  67. 67. Wise Spending
  68. 68. Measured</li></ul>Take Action<br />40<br />
  69. 69. MarketingTactics- trends for small business<br /><ul><li>Packaging
  70. 70. Email campaigns
  71. 71. Social media
  72. 72. Internet advertising
  73. 73. Direct mail
  74. 74. Coupons
  75. 75. Customer Service
  76. 76. Convenience </li></ul>41<br />
  77. 77. one size Doesn’t fit all<br />42<br />
  78. 78. Questions? Susan HensonMO SBTDChensons@missouri.edu816-407-3492Clay County Extension Center1901 NE 48th StKansas City, MO 64118<br />43<br />
  79. 79. Upcoming Events<br />“Spring Into Hope”<br />A Shopping Event to Benefit the Marian Hope Center<br />Independence Events Center<br />Friday, April 15th and Saturday, April 16th<br />The Ennovation Center will have a booth and current kitchen incubator clients will have the opportunity to sell their items in the booth.<br />Contact Jenni Mann at 816.463.3532 or jmann@ennovationcenter.com for more information  <br /> <br />
  80. 80. Upcoming Events<br />Ennovation Center Client Showcase<br />Tentative Date: June 8th, 2011<br />The Ennovation Center will highlight our clients and their products to an audience of restaurant operators and grocery retailers.<br />Contact Jenni Mann at 816.463.3532 or jmann@ennovationcenter.com for more information  <br /> <br />

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