Farmers Market Vendors Workshop

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Presentation by Andy Larson, ISU Extension Small Farm Specialist on March 23, 2010.

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Farmers Market Vendors Workshop

  1. 1. Marketing and Merchandising to Improve Your Success at Farmers Markets Andrew Larson, ISU Extension
  2. 2. Agenda <ul><li>Growth of the direct-to-consumer sector </li></ul><ul><li>Farmers markets increasingly benefit Iowa </li></ul><ul><li>Getting to know your market </li></ul><ul><li>Tell a story with your booth </li></ul><ul><li>Tips for product display and merchandising </li></ul>
  3. 3. SELLING DIRECT-TO-CONSUMER <ul><li>A growing market segment </li></ul>
  4. 4. Facts on Direct-to-Consumer Food Marketing: Incorporating Data from the 2007 Census of Agriculture. Adam Diamond and Ricardo Soto. Marketing Services Division, USDA-AMS. 2009.
  5. 5. Facts on Direct-to-Consumer Food Marketing: Incorporating Data from the 2007 Census of Agriculture. Adam Diamond and Ricardo Soto. Marketing Services Division, USDA-AMS. 2009.
  6. 6. 2007 Census of Agriculture
  7. 7. Facts on Direct-to-Consumer Food Marketing: Incorporating Data from the 2007 Census of Agriculture. Adam Diamond and Ricardo Soto. Marketing Services Division, USDA-AMS. 2009.
  8. 8. Facts on Direct-to-Consumer Food Marketing: Incorporating Data from the 2007 Census of Agriculture. Adam Diamond and Ricardo Soto. Marketing Services Division, USDA-AMS. 2009.
  9. 9. 2007 Census of Agriculture
  10. 10. FARMERS MARKETS BENEFIT IOWA <ul><li>211 Farmers markets; leading per capita </li></ul>
  11. 11. Legal Definition <ul><li>&quot;Farmers market&quot; means a marketplace which seasonally operates principally as a common market for fresh fruits and vegetables on a retail basis for off-the-premises consumption. </li></ul><ul><ul><li>Iowa Food Code 137F.1 </li></ul></ul><ul><li>Farmers markets have been a billion-dollar industry since 2005 </li></ul>
  12. 12. Increasing number of markets http://www.ams.usda.gov/AMSv1.0/ams.fetchTemplateData.do?template=TemplateS&navID=WholesaleandFarmersMarkets&leftNav=WholesaleandFarmersMarkets&page=WFMFarmersMarketGrowth&description=Farmers%20Market%20Growth&acct=frmrdirmkt
  13. 13. USDA Agricultural Marketing Service. 2009. USDA’s National Survey of Farmers Market Managers – Regional Charts.
  14. 14. Economic Impacts Otto, Daniel and Theresa Varner. March 2005. Consumers, Vendors, and the Economic Importance of Iowa Farmers’ Markets: An Economic Impact Survey Analysis. Leopold Center for Sustainable Agriculture. http://www.leopold.iastate.edu/research/marketing_files/markets_rfswg.pdf
  15. 15. Economic Impacts Otto, Daniel and Theresa Varner. March 2005. Consumers, Vendors, and the Economic Importance of Iowa Farmers’ Markets: An Economic Impact Survey Analysis. Leopold Center for Sustainable Agriculture. http://www.leopold.iastate.edu/research/marketing_files/markets_rfswg.pdf
  16. 16. Economic Impacts Otto, Daniel and Theresa Varner. March 2005. Consumers, Vendors, and the Economic Importance of Iowa Farmers’ Markets: An Economic Impact Survey Analysis. Leopold Center for Sustainable Agriculture. http://www.leopold.iastate.edu/research/marketing_files/markets_rfswg.pdf
  17. 17. Urban markets <ul><li>~72% of farmers market sales in Iowa were generated by five markets </li></ul>Otto, Daniel and Theresa Varner. March 2005. Consumers, Vendors, and the Economic Importance of Iowa Farmers’ Markets: An Economic Impact Survey Analysis. Leopold Center for Sustainable Agriculture. http://www.leopold.iastate.edu/research/marketing_files/markets_rfswg.pdf
  18. 18. KNOW YOUR MARKET <ul><li>Be prepared for every customer </li></ul>
  19. 19. Why shop at farmers markets? <ul><li>AMS says: </li></ul><ul><ul><li>Freshness </li></ul></ul><ul><ul><li>Taste </li></ul></ul><ul><ul><li>Local </li></ul></ul><ul><li>Food trends for 2009 </li></ul><ul><ul><li>Comfort foods </li></ul></ul><ul><ul><li>Homemade meals </li></ul></ul><ul><ul><li>Simple cooking </li></ul></ul><ul><li>Food trends for 2010 </li></ul><ul><ul><li>Keeping it real </li></ul></ul><ul><ul><li>Food vetting </li></ul></ul><ul><ul><li>Mainstreaming sustainability </li></ul></ul><ul><ul><li>Food with benefits </li></ul></ul>http://pubwiki.extension.org/mediawiki/files/f/ff/MarketMaker_Webinar_May09.pdf http://www.foodchannel.com/stories/2172-announcing-our-top-ten-food-trends-for-2010
  20. 20. Consumer Characteristics Otto, Daniel and Theresa Varner. March 2005. Consumers, Vendors, and the Economic Importance of Iowa Farmers’ Markets: An Economic Impact Survey Analysis. Leopold Center for Sustainable Agriculture. http://www.leopold.iastate.edu/research/marketing_files/markets_rfswg.pdf
  21. 21. Vendor Characteristics 2009 Farmers Market Vendor Summary, compiled by NASS Iowa Field Office http://www.nass.usda.gov/Statistics_by_State/Iowa/Publications/Other_Surveys/
  22. 22. What are they buying? 2009 Farmers Market Customer Summary, compiled by NASS Iowa Field Office http://www.nass.usda.gov/Statistics_by_State/Iowa/Publications/Other_Surveys/
  23. 23. Otto, Daniel and Theresa Varner. March 2005. Consumers, Vendors, and the Economic Importance of Iowa Farmers’ Markets: An Economic Impact Survey Analysis. Leopold Center for Sustainable Agriculture. http://www.leopold.iastate.edu/research/marketing_files/markets_rfswg.pdf
  24. 24. What are they spending? <ul><li>In 2005, average spent per farmers market trip is around $16 </li></ul><ul><li>In 2009: </li></ul>Otto, Daniel and Theresa Varner. March 2005. Consumers, Vendors, and the Economic Importance of Iowa Farmers’ Markets: An Economic Impact Survey Analysis. Leopold Center for Sustainable Agriculture. http://www.leopold.iastate.edu/research/marketing_files/markets_rfswg.pdf
  25. 25. Customer Demographics <ul><li>Bureau of Labor Statistics – consumer expenditures report says Midwesterners: </li></ul><ul><ul><li>Spend $191 annually on fresh fruits </li></ul></ul><ul><ul><li>Spend $161 annually on fresh vegetables </li></ul></ul><ul><li>Get very specific info on Iowa MarketMaker </li></ul><ul><ul><li>http://ia.marketmaker.uiuc.edu/ </li></ul></ul>
  26. 27. What are we making? <ul><li>Nationally, average annual sales per vendor were $7,108 in 2005 </li></ul>Otto, Daniel and Theresa Varner. March 2005. Consumers, Vendors, and the Economic Importance of Iowa Farmers’ Markets: An Economic Impact Survey Analysis. Leopold Center for Sustainable Agriculture. http://www.leopold.iastate.edu/research/marketing_files/markets_rfswg.pdf
  27. 28. What are we making? <ul><li>In Iowa: </li></ul>2009 Farmers Market Vendor Summary, compiled by NASS Iowa Field Office http://www.nass.usda.gov/Statistics_by_State/Iowa/Publications/Other_Surveys/
  28. 29. The Pricing Game <ul><li>Know what grocery store is charging </li></ul><ul><li>Know what other vendors are charging </li></ul><ul><li>Different prices for different markets </li></ul><ul><li>Have a concise, convincing explanation for why you charge what you charge </li></ul>
  29. 30. The Pricing Game <ul><li>Don’t undercut other vendor’s prices </li></ul><ul><ul><li>Can create a perception of lower value </li></ul></ul><ul><ul><li>Creates ill will amongst other vendors </li></ul></ul><ul><li>Avoid temptation to “dump” at end of market </li></ul><ul><ul><li>Have a secondary market for cosmetically imperfect product – e.g. restaurant/food service </li></ul></ul><ul><ul><li>Even donation to a food bank may be better than training your customers to wait for bargains </li></ul></ul>
  30. 31. YOUR MARKET BOOTH <ul><li>Tell your story with </li></ul>
  31. 32. Signage <ul><li>Your farm sign should: </li></ul><ul><ul><li>Meaningfully identify your farm </li></ul></ul><ul><ul><li>Create a lasting impression </li></ul></ul>http://www.flickr.com/photos/mr38/409488101/ http://www.flickr.com/photos/mr38/161939161/
  32. 33. Signage <ul><li>Other signs might: </li></ul><ul><ul><li>Identify a specialty </li></ul></ul>http://www.flickr.com/photos/afagen/2968449884/
  33. 34. Signage <ul><li>Other signs might: </li></ul><ul><ul><li>Describe your practices </li></ul></ul>http://www.flickr.com/photos/daniel_beaman_photography/3227171482/ http://www.flickr.com/photos/ellectric/28057614/
  34. 35. Signage <ul><li>Other signs might: </li></ul><ul><ul><li>Or just make you stand out in the crowd! </li></ul></ul>http://www.flickr.com/photos/the_impression_that_i_get/1149786274/
  35. 36. Photos <ul><li>Photographs help customer deepen the relationship with your farm and family </li></ul>http://www.flickr.com/photos/graygoosie/3473422045/
  36. 37. Photos
  37. 38. Shade <ul><li>For the sake of your product and yourself </li></ul><ul><ul><li>But don’t let it detract from your booth! </li></ul></ul><ul><ul><ul><li>Red and blue canopies can cast unflattering light </li></ul></ul></ul>http://www.flickr.com/photos/laurabell/157370213/
  38. 39. People <ul><li>Consider people flow </li></ul><ul><ul><li>Don’t let paying customer block out potential customers </li></ul></ul>http://www.flickr.com/photos/mmmmarshall/1460589663/in/set-72157600993854897/
  39. 40. http://www.wallacecenter.org/our-work/Resource-Library/wallace-publications/handbooks/Farmer11-1_Pr.pdf/view
  40. 41. People <ul><li>You and your employees are part of the booth </li></ul><ul><ul><li>Wear a “uniform” with the farm logo </li></ul></ul><ul><ul><li>Look neat & tidy </li></ul></ul><ul><ul><li>Be engaging </li></ul></ul><ul><ul><li>Stay busy </li></ul></ul><ul><ul><li>Go out of your way to provide excellent customer service </li></ul></ul>http://www.flickr.com/photos/lisabk/2499561553/
  41. 42. Stand Out! <ul><li>Sing! </li></ul><ul><li>Dance! </li></ul><ul><li>Juggle! </li></ul><ul><li>Throw vegetables! </li></ul><ul><li>Wear a goofy hat! </li></ul>http://www.flickr.com/photos/beautifulcataya/2894707799/
  42. 43. GREAT PRODUCT MERCHANDISING <ul><li>The silent salesperson: </li></ul>
  43. 44. You’ve got 3 seconds… <ul><li>A product display should be a work of art that invites interaction </li></ul>http://www.flickr.com/photos/72397567@N00/1671442861/
  44. 45. Is this inviting? http://www.flickr.com/photos/gurlangel16/112528201/
  45. 46. Color <ul><li>Color contrast makes a display “pop” </li></ul><ul><li>Highlight product with neutral background </li></ul>http://www.flickr.com/photos/monitorpop/246049671/ http://www.flickr.com/photos/mr38/3343763952/
  46. 47. Color http://www.flickr.com/photos/alisonlol/1473128619/in/set-72157602246441530/ http://www.flickr.com/photos/experiencela/2191052964/
  47. 48. Bounty <ul><li>Always give the appearance of abundance </li></ul><ul><ul><li>Constantly re-stock or change container </li></ul></ul>http://www.flickr.com/photos/the_impression_that_i_get/511500999/ http://www.flickr.com/photos/the_impression_that_i_get/511472490/in/photostream/
  48. 49. Bounty <ul><li>Customers should never feel like they’re left with the dregs… </li></ul>http://www.flickr.com/photos/graygoosie/2618643625/
  49. 50. Top Shelf <ul><li>“ Sell zone” is from eyeball to elbow </li></ul><ul><ul><li>Don’t make shoppers bend over to reach product on the ground </li></ul></ul><ul><ul><li>Don’t make your display too deep </li></ul></ul><ul><ul><li>Utilize vertical space </li></ul></ul>http://www.flickr.com/photos/mmmmarshall/3538195114/in/set-72157600993854897/
  50. 51. http://www.flickr.com/photos/ellectric/28057545/in/set-645005/
  51. 52. Top Shelf http://www.flickr.com/photos/experiencela/2148720097/
  52. 53. http://www.flickr.com/photos/jasoncross/755324122/
  53. 54. Product Signage <ul><li>Signs should clearly convey product and price </li></ul><ul><ul><li>Best if legible from the aisle </li></ul></ul>http://www.flickr.com/photos/alisonlol/629818219/
  54. 55. Product Signage <ul><li>If possible, also include: </li></ul><ul><ul><li>Variety </li></ul></ul><ul><ul><li>Attributes that add value </li></ul></ul><ul><ul><li>Suggested use or recipe </li></ul></ul>http://www.flickr.com/photos/wildcat_dunny/184987981/
  55. 56. Product Signage <ul><li>Signs need not be fancy to be effective and memorable </li></ul>http://www.flickr.com/photos/kthread/2892938940/in/set-72157607535456792/
  56. 57. Product Signage <ul><li>But it may be possible to go overboard… </li></ul>http://www.flickr.com/photos/afagen/2967027624/
  57. 58. Strategic Packaging <ul><li>You may have better luck with a smaller container, even if the price/unit is higher </li></ul><ul><ul><li>e.g. blackberries </li></ul></ul><ul><ul><ul><li>Pint for $5 </li></ul></ul></ul><ul><ul><ul><li>½ pint for $3 </li></ul></ul></ul>http://www.flickr.com/photos/-m-p-g-/1176075197/
  58. 59. Strategic Packaging <ul><li>Package multiple products together for a premium price </li></ul><ul><ul><li>“ Salsa kit” with tomatoes, peppers, onions, and cilantro </li></ul></ul><ul><ul><li>“ Stir-fry special” with summer squash and baby vegetables </li></ul></ul><ul><ul><li>“ Grab-n-go” single-serve packages for hurried customers at weekday markets </li></ul></ul><ul><ul><li>Gourds, mini straw bale, and multi-color corn for fall décor </li></ul></ul>http://www.flickr.com/photos/lisabk/2499560623/
  59. 60. Sampling <ul><li>Talk to your market master & county health department! </li></ul>http://www.flickr.com/photos/bootsintheoven/2720101716/
  60. 61. Abundance <ul><li>Provide the customer with an abundance of: </li></ul><ul><ul><li>Fresh, high-quality product that is handled carefully and presented attractively </li></ul></ul><ul><ul><li>Information regarding price, variety, and production method, as well as your farm story </li></ul></ul><ul><ul><li>Customer service that surpasses their expectations and builds a relationship </li></ul></ul>
  61. 62. Resources <ul><li>IDALS Farmers Market Resources </li></ul><ul><ul><li>http://www.agriculture.state.ia.us/Horticulture_and_FarmersMarkets/farmersMarketAssistance.asp </li></ul></ul><ul><li>Farmers Market Coalition resource library </li></ul><ul><ul><li>http://www.farmersmarketcoalition.org/resources/resource-library/?cat_id=26 </li></ul></ul><ul><li>Farmers Markets Today </li></ul><ul><ul><li>http://www.farmersmarketstoday.com </li></ul></ul><ul><li>Grant Opportunities </li></ul><ul><ul><li>Farmers Market Promotion Program (FMPP) </li></ul></ul><ul><ul><li>Federal & State Marketing Improvement Program (FSMIP) </li></ul></ul>
  62. 63. Thanks! <ul><li>Questions? </li></ul><ul><li>Andy Larson </li></ul><ul><li>(515) 294-5875 </li></ul><ul><li>[email_address] </li></ul>
  63. 64. USDA Agricultural Marketing Service. 2009. USDA’s National Survey of Farmers Market Managers – Regional Charts.
  64. 65. USDA Agricultural Marketing Service. 2009. USDA’s National Survey of Farmers Market Managers – Regional Charts.
  65. 66. USDA Agricultural Marketing Service. 2009. USDA’s National Survey of Farmers Market Managers – Regional Charts.
  66. 67. USDA Agricultural Marketing Service. 2009. USDA’s National Survey of Farmers Market Managers – Regional Charts.
  67. 68. USDA Agricultural Marketing Service. 2009. USDA’s National Survey of Farmers Market Managers – Regional Charts.
  68. 69. USDA Agricultural Marketing Service. 2009. USDA’s National Survey of Farmers Market Managers – Regional Charts.

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