What is Cause Marketing? Part 2

By Dr Kathy Kelley, Professor of Horticultural Marketing and Business Management, and Dana Ollendyke, Extension Associate

The first installment in this series can be found here.
With so many local, national, and international causes already being supported by your customers’ generosity, how can you compete with them and the businesses that sponsor them?  Consider the following, which could help bolster your cause marketing program.

Make sure that the donation process is transparent  

For each dollar that you collect, you need to show how and where these funds were distributed. Consumers who do not see any progress associated with the money they donated may very well choose not to donate anymore.  Be sure to indicate on your website, in your promotional activities, and in-store that money collected helps to do great things.

Consider a cause that has a natural connection with your business  

Perhaps a member of your business has suffered from a disease that could benefit from a donation.  If this is the case, ask him or her to be the “face” of the effort. In the Wharton Business School article "To Increase Charitable Appeal to the Heart-- Not the Head", it describes how consumers are more likely to donate to a cause if “presented with a personal case of an identifiable victim” through pictures and stories, “something that purely engages the emotional system”.

For example, we can all probably think of at least one product that dons a pink ribbon in honor of breast cancer research.  One of the businesses that does so is J. Lohr Vineyards & Wines.  The winery actually began partnering with cause organizers due to a family member’s breast cancer fight.  Founder Jerry Lohr lost his wife, Carol, in 2008 and through sales of both J. Lohr Carol’s Vineyard Cabernet Sauvignon and Sauvignon Blanc, the company had a 2014 goal of “providing over 4,000 mammograms to women who would otherwise be unable to afford them”. Certainly, the cause is worthy enough, but by associating a name, story, and image of Carol Lohr, we begin to associate the brand with a real family – not just a business.

Image 1.  Screenshot of the J. Lohr Vineyards website that details their mission to provide mammograms to women in need.

Or perhaps there is an environmental issue that greatly impacts your city/state/region. Sales from Crimson Pinot Noir, produced by Ata Rangi Vineyard (Martinborough, New Zealand) supports Project Crimson, “to protect and renew our spectacular red-flowering rata and pohutukawa – New Zealand’s iconic native ‘Christmas trees’.” Not only can consumers support the cause by purchasing this wine (Image 2), they can also purchase Northern Rata trees and plant them on their own property (Image 3).

Image 2.  Label showcasing the partnership with Project Crimson.

Image 3.  Sign advertising the sale of the rare Rata trees.

More considerations on creating a cause marketing program to follow in part 3 of this series!

Choosing Social Media Tools for Your Business

by Sarah Cornelisse, Sr. Extension Associate, Dept. of Agricultural Economics, Sociology, and Education

"What social media should I use for my business?"  This is an often-asked question, and unfortunately, not one that is easily answered by an outsider.  The appropriate social media tool(s) for your individual business will depend on a number of factors, several of which I discuss below.

What are your goals?  Any time you implement the use of a tool, you should have an identified goal that the tool's use will help you in reaching.  The same goes for social media tools.  It is easy to post lots of content to one or more platforms without accomplishing anything.  Keep in mind also, that it is entirely feasible to identify the use of more than one social media tool to accomplish one or more goals, such as using both Facebook and YouTube to share videos of recipe preparations.

Who do you want to connect with?  Are you looking to connect with consumer, businesses, colleagues, women, techies, etc.?  Different tools attract different types of users.  You'll want to research the demographics of the users for the different social media tools you're considering.  For instance, women are the primary users of Pinterest, while connecting with industry peers may call for using Linkedin.

Where are your competitors?  Some degree of weight should be placed on what social media tools your competitors are using.  What platforms are your direct competitors most active on?  If enough of your direct competitors, or businesses similar to yours, are active on a particular platform, it's likely that is where you should be as well. 

What type of content do you want to share?  Typically, the type of business you operate and the products/services you sell, dictate the type of content, but not always.  Different social media platforms lend themselves better to different types of content.  Photos and recipes are great fodder for Pinterest.  Facebook handles a variety of content types, but photos and video are more likely to be shown in the newsfeed of followers.  To tell stories, educate, or discuss industry related information, blogs are likely preferable.

How do you want to engage?  You may have a preference for how you would like to engage with consumers and followers.  If you enjoy ongoing conversations, can be "connected" a great deal of the time, and are not concerned with followers finding past posts, you may prefer using Twitter. 

Track analytics.  If you're using more than one social media tool, study the analytics that each provides on your activity.  You may find that your followers are conversing with you, sharing your content, etc. more often on one platform than on another.  If that's the case, you'll want to focus your efforts more on the tool that is generating this "return."

Answering these questions should lead you to identify the most appropriate social media platform(s) for your business.  Remember, you don't need to be everywhere.  It's fine to start out with just one social media tool.  The trick is to start with the right one.

What Retail Produce Marketing is About!

by John Berry, Extension Educator, Lehigh Co.

The incentive to consider retail marketing is obvious.  The closer you can get to retail customers, the more retail dollars go in your pocket.  However, it's not all profits.  If you sell retail, you will be providing services the wholesalers, packagers, distributors, and retailers typically provide.  As we approach another fresh produce marketing season, let's review some of the key details of operating a direct-to-consumer marketing enterprise.

Visual Display
Proper presentation of products increases sales.  Shoppers receive a positive impression if products are top quality, clean, and tastefully displayed.  Remember that high-quality products are the strength of produce markets!

A lively, well-stocked produce department entices the customer to buy and increases sales and profits.  Think of yourself as an artist, with several palettes of colors to choose from: visual - color, contrast, shape, size; smell - herbs, fruits; and touch - soft or firm.

Make displays that look like they came from the farm.  Wooden crates or boxes work well.  Baskets are beautiful; slant them toward the customer.  Even an attractive tablecloth can add to your sales.  Stair stepped displays create an array of depth, color, and texture; however, they may not be easy for the customer to reach or easy to restock.  Utilize vertical space by hanging products from slings or hangers.

Merchandising
"Pile it high and kiss it good-bye!"  Full, well-stocked displays make customers want to come back and get it.  Customers don't like taking the last of something from a bare, picked-over display; they want to choose the best.  Remember to not overstock to prevent the risk of crushing tender items on the bottom.

Make it easy for the customers to reach for the produce.  Your display should be no more than an arm's reach in depth, and between knee and waist level in height.  Don't put your merchandise on the ground.  Instead of placing your boxes flat, try slanting your produce to give the customer a more pleasing visual sense of your product.

Excellent example of using color and texture with a wide
product mix.  Everything I need to make a delicious side
dish for my dinner.

Organize products in related groupings.  Such groups might include dessert items, salad items, cooking vegetables, apples and pears.  Displaying compatible products together serves as a suggestion for additional purchases and uses of the products.

Research shows the use of color and texture greatly enhances eye appeal.  People enjoy food with their senses, so displays that are eye appealing tend to increase purchases.  Mix a row of radishes between the mustard and kale, tomatoes between the lettuce and cucumbers, or intersperse peaches with blueberries to create dazzling color displays.

Suggested good color groupings:

• Red and yellow or green
• Light green with yellow or purple
• Dark green with red, orange or yellow

If you don't have a lot of variety, create a color mixture with flowers or signs.

Price Signs

Prices should be clearly marked.  Most shoppers are in a hurry and will not search out the manager to find out how much something costs.  Include a few product features and perhaps menu suggestions on signs to stimulate your buyers' thoughts on how to use the item.

Great use of limited sign space to describe the product itself,
how to store at home, and possible uses.

Final Thoughts

Restock displays frequently, rotate products as needed, and remove damaged, decayed, or unsaleable products promptly.  Unsightly produce left on your stand not only detracts from sales, but it leaves the customer with the notion that you sell rotten produce.  If you'd buy it, leave it; if not, pull it out.

Do You Know Your Customers?

by John Berry, Extension Educator, Lehigh Co.

Do you know who your customers are today; who they will be ten years from now?  Successful marketers do.  Consumers are constantly changing, from their ages and attitudes, to their incomes and ethnic mix.  In order to successfully meet consumers' wants and needs, we must anticipate and respond to them before a demand for a product or service even exists.

Plan to Keep in Touch

Email lists are one method of staying in contact
with your customers on a timely basis.

One key advantage of direct marketing is contact with customers.  People seek the personal attention that is available from most farm retailers.  The benefit to the grower/marketer is first-hand knowledge of customer wants.  Make the most of this direct customer contact.  At the very least; ask your customers to record their name, address, and email in a notebook that is kept near the check-out.  Also consider collecting other electronic media contacts customers may be utilizing.  Once a notebook is started, you now have a mailing list.  This can help maximize promotional efforts.

Customers will develop a personal connection to your market if they are kept informed.  Is opening day next week?  Is there a huge crop of melons coming ripe?  Why not send an announcement to your regular customers?  Offer a discount on quantity purchases.  This type of effort is well received.  It helps you move product and it establishes loyalty in your customers.

Try to Keep Ahead
One way to prepare for tomorrow is to study changes in consumer demographics.  What do households look like?  What do consumers like to do with their free time?  Which consumers have the highest disposable income?  What would they be willing to spend it on?  How are these factors expected to change in the future?

Planning for the future is usually a guess.  To increase the confidence in this guess, try to base it on as much fact as possible.  The amount of information already gathered and analyzed is staggering.  The local library, township authorities, the department of transportation, and your Extension office can be possible sources of trend information.

Did You Know?
Here are general statistics from the Census Bureau.  Remember, these are for the entire population.  Try to answer some of these questions with the data that is specific to your customers.  By the year 2015, households without children under 18 will outnumber those with kids by 14 million.  The projections for the types of households we can expect are as follows: Couples without children, 32%; Women living alone, 17%; Men living alone, 14%.

How might this impact your customers and their shopping behavior?  The average person spends less than 50 minutes a day preparing meals.  Those with a microwave oven spend 45 minutes, while those without a microwave spend 59 minutes.  Clean up time averaged 7.7 minutes each day.

How do you fit your product into microwave preparation and easy clean up?

Conclusion
I like doing what I know how to do, and I find adapting to change is seldom comfortable.  However, exceeding the demands of most retail consumers is a moving target.  Effective direct marketers learn to change and adapt.  The efficiency of adapting can be increased by considering the possible developments of the future before they arrive.  In the final spare moments we may have before the spring season is upon us - let's spend some time and effort developing a deeper understanding of what drives our current shoppers and developing a better guess of who our future customers might be.

Is Customer Service on Social Media for You?

by Sarah Cornelisse, Sr. Extension Associate, Dept. of Agricultural Economics, Sociology, and Education

I'm sure you've all seen them - the stories, comments, or other posts on Facebook, Twitter, Google+, or another social platform from people dissatisfied with some aspect of a product or a service from a business. More so than ever, consumers are turning to social media to share their annoyances and horror stories.  However, they also turn to social media to connect with brands and businesses - to seek information,  ask questions, and resolve problems or concerns.

A 2012 Nielsen report provides some insight to consumer views regarding customer service via social media, or "social care."  Their findings include:

• Almost half (47%) of social media users engage in customer service activities through these networks. And of that 47%,
• Seventy percent (70%), do so on a monthly basis.
• Thirty percent (30%) prefer social care over contacting a company by phone.
• Facebook, through both the company's page and the user's personal page (29% and 28% respectively), are where users are most likely to comment or ask a question.

If your business has an existing presence on social media and is looking for a competitive edge, or just to improve your relationship with your followers, taking on social care may be something to consider.  However, it does require commitment.  Here are some tips I've come across for using social media as a customer service channel.

• Be proactive. Listen and participate in conversations. You can learn so much from simply listening to what your customers, or the public, are saying on social media.  If a conversation is happening and you can add to it, do so.  Through active listening, you'll be ahead of the curve in knowing what's important or of concern to them.

• Focus on social interaction as a competitive differentiator. One reason the buy local movement is popular is because consumers like to know the person(s) from whom they're buying.  You can bring the same focus on relationships to your online interactions with consumers.  When you're separated from individuals by a computer screen it's easy to put off replying until a more convenient time or to send short, clipped responses. However, by being personal and personable, you can build trusting relationships with your customers and followers that they will appreciate and value. 
  

  "When executing social media customer care, canned responses are unacceptable. Responses must be personal, and it’s essential to strike the right tone." (Source)

  Additionally, if consumers see inconsistency in your social care, they'll know that you're not committed to them.  A study by Conversocial, found that 88% of respondents said that they would be less likely to do business with someone who didn't answer questions on their social media pages.  This leads us to the next tip...
  
  
• Define a process and framework for dealing with customers. How, and when, will you respond to requests?  What's your strategy for dealing with complaints? Creating a response map (see example below) may be useful, as you'll want to have a consistent response strategy for everything that comes your way, even praise.   With some aspects of your response strategy, such as response time, it may make sense to make this known upfront to your customers with short notices on your social media page, or through an automatic reply.
  

  

  Source: http://www.conversocial.com

  When complaints are involved, be sure these points are addressed in your response framework:

• Understand what's behind the complaint before responding.  Sometimes, the complaint made is just the tip of the iceberg, and the real issue lies deeper.  Ask the complainant clarifying questions as appropriate if you suspect this is the case.
• Follow through on all channels.  If a conversation moves from one channel to another, say from Facebook to email, make sure you indicate that this has taken place.  This will allow others who have seen the start of a conversation know that you are in contact with the original poster.  You may also want to post the final resolution, or answer, on the original channel for others to see and for the complainant to verify that they have been assisted.
• Follow up after problems have been solved.  Once you have provided a solution or rectified the situation, follow up after a reasonable length of time to ensure your customer's satisfaction.

It is possible to provide excellent customer service using social tools, just check out this customer's experience with Netflix. 

"If you’re not engaging customers during the entire product life cycle through social media, you’re missing out. Because someone else will."

                   - Dennis Stoutenburgh, co-founder of Stratus Contact Solutions

Note: Where businesses or trade-names are mentioned, no endorsement is intended.

Developing a Roadside Farm Market

by Michelle Kowalewski, Extension Educator, Susquehanna Co.

Thinking of growing and selling your own product?  A roadside farm market can be a great outlet to sell products directly to consumers.  Retailing directly to consumers can be a viable alternative marketing strategy and means of increasing profits for any small-scale ventures.  However, marketing through a roadside market needs careful planning and thorough examination of a wide range of topics.

First, as with any business venture, it's important to research! Explore potential competition, customers, and products.  What will make your roadside market different from another and what will entice people to stop and buy your products?  The increasing trend to buy local products is certainly in your favor if you can make a great first impression and encourage customers to stop again.  What products will you grow to sell at your market?  What is your expertise and how does it match up with what your target customers want?  Remember, quality is important to consumers and will be one of the main reasons that they continue to shop at your stand.  Develop a plan, including production schedule of what items might be in season, when, and for how long.  An option if you cannot produce all the items you wish to sell, is to consider supplementing your market with offerings from other local growers.

It's always important to check on regulations.  There are many regulations to operating a small business and a roadside stand is no exception.  Check with local municipalities or officials to check on zoning in your area or township.  Location is a key consideration for a roadside market.  Spend time observing traffic flows in the vicinity of your potential site.  And remember, signage is important.  No matter how nice your market looks, people must be able to find it, so use directional signs to help customers locate your business.  Signs must be eye-catching and easy to read from a distance.  It's less important to list all the products available on the sign than to direct customers to the market.  When people arrive at your market it's important for parking to be easily accessible and safe.  See this past blog on signage for more.

Now that you have customers to your market, remember to keep your displays attractive.  Shoppers like to see displays of fresh vegetables in a high quality, clean environment.  Remember, a positive first impression will keep shoppers coming back for the next visit!  Roadside markets are often selling an image and experience as well as physical products.  Help your customers think about traditions and warm thoughts - old crates, tools, scales, or simply photos can help create a "moment" for the shopper that makes them feel connected.  It's all about selling your story and your products!

A simple, yet attractive, display on something like this old time sleigh,
can trigger warm, nostalgic feelings in customers, bringing them back.

Customer service is important - be sure to listen to your customers as well as educate them about the products that you are producing.  Be friendly and courteous and always handle complaints in a professional manner.

There are a lot of other key factors to consider when developing a roadside market:

• Size - are you building a new structure or remodeling an existing structure? Do you ever envision expanding?
• How will you price your products?  
• Do you need to consider advertising?  
• How will you staff your market?  
• What type of records should you keep?  

To learn more about developing a roadside market, read Penn State Extension's Ag Alternatives fact sheet on Developing a Roadside Farm Market.

Marketing "Sustainable Farming" to Consumers: A Research Review

A recent journal article by Hillary Sackett, Robert Shupp, and Glynn Tonsor includes results that may benefit some readers who are marketing products with a "sustainable" label.  I'll provide the short version here but you may be able to obtain a copy of the work from one of the authors.

Research Motivation & Background

Sustainable agriculture is often described as a farmer working to not only be profitable but also do no harm to the environment and the broader society.  This so-called "triple bottom line" is sometimes referred to as "Profit, People, Planet."  While many in the agriculture industry debate the term, sometimes strongly, it's clear that a segment of consumers make purchases based on their perceptions of sustainability and the practices that make a farm sustainable.  Food marketers need to understand these consumers in order to target promotional efforts accurately.

The researchers used an internet survey to gather feedback from 1,002 people in 2010.  There were two different versions of the survey; one for apples and one for beef.  For each, ten different characteristics of sustainability were defined.  These characteristics reflected 6 production practices, some of which were different between apples and beef.  (For example, one practice for beef was "prohibited use of antibiotics" and one practice for apples was "limited herbicide use.")  Using a method called "Best-Worst Scaling," the researchers repeatedly asked respondents to choose the most and least important options from a group that included six of the ten total characteristics.  By answering this type of question a number of times, with different groupings, the respondent's preferences become clear.

The researchers analyzed the data to determine the relative importance of each of these characteristics.  They did this first for the entire group of respondents and then they used a tool called "latent class cluster analysis" to group similar types of respondents.  The benefit of this type of tool is that the data naturally group themselves rather than the researchers providing their best judgment to group the respondents.  The researchers then explore the clusters to understand the factors that differentiate the clusters.  The results for both types of analysis are useful for marketers!

Primary Findings

Overall, the size of the farm was ranked significantly higher than any other characteristics for both apples and beef.  The factor related to "locally-grown" was ranked 2nd for beef and 4th for apples.  A full set of results is shown below.

Ranked preferences for measures of sustainability on apple and beef farms

The numbers in parentheses show the level of the preference among all respondents.  These can be compared against each other.  Therefore, small farms is nearly twice as important than the second option for both apples and beef.

The latent-class cluster analysis then provided four distinct groups of respondents for apples and five distinct groups for beef.  These are described below.

Apple Cluster Groups

1. Localvores - 14% of respondents fell into a grouping that heavily valued local production.  These also valued minimal herbicide use and preventive/cultural pest control.
2. Small Business Enthusiasts - 30% fell into a group that placed heavy value on farm size and financial stability of the farm.  These also valued several of the production practices roughly evenly.
3. Price-Savvy Shoppers - 10% were consistently most concerned with food prices.
4. Sustainably Indifferent - 46% placed roughly equal weight on the characteristics.  It is not possible to discern whether these respondents care little or greatly about these characteristics; only that they care roughly equally about them.

Beef Cluster Groups

1. Animal Rights Activists - 15% place a great amount of weight on animal safety and pasture-based feed.
2. Nutrition Buffs - 24% place a great deal of importance on limited antibiotic use, growth hormones, and pasture-based feed.
3. Price-Savvy Shoppers - 10% indicate that price is the leading concern.
4. Sustainably Indifferent - 41% fell into this group, as described above.
5. Say No to GMOs - 10% placed full weight on the prohibition of genetically modified livestock.

Putting These Results to Work

The results of this work provide a bit of insight for the food marketer.  Assuming the apple-related results are applicable to other fruits, or maybe produce in general, you can see that themes of "small farms," "Integrated Pest Management," "local," and other production-oriented descriptors could be used in your marketing and promotional materials/websites/social media outlets.  The same could be done for beef (and possibly other meats) based on the beef results.

The research also does a nice job of segmenting the markets.  Based on my readings, I suspect that most of those in the "Sustainably Indifferent" groups are not actively seeking sustainably-grown products.  Of course, the "Price-Savvy Shoppers" are also not in the target market.  Therefore, the article provides some insights into why the others are in the market for sustainably-produced foods.  For apples, some consumers are most interested in buying local.  Others want to support small businesses, whether local or not.  For beef, some are most concerned about animal rights or non-GMOs while others view sustainable products as more healthy.

Use these and other related phrases on your labels as well as your promotional materials.  It should help you connect more deeply with your customers as you hone in on what concerns them the most.  Good luck!

_______________________________________________________________________

"Consumer Perceptions of Sustainable Farming Practices: A Best-Worst Scenario." (2013) Agricultural and Resource Economics Review. 42(2) pp. 275-290.

Count Foot Traffic When Hosting an Event at Your Business

The number of shopping days until the fall and winter holidays are dwindling; and most likely you will host an open house or event to draw consumers to your retail outlet to do some holiday shopping.  In the past, we have offered some insight into hosting events (Events – Know When and How to Host Them and Cross Promotion: Partnering With Other Business to Better Serve Your Customers, Part III), and as a result a question you might be asking, “How will I know if the event was a success?” 

Certainly calculating gross and net sales is important but it is also important to document foot traffic – the number of people who attended the event.  It is key to know your customer counts so that you can determine if the event encouraged more consumers to visit than during an average day, or if the event needs to be redesigned to be more appealing.  Foot traffic counts also help retailers understand whether the event attracted more consumers than past events held during the same period. 

Obtaining foot traffic counts can be accomplished by: 

• Distributing invitations that attendees bring to the event to be admitted or requiring attendees to RSVP
• Counting attendees as they arrive at the event by either assigning an employee to manually count customers or installing an electronic sensor that tabulates the number of customers who pass through a particular doorway
• Asking customers to sign up for a mailing list or loyalty program
• Giving each attendee a raffle ticket and keeping track of the number handed out  

Each system has its advantages and disadvantage. 

• If invitations or RSVPs are expected you will also need decide if “walk-ins” will be admitted and how to capture this number
• Not all customers will sign up for your mailing list or loyalty program, or they may already be members unless you are launching these programs during the event 
• If attendees are counted as they enter a doorway—it is possible that they could be counted more than once if they exit the store and then reenter.  It is also possible that the person counting attendees could be distracted if others ask questions or for assistance.  You will also need to determine how you will “count” attendees.  Will you count all adults or will you count families (with two or more adults) and couples as one attendee?  It will also be important to “subtract” any employees, who enter the store through the same entrance, from these counts.  

Foot traffic can also help with planning for next year’s event.  Consider counting the number of customers who visit based on the time of the day and, if it is a multi-day event, the day they visit. These numbers can help with scheduling staff as well as adjusting the hours that the event could be held in future years. Additionally, if you invite other vendors to showcase their goods and services or schedule a special entertainer to perform, use these counts to schedule their appearances when foot traffic is favorable for all involved.  

Having entertainment at your event is a great idea to set the tone.
Just be certain to schedule performers during periods when you expect high foot traffic counts

Record not only foot traffic but also the number of visitors who access your website during and after the event. Also, ask customers to participate in an online survey and ask them if they are interested in attending the event (or if they did attend), what additional vendors or attractions they would be like to see, and how they heard about the event or if they first learned about it when visiting your site.
 

Ideas to Market a Seasonal Business Year Round

By Heather Mikulas, Extension Educator, Allegheny County

The seasons provide a natural break from all of the hard work of growing fresh produce. If your farm’s business plans include some well deserved time off from the rigors of the growing season, there are some fireside efforts which can be done in slippers, at any hour of the day or night, which can keep your farm in the forefront of your customer’s minds. These suggestions for marketing a seasonal business in the off season can keep customers hungry for your business while the ground is frozen. Additionally, some of these activities may open off season revenue channels, should that be something your business wants to explore.

Update and expand your customer database during full season

Whether you are operating a CSA, farmers markets, farm stands, or pick your own, the time to collect customer information is while your product is ripe. Weekly or daily interactions with your customers can give you opportunity to collect names, addresses, phone numbers, and emails. This data can be collected via a piece of paper on a clipboard at market, or through social media or website, updating those contacts to maintain and improve customer relationships.

Ask your customers what they want

Additional information can be gleaned from your customers by asking them what they want next year, which can help with planting plans and market mix. While you are collecting contact info, tack on a question or two asking customers what they want to buy next year, and what they like best about doing business with you. Communicating with your customers helps to understand what your business can improve and helps to build loyalty.

Pay attention to consumer trends

Customers will love seeing photos from
"their" farms!

During the winter, food industry consultants and corporations put out research regarding food trends for the upcoming calendar year. These reports list what the ‘new’ flavor trends will be, package size, convenience and health trends, for instance. Even though these reports are designed for chain restaurants and new snack chip flavors, they can help farm markets and value added producers understand what product competition will be in the wider marketplace. This can provide backing for trying new product lines and freshening up product mix.

Invest in your newsletter and social media content all year long

Do your consumers LOVE to see pictures of spring lambs? They will love to see the ewes nestled in the barn in the winter, too. Do you excel at producing spring greens? Consider selling cold hardy greens in the off season, or at least share information about your seed purchase and provide some salad dressing recipes. Customers love to be connected to ‘their’ farm, even though it is your farm! Give them an insider’s peek into your off season my snapping pictures of your work and planning for the upcoming year. This way, they will be eager customers on opening day.

Stake out your territory

This can be done by defining your niche. Do you make jams and jellies? Perhaps limited run seasonal flavors will encourage customers to ‘buy it while they can’. Are your onions as sweet as candy? Talk them up in newsletters and social media, and create hoopla before they hit market, so when the onions hit the shelf, they don’t sit for very long.

Selling Produce in the Snow - Generating Income with a Winter CSA

by Heather Mikulas, Extension Educator, Allegheny County

The last thing producers may want to think about in the middle of the growing season is extending the growing season.  However, that is just what many Community Supported Agriculture (CSA) business models are doing across the state to meet consumer demand for fresh, vibrant food.  Many farmers are finding that summer share customers desire to eat local twelve months out of the year.  Serving this niche market can open a revenue stream, with winter CSA boxes bringing in an average of $40 a week in Western Pennsylvania, and this income can help farms offset those winter purchases for the upcoming summer season.  Market value for boxes varies in different geographic regions due to particulars such as hardiness zone, storage, growing facilities, transportation, and customer base.  Many winter CSAs quickly fill and have waiting lists.  In this post, we discuss some considerations for cultivating produce sales during the winter months.

Partnering with other farms to market a well-rounded box

Winter CSA box.
Photo credit: Coon Rock Farm

Your farm may excel at storage of apples and squash, but how will that satisfy customer demand?  Talk to other growers in your area to explore the idea of a cooperative winter CSA.  This model has been successful in many places, with several producers contributing cider, produce, baked goods, grains, and other items to round out winter shares.  A challenge with this model is coordinating pickup and delivery, but once that schedule is worked out, transportation costs can be shared, as well as revenue.

Planting greens can bring in the green.  If selling produce in the cold months to bring in the cold cash is attractive, understanding plant biology is key to properly selecting plants which can be successfully grown and stored during the 'off season.'  For instance, working with plants that germinate in cold temperatures, or have slow respiration rates to provide longevity in storage is key to having marketable produce.  Set up your business for success by selecting cold hardy plants to grow or store instead of planning on heating a high tunnel with propane all winter, a sure budget buster.  Many cold hardy greens such as kale, chard, spinach, cress, and mache will survive hard frosts and even light freezes with some protection from desiccating winds.  Many Brassic species, carrots, and leeks also perform well.

Agritainment, selling value-added products, and community building

Many customers enjoy visiting farms during the growing season, and winter CSA on-farm pick-ups can provide opportunities to extend a farm's agritainment season while boosting sales of value-added products.  Options for customers could include cross-country skiing or sledding on the "back 40," sleigh rides in the snow, sales of hot cider and hot chocolate, and offering farm branded value-added product lines to add to the standard box at pick-up are all ways to cultivate year-round revenue streams from high season customers.  Just make sure to check with your liability insurance if having customers on-farm is new to you.

Convincing customers that root crops are delicious is critical to your marketing strategy.  Many committed locavores may turn their nose up at a celeriac root, but one taste of a creamy soup or roasted version of this strange looking vegetable is enough to send a creative cook home with your product, inspired to slice and dice.

Since many winter crops have this image problem, tap into a niche customer base willing to take the chance that parsnips really are sweet and delicious, and have the fortitude to tackle a large squash to create seasonal recipes.  The trick from the producer standpoint is creating storage to slow the respiration and decay process.  Just remember to control temperature, humidity, ethylene, and provide customers with recipes.

Winter CSAs are an opportunity, but do come with some infrastructure costs

Here are some considerations to help you with successful profit margins.  As with many things in life, good timing is everything.  Timing fall plantings correctly can help maximize profits and efficiency.  Marketing these frost-kissed vegetables can be creative as the sugar content concentrates with exposure to cold.  Carrots can be marketed as "candy carrots."  What mom doesn't want to buy those for her kids?  Making sure greens are teacup sized before planting in mid-August will help ensure the plants are mature enough to withstand cold stress.  Carrots should be thumb-sized before frost to be successfully harvested after frosts, and again in late winter/early spring.

High tunnel production for winter CSA.
Photo credit: Scott Arbor

If fresh greens are more to the taste of your customers and growing prowess, here are some upfront costs related to production to turn greens into "green."  To provide protection to field crops when the cold northern winds start to blow, consider investing, as a minimum, in row cover cloths on homemade metal or flexible PVC to create low tunnels.  Two layers of row cover cloth can keep mature cold hardy greens alive through the December holidays.  Some producers report success in keeping crops alive through winter with a kind of dormant period in January and February.  Keep in mind, harvesting from low tunnels is difficult work, so if the investment of a high tunnel is feasible, it will make the winter work easier from a physiological standpoint.  Remember to cover plants in high tunnels with row cover.

Planning for a new business venture can seem overwhelming during the day to day management of an existing business.  Farming on paper is worth the time, as calculating upfront costs and comparing them to projected cash flow is what it takes to assess potential profitability.

Extension can provide technical assistance in the development of CSAs via production, marketing, and business development support.  For further reading on this topic, please visit Penn State Extension's Ag Alternatives website for publications on CSAs and Cooperatives.

Are you considering a pick-your-own experience?

by: John Berry, Extension Educator, Lehigh County 

Recently, the popularity of P-Y-O family outings has increased. It is no wonder. Consumers can enjoy not only the fruits and vegetables available for harvest, but they also get to experience some time on a real farm. Adding to this excitement, each month changes the availability of a different fruit or vegetable. As we know, what is available to pick varies on location, varieties planted, and weather conditions. To create a good communication stream with your potential shoppers it is important you remind them to always call the farm so they don't miss the products they are after or the times they are available to pick. In this part of the country we are finishing up blueberries and blackberries. Peaches, tomatoes, green beans, figs, raspberries and early apples are going full steam this month. Additionally, we are looking forward to more apples, grapes, pumpkins and winter squashes later this fall.

Pick-Your-Own farms offer fun for the whole family!

Because the average consumer is three generations removed from living on a farm they may need a fair amount of education to make their P-Y-O experience most enjoyable. It may be beneficial if you remind your P-Y-O customers to bring snacks, hand towels and plenty of liquids to drink. Should they bring containers for picking and for carrying the fruit home? This can depend on the farm they are visiting as some farms provide containers. Should they dress in old clothes so they are comfortable and not worried about staining or tearing? How about suggesting a hat to offer protection from the sun? In the fall, extra layers keep them warm for picking. Remind them the value of sunscreen for the back of their neck and exposed skin.

Also, be sure to tell them the fun doesn't have to end with just picking the fruit. Especially if your farm also offers hay rides, petting zoos, corn mazes, gift shops, picnic areas, or even some form of food service.  Do you also sell pre-picked produce as an added convenience if children tire before the family has gotten its fill of fruit?

Every farm is a bit different. Some have more relaxed rules, others are more strict. Customers need to find a farm that matches their needs - a farm with strict rules would not make for a happy experience with adventurous, young children. It is best to note and post all rules and regulations at your picking locations.

Read a detailed story on an Ohio farm’s P-Y-O experience. 

It will soon be pumpkin season, what a great way for kids to enjoy
the outdoors and a fun farm experience!

Below are a few common expectations at a P-Y-O farm that you may want to include in your list of rules:

• Look for the check-in and check-out areas. Before picking, note whether you will be charged according to weight, volume or count. Also, inquire if there is a minimum quantity requirement.
• Place trash in proper receptacles or take it with you;
• Stay clear of parked or moving tractors and equipment;
• Health codes usually require no pets in the fields.
• Always call in advance to find out if the fruit/vegetables you want are available, to get directions, check their opening and closing hours and to ask if children are welcome.
• Walk in the rows, don't step on plants! 

Keeping the fruit cool is a good run of thumb.  Check with your local Extension office for storage tips and provide some fact sheets to your customers. Be certain to plan ahead if you intend to market supplies to folks that plan to freeze, can, or make jam from some of their harvest. The risks of inviting strangers onto your farm and letting them roam about can be a challenge to control. However, with the growing popularity of pick-your-own farm experiences it may be worth your time and trouble to experiment a bit and see if this method of direct farm marketing is for you. For additional information on a great you-pick farm experience check http://www.pickyourown.org/.

 

An experienced and successful P-Y-O farm operator told me the secret to success in this business is to “Develop a sound pricing strategy, have plenty of signs and remember to be flexible and patient with the public as they patronize your operation. Sometimes the results of their harvesting may result in damage to your trees and plants.”

Educating Consumers and Employees on New Meat Names

The National Pork Board and Beef Checkoff Program recently announced new names for some of their meat products in an effort to help customers find and prepare beef and pork.  As you can see by the graphics below, some of the names have changed significantly (for example, pork loin rib chop to ribeye chop and beef chuck eye edge pot roast, boneless to Denver roast).  

Figure 1.  Pork loin name changes. 

Figure 2.  Beef chuck name changes.

Figure 3.  Beef sirloin name changes.

All graphics from USAtoday.com

The new names are meant to help bring clarity to the many different cuts available, but how will this affect you, the business owner?  Both employees and consumers will need to be educated on the new names.  Simply labeling meat with the new name will not be sufficient in identifying these changes.  Graphics (like those above) that show what part of the animal each piece of meat comes from should help as well as listing the old name versus the new.  Employees will also need to be trained in distinguishing the new names and then also passing the knowledge onto the customer.  As an ag business owner, you will probably want your employees to spend more time with customers to identify what kind of meal they want to prepare and what cut would work best.  Read more about the new names at USAtoday.com.

Obviously, this is going to require more work for you, but it may also open up an opportunity to connect with customers.  Talking directly to customers as they enter the meat department is an obvious opportunity, but you can also hold classes, provide samples, and recipes.  

As an ag business owner, how do you feel about these new names?  Do you think customers will embrace the change?  Do you envision an increase or decrease in sales?  How are you planning to educate customers?

As a customer, did you find the old names to be confusing?  Will these new names help you to better chose the most appropriate meat for your recipes?  Do you think you will buy more or less beef and pork because of this?

Farm Marketing: Aspects of Direct-to-Consumer Marketing

by John Berry, Extension Educator, Lehigh County

Direct-to-consumer farm marketing enjoys a special space in east coast agriculture.  Not only do we have some of the best land and productive farmers in our midst - we have millions of hungry consumers surrounding our farms.  These ready consumers not only seek farm products, foods and knowledge - they seek a connection to farm experiences.

One of the areas of retail farm marketing and agri-tourism of particular interest for enhanced professional development to many direct-to-consumer farm marketers centers on merchandising concepts.

Merchandising - pricing, product packaging, market facility and fixtures - sums up all the means you can use to sell your product, and encourages the customer to buy as much as possible.

Attractive signage can entice customers to purchase

Signs - product description, consumer awareness and general written communications - are one key element of merchandising.  Signage is your major means of communication with customers.  What you say is important to the customer in choosing what to buy, or whether to buy, so make sure the information on the sign is complete and accurate.  Always make sure your signs are clean and neat - a worn out sign will undo all the effects of an otherwise perfect display.

When you have the room, don't assume that every customer knows everything about even the most basic item.  Don't be afraid to add information like "Best Apple Pie" or "Best Baked Potato."  In any case, all products which are new, unusual, or seasonal, should be adequately signed.

Signs can also be used to promote items that are especially good buys, or tie-ins with other items in your or another department.  Signs can also emphasize nutritional information on particular items.   Signs are provided by many suppliers, trade associations, and organizations like the American Cancer Society.  Use these to best advantage, but don't rely solely on them to do the job.  Good signage can increase your sales, so use your imagination and create your own "best sellers."

Display techniques - what is being done to show farm products in their best light and encourage purchasing - are another key element of merchandising.  Your market layout may be parallel counters with displays in between, or a lateral maze with counters extending into the center.  You may even have chosen a boutique style layout, with displays in clusters.

Jams are displayed using a cluster, boutique style, layout.

Whichever layout you've chosen, the main feature of its design is to control the movement of your customers so they spend the maximum amount of time in your department, and are exposed to all your products.

The manner in which you display your merchandise within this framework can enhance their captivating environment and maximize your sales opportunities.  It would be defeating your purpose, for example, to put all your basic, staple items in one area, when a customer might make his most urgent purchases and then leave your department without seeing what else you have to offer.  To eliminate this problem, scatter your high-demand "power" items throughout your department, next to impulse items.

To further the education of those active in retail farm marketing and agri-tourism (market owners, managers, other personnel, etc.), Penn State Extension is offering a two-day bus tour of twelve premiere farm markets in northern New Jersey and Connecticut with plenty of ideas, education, food and fun for all.

We have something for everyone - seasonal, year-round, produce, food, tourism, value-added, pick-your-own, entertainment and educational farm direct-to-consumer marketing at its finest!  Not to mention the "classroom-on-wheels" as we travel between markets with opportunities to network and learn from each other.

Tour information, details, and registration is available here. 

Pricing Power for Direct Marketers

by John Berry, Extension Educator, Lehigh Co.

Agricultural marketing activities account for over 17% of the nation's gross national product.  Additionally, roughly eighty cents of every consumer food dollar goes to cover marketing expenses.  Clearly, performing some marketing chores are a possible source of increased revenue for food producers.

Is $1.00/lb the "right" price?  Well, it depends...

However, when we take on the chores of marketing many challenges must be expected. Academics tell us marketing consists of product, promotions, placement, and pricing.  One aspect of marketing that generates many questions is the function of pricing.  "What should I be pricing my melons at?" is heard on many visits to local farm markets.  This leads me to suggest that prices and pricing must be a well thought through piece of your overall marketing plan.

I firmly believe cost of production is the basis of calculating price.  If our price does not at least cover our cost of production we are not even trying to break even.  My mantra is "I can sit on the porch all day and be broke. I don't need to work and be broke."  As an integral part of the marketing plan, price must be flexible enough to meet the competition and adjustable to changing situations.  Having a clear idea of your marketing objectives and the target market for your products makes selection of a "proper price" easier.

Is the Point Profit?

As we get comfortable with setting and adjusting our retail prices, we can start to consider if we are trying to maximize total profits, or the profit per unit.  Are you willing to take a lower price if you could sell more units?  The following table gives you a picture of this "game."  The first row states that if your margin is 10% and you reduce your price 5%, it will take an increased sales volume of 100% to meet your planned revenue goals.

Current				Required %
% Profit		% Price		Increase in
Margin		Reduction		Sales Volume
10		5		100
15		5		50
15		10		200
20		5		33
20		10		100
25		5		25
25		10		67

An effective pricing strategy reflects four factors:

• Your cost for each product.  Retail price needs to cover the cost of the good itself and ideally include a profit in addition.
• Possible sales response to price change.  Many consumers are aware of the going market price.  We do need to understand how our most significant buyers might respond to price adjustments.
• Costs and prices of the competition.  If my cost of production and thus price, is higher than my real competition's selling price; why would customers buy from me? This is where we start to talk about "value" and not price.
• Probable responses from the competition to what you do.  Many successful businesses pay attention to competition.  How might the alternative sources of your products respond to your prices and any price adjustments?

Proper pricing is essential to long-run business success, and pricing is as much a marketing concern as an accounting one.  Additionally, pricing strategies can be a measure of management effectiveness.  Ultimately, as we develop effective pricing strategies we harness the power of retail farm marketing.  We are able to more easily reach our enterprises' marketing and financial goals.