But Do You Know Your Customer? -...

Rick VanVranken, Agricultural Agent

Cooperative Extension of Atlantic County

But Do You Know Your Customer?

Rick VanVrankenRutgers Cooperative Extension-Atlantic County

6260 Old Harding Hwy.Mays Landing, NJ 08330

[email protected]



Marketing your Produce?Producing for your Market?

Marketing 101



If I grow it, they will come!



#1 Rule in Marketing

❖ Give your customerswhat they want!

✓Grow the right crop✓Harvest at correct stage✓Package appropriately✓Avoid costly mistakes✓Keep the buyer happy!



Knowing Your Market – The Most Challenging Part of a Business Plan

❖ “Can you tell me how to find customers for my products?"

❖ "How much can I expect them to buy?”

“…probably the most troubling business questions that agricultural extension educators hear from small farm operators.”

Charles Schlough. 2001. Knowing Your Market – The Most Challenging Part of a Business Plan. Smart Marketing newsletter, Dept Applied Economics & Management, Cornell Univ.



Know your Market

BEFORE

you Pick a Peck of Hot Peppers



What do ‘they’ want?

Some like them hot,

some like them hotter, …Scotch bonnet/habanero

Jalapeno, Cayenne

Pablano, Anaheim

Thai



…but some like them mild!

Have you asked?









0123456789

1=

no

cra

cks

, 10

=se

vere

cra

ckin

g

Mean Fruit Checking Severity of Jalapeno Varieties on Three Harvest Dates

2-Aug

17-Aug

7-Sep

0

0.5

1

1.5

2

2.5

3

3.5

mg/ml

Total Capsaicinoids in Mature & Immature Jalapeno Pepper Cultivars

Immature

Mature



ethnicnj.com



Ethnic Greens - Past(?)



Ethnic Greens - Present(?)



Ethnic Greens - Present(?) Chinese



Ethnic Greens - Future(?)West African

❖ Jute

❖ Sweetpotato



worldcrops.orgrelaunched early 2016



Know your customersWhy?

Grow the right crop

Harvest at correct stage

Package appropriately for the consumer

Avoid costly mistakes

Keep your buyers happy!



The Food Chain from Farm to Plate

Farmer Cooperative

Retail Store/

RestaurantProcessor

Broker/Buyer/Shipper

Direct MarketFarm Market

Tailgate

CSA

Mail Order/I-net

Consumer


Cooperative Extension of Atlantic CountyUsed with permission from Roberta Cook. 2016. The Dynamic US Fresh Produce Industry.

UC Davis Postharvest Technology Short Course. Ag & Resource Econ, UC Davis.

42%

57%

<1.5%


Cooperative Extension of Atlantic CountyUsed with permission from Roberta Cook. 2016. The Dynamic US Fresh Produce Industry.

UC Davis Postharvest Technology Short Course. Ag & Resource Econ, UC Davis.



Know Your Market

❖Market channels

Retail/Direct

Wholesale

Fresh whole

Fresh cut processed

Food Service

Restaurants

Institutions

❖Market organization

WholesaleDirect – farm to store

Cooperative (Food Hub?)

(Grower)-Buyer-Shipper

Broker

Packer/Processor

RetailOn-farm store

Community Farmers’ Markets

Internet/Mail Order

CSA/Farm dinners/Agritourism



Know Your Market

❖Market tools

Analysis

Find Your Customer

Target

Draw in Your Customer

Subscription (CSA)

Clubs

Coupons

Promotional Events

Retain

Keep Your Customer

❖Market techniques

Selling

Advertising

Merchandising

Placement

Layout

Displays

Communications

Newsletters, email, social media, …



Finding your Target Market How?

❖ Primary Research— just ASK! In-person Surveys Coupons

❖ Visit the community Markets Trade shows Events

❖ Read about them and what they read Trade publications Food & Gardening magazines TV & Radio

❖ Secondary Research

US Census

National MarketMaker Find farmers markets,

wholesalers & retailers

Pay for a market analysis? Private Extension County or Municipal

Planning/Economic Development office

Better Business Bureau



Ask What?

❖ Consumers How much do they normally

buy?

How frequently do they shop?

Do they prefer or only buy local, organic, IPM?

Will they pay a premium for local, organic, IPM and how much?

Where do they shop now?

Do they prefer to visit a farm, a community farmers’ market, a retail market, or have it delivered?

How far are they willing to drive to a farm?

What else would entice them to buy your product?

❖ Wholesale buyers How much volume they would

use?

When would they want it

Are particular varieties preferred?

At what stage should it be harvested?

What type of packaging would be required?

What price range would they expect to pay?

Will they pay a premium for local, organic, IPM and how much?



Distribution of East Coast Ethnic Populations

Percentage by State

Source: US Census 2000

NY

NY

NY

NJ

PA

NY

NJ

NJ

NJ

PA

PA

MD

MD MA

MA

MA CT

VA

NC GA

FL

FL

FL

0% 20% 40% 60% 80% 100%

Chinese

884748 48%

Asian Indian

812576 106%

Mexican

1549761 53%

Puerto Rican

2718495 25%

Eth

nic

Gro

up,

Siz

e &

% G

row

th 1

990 t

o 2

000

% of Total East Coast Ethnic Population in each State

NY

NJ

PA

DE

MD

DC

ME

NH

VT

MA

RI

CT

VA

NC

SC

GA

FL

Distribution of the Northeast’s Ethnic Populations Based on Richard VanVranken/Food Policy Institute, Rutgers University

MD

MD

MD

MD

MD

MD

MD

MD

MD

MA

MA

MA

MA

MA

MA

MA

MA

MA

NJ

NJ

NJ

NJ

NJ

NJ

NJ

NJ

NJ

NY

NY

NY

NY

NY

NY

NY

NY

NY

PA

PA

PA

PA

PA

PA

PA

PA

PA

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Asian Indian

1895452, 35%

Chinese

2106202, 29%

Filipino

640030, 27%

Japanese

163464, -5%

Korean

739428, 22%

Vietnamese

349454, 23%

Mexican

2109372, 49%

Puerto Rican

5030220, 16%

Cuban

423070, 16%

% of Total Northeast Ethnic Population in each State

Eth

nic

Gro

up

, S

ize

& %

Gro

wth

20

00

to

20

10 CT

DE

DC

ME

MD

MA

NH

NJ

NY

PA

RI

VT

WV

Data: US Census 2010 and 2000. Graph prepared by Y. Han



Census Data RevealMarket Opportunities

What kind of <fill in the

blank> should I grow?



New Census Reveal



NJ Dept of Labor



Consumer preferences

❖AsianChinese

Crucifers, Cucurbits, cilantro

Asian IndianEggplant, Cucurbits, mustard, fenugreek leaf (methi)

❖HispanicPuerto Rican

Batata, Peppers (sweet), Calabaza, cilantro

MexicanPeppers (hot), cilantro



Weekly Purchases of Ethnic Produce

by Ethnic Consumer Groups on the East CoastSource: Govindasamy et al.

Tutum

a Squ

ash

Verdola

ga (P

ursla

ne)

Mala

bar S

pinac

hPeri

llaBas

il

Chile

Cari

be (Y

ellow

Pep

per)

Amara

nth

Anahe

im P

eppe

r

Whit

e Pum

pkin

Fava

Bea

ns

Chili S

erran

o

Mint

Leav

es

Edamam

e

Chili P

oblan

o

Ridge

Gou

rd/Luff

a

Cluste

r Bea

ns

Smoo

th Lu

ffa

Snow P

eas

Ají Dulc

e Swee

t Pep

per

Bottle

Gou

rd

Fenu

greek

Leav

es

Tomati

llo

Spinac

h

Sweet p

otato

Zuch

inni

Mus

tard

Baby P

ak C

hoy

Calab

aza

Napa C

abba

ge

Chili J

alap

eno

Pak C

hoy

Pepini

llo/B

itter M

elon

Cilantro

Eggpla

nt

INDIAN

CHINESE

MEXICAN

PUERTO RICAN



Eggplants

Japanese

ThaiIndian (Brinjal)

Grown on >3400 farms, up >560 over 2007, but acreage down 17%

NJ, CA & NY leading producers

84% production worldwide from India & China

Iowa State’s Ag Marketing Resource Center Eggplant Profile (7/2014) African



NJ & Cooperatives

❖ Marketing Value-added product development

Co-op Branded produce & value-added lines

Single sales location

Post-harvest services Vacuum, Forced-air, Hydro Cooling

Refrigerated Storage

Ice Production

Promotion and Advertising

Value-added, branding products & packaging

❖ ServicesTransplant production

Financing/Banking

Production & Packaging Supplies

Buyer accommodations



Terminal Markets



Distributors



Roadside/On-farm Farm Market



Community Tailgate Farmers’ Market



Community Supported Agriculture



Find a Market



Farm Dinners/Events(Agritourism – Experiential Marketing)



Know your customers –Reach your customers

Marketing Campaign❖ Communicate = ADVERTISE

Word of Mouth Classified Ads Newspaper Ads Radio Television $$$

Post cards Newsletters Signs – on site or off Packaging and Display

Email Website Blogging (micro-blogging) Social Media

Market Analysis ❖ Ask questions

Surveys In-person Coupons

❖ Visit the community Markets Trade shows Events

❖ Read about them and what they read Trade publications Food magazines







Guerilla Marketing Down on the Farm

❖ “Matty Matarazzo, … master of using the media to gain free publicity.”-from Sell What you Sow by Eric Gibson

❖ “We can spend thousands of dollars on advertising, commercials and radio … none give us the most important reward of the press release—credibility.-from Marketing for Success by Robert

“Matty” Matarazzo

❖ GrowingProduce.com

> VanVranken



Selling “Sustainability”

❖ Economics –

“Get the economics right or you can’t take care of the environment or social issues!”

❖ Environment

Soil, water, pest control…

Organic ≠ Sustainable

…but be honest – NO GREENWASHING!

Explain IPM, etc.

Packaging – Reduce inputs, reduce waste

❖ Social – tell your story

“Mindful” Sourcing

Community involvement

Employee treatment

Experience



Selling “Sustainability”

❖ Economics –

Clever renaming/packaging increases income

Value-added products

❖ Environment

Reduce trash stream

Recycle/compost

❖ Social – tell your story

Donate to food/feeding programs

Innovative Waste Reduction



#1 Rule in Marketing?

❖The customer is always right!

Grow the right crop

Harvest at correct stage

Package appropriately for the customer/consumer

Avoid costly mistakes

Keep the buyer happy!

❖So you can build/grow it and they will come …

… and buy!

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