Inlet Isles Medical Center

Marketing Plan: Farmers Market

Prepared by:
Stephanie Heinlein

November 21, 2016

TABLE OF CONTENTS
1.0 Executive Summary ........................................................................................................... 1
1.1 Introduction ..................................................................................................................... 1
2.0 Marketing Plan ................................................................................................................... 2
2.1 Objectives ....................................................................................................................... 2
2.2 Market Analysis .............................................................................................................. 2
2.3 Market Segmentation ...................................................................................................... 2
2.4 Situational Analysis ........................................................................................................ 3
2.5 Competition..................................................................................................................... 4
2.6 Market Strategy............................................................................................................... 4
3.0 Projected Outlook .............................................................................................................. 6
4.0 Appendix ............................................................................................................................ 7

1.0 Executive Summary

Inlet Isles hospital is a 32-year old hospital located in the city of North Miami Beach in the
state of Florida. The hospital is a general medical and surgery hospital with services
including dialysis, neuropsychiatry, and foodservice. The hospital primarily offers service to
older (average of 72 years old) Jewish patients. Patient occupancy is at full capacity during
the winter, yet can drop to half capacity during the summer. The Food and Nutrition Services
department has mission goals of providing appealing meals in a comfortable and agreeable
environment. Currently, the cafeteria experiences crowded conditions during peak service
hours. Average meal count is 175 for breakfast, 650 for lunch, and 350 for dinner. During
peak hours the customer line runs long into the outside causeway, supplies run low, seating is
scarce. How can we improve meal service times at the cafeteria? How can we improve the
community image of the hospital and attract more patients? How can we attract younger
patients? We can host a weekly year-round farmers market.
Using a farmers market, we aim to increase the Food and Nutrition Services department
total revenue by $55,000 within 12 months, $60,000 within 24 months, and $65,000 within
36 months. We can break even within the first year by surpassing $18,071.
1.1 Introduction
Farmers markets promote a unique opportunity to connect to the community, offer the
community access to fresh produce and treat diet related illnesses. Since 1994, the number of
farmers markets in the country has increased from an estimated 1,700 to more than 8,000 by
2013. As the popularity of farmers markets has increased throughout the country, many
healthcare facilities have incorporated farmers markets. Kaiser Permanente, a large
nationwide healthcare provider, has opened more than 3 dozen farmers markets at its
facilities throughout the nation. Currently there are at least 170 farmers markets in the state
of Florida, with only two hospitals statewide providing farmers markets. Inlet Isles can be
one of the only hospitals to host a farmers market in the state of Florida, and uphold the
mission of the Food and Nutrition Services department.
The vision and mission of the Food and Nutrition Services (FNS) department:

Vision Statement: To develop innovative methods of increasing nutritional awareness,

empower our patients to make informed diet decisions, and fully integrate our nutrition
department into patient care to provide our patients with longer and healthier lives.
Mission Statement: Provide team-based clinical nutritional care to patients with the
upmost compassion, and provide high-quality, nutritious, and affordable food to our
customers in an enjoyable dining atmosphere.

2.0 Marketing Plan

2.1 Objectives
This proposal aims to host a farmers market for the populations in North Miami Beach. The
objectives are:
Increase FNS yearly revenue by 3.6% from $648,600 to $672,100.
Increase visitor FNS service by 5% within 12 months.
Increase employee FNS service by 5% so that employees do not purchase food from
outside sources within 12 months.
Achieve an average total meal count of 150 per day at the farmers market booth within
12 months.
2.2 Market Analysis:
Inlet Isles hospital is located in the city of North Miami Beach, Florida. The population
of North Miami Beach according to the 2010 United States Census is 41,523. According
to the 2010 census, 4,679 individuals were over the age of 65, and 11,226 were between
the ages of 45 and 65.
Chart: Market

North Miami Beach 2010 US Census

Demographics
65+ years
11%
45-65 years
27%

19 years and
below
27%
20-44 years old
35%

2.3 Market Segmentation:

The management team has identified adults over the age of 44 as the primary target
market. Over the last few years, the average age of the typical patient admitted to Inlet
Isles has been 72 years. The traditional target population of adults over the age of 65 is
only composed of 10.8% of the total estimated 2016 population. Adults between the ages
of 45 and 65 composed of 25.9% of the total estimated 2016 population can dramatically
add to the existing targeted audience. Population increased 5.9% in the 5 years between

2010 and 2015. Moreover, the population of the city is expected to increase at least
another 5% between 2015 and 2020. By 2020, the targeted audience (adults 45 and over)
is estimated at 17,000 and 36.8% of the total population. The families of adults 45 years
and older is a secondary target market. This group of individuals usually accompanies the
primary target audience to events, such as farmers markets.
The Bureau of Labor Statistics (BLS) found in a 2014-2015 study that the average person
in Miami spent $6,755 on all food purchases and $2,643 on food away from home. This
finding on consumer spending is similar to the national average of $2,787. This suggests
that most consumers in the Miami area will be equally likely to participate and buy from
a farmers market in Miami, as well as any other place in the country. Additionally, the
BLS found the following food away from home expenditures based on age: $3,206 (ages
45-54); $2,479 (ages 55-64); $2,292 (ages 65-74); $1,319 (ages 75 and older).
Table: Target Market Research Analysis
Market Analysis
Potential
Customers
Seniors (65+)
Adults (45-65)
Total

5 year
Growth
5%
5%

2016

2017

2018

2019

2020

4,811
11,542
16,353

4,858
11,656
16,514

4,906
11,771
16,677

4,953
11,845
16,798

5,001
11,999
17,000

2.4 Situational Analysis:

SWOT
1. Strengths
Increase revenue without greatly increasing expenditures.
Increase community image of Inlet Isle Medical Center.
Provide community with access to nutrient dense produce.
Promote health and nutrition through healthy food choices.
No local competition.
2. Opportunities
Add a new service to the medical center.
Increased patient and visitor satisfaction.
Growing demand for farmers markets.
Decrease the burden of the cafeteria of providing service during peak
hours.
Increase employee consumption of meals provided at the hospital.
Increase patient numbers.
3. Weaknesses
Advertising/marketing deficiencies
Increased expenses (staffing, food, supplies)

Difficulties finding vendors to participate

Changing consumer taste

Insurance coverage changes
Adverse local government policies
Adverse changes in demographics
New competitors

4. Threats

2.5 Competition
There is no direct competition in regards to farmers markets in the city. By hosting a
farmers market at Inlet Isles, the hospital will be hosting the only farmers market in the
city of North Miami Beach. Presently, only 2 farmers markets are offered at hospitals in
Florida. Florida Hospital Memorial Medical Center in Daytona Beach, and Memorial
Hospital Miramar in Miramar both host farmers markets. There are a dozen farmers
markets in the greater Miami area. These include: Pinecrest Green Gardens Market,
Miami Springs Farmers Market, Coconut Grove Farmers Market, Lincoln Road
Farmers Market, Upper Eastside Farmers Market. In the city of North Miami Beach
there are two other hospitals, Mount Sinai Medical Center, and Aventura Hospital and
Medical Center. Though these two hospitals currently do not host farmers markets, it is
possible they might in the future.
2.6 Marketing Strategy:
Marketing Mix:
Product: Weekly (Saturdays) year-round farmers market. There are 50 10X10 spaces
available to local farmers and producers. Southern Floridas climate allows the farmers
market to run throughout the year. This is the only farmers market open in the city of
North Miami Beach. Additionally, the Food and Nutrition Services department can use 1
space to set up hot/cold-holding stations. This can help to increase FNS revenue, increase
employees use of FNS, and decrease lunch waiting times in the cafeteria.
Place: Inlet Isles Medical Center parking lot E. This parking lot is beside a large field
where staff can set up tables and chairs. Additionally, the field offers young children
(secondary target market) the chance to stay near the farmers market, play. Moreover,
this can lead the primary and secondary target market to continue purchasing at the
farmers market.
Price: $480 per year, or $20 per day. Vendors can apply to reserve a 10X10 spot by
filling out an application. If vendors choose to reserve a spot for the year, vendors costs
are greatly discounted. The rate for single day spots is double the rate for year-long spots.
Promotion: Inlet Isles Medical Center can several opportunities for promotion. Internal
promotion to employees and patients is an effective method. Employees can participate in
the farmers market during lunchtime breaks along with other visitors to the hospital.

Employees can also tell friends and family about the weekly farmers market.
Additionally, giving patients and their family coupons will be beneficial. The use of
coupons, such as $1 dollar off, can help to promote this weekly event and create repeat
visitors. The FNS department also has a budget of $3,100 for the print shop. A
reallocation of this budgeted amount can be used to create small signs, and banners
advertising this weekly event.
Milestones: Proposed Budget and Timeline
We have established several aspiring goals for the farmers market. These goals are
clearly defined, measureable, achievable, and time-oriented. Each milestone in the table
below shows the important administrative, marketing, and implementation goals. By
following these milestones we can ensure our objectives are achieved.
Table: Milestones
Milestones
Milestone
City permit application
Meet local farmers/producers
50% reservations capacity
Buy tent equipment
Buy tables and chairs
Complete signs and banners
Install signs/banners/ads
Hire server and cashier
Farmers market opening day
Food booth meal count 50/day
Food booth meal count 200/day
Meet local farmers/producers
80% booth reservations
Totals

Start
Date
1/1/2017
1/1/2017
1/1/2017
1/1/2017
1/1/2017
1/1/2017
1/1/2017
3/1/2017
3/1/2017
3/1/2017
1/1/2017

End Date

Budget

Manager

Department

2/1/2017

$0

Alicia

FNS Dept

Alicia

FNS Dept

Alicia
Alicia
Alicia
Alicia
Alicia
Alicia
Alicia
Alicia
Alicia

FNS Dept
FNS Dept
FNS Dept
FNS Dept
FNS Dept
FNS Dept
FNS Dept
FNS Dept
FNS Dept

2/1/2017

$0

3/1/2017
3/1/2017
2/1/2017
3/1/2017
3/1/2017
3/1/2017
3/1/2017
3/1/2018

$1,500
$2,000
$500
$0
$5,000
$0
$0
$0

3/1/2018

$0
$9,000

Yearly Budget
Revenues
Cash
Booth reservations
Booth food sales
Total Revenue

25,000 (45.5%)
30,000 (54.5%)
55,000 (100%)

Expenses
Food
Labor

20,000 (80.0%)
5,000 (20.0%)

Tents/Tables/Chairs
Cleaning supplies
Paper supplies
Uniforms
Print/Advertising
Total Expenses

2,500
1,400
2,000
100
500
31,500

3.0 Projected Outlook

Profit & Loss Statement

Year
Income

Year 1

Year 2

Year 3

Total Sales
Less Total Disc/Comm
Total Net Income
Less Total Cost of Goods Sold
Gross Profit
Expenses
General & Administrative
Marketing & Promotional
Operating Expenses
Total Employment Expenses
Total Expenses
Yearly Net Profit / (Loss)

55,000
0
55,000
20,000
35,000

60,000
0
60,000
22,000
38,000

65,000
0
65,000
25,000
40,000

5,000
500
1,000
5,000
11,500
23,500

6,000
500
1,000
5,000
12,500
25,500

7,000
500
1,000
5,000
13,500
26,500

Gross Margin
(Gross Profit / Net Income)
Net Margin
(Net Profit / Net Income)

0.636

0.633

0.615

0.427

0.425

0.407

Mark Up
((Net Income Less Cost of Goods
Sold) / (Cost of Goods Sold)) x 100

1.75

1.727

1.6

Break Even
( Expenses/((1-(Cost of Goods
Sold/ Net Income))

18071.42

19736.84

21937.5

Profit and Loss Ratios

4.0 Appendix
References:
Farmers Markets and CSAs on Hospital Grounds. Healthcare Without Harm Web Site.
https://noharm.org/sites/default/files/lib/downloads/food/Farmers_Markets_CSAs_Hosp.pdf.
Accessed November 5, 2016.
Quickfacts North Miami Beach, Florida. United States Census Bureau Web Site.
http://www.census.gov/quickfacts/table/PST045215/1249475. Accessed November 1, 2016.
Table 3023. Selected southern metropolitan statistical areas: Average annual expenditures and
characteristics, Consumer Expenditure Survey, 2014-2015. Bureau of Labor Statistics Web Site.
http://www.bls.gov/cex/2015/msas/south.pdf . Accessed November 5, 2016.
2013 Consumer Expenditure Survey. Bureau of Labor Statistics Web Site.
http://stats.bls.gov/opub/btn/volume-4/consumer-expenditures-vary-by-age.htm. Accessed
November 5, 2016.