Marketing Plan

 Marketing plans typically include:

 Market/buyer description
 Product description
 Competition overview
 Pricing strategy
 Promotion strategy
 Distribution strategy
 Inventory and storage strategy
 Risks and resources

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
Business Plan software can be used to
develop a marketing plan for:
Traditional, bulk commodities
Specialty commodities and value-added
products

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
 Business Plan software asks questions
and offers tips about:
 Current markets
 Potential new markets
 Pricing strategy
 Promotion and distribution strategy
 Storage and quality control
 Resources – suppliers, contractors,
competitors

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
If marketing traditional commodities,
software such as Marketeer can help with
forward contracting strategies.

Marketeer can be imported into the

Business Plan Software.

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
The Business Planning Guidebook can
be used by anyone but worksheets
are geared toward managers
interested in:
Specialty commodities
Value-added products
Services
Alternative distribution

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
 Specialty commodity examples:
Varieties – blue corn, high oil
Non-GMO
Organic
Agraceuticals

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
Value-added product/service
examples:
Processed -- meat, dairy
IP grain drying and storage
B&B
Hunting preserve

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
Alternative distribution examples:
Wholesale
Retail
Direct where buyers include individuals,
restaurants, and institutions

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
 Business Planning Guidebook asks questions
about:
 Current markets (Worksheet 2.2)
 Buyer preferences (Worksheet 4.1)
 Projected sales volume (Worksheet 4.2)
 Product uniqueness (Worksheet 4.3)
 Competition (Worksheet 4.4)

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
More Guidebook questions about:
Distribution (Worksheet 4.5)
Pricing (Worksheet 4.6)
Promotion (Worksheet 4.7)
Inventory and storage (Worksheet
4.8)

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
 The questions you answer and resources you
use will depend on whether the strategy is to
market:
 New specialty commodities to current buyers
 New products or services to current buyers
 Current commodities to new distributors/buyers
 New commodities/products to new distributors/buyers

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Strategy

Some of the easier strategy

questions to answer:
How to price product
How to promote product
How to store and transport product

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Strategy

Harder strategy questions to

answer:
 How much buyers will purchase
 How your competition will respond
 How prices may change in long-run
 How regulations may change

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
Characteristics of Specialty
Commodity Markets

Not fluid
Immature markets; volatility
Lack of transparency and resources

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Strategy

Marketing strategies typically fall apart when:

Sales don’t materialize
New competition enters market
Buyer preferences change
Strategy unrealistic from the start

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Strategy

What can you do to help business managers

develop realistic marketing strategies?
• Ask the hard questions
• Share examples
• Identify resources

opyright © 2003 Center for Farm Financial Management, University of Minnesota

 Marketing Plan
 Encourage managers to do their homework:
 Contact potential buyers
 Ask questions
 Review contracts
 Be realistic, honest about sales potential
 Observe and learn about competitors
 Get outside opinion

opyright © 2003 Center for Farm Financial Management, University of Minnesota