By: Jen Layton – Owner of Layton’s Chance Vineyard & Winery
It is certainly no secret that agricultural farming operations have had to diversify in order to survive. For many farmers this means going from having a few business-to-business customers to now having a retail business with many customers. We continually see farms with their own markets and agri-tourism adventures. When most farmers diversify they do not get rid of their previous operation; they in fact are adding another. These new businesses often have a learning curve of a right angle. In traditional farming, products have been sold to a few companies. Now with diversification many are having to produce customers every day at their establishment. It is an ongoing battle for farmers realizing that just because you build it does not mean they will come. For generations farmers have focused on running their operation efficiently and properly. Thinking about who your customer is and what they like to do has never been part of agricultural operations in the past. However, it is essential for farmers to figure that out.
So here are a few behind the scenes, essential steps to build a solid base for a new enterprise in an end consumer based market.
Determine what you are selling
In today’s world it is not the actual product that you are selling but the benefits of that product. You need to figure out how your product provides value to the customer. Value is absolutely essential when diversifying an agricultural enterprise because being the cheapest or the lowest cost is not a game that farmers or any local business can ever win. Other forms of value are convenience, prestige, healthier or most fun. This value comes from the benefits of your product. People do not buy organic food because it is organic, they buy it because they believe it will give them health and longevity. How do you want the customer to feel when they buy your product? What is the image you want to project?
Determine who your customers are
In this step you need to craft a picture of what your customer looks like. Most people when starting a new business see hundreds of ways that all types of people could be their customer. This is dangerous and can be detrimental to a new business. If you are trying to be everything to everyone you will end up be nothing to anyone. You need to refine who your target customer is and begin with that niche. Where do they live? Are they male or female? How old are they? What is their education level? What is their marital status? There are many other statistics that can help you refine your picture of target customers.
Determine what do your customers like to do
Once you know who your customer is you need to figure out what are their interests, activities
and attitudes. What do they like to do? Where they like to hang out? What causes do they support? Where do they get your information? Also you need to look at how they behave. Are they an impulse buyer or do they need to analyze their purchase? How much will they use your product? These types of characteristics not only help you determine how to reach your customer but also how to keep them engaged.
Once you armed with this information and you have a budget set for marketing you can determine what message you want to put out and what media outlets are right for you. When meeting with any advertising salesperson they need to be able to tell you who reads/views/listens to their product. If it is not a match for your target customer, do not buy! If you do not have much in the way of a marketing budget look at your customer’s interests to see if there are events in the area that you can attend or consider having an event at your own facility.
In the end, laying this ground work ahead of time makes it much easier to make decisions and ensure that you stay on course. Once you go through the initial process you should review and revise as necessary because marketing and consumer behavior are continuously evolving.
