Marketing Strategy

Focusing on the unique aspects of the product theme (healthy, fresh vegetables)
a mix of marketing vehicles will be created to convey
our presence, our image, and our message.​
Print Media

Print Media

local newspapers and magazines publications

Broadcast

Broadcast Media

local programming and special interest shows 

Social_Media
06-1.png

Social Media

Website, Facebook, Instagram, Twitter, etc.

Marketing Cooperatives

  • Growers in a region who produce similar types of vegetables or use similar growing practices, such as organic, may consider coming together to form a cooperative.
  • A cooperative is a business organization owned by grower-members.
  • Cooperative ventures can be organized as partnerships, corporations, cooperatives or limited liability companies.
  • Most wholesale market outlets desire a consistent quality and quantity of produce.
  • Cooperative marketing can offer many benefits to growers.
  • Using a cooperative, growers are able to label and differentiate their produce.
  • With a diligent market manager and a larger volume of produce, each grower-member spends less time marketing relative to producing the crop. The cooperative can purchase input items, such as fertilizer or seed, in bulk quantities, resulting in significant price reductions.
  • Depending on its size, a cooperative can have significant capital requirements, such as packing equipment, freezing units and coolers.
  • A marketing agreement among members that specifies the type and volume of vegetables sold by each member must be implemented.
  • Quality control is essential, and the cooperative must enforce grading and packing requirements.
  • These include specializing in vegetable crops best suited to their soil type, labor availability and management skills; marketing a larger volume of production, which reduces the marketing costs per product and allows access to new markets, such as wholesale distributors; complementing their own skills and abilities with other necessary production, grading and marketing skills; and spreading investment costs in equipment and facilities among a larger number of producers.
  • The cooperative structure enables growers to sequence their planting to maintain a steady supply of produce for each market.
  • The cooperative can aid in harvesting, processing, cooling or freezing, packaging, labelling and transporting the produce to market. Growers market a specific quantity of produce through the cooperative relative to the amount of capital they have invested. The cooperative has a market manager who coordinates production of the cooperative and seeks new markets for the cooperative.
  • Labor and equipment for planting and harvesting can be pooled and shared among members of the cooperative.
  • For the cooperative to succeed, growers must work together and put aside self-interest.
  • Some cooperatives do not take possession of members’ produce but serve only to connect members with buyers.
  • Growers should use the cooperative as the dominant marketing outlet for their vegetables.
  • Fixed costs, commonly called overhead costs, are costs that do not change regardless of the level of production. Land rent, property taxes and depreciation are common fixed costs.
  • Variable costs are input costs that vary with each production season and type of vegetable. Seed, fertilizer, boxes, fuel and labor are examples of variable costs.
  • Variable and fixed costs added together are the total costs of production and can be averaged over the marketable yield to get an average total cost per pound, box or bushel.
  • Break-even price is the price for a produce item at a certain level of yield where total costs are covered.
  • This is the price floor for a grower’s vegetables.
  • Selling below this price level for a significant period of time will lower net income.
  • However, once this price level is determined, most growers establish a price margin above this level to secure a profit.
  • Because most supermarkets, institutions and restaurants contract with growers, these market outlets maintain a relatively stable price through the marketing season.
  • Wholesale produce auctions, farmers markets and roadside markets experience variable pricing based on local supply and demand.

Pricing Vegetables

  • Setting price is a critical component of successful marketing.
  • Vegetable growers have a greater level of control than most other growers over marketable yields, input costs and price.
  • The closer a grower is to the consumer, the more control over price the grower has. Buyers perceive price to represent value of the product.
  • Underpricing, or pricing too low, gives the perception that the product is inferior, while setting the price too high often drives customers away.
  • Many growers make the mistake of setting the price too low at the beginning of the marketing season when competition is less and demand is strong and then find it difficult to increase price later in the season.
  • Before setting price, gauge the level of competition and the consumer demand for your product.
  • For example, organic produce may have a stronger demand in urban areas, so prices can be set at a higher level.
  • Also, early-season produce, such as tomatoes, has high demand with little competition in most markets, resulting in a higher price range.
  • Cost-oriented pricing is the best method for setting price for vegetables. With cost-oriented pricing, the grower needs to know costs of production.
  • When growers know both the fixed and variable costs of producing their vegetables, they are able to determine the break-even price.

...
🞂
Necessary cookies enable essential site features like secure log-ins and consent preference adjustments. They do not store personal data.
None
🞂
Functional cookies support features like content sharing on social media, collecting feedback, and enabling third-party tools.
None
🞂
Analytical cookies track visitor interactions, providing insights on metrics like visitor count, bounce rate, and traffic sources.
None
🞂
Advertisement cookies deliver personalized ads based on your previous visits and analyze the effectiveness of ad campaigns.
None