Download Marketing Strategy of MG's Salad Field Greens: A Case Study and more Slides Marketing in PDF only on Docsity!
Sandra Cuellar-Healey, MFS, MA & Miguel Gomez, PhD
Charles H. Dyson School of Applied Economics & Management College of Agriculture and Life Sciences, Cornell University, Ithaca NY 14853- EB 2013-04i --- June 2013
Adapted from Agriculture Produce Farm Marketing Plan, Mixed Green Salad Greens: http://www.mplans.com/agriculture_produce_farm_marketing_plan/executive_summary_fc.php Accessed March 2013
Complete Marketing Modules Series available at: http://hortmgt.gomez.dyson.cornell.edu/Marketing-Modules.html
Marketing Modules Series
Marketing Module 3: Company Analysis Example
- Start-up business
- Offers a wide range of high-quality salad field
greens including red leaf, arugula, radicchio, mustard greens, endive and chicory
- MG’s mission is to provide the highest quality salad
field greens
- MG’s products have been well received and
marketing is critical to its continued success and future profitability
Individual consumers:
Who have a more sophisticated palate and appreciate healthier,
tastier alternatives to the common lettuce options. They
appreciate fine dining, and generally are from a higher socio-
economic class. They have access to MG’s products at the firm’s
booth in the Farmers’ Market.
Restaurants:
Generally fine dining restaurants and more specifically
“nouveau cuisine” restaurants. Typically year-round customers
who get a better price but have long-term contracts with MG.
Product is delivered to restaurants.
The increase in supply has reinforced demand within the last years:
many farms that were producing staple vegetables have moved to
production of salad field greens due to increasing demand and higher
margins
Sales for this specific type of produce is forecasted to grow at 8%/yr,
much more than any other agricultural product
- Demand :
- Taste and health consciousness are driving the demand for these
products
- Americans have become more health conscious and salad field greens support this goal as they are not only inherently healthy but tastier than the traditional options (romaine and iceberg lettuce)
- Americans are learning to appreciate the more sophisticated taste of this health food. Presentation as an element of the culinary experience has taken more value as chefs have become more creative over the last years. It is becoming a variable in gauging the quality of a meal, and a mix of salad field greens is aesthetically pleasing
Strengths
- Flexibility to meet restaurant needs
- High-quality product offerings that exceed competitors’ offerings on price, quality and service
- Higher than industry margins due to production efficiencies
Weaknesses
- MG lacks brand equity
- Limited marketing budget to develop brand awareness
- Decreased degree of flexibility when near full production
Opportunities
- Growing market with a significant percentage of the target market still not aware of MG’s existence
- Ability to develop long-term commercial contracts which should lower production costs
Threats
- Out-of-state, already-established competitor that makes customer service and flexibility its selling point
- Food safety scares that question safety of field salad greens
- Poor weather which will lower yields
Marketing Objectives:
- Maintain positive, steady growth each month
- Increase number of new customers who will become long-term customers
- Generate brand equity at the Farmers Market as well as within the restaurant industry market
Financial Objectives:
- Realize a 3% increase in gross profit margins every year
The single most important objective is to position MG as the finest producer of salad greens in its marketing area,
commanding a majority of the market share within five years
with the following marketing and financial objectives:
- Create customer awareness regarding services offered,
develop the customer base, and work toward building customer loyalty:
- Increase number of transactions per client
- Increase number of restaurant accounts
- Generate repeat business
- Communicate the message that MG is the finest grower of
high-end salad field greens to its target markets:
- Place advertisements either solely for MG or co-branding with the
Farmers’ Market in both the local newspaper as well as the
art/entertainment paper
- Communicate the message to restaurants through networking
with owners and managers
Financial Projections
FY 2007 FY 2008 FY 2009
Sales Forecast
Individual Consumers $19,944 $38,899 $51,
Restaurants $51,428 $72,545 $78,
Total Sales $71,372 $111,444 $130,
Direct Costs of Sales
Individual Consumers $2,393 $4,668 $6,
Restaurants $6,171 $8,705 $9,
Subtotal Direct Costs of Sales $8,564 $13,373 $15,
Marketing Expense Budget
Advertising $1,100 $1,100 $1,
Other $1,050 $1,050 $1,
Total Sales & Marketing Expenses
Marketing Budget % of Sales 3.01% 1.93% 1.54%
