The organic produce industry has been growing rapidly over the last ten years but is faced with many issues. To begin with, the production rate of organic produce cannot match the current demand of consumers. The process of growing organic produce is much more difficult and time consuming compared to growing regular produce. It is much harder for farmers to consistently grow quality crops and please consumers, consequently leaving a gap in the supply rate. Furthermore, because the organic farming industry is relatively new, consumers are finding it difficult to locate a reliable supply year-round near their homes. Suppliers find it difficult to sell through several distribution channels while staying profitable, which limits the amount of quality product available. In addition, the production and marketing of organic foods are subject to federal regulation. Organic production is designed in legal terms and use of the term organic is controlled (Bachmann). The strict regulations make the organic farming industry difficult to enter, but the high demand and low supply make the industry appealing to suppliers.
Consumers of all ages and sizes are becoming increasingly concerned with the environment and the quality of food they put into their bodies. More than ever, consumers are taking the time to purchase foods that are not only good for their bodies, but good for the environment. This makes the target market for organic farmers very broad. Organic produce provides many benefits that regular produce does not by eliminating harmful pesticides commonly used during growth. Numerous studies show that pesticides can adversely affect the nervous system, increase the risk of cancer, and decrease fertility (Greene). A huge advantage of buying organic goods is that it promotes a less toxic environment for all living things and not just the current consumer. People tend to respond more to a cause that benefits others, but many of the unique benefits organic food offers are still unknown by the general population. Consumers understand that organic is better for you but they don’t realize how harmful regular produce can be on one’s body. Awareness of long-term benefits of organic goods is an important variable in the success of this industry. The objective of our marketing plan is to promote benefits of organic produce and to establish a stable network by building long-term relationships with consumers using direct marketing methods.
Different methods can be used to reach your target consumer. Direct marketing strategies allow farmers to maximize their profits by selling directly to consumers and bypassing wholesalers and other middlemen. New businesses with little space, money, and time should consider this method. While direct marketing strategies require the supplier to form a network of trusted colleagues and consumers, these relationships will be a crucial variable to the success and expansion of your business. When comparing markets it is important to compare costs as well as returns. Direct marketing methods allow the supplier to charge premium prices but will result in an increase in labor marketing costs. Tailgate markets, farmers’ markets, roadside and on-farm stands, pick-your-own operations, and subscription marketing are common direct marketing strategies. Sales to restaurants, institutions and schools and grocery stores are common wholesale marketing strategies (Bachmann). Once farmers find themselves established, many choose to utilize several distribution outlets. This allows the supplier more power if one outlet is not performing as well as the other and establishes a more stable environment therefore increasing the longevity of the business. Direct marketing strategies enable the supplier to enter the industry with little commitment and form a strong network to expand business in the future.
