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Horticultural Marketing

Horticultural Marketing. Wen-fei Uva Senior Extension Associate Department of Agricultural, Resource, and Managerial Economics Cornell University October 27, 1999. Today’s Agenda:. Marketing Functions and Channels in the Horticulture Industry Trends in the Horticulture Industry

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Horticultural Marketing

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  1. Horticultural Marketing Wen-fei Uva Senior Extension Associate Department of Agricultural, Resource, and Managerial Economics Cornell University October 27, 1999

  2. Today’s Agenda: • Marketing Functions and Channels in the Horticulture Industry • Trends in the Horticulture Industry • Examples of Marketing Strategies Used by Different Sectors • Field Trip to Wegman & Iron Kettle Farm

  3. The Horticulture Industry Including Fruit, Vegetable and Ornamental Horticulture Sectors The Fastest Growing Industry in Agriculture

  4. Diversified, Exciting, and with Unlimited Opportunities

  5. What is Marketing? Marketing is a total system of business activities designed to plan, price, promote, and distributeproducts to target markets. Marketing is an exchange of a wanted product or service for a price.

  6. Major Functions in Marketing Horticultural Products • Production • Wholesale • Retail • International Marketing • Exports/Imports • Services • Harvesting, Packaging, Processing, Brokerage, Warehousing, and Transportation • Landscape Design, Installation, Maintenance

  7. Marketing Channels for the Horticulture Industry Exports Imports Shippers & Packers Retail Outlets Wholesalers & Distributors Consumers Growers Processors Institutions & Food Service Outlets Brokers Production Suppliers Service Businesses

  8. Wholesale Opportunities: • Shippers/Packers • Brokers • Wholesale Buyers • Grower Cooperatives - i.e. Ocean Spray • Retail Buyers • Supermarkets, Mass Marketers, Food Services, Farm Markets, Garden Centers, and Florists • Terminal Markets • Hunt’s Point in NYC • Auctions

  9. Retail Opportunities: • Chain Stores / Mass Marketers • Supermarkets, Wal Mart, K Mart • Independent Retail Stores • Farm Stands, Roadside Markets, Independent Grocers, Florists, Garden Centers • Pick-your-own Operations • Farmer’s Markets • Community Supported Agriculture • Mail Orders and E - Commerce

  10. Trends in Horticulture Industries • Global Sourcing and Competition • More Consumer Oriented • Differentiated Product Development • Industrialized Production • Industry Consolidations • Utilization of Information Technology • More Demand for Suppliers

  11. Successful Horticulture Enterprises Start with Good Marketing Where Are the Best Opportunities?

  12. Developing Marketing Strategies: • Objectives • Target Markets • Products • Prices • Promotion • Distribution • Competition • Skills, Preferences and Resources

  13. Marketing Strategies for Mass Marketers Targeting Retail Opportunities • Low Prices • Convenience • Longer store hours, One-stop shopping • Product Selection • Higher operation efficiency and lower costs • More Marketing Power • Special Marketing Emphasis • Organic, Value-added, Local produce • Tour: Wegman

  14. Marketing Strategies for Small Marketers Targeting Retail Opportunities • Specialty/Niche Marketing • High Quality • Value-added Products • Agri-Tourism • More Services • Owner’s Identity • Collaboration, Joint Ventures, Alliances • Tour: Iron Kettle Farm

  15. Marketing Strategies When Targeting Wholesale Opportunities • Be Competitive - Price and Service • Quick to Respond to Customer Needs • Sharing Costs and Risks of Customer • Maintain Good Relationship with the “Customer” • Know the Marketing Channel and Keep Up with Changes • Take Advantage of Information Technology • Become a Preferred Supplier

  16. Give the Customer a Reason to Do Business with You Don’t Just Satisfy the Customer; “Delight” the Customer Exceed the Expectations

  17. Opportunities in the Horticulture Industries Exports Imports Shippers & Packers Retail Outlets Wholesalers & Distributors Consumers Growers Processors Institutions & Food Service Outlets Brokers Production Suppliers Service Businesses

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