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Fruit and Vegetable Production. Marketing Fresh Fruits and Vegetables. FV3. Objectives. LESSON OBJECTIVE. ENABLING OBJECTIVES. Identify and describe the pros and cons of fruit and vegetable marketing outlets. Create a marketing plan for a fruit and vegetable business.
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Objectives LESSON OBJECTIVE ENABLING OBJECTIVES • Identify and describe the pros and cons of fruit and vegetable marketing outlets • Create a marketing plan for a fruit and vegetable business • After completing this lesson on Marketing Fresh Fruits and Vegetables, students will demonstrate their ability to apply the concept in real-world situations by obtaining a minimum score of 80% on the Creating the Marketing Plan evaluation. 01 02 • Conduct financial planning for marketing fruits and vegetables 03
Key Terms Price Promotion Financial Planning Pick-Your-Own Business Wholesale Marketing Product Place Customer Base Roadside stand Farmer’s market Community-SupportedAgriculture (CSA)
Why Do You Buy? • Where does your family get fruits and vegetables? • What do you or your family members look for when buying?
Objective 1Identify and describe the pros and cons of fruit and vegetable marketing outlets
MARKETS TO SELL PRODUCE:Roadside Stands • Producer sells directly to consumer • Seasonal, temporary or semi-temporary • Located on- or off-farm • Easy way to sell directly to customers • Grower sets hours, prices, products • Sales provide immediate income • Minimal setup cost for a small operation • Safe, adequate parking needed • Must comply with all zoning, licensing, and insurance requirements
MARKETS TO SELL PRODUCE:Farmer’s Markets • Local farmers sell products directly to consumers • Low-cost way to reach a large number of customers within a short period of time • Network with other growers • Widen customer base and develop marketing skills • Shared advertising and promotion costs • Less flexible – pre-set hours and days of operation, space availability, rules on products sold
MARKETS TO SELL PRODUCE:Community Supported Agriculture (CSA) • Individuals pledge to support local farms, in exchange for fresh produce • Partnership with members who purchase shares of the season’s harvest • Shared risks and benefits of production • Members help pay for seeds, fertilizer, water, equipment maintenance, and labor • Income as soon as work begins • Financial plan determines share price • Growers consider crops members want • Growers can work together for greater crop variety
MARKETS TO SELL PRODUCE:Pick-Your-Own Business • Customers pick their own fruits and vegetables in the field • Less harvesting labor • Long work hours and additional liability insurance for the growers • Room for customer parking and traffic • Accessible and close to a population that can support it • Must be willing to work weekends • Image is important • Weather is a key factor; farmers rarely sell by pick-your-own alone
MARKETS TO SELL PRODUCE:Wholesale Marketing • Selling crops to one place • Less income than direct selling • Examples: restaurants, grocery stores, wholesale cooperatives, schools, hospitals, nursing homes • Sales made by contract • Normally purchased on a weekly basis • Buyers require prompt, regular delivery, consistent quality
Fruits and Vegetables • Strawberries • Grapes • Blueberries • Zucchini • Slicing Tomatoes • Cherry Tomatoes • Peppers • Potatoes • Cabbage • Garlic • Head Lettuce • Salad Greens • Watermelons • Kale • Cucumbers • Watermelons • Apples • Peaches
PRODUCT • What does the customer want from the produce? • What need should it satisfy? • What features of the produce meet these needs? • What is the produce called? (Name of business) • What physical properties of the produce make it look appealing? • How will it be branded? • How is it different from the competition?
PLACE • Where do buyers look for the produce? • What kind of store/market? Online? More than one? • Do you need to attend trade fairs, provide samples, send brochures, etc.? • What do competitors do? • How can you be different?
PRICE • What is the value of the produce to the buyer? • Are there established price points for the area? • Is the customer price sensitive? • What discounts should/could be offered? • How do prices compare to competitors?
PROMOTION • Where and when can you market to your customers? • Will you use PR, TV, radio, print advertisements, web, etc.? • When is the best time to promote? Is your product seasonal? Do you have seasonal promotions? • How do competitors do their promotions?
Objective 3Conduct financial planning for marketing fruits and vegetables
Financial Planning • Process of defining goals • Developing and implementing a plan to finance the goals • Essential in fruit and vegetable production: • limited growing season = limited period of income • ensures finances will last throughout the year • critical thinking regarding planting times and varieties of crops
Setting Goals • Where grower wants to be at the end of the season or year • Especially important in fruit and vegetable production: • products are highly perishable • labor is a major expense (varies depending on type of production)
Steps in Financial Planning • Record a projection of income and expenses • Make a list of wants and needs • Helps set short-, intermediate-, and long-term goals • Implement the financial plan • Keep current and accurate records of all income and expenses • Monitor progress toward reaching the business goals • Adjust plans as needed to manage problems and reach goals • Adapting to changes builds understanding and confidence
Conclusion Growing fresh fruits and vegetables to sell is only an initial step of being successful in the industry. Individuals and businesses need to have specific plan to market their produce. By identifying markets to sell fruits and vegetables, creating a marketing plan and executing sound financial planning, a business is better able to ensure they areoperating aprofitable enterprise.
Exit Card • What did you learn about Marketing Fresh Fruits & Vegetables? • What questions do you still have about Marketing Fresh Fruits & Vegetables?