Horticultural Marketing

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Horticultural Marketing

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

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Todays 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

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The Horticulture Industry

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

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Diversified, Exciting, and with Unlimited
Opportunities
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What is Marketing?

• Marketing is a total system of business
  activities designed to plan, price, promote, and
  distribute products to target markets.
• Marketing is an exchange of a wanted product or
  service for a price.

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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

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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
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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
• Hunts Point in NYC
• Auctions

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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
• Farmers Markets
• Community Supported Agriculture
• Mail Orders and E - Commerce

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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

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Successful Horticulture Enterprises Start with
Good Marketing
Where Are the Best Opportunities?
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Developing Marketing Strategies

• Objectives
• Target Markets
• Products
• Prices
• Promotion
• Distribution
• Competition
• Skills, Preferences and Resources

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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

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Marketing Strategies for Small Marketers
Targeting Retail Opportunities

• Specialty/Niche Marketing
• High Quality
• Value-added Products
• Agri-Tourism
• More Services
• Owners Identity
• Collaboration, Joint Ventures, Alliances
• Tour Iron Kettle Farm

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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

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Give the Customer a Reason to Do Business with
You Dont Just Satisfy the Customer Delight
the Customer Exceed the Expectations
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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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