FSMIP

Analyzing and Developing Marketing Strategies for Tennessee's Value-Added Agriculture

Goals and Objectives (March 1999)

The purpose of this project is 1) to analyze marketing strategies (by conducting case studies) of existing value-added agricultural business/enterprises and 2) to develop successful marketing strategies (by implement market research studies via survey instruments) for specific potential value-added agricultural businesses or enterprises in Tennessee.

The specific objectives to be achieved by this project are:

Conduct five case studies (one for each of the five selected projects) of existing value-added businesses in order to document specific industry details, identify the availability of market research information, identify problems and obstacles of existing marketing strategies, gather specific marketing information and to document specific technical, operational and financial aspects of the business. The results will be used to develop the survey instrument to be used in the market research study, to determine the use, benefit and shortcomings of marketing and management strategies being utilized and to assess customer response to existing market outlets for value-added products/enterprises.
Implement five separate market research studies (for the five selected value-added projects) in order to explore the potential of new market opportunities, identify target markets (niche markets), determine consumer taste and preferences for specific value-added products and enterprises, estimate market potential, perform a competitor analysis and measure consumer awareness. The results will be used to identify the most effective marketing system(s) to be considered and to determine the most efficient marketing channels to satisfy consumer demands for specific value-added agriculture products/enterprises. The results will also be used to develop specific marketing strategies to include product positioning (high-end, upscale), product development (image), advertising and promotion and creation of collateral marketing materials (brochures, business cards, signage).
Summarize the findings from both the case studies and the market research studies to explore new and improve existing marketing channels in order to expand and improve the performance of marketing systems for value-added products/enterprises. The summary will be used to develop a user-friendly criteria for the evaluation of marketing channels for value-added agricultural projects by small farmers and to develop curriculums to be used in outreach workshops and training sessions. As a result, the curriculums will be used to conduct workshops and training sessions for small and limited resource farmers, small agribusinesses and agri-entrepreneurs planning value-added activities, Extension agents, and agriculture industry leaders.
The project leaders will provide the overall organization and implementation for this study. However, a principal investigator will be hired to conduct the actual case studies and surveys and to summarize and develop the materials. With the cooperation of members of the Tennessee Department of Agriculture, the Tennessee Specialty Foods Association, U.T. Agricultural Experiment Station, Tennessee State University, the Tennessee Land Stewardship Association and other Sections of the U.T. Agricultural Extension Service, the following tasks will be performed:
Conduct Case Studies
Implement Market Research Studies
Summarize the Findings, Develop Curriculums and Conduct Workshops
At the conclusion of this project, five independent case studies summarizing the total management, marketing and technical aspects of various value-added enterprises will be published. Similarly, the results of five independent market research studies for the same value-added products or enterprises will also be published. These results will provide immediate impact for the entrepreneurs for whom they have been developed. The case study and survey will provide current and specific market information on which efficient marketing and promotion plans can be developed for the specific enterprises. Because this study will contribute to the development of independent case studies and market research, the results will be applicable to a number of other value-added projects submitted to the ADC in the future. The study will improve the planning process and chances of success for those considering value-added agricultural activities in Tennessee.
This study will not only generate the information needed to develop efficient marketing plans for specific individuals, but it will provide the needed data for the development of applicable teaching resources for those seeking a better understanding of marketing value-added products. The materials prepared through this study will be utilized across the state in every County Extension office, by the ADC and its work with individual value-added projects as well as large group teachings and by the Tennessee Department of Agriculture through their outreach efforts. The teaching tools developed through this study will assist agri-entrepreneurs and small farm agribusinesses in the development of new market opportunities for value-added products and enterprises and will contribute to an overall improved understanding of the critical success factors and characteristics of market demand needed for successful value-added agribusinesses.
Evaluation surveys will be utilized with each of the five subjects in this study. A questionnaire will be sent at one year, two year and five year anniversaries to determine the actual use, value and impact of the information utilized from the case studies and market research. Business success rates and employment statistics will be utilized with respect to the use of the marketing information from this study. In addition, immediate and long-term program evaluations will be conducted with participants of the outreach efforts (workshops, conferences and training sessions) which utilize the findings from this study