Many small agribusiness owners don’t want to limit their opportunities by focusing their sales and marketing efforts on a particular category of customers. However, experience has shown that trying to please (market to) everyone leaves you to compete on price, which, often, is not what leads to success.
By focusing your efforts on a target market (niche marketing), you can become a leader in your niche and benefit from greater loyalty and higher pricing. You can reach a target market much more efficiently and effectively than the market of “everyone.”
Incidentally, if you sell to wholesalers, while they might be your direct customers, they are NOT your target market. Your target market is who the wholesaler resell to, the end consumer or the final purchaser. You should consider the wholesaler in your marketing plan, of course, but for now, focus on the consumer or business that makes the buying decision. For example, if you are targeting high end consumers, your packaging and marketing should reflect that even though it may not be a concern of the wholesaler.
Why is this important?
Once you know your target market and have defined how you want them to think of your company/products/services, you can encourage them to prefer your company/products/services over the competition, thus increasing your sales and giving you more control over demand and pricing.
What is MY target market?
A Target Market is a defined group of potential customers that is the focus (target) of your sales/marketing efforts. The more you know about this group, the better you are able to reach them and address their needs, thus increasing your sales.
The easiest way to select your target market(s) is to think about your ideal customer.
- Imagine the person (or business) that would most prefer your products and services versus the competitors’ offerings. They would appreciate the value of what you offer and be willing to pay more for it.
- Give this person a descriptive name that identifies them as narrowly as possible.
Bad Example: Tomato eater.
Better Example: Mother of school aged children who really wants her family to eat local, fresh, healthy vegetables, and for which tomatoes is a prime example.
Who is my competition?
In terms of competition, do not spend an extended amount of time toiling over this. A general assessment of who you will be directly competing with will be enough to get to started. Begin with looking at these 3 areas.
- Market Analysis: be sure to take a good look at who your competitors are and who already dominates the markets you are trying to get into. Go to the store and see who is out there. Then, identify where there is room for what you provide amongst those brands/products.
- Differentiation: The best way to respond to your competition is to pay attention to the betterment of your own brand. Know what makes you different and how that helps the marketplace economy versus steals market share.
- Here is a checklist for you to go through to help you sharpen what sets you apart and creates a strong value for your products
- What is your story?
- Past, Present, Future
- What is your inspiration?
- How are you Innovative?
- How are you innovating? Or doing something different (growing method, variety, collaboration)
- What is your value perception?
- Does your price point match your branding & packaging?
- Location, Crop Varietal, Value added product
- What is your story?
- Here is a checklist for you to go through to help you sharpen what sets you apart and creates a strong value for your products
- Capacity (time, money, production): Be sure to have a strong grasp on how much product you can produce and in what timeframe. Be careful not to make promises you cannot deliver on. This is often a little bit of a rollercoaster in the beginning stages (maybe years) of your agribusiness. Try not to get too overwhelmed with the desire to grow because demand is there & the time and money it will required to execute the orders you have taken and are obligated to fill.