Ag & Resource Economics Marketing Research Written by Annette Dunlap, MBA Extension Associate Ag & Resource Economics NC State University

The Value-Added & Alternative Agriculture Start-up Toolkit Program Outline Determining research needs Finding demographic data Estimating growth potential Using case studies and budgets Evaluating competitive activity Next steps resources The Value-Added & Alternative Agriculture Start-up Toolkit

Determining Research Needs Market research begins with a plan - “what do I need to decide?” Typical outcomes of market research are decisions about: go/no go regarding a venture market expansion product development (or expansion) market location The Value-Added & Alternative Agriculture Start-up Toolkit

Research Information Needs Demographic information about the potential target market Market analysis information about market growth potential Case studies and budget data Competitive activity data The Value-Added & Alternative Agriculture Start-up Toolkit

Finding Demographic Data Collect information regarding potential target markets Identify relevant demographic characteristics (such as income level, family size, product preferences) Determine size of potential market The Value-Added & Alternative Agriculture Start-up Toolkit

Estimating Growth Potential Intuitive method: “This looks good” Drawback: Insufficient data to support decision Subjective method: “Use a checklist” Offers some method of evaluating potential Objective method: “Run the numbers” MP = n x q x p MP = market potential; n = number of buyers in a market who would buy a product; q = quantity purchased by the average buyer; p = average price per unit The Value-Added & Alternative Agriculture Start-up Toolkit

Case Studies and Enterprise Budgets Offer insights into others’ experience Provide a starting point for determining business profitability The Value-Added & Alternative Agriculture Start-up Toolkit

Competitive Activity Identify direct and indirect competitors Analyze competitor strengths and weaknesses Remember to consider corporate competition Identify the unmet need or want - THIS IS YOUR POTENTIAL NICHE MARKET The Value-Added & Alternative Agriculture Start-up Toolkit

The Value-Added & Alternative Agriculture Start-up Toolkit Next Step Resources NC demographic data is available at: http://www.demog.state.nc.us Case studies and budget data can be found at: http://www.cals.ncsu.edu/value-added Market potential information: http://www.umext.maine.edu/onlinepubs/ htmpubs/HBBseries/3012.htm NC Department of Agriculture on: http://www.ncagr.com The Value-Added & Alternative Agriculture Start-up Toolkit