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

Today’s 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

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

Diversified, Exciting, and with Unlimited Opportunities

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.

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

Growers Production Suppliers Exports Imports Wholesalers & Distributors Brokers Consumers Retail Outlets Institutions & Food Service Outlets Processors Service Businesses Marketing Channels for the Horticulture Industry Shippers & Packers

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 –Hunt’s Point in NYC Auctions

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 Farmer’s Markets Community Supported Agriculture Mail Orders and E - Commerce

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

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

Developing Marketing Strategies: Objectives Target Markets Products Prices Promotion Distribution Competition Skills, Preferences and Resources

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

Marketing Strategies for Small Marketers Targeting Retail Opportunities Specialty/Niche Marketing High Quality Value-added Products Agri-Tourism More Services Owner’s Identity Collaboration, Joint Ventures, Alliances Tour: Iron Kettle Farm

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

Give the Customer a Reason to Do Business with You Don’t Just Satisfy the Customer; “Delight” the Customer Exceed the Expectations

Growers Production Suppliers Exports Imports Wholesalers & Distributors Brokers Consumers Retail Outlets Institutions & Food Service Outlets Processors Service Businesses Opportunities in the Horticulture Industries Shippers & Packers