Sample Market Analysis

Sample merchandise compend Market analytic thinking Customers Family Farmers prize has developed a database of present customer who buy on a regular basis and customers who lead bought only occasion bothy as the hazard presents itself, such as at farmers aliment food markets. Customer demographics show the current customers argon in an income range of $45,000 or more, two income families, professional occupations, relate to the tallest degree the environment and located primarily in urban aras. Research withal shows these customers ar Internet users and willing to order mathematical product from our business via the Internet.Research conducted by Farmers resource has substantiate that in that location is a market segment bighearted enough to justify the investment in the bear on facility. Further, the amplitude these consumers argon willing to pay will allow the shipment of products to nearly all geographic locations in the country. Focus groups, market surveys and product demonstrations at several(prenominal) locations were used to develop demographic profiles of each promising location so that zip codes could be used to easily identify future markets when e jabateness is deemed appropriate. (Note Results of the surveys can be provided if additional in crapation is desired. A significant physique of consumers ar concerned about where their m occupy products are coming from and how these products are processed. The company will market directly to that group. Since they are highly informed consumers, however, a major task will be to establish credibility. In the farmers markets targeted for gross revenue in that respect are an estimated 100,000 potential customers ( ground on census estimates). At present, Farmers filling has reached only a fraction of that customer base. Based on data in the U. S. Census Bureau databases, estimated customer potential is as follows Big T aver Farmers Market 55,000 Lotus 10,000 Keeper 10,000 Sagmo re 15,000 Cool Springs 5,000 Market Size and Trends 99718. 2 billion pounds of porc produced 199819. 0 billion pounds of porc produced 199919. 4 billion pounds of pork produced Source Steve Meier, National pork Producers Council. 1999 figures based on USDA estimate. Average prices received by the producer defy decreased in recent years 1997$52. 90 per hundred saddle 1998$34. 40 per hundred weight U. S. per capita consumption of pork is declining 198057. 3 pounds per soulfulness 199649. 1 pounds per person In spite of declining per capita consumption of pork, consumers still overhaul more money on pork per year than on fowl and fish.Average one-year expenditures for pork in 1998 were $146 per person per year, second only to rush at $218. The expenditures for all subject matter (beef, pork, poultry and fish) decreased slightly from the 1997 annual expenditures. (Source Consumer Expenditures Survey, 1984-98, U. S. Department of Labor, Bureau of Labor Statistics) According to USDA data, higher expenditures for pork versus poultry may have been imputable to retail prices. For example, in June 1998, the honest retail price for pork was $2. 29 per pound, compared to chicken at $1. 55 per pound.Consumer Perceptions of Pork According to a survey conducted by the National Pork Producers Council, more than three out of four family cooks believe pork is a healthful choice. The same study indicated families prefer pork because it tastes good. Survey respondents too cited porks versatility, nutrition and entertain as key reasons for its popularity. rank of the favorite cuts 1. Chops 2. Tenderloins 3. Roasts 4. Ribs Pork producers kick the bucket hard to deliver the product that the consumer wants. Consumers precious tendencyer pork and they got itCompared to 1983, pork of 2000 has about 31 share little fat content. General Trends in Meat Consumption There are a number of red- sweltering and emerging trends in meat merchandise which are relevant to the interest of this feasibleness study. In general there are three consumer preferences today which are driving major changes in the meat industry. Consumers are demanding meats that require little preparedness clock epoch. Population and labor trends are driving this preference. An unprecedented number of women are in the men today.There is an increasing number of maven adult households in the U. S. of those, the number of single parent, female-headed households is increasing, resulting in more than ever expressage time for meal preparation within U. S. households. A Yankelovich poll (reported by the American Meat land) claims that half(a) of all Americans spend less than 45 minutes cooking an even out meal compared to the two-hour meal preparation typical in American households 30 years ago. People have a limited amount of time and dont want to spend it cooking.Add to this the fact that at 4 p. m. , 60 percent of Americans do non k flat what they will eat for dinner. The implications are that the meat marketing industry has a whole new challenge for capturing palates and dollars. Consumers have little knowledge of and skills for cooking. Studies report that many consumers impression that their knowledge of cooking and skills for meal preparation are more limited than those of their parents and grandparents. Furthermore, the American Meat Institute reports that many American consumers find meat preparation to be challenging.Implications for meat marketing are that meats are turn increasingly acquirable as meal-ready or with minimal preparation. Consumers are concerned about health and nutrition when purchasing meat. The feed Marketing Institute claims that nearly 80 percent of Americans want to eat viands they embrace to be extremely healthy and that 42 percent are willing to pay more for low-fat versions of commonly consumed products. In the lunch meat and hot dog markets, a record 50 percent of the products offered are items with decreas ed or low fat. Consumers are demanding changes from the meat industry and the industry is responding. legion(predicate) options and innovations can be observed at all levels in production, processing and packaging. The retail point of sale is taking on a new look. Emerging Trends in Meat Marketing Case-Ready Meat These are value added fresh meat products that the supermarket purchases in precut packages. Due to new packaging technologies, precut, tray-ready packages draw to offer a longer shelf life than conventional products.Often hermetically sealed, they offer customers trimmed, individually wrapped, consistent portions. Case-ready meats eliminate extra steps in handling for retailers and consumers alike. Consumer-Ready Products These products go a step beyond the case-ready meat products by including preparation tips, cooking instructions, spices, or seasoning packets. Portions are indicated on the package. Consumer-ready products entangle items such as marinated meats, stuff ed chops, kabobs and seasoned steaks and roast which are ready to dribble home and pop into the oven, microwave or place on the grill.Home meal Replacement These are fully prepared products which free the consumer from all office of meal preparation. They often come packed and portioned as entrees with options to purchase completing side dishes or extras. Also known as TOTE (Take break through To Eat), these dinners in a bag are the way in which supermarkets and securities industry stores are competing with restaurants to gain business from Americans who choose not to prepare their own meals. The market analysis shows a broad range of prospective clients.The kB labeled, eco-labeled, naturally labeled, food industry is in a boom period. charm there are a ripening number of items from a growing number of vendors becoming available, Family Farmers election is approaching the market as a multi-choice provider of products with a face. The owner/members of Family Farmers picka x have spent 10 years carefully laying the groundwork and learning the methods for success. The value-added cooperative is now poised to make the approximately of established connections with consumers and otherwise marketers of natural items handcrafted on family farms.Family Farmers Choice is set to offer food, fiber and manufactured products that nourish, provide cheer or address a desired taste or want. The members of Family Farmers Choice have proven an ability to adjust their product lines while overly displaying a tenacious desire to provide whatever level of fret equity is required to preserve their in leechlike ways of life as family farmers. The owners/members have also provided 50 percent of the equity requirements per early feasibility estimates. The food-with-a-face concept of marketing is still relatively new and enjoys some perceive of novelty in the marketplace.The genuine authenticity that can be verified by Family Farmers Choice is not yet common in the comm ercial message consumer marketplace, which gives the Family Farmers group a leg up on the competition. The industry of vary foods and handmade, one-of-a-kind products is on a steady upward growth curve and Family Farmers Choice is poised to capitalize on the consumers desire for these items. While a bouncing economy can affect many areas, specialty food items and unique crafted goods are generally less affected than the main, with unique items typically finding favor in the marketplace.The following article, reprinted, provides a degree of verification. Farmers Rated outdo in Ensuring Food Safety Survey Identifies Consumer and Editor Opinions about Food Issues DES MOINES, Iowa Tuesday, September 29, 1998 Food beneficialty has surpassed issues such as wickedness prevention, health and nutrition, environmental protection, water quality and recycling as the most important public issue facing consumers. However, consumers give farmers high label for their efforts to assure a safe f ood supply, a survey by the International Food Safety Council, a restaurant and foodservice industry coalition, shows.Fifty-nine percent of consumers surveyed said farmers are doing an excellent job to ensure a safe food supply. Supermarkets came in a close second at 57 percent, followed by food processors (44 percent), restaurants (42 percent), consumers (38 percent), government agencies (34 percent), and meat/poultry packers (29 percent). The survey clear shows that consumers hold farmers in high regard for their efforts to produce safe and nutritive products, said Bill Brewer, public relations counsel for the Food apply Group. This offers an opportunity for the agricultural community 998 Food Issues Survey News secrete Presented in association with the International Food Safety Council, a restaurant and foodservice industry coalition. pic The following tables show the pricing strategy that Farmers Choice will use for their products pic Potential Markets pic Product Distributi on and Sales Meat products are sold in a variety of ways somewhat dependent on fresh or frozen and size of package. At present, cultural markets and specialty markets are underserved. A survey of the send for companys yellow pages showed only two markets selling to ethnic groups in our proposed mint area.Regardless of whether the market is a niche or traditional market, the meat gross sales are still handled in the same manner. Types of sales include all over the counter in locker plants or meat shops By get away order Via Internet Door-to-door sales and delivery Grocery stores institutional food vendors Specialty marketing Prepared food sales Farmers Choice will not have any unique food sales methods. Rather, the company will sell via specialty markets, such as farmers markets, as frozen foods, shipping product sold via Internet or phone orders and over the counter at the processing facility.For a small company, Farmers Choice will cover as many marketing avenues as time and resources permit. Estimated Market Share and Sales The potential sales record book for the intercommunicate sales area is $10 million. This is Web sites and Iowa State University Extension estimates, which liquefy population numbers and consumption numbers. With a projected sales volume of $500,000, Farmers Choice will not have a large market share. Competition Competition is formidable. The competitors have more buying power, more paper bag in the marketplace and more financial resources to cut deals with suppliers.Farmers Choice has no illusions of coming into the market place and easily capturing sales. It will need to work hard to gain and keep sales. Customers have well established buying habits for meat products coupled with established preferences for products, packing and freshness. Competition is in the form of three main categories 1. Large chain grocery stores for retail customers. 2. clear independent locker plants with retail counters. 3. Meat brokers and institutional food sales groups selling to restaurants. The main competition will be pork products marketed in the traditional manner, i. e. as a commodity. Typically, the consumer does not know where the product comes from and where and how it was processed. Family Farmers plans to nock its products from commodity meats in the following manner Preserve the identity of products from the rat raiser to the consumer, whether the product is sold in meat markets, grocery stores, restaurants or delicatessens. Hogs will be embossed in open pastures on a rotation basis, as opposed to highly dense confinement buildings, thence minimizing the investment required and eliminating waste disposal and related environmental problems.Studies have shown that hogs raised in this manner have fewer health problems, and so reducing the need for medicines of various types, further reducing production costs. pull in that the brand Family Farmers Choice offers products that are safe and are of con sistent high quality, thereby deserving of a premium price. Who are our competitors? We do not know the annual meat sales volume of our competitors or their market shares. Such figures, if published, were not available for this study.Farmers Choice prices will be warlike and, in some cases, higher than competing pork products found through other distribution channels. The higher cost, about 5 cents per pound higher on average, will result from the key differences of Farmers Choice product versus competitors. Again, the sales memoir indicates consumers are willing to pay a very slight premium to get product that meets their criteria. Some key differences of our product include It is a natural product, free of hormones. It is provided by farmers known to the consumer, as in food with a face. Quality is assured as all hogs are raised to an audited quality system. No quality problems will come from processing due to our small facility and worker responsibility for quality. Doorst ep delivery is available where possible. Customers can visit the factory where the food is made. Competitive Advantage and Analysis The following table outlines how Farmers Choice compares to the competition in terms of product and other factors, including strengths and weaknesses. The analysis is of Farmers Choice against the competition by major groups.While there may be key differences against individual stores or businesses, these do not exist in large enough quantity to affect sales or strategy of Farmers Choice. pic Following is an analysis of Farmers Choice strengths and weaknesses, opportunities and threats SWOT Analysis (Strengths and Weaknesses Opportunities Threats) pic What Does the Coop Have to Sell? Carcass Breakdown(Pork) Typical Market tomentum Live weight (pounds)250 Carcass weight (pounds)184 Backfat 10th rib (inches)0. 9 Loin-eye area (square inches)5. 2 Fat-free lean index (percentage)48. 0 Pounds of lean meat88. 6 pic pic