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Education an edge for farm markets over grocery stores
By SHELLY STRAUTZ-SPRINGBORN
Michigan Correspondent
 
GRAND RAPIDS, Mich. — Creating a great experience for consumers is one of the “winning ways” farm marketers can set their business apart from others.

John Stanley, a marketing expert from Kalamunda in Australia and a keynote speaker during several sessions at last month’s Great Lakes Fruit, Vegetable and Farm Market Expo in Grand Rapids, told attendees to be successful at selling locally, farm marketers must offer competitive prices, convenience and a great experience.

“A lot of farm marketers out there haven’t discovered number three. The consumer wants weekday convenience and a weekend experience from the same brand,” Stanley said. “As an industry, we have a huge opportunity to create that great experience.”

Consumer satisfaction is paramount in a marketplace changing at a rapid rate, he said. Supermarkets are experiencing growth of about 13 percent per year, while farm markets are double that, at 26 percent. At the same time, consumer satisfaction is declining at a rate of 15 percent per year.

These statistics show a unique opportunity for farm marketers to capture a larger share of the marketplace by creating a setting that is satisfying for consumers.

He said when developing a farm marketing strategy, it is important to understand the dynamics of a number of factors, including retail channels, competitive position, loyalty, culture, product and marketing. These factors, he said, will vary in different geographic areas.

“It’s important that you own the territory you’re in, in the territory you’re in,” Stanley said. “You have to have a strategy for how you’re going to develop the retail channels.”

When developing a marketing strategy, he said farm marketers who embrace education and entertainment stand out to consumers. “Education is now a major marketing tool,” he explained. “You’re not going to own the marketplace selling stuff, but you can own it through education.”

Stanley said market data show consumers like to know about the food they are buying. Simple changes in signage – to include brief information about the produce including variety, uses and even recipe ideas – offer educational tidbits for which consumers are looking.

Further, Stanley said consumers want entertainment during their shopping experience.

“Customers expect us to create the right ambience,” he said. “It’s the experience they’re looking for. We have to consider the customer’s journey. We have to engage them.”

Engaging customers and striving to provide a “great experience” is a primary focus for Barb and Ken Hall, owners of Edwards Apple Orchard in Poplar Grove, Ill. In business for nearly 50 years, Barb Hall said the “culture” at their orchard defines their farm market in the eyes of their customers.

“Culture refers to the values, beliefs and attitudes of your business,” she said. “It is your personality.”
The Halls said their culture is used to guide all the decisions they make at their business.

Edwards Apple Orchard is only open to the public 13 weeks each year. During that time, the Halls focus on creating that great experience for their customers. Throughout the years, they have changed the layout of their market, added products, created clearer signage that offers information about the products and much more.
Since their farm market is a former dairy farm, the Halls work to create an ambience that is family friendly, while preserving the heritage of their operation. They use apple baskets as shopping baskets, milk cans as stools, burlap fabric as table covering and other items that fit into their culture. They recently began adding facts to their signage, such as the varieties of apples used to make their homemade cider.

In addition to positive feedback from their customers, who say they like learning about the products they are purchasing, the Halls have increased their sales. And, they put much effort in deciding what they are going to sell – preferring to sell larger quantities of fewer numbers of items.

“What you don’t sell is just as important as what you do sell,” Hall said.

Most importantly, they said, is that they hire employees who fit into their culture. “If your employees are happy, your guests are going to be happy also,” she said. “Guests become loyal if they like your culture.”
1/4/2012