Marketing Development and Considerations for Value-Added Dairy Foods

Marketing Development and Considerations for Value-Added Dairy Foods

Product Trends

Are you familiar with product trends?

Producing and marketing a product that consumers want to purchase is the foundation for a successful business. What people want changes over time and it's important to stay current with consumer trends.

Competition

How do you fit in the competitive landscape? What's your niche?

How will you differentiate your business and products from those of other value-added dairy businesses?

Consumer Markets

Who/what are your primary and secondary consumer markets?

What are the demographics of your target consumers?

What do your consumers value?

What needs and values does your product fulfill for your consumers? What is most important to your consumers when choosing the dairy products to purchase?

Product Attributes

What are your product attributes? Expected product lifecycle?

How would you describe your product? Flavor profile, what milk production process was employed (e.g. grass-fed), product size, etc.

How long will each product be available? Will this be a limited release product or a foundational product for your business?

Marketing Products

Where will you market your product(s)?

What outlets will you sell your product through to get it into the hands of your consumer markets?

Pricing

How will you price? Have you included marketing expenses in your cost of production and pricing?

What is your cost of production? Variable cost? Fixed costs?

What is your break-even price?

What pricing strategies will you use?

The pricing of products can be used to achieve different marketing goals and to appeal to consumer perceptions.

Consumer Price Sensitivity

How price sensitive are your prospective consumers?

How will customers react if you raise prices? How much of an increase will they accept?

Product Promotion

What promotional strategies and tactics will you use?

Promotion is everything that is done to make your product & business known to your target consumer market(s). More than just advertising, it's communication.

Must create and convey a consistent image across all promotional activities and communication channels

Product Claims

Are you familiar with the claims that can be made on packaging labels and marketing materials?

Consumers make decisions and develop perceptions using label claims. Make sure you are legally allowed to use any certification logos or make product claims on your packaging labels and marketing materials.

What resources (people, physical assets) will be needed to successfully promote, sell and market your product?

It's easy to focus solely on what's needed for product processing. Don't forget to take stock of the people, facilities, equipment, supplies, etc. needed for successful marketing. If you're going to market from the farm, do you have a suitable, accessible and attractive location?

Marketing Plan

Is your marketing plan in alignment with your business goals and objectives? Your financial and production plans?

Your marketing activities should drive you toward achieving your overall business goals.

This program was developed by Food Safety CTS, LLC, for Penn State Extension.