Niche Marketing PastureRaised Products: A Learning Module

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Niche Marketing Pasture-Raised Products A
Learning Module

• Based on three case studies
• by Practical Farmers of Iowa
• with support from Food
• Alliance Midwest funded
• by the Leopold Center
• for Sustainable Agriculture
• Learning module prepared by
• Jerry DeWitt, Leopold Center
• October 2006

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What is a focus group?

• A group of people are asked about their attitude
  toward a product, service, concept,
  advertisement, idea or packaging.
• Questions are asked in an interactive group
  setting where participants are free to talk with
  other group members.

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What do these terms mean to you?

• Free Range
• Pastured-raised
• Grass-fed
• Natural

Question for class discussion
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Results of focus group research

• Free Range
• Many clear ideas about the meaning
• - Most, however, said it adds little or no value
• Pasture Raised
• Nearly all think of
• cows dairy beef
• Some think of rolling
• green hills/ traditional
• family farm

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Results of focus group research

• Grass Fed
• Brings cows to mind, elicits many comments
• - Some were confused
• - Some expressed concern about taste
• Natural
• Many say they know what it should mean, but..
• - Has become little more than a marketing term
  they dont always trust

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Responding to messageson a sales brochure
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Test message 1 Meat products
think?

• We pasture animals to produce a superior quality
  meat product- superior in taste, environmental
  stewardship and animal well-being.

• Would you be ?
• Very likely to buy
• Somewhat likely
• Somewhat unlikely
• Not that likely

Question for class discussion What would
you say?
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Focus Group reaction to 1

• We pasture animals to produce a superior quality
  meat product- superior in taste, environmental
  stewardship and animal well-being.

Among Focus Group participants 32 Very likely to
buy 34 Somewhat likely to buy 1 Somewhat
unlikely to buy 0 Not that likely to buy
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Test message 2 Meat products

• Our pasture-raised meat tastes better, is
  healthier and protects our environment.

• Would you be ?
• Very likely to buy
• Somewhat likely
• Somewhat unlikely
• Not that likely

Question for class discussion What would
you say?
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Focus Group reaction to 2

• Our pasture-raised meat tastes better, is
  healthier and protects our environment.

Among Focus Group participants 19 Very likely
to buy 36 Somewhat likely to buy 8 Somewhat
unlikely to buy 4 Not that likely to buy
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Test message 3 Dairy products

• All natural grass-fed milk is an excellent
  source of nutrition, good for you, good for the
  environment and good for the cows.

• Would you be ?
• Very likely to buy
• Somewhat likely
• Somewhat unlikely
• Not that likely

Question for class discussion What would
you say?
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Focus Group reaction to 3

• All natural grass-fed milk is an excellent
  source of nutrition, good for you, good for the
  environment and good for the cows.

Among Focus Group participants 16 Very likely to
buy 27 Somewhat likely to buy 21 Somewhat
unlikely to buy 3 Not that likely to buy
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Test message 4 Dairy products

• Giving our cows access to high quality pasture
  assures them a constant supply of fresh grasses
  and clover throughout the growing season. This
  low stress environment, with fresh air and
  sunshine, results in better herd health and
  superior quality milk for our dairy products

• Would you be ?
• Very likely to buy
• Somewhat likely
• Somewhat unlikely
• Not that likely

Question for class discussion What would
you say?
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Focus Group reaction to 4

• Giving our cows access to high quality pasture
  assures them a constant supply of fresh grasses
  and clover throughout the growing season. This
  low stress environment, with fresh air and
  sunshine, results in better herd health and
  superior quality milk for our dairy products

Among Focus Group participants 28 Very likely to
buy 23 Somewhat likely to buy 12 Somewhat
unlikely to buy 3 Not that likely to buy
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Test message 5 Poultry products

• Our chickens are raised naturally in the fresh
  air and sunshine. They are pastured and moved
  daily so they have fresh greenery under their
  feet. What this means to our customers is that
  our tender poultry cooks quickly, has much less
  fat, and they taste wonderful.

• Would you be ?
• Very likely to buy
• Somewhat likely
• Somewhat unlikely
• Not that likely

?
Question for class discussion What would
you say?
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Focus Group reaction to 5

• Our chickens are raised naturally in the fresh
  air and sunshine. They are pastured and moved
  daily so they have fresh greenery under their
  feet. What this means to our customers is that
  our tender poultry cooks quickly, has much less
  fat, and they taste wonderful.

Among Focus Group participants 16 Very likely to
buy 22 Somewhat likely to buy 21 Somewhat
unlikely to buy 7 Not that likely to buy
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Words Phrases That Work

• Tastes great, fresh
• High quality, superior quality
• Good for you, healthy
• Free of antibiotics, hormones
• Chemical free
• Low in fat
• Excellent source of nutrition
• Fresh air and sunshine
• High quality pasture

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Barriers to Direct Marketing

• Lack of trust in unknown sources particularly
  those seen as unregulated or lacking standards
• Expect pasture-raised products will cost more,
  which means they expect more
• Concerns about affect on taste
• Need for convenienceaccess
• Resistance to buying in larger volumes

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What is a case study?

• A detailed intensive study of a unit, such as a
  business, that stresses factors contributing to
  its success or failure

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Key findings from case studies

• 1. Key benefits must be for the consumer
• 2. Healthy is the goal not at expense of taste
• 3. Disease and bacteria cause most concern
• 4. Locally-produced rates high
• 5. Animal welfare important
• 6. Some see the benefit/link to
• family farmers

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Key findings from case studies

• 7. Respondents arent quick to see environmental
  benefits
• 8. Convenience and price matter
• 9. Corporate or local farmer, trust is lacking
• 10. Convenience is key
• 11. Definitions, standards, certification
  important
• 12. Consumers suffer from information overload

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Implications from case studies

• Focus on direct benefits, like better tasting
  and especially healthy attributes.
• Promote these and other key benefits (antibiotic
  hormone free, environmentally friendly, animal
  well-being, etc.) and using simple terms and
  phrases
• Taste and tenderness are important, and grass-fed
  meats tend to rate lower find ways to address
• Price is an issue to be addressed

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Implications from case studies

• Food safety is a huge concern - address it head
  on
• Consider certifying claims to address lack of
  trust and desire for definitions
• Convenience easy ordering and access to product
  
  must be addressed

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Using the lamb brochure, find these selling
points

• Flavorful
• Local
• Nutritious
• Seasonal
• Environmentally responsible
• Humane

Class activity Find the phrases that work
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Sample niche marketing brochure Planned Lamb
Download and print the brochure on the web at
www.leopold.iastate.edu/research/marketing_files/g
rassfed/lamb_brochure.pdf
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On the web

• Find this presentation at
• http//www.leopold.iastate.edu/research/marketing
• _files/grassfed/learning_module.ppt
• Read three case studies and focus group research
  results at
• http//www.leopold.iastate.edu/research/marketing
• _files/grassfed.htm