Sample Market Analysis

exemplar Market Analysis Market Analysis Customers Family Farmers resource has break downed a database of present customer who buy on a regular solid ground and customers who shed bought just now occasion solelyy as the opportunity presents itself, such as at farmers markets. Customer demographics show the current customers be in an income pass of $45,000 or to a greater extent, two income families, professional occupations, pertain about the environment and dictated primarily in urban atomic number 18as. Research as well shows these customers atomic number 18 earnings users and entrusting to order crossway from our business via the profit.Research conducted by Farmers plectrum has substantiate that there is a market segment large enough to confirm the investment in the processing mental quickness. Further, the premium these consumers ar giveing to devote ordain aldepression the shipment of mathematical products to nearly all geographic locations in the cou ntry. Focus groups, market surveys and product demonstrations at several locations were used to develop demographic profiles of each promising location so that zip codes could be used to easily identify future markets when expansion is deemed appropriate. (Note Results of the surveys can be provided if additional information is desired. A significant subjugate of consumers argon concerned about where their heart and soul products atomic number 18 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 sales there are an estimated 100,000 potential customers (based on census estimates). At present, Farmers Choice has reached just a fraction of that customer base. Based on data in the U. S. Census self-assurance databases, estimated customer potential is as follows Big townsfolk Farmers Market 55,000 Lot us 10,000 Keeper 10,000 Sag more 15,000 Cool Springs 5,000 Market Size and Trends 99718. 2 one million million million pounds of porc produced 199819. 0 billion pounds of pork produced 199919. 4 billion pounds of pork produced Source Steve Meier, National pork Producers Council. 1999 figures based on husbandry estimate. Average worths received by the producer have decreased in recent years 1997$52. 90 per 100 weight unit 1998$34. 40 per hundred weight U. S. per capita consumption of pork is declining 198057. 3 pounds per mortal 199649. 1 pounds per person In spite of declining per capita consumption of pork, consumers fluent cash in ones chips more bullion on pork per year than on poultry and fish.Average yearly expenditures for pork in 1998 were $146 per person per year, second only to beef at $218. The expenditures for all warmness (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) correspond to USDA data, higher(prenominal) expenditures for pork versus poultry whitethorn have been due to retail prices. For example, in June 1998, the average 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 triad out of four family cooks believe pork is a wellnessful choice. The homogeneous study indicated families prefer pork because it tastes good. Survey respondents also cited porks versatility, nutrition and value as key reasons for its stamp outularity. Ranking of the preferite cuts 1. Chops 2. Tenderloins 3. Roasts 4. Ribs Pork producers work hard to deliver the product that the consumer wants. Consumers wanted leaner pork and they got itCompared to 1983, pork of 2000 has about 31 percentage less fat content. popular Trends in snapper Consumption There are a human bo dy of new and emerging trends in meat selling which are pertinent to the interest of this feasibility study. In general there are one-third consumer preferences today which are impulsive major changes in the meat industry. Consumers are demanding meats that require little preparation time. Population and labor trends are driving this preference. An unprecedented number of women are in the workforce today.There is an increasing number of single adult households in the U. S. of those, the number of single parent, female-headed households is increasing, giveing in more than ever limited time for meal preparation within U. S. households. A Yankelovich poll (reported by the American Meat Institute) claims that half of all Americans spend less than 45 minutes planning an evening meal compared to the two-hour meal preparation typical in American households 30 years ago. raft have a limited amount of time and dont want to spend it readiness.Add to this the fact that at 4 p. m. , 60 percent of Americans do non know 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 feel 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 decent increasingly ready(prenominal) as meal-ready or with minimal preparation. Consumers are concerned about health and nutrition when buying meat. The sustenance Marketing Institute claims that nearly 80 percent of Americans want to eat nutriment they perceive to be exceedingly healthy and that 42 percent are detached to pay more for low-fat versions of commonly consumed products. In the lunch meat and h ot dog markets, a record 50 percent of the products offered are items with reduced or low fat. Consumers are demanding changes from the meat industry and the industry is responding. Numerous options and innovations can be observed at all levels in production, processing and packaging. The retail transport of sale is taking on a new look. Emerging Trends in Meat Marketing Case-Ready Meat These are value added uncontaminating meat products that the supermarket purchases in precut packages. Due to new packaging technologies, precut, tray-ready packages tend to offer a longer shelf life than conventional products.Often hermetically sealed, they offer customers trimmed, by the piece 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 include items such as marinated meats, stuffed chops, kabobs and seasoned steaks and roast which are ready to take 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 responsibility of meal preparation. They very much come packed and portioned as entrees with options to purchase complementary side dishes or extras. Also known as TOTE (Take Out To Eat), these dinners in a bag are the way in which supermarkets and grocery stores are competing with restaurants to clear business from Americans who choose not to prepare their own meals. The market abstract shows a broad range of prospective clients.The green labeled, eco-labeled, naturally labeled, provender industry is in a boom period. While there are a growing number of items from a growing number of vendors becoming available, Family Farmers Choice is approaching the market as a multi-choice pro vider of products with a face. The owner/members of Family Farmers Choice have spent 10 years carefully laying the groundwork and learning the methods for success. The value-added cooperative is now poised to gift the most of established connections with consumers and other marketers of natural items handcrafted on family farms.Family Farmers Choice is mark to offer food, fiber and manufactured products that nourish, provide comfort or speak to a desired taste or want. The members of Family Farmers Choice have prove an ability to adjust their product lines while also displaying a dogged desire to provide whatever level of sweat equity is requisite to preserve their independent 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 virtually sense of novelty in the grocery store.The genuine authenticity that can be verified by Family Farmers Choice is not yet common in the commercial consumer marketplace, which gives the Family Farmers group a leg up on the competition. The industry of specialized foods and handmade, one-of-a-kind products is on a steady upward growth curve and Family Farmers Choice is poised to benefit on the consumers desire for these items. While a bouncing thrift can affect many theaters, specialty food items and unique crafted goods are generally less affected than the important, with unique items typically finding favor in the marketplace.The adjacent article, reprinted, provides a degree of verification. Farmers Rated Best in Ensuring nourishment Safety Survey Identifies Consumer and Editor Opinions about Food Issues DES MOINES, Iowa Tuesday, kinsfolk 29, 1998 Food safety has surpassed issues such as crime prevention, health and nutrition, environmental protection, water quality and recycling as the most important humans issue facing consumers. However, consume rs give farmers high marks for their efforts to assure a safe food 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 clearly shows that consumers hold farmers in high regard for their efforts to produce safe and wholesome products, said preeminence Brewer, public relations counsel for the Food Practice Group. This offers an opportunity for the agricultural community 998 Food Issues Survey News Release Presented in crosstie with the International Food Safety Council, a restaurant and foodservice industry coalition. pic The following skirts show the pricing dodging that Farmers Choice will use for their products pic voltage Markets pic Product Distribution and Sales Meat products are sold in a variety of ways somewhat dependent on fresh or frozen and size of package. At present, ethnic markets and specialty markets are underserved. A survey of the phone companys yellow pages showed only two markets selling to ethnic groups in our proposed trade area.Regardless of whether the market is a niche or traditional market, the meat sales are still handled in the same manner. Types of sales include Over the predict in console plants or meat shops By mail order Via Internet Door-to-door sales and delivery Grocery stores Institutional food vendors disparateness 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, transportation product sold via Internet or phone orders and over the counter at the processing facility.For a small com pany, Farmers Choice will perceive as many marketing avenues as time and resources permit. Estimated Market apportion and Sales The potential sales volume for the projected sales area is $10 million. This is Web sites and Iowa State University Extension estimates, which combine population poetry and consumption numbers. With a projected sales volume of $500,000, Farmers Choice will not have a large market share. contention Competition is formidable. The competitors have more buying power, more clout 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 take on to work hard to educe and keep sales. Customers have well established buying habits for meat products conjugate with established preferences for products, packing and freshness. Competition is in the form of three chief(prenominal) categories 1. Large chain grocery stores for retail customers. 2. Sma ll 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 differentiate its products from commodity meats in the following manner Preserve the identity of products from the hog raiser to the consumer, whether the product is sold in meat markets, grocery stores, restaurants or delicatessens. Hogs will be raised in open pastures on a rotation basis, as opposed to highly dense confinement buildings, thus minimizing the investment require and eliminating waste disposal and related environmental problems.Studies have shown that hogs raised in this manner have fewer health problems, thus reducing the need for medicines of various types, further reducing production costs. Establish that the bra nd Family Farmers Choice offers products that are safe and are of consistent high quality, thereby merit 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 competitive 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 history 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. theatrical role is assured as all hogs are raised to an audited quality system. No quality problems will come from proce ssing due to our small facility and worker responsibility for quality. Doorstep delivery is available where possible. Customers can remonstrate 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 psychoanalysis 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 pose to Sell? Carcass Breakdown(Pork) Typical Market Pig 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 (p ercentage)48. 0 Pounds of lean meat88. 6 pic pic