Download Marketing Plan: Pescadero Gold By Heather Yamada

Marketing Plan: Pescadero Gold
By Heather Yamada-Hosley
Firm Background:
Farm Fuel, Inc. was originally started to research the exporting of biofuel. The plant which was
selected to be used was mustard, and so the processing of mustard into mustard meal and mustard oil
began. The use of mustard meal as an organic fertilizer quickly came about and the trials went on for
three years to determine features of the product. Some of the features which were researched included
how to apply the product, when to apply it, the effects, and what crops to use it on. So far, it has been
found to be very effective in growing strawberries and replacing methyl bromide. Since then, research
on the product has continued and marketing of it has begun.
Executive Summary:
Farm Fuel, Inc. has launched their product, Pescadero Gold, into a mature market. Pescadero
Gold is a mustard meal fertilizer that provides a competitively unique combination of useful features
and unparalleled advancements in agricultural techniques at a fair price. Farm Fuel, Inc. is targeting
specific segments in the agricultural farmer and home gardening markets, taking advantage of
opportunities indicated by higher demand for organic solutions to agricultural problems.
Current Market Situation:
Farm Fuel, Inc. has entered the mature organic soil amendments market. Organic agriculture
has been on the rise in popularity and by capitalizing on this, Farm Fuel, Inc. can increase their market
share and expand quickly.
Market Description:
Pescadero Gold’s market consists of buyers who want an organic solution to issues they are
experiencing with their gardens and farms. The target individuals are organic farmers, especially
strawberry farmers, and home gardeners. This product is compatible with consumers who need a
natural soil amendment that can help deter pests in the soil, replenish nutrients, and encourage plant
growth. Farmers can use this product on their land to increase productivity without damaging the
environment. Strawberry farmers in particular can use Pescardero Gold to protect their crop without
having to use toxic chemicals. Home gardeners can use this product in their garden to prepare it for the
produce they wish to grow at home.
Product Review:
Pescadero Gold has the following features:
NPK 6-1-1 fertilizer
Treats soil disease
Controls weeds
Adds organic material to soil
Suitable for use on organic certified farms
Review of Competition:
While Farm Fuel, Inc. does have a corner on the market of mustard meal on the Western
coast, there is another Canadian firm which produces a similar product that provides similar features to
Pescadero Gold. However, this firm is not of too much threat to Farm Fuel, Inc. at this time because
they are located so far away that it would be very costly for farmers in California to order product from
them. Another source of competition that Farm Fuel, Inc. must face are seed banks because they offer
mustard seed. This would allow for others to possibly try and produce a similar fertilizer. However,
the research and set up costs would be very great.
Review of Distribution:
Pescardero Gold is mostly ordered by farmers through phone orders. It is also available
online through the Farm Fuel, Inc. website. Those in the home garden sector can find this product in
various local garden stores around the Central Coast area. Farm Fuel, Inc. plans to offer delivery of
Pescadero Gold on a national level. Farm Fuel, Inc. usually uses UPS or a freight broker to ship their
large orders. While this can create complications because sometimes the drivers get lost and have no
way to contact the company. Despite this issue, freight is still the cheapest way to transport the
mustard meal over long distances. Additionally, the mustard meal cannot get wet and must be handled
gently while being transported.
Threats and Opportunities Analysis:
Threats:
1. Established competition: Farm Fuel, Inc. does face some competition from a firm that is
already established and seed banks which are also established.
2. High start-up costs: Since Farm Fuel, Inc. is so new, they face many high costs which could
difficult to combat if their product does not produce enough profit or they do not have
enough investors to withstand these costs.
Opportunities:
1. Mutualistic relationships: Since Farm Fuel, Inc. produces such a unique item, they have the
benefit of developing mutualistic relationships with other firms and individuals. One
example is using excess mustard meal that results from making mustard. Another is the
Calcore project. By establishing these relationships, Farm Fuel, Inc. can benefit through
both cost reduction and information retrieval.
2. By products: Through the production of Pescadero Gold, by products such as mustard oil
are obtained. These by products can be used to branch out into the biofuel and alternative
fuel industry. In keeping with the agricultural theme, Farm Fuel, Inc. could use this by
product to appeal to those who use sustainable tractors and other sustainable farm
equipment that can run on biofuel.
Marketing Strategy:
Farm Fuel, Inc.’s marketing strategy is based on a combination of traditional marketing
techniques and use of outreach. The primary consumer target is made up of farmers who need an
organic product which can add nutrients to the soil and reduce pests without damaging the
environment. The secondary customer target are those who want the product to fertilize their home
gardens.
Using product differentiation, Farm Fuel, Inc. is positioning Pescadero Gold as an
organic product which is easy to use, productivity increasing, and effective. Marketing so far focuses
on the advantages that the product brings to the user and its capabilities at solving many of the issues
faced by organic farmers and gardeners.
The product strategy for Pescadero Gold offers all the features laid out on the firm's
website as well as in brochures and other materials that are handed out during outreach efforts. In
addition, extreme outreach efforts to build up the recognition of the company name and exposure of the
target sectors to the product will help launch Pescadero Gold forward. Some of these efforts include
attending conferences, meetings, and farmer's markets to spread information and networking on the
firm's behalf.
The pricing strategy for this product is based on the price of the components needed to
produce it. This includes research efforts, materials, labor, machine costs, marketing, transportation,
and such. It is a reasonable cost for the quality of the product, especially when compared to other nonorganic offerings.
The distribution strategy for Pescadero Gold is directly through Farm Fuel, Inc. as well
as through different retailers for the gardening market. In order to support these retailers, Farm Fuel,
Inc. should provide detailed information about the product to the retailer.
The marketing communications strategy for Pescadero Gold so far is to combine efforts
to advertise using traditional marketing methods with new technology based methods. Farm Fuel, Inc.
is looking into using print media such as magazines, flyers, and informational brochures. Other
traditional methods that they are using include cold-calling and outreach campaigns to the community.
However, they are also employing newer marketing techniques such as creating a social media
presence on Facebook, Twitter, and through their own blog.
They will have to evaluate the money and time spent on certain marketing techniques to
see if it is worth the amount of people they reach. Additionally, they can follow up on a case specific
basis and find out what techniques worked and why so that they can increase their effectiveness in
advertising. As Farm Fuel, Inc. continues to test which marketing techniques work best for Pescadero
Gold, they will be able to expand their business and improve their product.
Farm Fuel, Inc. has a bright future in the agricultural industry. As they continue to
develop their current product, expand into other uses for their product, and support research by
universities and institutes, they will be securing a solid reputation for themselves.