The first months of the year are still valid for setting new purposes. For this reason, we will begin by proposing the topic of “Marketing Strategies in agriculture”, a very broad topic and with a lot of literature in which we can easily find definitions and concepts; however, it is not easy to find information on how to adapt this within the sector and it is much more difficult to adapt them to agriculture in Mexico, since in our country there is a great diversity of agricultural products, and in high-value sectors, we also find a very wide diversification of customs for each region, which, in some cases, are within very mature markets, and in others, although they have great growth potential, the development of the production chain is very incipient or of very low development.

Therefore, this article is an explanation and a small manual, like all those that we try to write from the beginning of our participation, so that it can be used regardless of the size of your business in the agricultural sector and regardless of the level of development in the market of the product you grow, to make the best decisions and, of course, can increase your profitability.

Definition

It is important to mention that a marketing or marketing strategy in the agricultural sector is not about going out to knock on doors to sell our product. A marketing strategy begins with an internal and external diagnosis of our activities, to gather valuable information and establish a series of alternatives to follow to achieve a goal, deciding to carry out the strategy that best suits us according to our possibilities and carrying it out through implementation tactics during the continuous operation and progress of our business.

The strategy must use a set of tactics to achieve our objective, these will be the tools that we have to execute our actions in pursuit of the objective.

Internal And External Diagnosis

Before making any strategy decision, we must make an initial diagnosis of who we are and the resources we have, as well as the situations we face in each harvest cycle; For this reason, we must ask ourselves the following questions:

For Internal Diagnosis:

As in any improvement reflection, we must do an internal exploration to determine where we stand, making an inventory of our strengths, abilities, and resources, as well as our weaknesses and shortcomings, to correct and mitigate the latter.

Through what I observe in all of Mexico, I have divided the type of producers that exist into 3 different groups, to propose a different marketing strategy for each group, since what they need, possibly others have already surpassed and your needs are different.

I have classified the groups into “Basic”, “Intermediate” and “Advanced” to easily identify them and make your query easier to see which one you are in.

Market Focus

It is the vision that we must have as a result of our internal and external diagnosis, showing a list of our strengths and weaknesses within the market, as well as the characteristics of the products that customers are demanding every day.

There are a large number of market strategies, which must be applied according to the type of producer we are, however, I have concentrated them in 4 groups that apply to different types of producers described in the first part already mentioned:

Types Of Marketing Strategies For Agriculture:

a) Growth

b) Consolidation

c) Integration

d) Positioning

There are three distribution channels: direct, short, and long. These three distribution channels can coexist in a single distribution strategy.

Direct Circuits

Direct channels refer to sales that are made directly from producer to consumer. This concerns different sectors of the economy from primary to tertiary: sale in a craftsman’s shop-workshop, sale at the farm, sale at markets, fairs and shows by producers, etc.

The main advantage of this direct circuit is that it eliminates all intermediaries and therefore ensures large margins for the producer, who is free to set his selling price. It also makes it possible to create a more personal relationship between producers and consumers, to make production methods known, to promote the know-how specific to the company. For the seller who is also the producer, this direct link with customers allows him in vivo to see what pleases customers, what they expect from the products, what are the obstacles to purchasing or, on the contrary, the triggers, etc.

There are also drawbacks to direct sales, the main one being the obligation to store their products at their place of work or in a room, which induces additional expenses linked to the real estate cost of storage and compulsory insurance.

Short Circuits

Short circuits are developing more and more. You have noticed that to escape the proliferation of intermediaries, small producers join forces in collectively managed points of sale. Whether it is AMAP, farmers’ markets, pop-up shops, or others, new short circuits are flourishing. They mingle with traditional short circuits such as restaurateurs, small shops, street vendors, etc. Here too, the idea is to limit the margins due to intermediaries.

The short circuit, therefore, has a unique intermediary between the producer and the consumer. It requires from the producer a storage capacity for its goods but also great reactivity for its deliveries to limit stock outs at points of sale.

In the context of sustainable development and local consumption, the short circuit is popular with consumers just like the direct circuit.

Long Circuits

Long circuits are those which involve more than one intermediary. Their major advantage is to free the producer from the costs associated with marketing and sales. It also makes it possible to reach customers who are otherwise inaccessible due to their geographic distance, their consumption habits, or other factors.

The disadvantages of long circuits are real. The question of the profit margin which returns to the producer is the problem mainly posed by this type of circuit. In the case of farmers, long circuits turn out to be catastrophic since the producer is not free to set the selling price to the end customer or even to the various intermediaries. Thus, many farmers, for lack of sufficient distribution channels, find themselves forced to sell at a loss when, at the same time, the major distribution brands and the food industry are earning significant margins.

Being in control of the distribution of its products and services is therefore essential for the vitality of a company.

Distribution Channels

There are different types of distribution channels: omnichannel, multi-channel, cross channel. Refer to our articles dedicated to distribution channels for more information.

Distribution Methods

Depending on the distribution strategy chosen by the company, distribution takes place on an intensive, exclusive, selective, or franchise basis. The distribution method must of course be consistent with the chosen distribution channel but also with the positioning of the product and the company to correspond to the commercial strategy.

Marketing Your Eggs In Short Circuits, What Rules Should Be Followed?

The marketing of laying hen eggs for direct sale to consumers, or local shops, can represent additional income and activity, or constitute a full-time professional activity. But there are a few rules to follow. We mainly detail here the rules relating to the marketing of eggs.