Aligning
Trends with Market Value:
Identifying value
To develop and market a
product, particularly a specialty product, you first identify what
is valuable to potential customers. Watching consumer trends helps
entrepreneurs to recognize current and future needs that a unique
product could fulfill.
Here are some consumer
trends which could impact North Dakota specialty products:
Quality
North Dakotans are known for their midwestern work ethic. It
is an ethic that translates into quality products and services of
all kinds. Most consumers want high quality. Specialty markets require
it. And consumers who want high quality will usually pay for it.
Western Theme
When it became fashionable to be "western," North Dakota gained
an advantage. People in America , even in some international markets,
view North Dakota as part of the "old west." They attribute to the
state the mystique and romance of the West. Products are enhanced
when they are associated with western value. If they come from genuine
"cowboy" country - flap-jacks or old wagon wheels, for example -
carry special value for discrete consumers.
The Country Theme
People living in hectic urban areas long for life in the country.
When packaged with the "country theme", North Dakota products represent
a simpler, more wholesome way of life that includes fresh air and
down-home friendliness. Urban consumers can satisfy their desires
for country living by touring the state and staying in rural bed-and-breakfast
homes or buying prairie-grown, dried wildflowers in a specialty
store in the city.
The Natural/Organic
Theme
Naturally grown products have an appeal in some specialty markets.
The fear of artificial and chemical additives drives consumers to
purchase organically produced food products. While the cost of producing
organically grown foods is usually higher, consumers who value the
benefits are willing to pay more. North Dakota has one of the largest
associations of organic food producers in the country.
Lean Beef
Though beef products remain a favorite of meat consumers, lean
beef has a special appeal when tied to the healthy living theme.
Grass-fed beef is leaner. Cattle raised on the thousands of acres
of grass land in North Dakota has special value for consumers. This
lean beef can be marketed successfully to them.
Ethnic Foods
North Dakota's heritage is reflected in the specialty ethnic
recipes handed down through the generations. Consumers across the
country have ethnic roots in our state. The distinctive flavors
of ethnic baked goods, main dishes and soups carry a unique value
to consumer taste buds tired of routine burgers and pizza.
These are just some of
the consumer trends which give North Dakota products a marketing advantage.
Specialty markets for North Dakota products - and the trends that
motivate them - are located outside of our state and our regional
borders. North Dakota customers may not pay a premium price for specialty
products, especially if they are accessible at home. But others may.
That is why it is so important to target value-added products where
the market is, namely, urban centers or international markets where
western, country, or other special features are viewed as unique.
Be aware that it is consumer
trends that drive these specialty markets. So it is essential to be
aware of trends as they develop and evolve. The emerging trends generate
successful ideas which can be turned into marketing and product development
strategies for North Dakota entrepreneurs.
The pieces of the marketing
puzzle
If you have an idea for
a value-added or specialty product, you need to do your marketing
homework in order to succeed. Before you invest time and money in
producing and marketing your product, complete the following steps:
Step 1. Identify your target
market.
-
Who are the people
that will find your product unique and appealing?
-
Are they characterized
by a specific age group? Gender? Income? Status?
-
Where do they live?
-
What consumer trends
indicate they will be interested in your product?
Step 2. Define your product.
Describe how it is unique, special, or different from similar products.
-
What competition will
you have in the marketplace?
-
How will the unique
features of your product help to sell it?
-
Is your type of product
hard to find? How available are similar products?
Step 3. Describe the distribution
and sales channels for similar products.
-
Where is the point
of sale for similar products? Is it the grocery store shelf, gourmet
food store, gift shop or mail order catalog?
-
How will you get the
product to the customer?
-
Are there ways of shortening
the sales and distribution channel?
-
What are the costs
of selling and distributing your product?
Step 4. Describe the competition.
-
How does your product
compare to similar products? Is it faster, cleaner, stronger,
more convenient, more beautiful, etc.?
-
How will the cost of
your product compare with others?
Step 5. Describe your goals.
-
What are the goals
you hope to accomplish with the development and sales of this
product?
-
What kind of income
do you intend to generate in the first year? The first five years?
-
Why are these goals
important to you?
Step 6. Develop a test
marketing budget and plan.
-
How will you test your
product with potential customers?
-
Where will you test
your product?
-
How will you analyze
the information obtained from testing your product?
-
What will it cost you
to test your product in the marketplace?
-
What financial resources
do you have to test your product?
-
What financial resources
will you reserve to develop the product and the business further
once you have tested it?
Get assistance
Once you have written answers
for the questions in steps 1&endash;6, you are ready to seek assistance
in the testing and further development of your product. There are
several resources for assistance at this stage.
-
North Dakota Department
of Agriculture (Marketing Division)
-
The Center for Innovation
and Business Development, University of North Dakota
-
North Dakota Department
of Economic Development and Finance
-
Small Business Development
Centers
-
Local and regional
economic development
Private marketing consultants
can also help you with market testing and market planning.
It is important to test
a new product effectively with the target market. Specialty products
are targeted to people with unique interests and needs. You must make
sure that the people you are targeting like the product and will buy
it. If your product meets specific needs, you have a good chance of
success. If not, you will have to redesign your product or rethink
your goals. This is the time to learn whether or not your product
will sell - before you invest additional money or time in its development
and marketing
Next
Chapter...
