Farmer level marketing: Case studies in the South Island of New Zealand: A dissertation submitted in partial fulfilment of the requirements for the Bachelor of Agriculture Science with Honours at Lincoln University

Abstract

The purpose of this study was to learn about how and why red meat farmers incorporate farm level marketing activities into their operations. The major themes examined were the motivational factors behind marketing involvement, personality attributes, the process by which opportunities are identified, how marketing strategies are implemented, the role of relationships, and the impacts and risk associated with the incorporation of advanced marketing strategies into the farming operation. The ultimate goal of this investigation was to gain insightful information that would be helpful to farmers contemplating a greater involvement in marketing at the farm level. Using a qualitative research case study approach, five farmers were interviewed. Participants were chosen based on their current or past demonstration of having incorporated advanced marketing strategies into their farming operation. Farmers had been motivated to become involved in marketing because of a combination of three factors: drive for greater economic returns, desire for greater control, and the urge for a novel challenge. Three further factors are closely linked to marketing involvement: entrepreneurship, a perception that marketing is a valuable business function, and a sense of personal competency in marketing. Opportunities for involvement in such activities were identified through informal environmental scanning and current business analysis. Farmers heavily relied on downstream supply chain partners to scan their environments, and this process often yielded significant information. Farmers were, therefore, proactive in the initiation and maintenance of such relationships. Internal analysis consisted of examining current product and current market outlets. Farmers viewed the end consumer as their primary customer, and held a focused view of their competition that appeared to be associated with the degree of product differentiation. All of the decisions in the marketing mix were made with end consumer requirements in mind, and the competitive position derived from these decisions was reinforced through the use of branding. Farmers' relationships with downstream supply chain partners were found to be critical in the initiation and management of the marketing strategy. The initiation of advanced marketing strategies had notable impacts on farmer operations. The most significant of these were intensification of capital requirements, reallocation of human resources, changed profitability and cashflow, and the transformation of product quality advantages into either greater economic returns or greater market share. Study participants viewed advanced marketing strategies as a source of risk; however all felt that it was manageable. A significant finding was the availability of traditional supply channels to act as a buffer for farmers' own marketing activities.