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Farmers Markets

Marketing Research and Strategy for Growing Sales Opportunities at Puget Sound Farmers Markets

 

 

 

Phase II

Phase III
Implementation
Evaluation

Opportunities
The time is ripe for expanding the audience for local farmers marekts and locally-grown and produced foods of all kinds.  The term 'locally-grown' is getting more attention than ever, with increasing concerns over food safety, health and nutrition, disappearing farmland, local economies, and a desire to connect with the local community and know the sources of food on a more personal level. 
 
Research is demonstrating that consumers respond favorably to the 'local' label and exhibit this by seeking out local foods at retail grocers and restaurants and by patronizing farmers markets.  According to a recent study by the Hartman Group, 74% of consumers say that labels designating 'locally-grown' are extremely or very influential in driving their food purchasing decisions; 88% believe that freshness is the key to health.  'Locally-grown produce' was recently ranked as the top trend for 2009 by the National Restaurant Association.
 
Buying locally provides direct support for farmers and helps strengthen the regional economy.  Direct sales provide growers with a greter percentage of the food dollar which increases farm viability and community health.  Buying locally also results in re-circulation ofmoney in the local economy, thereby supporting other community businesses.  A recent study by Sustainable Seattle found that purchasing locally resulted in significantly greater re-spending, 14-20% greater, than purchasing from non-local sources.  The Hartman Group found that 'communities, families and people behind the food are increasingly as important as the food itself when it comes to healthy, high-quality eating experiences.'  Thsi underscores continuing trends toward local, fresh and quality/authenticity occurring across the diversity of retail venues and positions farmers markets and other retail outlets that source that source locally to capture a greater share of consumers' shopping dollars.

Challenges
Despite growing enthusiasm, however, there are a number of real and perceived challenges that have kept the audience of ‘core’ consumers who regularly patronize farmers markets and shop for local foods in grocery stores from reaching significantly more consumers in the ‘mid-level’ or ‘2nd tier’ periphery.  Some of these include concerns about affordability, convenience, time, variety, quality, physical effort, food safety, and seasonality.
 
Cascade Harvest Coalition, working with Good Food Strategies, is undertaking the first comprehensive market research on opportunities and perceived challenges for expanding the customer base for locally-grown and produced food.  The goal of the ongoing project is to develop a strategic, concerted campaign to address and overcomet the 'triggers' that are putting a ceiling on the kinds and numbers of consumers who look for and buy locall grown foods.

 

Project Purpose
The benefits to producers of participating in farmers markets are well documented.  Sales at farmers markets allow producers to retain a greater proportion of the food dollar, allow farmers to differentiate their products in terms of quality and variety, respond to consumer preferences directly and develop a loyal customer base.  However, while consumer interest in buying locally is strong, only 7% of Washington consumers report regularly shopping at farmers markets.
What isn’t known is how to attract the broader potential customer base that appears to be interested in shopping at farmers markets, but does so infrequently.  This information is critically important to the continued success of our region’s farmers markets and the continued viability of area producers.
 
The primary purpose of this project is to build on the base of information gathered as part of our ongoing study to develop messages, tools and strategies directly targeted to addressing the special challenges and opportunities for farmers markets as a source for local food.  As proposed, this includes: 
  • conducting additional research into target consumer audiences;
  • identifying key marketing messages and effective marketing materials and outreach tactics;
  • developing recommendations for strategic marketing activities;
  • implementing and evaluating specific strategies at four proxy farmers markets;
  • providing co-op support for customized outreach opportunities for up to 25 additional farmers markets (with the number of markets participating determined by a sliding cost-share based on total vendor sales); and
  • conducting outreach on project results.

As a way to effectively utilize resources and develop strategies suitable for a wide variety of farmers markets, four proxy markets will be chosen to represent: large urban farmers markets in affluent neighborhoods; smaller urban markets in less affluent neighborhoods; farmers markets in rural communities; and suburban farmers markets.  It is intended that specific strategies developed as a result of this project can be tailored to fit the unique geographic/demographic aspects of most farmers markets in our region.

The results of the marketing research and strategy for Puget Sound farmers markets will also complement and help inform a larger three-year study recently begun by Washington State University looking at improving the participation of limited resource farmers at farmers markets, and identifying techniques for enhancing the benefits of markets for farmers and communities.
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Why Farmers Markets?
Increasingly, farmers markets are key components of vibrant communities throughout Washington and the United States.  Over the last 10 years, the number of farmers markets statewide has nearly doubled. There are currently 140 farmers markets in Washington, 102 or 73% are located in the Puget Sound region.  Farmers markets provide a number of benefits, not only for local producers, but for communities, the economy and the environment.

Farmers Markets are an important direct marketing channel for local farmers, allowing them to keep an estimated 80 cents of every dollar spent on food compared with an average of 20 cents of every dollar spent on food in other retail outlets.  In 2007, sales at Washington’s farmers markets totaled $55 million, an increase of 45% from $38 million in 2006.  Farmers markets also attract additional spending at neighboring businesses and attract new small businesses and jobs as well, creating a more resilient and vibrant local economy.

Farmers markets also provide access to fresh, nutritious food for more people, including low income families and seniors.  In 2008, approximately $1.4 million in Women, Infants and Children (WIC) vouchers, Senior Farmers Market Nutrition (SFMNP) vouchers, and Supplemental Nutrition Assistance Food Program (SNAP, formerly known as food stamps) were redeemed at farmers markets in Washington.  Local food banks, soup kitchens and shelters also benefit from receiving thousands of pounds of fresh, unsold produce each year.  In 2007, farmers markets in Seattle alone donated over 40,000 pounds of fresh produce to local food banks.

Farmers markets also provide great value for you and your family.  Produce at farmers markets is often less expensive than food at other retail outlets.  According to a study by Seattle University, produce at Seattle farmers markets was up to 20 cents per pound less than nearby food retailers. Food purchased at local farmers markets also travels shorter distances than most other food consumed in the US.  According to a survey by Farmers Market Today magazine, in 2008, more than 85% of farmers market vendors traveled fewer than 50 miles to sell at a farmers market and more than half traveled less than 20 miles.  Nationwide, food travels an average of 1,500 miles before reaching the final consumer. 

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Why this Project?
Clearly, farmers markets offer a wide range of benefits to local producers and communities.  However, farmers markets themselves can be challenging to sustain.  While total annual sales at farmers markets nationwide have increased, it has not been proportional to the increase in the number of markets.  Many markets struggle to attract and keep their customer base, provide the right mix of products, or fail for lack of publicity or poor operations.  Many new markets are unable to generate sufficient economic activity to sustain them.  According to a recent USDA survey of farmers market managers, the top three operational issues are: support for advertising and publicity; strategies for overcoming low customer attendance; and strategies for boosting vendor sales.

The purpose of this project is to address a critical and timely need for additional consumer research and targeted marketing strategies for Washington’s producers with direct sales at the State’s 140 farmers markets.  The primary goals of this project are to:

  • Increase consumer awareness and support for locally-grown and produced foods in general, and at farmers markets in particular; and
  • Increase marketing opportunities for local producers at farmers markets, resulting in increased sales for producers.
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Proxy Markets
Four farmers markets in the Puget Sound region have been selected to reflect a diversity of geographic and demographic characteristics with the intention that specific strategies developed for these markets can be tailored to fit the unique aspects of most farmers markets in our region.  The four markets chosen for study are: Anacortes Farmers Market, Crossroads Farmers Market (Bellevue), Phinney Farmers Market (Seattle), and Shelton Farmers Market.  Market profiles can be found by clicking the links below.

  Key Project Tasks

  • Identify attributes of target consumers for farmers markets, perceived challenges, opportunities and strategies to attract these consumers to expand and strengthen the customer base for the region’s farmers markets, with specific recommendations for addressing issues unique to the four proxy markets.
  • Provide strategic communications recommendations, including key messages, to help farmers market advocates broaden their customer base.
  • Provide an outreach tool kit with templates for materials and cost-effective outreach tools and tactics that farmers market advocates, managers and staff can individualize for their own particular audience.
  • Implement and evaluate a set of specific strategies at four proxy farmers markets and provide co-op support for customized outreach opportunities for additional farmers markets. 
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Who is the Tier 2/Non-Core Consumer?
Where do they buy their food?  A huge majority of consumers buy food most of the time at mainstream grocery stores.  They infrequently (or never) go to farmers markets.  These consumers are largely influenced by convenience and price when making food purchasing decisions, but they also express a desire to 'do the right thing.'

What does 'local' mean to them?  To most consumers, 'local' food means 'from the Northwest."  While core consumers may think of local as within 100 miles of Puget Sound, for many people this is too limited and specific a designation.  As well, conversations with non-core restaurants and retailers include wine, seafood and more under the 'local' umbrella, and this often encompasses Oregon and Alaska.

People will buy local if it is easy.  Most consumers express a willingness to choose local produce if they are aware of where to find it, and how to distinguish it from non-local items.  Almost all survey respondents said that they look for local products either 'Ocassionally', 'About half the time,' or 'Often', as long as it is convenient.

Key reasons to buy local.  'Fresh' and 'Local' are terms that resonate with non-core consumers; with fresh more important than local or organic.  2nd tier consumers want to support the local economy and local farmers, and believe local foods are often fresher and taste better.
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Key Factors Influencing Food Buying choices
Convenience.  Convenience is paramount for non-core consumers - people generally choose grocery stores taht are in their neighborhood.  Respondents chose 'Close to home' more than any other reason when asked why they shop at one store more than at others.

Availability.  Another essential factor was 'Good availability of products' that are important to them.  Since several different grocery stores often populate the same area, therefore, consumers can be swayed to choose one over the other when given information regarding what is offered by each establishment. Consumers are unaware that any local produce is available at the grocery store; most think that they have to shop at farmers markets to find it.  Most people say that what keeps them from buyig more local products is that they were 'hard to find' or that they 'can't tell what is and what is not local.' Fewer replied that it is because local products are 'too expensive' or 'poor quality.'

Where do Tier 2 consumers get their information?  Convenience is also related to the amount of effort required to gather information and educate oneself about food.  According to the surveys, the most common sources for food-related information are the Internet (nutrition website, food safety alerts, etc), in-store displays/promotions/signage, and word of mouth.

What could make it easier to buy local?  Shoppers are interested in easy-to-find, accessible directions pointing them to what is local.  Most propose clearer labeling of local products in sotres.

Price.  Not surprisingly, price follows convenience as the most important factor for shoppers when deciding where to shop and what to buy.  While all consumers surveyed said that they would buy more local produce if it was available and obviously marked as local, several qualified this willingness with a statement similar to this one froma middle-aged woman: 'I would try to, but if the price was too much, then that would be a factor.'
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Why Don't 2nd Tier Consumers Shop at Farmers Markets?
Convenience/Accessibility.  Respondents consistently say they don't shop at farmers markets becasue it is not convenient to their shopping needs, citing several reasons: inconveneint days/times; inadequate selection; and inconvenient parking. 

Price.  A slight majority of consumers believe that farmers markets sell food at a higher price than grocery stores - in the online survey and several in the written/oral survey stated that the potential that farmers markets will be 'too expensive' or 'cost more' is at least somewhat of a barrier to shopping at them more often.
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III. Implementation

Special promotional "Fresh Bucks" coupons will be available at local community businesses this fall for use at the Anacortes, Phinney and Shelton Farmers Markets as part of efforts to increase each market's customer base and increase sales to local farmers. The $2 coupons can be used to purchase food items that can include a variety of fresh, local foods such as vegetables, fruit, cheese and other dairy products, meats and fish.

Participating markets, businesses and redemption dates:
Anacortes Farmers Market
Saturdays, 9am-2pm, September 26 and November 21
Partnering buisnesses: Adrift Restaurant, Penguin Coffee, and Gothberg Farms

Shelton Farmers Market
Saturday September 26, 9 am-2 pm
Partnering businesses: Sage Book Store, Enchanted Garden, Lynch Creek Floral, Sharon's Garden Center, Shelton Athletic Club, Kid's Castle, Curves, Balance Day Spa, Las Palmas and Kaleidoscope Massage Therapy

Phinney Neighborhood Farmers Market
Fridays, 3pm-7pm September 25 through end of season
Partnering businesses: Whole Life Yoga, Greenwood True Value Hardware, Makeda Coffee, Santoro's Books, St. John's Catholic School, Greenwood Senior Center, Greenwood Sip & Ship, and Island Video

“Like all businesses in this down economy, our farmers markets are feeling the pinch as consumers spend fewer dollars,” said Chris Curtis of the Seattle Neighborhood Farmers Market Alliance.  Curtis added, “For the first time in years, some farmers are returning home after market day with unsold produce and lower sales.”  

Despite overall growth in the number of farmers markets in our region over the past 10 years, farmers and the local organizations who sponsor farmers markets are struggling to sustain themselves.  Mary Embleton, director of the Cascade Harvest Coalition, commented “We’re still losing farmland to development at a rapid rate, and new farmers are facing high costs to buy or lease land and grow food.  We’re so fortunate in the Puget Sound area to be surrounded by some of the freshest, most delicious local foods available anywhere; hopefully this coupon program will help entice more consumers to learn how shopping at local farmers markets benefits our health, builds community, keeps dollars in our local economy, and supports local farmers.

”According to recent public opinion research commissioned by King County, most consumers indicated a willingness to choose local produce if they were aware of where to find it and how to distinguish it from non-local items. According to the survey of 450 residents, 85% of those surveyed said they had purchased food produced in King County more than once a year.  The most important considerations in their decision to purchase food from local farms included: “freshness,” “safety,” “local farmers practices that protect the environment, including fish, wildlife and water quality,” “wanting to support local farmers,” the environmental benefits of purchasing locally.”  “A common perception is that shopping at farmers markets is more expensive, and in this economy that perception is hurting our local farmers,” added Embleton.  “In fact, informal cost comparison studies have shown that when buying fresh, in season, fruits and vegetables, your local farmers market is often the best bang for your buck.”

Evaluation

Evaluation methods are being developed for each of the marketing and outreach strategies.  For the Fresh Bucks, a consumer survey has been developed and will be given to farmers markets customers as they redeem their coupons.  The completed surveys will provide informaton on shopping habits and will provide the basis for further marketing and promotion efforts for the region's farmers markets and producers.