Friendly Farm

Friendly Farm has decided that it would like to market a dry-mix type of their Raspberry Vinegarette Salad Dressing. It would be made (as all of their products) from all natural products, and be mixed at the consumer's home with vinegar and oil to make a complete dressing. This product would need to taste the same as their pre-mixed version, attractively packaged with their logo and easily sold by mail order as well as specialty market stores. You will be hired as a consultant to supply all of the needed information from product development to distribution and marketing.

The Company

Friendly Farms is a small owner run and operated company located in a small town in rural central Pennsylvania, selling all natural food products to local customers through their farm stand. Fred Friendly and his wife Helen, produce and market all of their own products made from ingredients found on their own land. Sales for 1996 were $8000 from their food products which they were hoping to expand.

Situation Analysis

For the past ten years the sales of home-made food products have helped to augment the income of the Friendly's family farm. Over the first 8 years, the sales had been steadily growing until they stalled at around the $8000 per year mark. With the rising cost of running the family farm, the Taits were looking to increase the income from their food product line.

Demographics

The main users of the food product line were local people from the surrounding area who traveled past the farm on a regular basis or those from the larger surrounding towns who would buy the products as gifts on a seasonal basis. The current products were well liked by the customers but the distribution was rather limited and the product line needed to be expanded into an easily distributed product that was based on the already established line.

PRODUCT DEVELOPMENT

First the dressing needed to be fully developed, including a full range of sensory testing and techniques. These techniques may include: Objective testing, Preference testing and Sensory analysis considerations. After the initial sensory testing, then the shelf-life of the dressing needed to be evaluated. Decisions needed to be made as to the assessment criteria, and conditions for testing. Product integrity was then considered. Next test marketing was done. A test market was decided on along with the where, when and how to market the new product. The results were evaluated and it was decided that conditions were favorable for introduction of the product.

Packaging and Graphics

The new product would bear the name and logo of the already established line of food products that had been around for a number of years and enjoyed a good deal of customer loyalty. The package would need to be easily shippable at a low cost.

Marketing Objectives

Obtain an increase of overall product distribution of 10% without a cut-in of more than 2% of their other products. Produce a quality dressing to maintain the image of the Friendly Farm products. Produce and distribute the product at a price no more than 50% higher than that of good seasons, a well known national brand.

Marketing Strategy

1. Build the dressing identity on the Friendly Farms established reputation.
2. Introduce the dressing to specialty stores in the local area.
3. Concentrate first year sales on the mail order sector.

Advertising Objectives and Strategies

1. Position the dressing as a premium product similar to the food products already sold at the local farm stand.
2. Obtain a 50% share of local consumer awareness.
3. Build on the Friendly Farm Name.
4. Use Newspapers and Radio as the key mediums.