Suncrest Family Farms
organic duck eggs
Iowa State University
National Agri-Marketing Association
Iowa State’s NAMA Team, Cyclone Marketing,
is proud to present a comprehensive marketing
plan to the farm managers of Suncrest
Family Farms, a farm who holds exclusive
rights to Suncrest Family Farms products.
{
{
Audiencefi Profifif ile
{
{ Introduction
In this year of uniqueness and individuality, duck eggs top the charts of leading food trends. The “Alterna-egg” peaks at #3 in the
“Top 25 Food Trends for 2013” list, compiled by the world renowned Bon Appetit magazine1. Chefs appreciate the larger duck egg,
in comparison to the traditional chicken egg, for its superior cooking and baking qualities. In addition, duck eggs have a decadent,
creamy, and more distinct flavor helping restaurant chefs meet the demand of today’s rich, bold flavor and brunch trends2.
Our client, Suncrest Family Farms of Elburn, IL, is a family farm proud to provide upscale dining establishments in the Chicago
metropolitan area with the only local source of USDA certified organic duck eggs. With quality as a top priority, upscale restaurants
prefer to source sustainably produced ingredients from local suppliers. Currently, Suncrest Family Farms produces and supplies organic
duck meat to these restaurants and, with Cyclone Marketing’s assistance, they are ready to launch their new duck egg enterprise.
Marketing Strategy
Suncrest Family Farms’ marketing efforts will educate restaurant chefs, build brand awareness and provide ongoing sales
sustainability for this new duck egg product. Marketing tactics will focus on helping customer restaurants promote, use, and
sell local and organic Suncrest Family Farms duck eggs.
Analysis
{
{ Market
Industry Trends
The awareness of duck eggs for consumption has increased during 2014, rising approximately 1.5% or by 2.4 million eggs3. The Institute
of Food Technology (IFT) attributes this rise to “a repositioned palate”, one which prefers an upscale eating experience with fresh,
distinct, and bold flavors- like duck eggs. The demand for dishes that meet this need has doubled in the last three years4. Currently
over 8% of all eggs being consumed are duck eggs5.
Along with the growing trend for new and unique foods,
upscale dining establishments are seeing the number of
brunch diner’s increase. Placing 6th on the Food Channel’s
2013 Top Food Trends list, brunch is a meal created by chefs to
explore innovative recipes and new ingredients4. According to
the Chicago Tribune, the number of Chicagoland restaurants
serving brunch has increased by 15% in recent years6. With
brunch trending as a “new” and sophisticated meal, many
restaurants are looking for innovative ingredients to integrate
into their dishes. Consumers are demanding classic and
contemporary dishes during brunch with 53% wanting to see
creative egg dishes7. Brunch is the ideal niche for the creamy,
versatile duck egg.
1. Kickstarting new food concepts
2. Smoked foods and beverages
3. High-end specialty bakery
4. European-style prix-fize
5. Supermarket concierge
6. Brunch- the new fourth meal
7. Seasonal items for all seasons
8. Cooking with tea
9. Comfort food with an ethnic accent
10. Smaller portions
Market research indicates chefs are focused on sourcing ingredients that are local and fresh. Survey results reported by the National
Restaurant Association indicate that locally sourced meats and produce were among the top menu trends in 2013. In addition, farm
branded items ranked #1 for ingredient trends on the 2013 Food Trends: What’s Hot at Restaurants list by U.S. News8. The number
of local, organic ingredients on menus has grown by 73% over the last four years9. Surveys conducted by Cyclone Marketing also
indicated upscale Chicagoland restaurants are using 30-95% locally sourced foods on their menus. Today, there are over 30 Chicagoland
restaurants that are certified organic, according to the Green Chicago Restaurant Coalition. Chefs buy locally grown, organic foods for
their perceived quality and freshness, to meet customer requests, for access to unique products, and to support local businesses10.
Local foods are more difficult for consumers to find than mainstream food due to seasonal constraints, limited accessibility, and limited
awareness. Suncrest Family Farms plans to capitalize on these constraints by providing a consistent supply of duck eggs to a currently
underserved Chicagoland market.
Market Potential
The vast majority of duck egg consumption today is occurring within the restaurant industry. The market potential for Suncrest Family
Farms lies in the Chicagoland’s upscale restaurant’s demand for a consistent source of local, USDA certified organic duck eggs to utilize
in their unique dishes. In the Chicagoland area, there are over 7,000 restaurants11. We have identified the total market size to be
545 restaurants in the Chicagoland area currently sourcing over 30% of their menu from local ingredients, giving an annual duck egg
purchase potential of 850,000 eggs or $1,275,00012.
1. 25 Food Trends for 2013 - Bon Appétit. (n.d.). Bon Appétit Magazine.
2. Dowling, C. M. (2013, August 29). Duck Eggs vs. Chicken Eggs. Escoffier International Culinary Academy
3. Messuri Family Farm LLC. (n.d.). Messuri Family Farm LLC.
4. “Top Ten Food Trends for 2013.” The Food Channel. N.p., n.d. Web. 14 Oct. 2013.
5. Metzer, John. “The Advantages of Ducks and Thier Eggs.” American Livestock Breeds Conservancy 29.3
6. Tuttle, B. (2011, April 18). Is Brunch the New Dinner? Retrieved from Time: Business & Money
7. Stoessel, E. (2013, May 13). Restaurant Hospitality. Brunch, “America’s Pastime”
8. Haupt, A. (n.d.). 2013 Food Trends: What’s Hot at Restaurants? Retrieved from U.S. News
9. Local Government Support for Local Food Systems. The Local Food System.
10. Local Food Systems: Concepts, Impacts, & Issues. Washington, D.C.: U.S. Dept. of Ag Economic Research
11. Local Eats. (2013, November 25). Chicago, IL restaurants.
12. “America’s Best Cities for Foodies.” Travel + Leisure. N.p., n.d. Web. 21 Nov. 2013.
1
Market
{
{ Target
Suncrest Family Farms’ target market will be upscale, Chicagoland restaurants.
This strategic decision was based on farm proximity and the Chicagoland’s
strong “foodie” culture. Travel & Leisure magazine recently ranked Chicago
as the 5th most popular city for foodies, while ranking the city 4th for the
number of upscale establishments12. Targeted restaurants in this region are
increasing their brunch hours and giving their chefs freedom to purchase
organic ingredients driven by consumer demands7. These upscale restaurants
attract young, educated professionals, who like to explore new dishes utilizing
local and unique products. A recent university study shows 50%+ of high-end
restaurant consumers are willing to pay up to a 30% premium for entrees
traveling fewer “food miles”13.
Restaurant Profil ile
Of the 545 Chicagoland restaurants currently sourcing local food items, 189
are labeled upscale dining establishments and 47 of these are currently
offering a brunch menu11. According to primary research data, restaurants
currently serving duck eggs order, on average, 3 to 5 dozen eggs/week. In year
one, Suncrest Family Farms will capture 16% of the market, or 30 restaurants.
Through marketing and sales efforts, we anticipate growth in years 2 and 3 to
60 and 80 restaurants, respectively.
# Restaurants
# Eggs/Week
(avg 48 eggs/restaurant/week)
# Eggs/
Year
Sales
$/Year
Year 1
30
1,440
74,880
$112,320
Year 2
60
2,880
149,760
$224,640
Year 3
80
3,840
199,680
$299,520
Profif ile
{
{ Competitor
When it comes to customer loyalty in sourcing
local foods, buyers purchase from multiple
suppliers based on product supply and
restaurant needs. Chicagoland’s restaurant
market has traditionally secured its duck eggs
through small producers who have limited
supply. Suncrest Family Farms will be the
only weekly supplier of local, USDA certified
organic duck eggs.
*Amish Healthy Foods, a grocery store in Chicago,
does not raise its own eggs but purchases them
from farms in IL and IN and re-sells them in its store.
Analysis
{
{ SWOT
Targeted restaurants for Suncrest Family Farms
currently offer duck eggs on seasonal menus or
as menu specials due to an inconsistent supply
of eggs from competitors. Executive chefs of
these restaurants:
• Make purchasing decisions with unique
menu items in mind
• Utilize 30%+ locally sourced, organic products
• Have menus based on seasonal supply
constraints
• Source food products from multiple providers
Their menus are geared to the sophisticated
tastes of their above average income clientele.
Consumers at these customer restaurants
are concerned with sustainability and food
production practices of ingredients.
Suncrest Family Farms
Elburn, IL
Price
Supply
Housing
$18/doz.
Year
Round
Free-Range
USDA cert.
organic
Weekly
Free-Range
None
Pick-Up
Free-Range
All-Natural
Weekly
All-Natural
Fri./Sat.
only
None
Mail
Amish Healthy Foods*
$11.50/doz. Seasonal
Chicago, IL
Slagel Family Farm
Fairbury, IL
$15/doz.
Seasonal
Swan Creek Farms
Colon, MI
$14/doz.
Seasonal Confinement
Metzer Farms
Gonzales, CA
$21.20/doz. Seasonal Confinement
STRENGTHS
WEAKNESSES
•
•
•
•
•
•
•
•
•
USDA Certified Organic
Local - within 50 miles of customer restaurants
Production methods support year round, consistent supply
Weekly delivery
Existing relationship established with duck meat customers
Limited brand awareness of duck eggs for consumption
Premium priced
Fragile product resulting in higher potential for product loss
Supply dependent on natural factors
OPPORTUNITIES
THREATS
•
•
•
•
•
•
•
Fast growing local and organic niche product movement
Growing consumption of duck eggs
Limited and inconsistent competitive supply
Growing brunch trend
Certification Delivery
Limited duck egg usage and preparation knowledge
Possibility of restaurant menu seasonality limitations
Pre-established competitor relationships
13. Ortiz, Allan. Customers‟ Willingness to Pay Premium for Locally Sourced Menu Items. Tech. Iowa State University, 2010. Web. 20 Nov. 2013.
2
Proposition
{
{ Business
Suncrest Family Farms will produce USDA certified organic duck eggs at their farms located near Elburn, IL. Their special artificially lit
facilities feature cage-free barns with attached open range land, allowing for free-range egg production.
Stategy Statement
Suncrest Family Farms will provide upscale Chicagoland restaurants with a consistent year-round supply of local, USDA certified
organic duck eggs, allowing them to provide more unique and decadent dishes on their menus.
Key Planning Assumptions
1.
2.
3.
4.
5.
Suncrest Family Farms is the only local source for USDA certified organic, cage-free duck eggs to upscale Chicagoland restaurants.
Local farm products will remain a top trend for ingredients sourcing among restaurants.
Restaurants will continue to pay (up to) a 30% premium for locally sourced, organic foods.
Suncrest Family Farms will produce a sufficient, consistent year-round supply of duck eggs to meet annual forecasted sales demand.
Duck egg consumption will continue to rise with the increasing demand for unique and bold ingredients in upscale dining entrees.
Goals & Objectives
1. To maintain 95% customer satisfaction among targeted chef audience, while striving for 100%.
2. To reach gross sales goal of $250,000 by the end of year 3.
3. To generate 20% profit margin by year 3.
Plan
{
{ Action
Product Positioning
• Local, organic
• Elburn, IL
• Cage-free artificially lit
barns
• Year-round production
• Upscale Chicago
restaurants
• For specialized menus
Place
Price
Packaging
• Sold direct from Suncrest
Family Farms
• $18.00/dozen
• Premium priced product
• Year 1: 30 restaurants
• Year 2: 60 restaurants
• Year 3: 80 restaurants
• Only consistently
supplied, locally raised
and USDA certified
organic duck egg
• Delivered weekly
• Reusable wooden crates
• Biodegradable egg flats
• Crate=up to 5 dozen eggs
• Crates ensure safe
transporting while
remaining eco-friendly
Promotional Strategies
Business-to-Business Tactics
Sales Force - An experienced chef, on retainer with Suncrest Family Farms, will support customer restaurants through recipe and menu
development. This chef will also attend events throughout the year to promote the Suncrest Family Farms brand. Two additional sales
managers will ensure accurate product orders and delivery.
Advertising - Leveraging Suncrest Family Farms’ unique and local novelty, publicity will be both earned and
purchased in the Windy City Professional Culinarians monthly newsletter, which delivers food ideas and
solutions to chefs. In addition, advertising will be placed in Edible Chicago, a key regional publication which
appeals to both chefs and local foodies with a print reach of 135,000 Chicagoland residents annually.
Direct Mail & Email Blasts - Targeted chefs will receive direct mail to inform and invite them to upcoming Suncrest Family Farms events.
Prior to product launch, direct mail will be sent out six times in year one to spur chef’s interest in utilizing duck eggs on their menu.
Following the launch, invitations to tradeshows and events will be distributed. Suncrest Family Farms will follow up all direct mail
pieces with email blasts to ensure chefs’ awareness of upcoming Suncrest Family Farms events.
3
Plan Cont.
{
{ Action
Rustic Road Farm Tour - This on-the-farm tour will educate and expose chefs and their staff to how
Suncrest Family Farms raises their duck eggs, while helping to build brand awareness. The event
will provide a setting for collaborative dialogue and learning, while chefs tour local partnering farms
to see pork, beef and produce production, concluding at Suncrest Family Farms where a current
customer chef will prepare a dinner showcasing ducks eggs and local foods. Four tours, 20-30
participants each, will be hosted throughout the year.
Trade Organization Sponsorship - Suncrest Family Farms will sponsor the Green Chicago Restaurant Coalition and the Windy City
Professional Culinarians. Each of these organizations support local chefs and sustainable practices, while also promoting sponsor
company products to their culinary members.
Website & Social Media - The Suncrest Family Farms website will provide information on the production of duck eggs with images and
video content from the farm’s facilities. Social media will be utilized to facilitate conversations around local food sourcing, upcoming
food trends and recipes.
Check Please! Farm-to-Table Festival - During year 3, Suncrest Family Farms will be the site location
of Check, Please!, Chicago’s favorite restaurant television show, and Edible magazine’s Farm to Table
Festival. This event brings local producers, chefs, and foodie bloggers together to experience foods
prepared by renowned chefs featuring duck eggs and other local products. This event will provide an
outstanding promotional stage for Suncrest Family Farms, at a minimal opportunity cost.
Business-to-Consumer Tactics
Good Food Festival - With nearly 5,000 attendees, the Good Food Festival is a celebration and conference
for local producers, food connoisseurs, chefs, and key media outlets. In years 2 and 3, Suncrest Family
Farms will take advantage of the demonstration kitchens at the tradeshow to host the “Suncrest Chopped
Contest”. This chef cooking competition will require contestants to create unique and skilled dishes
using duck eggs and duck meat, with the winner being awarded the soon to be coveted Golden Egg
Award. In addition to the conference, Suncrest Family Farms will also be a named sponsor of the popular
conference-ending bash Localicious, which brings together farmers, chefs and consumers to celebrate local
and sustainable food. This sponsorship will allow them to host the Midnight Omelet Feed, introducing
attendees to the rich and decadent taste of duck eggs.
Green City Market - A presence at this Lincoln Park farmers market, targeted at local chefs, restaurateurs
and foodies from the Chicago metropolitan area, will help Suncrest Family Farms build brand awareness
through an additional sales outlet for their surplus eggs. Once a month, a Suncrest Family Farms customer
chef will be invited to prepare a duck egg dish to be sold during the market. The food item will both help
promote Suncrest Family Farms duck eggs and our partnering restaurant.
Online Communication - Communicating online will make consumers aware of duck eggs and educate them on how and where
Chicago’s local, certified organic duck eggs are produced. To peak the interest of consumers to duck egg dishes at local restaurants, a
Pinterest page, dedicated to using duck eggs in specialty recipes, will be utilized. Facebook and Twitter content will be created to inform
customers of upcoming events.
• Begin conversations with
target restaurants
• Launch webpage
• Launch social media platform
• Trade association
memberships
Feb.
• Direct mail campaigns begin
• Trade media advertising
campaign begins
March
• Launch at Good Food Festival
• Email blasts
• Green City Market
• Rustic Road Farm Tour
• Good Food FestivalChopped Contest &
Localicious Event
• Green City Market
• Trade media advertising
• Social Media
• Direct mail
• Trade association
memberships
Year 3
Jan.
Year 2
Year 1
Promotions Timeline
• Check Please! Farm to Table
event host
• Rustic Road Farm Tour
• Good Food Festival - Chopped
Contest & Localicious event
sponsor
• Green City Market
• Trade media advertising
• Social Media
• Direct mail
• Trade Association
memberships
4
{
Sales
# of Eggs/Year
# of Dozen of Eggs
Price/Dozen Eggs
Gross Sales
Product Loss
Operating Costs
Costs of Goods Sold
Net Sales
Expenses
Sales Representatives
Executive Chef
Creative Development**
Trade Media
Direct Mail
Rustic Road Tour*
Memberships*
Check Please!
Good Food Fest*
Green City Market*
Multi-Media
Monitoring & Measuring
Total Marketing Expenses
Net Profit
Profit Margin
Year 1
Year 2
74,880
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
{ Monitoring
6,240
18.00
112,320
2,246
26,250
29,689
54,135.00
Year 1
35,000
20,000
10,000
3,300
765
---875
---2,318
700
1,000
2,246.00
76,204.00
(22,069.00)
-20%
Year 3
149,760
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
12,480
18.00
224,640
4,493
52,500
45,607
122,040.00
Year 2
52,500
20,000
15,000
2,500
900
975
875
---3,183
700
---4,493.00
101,126.00
20,914.00
9%
& Measuring
199,680
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
16,640
18.00
299,520
5,990
70,000
56,096
167,434.00
Year 3
54,500
20,000
15,000
900
1,080
975
875
750
5,695
700
---5,990.00
106,465.00
60,969.00
20%
{
{ Financials
Cost of Production Breakdown
YR 1 $.75/egg
YR 2 $.65/egg
YR 3 $.63/egg
COGS
Product Loss
4.1%
Operating Costs
47%
Packaging
1%
Transportation
7%
Labor
33%
Feed
59%
* Marketing strategies cost-shared with the farm’s duck meat
business.
**Creative Development - content generation and design for
direct mail, e-mail, tradeshows, magazine advertising, etc.
Monitoring and measuring efforts have been put in place to evaluate product performance relative to pre-established business goals.
Contingency planning has been created to evaluate performance in regards to customer satisfaction, profit margin, and sales goals.
Customer Satisfaction
Profit Margin
Sales
Goals
Achieve 95% Customer Satisfaction
Generate 20% Profit Margin by year 3 Sales of $250,000 by end of year 3
Means of
Analysis
Monitor feedback on website and all
social media platforms
Analyze monthly financial reports and Analyze monthly and quarterly sales
driving factors affecting profit margin reports against target goals
Monthly dialog with sales reps
Conduct bi-annual online surveys
Goals
Exceeded
Develop customer testimonials
and select key chefs to highlight in
marketing tactics, while maintaining
successful strategies
Expand customer base while
maximizing profit potential by
monitoring sales and expenses
Maintain optimum production levels
to sustain current sales and invest
excess profits back into the business
Goals
Less Than
Exceeded
Target problem areas and improve
areas of weakness
Address inefficiencies in expenses to
determine areas for restructuring
Evaluate individual restaurant sales
and reconsider target market
Reevaluate pricing structure to gain
needed margins
Evaluate individual sales rep numbers
and provide more training if needed
{
{ Conclusion
As upscale restaurant chefs in the Chicagoland area demand more local, organic and sustainable ingredients, Cyclone Marketing will
strategically position Suncrest Family Farms’ ducks eggs to capitalize on this opportunity. Through a select fusion of marketing tactics,
Suncrest Family Farms will establish itself as the Chicagoland restaurant industry’s most trusted and consistent source of local, USDA
certified organic duck eggs.
5
Iowa State University
National Agri-Marketing Association
Justin DeBower
Kristen Dierickx
Dacia Dykstra
Jennifer Elliott
Emily Flory
Kelley Glanz
Courtney Harder
Alicia Humphrey
Zak Kerr
Andrew Luzum
Advisors: Stacey Noe & Carly Cummings
Donna McCune
Emily Olson
Beth Pleggenkuhle
Marcie Stevenson
Logan Worden