How to Develop a Marketing Plan for Agricultural Products

A marketing plan is a strategic document that outlines proposed actions or steps to achieve business objectives within a specific period. This plan helps focus efforts on maximizing profits for an agricultural business, clearly defining the product or service offered, customers and competitors, as well as strategies to attract and retain customers (1). In the agricultural sector, the plan's purpose is to understand the local market—its opportunities and limitations—and coordinate practical activities (production, packaging, distribution, and promotion) to connect producers' supply with consumers' needs. A good plan allows for anticipating market changes and leveraging local niches (e.g., healthy consumption trends, demand for fresh or organic products), while aligning business goals with the reality of the farm or enterprise.

Situation Analysis

Before defining strategies, a comprehensive diagnosis of the environment and the business must be conducted. This includes analyzing:

• Product: Describe the characteristics and quality of crops or livestock products. Identify differentiating attributes (e.g., variety, flavor, organic crops, freshness, artisanal processing). Evaluate the state of production (volume, seasonality, capacity) and how the product meets consumer needs.

• External Environment: Examine economic, climatic, and social factors affecting the business: input prices, local regulations, agro-climatic conditions, food trends (e.g., preference for healthy or local), infrastructure availability. These factors are generally uncontrollable but offer opportunities (e.g., agricultural subsidies) or threats (e.g., droughts).

• Competition: Identify other producers or distributors with similar offerings. Analyze their strengths and weaknesses: what do their direct competitors offer (quality, presentation, price)? How do customers perceive these products? Understanding the competition helps identify market gaps (threats and opportunities) and define competitive advantages. A well-crafted marketing plan “helps clearly define the product offered, identify customers and competitors, [and] outline a strategy to attract new customers and retain existing ones” (1).

• Local Consumer: Profile of the end customer or intermediary in the local market: demographics (age, socioeconomic level, occupation), purchasing habits, preferences (price, quality, product origin). For example, in an urban area, there might be growing demand for organic products or special varieties, while in rural areas, customers might be other farms or cooperatives. Knowing the consumer helps focus efforts: offering value to that specific segment or target market.

This situational analysis (SWOT) allows answering key questions (What do we sell? To whom? How and where? What added value do we offer?) (2, 3) and forms the basis for subsequent strategies.

Defining Marketing Objectives

Once the context is understood, clear, realistic, and measurable marketing objectives are established. They should answer "what" and "how much" is to be achieved (e.g., increase sales, gain market share, introduce the product into new channels, improve image). Common examples: increase sales by 10% annually, sell a certain additional volume of boxes, acquire X new customers, participate in Y local fairs. It is essential that objectives are specific and quantifiable—in revenue, units, or market share—to measure success (4, 5). It is recommended to limit the number of objectives to a few (fewer than four), focusing on those most relevant to the business (6). For example, an objective might be: "sell 20% of production directly to local consumers by year-end," or "secure a contract with two local distributors in the next semester." Setting deadlines (e.g., quarterly or annually) helps maintain a temporal focus.

Market Segmentation and Target Audience

With clear objectives, the next step is to segment the market. Segmentation divides potential customers into smaller groups with similar characteristics and needs (7). For example, a producer might segment by location (urban vs. rural areas), by consumer type (families, restaurants, natural food stores), or by behavior (organic product seekers, price-sensitive buyers). Once segments are defined, a target market (target audience) is chosen: the group with the greatest purchasing potential and affinity with the product. For instance, the target market could be "middle-class households interested in healthy food" or "local gourmet stores seeking specialty products." Directing strategies to this specific group (instead of the total market) allows for better resource allocation and tailored offerings. In summary, first segment the market and then select the target to which the marketing plan will be directed.

Marketing Strategies (4 P's)

In the next stage, the strategies for the 4 P's of marketing (Product, Price, Place, and Promotion) are defined, adapted to the local context:

• Product: Detail what will be offered. For agricultural products, consider variety, presentation, and packaging. For example, define whether the product will be "immediate freshness" (harvested and sold the same day) or processed (preserves, honey, etc.), and design the packaging accordingly. The packaging (box, basket, bundle) not only protects the product but can also be a means of promotion. It is suggested to include informative labels about the product (origin, variety, harvest date) or quality/reputation seals. For instance, obtaining certifications like designations of origin, organic seals, or good agricultural practices can position the product against competitors (8). These denominations are “quality seals that help position certain products” and are endorsed by official bodies, ensuring additional quality standards (8). When planning the product, also consider sustainability aspects: ecological labeling, biodegradable packaging, and materials that highlight added value (e.g., "locally grown" or "fair trade").

• Price: Establish the pricing strategy based on production costs and the customer's perceived value. You can use an added price (e.g., cost plus a fixed margin) or adjust seasonally (higher seasonal price during periods of low supply). A price relative to the market can also be set (above, equal to, or below the local average). In any case, research current prices that consumers would be willing to pay and prices practiced by competitors. It is advisable to "know what prices customers would be willing to pay and what the competitors' selling prices are" (9). For example, plan to harvest short-season products when local supply is limited to achieve higher prices (10). Be transparent with consumers about what the price includes (e.g., local brand value, freshness, sustainability).

• Place (Distribution): Define distribution channels: how and where products will reach the final consumer. In local markets, direct channels or those with few intermediaries are often used. For example, you can sell directly to consumers at farmers' markets, local fairs, or on-farm sales (including models like CSA or subscription kits). Other direct options are phone/internet orders with home delivery, and sales at roadside stands. If opting for an indirect channel, establish agreements with intermediaries: local retailers, distributors, or cooperatives that sell your product in stores, small supermarkets, or restaurants. Each channel determines logistical requirements: e.g., selling at fairs implies thinking about robust packaging; selling in stores may require individual retail packaging. In summary, choose the channels that best connect with the target customer. The plan should detail whether sales will be "direct to the end consumer (direct marketing)—e.g., farmers' markets, online sales, CSA, home delivery, etc.—or indirect through wholesalers/retailers" (11).

• Promotion: Design actions to publicize the product and persuade customers. This includes both traditional media (brochures, posters, local radio, in-store demonstrations) and digital ones. For example, leverage agricultural fairs and community events for samples and tastings. In digital media, use social networks (Facebook, Instagram, WhatsApp) to showcase the farm's story and post offers or fresh harvest photos. A simple website or blog with company information (history, sustainable practices) reinforces brand image. A sector guide indicates that various activities can be used: “mass media (radio, TV, newspapers, billboards…), direct mail, personal contact, trade associations, and social media” (12). As a tip, social media is a low-cost promotion method with good targeting capabilities. Don't forget alliances with distributors and fairs (as sponsors or common catalogs) to expand reach. In summary, detail specific promotional campaigns (e.g., a launch campaign on social media, a local radio ad) and the necessary resources.

Action Plan and Timeline

Develop a detailed action plan that translates strategies into concrete tasks. For example:

• Market research: local surveys or consultations with potential customers (months 1-2).

• Product development: brand/label design and packaging adaptations (months 2-4).

• Production: planting/harvesting calendar to ensure supply during high demand periods (months 3-12).

• Promotion: execution of campaigns (monthly fair sales, weekly social media posts, newsletter distribution).

• Distribution: establish agreements with retailers or points of sale (months 4-6) and plan home delivery routes (if applicable).

For each action, assign responsibilities, deadlines, and allocated resources. A simple matrix or Gantt chart (by quarter or month) helps visualize the sequence. For example, attendance dates for fairs are scheduled, and necessary promotional materials are defined. Ultimately, each marketing objective (e.g., "increase sales by 10%") should link to a set of specific activities in the timeline. This operational plan clarifies what will be done, when, and by whom during the year.

Estimated Budget

Accompany the timeline with a marketing budget. Estimate the costs of each activity: for example, material design and printing, fair stand rental, travel, free samples, local media advertising, web development, etc. Also consider the cost of staff time invested. The budget should reflect available and planned human and financial resources. As the marketing guide indicates, “it is good to estimate how much time and money you want to allocate to marketing activities” (13). For example, if you plan to participate in an agricultural fair, calculate transportation, space rental, and brochure production (13). Maintaining realism in the budget prevents deviations; adjust strategies or scope if resources are limited.

Evaluation and Control of Results

Establish how you will measure the plan's success. Define key performance indicators (KPIs): monthly sales, number of new customers, retention rate, website traffic, etc. Set quantitative targets for each indicator according to the initial objectives. Then, schedule periodic evaluations (e.g., quarterly) to compare execution with the set goals. If results differ from expectations, analyze the causes and adjust the plan: perhaps change a sales channel, refocus promotion, or modify prices. As a sector publication warns, the marketing plan “is not a static document in a changing world; it needs to be periodically reviewed” (3). In practice, a simple method is to review, at the end of each campaign (e.g., end of direct sales season), what worked and what didn't, documenting it for the next iteration of the plan.

Practical Tips for the Agricultural Sector

• Local fairs and markets: Take advantage of farmers' markets and producer markets for direct sales. These spaces eliminate intermediaries and allow the producer to receive fair payment for their work (14). Furthermore, they offer visibility: consumers connect with fresh and regional products (15, 16). For example, the Plaza Pinto Fair in Chile went from a monthly event to a weekly market due to high local demand for fresh produce (15). Register for permanent or itinerant fairs in your region, and prepare simple promotional materials (brochures, signs) that highlight the qualities of your products.

• Alliances and cooperatives: Collaborate with other producers to reduce costs (sharing transportation or points of sale) and expand available volume. Form networks or cooperatives to negotiate better contracts with distributors or exporters, or to jointly access services (transport, storage). Likewise, establish agreements with local distributors (stores, restaurants, hotels, institutional dining halls) that require regional supply; a cooperative package can be more attractive to them.

• Certifications and labeling: Obtain recognized certifications to distinguish your product (e.g., organic, Designation of Origin, Good Agricultural Practices). These quality assurances will inspire customer trust and open specialized channels (8). Also use informative labeling: indicate local origin, harvest date, expiration dates, nutritional value, or special attributes (pesticide-free). Clear and distinctive packaging helps differentiate, even in small markets.

• Innovation in packaging and presentation: Practical packaging attracts customers. For example, pre-portioned vegetable packs for families, or reusable containers. In local markets, highlight freshness with open packaging (baskets, trays) that allow visual inspection. Consider moderate preservation techniques (cooling or modified atmosphere) if competing in urban areas. Always think about packaging that tells the product's "story" (one or two field or farm graphics can emotionally connect with the consumer).

• Digital and low-cost promotion: Although the focus is local, don't underestimate online tools. Create social media profiles for your farm: post harvest photos, recipes using your products, or testimonials from satisfied customers. A simple website or a profile on local directory platforms can serve as a reference. Short videos (e.g., a farm tour) can go viral locally. Email or WhatsApp can be used to notify frequent customers about offers and keep them informed.

• Other innovative channels: Consider direct sales to organized consumers: for example, a CSA (Community Supported Agriculture) program where families pay a subscription and receive weekly products. Or sell through local virtual stores and home deliveries in the community. For producers with added value, participate in gastronomic fairs (showcooking, food flea markets) where chefs and specialized consumers buy quality products.

Practical Example

A real-world case is the experience of the Plaza Pinto Fair (Los Ángeles, Chile) (15). It began as a monthly summer activity, but its success prompted organizers to expand it first to every Friday in the summer and then weekly throughout the year (15). This growth reflects the high local market demand for fresh produce and the need for small farmers to have fair markets that value their work (14, 15). Cases like this illustrate that a practical marketing plan (stand design, local promotion, and customer loyalty) can enable a producer to transition from sporadic sales to a constant flow of income.

Sources: Self-developed based on agricultural marketing guides and studies (1, 7, 8, 13, 15) and articles on local experiences (15, 16). The proposed strategies aim to be applicable to small producers and agricultural entrepreneurs targeting local markets of conscious consumers and sustainable business relationships.

(1, 2, 3, 4, 5, 6, 9, 10, 11, 12, 13)FE978/FE978: Ocho Pasos para Desarrollar un Plan Simple de Mercadeo

https://edis.ifas.ufl.edu/publication/FE978

(7)REGISTRO DE FLUJO DE EFECTIVO

https://www.uprm.edu/agricultores-desventajados/wp-content/uploads/sites/413/2022/11/Presentacion-Estudio-del-Mercado-y-Plan-de-Ventas-de-Productos-Agricolas-2022.pdf

(8)Agromarketing: consejos prácticos para tu explotación - Agroptima

https://blog.agroptima.com/es/blog/agromarketing-consejos-practicos-explotacion/

(14, 15, 16) Ferias campesinas | La Tribuna

https://www.latribuna.cl/editorial/2025/01/30/ferias-campesinas.html