Marketing Research Event February 2007 Speech 020207a
Jake’s Organic Chicken Feed
1. Jake’s Organic Chicken Feed
Business Plan
Jake’s Organic Chicken Feed is a high quality, organic, locally based alternative to
conventional chicken feed. The organic grain base is unique in contrast to readily
available local commercial chicken food. The combination of its ingredients increases
chicken health and vitality leading to increased egg production, egg quality and improved
egg flavor. Jake’s is more expensive than conventional feed and at this time is dispersed
through individual sales via your garage in Lyons. One of the biggest obstacles to Jake’s
is the cost. Cost containment may be achieved by using a closer source, bundling with
another buyer, volume discounts, or other unknown opportunities. The other challenges
are inherent with any startup company, lack of name recognition, market share, contacts
and identity. There is no identity or advertising at this time. Due to exorbitant shipping
costs you need to have direct sales locally and commercial sales in outlaying areas.
Strengths
2. 1. Organic Product
2. Locally Based
3. Increased Chicken Benefits
4. Jill
There is not an available ORGANIC product available in a survey of local feed stores.
The Boulder market is an ideal place for backyard chicken growers as all of the local
cities now allow limited chicken coops. This will be your core market consumer as these
people are health conscious, have small flocks with limited feed needs and are able to pay
the additional price. Plus if you are only paying $10/month in feed costs- who cares??
Due to storage problems and rodent control most people will buy limited amounts
monthly. Your product can be a high status item. There is an increased awareness for
locally based product that has a local face attached to the item. The food product
increases chicken health and production producing a superior product. The owner, Jill
Jacobs, is a photogenic, poised, well-spoken young woman who will make a great
persona for the product.
Growth Needs
The product lacks visibility and has no sales outlets other than Jill’s garage. There is no
identity, advertising or contact info readily available. Price is high (100% more than
competition)
1. Increased visibility
a. Web page
1. Get a dot.com address through Go-Daddy ($20/ year), and get a web
page
b. Creation of an identity with
1. Print- cards, logos, mailers, handouts, and feed bags
c. Local involvement (increasing home chicken growing)
1. Web page tie-ins to local chicken info sites, schools, girl scouts,
d. Interviews with local produce orientated magazines
1. Luckily there are many here that we can contact and you will need to
become the voice of local backyard chickens
e. Direct sales of eggs to local high profile restaurants –this results in more press
3. 1. Pound the pavement
f. Tie-ins with Whole Foods
1. Whole Foods has a whole campaign geared towards local farmers.
There are also in store appearances that might result in shelf space.
f. Two chicken giveaways with food
1. At local farmer’s market booths you can give away baby
chickens, sell food and pass out future contact info. This builds in a future market. There
is also opportunity for profit connected with building chicken coops, (selling plans, kits,
contracting, commission)
Increased Sales
Jake’s needs to increase its local market share of sales. It is best to focus on local sales,
as shipping costs are unrealistic. This can be accomplished by
2. Increased direct sales by outreach to local growers
a. Contact at fairs, animal shows, farmer’s market
1. This will be your strongest contact the first year. There are multiple
county fairs here in Colorado that are easily reachable within a two-hour
drive, and held within a 3 week period in Aug. By targeting chicken show
days you can hit your target market of recreational growers that are able to
pay for your product. Load up your little red wagon, your son, feed and info
and go hit them.
b. Tie in’s to Urbanchicken.org, 4H, advertisements in selected rural church
bulletins.
3. Placement in conventional feed stores
The initial placement will be the biggest obstacle and you will probably have to
do consignment.
Jake’s is positioned in a great area that supports local farming and has the land area to do
it. The local population is highly educated, affluent and pro organic, and due to Whole
Foods training is conditioned to spending more for products. There is an increasing
movement to home yard farming and using local meets and produce. We have to make
home chicken growing cool.
Potential thoughts
How much do chicken houses cost? Is it possible to increase your business to a package
of giving them two chickens, selling them a pre made chicken house, and then selling
them chicken food for life? That way we create the market and a built in long-term
customer.
4. This is the logo, which will be used on feed bags, web site and business cards. The feed
bags are the limiting factor as they traditionally are burlap and for cost purposes a sticker
could be used and placed on them, versus printing. An ink stamp was planned with
contact info for the other side.