Slides from a workshop presented by the Ennovation Center in Independence, Missouri. The program features how to market, brand and promote your specialty food business.

1. Get Your Business Cookin’Workshop March 24th, 2011

3. Ennovation Center Update

4. 3 Guest Speakers Tonight

5. Valerie Jennings – Hippie Chow

6. Susan Henson – Missouri Small Business & Development Center

7. Sara Freetly Grubb – Candid MarketingThis is a very open, informal discussion so feel free to ask questions during the presentations.

9. Currently 11 kitchen incubator clients fully approved and operating.

10. Over 50 clients who have made application and are in various stages of licensing and permitting.

11. Independence School District has completed their move into the building.

13. Find taste testers

14. Figure out your price

15. Learn to advertise on the cheap

17. My Background Industry Profile Pricing Top Ten Mistakes Agenda

18. Industry Profile

19. KNOW YOUR COGS!!! Include raw materials, packaging, production costs and labor. Gross Profit = Selling Price – COGS Gross Margin = Gross Profit / Selling Price Wholesale gross margin should be 40-60% Pricing - Wholesale

20. If COGS = $2.00 and gross margin is 50%, then selling price should be $4.00 $4.00 selling price - $2.00 COGS = $2.00 gross profit $2.00 gross profit / $4.00 selling price = 50% gross margin Rule of thumb: double COGS to determine wholesale price Pricing – Wholesale (cont.)

21. Retailer margins will vary May range 25-60%; 30-40% on average If wholesale price is $4.00 and retailer margin is 35%, retail price will be $6.15 $6.15 selling price - $4.00 COGS = $2.15 gross profit $2.15 gross profit / $6.15 selling price = 35% gross margin Pricing - Retail

22. Not knowing what it will all cost. Not understanding the competition. Making packaging mistakes. Not understanding pricing. Not managing cash flow. Top Ten Mistakes

23. Credit pitfalls. Going for fast vs. deep sales growth. Not understanding sales channels. Fear of mistakes. Not asking for help. Top Ten Mistakes (cont.)

24. NASFT website at www.specialtyfood.com. “The Basics: The Business of Specialty Food” Additional Resources

25. Valerie Jennings Hippie Chow Natural Foods Phone: 913.254.3580 valerie@hippiechowgranola.com www.hippiechowgranola.com

26. Branding & Marketing:Ingredients for Success Sara Freetly-Grubb March 24, 2011

27. Eat Your Heart Out! U.S. food industry is $1 trillion market per year! Nearly 10% of Gross Domestic Product That is a good and bad thing for you Good: Consumable Essential — not luxury items Bad: Highly competitive Difficult to break-through Convince consumers they need YOUR product over another

28. So What’s the Right Recipe?! To successfully bring your product to market, you’ll need: A dash of research A cup of branding A pinch of packaging A dollop of marketing

29. A Dash of Research Identify your audience Who will buy your product? Why? When? Where? How? Shape your brand and marketing around this audience Reach out specifically to your ideal customer

30. A Dash of Research Know your competitors What is everyone else doing? Is it working? How are they talking about their product? How is it packaged? What is the price? How is yours different? Why buy yours instead of theirs?

31. A Cup of Branding (the special sauce) What is a brand and how do I get one?! Branding is “sexy” – buzzword in the industry A brand is more than just a logo…it starts with a position or promise …and although it is the visual, outward expression of a brand — a logo is not a brand A brand captures your product’s personality Is something that must constantly evolve Requires commitment to consistency

32. A Cup of Branding (the special sauce) A successful brand must: Define your product Be meaningful Resonate with the target audience Convince consumers to buy Differentiate you from competition Easily translate into: Packaging Point-of-Sale Displays Web site Marketing Advertising Etc.

33. A Cup of Branding (the special sauce) Identify your product Values/Benefits/Qualities Go beyond the obvious Unique selling proposition Develop a brand strategy Incorporate all 5 senses Look Feel Taste smell Create a promise to customers – Brand And deliver on that promise EVERY time!

34. A Cup of Branding (the special sauce) Be patient. Brands don’t gain credibility and recognition over night Brands are living, breathing things – let it evolve Protect it, no one else will Communicate it to anyone who will listen Shout it from the rooftops! Be your own brand champion Own it Get buy-in from staff and customers Think about it everyday

35. A Pinch of Packaging There are a lot of products on those shelves! Make the decision easy Packaging should be: Visually appealing Colorful An extension of your brand Convenient Cost-effective

36. A Dollop of Marketing Your secret ingredient! Know your budget Develop a realistic marketing strategy Define your objectives Short- and long-term Create a plan and work the plan Keep it fluid! Tweak the recipe if you need to Spend the money! It’s worth the investment

37. A Dollop of Marketing Incorporate multiple mediums Advertising Expensive but effective Brand awareness and visibility Print (Newspaper/Magazine) Broadcast (TV/Radio) Public relations “Free publicity” News releases Know the right contacts Get your story straight Keep it short and sweet Find your angle – and work it!

38. A Dollop of Marketing Use technology Cost effective Build a great web site Spend the money on CMS – it will be worth it Extension of your brand – bring it to life online! Simple, easy to navigate Make it interactive Use social media But use it wisely! Communicate with your customers Email blasts Newsletters

39. A Dollop of Marketing & Promotion How do you do it? Go it alone You know food, but do you know marketing? You have a CPA and an Attorney don’t you Time consuming Budget constraints Competing priorities OR Hire the RIGHT professionals Cost vs. value An outside perspective Leverage relationships and contacts

40. Thank You! Questions?

41. Sara Freetly-Grubb 229 SE Douglas| Suite 120| Lee’s Summit, MO Phone: 816.554.3608 | Fax:816.554.3629 sara@justbecandid.com | www.justbecandid.com

42. Best Practices:Marketing for small business Susan Henson Business Development Specialist Missouri SBTDC Kansas City, MO hensons@missouri.edu

43. Small Business & Technology Development Centers SBTDC programs help businesses start, grow and succeed by providing unbiased, research-based expertise through one-on-one consulting and targeted training. 32

44. Overview: Marketing for Small Business Explore and Discover Marketing formula Create the program Put it into action Marketing tactics 33

45. Explore and Discover 34

47. What are trends in your industry & the marketplace

48. What you have done successfully in the past?Explore and Discover 35

50. How about secondary competitors?

51. How are they priced?

52. How/Where do they distribute?,

53. What marketing tactics do they use?Explore and Discover 36

55. Will they understand your product value?

56. How much will they pay? Why?

57. Where do they shop for similar “stuff”? Explore and Discover 37

60. Are you giving customers a unique, memorable experience?…Identity & Position) Explore and Discover 38

61. your marketing formula: the P’s Product What can you do to make your product/service more appealing? Place What can you do to make your product/service more accessible? Price What can you do to make your prices more appealing or sensible? Promotion What can you do to make your promotions more visible and persuasive? People What can you do to make your human interactions with customers more friendly and meaningful? 39

63. Focused, Simple

64. Consistent, Repetitive

65. Emotional

66. Appreciates Loyalty

67. Wise Spending

68. MeasuredTake Action 40

70. Email campaigns

71. Social media

72. Internet advertising

73. Direct mail

74. Coupons

75. Customer Service

76. Convenience 41

77. one size Doesn’t fit all 42

78. Questions? Susan HensonMO SBTDChensons@missouri.edu816-407-3492Clay County Extension Center1901 NE 48th StKansas City, MO 64118 43

79. Upcoming Events “Spring Into Hope” A Shopping Event to Benefit the Marian Hope Center Independence Events Center Friday, April 15th and Saturday, April 16th The Ennovation Center will have a booth and current kitchen incubator clients will have the opportunity to sell their items in the booth. Contact Jenni Mann at 816.463.3532 or jmann@ennovationcenter.com for more information

80. Upcoming Events Ennovation Center Client Showcase Tentative Date: June 8th, 2011 The Ennovation Center will highlight our clients and their products to an audience of restaurant operators and grocery retailers. Contact Jenni Mann at 816.463.3532 or jmann@ennovationcenter.com for more information