Marketing Plan

Our production emphasis is on honey and improved crop pollination.  However, other products manufactured include pure beeswax candles, natural pollen, and more recently, we have been exploring queen and package bee production.  Targeted markets include consumers residing in and around the counties of Allen, Barren, Monroe, and Warren in Kentucky, as well as counties in northern Tennessee that border Allen County.  Our geographical distribution of population is rural, as far as the consumer market segmentation is concerned.  No particular demographic representation is emphasized.  The honey consumed is for convenience, therefore, all consumers of honey in the marketing area are targeted.

Our competitive advantage is that the honey produced is an "all natural" product.  Efforts to color-grade reflect this fact.  Most store-bought honey has the natural flavor boiled out in order to try to improve shelf life and to increase market shares by volume leverage.

Marketing objectives include discussions on product, pricing, distribution, and promotion.  Our goal is to construct an effective marketing program that is a co-operative effort from which the ACBA may profit.  We will use marketing tools of advertisement such as local newspapers, public television, marketing flyers, business cards, video tapes, local meetings and field day events.  Another marketing objective includes crop pollination and improved crop yields through these pollination methods.  We will create a promotional ad program for pollination.  Queen and package bee production to create a new marketing product is planned for Allen County.  This will reduce the possibility of importing pests from other states.

Product Discussion
The product name is an individual beekeeper's choice.  The label usually reflects this unique selection, as most contain the name of the farm or community in which the product is produced.  Some have approval for the "Pride of Kentucky" logo sticker.  This certifies that it has been grown and produced in Kentucky.  Two main uses of the product are in cooking and as an all-natural sweetener.

Types of honey produced:

  • Poplar honey - dark in color - containing more proteins
  • Clover honey - lighter in color and smoother tasting
  • Soybean honey - light and clear as water and thick as syrup - possesses a "bean" aftertaste.
  • Pumpkin honey - light in color with a distinctive pumpkin flavor
Types of honey bees we propose to raise:
  • Apis mellifera ligustica - 3 banded Italian variety
  • New Russian honeybee.
Honey is a consumer product that satisfies the "convenience goods" category.  It is packaged in several ways - with or without honeycomb.  Honey packaged with comb also comes in tray packaging.

Pricing Discussion
The objective is to price honey by emphasizing it is "local honey" and the care in production of a value added product.  To achieve this end, marketing is "sales oriented" in nature, with primary objectives consisting of increasing sales volume while maintaining market share.  Particular emphasis is placed on keeping overhead to a minimum through cooperative efforts within the ACBA using association-owned equipment.

The objective of queen and package bee production is a 25% savings on shipping costs.  These costs are incurred when bees are mailed to our area.  By not shipping, we would also reduce the stress on bees and thus their loss through the mail.  Local beekeepers average $300 to $500 per year expanding and re-queening their hives.  Package bees cost the beekeeper $60 for a 3 pound package, while queens are $10 to $15.  We will encourage local beekeepers to buy local bees and queens to avoid losses in shipping.

Distribution Discussion
The role of distribution for honey is:
  • No middleman - distribution straight from the producer to the consumer
  • True value-added product that each producer distributes with pride, with most distribution being home-based and at roadside stands or farmer's markets
  • Through the use of the "Pride of Kentucky" logo, the consumer can be assured of purchasing a product into which the producer has put extra effort and pride
Promotion Discussion
A combination of advertising, direct marketing, publicity/public relations, and personal selling comprises the promotional mix.  These can be more specifically itemized as local newspapers, internet, Kentucky State Beekeepers Association, state fair booth, local word of mouth, road side stands and farmer's markets.

Proposed promotional budget includes:
  • Direct mail newsletter on pollination and queen and package bee production
  • Field day events, which are currently held each year
  • Round table discussions with crop producers and beekeepers
  • Training classes on industrial data collection and processing (SPC)
  • Continuous improvement methods with which industries have gained increased productivity
The primary theme of the promotional campaign is three-fold:
  • Improved crop yields through crop pollination
  • Educate beekeepers on queen and package bee production
  • Educate crop producers on the importance of proper crop pollination
The overall promotional program is a push strategy, especially with decreasing tobacco quotas.  Using methods in direct marketing means more bottom line dollars with combined efforts of value-added products.