marketing plan

Marketing PlanMarketing PlanMarketing PlanMarketing Plan

Why do it?Why do it?

Provide discipline!!Provide discipline!!RequirementsRequirements

Business risk analysisBusiness risk analysis

Production scheduleProduction schedule

Cash flow needsCash flow needs

Price /basis forecastsPrice /basis forecasts


How to do it?How to do it?

Establish clear objectivesEstablish clear objectives

Develop a checklist of:Develop a checklist of:

marketing / purchasing marketing / purchasing alternatives to consideralternatives to consider

key market developments to key market developments to monitor, and whenmonitor, and when


From the requirements listed, From the requirements listed, determine pricing targets, operating determine pricing targets, operating procedure, and schedule for procedure, and schedule for revising/updating targets.revising/updating targets.

Afterwards, evaluate how well the Afterwards, evaluate how well the plan worked and what should be plan worked and what should be changed.changed.

Marketing planMarketing planMarketing planMarketing plan

PercentPercent QtyQty Price TgtPrice Tgt Time TgtTime Tgt

1010

2020

3030

5050

7070

100100

Marketing PlansMarketing PlansMarketing PlansMarketing Plans

Should be set up before first Should be set up before first opportunity becomes available for opportunity becomes available for your enterpriseyour enterprise

5-7 year contracts5-7 year contracts

when appropriate when appropriate futures/options begin tradingfutures/options begin trading


Should drive production decisionsShould drive production decisions

Diversification to reduce Diversification to reduce some risks, or enterprise some risks, or enterprise specialization for other goalsspecialization for other goals

Comparative returns for Comparative returns for corn/soybeans should corn/soybeans should influence production choicesinfluence production choices


Consider probability and size of price Consider probability and size of price change after you take your positionchange after you take your position

Margin calls or lost opportunities Margin calls or lost opportunities

How would that affect you?How would that affect you?

What you would gain from What you would gain from improved or assured results?improved or assured results?


Consider other factors:Consider other factors:

Production risk?Production risk?

Cost of production?Cost of production?

Lenders requirements?Lenders requirements?

Financial leverage/viability?Financial leverage/viability?

Your ability and knowledge in Your ability and knowledge in dealing with market risks?dealing with market risks?


Should be based on what you want Should be based on what you want to achieve, what you want to avoidto achieve, what you want to avoid

Financial targetsFinancial targets

Financial ability to withstand Financial ability to withstand possible adversitiespossible adversities


Should be based on realistic Should be based on realistic evaluation of possible and probable evaluation of possible and probable market pricesmarket prices

Must determine in advance Must determine in advance acceptable levels of target prices acceptable levels of target prices and associated size of position, so and associated size of position, so you will act when the opportunity you will act when the opportunity arisesarises


Must periodically reconsider as Must periodically reconsider as market realities and price market realities and price probabilities changeprobabilities change

Schedule important times to Schedule important times to reevaluate plans based on reevaluate plans based on your situation, commodity your situation, commodity market task factorsmarket task factors

Plan in advance action plansPlan in advance action plans


Requires careful monitoring of Requires careful monitoring of relevant market opportunities and relevant market opportunities and price probabilitiesprice probabilities

Fundamental factorsFundamental factors

Technical analysis for Technical analysis for turnaround warnings, when turnaround warnings, when to take positionsto take positions


Try to anticipate possible market Try to anticipate possible market developmentsdevelopments

When something has When something has happened, often too late to happened, often too late to do something about it.do something about it.


When quantity risk declines, take When quantity risk declines, take bigger positions at attractive pricesbigger positions at attractive prices

When risk of adverse consequences When risk of adverse consequences declines, take bigger positionsdeclines, take bigger positions

When price outlook is not clear, but When price outlook is not clear, but attractive levels, use scale up attractive levels, use scale up programs to avoid missing out programs to avoid missing out completelycompletely


Don’t kick yourself for taking Don’t kick yourself for taking attractive profits, even if you don’t attractive profits, even if you don’t top the markettop the market


After you have completed your After you have completed your marketing:marketing:

How do the actual returns How do the actual returns compare with your compare with your objectives?objectives?

Analyze how you can improve Analyze how you can improve the process next year.the process next year.


If you don’t have the ability or If you don’t have the ability or personality for marketing decisions personality for marketing decisions under pressure, hire someone who under pressure, hire someone who does!does!

What is your What is your competitive/comparative competitive/comparative advantage?advantage?

marketing plan

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