Making money and profit for any business is a process of collective functions that work in harmony to create a total targeted output. In business, these functions vary from size and industry of the business. However, for the most part, these functions are similar across the board.
These functions are; finance, production (service or product), sales, marketing, operations, legal, IT, etc. All the business functions are important. However, some functions require more priority and focus, especially in the modern world of technological advancements.
For today’s write-up, we are giving priority to marketing as an important function of creating sales and achieving business profitability.
As we have borne witness, many farmers and breeders face significant difficulty when trying to bring their products to market. According to research, this is not a problem isolated to only Namibians, it is a challenge faced by many across Africa and other underdeveloped and developing economies.
The cries have been about “unstructured markets” “prices are too low,” “unpredictable price fluctuations”, because of exogenous factors such as droughts.
So, given the challenges, how do we improve business profitability through marketing and market access? Below are some recommendations that farmers may employ:
1. Digital marketing – ensure that anyone in the world has access to your products through the use of different social media platforms such as Facebook, Instagram, Tik-Tok, Twitter, LinkedIn, WhatsApp, business website, etc. What is important to note is that you have to know who your customers are, and what social media platform they prefer to use. This will allow you to create an online store to reach a broader audience.
2. Farmers’ markets – Make sure to take part in local farmers’ markets to sell products directly to consumers. There are also many farmers WhatsApp and Facebook groups that you may use to market and sell your products.
3. Farm stands at auctions and trade fairs – Set up a stand on or near the farm to sell produce directly.
4. Online marketplaces – There are businesses that operate online marketplaces as hosts of different products from different suppliers, where you may list products. These platforms coordinate product sales and delivery services.
5. Join or develop a farmers’ business cooperative – As the saying goes “If you want to fast, go alone. However, if you want to go far go together”. Given the competitiveness of our markets and the low purchasing power, collaborating can be of great benefit as a collective. Thus, putting hands together with other farmers to create and increase your bargaining power and share resources is of critical importance.
More tips will be shared in the next articles. In rounding this one off, farmers can improve their business and farming operations profitability by employing a combination of efficient market access and marketing strategic techniques, in order to reach a wider audience, while creating a more sustainable business model.
*Mekupi Kambatuku is a managing consultant at Simpli Business Advisory, and can be reached at admin@simpliadvisory.com