W040-Evaluating the Potential of Success for Value-Added Products

Within three years after market introduction, approximately 80 percent of all new products and businesses fail. Therefore, it is important to evaluate potential for market success before excessive time, effort and financial investments are made to launch a product into the marketplace.

This publication contains two tools to assist farmers and agri-entrepreneurs in evaluating the potential of market success for their value-added products. These tools do not, however, replace the need to complete business and marketing plans. The first tool, Assessment of Marketing, is designed to help appraise a product, marketing plan and marketing conditions to determine the likelihood of achieving marketing success. The second tool, Getting Value-Added Products into Grocery Stores, is designed to help assess the potential for value-added agricultural products to be marketed in local grocery stores.

Each tool provides a series of statements about the product, marketing plans and marketing activities. Participants are asked to indicate whether they agree, somewhat agree, somewhat disagree or disagree with each statement. The responses can then be compared with preferred responses and scored. The value of the tools to producers relies heavily on the accuracy of the answers provided to the questions.