Beekeeper Case Study: Expanding an Amateur Beekeeping Business

Your mission is to help an amateur beekeeper create a marketing plan to potentially turn professional.

Background

A 45-year-old amateur beekeeper currently manages 7 hives, producing an average of 140 kilograms of honey per year. So far, income has been generated exclusively through honey sales. The beekeeper is interested in growing the business but must rely on self-funding for this growth.

Problem

How can the beekeeper effectively expand the beekeeping activity while staying within the confines of self-funding, and what marketing strategies can be adopted to maximize revenue?

Objectives

1. Diversify honey production while maintaining quality, to produce seasonal honeys capable of commanding a sustained selling price.

2. Develop marketing strategies to increase sales.

You will use the CashFlow-Statement.ods document to add marketing options: distribution channels, etc. (Remember to add the corresponding costs to new activities).

Constraints

– The beekeeper works part-time in Paris.

– The apiary is located in Berry, 3.5 hours by road from the capital.

– The apiary is sedentary.

– The beekeeper does not wish to generate beekeeping income by means other than honey production/sales.

– Internal hive development is possible using the “let-it-be” technique available between April 15 and July 15.

– This technique requires specialized equipment: the nucleus hive. A nucleus hive created in year n will only be productive in year n+1.

– Creating a nucleus hive comes at the expense of a production hive:

– Any production hive used to create a nucleus hive will see its honey production capacity delayed by a month.

– Honey harvests are done in spring, at the start of summer, and at the end of summer.

– For a hive to be productive, its queen must be renewed every two years:

– A queen younger than 2 years allows:

– An average annual production of 22 kilograms.

– A winter survival rate of 95%.

– Beyond 2 years, the queen offers her colony:

– An average annual production decrease of 25% per year.

– A winter survival rate decrease of 20% per additional year. The queen lives a maximum of 4-5 years.

The plan you propose will address the following points:

1. The existing situation:

1. Market representation including all companies identified in the case study, indicating the main targets of each.

2. Identification of the main market segments. Deduce market segments from the previous response.

2. Analysis of the company and the existing situation:

1. Identification of an opportunity (identification of an unsatisfied or new need),

2. Estimation of the size of segments,

3. The company and its ability to satisfy the identified opportunity.

3. The 4 P’s offer designed to meet the identified opportunity:

1. The Product,

2. The Price,

3. The Place,

4. The Promotion.

4. The Value Chain or Economic Model required to build and distribute the new product offer:

1. Infrastructure

– fixed costs

2. Necessary processes

– variable costs

5. Financial projections over a 5-year period:

1. Total sales at the end of each year

2. Sum of costs at the end of each year