President at Paulsen, a marketing agency that moves rural America.
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For many outside rural America, the modern farmer’s portrait is often romanticized: working the land, dirt under your fingernails, raising and tending to livestock, feeding and fueling the world. There are many accurate details in this archetype, to be sure. But before you quit your day job to take up farming, know that it is hard work.
Another thing you may not realize is that growers face ever-increasing production costs against a backdrop of tight margins, a challenge compounded by consolidation within the ag industry.
The North American seed industry, for example, is a multi-billion-dollar operation, and a small handful of multinational companies account for more than two-thirds of all revenue generated.
Sound familiar? Take a look at just about any industry — online retail, hardware supplies, fitness apparel, craft beer — and you’ll find a similar narrative of consolidation taking shape. A select few organizations grow larger and more powerful while many smaller, grassroots companies struggle to survive.
Small Brands Can Make a Big Impact
At Paulsen, we’ve been privileged to work with numerous small, independent seed companies. And despite any perceived disadvantages they might face, these brands have found a way to thrive even amidst this consolidation.
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They generally know their strengths and what differentiates their brand from the competition. This strong sense of identity helps them develop a successful marketing strategy — one that can serve as a model for brands in any number of industries.
Here are three insights we’ve learned from our work with independent seed companies:
1. Use localized knowledge and experience to your advantage.
Most farmers will tell you that the most significant advantage of working with an independent seed company is the local knowledge and insight they have to offer.
Because most independent seed companies already have boots on the ground and more of a local or regional focus, growers enjoy the personalized service they’re likely to find. The same is true of other industries as well. There’s a reason the local coffee shop continues to exist even as major brands seem to pop up on every corner.
This is not to say that larger players can’t replicate this model — many, if not most, strive to do so — but small, independent brands are simply positioned better to deliver local knowledge, service and support.
2. Always strive to be accessible and attentive to customers.
Independent seed companies are just that — independent. Because these brands answer less to investors, they are more likely to listen to the concerns of actual growers. The result is greater overall influence on the company’s operational decisions — from genetics and trait packages to pricing and distribution models.
When your brand is gifted with the capacity to build real relationships with customers, do it. The investment you make in these connections will help you develop products and services that cater to their needs.
And when customer satisfaction is high, you have the opportunity to turn loyalty into advocacy. Many of your strongest customers are ready and willing to help you market your products and services, which in turn can promote growth for your business.
3. Above all else, deliver value.
Some independent seed companies might be able to bring a more cost-effective product to the market. Their business model is typically conducive to smaller overhead. Plus, they have not needed to invest anywhere near the resources in mergers or acquisitions.
Competing on price, however, is not always an available option — or the best option, for that matter. This tenet holds true for the seed industry but can be applied more broadly as well.
What is most important is delivering value to your customers. If they feel like they’re getting their money’s worth buying your product, then you’re likely to keep their business.
Take inventory of all the things your brand can do to deliver value — providing excellent customer service, selling a superior product, incentivizing loyalty, etc. — and incorporate that into your marketing strategy.
Leaning Into Your Brand’s Strengths
The best way for smaller companies to thrive is to know and fully embrace their inherent strengths.
As outlined above, we see significant value propositions that independent seed companies offer to their potential customers, and these need to be celebrated and reinforced at every turn. Many independent companies possess certain assets that set them up for success, even in a market seemingly dominated by its largest players. And when they thrive, we all harvest the benefits.
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Author: Sara Steever, Forbes Councils Member
