Emerging market opportunity

Agri Marketing,  Sept, 2008  by Lyssa Surface

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Market Directions, Inc working in collaboration with the Country Living Association (CLA) and the National Agri-Marketing Association (NAMA), has strategically pulled together marketers from agriculture, finance, real estate, retail and other industries to examine the dynamics of the rural lifestyle market and how companies can best tap into it.

The population that comprises this segment does not fit under a traditional agricultural category. By and large, many of these homeowners have higher net wealth, are at least 50-years-old, and have a non-farm primary income. They choose to live in the country as a means of authentic self-expression. Their chief desire is to escape the perils of urban America but not forsake certain urban conveniences and modern-day commodities.

DIFFERENT BUYING STAGES

Based on census information in this category (non-farming rural homeowners), 74% live on less than one acre of land, 16% live on one to three acres, and the remainder live on more than three acres. Based on interviews with 360 CLA members, Market Directions determined that there are common motivators compelling this group of homeowners to relocate from urban areas to rural settings, including the desire for increased serenity, more freedom, and greater control. Childhood nostalgia is also a factor for some.

Market Directions CEO Susan Spaulding noted that this segment has different buying stages, including typical purchases before the move, during the first 24 months after the move, and later on once the lifestyler is established. "By examining these buying stages, we can help marketers determine where the lifestylers shop and how they are shopping," she said. "We can help marketers discover why consumers make the choices they do, and how their brands can become the brand of choice for these lifestylers.

"Marketers have a relatively under-developed understanding of the lifestylers' value and emotional drivers," Spaulding continued. "Beyond the broad theme of 'freedom' and 'enjoying the outdoors,' it's clear marketers want more robust buying cluster models employing personalities, values, ethnicities, self-awareness or other qualitative factors to inform branding, product development, pricing, channel or other strategies."

PRODUCT PURCHASES

Typical products that individuals purchase prior to the move include big-ticket items such as land or real estate financing packages, animals and pets, outdoors sports equipment, as well as utility vehicles. The list includes small items, too--new subscriptions, new services, and new home products. At the time of the move there are other typical purchases, for example, garden supplies, veterinarian supplies, animal feed, riding lawnmowers and tractors. As more time passes and the lifestylers accommodate to the new home and surroundings, their purchases tend to acquire more individualization that reflect more philosophical underpinnings (an RV vs. a Harley; a time-share vs. more outdoor gear).

Where do these people go for product information? Before the move, they might inquire about reputable products from local real estate agents, chambers of commerce, or university extension service agents. Chances are they will also be searching the Internet and browsing magazines for information that will help them make a smooth transition.

County and state fairs present a unique concentration of knowledgeable people gathered together. Agricultural education organizations such as 4-H and FFA or hobbyist organizations such as Ducks Unlimited and Master Gardeners are often sought out. Farm shows, home and garden shows, and other related trade events are important sources, too.

After the move, the sources for information change. The needs transition from general to more specific. Previous land owners, especially in the case of an immediate family member or relative, often serve as a top source. Local word-of-mouth also begins to factor in. Visits to nearby merchants including farm supply stores, hardware stores, implement dealers, and landscaping specialists take on new meaning as the lifestyler looks to glean information to get established quickly and begin growing roots.

DISSECTING MARKET DYNAMICS

Market Directions has sought to provide potential marketers with in-depth analyses and opportunistic ways of looking at the market--it's structure, trajectory, and how it fits into a broader consumer market context. The firm also provides companies with a greater understanding and articulation of the rationale for commitment and investment in the segment.

"Unraveling the complexity, understanding the diversity, evaluating the breadth, and capturing and tracking changes occurring in the market represent a challenge that marketers normally would need help in addressing," Spaulding said.

Market Directions is launching an in-depth "Customer Touchpoint Analysis" that includes an attitudinal survey focused on a broad and deep understanding of how all the various customer touchpoints influence rural lifestylers. Along with the attitudinal survey a select number of rural lifestylers will be collecting direct mail samples, magazine advertising and articles, online offers and other materials which demonstrate how they are being reached and with what offers.