McDonald’s, IBM and Kraft are names people can immediately associate with a product. Their hamburgers, computers and macaroni are easily identifiable because they are heavily marketed in television, radio and print.
How are small rural businesses to keep up with these Goliaths?
“It’s all about your reputation,” said Louise Yates, vice-president of communications for Farm Credit Corp.
“So, you can be one person with a reputation or you can be a huge company with thousands of employees with a reputation.”
Yates was a guest speaker at the National Agricultural Awareness Conference in Saskatoon Oct. 22.
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“Brand is really about reputation and you’ve got one whether you’ve asked for it or not.”
She said a brand name implies instant recognition and uniqueness.
Whether a business is a clothing store, a u-pick berry barn or a table at a farmer’s market, getting its name to the public is important.
Yates said owners of small businesses must manage their reputations to bring people back to their brand.
To develop what she called a positioning statement that addresses their target audience, business owners must answer key questions:
- Who are the target customers?
- What does their company do better than others like it?
- What does it provide to the customer?
- What does it say to reinforce its position?
Yates said the positioning statement must be relevant to the product or service, the market, and potential customers.
Karen Johnston co-owns Cinnamon Tree, a gift and women’s clothing boutique with a store in Brandon and a seasonal venue at Manitoba’s Riding Mountain National Park.
Johnston said it takes effort to become known and to gain a loyal set of customers.
Her company’s positioning statement is, “gifts that warm the heart.” Everything it sells or promotes reflects that position.
She relies on word of mouth, radio and newspaper advertising, and tourist brochures to attract people to her stores.
Johnston’s small budget rules out television ads, but she has found that networking with other shops and appealing to a broad age group has given her stores a firm standing in the market for the last 12 years.
“We’re a brand because it’s different than what you will find in department stores. It’s the uniqueness of the things we have. We strive to not fill our shelves with things that are commonplace.”
Kerry Engel, rural development specialist for Alberta Agriculture, said creating links among businesses will help companies grow.
Johnston said her employees refer their customers to a tea shop that reflects the ambience of Cinnamon Tree, with the hope that the shop will also send customers their way.
Being located in the country or small town can make it harder to build a successful business. To overcome a small local customer base, rural entrepreneurs should try to build relationships with customers and try to keep them coming back, Engel said.
Business owners should mark their products with their name, and wear shirts that carry the company’s logo, she added.
This is especially important at places such as a farmer’s market because the company name has to stand out.
Engel said she has bought tomatoes at a farmer’s market that came in a plastic bag with no identification. Even though they were the best she’s ever tasted, she had no way of contacting the producer for more.
“So, I think there’s a lot of ways we can improve communication and promotion with just simple things like labels.”
Darlene Derdall co-owns the Berry Barn, located 11 kilometres south of Saskatoon. The barn is a restaurant, gift shop and u-pick berry plantation.
The owners advertise in the local paper but also have a strong focus on the tourism industry.
Derdall said the Berry Barn has become a brand because of its exclusive products made from saskatoon berry ingredients.
“The saskatoon berries is definitely what we’re all about. They (customers) come out and they say, ‘We can’t leave until we go through the greenhouse. We can’t leave until we finish looking at the berry patch.’ So, it’s becoming a place where they want to come for an afternoon instead of just to eat.”
Derdall said her company has a large advertising budget, which might shrink now that the barn has built a reputation and repeat customers.
“We’re very pleased with what we’re doing. I just question if we have to do it so much anymore.”
Yates said creating an image that sticks with customers carries a responsibility.
“If you’ve got a customer base that’s growing and changing, you must grow and change with them.”
“You can’t keep a position regardless of customer base. But stay true to yourself as a company because if you start doing things people don’t expect, then your credibility is going to go away.”
