Case Study: Even’ Star Organic Farm
1. What factors are relevant to Brett’s decision to participate in each of the three customer market groups?
2. How do costs and revenues fit into the choice of markets? Which costs and revenues are fixed once the choice is made? Which are variable?
3. In which markets should Brett participate this year? If he sells to restaurants, how many customers should he take on? If he sells through the CSA, how many subscriptions should he sell?
4. Assuming Brett makes the choices you suggest in question 3, what would be the farm’s contribution by market channel for the year? What would overall operating income be (ignore facilities depreciation)?
5. Looking to next year, what is your advice to Brett for operating the farm and his business?
6. Assuming Brett’s interest in starting the farm was basically a lifestyle choice, evaluate his operation as an entrepreneurial venture.
For the case study, please refer to the PDF document attached.
The question belongs to Marketing and it is a case study about an organic farm. The organic farm is trying to market its organic produce to various customer groups. These customer groups include restaurants and institutions, farmer’s market and community supported agriculture subscriptions.
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