Country living lifestyle: worthy of attention.Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : This is the first of two articles focused on understanding the population of individuals who live in the country as a lifestyle choice. Central to developing and growing brands is an intimate knowledge of each unique market segment. Since markets are anything but static, continuous monitoring and analysis of market trends is critical. Within agriculture one emerging market segment experiencing significant growth is the population of "country living" folks who choose to reside in the country as a lifestyle choice. The variety of terms used to describe this population, such as lifestyle farmer, hobby A hobby is a spare-time recreational pursuit. Origin of term A hobby-horse was a wooden or wickerwork toy made to be ridden just like the real hobby. From this came the expression "to ride one's hobby-horse", meaning "to follow a favourite pastime", and in turn, farmer, ruralpolitan, part-time part-time adj. For or during less than the customary or standard time: a part-time job. part farmer, sundowners, etc., touches on the complexities of this market segment. Market Directions, Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). , Mo., recently released a study of the country living population. The study initially investigated the size, growth and market trends of this emerging segment. Given the large size and growth trends, focus shifted to understanding the demographics The attributes of people in a particular geographic area. Used for marketing purposes, population, ethnic origins, religion, spoken language, income and age range are examples of demographic data. as well as the lifestyle, hobbies It may never be fully completed or, depending on its its nature, it may be that it can never be completed. However, new and revised entries in the list are always welcome. This is a list of hobbies. and interests, shopping habits, and purchasing preferences of this group. The combination allows marketers to quantify Quantify - A performance analysis tool from Pure Software. the size of the market opportunity and identify specific brand development opportunities. The study contains both primary and secondary components. The primary component includes input from more than 800 individuals recruited from counties with a high incidence of country living folks, while the secondary component analyzes data from a variety of government and industry sources. It turns out that among the myriad Myriad is a classical Greek name for the number 104 = 10 000. In modern English the word refers to an unspecified large quantity. The term myriad is a progression in the commonly used system of describing numbers using tens and hundreds. of terms, these people simply refer to their lifestyle as "living in the country." As simple as living in the country sounds, further investigation is warranted due to the complexity of the population--its wants and needs as compared to other market segments, and the significance of this market segment's growth and purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. . MARKET DEFINITION The United States Department of Agriculture United States Department of Agriculture (USDA), n.pr established in 1862, USDA is responsible for the safety of meat, poultry, and egg products. It conducts ongoing research in areas from human nutrition to new crop technologies and also helps ensure open (USDA USDA, n.pr See United States Department of Agriculture. ) provides considerable data relevant to this market segment. While more complicated than "living in the country," the USDA term that best applies to this population is "residential/lifestyle farmer." The USDA distinguishes residential/lifestyle farms as one of five farm categories. By definition residential/ lifestyle farmers generate $1,000 to $10,000 in annual farm income and report a major occupation other than farming. Clearly, generating less than $10,000 in income from the farm would indicate a need for income from other sources. Producing farm-related revenue greater than $1,000 enables the operator to claim "farm" status. In doing so, there are positive tax implications for farm-related capital expenses. However, many country living folks do not take advantage of these tax benefits, which indicates that generating farm income is not a key motivator for farming. MARKET SIZE Using the USDA definition, the study evaluated the size of this market segment today as well as its growth trends and geographical hot spots hot spots acute moist dermatitis. . The analysis determined that not only is this market segment sizeable but it is growing. Currently there are approximately 1.2 million residential/ lifestyle farms, expanding to 1.6 million if you include "farms" with less than $1,000 in revenues. These 1.6 million farms represent more than half of U.S. farms. When considering growth among farm categories, the category with the most significant growth from 1997 to 2002 was farms with less than $2,500 in sales. While residential/lifestyle farms are found in every state, geographical concentration is apparent, with the top 10 states representing more than one-third of the farms. Whether counties with the greatest number of residential/ lifestyle farms are metro-fringe counties or are in outlying out·ly·ing adj. Relatively distant or remote from a center or middle: outlying regions. outlying Adjective far away from the main area Adj. 1. areas varies from state to state. THE LIFESTYLE Individuals living this lifestyle are typically middle-aged middle-aged adjective Referring to a person between age 45 and 65, used in taking a history. Cf Elderly, Older. , educated, married and have traditional values Traditional values refer to those beliefs, moral codes, and mores that are passed down from generation to generation within a culture, subculture or community. Since the late 1970s in the U.S. . In some cases children are still at home; in others this lifestyle may follow an empty nest Empty nest can refer to:
Another important finding is that women are primary purchasers and users of products and services supporting the rural lifestyle. Gender differences in product and service evaluation criteria, as well as specific product and service needs, make understanding women's needs important to understanding the country living population. To effectively understand the population, one must determine why hobby farmers have chosen this lifestyle. The top three reasons for living in the country are love of the outdoors, interest in privacy and getting away from the city. Lifestyle farmers' interests and purchases reflect those priorities. For example, a love of the outdoors is reflected in how this group uses its land, the specific activities and events in which group members participate, their choice of hobbies and the publications they enjoy--all leading to the products and services they purchase. PASSION FOR ANIMALS In addition, owning land in the country enables them to embrace another passion--owning multiple animals and frequently multiple kinds of animals. The country living population's passion for animals is also reflected in the ways they spend their time, energy and money. Dogs and cats are the most common animals, and having a number of each is common among ruralpolitans. Additionally, the incidence of owning horses is much higher among this population than among the general population. Land ownership lends itself to owning multiple horses and participating in a number of horse-related activities. Many of these folks consider their horses a part of the family. While farm income is not the driver for the lifestyle choice, for those interested in generating farm revenue, animals are more frequent revenue generators than crops. Animals are less labor intensive Labor Intensive A process or industry that requires large amounts of human effort to produce goods. Notes: A good example is the hospitality industry (hotels, restaurants, etc), they are considered to be very people-oriented. See also: Capital Intensive, Trading Dollars and offer more flexible labor options than crops. This is particularly important when one considers the full-time jobs, often at a distance, that are held by these small-farm operators. Cattle are the most commonly owned, with approximately 40 percent of the group specializing in cattle. The average number of cattle is 10 to 20 head. In addition to cattle, other common animals include sheep, goats, poultry poultry, domesticated fowl kept primarily for meat and eggs; including birds of the order Galliformes, e.g., the chicken, turkey, guinea fowl, pheasant, quail, and peacock; and natatorial (swimming) birds, e.g., the duck and goose. and exotics such as alpacas and llamas. IMPACT OF THE LIFESTYLE Combining demographic information with lifestyle insight provides a rich understanding of this market segment's current and future purchasing behaviors. The individuals who have chosen this lifestyle are investing in the country life. The wide variety of lifestyle-related products and services they purchase demonstrates this investment. Shopping patterns and purchasing habits reflect a combination of their city and/or suburbia background with current wants and needs of their acreage or farm. THE OPPORTUNITY A number of factors converge con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. to make this a particularly attractive market segment. Consider a significant and growing population--currently 1.6 million households--with higher-than-average income that is investing in products and services that support the rural lifestyle choice. Consumers are actively seeking products that support their lifestyle and have unique product and service needs. Brands that understand this market segment, develop products and services tailored to the segment, and then market them effectively will enjoy increased brand presence. However, capitalizing on the opportunity begins with understanding this unique market segment. Next month's focus will be on the benefits of achieving successful consumer relationships through understanding country living folks' technology and media habits as well as their shopping habits and purchasing interests. REASON FOR LIVING IN THE COUNTRY * Love of the outdoors * Privacy * To get away from the city COUNTRY LIVING FACTS USDA data and an independent study show the rural lifestyle market segment is an attractive growth opportunity for many agriculture marketers. The following are a few tidbits TidBITS is an award-winning electronic newsletter and web site dealing primarily with Apple Computer and Macintosh-related topics. Internet publication TidBITS has been published weekly since April 16, 1990, which makes it one of the longest running Internet publications. you should know when developing products and services for this segment: * By USDA definition, the residential/lifestyle farmer generates $1,000 to $10,000 in annual farm income each year. * These are part-time farmers who report a major occupation other than farming. * There are approximately 1.6 million farms classified as rural lifestyle farms. * The typical ruralpolitan is middle-aged, educated, married and has traditional values. * In these households women are the primary purchasers of products and services. * The availability of land supports the rural lifestyle farmer's passion for animals and enables then to own multiple animals. Susan Spaulding is president of Market Directions Inc., a Kansas City, Mo.--based firm with brand-building expertise and experience in agribusiness agribusiness Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts. and related products and services. |
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