Hi Dawn,
You've had loads of brilliant ideas given to you here. However, as is my "MO", I'd like to suggest bringing some structure to proceedings so that you don't end up throwing your energy all over the place, solving the wrong problem and then not knowing what works and what doesn't.
From what you've said so far, it seems the problem is mainly to do with more competitors literally on your door step (as sales were already affected before the recession bit in), and somewhat to do with the recession. However, people still need to eat in a recession! You need to clearly define the problem before you can fix it - it could even be that people don't know you're there = I don't know - possible?
I would suggest you back the truck up one or two places, and look at the big picture of your business and then put together what I call your "profitable platform" and then your marketing strategy. You can't do every idea that's been suggested here, so you need to know which ones have the highest probably of delivering the highest return.
Step one is to define your business goals, the kind of business you want and the business model to achieve that.
This may seem obvious, but there might be certain types of things that really appeal to you and others that don't. At the moment you've got several routes to market - your shop, and whatever direct selling you do. Would you *want* to sell off the internet - what infrastructure and staff/skills would you need to do that? Do you want to make more direct sales to other local businesses? Do you want to go to farmers markets in far flung places -do you have the resource and enthusiasm to do that?
Step 2: Who?
Who are your current customers - how well do you know them? Do you want more like them, or some different ones? Is it likely that you can increase trade in the shop? What do people actually want? There's no point in creating "product" that no one wants or for which the market is too small to be profitable. E.g. chicken sausages - could be a genius move or a damp squib - but until you get to know your market intimately (if you don't already), how do you know whether they want biltong or shepherd's pie?
Allied to this is the "why". Why do people buy from you instead of M&S or Sainsburys? This is maybe a better question to ask than "what's your USP". "Unique" for the sake of it doesn't sell - desirable does. Answer this question: why would someone buy from you rather than all the other options?
Step 3 Product
Now that you know your market(s), what do they want to buy? What can you reasonably make for them. Let's say you decided to pursue a strategy of making more direct sales to pubs etc - do they want raw meat, or home made boeuf bourginon? What problems can you solve for them? What problems can you solve for consumers? E.g. a healthy ready to cook meal, rather then the chemicalised rubbish in the supermarkets.
I would love to be able to buy from a proper butchers, especially a quality one - there are virtually none where I live. But the ones that are there do not offer me the convenience I need - parking, late night opening, home delivery. I wonder how much of your market buys from the supermarket simply because it's more convenient?
And there are various other things to think about with regards to the overall platform and strategy. What comes out in the wash is a detailed knowledge of what your different customer types want from you, a specific ideal customer to aim all communication towards, what they're prepared to pay for what, what's important to them e.g. local provenance etc.
THEN you decide what marketing activities and strategies to pursue. Which ones will give you end results you desire for your business and ultimately, your lifestyle. Which will have the biggest payoff for the amount of energy/time required? Which achieve your goals and positioning?
Some will be fairly easy to implement and are probably a bit of a no-brainer - e.g. start building a list of customers and implement the loyalty plan. Now that you have people's email addresses and other contact details - what next? How will you stay in touch and what will you offer? E.g. how about tasting evenings.
If you decide to go down the route of more direct sales to pubs etc- how will you do that?
And finally, I really think it would be a bit of a red herring to embark upon a half-baked webstrategy. If part of your "platform" is that you have a good reputation and offer high quality produce, then I would suggest you need a web presence that reflects this perception and your values. No free or amateur designed sites allowed!
Equally, if you decide to go down the route of selling off the internet - that needs to be thought through carefully and the appropriate ecommerce solution installed.
I'm not saying these things need to cost a fortune, but a successful company needs to project the right image and take themselves seriously enough to implement well and get the right help and advice.
Hope that helps
Jane