Marketing Options for Marketing Options for Small Aquaculture Small Aquaculture
ProducersProducers
Presented By:Presented By:
David ClineDavid Cline
Extension AquaculturistExtension Aquaculturist
Alabama Cooperative Extension SystemAlabama Cooperative Extension System
MarketingMarketing
Often an after thought.Often an after thought. Most difficult part of small-scale Most difficult part of small-scale
productionproduction Plan, what plan?Plan, what plan?
Marketing PlanMarketing Plan
KKnow your customersnow your customers WWhat species?hat species? WWhat is the competition like?hat is the competition like? WWhat product form?hat product form? WWhat price?hat price? WWhat kind of promotion?hat kind of promotion? WWhere will you sell it?here will you sell it? RRegulations?egulations?
What Species?What Species?
Choose a marketable speciesChoose a marketable species
Make sure production information Make sure production information is completeis complete
Provide a variety of speciesProvide a variety of species
Potential SpeciesPotential Species
CatfishCatfish TilapiaTilapia TroutTrout KoiKoi CrawfishCrawfish Bass Bass BluegillBluegill Bait minnowsBait minnows
Freshwater shrimpFreshwater shrimp Aquatic plantsAquatic plants GoldfishGoldfish TurtlesTurtles EelsEels CarpCarp OrnamentalsOrnamentals AlligatorsAlligators
CompetitionCompetition
InternationalInternational RegionalRegional Other SpeciesOther Species
Compete or Cooperate
You Decide
4 “P’s” of Marketing4 “P’s” of Marketing
ProductProduct PricePrice PromotionPromotion PlacePlace 5th “P”5th “P”
Product FormProduct Form
LiveLive FilletsFillets Headed and guttedHeaded and gutted DressedDressed NuggetsNuggets Steaks Steaks DebonedDeboned SmokedSmoked
What price will be What price will be charged?charged?
Lowest: equal to your costs Lowest: equal to your costs including fixed and variable costsincluding fixed and variable costs
Highest: what you could talk a few Highest: what you could talk a few people into payingpeople into paying
Reality: somewhere in-betweenReality: somewhere in-between
Questions to ask yourselfQuestions to ask yourself
How will the product be positioned How will the product be positioned in the market?in the market?
Who are the customers and what do Who are the customers and what do they expect?they expect?
What species and prices are the What species and prices are the competition offering?competition offering?
What quality associations are What quality associations are associated with the product?associated with the product?
What type of promotion What type of promotion will be used?will be used?
GenericGeneric PersonalPersonal
Example of a newspaper AdExample of a newspaper AdFarm-Raised Hybrid Striped Bass:
Raised Free of contaminants, highly nutritions, priced to sell. Saturday, 8 a.m. - 12 noon, State Rd. 38 and 900 East, Tipp City.
What, Why, When, Where**Clear, focused and to the point**
Where will you sell the Where will you sell the product? “product? “PLACEPLACE””
Local customer baseLocal customer base Roadside marketRoadside market Fish fry fundraiserFish fry fundraiser Office building salesOffice building sales Fairs and festivalsFairs and festivals Value added marketValue added market Pond draining salePond draining sale
Live haulingLive hauling Restaurant salesRestaurant sales SupermarketsSupermarkets Specialty StoresSpecialty Stores
Direct Retail Direct Retail SalesSales
Direct Wholesale Direct Wholesale SalesSales
< Fee Fishing >< Fee Fishing >
Skip Photos
Expected PricesExpected Prices
OutletOutlet $/pound$/pound ProcessorsProcessors .55 - .80.55 - .80 Live HaulersLive Haulers .65 -.65 - .90.90 Roadside MarketRoadside Market 1.00 - 1.751.00 - 1.75 Fish-outFish-out 1.00 - 1.751.00 - 1.75
Price goes up as you get closer to the end user
RegulationsRegulations
HACCP - Mandatory seafood inspectionHACCP - Mandatory seafood inspection– Hazard Analysis Critical Control PointsHazard Analysis Critical Control Points
Contacts:Contacts: Local Health DepartmentLocal Health Department Chamber of CommerceChamber of Commerce City HallCity Hall Game and Fish CommissionGame and Fish Commission Department of TransportationDepartment of Transportation
SummarySummary
Know your customer, meet their Know your customer, meet their needsneeds
Keep the 4 “P’s” in mindKeep the 4 “P’s” in mind Create a written planCreate a written plan Work hard to establish a reputation Work hard to establish a reputation
for QUALITY and DEPENDIBILITYfor QUALITY and DEPENDIBILITY
BE PERSISTENTBE PERSISTENT