MARKETING AQUACULTURE

PRESENTED BYRADHAKRISHNAN NAIR

MFK1508

INTRODUCTION• Aquaculture—old in practice, new ag industries• Rapid expansion globally• Development plagued by marketing problems• Main problem: matching production to market needs

Good example: catfish farming• Farmers were well into production before producers and

administrators gave serious consideration to market research and data collection• demand was great, so no difficulty selling• market analysis only really began in the 1970’s

• This dilemma was also shown by salmon and shrimp industries• failure to understand the market has driven many producers out of

business• knowledge is necessary for locating markets for new and established

products, for price determinations and for setting quality standards• what has helped is the integration of the quality concept with

marketing: HACCP

IDENTIFYING MARKETSJust what is a market? Can be defined in many different ways:• LOCATION:• PRODUCT: • TIME: • LEVEL: retail vs. wholesale

Part 1: The Marketing Plan (According to Philip Kotler)

• After setting the firm’s purpose and goal, the marketing plan is the starting point for the rest of planning

• most marketing plans involve single products or lines of products

Part 1: The Marketing Plan

• Current situation• Opportunity and issue study• Goals• Marketing strategies • Working plans • Financial studies• Needed controls

CURRENT MARKET SITUATION

1) Market situation: background and current situation wrt consumer needs, likes/dislikes, buying trends; current size and past growth of the total market, sales in various geographical areas

2) Product situation: recent history of sales, revenues for a current product

3) Competitive situation: size, goals, market share, product quality, marketing strategies present and future of competitors

CURRENT MARKET SITUATION

• Distribution situation: sales made through each type of middleman (brokers, wholesalers, retailer) in the distribution channel (later)•Macroeconomic environment: general economic situation has a

bearing on sales (e.g., population figures, economic climate, technology, legal issues, social issues, etc.)

OPPORTUNITY ANALYSIS (SWOT)

1) strength and weakness study: main ones of the company and product from factors within the firm

2) opportunities and threats analysis: main ones facing the product from factors outside the firm, ranked in order of importance

3) goals: financial and marketing.

Opportunity Analysis

marketing strategy: basic approach to achieve goals• Target markets: what does the consumer need?• Product positioning: best quality or lowest price?• Size of product line: number/types of products sold• Price: compared to other similar ones• Distribution: how, where and by whom?• Sales force: size, type, quality

Opportunity Analysis (cont)

4) marketing strategy (cont.)• level and quality of service• advertising: amount needed, worked?• sales promotion• r&d: amount, types, timing, success?• market research: amount/types

OPPORTUNITY ANALYSIS (CONT)5. Working plan: once plan is approved, working plan activates

marketing plan (who does what, etc.)6. Financial study: forecast of future sales revenue, cost of

additional product and personnel7. Controls: feedback mechanisms to measure progress, often

quarterly or monthly reports

Part 2: Marketing Channels

• Refers to the institutional structure in place for movement and exchange of goods• from producer consumer• helps with record keeping to consider movement a “channel”• really regards a flow of information• demand creates flow• if conditions of sale are agreed upon, flow through or “down” the

channel starts

How can you avoid all this complexity?

Avoiding Market Channel Complexity: direct sales!

• small quantity of product• transaction does not necessitate

intermediary• farmer develops own capacity to

handle shrimp

LEVELS OF MARKET CHANNEL COMPLEXITY

• farmer ---> consumer• farmer ---> retailer ---> consumer• farmer ---> wholesaler ---> retailer ---> consumer

• farmer ---> broker ---> processor ---> wholesaler ---> retailers ---> consumer

• retailers: hotels, restaurants, institutions

Market Channel and Price

• As product moves through the channel, the price at each stage is increased in accordance with value added to the product• farmers not often pleased with discrepancy in price between what they

received and what consumers pay• difference is the marketing margin or marketing bill • margin is largely affected by time of sale and price paid for raw product• other factors: governmental price controls, producer organizations, co-

ops, type of product, market concentration

LENGTH OF CHANNELS

• Channels can be simple or long and complex• length/complexity depend upon the volume of product

moved, number of functions performed, scale of operation at each stage and the distribution system chosen• organization depends upon the type of markets,

organization of producers

Increasing Market Share• Commercially-reared product is often in direct competition with wild-

sourced• also in competition with imports• factors that affect sales must be isolated for farmers to compete• market share is typically increased by monitoring: product, price,

promotion and place

PRODUCT• The key to expanding sales is a premium product• needs a QA/QC department or program• manager must assure that size, taste, packaging

and other characteristics are pleasing to customer prior to putting on the market• off-flavor, color, texture and general appearance

are key elements

PRICE• To minimize price, the manager will keep processing costs at a

minimum• this insures that product price is competitive• in a purely competitive market, price is determined by interaction

between demand and supply.• price often identified in real world by discovery.• an error in pricing often has serious consequences

PROMOTION

• Involves programs to encourage sale and increase market share at any point in the channel by influencing potential purchases• promotion communicates information including product quality, price,

and benefits of the product to potential clients• it acts on both the intellectual and emotional state of the buyer

PLACE• Distribution of the product to locations used by

customers wishing to purchase the product is a market function• sometimes product is transported hundreds of miles

from the farm• frozen products are transported the greatest

distances • market share is increased by transporting product to

places where it has previously been unavailable

CONCLUSION• Marketing is the process of getting a product from producer to

consumer. • Production matters little if the producer did not identify markets for

the product.• Successful marketing also involves developing a marketing strategy

and plan. Like production costs, marketing costs add to the final price of the product.• As a protection and guarantee to the consumer, processing

procedures are inspected, products are graded, and strict quality control are followed

REFRENCES• AQUACULTRUE SCIENCE third edition, Rick parker• Wikipedia• http://seagrant.uconn.edu/publications/aquaculture/market.pdf• http://www.fao.org/docrep/003/ab412e/ab412e14.htm• http://

www.slideshare.net/technavio/global-aquaculture-market-20152019• http://www.fao.org/docrep/field/003/ac169e/ac169e00.htm

THANK YOU