Developing a Niche Marketing Plan: the 5 P s. Presented By: David Cline Extension Aquaculturist Alabama Cooperative Extension System

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1 Developing a Niche Marketing Plan: the 5 P s Presented By: David Cline Extension Aquaculturist Alabama Cooperative Extension System

2 YOUR GOAL IS NOT TO RAISE FISH YOUR GOAL IS NOT TO SELL FISH YOUR GOAL IS TO MAKE MONEY HOWEVER IN ORDER TO MAKE MONEY YOU MUST RAISE FISH AND SELL THOSE FISH FOR A PROFIT

3 Why do you need a marketing plan?

4 Marketing Plan What Species? What is the Competition like? What product form? What price? What kind of promotion? Where will you sell it? Regulations?

5 What Species? Choose a marketable species Make sure production information is complete Provide a variety of species

6 The Culture Species

7 Bighead Carp

8 The Culture Species

9

10 Potential Species Catfish Tilapia Trout Koi Crawfish Bass Bluegill Bait minnows Freshwater shrimp Aquatic plants Goldfish Turtles Eels Carp Ornamentals IF IT IS EDIBLE, SOMEONE, SOMEWHERE, IN THE WORLD EATS IT.

11 Competition International Regional Other Species

12 Other Seafood

13 Local Competition

14 Regional Competition

15 Other Protein Sources

16 4 P s of Marketing Product Price Promotion Place 5th P

17 Product Form Live Fillets Headed and gutted Dressed Nuggets Steaks Deboned Smoked

18 IT DOESN T MAKE ANY DIFFERENCE HOW GOOD THE QUALITY OF THE PRODUCT IS, IF THE RESTAURANT HAS THE PRODUCT ON THE MENU AND THE PRODUCT DOES NOT ARRIVE QUALITY OF SERVICE IS THE MOST IMPORTANT ELEMENT IN SELLING FISH THE PRODUCT QUALITY HAS TO BE GOOD BUT THE SERVICE HAS TO BE BETTER.

19 1 % DIE 3 % MOVE AWAY 5% DEVELOP OTHER FRIENDSHIPS 9% FOR COMPETATIVE REASONS 14% DUE TO PRODUCT DISSATISFACTION 68% QUIT BECAUSE OF AN ATTITUDE OF INDIFFERENCE TOWARDS A CUSTOMER BY ONE EMPLOYEE

20 What price will be charged? Lowest: equal to your costs including fixed and variable costs Highest: what you could talk a few people into paying Reality: somewhere in-between

21 Questions to ask yourself How will the product be positioned in the market? Who are the customers and what do they expect? What species and prices are the competition offering? What quality perceptions are associated with the product?

22 What type of promotion will be used? Generic Personal Example of a newspaper Ad Farm-Raised Hybrid Striped Bass: Raised Free of contaminants, highly nutritions, priced to sell. Saturday, 8 a.m noon, State Rd. 38 and 900 East, Tipp City. **Clear, focused and to the point, what, where, when and why**

23 Generic Promotion

24 Personal Promotion

25 Where will you sell the product? PLACE Direct Retail Sales Direct Wholesale Sales Local customer base Roadside market Fish fry fundraiser Office building sales Fairs and festivals Value added market Pond draining sale Live hauling Restaurant sales Supermarkets Specialty Stores Skip Photos < Fee Fishing >

26 Local Customer Base

27 Farm Sales

28 Roadside Sales

29 Or down the road, catering

30 Roadside Market

31 Fish Fry Fundraiser

32 Office Building Sales

33 Local County Fair

34 Processing adds value

35 Value Added Packaging

36 Quintessential value added

37 Pond Draining Sale

38 Cage Harvest Sale

39 Live Haul

40 Local Live Haul

41 Restaurant Sales

42 Grocery Store

43 Ethnic Specialty Market

44 Live Market

45 Fishouts and Fee fishing

46

47 Check the prices

48 Fishout Processing adds value

49 Expected Prices Outlet $/pound Processors Live Haulers Roadside Market Fish-out

50 Regulations HACCP - Mandatory seafood inspection Hazard Analysis Critical Control Points Contacts: Local Health Department Chamber of Commerce City Hall Game and Fish Commission Department of Transportation

51 Summary Keep the 4 P s in mind Create a written plan Work hard to establish a reputation for QUALITY and DEPENDIBILITY BE PERSISTENT

52 Now that s a lot to think about

53 Formula for Success 20% Desire 20% Determination 50% Sweat 10% Luck

54 Find out what the customers want and give it to them just that way Fats Waller

55 Made in the Shade!

56

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