Marketing engagement and development

1. Marketing engagement and development

2. Presentation Outline • History – where we have been to get here • Organisational change for FRDC and industry • Advisory Committee and Terms of Reference • Listening… the process of finding out

3. History Where we have been to get here?

4. The Export Prawn Promotion Act 1995 – repealed 2001 • 2001–2005: DAFF managed Aquaculture Action Agenda invests around $1.5 million in developing a promotion plan for the aquaculture industry. • 2002–2005: National Food Industry Strategy (NFIS) invests in developing a promotion body for Seafood promotion (Chaired by Ron Edwards). • 2004–2005: the former Australian Seafood Industry Council (ASIC) established a promotion sub-committee chaired by Sydney Fish Markets. • 2005 FRDC tries to bring above three processes into one. FRDC funded ACIL Tasman to develop a business plan and constitution for a new organisation called Seafood Experience Australia (SEA). • 2004–2005 Australian Prawn Farmers establish a prawn farming R&D Levy – Completing 12 levy principles and achieving +95% support. • 2007 Federal Election - Laborfisheries policy states “It will support the Australian seafood industry to establish appropriate levy mechanisms to facilitate long-term industry funding for marketing and promotion”. The journey to here • Some general lessons from the first decade? • The Prawn Promotion Act was repealed because of a lack of trust and misunderstanding by a small number of people … • Not everyone has the same view. • Getting everyone to agree and pay is un-likely. • Prawn Farmers did it, because they were a small well focused group, with a clear goal, and it was well managed.

5. 2007 Seafood CRC established – strong mandate for post harvest development – including marketing. • 2007 – 2012 Seafood CRC and FRDC invest with abalone, rock lobster, prawns (wild and farmed), oysters, Atlantic salmon, mussels in market development projects including china platform, and Trade and Market Access (SSA). • 2010 Minister Burke writes to industry seeking “whether there should be a compulsory marketing and promotion levy for the industry as a whole, or your industry specifically” – very strong positive response from industry • 2010-2011 Productivity Commission inquiry into the Rural Research and Development Corporations. • 2011 June – Productivity Commission inquiry recommends PIERD Act changed (9.3) to include marketing function to complement existing RD&E functions. The journey to here

6. The journey to here • 2011 Seafood Directions – Randy Rice from Alaskan Seafood Marketing Institute describes 3rd party certification for sustainable fishing funded by marketing levy. • 2011 Seafood Directions – FRDC Chair announces FRDC’s new initiative to promote science. • 2012 March FRDC and Seafood CRC hold Marketing & Promotion workshop • 2012 July Minister Ludwig announces Government’s response to PC Inquiry – R&D Policy Statement (PIERD Act). • 2012 November Minister Ludwig writes to fishing and aquaculture industry with Government commitment to establish long term funding mechanism for marketing and change PIERD Act. • 2013 FRDC and Seafood CRC Boards agree to co-invest to engage industry and transition marketing from SCRC to FRDC.

7. The journey to here • 2013 ACPF and APFA members voluntarily commit ($350k) to and undertake Love Australian Prawns joint marketing campaign. • 2013 Wild Abalone develop marketing program for China via SCRC. • Sept 2013 FRDC partners Wine Australia for Savour event in Adelaide. • 2013 Oysters Australia undertake a supply chain project to educate consumers via SCRC. • December 2013 the Rural Research and Development Legislation Amendment Bill was passed by Federal Parliament extends the scope and range of activities to include marketing. • 2014 2013 ACPF and APFA members commit ($350k) to second year of the Love Australian Prawns campaign. • 2014 FRDC starts process to engage with industry. • 2014 First meeting of Marketing Function Advisory Committee Meeting.

8. Some general lessons from the second decade? • Governments move slowly – taken almost 20 year to get here. • Industry is in the drivers seat. • The end goal and participants needs to be clearly defined and communicated to all stakeholders. • There are opportunities to work together, but one approach will not suit everyone. Each sector need their own priorities.

9. Organisational change …for FRDC and industry

10. FRDC is listening and engaging with industry. FRDC wants to build a long term platform for marketing which includes both research, development and market activity. FRDC can undertake marketing activities… but only with funds contributed explicitly for marketing (i.e. a marketing levy). FRDC will work with Seafood CRC to transition delivery. FRDC want to make sure any marketing investment is: strongly linked to enterprise level investment overseen with strong governance strategically focused disciplined in approach effective in delivery able to quantify its success Strategic approach to marketing

11. FRDC’s would like to build long term systems to underpin marketing. • For example: Market and consumer data are vital to underpin campaigns and evaluate success. Building marketing systems

12. Need to work along supply chain Historic R&D focus New whole of supply chain approach NEED TO LOOK DOWN THE WHOLE SUPPLY CHAIN Created by Manta Consulting Inc for Fish 2.0 MARKET INFORMATION FEEDBACK LOOP CONSUMER PREFERENCES INFLUENCE PRODUCTION

13. Committee Terms of Referenceand their role

14. FRDC has established a committee made up of marketing experts, who represent a wide cross section and have skin in the game. Marketing Function Advisory Committee • Brett McCallum (Chair) • Tim Hess • Arthur Raptis • Peter Fare • Nathan Maxwell-McGinn • Gus Dannoun • Anthony Ciconte • Andrew Puglisi • Jules Crocker • Shane Geary • John Susman • Sam Gordon • David Caracciolo • Rachel King • Katherine Winchester • Dallas D'Silva • Jonas Woolford • Anthony Mercer • Len Stephens

15. Terms of Reference • Provide input on the FRDC’s engagement strategy and how it integrates into the FRDC’s RD&E Plan. • We want your views and opinions. They will help fine tune how we engage with the broader industry. • This is the first time this is being done. Want to ensure we get it right. • Assist with communications to stakeholders; and act as ambassadors for the activity. • As industry leaders your opinions will have a big impact on the success of this activity. • Provide advice on the next steps, including assisting with the implementation of the engagement strategy. • Engagement will provide detail from which to develop marketing plans, your expertise and advice will be valuable to refining these plans to make them practical, deliverable and gain industry endorsement.

16. Listeningthe process of finding out…

17. FRDC is about to commence a industry wide engage program to find out what, if anything, it wants the FRDC to do in marketing. FRDC wants to get industry views and marketing. Industry views will help ensure FRDC develops a robust system that provides industry flexibility to address their varied needs. FRDC is happy to get input by any and every means. We will take feedback from face to face meetings, telephone calls, email, on-line, written, fax, telex… ALL FEEDBACK IS WELCOME! Marketing and engagement

18. Objectives • Develop and deliver an engagement strategy that identifies: • areas of marketing that are a priority for industry and will assist build a marketing business case and plan. • who wants to be involved. • what the negative issues are. • provides answers to meet for a levy process (if required). • Develop a marketing business case and plan. • Find the optimal mechanism to collect funds to support the marketing function. • Develop performance measures for marketing function and activities. • Transition associated Seafood CRC marketing activities to the FRDC.

19. Some thoughts to start…

20. Starting at the top? A key discussion for industry is where to start and focus? Ideally the conversation should to start at the top and where there is opportunity for industry to work together and leverage other sectors or industries. For example… Abalone $ against Wine Australia $100,000 Awards event in China Love Australian prawns campaign APFA $ leverages wild sector $270,000 contribution

21. Some of the key questions The engagement process is about gaining both quantitative and qualitative information the later focusing on the discussion. Questions we re looking at asking are: • What areas do you think the seafood industry should focus on? • Where should the seafood industry work together? • What are the priorities for the seafood industry? • What areas of marketing are priorities for you? • What areas of marketing would you invest your money in? • What results would you expect/like to see from marketing activities? • Do you support seafood industry undertaking marketing? (If no why?) • Would you contribute to seafood marketing?