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How to Niche Market Aquaculture Products

How to Niche Market Aquaculture Products. LaDon Swann Mississippi-Alabama Sea Grant Consortium Auburn University. In the many areas there are No well established markets for aquaculture products like there are for other agriculture products.

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How to Niche Market Aquaculture Products

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  1. How to Niche Market Aquaculture Products LaDon Swann Mississippi-Alabama Sea Grant Consortium Auburn University

  2. In the many areas there are No well established markets for aquaculture products like there are for other agriculture products

  3. You MUST know where you your product will be sold before you stock your first animal.

  4. We Will Discuss • Selecting a species • Product form • Price • Promotion • Place

  5. Production Marketing

  6. Develop a Budget • Compare marketing costs against anticipated returns

  7. Markets

  8. New Fish Farmers • Sell within 50 mile radius

  9. Large scale processing facilities are nonexistent in areas new to Aquaculture

  10. Selecting A Species

  11. Selecting a Species • Choose marketable species

  12. = Selecting A Species • Choose species with production information available. Carp Lobster

  13. Selecting a Species Competition Farmed internationally Native wild Foreign wild Farmed domestically

  14. Selecting a Species If possible, provide variety

  15. The Four P's in Marketing • Product • Price • Promotion · Place Mind your P’s But watch your Q’s (Quality Assurance)

  16. Product

  17. Product Refers to market size and the degree of processing

  18. Product • Live fish • Fish in the round Fish in the Round

  19. Product-Processed • Drawn • Dressed • Headed & gutted Dressed Headed and Gutted

  20. Chunks Steaks Product– Processed

  21. Product – Processed • Fillets • Flank fillets • Butterfly fillets • Nuggets • Deboned Fillets Nuggets

  22. Product - Processed • Value-added • Breaded • Canned • Sticks • Smoked Canned Smoked

  23. Price

  24. “Customers don’t want to pay full price for anything and they want to see how much they are saving.”

  25. Price - Where to Start? • The lowest price is equal to the cost per pound, including fixed and variable costs. • The highest price is what you could talk desperate people into paying.

  26. Skimming Discount Loss-leader Psychological Perceived value Cost-plus Return on investment Competitive Penetration Price

  27. Price • Cost - plus IF...... 20% gross = profit: Price = unit cost = $1.00 = $1.25 1- percentage 1-0.2

  28. Price • Competitive • Following the price set by another producer • Skimming • High Price to start, then price drops • Penetration Pricing • Selling price is less than production cost in an attempt to attract new customers.

  29. Price • Psychological • $2.99 vs. $3.00 per pound • Loss Leader • Discount Pricing • Discount prices for large volume sales.

  30. Promotion

  31. “Did you know that every unsatisfied customer transaction wipes out the total profits on 5 to 7 satisfied customers?”

  32. Promotion • Depends upon: • Scale of operation • Resources available • Availability of product • Location of farm

  33. Promotion • Must be targeted to your audience. • Income level • Upper • Middle • Marketing location • Restaurants • Farmer’s markets

  34. Promotion • Aimed at consumer • Clear • Concise • Focused

  35. Promotion • Wholesale: • Is the buyer’s responsibility

  36. Promotion • Direct retail: • Is the producer’s responsibility

  37. Promotion • Generic • Personal

  38. Promotion - Generic • Catfish Cookbook produced by The Catfish Institute

  39. Most Effective Promotional Methods • Newspapers • Sampling • In-store Demonstrations • In-store Ads • Coupons • Radio / Recipe cards (tie) • TV / Mailers (tie)

  40. Promotion - Newspapers Farm-raised Clams. Raised free of contaminants, highly nutritious, priced to sale. Saturday 8-12 a.m. State Road 38 and 900 East in Danville.

  41. Promotion –In Store Demos • Provides high visibility of product. • Requires large quantities of product.

  42. POP Materials Inform Remind POP Materials Persuade Merchandise

  43. Seafood Month Should Last All Year 2005-06

  44. Place

  45. Place • Depends on: • Location of farm • Method of promotion • Species • Ability to process

  46. Place -Direct Wholesale • Restaurants • Supermarkets • Specialty stores • Live haulers

  47. Place - Restaurants • Fast food • Family style service • Atmosphere service

  48. Family Style · Atmosphere Service $15.47 $30.00

  49. Place – Direct Retail • Farm side • Farmers' markets • Roadside stands

  50. Regulations • Focus on permits to • Retail market at farm, farmer’s markets, and roadside stands • Set up small-scale processing facility.

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