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?

Why do you need a Why do you need a marketing planmarketing 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

Bighead CarpBighead Carp

The Culture SpeciesThe Culture Species

CompetitionCompetition

InternationalInternational RegionalRegional Other SpeciesOther Species

Compete or Cooperate

You Decide

Other SeafoodOther Seafood

Local CompetitionLocal Competition

Regional CompetitionRegional Competition

Other Protein SourcesOther Protein Sources

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**

Generic PromotionGeneric Promotion

Personal PromotionPersonal Promotion

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

Local Customer BaseLocal Customer Base

Farm SalesFarm Sales

Roadside SalesRoadside Sales

Or down the road, cateringOr down the road, catering

Roadside MarketRoadside Market

Fish Fry FundraiserFish Fry Fundraiser

Office Building SalesOffice Building Sales

Fairs and FestivalsFairs and Festivals

Processing adds valueProcessing adds value

Value Added PackagingValue Added Packaging

Quintessential value Quintessential value addedadded

Pond Draining SalePond Draining Sale

Cage Harvest SaleCage Harvest Sale

Live HaulLive Haul

Local Live HaulLocal Live Haul

Restaurant SalesRestaurant Sales

Grocery StoreGrocery Store

Ethnic Specialty MarketEthnic Specialty Market

Live MarketLive Market

Fishouts and Fee fishingFishouts and Fee fishing

Check the pricesCheck the prices

Fishout Processing adds Fishout Processing adds valuevalue

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

Now that’s a lot to think Now that’s a lot to think aboutabout

Formula for Formula for SuccessSuccess

20% Desire

20% Determination

50% Sweat

10% Luck

Made in the Shade!Made in the Shade!