How to Niche Market Aquaculture Products

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How to Niche Market Aquaculture Products

• LaDon Swann
• Mississippi-Alabama Sea Grant Consortium
• Auburn University

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In the many areas there are No well established
markets for aquaculture products like there are
for other agriculture products
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You MUST know where you your product will be sold
before you stock your first animal.
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We Will Discuss

• Selecting a species
• Product form
• Price
• Promotion
• Place

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Production
Marketing
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Develop a Budget

• Compare marketing costs against anticipated
  returns

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Markets
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New Fish Farmers

• Sell within 50
• mile radius

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Large scale processing facilities are nonexistent
in areas new to Aquaculture
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Selecting A Species
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Selecting a Species

• Choose marketable species

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Selecting A Species

• Choose species with production information
  available.

Carp
Lobster
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Selecting a Species
Farmed internationally
Native wild
Foreign wild

• Competition

Farmed domestically
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Selecting a Species
If possible, provide variety
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The Four P's in Marketing

• Product
• Price
• Promotion
• Place

Mind your Ps But watch your Qs (Quality
Assurance)
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Product
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Product

• Refers to market size and the degree of
  processing

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Product

• Live fish
• Fish in the round

Fish in the Round
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Product-Processed

• Drawn
• Dressed
• Headed gutted

Dressed
Headed and Gutted
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Product Processed

• Chunks
• Steaks

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Product Processed

• Fillets
• Flank fillets
• Butterfly fillets
• Nuggets
• Deboned

Fillets
Nuggets
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Product - Processed

• Value-added
• Breaded
• Canned
• Sticks
• Smoked

Canned
Smoked
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Price
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Customers dont want to pay full price for
anything and they want to see how much they are
saving.
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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.

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Price

• Skimming
• Discount
• Loss-leader
• Psychological
• Perceived value

• Cost-plus
• Return on investment
• Competitive
• Penetration

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Price

• Cost - plus
• IF...... 20 gross profit

Price unit cost 1.00 1.25
1- percentage 1-0.2

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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.

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Price

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

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

• Depends upon
• Scale of operation
• Resources available
• Availability of product
• Location of farm

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Promotion

• Must be targeted to your audience.
• Income level
• Upper
• Middle
• Marketing location
• Restaurants
• Farmers markets

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Promotion

• Aimed at consumer
• Clear
• Concise
• Focused

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Promotion

• Wholesale
• Is the buyers responsibility

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Promotion

• Direct retail
• Is the producers responsibility

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Promotion

• Generic
• Personal

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Promotion - Generic

• Catfish Cookbook produced by The Catfish
  Institute

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Most Effective Promotional Methods

• Newspapers
• Sampling
• In-store Demonstrations
• In-store Ads
• Coupons
• Radio / Recipe cards (tie)
• TV / Mailers (tie)

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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.

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Promotion In Store Demos

• Provides high visibility of product.
• Requires large quantities of product.

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POP Materials
Inform
Remind
POP Materials
Persuade
Merchandise
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Seafood Month Should Last All Year
2005-06
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Place
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Place

• Depends on
• Location of farm
• Method of promotion
• Species
• Ability to process

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Place - Direct Wholesale

• Restaurants
• Supermarkets
• Specialty stores
• Live haulers

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Place - Restaurants

• Fast food
• Family style service
• Atmosphere service

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Family Style Atmosphere Service
15.47 30.00
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Place Direct Retail

• Farm side
• Farmers' markets
• Roadside stands

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Regulations

• Focus on permits to
• Retail market at farm, farmers markets, and
  roadside stands
• Set up small-scale processing facility.

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Inspection

• Hazard Analysis Critical Control Point
• HACCP

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Summary

• Must be able to answer the questions regarding
• Species
• Product
• Price
• Promotion
• Place

SOLD