Marketing Options for Small Aquaculture Producers Presented By: David Cline Extension Aquaculturist Alabama Cooperative Extension System Marketing Often an after thought. Most difficult part of small-scale production Plan, what plan? Why do you need a marketing plan Marketing Plan Know your customers What species? What is the competition like? What product form? What price? What kind of promotion? Where will you sell it? Regulations? What Species? Choose a marketable species Make sure production information is complete Provide a variety of species Potential Species Catfish Tilapia Trout Koi Crawfish Bass Bluegill Bait minnows Freshwater shrimp Aquatic plants Goldfish Turtles Eels Carp Ornamentals Alligators Bighead Carp The Culture Species Competition International Regional Other Species Compete or Cooperate You Decide Other Seafood Local Competition Regional Competition Other Protein Sources 4 “P’s” of Marketing Product Price Promotion Place 5th “P” Product Form Live Fillets Headed and gutted Dressed Nuggets Steaks Deboned Smoked 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 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 associations are associated with the product? 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. - 12 noon, State Rd. 38 and 900 East, Tipp City. What, Why, When, Where **Clear, focused and to the point** Generic Promotion Personal Promotion Where will you sell the product? “PLACE” Direct Retail Sales Local customer base Roadside market Fish fry fundraiser Office building sales Fairs and festivals Value added market Pond draining sale Direct Wholesale Sales Live hauling Restaurant sales Supermarkets Specialty Stores < Fee Fishing > Skip Photos Local Customer Base Farm Sales Roadside Sales Or down the road, catering Roadside Market Fish Fry Fundraiser Office Building Sales Fairs and Festivals Processing adds value Value Added Packaging Quintessential value added Pond Draining Sale Cage Harvest Sale Live Haul Local Live Haul Restaurant Sales Grocery Store Ethnic Specialty Market Live Market Fishouts and Fee fishing Check the prices Fishout Processing adds value Expected Prices Outlet Processors Live Haulers Roadside Market Fish-out $/pound .55 - .80 .65 - .90 1.00 - 1.75 1.00 - 1.75 Price goes up as you get closer to the end user 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 Summary Know your customer, meet their needs Keep the 4 “P’s” in mind Create a written plan Work hard to establish a reputation for QUALITY and DEPENDIBILITY BE PERSISTENT Now that’s a lot to think about Formula for Success 20% Desire 20% Determination 50% Sweat 10% Luck Made in the Shade!