Place Cooperatives – Seedstock Plus – Leachman – Flying H Genetics – Fink – Schiefelbien – Camp Cooley – Pharo Cattle Co

Business Lifespan The average length of business lifespan for seedstock is seven years. Without a succession plan, the business is usually dispersed and a once major powerhouse is completely gone. Can a non-family owned seedstock business be structured to continue? It would need to have a ROI that is acceptable to the investors.

Price 4-5 x feeder calf price 2.5 x fed cattle price Range - $250-$300 under or over the average

Price What is the Breakeven for Commercial Bulls?

Bulls - Basic Value at Weaning Feed Semen Test - $25, hd Advertising - $20-$120/hd Registrations and Certificates

Bulls – “normal” Ultrasound - $35/hd Sale Expenses - 15% – Auctioneer – 3%-6% – Ringmen – Sale Barn - $2000-$2500 – Catalog - $30/hd – Pictures, video, website – $50-$100/hd – Clipping - $20/hd

Bulls - Ultra DNA test - $35/hd Internet or Superior Sales Delivery - $50/hd Guarantees – 6% Genetic Guarantees – Case Study (FHG) Herd Visits Education/Newsletters/Field Days Buy-back – Case Study (Schiefelbein)

Build a Brand The best, most powerful way to build a brand is to create a new category and be the instant LEADER. The new category can be found by identifying the enemy and create the opposite/make it obsolete.

Promotion First British - Shorthorn Different British - Hereford New British - Angus So…….the best selling British is…………….!!

Angus Strategy Angus became the best selling Breed by being innovative. First create a branded beef program, CAB. Build slow (15 yrs) and get media buzz. Once they achieve success in the “trenches”, then launch major advertising campaign.

Promotion First Hybrid New Hybrid Different Hybrid So…….the best selling hybrid is…………….!!

Gelbvieh Strategy Balancers became best known hybrid. Many AGA members were already selling hybrids. Trademarked and defined the proper hybrid. Got media buzz AND launch major advertising campaign. Short on product……..Reduced advertising.

Promotion BreedCategory AngusThe Business Breed. Red AngusFor all the right reasons. HerefordThe Efficiency Experts. CharolaisSmoke in your eyes. SimmentalCommitted GelbviehContinental Breed of Choice LimousinMuscle. Growth. Efficiency

Launch a New Brand, PR Public Relations – Leak (promote) the New Category to the media. – Let the media create buzz. – Gather testimonials. – Press Releases. – Use words like Leader, Pioneer, First, Original. – Pace yourself; if it is grows, it will grow big. – Brand Building Stage

Launch a New Brand, Ads Advertising – Convey and Maintain your Leadership in the category by promoting the brand. – Do not say “I am better”. Say “I am the Leader”. – Biggest bang for the buck – Target your audience – Mailing Lists – Brand Maintenance Stage

Public Relations “Most overnight successes (trends) take yrs.” Actually it averages 6 yrs in America. Fads grow quickly, then fade.

Public Relations 1. Leak the new category to the press. They love to talk about what’s new, first or hot. They don’t like to talk about the “improved” product.

Public Relations 2. The Slow Buildup 3. The Recruitment of Allies 4. The Bottom-up Rollout 5. The Modification of the Product 6. Modification of the Message 7. The Soft Launch

Public Relations Testimonials You don’t have to sell everybody, you just have to sell Sellers. (PR strategy) You do not launch a PR program; it is done over time.

Public Relations PR is new, different, original, creative, etc. PR is brand building, advertising is brand maintenance. PR first, advertising second.

Promotion Am. Gelbvieh Assoc SmartCross® - Crossbreeding made Easy! Balancer® - the industry’s leading hybrid Gelbvieh - Continental Breed of Choice

Advertising The true function of advertising is to reinforce an existing perception in the mind. Advertising defends the brand once it is built, primarily by public relations and third-party endorsements. Advertising can be funny, but PR is serious. This does not mean that advertising is boring.