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 5

6. Develop a Budget
Compare marketing costs against anticipated returns

7. Markets 7

8. New Fish Farmers
Sell within 50
mile radius 8

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

10. Selecting
A Species 10

11. Selecting a Species
Choose marketable species 11

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

13. Selecting a Species Farmed internationally Native wild Foreign wild
Competition
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) 15

16. Product 16

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

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

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

20. Product – Processed
Chunks
Steaks 20

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

22. Product - Processed Value-added Breaded Canned Sticks Smoked Canned21

23. Price 22

24. “Customers don’t want to pay full price for anything and they want to see how much they are saving.”23

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. Price Cost-plus Return on investment Competitive Skimming Penetration
Discount
Loss-leader
Psychological
Perceived value 25

27. Price IF...... 20% gross = profit: Price = unit cost = $1.00 = $1.25
Cost - plus
IF % gross = profit:
Price = unit cost = $ = $1.25
1- percentage 26

28. Price Competitive Skimming Penetration Pricing
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. 27

29. Price Psychological Loss Leader Discount Pricing
$2.99 vs. $3.00 per pound
Loss Leader
Discount Pricing
Discount prices for large volume sales. 27

30. Promotion 30

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

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

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 34

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

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

37. Promotion
Generic
Personal 37

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) 39

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
POP Materials
Remind
Persuade
Merchandise 42

43. Seafood Month Should Last All Year 43

44. Place 44

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

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

47. Place - Restaurants Fast food Family style service Atmosphere service47

48. Family Style · Atmosphere Service
$ $30.00 48

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

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

51. Inspection
Hazard Analysis Critical Control Point
HACCP 51

52. SOLD Summary Must be able to answer the questions regarding: Species
Product
Price
Promotion
Place
SOLD