2. The process of getting the product from the producer to the consumer The final step in food production, but should rate as a top priority in the mind of an aquaculturalist Steps: 1. Understand the current production and consumption of a product 2. Understand marketing (functions and strategy)

3. 14 countries or areas produce about 90% of all aquaculture products China ranks #1 U.S. is in the top 10 producing countries

4. Marketing requires understanding the competition Other meats compete with fish Fish and seafood consumption is slowly increasing Catfish, salmon, trout and crawfish make up 90% of U.S. production Small increase in consumption per person= large increase in production

5. Allows the producer to analyze the opportunities and needs With this done, producer can focus on production and make better decisions Marketing plans or strategies contain three key elements: 1. Determination of the present situation 2. Determination of the market goals 3. Developed plans to reach the goals

6. New product introduction is risky Failure rates are high so it is very important for suppliers, manufacturers and distributors to understand the forces that affect new product success New products path from development to market acceptance depends on the buyer targeted Two basic buyer types 1. Intermediate users: processors and manufacturers 2. Final consumer

7. Intermediate users use new crops and products from existing crops and foodstuffs as intermediate inputs in producing final goods Market is made up of professional buyers Base purchasing decisions on strict price/quality specifications and are knowledgeable about the availability of substitute inputs Convincing them to buy a new product requires being responsive to their price, quality, quantity, and delivery needs

8. Final consumer may make the same price/quality comparisons as professional buyers, but usually have less complete information Factors such as brand name, advertising, packaging, coupons, convenience and image play a bigger role Communication become a crucial factor Producers usually are not in direct selling contact with the buyers Retail distribution links the two that the producer is faced with a double selling job- convincing the retailer to carry the product and the consumer to buy it

9. In both areas (intermediate buyers and consumers) the aquaculturalist sell or market their product to: Processing Plants Live Haulers Local stores and restaurants Backyard or pond bank sales Fee-fishing

10. Intermediate agricultural goods are sold as inputs for further processing or distribution Buyers need reliable information on the product’s technical and functional characteristics Producer must be able to demonstrate how the new product performs in its intended application Does the new product contribute to the buyer’s profit?

11. Price is an important consideration New product must offer a price advantage relative to alternative inputs or must offer some performance edge Selling intermediate goods may also require customization to the buyer’s specifications May entail changes in the product, packaging changes, or changes in delivery method

12. Buyers of intermediate goods are well informed about prices and product characteristics Most buyers face higher switching costs and risks in trying new products Switching costs are one-time costs of changing to a new supplier To provide assurance to buyers, the supplier may have to assume some of the financial risk that accompanies the switch to a new product Must be prepared to negotiate prices with the buyer

13. Distribution networks play important role in determining the product’s success Shipping costs frequently are high relative to the product’s value Ag products are usually bulky and costly to move long distances Markets are likely to be local or regional in scope, presenting opportunities for entry by smaller scale operations- a niche market

14. Demand Ultimate success of a new product depends on generating strong consumer demand Manufacturers of branded products seek to develop offerings with the price, quality and convenience consumers will want, using advertising and coupons to make consumers aware of them Advertising important strategy for gaining new product acceptance Builds consumer demand Signals to retailers and other manufacturers that the company is committed to spending the resources necessary to support the product in the early stages

15. Shelf Life Push refers to incentives offered to wholesalers and retailers to carry the product Some offered across the board: special introductory prices and free goods Others negotiated individually Wholesalers and retailers frequently use buyers and buying committees to evaluate whether a new product is unique enough and has sufficient manufacturer support to merit shelf space Most products do not make it past this stage 90% of new products are extensions: new flavors

16. Assembling Grading Transporting Changing ownership Processing Packaging Stories Wholesaling Retailing Advertising

17. Collecting aquaculture crops from different production sites at a central location Volume processed will be large enough for efficient use of the processing facilities

18. Ensuring that the aquaculture crop batch is of uniform size and species Grader may be used to screen out animals that are too large or too small Some of this done at harvest

19. Moving the aquaculture product to a location where it is to be processed Most animals should be kept alive and in good condition until the time of processing Specialized haul tanks with aerators and oxygen injection systems may be needed

20. Most crops sold several times between the farm and the consumer Producer sells the fish to the processor based on weight at the time of delivery Change of ownership involves the seller and buyer agreeing on the amount sold and on a price

21. Involves a number of procedures to prepare fish for consumption Typically involves removing the skin and viscera, cutting into portions, preseasoning or cooking, and properly disposing of waste products

22. Consumers want to buy products that are packaged attractively and easy to use Should also keep the food safe and wholesome Labels describe the product and how it is to be prepared

23. Stored several times between the farm and the consumer Tanks used at the processing plant to keep the fish alive until further processing Refrigeration and freezing are used with many fish and shellfish to preserve and store them Canned products may be stored in large warehouses and at supermarkets

24. Processor sells the product to distributors or retail outlets Price level is established so that the processor can make a profit

25. Selling to the consumer, restaurants, supermarkets and fish markets Attractive merchandising is needed

26. Consumers need to be aware of the product Newspapers, radio and television, signs, and other means may be used Grower associations, processors and local stores may sponsor the advertisements Also known as product promotion

27. Who is our consumer? What is our target market? What are some things that we should think about when marketing? Is there demand for our product?

28. Markets vary according to the species produced, the location and the amount returned to the producer Factors to consider: Profit Equipment Accessibility Species Quantity Size Quality

29. Select the market that provides the greatest return on investment to the producer Highest price per pound may not provide the largest profit if expenses are high Keep records that allow them to calculate the cost per pound to obtain or produce the product

30. Some approaches require expensive equipment for additional processing or packaging Direct market some specialty or value-added product

31. Good markets may exist but not readily accessible Costs to deliver products to the market may be more than the increased price for the product Many areas of aquaculture flourish some distance from large markets for the product

32. Some species have fairly well developed marketing Some species tap niche or ethnic markets Crawfish are available in southern U.S. but hard to buy in the northwest

33. Large quantities can be marketed through processing plants Small quantities are more suited to direct marketing Processing plants may not be interested in small quantities

34. Aquatic animals that are immature or oversize may require special efforts to market Processing plants may not accept them If they do, they may penalize the price paid per pound

35. Animal must be healthy, free of injury and has the right flavor Processors and producers establish in-house quality assurance programs Required limits of incoming raw materials and finished food products are continuously monitored

36. Marketing has some costs associated with it These costs add to the retail price that must be charged to the consumer Transportation Grading Harvesting Packaging Storing Advertising

37. Entices the buyer to purchase the product Advertising is a major part Various groups promote the products Growers form associations to promote the consumption of the crop produced Check-off systems of fees are assessed to growers or other individuals involved Processors join together to promote the consumption of their products (not brand-specific) Federal, state and local government agencies may develop promotions for certain products or for an industry in general Individuals promote their products or service

38. Educates the consumer Aquaculture producers can promote or sell their product to four general markets: Processors Fee-fishing Wholesale and Retail Live-haulers

39. Large processors generally harvest fish for producers within a short radius of the processing plant (50- 75mi) Producers arrange harvest or delivery dates before fingerlings are stocked Usually try to harvest when there is low supply to raise prices Small-scale processors in some areas process small quantities to sell to local businesses and individuals Usually produce their own fish, but also buy from locals

40. Fish-out Depends on the numbers of fishers in the area and their ability to catch fish Fishing ponds located near cities are usually more in demand than in remote areas Small, densely-stocked ponds are best for fish-out purposes Fish should be replenished when stocks become low Many buy fish from other producers or producer them in their own ponds to stock the ponds Results in better fishing success, more customers and more sales

41. Captured to order or captured and held live for later sale Local newspaper ads, road signs, and word-of-mouth establish a good market Providing a consistent supply of high-quality fish throughout the year maintains consumer demand

42. People who buy and haul live fish from producers to retail outlets Want producers to harvest and load fish into their tank trucks Transport fish to fish-out ponds or other live markets