MARKETING STRATEGIES FOR VALUE ADDED FISHERY PRODUCTS By: Mr. Jimmy A. To Marketing Manager Alsons Aquaculture Corp.

MARKETING STRATEGIESMARKETING STRATEGIES FOR VALUE ADDED FISHERY FOR VALUE ADDED FISHERY

PRODUCTSPRODUCTS

By: Mr. Jimmy A. ToBy: Mr. Jimmy A. To

Marketing ManagerMarketing Manager

Alsons Aquaculture Corp.

Presentation Outline


• Bangus Industry Overview

• Value-Added Products

• Marketing Strategies ( S.W.O.T.)

• Marketing Principles

• Dealership Program

BANGUS INDUSTRY OVERVIEW



The Philippine Bangus Industry

• Philippines is the second largest milkfish producer in the world.

• Filipino consumers frequents wet markets and fish landing ports for fresh milkfish due to cheap prices.

• Lags behind Indonesia and Taiwan in Technological Advancements.

• Despite setbacks, milkfish production in the Philippines remains to be a viable enterprise due to high demand in the local market.

• Although surplus production can meet the majority of Metro Manila’s total demand in the next seven years ( 1997 – 2003 ), there is a forseen shortage of good quality produce.

• Processed products consumption is not so significant because of limited market information and promotional efforts.

Double Whammy

•Filipino U.S. market dominance sometime in the 70’s came to an end •as a result of a marketing fiasco •and the emergence of strong competition of Taiwan frozen milkfish

•Priced much lower, they tasted much better than Philippine milkfish.

The irony of it is that:•The fresh-frozen Taiwan milkfish came originally from the Philippines. •Taiwanese businessmen bought the milkfish fry from Filipino fishermen. •The Taiwan milkfish operators, with generous support from their government, applied modern technology to milkfish raising with outstanding results.

One result was expected:•The Philippine fresh-frozen milkfish was elbowed out by Taiwan from the U.S. market.

The Philippines, with its traditional and primitive methods of raising milkfish, coupled with the pollution of many of its fishponds, could not produce milkfish in such a volume and of such good quality as required by the U.S. market.

The Lure of the Dollar

The need for lucrative dollar earnings encouraged Filipino entrepreneurs to try regaining at least a share of the U.S.

market.

Value-added milkfish products are able to fetch higher prices.

Our company ventured into selling value-added milkfish adhering to strict compliance to international standards of food safety. Alsons began exporting value-added milkfish to the U.S.

Filipino exporters of value-added milkfish have market dominance.

With its high labor cost, Taiwan cannot compete with the Philippines in this labor intensive operation.

Proof of its great acceptance in the U.S. is the demand of products sold continually increases.

P

PRODUCT SEGMENTPRODUCT SEGMENT

PREPARED FOODS

FRESH / SEMI PROCESSED FISH

BASIC FISH P

P

MARGINSPRODUCT SEGMENT


VALUE-ADDED PRODUCTS


WHAT isWHAT is Value – Added ? Value – Added ?

• Added cost of a product Added cost of a product from the time the raw material enters the from the time the raw material enters the

processing plant to the time it leaves.processing plant to the time it leaves.

• The increase in worth or value of a productThe increase in worth or value of a product after undergoing simple or complex processing after undergoing simple or complex processing

operations.operations.


WHY Value – Added ?WHY Value – Added ?

• For better incomeFor better income

• For improved processing utilizationFor improved processing utilization

• To keep in-phase with consumers needsTo keep in-phase with consumers needs

• To provide variety of productsTo provide variety of products


Ways of Adding Ways of Adding ValueValue

Improving market formsImproving market forms• fillets ( bangus, tilapia, carp, lapu - lapu, etc.)fillets ( bangus, tilapia, carp, lapu - lapu, etc.)• steaks (tangigue, tuna, etc.)steaks (tangigue, tuna, etc.)• split/deboned (bangus)split/deboned (bangus)• CustomizationCustomization

Processing convenience foodsProcessing convenience foods• Peeled, in brine either chilled or heat - treatedPeeled, in brine either chilled or heat - treated• battered and breaded productsbattered and breaded products• extruded cooked productsextruded cooked products• Breakfast/lunch/dinner packsBreakfast/lunch/dinner packs

Functional foodsFunctional foods fortified with calcium, Beta carotene,vitamins, etc.fortified with calcium, Beta carotene,vitamins, etc.

Kosher products and Kosher products and HalalHalal foods foods


MARKETING PRINCIPLES

( put into practice by Alsons Aqua )



QUALITY

• Complete Process from fry to processed products.

• Harvest produce at peak quality and size with “walang lasang-gilik” and full thickness of belly fat.

• Full maintenance of cold chain

• Immediate processing within few minutes of harvest


SERVICE• On time delivery

• Consistent Volume

• Price


AVAILABILITY• Dealers

• Supermarkets

• Insures having products all the time

• Institutional Outlets


VARIETY

• Basic Fish

• Value-added

• Prepared Foods


EMPLOYEES / EQUIPMENTS

• Trained Personnel

• Qualified People

• Investment in Equipments

CONCLUSION :CONCLUSION :

Trends in the marketTrends in the market• Increased popularity of seafoodIncreased popularity of seafood

• Consumers’ Preference for ready to cook foodConsumers’ Preference for ready to cook food

• Adoption of international flavors preferably Adoption of international flavors preferably ethnic/Asian cuisineethnic/Asian cuisine

• Fast food gastronomy (Fast food gastronomy (diners, ready to eat lunchdiners, ready to eat lunch))

• Institutional packed seafood productsInstitutional packed seafood products


Alsons Aqua Technologies Inc.

THANK YOU

S.W.O.T. MARKETING STRATEGIES



S trengths : unique advantages vs. competition

W eakness : vulnerable points vs. competition

O pportunities : Positive Situations enhancing company in the industry

T hreats : entry of new competitors

WHAT isWHAT is S. W. O. T.S. W. O. T. ? ?

SS trenghtstrenghts• Steady supply of bangus fry for our grow-out Steady supply of bangus fry for our grow-out

(raw materials )(raw materials )

• Hatches own fish, feeds and grows in Hatches own fish, feeds and grows in unpolluted waters of Sarangani Bayunpolluted waters of Sarangani Bay

• Use of cutting-edge feeding and growing Use of cutting-edge feeding and growing technologies.technologies.

• Well-program Production SystemWell-program Production System

• Preserved quality in the processing systemPreserved quality in the processing system

• Processing Plant have first choice of best Processing Plant have first choice of best quality fish vs. traditional salvage operationquality fish vs. traditional salvage operation


WW eaknesseseaknesses• High Price ImageHigh Price Image

– Vacuum packVacuum pack– High qualityHigh quality– Big sizesBig sizes

• Production SchedulingProduction Scheduling– New Products New Products – CustomizationCustomization– Volume considerationVolume consideration

• Packaging Packaging – high import taxes on equipment and packaging materialhigh import taxes on equipment and packaging material– lack of supplierlack of supplier– limited designlimited design– expensiveexpensive– compliance with mandatory labelingcompliance with mandatory labeling


OO pportunitiespportunities• Local MarketLocal Market

strengthening of marketing and distribution areas of strengthening of marketing and distribution areas of value-added productsvalue-added products

production of import substitute (influx of products as an production of import substitute (influx of products as an effect of WTO membership)effect of WTO membership)

contract producecontract produce Health foodHealth food

• Foreign marketsForeign markets great demand for new product forms among Filipinos great demand for new product forms among Filipinos

abroadabroad emergence of new marketsemergence of new markets world demand for health foodworld demand for health food



TT hreats hreats ( competition)( competition)

New Entrants

Suppliers Buyers

Substitutes

Industry Competitors

Intensity of Rivalry

Bargaining Power of Suppliers

Threat of New Entrants

Threat of Substitutes

Bargaining Power of Buyers

DEALERSHIP PROGRAM


Its easy to know if you are the dealer we want,

simply ask yourself the following questions…


Do you want to go into

business w/ minimal capital?


Do you want a business

with high returns

on small investment?


Do you want a product that is saleable?


Do you want to succeed

because you like what you’re

doing?


Do you want to do business in

your spare time?


Do you want to meet & relate with people?


Do you have the willingness

to make that extra income?


We’ll look forward to meeting and doing business with new

dealers.

If you’ve answered “yes” everytime,

CONGRATULATIONS!!!


DEALERSHIP PACKAGEA ) VOLUME

DISCOUNTSB ) TERMS OF PAYMENT

C ) MERCHANDISING SUPPORT

D ) FREEZER PROGRAM

E ) INCENTIVE PROGRAM


REQUIREMENTS FROM DEALER

o INITIALLY BUY PRODUCTS ON COD

o MINIMUM OF 50 KILOS START UP VOLUME INITIALLY

PROPER HANDLING OF AATI PRODUCTS

QUALITY STANDARDS OF AATI

PUSH OTHER PRODUCTS OF SARANGANI BAY

INCREASE SALES & NO. OF CUSTOMERS

NOT TO TAP OTHER DEALERS CUSTOMERS

NOT TO ENGAGE IN UNDERPRICING OTHER DEALERS


Alsons Aqua Technologies Inc.

THANK YOU

MARKETING STRATEGIES FOR VALUE ADDED FISHERY PRODUCTS By: Mr. Jimmy A. To Marketing Manager Alsons Aquaculture Corp.

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