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

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

Breed Category• Angus The Business Breed.• Red Angus For all the right reasons.• Hereford The Efficiency Experts.• Charolais Smoke in your eyes.• Simmental Committed• Gelbvieh Continental Breed of Choice• Limousin Muscle. 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 10-12 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 Buildup3. The Recruitment of Allies4. The Bottom-up Rollout5. The Modification of the Product6. Modification of the Message7. 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.