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MARKETING STRATEGIES FOR VALUE ADDED FISHERY PRODUCTS. By: Mr. Jimmy A. To Marketing Manager. Alsons Aquaculture Corp. Presentation Outline. Bangus Industry Overview Value-Added Products Marketing Strategies ( S.W.O.T.) Marketing Principles Dealership Program.

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MARKETING STRATEGIES FOR VALUE ADDED FISHERY PRODUCTS


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

    2. Presentation Outline • Bangus Industry Overview • Value-Added Products • Marketing Strategies ( S.W.O.T.) • Marketing Principles • Dealership Program Alsons Aquaculture Corp.

    3. BANGUS INDUSTRY OVERVIEW Alsons Aquaculture Corp.

    4. 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. Alsons Aquaculture Corp.

    5. 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. 

    6. 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.

    7. PRODUCT SEGMENT PRODUCT SEGMENT MARGINS P PREPARED FOODS P FRESH / SEMI PROCESSED FISH P BASIC FISH Alsons Aquaculture Corp.

    8. VALUE-ADDED PRODUCTS Alsons Aquaculture Corp.

    9. WHAT is Value – Added ? • Added cost of a product • from the time the raw material enters the processing plant to the time it leaves. • The increase in worth or value of a product • after undergoing simple or complex processing operations. Alsons Aquaculture Corp.

    10. WHY Value – Added ? • For better income • For improved processing utilization • To keep in-phase with consumers needs • To provide variety of products Alsons Aquaculture Corp.

    11. Ways of Adding Value • Improving market forms • fillets ( bangus, tilapia, carp, lapu - lapu, etc.) • steaks (tangigue, tuna, etc.) • split/deboned (bangus) • Customization • Processing convenience foods • Peeled, in brine either chilled or heat - treated • battered and breaded products • extruded cooked products • Breakfast/lunch/dinner packs • Functional foods • fortified with calcium, Beta carotene,vitamins, etc. • Kosher products and Halal foods Alsons Aquaculture Corp.

    12. MARKETING PRINCIPLES ( put into practice by Alsons Aqua ) Alsons Aquaculture Corp.

    13. 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 Alsons Aquaculture Corp.

    14. SERVICE • On time delivery • Consistent Volume • Price Alsons Aquaculture Corp.

    15. AVAILABILITY • Dealers • Supermarkets • Insures having products all the time • Institutional Outlets Alsons Aquaculture Corp.

    16. VARIETY • Basic Fish • Value-added • Prepared Foods Alsons Aquaculture Corp.

    17. EMPLOYEES / EQUIPMENTS • Trained Personnel • Qualified People • Investment in Equipments Alsons Aquaculture Corp.

    18. CONCLUSION :Trends in the market • Increased popularity of seafood • Consumers’ Preference for ready to cook food • Adoption of international flavors preferably ethnic/Asian cuisine • Fast food gastronomy (diners, ready to eat lunch) • Institutional packed seafood products Alsons Aquaculture Corp.

    19. Alsons Aqua Technologies Inc. THANK YOU

    20. S.W.O.T. MARKETING STRATEGIES Alsons Aquaculture Corp.

    21. WHAT isS. W. O. T. ? 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 Alsons Aquaculture Corp.

    22. Strenghts • Steady supply of bangus fry for our grow-out (raw materials ) • Hatches own fish, feeds and grows in unpolluted waters of Sarangani Bay • Use of cutting-edge feeding and growing technologies. • Well-program Production System • Preserved quality in the processing system • Processing Plant have first choice of best quality fish vs. traditional salvage operation Alsons Aquaculture Corp.

    23. Weaknesses • High Price Image • Vacuum pack • High quality • Big sizes • Production Scheduling • New Products • Customization • Volume consideration • Packaging • high import taxes on equipment and packaging material • lack of supplier • limited design • expensive • compliance with mandatory labeling Alsons Aquaculture Corp.

    24. Opportunities • Local Market • strengthening of marketing and distribution areas of value-added products • production of import substitute (influx of products as an effect of WTO membership) • contract produce • Health food • Foreign markets • great demand for new product forms among Filipinos abroad • emergence of new markets • world demand for health food Alsons Aquaculture Corp.

    25. Threats ( competition) New Entrants Threat of New Entrants Industry Competitors Bargaining Power of Suppliers Bargaining Power of Buyers Suppliers Buyers Intensity of Rivalry Threat of Substitutes Substitutes Alsons Aquaculture Corp.

    26. DEALERSHIP PROGRAM Alsons Aquaculture Corp.

    27. Its easy to know if you are the dealer we want, simply ask yourself the following questions… Alsons Aquaculture Corp.

    28. Do you want to go into business w/ minimal capital? Alsons Aquaculture Corp.

    29. Do you want a business with high returns on small investment? Alsons Aquaculture Corp.

    30. Do you want a product that is saleable? Alsons Aquaculture Corp.

    31. Do you want to succeed because you like what you’re doing? Alsons Aquaculture Corp.

    32. Do you want to do business in your spare time? Alsons Aquaculture Corp.

    33. Do you want to meet & relate with people? Alsons Aquaculture Corp.

    34. Do you have the willingness to make that extra income? Alsons Aquaculture Corp.

    35. If you’ve answered “yes” everytime, CONGRATULATIONS!!! We’ll look forward to meeting and doing business with new dealers. Alsons Aquaculture Corp.

    36. DEALERSHIP PACKAGE A ) VOLUME DISCOUNTS B ) TERMS OF PAYMENT C ) MERCHANDISING SUPPORT D ) FREEZER PROGRAM E ) INCENTIVE PROGRAM Alsons Aquaculture Corp.

    37. REQUIREMENTS FROM DEALER • INITIALLY BUY PRODUCTS ON COD • 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 ADHERENCE COMMITMENT Alsons Aquaculture Corp.

    38. Alsons Aqua Technologies Inc. THANK YOU