Transcript VALUE - ADDED FISHERY PRODUCTS

MARKETING STRATEGIES
FOR VALUE ADDED FISHERY
PRODUCTS
Alsons Aquaculture Corp.
By: Mr. Jimmy A. To
Marketing Manager
Presentation Outline
• Bangus Industry Overview
• Value-Added Products
• Marketing Strategies ( S.W.O.T.)
• Marketing Principles
• Dealership Program
Alsons Aquaculture Corp.
BANGUS INDUSTRY
OVERVIEW
Alsons Aquaculture Corp.
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.
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.
PRODUCT SEGMENT
PRODUCT SEGMENT
PREPARED
FOODS
FRESH / SEMI
PROCESSED FISH
BASIC FISH
Alsons Aquaculture Corp.
MARGINS
P
P
P
VALUE-ADDED
PRODUCTS
Alsons Aquaculture Corp.
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.
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.
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.
MARKETING
PRINCIPLES
( put into practice by Alsons Aqua )
Alsons Aquaculture Corp.
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.
SERVICE
• On time delivery
• Consistent Volume
• Price
Alsons Aquaculture Corp.
AVAILABILITY
• Dealers
• Supermarkets
• Insures having products all
the time
• Institutional Outlets
Alsons Aquaculture Corp.
VARIETY
•
Basic Fish
• Value-added
• Prepared Foods
Alsons Aquaculture Corp.
EMPLOYEES / EQUIPMENTS
• Trained Personnel
• Qualified People
• Investment in Equipments
Alsons Aquaculture Corp.
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.
Alsons Aqua Technologies Inc.
THANK YOU
S.W.O.T.
MARKETING
STRATEGIES
Alsons Aquaculture Corp.
WHAT is S. W. O. T. ?
S
trengths :
W eakness :
unique advantages vs. competition
vulnerable points vs. competition
O pportunities : Positive Situations enhancing
company in the industry
T hreats
:
entry of new competitors
Alsons Aquaculture Corp.
S trenghts
• 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.
W eaknesses
• 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.
O pportunities
• 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.
T hreats ( competition)
New Entrants
Threat of New
Entrants
Bargaining Power
of Suppliers
Industry
Competitors
Suppliers
Bargaining Power
of Buyers
Buyers
Intensity of
Rivalry
Threat of
Substitutes
Substitutes
Alsons Aquaculture Corp.
DEALERSHIP
PROGRAM
Alsons Aquaculture Corp.
Its easy to know if you are
the dealer we want,
simply ask yourself the
following questions…
Alsons Aquaculture Corp.
Do you want to
go into
business w/
minimal
capital?
Alsons Aquaculture Corp.
Do you want a
business
with high returns
on small
investment?
Alsons Aquaculture Corp.
Do you want a product that is
saleable?
Alsons Aquaculture Corp.
Do you want to
succeed
because you
like what you’re
doing?
Alsons Aquaculture Corp.
Do you want to
do business in
your spare time?
Alsons Aquaculture Corp.
Do you want to meet & relate
with people?
Alsons Aquaculture Corp.
Do you have
the willingness
to make that
extra income?
Alsons Aquaculture Corp.
If you’ve answered “yes” everytime,
CONGRATULATIONS!!!
We’ll look forward to
meeting and doing
business with new
dealers.
Alsons Aquaculture Corp.
DEALERSHIP PACKAGE
A ) VOLUME DISCOUNTS
B ) TERMS OF PAYMENT
C ) MERCHANDISING SUPPORT
D ) FREEZER PROGRAM
E ) INCENTIVE PROGRAM
Alsons Aquaculture Corp.
REQUIREMENTS FROM DEALER
INITIALLY BUY PRODUCTS ON COD
o
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 Aquaculture Corp.
Alsons Aqua Technologies Inc.
THANK YOU