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2006 Genetics & Marketing Workshop June 8 th, 2006Niagara Falls, Ontario EBI Marketing Approaches & Initiatives By: Barry Mooney Manager of Marketing &

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Presentation on theme: "2006 Genetics & Marketing Workshop June 8 th, 2006Niagara Falls, Ontario EBI Marketing Approaches & Initiatives By: Barry Mooney Manager of Marketing &"— Presentation transcript:

1 2006 Genetics & Marketing Workshop June 8 th, 2006Niagara Falls, Ontario EBI Marketing Approaches & Initiatives By: Barry Mooney Manager of Marketing & Field Services

2 4 Sections to Cover Competition Competition Tools Tools Initiatives & Initiatives & New Marketing Approaches New Marketing Approaches

3 Competition (in order of market share) Bull – low managed herds Bull – low managed herds ABS – rep service & sales ABS – rep service & sales Tie up herds with deals Tie up herds with deals Select – rep service & sales Select – rep service & sales Cheap, dump the semen & run Cheap, dump the semen & run Genex – Toystory Genex – Toystory Alta – cheap price, high pressure Alta – cheap price, high pressure Genervations – pair bulls & discount Genervations – pair bulls & discount Foundation – hit Y.S. herds with Foundation – hit Y.S. herds with dream of show cattle Ex-classifier knows breeders well Ex-classifier knows breeders well

4 Major Challenges Dairy industry lacks finances Dairy industry lacks finances Middle age producers selling out Middle age producers selling out Trend to large herds Trend to large herds Large herd mentality is different Large herd mentality is different

5 Large Herd Mentality Price sensitive Price sensitive Only buy with a Deal Only buy with a Deal Not always committed to breed improvement Not always committed to breed improvement Management changes Management changes No time or interest in talking genetics No time or interest in talking genetics Everyone desperately fighting for shrinking customer base Everyone desperately fighting for shrinking customer base Loyalty to EBI hard to maintain Loyalty to EBI hard to maintain

6 Some EBI background At end of 06, maintained 70% market share At end of 06, maintained 70% market share Dairy potential calculated by 1 kg of quota equals 1 cow x 2.52 breedings Dairy potential calculated by 1 kg of quota equals 1 cow x 2.52 breedings EBI ON averages 16.2 km/service (EBIA 26.0) EBI ON averages 16.2 km/service (EBIA 26.0) Price of fuel jumped considerably Price of fuel jumped considerably Other AI companies set up arm service in concentrated cow population areas Other AI companies set up arm service in concentrated cow population areas EBI is committed to service all clients inseminations EBI is committed to service all clients inseminations

7 Some EBI background (cont) In ON, year to date average 282 cows bred/day In ON, year to date average 282 cows bred/day Each rep averages 15.5 per day Each rep averages 15.5 per day In NB, 28 cows per day (each rep averages 9.5 per day) In NB, 28 cows per day (each rep averages 9.5 per day) Sale YTD = 28,447 Sale YTD = 28,447 YTD $ blend price (sales & inseminations) YTD $ blend price (sales & inseminations) We need to capture more market share!

8 Tools (to maintain & grow business) Most valuable: Most valuable: Vantage – YS program Vantage – YS program ProGen – on-farm mating and with classification ProGen – on-farm mating and with classification Proof day info – proof sheets, bull comparison from competition, proof categories, changes, education Proof day info – proof sheets, bull comparison from competition, proof categories, changes, education Product – always available to sell Product – always available to sell Quality product Quality product Regular staff meetings – info & planning Regular staff meetings – info & planning Agri-Products – teat dips, udder health products, light bulbs, breeding supplies Agri-Products – teat dips, udder health products, light bulbs, breeding supplies

9 Tools (to maintain & grow business) Most valuable (cont): Most valuable (cont): MDS genetic advice to breeders MDS genetic advice to breeders ReproMax ReproMax Beef embryos for conception Beef embryos for conception Two Plus alternative Two Plus alternative New semen buy back program New semen buy back program

10 Initiatives and New Marketing Approaches Introduction of a new field setup in 04 Introduction of a new field setup in 04 Allowed more genetic advice on-farm – all farms Allowed more genetic advice on-farm – all farms MDS now part of marketing and product support MDS now part of marketing and product support See daughters of upcoming bulls and reps are more confident to educate the breeders See daughters of upcoming bulls and reps are more confident to educate the breeders Now help monitor contract YS herds and help seek out potential YS to picture or for tours Now help monitor contract YS herds and help seek out potential YS to picture or for tours New pay structure helps ensure maximum herds stay as arm service herds (retains market share) New pay structure helps ensure maximum herds stay as arm service herds (retains market share) Arm reps paid a bonus on conception Arm reps paid a bonus on conception

11 Sponsor cattle shows and meetings with promo items Sponsor cattle shows and meetings with promo items At least one team member attends all agricultural events within their area to be part of the community At least one team member attends all agricultural events within their area to be part of the community Distribute promo material (ie. flyers, proof sheets, breeder articles, newsletter) Distribute promo material (ie. flyers, proof sheets, breeder articles, newsletter) Manage two EBI showcases as a commitment to youth Manage two EBI showcases as a commitment to youth Each year about H members participate Each year about H members participate One in ON and one in Maritimes One in ON and one in Maritimes Average cost is about $40,000 Average cost is about $40,000 Initiatives and New Marketing Approaches cont

12 Initiatives and New Marketing Approaches (cont) All MDS reps have a lap top and are wired in the field All MDS reps have a lap top and are wired in the field More Recently…. all staff now have their vehicles with EBI logos all staff now have their vehicles with EBI logos Well identified in the field Well identified in the field All new field staff have company vehicles All new field staff have company vehicles All field staff wear logoed EBI Carhartt overalls All field staff wear logoed EBI Carhartt overalls EBI staff help to picture YS daughtersand new contract cows in ON to enhance the image of Eastern ON genetics EBI staff help to picture YS daughtersand new contract cows in ON to enhance the image of Eastern ON genetics

13 Initiatives and New Marketing Approaches (more recently) Each team (area) has a budget of $ 2,500 to work with to promote or ensure future sales Each team (area) has a budget of $ 2,500 to work with to promote or ensure future sales Some events were: Some events were: Bus trips to elite dairy herds Bus trips to elite dairy herds Bus trips to new technology farm tours Bus trips to new technology farm tours Package deal to promote teat dip and prove 1 more YS Package deal to promote teat dip and prove 1 more YS Producer meeting on topics like udder health & fertility Producer meeting on topics like udder health & fertility Family entertainment nights with proceeds to 4-H Family entertainment nights with proceeds to 4-H Breeder education workshops on farm Breeder education workshops on farm ie. Classification system, value of milk recording ie. Classification system, value of milk recording

14 Initiatives and New Marketing Approaches (more recently) Each group works from a business plan designed for their area Each group works from a business plan designed for their area Designed with their input and EBI corporate goals Designed with their input and EBI corporate goals

15 Initiatives and New Marketing Approaches In the planning stage (as we speak): More restructuring for the Atlantic provinces More restructuring for the Atlantic provinces partially done partially done Service rates may change for customers who live off the beaten path and use private semen Service rates may change for customers who live off the beaten path and use private semen Trying a new style of sales truck – a van where the computer, printer and rep have a warm place to work on-farm (ie. ProGen) Trying a new style of sales truck – a van where the computer, printer and rep have a warm place to work on-farm (ie. ProGen) Just finished a planning session and have categorized all customers per area Just finished a planning session and have categorized all customers per area

16 Categorizing Your Customer Listing 1A – Most Wanted Customers Herd Larger than 100 1B – Most Wanted Customers They are new potential customers: Bull Users Uses competition for AI Uses competition for O/B High Maintenance Customers: Perceive Deals Existing Customers: Loyal to staff & product 85% of business 2 – Most Valued Customers 3 – Volatile Customers

17 Categorizing Your Customer Listing 4 – Beef Customers 5 – Other Customers The most valued customers we believe we can keep with the quality product, service and programs we have now (ie. Vantage) We are now designing packages for our Most Wanted Customers as well as our Volatile Customers Hobby farmers & Ln 2 Non Agriculture

18 Next???? Ideas flushed out and now being evaluated for acceptance for incorporation into packages: Know your customer and the system Package must blend semen costs (ie. one price – any bull) Volume of doses to be discounted when bought at one stop (200 or more doses) Package must be perceived as deal Need second proof sheet of bulls which have inventory of semen and can be sold more cheaply Need comparison of bulls from other AI companies (computer – ProGen) Reps must have the right attitude and appreciate this type of breeder

19 Next???? Need ProGen Dont get taken advantage of Develop passion Show value Be persistent Analysis of customer base Get in bed with the right people Strike at the right time Breeder recognition Change as the industry changes

20 Discussion from MDS Meeting BreedersEBIAnswersMaterial Price Price Value Value Prove Profit Prove Profit Innovation: Innovation: Sexed Semen Sexed Semen Repro Max Repro Max Etc… Etc… Partnership Partnership With all producers With all producers ProGen ProGen Package Deal (semen) Package Deal (semen) Prove we have successful products Prove we have successful products Knowledge & expertise Knowledge & expertise Herd management Herd management Daughter tour – knowledge Daughter tour – knowledge Proven success Proven success MACE bull – USA proof MACE bull – USA proof US proven Semex bulls US proven Semex bulls Canadian on US MACE scale Canadian on US MACE scale Secondary proof sheet Secondary proof sheet Package – Most Wanted Customers

21 Herd Management Program Total reproductive management program Work with breeder and vet and with their records stop at farm each day at the same time Breed all cows – maybe sync. Program Attack non-EBI herds or bull users Only attractive if herd is large – over 100 milking cows Maybe identify – pick bulls

22 Contract Young Sire Herd Take over breeding program for herds that we now do: no business dont classify dont register EBI pay for all genetic tools and use the herd as a Young Sire proving contract herd Own the genetic rights but not the cattle Just a few of the ongoing projects at..EBI

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