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

2. Alsons Aquaculture Corp.
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. One result was expected:
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. Value-added milkfish products are able to fetch higher prices.
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. FRESH / SEMI PROCESSED FISH
PRODUCT SEGMENT
PRODUCT SEGMENT
MARGINS P
PREPARED FOODS P
FRESH / SEMI PROCESSED FISH P
BASIC FISH
Alsons Aquaculture Corp.

8. Alsons Aquaculture Corp.
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. ( put into practice by Alsons Aqua ) Alsons Aquaculture Corp.
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 Supermarkets Insures having products all the time
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.
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20. S.W.O.T. MARKETING STRATEGIES Alsons Aquaculture Corp.

21. WHAT is S. 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. 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.

23. W eaknesses High Price Image Production Scheduling Packaging
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. 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.

25. T hreats ( 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. Alsons Aquaculture Corp.
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. Alsons Aquaculture Corp.
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. Alsons Aquaculture Corp.
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. Alsons Aquaculture Corp.
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