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AnSci 3085 Sec 4 Marketing Dennis Fennewald, M.S. 573-882-1833 [email protected] Room S-133B Objectives • Give an overview of seedstock marketing and the trends • Give students the tools to make better marketing decisions of commercial calves Syllabus • • • • • • • Seedstock – Marketing Bulls Commercial – Bull Purchase Commercial – Calf Marketing Trading Stockers Field Trips Required Reading UMC BRTF Herefords Seedstock • • • • • Foundation Branding and Advertising Producing bulls Marketing bulls Customer Service Commercial • • • • • • Buying Bulls Foundation Creep-feeding Adding Value to Feeder Calves Retaining Ownership Trading Stockers Field Trips • Stockmanship – Bud Williams Methods taught by Richard McConnell and Tina Williams • No-Risk Ranching – Greg Judy • Dates are April 12 and May 3. Reading • Beef Sire Selection Manual by NBCEC • The 22 Immutable Laws of Branding by Al Ries • Good to Great by Jim Collins • No-Risk Ranching by Greg Judy Optional Reading • Extra Credit!!! • 12 different titles to choose from!!! UMC BRTF Herefords • Website • Pictures – submit 3 photos • Ads – team effort Policy • • • • • NO cell phones, video, or laptops Bring paper, pen and calculator Ask questions Come to my office Show up for Class Grading • • • • • • • • Participation in Class Attend 2 Field Trips Reading – Extra books are Extra Credit Website Pictures – submit 3 photos Ads – team effort Quizzes Final Exam – bring calculator Seedstock Marketing History Seedstock - History Prior to early 1900’s – Hereford, Shorthorn and Angus Assoc formed Early 1900’s – Formation of Beefmaster, Santa Gertrudis, Brangus, Barazona, Braford – Brahman Assoc formed Seedstock 1955 -1975 Hereford and Angus found Dwarfism Prospector 7558 -bred to over 100 dau High Valley 7D7 -dwarf carrier Seedstock - History 1960’s to early 1970’s -imports of CH, SM, GV, TA, SD, LM, SA, MA, CA Seedstock Expanded options allowed unplanned crossbreeding, also known as …….. Seedstock 1990’s - AAA starts to see success by promoting a simple breeding and marketing program 1998 - AGA forms Balancers -Increase production and promotion of hybrid bulls Seedstock Seedstock – 2005 Market Share, est Type British Continental American Total Reg 428,797 223,677 57,417 709,891 % of Total 60 32 8 • Top 10 Breeds have about 90% of Market Share. • Top 7 bos Taurus Breeds have about 84% of Market Share. Seedstock – 2005 Market Share, est Breed AN AR HH SH Total Reg 298,770 43,201 68,826 18,000 428,797 % of British 70 10 16 4 % of Total 42 6 10 3 60 Seedstock – 2005 Market Share, est Breed CH SM GV LM CA MA SA Total Reg 73,542 43,906 27,508 39,595 8,636 11,490 19,000 223,677 % of Conti 33 20 12 18 4 5 8 % of Total 10 6 4 6 1 2 3 31.5 Seedstock – 2005 Market Share, est Breed BM BR SG BN Total Reg 19,017 8,000 7,500 22,900 57,417 % of American 33 14 13 40 % of Total 2.7 1.1 1.1 3.2 8.1 Seedstock – 2006 Breed • AN • AR • HH • CH • SM • GV • LM Reg in MO 22,107 2,344 3,200 3,402 2,839 Rank in the US 4 8 6 4 4 Seedstock • Early 1900’s – Shorthorn • Gain due to Eastern Dominance (dual purpose) • Lost due to Western Expansion? • 1927 – Longhorns had to be saved from extinction • Mid-1900’s – Herefords (H & P) • Gain due to Western Expansion – worked better than Shorthorns in the West • Lost due to dwarfism (Snorter) • Horns Seedstock • Early 2000’s – Angus • • • • Gain due to CAB (Angus Mania) Promote simple breeding program 100% Polled Aggressive leadership • Lost due to ………..? – Over-confidence – Arrogance (every Angus is better than the competition) – Commercial producers rediscover hybrid vigor Seedstock Marketing Commodity or Consumer Monopoly Business purpose To create a customer Commodity • Where the decision to purchase the product is based on PRICE • Producer has very little control over setting the price • You can “take it or leave it” Commodity • Typically the ROI is less than 12% (the average ROI in the stockmarket) • ROI is totally based on being a Low-Cost Producer Consumer Monopoly • • • • If the store does not carry it, they lose sales ROI potential is greater than 12% Inflation does not impact the ROI Elite, brand name Consumer Monopoly • You can’t live without it. • Manufacturer hopes it gets used quickly so you have to come back to buy more. Seedstock Producer • provide genetic material in a user friendly package which improves the profitability of the commercial producer. • Provides customer service which may include education, buy-back, etc • Sells Genetic Value, not Pounds. • Deliver what you promise • Fill their needs/wants