Download Distribution In The Agricultural Industry(Poultry

Distribution In The Agricultural
Industry(Poultry And Snail
Farming)
Awosanmi V.O. PhD MBA
Folawiyo Farms Ltd, Ilora
Marketing Mix
• Blending the four strategy elements of market
decision making to satisfy chosen consumer
segments
•
•
•
•
Product
Pricing
Place/distribution
Promotion
• The degree of marketing success is determined by
combination of the four variables
Distribution
• Activities, decisions and marketing
intermediaries involved in moving products
and services to consumers and industrial
users
• Objective is getting the right goods to the
right places at the right time for the least
cost
Poultry and Snail Products
• Poultry– Eggs and further processed products
– Poultry meat and further processed
products
– Day-old chicks(pullet,broiler and parent’s
stock)
– Live birds(culled layers and breeders,live
broilers
– Hatching eggs
• Poultry and Snail Products (contd)
• Snail
– Shelled snail
– Frozen snail
Distribution Channels
• The distribution of poultry flocks does not
coincide with the geographical distribution of
consumers hence necessity for distribution
channels
• Distribution channels are marketing bridges
between producer and consumer or industrial user
– Responsible for physical and title flow of goods and
services
– Marketing intermediaries (wholesale and retail)
Producers
Channels
Consumers
The Role Of Distribution Channels
• Specialists in performance of marketing
functions rather than producing or
manufacturing
• They perform these activities more
efficiently than producers or consumers
Types of Distribution Channels
• Literally hundreds of marketing
channels exist today and there is no
such thing as one best distribution
channel
• Proper channels have to be chosen,
monitored and adjusted when
necessary
Types of Distribution Channels(contd)
• Producer to consumer or industrial user(industrial
goods)
• Producer to wholesaler to retailer to
consumer(consumer goods)
• Producer to wholesaler to industrial user
• Dual distribution uses two or more distribution
channels to reach the same target market. To
maximize coverage in the market place or make
marketing effort more cost effective
Distribution of Poultry Products
In Practice
• The development of distribution channels in
the poultry industry depends on
product,market analysis, producer and
competitive factors
• In general since poultry products are
perishable, they require relatively short
channels, directly to the retailer or ultimate
consumers
Eggs
• Among the most delicate and perishable
food products,are subject to deterioration
and easily affected by surroundings
• Consumers are quick to discriminate against
poor eggs, it is important to produce right
kind of eggs and handling to reach
consumers with the least possible loss of
original quality
Eggs(contd)
• Most farmers are small/medium scale with
limited financial,managerial and marketing
resources hence compelled to utilize
intermediaries in marketing products
• Production concerns have been priority with
marketing an after-thought
Manufacturing
Industry
Commercial
Eggs
Retail
Outlets
Wholesale
Distributors
Egg
Products
Consumers
Institutions
Poultry Meat(Frozen Chicken)
• The product has more developed marketing than
eggs. Emergence of fast food sector has
encouraged significant expansion in poultry meat
production and marketing
• The line requires financial buoyancy hence
producers have to hire own sales force,blast freeze
and refrigerate / warehouse products and grant
credit to wholesalers or consumers
• Distribution is mostly by direct marketing
Frozen Chicken(contd)
• However advantage is being taken of high
profit margin at the retail end of the market
by setting up retail shops. This also assists
in disposal of off-size chicken(under and
oversize) since the market has specific size
requirements
Institutional
Outlets
Processor
Retail
Wholesale
Distributor
Consumers
Day- Old Chicks
• The product is live,delicate and market is
most sensitive to quality considerations
• The big players handle most of the
distribution although the wide spread of the
market makes reliance on back up of
marketing intermediaries inevitable
Live Broilers/ Culled Layers
• This segment is firmly in the hands of
marketing intermediaries who sell to
retailers in open markets on daily or market
day basis
• Demand is higher during festive seasons
Shelled Snail/Frozen Snail
• Attention more on production than
marketing
• Distribution mostly limited to retailing(open
market/road-side) for shelled snail and meat
shops for frozen snail
The Future
• The industry is facing challenges of
declining profit margins due to astronomic
cost of production,declining demand for
products and unfriendly operating
environment
• Effective distribution of products employing
a dual approach will certainly enhance
profitability
The Future(Contd)
• Adequate geographical spread of
distribution can be advantageous
• Each account has to be accorded a
personalized approach to enhance mutually
beneficial long term relationship in the face
of stiff competition