December 1, 2011 Presentation by Richard Bussanich, Biologist Okanagan Nation Alliance

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1 December 1, 2011 Presentation by Richard Bussanich, Biologist Okanagan Nation Alliance

2 Overview Enviro scan Strategy Process Behaviour QVS model Promotion Pricing Resources

3 Marketing DEFINITION Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. American Marketing Association It is the art of creating genuine customer value. It is the art of helping your customers become better off. Dr. Phillip Kotler

4 Environmental Scan TRENDS Globalization Hyper-competition Internet Biotechnology (protein-oils) Fish Industry Defragmentation SOLUTION - Offering the best value: better targeting -select customers differentiation product Positioning branding the image strategic allies - customers, suppliers, providers, public performance metrics quality assurance real time solutions

5 Farmed Atlantic Salmon Prices have come down again significantly over the last week due to increased harvests in all areas and an influx of European fish from Scotland and Norway. Norway has been banned from selling fish to China and will continue to send fish to the US for the time being. Prices are at a 2 year low, but should remain soft for the next few weeks. Expect pricing to remain steady over the coming weeks. Prices are soft, but not expected to decrease again dramatically over the coming weeks. Supply is good in all areas and there are good opportunities on European fish.

6 Oct-01 Feb-02 Jun-02 Oct-02 Feb-03 Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06 Feb-07 Jun-07 Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Price $/kg (US) % Change (1-Month Lag) 9 8 Farmed Atlantic Salmon Price Trend SOURCE:

7 Model: Relationships Legitimacy Long-term RELATIONSHIP BUILDING: The story : Product is not just a fish Meaningful: What is your way? Limited stock, limited availability, exclusivity TOOLKIT Primary survey questionnaire Taste panel (focus groups) Observational studies (in-store demos) Expert referral-audit Client relations management system Customer audits Co-branding Cross merchandising

8 Bowman s Strategy Clock

9 Tag Statements: Okanagan Sockeye Salmon Select Wild, Local, Sustainable, OceanWise approved Responsible Trade Salmon Lake-to-Plate in less than 24 hours A good news story: Cause to come back Available First time in over 75 years Partial proceeds to fish conservation * local jobs Okanagan s best kept secret!

10 Key Integrated Marketing Process Supplier Value Chain Intellectual Property Cultural Events - $100 + Sockeye Biodiversity Credits Tourism (Eco- Interpretive Tours, Nk Mip RV Park) (1) opportunity identification, (2) new product development, (3) client attraction, (4) client retention and loyalty building, and (5) value fulfillment.

11 Customer Buying Behaviour Marketing Inputs 7 P s Product Price Promotion Place People Planet Politics CONSUMER Psychological Inputs Culture Attitude Learning Perception Purchase Decisions Product Choice Location Choice Brand Choice Other Choices

12 100, 200, & 300 Mile Diet Winter, Spring, Summer, & Fall Retail Direct Marketing Food Service Direct Marketing

13 Implementation First Nation Vision: QVS River Branding Inland Salmon Fisheries Vision Statement: To promote inland salmon fisheries, the river fishing cultures, and the high quality natural and wholesome food that is produced, as certifiably sustainable, healthy, and good value.

14 Quality Okanagan Wine Industry Model Authenticates origins Effective traceability Quality management Certification COUNTRY FRANCE CANADA CANADA Q AUTHENTICATION D.O.C VQA QVS REGION BORDEAUX OKANAGAN HARRISON PRODUCER WINERY X ROAD 13 STS AILES WINE MARGAUX FIFTH ELEMENT FILLET VARIETAL GRAPE BLEND SOCKEYE

15 Responsible Trade

16 Responsible Trade Respect Relevance Relations

17 Sustainability Eco-Label Factoids: the green fish consumer in the Okanagan Region FAO Code of Conduct for Responsible Fishing (CCRF) Consumer acceptance and demand: 1 in 3 respondents willingness to purchase with eco-label Consumer willingness: 1 in 15 respondents pay 10-20% higher margin for eco-label; Domestic Food service #1 Ocean Wise Domestic Food Retail #1 MSC anadian Okanagan Basin Technical Working Group (1997) Okanagan Nation Colville Tribes Ad-hoc Bilateral Okanagan Basin Technical Working Group (2001) Various partnerships with governments and NGOs

18 Promotion Awareness/Interest Personal selling Telemarketing Direct mail (CRM) Trade fairs and exhibitions Web, ListerServers, Social Media Commercial television Newspapers and magazines Radio Kiosks Point of sale displays Packaging Change Behaviour Personal selling Direct mail (CRM) Point of sale displays Packaging Social Media Testimonial s

19 Pricing Strategies Researching Value Revise the discount structure Change the minimum order size Charge for delivery and special services Charge for rushed orders Collect interest on overdue accounts Produce less of the lower margin models in the line Write penalty clauses into contracts Change the physical characteristics of the product (i.e. portion size) One Wild Earth Kevin Dunn

20 Pricing Strategies Food Service Premium pricing (high quality) Price skimming (intro) Psychological (emotional) Optional extras (+ caviar) Product bundling (multi-species) Geographical (Okanagan) Food Retail Penetration (lo-to-hi) Product line (lb vs ½ lb) Captive product (salmon on plank) Geographical (Okanagan) One Wild Earth Kevin Dunn

21 Resource Kit Branding Strategic planning Strategic Management Strategic planning-porter Fish pricing trends hs=120&commodity=fish ONA

22 Lim Limpt Thank you

23 For More Information Richard Bussanich, Biologist Toll Free

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