STRATEGIES FOR MARKETING LIVESTOCK FEED AND MEAT
Marketing as a concept is based on two fundamental belief (station, 1981): all activities of a firm (or producer), including planning, operations, and policies should be oriented towards the consumer (or customers), and profitable sales volume should be the goal of every firm. Consequently the firms activities should be devoted to determining what the consumers wants are and to satisfying these wants while still making a reasonable level of profit. In the case of livestock producers, especially if they are small holders, the public sector has a role to play in advising the farmers on what products are in demand and in assisting them to develop and promote consumption of new livestock-based products whenever feasible. Hence marketing may be viewed as a social and managerial process through which individuals and groups obtain what they need and want by creating and exchanging products of value with each other.
Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage (Baker, 2008). Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives (Homburg, et al., 2009).
Marketing strategies serve as the fundamental underpinning of market plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, industry, nation, however time horizon are becoming shorter as the speed of change in the environment increases (Aaker, 2008). Marketing strategies are dynamic and interactive. Market strategy involves careful scanning of the internal and external environments. Internal environmental factors include the marketing mix plus performance analysis and strategic constraints (Aaker, 2008). External environmental factors include customers analysis, competitors analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a company over arching mission statement (Baker, 2008). Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation (Aaker, 2008). A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan.
TYPES OF STRATEGIES
Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing scheme is presented below.
Strategies based on market dominance;
In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies.
Poster generic strategies;
Strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. It also makes use of product differentiation, cost leadership, market segmentation, innovations strategies. This deals with the firms rate of new product development and business model innovation. Model innovation asks whether the company is on the cutting edge of technology and business innovation. There are three types;
In growth strategies, a question is asked. “How should the firm grow?”.
There are a number of different ways of answering that question, but the most common answers are:
Horizontal integration is a strategy used by a business or corporation that seeks to sell a type of product in numerous markets. It occurs when a firm is being taken over by, or merged with another firm which is in the same industry and in the same stage of production as the merged firm.
Vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or services and the products combine to satisfy a common need.
Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets.
REAL LIFE MARKETING
Real life marketing primarily revolves around the application of a great deal of common sense dealing with a limited number of factors in an environment of imperfect information and limited resources complicated by uncertainty and tight time scales. Many new products will emerge from irrational process and the rational development process may be used screen out the worst non-runners. The design of the advertising, and the packaging will be the output of the creative minds employed.
MARKETING OF LIVESTOCK MEAT
Meat is one of the major types of livestock products which have been accorded development priority in most countries in sub-Saharan Africa. As in the case of the live animals, there are both formal and informal marketing systems for livestock products in most of the countries in the region. However the channels through which meat is marketed is relatively more diverse and complex than in the case of live animals.
A review of available literature on the marketing of meat in general and beef in particular shows that red meat rather than processed (or canned) meat is the most marketed type of meat product. Both formal and informal channels for beef and meat marketing exist in a number of countries in eastern and southern Africa. Experiences in Kenya indicate that the formal channel often faces stiff competition from private butchers and thus experience major difficulties in meat marketing (chemonics international, 1977).
The major cause of operational problems for the formal meat marketing channels is the fact that they often have to follow gazetted (official) prices, so that their marketing margins tend to be rigid and often low. This of course may be the case for most commodities that are traded through formal channels, but the problem appears to be more acute in the case of meat marketing. Butchers appear to compete heavily on the basis of product differentiation. Depending on the income classes that they wish to sell their meat to, the butcher may charge as much as his particular market can absorb (Karugia, 1991).
Meat can be stored and marketed over longer time periods especially if kept under refrigerated conditions. The location of butcheries and their cleanliness relative to residential areas will certainly influence the type of customers who buy from the particular butcheries. The butcher’s prestige and the type of service services offered to the customers will be important variables in meat retailing (Tewoldeberhan, 1976; Karugia, 1991).
All these factors will give rise to a permutation of possible strategies and options for meat marketing.
MEAT MARKETING CHANNEL/STRATEGY
Direct sales to consumers by butcher
Direct sales to consumers by small private butchers
Direct sales to consumers of individual meat houses
Direct sales to consumers by meat sellers
MEAT MARKETING CHANNELS
STRATEGIES FOR MARKETING FEED
Feed is any substance or product including additives, whether processed, partially processed or unprocessed, intended to be used for oral feeding to animals.
MARKETING AND USE
Animal feed should comply with safety and marketing requirements. In particular, it shall
- Be safe
- Not have a direct adverse effect on the environment or animal welfare
- Be sound, genuine, unadulterated, fit for purpose and of merchantable quality.
- Be labeled, packaged and presented in accordance with the applicable legislation and
- Comply with the technical provisions or impurities and other chemical determinants.
Feeds shall not contain materials whose placing on the market or use is restricted or prohibited. The traceability of feed shall be guaranteed at all stages of production, processing and distribution. Feed business operators must therefore be capable of identifying any person who has provided than with feed, a food producing animal or any substance intended or likely to be incorporated into feed. Feed which is likely to be placed on the market shall be labeled or identified appropriately in order to facilitate its traceability.
LABELING AND PRESENTATION
In labeling and presentation of all feed, some things need to be indicated;
- The type of feed
- The name and address of the operator
- The batch or reference number
- The net weight
- The list of additives used
- The moisture content
The labeling and presentation of feed must not misled the user concerning the intended use or characteristics of feed. The mandatory labeling particular shall be clearly visible on the packaging, the container, on a label attached thereto or on the document accompanying the feed.
Feed materials and compound feed shall be placed on the market in sealed packages and containers. However, certain feed may be placed on the market in bulk or in unsealed packages or container. This derogation concerns;
- Feed materials
- Mixtures of grain and whole fruit
- Deliveries between producers of compound feed
- Compound feed delivered by the producers to the users or packaging firms.
- Quantities of compound feed not exceeding 50 kilograms in weight which are intended for the final user and taken directly form a sealed package or container.
- Blocks or licks
FEED MARKETING STRATEGIES/CHANNELS
- Direct sales to retail shops by manufacturing firm
- Direct sales to retailers by manufacturing firms.
- Direct sales to farms by manufacturing firms.
- Direct sales to farms individual sellers by retailers.
- Direct sales to farms individual sellers by manufacturing firms.
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Chemonics international. (1997) livestock and meat industry development study in Kenya. Final report consultancy report, ministry of agriculture, Nairobi, Kenya.
Homburg, C. Sabine, K and Harley, K, (2009). Marketing management. A contemporary perspective 1st ed-London.
Http://wwww.marketingthatworks.tv/ marketing-explained-in-short-easy-words/definition of- marketing-series- marketing-strategy. Html marketing that works. TV marketing strategy.
Karugia, J.T; (1991). Competition and efficiency in beef retailing in a metropolitan area: the case of the city of Nairobi. MSC thesis, university of Nairobi, Kenya.
Marketing basics marketing strategy based on market needs, targets and goals.
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Tewoldeberhan, B.; (1976). The meat retailing system in Nairobi. MSC thesis, university of Nairobi, Kenya.