Marketing Australia

7/28/2019 Marketing Australia

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Sonya Begg

Orange NSWAustralia

March 2010


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CONTENTS

Background Free-range (open pasture) Snail Production.... 1

- The emergent stage. 1- Sub-commercial stage. 1- Speculative stage. 1- Commercial stage 1

Advantages of Free-range or Open Pasture Snail Production.. 2

Investigating the Market 2

Targeting the Market.. 2

- Key target market for snails. 2- Sub-markets... 2

Selling Snails... 3

Business Plan.. 4

Competitors.. 4

Quality Control 5

Quality Assurance.. 6

Product Mix.. 6

Branding and Packaging.. 6

Potential Sales Volume. 7

Personal Selling.. 7

Advertising 8

Demand for Fresh Snails.. 8

Value Adding 9-Tours and snail tastings 9- Pet food industry 9- Snail caviar. 10- Shells.. 10

Conclusion... 10


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AUSTRALIAN FREE-RANGE SNAILS

MARKETING STRATEGIES

BACKGROUND

FREE-RANGE (OPEN PASTURE) SNAIL PRODUCTION An emerging new rural industry in Australia.

Free-range snail farming is considered a sustainable rural industry in Australia and is definedas an agriculturally-based commercial opportunity or product that is both new to Australiaand new to commercial production.

A legitimate snail farming practice requires a demanding work ethic and patience. It is not aget-rich-quick scheme and a commercial snail farm is one that produces a minimum of

50,000 snails or more each season.

Snails require ample space (for efficient reproduction and development) along with correctnutrition and must be thoroughly and safely purged, prior to being prepared for the table.Quality Assurance should be a potential snail farmers greatest commitment to the industry.

There are several stages of snail farming development before marketing begins.

The emergent stage the initial genesis of the snail farming industry in Australiacommenced when an idea developed into a belief that there was a potentially viablecommercial opportunity.

Sub-commercial stage when snail farming developed a momentum and more peoplebecame interested. This is the time when income starts to be generated but the level ofreturn is usually well below the break-even point.

This typically happens around the second year of free-range production.

Speculative stage this stage can be damaging for the snail farming industry while its inits infancy. Often excessive interest is created by media programs/interviews that tend toinflate expectations.

Backyard operations, snail collectors and pyramid selling schemes rarely enjoy realisticreturns for investment. Inferior snails infiltrate the market and repeat orders are notforthcoming. Prices are often lowered for sales and the reputation of the bona-fide industrysuffers. Along with the lack of a breeding program and insufficient space, the backyardoperator eventually is unable to continue market supply.

Commercial stage this stage occurs usually during the third year of free-range snailproduction. Snails are well acclimatised and the breeding program is properly established,resulting in high snail yields and increased markets.

The grower has a firm understanding about snail behaviour, how to plan crop rotations toprovide optimum food and overcome production and marketing obstacles. The fee-range

snail product is consistent, high quality and supply is able to be maintained. Production has

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developed to the stage of a sustainable and viable operation and profits are able to begenerated.

ADVANTAGES OF FREE-RANGE OR OPEN PASTURE SNAIL PRODUCTION

Increased reproduction Consistent sized snails

Healthy environment Higher yields of snails Excellent quality

Lower mortality rates Maintaining supply More cost effective to establish than previous methods of farming snails

The most ethical method of producing farmed snails.

INVESTIGATING THE MARKET

Market research is a critical step in gathering the information neededto make decisions about your new business it tells you who andwhere your customers are before you develop and establish your snailfarm.

Market trends fluctuate so its important to find out exactly just howmuch demand there is from the markets you are targeting either theregion, state or wherever you intend to sell snails.

There is no benefit in producing a commodity without first determining where it is to be soldand identifying customers needs.

Caution should be adopted when investing in snail farming business opportunities thatpromise a high return with little or no risk. Make sure you get independent financial and legaladvice before signing up or investing any money in a collective or multi-level snail farmingand marketing scheme.

TARGETING THE MARKET

Key target market for snails

Market surveys have identified the key target market for fresh snails in Australia, is to

restaurants that have innovative chefs who prefer to serve quality, local, Australian produce.

Current market research for a fresh snail product has shown that when a selected single-segment concentration strategy was used to penetrate the market it was primarily to high-end restaurants.

However, the market is also broken up into smaller homogenous segments (or sub-markets).

Sub-markets

a) other restaurants that offer modern cuisineb) ethnic restaurants such as Italian, Greek, French and other European restaurants

c) providores/delicatessensd) farmers markets

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e) private catering companiesf) special events/festivals/corporate companiesg) individuals who enjoy eating snails.

It may be necessary to carry out a more intense investigation to determine local demand forthe product.

This can be done by mail, over the telephone, in person or a mixture of these informationgathering methods. A survey is a means of collecting information and should be targeted atexecutive chefs in a broad cross-section of restaurants. The same questions are askedwhether by mail or phone and the results pooled at the end of the exercise.

Target markets can be selected from food and restaurant guides, magazines, newspaperarticles, yellow pages of phone books and the internet.

To be successful, market research should be conducted on a continual basis to keep up withmarket trends and to maintain a competitive edge its vital to understanding your target

market and for increasing sales.

SELLING SNAILS

One of the most important aspects of snail farming is selling your snails. It involves gettingyour snails into the market by educating, promotion and creating a brand image to encouragecustomers to buy your snails.

Marketing creates awareness of your snail product and builds your company's brand andreputation. The consumer wants to know that the price is worth the value of the product.

Also the producer needs to be customer-orientated as well as product orientated. Cater tothe customer and you will usually always maintain this market.

Marketing is supplying the needs of the customer and is mostly governed by the Five Ps:

Product

Positioning

Price

Place

Promotion

Product the product is fresh processed snails, cleaned and prepared, ready to use in thecustomers recipe of choice. All attributes and benefits of the product must be known andavailable to the customer.

Positioning this is the level where the product is delivered into the market arena. e.g.premium or budget, broad market or niche. Fresh Australian snails are usually targeted at thepremium market. i.e. top-end restaurants and niche providores.

Price the best selling price for optimal returns. The current (March 2010) suggestedpricing guide is shown below for top-quality, whole snails, cleaned, purged and shelled.

Wholesale, bulk supplies, basic packaging $12.00 - $15.00 per dozen

Packaged for retail display for markets and events $18.00 - $20.00 per dozen Snail pieces sold in small containers $10.50 per 200 grams

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Place how the product will penetrate into the market. Logistics such as transport,wholesale or retail outlets to carry the finished product are all fundamental to your marketstrategy and the supply chain.

Snails delivered locally or within a short distance to the destination should be chilled andtransported in an insulated container with cooling bricks. Refrigerated transport is thepreferred mode of transport for snail delivery. Transportation can be arranged privately ornegotiated with freight companies for the best rates, the fastest and the most reliable form oftransportation.

Promotion the promotional activity highlights the characteristics and the benefits of theproduct. This includes branding and packaging.

Information brochures, food promotions, product tastings and a website will assist in raisingthe awareness and the advantages of your product to the community and potentialcustomers.

Another PProcess the processes that you use in the day-to-day operation of your business have aflow-on effect on your customer's experience even if it's simply ensuring that orders andmarket supply are effectively managed. These include how you operate your business,quality control, planning, review and continuous improvement of your product, packaging andtransport.

BUSINESS PLAN

A business plan is a document that describes your snail farming business, its objectives,strategies, target market and financial forecasts. It's a blueprint to your business's future.

To save time and money a well prepared business plan will help you determine whether youridea is commercially viable. It will assist in outlining your goals and long-term vision and giveyou insight into the strengths, weaknesses, opportunities and threats.

This plan will help you to determine strategies to successfully operate and market your snailfarming business and to obtain operational finance in the first instance.

Above all, it will test your commitment and motivation.

Further information on marketing and business plans can be sought fromBUSINESS.GOV.AU (http://www.business.gov.au/Pages/default.aspx)

COMPETITORS

You may think your snails are unique and there is little competition, but you should considerhaving a serious look at your competitors.

Put yourself in your prospective customers' shoes and imagine why they should buy yoursnails in lieu of what is already being offered.

Once you determine who your competitors are review their marketing materials. Have a

look at their advertisements, brochures and websites to evaluate if your snails will be afavourable contender to what your competitors are offering.

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QUALITY CONTROL

It is important to realize also that quality is determined by the intended users, so it is vitallyimportant that only the snails that meet quality assurance guidelines are sold to protect theemerging industry of Australian snail farming.

This new and emerging industry cannot afford to be exploited by someone offering inferior,undersized snails, or those collected from gardens just to make a dollar.

Quality control is one of the most important aspects of selling fresh snails. The customerwants to see what the snails look like. That is why it is recommended that only snailsprocessed and extracted from the shell are sold to maintain control of quality. Selling livesnails is not recommended

The difference between unhealthy looking snails and those that are good quality involvesexamination of the extracted snails to identify any that are not suitable for sale.

The quality of the snail is sometimes not known until its extracted from the shell. Sometimesthe snail looks flattened or wizened. A snail should not be sold it if is not plump and healthy.

Quality control is crucial in meeting the required standards of your snail product so that it isdependable, satisfactory, and fiscally sound.

Another important aspect to consider is that many customers, particularly those from othercountries consider they are experienced in cooking snails and are liable to feed them so they

can keep them longer. The guarantee of healthy, properly purged and safe snails isquestioned, if the snails are fed again after leaving your farm.

The grower cannot be responsible for the health of live snails after they arrive at theirdestination.

For these reasons producers are encouraged to sell only cooked and processed snails toensure optimum quality and a safe, clean product.

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Checking quality


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QUALITY ASSURANCE

Quality assurance is a wide ranging conceptcovering all matters that individually or collectivelyinfluence the management of the businessprocesses.

Steps are put in place so that both theproducer/supplier and the customer are satisfiedwith the quality and consistency of your snailproduct and the service provided.

The following are some actions to help to define the expectations of the customer..Plan establish objectives and processes required to deliver the desired results (top-qualitysnails).

Implement implement the process developed.

Review monitor and evaluate the implemented process by testing the results against thepredetermined objectives.

Improve apply actions necessary for improvement if the results require changes.

Instigating a quality assurance system will help to improve farming processes and efficiencyso the snails you are selling are of the highest standard. Customer confidence will bemaintained along with your business credibility. This will assist you to better compete withothers.

The Code of Practice for Free-range Snail Farming In Australiahelps to promote qualityassurance as an integral part of quality control and sustainable snail production. It alsoprovides general principles and advice on the standards for commercial breeding, farmingand processing snails in Australia for the gourmet food industry. The Code of Practice isavailable from Snail Farming Information Service www.snailfarming.net or by phoning 0408659730.

PRODUCT MIX

Freshly harvested snails sold by the dozen as a fresh product canbe offered in two different ways:

The whole snail (no trimming), cleaned, purged, poached,shelled and chilled, packed in spring water

Snail meat (bits and pieces) cleaned, purged, poached,shelled and chilled (for use in dishes such as ravioli andpat and sausages).

NB: Pickled or smoked snails can also be offered as an alternativesnail product.

BRANDING AND PACKAGING

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Branding is a common term used in marketing and isessentially burning your companyname and logo into the mind of your potential customers.

The creation of an eye-catching brand helps you generate a reliable reputation and builds upyour customer base.

Branding includes your company name, logo, colour schemes, domain name, motto etc. It isimportant that the online and offline images of your business should be harmonious.

Packaging and branding is about good presentation that sends a strong message to thecustomer about the product.

To enhance the presentation and first impression of your snail product, pack them carefully(with the coiled side facing out) in glass jars with spring water. This gives a very clear view ofyour high-quality product so customers can see exactly what they are getting.

Vacuum packing may help to extend shelf life but compromises first impression and

presentation of fresh snails especially to consumers who are unfamiliar with snailproducts.

POTENTIAL SALES VOLUME

Most restaurants are prepared to order around 2030 dozen snails a week, although thereare some that require more. Some restaurants will only want snails on the menu for say, sixweeks, while others are only interested in selling snails as a chefs special a few times ayear.

As a guide, restaurants are likely to place orders for snails by the dozen in the priority shownbelow:

20-30 dozen 10 dozen

5-20 dozen for chefs specials between 5 and 10 dozen 60 dozen

one- off large orders for 100 dozen snails.

It is important to maintain reliable supply to regular customers. However, to cater foradditional demand from other sources, it is vital to keep a record of batches of purging snailsthat are ready for the market or almost ready. Efficient management of snail purging allowscustomers to know exactly when to expect delivery.

PERSONAL SELLING

Personal selling direct to the customer has been found to be the best and most effective wayof marketing snails. Selling direct to the restaurant/provedore eliminates the middleman andproducers can keep in touch with their customers. Costs are kept to a minimum.

Developing a good relationship with your customers and offering exceptional customerservice and after sales service will show you really care about your product more thanyour competition.

Complimentary is a powerful word in your marketing vocabulary. Prepare samples of your

packaged and branded snail product and present them to your targeted markets.

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Offer the customer a perfect product sample, along with a printed brochure and some recipesfor inspiration. The brochure can outline brief details of how the snails are grown, prices anda phone number for placing orders.

A follow-up courtesy phone call to the customer a few days later will give feedback on qualityand presentation. Listen to your customer and try to give him/her what he/she wants toensure long-standing orders.

Keep your customers informed regarding availability, season and how the snails areproduced. An e-newsletter is a simple method of communication.

ADVERTISING

Website being found on the internet gives your customers information about your snailproducts and method of production. Potential customers will obtain answers to theirquestions about how the snails are grown and processed, the products you offer and othernews such as awards, snail tastings and events.

A gallery and recipe section will also provide valuable visual information and inspiration totry your snails. A website also provides an easy way for potential customers to contact youfor information or to place and order.

Media releases an effective method for promoting your business and products andestablishing a business profile. Publicity generated by press releases is free, and often thecoverage is far more extensive than anything you could have hoped to say in a paidadvertisement.

Snail mail posting out individual letters, brochures or newsletters outlining your productand its qualities to targeted markets. Other advertising material such as fridge magnets that

display your brand and contact details can also be sent by mail to potential customers.

Word-of-mouth one of the most effective methods for advertising your product is by wordof mouth. Ask your best customers to recommend your snail product to someone else.

DEMAND FOR FRESH SNAILS

Since the first restaurant in Tamworth served snails in 1987, there has always been anenthusiastic demand for fresh snails in the domestic Australian market, however it is notunlimited.

A minor problem that chefs have when contemplating buying fresh snails is that some chefs

are not sure how to prepare them.

It is interesting to note that restaurants most likely to buy fresh snails are those that servecontemporary cuisine and offer modern Australian or European food.

French restaurants are less inclined to pay top dollar for fresh snails. Often they already havea clientele that orders escargot traditionally served in shells with garlic butter. They arereluctant to change as their patrons are used to the briny taste of cheaper, imported, tinnedsnails.

Strategic marketing principles should be a priority before undertaking any new businessventure, as there are always risks involved in a new enterprise.

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Approach the marketing of your snails with confidence, knowledge and understanding of theattributes of your product. The first question you will be asked is what does a snail tastelike? Make sure you know!

Compare canned, imported snails to fresh whole snails. This is your competitive advantagefor a successful marketing strategy.

Previous experience in marketing fresh snails has shown that modern chefs who enjoy usingAustralian fresh produce also enjoy the opportunity to feature something different on theirmenus.

VALUE ADDING

Adding perceivedvalue to your business is a way of enhancing what you are alreadyoffering, without extra costs.

In the free-range snail farming business, while the key product is high-quality, gourmet snailsfor the food industry you can add other products and/or services by utilising resourcesalready available.

Tours and snail tastings

Snail farming creates enormous interest from the community and visitors who are interestedin experiencing the taste of free-range snails. Conduct snail farm tours and tasting eventsand include your retail products for sale. A price per head can be charged for theseservices.

Pet food industry

The pet food industry provides an opportunity to utilise undersize or inferior snails as a well-liked food by reptiles.

Currently there is high demand from pet suppliers for thedistribution of snails as food for most reptiles, particularly for BlueTongue and the Bearded Dragon lizards.

Free-range poultry breeders are also keen to source snails tooffer animal enrichment while the shells provide calcium to thepoultry.

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Fresh whole,Australian snails

Canned, imported snailsin brine


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Snail Caviar

Snail eggs are considered an eclectic, new luxury by-product ofterrestrial snails.

The snails are collected, carefully cleaned and handled andpackaged as snail caviar.

The processing of snail caviar is intensive and meticulous but has the potential for anothersought-after snail product and offers an unique marketing feature.

Shells

A large number of shells are generated after the poaching process and

these shells are made up of mostly calcium carbonate (lime).

The shells are beneficial to compost heaps and soil to help raise thepHlevel. They can be re-cycled by ploughing back into the snail farmfields as a substitute for garden lime.

Alternately, the empty shells can be or crushed, packaged and sold togarden centres for a natural additive to compost heaps or gardens or tofree-range poultry farmers as a calcium source for their livestock.

CONCULSION

Marketing is strategic planning that provides a focused approach for products and services toreach the appropriate target market.

The purpose of marketing is to capture attention, demonstrate value and build customerrelationships.

After the challenge of producing an excellent snail product, selling your snails is the reward.

To demonstrate marketing commitment, the producer must able to communicate everyaspect of snail production, purging and processing and other related services that arerelevant to your snail product.

Customers are not keen to pay a premium for snails without a clear reason why they should proficient marketing and excellent communication delivers these reasons.

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Marketing Australia