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 ConsumersChannels

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

CommercialEggs

RetailOutlets

Consumers

WholesaleDistributors Institutions

ManufacturingIndustry

EggProducts

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

Processor

InstitutionalOutlets

ConsumersRetail

WholesaleDistributor

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