2006 Genetics & 2006 Genetics & Marketing Marketing WorkshopWorkshopJune 8June 8thth, 2006, 2006 Niagara Falls, Niagara Falls, OntarioOntario

EBI Marketing Approaches & EBI Marketing Approaches & InitiativesInitiatives

By: By: Barry MooneyBarry MooneyManager of Marketing & Field ServicesManager of Marketing & Field Services

4 Sections to Cover4 Sections to Cover

CompetitionCompetition ToolsTools Initiatives &Initiatives & New Marketing ApproachesNew Marketing Approaches

CompetitionCompetition (in order of market (in order of market share)share)

BullBull – low managed herds – low managed herds ABSABS – rep service & sales – rep service & sales

Tie up herds with dealsTie up herds with deals SelectSelect – rep service & sales – rep service & sales

Cheap, dump the semen & runCheap, dump the semen & run GenexGenex – Toystory – Toystory AltaAlta – cheap price, high pressure – cheap price, high pressure GenervationsGenervations – pair bulls & discount – pair bulls & discount FoundationFoundation – hit Y.S. herds with – hit Y.S. herds with

dream of show cattledream of show cattle Ex-classifier knows breeders wellEx-classifier knows breeders well

Major ChallengesMajor Challenges

Dairy industry lacks financesDairy industry lacks finances Middle age producers selling outMiddle age producers selling out Trend to large herdsTrend to large herds Large herd mentality is differentLarge herd mentality is different

Large Herd MentalityLarge Herd Mentality

Price sensitivePrice sensitive Only buy with a “Deal”Only buy with a “Deal” Not always committed to breed Not always committed to breed

improvementimprovement Management changesManagement changes No time or interest in talking geneticsNo time or interest in talking genetics Everyone desperately fighting for shrinking Everyone desperately fighting for shrinking

customer basecustomer base Loyalty to EBI hard to maintainLoyalty to EBI hard to maintain

Some EBI backgroundSome EBI background At end of ’06, maintained 70% market shareAt end of ’06, maintained 70% market share Dairy potential calculated by 1 kg of quota Dairy potential calculated by 1 kg of quota

equals 1 cow x 2.52 breedingsequals 1 cow x 2.52 breedings EBI ON averages 16.2 km/service (EBIA 26.0)EBI ON averages 16.2 km/service (EBIA 26.0)

Price of fuel jumped considerablyPrice of fuel jumped considerably Other AI companies set up arm service in Other AI companies set up arm service in

concentrated cow population areasconcentrated cow population areas EBI is committed to service all EBI is committed to service all

clients’ inseminationsclients’ inseminations

Some EBI background Some EBI background (cont’)(cont’)

In ON, year to date average 282 cows bred/dayIn ON, year to date average 282 cows bred/day Each rep averages 15.5 per dayEach rep averages 15.5 per day

In NB, 28 cows per day (each rep averages 9.5 In NB, 28 cows per day (each rep averages 9.5 per day)per day)

Sale YTD = 28,447Sale YTD = 28,447 YTD $ 25.22 blend price (sales & inseminations)YTD $ 25.22 blend price (sales & inseminations)

We need to capture more We need to capture more market share!market share!

Tools Tools (to maintain & grow (to maintain & grow business)business)

Most valuable:Most valuable: VantageVantage – YS program – YS program ProProGenGen – on-farm mating and with classification– on-farm mating and with classification Proof day infoProof day info – proof sheets, bull comparison – proof sheets, bull comparison

from competition, proof categories, changes, from competition, proof categories, changes, educationeducation

ProductProduct – always available to sell – always available to sell Quality productQuality product Regular staff meetingsRegular staff meetings – info & planning – info & planning Agri-ProductsAgri-Products – teat dips, udder health – teat dips, udder health

products, light bulbs, breeding suppliesproducts, light bulbs, breeding supplies

Tools Tools (to maintain & grow (to maintain & grow business)business)

Most valuable (cont’):Most valuable (cont’): MDS genetic advice to breedersMDS genetic advice to breeders ReproMaxReproMax Beef embryos for conceptionBeef embryos for conception Two Plus alternativeTwo Plus alternative New semen buy back programNew semen buy back program

Initiatives and New Marketing Initiatives and New Marketing ApproachesApproaches

Introduction of a new field setup in ’04Introduction of a new field setup in ’04 Allowed more genetic advice on-farm – all farmsAllowed more genetic advice on-farm – all farms MDS now part of marketing and product supportMDS now part of marketing and product support See daughters of upcoming bulls and reps are See daughters of upcoming bulls and reps are

more confident to educate the breedersmore confident to educate the breeders Now help monitor contract YS herds and help Now help monitor contract YS herds and help

seek out potential YS to picture or for toursseek out potential YS to picture or for tours New pay structure helps ensure maximum New pay structure helps ensure maximum

herds stay as arm service herds (retains market herds stay as arm service herds (retains market share)share)

Arm reps paid a bonus on conceptionArm reps paid a bonus on conception

Sponsor cattle shows and meetings with Sponsor cattle shows and meetings with promo itemspromo items At least one team member attends all At least one team member attends all

agricultural events within their area to be part of agricultural events within their area to be part of the communitythe community

Distribute promo material (ie. flyers, proof Distribute promo material (ie. flyers, proof sheets, breeder articles, newsletter)sheets, breeder articles, newsletter)

Manage two EBI showcases as a commitment to Manage two EBI showcases as a commitment to youthyouth

Each year about 185 4-H members participateEach year about 185 4-H members participate One in ON and one in MaritimesOne in ON and one in Maritimes Average cost is about $40,000Average cost is about $40,000

Initiatives and New Marketing Initiatives and New Marketing ApproachesApproaches

cont’cont’

Initiatives and New Marketing Initiatives and New Marketing ApproachesApproaches (cont’)(cont’)

All MDS reps have a lap top and are wired in the fieldAll MDS reps have a lap top and are wired in the field

More Recently….More Recently….

all staff now have their vehicles with EBI logosall staff now have their vehicles with EBI logos Well identified in the fieldWell identified in the field

All new field staff have company vehiclesAll new field staff have company vehicles All field staff wear logo’ed EBI Carhartt overallsAll field staff wear logo’ed EBI Carhartt overalls EBI staff help to picture YS daughtersEBI staff help to picture YS daughters and new and new

contract cows in ON to enhance the contract cows in ON to enhance the imageimage of Eastern ON geneticsof Eastern ON genetics

Initiatives and New Marketing Initiatives and New Marketing ApproachesApproaches (more recently)(more recently)

Each team (area) has a budget of $ 2,500 to Each team (area) has a budget of $ 2,500 to work with to promote or ensure future saleswork with to promote or ensure future sales

Some events were:Some events were: Bus trips to elite dairy herdsBus trips to elite dairy herds Bus trips to new technology farm toursBus trips to new technology farm tours Package deal to promote teat dip and prove 1 more YSPackage deal to promote teat dip and prove 1 more YS Producer meeting on topics like udder health & fertilityProducer meeting on topics like udder health & fertility Family entertainment nights with proceeds to 4-HFamily entertainment nights with proceeds to 4-H Breeder education workshops on farmBreeder education workshops on farm

ie. Classification system, value of milk recordingie. Classification system, value of milk recording

Initiatives and New Marketing Initiatives and New Marketing ApproachesApproaches (more recently)(more recently)

Each group works from a business plan Each group works from a business plan designed designed for their areafor their area Designed with their input and EBI corporate Designed with their input and EBI corporate

goalsgoals

Initiatives Initiatives and New Marketing and New Marketing ApproachesApproaches

In the planning stage (as we speak):In the planning stage (as we speak):

More restructuring for the Atlantic provinces More restructuring for the Atlantic provinces partially donepartially done

Service rates may change for customers who live Service rates may change for customers who live off the beaten path and use private semenoff the beaten path and use private semen

Trying a new style of sales truck – a van where the Trying a new style of sales truck – a van where the computer, printer and rep have a warm place to computer, printer and rep have a warm place to work on-farm (ie. Prowork on-farm (ie. ProGenGen))

Just finished a planning session and have Just finished a planning session and have categorized all customers per areacategorized all customers per area

Categorizing Your Customer Categorizing Your Customer ListingListing

1A – 1A – Most Wanted CustomersMost Wanted Customers

Herd Larger than 100Herd Larger than 100

1B – 1B – Most Wanted CustomersMost Wanted Customers

They are new potential customers:

Bull Users

Uses competition for AI

Uses competition for O/B

High Maintenance Customers:

Perceive Deals

Existing Customers:

Loyal to staff & product

85% of business

2 –2 – Most Valued Customers Most Valued Customers

3 –3 – Volatile Customers Volatile Customers

Categorizing Your Customer Categorizing Your Customer ListingListing

4 – 4 – Beef CustomersBeef Customers

5 – 5 – Other CustomersOther Customers

The most valued customers we believe we can keep with the The most valued customers we believe we can keep with the quality product, service and programs we have now (ie. quality product, service and programs we have now (ie. Vantage)Vantage)

We are now designing packages for our We are now designing packages for our Most Wanted Most Wanted CustomersCustomers as well as our Volatile Customers as well as our Volatile Customers

Hobby farmers & Ln2 Non Agriculture

Next????Next????

Ideas flushed out and now being evaluated for Ideas flushed out and now being evaluated for acceptance for incorporation into packagesacceptance for incorporation into packages::

Know your customer and the systemPackage must blend semen costs (ie. one price – any bull)Volume of doses to be discounted when bought at one stop (200 or more doses)Package must be perceived as “deal”Need second proof sheet of bulls which have inventory of semen and can be sold more cheaplyNeed comparison of bulls from other AI companies

(computer – ProGen)Reps must have the right attitude and appreciate this

type of breeder

Next????Next????

Need ProNeed ProGenGen

Don’t get taken advantage ofDon’t get taken advantage of

Develop passionDevelop passion

Show valueShow value

Be persistentBe persistent

Analysis of customer base Analysis of customer base

Get in bed with the right peopleGet in bed with the right people

Strike at the right timeStrike at the right time

Breeder recognitionBreeder recognition

Change as the industry changesChange as the industry changes

Discussion from MDS MeetingDiscussion from MDS Meeting

BreedersBreeders EBIEBI AnswersAnswers MaterialMaterial PricePrice

ValueValue

Prove ProfitProve Profit

Innovation:Innovation: Sexed Sexed

SemenSemen

Repro MaxRepro Max

Etc…Etc…

PartnershipPartnership With all With all

producersproducers

ProProGenGen

Package Deal (semen)Package Deal (semen)

Prove we have successful Prove we have successful productsproducts

Knowledge & expertiseKnowledge & expertise

Herd managementHerd management

Daughter tour – knowledgeDaughter tour – knowledge

Proven successProven success

MACE bull – USA proofMACE bull – USA proof

US proven Semex bullsUS proven Semex bulls

Canadian on US MACE Canadian on US MACE scalescale

Secondary proof sheetSecondary proof sheet

Package – Most Wanted Customers

Herd Management ProgramHerd Management Program

Total reproductive management program• Work with breeder and vet and with their records

stop at farm each day at the same timeBreed all cows – maybe sync. ProgramAttack non-EBI herds or bull usersOnly attractive if herd is large – over 100 milking cowsMaybe identify – pick bulls

Contract Young Sire HerdContract Young Sire Herd

Take over breeding program for herds that we now do:• no business• don’t classify• don’t register

EBI pay for all genetic tools and use the herd as a Young Sire proving contract herd

• Own the genetic rights but not the cattle

Just a few of the ongoing projects at ..EBI