|
IBC2000-5 Marketing
Marketing and
Promotion of Bison Burger and Related Products
Ken Childs,
Manager
Star B Ranch
28428 Hwy 78
Ramona CA USA 92065
| The following
article was originally presented at the International Bison
Conference in Edmonton, Alberta in August 2000. The
conference covered a wide array of bison topics including
production, marketing, genetics, history and much more.
This article has been reprinted with the permission of the
IBC2000 Chairman. |
Introduction
A
lot of time and money was spent developing the bison products of
Star B Ranch. Robert Jensen (Jensen 2000) has talked about the
stringent processes we pursue to ensure a quality product that is consistent and safe for our
customers. Jacob Childs
has talked about the problems encountered in producing safe, sturdy
and attractive packaging of our products. The solutions are not
cheap. It is important that our industry understand that to create
an end product it can be very costly and this cost is reflected in
the retail price the customer has to pay.
As
a fellow rancher I understand the cost of managing a buffalo herd
and ranch. It is expensive but I hope you as a producer can
understand that we, the marketers of bison, incur a lot of cost as
well in getting the product to market. If you decide to get into the
meat side of the buffalo business as a producer you must invest in
the marketing of your buffalo as a part of your business plan.
There
are many challenges as we deal with bison marketing issues. As an
industry we need to put money into resolving these challenges. The
most important task is to convince consumers to eat buffalo meat on
a regular basis.
Products You Market
Think
carefully about your product line. At Star B Ranch we focus on bison
burgers. This solved a lot of our problems in the marketing of
buffalo meat in general. When you break a carcass down you end up
with a variety of cuts. Some of these cuts can be very difficult to
market. We found ourselves spending too much time trying to sell
product that did not move well instead of putting the energy into a
product that did. We sat down and reanalyzed our business plan and
came to the obvious conclusion that buffalo burger was our number
one product. It was what most of our customers wanted.
The
decision to focus on buffalo burger worked out well for us. We can
control our margins. We can control our marketing and promotional
needs. I urge you to analyze your market so that you can develop the kind of marketing and
promotional items that will work in your particular area and works
with your products.
Customer Development
Do
your research carefully on every customer. What type of consumer
comes into this restaurant or this particular supermarket? What type
of product will work well in that environment? Find out who their
distributor is as you may be able to use them to get your product to
the retailer. Find out
who their buyer is. Who makes the decisions? Do this before you walk
in and make your pitch. This research will prepare you well to make
the sale.
Promotions and Budgets
Marketing
focus and budget continually change with the development of
different customers. We have a customer, an upscale gourmet shop
with 18 locations whose patrons are very nutritionally oriented.
They wanted to feature our buffalo Tri-Tips
and burgers under glass. It was a great opportunity for us. We
had to quickly develop some promotional material to merchandise our
products in this setting. We realized that our marketing budget
would have to increase to accommodate this customer.
For
this customer we ran a contest for all the meat managers in the
chain. The one that sold the most bison meat won a nice prize. That
encouraged them to sell our product.
We bussed all the managers out to the ranch, gave them a
tour, cooked them a big barbecue and gave them some hard core
education on the qualities of buffalo meat. It was very successful.
The ultimate goal here is to encourage customers to come into those
gourmet stores and buy buffalo meat on a regular basis. We invested
heavily in this particular promotion and although we did not make
much profit initially, the objective is to promote long term sales.
Another
promotion involved a golf tournament sponsored by a major
distributor for buyers from many supermarket chains in southern
California. Exactly the kind of people we wanted to reach. They
asked if we would come in and cook some buffalo dogs and burgers for
these people. Yes, we could. We were very visible with our
refrigerated truck and large barbecue. It cost money but we
connected with some very important people in the grocery business.
Once
you have gained your customer, spend time to train the staff about
bison meat and presentation. Have them sample the products
themselves so they will be able to tell patrons about it. Run
employee contests. For our restaurant customers we offer t-shirts
and gift certificate prizes to the server who sells the most
burgers. These incentives help make the staff enthusiastic promoters
of your product.
Display
How
important is display? In a small supermarket chain we have found
that you cannot always
control where your product will be displayed to the best advantage.
In our experience, we have been put next to the fish and turkey
which we did not like so we invested in some small display freezers
of our own that were placed in the meat department where we
belonged. We also placed our own special label with our logo on the
product to clearly identify what it was. In smaller chains this may
work well to make your product stand out. It does bring customers to
your product. How do you justify the cost of this? It is
pricey but you must balance the cost against other options. When you
analyze how much money you spend for promotional marketing per year
in a supermarket it may be turn out to be a reasonable investment.
In-Store Demonstrations
We
have found that in-store demonstrations as a promotion cost about
$150.00 each for 4-5 hrs and reach only a small percentage of
consumers. Unless you do the demos yourself there is no guarantee of
the quality of demonstration you may get. In one instance, a large
chain of 33 stores requested that we do in-store demos. As we could
not do all the demonstrations ourselves we hired it out but were
unhappy with about half of the demonstrators. In store demos can
work well but not in all circumstances. We found the display
freezers to be a good alternative for some stores. The freezers give
us year round success. I believe it will double our sales in some of
these stores.
We
have sometimes done cross over promotion in these demos. This can be
beneficial if you choose a name brand product to complement your
own. You want to be sure your product is the one the customer is
focusing on. In one promotion we teamed with A-1 Steak Sauce and it
was a good decision. Choose a respected name to partner with. An
added benefit is cost sharing of the demonstration and promotional
materials.
Food Show Demonstrations
Food
Show demos are expensive but give excellent exposure. We do two a
year. I recommend that if you participate in these shows, have a
distributor in place. A Food Show can bring you volume customers so
be prepared to handle that. A distributor can help. Your display
should be eye catching. My compliments to the Canadian Bison
Association for their display. It caught my eye. It was beautiful.
Something like that would work well for us.
Promotional Materials
A
concept that works very well for us is a steak marker. Both beef and
bison burgers look very much the same. In one of our customer
restaurants we have the chef place this marker right in the burger
before it is served. It
makes a nice presentation and it reinforces the idea that this
burger is special. We also place brochures where we can and table
tents on every table to encourage customers to try a bison burger.
We doubled our sales at that restaurant.
We
now use paper table tents that cost about 25 cents each and are
fairly disposable. We found that the more durable tents encased in
plastic, although attractive, went missing with some frequency. At
$2.00 each that became quite expensive. This is an area where our
industry could invest some marketing dollars. Table tents and
markers with a generic look could be ordered by the thousands for a
reasonable price and made available to everyone that is selling
bison across the country.
Marketing
We
have a full time Marketing and Promotion person on staff who designs
some of our brochures, recipe cards, holders, steak markers and
buttons. Recently he created a brochure and recipe holder for our
350+ retail outlets. It has been a challenge to get them out there,
have the meat managers assemble them and then station them in the
meat departments. We found most managers happy to accept them and
customers have the opportunity to see and take home helpful
information. The cost is reasonable, about $12.00 each, they are
well made and they have a long life. It has been cost effective to
send these to our retailers via UPS rather than personally.
Our
“Buffalo Patty” packaging is due for an updated look and
although we could hire a professional we prefer to do it in house if
possible. If you cannot do this have it done professionally. Your
packaging is important.
My
staff also designs computer generated personalized demo brochures to
take with us to sales meetings whether it be a chain or an
individual customer. It is an impressive sales tool, if you can do
this in house easily.
Public Relations
Press
releases work well to
inform a lot of people. You can hire a public relations firm to do
this although they are expensive. We regularly issue press releases
regarding new products or promotions. We also send out to the press
our own releases regarding bison, bison meat and its qualities. You
can too. Take advantage of free advertising where you can as TV and
newspaper advertising is costly.
Web-site Sales
We
have a web-site (www.starbranch.com) that is being developed by my
staff but has taken a temporary back seat to our current brochure
holder promotion. We are in the process of making it credit card
friendly and expect it to be fully operational shortly. We believe
this is a great opportunity and one more marketing tool that has the
ability to reach vast numbers of potential customers.
Mail Order
Sales
My
opinion is that mail order sales are high risk, high management and
take a lot of time. Although it may work well for some of you we are
not geared up for this type of sales.
Staff
Twenty
years ago we started by doing everything ourselves. As we grew it
became obvious that we could not do it all. Hiring good people who
specialize in their field is a
smart choice when it is warranted.
We now have:
wone
person to manage the phones and office
wone
person for customer relations, shipping of product in and out of
Jensen Meat Co. and handling of distribution of product to our
customers.
wtwo
trucks on the road for deliveries. This person is an important
contact between you and your customer. Choose well and keep them
happy.
wone
marketing and promotion person
wone
full time sales person.
Reference
Jensen,
R. 2000. Marketing and Production of Bison Burger and Related
Products. Pages 141-145 in B.D. Rutley, ed., Bison are back - 2000. Proceedings of the
Second International Bison Conference, Aug 2-4, 2000, Edmonton, AB. |