Tag: managment

The 6Ps of Cattle Marketing

by  | Aug 15, 2015 | Brubaker Blog |

Product – Price – Place – Promotion – Possession – Planning

By Ken Brubaker, Brubaker Sales & Marketing, All Rights Reserved

Everyone measures their success in the Cattle Industry differently. Those goals may have many different meanings from producing and showing a National Champion to having a successful production sale or just having a productive sustainable breeding program. The Cattle Industry is one of the most diverse industries in our country, with many breeds, philosophies and kinds of cattle being produced. The great thing about that diversity is there seems to be a buyer for everything of quality within those different kinds. Our industry is very similar to the automobile or fashion industries. Over the years our industry has gone through many changes and usually those changes have translated into income. Right or wrong change equals an increase in income. When you have something that nobody else has they will want it.
Successful programs spend as much time developing and maintaining a marketing program as they do their breeding program. Regardless, if your program’s end product is feeder cattle or seedstock understanding and utilizing the basic principles of marketing give you an advantage and a much greater chance for success.

There are two truths that you will deal with in your marketing program. “Perception is Reality” and “You can have the best cattle in the world, but if nobody knows about them, how can you sell them”. Marketing is more than advertising, as you will see further in this article, advertising is only part of your entire Marketing Program.

Your Customer – Target Market

Before we get into the specifics of the Six P’s an understanding of your customer or “Target” audience is essential. As we already discussed the Cattle Industry is very diverse. Therefore, marketing to the entire industry is a waste of time, money and resources. It is critical to identify who your market is and get as specific as possible to reach that market. Some programs only sell bulls while others only sell females and some programs sell both. That along with identifying what type of breeder will buy your cattle based on pedigree, kind and philosophy allows you to be more efficient with your budgeted dollars and ultimately the results.

Identifying your customer is essential as the first step to guide you in all facets of your Marketing Program. While its true that you never know where your next customer will come from, it is important to understand demographically where your base will come from. Where, who, what are all part of identifying your base. If you are selling bulls to commercial producers, sell the benefits of those bulls and promote the sale to that audience.

Planning – The First P

The saying, “if you don’t plan – you plan to fail” is particularly true when it comes to developing a successful breeding program and marketing program. Planning is an essential part of your success.
Planning your advertising and marketing effort to dovetail with your breeding and calving seasons is important, so that your product is what it needs to be – when the buyers will buy it. If you are planning a bull sale and you calve in April-May you would not want to schedule your sale for January when the bulls are less than a year old. You will compromise their fertility, performance and data with underage bulls. Schedule your sale after the bulls reach a year of age or perhaps even sell them in the Fall as long-yearlings.

Measurements are important to most buyers, both, commercial and purebred producers. Planning your sales effort with your ability to acquire and record that data is important to give potential buyers the information they require to make buying decisions. Planning your breeding program so that you can acquire necessary data in time for your sale is important.

Product – What Are You Selling – Getting Your Piece Of The Pie

The most successful programs that I have observed are those that have a clear vision of what their product is. They have a mission or goal of the type and kind of cattle they wish to produce and a solid philosophy regarding management of those genetics.

It is important to differentiate your brand or product to buyers so they can relate to the genetics you provide them. While thousands of people breed, grow and sell Angus Cattle – not all programs are the same and not all genetics are the same. Product differentiation allows your buyers to zero in on the attributes and benefits of your genetics. In the grand scheme of things the cattle industry is a big pie and you want to get your share of that pie (market share). This is a tool used by other products and industries.

Look at how the soft drink industry has differentiated their products to gain market share. Coke is not just Coke anymore it is – Diet Coke, Cherry Coke, Coke Zero, Caffeine Free Coke and on and on and on. Regardless if you buy a Coke or a Coke Zero you are buying a Coke rather than a competitor’s product – increasing your market share of the soft drink market.

Identify your product to your customers and potential customers and promote the attributes and benefits of your gene pool. Production and performance will be a part of identifying your product – SO KEEP RECORDS ! Production information such as progeny ratios, calving intervals, daughters production are all important if you have identified your product as one that excels in maternal traits – so not only take down the information but submit it to the breed association so it is well documented. If you are selling bulls, birth weights, weaning weights, yearlings etc etc are all critical to give your buyers the information they want to make a buying decision.

Price – Getting Every Dollar They Are Worth

We all want to sell our cattle for as much as we possibly can. I am amazed how many times I go into a program and they expect top dollar for their cattle – but they don’t take care of the basics to create value and increase the value of the cattle they have for sale.

As mentioned above under PRODUCT, the money is in the details. Well documented production and performance information adds significant value to your product and increases price. Sure, some buyers are only interested in phenotype but most in today’s industry want to utilize the tools in the toolbox to make a decision, particularly since prices are at all time highs in all segments of the industry.

In addition to record keeping management also adds value. Nutrition, stock development and herd maintenance all play key roles in adding value. Over fed or under fed cattle will not command the highest value. Providing adequate nutrition to all the cattle to express their genetic potential at optimum levels gives you the greatest chance to add value to your product. The best pedigree and the best cattle “on paper” will not bring the best dollar if you don’t pay attention to the details of records and management to add value to your product.

Place – Where Do You Sell Your Cattle

If you are selling privately off the farm or ranch then you need to make it easy for buyers to find you and provide directions to them. Same is true if you are having an auction but you may have choices. An auction at the farm requires more facilities and more work to have that sale regardless if it’s a pen sale, video sale or traditional auction with cattle coming through a sale ring. You may find it easier to utilize a stockyards, fairgrounds or even a neighbor that raises another breed of cattle that would allow you to rent their facility.

All of these options have value depending on your circumstances and where you are located. The primary focus here is to conduct your sale at a location that is easy for buyers to find and participate.
More and more today we are holding video auctions where the cattle do not walk through a sale ring. These sales can be held anywhere. They can be held on the ranch or at a hotel that is in the nearest town. They could be held miles away if that is most convenient to the buyers to attend.

Possession – You Don’t Have A Sale Until The Buyer Takes Possession

This part of the Marketing Mix may sound self-explanatory, however, this is a key part of the mix. You conduct a sale and the buyer shows up pays for his purchases and loads the cattle and takes them home – you are done right ? No ! If he purchased purebred cattle then the possession of what he purchased is not done until you transfer the registration papers.

Many of the cattle we sell today are sold to absentee buyers – they are not present at the sale. Shipping costs today are higher than ever before with fuel prices what they are. It is a critical component of the sale to provide your buyers with service to arrange trucking

Promotion – It’s More Than Just Placing An Ad Somewhere

A successful Marketing Plan begins with a budget to keep you on track. This is always our starting point as it guides us through the process of keeping costs in line while placing a priority on media that reaches your target market. Our 20 plus years of experience in the advertising industry has given us insight to these different forms of promotion as there are advantages and disadvantages to all of them.
It is well documented that the most successful Marketing Plans utilize a mix in the kind of promotion used to reach the target audience. Technology has driven many changes in that mix over recent years, particularly since more consumers have access to high speed internet. Finding the mix that best reaches your target market has some trial and error to it. Talk to your customers and ask them what they read and how they get their information.

Print Advertising

Print advertising includes magazines and newspapers that cover both regional and local audiences as well as national. A mix of all of these types of print advertising should be utilized as long as they make sense and reach your target market. Our budget will be limited therefore we try to utilize publications that give us the greatest “bang for the buck”. Dare to be different in your ads to capture attention. Your ads need to stand out and capture the reader’s attention.

Broadcast Advertising

Radio and TV provide opportunities throughout many parts of the country and deliver a low cost/thousand audience. Broadcast advertising puts immediacy to your message. Prepare yourself for some sticker shock with some of this media but our research has shown that it can deliver new customers to the established program and bring an industry to a new program.

Electronic Advertising

Electronic media in the form of the internet and E-Mail have exploded over recent years. This is largely due to the ease at which you can create content and copy but more importantly the low cost.
Website – for as little as $500.00 you can direct your customers and potential customers to an electronic brochure that gives them information about your program. Websites should be simple and easy to navigate through. You can give customers a tour of your ranch and cattle program while they sit in their living room. You can offer cattle for sale and promote your production sale very inexpensively particularly when you promote it through an E-Blast program as we have at BSM.

E-Mail Blasts

This service has exploded in recent years with many firms offering the service. Be careful through – just as in a “snail mail” mailing list it as only as good as the database. The database needs to be constantly added and deleting bad addresses that waste your effort – however the cost to do this is very cheap and can add further traffic to your website and more interest in your upcoming sale.

Direct Mail Advertising

Traditional direct mail, brochures, sale books or newsletters are still very affective tools. Not all producers use the internet (or do not use it regularly) and will not get your E-Mail or view your website.

Attractive brochures and newsletters grab attention and can tell your story. Many producers will keep your brochure to refer back to when they are ready to buy.

Brochures, newsletters and post cards can be expensive to produce however they are still cheaper to mail than a sale book. We have found it a good strategy to send out the direct mail first and ask for a sale book request – rather than mail thousands of sale books that can run as high as $3.00/each with postage.

Personal Selling

Nothing takes the place of personal selling. While you may hire a firm like Brubaker Sales to do a lot of the for you – many customers still want to talk to you and get to know you before doing business.

Attend events locally, regionally and nationally and give others an opportunity to get to know you – I’m sure you are a likable person and this will allow a selling connection – even if you never try to sell them anything. Get involved with breed associations and cattleman’s associations to build relationships with other producers that can become your customer.

Outdoor Advertising

You may be amazed how important a sign at the end of your lane or along the highway can be to your marketing program. Not everyone has a location suitable to a billboard on the interstate but if you are this can be a great way to promote beef to consumers and promote your program.

Customer Service

I’ve included Customer Service as part of promotion simply because that is exactly what it is. Good customer service becomes good promotion and bad customer service becomes bad promotion. In our industry we deal with mother nature and things don’t always turn out the way we want – we can limit the negativity by working with a customer to repair the problem. The programs that take care of their customers keep their customers and those that don’t loose them. Be fair and responsible to your customers and they will return to do business with you for many years.

Educated Cows Eat Weeds!

Turn a Foe Into Forage

In 2004, Kathy Voth invented a method for training cows to eat weeds. The idea grew from the responses from ranchers when she suggested they use goats or sheep to manage weeds. That just wasn’t an economically viable or sustainable solution for them.

Kathy believes that animals are a good solution for weed management, so she decided that if cattle ranchers weren’t interested in goats or sheep, she’d figure out how to turn their cattle into weed managers. Using discoveries made by researchers at Utah State University, and decades of animal behavior studies, she put together a very logical set of steps for teaching cows to eat weeds.

Minimal Time Investment
Using Kathy’s process a cattle producer can teach cows to eat weeds in as little as 10 hours over 10 days and then sit back and relax while the cows get to work.

Cows Are Good Learners and Teachers
A small group of trainees will teach their calves and herd mates to eat weeds, to create a weed eating army in the course of one grazing season. Cows will continue to eat the weeds year after year and add new ones without additional training.

The Training Steps Click HERE

Wealth really comes from sunshine

Improving the life processes that convert sunshine to energy on the ranch or farm can increase all forms of wealth.

Walt Davis 1 | Feb 18, 2020

Ranching is different things to different people but like all types of agricultural endeavors, it comes down to converting sunlight into wealth through green plants and photosynthesis.

This wealth can take several forms aside from money. Grazing animals, especially ruminants, can convert vegetation that is inedible to humans into high quality food. This can be done, without machinery, on land that is unfit for cultivation. Lately this has been getting press under the guise of “upcycling.”

There are other beneficial products, but one desperately needed in today’s world is improved water management. In some situations, if grazing management is used properly, it can double or triple the amount of precipitation captured and used to grow vegetation. This management will also greatly increase the amount of water that accumulates in the soil and in subsurface aquifers.

Proper grazing decreases the likelihood of flooding and increases the usefulness of precipitation. These advantages come about through creating the conditions that allow water to enter and be held by the soil. Foremost amongst the conditions is keeping the soil surface covered with organic matter.

I was on a ranch recently in the hot dry summer when a four-inch rain fell in about four hours. This was followed several hours later by a two-inch rain. This ranch is rolling sandy loam with sandy clay subsoil and has some steep slopes. Little, if any, water ran off the ranch while the neighboring areas had heavy runoff of muddy water.

The difference was the amount of bare ground on the two areas. The ranch with good ground cover absorbed the rainfall to the degree that the tanks (ponds to those of you not from Texas) caught no water. Twenty-four hours after the rain stopped, clear water began to flow from springs into the tanks.

What is the value of six inches of rain stored in the soil rather than running down the creek? There are millions upon millions of acres world-wide that are totally ineffective in capturing and storing rainfall. Water shortage for crops but also for humans is already critical in many areas. Good grazing management can dramatically improve the water cycle of these degraded areas while producing food and profit.

A second condition critical to improving water capture and retention is soil organic content. Organic matter that has been processed by microbial action can seize and hold many times its weight in water. Soil life is dependant on soil organic content, and plants are dependent on soil life. Soil life, especially mycorrhizal fungi, produce the organic compounds – essentially the glue – that holds soil particles together in aggregates and gives soil the porosity and permeability that allows it to take in and hold both water and air.

A big portion of soil organic content comes from root exudates – mostly carbohydrates – pumped into the soil by living plants. In a classic example of symbiotic relationship, the root exudates nourish the soil lifeforms which nourish the plants that provide the root exudates.

Given the opportunity, natural forces promote life to the benefit of the whole soil-plant-animal complex. This is not always a straightforward process. Drought can cause an explosion of grasshoppers by killing the fungi that normally limit the viability of the hopper eggs. When normal weather returns, the fungi will return, and balance will re-establish in insect populations. If we intervene with insecticides spread over large areas, the ecology of that area becomes unstable with ongoing wide swings in both populations and numbers within populations.

Catastrophes such as wildfire, drought and flood happen in the natural world, but only man prolongs the effects of these events. Millions of acres of grassland have been destroyed by holding stock on areas that can no longer feed them. The diversity of life from plants, animals and microbes provides stability and productivity, but it is destroyed when management focuses on “kill the pest” rather than on fostering the conditions that promote health through out the local environment. This may sound sophomoric, however it is not only possible but much more effective financially, ecologically and to human benefit than what is common practice over most of the world.

WHO AM I IF I AM NOT A FARMER or RANCHER ANYMORE?

FIND PERSONAL AND PROFESSIONAL OPPORTUNITY.

Let’s face it, transitioning to a niche market or picking up more work is not a solution for every farmer facing hard times. Some will need to stop farming. While that may be hard, it can also be an opportunity.

Outside agriculture, career shifts are often seen as a way to advance, points out Extension educator Megan Roberts. “In other occupations, if we switch jobs, that’s not seen in any way as a failure,” she says.

READ MORE: Shortage of truck drivers means opportunities for farmers 

Here’s a look at how to stop farming and the opportunities that come with the change. Ending a career in farming begins with making a decision.

Mental health practitioner Shauna Reitmeier explains, “In some situations, that decision is something you’re choosing to do on your own without any external pressures, and in some situations, you have to do it in order to sustain. We know that this current environment we’re in, many farmers dealing with commodity prices and weather situations are needing to decide, ‘Do I liquidate? Do I need to sell half of my dairy cattle, or not?’ ”

Anxiety and worries about the unknown are totally normal, she says. To keep from getting overwhelmed, it is important to recognize what is in your control and what you can’t control.

Keeping your values front and center as you make decisions may ease the heartache of difficult choices. Ask yourself, what are the two or three values that drive you to get up every day?

“Yes, farming is a way of life and we identify ourselves with farming, but it’s really those strong values that get you up every morning to continue to farm. Those values don’t change based on whether you’re farming,” Reitmeier says.

“It isn’t the farm that makes the farmer – it’s the love, hard work, and character,” says Brenda Mack, who lives on a farm and works as a licensed independent clinical social worker.

After making the decision to end or pivot your farming career, don’t expect to bounce back overnight. Some people experience real grief and loss over the change, and that’s OK, says Reitmeier, who grew up on a farm. Be prepared for the following range of emotions as you make decisions, develop plans, and put them in place.

  • “Normal” functioning
  • Shock and denial: Avoidance, blame, fear, numbness
  • Anger: Anxiety, embarrassment, irritation

“You might be having more fights with your spouse or get more irritable with the lenders you’re having conversations with,” Reitmeier says.

  • Depression and detachment: Blahs, helplessness, lack of energy
  • Dialogue and bargaining: Reaching out to others, desire to share one’s story, struggle to find meaning for what happened
  • Acceptance: Exploring options, a new plan in place
  • Return to meaningful life: Empowerment, security, self-esteem, meaning

The stages of grief may not all come in this order. “One day you’re angry, the next day you’re feeling a little acceptance, another day you’re depressed. You’re all over the place,” Reitmeier says.

Mack remembers watching her own parents process their decision to retire from farming. The transition was especially hard for her proud, third-generation row-crop farming father.

After retiring, her dad felt as though he didn’t fit at the table of neighboring farmers discussing their problems at the local café. He struggled to find where he belonged. Conversations with his wife, other farmers, his priest, and a mental health therapist all helped him find a new, broader identity for himself and a renewed sense of purpose.

“I was really proud of my dad for having the understanding and ability, and not feeling shame in reaching out to a formal provider because that can be really terrifying. It can be hard to go see a mental health provider, but it’s what he needed at that point in time,” Mack explains.

Mack acknowledges mental health resources aren’t always easy to find in rural areas.

In addition to seeking professional mental health services, there are other strategies to cope with the massive changes that come with the end of a farming career.

Keep in mind who you are in addition to your role as a farmer. Farmers wear many hats: parent, child, sibling, community leader, church member, history enthusiast, 4-H leader, to name a few.

Building self-awareness can help you discover you are more than what you do. If you’re struggling to get out of the grief and loss process, Reitmeier suggests knowing your body cues. Sensing when they become different can be helpful. Also, keep tabs on your relational, cognitive, and physical health

LEARN MORE

Cultivating Resiliency resources are presented by American Agri-Women, District 11 Minnesota Agri-Women, University of Minnesota – Women in Ag Network, and Upper Midwest Agricultural Safety and Health Center.

umash.umn.edu/cultivating-resiliency-webinars/

The 7 Critical Skills Of Successful Strategic Thinkers

Life as business are both long-term races. They require to fully commit to the present while seeing through years ahead in order to define and achieve the best of the future. They require to embrace today while deciding on objectives, understanding the options, creating possible alternative scenarios and situations and determining the direction to be followed. They require strategic thinking.

Defined as the process that determines the manner in which people think about, assess, view, and create the future for themselves and others, strategic thinking is basically the ability to know what you want to achieve and how to achieve it. Developing a strategic approach is not always easy as it is as much a mindset as a set of techniques. However, it does result in the main difference between an average and an exceptional achiever.

Success and achievement can not just be left to hazard.  In a study conducted by Harvard Business Review, 97% of the 10,000 senior executives asked chose strategy as the most critical leadership behavior to their organizations’ future success. Strategic thinkers are able to imagine the big picture, identify the possible impact of their decisions and project the way to get there. These are the seven traces that define them all.

  1. Vision

Strategic thinkers are able to create and stick to a very clear visioning process. Using both the left (logical) and right (creative) sides of their brain, they defined an ambitious but rigorous vision of what needs to be achieved. A clear, positive and big enough vision is what inspires for action and pulls in ideas, people and other resources. A vision is what enables commitment and moves the needed energy to make it happen. In this way, strategic thinkers are visionary leaders. They see the potential for how the world should exist and take steps to get there.

“The purpose of life is a life of purpose” (Robert Byrne)

    1. Framework

Vision should be carefully embedded within a framework. Successful strategic thinkers have the ability to define their objectives and develop an action plan with goals broken down into tasks specifically measured in terms of timeline and resources. They set up deadlines and they commit to them. Self-aware enough, they are conscious of their own biases and factor their own circumstances, perspectives, and points of view within this framework. This helps them to ensure that their own backgrounds are not an impediment but a boost to their goals. Their framework envisions always a plan A, B, and C that drives them all to the same expected result. They factor all possible ways within a reasonable timeline for action.

  1. Perceptiveness

Strategic thinkers are able to look around and understand the world from all the different perspectives. They listen, hear and read between the lines. They observe before forming a judgment and absorb and make use of the different angles that could be helpful for better guidance. They understand peoples’ intentions, hopes, and desires and play with them in a symbiotic way that could help all to achieve greater. They recognize internal and external clues that may sharp and clear the direction to be taken. They are able to grasp the perfect match and put together all the pieces of the puzzle. They are able to feel the breeze because they know that big achievements are just the collection of all the different angles.

  1. Assertiveness

They are good at decision-making. After a comprehensive evaluation, they chose the way to go and walk firmly into it without vacillation. They may doubt but they do not let the doubts to fog the vision. They communicate effectively what they want and need by using clear orders while simultaneously respecting the thoughts and wishes of others. They are able to react appropriately under pressure and reduce anxiety by sticking to their decision and avoiding excessive questioning. Through high levels of confidence and self-esteem, they receive both compliments and critics in a constructive way. They defend their points of view without harming others and manage to convince without force or hostility. They are easily followed.

“Your attitude, not your aptitude, will determine your altitude” (Zig Ziglar)

  1. Flexibility

Strategic thinkers are clearly aware of their weaknesses so they are committed to seeking the advice of others. They are humble enough to be flexible and twist their ideas and framework as to truly achieve the desired vision. They do not confuse flexibility with lack of structure. They accept the rules of the game because they are aware that without rules there is no fair game. Strategic thinkers are flexible thinkers what allows them to shift gears and think about something in more than one way and develop different strategies. Along with working memory and self-control, flexible thinking is one of the three main executive skills allowing to properly manage thoughts, actions, and emotions to get things done.

“Life is a sum of all our choices” (Albert Camus)

  1. Emotional Balance

Strategic thinkers are able to balance their emotions in a way that always favors the achievement of the ultimate goals. They are aware of their emotions, they are able to name them when they arrive, they do not react to them as an important element of accepting them and just when they are over control of them, they take a decision. Whether they received positive or negative feedback, they are able to deal with it, understand and respond in a way that protects and progresses toward their desired outcome. They are able to control and master the three drivers of any emotional state. They stand tall and breathe fully as part of their physiological reaction. They think positive and look for the opportunity as part of their psychological reaction. They are kind, compassionate and optimistic whenever facing their language response.  Strategic thinkers are tremendously creative but they are able to balance this creativity with pragmatism through a sense of realism and honesty about actuality. They are realistic optimists.

       7. Patience

Strategic thinkers do not ignore that achievement is a long-term ride. Milestones have all a concrete time and moment. And success is the result of a process of strategically planned work and efforts. Strategic thinkers have the ability to be patient. They do not rush conclusions. They do not bet it all at once. They invest their energies in a way that is sustainable and led by a long-term vision. They have learned to wait.

“The two most powerful warriors are patience and time” (Leo Tolstoy)