B2B E-Commerce in the Meat and Poultry Industry By Sundar Rajagopalan Karishma Sharma Thiti Wang-Aryattawanich Miyoung Yoo Joseph Yu 1 Major Players in Meat and Poultry Major Players Type of Organization meatandpoultryonline.com Vertical portal Meatpoultry.com Vertical portal meatingplace.com Vertical portal 4meat.com Vertical portal National Meat Assoc. (http://www.nmaonline.org) Consortium of members (Non profit) Usda.gov Governmental org. 2 A Sample Front Page 3 A Sample Registration Page 4 Basics • Provides information for red meat and poultry industries • Generates revenues through – classified ads – Suppliers posting their product information – Other industries like regulatory services, university depts. 5 Basics (Cont.) • The industry is heavily fragmented, such as packaging, processing, special services, safety, transportation, and rendering. • The fragmentation is dependent upon the concentration of the segments in the location • Location is also a major constraint to transportation • A lot of rules and regulations have been set up by the associations • Audience is not computer savvy 6 Who are the Customers • The portals are a virtual community for the industry professionals – This encompasses various segments of the ‘Meat and Poultry’ Industry, ranging many job positions – Based on the type of position and the industry segment the membership(NMA) is classified as : • Student:Students majoring in Animal/Food/meat science • Associate:Person, Firm or Organization engaged in supplying non-meat supplies and equipment • Allied:Person,Firm or corporation engaged primarily in buying, selling meat, animal-by-products • General:Any Person involved in the industry! • International:Any of the above 3 categories from outside the states! 7 Who are the Customers (Cont.) • Other types of Membership(MISA) involve – Regular Members:Available to business entities engaged in the sale, lease or rental of products related to meat and poultry – Affiliate Members: People in the same fields as “Regular members”, yet outside the country – Associate members: Other people in the publishing or media activities related to meat and poultry industry • Fees in these different forms of Membership involve the amount of turnover of the concerned organization; thus it becomes like a privilege issue in addition to the information 8 How to attract customers • Contract with the brand name manufacturers in order to get more suppliers • Heighten the credibility of the site – Secure and high quality product – On time service – Security and policy information of the site • Convince that the site can provide the same products, same quality with the lower price • Promote the web site in Trader Forum or Business Association (Journal, Magazine) 9 How to attract customers (Cont.) • Give free membership for a trial period • Since the supply chain ties with geographical area, design or customize the website according to the region (e.g. Northwest Region) • Provide free stock options for a new member or referral service • Provide an easy-to-use interface for the customers who are not computer savvy 10 Value Added for Customers • Ideal market place for an organization to advertise their products and also get to know of products of other organizations in the industry • Career resources for students and other employees in the field • Provision of credibility to the organization to be a part of the portal which encompasses the industry • Consulting service of the issues related with laws and patents and other lawsuits with the government 11 Value Added for Customers (Cont.) • 1-stop shop to locate various sponsors offering b2b products and information • A type of advertisement of organizations by listing them online free • Establishment of international contracts • Discussion about the business and technical issues with other organizations in the field • Information on other registered members, helping them establish contacts 12 How to Increase Value added • An auction type of format can be set up which brings buyers and sellers together. This will ensure a critical mass • Set a type of premium page set up for the major members which will provide additional benefits and better service • Tie up with international partners • Get the approval of USDA, which will be a good benchmark for the agency • Offer the service at free cost or at very minimum cost to attract organizations 13 How to Increase Value added (Cont.) • Form Strategic alliances with universities or other job agencies that will provide students information • Furnish education through work shops, seminars, and educational audio and video cassettes • Provide management consulting service and advice on the individual business problems • Conduct competition or free electronic coupons on the visit to the site 14 How to Increase Value added (Cont.) • Provides information on the process involved in various segments of industry • Provide free downloads of documented standards(domestic and Intl) • Create Forums and Marketplace for a category and its related segments such as Equipment Provider, Processor, Packaging and etc. • Mergers and alliances 15 How to Get Repeat Customers • E-mail reminder, price tracker, or e-mail newsletter to maintain relationship • Free advertisement or e-coupons if a member satisfies a particular tenure • Different levels of customized service based on the period of membership • Update on new products information that is offered free to members • Tradeshows and conferences to impart education 16
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