Place
• Cooperatives
– Seedstock Plus
– Leachman
– Flying H Genetics
– Fink
– Schiefelbien
– Camp Cooley
– Pharo Cattle Co
Business Lifespan
• The average length of business lifespan for
seedstock is seven years.
• Without a succession plan, the business is
usually dispersed and a once major
powerhouse is completely gone.
• Can a non-family owned seedstock business
be structured to continue?
• It would need to have a ROI that is acceptable
to the investors.
Price
• 4-5 x feeder calf price
• 2.5 x fed cattle price
• Range - $250-$300 under or over the average
Price
• What is the Breakeven for Commercial Bulls?
Bulls - Basic
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Value at Weaning
Feed
Semen Test - $25, hd
Advertising - $20-$120/hd
Registrations and Certificates
Bulls – “normal”
• Ultrasound - $35/hd
• Sale Expenses - 15%
– Auctioneer – 3%-6%
– Ringmen
– Sale Barn - $2000-$2500
– Catalog - $30/hd
– Pictures, video, website – $50-$100/hd
– Clipping - $20/hd
Bulls - Ultra
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DNA test - $35/hd
Internet or Superior Sales
Delivery - $50/hd
Guarantees – 6%
Genetic Guarantees – Case Study (FHG)
Herd Visits
Education/Newsletters/Field Days
Buy-back – Case Study (Schiefelbein)
Build a Brand
• The best, most powerful way to build a brand
is to create a new category and be the instant
LEADER.
• The new category can be found by identifying
the enemy and create the opposite/make it
obsolete.
Promotion
• First British - Shorthorn
• Different British - Hereford
• New British - Angus
• So…….the best selling British is…………….!!
Angus Strategy
• Angus became the best selling Breed by being
innovative.
• First create a branded beef program, CAB.
• Build slow (15 yrs) and get media buzz.
• Once they achieve success in the “trenches”,
then launch major advertising campaign.
Promotion
• First Hybrid
• New Hybrid
• Different Hybrid
• So…….the best selling hybrid is…………….!!
Gelbvieh Strategy
• Balancers became best known hybrid.
• Many AGA members were already selling
hybrids.
• Trademarked and defined the proper hybrid.
• Got media buzz AND launch major
advertising campaign.
• Short on product……..Reduced advertising.
Promotion
•
•
•
•
•
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Breed
Angus
Red Angus
Hereford
Charolais
Simmental
Gelbvieh
Limousin
Category
The Business Breed.
For all the right reasons.
The Efficiency Experts.
Smoke in your eyes.
Committed
Continental Breed of Choice
Muscle. Growth. Efficiency
Launch a New Brand, PR
• Public Relations
– Leak (promote) the New Category to the media.
– Let the media create buzz .
– Gather testimonials.
– Press Releases.
– Use words like Leader, Pioneer, First, Original.
– Pace yourself; if it is grows, it will grow big.
– Brand Building Stage
Launch a New Brand, Ads
• Advertising
– Convey and Maintain your Leadership in the
category by promoting the brand.
– Do not say “I am better”. Say “I am the Leader”.
– Biggest bang for the buck
– Target your audience
– Mailing Lists
– Brand Maintenance Stage
Public Relations
“Most overnight successes
(trends) take 10-12 yrs.”
Actually it averages 6 yrs in
America.
Fads grow quickly, then fade.
Public Relations
1. Leak the new category to
the press. They love to talk
about what’s new, first or hot.
They don’t like to talk about
the “improved” product.
Public Relations
2. The Slow Buildup
3. The Recruitment of Allies
4. The Bottom-up Rollout
5. The Modification of the Product
6. Modification of the Message
7. The Soft Launch
Public Relations
• Testimonials
• You don’t have to sell everybody, you just
have to sell Sellers. (PR strategy)
• You do not launch a PR program; it is done
over time.
Public Relations
• PR is new, different , original, creative, etc.
• PR is brand building, advertising is brand
maintenance.
• PR first, advertising second.
Promotion
• Am. Gelbvieh Assoc
• SmartCross® - Crossbreeding made Easy!
• Balancer® - the industry’s leading hybrid
• Gelbvieh - Continental Breed of Choice
Advertising
• The true function of advertising is to
reinforce an existing perception in the mind.
Advertising defends the brand once it is built,
primarily by public relations and third-party
endorsements.
• Advertising can be funny, but PR is serious.
• This does not mean that advertising is boring.