Marketing. Magic or Mystery?

(Part 1 of 2)

The short answer to the proverbial question of marketing magic or mystery is, neither. Marketing is neither magic nor mystery. The cold hard fact is that marketing is work and lots of it. Marketing is an evolutionary process based on a strategy that most often involves a moving target.

For many years, our company has been privileged to work with Gardiner Angus Ranch, one of the largest and most successful registered Angus seedstock operations in the country.

Quite frequently, I am asked by others in the beef industry, “How do they do it?” I am not qualified to address the economics of “how they do it”. However, based on my personal experience, I do feel qualified to offer a few marketing-related thoughts after working with this successful family for more than a decade.

1. Customer Consciousness: Their customer, the commercial producer, never, ever leaves their consciousness. Their breeding philosophy and discipline is absolutely focused on genetic improvement based on the needs of their customers and the beef industry. Period!
2. Fair and Equal Treatment: All customers are treated equally. Doesn’t matter if you have 10 head or 10,000 head, all customers are treated equally and fairly, everyday.
3. Intellectual Access: There are no dumb questions. Oftentimes it’s painfully frustrating and time-consuming to slog through seemingly simple questions day after day. But, the willingness to provide intellectual access to every customer enables genetic improvement to exponentially increase. The end result is genetic improvement in a customer’s herd and the potential for profitability up the food chain. Once again, the focus is on the customer’s success.
4. Market Access: Market access is a heated topic for discussion these days, pitting the little guy against the big guy. According to some, small beef producers are at a disadvantage because of their size. By developing multiple marketing opportunities, Gardiner Angus Ranch customers have incredible market access regardless of size of operation.
   1. U.S. Premium Beef Delivery Rights—a commercial producer retaining ownership can access one of the beef industry’s most bankable value-based pricing systems at no charge to the customer. Based on documented information from USPB, GAR customers using their delivery rights have averaged $68.75 per head above the cash market since 1998, which equates to more than $3.3 million in premiums.
   2. Guaranteed Gardiner Genetics (G3)—a co-branding age- and source-verification program offered to customers. Customers qualifying for the G3 program receive a $2.00 per head credit in either spring or fall sales. For instance, if a customer qualifies 100 head for the G3 program, $200 is deducted from their purchase at the next sale. For those customers retaining ownership, G3 tagged finished steers or heifers receive $35 per head additional premium for simply having age- and source-verification at harvest. The G3 program was initiated in 2006. If we extrapolate the numbers, market access for their commercial customers (before any feedlot efficiencies or carcass premiums) nears $1,000,000.
   3. GAR Allied Producer—registered seedstock producers, long-time customers exclusively using GAR genetics, can access additional marketing opportunities in an effort to promote their own individual operations—once again, the focus is on their customer’s success.
   4. Breeding Guarantee—arguably one of the most important components of a successful marketing program is how committed any seedstock supplier is to stand behind a purchase. Ask around. This operation’s guarantee is unprecedented in any breed.

My intent is not to pay homage to Gardiner Angus Ranch. They’re too busy to enjoy the accolades! My intent is to provide an illustration of the commitment necessary to build a successful marketing infrastructure vis-à-vis your customer. In fact, in more than 35 years developing marketing strategies, I personally have been privileged to work with two such operations. Two. Only two.

I hope you will return to read the final installment of Marketing, Magic or Mystery.

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