Marketing. Magic or Mystery?
October 14, 2010
(Part 2 of 2)
No doubt about it, the beef industry is complicated. Any intimation that “one size fits all” simply doesn’t—fit! Those of us responsible for marketing any product or service in the beef industry will have a much better chance at success IF we, at a minimum, have a conversational understanding of the diversities of the beef business and how important the relationship is between the sectors.
You may say, “well, duh!” What may sound like an understatement is, in my opinion, one of the greatest disparities in our industry. On one end of the spectrum lies our ultimate customer, the consumer. On the opposite end, we have the registered seedstock supplier. The realities of consuming our beef and producing the end product is as vastly different as can be imagined. Since I am a consumer as well as a marketing professional working with registered seedstock suppliers, I am acutely aware of this disconnect from the bottom of the food chain to the top. I experience it with my city friends when I try to explain how beef gets to their local supermarket. I have the same experience with many seedstock suppliers when consulting with them about their marketing strategies. All too often the seedstock producer expresses confusion and, in some situations, outright disregard for the relevance of the end product as if it doesn’t relate to them.
The most successful seedstock supplier never loses sight of the fact they are in business to make consumers happy and make certain their eating experience is positive. Along the way, the seedstock supplier has an even more pressing challenge—to produce an industry relevant animal that will provide a commercial customer ample opportunity to be successful and profitable.
A few days ago, I offered insight regarding marketing opportunities available to customers investing in Gardiner Angus Ranch genetics. Wulf Limousin, Morris, Minnesota, is another of the few seedstock operations achieving extraordinary success by providing their customers the same opportunities. There are obvious differences between the Gardiner and Wulf operations. However, the similarities regarding the success of their operations are perfectly parallel in so many ways. It begins and ends with a focus on their commercial customer AND ultimately the consumer.
Customer consciousness, fair and equal treatment and intellectual access run parallel in importance between the two operations. Just like Gardiner Angus Ranch, market access provided to Wulf’s customers is equally significant.
- Feeder Calf Procurement: The diversity of the Wulf operation and the size and scope of their cattle feeding interest provide an incredible opportunity for Wulf commercial customers. Their commercial customers understand by using best practice management and Wulf genetics, a representative of Wulf Limousin will be on the seats to bid on the calves come sale day.
- Branded Beef Relationships: Wulf Limousin has depended upon customer cattle to supply the Laura’s Lean brand for many years. Tyson Fresh Meats, American Foods and Strauss Brands are also brands that depend upon Wulf genetics for consistent supply.
- Proprietary Bull-Index: Developed specifically for bulls in the Wulf sale offering each year, the bull index is a ranking system designed by family member and meat scientist, Duane Wulf. The index combines traits of economic importance for different end points and customer needs.
- Bull Retirement Program: An innovative new customer service to guarantee a solid market for salvage bulls. In addition, buyers can receive $200-$300 per head credit in the sale.
- Feedlot and carcass data: Almost since the beginning of feedlot and carcass data collection, Wulf’s have shared the information with their customers. Those customers not retaining ownership benefit greatly from knowing the performance of their cattle up the food chain.
One of the most striking similarities between the two operations can be summarized by conversations I’ve had on multiple occasions with the sons that have succeeded their fathers, Mark Gardiner and Jerry Wulf. Many times, Mark has referenced “Henry’s Golden Rule” when accommodating a customer beyond what would be expected. Jerry has often commented, “Dad taught us that if our customer is successful, we will be successful”.
A recent readership survey conducted by Working Ranch Magazine provides an interesting frame of reference. When asked, how many different genetic suppliers do you use, 70% indicated they purchased genetics from 1-3 suppliers, while 14% purchased from 4 or more. Possibly more telling, when asked, would you consider a new bull supplier, 78% answered yes.
This year marked the 31st annual production sale at Gardiner’s and the 22nd annual sale at Wulf’s. Another common denominator for the two operations is the fact that more than 70% of the buyers are satisfied customers returning year after year.
Providing value-added customer service and treating the customer with respect generation after generation isn’t magic, or mystery, but it is marketing money can’t buy.
