Marketing Plan Research

Introduction

This report pertains to Goal 2, Objective 4, Action a in Clemson University’s South Carolina Shrimp Fishery Assistance proposal. Goal 2 is “Creation of a sustainable shrimp industry in South Carolina and the South Atlantic region.” Objective 4 under that broad goal is “to develop a long-term marketing plan and program for wild-harvested shrimp focusing on domestic product marketing and promotion.” Action a specifies that the Spiro Center and the DAAE will “provide research to support the development of a marketing plan for the SC shrimp industry to promote a stable market with fair prices. “ In the following paragraphs, we will discuss the background and assumptions underlying our proposed actions. We will then outline our expected actions, time line, and budget.

Background and Assumptions

There are many examples of successful efforts to differentiate and niche-market agricultural food products, such as Angus beef, Vidalia onions, Idaho potatoes, and Delta-Pride catfish. By studying those successful cases, and learning from their successes and missteps, we can develop a more insightful strategy for positioning SC shrimp in the marketplace. To develop an appropriate strategy, we need to know – are differentiation and niche marketing approaches (and any branding that might accompany those strategies) equally effective for products distributed through grocery stores and restaurants? Do they result in an increase in price, quantity sold, or both? If prices are increased at retail, is there a corresponding price increase in each stage of the supply chain? If we were to proceed without those insights, we would be more likely to make improper assumptions about what might work, and then waste time and money pursuing ineffective alternatives.

Project Plan

We propose to:

• In year 1, conduct a comprehensive review of agricultural food products that attempted to increase prices and/or market shares through differentiation and market niche approaches. From those findings, develop “lessons learned” and “best practices” to be used as a guide in the development of a marketing plan.
• In year 2, assess the economic viability of the marketing plan by estimating its effects on shrimp prices and quantities demanded, and the likelihood of success given the existing distribution channels.
• In year 2, develop educational materials/programs to market shrimp to various constituents (public, restaurants, food stores, tourists) reflecting the priorities of the marketing plan.
• In year 2, hold a workshop on marketing alternatives for SC shrimp.
• The expenses for these efforts over two years include faculty summer time, graduate students, supplies, and travel, for a total of $80,000.

Spiro Center for Entrepreneurial Leadership - Caron St. John 864-656-5963
Dept of Agricultural & Applied Economics - David Barkley 864-656-5797