Question

Topic: Strategy

What Would You Tell This Pork Producer In Mexico?

Posted by Anonymous on 2500 Points
Hi, everyone! The MarketingProfs customer service team received an interesting message today.

I am a pork producer from Mexico. At this moment we are suffering the worst crisis ever in the national pork industry. We need to react immediately because we are coming from a 3 year economic crisis in the pork sector due to record high feedstuff prices, and economic losses, so we have no further blood to bleed out. I think that one of the options we have is “email marketing” to reinforce pork's image among the public, telling the truth with short and impacting evidence responding to this H1N1 virus uncertainty, and others bugs as cysticercosis, triquinosis, etc, unfounded taboos that lead to a misconception and mis-value of our production. Could you help?

Best Regards,
Carlos
Pork producer, processor and retailer

There is no worse virus than ignorance, and best vaccine is APPLIED knowledge.


I thought the best resource for Carlos would be YOU, our terrific community! What would you advise?
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RESPONSES

  • Posted by ajanzer on Accepted
    Carlos-

    You could certainly do a "Pork: Fact and Fiction" email that dispels the myths -- with a "Don't blame the pig" and a cute picture like www.dogbreedinfo.com/art/PigArt.jpg that might compel people to open the mail. But what list would you use, and how effectively could you spread the word?

    If you excuse the unfortunate viral reference, I'd try for more of a "viral" marketing attempt by putting together a short, informative and (one hopes) entertaining video on Youtube, featuring pigs doing their thing - and dispelling those myths. Put swine flu in the keywords, and see what kind of hits you get. Oh, and link to a page of good pork recipes, as well. It might take a little more thought to put together, but could have a greater overall impact than a single email campaign that may end up in the spam filter (another unintended pun, sorry!)

    Good luck!

    Anne Janzer
  • Posted by affordable on Accepted
    If you are going to talk viruses at all would keep it to the current H1N1 issue. Mentioning all those others in the same sentence makes even me not want to eat pork and I understand properly prepared pork is safe.

    The USDA and US CDC made a joint release covered by the major news outlets which states there is no connection between "swine" flu and eating pork. While quoting these organizations may or may not help depending on how they are perceived by your consumers, you may at least be able to glean some good wording from their efforts.

    Now a picture of a nice pork roast with carrots and potatoes... it must be getting too close to dinner time.

    Tim Ballering

  • Posted by wnelson on Accepted
    Shelly,

    Welcome to MarketingProfs! (hahaha)

    I'm an engineer by education and have worked in the quality field in my career and one of the things I've been taught is to make sure what the root cause of the problem is before trying to fix it. The first thing that stands out about what Carlos writes is, "We need to react immediately because we are coming from a 3 year economic crisis in the pork sector due to record high feedstuff prices, and economic losses, so we have no further blood to bleed out." So "getting the word out" that eating pig doesn't cause H1N1 may not help! H1N1 has been around for 3 weeks, not three years! The second thing in this sentence is that there's an "economic crisis in the pork sector due to record high feedstuff prices, and economic losses." This implies "losing money" - so is the "loss" a variable loss - meaning that at the present price of pork in Mejico, the farmer loses money on each pound because of the materials and labor to raise and take the little piggies to market? As in for each pig raised, the farmer loses 10,000 pesos? If that's the case, helping them sell more would mean that they would lose more, right?

    On the other hand, if the unit volume of pork is down, then this is something marketing could help. However, here's the next question: WHY is the unit volume down? Has the farmer raised the price such that competitive alternatives are more attractive? For instance, has beef prices raised less so people are eating beef? Or pollo? Or have they given up meat because it's all priced too high? If the demand has gone down because the price is too high, then certainly marketing might help a little, I suppose. But, in general, if I have no money, you can shout in my ear all you want about the desirability of a nice pork roast and I still will not be able to buy it. In this case, I'd invest my money in reducing cost so I can reduce price.

    So, my first piece of advice for Carlos is to put together some data on the problem statement. Unit sales history, competitive pricing history (competitors being alternatives to pork), history by month so we can tell if there's been an impact because of H1N1. Correlate the decline versus price and announcements of any health scares, etc. Before knowing this, any prescription for remedying this problem would be wild guesses and most likely not relevant to the problem. And a bunch of money would be spent and no impact would be seen. And then the Marketing Director would be fired (for good reason).

    I hope this helps.

    Wayde
  • Posted by BizConsult on Accepted
    The macro-level issue here, beyond economics, is one of how to fix/address a PR crisis: Having steered a major brand through a product recall in Canada and a voluntary withdrawal in the U.S. during my career, I can say that you need to learn from the history of other food and consumable brands and products that have gone thorough similar crisis: Tylenol was a classic, there was a tainted lettuce scare in 2006, listeria is a recurring issue in dairy products, etc. – there are plenty of good examples of how to deal with a public relations nightmare, whether it is a real problem, or not – all of which can provide valuable insights.

    To address the question raised about "email marketing" - that's not a great methodology since you'd have to acquire the names/get people to opt-in, etc.

    Therefore, the first thing I'd do is create a website that addresses the questions and concerns head-on and sets the record straight and get it linked/ranked quickly so anyone searching for information can find it via natural search (and paid search, if desired). There are likely other pork producers in North America dealing with this issue – you might check industry/trade organizations, other leading suppliers and pork-related brands to see who else is working on it and if there’s something you can leverage or co-op with them on.

    Next, send out PR releases to publications and websites to publicize the issue and availability of information on the website. You can also leverage social media to get the word out, etc.

    There are plenty of good examples/how-to's on how to get ranked in search engines, leverage social media, etc. so I won't get into that here, but I would say to be careful to be blatantly honest and upfront about whatever content you create because if there is even a hint of misinformation, you’ll discredit everything you say.

    Buenas Suerte Carlos!
    -Steve
  • Posted by mgoodman on Accepted
    Carlos, I'm afraid that this is a crisis that you can't market your way out of -- especially if you don't have tens or hundreds of millions of pesos/dollars to put into the project. You're dealing with the equivalent of a natural disaster. Just as the New Orleans residents who made it through Katrina can't "market" their way to recovery, you can't either -- regardless of how unfair this is.

    Now, what CAN you do. First, don't waste your time on an email marketing campaign. This short-term awful emergency will pass, and you'll be back to the long-term awful situation you describe. And the way out of that has nothing to do with consumer perceptions (as Wayde so aptly points out).

    If you can survive long enough to take action, you might want to look into hedging your "crop" on the commodity futures market. I've done that successfully for a number of clients in different industries, and it at least provides a modicum of stability and protection against future disasters.

    Pork, for better or worse, has become a commodity. And that means the only source of differentiation is price. To change that you need a long-term, very expensive marketing campaign -- like Frank Perdue did with chickens (another commodity) or like Tropicana did with orange juice (a commodity). There are other examples, of course, but they all have one thing in common: a sustained long-term investment in branding. It's not likely the pork industry will want to make that investment at a time when costs are high and other factors are working against you.

    My best advice is to become knowledgeable and active in the commodities futures market and don't look to marketing to change the global demand for pork.

    Sorry I can't be more helpful, but good marketers are first good businesspeople, and we know what we can and cannot do. This is one I think we can't fix.
  • Posted by SteveByrneMarketing on Accepted
    Two thoughts

    1. A campaign showing celebrity Latinos enjoying a wonderful pork meal.

    2. Make a lot of pork jerky. It will keep and you can market it worldwide.

    Hope this helps,

    Steve
  • Posted by dino.gruppuso on Accepted
    Carlos,
    i think the strategy to keep safe your market segment out of the trouble are generated now by the AH1N1 need to be more general then just to have advertising or organize some event. I think temporarily the Social sector of PEST analysis is changed. So I think a new marketing analysis have to be done and a specific strategy have to be developed, starting with your organization internal analysis. "Ensure the ethics and philosophy of your organisation are good and sound. This might seem a bit tangential to marketing and business, and rather difficult to measure, nevertheless..." (https://www.businessballs.com/market.htm). The transparency of your production process, the safety for the consumers will be what you have to put in your business card and advertising.
  • Posted by Jay Hamilton-Roth on Accepted
    No doubt that swine flu has made more people pig-adverse. However, eating properly-cooked pig won't spread the disease. The fear is getting sick by being near live pigs, or getting sick from someone who was near pigs (and passed H1N1 it on...).

    Wayde's advice is focusing on the right place - what's the long-term story here, rather then the story of the week? Does Carlos need a short-term strategy to get him through this crisis or a long-term strategy?
  • Posted by michael on Accepted
    Well it certainly doesn't help that the government, who in my mind controls the media, can't even get them to stop saying SWINE flu. Or, that N1H1 is the name used for H1N1. Ignorance is the biggest hurdle Carlos faces.

    My marketing campaign would focus on the truth about hog farming. Most people have no idea. How are they fed? How often is their health checked? (Ever see how they raise turkeys?)

    Slogan: "That's some pig!"

    Michael
  • Posted by telemoxie on Accepted
    So far, many of the comments above describe communications to consumers. But don't forget the supply chain: wholesalers and retailers of pork products are probably fielding a lot of questions, and it might be a good idea to send them a press release and some fact sheets to help them educate their customers.
  • Posted by mktgcbb on Accepted
    email marketing can be very expensive and with such a broad target market, emailing effectively and efficiently is unlikely.

    My first thought. . .many people decide whether to buy pork or anything else while they're already at the market. They're looking at what is offered and whether it looks good and has a good price/value. I don't know if you are having trouble with your distributors, but if the biggest challenge is damage control at the consumer level, I'd mark the packages at the point of purchase. Everyone is aware of swine flu - can you provide stickers for the markets to put on the packaging that certifies the pork as free from carrying the virus or otherwise stating that there is no health threat? Put a web address for FAQ's and links to more information. And provide a pdf with pertinent information that butchers can display at the store. This will let the public know that the threat has been addressed and that you stand behind your product. It's a relatively inexpensive way to get your message in front of the people who are making a purchasing decision.
  • Posted by jlblue on Accepted
    First action is damage control right now. Unfortunately, the name of the flu got labeled "Swine flu" and that has made perception greater than reality.

    As I posted on Twitter (@TruffleMedia) "swine industry getting hit with FUD (fear, uncertainty, doubt) articles, countered with fact, data, and analysis. FUD usually wins."

    Train your pork production team. Provide them the tools to respond and support the people looking for answers. Some resources to help are at SwineCast.com
    * https://www.swinecast.com/swinecast-0412-swine-flu-what-you-need-to-know-an...

    Additional information at the National Pork Producers Council site
    * https://nppc.org/News/DocumentSingle.aspx?DocumentID=24689

    Second, as Carlos suggested, build trust along the entire value chain with information and conversation. This is basic public relations and community building. However, this will take time. Take some lessons from the BSE (Bovine Spongiform Encephalopathy ) press that hit the beef industry; https://www.ers.usda.gov/Publications/ERR34/ has some information on how BSE announcements effected beef purchases.

    Third, look for opportunity to leverage economic information to help strengthen production / management processes for the long term. See Ag Economist Dennis DiPietre blog for more info https://www.swinecast.com/DennisDiPietreBlog.

    Again, there is no quick fix to marketing against a steady stream of FUD. This is a great case of building trust and community _before_ issues arrive. That way, when FUD does hit, you can help educate and reduce FUD within your community / value chain (Now there's an article: "Turn Your Value Chain into a Community!").

    Quick comment on what Carlos said about email "I think that one of the options we have is 'email marketing' to reinforce pork's image among the public": Email marketing is only one tool among many. You have a message to convey and email can help deliver it. However, some of the people that need information may not be in your email lists but in your partner's email lists. Provide those partners with a set of informational tools they can share. Also, look where your audience gets their information. Web sites, social networks, regular media; develop a plan that will carry your message through those channels to your audience.


    Hope this helps,
    John Blue
    TruffleMedia.com
  • Posted by jlblue on Member
    Quick note to Wayde above on your comment "H1N1 has been around for 3 weeks, not three years! "

    You may have intended to say that the recent issue has only been in the press for three weeks. True, however H1N1 has been around for a while.

    See the info at https://www.pork.org/Documents/PUBLICHEALTH%20influenza.pdf

    and

    https://en.wikipedia.org/wiki/Influenza_A_virus_subtype_H1N1

    I agree with your assessment of identifying the problem at hand before working on a marketing campaign to counter H1N1 perception.

    Hope this helps,
    John Blue
    TruffleMedia.com
  • Posted by wnelson on Member
    John,

    Yes, of course Swine flu has been around for a long, LONG time, since 1918 (approx), as the Wikipedia article states. Since Swine Flu has been around since 1918, and since Carlos' note said "responding to this H1N1 virus uncertainty," I assumed he meant the occurrence over the past three weeks, not over the past 91 years. The three year crisis he references does not seem to be related to the present occurrence nor the historic Swine Flu outbreaks.

    Wayde
  • Posted by affordable on Member
    Here is a news article on how "swine" flu is affecting Wisconsin pork producers. While not an answer, I thought your client would find this interesting.

    www.jsonline.com/business/44594227.html

    Tim Ballering

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