A Louisiana shrimp boat heads to sea. The seafood board represents commercial saltwater and freshwater fishermen, shrimpers, oyster farmers/harvesters, and alligator, crab and crawfish industries – as well as seafood processors, wholesalers, retailers and restaurateurs. Photo: Louisiana Seafood Board
by Gordon Curry/Louisiana Seafood News
Special To Louisiana Seafood News
How do you go about restoring a well-known industry brand after it suffers a major setback that draws worldwide attention? And how do you best support the businesses within that industry that lose market share as a result?
These were the questions facing the Louisiana Seafood Promotion and Marketing Board following the Deepwater Horizon event in April 2010.
“Our immediate concern was consumer perception and any adverse impact it would have on the markets and fishermen we represent,” said Ewell Smith, executive director of the board
Understanding the Challenge
Soon after the event began, BP provided the Louisiana Seafood Board $2 million to aid in crisis communications and to study the effect of the oil spill on consumer perceptions of Louisiana seafood products
Rebuilding the Louisiana Seafood brand and its industry segments became top priority for the Board. Photo: Ed Lallo/Louisiana Seafood News
The board found a high level of concern regarding seafood safety, ranging from 88 percent in early weeks to 91 percent in July of that year. They found a similar pattern portrayed in the escalation of media reports surrounding the use of chemical dispersants in clean-up efforts.
According to the National Oceanic and Atmospheric Administration (NOAA), Louisiana commercial fisheries showed a 35 percent decrease in total pounds of seafood landings in 2010 compared to the previous year. That resulted in a direct loss of more than $55 million in 2010.
Rebuilding the Louisiana Seafood brand and its industry segments became top priority for the Board. “We are a promotion and marketing agency, with a commitment and allegiance to Louisiana’s commercial fishing community,” said Smith. “Whether it’s working to reassure consumers, open new markets or support existing markets, everything we do is with the fisherman in mind.”
The board represents commercial saltwater and freshwater fishermen, shrimpers, oyster farmers/harvesters, and alligator, crab and crawfish industries – as well as seafood processors, wholesalers, retailers and restaurateurs.
Ensuring Best ROI
Based on initial findings, the board made a strong case to BP for additional funds and was awarded $30 million that fall, with the first disbursement received in May 2011. The funds were to be used over a three-year period set to expire Nov. 2013
“We knew that managing that kind of money – along with all the related marketing activities, vendor contracts and administrative duties – went beyond the normal scope of work for our four-member staff,” said Smith. “So, we went looking for the experts.”
Greg Rigamer, one of the founders and directors of GCR Consulting, underscored two principles of business he helps each new client embrace: “First, you’ve got to have defined objectives and a way to get where you want to go using best practices. Second, you have to measure progress to manage your business effectively.” Photo: GCR, Inc.
With new capital in hand, the board put out a formal request for proposals last year, allocating $15 million of its grant to a multi-year seafood marketing campaign contract.
The board selected GCR Consulting, known for its strategic work with government agencies, as the prime contractor to manage the campaign, provide detailed oversight of the funds and ensure the greatest possible return on its investment.
“Overnight, they went from an operating budget of less than $1 million a year to more than $10 million a year,” said Dan Austin, GCR consultant and project manager, who oversees the contract.
“Our job was to help develop a strategic plan around their marketing campaign and implement policies and procedures to effectively manage the funds.”
Greg Rigamer, one of the founders and directors of GCR Consulting, underscored two principles of business he helps each new client embrace: “First, you’ve got to have defined objectives and a way to get where you want to go using best practices. Second, you have to measure progress to manage your business effectively.”
To that end, Rigamer facilitated a series of strategic planning sessions for the Board and the oyster, shrimp, and crab task forces in addition to leaders from the crawfish and alligator industries. The group identified key issues and goals, and the best ways to achieve their objectives.
The strategic plan that emerged from those sessions is intended to: 1) Improve board practices, 2) expand research initiatives, 3) improve marketing efforts, 4) increase pricing, and 5) enhance the economics of the industry. In accordance with BP’s funding terms, these key tenets and the plan were approved by the board; Louisiana Lt. Governor Jay Dardenne; Robert Barham, secretary of the Louisiana Department of Wildlife and Fisheries; and BP.
A marketing framework tied to key objectives of the plan was developed and the board, with GCR, engaged The Food Group and Graham Group to execute its advertising and public relations campaign.
Promoting the Louisiana Seafood Community
Smith said the purpose of the campaign is to produce measurable results for the Louisiana seafood industry as a whole – as well as to better equip each of the participants to grow their businesses.
“Our goal is to build recognition of Louisiana Seafood as a quality, premium product and position it as a highly sought brand. And along with a highly energized brand, provide industry participants the sales tools to improve the price of seafood at the dock.
To do that, the board had to address two major issues: One, how to unite and represent the collective strengths of a highly fragmented industry, and two, how to further facilitate business-to-business transactions leading to the end consumer.
Marketing Tools that Work
One sales tool the marketing campaign has produced that helps industry members expand their reach in acquiring new customers is a pair of websites.
Commercial buyers can go on the “buy” website at http://buy.louisianaseafood.com to select products of interest and leave contact information.
Commercial buyers can go on the “buy” website at http://buy.louisianaseafood.com to select products of interest and leave contact information. Any of the certified sellers can retrieve that information on the “sell” website at http://sell.louisianaseafood.com and develop the leads.
Other marketing efforts aim at strengthening the overall Louisiana Seafood brand and include the development of the national Louisiana Seafood Chef’s Council; major chef-driven and consumer events such as the Louisiana Seafood Festival, which drew 150,000 attendees from international, national, regional and local areas to celebrate our seafood; as well as TV food shows that feature guest appearances from Louisiana chefs.
Since the campaign kicked off, the industry overall is trending higher prices for its products. For example, white shrimp garnered an average of $1.87 per pound at the dock in 2011, which is a 10-year high. Similarly, dockside value on oysters reached $3.73 per pound in 2011, also a 10-year high
Providing Good Stewardship Today and Tomorrow
While the Board opted to have GCR serve as a fiscal agent for the entire $30 million, the consulting company’s direct involvement currently relates to only half of that for the marketing campaign.
“There are three signatures needed for every dollar of spending within the $15-million campaign,” said Austin. “Mine, as the project manager, Ewell Smith’s as the executive director, and the subcontractor being tasked with a specific job.”
According to GCR’ Dan Austin (l), every opportunity executed has to fit within the strategic plan and is evaluated on its ability to produce the desired results. He works closely with seafood’s executive director Ewell Smith (c) and assistant directory Kristin McLaren. Photo: Ed Lallo/Louisiana Seafood News
According to Austin, every opportunity executed has to fit within the strategic plan and is evaluated on its ability to produce the desired results.
The Board budgeted the remaining $15 million of BP’s grant to support its regular state funds
In addition to financial oversight, GCR has implemented best practices for managing the board’s business more efficiently.
For example, GCR administered consumer preference surveys to monitor attitudes about Louisiana seafood during the last two years. Another survey conducted by GCR polled the industry to gauge satisfaction with the marketing campaign and determine which out-of-state markets would be the most beneficial targets to promote the brand.
“We’re building a better body of knowledge for the Louisiana Seafood Promotion and Marketing Board so they can make informed decisions,” said Rigamer
GCR also is looking to the future to help Louisiana Seafood develop funding sources beyond BP.
“GCR is one of the best resources available to the Seafood Board since we came into existence 28 years ago,” said Smith. “With their expert oversight and strategic guidance, we can rebuild the brand of Louisiana Seafood, open new markets and showcase our products in ways previously not possible.”
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