from excuse me Iowa State University is turned off hello Darryl astray exactly yeah

Calvin 23 dumber than shrimp i Iowa believe it or not Iowa will be the

new source of high quality fresh local

shrimp your company care dia farms a

cooperative Iowa farmers has asked us

cyclone marketing to develop marketing

strategies as you launch kardia farm

shrimp into the marketplace the market

for shrimp is prime a shrimp continues

to be the number one consumed seafood

American homes and restaurants today at

the same time the leading trend in the

restaurant industry is the use of

locally produced foods we will now hear

from one of our target white tablecloth

restaurants about the importance of

local foods and happiness sort of our

mission statement we're uh we're dead

into certain local foods as much as

possible it's important to us it's

important to the community I believe in

our clients absolutely love it the

marketing strategy for this marketing

plan will focus on building brand

awareness and providing ongoing sales

stain ability for our target white

tablecloth customer restaurants tactics

will focus on helping these restaurants

promote use and sell kardia farm shrimp

with the market for shrimp and the use

of locally produced foods increasing

every year kara dia farms will be known

within the marketplace as the only

source of high quality fresh never

frozen locally produced shrimp

you will now explain the industry trends

in your market potential as Alicia

mentioned shrimp is the number one

consumed seafood surpassing tuna in 2001

according to the national fisheries

Institute the average american consumed

four pounds of shrimp in 2010 much of

this shrimp is imported from countries

such as Thailand in Vietnam where

environmentalists have linked shrimp

farming to the deforestation pollution

and damage to the ecosystem the low

production standards of imported shrimp

include antibiotic use and unsanitary

conditions as well as using untreated

animal manure and human waste in feed in

addition proven carcinogens have been

found an imported shrimp according to

the US government accountability office

only about two percent of imported

shrimp is inspected leading to major

health concerns for consumers shrimp

farming is nothing new however shrimp in

landlocked Iowa that's something that

isn't seen this unique aspect will draw

restaurants to purchasing from KR diya

farms nowhere in iowa will restaurants

be able to find locally produced shrimp

other than from KR diya farms as shrimp

is the number one type of consumed

seafood in america mostly in restaurants

ard of farms feels chefs want and need a

product they can rely on currently chefs

are looking for local foods to feature

on their menus with the National

Restaurant Association in 2011 ranking

locally grown food as the number one

trend the USDA also predicted that the

sale of local food would reach seven

billion dollars last year with the main

motives behind buying local being

perceived quality freshness and

supporting the local economy chefs are

willing to pay more for local foods as a

place an importance I'm product quality

and nutritional value with this increase

in the local food movement KR diya farms

gives unique twist to the buy local eat

fresh tagline a scaredy of farms

produces a premium product will be

targeting white-tablecloth high-end

restaurants through our market research

we've identified

127 restaurants we believe fit our

target market with the potential for

annual receipts of over 4.6 million

dollars now Abby will introduce our

target market and customer profile as

Britney said the potential for care idea

farmed shrimp lies within the upscale

white tablecloth restaurants offering

local culinary dishes and this is

exactly who you will be targeting to

identify these independently owned

restaurants we recognize certain

attributes which include premium priced

meal items local and seasonal menu

offerings proximity to your production

facilities and an affluent customer base

including young professionals with above

average income now our market research

shows there's been a thirty percent

increase in the number of your target

customer restaurants in the Des Moines

and Omaha markets proving that these

areas have great potential use

restaurants are willing to pay a premium

for quality local food options and they

understand the variability and supply

that can exist at times which is why

they're offering these seasonal items

designing their menus around the supply

now beginning in year one kardia farmers

will begin production at the Ames

location starting at fifty percent

capacity supplying 500 pounds of shrimp

per week this capacity will allow your

production specialists and staff to

develop and track best practices as well

as allow your sales force a chance to

create lasting relationships with for

high-volume customers that have all been

identified through face-to-face surveys

and interviews now building on the

supply we will achieve one hundred

percent production capacity in year two

supplying 1,000 pounds of shrimp per

week now continuing to build production

there will be growth in year 3 to the

Omaha market through production at a

second facility which will be located

just outside the metro area now by the

end of year 3 full production capacity

of 2,000 pounds of shrimp per week will

provide shrimp to approximately 35

targeted restaurants now these

restaurants consistently strive to

provide a divine dining experience and

this is

a clue why kara dia farms fresh shrimp

will complement their menus perfectly I

will now ask alissa to outline a

competitive competitive environment for

you as Brittany previously discussed

care dia farms has the ability to take

advantage of an untapped local shrimp

market your targeted restaurants desire

the highest quality food products and

are currently supplying their shrimp

needs through both domestic and

international suppliers seeing that

there are multiple sea food suppliers

within your targeted region we would

like to address the top three largest

volume competitors each of these

competitors are located in the Midwest

and offer products from a variety of

Regents each of your competitors are

currently supplying frozen shrimp

products with absolute fresh and Dixon

fisheries also supplying fresh shrimp

however it is very important to note

that suppliers labeling their products

as fresh are not really fresh in reality

their shrimp has been frozen stored and

then thawed for delivery of these

competitors caridee of farms is the only

supplier of truly fresh never frozen

shrimp in respects to price your shrimp

is priced at a premium however that

price premium still falls within the

average price your restaurants are

currently paying for locally sourced

foods after taking a closer look at our

competitors let's now discuss the

opportunities and strengths with Kerri

dia farms as mentioned in our

competitive analysis KRDO farms is the

only supplier of truly fresh never

frozen shrimp as with any fresh product

your shrimp will have a shorter shelf

life as compared to its frozen

counterparts but to ensure your

customers always have a fresh supply on

hand carry dia farms will make twice a

week shrimp deliveries we have seen

through our market research an

increasing demand for local foods as

well as shrimp consumption which has

generated a greater opportunity for Kari

dia farms however the marketplace has

traditionally shown limited customer

loyalty

but by providing a product which

surpasses its competition in freshness

and quality coupled with outstanding

customer service kara dia farms will

begin to build brand loyalty among your

targeted restaurants now I'd like to ask

Calvin to review our business

proposition section of our plan key

planning assumptions play a vital role

determining the potential sales of any

good when compared to your competitors

Curia Farms is the only local source

provider fresh never frozen locally or a

shrimp your product will be produced

within 50 miles of your customers

satisfying the industry's demand for

locally sourced foods although your

product is priced at a premium the

restaurants identified in this plan

already pay up to thirty percent more

for fresh locally sourced food products

in planning for the future you have

formulated your business to meet the

observed demand while still remain to be

a unique product sales are expected to

double each year for the next three

years this is supported by the current

trend of increased shrimp consumption by

consumers and as sales representatives

secure new targeted restaurants this

progression will continue to intensify

kardia farms business curity of farms

mission is provide the best obtainable

product for its customers with this in

mind a ghoul of ninety-five percent

customer satisfaction while striving for

one hundred percent has been established

through twice a week deliveries and

direct sales contacts curity of farms

and keep customer loyalty and

satisfaction your strategy statement

will be Kara dia farms will provide

upscale Midwestern restaurants with

fresh never frozen locally grown shrimp

of the highest quality Alicia will now

give an introduction to promotional

strategies KR diya farms will sell extra

jumbo shrimp for eighteen dollars a

pound production facilities located both

Ames and Omaha will be equipped with 20

saltwater pools kardia farms will

produce two thousand pounds of shrimp

weekly by year three shrimp will be

delivered to your target restaurants

twice a week in refrigerated trucks to

ensure freshness in order to promote

product benefits giardia farms we employ

a dedicated

sales team prior to the launch of care

dfr mushroom these reps will visit with

targeted chefs and supply them with

product samples and product information

and promote our brand of local shrimp

erdf farms will also employ a brand

manager working out of care dia farms

main office the brand manager will carry

out the development and implement a

marketing campaigns and strategies

darren will now give you an overview of

the marketing strategies to get kardia

farm shrimp onto the menus of your

targeted restaurants with a strategy to

promote kardia farms as the fresh never

frozen locally grown shrimp of the

midwest ard farms begin pre-launch

strategies in july 2012 utilizing both

push and pull marketing strategies we

have built a promotional plan with three

main focuses in mind generating brand

awareness fail sustainability and

ongoing support marketing tactics as a

way to introduce and build brand

awareness for kardia farmed shrimp

personnel will host the key idea farm

fresh tour guests will be invited

through a direct mail campaign for a

behind-the-scenes look at Kira dia farms

emphasizing your top quality production

standards and unique niche product

following the farm fresh tour Curia

farms will officially launched publicly

at the 2012 Iowa's premier wine and food

Expo in Des Moines Iowa karadjias

presence at the show will include an

exhibit booth at the Emporium tradeshow

to interact with restaurant chefs and

buyers industry influencers and key

media outlets to build additional brand

awareness among your target care dia

farms will host a chef's cooking

competition on the xposed local stage

featuring three partnering local

restaurants preparing curity of farmed

shrimp recipes additional earned media

buzz will be generated by local food

movement enthusiasts in attendance as

they broadcast the event through

facebook twitter and blog social media

channels once brand awareness has

successfully been achieved within your

target kardia farms will implement a

sales sustainability strategy comprised

of four key

tactics first as a way to provide

value-added customer service to your

target restaurant chefs kara dia farms

will launch the cardia chefs

collaborative this innovative marketing

program will bring together local

stakeholders of a sustainable food

landscape through quarterly

collaborative events these collaborative

events will allow for an ongoing

conversation between restaurant chefs in

industry representatives across all

aspects of the local production system

next as a way to inspire chefs to offer

unique shrimp menu items promote these

dishes through specials and thus

increase overall shrimp sales curia

farms will implement quarterly

restaurant sales competitions beginning

in year to the top restaurant finalists

each quarter will be rewarded an

opportunity for an exclusive co-hosted

winemaker's dinner featuring karaoke

idea farm shrimp and local wine pairings

when analyzing paid media advertisements

in food publications kara dia farms

small target market simply did not make

this an effective use of marketing

dollars instead to gain publicity the

cardia farms brand manager will work two

games earned media placements in these

select regional food publications to

spread the word to both chefs and local

food connoisseurs as the last sale

sustainability effort utilizing

Foursquare erdf arms will have a

consumer directed poll effort marketing

approach to build excitement around Cara

dia farms fresh shrimp this cost share

program will reward restaurant patrons a

ten percent shrimp entree discount for

restaurant check-ins as a way to

supplement the key promotional

strategies in this plan purity of funds

will have ongoing support tactics

including a company website in social

media supporting direct mail campaigns

and monthly email marketing blast with

this comprehensive promotional plan in

place Andy will now describe the

financials buying this plan as you've

seen throughout our presentation the

tastes and needs of your target market

went to a favorable launch for Kara dia

farmed shrimp with the ability to supply

26,000 pounds in year

one growing two 104,000 pounds in year

three with the addition of the Omaha

facility not a price of eighteen dollars

per pound your shrimp will generate more

than 1.8 million dollars in sales as

Brittany mentioned during the industry

trends overview the local foods movement

is a leading trend and your organization

will be able to capitalize on this

movement in order to reach your goal of

a forty percent profit margin by the end

of year three with stocking facilities

equipment and labor making up the

majority of your production expenses the

total cost of goods sold will be eight

dollars per pound in year one falling to

six dollars per pound in year two this

decrease in expenses can be attributed

to efficiency cost savings that will be

gained as you increase production from

fifty percent to full capacity as keria

farms is a new entrepreneurial venture

your organization will need to

substantially invest financial resources

in order to gain brand awareness within

your target market in year one the total

of your marketing expenses will equal

two hundred and twenty thousand dollars

and with the expansion to the Omaha

market year three that total will

increase to more than three hundred and

fourteen thousand dollars these expenses

include your direct mail campaigns stage

sponsorship at Iowa's premier wine and

food Expo kardia farms farm fresh tours

and all other opportunities that Darren

outlined the innovative logistics in

nature of your product combined with the

surge of the local food movement predict

a bright future for carry a farm shrimp

with profits in year three of more than

eight hundred thousand dollars the door

will be opened for expansion into new

geographical areas as well as additional

seafood products should you choose to

pursue them the financial breakdown of

this product shows potential for kara

dia farms to make a big splash in the

Des Moines and Omaha markets now to

explain how your marketing goals and

activities will be monitored and

measured here's Casey the marketing

strategies and goals detailed in this

marketing plan we monitored by cara de

farms brand manager and sales

representatives curity farms will hire

motivated sales

send us to capture the identified sales

goal of 1.1 million dollars by the end

of year three sales representatives will

set monthly and quarterly goals for

success which will be analyzed on

targeted dates if sales are each

production will continue at one hundred

percent capacity should sales be lower

than expected kardia farms will

re-evaluate the current customer

restaurant sales on pasture week and

reconsider positioning in the restaurant

market now as we all understand profit

margin measures the efficiency of how

expenses are control with a go set of

forty percent profit margin by the end

of year three it can be seen that

cardiff arms is budget effectively to

reach a higher net income by evaluating

the financials monthly curity of farms

will be able to monitor expenses and

identify any and efficiencies if profit

margin is i met all areas the financials

will be reviewed and budgets will be cut

to gain a higher net income for each

dollar sales when it comes to the

overall success of kardia farms your

customers play a vital role which make

which makes achieving ninety-five

percent customer satisfaction a priority

sales representatives will conduct

surveys at fiscal six months and you're

in to ensure this should satisfaction be

lower than ticipate 'add all areas of

discontent we focused on to increase

these levels the monitoring measuring

for care do you farm sales and marketing

once you're a positive and successful

product launch and now we will conclude

our presentation with alisha cyclone

marketing is confident care dia farms

will have an impact in the restaurant

industry with your high quality fresh

never frozen locally produced shrimp

kara dia farms provides a new wave of

fresh we thank you for your attention

and we were happy to answer any

questions you may have

I'm curious about the production is it

indoor or outdoor production the

production will be in an indoor Morton

building or Morton like structure so it

will be a steel building the the biggest

cost with that is that the shrimp need

to be kept an environment of about 83

degrees so with Iowa winters and I with

summers it will be important to have a

good temperature control that can keep

the building cool and warm as necessary

they'll be kept in 20 different pools

within the building I've got a question

on supply so I'm the first year you said

you got four stores and you have 500

pounds a week so that means every store

gets under 25 pounds the second year you

said you had a thousand pounds but

you're going 20 stores so that means

everybody gets 50 pounds so it looks

like my concern if I buy on with you is

it's a store where you have supply to

meet my demand and then the second

question I have right along with that is

there's a store is it like an

all-or-nothing thing will they sylheti

to be all-in with you with fresh Iowa

shrimp or they'll it'll be okay to

supply them half Iowa shrimp and they

buy the other half from the Gulf Coast

or wherever or they try to maintain

product quality by just going I'm either

in with you or not with you right so to

answer your first question there the

four the four restaurants that we're

targeting in year one are very high

volume customers because they are

specifically seafood restaurants where

they might have maybe eight to ten menu

items with shrimp with cara dia farms

shrimp on their menu whereas in year two

and three those restaurants that we're

adding in our a more diversified

restaurant where they might have only

two or three menu items so that averages

out to about 50 to 60 pounds per

restaurant or you've got those higher

volume and then the lower volume was in

those years but then to continue with

your answer there we will allow them you

know if they choose to put up to

purchase shirt from another customer

that's fine but when they put that

shrimp on the menu

it should say caridee afar shrimp on

that menu item so we won't allow them to

use our name with any other brand of

shrimp I think well yes it was a

follow-up so it goes back to will you be

able to always make sure i have the

supply because i'm either with you with

if i create some kind of shrimp plate I

don't want half my customers beating the

farm fresh but the other half in the

restaurant to beating the frozen ones

because it does something to mine so

that's why I'm asking the question more

about supply so when we did our primary

research and talk to these restaurants I

mean most of everything they're sourcing

is local so they completely understand

you know the difficulties and challenges

of sourcing local there's that limited

supply and in a way it provides

exclusivity you know when a customer

walks into these restaurants they want

the highest quality food than getting so

I mean it's like you walking into a

restaurant they say we're out of prime

rib tonight so I mean it they will pull

these items from their menu if we don't

have the supply and that's how they're

going to manage that at the restaurant

level I think that if I remember the

slide I don't think it's in here but

you're at at least a dollar premium over

competitors what led you to that dollar

that dollar premium is supposed to

something greater or less well it is and

it is the only way I mean it because

really the only difference is local

fresh well when we talked in that

primary research studies we went out we

had direct contact with about 60 of

those 127 restaurants that we identified

and so when talking to them they're

willing to take on that thirty percent

premium because the customers willing to

pay for it that was what we heard from

them so they're willing to take that the

price premium premium on and continue

with that and we didn't want to go any

higher than that because about it

depends on how much volume a restaurant

is moving but they're about at a thirty

to forty percent markup on a shrimp dish

I'm currently within the industry so we

didn't want to go any higher than where

we were but that's how we got to the

price we were where we're at right now

I'm curious about your value proposition

and starting with the negativity of what

you know if I like shrimp right now and

I order it in restaurants right now

you're going to tell me that I

could be getting something that's bad

for me so how do you use that when

you're selling two chefs or when you're

talking to foodies or food media how do

you walk that fine line well though the

production standards of shrimp that is

imported are very low shrimp in Vietnam

and Thailand have production standards

that quite frankly are quite disturbing

if you imagine a shrimp pond that has a

chicken coop suspended above the water

twenty thousand chickens are in this

coop and the chicken waste is falling

through into the pawns in the shrimp are

eating it proven carcinogens are being

used is given to these shrimp and the US

Air Government Accountability Office

says that the FDA only inspects two

percent so our shrimp really is better

and by telling consumers that ard a

farmed shrimp is this high premium

product and telling them how good it

tastes compared to the imported shrimp

we're going to be able to play on that

and really use that to our advantage I

guess to add on that we're not going to

have any secrets you know we've got the

farm fresh tour we're inviting the

chef's we're inviting the media in house

looking at our production standards and

it may not be focusing so much on the

negativity of the imported but really

just you know in stride you know

showcasing our production standards how

you know we're going above and beyond

and guaranteeing a quality product for

our customers because what I'm really

asking is how much of that back end

stuff will consumers actually know about

because right now if I go buy shrimp in

the grocery store or eat it or on any

other menu I'm not going to know if it's

from Thailand or where it is from we did

conduct market research at Iowa State

University and it was our sensory

research panel and we had customers or

consumers come in and we had frozen

shrimp products as well as our fresh

shrimp products there and we found

through our market research that the

fresh shrimp the consumers did they

could tell a difference in the taste and

the palatability

somebody this is another way to get at

the same thing there's been a lot in the

news just in the last couple months

about farm raised seafood and how any

kind of pharmacy food is bad it doesn't

matter where it's raised so you have

that possible perception plus we very

bravely brought up that Iowa and shrimp

don't necessarily go together so have

you done the research to know that both

the chefs and folks who go to those

restaurants would actually prefer or be

willing to buy your product when we

talked to the chefs in our primary

research and study they said that farmed

race shrimp in Iowa is going to be a

point of entry for their customers their

customers are going to see carroty of

farms I will raise shrimp on the menu

and they're going to want to buy our

shrimp because it's not something that

they see every day and we will give the

the chef's the information on how we

produce our shrimp through our farm

fresh tour and they will have that

information to share with their

waitstaff so if the consumer does have

questions the wait staff can answer that

for the consumer also in the news lately

there's been a lot of reporting on

dumping of shrimp from these import

markets on the domestic market obviously

Louisiana's on the other coastal areas

have suffered because of that is there a

plan in place if dumping safe from a

Vietnam or Indonesia or something else

happens that you can capture that and

you do something either pricing in order

to have that nap be in effect

and take that so we've set our price at

eighteen dollars per pound and the

reason you know we're confident that we

can continue to have that strong demand

is because these restaurants

specifically you know have that local

appeal have that those foodies that go

in there looking for the local so

despite the fact that I guess they can

source alternative shrimp at that

cheaper price it's not going to matter

to them because their customers will be

in essence demanding our product so what

do you do after your water you're too

and I decide open my own place and make

grilled shrimp so what would what you

can do to prevent somebody else from

opening more salt ponds in Iowa and then

starting to take your market so is there

anything you have in your plans ur

because usually when you create a market

there's somebody coming right after you

that's that's a really good point really

the reason that this hasn't even taken

off before now is because of the

filtration technology that's needed for

the pools and so as a board you've just

unlocked that potential with that

patented technology oh the filtration

units so that's really going to be our

greatest barrier to entry is that not

there's no other I guess technology out

there to match what we have and bring in

that environment into Iowa well

protection do we have over energy costs

if you have to keep this at 83 degrees

year-round um I mean I'm sure as

everybody knows that those energy costs

can jump around on you so we will be

looking into forward contracting to lock

in prices that that are profitable for

us

how did you go about identifying which

restaurants would be the best ones to

work with we started that research on

database sites such as Yelp where we

identified restaurants in the area and

then we picked out approximately 150 of

those we went and visited them

personally figuring out if they fit our

target market are they local do they

offer the local and the seasonal items

do they are their customers the young

professionals like we outlined so once

we identified them we went and conducted

even further more specific target market

research so we were able to identify

approximately in the omaha and the des

moines markets 127 potential restaurants

that do fit this this criteria