Saturday 27 September 2014

Big Brands or generics? Be careful what you wish for

Superficially, the widespread and still growing availability of generic animal medicines can be seen as an opportunity to give customers a cheap deal. In human medication, anti-inflammatory ibuprofen - the generic of its branded forerunner, Nurofen® - shows what is possible. In one of the many bargain stores around the country, a 16-pack of 200mg ibuprofen tablets can be bought for less than 50p, while the equivalent Big Brand is typically three times the price.

The same choice of generic or brand exists already in VPS medicines, of course. Indeed, a new product cupboard that is thought to be somewhat under-stocked suggests this is unlikely to change any time soon. But is this a good thing for the VPS trade (or indeed, their farmer customers)?

Big Brands do not achieve that status by accident. It takes sustained and significant investment by the manufacturer or product licence holder in marketing and promotions, sales campaigns and CPD for SQPs, brand advertising and sponsorships. Products with potential for justified widespread use by farmers that are well-marketed can be expected to jump off country store shelves and make the merchant a decent margin, and their sales team some nice commission.

In contrast, customers can face a wide choice of generics on the shelves or in merchants' catalogues, some differing from others is quite subtle ways. In this situation, many will require SQP guidance if their treatment selection is to be a responsible one. Not only does product need matching to problem, its use must also be justified in the first place, all of which - if it is to be done properly - consumes SQP time and intellect. Clearly, SQP training and ongoing CPD cater for this, but nonetheless SQPs individually shoulder significant responsibility in the prescribing process.

Meanwhile, on a commercial and practical note, each new generic that is stocked demands shelf and storage space, each at a cost to the distributor's business. Furthermore, as the number of available generics for a specific treatment increase, competitive pressures are likely to drive prices down, and retailer margins along with them.

So the likelihood of a generics-dominated future offers the prospect of even tighter margins and with this, fewer opportunities for diligent and ambitious SQPs to support customers with sound advice and forward looking health (and welfare) planning. With this low value future in mind, perhaps we should be careful what we wish for the next time a customer winces about the price of Branded Wormer compared with generic ivermectin, for example. Otherwise, in an all generics future, who will pay SQP wages and who will write VPS medicine prescriptions? Quite.

Tuesday 16 September 2014

Unanimity among agri-journalists over global issue for farming

Among 26 journalists from 14 nations at the IFAJ post-congress tour's first night dinner in Stratford-upon-Avon, there was unanimity in response to a question of fundamental importance to each country's farming industry.
At the end of the main course, guests were asked to stand up by UK GAJ member Phil Christopher in his capacity as a director of dinner sponsor, Sterling Sires. He then invited those who believed their own country's farming industry was good at marketing to sit down.
The response opened up the opportunity for a marketing case study based on the dinner's main course. It featured Aberdeen Angus ribeye steak, served with an expertly matched red wine, as sold by the sponsor's sister company, Paul & Kirsty's Perfect Night In.
"When this business started in 2012, we thought we were selling gourmet steaks and select wines to discerning, connoisseur consumers," said Mr Christopher. "But by analysing sales information and finding that 90% of sales have different purchaser and delivery addresses, we proved ourselves wrong. It turns out we're a gift company, competing with premium hampers, for example."
As a result of seeing themselves from customers' rather than their own perspectives, the Perfect Night In team completely re-designed it's product range as a number of distinct, occasion-specific options. Prime Angus steaks and carefully matched wines remain the centrepiece, but additional gift accessories have been added and the presentation upgraded significantly.
In addition to seeing themselves through customers' eyes, Phil Christopher said the other key marketing issue illustrated by the Angus ribeye steak main course was consistency. "Those served here are from the Blade Farming supply chain," he explained. "From a calf's birth right through to dinner plate, Blade's rearers and finishers of about 20,000 prime cattle annually all use the same production system.
"So at Perfect Night In or an evening like this, we know for sure the steaks will be the same premium quality at any time of year. They are always Angus-cross-Holstein, which have always grazed for at least a six month period, were always fed on a high quality forage based system, and were protected against disease from birth by proven protocols.
"When you buy a Coca-Cola, it's always exactly the same as last time. That's what customers want: Predictable and consistent quality. And that's one of the important things that livestock farming around the world need to focus upon."
Sterling Sires supplies semen of progeny-proven and genomically selected superior bulls from a range of dairy and beef breeds. Sire selection is geared to offering customers sustainable genetics from which to breed the long lived, regular breeding, high performance cattle that are essential for sustainable production. For animal production to be sustainable, we believe it has to be profitable for the farmer, environmentally sensitive and socially acceptable.
By the way, (i) huge thanks are due to the Midlands Guild group’s Nick Bond and Liz Snaith for organising the dinner; and (ii) just in case you’re wondering about the ‘stand up, sit down’ poll, everyone remained standing.
-ends-
Sterling Sires Ltd contact: Paul Westaway 07814537462, paul@sterlingsires.co.uk
Author & PR contact: Phil Christopher, Red Rock Publicity, 07802 672304, phil@redrock.uk.com