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 ISL MARKETING & DISTRIBUTION STRATEGY
The marketing and distribution strategy for ISL is focused on developing and maintaining long-term relationships with distribution channel members. ISL also strives to differentiate its products to achieve a consistent supply and quality. ISL believes the scallop market effectively functions as a commodity market and therefore relationships with distributors are important.
To develop these relationships, ISL has identified key purchasing criteria for the distributors: price, quality and consistent farmed supply. In the short term, ISL intends to adopt a pricing policy equal to the market wholesale prices. In other words, the Company does not intend to set any promotional or premium prices for either the whole or shucked product, but instead to sell the products at the market rate. This would mean ISL's products would compete on other factors, such as supply and consistent quality.
Over the long term, for the reasons noted below, ISL wants to differentiate their products so that they can command premium prices. Freshness is an important factor for scallops since whole scallops only have a shelf life of approximately seven days while shucked scallops remain fresh for up to 20 days. Due to this short shelf life, distributors try to offer the freshest products. ISL believes it is in a favorable position to supply fresh products to U.S. brokers/distributors, especially those located on the west coast where demand for the product is strong. Currently, these brokers/distributors are supplied with east coast North American scallops, which have several transportation-related delivery delays that decrease freshness.
Supply is another key factor where ISL has a distinct advantage. Based on the planned scallop projection, ISL has a large quantity of scallops for sale. Therefore, a distributor would not have to out-source numerous suppliers, which costs time and money. This makes ISL an attractive source for scallops, since they are able to satisfy the demand of their distributors, which will save them time and money.
Unique Live-Scallop Handling System
ISL has developed a unique live holding system for use in its distribution model and marketing plans. This system allows ISL to deliver live product directly to seafood suppliers and individual restaurants and retrieve unused products on a weekly basis. Unsold product is then returned to ISL for further processing and shucking for re-sale as shucked meat. This not only minimizes waste, but also allows ISL to maximize profits and adjust more rapidly to changing demand trends.
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 MARKETING / DISTRIBUTION  SCALLOPS BLACKCOD GENERAL FISHERIES |
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