Animal Health Marketing: The Power of Video

According to Dr. James McQuivey of Forrester Research a minute of video is worth 1.8 million words.

With proper optimization, video increases the chance of a front-page Google result by 53x over standard content. (Forrester, January 2010)

Video in email marketing has been shown to increase click-through rates by over 95%. (Implix, 2010)

As the internet continues to be a primary marketing avenue for both B2C and B2B companies, there is an ever growing trend to discover new ways to deliver an attention grabbing sales message to potential customers. Over the past few years, content creation, SEO and social media networking have been the most popular online marketing strategies. They each certainly play an important role but there is one online marketing strategy that has become more powerful than any other.

Video.

Video is not new to the internet but due to the cost of producing high quality videos on a consistent basis and the previously unreliable low bandwidth of internet users, video was not widely used by companies. Video is finally becoming an integral part of online sales and marketing due to its efficacy and the improvement in technology.

“The rise of broadband and better mobile networks and devices has meant that video has become an increasingly popular part of users’ online experiences,” said Kathleen Moore, PhD student at Penn State University. “People use these sites for every imaginable reason – to laugh and learn, to watch the best and worst of popular culture and to check out news. And video-sharing sites are very social spaces as people vote on, comment on, and share these videos with others.”

Video has the potential to change the face and way animal health companies communicate with potential customers. As long-time supporters of video, we have helped several companies develop new videos to help communicate their message. The following is a video we recently produced for a soon-to-be-launched nutraceutical company. Their strategy is to incorporate new and fresh video throughout their website and through their email marketing campaigns.

Where’s the Video in the Animal Health Industry?

Currently in the animal health industry, very few companies are using video. Matter of fact, in reviewing the top 20 B2B and B2C animal health company websites according to Google, only ONE company utilizes video on their website. If an animal health company needs proof that video has become the most powerful online marketing tool available, here it is:

• 175 million U.S. internet users watch online video content per month an average of 15.1 hours per viewer.
• The total U.S. internet audience engaged in more than 5.4 billion viewing sessions during an average month.
• 84.1 percent of the U.S. internet audience view online videos each month

Internet users are not just viewing videos online for entertainment purposes. According to a new study done by TidalTV (July 6, 2011) the top two industries for online video clickthrough rates (CTR’s) are finance and home improvement. 9th on the list was the pharmaceutical/OTC industry.

Only Young Adults are Watching Videos Right?

A common myth is that video’s are only for young adults (16 to 25). According to a recently released (July 6, 2011) TidalTV survey two age groups tied for the highest clickthrough rate for videos – Ages 15-17 and Ages 65+. Yes, people in their sixties are watching as many video’s as high school teenagers. The next highest group for online video clickthrough rates was the age group 55-64. Whether it is for entertainments purposes, product research or self-education videos appeal to all age groups.

Video Isn’t Just for the Internet

Up to this point, we have primarily focused on the use of video as a sales tool to acquire new customers. This is certainly a great way to engage with a consumer and to make a sales message stick however another wonderful but rarely used opportunity for video is for internal purposes. Let’s look at an example of this within the animal health industry. The most common market channel strategy in the animal health industry is the use of distributors. For those that have worked in this channel, you know that it takes A LOT of work to have any sort of success. It takes sales calls, ride alongs with sales reps, in-store visits, promotions and other labor intensive and time consuming efforts. Even when these strategies are implemented it can be difficult to achieve much success. As most have experienced, typically after a sales call or a ride along you get a quick boost in sales but it is typically short lived. To achieve continued success you need to continually pitch your product and its benefits and features. Imagine an animal health company using the power of video to promote, train and conduct sales calls with distributor reps or even their own internal sales reps.

Who Will Start The Video Revolution?

If an animal health company is ready to take the next step in online marketing and utilize video throughout their marketing strategy contact cheetahLink today. We have the ability to produce high quality videos at fraction the cost. Typically, we can produce videos at 1/2 the cost of other production studios. Along with the video above, our video production team completed a new video for Thorne Vet. Thorne Vet is one of the leading animal nutraceutical companies in the world. To see their new video visit www.thornevet.com.

About cheetahLink

Founded by Preston Munsch, cheetahLink is a consulting firm for the animal health industry. Munsch has spent the past 13 years in the animal health industry specializing in product development, animal health marketing, market position branding, animal health sales, market channel strategies and new client acquisition. Munsch has a Master’s Degree in Business Administration along with a Bachelor’s Degree in Communication and Associates Degree in Graphic Design. If you have any questions feel free to contact us at 720.244.2034 or pmunsch@cheetahlink.com.

Animal Health Marketing: AFIA Set To Take On Equine Industry Issues

Last month during the American Feed Industry Association (AFIA) Purchasing and Ingredient Suppliers Committee in San Antonio, a group of fifteen equine leaders met to discuss the idea of forming an Equine Committee.  The group discussed the current issues in our industry and how an Equine Committee within the AFIA could help address these issues.  There was a tremendous about of energy in the meeting as it was clearly agreed upon by the group that not only is this committee needed but we could make a major impact on the industry. 

The idea for this committee started back in the summer of 2009 when I had the opportunity to discuss the idea with AFIA President Joel Newman.  Joel embraced the idea and made a trip to Colorado to discuss preliminary thoughts on the objective of the committee.  Less than a year later, the idea is one step closer to reality as Joel  gathered a group of leaders in San Antonio to discuss forming this first-ever Equine Committee within the AFIA.  The initial meeting in March included leaders from Hallway Feeds, cheetahLink, Triple Crown, ADM, AlfaGreen Supreme, Blue Seal Feeds, Alltech, MARS Horsecare, Southern States Coop, Cattleman’s Choice Loomix, Nutreco, Pennfield Corporation and Seminole Feed.

During the meeting, the group established a number of isses that we believe the Equine Committee could address to help further the equine industry.  Among those issues we established the three most pressing concerns that need to be addressed. 

• Unwanted horse issue – Currently there is a lack of information regarding the total number of unwanted horses existing in our nation but general consensus is that number is well over 100,000.  This is an issue that needs to be addressed as the number of unwanted horses is having a dramatic affect on the industry.  Due to the large surplus in unwanted horses, breeding is down which has a direct negative affect for veterinarians and breed associations.  New horse purchases are down both in number and value.  This is an issue that the AFIA Equine Committee will take serious and look to industry leaders and organizations for help in developing a plan that works for everyone in the industry. 
• Product labeling – There is a tremendous variability in labeling interpretation from state-to-state.  The AFIA has been very successful in working with state regulators in other industries so we hope to have the same level of success in the equine industry.
• Quality assurance – There is a lack of consistent quality assurance in the equine feed industry.  This ranges from manufacturing processes to ingredients.  The AFIA currently has a program called Safe Feed/Safe Food which is an option to help address this issue.  The Safe Feed/Safe Food Certification Program is a voluntary, independently certified program designed for the total feed industry. The Safe Feed/Safe Food program establishes comprehensive standards of excellence that go beyond existing regulations to maximize food and feed safety.

There were other issues addressed during the meeting as well including product registration in Canada, state tax and registration fees, foster youth participation in the industry and lack of standards for “low starch” horse feeds.  One other major issue this committee will discuss is the definition of a horse in whether they fall under ‘livestock’ or ‘companion animal’.  How horses are defined by state and federal governments will have a major impact on several issues (unwanted horses, ingredient usage, labeling, taxes, etc.).     

One member of the group who attended the meeting was Jeff Pendleton, General Manager of Hallway Feeds (Lexington, KY).  “Instead of individuals addressing issues/concerns alone, having a group effort with focus will accomplish much with greater efficiency,” said Pendleton.  “This template will allow the AFIA Equine Committee to work for the betterment of all Equine feed manufacturers.”

Jarrod Kersey, Director of Ingredients and State Legislative Affairs for the AFIA, has been selected as the staff contact and leader for this committee.  Jarrod believes that the Equine Committee will be a valuable tool and resource for the industry.

“AFIA is excited about the interest expressed by the feed industry to develop a committee dedicated to the regulatory and legislative feed issues facing the equine industry,” said Kersey.  “The issues impacting the equine industry vary from feed labeling to trade to a host of other issues involving state departments of agriculture, FDA Center for Veterinary Medicine to federal legislation.  With FDA promulgation, Animal Feed Safety System and the various food/feed safety bills out there, the timing couldn’t be better.  An Equine Committee focused on feed has the ability to make a difference by education and lobbying efforts focused on equine issues.”

There are a few final steps that need to take place before the Equine Committee is officially approved by the AFIA.  A proposal that includes the committee’s mission, objectives and 2010-11 Action Plan needs to be finalized.  We also need to propose an initial slate of Committee members and identify future meeting times and locations.  All of these items will be presented at the AFIA Board Meeting in May for approval.  We are optimistic the Board of Directors will approve the Equine Committee as we all believe this committee will serve the equine industry and the AFIA well both short-term and long-term. 

If you would like to learn more about the AFIA Equine Committee or how your company can be more involved in the AFIA email me at pmunsch@cheetahlink.com or contact AFIA President Joel Newman at jnewman@afia.org.

About cheetahLink

Founded by Preston Munsch, cheetahLink is an online marketing and consulting firm that specializes in the animal health industry. The focus of cheetahLink is to increase sales, brand recognition, online visibility and website traffic through search engine optimization, website development, social media site marketing (Facebook, Twitter, LinkedIn, etc.) and other online marketing services.  CheetahLink also provides consulting services for animal health companies including product development, business development, sales/distribution plans, contract manufacturing, and other services.  Munsch has spent the past 10 years in the animal health industry specializing in product development, animal health marketing, branding, sales, distribution and advertising.  Munsch has a Masters Degree in Business Administration along with a Bachelors Degree in Communication and Associates Degree in Graphic Design.  If you have any questions regarding our services feel free to contact us at 720.244.2034 or pmunsch@cheetahlink.com.

Animal Health Marketing: Marketing ROI is the Trend In 2010

Return on investment (ROI) can be simply defined as the ratio of money gained or lost on an investment relative to the amount of money invested.  The definition is simple but for most companies measuring ROI, marketing ROI in particular, is easier said than done.

According to a recently released survey “Marketing Trends Report 2010” by Anderson Analytics and the Marketing Executives Networking Group (MENG) marketing ROI is the hottest trend for 2010.  Marketing executives are more focused on getting a good return on their marketing investments.  The fact that marketing managers want to measure their return on marketing activities is a sign of a more optimistic economic future.  If marketing ROI is the top trend in 2010 this means that marketing dollars are increasing which points to a more positive prognosis for this year.

Marketing ROI has become a hot trend for two reasons.  First, companies are increasing their marketing budgets in 2010 but they are going to monitor it closely.  Most marketing budgets were reduced over the past year in light of the economic downturn but all indications show an upswing in marketing budgets.  The second reason why marketing ROI is a hot trend is due to the dramatic increase in using online marketing tactics (social media, blogging, mobile marketing, etc).  Online marketing is a new concept for most companies and most executives are still a bit leery on its true effect and ability to increase revenue.  For these two reasons, marketing ROI has surfaced as the most important trend for marketing executives.

Measuring marketing ROI has always been a challenge for companies in past decades due to the fact most marketing strategies were based upon traditional mediums (magazines, newspapers, radio, tv, etc.).  Traditional marketing ROI can certainly be measured (unique URL’s, tracking phone numbers, etc.) but it takes planning and diligent follow-up to measure the success.  The beauty of online marketing is that there are tools (Google Analytics, WordPress analytics, LeadLander, etc.) that can be implemented to allow you to measure your marketing ROI 24 hours a day.  But there is a caveat!  You need to know what to measure and how to read the measurements.

Most companies review their analytics once a month and only review their dashboard (the landing page of Google Analytics).  The dashboard will provide some basic information (visits, page views, average time on site, etc.) but it clearly does not provide sufficient information to measure the true success of your website.  To get a better understanding of your analytics follow these simple steps:

1. Get a weekly report from your marketing team or outside consultant that provides an update and overview of your website performance.  This weekly report is meant to keep you up-to-speed on the growth (or lack of) of your website.  This report does not need to be long in length as the objective of the report is to keep you and your management team informed of your website.
2. Give your marketing team or outside consultant one day a month (via in person or a webinar) to provide a detailed end-of-the-month presentation on your website performance.  This presentation should not only provide data but provide answers and solutions.  A presentation that only provides snap shots of your dashboard is not sufficient!  Some topics that should be covered include looking at your top landing pages and their exit percentage.  If you have any pages with an exit percentage of 50% or higher find out why and provide suggestions to improve that number.  Look at your top ten content pages and look at their exit percentage.  You may be getting a lot of people to a certain page but you could have a high exit percentage.  Your exit percentage on your best content pages should be 40% or less.  These are just a few examples of what this presentation should cover.
3. Ask for a short analytic report every time your company runs a new promotion or ad campaign.  In order for you to measure your analytics properly you must setup the proper parameters to allow analytics to measure your success.  For example, if you are pushing a new promotion through Twitter make sure you have a link to a page that you can measure click through rate and bounce rate.  This is called landing page optimization.  For example, you are providing a coupon that end-users can use at retail stores to get 25% off a certain product.  Create a new page on your website with the coupon.  This allows you to measure how many hits you are getting to the coupon page.  Another suggestion is to ask the consumer 2 to 3 questions so you can gather some market research.  Also add a function that allows the person to forward the coupon to others via email.  This allows you to collect email addresses of potential customers.

These are just a few strategies to implement to help measure your marketing ROI.  As the economy begins to show signs of life, companies are making new commitments to their marketing budget but they are doing it with a watchful eye.  Marketing ROI is not something new as it has been around for several decades.  It is receiving renewed attention due to the fact that marketing strategies have changed dramatically over the past 12 to 18 months.  Senior managers of most companies are still trying to get a complete grasp and understanding of online marketing.  One way to better understand it is to measure it.  Measure new leads generated, increased website traffic and increased revenue.  If you follow the suggestions outlined above you are taking the first needed steps to measure your online marketing campaign and marketing ROI.

About cheetahLink

Founded by Preston Munsch, cheetahLink is an online marketing and consulting firm that specializes in the animal health industry. The focus of cheetahLink is to increase sales, brand recognition, online visibility and website traffic through search engine optimization, website development, social media site marketing (Facebook, Twitter, LinkedIn, etc.) and other online marketing services.  CheetahLink also provides consulting services for animal health companies including product development, business development, sales/distribution plans, contract manufacturing, and other services.  Munsch has spent the past 10 years in the animal health industry specializing in product development, animal health marketing, branding, sales, distribution and advertising.  Munsch has a Masters Degree in Business Administration along with a Bachelors Degree in Communication and Associates Degree in Graphic Design.  If you have any questions regarding our services feel free to contact us at 720.244.2034 or pmunsch@cheetahlink.com.

Animal Health Marketing: Our Site Looks Great, Where’s the Traffic?

I recently ran across this definition for online marketing – Online Marketing is the art and science of selling products and/or services over digital networks, such as the Internet and cellular phone networks. 

Simple but a bit outdated.

I then saw this definition – Online marketing refers to the placement of media along different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, e-mail marketing, and Web 2.0 strategies. 

Decent but a little heavy.

We can simplify the definition into three words – Follow, Share, Buy.  Is it that simple?  Yes and no.  Let me explain.

Lets take a real life example, an example I see too often.  Company A is looking at launching a new website.  Everyone is excited as this certainly will lead to an early retirement and a second home in Belize.  Maybe a little dramatic but I have seen organizations believe that a new website as the second coming.  Soon the project begins and of course there are obstacles pushing the launch date back 3 to 4 months.  Finally the new website is launched ($15,000 to $20,000 later) and it looks great.  Everyone is standing around their computer waiting for the orders to come in.  The first day, the first week, the first month is slow but things will certainly pickup as the new website looks so good.  Soon enough company executives realize that their substantial investment is not producing the type of ROI they expected.  Here lies the problem.  Yes, Company A has a beautiful website but outside a press release announcing the new website the company isn’t doing anything to drive new and continual traffic to their site. 

Now lets take a look at Company B.  Company B decides to launch a new website but they also make the commitment to develop an online marketing strategy (courtesy of the President’s teenage daughter who keeps telling her dad how cool Twitter is).  A well thought out and designed online marketing strategy will provide a number of benefits including…

• Drives new and continual traffic to your website
• Increases your organic search engine results
• Allows consumers to follow and share your message with others  
• Generate new leads and customers
• Helps retain your current customers

Online marketing encompasses a wide range of strategies all revolved around the simple but very effective motto of Follow-Share-Buy. 

The first step of a successful online marketing campaign is to get consumers (new and current) to follow you.  There are a number of techniques that can be used but the most important technique to get followers is to establish your company as ‘the’ expert in your industry.  This is accomplished by providing valuable content as content is king!  This is done by writing news releases, articles, ebooks and white papers that indirectly sell your products and services.  Nobody wants to follow a blog of articles and releases on how great your company and products are.  Now take these written items and distribute them through online tools such as blogs, social media sites, social bookmarking sites, company website, and press release distribution services, just to name a few.  In today’s world, consumers use the internet to find immediate answers.  They use the internet to learn, to education, to resolve, to buy.  For this reason, your company needs to be online providing valuable content to help answer the consumer’s needs. 

Once a consumer finds your information valuable they will begin to ‘recommend’ or share your message, products and services with others.  A person who shares your message with others is a true believer in your company and products.  Sharing also starts the process of mass distribution of your message.  With online marketing all it takes is for one of your written pieces to become viral and it will literally be seen by thousands of people.  Once a consumer is following you and sharing your message the final step, buy, is inevitable. 

The three steps of online marketing, Follow-Share-Buy, can provide wonder results if done properly.  Another benefit from Follow-Share-Buy that I want to point out is that it will dramatically improve your organic search results.  Search engines today produce a diverse  mix of results including news releases, social media sites, websites, and videos.   The more diverse you are in spreading your message, the better your organic results will be within Google, Bing and Yahoo.

Hopefully we have provided you a much better understanding, and definition, of online marketing.  You can define online marketing a hundred different ways but lets keep it simple, but powerful – Follow-Share-Buy.  To receive notification of all future cheetahLink blog entries subscribe to our email subscription or RSS Feed both listed on the right.

About cheetahLink

Founded by Preston Munsch, cheetahLink is an online marketing and consulting firm that specializes in the animal health industry. The focus of cheetahLink is to increase sales, brand recognition, online visibility and website traffic through search engine optimization, website development, social media site marketing (Facebook, Twitter, LinkedIn, etc.) and other online marketing services.  CheetahLink also provides consulting services for animal health companies including product development, business development, sales/distribution plans, contract manufacturing, and other services.  Munsch has spent the past 10 years in the animal health industry specializing in product development, animal health marketing, branding, sales, distribution and advertising.  Munsch has a Masters Degree in Business Administration along with a Bachelors Degree in Communication and Associates Degree in Graphic Design.  If you have any questions regarding our services feel free to contact us at 720.244.2034 or pmunsch@cheetahlink.com.

Animal Health Marketing: Timing is Right to Launch New Products

We are now two months into 2010 but there are already concerns from industry leaders in the lack of new products.  The recession has made companies a bit ‘gun-shy’ in launching new products as they reduce their investment in R&D.  Instead we are seeing companies implement different product strategies including re-branding current products or simply increasing the price of their current products.    

Typically you will see plenty of new products at trade shows in the first quarter of each year.  Lets take a look at three major animal health shows that have already taken place this year.  As you will see, there are some new products but overall there is a growing concern in the lack of new products we are seeing in the animal health industry.

– Equine Industry – 2010 WESA Market (Denver) – I walked the floor for three days and noticed very few new products for the equine industry.  In visiting with one President/CEO he noted that he was more concerned about his current products than developing new ones.  Due to the recession, his marketing budget has been dramatically reduced so the focus in 2010 was supporting his current products.  Another very large equine company had no plans for any new products immediately.  They also were more worried about their current products so their strategy for 2010 was to re-brand their current products.  Farnam, one of the largest animal health companies in the country, only had two new products at the show, a shampoo product and a flea product. 

Overall I was very disappointed in the lack of new products at the 2010 WESA Denver Market.  Typically, you will see at least 8 to 10 new animal health products but they were clearly lacking at this show. 
   
– Cattle Industry – 2010 NCBA Convention (San Antonio) – There were some new product introductions at the NCBA but you will notice several of the products were re-launches of current products.

Pfizer presents HD 50K for Angus, a genetic selection tool that is also the first commercially available Molecular Value Predictions (MVPs) derived from a high-density panel with more than 50,000 genetic markers. The suite of 14 genomic trait predictions, including the beef industry’s first DNA-based economic index, provides MVPs for some economically important traits not available as EPDs, such as average daily gain, dry matter intake, net feed intake and tenderness, as well as many traits that complement EPDs.

Novus International, enters the U.S. beef nutrition market with several feed products with wide range of health benefits.

Merial announced a return of the Corid powder for prevention and treatment of coccidiosis and a new 15-dose bottle of Cystorelin.

Intervet/Schering-Plough Animal Health launches, Resflor Gold, the only FDA-approved combination antibiotic to treat three major bacterial bovine respiratory pathogens. Nuflor Gold®, is an antibiotic for the treatment of bovine respiratory disease (BRD) associated with four major bovine respiratory pathogens.

Boehringer Ingelheim Vetmedica, Inc., continues in their reorganization of the former Fort Dodge cattle product line, including Pyramid 5 and Cydectin.

– Companion Animal Industry – 2010 North American Veterinary Conference (Orlando) – This event took place in January and is typically the first major trade show of the year.  The following report from Brakke Consulting provides a great insight on the lack of new products seen at this show.

Like many of you, we’ve just returned from the NAVC meeting in Orlando that was held earlier this week.  We were impressed with the positive attitudes and expectations for 2010 that were expressed by many of you.
 
While there were some new product launches, we remain concerned with the limited number and size of new product introductions at the show.  Without new offerings it’s a challenge to find growth in some of the more mature product categories. While some additional growth may come from improved product compliance, the cost of obtaining this growth may be prohibitive.
 
New higher pricing seems to be one alternative being used by some companies to maintain top line growth. That is fine, as long as it does not drive the veterinarian or the pet owner to another product or source. How much is the pet owner willing to pay in a recessionary time?  We don’t have that answer on each product in all categories but we’re seeing some information that suggests that we’re starting to reach the value limits.    
 
There is Hope

Not all is lost as over the past month I have worked with two animal health companies helping them launch three new products.  One of the companies launched a new canine paste product that is focused on breeders and newborn puppies.  They hope to hit the market with this new product within the next 30 days.  The other company, a swine feed manufacturer, is putting the finishing touches together on a new piglet product that includes cutting edge technology along with a patented Lactobacillus casei strain from ProbioFerm.

It can be tempting for senior executives to cut back on innovation during a recession but this short-term savings is made at the expense of the long-term health of the company.  Although the future of the economy remains difficult to predict, an eventual upturn is assured, and companies must ensure that they maintain a strong innovation pipeline in order to capitalize on future demand.

Those companies that are prepared to innovate new products in a downturn are faced with a number of advantages.  As many companies are focused on cost-cutting, there is less competition and less noise in the market.  Assets can be acquired more cheaply, so the relative cost of developing a new product can be lower than during a boom period.  We strongly encourage those in the animal health industry to invest into new products in 2010.  With the right ideas, manufacturing relationships and ingredient acquisitions in place, a new product does not have to be a labor intensive or a costly process. 

To continue to receive the latest industry news and articles from cheetahLink either subscribe to our email subscription or RSS feed on our blog.  Both can be found on the right side of our blog.  If you have any feedback, thoughts or ideas please leave a comment or email us at info@cheetahlink.com. 

About cheetahLink

Founded by Preston Munsch, cheetahLink is an online marketing and consulting firm that specializes in the animal health industry. The focus of cheetahLink is to increase sales, brand recognition, online visibility and website traffic through search engine optimization, website development, social media site marketing (Facebook, Twitter, LinkedIn, etc.) and other online marketing services.  CheetahLink also provides consulting services for animal health companies including product development, business development, sales/distribution plans, contract manufacturing, and other services.  Munsch has spent the past 10 years in the animal health industry specializing in product development, animal health marketing, branding, sales, distribution and advertising.  Munsch has a Masters Degree in Business Administration along with a Bachelors Degree in Communication and Associates Degree in Graphic Design.

Animal Health Marketing: Online Marketing Generating Real Customers

The use of online marketing and social media channels such as blogs, LinkedIn, Twitter, Facebook and YouTube are becoming key tools in generating new leads according to a new survey.  A recent survey, 2010 State of Inbound Marketing, by HubSpot revealed some staggering results and the growth of inbound (online) marketing.

• Average cost per lead for outbound (traditional) marketing was $332.  Outbound marketing includes trade shows, direct mailers, cold calls, etc.  Average cost per lead for inbound marketing (social media sites, blogs, SEO, etc.) was $134.
• Social media sites and blogs are the most cost-effective ways to generate leads out of all marketing activities (trade shows, mailers, telemarketing, etc.).  63% of respondents estimated that these tools were “below average cost” for lead generation.
• 88% of those surveyed are either maintaining or increasing their inbound marketing budgets in 2010.
• 61% of respondents reported that they publish a company blog compared to 48% a year ago.
• 85% of respondents rated company blogs as useful or better in 2010.

The survey by HubSpot not only reveals that companies are using online marketing tools but they are seeing results (i.e. lower average cost per lead).  In the animal health industry, the use of online marketing tools (social media sites, blogs, SEO, etc.) is growing but is still lacking in other industries.  Traditional forms of marketing still dominate the landscape in our industry.  Unfortunately, traditional marketing techniques – including direct mail, print advertising and trade shows – are becoming less effective.  Buyers are not only finding ways to tune these messages out (do-not-call lists, TIVO, email spam filter, etc.), but more importantly they now have the capability to evaluate the products and services they need on their own. 

Let us know which social media tools your company currently utilizes in their marketing efforts by answering the poll below.  As more data such as the HubSpot survey becomes public knowledge, we expect online marketing to become a key element in marketing campaigns in the animal industry.  There are some companies that are expanding their marketing efforts to include social media tools (Novus International with Twitter, Facebook and LinkedIn, Hallway Feeds with Twitter, Facebook and iPhone application) but the large majority are not.  The opportunity is there for companies in our industry to leap-frog their competition using online marketing tools (social media sites, SEO, ebooks, white papers, etc).  The question is – who will make the commitment to online marketing and establish themself as a clear leader in our industry?  We will find out over the next ten months.

About cheetahLink

Founded by Preston Munsch, cheetahLink is an online marketing and consulting firm that specializes in the animal health industry. The focus of cheetahLink is to increase sales, brand recognition, online visibility and website traffic through search engine optimization, website development, social media site marketing (Facebook, Twitter, LinkedIn, etc.) and other online marketing services.  CheetahLink also provides consulting services for animal health companies including product development, business development, sales/distribution plans, contract manufacturing, and other services.  Munsch has spent the past 10 years in the animal health industry specializing in product development, animal health marketing, branding, sales, distribution and advertising.  Munsch has a Masters Degree in Business Administration along with a Bachelors Degree in Communication and Associates Degree in Graphic Design.

Animal Health Marketing: Trade Show Tips

Now that the new year is here, it is a new season for trade shows.  Over the past two months, I have attended several trade shows (Denver Market, Supply Side West in Las Vegas, etc.) and the results have been mixed at best.  During my ten years in the animal health marketing industry, I have attended nearly 100 trade shows and events.  Five years ago you would attend trade shows without hesitation and be quite successful.  In today’s economy, it isn’t that easy as you have to evaluate every penny spent.  Before making the decision to attend any trade show or event in 2010 one must evaluate it closely and plan accordingly.  The key to a successful show is what you do BEFORE the start of the show. It is imperative that you prepare for each show at least 30 days in advance. Here are a few tips in what you need to do before committing to a trade show:

NFR booth with Jolee Lautaret

– Get a list of all exhibitors – To beat your competition you need to know your competition. Make sure everyone in your booth knows everything possible of your competitors attending the show (products, pricing, distribution, differential advantages, etc.).
– B2B opportunities – By acquiring a list of exhibitors another function served is looking at possible B2B relationships you can establish. I typically accomplish more B2B deals than direct business transactions at trade shows.
– Contact key attendees – It depends on the type of show but contacting key attendees prior to the show is extremely important. Let the key attendees know where your booth is but more importantly why they MUST stop by your booth.  If this is distributor or market show, make sure you talk to the reps prior to the show.  Also, have them identify 3 to 4 of their top accounts who they will commit to bring to your booth.
– Call to action – This is particularly important. You need a reason for people to stop by your booth and make it big. The days of free shipping or 10% off doesn’t do it. You are at the show to get your product into people’s hand.
– Set goals – If you don’t set some goals prior to the show then how do you know if the show was a success? It is vital that everyone attending the show and running the booth clearly knows the goal for the show. I always have it written out and at the end of each day we review our goals and determine what percentage of each goal we have achieved.
– Know your ROI – Shows are not cheap so determine what type of revenue you need to generate to reach a breakeven point.
– End of show report – At the conclusion of the show, document the results from the show – pro’s and con’s. Record your sales, booth location, where you need your booth, etc. You can’t imagine how helpful this report will be when you are thinking about attending that same show next year.
– Follow-up – This is probably one of the most important activities but least completed by companies.  Follow-up always sounds good but rarely done.  Trade shows try to provide services (business card swipers, etc.) that make follow-up easier but it is still poorly executed.  For example, at the Supply Side West show I requested information from several companies.  As of today, only ONE company has gotten back to me and what they sent me was a standard package of information and they had my name spelled incorrectly.  I actually had to track down several companies through the trade show to get their contact information so I could follow-up with them.

These are just a few thoughts in how to have a successful trade show. If you follow this list the chances of having a successful show dramatically improve. Please provide comments in tactics you have used to experience a successful trade show.  To receive the latest blog entries from cheetahLink follow our RSS Feed or subscribe to our email service.  Both options are listed on the right side bar.

Animal Health Marketing: 2009 Animal Industry Financial Reports

Now that 2009 is in the books, animal health companies are releasing their year end financials and earnings.  Below is a snapshot of a wide range of different companies in the animal health industry with their financial results for 2009. 

• Pfizer Inc. reported financial results for the full year 2009. Animal Health revenues were $2,764 million, a decline of 2% compared to the prior year. Revenues included approximately 2 months of Fort Dodge legacy product revenues.
• MWI Veterinary Supply, Inc. announced financial results for its first fiscal quarter ended December 31, 2009. Total revenues were $236 million for the quarter, 2% higher than revenues for the same period in the prior fiscal year. Net income was $7.8 million, up 32% from net income of $5.9 million in the first fiscal quarter of 2008. 
• Animal Health International, Inc. reported its financial results for the company’s second fiscal quarter, which ended December 31, 2009. Net sales for the quarter were $171 million, compared to $185 million for the same period a year ago.  Net income was $1.2 million compared to $2.3 million in last year’s second quarter.
• Central Garden & Pet Company announced results for its first quarter ended December 26, 2009. Net sales for the Pet Products segment were $182 million, a decrease of two percent compared to $186 million in the year ago period.
• Pilgrim’s Pride Corp. reported results for its fiscal 2010 first quarter ended Dec. 27, 2009. The company reported sales that totaled $1.603 billion, down from $1.877 billion the year before. Pilgrim’s Pride reported net earnings of $33.6 million compared with a loss of ($229 million) in its fiscal 2009 first quarter.
• Lilly reported results for the full year 2009.  Sales for Elanco Animal Health increased 10% to $1.2 billion.  The increase was primarily attributable to Elanco’s acquisition of Posilac in October 2008.
• Novartis reported results for the full year 2009.  Sales for the animal health group were $1.1 billion, an increase of 4% in local currencies. 
• Virbac SA reported financial results for 2009.  Sales were EUR 467 million ($669 million), an increase of 5% compared to the prior year.  All regions have contributed to this performance.
• Vétoquinol reported results for the full year 2009.  Revenues totaled EUR 252 million ($361 million), an increase of 8% over the previous year. With exchange rates held constant, revenues increased by 10%.  The strength in sales is primarily due to acquisitions in Italy and India and by the resumption of organic growth, which held firm in the second half of 2009.
• IDEXX announced that revenues for the year ended December 31, 2009 increased 1% to $1.032 billion. Net income for the year increased 5% to $122 million. Companion Animal Group revenues for the year increased 1% to $843 million.
• Abaxis, Inc. reported financial results for the third fiscal quarter ended December 31, 2009. Veterinary Market sales were $23.9 million, an increase of 33% compared to the comparable period in the prior year.
• Colgate-Palmolive Company reported results for the full year 2009.  Hill’s Pet Nutrition recorded net sales of $2.13 billion, a decline of 1% compared to the prior year.
• PetMed Express, Inc. announced its financial results for the third fiscal quarter ended December 31, 2009. Net sales for the quarter were $48.4 million, an increase of 11% compared to the quarter ended December 31, 2008.  Net income was $5.6 million, a 14% increase compared to the comparable period in the prior year. 

A breakdown of the above 13 companies shows that eight companies, or 62%, showed a positive revenue stream in 2009 while five companies (32%) showed a decrease in revenues from 2008 to 2009.  The median was a 2% increase in revenue while the mean (average) was a 3.5% increase.  Inflation in 2009 was 2.7% so for most companies 2009 was a breakeven campaign.  In visiting with industry leaders who grew their business in 2009 they attributed the growth to either new products, price increases or international growth.  For those companies that showed a strong commitment to international growth they saw the greatest returns.  Price increases were met with mixed results but for several companies it was the only way to keep their head above water in 2009.  For those that launched new products in 2009 they reaped the benefits.  Unfortunately, new product development in 2009 and so far in 2010 has been slow.  Most companies stated the reason for the lack of new products entering the market is due to the decrease in R&D funding.

Overall, 2009 was a year of survival for most companies in the animal health industry.  To experience growth in 2010 companies will have to expand their business to include the ideas of international growth, new products and reaching customers in a more cost effective manner (i.e. online marketing).

About cheetahLink

Founded by Preston Munsch, cheetahLink is an online marketing and consulting firm that specializes in the animal health industry. The focus of cheetahLink is to increase sales, brand recognition, online visibility and website traffic through search engine optimization, website development, social media site marketing (Facebook, Twitter, LinkedIn, etc.) and other online marketing services.  CheetahLink also provides consulting services for animal health companies including product development, business development, sales/distribution plans, contract manufacturing, and other services.  Munsch has spent the past 10 years in the animal health industry specializing in product development, animal health marketing, branding, sales, distribution and advertising.  Munsch has a Masters Degree in Business Administration along with a Bachelors Degree in Communication and Associates Degree in Graphic Design.