2018 NATIONAL AGRI-MARKETING STUDENT COMPETITION

TEXAS A&M UNIVERSITY EXECUTIVE SUMMARY

™
DEFEND THE RUMEN. PROTECT THE BALE.

PRODUCED BY: TexAg Marketing

 Introduction
Faced with narrow margins, cattle producers are constantly searching for uncharted areas to capture added economic value. 1 Over the past
10 years, 5.8 percent of cattle producers have exited the market due to their inability to keep operations financially feasible.2,3 This has left
the remaining producers responsible for a greater share of the cattle market, forcing them to pursue new methods to achieve operational
efficiency while seeking off-farm income sources.4 For these producers, there are many factors that impact the success of the operation, for
example, the loss of a single head of cattle can have a detrimental impact on profitability. 5
After witnessing cattle loss in his own herd from consuming hay baling materials, Texas A&M University alumnus and animal scientist, Dr.
John Rudder, began researching a way to prevent this problem. He discovered the value of using seaweed as a rumen-digestible material.
When mixed with a combination of corn zein and tree biomass, seaweed can be converted into a composite used to create a rumen-
digestible hay wrap.6 Using the natural characteristics of this formula, the wrap will be able to withstand weather variability. Located in close
proximity to the Texas Gulf Coast, Dr. Rudder found the cost effective process of procuring beach stranded seaweed, which has appeared
in unprecedented amounts in recent years causing sharp declines in tourism. 7 With hopes of launching this revolutionary product into the
cattle industry, Dr. Rudder partnered with investor Edwin Kyle to establish Inshore Innovations. Inshore Innovations markets their rumen-
digestible hay wrap as the time-saving solution to reducing cattle loss. This product will provide cattle producers a means to Defend the
Rumen and Protect the Bale.
Market analysis
Market Trends Customer Profile
In the United States, the majority of agricultural Cutting-edge Cattlemen™
producers’ primary income comes from an off-farm 96%
source. In Texas alone, less than four percent of cattle Dual - Male cattle producers, age 45-65 9,17,18
producers make their sole living from ranching Income
enterprises. 8,9 - Live in South Central hay
corridor18
The United States Department of Agriculture (USDA) - Majority depend on off-farm
projections for 2018 indicate that U.S. per capita beef 3% income19
consumption is expected to increase by over 3 Demand
percent, showing a growing demand for U.S. beef. 12 - Constantly networking to
improve operations
- Quick to adopt new
U.S. beef exports increased from 2016 to 2017 by 7
percent, a growth of 22 percent over the 10 year
22% technology and
average of 2.3 billion pounds.12,13 Exports management practices20
- Keen risk managers and
decision makers21
The total U.S. beef cattle herd size as of January 2018 328,000 - Uphold traditions while adapting to new innovations
is 94.4 million head.10 Each year the average total
Cattle
cattle loss is 3.9 million head with 328 thousand
resulting from digestive issues.11 Deaths Market Segments & Size
Direct
Cattlemen who manage mid to large size cattle
In 2017, hay production in the United States totaled
131.5 operations, produce hay for their own use, and are
Million Tons directly in charge of purchasing hay baling materials.
131.5 million tons.16
of Hay
Indirect
Cattlemen who manage smaller sized cattle
operations and do not own the equipment needed to
Round baled hay is the main source of cattle feed,
21% bale hay, thus turn to custom hay balers to meet their
accounting for over 21 percent of total input cost. 14,15 Input specifications.
Cost Producer Statistics
Sources 22,23,24,25,26 129,197
On average, cattle are fed 180 days during the
3 Direct Market
Tons of Hay Indirect Market
winter or drought months, consuming approximately Consumed 88,600
three tons of hay per head.15 per Head
56,405
TexAg Marketing primary research indicates 51
percent of targeted cattle producers find “time
51% 24,843
efficiency” to be the most important aspect when
Value Time
5,871 11,825
deciding between new hay baling materials. Efficiency
Year 1 Year 2 Year 3
Market Analysis Continued...
Market Potential Competitive Analysis
A primary survey conducted by TexAg Marketing in 2018
shows that 97% of Cutting-edge Cattlemen have
97% interest in trying a rumen-digestible hay wrap. The
demand for hay and hay baling material is
of 128 derived from the demand for beef. The United
Cutting-edge States Department of Agriculture predicts
stable growth of beef demand over the next five
Cattlemen years with exports and domestic per capita
surveyed consumption both predicted to increase by over
two percent, showcasing bullish outlooks of the
expressed demand for hay and hay baling materials. Also, 27

interest the U.S. macroeconomic environment indicates hay

baling materials will have a long-term sustained
demand.27

Need for Product

Continuously searching for alternative methods to increase
productivity, Cutting-edge Cattlemen are looking for ways to
maximize time efficiency while increasing margins. Also, this
product offers a solution to remedy the cattle deaths caused
by the consumption of traditional hay baling materials.
There are four different types of hay baling materials on the
Inshore Innovations is able to fill the void in the market for a
market today: sisal twine, plastic twine, plastic wrap, and net
safe, time-efficient alternative to traditional hay baling
wrap. Each of these are sold in individual rolls and provide
materials.
different benefits to producers. While each wrap has their

Overall Benefit to Producer
The Cutting-edge Cattlemen are able to improve the efficiency of
their operations by eliminating the time previously spent
removing traditional hay baling materials from the bale along with
the secondary benefit of reduction in cattle loss. Inshore
Innovations’ rumen-digestible hay wrap will optimize Cutting-
edge Cattlemen’s operational efficiency while saving them an
average of 92 dollars per roll.
individual strength, none of them are digestible by the rumen.
Inshore Innovations has produced the first rumen-digestible
hay wrap on the market, safe for cattle to consume while
saving producers time. Inshore Innovations’ product provides
Cutting-edge Cattlemen a way to better utilize their time by
taking away the cost of removing and disposing traditional
baling materials while decreasing deaths in their herds.

Strengths Opportunities
 First mover advantage  Demand for safe and
 Strategically located efficient products
 First rumen digestible hay  Online and in-store
wrap availability
 Utilizes excess seaweed  Near distribution
for sustainable solution channels

Weaknesses
 High input costs
associated with product
 Unestablished distribution
network
SWOT
Analysis Threats
 Environmental variability
impacting hay production
 New entry of competitive
firms
 Low awareness about new
hay baling technology
 Business Proposition
Key Planning Assumptions
 Inshore Innovations is the first company to
produce and patent a rumen-digestible
hay wrap
 Product compatible with multiple hay baler
machines
 Steady supply of seaweed, corn zein, and
tree biomass
 Contract with the Texas General Land
Office to procure seaweed
 Product successfully tested through
multiple university backed research trials
 Inshore Innovations owns production
machinery
 Approved by United States Department of
Agriculture for cattle consumption under
current regulations
Goal
Inshore Innovations will transform the
production livestock industry through its
revolutionary product by increasing time
efficiency and herd stability by providing
an affordable alternative to traditional
hay baling materials.
Strategy Statement
EdiBind, Inshore Innovations’ rumen-
digestible hay wrap will provide Cutting
-edge Cattlemen a tool to maximize
time efficiency and reduce cattle loss,
thereby increasing producer income
and productivity .
Objectives
Societal
By the end of year three, Inshore
Innovations will utilize 475 tons of seaweed.
Marketing
Year 1: Return on marketing investment
will have an average of 4:1 ratio
Year 2: 20 percent of returning customers
will participate in Inshore
Innovations’ referral program.
Year 3: Obtain four percent of the hay
baling market share within targeted
region.
Financial
By the end of year three, Inshore
Innovations will have a profit margin of 21
percent or greater.

Action plan
Product & Positioning
EdiBind is the first rumen-digestible hay wrap, designed to Defend the Rumen and Protect the Bale. Using only
three main components, (seaweed, corn zein and tree biomass) the rumen-digestible hay wrap has flexibility and
strength to maintain the integrity of the bale for up to five years.33,34 Lined with anhydrous ammonia, EdiBind will be
able to withstand weather variability as well as prevent the growth of mold and mildew. EdiBind is packaged on a
variety of roll sizes to fit multiple baling machines.
EdiBind is differentiated as the first rumen-digestible hay wrap, that will reduce the number of digestive
related cattle loss while improving producer time efficiency. EdiBind will be the Cutting-edge Cattlemen’s safe
and efficient solution to traditional hay baling materials.

Price
Edibind will be available to the Cutting-edge Cattlemen in three standard
width options to fit multiple baler sizes with each width having two length
options. The suggested retail price of EdiBind will allow on average a 50
percent markup for agricultural input suppliers.

Place
EdiBind will be available at agricultural input supply stores and online through
Inshore Innovations’ website. Located in the heart of Texas hay production,
Schulenburg gives access to major shipping channels allowing for easy
expansion throughout Texas and neighboring top cattle and hay producing
(Schulenburg, TX) states. In year one, EdiBind will be introduced into the Central and Northeast
Texas hay corridor reaching 65 agricultural input supply stores, including
Gebos, Tractor Supply Company, cooperatives, and local agricultural
suppliers.35,36 Expanding into year two, EdiBind’s market horizon will increase
to 135 outlets. By year three, the total placement will include 215 input supply
stores.37,38,39

Supply Chain
Action Plan Continued...
Promotions
Bind Us Together Campaign
The “Bind Us Together” campaign will introduce EdiBind into the hay wrap market. This
campaign will lay the foundation for lasting relationships between the Cutting-edge
Cattlemen and Inshore Innovations. The “Bind Us Together” campaign will generate
demand, build rapport, and educate Cutting-edge Cattlemen on the benefits of EdiBind.
Marketing Manager
The Marketing Manager is responsible for ensuring Inshore Innovations’ product resonates
Expositions
with current and potential customers while making sure that all aspects of the branding
Expansion
strategy align with the company’s goals. The Marketing Manager will also maintain the
strategic overview of the business and future market opportunities.40
Edu-Marketing Year 1 Year 2Year 2 Year 1 Year 3
State Fair of Texas San Antonio Livestock American Royal
Expositions Exposition
Inshore Innovations will build lasting  Fort Worth Stock Show and Kansas Classic
Rodeo Houston Livestock Show and
connections with Cutting-edge Kansas Livestock Association
Cattlemen through engagement at Rodeo
Texas A&M Beef Cattle Short Trade Show
trade shows, livestock shows, Course Oklahoma Cattlemen's
Nebraska State Fair
rodeos, and other expositions. Booth Association Trade Show
Independent Cattlemen’s Missouri Livestock
visitors will be offered an online Oklahoma Youth Exposition
Association Trade Show Symposium
coupon code to encourage new
clients to purchase EdiBind. TSCRA Convention NCBA Trade Show
Year 1 and 2 expositions
Vendor Trade Shows Year 1 expositions
Affiliations
Inshore Innovations will Texas and Southwestern Cattle Texas A&M AgriLife Extension Service
align with associations Raisers Association (TSCRA)
to educate producers With the success of testing EdiBind, AgriLife
American Angus Association
about the benefits of Extension Agents can inform local producers about
National Cattlemen’s Beef the key benefits of using a rumen-digestible hay
using EdiBind through
conferences and events. Association (NCBA) wrap through articles, reviews, and at expositions.

Public Relations Direct Marketing

Bind Together Relief Fund Crisis Management International Coastal Cleanup
Inshore Innovations will
donate 5 percent of annual
profit to aid Cutting-edge
Cattlemen affected by
disasters in marketed regions.
Digital Marketing
Website
Inshore Innovations’ website will
serve as the Cutting-edge
Cattlemen’s resource of
information regarding EdiBind.
The user friendly interface will be
accessible on mobile devices,
tablets, and desktop computers.
The website will contain
information about the product,
product benefits, retail store
locations, and online store.
Brand
Inshore Innovations Inshore Innovations’ employees will Ambassador
has developed a participate in the Ocean
The EdiBind Brand
contingency plan in the Conservatory’s International Coastal
Ambassador will
case of disruptive or Cleanup where every year, over
make in-person sales
unexpected events. 500,000 volunteers come together to
calls, manage the
collect the trash littering the coastline.
sales team, and visit
with Cutting-edge
Cattlemen to show
Pay-per-Click Social Media
EdiBind’s benefits.
Inshore Innovations will utilize Through the creation of
a YouTube Channel and
Pay-per-Click advertising to Referral Program
Facebook page, Inshore
generate instant, top of the page
Innovations will post Inshore Innovations’ referral program
search results for EdiBind.
videos of production will serve as an incentive for the
Search Engine Optimization processes, application, Cutting-edge Cattlemen to share their
and benefits of EdiBind EdiBind testimony. When Cutting-
Inshore Innovations will build-in
online to generate buzz edge Cattlemen refer a new producer
key words and phrases into
with Cutting-edge to EdiBind, they will receive an email
Search Engine Optimizations to
Cattlemen.41 with a discount code for 15 percent off
prioritize EdiBind at the top of
their next purchase.
web searches.

Traditional Marketing
Radio Advertisements
Inshore Innovations will utilize radio
advertisements through Down on the Farm
Radio of Texas, the Rural Radio Network
of Nebraska, and Rural Radio on SiriusXM
to reach Cutting-edge Cattlemen.
In-Store Promotions
Inshore Innovations will place
banners and signs in various input
supply stores to raise awareness
of EdiBind to Cutting-edge
Cattlemen.
Print Advertisements
Inshore Innovations will publish advertisements in
Hay and Forage Grower, BEEF Magazine and
Progressive Farmer to inform the Cutting-
edge Cattlemen of the benefits of utilizing
EdiBind within their operations.
 Financial Evaluation
The launching of EdiBind shows the profitability opportunities for Inshore
Innovations with a profit margin movement from a negative 33 percent in
year one to a positive 21 percent by year three. Utilizing the excess
seaweed along the Texas coast, Inshore Innovations is able to reduce
input cost by obtaining seaweed at a low cost of 35 cents per pound. To
jumpstart sales, EdiBind will allocate 58 percent of total expenses in year
one for marketing in order to gain exposure with Cutting-edge Cattlemen.
Inshore Innovations will receive 80 percent of its revenue from selling
EdiBind to agricultural input supply stores at wholesale value. The
remaining 20 percent of sales will be through the Inshore Innovation
website direct to Cutting-edge Cattlemen at retail price.

Financial Benefit to Producers

The financial benefit of Edibind to producers is derived from two separate
factors: time efficiency and cattle loss reduction. The time efficiency
savings equates to $27, this is calculated by multiplying the average
ranch employee wage rate of $11.60 per hour by the 140 minutes saved
per roll. The savings from cattle loss reduction is approximately $65. This
is found by calculating how many rolls of EdiBind needed to save 1 head
of cattle. The additional cost of these 13 rolls of EdiBind from its leading
competitor, net wrap, is then subtracted from the USDA’s average death
loss cost. The $849 total is then divided by the 13 rolls to equal $65 per
roll of EdiBind. Combining these two saving factors, the total financial
benefit to producer equates $92 per roll.
Monitoring & Measurement
Measuring Return on Marketing Investments
Unique Event Coupons: Promotional coupons with a unique
tracking code will be offered at each exposition.
Facebook Ad Manager: Monitors total outreach and customer
interactions on Facebook page.
Google Analytics: Tracks and reports website traffic to gain a
better understanding of customer experience.
Google Adwords: Monitors number of people who discover
Inshore Innovation’s website through Google searches.
QR Code: A dynamic Quick Response code will be printed on
each magazine ad to learn more about EdiBind.
Communication to Stakeholders
On-Air Referral Code: Radio Advertisements will release a 10
Internal
percent off code to use directly on website.
 Updated monthly memos containing highlights of top
Manufacturer’s Coupons: 10 percent off manufacturer's performing marketing investment.
coupon will be located on in-store displays. Investors
Member Discount Codes: A discount code will be provided to  Will receive quarterly financial reports that include the
affiliated organizations for their members’ use. return on marketing investment.
Cutting-edge Cattlemen
 Social media posts announcing total number of
attendees to expositions.
 Personalized emails containing monthly newsletters
with upcoming events.
Intro Works Cited
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