Increasing Consumer Reach and

Sustainability Value
Jordan Campbell, Jordan Scott, Kristin Voss
DSO 554: Digital Strategies for Sustainability in Global Markets, Spring 2021
 The Team

Jordan Campbell Jordan Scott Kristin Voss

Graduate Certificate in MS, Social Entrepreneurship MBA
Sustainability and Business

Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Thank You

Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Today’s Agenda
1. Aquaculture Sustainability & BioMar

2. Preliminary Research & Analysis

3. Strategic Direction

4. Case Studies

5. Next Steps

Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
Aquaculture Sustainability &
BioMar
 Importance of Aquaculture
Seafood is one of the top globally traded food
commodities in the world with a steadily

122%
increasing demand internationally.

Aquaculture is the backbone to seafood

production globally contributing more
seafood for human consumption than wild growth in fish
caught seafood.
consumption
(1990 – 2018)

Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Growth in Aquaculture

527%
rise in global
aquaculture since 1990

Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Top Importers of
Fish and Fish
Products in Terms of
Value, 2018

Source: AO. 2020. The State of World Fisheries and Aquaculture 2020. In brief. Sustainability in action. Rome.
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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Sustainability in Aquaculture
Sustainable Aquaculture
● Reduces overfishing
● Rebuilds overfished populations
● Is a reliable food supply that has key nutrients
● Can be highly profitable, especially when there is
vertical integration in the value chain

A huge component in aquaculture value chain is ONE in FIVE seafood

fish feed. Fish need food. Sustainable aquaculture samples in the U.S. are
needs a sustainable fish feed that is high quality
mislabeled due to fraud or
and nutritious. This is where BioMar comes in.
human error.

Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 U.S. Consumers & Sustainability
Who is most responsible for the future of the environment?
0% 10% 20% 30% 40% 50% 60% 70%

Individuals/consumers

Manufacturers/production bodies

National government

Local government

Local communities

International regulatory bodies

Brands/advertising institutions

Influencers/celebrities
Note: United States; July 3 to 10, 2018; 16-64 years; 1,138 respondents, Source: GlobalWebIndex; ID 858237 via Statista

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 A History of Innovation
1960’s-1970’s
2000’S TODAY
Founded in Denmark in 1962, BioMar was
among the first in Europe to start production Launches SMARTfeed and Today, BioMar is positioned as
of pellet-style dry feed which is less polluting, the BioSustain programs. one of the leading global feed
suppliers in the aquaculture
better performing and much easier to handle.
industry.

1980’s-1990’s 2010’S
With the launch of ECOLINE, BioMar establishes BioMar launches ORBIT, a diet specially
sustainability as one of the main goals in feed developed for farming in recirculating
development in order to minimize adverse aquaculture systems. BioMar operates world's
ecological consequences of current and future first cargo ship of its type powered by
aquaculture activity and expansion. liquefied natural gas (LNG).

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Discover App:
Corporate Partnership
Bringing Transparency
to Shoppers

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Life Cycle
Assessment &
Consulting

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 IBM Food Trust:
Storing & Securing
Food System Data in
the Blockchain

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 The Question
How can BioMar expand its sphere of
sustainable influence and build trust
with more stakeholder groups?
Particularly global fish farms and U.S.
consumers.

What role can digital platforms and data

play in furthering this growth and
impact?

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
Research & Analysis
 Ecosystem
Influence is limited due to
degree of separation

Markets
Raw Materials
Partners
Processing
Restaurants
Fish
Farms Exports
Consumers

Competitors Imports

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
BioMar's Positioning

"A global leader in aquafeed" "The global leader in sustainable "Provider of food, agriculture, financial,
"#FeedingtheFuture" aquaculture feeds" etc."
"Let's Innovate aquaculture" "Helping the world"

Produces highly specialized feeds for

Produces large quantities of feed for over 85 species of fish. Produces a wide range of agricultural
over 60 species. Provides consulting services and a products and animal feeds.
digital platform for fish farms.

What the Competition does not have: a sole focus on aquaculture feed, rather than providing feed for other
types of animals. Research and a focus dedicated entirely on aquaculture has made BioMar the leader in
sustainable aquaculture feed.
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 BioMar's Positioning
More Revenue

More Sustainable
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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Competitive Environment

Vertical
Integration

Raw Material Suppliers Feed Producers Fish Farms

Upstream Downstream

• Leveraging of digital integrations to offer real-time data, target needs, increase growth, and ensure transparency
• Control over processes and quality of feed (typically 50%+ of spending)
• Opportunity to influence a larger portion of supply chain
• Ultimately, offering strong competitive advantage and potential leadership in sustainable innovation

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 BioMar VISOR Model
The VISOR Digital Business Model Framework shows how a company responds to five functional areas and shows the possible
capability and value of new business strategies. Overall showing places the business model can improve and find success.

VALUE
REVENUE/
PROPOSITION
Affordable and healthy SERVICE PLATFORM REWARDS
BioMar incorporated their As a B2B they employ
fish feed to help with
Infor M3 ERP system in the contract-based sales
the creation of healthier
cloud as Infor CloudSuite with customized highly-
fish and that
Food & Beverage. This sustainable feed being
significantly reduces the
system aims to standardize the premium price
amount of CO2 caused
and streamline business product. Their current
by farming red meat
processes globally with the revenue is $1.8 billion.
products.
INTERFACE latest digital technologies.
BioMar can be accessed
ORGANIZING MODEL
through their website. As any existing platforms
BioMar has an app called are internal, there are no
Discover that allows known core processes
consumers to be in control of used to bring forward. The
their decision-making company currently has
process when it comes to fish partnerships including
and promotes sustainability Sustainable
and transparency. BioMar has Fisheries Partnerships and
an online feeding tool for Sustainable Brands.
customers.

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Porter’s 5 Forces
This framework analyzes competition, competitive intensity, the attractiveness (or unattractiveness) of a business, and overall if there
is profitability in the business. It includes the five forces that shape competition.

Competitive Rivalry
Threat of New Entry THREAT OF - Top Competitors: (Employees, Revenue)
- Current Feed Companies could opt to purchase farms which
would further reduce the need for suppliers.
NEW ENTRY ● Skretting. 3,053. $596 Million.
● Cargill. 150,000. $114.6 Billion.
- High Barriers to Entry due to the amount of competition.
- Cargill is privately owned which allows more freedom to make changes.
- Skretting provides feed for 41 more species of fish than BioMar currently
supplies for. (60 and 19 respectively)
Supplier Power - Access to more capital allows for room for possible changes that could be
- BioMar solely deals in certified soya and detrimental to the future of BioMar.
palm products which drastically
decreases the number of places that can
potentially supply them. SUPPLIER COMPETITIVE BUYER
Despite suppliers constantly changing RIVALRY
POWER POWER
-
prices with high volatility the feed makers
still stick with their suppliers and simply
attempt to reflect the changes in prices
to its consumers. Buyer Power
- Threat of Substitution on the parts of the larger fish farms now creating
their own feed has forced BioMar to yield more to the needs of its
customers which is seen through its concept called best economic
performance which adopts feed formulas to what customers require.
Threat of Substitution
- Some of the world’s largest farmers are spending record profits on vertical THREAT - Sizeable number of supplies allows fish farms a wider variety of companies
integration into the feed business creating a global stagnant global supply OF to choose from forcing feed makers to give in more to requests in order
to maintain these consumers.
with little demand which makes it hard for suppliers to keep customers. SUBSTITUTION
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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 BioMar STaR Map
Maps the opportunities and challenges that can arise in a company as a result of changes in society, technology, and
resources. It can be critical for finding a sustainable response to a future issue.

Questions to Ask
What to Map How Change Affects BioMar?
and Assumptions to Challenge
Changes in • How do we get more people to care about what • Supplier markets • Increased demand for pink meat over red meat
Society their fish eat?
• How will global/national policy and regulation changes
•
•
Competition
Trends in aquaculture
• Increased production and profitably of aquaculture
• Societal pressure for food products that create less CO2
affect BioMar? • Policies regarding aquaculture and growing concern for climate change
• What social outcomes could come from consulting • Fish farm and consumer trends • Increased demand for sustainable farming methods
services and fish feed?
• How do we get more fish farms to buy BioMar’s fish
feed over alternatives?
Changes in • Does BioMar have the most up-to-date technology • Current technological innovations in • Increased transparency of products and services
Tech for their digital platforms?
• Is there technology that could make fish feed even •
aquaculture
Competitive differentiation
• BioMar is positioned to create more sustainable
solutions in the aquaculture industry
more green? • New fish feed production techniques • Increased technology in fish feed would mean higher
• Are there ways we can cut costs while improving • Competitor’s digital business platforms growth and survival rates of farmed fish
sustainability and quality in the production process? • Total CO2 tons saved and compare it to • Lower chances of fish with chemicals, parasites, or diseases
competitors

Changes in • What nonrenewable resources is BioMar using the most • Price stability • High CO2 from red meat production levels will result in
Resources during fish feed production? What are the alternatives
to these resources?
•
•
Supply-chain shocks
Company needs
eventual need for more sustainable food sources
• Increased workforce as more people want to work for
• Are there areas in the company that need more • Workforce trends companies like BioMar
employees or expertise? • Increased efficiency at BioMar internally and overall
company growth
• Availability of scarce resources, such as phosphorus and
wild fish stocks 23

Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Analysis Summary
As we have highlighted in our analysis there is an increasingly competitive environment and dramatically growing interest in end-to-
end sustainable practices. BioMar’s history of leadership in this space offers them a unique opportunity to capitalize on existing
expertise while building out new platforms and partnerships. These strategic moves will be critical to connect BioMar to their interest
in consumer education and expansion of high-quality sustainable aquaculture on a global scale.

Challenges Opportunities
- Market Trends: there are seasons where wild caught fish market - Vertical integration could be highly profitable
will thrive. For example, the peak fishing season for salmon is June
to August and sales for wild salmon drastically increase. - Expansion of fish farming consulting services to acquire and
retain customers
- Consumer Preferences: some consumers will prefer wild caught
fish over the fish farms that BioMar supplies - IBM Food Trust Project and Discover app: has potential to be
popular with fish buyers if it has more simplicity and made
- Competition: Global leaders, like Skretting and Cargill, also sell interactive
fish feed
- Build Brand Awareness: along with the Discover app will
- Consumer Awareness: consumers need more education about how have consumers checking if their fish was fed sustainability
sustainable fish feed affects them (preferably with BioMar feed)

- Food Safety: much like there have been recalls for meat (e.g. BSE or
mad cow disease), there could be future recalls on farmed fish due to
issues such as mercury poisoning
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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 A North Star
These are the guiding decisions and actions a company should take in order to provide itself more opportunities than it previously had. As well as
promoting innovation, challenging current strategies, and improving the business model.

Proposed North Star Goal

Vertically integrate with fish farms, increase customer
engagement with digital tools, reach more feed
customers through consulting and education
programs, and increase brand recognition in
key consumer markets by 2022.

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
Strategic Direction
 3 Strategic Growth Options
Buy Borrow Build
Vertically integrate Create joint ventures. Establish farms and grow fish
downstream. directly.
- Invest in aquaculture
- Acquisition offers a strength in - Lots of time and money
development with the potential
an established and proven firm needed to build from scratch
for equity while mitigating risk
- Creating synergies across entities - Caters to the exact needs of
can be complex - Positioning to drive innovation
downstream using external BioMar
- Potential to capitalize on existing resources - Might be too slow to truly
brand equity compete in the current market
- Benefit from data, customer
- Complete ownership of data, IP, loyalty, and greater consumer
and product influence

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 2 Stakeholder-centric Tracks
Global Fish Farmers U.S. Consumers
- End reporting (LCA) with clear recommendations - Awareness and basic education
to increase ROI
- Guidance for purchasing, ease of use
- Guidance in developing sustainable practices and
achieving certifications - Increased trust and affinity

- Shared marketing and increased product value

Benefit to BioMar Benefit to BioMar

- Critical insights via industry data to - Stir up passion, create advocates & drive
bolster competitive positioning action in individuals

- Influence and collaboration - Brand and certification awareness

for product development - Increase in shared value, “growing the pie”
- Growth of customer relationships

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 1 Integrated Approach
Digital Transformation, Education, & Outreach
- Data sharing across partnerships, leverage IoT connectivity of farms
- Expand blockchain partnership with IBM and explore other possible partnerships
- Research automation opportunities for LCA (Life Cycle Assessment), carbon footprinting reports
- Explore dashboard creation for customers, move toward real-time updating
- Formalize consulting offerings to leverage deep expertise in sustainability
- Is there a way streamline certification systems (ACS, GGN, BAP), on the consumer end? Is there a way to rank
customer sustainability on a ladder and help them achieve certification?
- Extend reach through offering Discover Seafood app & Support Your Planet sites
- Acquire or complete consumer research, including interviews, to refine UX/UI
- Consider informal education for consumers: videos, documentary, paid advertising
- Highlight simple ways to ID products, build trust, reduce confusion or misperceptions
- Awareness campaigns could increase value creation for BioMar and partners through pooling resources
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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
Case Studies
 From Exhibition
to Global Program

+
wide reach,
good recognition

-
static, lacks clarity

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Certification
Branding

+
clarity of numbering system,
on-product labelling

-
controversy,
lack of transparency

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Open Sourcing

+
industry-wide impact,
extensive recognition

-
not scalable, threat to
competitive advantage

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Ingredient
Branding

+
transformative campaign,
simple, cooperative endeavor

-
costly, pigeonholed

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
 Cooperatives &
Collective Trademarking

+
memorable, amazing job
raising awareness

-
did not translate to sales

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
Next Steps
 Project Timeline

General Defining Interim Industry Final

Initial Strategic
Research Project Presentation & Interviews & Recommendations
Direction & Report
& Analysis Scope Workshop Further Research

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Introduction Aquaculture & BioMar Research & Analysis Strategic Direction Case Studies Next Steps
Questions