Winter - Classical Mileend Alpacas

Marketing Alpacas on TV
ALPACAS AND THE INTERNET
Prior to 1996, all alpaca marketing
was done in print or on television.
The internet has changed the way
we sell our alpacas. In 1997, 58.63%
of American alpaca breeders used
the internet, in 2000, 92.69% used
it. In 2000, only 12.06% of all alpaca
breeders had a website. Today 39%
have a website.
An AOBA marketing survey
determined that 32% of all US buyers
have purchased alpacas, sight unseen,
over the internet. The following data is
from the Year 2000, AOBA Marketing
Committee report and should be
considered by everyone when they
develop their marketing plans.
‘The major decision maker for
alpaca purchases is female. 42.58%
of purchase decisions are made solely
by women, another 40.98% are made
jointly by both husband and wife
(which is to say the woman makes the
decision), and fi nally 12.32% are made
by men.
The average age of the decision
maker is 31–40 (22.94%), 41–50
(32.62%), and 51-60 (30.11%). The
average age of an alpaca owner is 46.2
years…’
Internet purchases for all categories
of goods are primarily made by women.
54 Alpaca World Magazine Winter 2004/05
The single most important fact about
the internet and alpacas: 95% of new
buyers do their alpaca research on
the internet. Today, the bottom line of
alpaca marketing is: No Internet, No
Sales. (It is also interesting to note that
the average income of alpaca buyers in
the United States is $65,000. This runs
contrary to many people’s perception
that the U.S. alpaca market is made up
of wealthy people.)
These statistics explain the genius
of Jerry Forstner’s innovation, I Love
Alpacas.com. He married the power of
alpacas on television to the technology
of the internet. This strategy has
become the backbone of AOBA’s
marketing program.
WHAT’S GOING ON HERE?
Ray Paulek, Editor of Blood-Horse
Magazine, asked, What’s Going on
Here? He was analysing the success of
AOBA’s marketing program. Here is part
of what he had to say in his article:
‘You can’t race or bet on an alpaca.
But you can breed, raise, and own
them, and as the Alpaca Owners and
Breeders Association (AOBA) has
proven, you can market them. More
specifi cally, you can promote the idea
of breeding, raising, and owning these
fl eece-producing creatures.
AOBA has grown to 1000 members,
and there were 8000 alpacas on fi le
with the breed’s offi cial registry. Since
1996, the growth of the industry has
accelerated. Currently, AOBA has more
than 2500 members [2889 members in
2002] and the alpaca population totals
33,000. The herd is increasing by 22%
annually.
People in the thoroughbred industry
who insist anything less than $50
million for national marketing is merely
a drop in the bucket will scoff at the
suggestion that AOBA can have any
impact on a small annual budget.
Well, guess what? For about
$800,000 a year, the alpaca industry
has a daily presence on cable television
– yes, daily – and is regularly promoted
in magazines like Martha Stewart
Living and Country Living.
Using a tight-fi sted media buyer that,
as Hobert said, ‘never buys retail,’ the
alpaca industry is promoted on several
cable packages. All are purchased
through DirectTV or the Dish Network.
The ads promote alpaca breeding as a
fun family activity, but also as a serious
investment.
The fi rst media package shows AOBA
or I Love Alpaca ads on CNN, CNBC, and
MSNBC. I’ve seen the ads numerous
times during the Imus in the Morning
show on MSNBC or The News with Brian
Williams during evening prime time. A
second targets women on the Oxygen
and Lifestyle channels, and a third
showcases alpacas on Animal Planet,
Discovery, and The Learning Channel.
The National Thoroughbred Racing
Association and Thoroughbred Owners
and Breeders Association are looking
for ways to promote thoroughbred
ownership. Perhaps they can learn from
the modest, but fast-growing alpaca
industry.’
AOBA MARKETING 2004
AOBA spends more than $1 million
per year on alpaca marketing. I Love
Alpacas adds another $500,000.
Alpacas are seen on television, in
magazines, and over the internet. No
promotional stone goes unturned.
Today (2004) AOBA raises and spends
more than $3,500,000 million dollars a
year to operate the breed association
and support the alpaca community:
The 1986 AOBA budget: $3,179.00. The
association’s membership has grown
at an annual compound rate of 30%
beginning in 1986, when there were
38 members, until today when AOBA
membership totals 4,188. The good
ship, USS Alpacas, is sailing in smooth
water, under blue skies.