Professional Documents
Culture Documents
Contents
Background & Business Context............................................................2
Company Overview..............................................................................2
Products and Services..........................................................................2
Problem Area..........................................................................................3
Deliverables...........................................................................................3
Solution..................................................................................................4
Customer Needs..................................................................................4
XYZs Core Competencies....................................................................5
Competition Analysis...........................................................................5
SWOT...................................................................................................6
Collaborators/Influencers and the Value Chain....................................6
Market Selection..................................................................................7
Why India.............................................................................................9
Marketing Mix.......................................................................................10
Positioning.........................................................................................14
Communication of Value Proposition.................................................14
HNI Engagement................................................................................16
Appendix..............................................................................................17
PAGE 1
PAGE 2
farmers can save their harvests, increase yields and reduce spoilage
and waste.
Driving innovation: Innovation in agriculture starts with the seed and
reaches all the way to the kitchen where fruits and vegetables are
expected to stay fresh for as long as possible. What goes for apples
and artichokes is equally true for cereals, cotton or canola. High yields
and top quality start with excellent seeds, tailored to local soil and
climate conditions, well equipped to compete against weeds, diseases
and pests. To increase yields and protect the soil, crop sequences and
cultivation methods need to be adapted to local conditions. The
diligent use of agrochemicals not only serves to protect plants. Wisely
used, herbicides, insecticides and fungicides also protect farmers
against crop failures and their potentially severe economic
implications. XYZ aspires to be a respected partner to farmers around
the world, contributing to healthy crops, reliable harvests and stable
returns.
Problem Area
XYZs top management has of late been worried with the companys
latest performance reports that indicate a decline in market
penetration and lower customer share-of-wallet. This was a bit of a
surprise considering that the companys product offerings & innovative
themes had found wide spread acceptance among the global grower
community. Given this scenario, the company conducted an extensive
& detailed assessment into possible root causes and looking ahead to
the future, decided to focus on a four-pillar strategy.
1. Enhance Crop Protection
Improving portfolio through focused and integrated crop solutions
Increasing flexibility and efficiency
2. Strengthen Customer Centricity
Driving commercial excellence in marketing and sales
Connecting partners in the value chain through integrated Go-toMarket practices
3. Lead the way in Innovation
Striving for first and best-in-class solutions
Exploiting expertise in Seeds, Small Molecules, Breeding and
Biologics
4. Expand Seeds Business
PAGE 3
Deliverables
Help XYZ devise a strategic marketing framework across following
dimensions:
Solution
CUSTOMER NEEDS
For Seeds
Increase Yield
Value for Money
Seasonality
Reduce waste & spoilage
Specialized products
Augmented benefits
For Crop Protection
Education
PAGE 4
Assistance
Complementary to seeds
Secure harvests
Environment Friendly
Water retention
Fertilizers
Resistance to natural calamities
Promote biodiversity
Soil Management
Land Husbandry
Increase Productivity
Environmental Sustainability
Provide information and training
Supply of healthy food by integrated agricultural solutions
Driving innovation
COMPETITION ANALYSIS
On doing a Porters five forces analysis we found:
Power of
customers low,
mainly B2B. GM
crops
controversial
Threat of
substitutes low
as Biotech
industry highly
regulated and
has highly
valued
intellectual
property.
Competitive
Rivalry High
with
multinational as
well as regional
players
Threat of
entrants
medium and
increasing as the
industry matures
and more
regulations
come
about
Power of
suppliers is
limited no. of
small chemical
manufacturers,
medical
instruments
suppliers very
high
PAGE 5
PAGE 6
SWOT
The SWOT analysis of XYZ showed
Strengths
R&D
Environment
protection
standards
Integrated
agricultural
solutions
High quality seeds
Effective plant
protection products
Weakness
Limited product
portfolio
Decline in market
penetration
Not able to cater to
local needs
Threats
Lower customer
share of wallet
Competition
VUCA environment
Protests against
genetic engineering
Opportunities
Licensing
Strengthening
positions in
vegetables, rice, etc
Extending portfolio
in wheat and soy
Biotechnology
industries like
biofuel(ethanol)
bioplastics
Retailer
Wholesaler
Distributer
PAGE 7
MARKET SELECTION
The Ansoff Matrix for XYZ showed the following prospects:
D is t r ib u t o r s
& R e t a ile r s
XYZ
XYZ
potential in
AsiaPacific,
Middle
East
and
Latin
American
revenue
R e ta ile r
s
Fa rm e r s
Im p o r te r s
&
E x p o r te r s
and
as per the
denotes
P ro c e s s o r s
End
C onsum er
s
markets.
PAGE 8
Agricultural output per capita in Africa -0.6% p.a. while that of Asia
has risen by 80% in last 45 years
Crop Protection: North America highest market share in terms of
revenue followed by Asia Pacific. North America and Europe are
mature markets with few dominant players
Diversification of food consumption: Diets in APAC and Latin
America shifted away from staples to vegetable oils, fruits etc.
owing to increase in income
Urbanization: Establishment of large supermarket chains, more
FDI, advertising from global corporations, trade liberalization, nontraditional foods becoming popular
WHY INDIA
PAGE 9
these
two
strategic
Phase 1- Asia Pacific region, choose India as the pilot market (highly
agro based economy)
Phase 2- Countries with similar economic portfolio like Brazil, China
and Mexico
PAGE 10
Marketing Mix
Products
We recommended a three strep product strategy to XYZ depending
upon their competencies and their alignment to the sub continental
market.
Innovate
Instead of focusing upon single product category, be more crop
specific. E.g. offering integrated crop solution for wheat and
wheatworm.
Synergize
Create unique solutions to grower needs with an integrated offer
based upon knowledge and understanding of agriculture.
Draw synergies between the financial, sales and management
structure to decide efforts for improvement to a crop at a global
level
Supply Chain efficiency
Excel
Product Leadership obtained through product differentiation
Beating competitors by thinking like a grower and exploiting
expertise in small molecules, seeds and biologics, etc.
Pricing
Pricing in the seed business is dependent affair, since there is high
price uncertainty due to varied crop prices.
Demand for
Agricultural
Chemicals
Demands for
Crops
Demand for
Seeds
Crop prices
PAGE 11
Seed price can be 25-100% over the commercial grain price for a
particular crop (reverse logistics)
Place
For the recommendations on channel and distribution we found that
managing channel member at each level is the biggest concern for the
seed business.
The
distributors dealers and retailers should have proper
licenses for selling products as per government regulations
PAGE 12
Product knowledge
Willingness &
Financial capability
PAGE 13
POSITIONING
We see XYZ as a brand with the flowing parameters of recall
Superior Yield
Supportive & Reliable
Sustainable
Innovative
Rewarding products
Clarity
o Bring forth XYZ advantages, accessibility etc.
o Information to be provided through Krishi Vigyan Kendras,
Kisaan Melas, Gram Panchayat , Farmer associations
o Publicity and PR
o Krishi Vigyan Kendras as a touchpoint where XYZs
solutions can be showcased via catalogues, brouchures
etc.
PAGE 14
Differentiation
o Customer centric through Farm Representatives or Kisan
Mitra who provide after sales support
o Integrated and focused crop solutions bundled together
o Retailer to compile details of customers and provide to
kisaan mitr
o Subsidized prices offered to farmers giving best yield
o A plan of action was recommended to help farmers
overcome price uncertainty as undermentioned:
Approach
farmers
Perform
fertility test of
soil
Find average
yield of the
area
Recommend
suitable seed
type
Recognize and
reward the
farmers giving
highest yield
Council
throughout
the crop
lifecycle
Bundle with
complementar
y crop
protection
product
PAGE 15
Credibility
o See to believe demonstrations, wet dry sampling etc. done
at aggregation points (e.g. milk cooperatives or grain
collection centers)
o Distribution of free samples along with mass FMCG
products like toothpastes, TATA Salt etc.
o Financial institutions like NABARD can help to provide
loans to the farmers for buying our technical products
o Provide free samples to the growers in form of dry and wet
sampling during different village events like farmers
markets, haats etc.
HNI ENGAGEMENT
In order to attract maximum High Net-worth Individuals,
recommend the following action items to be taken care of:
we
PAGE 16
Output based hybrid seeds. E.g. Seed potatoes specially bred for
potato chip producers
Extend scope for Biofuels and Bioplastics
Co-marketing for a sustainable brand image
PAGE 17
Appendix
1. XYZ - Key Financial Figures (MUSD = Million USD)
PAGE 18