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7/23/2019 GTM Strategy for Seed Manufacturer
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Mohit Lakhotia | 2014B16 |Marketing
Go to MarketStrategy for a CropProtection & Seed
7/23/2019 GTM Strategy for Seed Manufacturer
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ContentsBackground & Bu"ine"" Conte#t$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Co!pany % er ie'$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Product" and Ser ice"$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Pro()e! *rea$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
,e)i era()e"$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
So)ution$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Cu"to!er -eed"$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
./ " Core Co!petencie"$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Co!petition *na)y"i"$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
S3% $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Co))a(orator"5 n7uencer" and the 8a)ue Chain$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$6
Market Se)ection$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
3hy ndia$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Marketing Mi#$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Po"itioning$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Co!!unication of 8a)ue Propo"ition$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$14
;- <ngage!ent$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$*ppendi#$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
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Background & Business Context
C%MP*-/ %8<=8 <3./ i" an inno ation>dri en co!pany 'ith a )ong tradition in re"earchand de e)op!ent$ hey )e erage their e#perti"e to addre"" g)o(a)cha))enge" and ai! to i!pro e peop)e " )i e" around the 'or)d$ heir!i""ion i" (a"ed around the the!e of "cience for a (etter )ife and thi"i" the foundation of 'hat they "tri e to achie e 'ithin the agricu)tura)"ector$ heir contri(ution to "ociety i" (a"ed on he)ping to en"ure ana!p)e "upp)y of high>?ua)ity food@ feed@ (er and rene'a()e ra'!ateria)"$
P=%,AC S *-, S<=8 C<S
./ o er" a 'ide ariety of product !i# acro"" the area" of cropprotection@ "eed" and en iron!enta) "cience$ heir cu"to!er "o)ution"are focu"ed on "e era) key the!e" "uch a"
• Increasing productivity in a sustainable way: o a""ure "uDcientfood "upp)y for a))@ agricu)tura) producti ity need" to (e increa"ed$
argeted !ea"ure" to pro!ote (iodi er"ity@ fre?uent crop rotationand di er"ity in the acti e ingredient" u"ed to contro) di"ea"e"@ 'eed"
and pe"t" he)p a""ure that "uch gro'th i" "u"taina()e$ he o(Eecti ei" to increa"e yie)d" 'hi)e protecting the en iron!ent$ ./ " approachi" to acti e)y pro!ote infor!ation and training tai)ored to the need" of )oca) far!er"@ (oth in the 'or)d " key agricu)tura) region" a" 'e)) a" inde e)oping countrie"$ 3hi)e ghting re"i"tance i" a top priority forin"tance in "o!e countrie"@ far!er" in "o!e other" are !oreconcerned a(out the eDcient and econo!ica) u"e of fre"h 'ater inthe cu)ti ation of rice$
• Enhancing health, reducing waste: Good hea)th re?uire" proper
nutrition$ -o'aday"@ a "uDcient "upp)y of hea)thy food "hou)d (e agi en$ But 'hi)e enough food i" produced to feed !ankind@ one thirdof a)) food gro'n for hu!an con"u!ption i" 'a"ted 'hi)e !ore thant'o (i))ion peop)e are undernouri"hed$ he i""ue i" co!p)e# and ha"!any cau"e"$ ./ " "ophi"ticated and integrated agricu)tura)"o)ution" are their core co!petency$ Co!(ining high ?ua)ity "eed"@e ecti e p)ant protection@ agent" and pro en cu)ti ation !ethod"@
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far!er" can "a e their har e"t"@ increa"e yie)d" and reduce "poi)ageand 'a"te$
• Driving innovation: nno ation in agricu)ture "tart" 'ith the "eed and
reache" a)) the 'ay to the kitchen 'here fruit" and egeta()e" aree#pected to "tay fre"h for a" )ong a" po""i()e$ 3hat goe" for app)e"and artichoke" i" e?ua))y true for cerea)"@ cotton or cano)a$ ;igh yie)d"and top ?ua)ity "tart 'ith e#ce))ent "eed"@ tai)ored to )oca) "oi) andc)i!ate condition"@ 'e)) e?uipped to co!pete again"t 'eed"@ di"ea"e"and pe"t"$ o increa"e yie)d" and protect the "oi)@ crop "e?uence" andcu)ti ation !ethod" need to (e adapted to )oca) condition"$ hedi)igent u"e of agroche!ica)" not on)y "er e" to protect p)ant"$ 3i"e)yu"ed@ her(icide"@ in"ecticide" and fungicide" a)"o protect far!er"again"t crop fai)ure" and their potentia))y "e ere econo!ici!p)ication"$ ./ a"pire" to (e a re"pected partner to far!er" aroundthe 'or)d@ contri(uting to hea)thy crop"@ re)ia()e har e"t" and "ta()ereturn"$
Proble !rea./ " top !anage!ent ha" of )ate (een 'orried 'ith the co!pany ")ate"t perfor!ance report" that indicate a dec)ine in !arketpenetration and )o'er cu"to!er "hare>of>'a))et$ hi" 'a" a (it of a
"urpri"e con"idering that the co!pany " product o ering" & inno ati ethe!e" had found 'ide "pread acceptance a!ong the g)o(a) gro'erco!!unity$ Gi en thi" "cenario@ the co!pany conducted an e#ten"i e& detai)ed a""e""!ent into po""i()e root cau"e" and )ooking ahead tothe future@ decided to focu" on a four>pi))ar "trategy$
"# Enhance Crop Protection• !pro ing portfo)io through focu"ed and integrated crop "o)ution"• ncrea"ing 7e#i(i)ity and eDciency
$# %trengthen Custo er Centricity• ,ri ing co!!ercia) e#ce))ence in !arketing and "a)e"• Connecting partner" in the a)ue chain through integrated Go>to>
Market practice"# 'ead the way in Innovation
• Stri ing for r"t and (e"t>in>c)a"" "o)ution"• <#p)oiting e#perti"e in Seed"@ S!a)) Mo)ecu)e"@ Breeding and
Bio)ogic"(# Expand %eeds Business
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• Further "trengthening po"ition in egeta()e"@ rice@ oi) "eed andcotton
• <#tending portfo)io (y (ui)ding up (u"ine"" in "oy and 'heat
Deliverables;e)p ./ de i"e a "trategic !arketing fra!e'ork acro"" fo))o'ingdi!en"ion"
• )arket analysis: ,e ne cu"to!er need" e#p)ore & identifyH@a)ign co!pany capa(i)itie"@ in e"tigate co!petition and !arketdyna!ic"@ in o) e co))a(orator"5in7uencer"
• )arket selection: Cu"to!er "e)ection@ "eg!entation &
categoriIation@ target group "e)ection & co!!unication of a)uepropo"ition@ po"itioning of product !i#• )arketing ix: Focu" on core product"@ opti!iIe price@ choo"e
di"tri(ution channe)"@ ad erti"e and pro!ote@ organiIe "ee>to>(e)ie e de!on"tration" technica) product"H
• Custo er ac*uisition: Create a'arene"" on core product"@de e)op intere"t@ dri e action@ i!p)e!ent fo))o'>up touch point"
• Custo er loyalty & retention: ,e)i er re)e ant@ per"ona)iIedand on>ti!e co!!unication"@ engage cu"to!er" !ore e ecti e)y@pro ide e""entia) cu"to!er conte#t for J!o!ent">of>truthK@ incent
di erent)y to dri e (eha ior and (ui)d cu"to!er )ife ti!e a)ue
%olution
CAS %M<= -<<,S
+or %eeds
ncrea"e /ie)d 8a)ue for Money Sea"ona)ity =educe 'a"te & "poi)age Specia)iIed product" *ug!ented (ene t"
+or Crop Protection
<ducation
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Co petitive,ivalry ;igh
'ith!u)tinationa) a"'e)) a" regiona)
p)ayer"
Power o-custo ers )o'@!ain)y B2B$ GM
crop"contro&er"ia)
Power o-
suppliers i")i!ited no$ of"!a)) che!ica)
!anufacturer"@!edica)
in"tru!ent""upp)ier" &ery
high
.hreat o-entrants
!ediu! andincrea"ing a" theindu"try !ature"
and !oreregu)ation"
co!ea(out
.hreat o-substitutes )o'
a" Biotechindu"try high)yregu)ated and
ha" high)y&a)ued
inte))ectua)property$
• *""i"tance• Co!p)e!entary to "eed"• Secure har e"t"• <n iron!ent Friend)y
+or Environ ental %cience
• 3ater retention• Ferti)iIer"• =e"i"tance to natura) ca)a!itie"• Pro!ote (iodi er"ity• Soi) Manage!ent• Land ;u"(andry
./ S C%=< C%MP< <-C <S• ncrea"e Producti ity• <n iron!enta) Su"taina(i)ity• Pro ide infor!ation and training• Supp)y of hea)thy food (y integrated agricu)tura) "o)ution"• ,ri ing inno ation
C%MP< %- *-*L/S S
%n doing a Porter " e force" ana)y"i" 'e found
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%trengths= & ,<n iron!entprotection"tandard"6ntegratedagricu)tura)"o)ution";igh ?ua)ity "eed"< ecti e p)antprotection product"
/eaknessLi!ited productportfo)io,ec)ine in !arketpenetration-ot a()e to cater to)oca) need"
.hreatsLo'er cu"to!er"hare of 'a))etCo!petition8AC* en iron!entProte"t" again"tgenetic engineering
0pportunitiesLicen"ingStrengtheningpo"ition" in
egeta()e"@ rice@ etc
<#tending portfo)ioin 'heat and "oyBiotechno)ogyindu"trie" )ike(iofue)Gethano)H(iop)a"tic"
S3%
he S3% ana)y"i" of ./ "ho'ed
C%LL*B%=* %=S5 -FLA<-C<=S *-, ;< 8*LA< C;* -
8a)ue chain !e!(er" for the (u"ine"" inc)ude• =etai)er• 3ho)e"a)er• ,i"tri(uter
Co))a(orator" and n7uencer" are
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C h e ! i c a )M a n u f a c t u r e r" & M a c h i n e
"upp) ie r"
. /
, i " t r i (u to r"& =e ta i )e r"
! p o r t e r "&
< # p o r t e r "
F a r ! e r "
P r o c e " " o r "
=e ta i )e r"
< n dC o n " u ! e r
"
• =ura) in"titution" )ike Gra! Panchayat"• *gricu)ture a""ociation" )ike C*=@ *)) ndia %rganic Far!er"
Society• Corporate )ike ;AL@ C• Media )ike =adio• 3ord %f Mouth a!ong far!er co!!unity
M*= < S<L<C %-
he *n"o Matri# for ./ "ho'ed the fo))o'ing pro"pect"
he o era)) "p)it of re enue and!arket potentia) a" per thegi en data denote"
potentia) in*"ia>Paci c@Midd)e <a"tand Latin*!erican !arket"$
• -orth *!erica and <urope ha e a negati e C*G= indicating!aturity$ he other t'o region" are potentia) !arket"
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• *gricu)tura) output per capita in *frica >0$6O p$a$ 'hi)e that of *"iaha" ri"en (y N0O in )a"t 4 year"
• Crop Protection: -orth *!erica highe"t !arket "hare in ter!" of re enue fo))o'ed (y *"ia Paci c$ -orth *!erica and <urope are!ature !arket" 'ith fe' do!inant p)ayer"
• Diversi1cation o- -ood consu ption: ,iet" in *P*C and Latin*!erica "hifted a'ay fro! "tap)e" to egeta()e oi)"@ fruit" etc$o'ing to increa"e in inco!e
• 2rbani3ation: <"ta()i"h!ent of )arge "uper!arket chain"@ !oreF, @ ad erti"ing fro! g)o(a) corporation"@ trade )i(era)iIation@ non>traditiona) food" (eco!ing popu)ar
3;/ -, *
• Per capita con"u!ption of agroche!ica)" in ndia ha" a potentia) togro'
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• Con"u!ption of her(icide" i" )o' (ecau"e it i" )a(or inten"i ecountry$ he trend i" no' changing
• ,o!e"tic crop protection !arket gro'th potentia) i" ery high
• =educing ara()e )and a ai)a(i)ity per capita )ead" to need forincrea"ed yie)d per hectare
%n the (a"i" of afore!entioned rea"on"@ the"e t'o "trategicgeographie" ha e (een reco!!ended
Phase "4 *"ia Paci c region@ choo"e ndia a" the pi)ot !arket high)yagro (a"ed econo!yH
Phase $4 Countrie" 'ith "i!i)ar econo!ic portfo)io )ike BraIi)@ Chinaand Me#ico
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,e!and for*gricu)tura)Che!ica)"
,e!and" forCrop"
,e!and forSeed" Crop prices
)arketing )ix
Products
3e reco!!ended a three "trep product "trategy to ./ dependingupon their co!petencie" and their a)ign!ent to the "u( continenta)!arket$
• Innovate
n"tead of focu"ing upon "ing)e product category@ (e !ore crop"peci c$ <$g$ o ering integrated crop "o)ution for 'heat and'heat'or!$
• %ynergi3e
Create uni?ue "o)ution" to gro'er need" 'ith an integrated o er(a"ed upon kno')edge and under"tanding of agricu)ture$
,ra' "ynergie" (et'een the nancia)@ "a)e" and !anage!ent"tructure to decide e ort" for i!pro e!ent to a crop at a g)o(a))e e)
Supp)y Chain eDciency
• Excel
Product Leader"hip o(tained through product di erentiation
Beating co!petitor" (y thinking )ike a gro'er and e#p)oitinge#perti"e in "!a)) !o)ecu)e"@ "eed" and (io)ogic"@ etc$
he o era)) reco!!endation 'a" to !o e fro! a product (a"ed"trategy to a crop (a"ed "trategy
Pricing
Pricing in the "eed (u"ine"" i" dependent a air@ "ince there i" highprice uncertainty due to aried crop price"$
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%ur reco!!endation" pri!ari)y focu" on co"t opti!iIation rather thanprice "ett)e!ent
• ntegrated crop "o)ution can (e "o)d at a price greater than "o!e
of it" co!ponent"• Since they increa"e gro'er " yie)d "u("tantia))y they 'i)) (e "o)d
at a pre!iu! price
• =eduction in !anpo'er@ co!petitor" 'ith thrice the re enue areoperating on )e"" than ha)f of ./ " !anpo'er
• Seed price can (e 2 >100O o er the co!!ercia) grain price for aparticu)ar crop 5reverse logistics6
• Price Pressures > ,ue to the nature of the c)iente)e@ pricing i"ery !arket dri en and there can on)y (e )i!ited a)teration"go ern!ent regu)ation"H$ herefore@ -ocus should be ore on
reducing costs
• ,i erentia) (randing to ary price" a" per de!and arietyH
• Pre>"e))ing of "eed" (efore har e"tingH at )o'er price" to en"ure"a)e"
• JSon" of "oi)K to (e hired for 7isaan )itr
Place
For the reco!!endation" on channe) and di"tri(ution 'e found that!anaging channe) !e!(er at each )e e) i" the (igge"t concern for the"eed (u"ine""$
• Channe) !e!(er" are !anaged (y territory in>charge
• he di"tri(utor" dea)er" and retai)er" "hou)d ha e proper)icen"e" for "e))ing product" a" per go ern!ent regu)ation"
• Stock on)y ite!" for 'hich the co!pany ha" gi en the!per!i""ion to "tock
• Cooperation a!ong channe) !e!(er" in "a!e territory
• aking feed(ack fro! !e!(er" and addre""ing grie ance"
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• C)ear (oundarie" for authority and operation
hree i!portant a"pect" that are con"idered (y any channe) partnerare
• Product kno')edge• 3i))ingne"" &• Financia) capa(i)ity
%ther reco!!endation" !ade 'ere a" under
• ./ can license "eed treat!ent techno)ogie" to "!a)) "eedproducer"@ thu" reducing co!petition@ generating i!!ediatere enue and )ong ter! partner"hip"
• Catalogues or Brochure" can (e pro ided to gi e infor!ationa(out the 'ide range of product portfo)io a ai)a()e
• Packaging 4 Look and fee) of the packaging can (e !adeattracti e
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• Better %torage > )ong ter! and "hort ter! to pre ent "poi)ageand 'a"te
• everse 'ogistics 4 he gro'er" can "e)) (ack their "eed" tothe "a!e 'ho)e"a)er@ 'hich 'i)) co!e (ack to u" for treat!entand conditioning$ hi" rotation of !oney create" "ynergy(et'een the 'ho)e"a)er" and the gro'er"@ further increa"ing)oya)ty of (oth the channe) !e!(er"
• Connecting with the retailers 4 Kisaan Mitra co))ect theinfor!ation a(out the far!er" fro! the retai)er" "o that they canpro ide after "a)e" "upport to the far!er"$ he retai)er" 'i)) inturn get 'ord of !outh pu()icity and can a)"o (e o ered "o!eincenti e" (a"ed on the a!ount of data they pro ide
P%S %- -G
3e "ee ./ a" a (rand 'ith the 7o'ing para!eter" of reca))
• Superior /ie)d• Supporti e & =e)ia()e• Su"taina()e• nno ati e•
=e'arding product" hu" po"itioning it a" Trustworthy Wealth Creator
C%MMA- C* %- %F 8*LA< P=%P%S %-
3e reco!!end a CDC !ode) for co!!unicating the (rand " a)uepropo"ition
Clarityo Bring forth ./ ad antage"@ acce""i(i)ity etc$o nfor!ation to (e pro ided through ri"hi 8igyan endra"@
i"aan Me)a"@ Gra! Panchayat @ Far!er a""ociation"o Pu()icity and P=o ri"hi 8igyan endra" a" a touchpoint 'here ./ "
"o)ution" can (e "ho'ca"ed ia cata)ogue"@ (rouchure"etc$
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*pproachfar!er"
Perfor!ferti)ity te"t of
"oi)
Find a&erageyie)d of the
area
=eco!!end"uita()e "eed
type
Bund)e 'ithco!p)e!entar
y cropprotection
product
Counci)throughout
the crop)ifecyc)e
=ecogniIe andre'ard the
far!er" gi&inghighe"t yie)d
o i"aan Me)a"@ ;aat" or gra! panchayat" can (e u"ed toincrea"e i"i(i)ity a(out ad antage" of our product"
o *gricu)tura) in"titution" )ike C*= and *%FC can act a" ap)atfor! for training the gro'er" a(out techni?ue" )ike pe"tidenti cation etc$
o Pu()icity through radio ad" and Eing)e"@ pa!ph)et" inne'"paper" etc$ to "pread a'arene"" a(out high yie)dingingredient"
• Di8erentiation o Cu"to!er centric through Far! =epre"entati e" or i"an
Mitra 'ho pro ide after "a)e" "upporto ntegrated and focu"ed crop "o)ution" (und)ed togethero =etai)er to co!pi)e detai)" of cu"to!er" and pro ide to
J kisaan mitr Ko Su("idiIed price" o ered to far!er" gi ing (e"t yie)do * p)an of action 'a" reco!!ended to he)p far!er"
o erco!e price uncertainty a" under!entioned
o 3e a)"o reco!!end to !aintain a far!er "corecard forkeeping a track of con"u!er (eha ior and increa"edcu"to!er engage!ent
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• Credibilityo See to (e)ie e de!on"tration"@ 'et dry "a!p)ing etc$ done
at aggregation point" e$g$ !i)k cooperati e" or grainco))ection center"H
o ,i"tri(ution of free "a!p)e" a)ong 'ith !a"" FMCGproduct" )ike toothpa"te"@ * * Sa)t etc$
o Financia) in"titution" )ike -*B*=, can he)p to pro ide)oan" to the far!er" for (uying our technica) product"
o Pro ide free "a!p)e" to the gro'er" in for! of dry and 'et"a!p)ing during di erent i))age e ent" )ike far!er"!arket"@ haat" etc$
;- <-G*G<M<-
n order to attract !a#i!u! ;igh -et>'orth ndi idua)"@ 'ereco!!end the fo))o'ing action ite!" to (e taken care of
•
Far!er" in de e)oped countrie" are !ore educated andconnected to "ocia) !edia• ,edicated Support *pp for F*Q• Per"ona)iIed "o)ution" for ;-• Po"ition a" "trategic Partner" rather than "o)ution pro ider"• Creating a pro"pecti e pipe)ine 'ith co!panie" 'hich go for
corporate far!ing
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• <#tend "cope for Biofue)" and Biop)a"tic"• Co>!arketing for a J"u"taina()e (randK i!age
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7/23/2019 GTM Strategy for Seed Manufacturer
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!ppendix
1$ ./ > ey Financia) Figure" MAS, R Mi))ion AS,H
2$ ./ Sa)e" (y =egion
+$ ./ Sa)e" (y Bu"ine"" Group
4$ ./ <!p)oyee" (y =egion and Function
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