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Institutional Sales
Farm Equipment Sector
Rahul Nandkeolyar
Mumbai Tuesday
, February 20, 2007
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Institutional Sales
The traditional approach hasbeen to focus on retail sale to a
single segment -- The Farmers,thro the Dealer Network, with
marginal emphasis on directsale to other possible segments.
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Agricultural
Applications.
Orchards &Tea Gardens.
Construction& Infrastructure
Industry
Mining Industry
Defence Units &Servicemen(J J S J K)
GovernmentDepartments
Contractors
Govt. & Private
Agros & Apex Bodies
Institutional Sales
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Institutional Sales
To facilitate this transformationuniformly throughout the
Organization, a centralizeddepartment, which has its owninherent benefits, has been created at
Marketing H. O.
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Institutional Market Segments
Public Sector Undertakings
Railways & Port trustsCoal Fields & Mines
Thermal Plants
State Agro's
State Farms & Co-operatives
State Development Boards.
Gram PanchayatsMunicipal Boards
Central Development Boards
Government BodiesPublic Sector Undertaking
Government Undertaking
Para military forces
CRPF/BSFITBP /Assam Rifles
Air force Squadrons/ Naval Commands
Army Regimental Centres
Military Farms
Ordinance Factories
JJSJKCSD
Defence Institutions
Defence Services
Heavy Engineering Companies
Courier CompaniesC&F & Stevedoring Agencies
Tender Business
Tea Gardens
Sugar Plantations
Corporate &
Large Firms
AirlinesConstruction Industries
Road & Infrastructure DevelopmentCompanies
Private Sector OrganizationsAgricultural Colleges
N G O 'sCorporate Bodies
Institutional Sales Customers
All customers other than the Agri Sector serviced through our dealer network
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Institutional Sales.
Untapped Market Potential
Delta sales leading to growth in volumes
and market share
Volume and market share targetachievement for Dealers & Area Office.
Reduction in working capital cycle /Additional revenue generation
Benefits
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Institutional Sales.
Benefits
Structured pricing
Sales tax benefits to customer Modvat benefits to customer.
Standard pricing policy for tender business
Standard pricing policy for various Private Sector
organizations Standard pricing policy for Government business
Low cost of capital & customer acquisition. Benefitspassed on to the customer
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Institutional Sales
Reduction in working capital cycle.Additional Revenue Generation
Payment in advance for mostGovernment & Private Sector Business
Quicker realization
Control on outstanding
Structured approach to untappedmarkets
Benefits
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Institutional Sales
Current Status Zone I
Actual Sale F 07 -- 282 Tractors
Potential Sale F 08 -- 1225 Tractors??
How do we fill the gap?
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Institutional Sales
Priority focuson :
1. Gujarat.2. Chhatisgarh.
3. Madhya Pradesh.
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Institutional Sales
* Data Sourcewww.projectstoday.com. All figures in Rs. Crores.
Project Type Chhatisgarh Gujarat Madhya Pradesh
Airport & Port 18,576
Chem & Fert 73,252
Gas Oil & Power 48,635 49,975 31,897
Infrastructure 28,675 43,629 8,254
Irrigation 202 21,453 11,684
Other Misc Proj 1859 13,097 9,146
Railway 685 5,972 1,913
Road 3666 8,343 5,768
Total 83,722 234,298 68,661
http://www.projectstoday.com/http://www.projectstoday.com/8/4/2019 Is Business Planning ZI
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Institutional Sales
ApproachIdentify the project to focus on1. Identify other potential segments
Tractors with Post Hole Diggers for rural
electrification projects. Tractors with boring Jigs for tube well drilling.
Front end loaders for hot mix plants for roads etc.,
2. Freeze on potential Sale in the Focus States3. Appoint a point leader in each state
4. Institutional Manager -- Zonal Resource ?
Responsibility HO & AM.
Deadline March 10, 07
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Institutional Sales
PROPOSEDACTIVITY1. Liaison with Customers / Contractors
HO with Main Customers / Contractors AO/Dealers with local Customers / Contractors
2. Product Strategy Availability of the right product. E.G. 4 WD Tractors - HO/PMMS/PDRDS Existing Tractor Application equipment vis--vis other out sourced
equipment HO Identify any other segment specific equipment HO / PMMS / PDRDS
3. Pricing Strategy Pricing on a case to case basis -- HO/AO Budget for Dealer incentive & Sales Promotion Activity.
4. Financing Options Role of MMFSL vis--vis Banks -- HO
5. Dealers Responsibilities Standard Operating Procedures to be finalized --HO/AO Appointment of Institutional Dealer ?
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Institutional Sales
PLAN F 08
Agros Army Sales Direct Sales Totals
Chhatisgarh 100 - 300 400
Madhya Pradesh 125 - 150 275
Gujarat 100 - 450 550
Total 325 900 1225