Industrial Marketing Channel – Walk Behind Rice Planter

Group B7

Our Sector–Farm Equipments Agriculture is the major occupation in Indian economy and

contributes to 13.7% in India’s GDP (2012-13) India has experienced normal monsoons this fiscal year Besides this there has been increased growth in agricredit in the

Union Budget, interest subvention, rural development focus by the government and various other farmer friendly schemes(support prices for crops, commodity price increase etc)

Additionally, growing shortage of farm hands and smaller land holdings are forcing many farmers to mechanize their farms thereby increasing demand

All these have contributed to an increased demand for the farm equipments in the country

Indian farm equipment market also contributes to around 10% to global equipment market priced around $7.2 Billion

Value ChainThe value chain consists of all important farm related

activities and the farm

equipments that would be required at each stage of farming:

Major Contributors to Farm Sector Equipments

Distribution Channels in Farm Equipment sector

Here two types of channels are commonly employed

ManufacturerManufacturer’

s Sales Branch

Farmers

ManufacturerManufacturer’s Sales Branch

Industrial Distributor

Farmers

Choice of Distribution Channels: In the past only direct distribution channel was used due to

the existence of oligopolistic market structure. However this scenario has changed with increased competition

The sales potential, market potentials and type of equipment influences the manufacturers choice of the type of distribution channel as well as the number of intermediaries used

Now companies no longer rely on a single marketing channel they add many new channels to existing ones in order to cut costs and increase market coverage. This results in creation of a hybrid marketing system

We use the hybrid grid to map the elements of a hybrid marketing system

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Hybrid Marketing Grid It’s a grid of demand generation tasks mapped against

the marketing channels and methods. In order to properly manage these hybrid systems we

need to realise that tasks and not various marketing channels are the building blocks of marketing systems.

Since the farm equipment category is exhaustive, we chose a walk behind rice planter to do hybrid mapping

India is one of the world's largest producers of white rice and brown rice, accounting for 20% of all world rice production

However mostly traditional methods are still in use for harvesting rice

Walk behind rice planter – Product Features

Easy to operate and gives high level of precision and cost savings Plant population in each row can be controlled through adjusting the seed

feed Distance between hills can be adjusted with the hill spacing adjustment  Light rubber lug wheels give the machine better traction The product costs approximately INR 1lac Self-adjusting float mechanism to take pressure off the wheels, thereby

minimizing compression of the top soil Four-stroke petrol engine and two-speed transmission make rice planter

both fuel and time efficient The product addresses need states of farmers who have small land

holdings and want to mechanize their farms and who can’t use or can’t afford tractors and other costly equipments

Hybrid Grid

Hybrid Grid - Analysis

Hybrid Grid - Analysis

11 July 22, 2012 Footer text here

Path Ahead Farm equipments sector as a whole is still in nascent

stage in India as majority of farmers use traditional farming techniques, so this sector poses huge future potential

Since India is geographically massive, it’s difficult for manufacturers to reach length and breadth of nation. As a result, they depend a lot on their channel partners which hampers information flow

There is much scope of value addition in regards to after sales services and providing insurances

12 July 22, 2012 Footer text here

13 July 22, 2012 Footer text here

Gather relevant information

Disseminate communication

Reach price agreements

Place orders

Acquire funds for inventories

Assume risks

Facilitate product storage & movement

Facilitate payment

Total Resource Allocation

Internet 5 5 2

Direct sales

15 20 20 15 15 23

Retail stores

5 5 5

Distributors

40 30 40 50 35 50 37

Dealers and value-added resellers

40 30 30 30 26

Advertising

10 7

Demand-generation tasks