hybrid matrix
- 1. Industrial Marketing Channel – Walk Behind Rice Planter Group B7
- 2. 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
- 3. Value Chain The value chain consists of all important farm related activities and the farm equipments that would be required at each stage of farming:
- 4. Major Contributors to Farm Sector Equipments
- 5. Distribution Channels in Farm Equipment sector Here two types of channels are commonly employed Manufacturer Manufacturer Manufacturer’s Sales Branch Manufacturer’s Sales Branch Farmers Industrial Distributor Farmers
- 6. 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 6
- 7. 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
- 8. 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
- 9. Hybrid Grid
- 10. Hybrid Grid - Analysis
- 11. Hybrid Grid - Analysis 11 July 22, 2012 Footer text here
- 12. 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. 13 July 22, 2012 Footer text here
- 14. Demand-generation tasks Gather relevant informati on Internet Disseminat Reach e price communica agreem tion ents Plac Acquire Assu e funds me order for risks s inventori es Direct sales 15 20 Retail stores 5 40 30 Dealers 40 and value- 30 15 Total Resour ce Allocati on 2 15 23 5 Distributor s 20 Facilita te payme nt 5 5 Facilitat e product storage & movem ent 5 40 50 30 35 50 37 30 26
Editor's Notes
- #3: The Department has undertaken various schemes for development of agriculture and horticulture in this State. Motivating farmers for commercial cultivation in their land by giving them the technical and financial support to undertake organized cultivation of crops. Gradually switching over from the traditional style of cultivation to mechanized and scientific cultivation system It also arranges the supply of high yielding varieties of seeds, seedlings, planting materials and plant protection chemicals to farmers. The department also formulates policies and programs relating to provision of credit to farmers. Agricultural Research, Education and Extension are three important functions of the department.