REDEFINING AGRICULTURAL INPUT SUPPLY - PowerPoint PPT Presentation

1 / 20
About This Presentation
Title:

REDEFINING AGRICULTURAL INPUT SUPPLY

Description:

Chemicals, Fertilizer, Seed, Machine Parts, Animal Health. PRODUCT POSITIONING. PRICING ... Chemicals, Fertilizer, Seed, Machine Parts, Animal Health ... – PowerPoint PPT presentation

Number of Views:35
Avg rating:3.0/5.0
Slides: 21
Provided by: meganlou
Category:

less

Transcript and Presenter's Notes

Title: REDEFINING AGRICULTURAL INPUT SUPPLY


1
REDEFINING AGRICULTURAL INPUT SUPPLY
Supply Chain Management Tools/E-commerce Presence
Online Auction
Chemicals, Fertilizer, Seed, Machine Parts,
Animal Health
2
MARKETING PLANfor
  • Ram Marketing Consultants
  • Colorado State University
  • Megan Bruch, Alejandra Engler-Palma,
  • and Jay Parsons
  • August 2001

3
PROBLEM STATEMENT
  • How do we market ?

Revolutionizing Agricultural Input Supply
4
KEY ALTERNATIVES
  • Focus on XSAg.com
  • Brokerage services
  • Focus on Nterline Network
  • Supply Chain Management tools
  • Focus on a fully integrated supply management
    system
  • Closely link the two platforms

5
MARKET IDENTIFICATION
  • XSAg.com
  • Agricultural retailers
  • Inventory management
  • Agricultural producers
  • Sales of 100,000 to 500,000
  • Nterline
  • Agricultural retailers, distributors, and
    suppliers trading highly regulated products
  • Retail stores with greater than 3 million in
    annual sales

6
SWOT ANALYSIS
  • XS,Inc.
  • Strengths
  • Weaknesses
  • Market
  • Opportunities
  • Threats

7
STRENGTHS
  • Strong, growing, and satisfied customer base
  • gt60,000 registered users
  • 95 user satisfaction
  • Partnerships/Alliances

8
Alliances
  • Investment
  • Banking and Credit
  • Media/Content
  • Commodity Trade
  • Product Data Logistics
  • Web Hosting
  • Technical
  • Privacy Security
  • International

9
WEAKNESSES
  • Lack of service to producer
  • Supply chain friction

10
EXTERNAL THREATS
  • Significant competition
  • Speed of adoption

11
OPPORTUNITIES
  • Large growth in online agricultural sales
    forecasted
  • By 2004, 15 of transactions online
  • (Forrester Research)

http//www.businessweek.com/2000/00_20/b3681102.ht
m
12
OPPORTUNITIES
  • Slim farm margins
  • Future input technology
  • Supply chain management
  • 500 million in excess crop protection
    inventory each year
  • (http//www.wpc-edi.com/insider/Articles/\/2/11-3
    m.htm)
  • SCM systems shown to reduce inventory costs
    30-50
  • (http//www.oracle.com/corporate/press/index.html?
    606088.html)

13
DECISION
  • Market a fully integrated
  • supply chain management system closely linking
    the two platforms, XSAg.com and Nterline.

14
PRODUCT POSITIONING
Supply Chain Management e-commerce
Chemicals, Fertilizer, Seed, Machine Parts,
Animal Health
Online Auction
Revenue Customer Relations Management
15
PRICING
  • Transaction Fees
  • Nterline Service
  • Storefront packages
  • Subscription charges
  • Maintenance fees
  • Advertising

16
PROMOTION
  • Service Alliances
  • Agricultural Retailers Association
  • Vantagepoint Network
  • Cross Promotion

17
KEY PLANNING ASSUMPTIONS
  • 2004
  • 1. Stable producer expenditures
  • 50 billion annually
  • 2. Market concentration
  • 75 among three competitors
  • 3. Online sales growth
  • 12 of total sales

18
FINANCIAL ANALYSIS
  • Transaction Fee Revenue
  • 50 billion (market size)
  • x 0.12 (online sales ratio)
  • 6 billion (industry online sales)
  • x 0.35 (XS,Inc. market share)
  • 2.1 billion (XS,Inc. sales)
  • x 0.02 (avg. transaction fee)
  • 42 million (XS, Inc. revenue)
  • x 0.3 (returns from operations)
  • 12.6 million operating margin

19
MONITORING AND MEASUREMENT
  • Transaction volumes and subscriptions
  • Forecast accuracy
  • Conduct random customer surveys

20
Supply Chain Management e-commerce
Chemicals, Fertilizer, Seed, Machine Parts,
Animal Health
Online Auction
Revenue Customer Relations Management
Write a Comment
User Comments (0)
About PowerShow.com