Title: REDEFINING AGRICULTURAL INPUT SUPPLY
1REDEFINING AGRICULTURAL INPUT SUPPLY
Supply Chain Management Tools/E-commerce Presence
Online Auction
Chemicals, Fertilizer, Seed, Machine Parts,
Animal Health
2MARKETING PLANfor
- Ram Marketing Consultants
- Colorado State University
- Megan Bruch, Alejandra Engler-Palma,
- and Jay Parsons
- August 2001
3PROBLEM STATEMENT
Revolutionizing Agricultural Input Supply
4KEY 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
5MARKET 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
6SWOT ANALYSIS
- XS,Inc.
- Strengths
- Weaknesses
- Market
- Opportunities
- Threats
7STRENGTHS
- Strong, growing, and satisfied customer base
- gt60,000 registered users
- 95 user satisfaction
- Partnerships/Alliances
-
8Alliances
- Investment
- Banking and Credit
- Media/Content
- Commodity Trade
- Product Data Logistics
- Web Hosting
- Technical
- Privacy Security
- International
9WEAKNESSES
- Lack of service to producer
- Supply chain friction
10EXTERNAL THREATS
- Significant competition
- Speed of adoption
11OPPORTUNITIES
- 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
12OPPORTUNITIES
- 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)
13DECISION
- Market a fully integrated
- supply chain management system closely linking
the two platforms, XSAg.com and Nterline.
14PRODUCT POSITIONING
Supply Chain Management e-commerce
Chemicals, Fertilizer, Seed, Machine Parts,
Animal Health
Online Auction
Revenue Customer Relations Management
15PRICING
- Transaction Fees
- Nterline Service
- Storefront packages
- Subscription charges
- Maintenance fees
- Advertising
16PROMOTION
- Service Alliances
- Agricultural Retailers Association
- Vantagepoint Network
- Cross Promotion
17KEY 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
18FINANCIAL 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
19MONITORING AND MEASUREMENT
- Transaction volumes and subscriptions
- Forecast accuracy
- Conduct random customer surveys
20Supply Chain Management e-commerce
Chemicals, Fertilizer, Seed, Machine Parts,
Animal Health
Online Auction
Revenue Customer Relations Management