Download
1 / 40
400 likes | 787 Views
[. October 2017. Agenda:. Company overview Market Analysis Summary Company Summary Strategy and Implementation Summary. 1.1 Company overview.
E N D
[ October2017
Agenda: Company overview Market Analysis Summary Company Summary Strategy and Implementation Summary
1.1 Company overview Company “UkrFarming” is the direct successor of holding “Ukragrozapchast” which implies following its traditions that were formed in 1991. The core of the company is formed by former Ukragrozapchast workers that specialize in promoting western agricultural machinery brands in Ukraine. The company made a huge growth in 2012 by obtaining CASE IH franchise and investing a vast amount of capital into the development of company’s infrastructure. As a result, UkrFarming now distributes such brands as CASE IH, Lemken, MaschioGaspardo, and Fantini. For the first half of year 2017 the company’s sales totaled up to about 16 million USD of WG and spare parts. The company successfully operates in Eastern Ukraine and has a number of its own modern service centers in Kharkiv, Sumy and Kherson.
Dealership in Ukraine • sales representatives • dealer centers
Dealership in Kharkiv • Opened in Autumn of 2016, it is the best CASE IH dealership centre in Ukraine.
Dealership in Kharkiv (cont.) • A brand new showroom was opened on the 22nd of September 2016. All furniture was manufactured according to CASE IH standards.
Dealership in Kharkiv (cont.) • The company regularly organizes courses to increase the qualification of its employees.
The service centre is developing rapidly. The number of performed tasks has increased by 4.8 times in comparison to results of the previous year. It was achieved due to an increase in engine and transmission repairs. Dealership in Kharkiv (cont.)
Dealership in Kharkiv (cont.) UkrFarming showed an increase is spare part sales as well. The sales volume of parts sold in 2016 exceeded previous year’s total amount by 100%!
The opening of Case IH dealership in Kherson 26.12.2015 (cont.)
At this moment, all negotiations with the city authorities about the construction of an additional service office in Kherson are completed.
1.2 Financing In order to finance the business of CASE IH, company used several financial instruments. Our main financial partners are Raiffeisen Bank Aval (Austria) and Marubeni Corporation (Japan). As for the results, the company adapts very fast and shows good performance. A great company reputation and a big customer database help UkrFarming to enter new markets very fast and efficiently.
The following results are the summary of CASE IH sales for the year 2016 and first 9 months of 2017.
The dynamics of Case IH Tractor, Sprayer, Combine sales years 2012-2017(9 months).
The results of Lemken and MaschioGaspardo sales for the year 2016 and first 9months of 2017.
1.3 Objectives UkrFarming has an experienced management team with direct market knowledge, extensive research experience, and unique administrative skills. There are many factors, that create significant risks for potential investors in Ukraine. However, even in this condition local farmers invest a lot in new/used machinery and spare parts and would like to be supported by local dealers when needed. Mr. Kurkacishvili, the director of UkrFarming, believes that there is a current untapped market opportunity for agriculture machinery business. The territories offered are well known and have good potential. UkrFarming already has good networks in Kharkiv, Sumy and Kherson.
1.4 Mission UkrFarming’s mission is to become the most effective full-line equipment dealer in Ukraine, with the ability to satisfy all needs of agriculture producers and livestock farmers. Therefore, the company's strategy is to create a limited geographical niche for itself, where a deep network will be created. UkrFarming aims to offer high-quality agriculture machinery at a price, that is competitive in comparison to other premium-quality commercial machinery in the local market.
Our goals are: • High quality service 24/7 • 100% Spare Parts availability • Achieving 1.5 million $ turnover in short-term and 5 mil $ in long-term perspective • To keep high profitability • Development of outlet network coverage • To elevate every team and each employee to the high professional level • Highest levels of customer satisfaction
1.5 Keys to Success • UkrFarming’s keys to success are: • Experienced management team with understanding of market specifics. • Well-trained sales representatives with a focus on machinery sales. • Understanding of specific market needs in particular AORs. • A high level of quality in all product lines. • One supplier for all machine parts and aggregates. • Maintaining and growing its networks to generate new sales. • Possibility to use Bank Guaranties confirmed by western banks.
2. Market Analysis Summary 2.1 Ukraine agricultural market 2016, 2017 – 13 614 ед. течн– –
2.2 Target Market Segment Strategy Our choice of target markets is based on comprehensive experience within the agriculture industry coupled with an in-depth understanding of customers' needs. We have taken a unique approach to satisfy our customers’ needs and answer all their questions, assuring them of the effectiveness and efficiency of our products. The company identified that just an on-site testing of the agriculture machinery in the customers' fields is enough to persuade even the most resistive and uncertain clients. UkrFarming focuses on the specific market segments. This strategy is the key to company's future. UkrFarming cannot be successful by just waiting for the customer to come for ordering. The company's focus and the marketing message will not only be about customer needs but also about the spare parts and after services offered. A good marketing mix will communicate company's message, develop it, and fulfill its commitments to excellence. By developing a market strategy UkrFarming changes in paradigm of being a product- and price-focused sales organization to that of customer- and market-focused organization, aiming for sharing responsibility for customer satisfaction. UkrFarming will accomplish this paradigm shift through the implementation of a balanced products prices and continuous after sales support.
3. Company Summary 3.1 Company Ownership UkrFarming is a limited liability company. Mr. Alexander Kurkazishvili is the director and the shareholder, owning 100% of the share capital.
3.4Location & Facilities • The goods from the main stock in Kharkiv are delivered to the subsidiaries weekly. In case when the parts are urgently needed, they are delivered within next 12 hours. • The company is equipped with servers and computers that are joined together in one net. It allows the company to get and research any information that is needed on-line on each subsidiary and branch. There are digital catalogues of spare parts of different types of machinery that we deal with on every personal computer. Currently the company has 60 employees and 22 cars.
4. Strategy and Implementation Summary Emphasize Customer Service. UkrFarming has already differentiated itself from other importers of agriculture machinery and by offering spare parts and service maintenance to their machinery, professional advice to customers and custom solutions depending on a customer’s demands. Build a Relationship-Oriented Business. UkrFarming built a long-term relationships with clients, not just by selling equipment. We let them become dependent on company's assistance to help in many situationsand understand the value of the relationship. Focus on Target Markets. The company plans to develop marketing alliances with agriculture chemical and seeds suppliers. The market strategy is to capitalize on UkrFarming ever-increasing customer base and contacts by offering the latest products and after sales service. The company's goal in the next year is to exhibit its products in the local Agriculture fairs and field days that will take place Sumy region next September, which will allow for expanding the product service area with up-to-date servicing equipment. Even more so, the company is planning to organize field demonstrations. Which are not only show the latest technology developments in the field, but can also reduce the operating costs.
4.1 Competitive Edge Our competitive edge is our positioning as a strategic ally of our clients. By building a long-standing relationship with satisfied clients based on machinery, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our clients understand what we offer and why they should stay with UkrFarming in a close-knit relationship.
4.2 Marketing Strategy • The overall marketing plan for UkrFarming products and services is based on the following fundamentals: • The segment of the market(s) planned to reach. • Distribution channels planned to be used to reach market segments: radio, sales associates, and Post cards, direct marketing, mailings, etc. • Share of the market expected to be captured over a fixed period. • Market Responsibilities UkrFarming is committed to an extensive promotional campaign. This will be done aggressively and on a broad scale. To accomplish initial sales goals, the company will require an extremely effective promotional campaign to accomplish two primary objectives: • Attract quality sales/service personnel that have a desire to be successful. • Attract customers that will constantly look to UkrFarming for their marketing.
4.2 Marketing Strategy (cont.) Promotion In addition to standard advertisement practices UkrFarming will gain considerable recognition through these additional promotional mediums: • Customer clinics where we will explain why our products is choice number one. • Field demonstrations in combinations with Case IH planter and tractor. • Radio advertising on secondary stations. • As an extra incentive for customers and potential customers to UkrFarming name, the company plans to distribute coffee mugs, T-shirts, pens, and other advertising specialties with the company logo. This will be an ongoing program for the company, when appropriate and where it is identified as beneficial. • Brochures. The objective of brochures is to portray the company's goals and products as an attractive functionality. It will also show to customers how to use the latest technology of innovations or what it relates to agricultural and Livestock sector.
4.3 Sales Strategy UkrFarming offers the best quality equipment that is introduced to the market through targeted advertising, demonstrations and direct sales. The direct sales force will consist of local sales representatives in coordination with their product sales support managers who will be hired by the company separately. Sale representatives will manage direct sales through personalized calls and direct visits to villages. This market is a long term, repetitive business where relationships are the key component for success. We will promote the company and its ability to act as an ally to agriculture producers and livestock farmers. We will make more marketable UkrFarming and keep the reputation of industry-leading manufacturers representative.
4.4 Pricing Currently, UkrFarming maintains a commercial credit policy for business customers with a net 30-day limit for spare parts. Moreover, the company grands additional discounts to financial institutions in order to get interest rate down from the rest of market offers. Most of UkrFarming customers choose to deal with their own financial sources. The company would like to offer competitive prices, which are subject to reviewing when necessary. Knowledge of market and competitor prices gives the company the advantage of pricing in-line with competitors.
Our partnership withKharkiv National Agrarian University. UkrFarming renovated an old classroom into a new themed one. The project is managed jointly with CASE IH.
Our partnership withSumy National Agrarian University. UkrFarming renovated an old classroom into a new themed one. The project is managed jointly CASE IH.
UkrFarming organizes different events such as Field Day in October 2016
