FARM ELECTRONICS DECISION SHEET

SUMMARY:

The owner and general manager of Farm Electronics met in January 2019 to go through
important possibilities for their company's potential growth trajectory. A 42-year-old small-scale
producer of electrical and electronic industrial equipment, Farm Electronics was situated in
Indore, India. The product line of the business includes a variety of transformers, relay coils,
power supplies, and direct-current motors that are made to the specifications of its clients. Small,
medium-sized, and big companies from both the organised and unorganised sectors made up
Farm Electronics' clientele. The company's value proposition comprised important elements
including quality, prompt delivery, and after-sales service. However, only a few sizable accounts
accounted for the majority of Farm Electronics' sales.. The proprietor and the general manager
wanted to expand their company's reach and were thus contemplating targeting a new set of
customers. The location of the company adds to its strategic advantage.

MAJOR PROBLEMS

 Mode of Operations
 Business Model
 Customer Expectations

MINOR PROBLEMS:

 High Competition because of the complex nature of customer requirements

WHY CUSTOMIZATION/PERSONALIZATION?

Because of the modified rebuy, there is an occurrence of customization, and as a result, there is a
scope for new players coming because of varying customer requirements.
FACTORS FOR SUCCESSFUL CUSTOMIZATION:

 QC
 R&D
 The protagonist’s and the founder’s background and expertise in the field add value.

PROBLEM STATEMENT:

What would be the stable business plan for Farm Electronics in the future?

B2C BUYING KEY PLAYERS:

Concept Framework:

 Buying Situation:

The business buyer faces many decisions in making a purchase. How many depends on the
complexity of the problem being solved, the newness of the buying requirement, the number of
people involved, and the time required. Three types of buying situations are straight rebuy,
modified rebuy, and new task.

Straight rebuy. In a straight rebuy, the purchasing department reorders supplies such as office
supplies and bulk chemicals on a routine basis and chooses from suppliers on an approved list.
The suppliers try to maintain product and service quality and often propose automatic
reordering systems to save time. “Out-suppliers” attempt to offer something new or
exploit dissatisfaction with a current supplier. They aim to get a small order and then
enlarge their purchase share over time.
Modified rebuy. The buyer wants to change product specifications, prices,
delivery requirements, or other terms in a modified rebuy. This usually requires additional
participants on both sides. The in-suppliers become nervous and want to protect the account. The
out-suppliers see an opportunity to propose a better offer to gain business.
New task. A new-task purchaser buys a product or service for the first time (an office building,
Or a new security system). The greater the cost or risk, the larger the number of participants,
and the greater their information gathering, the longer the time to decide.

B2B BUSINESS PALYERS:

Value Proposition of Farm Electronics

Three critical components of Farm Electronics' value proposition were after-sales support,
timely delivery, and high quality. The firm's policies and procedures were designed to offer these
components. For instance, even 90 days after delivery, the company delivered 100% repair and
replacement of the equipment.

Farm Electronics provides testing and manufacturing facilities tailored to the requirements of its
primary customers as well as forgiving credit policies due to the intense competition in the
business-to-business industry.
Customers of Farm Electronics evaluated and audited the company's quality. As a result, the
company is obligated to uphold all standards for testing, production, housekeeping, and other
legal standard requirements, including those relating to the calibre of Farm Electronics'
workplace safety measures and its environmental responsibilities.

In conclusion, Farm Electronics pledged to continually increase customer satisfaction by

Marketing environment for Farm Electronics using the 5-Cs framework

Company:

We start by examining the company and its operations. A successful company should possess a
long-term competitive edge within the sector, in Farm Electronics' case, industrial manufacturing
of electrical and electronic products.

The company offers goods and services that take advantage of openings in the target market. The
majority of India's economy is based on agriculture. Hence Farm Electronics first focused on its
vast customer base of farmers needing produced equipment. Additionally, Farm Electronics
made its equivalent for this kind of device for the Indian market, which was immediately
successful because India solely imported RTs. Since they constituted the foundation for
practically all the electrical and electronic equipment utilized by most industrial companies, the
company's goods were undoubtedly quite valuable. Resources are also crucial if they enable the
company to lower product prices or increase differentiation, raising the customer’s perceived
value.

Farm Electronics offered its primary customers a lenient credit policy, testing facilities tailored
to their specific requirements, and high quality, on-time delivery, and after-sales service. Farm
Electronics manufactures goods and resources that small enterprises only own, especially within
the local Indian manufacturing industry, even though the business-to-business markets are pretty
competitive. As the company's founder and owner first selected a market area with lots of
potentials for many different enterprises to expand and prosper, this was intentionally targeted at
the outset of operations. Although Farm Electronics' products might be in direct competition with
its rivals, other industry players may need help replicating the company's customized and highly
effective service.

Customers:

The company primarily targeted businesses that required specific electrical components
regularly, either for production or as building pieces for larger machinery or railway networks.
Customers of Farm Electronics included small and large businesses of all sizes and
organizational structures.

Collaborators & Competitors:

to compete, Farm Electronics provided flexible payment terms with its biggest customers and
ensured a stable relationship with them for straight repurchases (a sustainable business model).

Context:

Farm Electronics operates in a small-scale sector of the economy that, like other sectors, today, is
heavily influenced by outside forces over which no company has significant control. For
instance, economic situations connected to raw material shortages, tariffs on certain imported
raw materials, and a decline in demand for Farm Electronics' goods could impact the company's
operations. Since the company sells to suppliers who then sell to train networks, external
environmental variables are also important. For instance, a widespread ecological disaster can
temporarily reduce demand for the company's products. Due to the laws and regulations
governing the company's production activities, Farm Electronics' manufacturing facilities,
procedures, and systems may be impacted by external legal considerations.
Criteria:

 Cost
 Size of Order
 Sustainability & Growth
 Entry Barriers
 Cash Flows
 Customer satisfaction
 Pricing
 Market segmentation

Alternatives and Evaluation of Alternatives:

1. Target Type A Customer Segment: Farm Electronics has historically served farmers
and larger companies that frequently need specialised electrical components for
production, railroad networks, and building blocks for larger machines. Any new market
segment needs to be aggressively pursued on all fronts. Prospecting type A customers
includes designing prototypes, going on the road, and producing instructional materials;
this costs roughly $1,000. In this market, Farm Electronics had a lot of success and
gained a lot of new customers. The business would still need to invest $50,000 in
specialised manufacturing facilities and other costly additional processes to advance
further. However, accounts of kinds B, C, and D may also be processed through these
production facilities.
2. Target Type C and D Segment: The marketing expenses required to attract type C and
type D clients for the first three years that the company pursued these customer categories
would amount to 15% of the company's sales. Even if the marketing costs are quite high
in the near term and the revenue obtained from these tiny local businesses is low, this
type of industry is very large and the number of transactions with a single consumer
range from $500 to $1,500. Market share would be far more valuable for the business in
the long run
3. LOOKING AT PRODUCT LINE:
4. Targeting government agencies or PSUs: It is necessary to establish procedures that
adhere to the standards in order to target them as clients, which is a time-consuming
tendering process. Farm Electronics may find it beneficial to invest in production tools
andsoftware.
 fees for several quality certifications, and workforce recruitment to become the direct
seller to Indian Railways. Indian Railways was one potential target customer that would
bring high revenues to Farm Electronics.
5. Target an untapped African Market Segment: Farm Electronics might go for the
Chinese-dominated international market in several African nations. Despite the rivalry,
the Indian business may create a durable advantage by consistently offering competitive
prices and exceptional after-sales services that set it apart from its Chinese rivals. This
would entail a substantial initial infrastructure expenditure, but opening up the global
market might be very profitable for the company.

Conclusion/Recommendation:

Farm Electronics implemented a macro-segmentation strategy in detail. At this stage, it is

Market development, market penetration, product development, and diversification are the four
strategies that make up the Ansoff Matrix. The business must strengthen the proper strategy to
expand into new and existing markets and determine what product portfolio can be created for
better growth. Alternative 3 is preferred to be carried out using the strategic planning tool from
the above-mentioned evaluation of alternatives.