How innovation in agriculture equipment's met the world's demand for food in 2023?

Despite having a wide product portfolio, a leading farm equipment manufacturing company aimed to produce cutting-edge products and technologies with the help of the right market research strategy and product analysis.

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An overview:

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A leading producer of farm equipments from Germany aimed to create innovative farm machinery that satisfies the highest industry requirements and improve farming operations to position itself to benefit from the future of agribusiness to capture greater value by 2035.

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The company intended to increase its overall value across the globe by 10x. However, the company faced several challenges including insufficient market research and lack of competitive analysis.

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Experts at Research Nester by using its business canvas model assessed the future growth opportunities for the product and examined how the product will add value to the industry.

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Results

Research Nester analysts conducted extensive market research to get insights into the market trends which helped our client to know about the target market for the product and understand customer needs and their preferences accordingly. By bridging the gaps in existing products the company was able to increase its sales by 12% in CY2022 from 9% in CY2021. The company invested around USD 200 Billion to offer a range of innovative farm machinery across the globe and increased its revenue by 8% by expanding its network to different regions. Moreover, the company aims to become a global brand by the end of 2035.

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The Story

The evolution of agricultural equipment has sped now more than ever since the agriculture industry keeps seeking ways to enhance productivity by adopting sustainable practices. As the global population continues to grow there is an increasing demand to improve farming processes such as planting and harvesting. Research Nester observed that, we will need to produce over 65% more food by 2050, and the reality is that the industry hasn't seen a lot of innovation. The comprehensive report on the global agricultural machinery market provided to the client stated that the market registered revenue of USD 203 Billion in 2018 and is expected to reach over USD 580 Billion in 2035. The statistics also reported that there are favorable government policies present around the world for a variety of projects that aim to increase the demand for agricultural machinery. However, the client experienced several difficulties to enter into the global competitive market of agricultural machinery which are mentioned below:

  • 1. The cost of developing innovative agricultural machinery requires high initial cost as it involves high research & development costs.
  • 2. Lack of willingness of farmers to adopt innovative technologies due to insufficient knowledge and technical expertise.
  • 3. Presence of different market segments and varying regional requirements.
  • 4. High price competitiveness in the global market.

The Solution:

The team at Research Nester analyzed the critical areas such as value proposition, and customer segments to evaluate the profitability of the product. This helped our client to understand the need of the customers and choose the target audience for agricultural machinery accordingly. Besides this, the strength and weaknesses of the product were evaluated to understand the position of the product in the market. In addition, a complete market plan was provided to the client with the intent to make the customer aware of the new product in the market so that business goals can be achieved. We also assisted our client with more suggestions to help them record impressive growth by 2035:

  • 1. To set distribution strategies that ensure that the product reaches the right audience.
  • 2. Potential gaps in existing products were identified which would further help the company in addressing specific challenges faced by the farmers by introducing innovative farm machinery.
  • 3. To identify industry leaders who are eager to adopt new equipment and gather feedback.
  • 4. Establish collaborations with several agriculture organizations to reach a wider audience to build credibility for the new machinery.
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Swara Keni

Head- Global Business Development

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