Harnessing the Essence of Smart Farming with a Customer Centric Approach in 2023

Focus on mass campaigning, product awareness and the right pricing strategies were the key success factors for the agile agritech startup to promote its smart farming products.

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An overview:

1

An agile agritech startup from the United States wanted to make the most of the growing smart agriculture industry in South Asian countries and position itself to capture a higher value as the market matures by 2035.

2

The company had a vision in hand and an end-goal to touch the absolute share opportunity of 15% in terms of sales in the region, but lacked the strategy to expand its sales revenue, given its varied product portfolio.

3

Research Nester, by using its unique 3-stage CDG analytical model, performed a gap analysis and built a customer-centric approach to help the company identify and target the right customer, and further develop sales and marketing strategies with the right price point.

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Results

By using the right pricing strategy, and the suggested sales and marketing strategies, which included product awareness and mass campaign programs, the agritech startup had acquired a share of 12.53% in terms of sales during CY2022 from 4.28% in CY2021, which was an increase of 5x over the previous year.

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The Story

Agricultural trade around the globe, over the past two decades have sky-rocketed, with exports touching USD 1375.82 Billion and imports touching USD 1408.44 Billion in the year 2021, up from USD 300.38 Billion and USD 325.24 Billion respectively in the year 2000, as per the statistics by the World Trade Organization (WTO). The United States Department of Agriculture (USDA), on the other hand, stated that in the year 2021, the nation witnessed record level growth in agricultural trade, recording exports of agricultural products of USD 177 Billion in 2021, while imports touching around USD 171 Billion in the same year, both depicting a growth of 18% and 17% respectively from the year 2020. Looking at the numerous opportunities associated with agricultural products, during the CY2020, a U.S.-based agritech startup had come up with a wide range of new smart agricultural products to serve the South Asian agricultural industry. The said client had learnt from Research Nester that the global agriculture equipment market registered a revenue of around USD 14000 Million in the year 2021 and is further expected to grow with a CAGR of about 9% to reach about USD 33000 Million in the year 2035. The WTO, in one of its other statistics, also stated that agricultural exports in Asia in the year 2021 was USD 563.76 Billion, which was an increase from USD 454.31 Billion in the year 2020, despite the numerous challenges faced due to the COVID-19 pandemic. To harness the growth opportunities available in the South Asian region, which is also estimated to be the dominating regional market by the end of 2035, backed by the fact that Asia is the largest importer of agricultural products, the organization planned to expand their business offerings in the said region. However, there were several of the challenges that the client had to face, which were:

  • 1. Lack of awareness and willingness amongst the farmers to use smart farming technology.
  • 2. High price of farm equipment.
  • 3. Unavailability of customer service points in the South Asian countries.

The Solution:

To address the multiple issues that were available with the client, Research Nester used its unique 3-stage CDG analytical model, which focuses on understanding the current state of the client, the desired state which the client expects to reach, and therefore the gap between these two states that is present. This gap analysis helped Research Nester to build a customer-centric approach for the client, which helped them target the right customer and further reach out to them to serve their business offerings. Our client was also addressed with the following suggestions which helped them achieve a remarkable double-digit growth over the next calendar year:

  • Develop a unique pricing model for its products, keeping in mind the local government taxes applicable, availability of products from the local competitors, and the purchasing capacity of the customers.
  • A strategized sales and marketing plan which aimed at building product awareness amongst the end-users in the South Asian countries.
  • Setting up serviceable points locally in the countries wherein the client had to offer its services.
  • Generating mass campaigning activities that aimed at educating the farmers, who were also the end-users of smart farming products.

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Swara Keni

Head- Global Business Development

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