Marketing Plan

June 24, 2018 | Author: Roup Purohim | Category: Pesticide, Agriculture, Sales, Promotion (Marketing), Marketing
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IV.The Marketing Plan IV.1. Economics Indonesia is a big market for pesticide products. The use of pesticide has increased with the expansion of modern farming in the country to increase productivity. The types of pesticide include insecticides, fungicides, rodenticide, herbicides, acaricides and bactericides. There are currently local and multinational companies that competing in Indonesia’s pesticide market. Multinational companies as member Crop Life Indonesia such as Syngenta, Bayer Agrosciences, DuPont Agriculture Product, Nufarm Indonesia, BASF, FMC, and Dow Agro Science. Around 40 of the local companies are members of the Association of National Pesticide Community (HMPN). The member of Crop Life dominate the market with a market share of 60 percent with HMPN members having a 25% share, and 15% from companies outside of HMPN and Crop Life members. In 2012-2013, the value of pesticide business in Indonesia was estimated to reach up to IDR 6 trillion (USD 500 million). Pesticide sale have increased 6 percent per year by value over the past five years, and trend to increase in line the agriculture practice in Indonesia. Base on data from Ministry of Agriculture, there are 2,672 brands pesticide found in Indonesia. The main brands are insecticides with 887 items, followed by herbicide 672 items and fungicide 405 items. The largest consumer of pesticide in the country approximating for 41% of the total domestic consumption, followed by oil palm plantation approximating for 27% and horticulture plants for 32%. Herbicide have the largest share of pesticide market accounting 42,5%, followed by insecticide according for 37,5, fungicide 18% and other type for 2%. Herbicide consumers are mainly for the plantation sector and consumers of fungicide are mainly for food crop sector. PT Nusa Mandiri Utama (NMU) as new player in pesticide industry in the country. Recently NMU is focusing on plantation sector such as palm oil, rubber, and sugarcane. NMU need growing as the oil palm sector has grown tremendously over the years, the oil palm sector will be NMU top target. In 2015 NMU will introduce to the retail market in horticulture and food crop segment because its biggest market in pesticide about 60% from total market. However by maintaining the plantation sector, NMU estimating got 20% revenue from retail market. IV. 2. Products Currently NMU have seven brands registered at Agriculture Ministry such as herbicide and insecticide type. The active ingredient of herbicide are gliphosate, paraquat, triklopir, diuron, metil metsulfuron, and 2,4-D amine and carbofuran for insecticide. Target market of these products are plantation segment. Herbicide consumers are mainly for the plantation sector. Gliphosate and paraquat are biggest market in plantation. Unfortunately, most of pesticide companies already have a gliphosate and paraquat, also 2,4-D amine, metal metsulfuron. These products are has been “generic product”. The second target NMU business is completely the product portfolio by registering products to introduced retail market in 2015. The products will select and should have a large market share, has a good margin, and in accordance with market needs. In another side NMU will 1 Features and Benefits All NMU’s product already has registered in Agriculture Ministry. They have high quality products. In the other side. skilled human resources. good processing formulation. NMU just not pesticide company. patent products. approximately more than 100 companies as owner registration product in the Ministry of Agriculture. excellent source of active ingredient. massive marketing campaign. Customers Basically there are two major segments of customer. 2 . 3. Meanwhile NMU’s product was quality guaranteed and passed quality tested at laboratory and field trial. NMU staff will guide how to the application and handling products. Competition The pesticide industry is highly fragmented and very competitive between multinational company with national companies and between national companies. size of coverage the service. IV. Customer will felling convention to buy and effective in application. All brand NMU’s product also was register in Intellectual Property Rights. and segmentation the customer and/or products. its make benefit to customers that NMU product is legal pesticide and trusted. which have modern production facility. etc. IV. Plantation companies can buy directly to NMU through direct purchase or a tender mechanism. Several government companies such as PTPN and private companies that have a large plantation area usually perform with tenders in procurement pesticide products. Distributor choiced by NMU depends on the demographic factor. Currently. good packaging material performance. IV. They product was setting in premium price with excellent service and distribution. NMU should be able to change the battlefield than just the war in terms of products and turn into human capital and services.develop a competitive advantage not just a product. Multinational company was leading in marketing and promotion activities because they have advantages by “patent product” and marketing cost. As national company NMU will head to head competition with multinational companies. 4.5. and products variety according to plantation needed. national companies no more advantage in the product and marketing cost. In the field. but is a partner in agricultural sustainability. namely distributors (dealer) and plantation companies (corporate). This situation makes the price war between the national companies. Scale : 1 = critical.Table 1: Competitive Analysis Analyze each major competitor. 3 . 5 = not very important Limited portfolio product High price 1 2 Good performanc e Premium Competito rB (Dhama Guna Wibawa) 2 1 Quality 2 High quality Selection 3 Service 3 Reliability 3 Stability 3 Expertise 3 Company reputation 3 Segmented market Simple organization Limited distribution channel Sustainable supply Herbicide plantation supply Developing company reputation Limited customer No alternative choices Limited coverage Store un availability Location 3 Appearanc e 3 Sales method 3 Credit Policy 3 Advertising 3 Factory and warehouse one place Good performanc e Direct and undirect end user buying Flexible credit to client and agent NA Image 3 NA Factor NM U Products 2 Price Strength Weakness Competito rA (Nufam Indonesia) Competito rC (Agricon) Importance to customer 2 Very important 2 2 1 2 2 1 2 2 1 2 2 Very important Very important Very important Very important Very important Slow penetration NA Very important Very important Limited information about company Limited representativ e High cost 1 2 2 Very important 1 1 1 Very important 1 2 2 Very important Limited sales method 1 2 2 Very important Still no form standard form credit Lack promotion activities Lack of brand and company image Very important 1 2 2 Very important 1 2 2 Very important NMU as a new player in the production and marketing of pesticides can harness its power to grab market opportunities from existing companies and strengthen weaknesses to face the challenges of the future. 6. media online. The use of radio advertising may still be considered. and social media. IV. 7. sales promotion. in the shortly NMU focus on marketing particularly on oil palm. 3. 6. Niche Market Based on the mapping of strengths and weaknesses as in the table above. company reputation. BTL strategy such as sponsorship. However. it’s can be used to build the image that NMU product not a cheap product or poor quality. 4. Promotion: NMU will promote the products using above the line (ATL) and below the line (BTL) strategy. Besides the weaknesses of the current condition can be improved. 1. public relations. especially for retailers market. Sales incentives budget for retailer about 15% from revenue (USD 4. In the long run NMU should development to plantation companies which has large areas with big buyer. Common practice in pesticide promotion is doing the trial or product demonstration plot to shown the product effectiveness and avoid the objections from prospective customers. public relations. Advertising To disseminate information and getting attention about company and products that advertising is very common practice. and product knowledge. personal selling. Promotional Budget NMU’s marketing budget consist of two items are product development and market development. rubber and sugar cane plantation in small to medium buyer. Product development budget is using to new product registration and/or label expansion. marketing tools material. personal selling and direct marketing. IV. 7. 6. Other promotion activities are product brochure and information. Currently NMU should build its reputation as a pesticide company has a good product and excellent service. advertising. and direct marketing tools to communicate with current and prospective customers. and sales incentives. 2. and promotional activities in order to compete with a rival company that has a good reputation.8 million) are using for agent and retailer reward. ATL strategy such as advertising. and demo plot trial. NMU may use a combination of advertising. IV. especially in terms of service. magazines and banners will be applying. exhibitions. research and development activities.NMU have strength on product appearance and quality. Marketing Strategy IV. Other advertising media such as newspapers. sales promotions. IV. Market development budget is using for promotion activities.4 million). and other incentives. bonuses. availability. Pricing NMU products have premium quality with price setting policy prices by 5% below the market leader products. website and product catalogue. 6. IV. The determination of this price in order to attract market leader customer 4 . for products with highly segmented as well as pesticide products on television advertising less significant effect. Whereas corporate incentive about 2% from revenue (USD 2. and to avoid a price war with below segment products.736. which distributed to major retailers (R1). IV.169 79% 27.964. 5 . Sales Forecast NMU Sales forecast for 2014-2016 per segment are as below: Segments Corporate Retailer Total 2014 (USD) 25.793 32.629 2015 (USD) 102.640. 6. Distribution Channels NMU using distributors (dealer) and plantation companies (corporation) as distribution channel. The distributors are the direct buyer from NMU. Distributor as the first channel in the retailer market.376.000 130.200.164. approximate 79% from NMU sales revenue will come from the plantation segment (corporate) and 21% from the retailer segment. Location NMU has representatives in every province across the Indonesian province.258. IV.793 79% 2016 (USD) 120. Each province will be handling by a Territory Manager (TM) and coordinated by Regional Sales Manager (RSM) and RSM as sub ordinate National Sales Manager (SNM). 6. 5.169 21% As seen in the table above.258. TM as NMU representative in the territory.629 100 % 25. 6. 4. IV. They are still got the good quality product with price competitive. medium retailer (R2) and/or kiosk (R3) then product will delivered to the end user as free market. and also can selling product through the plantation if they appointed as exclusive distributor.000 21% 153. 6.


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