JAIPURIA INSTITUTE OF MANAGEMENT, INDORE

FARM ELECTONOICS – MARKETING

Submitted by
Vasudev Gokhe

INTRODUCTION

An indian Farm Electronics is an Indian firm that manufactures electronic and electrical industrial
machinery. Small vendors, government stakeholders, local manufacturers, international corporations,
and producers of industrial systems with diverse ownership structures and company sizes were among
their clientele. FE has split its customer base based on their needs. As a result, businesses may tailor
their product offers to a large customer base while still operating in a small market. They won't have
to compete against larger competitors wasting their resources.
The following case will look at: - • Farm Electronics' clients' purchasing cycles, as well as the typical
buying centre functions for which robust acquisition channels are required;
• A review of their value proposition and delivery methodologies, as well as suggestions for
development; and

• Disparities in current segmentation and the biggest chances for expansion.

QUESTION
cApply the 5-Cs paradigm to the marketing environment for Farm Electronics.

COMPANY
This Farmers were first targeted as potential consumers by this company. It was a business-friendly
setting with all of the necessary infrastructure for electrical and electronic manufacturing. Dinesh
created a website to establish the company as an isolation transformer sub-vendor. According to their
long-term business model, a few well-established customer relationships would secure recurrent
business.
Farm Electronics manufactures isolation transformers.
Relay coils for railway signals, brushless DC motors, power supply, and windings are also available.
Transformers are available in single-phase and three-phase configurations (1 volt - 20 kilovolt).

Quality, fast delivery, and after-sales service are their strengths, as stated in their value statement.
They are also extremely sensitive to their consumers' needs. Companies were willing to engage
because they wanted to.

If I wanted a bespoke design or a speedy delivery, I'd contact them. They have limited sales,
marketing, and investment resources. They tried cold phoning, emailing, trade shows, and building
personal connections in the business. If Farm Electronics' issues are resolved, the company has a lot
of potential. To expand their reach, they started selling products online.

This didn't bring in much money, but perhaps marketing and research might help it improve. Farm
Electronics can also reach out to overseas markets, such as Africa. Apart from Chinese producers,
these countries have few dealers of this type of equipment. The internationalisation of manufacturing
will enhance the company's development. Farm Electronics recognised several potential for client
development. The cost of prospecting for Type A consumers is $1,000, which covers prototype
development, travel, and educational materials. They retained eight out of ten eligible accounts in the
prior five years. To reach additional Type A clients, they would need to invest $50,000 in a
customised production unit. This plant would also require a $4,000 annual operator as well as a
$20,000 quality control lab with a 5-year lifespan.

Types B, C, and D may find the facility beneficial, making the expenditure worthwhile. Due to
possible product damage and safety measures, this company is at danger.
COLLABORATORS

The company is heavily reliant on the overseas market for raw material expenses. They do have
access to some local raw materials, which helps them avoid some issues. Other items were
unavailable from local retailers. This was not a serious worry because the overall architecture of
transit and import networks was efficient enough. They did ran out of copper wire at one point due to
a nationwide shortage caused by the closure of a large copper smelting plant. They were able to get
raw copper from other sources, which was fortunate.

CUSTOMERS

Farm Electronics serves a diverse spectrum of clients, ranging from small businesses to large
corporations with various organisational structures and scales. Two companies that solely buyback
make a large amount of money.
Small firms account for the majority of the remaining revenue, but they also provide enormous
opportunities. These small firms operate on a national scale. The organisation has categorised
customers into numerous segments in order to better understand their requirements and preferences.
• Type A clients are global corporations with which you have a regular commercial relationship,
making the approach comfortable.

• Local manufacturing industries that serve large players are Type B clientele.

• Type C is comparable to Type B, but their requirements and goals will differ significantly because
they are tiny businesses.

• Unstructured small suppliers and service centres are type D consumers. The owner will call a
number of suppliers and choose the one that offers the best deal on the items. This demonstrates to
Farm Electronics that they often require generic things and are unconcerned about specifications.

A government agency is the last category of consumer (PSU). These are major, government-owned
businesses that operate in a variety of fields. This distinction implies that firms express their
requirements through advertisements that include specific deadlines and procedures.

COMPITITORS
Dinesh came to the conclusion that spending money on competitors was pointless. Rather of
competing with one another, he chose to operate in a market where a variety of firms may prosper.
This was the market for isolation transformers.
There were several competitors —
• A major electrical equipment manufacturer

• A number of providers with similar product offerings

• A producer from China

CLIMATE
The Changes in the political climate may have an impact on the dynamic between PSUs. The move
might affect their requirements and desires, giving Farm Electronics a competitive edge or forcing
them out of the business. Furthermore, the global market might shift, affecting the cost of raw
materials utilised in manufacturing. This happened during the copper crisis, yet the company was able
to get the resources from a variety of sources.

PROBLEM
Whether Farm Electronics should focus on obtaining new consumers or diversify its product
selection in order to sell these items to current customers.

ALTERATIVE FOR THE PROBLEM

1. MARKET DEVELOPMENT - Look into new markets for your current items.
2. DIVERSIFICATION - Look into new markets with both old and new items.

3. PRODUCT DEVELOPMENT - Sell new and existing products to existing customers.

RECOMMENDATION

• I would advise them to start with option 3 because of the higher potential ROI. • Instead of thinking,
"We have this product, how many consumers can we sell it to?" they should think, "We have these
customers, how many items can we sell them?"
 • Seventy-five percent of their sales come from repeat customers who may desire additional
merchandise.

 • Selling new things to existing consumers will also allow you to measure their response (and
potential issues). The company may consider entering the new market in the future based on
this reaction. Option 2 will be selected at a later time.