Two-Wheel Tractors Seed Drill towards Efficient Farming - Article Example

Two wheel tractors seed drill; towards efficient farming Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission Two wheel tractors seed drill; towards efficient farming It is apparent that the mode in which seeds are positioned in the soil during the planting exercise highly determines the level of productivity in that particular piece of land. Nonetheless, many farmers in diverse parts of the globe are still stuck in traditional sowing methods which have resulted in poor harvests and a great contributor to food insecurity in these regions. The above phenomenon is more prevalent in most agrarian developing countries in Asia, Africa and Latin America where seeds are entirely planted using hands, a methods which is commonly referred to as manual broadcasting. This results not only in imprecision in the distribution of seeds but subsequent low productivity in these areas. An effective seed drill is thus an effective way of reducing these shortcomings in the different regions where they can be implemented. Recent studies have revealed that the utility of a seed drill has the capacity of enhancing the ratio of crop yield by a ratio of up to nine times when juxtaposed with manual broadcasting. In this regard, this paper will focus on the two wheel tractor seed drill invented by Jeff Esdaile and Chris in 2011. It will aim at identifying the entry strategy of this product in the prospective market. In addition, it will explore the opportunities and the risks in these regions through a comprehensive SWOT analysis. Lastly, it will objectively justify the selected target areas while defining an ideal entry mode. This will be credited to John Deere (an agricultural equipment manufacturing company based in Australia and New Zealand) which will be mandated with the role of introducing the two wheel tractor seed drill into the market. Locations of entry The ideal location of entry for this equipment will be among smallholder farmers worldwide. As mentioned in the preceding section, most of these farmers are widespread in most agrarian countries and they primarily undertake their planting and fertilizer application processes using their hands which have many demerits. The seed drill for a two wheel tractor can be of great utility in both traditional and conservation farming systems which are prevalent in most parts of the world. In this regard, two countries from Africa and Asia will be targeted in the pilot marketing ventures. Kenya and India will be the locations of entry into Africa and Asia respectively. John Deere has a long-term establishment in these countries and thus familiar their farming practices. The rationale behind the selection of the above countries is founded on their common characteristics that they have diversified agrarian practices which are characterized by widespread smallholder farmers who engage in traditional farming methods. For instance, the Indian smallholder farmers account for 78% of the overall farmers in the country and they barely own 33% of the total cultivated land. Nonetheless, their production reaches a high of 41% of the food grains in the country (Singh, Kumar and Woodhead, 1). This phenomenon is replicable in Kenya. In addition, these countries have a potential wide market for the equipment based on their demographic capacity and socio-economic foundations. On the other hand, all the above target countries are established agro-technology hubs in their specific regional blocks. For instance, Kenya is an imperative country in the greater Eastern Africa region in terms of agro-technological advancements and its fundamental role in the prospective popularity of the two wheel tractor seed drill in the entire region cannot be ignored. This is apparent in other target countries which will be integral in the marketing endeavors aimed at promoting this equipment. Moreover, in the recent decades, these countries have made important strides in their technological advancements, most notably in agriculture. Therefore, this equipment will come in handy in their efforts geared towards improving their agricultural capacity and attaining sustainable food security. Their stable geo-political environment will also be an added advantage towards this expansion. This is based on the background that countries with turbulent political environment tend to be limited in terms of opportunities and high in risks. The tenets of opportunity and risk are analyzed in the subsequent SWOT analysis. Opportunities and Risks Opportunities and risks are embedded in the SWOT (Strength, Weakness, Opportunity and Threat) tenets of strategic marketing in an organization. Al-Rousan and Qawasmeh defined SWOT analysis as the process through which the people making a decision develop their awareness of the environments of the organization aimed at influencing performance now and in the future (85). This practice is imperative in the sense that it assists the firm to develop an early alarming system that reflect on all the essential preparations before the emergence of a probable threat, and implement effective strategies to counteract those threats, reducing their negative impacts. The major opportunity is that John Deere, the Australian company which is intended to introduce the equipment into the market possesses very efficient distribution procedure in terms of fulfilling orders. This is based on their extensive experience in marketing farm equipment over the years. Against this background, the equipment will have a stable introductory platform to boost its penetration in the market. This will ensure that the product will reach the intended market at the right time and using effective channels. Another opportunity is that in most of these target countries, there is a market which is barely exploited in regard to seed drills which provides a perfect prospect for releasing the product into the global scale. The relatively high embrace of modern agro-technology in these countries provides an additional opportunity for conducting extensive marketing and promotion of the two wheel tractor seed drill in these regions. This will be pivotal in ensuring sustainable competitive advantage and attainment of a favorable niche in the market. Nonetheless, there are certain risks which might harm the entry strategy into the aforementioned locations. Firstly, technological rigidity in some regions may deter, albeit insignificantly, the introduction of this seed drill into the agricultural sectors. This is based on the background that some of the target users might reveal higher preference for their traditional farming methods as opposed to the new technology. This can pose a massive challenge to the acceptance of the equipment into the market. Secondly, lack of product knowledge in the smallholder market coupled with poorly organized private sector may obstruct the marketing endeavors of the introducing company. Smallholder farmers in these regions are ill equipped with modern technology in their farming practices due to breakdown of information dissemination mechanisms to the farmers, both by the private and the public sectors. Nonetheless, this risk can be effectively overcome through offering extensive workshops and training to the farmers on the advantages of the seed drill and its overall impact on their production capacity. Lack of effective distribution network in terms of rural retailers is another risk that might impede the penetration of the equipment in the target locations. This is founded on the background that these countries have ineffective distribution channels, mostly in the rural areas where majority of the smallholder farmers are located. In this regard, the supplying company will be obliged to devise an effective and efficient channel for distributing the seed drills into the unexploited market in the rural areas. Entry strategy It is worth noting that John Deere has extensive dealers who market their products in the target countries, for instance in Kenya, there is Terraspers and Tata Africa Holdings (Kenya) ltd while in India, there are dealers like Combined Automotives, Bhoomi Tractors Private Limited, State Farms Corporation of India Li, Shivneri Tractors among others. These dealers will be mandated with the role of introducing the two wheel tractor seed drill in the market courtesy of John Deere. The success of entry strategy for the seed drill for a two wheel tractor will be propelled by several tenets. Price reduction in order to penetrate the existing market: It is imperative to note that this equipment is relatively simple and cheap compared to other brands which exist in the target locations. Through the introduction of the product at a lower price than the pioneer suppliers, this will be fundamental in the effort to attract new customers, mostly those who would otherwise not have been in a position to procure the equipment. This will key in elevating the overall market. The prices that are reduced will also motivate the consumers to switch from the pioneer suppliers of other seed drill brands and opt for the much cheaper and effective two wheel tractor seed drill. It will also discourage the entrance of other players in the target locations which will be chief in ensuring that John Deere, who are the distributors of the two wheel tractor seed drill attain a favorable niche in the market. Targeting new markets at the regional level: This will be determined by the stability and sustainability of the market in the target countries and subsequently, efforts will be directed towards popularizing the equipment in the regional market. For instance, the stability of the Kenyan market will influence the endeavor to expand the market to the wider East African Community, most notably in more lucrative markets in Uganda, Tanzania, Rwanda and Burundi. This will also be replicable with the expected maturity of the Indian market. These emerging markets will be key in the expansion of the market for the two wheel tractor seed drill to the larger continental and global scale. Improving the equipment to suit the target location market. In this regard, the improvement will be geared towards innovating new features for the seed drill aimed at enhancing its functionality. This innovation will be incremental whereby the enhanced two wheel tractor seed drill will be suitably positioned to compete with other existing brands or alternatively, attract new customers in the medium and large scale farmers in the target locations. This will enable the penetration of the product in other prospective markets in the future that are not the current target for the present two wheel tractor seed drill. This improvement can also be instrumental in attracting smaller segment of the existing market. This is based on the fact that the market in the target locations is highly segmented due to topographic and environmental factors. In this regard, the improved two wheel tractor seed drill will be aimed at meeting the specific customers’ needs in these distinct locations. Developing a new distribution channel which will enhance better penetration of the two wheel tractor seed drill in the existing market or enable the entry into new markets: This will ensure that John Deere will not only focus on marketing the product in the target locations but will also be preoccupied with search for new markets. Apart from the previously mentioned John Deere dealers in Kenya and India, the company will target new retailers for the two wheel tractor seed drill mostly in the rural areas. This will increase the chances of its penetration in the emerging market as a result of heightening popularity and accessibility by the smallholder farmers in these regions. Timing of entry into new markets will also be crucial in determining the success of introducing the equipment. In this regard, John Deere Company ought to be conversant with the planting behaviors of smallholder farmers in Kenya and India based on the seasonal patterns. This is against the background that farming practices in these areas are determined by the rainfall patterns, and proper timing for the introduction of the equipment will determine its popularity. The effective application of all the above entry strategies will ensure that the two wheel tractor seed drill will be favorably positioned in the target location, even amid competition from other seed drills innovated for similar purposes. Modes of entry The mode of entry can basically be perceived as the channel that John Deere will employ in order to gain an entry into the international market, which will be paramount in determining the her success in foreign operations. The primary entry mode into India and Kenya will be a joint venture which will entail an agreement between John Deere and the local dealers situated in target countries mentioned in a preceding section. The major advantages of this entry mode are that John Deere will have adequate access and utility of the dealers’ knowledge of the local market. In addition, the company will have direct control over the local operations in both Kenya and India, thus enjoying an oversight niche. This entry mode can also be destined for extensive success since both parties are induced to perform as a result of the profit incentives. Nonetheless, this entry mode can be doomed to fail in case of unexpected conflict of interest between the parties. Moreover, it will limit the level of operations control by John Deere. Another alternative entry mode that John Deere can opt for is exportation. This will entail extensive coordination between John Deere, the importers, the Kenyan and Indian governments and the transport providers. In this regard, John Deere will go alone in the target market without engaging any local dealers and sell directly to either individual or collective importers. This entry mode will ensure that the seed drill will quickly reach the consumers as a result of limited intermediaries. It will also ensure that John Deere will exercise complete control over the production process and the product itself. In addition, the exportation ties will be chief in future expansion, either to market segments in the target location or in the regional scale. However, this entry mode is confronted with probable costs of trade barriers, for instance, quotas and tariffs. John Deere will also have an extended difficulty in accessing and responding to the changing needs of customers which can be triggered by market dynamics. These can impede future expansion and eventual loss of competitive advantage. John Deere Company need to assess the applicability of both entries and make a profound decision that suits the company’s marketing strategy and expansion strategies to the international market. Conclusion It is apparent from the above analysis that the two wheel tractor seed drill is endowed with high capability to penetrate into the global market after the intended introduction by John Deere Company. This will call for a profound analysis of both the opportunities and the risks in the target locations (India and Kenya) which will facilitate the formulation of an effective entry strategy. The mode of entry will also be vital in determining the success of introducing the two wheel tractor seed drill to the target location and any future emerging market. Works Cited Singh, R.B., Kumar, P. & Woodhead, T. Smallholder Farmers in India: Food Security and Agricultural Policy. Bangkok, Thailand: FAO Regional Office for Asia and the Pacific, 2002. Al-Rousan, M. & Qawasme, F. “The Impact of SWOT Analysis on Achieving a Competitive Advantage: Evidence from Jordanian Banking Industry”. International Bulletin of Business Administration, 243.6 (2009): 82-92. Read More