Agriculture Reference
In-Depth Information
Table 8.1 Competitor strength and weakness analysis
COMPETITOR: Red River Tractor and Implement Company
DATE: January 15, 2012
COMPILED BY: Prairie Equipment Company
Strengths
1. New facility, large shop, impressive space for new and used equipment
2. Good location, conveniently located for area farmers
3. Large parts inventory
4. Quality “short lines,” good relationships with short-line manufacturers
5. Favorable credit program
6. Manufacturer-owned facility has sound fi nancial backing
Weaknesses
1. High overhead cost relative to Prairie View
2. No outside salespeople at this time, dependent on manufacturer reps for outside sales support
3. Poor on-farm repair service, not as responsive as growers demand
4. Major equipment line less popular locally than Prairie View offering
5. Manufacturer-owned store less fl exible to meet local needs
6. New manager not well known in the area
Strategy for Competing Against Red River
—Upgrade emergency farm repair vehicle and promote this service
—Lever all relevant national support programs available to Prairie View
—Promote local owner's long-term interest in community and understanding of local needs
—Hold open house to familiarize customers with our location
—Emphasize importance of dealing with a local business, keeping money in community
business, Prairie View has developed a strategy that emphasizes its local ownership and
fl exibility in servicing farmers.
Information on competitors can come from a variety of sources. A search of the Internet
will turn up a considerable amount of information on any major food or agricultural input
fi rm. Annual reports, SEC fi lings, company press releases, and speeches by company execu-
tives can all offer useful information. Information supplied by salespersons or dealers
can help keep tabs on what other fi rms are up to. Customers, industry experts, and other
players in the marketing channel can all help provide a more complete picture of competitor
activity.
The need for such information may seem so obvious to fi eld marketing people that this
exercise seems unnecessary. But formalizing it in this manner, discussing it thoroughly, and
developing a competitive strategy often improves communication, even in small fi rms,
and results in a more proactive approach to marketing decisions. When all signifi cant com-
petitors are analyzed periodically, there is a far greater likelihood that a logical marketing
plan will be developed and executed.
Tool for analyzing customer needs
The case for understanding customer needs has been made in Chapters 6 and 7. How do
agribusiness marketers learn what customers want from their fi rm? There are a variety of
tools available to the marketer to help them better understand the needs of their customers
and prospects. Some of the more important tools will be reviewed here.
 
 
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