The Incorporation of Western Faming and Technology in India - Essay Example

 The Incorporation of Western Faming and Technology in India 1. Concept Vickens Agricultural Technology Corporation is a newly established business in India that shall specialize in the provision of products and services to the Indian farmers. The company shall provide a computerized Greenhouse, sell fertilizers and provide technological crop protection to the customers. The computerized Greenhouse shall have an installed computer hardware and software that shall allow automatic control of fertilizer, greenhouse water and monitor the continuity of climate systems. The software experts employed by the Company shall maintain close contact with the farmers in providing the most advanced solutions to the farming problems. It shall also include the provision of the enhanced technological crop protection within the Vickens Greenhouses. Figure 1: Vickens Modern Computerized Greenhouse 1.1 Customer and Service Even though, other Israelite Agricultural technological companies have made entry into India to provide support in the farming of horticultural crops; they have only limited their services to Haryana and Maharashtra (Cohen 2011). Examining the current situation in India, most locations and farmers remain unaware of the current procedures and technology in agriculture practice. As such, Vickens Inc. targets to sell its product and services to the geographic, demographic, psychographic and behavioral segments of the market. The entire market segments shall benefit from the newly improved agricultural technological solutions provided by the company. 1.2 Marketing Niche The main reason besides the establishment of this new business is to fill the market niche that exists in the Indian Agricultural sector. Gallagher (2012) note that while the country is agriculturally driven the use of new and current technology has been limited. Most farmers in the country still adopt the traditional methods of farming that yields very little output to the farmers. The mission of Vickens Inc. is to provide the farmers with most current agricultural procedures and technology to increase productions of crops and generate increased revenues in return. This will be achieved through enhancing an eco-friendly environment that does not affect the lives of individuals. 2. Market 2.1 Customers With the e-Choupal initiative in India, a lot of information is available to the country’s farmers about the use of new technology in farming. Ideally, this forms a wider customer base for the Vickens Company products and service. The Company targets to sell its products to all the four market segments as proposed by Kerin (2006). In the geographic division, the organization aims to reach all the farmers within the Indian agricultural potential zones. In the demographic segment, the Company proposes to sell to agricultural occupation driven individuals who love to cultivate crops. Again, the business projects to reach the other companies that deal in commercial farming in the different parts of the country. On the other hand, the psychographic segment shall focus on farmers that like keeping with trends in agricultural practice. 2.2 Suppliers For this particular business, all the supplies shall come from Israel. According to Schemer (2011, the most advanced agricultural technological solutions are already established in Israel, and most companies are stable in the provision of the products that our company need to sell to the customers. India just being in the neighborhood of Israel, the supply costs are reduced thereby increasing profit margin to the enterprise. On the other hand, Israel is among the global producers of potassium nitrate and chloride, and this makes it quite easy to provide our customers with cheap fertilizers to maintain their crops in our provided Greenhouses. In view of this aspect, Vickens Inc. shall open tender for the provision of products from the most advanced agricultural firms already established in Israel. 2.3 Competitors The company faces direct competition from the already established agricultural technology solution in India such as the Giant Vingroup that has ventured in commercial farming in the country. Besides, the company may face indirect competition from the Indian government (Ministry of Agriculture, Department of Agriculture and Cooperation 2012). TheIndian Ministry of Agricultural that provides Greenhouses and improved agricultural extension services to the poor Indian farmers. 3. Product & Services More specifically, Vickens Inc. will be building a computerized modern Greenhouse to the Indian farmers who will be the customers to the organization. Within the Greenhouse, the company shall install computer hardware and software used to monitor crop growth under the needed climate conditions. In addition, it shall sell the seeds and fertilizer to the esteemed farmers. To ensure the farmers get good returns for investment in agriculture, the company shall provide management software experts to train each customer and provide a crop protection solution to the customers. More significantly, to gain the competitive edge in the Indian agricultural industry, Vickens shall provide its products and services at penetrating prices. The customers shall get value for their agricultural investments by the purchase of our products and services (Rugman 2009). Arguably, most clients in the market love affordable goods and services that create a difference in their lives. Most farmers in India are still poor and cannot afford to purchase the improved agricultural technological solutions provided by other companies. The company shall utilize the price advantage to gain market share after making entry to this industry Figure 1: Accrued benefit of Vickens products and services to the farmers 3. Risk Management Even though, this is a good project that will yield high revenue returns to the company; there exist some risks that may incapacitate the business to achieve its full potentiality. This may be in terms of provision of the products and services to the customers or just risks associated with the changes in the business environment (Sinha 2010). 4. Risk of high competition in the market Though, the business has identified gaps and niches to fill in the Indian agricultural industry, but there is the possibility of new companies making entry into this market thereby intensifying competition. This may reduce the purchase of our products and services by farmers. To deal with this risk, the Company plans to operate under a strategic plan that shall ensure spontaneous growth even under stiff competition in the market. The prices shall be reviewed continuously to match the customer satisfaction in the industry as well as the required values. Also, the company shall carry out an environmental scan to detect any element of competition threats to design strategies to mitigate their impact to the business. 4.1 Risk of change in technological advancement The business operates in a technological responsive industry that keeps changing every time. The modern provided computerized Greenhouse may become redundant after sometimes with the changes in the technological environment. The other customer provided services might also become irrelevant depending on the stage technology has taken. To deal with this risk, the business shall employ the technical experts that shall be responsible for tracking changes in the technological environment and implement newer versions of the agricultural techniques at the farm. Ideologically, this will ensure continuous support to the products and services provided by the company to the farmers. On the other hand, the company shall always carry out scientific researches to innovate the best agricultural technological solutions to improve value to its customers. 4.2 Risk of farmers failing to like Vickens’ products and services The foremost risk associated with this venture is that farmers may dislike the company’s products and services. Arguably, this may result from poor entry strategies in the Indian agricultural industry. Also, the pricing and installation of the warehouses could prove expensive to the poor farmers in the country (Sankaran 2008). To prevent this situation, the company will engage in marketing and promotion of its products and services to the broader base farmers in India. Besides, it shall partner with the Indian government to provide subsidies in the sale of its products and solutions to the agricultural driven poor farmers in the country. Arguably, this strategy could encourage even the poor farmers to purchase the products and solutions thereby realizing the profit benefits to the company. 5. Management of Sales operations The company shall establish branches in the different locations of the country where the products and services shall be available to the farmers. Each of the branches shall have a marketing team, computerized greenhouse built professionals who shall engage in building the greenhouses and fitting them with the necessary computer hardware and software. The marketing team will engage in sale and promotion of the company’s products and agricultural technological solution to the potential farmers (Siebet et al. 2010). 5.1 After sale services to the farmers After building and installation of the Greenhouses to the farmers, the software professionals will move around after every week to monitor the performance and the growth of crops within the warehouses. The farmers shall be trained on the technological solutions on how to manage the greenhouses and implement the crop protection procedures. This is to enable them get high-quality produce and improved quantity in their production. In fact, this is to make the customers get value for their investment in the company’s products through improved rate of returns. 6. Marketing the products and Services To reach the targeted farmers across India, the company shall adopt use various media to pass the information to the customers. Ideally, the channel of media applied shall generate customer awareness for our products and services. Again, the business shall carry out a promotion program after the inauguration of the company to start off the farmers in transacting with the company. 6.1 Promotion After inaugurating the business provision to the farmers, the company shall carry out a one week promotion whereby one lucky farmer through online registration with the company shall be provided with free built modern computerized warehouses with all other support services. This promotion shall once every year to encourage farmers to get involve in the purchase of the company’s products and services. In the broader angle, by the implementation of the most advanced technology in customer management success to Vickens Inc. shall ultimately come naturally (Sinha 2010). 6.2 Marketing Advertisements Vickens Inc. shall engage in advertisements for its new products and services to the farmers. This shall entail advertisements in both the print media as well as through the digital platform. Ideally, this is to ensure the information about the company’s products and services reach the highest number of farmers across different locations in India. This shall include; 6.2.1 TV ad Even though, it may be considered expensive to reach customers through Television ads, the company considers it the most effective in reaching the great number of farmers in India. To cut cost in this form of advertisement, the company plans to use the national TV station during peak-off hours to add their commercial advertisement. More significantly, the commercial ads shall make it clear to the farmers on the benefits of our business products and solutions (Zou & Fu 2011). Its affordability to the customers shall also be emphasized to make the customers automatically be moved with the products. 6.2.2 Print Media The company shall also utilize the print media in reaching the targeted farmers across the country. Through the use of magazines, newspapers and press release, the company shall explicitly communicate to the farmers about its provisions and products. Majorly, this focuses to reduce TV ads costs by reaching the broad base of consumers as projected by the organization. 6.3 Integrated Communication with the farmers With the advancement in technology, the digital platform has become the primary means of reaching the targeted customers. The company shall establish an accessible website where it will continuously interact with farmers in persuading them to buy its products and services. Integrated communication with the customers is one of the best means to capture the attention of the current trending customers. On the other hand, Vickens shall use the social networks to get access to the entire broader base of consumers. Through Facebook, Twitter, YouTube, Instagram, Google+, and PinInterest the company shall aggressively promotes its products and solutions to the Indian farmers (Ryan & Jones 2009). The use of this platform shall help the company to share relevant information regarding its products and services to the targeted consumers. 7. Financial projections 7.1 Sart up capital The company shall start up with a total of £1, 202,000 to cater for all the expert labor costs, marketing costs, purchase of premises and purchase of the needed products for the establishment of the company. The fixed costs shall consist of costs associated with building the computerized greenhouse to the customers plus the required computer hardware and software expenses. Again the professionals will be paid for their efforts, the supply of fertilizers and crop protection solutions shall accrue costs to the business. On the other hand, the registration process for the company shall also incur some costs. This capital shall come from the owners’ capital savings and also from bank loans. Figure 2: Financial Projections Overheads Projected costs (£) Labor 400,000 Products and solutions 400,000 Marketing 200,000 Administration 100,000 Mislenous expenditure 102,000 Projected Sales Computerized Greenhouse 1,000,000 Sales of fertilizers & Seeds 2,000,000 Provision of crop protection 2,000,000 Provision of solutions 500,000 Total Sales 3,500,000 Total costs and expenses 1,202,000 Projected annual gross profit 2,298,000 8. Appendix 8.1 Marketing Map 8.2 Risk of new competitors in the market List of References Advertisement. (n.d.). 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