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Presentation Final

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Presentation Final

  1. 1. CAPITALISING ON OPPORTUNITIES TO INCREASE MINI TILLER SALES IN THE MID-HILLS By: Bikash Gubhaju Business Consultant
  2. 2. • OUT-MIGRATION • DECLINING OXEN POPULATION • LONG ‘WAITING LISTS’ FOR PLOUGHING SERVICES DURING FARMING SEASON • CHANGING ROLE OF WOMEN IN AGRICULTURE
  3. 3. 99% 95% 1% 5% 0 20 40 60 80 100 120 Hiring an oxen and driver becoming expensive? Finding a pair of oxen and driver when you want them getting difficult? N=100
  4. 4. THE OPPORTUNITY: MINI TILLERS ARE WELL-SUITED TO THE TOPOGRAPHICAL CONDITION OF THE HILLS • SMALL LAND HOLDING • PRECARIOUS TERRACES • SLOPED LANDHOLDINGS • EASE OF OPERABILITY
  5. 5. • % OF FARMERS NOT USING THEIR LAND FULLY DURING • DRY SEASON – 65% • RAINY SEASON – 20% • REASONS GIVEN • DRY SEASON: IRRIGATION PROBLEM – 95%; LACK OF FARM HANDS – 30%; UNAVAILABILITY OF OXEN – 6% • RAINY SEASON: LACK OF FARM HANDS – 60%; UNAVAILABILITY OF OXEN – 35%; IRRIGATION PROBLEM – 42%
  6. 6. Terai: Arable land: 1,397,716; Mechanized land: 61% Hills: Arable land: 1,038,615; Mechanized land: 15% Mountain: Arable land: 218,707; Mechanized land: 2%
  7. 7. Districts already using mini tillers
  8. 8. 80% 50%+
  9. 9. 650 800 1145 1400 1700 1985 0 500 1000 1500 2000 2500 2010 2011 2012 2013 2014 2015 Current and Projected Sales under current circumstances
  10. 10. DISCUSSION TOPIC WHY HAVE SALES BEEN SLOWER THAN EXPECTED? RESEARCH SHOWS THAT INTEREST HAS BEEN VERY HIGH BUT IT HASN’T CONVERTED INTO SALES?
  11. 11. • PREVAILING MYTHS CIRCULATING AMONG NON-USERS • UN-RELIABLE – 34% • CAN’T PLOUGH THROUGH STUBBORN PLANT ROOTS – 63% • PLOUGHS LESS QUICKLY THAN OXEN – 29% • NEGATIVE COMMENTS FROM USERS WHO HAVE STOPPED • 90% - DIFFICULT TO USE/HANDLE • 80% - REPAIR AND MAINTENANCE SERVICE UNAVAILABLE • CURRENT SALES DRIVEN BY COMMERCIAL POCKET FARMERS • 73% - SELF FINANCED • 27% - FROM LOANS OR BORROWINGS
  12. 12. 650 800 1145 1400 1700 1985 2400 4000 0 1000 2000 3000 4000 5000 2010 2011 2012 2013 2014 2015 Unlocking sales growth
  13. 13. VIEWS OF POTENTIAL CUSTOMERS… N =100
  14. 14. …COMPARED TO VIEWS OF ACTUAL USERS • 92% SAY IT IS LESS EXPENSIVE • 95% SAY IT IS MUCH MORE EFFICIENT • 94% ARE SATISFIED COMPARED TO PREVIOUS MEANS OF PREPARING LAND N = 100
  15. 15. PRE-SALES • INFORMATION AND MARKETING MUST ALTER CONSUMER PERCEPTION • DISPEL MYTHS • SHOWCASE OPPORTUNITIES FOR SERVICE PROVISION • INFORM BUYERS THAT THEY CAN EASILY RENT IT TO FELLOW FARMERS ONCE THEY ARE DONE WITH TILLING THEIR LAND • POSSIBLE TARGET CUSTOMERS • REMITTANCE RECEIVERS • MEMBERS OF SAVINGS GROUPS
  16. 16. CASE STUDY Mr. Bishal Pokharel, Farmer/Service Provider
  17. 17. SALES • BASIC USER AND MAINTENANCE TRAINING • INFORMATION ABOUT AVAILABLE ATTACHMENTS FOR DIFFERENT SOIL • PROVIDE SMALL GO-BAG WITH COMMONLY REQUIRED SPARES AND OILS • INFORMATION FOR REGULAR MAINTENANCE • EG. MINI TILLER SHOULD BE GIVEN A REST AFTER SO MANY HOURS OF USE. MOBIL NEEDS TO BE CHANGED AFTER USING FOR SO MANY HOURS. MINI TILLER CONSUMES SO MUCH FUEL IN AN HOUR IN AVERAGE. • STOCKING OF ADEQUATE FUEL DURING FARMING SEASON • FINANCING ARRANGEMENT FOR PEOPLE WHO MIGHT NEED IT • DEPOSIT CERTAIN AMOUNT AND REST CAN BE PAID IN INSTALLMENTS • PAYMENT IN INSTALLMENTS AND OWNERSHIP TRANSFER AFTER FULL PAYMENT IS RECEIVED
  18. 18. SERVICING PATTERN 7.3 36.6 31.7 7.3 17.1 0 5 10 15 20 25 30 35 40 <25 25 to 40 40 to 55 55 to 70 Only when it breaks down Hours
  19. 19. POST SALES DIFFICULTIES • REPAIR AND MAINTENANCE • 80% OF THOSE WHO STOPPED USING MINI-TILLERS, DID SO DUE TO UNAVAILABILITY OF REPAIR AND MAINTENANCE SERVICES • HIGH COST FOR SERVICING • 13.8% ARE NOT SATISFIED WITH TECHNICAL KNOW-HOW AMONG THE LOCAL MECHANICS. • 48.3% ARE NOT SATISFIED WITH SPARE PART AVAILABILITY • MOST OF THEM LEARNT ABOUT REPAIR AND MAINTENANCE ON THEIR OWN. • WHEN ASKED WHAT FACTORS ARE MOST IMPORTANT WHEN IT COMES TO BUYING A MINI TILLER – MOST COMMON FACTORS ARE RELATING TO AFTER SALES SERVICES.
  20. 20. POST SALES • RELIABLE REPAIR AND MAINTENANCE SERVICE • AVAILABILITY OF SPARE PARTS • ……
  21. 21. DISCUSSION TOPIC WHAT IS THE POTENTIAL FOR UNLOCKING GREATER SALES GROWTH THROUGH SMALL CHANGES IN PRE-/SALES/AFTER-SALES STRATEGIES (AND PRACTICE)?
  22. 22. RELATIONS WITH KEY PUBLIC SECTOR AGENCIES • DEVELOP COLLABORATIVE RELATIONSHIPS WITH DADO • PUBLIC SECTOR HAVE EFFECTIVELY BOUGHT A SMALL NUMBER OF MINI TILLERS FROM IMPORTERS AND SOLD THEM AT A SUBSIDIZED RATE TO FARMER GROUPS AND COOPERATIVE. • NUMBER OF THE RECIPIENTS OF MINI-TILLERS FROM GOVT SUBSIDY SCHEMES HAVE HAD PROBLEMS WITH THEIR PRODUCT WHICH MAY BE CORRELATED TO THE NEGATIVE WORD-OF-MOUNT EFFECT.
  23. 23. • OTHER AREAS OF COLLABORATION TO ACCELERATE SALES • SHARING OF FARMER/WOMEN/SAVINGS GROUP CONTACT INFORMATION SO MARKETING OFFICERS CAN GET STRAIGHT TO THOSE FARMERS WHO MAY HAVE POOLED SAVINGS AND A STRONGER NEED TO ACCESS ALTERNATIVES TO TRADITIONAL PLOUGHING METHODS. • MYTH-BUSTING CONSUMER EDUCATION • SPONSORED DEMONSTRATION EVENTS THROUGH DADO IN COLLABORATION WITH DEALERSHIPS – WILL SAVE ON MULTIPLE JOURNEYS TO THE FARM SITES BY MARKETING OFFICERS. • BUILDING MORE SOPHISTICATED CONSUMERS ABLE TO DEMAND GOOD AFTER SALES SERVICES FROM COMPANIES AND ASK THE RIGHT QUESTIONS OF DEALERSHIPS BEFORE PURCHASE.
  24. 24. HOW COULD IMPORTERS WORK TOGETHER WITH THE PUBLIC SECTOR? WHAT NEW ROLES MIGHT THE PUBLIC SECTOR PLAY TO SUPPORT YOUR COMPANIES? DISCUSSION POINT
  25. 25. User training on care and maintenance Investment in repairs Positive perceptions among potential Less breakdowns Improvement in sales
  26. 26. PLAN FOR THE SECOND EVENT • TO GO INTO MORE DETAIL ON SOME OF THE MORE SIGNIFICANT RECOMMENDATIONS ANNOUNCED TODAY • TO SHARE A HELPFUL ‘SELF-ASSESSMENT FRAMEWORK’ THAT WILL SUPPORT IMPORTERS AND DEALERSHIPS TO ASSESS THE STATE OF THEIR PRE-, SALES, AND POST-SALES STRATEGIES. • TO FACILITATE A DISCUSSION WITH PUBLIC SECTOR REPRESENTATIVES ON ‘COMPLEMENTARY ROLES FOR GOVERNMENT IN EXPANDING MINI-TILLER COVERAGE’.

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