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Oscillating nozzles
in Agriculture
Carlos Arregui
(Enrollment No: 376254)
Santiago Benítez
(Enrollment No: 377373)
Roberto Goñi
(Enrollment No: 377145)
Binayak Ghosh
(Enrollment No: 376609)
Fernando Olmedo
(Enrollment No: 375328)
Supervisor: Christian Orquera
Words: 4032
31-1-2016
~ 1 ~
CONTENTS
1. Introduction and description of the Challenge………………....…………2
2. Initial schedule for carrying out the project……………………..………...2
3. List of ideas we came up with……………………………………….……….3
3.1.Spray Dry Nozzle for Industrial Drying……………………………….……….4
3.2.Liquid mixer for spirits…………………………………………………….……..5
3.3.Nozzles for agriculture………………………………………………….………..5
4. Business plan…………………………………………………………………...5
4.1.The Product…………………………………………………………………6
4.2.Research in the agriculture……………………………………………………..7
4.3.Nozzle Market and competition……………………………………………..…11
4.3.1. Key competitors……………………………………..………………12
4.4.Nozzle Sales and Pricing………………………………………………………..14
4.4.1. Break-up of the pricing……………………………………….…..14
4.5.Estimating sales based on the Tractor market……………………………..15
4.6.Nozzle lifetime…………………………………………………………………….16
5. Conclusion……………………………………………………………………...16
6. List of figures…………………………………………………………………...17
7. List of tables………………………………………………………………….…17
8. Bibliography……………………………………………………………………..18
~ 2 ~
1- Introduction and description of the Challenge
Figure 1: Oscillator nozzle
The start-up Fluidic Dynamix is engaged in the design, development and
commercialization of fluidic devices, in particular oscillators, for industrial applications,
based on the self-created fluidic oscillators-technology platform[1]. They are working
currently in the automobile industry. The technical aspects of the device are not
explained because they are no important for the successful execution of the Challenge.
We had to propose a potential market to implant that technology. We made a business
research for different potential markets. In this report is described the way we had
proceed and the final idea followed by the business plan of this idea, which included
production, marketing and distribution channels.
In this report, we delineate the methods we followed to come up with the idea of the final
product, including some of the intermediate products that we had initially thought of but
subsequently rejected. The second part of the report depicts the business model we
have proposed for this product as well as a survey on the nozzle market, the potential
competitors and an estimated financial plan.
2- Initial schedule for carrying out the project
We had come up with a potential schedule for the upcoming 10 weeks which we
tried to follow while working on the project. This plan was followed more or less
perfectly, in case of the situation that we could not meet, we did video
conferences to talk and decide about how to proceed with the challenge.
- Week 0: Kick off meeting
- Week 1: Brain storming and researching of potential ideas/products.
Prepare a list of the ideas and consult with the company officials about the
list at the end of the week.
~ 3 ~
- Week 2: Setting up of the evaluation criteria (technical and economical)
and at the end of the week, preparing a Ranking of the business ideas by
rating criteria.
- Week 3: Pick the top 3 ideas and conduct a detailed description of the 3
new products and how we intended to produce it. In addition, we had to
describe the business model for the TOP 3 ideas.
- Week 4: Conducting a Market Analysis of the top 3business ideas
according to 4P’s Marketing factors: Product, Price, Place, Promotion
+competitive environment. Also to address the sales and marketing
strategy i.e. how we expected to approach potential customers in order to
raise an interest in our product or service.
- Week 5: Selection of the best business idea according to the strength of
the USP(Unique Selling Points).
- Weeks 6-10: Preparing the business plan.
3- List of ideas we came up with
The first step in order to proceed with FDX challenge was a brainstorming. The ideas
considered at the beginning are showed below:
- Agriculture field
- Fire extinguisher
- Fire alarm.
- Computer fans.
- Fan
- Cooking mixer/liquid mixer.
- Smoke machine
- Medical respirators using fluidic oscillators
- Swimming pools
- Painting field
- Snow cannon
- Industrial dryers
After conducting a small research on all the ideas, we finally decided on final eight ideas,
and from that, it was narrowed down to the top three. The final ranking is showed below.
The criteria considered are explained with more details:
~ 4 ~
- Solve a problem: Is there any problem in that field, which our product could solve?
- Attractiveness for the costumers.
- Independence: capacity to be independent of other company to reach the final
product.
- Technical complexity: how difficult it is to reach the final product.
- Market: Facility to get into the market.
- Monetary model: Size of the market.
Ranking of the Top 8 ideas:
Solve a
problem
Attractiveness
for the
costumers
Independence Technical
complexity
Getting
into the
market
Monetary
model
Total
score
Agriculture 2 1 1 2 2 3 11
Industrial
dryers
3 1 5 4 3 4 20
Fan 1 2 5 3 4 3 18
Liquid
mixer
2 4 5 5 3 2 21
Smoke
machine
1 5 4 5 2 2 19
Medical
respirators
4 1 5 3 1 4 18
Painting
field
4 1 3 2 2 4 16
Snow
cannons
3 1 1 1 2 2 10
Table 1: Ranking of ideas
From this list, it is clear that we had not thought of the idea for irrigation nozzles in the
first place. But, then after researching more into this field, we realized that this could be
a very good potential product and so, we included this idea into our final shortlist.
The final top three ideas:
3.1- Spray Dry Nozzle for Industrial Drying
Spray dry nozzles are some of the most used appliances in many of the Industries and
factories. The spray dry nozzles which are currently in the market use movable parts to
produce a jet of twisting and swirling air to dry excess liquid from substances. There are
many interchangeable swirls and orifice disks available for varying the flow rates of the
nozzles[2]
.
Our proposition is if it is possible to replace the 'swirl unit' of the nozzle by our technology,
we get rid of at least 50% of the moving parts inside the nozzle. This will be of immense
benefit to the industries also. It would be possible to produce the equal quality of spray
~ 5 ~
by replacing it with FDX technology, and also a better version of the drying would be
possible to get.
3.2- Liquid mixer for spirits
The basis of this idea was to replace the flow regulator on the mouth of the spirit bottles
with the fluidic oscillator, so that the spirit spreads helicoidally making a better
homogenous mixture. In the case of gin tonics, it is always useful to keep as much
bubbles as possible, but with the normal 'bar spoon' that is used nowadays, the
estimated CO2 is only 15.2% [3]
.
Our idea was to see if it was possible to regulate the amount of CO2, using the fluidic
oscillator. This product would be adjustable for different types of bottles, as well as more
fancy and cheaper than most of the similar standard products in the market.
3.3- Nozzles for agriculture
In the agriculture market there are several processes in which spreading liquids in an
efficient and well-distributed way is not irrelevant. One example is the distribution of
fertilizer and pesticides. For these processes, there is specific equipment available in the
market and, in order to make them more efficient, these equipment uses exchangeable
nozzles[4]
.
For agricultural purposes, there are several methods which are employed for the
distribution and spreading of fertilizers and pesticides. For these processes, there are
some specific equipment already available in the market, which mainly use
exchangeable nozzles[4]
. But in spite of using these nozzles, the distribution is not very
efficient.
Our goal is be to produce a nozzle compatible with the irrigation equipment that, with the
help of the fluidic oscillator technology, will improve the performance of these machines.
4- Business plan
In this section, we propose our final idea for the challenge as well as describe
a business model for the same product.
~ 6 ~
4.1- The Product
Here, we focus on an agricultural nozzle. So, first of all it is important to understand what
a nozzle is. A nozzle is a device designed to control the characteristics of a fluid flow as
it exits an enclosed chamber or pipe. Normally they are used in order to increase velocity.
A nozzle is often a pipe or tube of varying cross sectional area and the fluid modified can
be either liquid or gas. Nozzles are frequently used to control the rate of flow, speed,
direction, mass, shape and the pressure of the stream that emerges from them[5]
.
Figure 2: Normal nozzle Figure 3: Parts of the nozzle
In the agriculture field, several kind of nozzles are used. Mainly they are used for
irrigation and for spreading pesticides and fertilizers. As can be imagined, the benefits of
an accurate fertilizer distribution are really high. A good distribution means decreasing in
the environmental impact. The time and energy dedicated to it can decrease also.
Since it is a very important issue and even a little improvement could mean a really big
boost, the technology of oscillating nozzles that FDX produces is applied here.
Figure 4: Oscillation
~ 7 ~
As can be seen from the picture above, this nozzle introduces oscillation in the fluid
movement. This means that the fertilizer jet is not going to be totally straight, but is going
to be oscillating.
The drift is a very important concept when coming to the irrigation/fertilizer issue. But
what is it exactly? Drift is defined as the movement and deposition of particles through
the air to non-target locations. There are mainly two drift forms: particle drift which results
from droplets physically moving to non-target locations via air currents; and vapor drift
which results from the evaporation of the drops.[6]
In standard nozzles, sometimes due to more or less static flow, the drops fall on the
same place and on top of each other, which is quite disadvantageous, since the soil
needs some time to absorb the liquids. This is the point where our oscillator nozzle
improves this situation. This can be explained in the time spent between two subsequent
drops, so the soil is able to absorb the fertilizer in a better way. In other words, this nozzle
results in more efficient spreading of the fertilizer.
This oscillating nozzle also offers as a wide angle range of distribution, usually from 65º
to 110º, which is something missing from the standard ones. This is the same case with
regards to the pressure range. Pressure range and droplets size are usually related, the
optimal size ranging from 200 to 350 microns and the optimal pressure is around 40 psi.
These ranges can be reached with our proposed oscillating nozzles as well.[7]
4.2- Research in the agriculture
The goal of this part of the report is to get an idea of the agriculture market. We did a
research of the most important companies in the agriculture field. In our case, our product
would be implemented for improving the efficiency and reducing the consumption of
water.
The companies that we researched are:
John Deere:
Is an American corporation that manufactures
agricultural, construction, and forestry machinery,
diesel engines, drivetrains (axles, transmissions,
gearboxes) used in heavy equipment, and lawn care
equipment. In 2014, it was listed as 80th in
the Fortune 500 America's ranking and was ranked
307th in the Fortune Global 500 ranking in 2013.[8]
Figure 5: John Deere logo
~ 8 ~
Fendt:
Is a German manufacturer of agricultural tractors and
machines, manufacturing and marketing a full line of
tractors, combine harvesters and balers. It is part of
the AGCO Corporation. It was founded in 1937 by Xaver
Fendt and purchased by the AGCO Corporation in 1997.[9]
Figure 6: Fendt logo
Deutz-Fahr:
Deutz-Fahr was established in 1968, following the acquisition of the majority of share
capital in FAHR, a leading company already producing agricultural equipment in the
previous century, by the Klockner-Humboldt-Deutz AG (KHD) group. In 1995, Deutz-
Fahr joined the Italian Group SAME Lamborghini Hürlimann to become the SAME Deutz-
Fahr Group.[10]
Figure 7: Deutz-Fahr Logo
Case IH:
Case IH is a brand of agricultural. It was created in 1984
when Tenneco bought selected assets of the agricultural
division from International and merged it into its J.I. Case
Company. Today Case IH is owned by CNH Industrial,
which in turn is financially controlled by the Italian firm Fiat
Industrial.[11]
Figure 8: Case IH logo
New Holland:
Is a global brand of agricultural
machinery produced by CNH Industrial. New
Holland agricultural products include tractors,
combine harvesters, balers, forage harvesters, Figure 9: New Holland
self-propelled sprayers, logo haying tools, seeding equipment, hobby tractors, utility
vehicles and implements, as well as grape harvesters.[12]
~ 9 ~
The study has shown the following results:
The figure 10 shows the percentage of each company in the agriculture market delimited
in Germany. The figure 11 explains graphically the units of tractors sold during 2014.
Figure 10: Percent of the market
It is obvious that John Deere and Fendt have a huge part of this market, concretely a
third of it. Case IH, Deutz-Fahr and New Holland are sharing a bit less of a third of the
market. The rest is made up by a lot of small companies.
Figure 11: Sold units
The difference between John Deere and Fendt is more obvious in this graphic. John
Deere sells 4000 units per year more than Fendt.
Furthermore, the agriculture market companies are suffering an important decrease in
their revenues, reaching almost a negative change of a 10% with regard to the previous
year. As new investors in this market, some information is needed to get an overall idea
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
John Deere Fendt Case IH Deutz Fahr New Holland
19,40
17,1
10
9,6
8
35,9
John Deere
Fendt
Case IH
Deutz Fahr
New
Holland
Others
~ 10 ~
if the market is going to be worth it in the upcoming years and which reasons could be
in the origin of the change. After researching in the annual reports, the companies
provide some information to explain this drop.
This drop is explained mainly by the current economical situation, which is in a really
poor state. Due to this fact, the unfavorable foreign currency translation effect, with the
appreciation of the American dollar, is given as a crucial point. This factor decrease the
sales in foreign countries and decrease the shipment volumes.[13]
 SWOT (Strengths, Opportunities, Weaknesses & Threats) Analysis of the
companies:
- John Deere:
o Strengths and opportunities: biggest share of the market and units sold.
Headquarter in Mannheim. They produce their own quality nozzles, what
could be an opportunity for starting a partnership with them, as we could
implement our product directly with them.
o Weaknesses and threats: the company is decreasing hugely their revenues.
- Fendt:
o Strengths and opportunities: big share of the market and high amount of units
sold. German manufacturer (part of the group AGCO).
o Weaknesses and threats: the company is decreasing hugely their revenues
and it is smaller than John Deer. Most of their sales take part in the USA.
- Deutz-Fahr:
o Strengths and opportunities: headquarter in Germany (Lauingen). Most of the
production sites in Europe. Stable revenues, on the contrary than the rest of
the market. Most of their production is focus in tractors (70.76%).
o Weaknesses and threats: less capacity talking about share of the market and
therefore in the revenues,
- Case IH and New Holland (Group CHH):
o Strengths and opportunities: headquarter in Berlin. Big presence in the
market and revenues.
o Weaknesses and threats: high decrease of the revenues and wider range of
products (also in the construction market).
~ 11 ~
So as we could see, these are the potential partners for our product, with which we
should get in contact for selling and implanting the product.
After considering all the strengths and weaknesses of the potential partners, two
candidates stand out from the others. These are John Deere and Deutz-Fahr, and finally
the chosen one it has been John Deere. The determinant factor is the fact that they
produce their own nozzles, so this may help to implant our product and to simplify the
process, since they already have some background about nozzles.
 CONTACTS
For selling and implanting our product, contacting with the companies is basic. In our
case, we should get in contact with the department of innovation or the person in charge
of new relations and partnerships. This is mainly because our product would set a new
vision in the nozzle market and it would be interesting to implement a partnership with
the company. Some information is not given explicitly in the websites, but they usually
provide a contact part where we could establish contact with them:[14]
- John Deere:
o http://www.deere.de/de_DE/our_company/news_and_media/calendar_of_events/ca
lendar_ (Calendar event)
- Fendt:
o https://www.fendt.com/de/allgemeineanfrage_kontakt+faqs_kontakt+faqs.asp
- Deutz-Fahr:
o http://www.deutz-fahr.com/de-DE/kontakt/verkaufsberatung/angebot-anfordern
- CNH
o http://www.caseih.com/emea/de-de/service/kontakt (Case IH, contact us)
o http://agriculture1.newholland.com/eu/de-de/tools/kontaktieren-sie-uns/new-holland
(New Holland, contact us)
4.3- Nozzle Market and competition
In this section, we will describe the already existing market. In order to do this, on one
hand, we will examine its general aspects and in the other hand, we will analyze the main
enterprises in it. From these companies, we will describe the kind of organization they
are, their sizes, owners, if they are listed in any stock market and some of their financial
information. Anything that can give us a better understanding of how the market works.
The first thing to say about this market is that it is highly competitive. There are a big
number of manufactures. To have an idea, only in the Nozzle network co.[15]
, there are
33 listed manufacturers, from which at least 20 produce or have a subsidiary that
~ 12 ~
produces agricultural nozzles. Apart from these companies there are several others big
like Spraying Systems Co. which are not on the list.
Despite all of these, not all the producers are direct competitors between each other,
some of them focus in different locations and also, some on different products. In the
case of the location, it is possible to find companies like Lechler (Germany) or Greenleaf
(US) that are considered big producers in their own continents but not as well outside
[16]
. In terms of the different products the manufacturers can be split in two categories:
the ones that produce only basic and cheap nozzles and the ones that produce higher
performance nozzles.
The ones in this second group are our direct competition enterprises like Lechler Gmbh,
Teejet Technologies, Hardi, Hypro, (links) etc. They focus on producing high
performance nozzles with more specific technical aspects in order for each special type
and purpose. They produce nozzles that work in different pressure ranges, angles and
that produce different drop size. All these are in order to have the best product for each
process, each crop type and each crop’s growth stage.
Within these entities, the principal factor that has guided them is the reduction of drift. As
we already explained, reducing the drift has several advantages for the farmers, it makes
them save fertilizer and pesticides. Also in the US and the EU, there are several
regulations about the amount of drift that farmers can produce. Even, there are
governmental organizations that rank the nozzles according to the drift they produce[17]
.
This has pushed companies to constantly enhance their products.
Finally, we can say that the exact size of the market is uncertain. On one side, the big
number of enterprises could indicate a strong market but on the other, the revenues of
the big ones are around 5 – 95 million euros per year (see the table below) that, in
comparison with other markets, like the agriculture market is small. So, with the purpose
of providing a better understanding, in the following section, we will calculate some
indicators.
4.3.1 Key competitors
First, to have a general idea, we present a table of the biggest companies in the market
with some general and financial information:
~ 13 ~
Big players in the nozzle market
Company Country Headquarters
location
EBIT Employees Sales Products
Lechler Germany Baden-
Wurtemberg
680 95 Nozzles
Teejet tec. USA Wheaton 0,28 * 61 5* Agricultural
equipment
Hardy Denmark Taastrup 11,5 450 68,8 Industrial
Machinery
Hypro UK Manchester 3,2 42 12 Nozzles &
pumps
*Information only considering the Danish market. Table 2: Players in the nozzle market
Now let us describe in more detail two of these companies, in order to explain, why we
consider they are our key competitors.
Lechler GmbH
Lechler GmbH is a limited responsibility enterprise that was founded in 1879. The
complete company is owned by the Lechler family. It’s one of the biggest and more
prestigious companies in the market [18]
. It produces nozzles for different kinds of
application but in the agriculture market, it holds a really high position.
Lechler is probably our most direct competitor for three main reasons. First, it is located
in Germany: its headquarters and production plants are here and also around 63% of
their sales are in Germany [19]
. Secondly, it is one of the most prestigious brands in this
market, recommended by organizations and farm magazines [20]
. Finally, they produce
specific and good quality products. Unlike many companies in this business, Lechler are
more focused on performance than on a low price for their products. So in that sense,
our target customers overlap in regards to those who are willing to spend more in order
to get a higher quality product.
Teejet technologies
Spraying Systems Co. is one of the international leaders in nozzle production for many
industries (food, chemical, cleaning, etc.). Teejet is owned by this company and its
primary focus is on producing accessories for the agricultural equipment. It’s also one of
the most prestigious brands because of its product’s performance. Teejet is one of the
“big players” in this market but it’s production and sales are spread along the big markets
(USA, China, EU), unlike Lechler.
~ 14 ~
4.4- Nozzle Sales and Pricing
An initial survey on the nozzle market in Europe has revealed that there are many
companies manufacturing and selling nozzles for agricultural uses in Europe, the
foremost of which is Hardi International. Hardi is one of the biggest nozzle and
agricultural machinery manufacturers in the world, covering major portions of the market
in Europe as well as in USA. We did a research on the sales and revenue of Hardi for
the year 2014 focusing on Denmark. The statistics of the survey revealed the following
information:
2014 2013 2012
Net sales 546.856 569.598 623.956
GrossProfit 105.754 95.941 106.874
Result of theyear 68.853 39.333 27.625
Equity 385.797 346.110 350.039
Balance 613.827 537.354 563.284
in DKK In DKK In DKK
Table 3: Sales
The average price of each nozzle is approximately 100 DKK. Now wholesale prices is
usually half of the retail price, therefore the wholesale price comes out to be around 50
DKK. Keeping in mind the royalty and the overhead cost, the manufacturing cost comes
out to be around 4.5 DKK approximately, if around thousands of such nozzles are sold
as a whole.So, from the above statistics, we can deduce that the company sold
approximately 122,000 nozzles in the year of 2014 [21]
Thus, extrapolating from this data, we can assume that if we base the price of our nozzles
at around 60 cents average, we can expect more or less same type of sales and revenue
at around 73,200 Euros per year, with a fair margin for profit.
4.4.1- Break-up of the pricing
Maximum Retail
Price (in Euro)
Wholesaler Price
(in Euro)
Price at
production level
(in Euro)
Approx. number
of units to be sold
in 1 year
Estimated Yearly
Revenue (in
Euro)
12 6.70 0.60 122,000 73,200
Table 4: Prices
~ 15 ~
4.5- Estimating sales based on the Tractor market
We conducted a research on the Tractor market in Europe and created a statistical table
consisting of the main players in the market, and tabulated the number of units sold and
the revenue generated for the years 2014 and 2013.
Name of
Company
Share of the
market %
(Germany)
Units sold in
2014
(Germany)
Units sold
in 2014
(France)
Units sold
in 2014
(Italy)
Revenue
2014
(millions)
John Deere 19.4 6724 5239 4560 26380 $
Fendt 17.1 5906 4784 1738 9723.7 $
Case IH 10 3449 3189 1688 15204 $
DeutzFarh 9.6 3336 3104 1528 1210.214 $
New
Holland
8 2779 3075 1314 15204 $
Table 5: Sales of Tractors
From the above data, it can be seen that John Deere and Fendt have the lion's share of
the market in the three biggest countries of Europe, Germany, France and Italy. Our goal
is to have a liaison with one of these companies which will use our nozzles in their
tractors.
Usually for agriculture, the tractors are fitted with one nozzle to spread the fertilizer or
pesticide over the fields. So, we can consider that per tractor, we can sell around 10
nozzles as a whole, taking into consideration malfunction and wear and tear. Taking into
consideration, the number of units sold in Germany and assuming that all the tractors
have can be fitted with a nozzle, we can assume that we have to supply approximately
7000*10 or 70,000 units of our nozzles, per year, to one of the main companies like John
Deere, only in Germany.
Now, if we assume that we are keeping the base selling price for our nozzles to the
tractor company at 60 cents per piece, we can approximately earn (60*70,000) or 42,000
Euros per year from one company alone and only in Germany. From, this data, it can
also be possible to extrapolate the revenue earned to cover more or less the whole of
Europe.
4.6- Estimating sales from nozzle lifetime with regard to tractors
From a study conducted by the Utah State University Co-operative Extension, we can
get an idea of the life expectancies of the different types of nozzles [22]
.
~ 16 ~
Tip Material
Available
Manufacturer &
Order Number
Price of Nozzle
Cat. # PL-98C
Nozzle Life
Brass TeeJet
TP11004
$ 2.80 each I wear life
($ 2.80 @ wear life)
Polymer (plastic) TeeJet
XR11004YP
$ 2.07 each 2-3 times the life of brass
($ 2.80 @ wear life)
Stainless Steel TeeJet
XR11004VS
$ 4.95 each 4-6 times the life of brass
($ 2.80 @ wear life)
Stainless Steel-
Hardened
TeeJet
XR11004VH
$ 5.89 each 8-15 times the life of brass
($ 2.80 @ wear life)
Ceramic TeeJet
XR11004VK
$ 4.14 each 20-100 times the life of brass
($ 2.80 @ wear life)
Table 6: Nozzle Lifetime
From the data, it can be seen that if a normal lifetime of a brass nozzle is around two
years before they have to be replaced, then a plastic steel nozzle can be used for around
4 years. In hours, it can be stated that an average nozzle lifetime is around 50 hours.
The life expectancy of a tractor is around 2500 hours. So, it can be estimated that for an
average tractor, one would need 50 nozzles to last the entire tractor lifetime. Also, from
the sale of one tractor it can surmised that a revenue of (10*50*60 cents) = 300 Euros
can be estimated, during the entire tractor lifetime.
5- Conclusion
Finally, we can conclude that, this is a product that fulfills the main objectives that we
had to focus on for the challenge. The product adds a unique value proposition, it is easy
for the company FDX to produce it and Germany is a good place to start this business,
since mentioned in the market research, many of the main firms in the field are German.
All this, together with the innovation that can be offered, and the willingness towards this
innovation, that big enterprises seems to show, makes the product attractive for FDX.
Of course, there have been some difficulties during the process, specially at the
beginning, when we tried to understand exactly how the technology worked and the time
of choosing the definitive idea. But those momentary problems were solved among all of
us, and with the help of Mr. Orquera (FDX).
~ 17 ~
Finally, the idea and the process can be improved with more research and study. The
ideas, that were rejected, may also prove to be beneficial if one can delve deeper into
those.
6- List of figures
- Figure 1: Oscillator nozzle………………………………………………2
- Figure 2: Normal nozzle…………………………………………………6
- Figure 3: Parts of the nozzle…………………………………………….6
- Figure 4: Oscillation……………………………………………………...6
- Figure 5: John Deere logo……………………………………………....7
- Figure 6: Fendt logo……………………………………………………...8
- Figure 7: Deutz-Fahr logo……………………………………………….8
- Figure 8: Case IH logo………………………………………………...…8
- Figure 9: New Holland logo……………………………………………...8
- Figure 10: Percent of the market………………………………….…….9
- Figure 11: Sold units…………………………………………..………….9
7- List of tables
- Table 1: Ranking of ideas………………………………………………..4
- Table 2: Players in the nozzle market……………………………….…13
- Table 3: Sales…………………………………………………………….14
- Table 4: Prices…………………………………………………………....14
- Table 5: Sales of tractors………………………………………………..15
- Table 6: Nozzle lifetime…………………………………………………..16
~ 18 ~
8- Bibliography
[1] "FDX Fluid Dynamix." FDX Fluid Dynamix. N.p., n.d. Web.
[2] http://www.bete.com/pdfs/BETE_SprayDrying.pdf
[3] Wikipedia. Wikimedia Foundation N.p., n.d. Web.
[4] "Ag Professional." 10 Tips to Get the Most out of Your Sprayer. N.p., n.d.
[5] "Nozzle design (converging/diverging - CD nozzle)". NASA.gov. Retrieved 19
January 2009.
[6] T., and A User’S Guide To Spray Noz. A USER’S GUIDE TO SPRAY
NOZZLESHOW A USER’S GUIDE TO SPRAY NOZZLES IS
[7] "Ag Professional." Ag Professional. N.p., n.d. Web.
[8] "Deere & Company." - Wikipedia, La Enciclopedia Libre. N.p., n.d. Web.
[9] "AGCO GmbH." AGCO GmbH. N.p., n.d. Web.
[10] "Deutz-Fahr." - Wikipedia, La Enciclopedia Libre. N.p., n.d. Web.
[11] Wikipedia. Wikimedia Foundation, n.d. Web.
[12] Wikipedia. Wikimedia Foundation, n.d. Web.
[13] "Annual Report 2014." John Deere. N.p., 2014. Web.
"Annual Report 2014." Deutz-Fahr. N.p., 2014. Web.
"Annual Report 2014." Fendt. N.p., 2014. Web.
"Annual Report 2014." CNH. N.p., 2014. Web.
[14] Case IH. N.p., n.d. Web;
Deutz-Fahr. N.p., n.d. Web;
John Deere. N.p., n.d. Web.
[15] World Nozzle Manufacturer Directory. N.p., n.d.
[16] Green Leaf Offers Lechler’s Nozzles in U.S. and Canada. N.p., 22 Jan.
2016. Web.
[17] Lechler. N.p., n.d. Web.
~ 19 ~
[18] Lechler, Inc., Introduces New Spray Tip." Lechler, Inc., Intro... N.p., n.d.
[19] Lechler. N.p., n.d. Web.
[20] Ag Professional." Suggestions to Reduce Spray Drift. N.p., n.d.
[21] "HARDI INTERNATIONAL A/S." - Taastrup. N.p., n.d. Web.
[22] "Spray Nozzle Insert for Reducing Wear." Metal Finishing 94.9 (1996): 105.
Web.

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Oscillating nozzles improve agricultural efficiency

  • 1. Oscillating nozzles in Agriculture Carlos Arregui (Enrollment No: 376254) Santiago Benítez (Enrollment No: 377373) Roberto Goñi (Enrollment No: 377145) Binayak Ghosh (Enrollment No: 376609) Fernando Olmedo (Enrollment No: 375328) Supervisor: Christian Orquera Words: 4032 31-1-2016
  • 2. ~ 1 ~ CONTENTS 1. Introduction and description of the Challenge………………....…………2 2. Initial schedule for carrying out the project……………………..………...2 3. List of ideas we came up with……………………………………….……….3 3.1.Spray Dry Nozzle for Industrial Drying……………………………….……….4 3.2.Liquid mixer for spirits…………………………………………………….……..5 3.3.Nozzles for agriculture………………………………………………….………..5 4. Business plan…………………………………………………………………...5 4.1.The Product…………………………………………………………………6 4.2.Research in the agriculture……………………………………………………..7 4.3.Nozzle Market and competition……………………………………………..…11 4.3.1. Key competitors……………………………………..………………12 4.4.Nozzle Sales and Pricing………………………………………………………..14 4.4.1. Break-up of the pricing……………………………………….…..14 4.5.Estimating sales based on the Tractor market……………………………..15 4.6.Nozzle lifetime…………………………………………………………………….16 5. Conclusion……………………………………………………………………...16 6. List of figures…………………………………………………………………...17 7. List of tables………………………………………………………………….…17 8. Bibliography……………………………………………………………………..18
  • 3. ~ 2 ~ 1- Introduction and description of the Challenge Figure 1: Oscillator nozzle The start-up Fluidic Dynamix is engaged in the design, development and commercialization of fluidic devices, in particular oscillators, for industrial applications, based on the self-created fluidic oscillators-technology platform[1]. They are working currently in the automobile industry. The technical aspects of the device are not explained because they are no important for the successful execution of the Challenge. We had to propose a potential market to implant that technology. We made a business research for different potential markets. In this report is described the way we had proceed and the final idea followed by the business plan of this idea, which included production, marketing and distribution channels. In this report, we delineate the methods we followed to come up with the idea of the final product, including some of the intermediate products that we had initially thought of but subsequently rejected. The second part of the report depicts the business model we have proposed for this product as well as a survey on the nozzle market, the potential competitors and an estimated financial plan. 2- Initial schedule for carrying out the project We had come up with a potential schedule for the upcoming 10 weeks which we tried to follow while working on the project. This plan was followed more or less perfectly, in case of the situation that we could not meet, we did video conferences to talk and decide about how to proceed with the challenge. - Week 0: Kick off meeting - Week 1: Brain storming and researching of potential ideas/products. Prepare a list of the ideas and consult with the company officials about the list at the end of the week.
  • 4. ~ 3 ~ - Week 2: Setting up of the evaluation criteria (technical and economical) and at the end of the week, preparing a Ranking of the business ideas by rating criteria. - Week 3: Pick the top 3 ideas and conduct a detailed description of the 3 new products and how we intended to produce it. In addition, we had to describe the business model for the TOP 3 ideas. - Week 4: Conducting a Market Analysis of the top 3business ideas according to 4P’s Marketing factors: Product, Price, Place, Promotion +competitive environment. Also to address the sales and marketing strategy i.e. how we expected to approach potential customers in order to raise an interest in our product or service. - Week 5: Selection of the best business idea according to the strength of the USP(Unique Selling Points). - Weeks 6-10: Preparing the business plan. 3- List of ideas we came up with The first step in order to proceed with FDX challenge was a brainstorming. The ideas considered at the beginning are showed below: - Agriculture field - Fire extinguisher - Fire alarm. - Computer fans. - Fan - Cooking mixer/liquid mixer. - Smoke machine - Medical respirators using fluidic oscillators - Swimming pools - Painting field - Snow cannon - Industrial dryers After conducting a small research on all the ideas, we finally decided on final eight ideas, and from that, it was narrowed down to the top three. The final ranking is showed below. The criteria considered are explained with more details:
  • 5. ~ 4 ~ - Solve a problem: Is there any problem in that field, which our product could solve? - Attractiveness for the costumers. - Independence: capacity to be independent of other company to reach the final product. - Technical complexity: how difficult it is to reach the final product. - Market: Facility to get into the market. - Monetary model: Size of the market. Ranking of the Top 8 ideas: Solve a problem Attractiveness for the costumers Independence Technical complexity Getting into the market Monetary model Total score Agriculture 2 1 1 2 2 3 11 Industrial dryers 3 1 5 4 3 4 20 Fan 1 2 5 3 4 3 18 Liquid mixer 2 4 5 5 3 2 21 Smoke machine 1 5 4 5 2 2 19 Medical respirators 4 1 5 3 1 4 18 Painting field 4 1 3 2 2 4 16 Snow cannons 3 1 1 1 2 2 10 Table 1: Ranking of ideas From this list, it is clear that we had not thought of the idea for irrigation nozzles in the first place. But, then after researching more into this field, we realized that this could be a very good potential product and so, we included this idea into our final shortlist. The final top three ideas: 3.1- Spray Dry Nozzle for Industrial Drying Spray dry nozzles are some of the most used appliances in many of the Industries and factories. The spray dry nozzles which are currently in the market use movable parts to produce a jet of twisting and swirling air to dry excess liquid from substances. There are many interchangeable swirls and orifice disks available for varying the flow rates of the nozzles[2] . Our proposition is if it is possible to replace the 'swirl unit' of the nozzle by our technology, we get rid of at least 50% of the moving parts inside the nozzle. This will be of immense benefit to the industries also. It would be possible to produce the equal quality of spray
  • 6. ~ 5 ~ by replacing it with FDX technology, and also a better version of the drying would be possible to get. 3.2- Liquid mixer for spirits The basis of this idea was to replace the flow regulator on the mouth of the spirit bottles with the fluidic oscillator, so that the spirit spreads helicoidally making a better homogenous mixture. In the case of gin tonics, it is always useful to keep as much bubbles as possible, but with the normal 'bar spoon' that is used nowadays, the estimated CO2 is only 15.2% [3] . Our idea was to see if it was possible to regulate the amount of CO2, using the fluidic oscillator. This product would be adjustable for different types of bottles, as well as more fancy and cheaper than most of the similar standard products in the market. 3.3- Nozzles for agriculture In the agriculture market there are several processes in which spreading liquids in an efficient and well-distributed way is not irrelevant. One example is the distribution of fertilizer and pesticides. For these processes, there is specific equipment available in the market and, in order to make them more efficient, these equipment uses exchangeable nozzles[4] . For agricultural purposes, there are several methods which are employed for the distribution and spreading of fertilizers and pesticides. For these processes, there are some specific equipment already available in the market, which mainly use exchangeable nozzles[4] . But in spite of using these nozzles, the distribution is not very efficient. Our goal is be to produce a nozzle compatible with the irrigation equipment that, with the help of the fluidic oscillator technology, will improve the performance of these machines. 4- Business plan In this section, we propose our final idea for the challenge as well as describe a business model for the same product.
  • 7. ~ 6 ~ 4.1- The Product Here, we focus on an agricultural nozzle. So, first of all it is important to understand what a nozzle is. A nozzle is a device designed to control the characteristics of a fluid flow as it exits an enclosed chamber or pipe. Normally they are used in order to increase velocity. A nozzle is often a pipe or tube of varying cross sectional area and the fluid modified can be either liquid or gas. Nozzles are frequently used to control the rate of flow, speed, direction, mass, shape and the pressure of the stream that emerges from them[5] . Figure 2: Normal nozzle Figure 3: Parts of the nozzle In the agriculture field, several kind of nozzles are used. Mainly they are used for irrigation and for spreading pesticides and fertilizers. As can be imagined, the benefits of an accurate fertilizer distribution are really high. A good distribution means decreasing in the environmental impact. The time and energy dedicated to it can decrease also. Since it is a very important issue and even a little improvement could mean a really big boost, the technology of oscillating nozzles that FDX produces is applied here. Figure 4: Oscillation
  • 8. ~ 7 ~ As can be seen from the picture above, this nozzle introduces oscillation in the fluid movement. This means that the fertilizer jet is not going to be totally straight, but is going to be oscillating. The drift is a very important concept when coming to the irrigation/fertilizer issue. But what is it exactly? Drift is defined as the movement and deposition of particles through the air to non-target locations. There are mainly two drift forms: particle drift which results from droplets physically moving to non-target locations via air currents; and vapor drift which results from the evaporation of the drops.[6] In standard nozzles, sometimes due to more or less static flow, the drops fall on the same place and on top of each other, which is quite disadvantageous, since the soil needs some time to absorb the liquids. This is the point where our oscillator nozzle improves this situation. This can be explained in the time spent between two subsequent drops, so the soil is able to absorb the fertilizer in a better way. In other words, this nozzle results in more efficient spreading of the fertilizer. This oscillating nozzle also offers as a wide angle range of distribution, usually from 65º to 110º, which is something missing from the standard ones. This is the same case with regards to the pressure range. Pressure range and droplets size are usually related, the optimal size ranging from 200 to 350 microns and the optimal pressure is around 40 psi. These ranges can be reached with our proposed oscillating nozzles as well.[7] 4.2- Research in the agriculture The goal of this part of the report is to get an idea of the agriculture market. We did a research of the most important companies in the agriculture field. In our case, our product would be implemented for improving the efficiency and reducing the consumption of water. The companies that we researched are: John Deere: Is an American corporation that manufactures agricultural, construction, and forestry machinery, diesel engines, drivetrains (axles, transmissions, gearboxes) used in heavy equipment, and lawn care equipment. In 2014, it was listed as 80th in the Fortune 500 America's ranking and was ranked 307th in the Fortune Global 500 ranking in 2013.[8] Figure 5: John Deere logo
  • 9. ~ 8 ~ Fendt: Is a German manufacturer of agricultural tractors and machines, manufacturing and marketing a full line of tractors, combine harvesters and balers. It is part of the AGCO Corporation. It was founded in 1937 by Xaver Fendt and purchased by the AGCO Corporation in 1997.[9] Figure 6: Fendt logo Deutz-Fahr: Deutz-Fahr was established in 1968, following the acquisition of the majority of share capital in FAHR, a leading company already producing agricultural equipment in the previous century, by the Klockner-Humboldt-Deutz AG (KHD) group. In 1995, Deutz- Fahr joined the Italian Group SAME Lamborghini Hürlimann to become the SAME Deutz- Fahr Group.[10] Figure 7: Deutz-Fahr Logo Case IH: Case IH is a brand of agricultural. It was created in 1984 when Tenneco bought selected assets of the agricultural division from International and merged it into its J.I. Case Company. Today Case IH is owned by CNH Industrial, which in turn is financially controlled by the Italian firm Fiat Industrial.[11] Figure 8: Case IH logo New Holland: Is a global brand of agricultural machinery produced by CNH Industrial. New Holland agricultural products include tractors, combine harvesters, balers, forage harvesters, Figure 9: New Holland self-propelled sprayers, logo haying tools, seeding equipment, hobby tractors, utility vehicles and implements, as well as grape harvesters.[12]
  • 10. ~ 9 ~ The study has shown the following results: The figure 10 shows the percentage of each company in the agriculture market delimited in Germany. The figure 11 explains graphically the units of tractors sold during 2014. Figure 10: Percent of the market It is obvious that John Deere and Fendt have a huge part of this market, concretely a third of it. Case IH, Deutz-Fahr and New Holland are sharing a bit less of a third of the market. The rest is made up by a lot of small companies. Figure 11: Sold units The difference between John Deere and Fendt is more obvious in this graphic. John Deere sells 4000 units per year more than Fendt. Furthermore, the agriculture market companies are suffering an important decrease in their revenues, reaching almost a negative change of a 10% with regard to the previous year. As new investors in this market, some information is needed to get an overall idea 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 John Deere Fendt Case IH Deutz Fahr New Holland 19,40 17,1 10 9,6 8 35,9 John Deere Fendt Case IH Deutz Fahr New Holland Others
  • 11. ~ 10 ~ if the market is going to be worth it in the upcoming years and which reasons could be in the origin of the change. After researching in the annual reports, the companies provide some information to explain this drop. This drop is explained mainly by the current economical situation, which is in a really poor state. Due to this fact, the unfavorable foreign currency translation effect, with the appreciation of the American dollar, is given as a crucial point. This factor decrease the sales in foreign countries and decrease the shipment volumes.[13]  SWOT (Strengths, Opportunities, Weaknesses & Threats) Analysis of the companies: - John Deere: o Strengths and opportunities: biggest share of the market and units sold. Headquarter in Mannheim. They produce their own quality nozzles, what could be an opportunity for starting a partnership with them, as we could implement our product directly with them. o Weaknesses and threats: the company is decreasing hugely their revenues. - Fendt: o Strengths and opportunities: big share of the market and high amount of units sold. German manufacturer (part of the group AGCO). o Weaknesses and threats: the company is decreasing hugely their revenues and it is smaller than John Deer. Most of their sales take part in the USA. - Deutz-Fahr: o Strengths and opportunities: headquarter in Germany (Lauingen). Most of the production sites in Europe. Stable revenues, on the contrary than the rest of the market. Most of their production is focus in tractors (70.76%). o Weaknesses and threats: less capacity talking about share of the market and therefore in the revenues, - Case IH and New Holland (Group CHH): o Strengths and opportunities: headquarter in Berlin. Big presence in the market and revenues. o Weaknesses and threats: high decrease of the revenues and wider range of products (also in the construction market).
  • 12. ~ 11 ~ So as we could see, these are the potential partners for our product, with which we should get in contact for selling and implanting the product. After considering all the strengths and weaknesses of the potential partners, two candidates stand out from the others. These are John Deere and Deutz-Fahr, and finally the chosen one it has been John Deere. The determinant factor is the fact that they produce their own nozzles, so this may help to implant our product and to simplify the process, since they already have some background about nozzles.  CONTACTS For selling and implanting our product, contacting with the companies is basic. In our case, we should get in contact with the department of innovation or the person in charge of new relations and partnerships. This is mainly because our product would set a new vision in the nozzle market and it would be interesting to implement a partnership with the company. Some information is not given explicitly in the websites, but they usually provide a contact part where we could establish contact with them:[14] - John Deere: o http://www.deere.de/de_DE/our_company/news_and_media/calendar_of_events/ca lendar_ (Calendar event) - Fendt: o https://www.fendt.com/de/allgemeineanfrage_kontakt+faqs_kontakt+faqs.asp - Deutz-Fahr: o http://www.deutz-fahr.com/de-DE/kontakt/verkaufsberatung/angebot-anfordern - CNH o http://www.caseih.com/emea/de-de/service/kontakt (Case IH, contact us) o http://agriculture1.newholland.com/eu/de-de/tools/kontaktieren-sie-uns/new-holland (New Holland, contact us) 4.3- Nozzle Market and competition In this section, we will describe the already existing market. In order to do this, on one hand, we will examine its general aspects and in the other hand, we will analyze the main enterprises in it. From these companies, we will describe the kind of organization they are, their sizes, owners, if they are listed in any stock market and some of their financial information. Anything that can give us a better understanding of how the market works. The first thing to say about this market is that it is highly competitive. There are a big number of manufactures. To have an idea, only in the Nozzle network co.[15] , there are 33 listed manufacturers, from which at least 20 produce or have a subsidiary that
  • 13. ~ 12 ~ produces agricultural nozzles. Apart from these companies there are several others big like Spraying Systems Co. which are not on the list. Despite all of these, not all the producers are direct competitors between each other, some of them focus in different locations and also, some on different products. In the case of the location, it is possible to find companies like Lechler (Germany) or Greenleaf (US) that are considered big producers in their own continents but not as well outside [16] . In terms of the different products the manufacturers can be split in two categories: the ones that produce only basic and cheap nozzles and the ones that produce higher performance nozzles. The ones in this second group are our direct competition enterprises like Lechler Gmbh, Teejet Technologies, Hardi, Hypro, (links) etc. They focus on producing high performance nozzles with more specific technical aspects in order for each special type and purpose. They produce nozzles that work in different pressure ranges, angles and that produce different drop size. All these are in order to have the best product for each process, each crop type and each crop’s growth stage. Within these entities, the principal factor that has guided them is the reduction of drift. As we already explained, reducing the drift has several advantages for the farmers, it makes them save fertilizer and pesticides. Also in the US and the EU, there are several regulations about the amount of drift that farmers can produce. Even, there are governmental organizations that rank the nozzles according to the drift they produce[17] . This has pushed companies to constantly enhance their products. Finally, we can say that the exact size of the market is uncertain. On one side, the big number of enterprises could indicate a strong market but on the other, the revenues of the big ones are around 5 – 95 million euros per year (see the table below) that, in comparison with other markets, like the agriculture market is small. So, with the purpose of providing a better understanding, in the following section, we will calculate some indicators. 4.3.1 Key competitors First, to have a general idea, we present a table of the biggest companies in the market with some general and financial information:
  • 14. ~ 13 ~ Big players in the nozzle market Company Country Headquarters location EBIT Employees Sales Products Lechler Germany Baden- Wurtemberg 680 95 Nozzles Teejet tec. USA Wheaton 0,28 * 61 5* Agricultural equipment Hardy Denmark Taastrup 11,5 450 68,8 Industrial Machinery Hypro UK Manchester 3,2 42 12 Nozzles & pumps *Information only considering the Danish market. Table 2: Players in the nozzle market Now let us describe in more detail two of these companies, in order to explain, why we consider they are our key competitors. Lechler GmbH Lechler GmbH is a limited responsibility enterprise that was founded in 1879. The complete company is owned by the Lechler family. It’s one of the biggest and more prestigious companies in the market [18] . It produces nozzles for different kinds of application but in the agriculture market, it holds a really high position. Lechler is probably our most direct competitor for three main reasons. First, it is located in Germany: its headquarters and production plants are here and also around 63% of their sales are in Germany [19] . Secondly, it is one of the most prestigious brands in this market, recommended by organizations and farm magazines [20] . Finally, they produce specific and good quality products. Unlike many companies in this business, Lechler are more focused on performance than on a low price for their products. So in that sense, our target customers overlap in regards to those who are willing to spend more in order to get a higher quality product. Teejet technologies Spraying Systems Co. is one of the international leaders in nozzle production for many industries (food, chemical, cleaning, etc.). Teejet is owned by this company and its primary focus is on producing accessories for the agricultural equipment. It’s also one of the most prestigious brands because of its product’s performance. Teejet is one of the “big players” in this market but it’s production and sales are spread along the big markets (USA, China, EU), unlike Lechler.
  • 15. ~ 14 ~ 4.4- Nozzle Sales and Pricing An initial survey on the nozzle market in Europe has revealed that there are many companies manufacturing and selling nozzles for agricultural uses in Europe, the foremost of which is Hardi International. Hardi is one of the biggest nozzle and agricultural machinery manufacturers in the world, covering major portions of the market in Europe as well as in USA. We did a research on the sales and revenue of Hardi for the year 2014 focusing on Denmark. The statistics of the survey revealed the following information: 2014 2013 2012 Net sales 546.856 569.598 623.956 GrossProfit 105.754 95.941 106.874 Result of theyear 68.853 39.333 27.625 Equity 385.797 346.110 350.039 Balance 613.827 537.354 563.284 in DKK In DKK In DKK Table 3: Sales The average price of each nozzle is approximately 100 DKK. Now wholesale prices is usually half of the retail price, therefore the wholesale price comes out to be around 50 DKK. Keeping in mind the royalty and the overhead cost, the manufacturing cost comes out to be around 4.5 DKK approximately, if around thousands of such nozzles are sold as a whole.So, from the above statistics, we can deduce that the company sold approximately 122,000 nozzles in the year of 2014 [21] Thus, extrapolating from this data, we can assume that if we base the price of our nozzles at around 60 cents average, we can expect more or less same type of sales and revenue at around 73,200 Euros per year, with a fair margin for profit. 4.4.1- Break-up of the pricing Maximum Retail Price (in Euro) Wholesaler Price (in Euro) Price at production level (in Euro) Approx. number of units to be sold in 1 year Estimated Yearly Revenue (in Euro) 12 6.70 0.60 122,000 73,200 Table 4: Prices
  • 16. ~ 15 ~ 4.5- Estimating sales based on the Tractor market We conducted a research on the Tractor market in Europe and created a statistical table consisting of the main players in the market, and tabulated the number of units sold and the revenue generated for the years 2014 and 2013. Name of Company Share of the market % (Germany) Units sold in 2014 (Germany) Units sold in 2014 (France) Units sold in 2014 (Italy) Revenue 2014 (millions) John Deere 19.4 6724 5239 4560 26380 $ Fendt 17.1 5906 4784 1738 9723.7 $ Case IH 10 3449 3189 1688 15204 $ DeutzFarh 9.6 3336 3104 1528 1210.214 $ New Holland 8 2779 3075 1314 15204 $ Table 5: Sales of Tractors From the above data, it can be seen that John Deere and Fendt have the lion's share of the market in the three biggest countries of Europe, Germany, France and Italy. Our goal is to have a liaison with one of these companies which will use our nozzles in their tractors. Usually for agriculture, the tractors are fitted with one nozzle to spread the fertilizer or pesticide over the fields. So, we can consider that per tractor, we can sell around 10 nozzles as a whole, taking into consideration malfunction and wear and tear. Taking into consideration, the number of units sold in Germany and assuming that all the tractors have can be fitted with a nozzle, we can assume that we have to supply approximately 7000*10 or 70,000 units of our nozzles, per year, to one of the main companies like John Deere, only in Germany. Now, if we assume that we are keeping the base selling price for our nozzles to the tractor company at 60 cents per piece, we can approximately earn (60*70,000) or 42,000 Euros per year from one company alone and only in Germany. From, this data, it can also be possible to extrapolate the revenue earned to cover more or less the whole of Europe. 4.6- Estimating sales from nozzle lifetime with regard to tractors From a study conducted by the Utah State University Co-operative Extension, we can get an idea of the life expectancies of the different types of nozzles [22] .
  • 17. ~ 16 ~ Tip Material Available Manufacturer & Order Number Price of Nozzle Cat. # PL-98C Nozzle Life Brass TeeJet TP11004 $ 2.80 each I wear life ($ 2.80 @ wear life) Polymer (plastic) TeeJet XR11004YP $ 2.07 each 2-3 times the life of brass ($ 2.80 @ wear life) Stainless Steel TeeJet XR11004VS $ 4.95 each 4-6 times the life of brass ($ 2.80 @ wear life) Stainless Steel- Hardened TeeJet XR11004VH $ 5.89 each 8-15 times the life of brass ($ 2.80 @ wear life) Ceramic TeeJet XR11004VK $ 4.14 each 20-100 times the life of brass ($ 2.80 @ wear life) Table 6: Nozzle Lifetime From the data, it can be seen that if a normal lifetime of a brass nozzle is around two years before they have to be replaced, then a plastic steel nozzle can be used for around 4 years. In hours, it can be stated that an average nozzle lifetime is around 50 hours. The life expectancy of a tractor is around 2500 hours. So, it can be estimated that for an average tractor, one would need 50 nozzles to last the entire tractor lifetime. Also, from the sale of one tractor it can surmised that a revenue of (10*50*60 cents) = 300 Euros can be estimated, during the entire tractor lifetime. 5- Conclusion Finally, we can conclude that, this is a product that fulfills the main objectives that we had to focus on for the challenge. The product adds a unique value proposition, it is easy for the company FDX to produce it and Germany is a good place to start this business, since mentioned in the market research, many of the main firms in the field are German. All this, together with the innovation that can be offered, and the willingness towards this innovation, that big enterprises seems to show, makes the product attractive for FDX. Of course, there have been some difficulties during the process, specially at the beginning, when we tried to understand exactly how the technology worked and the time of choosing the definitive idea. But those momentary problems were solved among all of us, and with the help of Mr. Orquera (FDX).
  • 18. ~ 17 ~ Finally, the idea and the process can be improved with more research and study. The ideas, that were rejected, may also prove to be beneficial if one can delve deeper into those. 6- List of figures - Figure 1: Oscillator nozzle………………………………………………2 - Figure 2: Normal nozzle…………………………………………………6 - Figure 3: Parts of the nozzle…………………………………………….6 - Figure 4: Oscillation……………………………………………………...6 - Figure 5: John Deere logo……………………………………………....7 - Figure 6: Fendt logo……………………………………………………...8 - Figure 7: Deutz-Fahr logo……………………………………………….8 - Figure 8: Case IH logo………………………………………………...…8 - Figure 9: New Holland logo……………………………………………...8 - Figure 10: Percent of the market………………………………….…….9 - Figure 11: Sold units…………………………………………..………….9 7- List of tables - Table 1: Ranking of ideas………………………………………………..4 - Table 2: Players in the nozzle market……………………………….…13 - Table 3: Sales…………………………………………………………….14 - Table 4: Prices…………………………………………………………....14 - Table 5: Sales of tractors………………………………………………..15 - Table 6: Nozzle lifetime…………………………………………………..16
  • 19. ~ 18 ~ 8- Bibliography [1] "FDX Fluid Dynamix." FDX Fluid Dynamix. N.p., n.d. Web. [2] http://www.bete.com/pdfs/BETE_SprayDrying.pdf [3] Wikipedia. Wikimedia Foundation N.p., n.d. Web. [4] "Ag Professional." 10 Tips to Get the Most out of Your Sprayer. N.p., n.d. [5] "Nozzle design (converging/diverging - CD nozzle)". NASA.gov. Retrieved 19 January 2009. [6] T., and A User’S Guide To Spray Noz. A USER’S GUIDE TO SPRAY NOZZLESHOW A USER’S GUIDE TO SPRAY NOZZLES IS [7] "Ag Professional." Ag Professional. N.p., n.d. Web. [8] "Deere & Company." - Wikipedia, La Enciclopedia Libre. N.p., n.d. Web. [9] "AGCO GmbH." AGCO GmbH. N.p., n.d. Web. [10] "Deutz-Fahr." - Wikipedia, La Enciclopedia Libre. N.p., n.d. Web. [11] Wikipedia. Wikimedia Foundation, n.d. Web. [12] Wikipedia. Wikimedia Foundation, n.d. Web. [13] "Annual Report 2014." John Deere. N.p., 2014. Web. "Annual Report 2014." Deutz-Fahr. N.p., 2014. Web. "Annual Report 2014." Fendt. N.p., 2014. Web. "Annual Report 2014." CNH. N.p., 2014. Web. [14] Case IH. N.p., n.d. Web; Deutz-Fahr. N.p., n.d. Web; John Deere. N.p., n.d. Web. [15] World Nozzle Manufacturer Directory. N.p., n.d. [16] Green Leaf Offers Lechler’s Nozzles in U.S. and Canada. N.p., 22 Jan. 2016. Web. [17] Lechler. N.p., n.d. Web.
  • 20. ~ 19 ~ [18] Lechler, Inc., Introduces New Spray Tip." Lechler, Inc., Intro... N.p., n.d. [19] Lechler. N.p., n.d. Web. [20] Ag Professional." Suggestions to Reduce Spray Drift. N.p., n.d. [21] "HARDI INTERNATIONAL A/S." - Taastrup. N.p., n.d. Web. [22] "Spray Nozzle Insert for Reducing Wear." Metal Finishing 94.9 (1996): 105. Web.