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Kouros Brothers Ltd.
Market Analysis Summary
The overall market for agriculture machinery and implements is immense.
This business plan has identified over 1,800 agricultural producers and farmers in the local market that have a potential need to maintain and/or win customers or even more so are striving to survive. The funding schemes for agriculture and livestock support set by EU will allow them to stay competitive and this business opportunity is all about it.
Last week it was announced by the Ministry of Agriculture, Natural Resources and Environment that EU has available 256 million Euro for funding from 65%-80% of all units or producers intending to modernize and use technological advances in order to improve customers’ (Agriculture Producers’) product quality and to be able to export goods into European markets at competitive prices.
In reality, all agriculture and livestock businesses are in need of our products, because there are only 3 potential competitors locally who import or manufacture agricultural machinery and implements. Those involved with Potato mechanization have copied some of our unique series of products, whereas only 2 of them are involved with Cereal and Wheat implements. Kouros Brothers Ltd. has all machinery and implement series of equipments that will allow the Cypriot agriculturer and Livestock producer to stay competitive into European markets.
4.1 Market Segmentation
Our market segmentation scheme is fairly straightforward, and focuses on all agricultural and livestock sectors. The information contained in our customer analysis table is taken directly from the last statistics report published by the Ministry of Commerce and Industry and Tourism website and clearly shows that our largest market potential is more concentrated on the following sectors:
- Potato Crop Mechanization
- Cereals Crop Mechanization, including Wheat and Barley
- Vegetables crop Mechanization
- Packing Technology
- Livestock Machinery
- Beach Cleaning Machines and Beach Creation methodologies
- Fire Fighting Systems for rural areas
For more than 35 years, the company has owned almost 80% of the potato mechanization market. However, due to negative growth opportunities in this sector the last years, the prospects of this sector were unclear. Therefore, the company in order to survive has decided to invest in sectors such as new vegetable machine designs that will satisfy the vegetable producer needs (lower operational costs, low investment costs, simple machines, etc.) and also simultaneously through dealership of the main European agriculture machinery and implements manufacturers to become their sole agent and promoter in Cyprus and the Middle East area.
After 40 years of experience in agricultural machinery and implements manufacturing and design, the company has identified its strengths and weaknesses and has focused on vegetable, Cereals, Livestock and Beach Cleaning implements and technologies, allowing it to offer the same quality of service and support as are afforded by the larger businesses.
The strategy used for years was to bring in selected products, and then attempt to find a buyer. This resulted in inventory overstock, and obsolescence. The company already knows the customers’ needs and wants, therefore, as part of its marketing mix has decided to use the start up funding for buying a series of 6 main machinery that will have the most predicted demand and via marketing and promotion will try to promote its complete series of products.
After sales, services and spare parts provision to repeat customers is also part of our new Marketing strategy. The aim of the new marketing approach is to keep the existing customers and not to start building a new market share. Long-term relationships with customers is one of the key-success factors mentioned earlier and was one of the reasons that company survived and earned their business.
The company expects that by implementing a correct marketing mix, we will increase our share in this market segment by offering the same value-added service and support benefits that its commercial clients demand.
|Potato Crop Mechanization||2%||465||474||483||493||503||1.98%|
|Cereals Crop Mechanization||5%||370||389||408||428||449||4.96%|
|Vegetables Crop Mechanization||3%||175||180||185||191||197||3.00%|
|Beach Cleaning Machines and Beach Creation systems||2%||125||128||131||134||137||2.32%|
|Fire Fighting Systems||1%||280||283||286||289||292||1.05%|
|Packing Technology and Equipments||5%||180||189||198||208||218||4.90%|
4.2 Target Market Segment Strategy
Our choice of target markets is based on comprehensive experience within the agriculture industry coupled with an in-depth understanding of the customers’ needs for more than 40 years.
We have taken a unique approach to satisfy our customers needs and wants and also simultaneously to answer all their questions and to air their fears about the effectiveness and efficiency of our products. The company identified that only the on-site testing of the agriculture machinery in the customers’ fields could calm down even the most resistive and questionable customer.
The company cannot be successful by just waiting for the customer to come for ordering. Instead, we must focus on the specific market segments whose needs match more to our series of products. Focusing on targeted segments is the key to company’s future.
Therefore, the company’s focus and marketing message will be not only the customer needs but also the after service and spare parts services offered. A good marketing mix will develop company’s message, communicate it, and fulfill its commitment to excellence.
Developing a market strategy is a departure from the way the company has been managed in the past. We will change the paradigm of being a product- and price-focused sales organization, to that of becoming a customer- and market-focused organization, aiming in sharing responsibility for customer satisfaction. We will accomplish this paradigm shift through the implementation of a balanced and continuous market research for agriculture needs and technology demands.
Planning and implementing specific strategies for each of the seven identified segments will be an ongoing process, and we will will consult with marketing specialists, and our manufacturers, to further refine these efforts as we develop an effective marketing plan.
4.3 Competition and Buying Patterns
Our customers want equipment that works well. They are paying a great deal of their annual income to purchase a machine, and will not buy anything unless they have a clear demonstration that it works, or a recommendation about buying from another farmer they trust. The Cypriot farmer and agriculture producer is the last minute man. He plans to buy a machinery only when it is critical and necessary, and when he identify the need, he wants immediate delivery.
Kouros Brothers Ltd.’s closest competitors are located in Next Town, Other Town and Our Town. They include the following five companies:
- IJK. Ltd.
- UVX. Ltd
- ABC. Ltd
All above listed competitors are offering standardized agriculture forbidden and implements for the potato industry and only 2 seek to satisfy somehow other sectors of the agriculture and Livestock Industry.