Driving Sales and Profitability for a Domestic Agro Formulation Business

Food Consulting

Client Challenge

The top management at the domestic agro formulations division of a leading agrochemicals manufacturer in India felt that the organisation lacked a marketing outlook and that an opportunity to improve sales and profitability existed if initiatives could be taken in areas of distribution, marketing and promotion, and product portfolio management.

Our Approach

To identify improvement opportunities in the demand chain, define initiatives and implement the same, UC Strategy adopted the following approach:

  • Conducted primary research in 13 states, interacted with regional client personnel, met 202 client channel partners, 34 competitor channel partners and 57 farmers to understand the dynamics of industry
  • Evaluated and classified products in to ‘A’, ‘B’ and ‘C’ class based on sales volume, contribution and demand trend and defined product specific strategies; identified packaging problems and recommended improvements
  • Defined state specific initiatives for distribution penetration, depot location, territory management, product promotion and product pricing
  • Evaluated and classified all India channel partners based on operational and strategic parameters. Defined depot wise initiatives for rationalisation and appointment of channel partners
  • Designed the corporate profile and concept of the product booklet for the client. Standardised the promotion material for the entire product portfolio
  • Identified ‘Speed to Market’ and ‘Corporate Branding’ as the key initiatives for sustained growth

Our Impact

Significant increase in sales contribution from ‘A class’ channel partners from 53% of total sales to 65% and reduced dependency on ‘C class’ channel partners with sales contribution decreasing from 17% to 11%. 249 strategically important new channel partners were appointed and the division exceeded budgeted contribution levels at the end of the financial year.