Summit Agro Introducing New IT Technology Based On Taranis Technology In Russian Agriculture Market

Market Analysis of Russian Agriculture

Being a member of Sumi Agro Europe group of companies, the firm Summit Agro LLC provides all sorts of agriculture products including fertilizers, plant protectors, seeds and plant products to the people and companies those who are related with the agricultural field. The firm maintains their growth in the international market but to enhance their business growth as well as statistics they are going to introduce new IT technology based on the Taranis technology in the Russian agriculture market (TARANIS, 2019).

In today’s environment, the market is very complex and therefore with the help of this new technology they can enhance their business success rate and future profitability respectively. From the market analysis, it is seen that the Russian agriculture market generally needs high-quality agricultural products that can reduce the damage of crops and enhance their products for both commercial market and customer (????, 2019). The market analysis also shows that being a developing country Russia is rich in tradition and history and introducing the new technology can enhance their business growth more in comparison to the other country market. 

Russia belongs to a semi-presidential federation country that possesses wide president’s power and a Civil Law System. The Soviet Union take all the charges to maintain the involvement between the main government and the local or regional government (Davari Farid et al., 2018). Due to this aspect, the Summit Agro firm can get all support from the Russian government in introducing the new IT technology in their agriculture products. In other words, Russia maintains an open differentiation relationship strategy, and by this aspect, the country government provide all sorts of facilities to the new international company to innovate its business into higher level. Thus this country is chosen by the Summit Agro company in order to introduce their new technology on agricultural products.      

Russia is gaining economic strength at an estimated value of 3.19 trillion dollars by 2018. Due to this high economic growth Russia stand 10^th rank in GDP growth but the country depends on natural resources like gas and crude oil (Išorait?, 2016). From the GDP growth rate it is seen that the agriculture industry of Russia increases from 671.80 RUB billion in second quarter of 2018 to 1453.50 RUB billion in third quarter of 2018.  Russia, in other words, is considered to be the fourth largest agricultural producer in the world but they face tremendous challenges in maintaining their crops grow. For this reason, the new technology introduces by Summit Agro company provides the agricultural company the best solution by which they reduce the crops to be damaged. Hence economically both the agricultural industry and Summit Agro firm gets benefit after introducing this new IT technology of Taranis. Apart from this, as per the data of IT ratio in agriculture, Russia produce about 2.94 tonnes/hectare crop per year. Due to this reason the availability of arable land is reduced but proper planning has reduces the macroeconomic uncertainty conditions of the country.

Legislative System and Environmental Safety Procedure

The economic recession in 1990 converted the society from democratic structure to aristocratic structure, and thus discrimination between rich and poor people has been generated from that time. It creates a negative impact on the people of the society. Thus, for this reason, the Summit Agro firm introduce new IT technology in their agricultural products so that they can provide their goods at reasonable prices to both the consumers and commercial companies (Pham and Stack, 2018). Besides this, new technology will help the agricultural firms to enhance their production procedure, and thus they can improve their standard of living.

Russia is one of the leading countries in technology and space science, and they always advanced their technology in different fields. Heave it provides a positive impact on the business procedure of Summit Agro as they introduce new IT technology in their working procedure. Besides this, the Russian government provides all supports in enhancing the technological aspects of various companies including both local and international companies (Cavallo, Ferrari and Coccia, 2015). Therefore, proper funding help this Summit Agro company to introduce their technology in the business and gain high profit from the market.        

The legislative system of Russia is strong, and thus people can contact the court for any criminal activities. The rules and regulations of the judicial system can generate issues for this firm at the beginning of their business, but proper strategy enables them to easily manage the law and order system (Pham and Stack, 2018). The corruption rate is high in this country which can generate issue to the firm, but the government gives proper support that can diminish their issue.      

The Russian government takes effective measures to reduce the level of pollution and control human-made disasters. This environmental safety procedure helps the firm to introduce its IT technology without facing any difficulty. In other words, the current system makes effective rules and regulation which ensure the security and safety of the environment and control the carbon emission rate (Cavallo, Ferrari, and Coccia, 2015). Hence all these environmental legislative systems help the firm to enhance its business growth in this selected country market easily.       

After analyzing the market it is seen that three companies are present in Russia that can provide high competition to the Summit Agro LLC firm after the incorporation of IT procedure in the crop production process. The major competitors of this firm are Black Earth Farming, Razgulay and Sodrugestvo.

Business Strengths, Weaknesses, Opportunities and Threats

High Performers

Black Earth Farming

Crop protection products manufacture by using IT technology

Low performers

Razgulay

Crop protection products but become closed due to lack of strategy

Sodrugestvo

Environmental health and crop protection products

Incorporate IT technology but not successful in current days business environment   

Therefore, to maintain high competitive advantage it is necessary that the Summit Agro firm should use appropriate strategy for their business. 

The main aim of this Summit Agro firm is to provide high-quality agricultural products to the Russian market by using the new IT technology (Rialp-Criado and Rialp-Criado, 2018). The technology provides various benefits to the firm, and proper usage can enable them to enhance their business growth in the chosen Russian market where they will introduce their business. Thus the marketing objectives of the firm are given below:

Specific: To maintain positive, steady growth of the business by providing every agricultural crop related solutions for the consumers and agriculture crop supplier companies (????, 2019)

Measurable: To enhance the experience level of the consumer by giving all facilities related to crops health and thus maintain a long-term relationship with them

Achievable: To satisfy the market needs of the consumer as well as companies so that they can gain high competitive advantage in the selected Russian market          

Realistic: To generate high brand equity in the Farmer’s market as well as within the whole commercial industry market    

Time-bound: Summit Agro firm will be able to achieve its objectives within 1 year period by using new IT technology

The Summit Agro firm is going to introduce the new IT technology based on Taranis in the Russian market (????, 2019). Thus for selling their agricultural products, they have chosen two types of targeted consumer base from the Russian market of which one is  the individual consumer and the other one is the companies related to the agricultural industry.

Individual customers- This group of people are mainly farmers who use these newly based technological, agricultural products to cultivate various agricultural crops. After analyzing the market, it is seen that one of the major resources of Russia is agriculture (????, 2019). Therefore, to save crops from being damaged and to reduce the health issues of crops, farmer will easily buy this Summit Agro company’s agricultural products. The firm is already well established in the Russian market but with the innovation of their products range by introducing new IT technology based on the Taranis can create positive aspects over these selected consumer groups.

Targeted Two Types of Consumers from Russian Market

Apart from this, this consumer segment is targeted by this Summit Agro LLC firm because they are more interested in purchasing good quality agricultural products in order to save their crops from being damaged as well as infected from various crop related diseases (Išorait?, 2016). Thus with the help of this technology the firm can easily recognize the crop health issues by combing field imagery that provides three levels of satellite images. Hence by targeting this consumer group, Summit Agro firm can easily enhance their business growth and performance in the Russian market.

Companies related to agriculture in Russia- From the market analysis, it is evaluated that most of the companies in Russia are related to agriculture because it is one of the major sources of income for the Russian people. Thus this consumer group is targeted by this Summit Agro LLC firm. In order to be even more specific in this group, the firm targeted the supplier of these organizations so that they can purchase products from this Summit Agro firm who introduce new IT technology in their business operative procedure (Bamiatzi et al., 2016).

The agricultural organizations of Russia easily welcome any sorts of new technology related products because it helps them to enhance their brand awareness in the Russian market. In other words, by offering this type of products with newly invented technology can create a long-term relationship of Summit Agro firm with that of the other agricultural organizations present in this country (Bijman, 2016). Due to this reason, these particular consumer groups have been selected by this firm that can provide them huge benefit in the future days. 

Summit Agro LLC firm has been going to incorporate new IT technology in their products so that they can easily recognize crops health issues that may damage and infect regular crops. Thus for providing this high-quality services as well as products to their targeted consumer base, proper positioning strategy should be made by the management team of this firm. After reviewing the whole market, it is seen that FMC Corporation (FMC) is one of the main competitors of this firm (Bijman, 2016). The FMC is a chemical company that serves industrial, agricultural, consumer markets and environmental safety products across the whole nation. Hence they stand in a good position in the Australian market. Therefore, to maintain a highly competitive strategy, the positioning statement of this firm is to be flexible in the market by providing high-quality products that should be reliable for consumers.

In order to maintain this positioning statement, the main strategy of the firm will be to provide high-quality agricultural products that can make them as the finest producer of fertilizer, herbicides, insecticides, biological protection, and seed treatment firm among all the agriculture producing company in Russia (????, 2019). In other words, the marketing strategy will seek to create customer and company awareness regarding the goods offered, work together to build strong long-term relationships with the companies as well as the customer base. Besides this, the message of Summit Agro LLC firm will be communicated through several methods. The first method that should be used by the company in various sales promotion aspects. The sales promotions method will be considered as the financial incentives used by the firm in generating new consumers.  

The second method will be a phone based sales or networking campaign. With the help of this method, the Summit Agro firm can develop a long-term relationship with their targeted consumer base and hence it will lower the consumer conversion costs (Fuglie, 2016). Apart from this, the last method that should be used by this firm will be an advertising campaign. As the marketing budget of this firm is limited therefore they must be resourceful with their money. The advertising campaign will be cost effective but proper planning can help them to manage the budget in a perfect manner. In all these positioning strategies they will discuss their product differentiation aspect which means the goods can easily recognize crop that possesses health issues and hence it can reduce the damage and infection rate of crops (Dmitriev, 2018). Hence with the help of this product differentiation aspect, the firm will be successful in developing their particular position in this country market.   

From this positioning strategy and analysis it is clear that the firm supplies innovative as well as unique products to their consumers. The 4Ps analysis will help to determine this unique and innovative products of this firm.

The products of Summit Agro LLC are agricultural products such as herbicides, fertilizers, insecticides, biological protection, fungicides, seed treatment, special products, and acaricides. In order to understand the marketing mix, it is necessary for the firm to understand these products range. As all these products are related to agriculture therefore with the help of this newly introduced IT technology can help this firm to make the exact solutions that kill the insects and reduce the impact of damage or defected crops (Patti et al., 2017).

Summit Agro LLC is a well-known agricultural product producing company that has business in the international world. With the introduction of this new IT technology, the firm makes certain changes in their products prices, but all of these prices are reasonable for both the farmers as well as companies related to agricultural products (Benke and Tomkins, 2017). The legacy of 400 years and the quality of products allow them to follow such pricing strategy in the Russian market.   

The products of Summit Agro LLC firm are available all over the nation, and thus they can distribute their products in the whole of Russia (Lee, Kozlenkova and Palmatier, 2015). Becoming a well-known company, they have extensive retailer and dealer connections in Russia. With the help of these connections, they distribute their products to their targeted consumer base all over this country.

Summit Agro firm believe that products can only be attracted by the consumer when they will maintain a perfect promotional strategy to showcase their goods. After the introduction of new technology in their business operations, the firm will plan to promote its products in social media.                                                                

In order to achieve the marketing objectives as discussed earlier, it is necessary for the firm to make proper key operational marketing options for their business procedures. The marketing action plan should be based on the 4Ps marketing mix, and a brief discussion on this marketing mix are given below:

A product can only be attracted by a consumer when it has some differentiation aspect as a comparison to the other similar products in the market (????, 2019). Therefore, to differentiate these products from their earlier ones they are going to introduce new IT technology based on Taranis technology. With the help of this new technology, they can easily differentiate their products range from other similar products in the market.      

In order to increase the success rate of the organization, it is essential that the firm should build a proper pricing strategy. As the competition number is less for this firm so Summit Agro LLC will follow the non-price competition aspect in their marketing mix strategy. It is a strategy where the firm cannot change their prices whatever its competitor do with their products pricing. Therefore with the help of this strategy, they will manufacture all varieties of agricultural products with particular weight ranging from 100 Russian Rubble to 10050 Russian Ruble. For this different price range, all types of people can easily purchase their agricultural products.

The official distributors of this firm are Volga Federal District, Siberian Federal District, North Caucasus Federal District, Central Federal District, Southern Federal District and Northern Federal District (????, 2019). Apart from this, they have warehouses in all these districts. Thus will the help of these distribution channels the firm can easily supply their goods to their selected consumer base in the Russian market.        

With the help of social media, the Summit Agro firm can easily attract the agriculture crop supplier companies of Russia (Sarkar, Kundu and Chaudhuri, 2016). In other words, they can also promote their brands through a campaign where they gather several numbers of farmers and tell them the benefits of using these products apart from other company agricultural goods. Thus by following these two promotional platforms, the firm can gain huge success in this Russian market.     

Budget and marketing activity

Table 1: The marketing budget expense of Summit Agro LLC after incorporating the IT technology 

References 

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Benke, K. and Tomkins, B., 2017. Future food-production systems: vertical farming and controlled-environment agriculture. Sustainability: Science, Practice and Policy, 13(1), pp.13-26.

Bijman, J., 2016. Agricultural cooperatives and market orientation: A challenging combination?. Market Orientation(pp. 151-168). Routledge.

Cavallo, E., Ferrari, E. and Coccia, M., 2015. Likely technological trajectories in agricultural tractors by analyzing innovative attitudes of farmers. Int. J. Technology, Policy, and Management, 15(2), pp.158-177.

Davari Farid, R., Azizi, J., Allahyari, M.S., Damalas, C.A. and Sadeghpour, H., 2018. Marketing mix for the promotion of biological control among small-scale paddy farmers. International Journal of Pest Management, pp.1-7.

Dmitriev, A.L., 2018. Statistics Comes to Russia: Science, Quantitative Analysis, and Shifts in Economic Thinking. In Re-Examining the History of the Russian Economy (pp. 79-95). Palgrave Macmillan, Cham.

Fuglie, K., 2016. The growing role of the private sector in agricultural research and development worldwide. Global food security, 10, pp.29-38.

Išorait?, M., 2016. Marketing mix theoretical aspects. International journal of research granthaalayah, pp.2394-3629.

Lee, J.Y., Kozlenkova, I.V. and Palmatier, R.W., 2015. Structural marketing: Using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43(1), pp.73-99.

Patti, C.H., Hartley, S.W., van Dessel, M.M. and Baack, D.W., 2017. Improving integrated marketing communications practices: a comparison of objectives and results. Journal of marketing communications, 23(4), pp.351-370.

Pham, X. and Stack, M., 2018. How data analytics is transforming agriculture. Business Horizons, 61(1), pp.125-133.

Rialp-Criado, A. and Rialp-Criado, J., 2018. Examining the impact of managerial involvement with social media on exporting firm performance. International Business Review, 27(2), pp.355-366.

Sarkar, D.N., Kundu, K. and Chaudhuri, H.R., 2016. Conceptual expansion of the discipline of rural marketing: An objective analysis. Vision, 20(3), pp.169-183.

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