BtoB marketing case study: Agricola

Résumé du document

Agricola is a medium sized company, which specializes in agricultural equipment. It is also active internationally. However, Agricola does not have any knowledge in electronic and electromechanical technologies. When launching its new product, ENSILOR, the R&D department noticed that the new machines should have electronic and electromechanical components. These components can be supplied by Componit. This lack of knowledge in technology can have several bad effects on the transaction between Agricola and Componit. Agricola may not be able to define precisely what it needs because it has never used this kind of technology before. They are liable to make a mistake when they ask something of Componit. Moreover, the transaction could put Agricola in a weaker position than Componit because the latter is the expert in the technology and can sell the products at a higher price, especially because Agricola is not used to purchasing this kind of technology. Finally, even if Agricola manages to buy the products it needs from Componit, it will have difficulty managing the technology needed in producing ENSILOR. Indeed, if nobody in the company is used to using the technology, nobody can fix the problems the machines may develop.

Extraits

[...] This lack of knowledge in the technology can have several bad effects on the transaction between Agricola and Componit. Indeed, Agricola may not be able to define what it exactly needs because it has never used this kind of technology before: they can make a mistake when they ask something to Componit. Moreover, the transaction could be put Agricola in a weaker position than Componit because the latest is the expert in the technology and they can sell the products at a higher price, especially because Agricola is not used to purchasing this kind of technology. [...]

[...] In terms of suppliers, more knowledge about the supplier market is a must to increase the bargaining power (for Agricola). Good relationship with supplier(s) will also help reduce the risks in the purchasing part. No technical knowledge in the technology needed: difficulty in defining its own needs No existing technology: Agricola is not used to purchasing this kind of product No expert in this technology: difficulty in managing it Agricola is a medium sized company specialized in agricultural equipment. It is active internationally, however, Agricola does not have any knowledge in electronic and electromechanical technologies. [...]

[...] Indeed, sales are highly seasonal so the level of work is going to fluctuate during the year. The supplier can be able to adapt its offer. Moreover, we have to talk about the quality risks, there is always a quality risk when you work with a new supplier but in the case AGRICOLA has to take care of this risk. Indeed, AGRICOLA has a trust relationship with the farmers and can't disappoint them. < number > To know the suppliers' market To chose a supplier with a geographic proximity Explain clearly what you are expecting In the case, AGRICOLA has contacted COMPONIT after having studied the suppliers' market. [...]

[...] Another point in this case is that AGRICOLA insists on choosing a supplier with a geographic proximity to facilitate the transaction. It is not always profitable for a firm. But it that case it is and it can reduce delivery risks because it is easier to transport the products. To finish, the best way not to have bad surprises with delivery is the communication between the customer and the supplier. AGRICOLA has to explain what it is waiting for and its exigencies. But the suppliers has an important role. [...]

[...] I think it is very important to notice it because it is the first time that AGRICOLA and COMPONIT have worked together. A relationship between a customer and a supplier needs confidence and a confidence relationship can be built with time. That means that the delivery risks decrease with the time. In that case, we have crucial stakes with delivery risks. Indeed, any delay in production have a bad impact on sales: « AGRICOLA can even miss a year. » So, the delivery time has to be respected but also flexibility. [...]