5 Key Takeaways for Agribusiness Professionals from Stratus Ag Research Report: Boosting Ag Retailer Success Through Manufacturer Support
Two weeks ago I emphasized the importance of the retailer when discussing consolidation implications in the world of crop inputs:
It’s often been said that the retail will go extinct, however, the retailer is the one with the farmer relationship which is a core component of staying power. The “last mile” is often the most difficult (financing, delivery, market nuance etc).
“Influence erosion” of the ag retailer is happening and challenging retail margins however, the grip that local retail agronomists and sales representatives have on farmer decisions remains strong.
Stratus Ag Research recently released a report titled Boosting Ag Retailer Success Through Manufacturer Support and there were five takeaways for me:
Key Takeaway #1: Design marketing campaign to drive the farmer to ask retailer about the product.
Key Takeaway #2: Print and direct media is continuing to be more effective than digital.
Ancillary takeaway: Opportunity to identify better digital channels for advertising.
Key Takeaways #3: Incentivize the retailer and give them effective collateral and confidence for engaging in a value-added discussion with farmers (eg: trial data, interactive tools etc)
Key Takeaway #4: Align sales representative resources to maximize revenue (marketing budget, grower reps and retail reps, account teams etc.)
Key Takeaway #5: If you are an agtech provider, there are learnings about go-to-market and focused efforts.
One point emphasized in the report was the importance of the retailer in driving farmer product usage with sales success doubling when a retailer recommends a product:
There is still a strong symbiosis of the retailer and the crop protection manufacturer, though with an improvement in sales success when marketing and recommendation occur in unison:
Unsurprisingly, an input manufacturer effectively collaborating with a retailer brings a 1 + 1 = 3 scenario to drive farmer product use.
Key Takeaway #1: Design marketing campaign to drive the farmer to ask retailer about the product and ensure constant retail engagement.
Key Takeaway #2: Print and direct media is continuing to be more effective than digital.
There is a larger influence on farmers through traditional advertising mediums when combined with retail contact to increase crop protection product use than any other form of ads: