FARM ELECTRONICS: THE

BUSINESS-TO-BUSINESS
MARKETING DILEMMA

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Group-06

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Sumana Priya (041)
Ganesh Rathod (037)

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Puneet Kakkar (034)

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Abhishek Parate (033)
Kabir Saharan (021)

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Akhil Choudhary (005)
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 5Cs Analysis
Competitor
• Large electrical equipment manufacturer

3rd • Several Vendors having similar product

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2nd • MNCs, Industry system electrical Collaborators

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equipment manufacturer • Ecommerce platforms such as
• Small to major business with varying
4th amazon, Flipkart, government

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structure and scales. eMarket place
• PSUs • Local Suppliers for source of raw

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materials

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Company
• Farm Electronics was sub-vendor of

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electrical and electronic equipment
Context
1st manufacturer with strong relations with

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existing customers. • Acquiring new customers was challenging
• Company was capable of customizing • B2B market for electrical equipment was
highly competitive as many large and small

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product portfolio
manufacturers were present
• Company’s product portfolio included
Transformer, Relay coil, power supply, DC co rc
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 Decision Problem
Whether Farm Electronics should work on acquiring more customers or
diversify it’s product portfolio to sell these products to existing customers

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Framework Used: Ansoff Matrix

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Alternative 1: Explore new market with existing product

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(Market Development)

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Alternative 2: Explore new market with existing as well

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as new product. (Diversification)

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Alternative 3: Sell new as well as existing products to

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existing customers (Product Development)

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 Evaluation of Alternative

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Parameters Alternative 1 Alternative 2 Alternative 3

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Cost Medium Very High (Acquisition High (Product+Retention)

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(Acquisition) + Product)

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Customer Potential Medium Medium to high High because of good
because of competition relationship with big

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but also potential to accounts who require more

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expand to different products.
geography

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Process Time Medium High (New Product + Low (only Product

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(Acquisition) Acquisition) development)
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 Recommended Action
• We would recommend them to initially start with alternative 3 because
of the better potential ROI.

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• Instead of thinking “We have this product, now how many customer can
we sell it to?”, they should think “We have these customers, how many

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products can we will sell it to them?”

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• 75% of their revenue was coming from big existing customers who may
require more variety of products

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• Selling new product to existing customers will also help in getting the
response (and the potential problems) of new product as a test or pilot

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project. Based on the this response, company can further think of
entering the new market at a later stage. Alternative 2
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 Handling the Negatives

Too much reliance on very small pool of existing customers (75% revenue from

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only 2 large customers). This can be overcome by:

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1. Understanding the requirements of other 25% and develop products well suited

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for them.
2. Focus on the needs of A and C type of customers because of enormous potential

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3. Become direct supplier to PSUs instead of being sub-vendor

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4. Offer low cost, small product life cycle products on ecommerce to have an
alternative revenue stream

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5. Directly list existing products on platforms like India-mart and supply according to

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the order (saving on acquisition cost) and retain if potential big client.
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 THANK YOU

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