Plant Nutrients Inc
Recommendation Plant Nutrients Inc. (PNI) is operating in an industry requiring constant innovation in order to combat declining prices. In the case of PNI, it is critical that Brian Dunwoodie acknowledge where the company’s competitive advantage lies, and continue to leverage PNI’s ability to sell to small farms well. PNI should incorporate a seed business into its current business model through a strategic partnership with Larson Seeds, giving PNI the ability to offer a complete agronomic input package. The addition of a seed business will position PNI for continued success with small farms, as well as provide a tool to grow their business with medium farms, which account for the majority of crop production in PNI’s market area. This decision satisfies the performance standards set by Plant Nutrients International, the parent company, of 2% yearly sales growth and a 13% ROI (See Ex.3 for projected financial performance).
Support For Recommendation Increased Value To Small- And Medium-Sized Customers Despite the fact that competing seed suppliers currently operate in the Lancaster region, several farmers have expressed concern around both the level of service, and the prices currently being offered. PNI’s ability to now offer a complete, bundled agronomic input solution is attractive to small and medium farms, as this will allow for a single, more competitive price than if each service were to be purchased individually. In terms of service quality, an opportunity exists for PNI to leverage their established reputation to capture dissatisfied seed-buyers, while retaining those who currently purchase from Larson. Advertising spend will be increased, and allocated in a way that will provide the sales force with the resources needed to continue to satisfy small farms, while capturing more medium farms. It is expected PNI will serve 84% of small, 14% of medium, and 2% of large-sized farms in 1999 as a result
Support For Recommendation Increased Value To Small- And Medium-Sized Customers Despite the fact that competing seed suppliers currently operate in the Lancaster region, several farmers have expressed concern around both the level of service, and the prices currently being offered. PNI’s ability to now offer a complete, bundled agronomic input solution is attractive to small and medium farms, as this will allow for a single, more competitive price than if each service were to be purchased individually. In terms of service quality, an opportunity exists for PNI to leverage their established reputation to capture dissatisfied seed-buyers, while retaining those who currently purchase from Larson. Advertising spend will be increased, and allocated in a way that will provide the sales force with the resources needed to continue to satisfy small farms, while capturing more medium farms. It is expected PNI will serve 84% of small, 14% of medium, and 2% of large-sized farms in 1999 as a result