Opportunities with higher margins 

The company produces and sells agricultural products. The clientele traditionally consists of small and medium-sized farms. Sales is organized via several stages in selected European countries. The marketing tools are "old school": brochures and website.

Objective:
The company has set itself the goal to increase in the target areas of sales and earnings significantly.

Challenge
Agricultural products are commodity with marginal differentiation potential. The sales are strictly regulated. Prices increases would not be affordable.

Approach
The product range will be extended in two directions.

  1. Firstly, the company is positioned based on the traditional product range in the profitable field of solution providers. By value added services, additional revenues are generated as well as higher margins on existing customers. We refer to this segment as the “high users” segment. It starts with consultation and ends with complete outsourcing.
  1. At the same time, in terms of “yield management,” a so called “traditional low cost user market”  is opened. The company-offer will be, according to the study, more price competitive by eliminating extras services not valuable for this client segment.  
    Also here Sano manages to earn a reasonable profit margin.
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