Agriculture - Case study (part 2)

Market Research

As concluded in our last report, there are 4 key aspects triggering a constant decrease in our clients’ sales. The approach to these key aspects is to increase commercial activity and sales.

Our research continued focusing on some of the most consumed vegetables in Germany: potatoes, strawberry, cabbage, salat, asparagus and cucumber, identifying shrinking and growing markets.

Overview

Due to climate change, farms may lose productivity, and new fruits/vegetables may appear and compete against the traditional ones. Also, society is changing, newer generations are moving to urban sites, easing a land concentration in fewer farms.

Change of crops

As shown in the graphs analyzed by Ahead Analytics, nearly most of them have a decresa in the production over the last 20 years.

Basically, the geographic part where the vegetable itself was being harvested, is a key point to analyze for commercial purposes. Furthermore, a company with this analysis go ahead with the further steps: find commercial partners and focus on customer experience.

Conclusion

The agriculture industry is affected by many intangible aspects such as climate change or change in customers behavior. However, it is relevant to analyze the existing market and the main crops that are sold in the domestic market. Therefore, we can state that focusing on the customer (final and intermediary) should be the key aspect.


Agriculture - Case Study

Market Research

Markets Dynamics is about constant change in several directions: clients’ needs change, competitors move their offers, new technologies are created and new trends show up. In June 2020, we developed a market research for a mature market, Germany, focusing on fertilizers as the main product. The challenge: understand the market current trends and find new niche dealers to expand sales.

Overview

We concluded that there are 4 key aspects triggering a constant decrease in our clients’ sales: Climate change, Agritech solutions, Substitute products and change of consumer behaviors. The approach to these key aspects is to increase commercial activity and sales.

Climate change

The temperatures in Germany have had an important increase in the last couple of years. As we can see in the graphs, the last two years have been the hottest and driest in a 60 year timeline:

Companies considering adapting their existing strategies to climate changes, must change their mindset and start developing new products that may satisfy clients’ needs. In this project, the current climate evolution suggests that climate in Germany is going to get even more severe, hotter, and drier, resulting in decreasing planted surfaces.