Report: Low bush Blueberry Moisture Sensor
Executive summary
This report is a full marketing analysis for the Low bush blueberry moisture sensor, a product developed to effectively predict the risk of monilinia infection in the blueberry fields. The equipment was developed by a team of agricultural researchers with the aim of creating a solution to this problem. Low bush blueberry moisture sensor functions with an algorithm that precisely shows the risk of infection or the state of infection. The moisture sensor helps to capture the wetness in the environment thus detecting potential risk of infection. The need to analyze the product’s prospects has been brought about the opportunity it offers and the need for the company to increase its revenue base after experiencing a downward trend in revenue and profits. Low bush blueberry moisture sensor is a high tech product but the company has hardly engaged in manufacture of high tech products. The desperate need for the company to make a turnaround in sales is seen as a drive to be innovative and to come up with competitive products that can be sustained in the market for longer periods.
The report will define the market of the business, compare and analyze its primary competitors, the market size, market growth, customer profile and location of the business and its competitors. The report covers the marketing plan that would explain comprehensively the competitive advantage of the business, the pricing of the products and services, distribution channels, promotional plan and feedback system. In addition, the report details the different types of management for the various business areas like:
- Product and brand management – this will introduce the product/s of the new product start-up and how the company would be able to manage its branding strategy so that it will create a reputation.
- Distribution management – this part, explains the various channels of how the product will be availed by the customers and potential targeted audience.
- Implementation and control – this is an important area of the business because it will ensure the success of the business operations.
Identification of the market need
The commercial production of low bush blueberry in Maine, US and Quebec, Canada, faces the risk of significant economic loss due to its susceptibility to the fungal disease, Monilinia blight. Farmers end up making loses because of failure to effectively maximize on their yield. Maine produces approximately 25 percent of all the wild blueberries in North America while Canada leads by producing the largest quantity of the blueberries in the region. The low bush blueberries alongside the high bush blueberries account for the highest Canadian export of fruit crops produced. Lowbush blueberries are high value crops within the Atlantic region. However, the quality and production of the yield faces the risk of Monilinia, which tends to limit the levels of production and quality.
Size of market
The apparatus is expected to attract farmers and manufacturers from the greater Atlantic region. Manufacturing is a growing sector in Maine and it accounts for 11 percent of the state’s total output. The sector has been rising in the past decade except during the recession when it experienced a slight downfall. The manufacturing industry in Quebec also shows a growing trend. It contributes to more than a quarter of Canada’s manufacturing output.
Blueberry is the largest single food crop that Canada produces nationally. It occupies more than 50 percent of the country’s fruit acreage. The target area of Quebec produces the largest quantity of the produce especially in Cote-Node and Saguenay-Lac-Saint-Jean. Quebec production of wild blueberries is rivals that of Maine leading to a regional market and pricing wars between the two areas. The produce is farmed in large scale by large companies which export he yields. The companies are a primary target for the moisture sensor gadget. The region of Maine also accounts for the single largest producer of wild blueberries. 25 percent of all wild blueberries in the entire continent of North America are produced in Maine. The wild blueberry is primary fruit product produced in the region of Maine. In Canada alone, we are targeting more than 20 blueberry farm companies. The region has around 25 blueberry companies. Maine also has approximately a similar number of blueberry farming companies.
Environmental trends
The company is likely to face some problems when the product is presented to the target market. This is as a result of the consumer trend within the industry. Firstly, the acceptance for the product may be a problem as its essence can be overshadowed by the existing means of disease prevention. Secondly, the farmers may not be ready to embrace technology as fast as thought. There is still a lot of communication and convincing that the company needs to do. Thirdly, market prices for the product have been fluctuating thus making it difficult to make market predictions.
Market research data
Canada and US are the two leading countries producing blueberries. In 2010, the two countries produced 83507 and 188150 metric tons of blueberries. However, a look at the production level in the previous decade, the figure has been fluctuating due to a number of factors relating to production and yield.
The table above shows the market volume of blueberries in some parts of Canada as well as the US. The figures are according to agricultural census data released by the federal and Canadian statistics departments. The figures are provided in metric tons. From the data it is clear that Quebec and Maine are not the largest markets in the North American region. There are other provinces and states with higher production level than the two markets which the company seeks to target.
The table presents the severity rating of the fungus during periods of infection. From the data, it is clear that the more these fruits are exposed to wetness at high temperature, the higher the level of severity of the infection. However, the apparatus can be able to detect the level of moisture that increases the risk of infection or the level of severity of infection. Once detected, appropriate measures can be taken either prevent or reduce infection.
Product
Description of the product
Lowbush blueberry moisture sensor has been developed to effectively predicting the risk of monilinia infection in the blueberry fields. The equipment was developed by a team of agricultural researchers with the aim of creating a solution to this problem. Low bush blueberry moisture sensor functions with an algorithm that precisely shows the risk of infection or the state of infection. The moisture sensor helps to capture the wetness in the environment thus detecting potential risk of infection. The equipment is still yet to be licensed in order to commercialize and enhance the technology.
Assumptions
The industry is still yet to embrace technology that can be used to improve the viability and productivity of the fruits. There is little technological transfer with regards to blight hotline, land development protocols, small equipment options, and precision farming technology. Therefore it is assumed that the markets will accept the technology and use it as a means to increase the productivity level of their fruits.
Future / other potential
Blueberry industry in both the US and Canada have been predicted to grow in the long term. There are a lot of opportunities to expand the scale of production and to increase viability of the farm produce for the long term. Researchers argue that there is still a lot that has not been realized with regards to employment and economic activities.
Development / timeline
The equipment is still yet to be licensed. Once it has been licensed, the company will be required to manufacture the product for pilot programs just to get the immediate customer feedback. The pilot program is expected to last only 2 weeks and will be conducted during the infection period. The company then would roll out the apparatus based on the demand from customers within the targeted region.
Competition
Identification of competition
The fungal disease monilinia is the biggest threat to the lowbush blueberries. Prevention strategies for the diseases therefore pose as a threat of competition to the product. At the same time, the other companies would also be drawn into manufacturing and dealing in the same product. Lowbush blueberry moisture sensor is designed as a preventive measure for the problem faced by blueberry farmers. However, there are other measures put in place to prevent the berries from moilinia especially the biological control measures.
Quick survey of the competition
The disadvantage with biological control mechanism is that it has little in the farms. Its success is seen when it comes to preventing the fruits from decaying after the harvest. The product, Lowbush blueberry moisture sensor, therefore has an advantage over biological control techniques because it will help to maintain good cultural practice and sanitation for the growth of the fruits.
Another key advantage of the product over the threat of substitute product and competition is timely disease control. Monilinia infection in lowbush blueberry occurs on the small developing buds in early spring. The infection, as earlier mentioned, is triggered by wetness caused by snow, dew, and rain. However, it is possible to monitor the risk and presence of infection through accurate and timely assessment of the duration of wetness.
Recommendations and rationale
- Product development
Lowbush blueberry moisture sensor stands to be a solution to the company’s declining sales. The product has potential of quick sales in the market right after it is launched. It serves the need of the blueberry farming companies in the region. Long term sustainability of the market is what could raise questions, because the lifespan of the equipment. Once purchased, the consumers are most likely not needed to purchase another gadget until the first one fails to completely function. This would lower sales in the preceding years since most of the farmers and companies would already have the apparatus and would not require a second one. Unless the target market diversified, lowbush blueberry moisture sensor would only make incredible sales within the first and second year after launching. The company can take advantage of window of opportunity and engage in full marketing of the product within the first two years before strategizing on a path later.
- Market development
The good news for the company is that the fungus monilinia does not only affect blueberry farms. It affects other plants commonly cultivated in the European and Mediterranean region. This implies that lowbush blueberry moisture sensor coulf be used to predict the risk for this fungus in other regions and countries as well. This should be part of market development that company is expected to engage in. It is recommended that the company engages in market development as well as product development. Selling the product directly to end users would enable the company to determine the level of demand. Once the feedback is received from the end users, the company can engage in defining the product to suit needs of the consumers.
- Expanding to new markets
Expanding to new markets would be another critical recommendation for the company. This move is critical especially once the company has established a strong sales strength for the product. The company should start by targeting small scale farmers who have little power in their hands for effective yield of the fruits. Some farmers end up not capitalizing on their produce because of the lack of knowledge or skills in handling the infection.
- Product design
This process involves designing the product so that it can be sold to customers. The cost of production should be as low as possible in order for the company to gain high profit margin.
- Distributing the product through the company’s channels of distribution
In order to reduce internal cost, the company should use its own channels of distribution. Engaging a third party can prove costly for the company.
- Doing a product launch which seeks to promote the product before hitting the market
The sales promotion the following tactics will be adopted like coupons, contests, samples, premiums, demonstration, displays and also the giving of incentives to the first few buyers on the opening day of project launching
- Public relations
Appearance in the public because this is one of the most effective integrated marketing communication tools because of business presence; some friends would be compromised to support the product and try it by themselves because of business team integrity and credibility
- Marketing and advertising the product
Evaluation criteria
Evaluating the success of the product does not only require checking whether the target goals were met or not. The performance of the product is also necessary and critical part of the criteria. This information must further be checked whether it can give the company a firm conclusion about prospects of the product. Therefore, critical checkpoints for the alternatives include:
- Process evaluation
- Outcome evaluation
- Comparative cost effectiveness
- Values and customers
With regards to customers, it is important to chack whether the alternatives help to meet the need of the customers. The above identified alternatives will be successful if some results are evident. The main result is the satisfaction of the farmers in using the product. Famers have to express an acceptable level of satisfaction to conclude that the product is viable and addresses the needs of the farmers. Another critical thing to look at is the level of demand for the moisture sensor especially in the first two years after its launching. Demand is expected to be high as the window of opportunity is still open.
Time line
Specific criteria
Better management of the fields should be evident after launching the product. Some the blueberry fields are quite old and the infection is always present in these fields. Once the farmers begin using the product, it is expected that the product will act as a preventive measure for the continued infection in these fields.
Healthy crops should also be evident because of the nature of the product to prevent infection.
Financial projections
The table shows the projected sales of the products per month. The monthly sales figures are multiplied by 12 months in order to get the overall sale for the first year. This is with the assumption that the company will have sales beginning from the first month. It is further assumed that the consumers have some knowledge of the product and have been anticipating for its launch after licensing. Similarly, in order to get the overall sales for the second year, the sale per month is multiplied by the twelve. For the first year, the company will have the gross sales of $ 100,750 and for the second year, the gross sales are $ 180,000. The figures are only from sales of the product. This would help to supplement the overall sales of the company.
Conclusion
First gate review
The need to analyze the product’s prospects has been brought about the opportunity it offers and the need for the company to increase its revenue base after experiencing a downward trend in revenue and profits. Low bush blueberry moisture sensor is a high tech product but the company has hardly engaged in manufacture of high tech products. The desperate need for the company to make a turnaround in sales is seen as a drive to be innovative and to come up with competitive products that can be sustained in the market for longer periods.
Based on the initial analysis of the product, it is recommended that the company goes through the first gate. From the analysis, the product, Lowbush blueberry moisture sensor is a perfect opportunity for the company to increase its sales and revenue. Despite the fact that the product is high tech, the company may not have to manufacture the product. However it may choose to acquire high tech manufacturing facilities just to increase its level of vertical integration.
References
Aaker, D., & McLoughlin, D. (2010). Strategic Marketing Management: Global Perspective. J Wiley & Sons.
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