Case :

Farm Electronics : The

Business to Business
Marketing Dilemma 116- Govind Malhotra
137- Nishi Malde
140- Prachi Gupta
143- Radhika Juneja
157- VG Sadhana
163- Yash Sancheti
About the Company

• Founded by Dinesh Ratan Upadhyaya, as a Sole Proprietorship

• In 1984, Farm Electronics acquired 7000sqft of land in Electronic Complex in
Indore
• Dinesh developed a Band Response Tester in 1989, an instrument used
extensively by postal and telegraph departments
• Expanded its business offerings by adding Transformers and power supplies into
their product line.
• Invested in advanced machines, including computer numerical control transformer,
welding machines, assembly lines and more.
• Separate in-house design facility and quality inspection unite were also developed
to ensure innovation and perfection in design and manufacturing equipment.
• His son, Anuj, the company’s general manager joined the business in 2006
bringing in new perspectives and innovative ideas
Timeline

2018
1984 1989 2000s 2006 Customer
1977
Acquired 7000 Developed BRT, Got multiple Dinesh’s son expansion to
Inception of
sq ft land in with no Indian accolades for Anuj, joined the more
Farm Electronics
Indore substitute entrepreneurship business international
markets
Overview
• Farm electronics positioned itself as a Sub Vendor- A vendor to vendors
• This enabled Farm electronics establish relationships with customer
organizations ensuring repeat business and regular returns
• Acquisition of new customers expanded Farm Electronics product line
• Farm Electronics core products were Transformers, Railway- signaling
relay coils, Brushless direct current motors (BLDC)
Accolades
• In early 2000s, Dinesh received several accolades at the national level
for his contributions to entrepreneurship and innovation
• In 2003, he received Indira Gandhi Priyadarshini Award
• He also received Bharat Udyog Ratna Award for 2004-05
 Transformers

Relay Switch
Product
Portfolio Uninterruptible
Power Supply

DC Motor
Ansoff Matrix
Market development Diversification
1. Expansion option 1. Expanded into
in some African railway networks

New
countries. 2. Launched new
2. Power electronics product line of
markets, specifically railway-signalling
in countries like relay and
Nigeria, BLDC motors.

Markets

Market Penetration
1. Offered a lenient
Product
Existing

credit policy to its key

Development
2. Customizing its
1. Transformers
product range
2. Power supplies
3. After-sales service
4. Cold call & emails.

Existing New

Products & Services

People involved in Buying
Cycle Material and
Procurement
Department
Design and
Engineering
Department
Quality
Customer Vendor Assurance
Department
Finance and
Management
Department
Customer
Procurement
Department
Buying Cycle of a Typical
Client
Vendor completes the market survey

Contacting the material and procurement department of a prospect

If required design & engineering department provides seller with technical

specifications

Vendor designs and submit the prototype to materials & procurement department

Performance & quality testing done by QA department

Sharing the recommendations with management and finance dept based on QA report

Giving price quote to vendor

Purchase order is generated based on the Quote

Send monthly schedules to vendor

 Value Proposition • Lenient credit policy (90 day credit
policy)
• After sales support and flexible
payment options
• Quality Certification
• A well known National
and International Player,
supplying to vendors of
Big companies Customer
Needs

Brand
What your
What you do
Competitor
Well
does Well

Experience Product • Local

Vendors
• Customised products
provided
for customers
• Customer lower costs
specifications
friendly as which was
• Timely delivery, Robust
customization preferred  by
• Transformers (Wide after-sales support
s according to small scale
range) • 100% replacement and
need and high enterprises.
• Power Suppliers repair of products even
quality after • Railway signalling relay after 90 days of delivery
Types of Clients

Small
Large Clients
Businesses
75% Revenue Generated 25% Revenue Generated

Custom Product Standard Products

Requirements Purchased
Big Ticket Purchases and
Small Ticket Purchases
Turn key Projects
Emphasis on Customer Emphasis on Market
Retention Opportunities

Global Market Players Local Market Players

 Type A
- MNCs
Customer
- Large Scale
- Privately owned Classificati
PSUs
- Government
Type B
- Local mfg
companies
on
Stake and firms
- Medium Scale
- Large Scale
- Privately owned
- Government or
(family
Public owned
Customer businesses)
Segments

Type D Type C
- Local mfg
- Small vendors, companies
Service centres
- Small Scale
- Unorganized
- Sole
- Sole Proprietorship
Proprietorship (family business)
Recommendations
Type C and African
Type A Type B PSUs
Type D Markets
75% revenue Good investment Low transactions but Won’t recommend High demand of the
Straight repurchase opportunity since the very high scope. PSUs equipment
Serving other manufacturing Take the risk of Highly competitive Farm electronics is
countries through facility could be used investment of 15% of Low margin known for better
these vendors. for C and D revenue for the first • Already serving quality after-sales
Hence, increased accounts as well. 3 years. railways as service, and hence
international brand Investment of 75000 • Credit issue is a vendors of vendors can compete with
awareness initially. possibility. took Chinese
Easy Client retention • Facility can be place on credit. manufacturers.
Credit worthy used for 10 years. • Highly regulated
• Equipment can be market makes
used for all types. farm electronics
suitable for these
countries.
Thank
You!
116- Govind Malhotra
137- Nishi Malde
140- Prachi Gupta
143- Radhika Juneja
157- VG Sadhana
163- Yash Sancheti