Initial situation

The company of an internationally operating manufacturer of resources for the agricultural sector generates revenues of €1.2 billion, 70% of which come from outside Germany. The most important foreign markets are the Southeast European countries.

Task/Objectives:

In Bulgaria, the company is represented by its own subsidiary. Local manufacturers play hardly any role in Bulgaria; the market is dominated by foreign suppliers. A US competitor is the clear market leader in Bulgaria with a market share of over 40%. Another foreign competitor is also rapidly gaining market share and has overtaken our client in the current season. Sales have stagnated for two years, and in the current season, noticeable market share losses are emerging. Our task is now to find ways to ensure the medium-term goal of achieving a market share of ≥ 15%.

Implementation:

We began with a comprehensive analysis, examining dealer allocation, sales development and distribution, and segmenting farms and cultivated land. This was followed by a self- and external-image analysis together with the sales team and selected top/target customers. The result: a comparison of the sales team’s self-assessments with the findings of the external-image analysis. The resulting measures (pricing models, changes in error culture, realignment of the sales team) were presented to the strategically most important dealers as part of a soft-entry strategy. Before rolling out the key measures and the new pricing model, an internal sales conference was held to align and commit the sales team.

Results:

Already in the following season (growing period) after implementing the measures, the turnaround was achieved, with sales and profits increasing by double-digit percentages. Thanks to the realignment of the sales organization and the introduction of new products, this momentum was sustained in the following years. The market share target of 15% defined for Bulgaria was reached after three years.