Tata Agrico fixes “Common Retailer Price”In a bid to ensure adequate reach and greater penetration of the
Tata Agrico products, the Rings & Agrico Division has undertaken a comprehensive
overhaul of its pricing and distribution system. Among the most significant initiatives
undertaken during this exercise is the initiation of a “Common Retailer Price”
for its products across the country. All retailers of the brand will henceforth sell
Agrico’s products at the same price, irrespective of where they are located in the
country.
Tata Steel’s oldest brand, Tata Agrico was launched in 1929, four years after Tata
Steel took over the Indian Agriculture Company. The Rings & Agrico Division
Users of Tata Agrico’s products understand
their use more lucidly with the help of the Division’s officers
currently has a product mix comprising
six product categories in the agriculture and construction sectors.
The Division intends to take its current market share from 12% to 40% in the next two
years. To achieve |
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this
objective, it has launched a project, in conjunction with the London-based consultancy
firm PRTM, to set the processes of the Division in line with a professionally run
organisation. A task force comprising young energetic managers from across Tata
Steel’s business divisions have been assigned full time to the project. In addition,
it plans to set a common retailer price that will further strengthen its efforts to
capture market share.
The Division has ensured that its distributors follow the business model developed by it.
In the last few months, 15 new distributors have joined it as channel partners. They will
follow the new model of operating with the sales force teams, which now tracks distributor
sales and stock on a daily and monthly basis.
Rings
& Agrico Division’s products:
Hoes, Shovels, Crowbars,
Sickle Hammers and Pick Axes |
To enhance its reach
through retail counters, Tata Agrico has entered into a strategic alliance with Tata
Chemicals Ltd. The immediate gain has been access to 104 Tata Kisan Sansar (TKS) outlets
of the Group Company. Sales from these counters are now firming up. In addition, these
outlets provide valuable customer feedback and are critical touch points for Tata Agrico.
The Division is also looking at new product categories to grow its business. It plans to
achieve 7% of its turnover from new products by the year 2007.
The level of excitement at the Division, needless to say, is palpable. |
