Market Entry Advisory: A Case Study on How an Organic Fertilizer Manufacturer Analyzed the Market Conditions and Made Strategic Business Decisions

May 11, 2018

The global organic fertilizer manufacturing industry is projected to reach a valuation of over US$6 Billion by the end of 2025.

Today, with the increase in demand for pollution-free agricultural products and green products, the term ‘organic’ has become an irresistible trend of modern agriculture and is creating a buzz in the global fertilizer market. Swift development of organic agriculture coupled with augmenting demand for organic food is expected to increase the demand for organic fertilizer. Additionally, government and environmental policies minimizing wastage and reduction in the consumption of non-biodegradable raw materials have led to an increase in manufacturing of organic fertilizer.

However, our analysis of the global chemical industry space shows that organic fertilizer manufacturers are facing challenges in terms of:

  • Raw Material Availability and Pricing: The organic fertilizer manufacturing industry faces serious challenges in the form of availability and fluctuating prices of raw materials required to produce fertilizers. The primary cause of fertilizer price fluctuations is related to the supply and demand factors.
  • Distributors and Retailers: The demand for organic fertilizer is growing at a very fast rate. Distributors and retailers play a crucial role in the sales of these fertilizers. The overall sales for various grades organic fertilizer is growing at a significant pace, yet some companies are facing major challenges due to the decline sales in the respective grade.

Therefore, it is best recommended for organic fertilizer manufacturers to leverage the use of market entry advisory solutions. Market entry advisory solutions help companies in the global chemical industry space to beat the competition, increase sales, enhance brand awareness, and improve overall business stability. These solutions also help firms identify the potential bottlenecks in terms of the barriers to entry and improve business efficiency in areas such as sales, marketing, and delivery.

The Business Challenge

  • The client: An organic fertilizer manufacturer

The client, a leading chemical industry player specializing in the manufacturing of organic fertilizer with distribution centers spread across the globe, wanted to understand the competitive environment and devise a one-size-fits-all approach to improve the quality of their offerings. This was because the client was facing predicaments in operating new businesses in niche markets and accordingly allocating the resources to target the price-sensitive customers.

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Our Journey

To help the organic fertilizer manufacturer gain insights into the competitive nature of the global chemical industry and help them penetrate the niche market segments, Infiniti’s market entry advisory experts carried out extensive research with leading stakeholders in the chemical industry space. The experts further amassed information from various proprietary sources including paid industry databases, company presentations, and industry forums.

The Solution Benefit and the Business Impact

With the help of Infiniti’s market entry advisory solutions, the organic fertilizer manufacturing client was able to effectively tailored product offerings and price to suit the requirements of the global chemical industry. The client also identified the potential technologies prevailing in the market, analyzed the present market conditions, and made strategic business decisions. This helped them build strong customer relationships.

The Future

Liquid fertilizers have the characteristic of rapid absorbability by soil, which in turn ensures that nutrients reach crops faster than other forms of fertilizers. Therefore, the application of liquid organic fertilizer is expected to become popular among farmers in the coming years, thereby, opening new opportunities for the organic fertilizer industry.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the latest chemical industry


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