John Deere Field Connect Nebraska Sandy Creek FFA NE0166 2015
Oregon Trail Equipment (OTE) was founded in 2003 when 3 already existing John Deere Dealers combined into one. They are a dealer for farm equipment, tractors, combines, sprayers, planters, lawn mowers and skid steers. OTE has over 300 years of family history and is dedicated to exceeding customer expectations. Between Nebraska and Kansas they have seven locations. OTE takes care of multiple counties in the south central area because they are the only dealer in this part of the state. Being the only dealer in this part of the state they have been able to provide services and other necessities to the local area including maintenance, repair and GPS. Market Analysis Product/Service and Client Status Oregon Trail and Equipment (OTE) has seven locations, which serve South Central Nebraska and North Central Kansas. OTE s area of service covers 11,000 square miles of prime and productive farmland which is high in irrigation technology use. OTE currently employs over 150 people. In order to help farmers cope with water restrictions, in 2012, John Deere released the Field Connect Soil Moisture Sensor. In 2012, the Field Connect system came to Oregon Trail Equipment. Marketing this product is a vital stage to Oregon Trail equipment as it allows them to add another service to their business. Since it was released it has not been marketed to its potential by OTE. Field Connect is one of the top water sensor products. The Field Connect system allows farmers to save on fuel inputs and maximize yield potentials. Water restrictions are a concern to farmers in the area. With Oregon Trail joining the competitive market of water sensors, it will allow them to prove their technology. By offering this service through OTE to farmers, it will help customers and increase the services provided. Industry Trends According to the 2008 Census, Nebraska is the leading state in total irrigated acres with 8.56 million acres being irrigated on an annual basis. While farmers have access to the aquifer, in recent years Nebraska has seen drought plague many areas of the state causing farmers to pump more water and in some cases have water restricted. These restrictions have led to the increase in soil moisture sensor use by farmers. Buyer profile and behavior The producer looking to include the Field Connect system into their operation is one who uses irrigation technology, is concerned about using water efficiently and wants to maximize their inputs. Buyers most likely to lease Field Connect are also looking for ways to increase technology within their operations. Competitors SWOT Analysis 1. Crop Metrics- $2650/ sensor Lifetime license- $1500/pivot End tower telemetry- $1500 pivot, Annual investments- VRI services-$575, Annual investments complete water solutions package-$1975 Strengths Average water savings 2 inches per acre Reduction in energy cost Improvement of nearly 6 bushels/acre per moisture probe Access data wirelessly Weaknesses 2 Watermark Sensors Strengths Corrosion resistant Not affected by freezing temperatures Weaknesses Many annual fee s Lifetime licenses must be purchased per pivot Only measure down to 36 inches deep Only measures a 4 inch diameter circle Opportunities Allows farmer to save water Use with Variable Rate Irrigation Threats Cheaper Alternatives Depths and diameter test area are smaller than competitors. Meter is operated by batteries making them unreliable Only measure down in the ground 3 feet Have to install three of them per field instead of one sensor
Have to convert data to a chart Opportunities Lowest Cost Self Installation Used in any growing situation Threats Data is not easily available Old Technology Product/Clients SWOT Analysis Our marketing team has identified the following SWOT analysis to help create a clearer picture of Oregon Trail Farm and Equipment s current situation: Strengths: John Deere is a well known company; having been in business since 1837 and is known for their superior products. Wide customer base with over 500 local customers John Deere Field Connect Strengths Dual modem data transmission- Satellite antenna, cellular antenna Can be calibrated for specific soil types Sensor spacing allows for optimal root coverage By using this product you will work closely with you John Deere Dealership Can wirelessly access data anywhere in the world using your cell phone Self Powered using solar panels Can use with any crop Leasing field connect is all inclusive price with service John Deere installs sensor for the farmer Measures an 8.5 inch diameter circle Weaknesses Price is slightly higher than competitors Product could be intimidating to nontech savvy producers Opportunities Backed by John Deere who is known for superior farming products Numerous pivot irrigation systems in the area Easily serviced with OTE being local Threats Cheaper alternatives VRT could cause producers to not think it is necessary. Primary Research Results- total of 30 respondents From the research gathered we discovered the following about our target audience: 57% of the local farmers range from 45-54 years old 91% have been farming for 15 plus years 96% are concerned about water restrictions 53% use center pivot irrigation technology 64% are comfortable using soil moisture sensors 43% use some type of soil moisture sensor currently 48% would use Field Connect system if they had more information Business Proposal Mission Statement Designed for farmers to efficiently use water and maximize their operation. Key Planning Assumptions Producers will lease Field Connect for the following reasons: To maximize their inputs efficiently Increase use of technology throughout their operations Use irrigation technology more efficiently Conserve water use on their operations Measurable and Attainable Goals The measurable and attainable goals to be achieved by December of 2017 are as follows: Goals for Oregon Trail, Field Connect Sales: 1. Increase the sales of Field Connect by 100 units in 2 years.
2. Put on 3 workshops in the 2015 year with each workshop targeting 50 new and or existing customers of Oregon Trail Equipment. 3. Increase the employment by 2 full time employees by 2017 (FTE) for the increase of sales and service calls for the additional 100 units. Target Audience The main target audience is farmers who are currently employing irrigation technology in South Central Nebraska. Farmers between the ages of 18-64 will be our main demographic. This area of Nebraska is a high irrigation usage area with many farmers using center pivot irrigation. Strategies and Action Plan Product Attributes The John Deere Field Connect has dual modem data transmission through satellite antennas and cellular antennas as well. It can be calibrated for specific soil types in different areas. This product allows for optimal root coverage with the right spacing. When using this product you will create a close relationship with you John Deere Dealer. You can conveniently wirelessly access your data anywhere using your cell phone or computer. The Field Connect is self powered by solar panels and you can use it with any crop. The sensor will be installed for you by a John Deere Field Connect Specialist. Price Structure The initial lease price for Field Connect Soil Moisture Sensor is $2,499.00 for a one-year term. The price for a 3-year term is $2,299.00/ year. This price includes installation, training, maintenance, setup and service. When purchasing a 3-year term, all three years will be paid for upfront. Distribution and Sales The purchase of Field Connect Soil Moisture Sensors will be made through contacting Oregon Trail Equipment. Customers can call or visit the store on their time to make the purchase of the lease whenever is convenient. Once the product is purchased Oregon Trail Equipment will send out a Field Connect specialist to install and help you learn how to operate the product. Promotion Mailing flyers to all current customers and extension education producer list at Oregon Trail Equipment Hold workshops to help customers understand the need and usage for the product Quarter page ad in the Midwest Messenger Set up an informational table at the Corporate John Deere booth at Husker Harvest Days Oregon Trail Equipment booths at Lincoln and Kearney Farm Shows to help promote Field Connect Soil Moisture Sensors Ads in the local newspapers around the distributing area. In our distributing area most farmers read the newspapers daily. Product Positioning Our product will be advertised via the internet, newspapers, flyers, farm publications and farm show interactions. The advertisements will be run throughout the year, but will be really pushed during the spring and fall. This will help potential customers recognize the Field Connect Soil Moisture Sensors with the Oregon Trail Equipment name. Our main focus will be to sell our product through South Central Nebraska. We believe the reliability of John Deere and the superior product quality of Field Connect will help people see the benefits of our product against our competition. In year two, our goal will be to continue to promote Field Connect Soil Moisture Sensors through established advertisements. 2015 Budget Advertising Expenses Mar-May Jun-Aug Sept-Nov Dec-Feb Printing cost for mailing fliers for 500 households @.25/sheet $125.00 $125.00
Postage for 500 letters @.44/letter $220.00 $220.00 Quarter page ad in Midwest Messenger $87.50 $87.50 Table at John Deere tent at Husker Harvest Days- Giveaways and product information $2,500 Lincoln Farm Show Booth $565.00 Kearney Farm Show Booth $420.00 Clay County Newspaper Ad- Half Page, $75/week $300.00 $150.00 $300.00 Field Moisture Sensor Technician and Sales OTE Employee Salary 40 hours/week @ $11.00/hour $5280.00 $5280.00 $5280.00 $5280.00 Workshop Expenses Building Rental $100.00 $100.00 $100.00 Lunch and Refreshments $500.00 $500.00 $500.00 Field Connect Complete Unit- 40 units $3,360.00 $134,400.00 Total Expenses for 2015 $6,012.5 $6030.00 $9232.5 $6745.00 $28,020.00 2016 Budget Advertising Expenses Mar-May Jun-Aug Sept-Nov Dec-Feb Printing cost for mailing fliers for 500 households @.25/sheet $125.00 Postage for 500 letters @.44/letter $220.00 Quarter page ad in Midwest Messenger $87.50 Table at John Deere tent at Husker Harvest Days- Giveaways and product information $2,500 Lincoln Farm Show Booth $565.00 Kearney Farm Show Booth $420.00 Clay County Newspaper Ad- Half Page, $75/week $75.00 $75.00 Field Moisture Sensor Technician and Sales
OTE Employee Salary 40 hours/week @ $11.00/hour $5280.00 $5280.00 $5280.00 $5280.00 Workshop Expenses Building Rental $100.00 $100.00 $100.00 $100.00 Lunch and Refreshments $500.00 $500.00 $500.00 $500.00 Field Connect Complete Unit- 60 units $3,360.00 $201,600.00 Total Expenses for 2016 $5,955.00 $5,880.00 $6,300.00 $6,952.50 $25,087.50 Total Income Units sold 2015 year 40 units- 3 year lease paid upfront- $2,229.00 $275,800.00 2016 year 60 units- 3 year lease paid upfront- $2,299.00 $413,820.00 Total Expenses 2015 year $162,420.00 2016 year $226,697.50 Net Profit 2015 year $113,380.00 2016 year $187,122.50 Evaluation Monitoring and Measuring Goal 1- Increase the sales of Field Connect by 100 units in 2 years. By keeping records and receipts we will be able to monitor how many units are sold per year and make adjustments as needed. Alternative strategies if not met will include sales calls to customers by OTE staff. Goal 2- Put on 3 workshops in the 2015 year with each workshop targeting 50 new and or existing customers of Oregon Trail Equipment. By keeping a record of people attending and promoting our workshop on flyers and at farm shows we will be able to increase the amount of knowledge in farmers about the Field Connect product. At the end of the workshop we will ask participants to take a survey on utilizing Survey Monkey so we can monitor the areas we need to improve on. Also attendees will be asked to recommend two local producers for contacting for additional prospects to add to the Field Connect Workshop list. Goal 3- Increase the employment by 2 full time employees (FTE) for the increase of sales and service calls for the additional 100 units. With the new increase in leases of Field Connect system the OTE will need to expand their employee base. With more customers, OTE will need more staff for solely meeting the needs of Field Connect customers. As sales increase, the income from Field Connect allows us to hire more employees with the first new employee to be hired by June 2015. Alternative strategies if not met will include sales calls to customers by OTE staff.
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