Page 138 - DMGT509_RURAL MARKETING

Unit 7: Segmenting, Targeting and Positioning

15. The geographical information based software has data on ........................ villages all over Notes
the country barring Jammu and Kashmir.
(a) 5,34.000 (b) 6,26.000

(c) 6,45,000 (d) 6.34,000



Case Study Fertilizer Sales

Toronto
The CEO of Canada’s biggest fertilizer company is eyeing good growth for years to come
as population and wealth increases in India and China create an even greater demand for
agricultural products.
“It is an exciting time for Potash Corp and our industry,” William Doyle, CEO of Potash
Corp. of Saskatchewan (TSX:POT) said during the BMO Global Fertilizer Conference in
Toronto.

“Our growth potential in potash comes from the expanding GDP (gross domestic product)
in offshore markets. With accelerating income growth, the rising populations of these
countries want more and better food,” he said. “Meanwhile, per capita land available for
agriculture is decreasing.”
China, whose consuming middle class is around 200 million people and which is under
pressure to increase imports to reduce trade deficiencies, is leading the increase in global
agricultural trade, he said.

India is a close second with a consuming middle class of 250 million, which could triple by
2010.
“The spike in wealth is pulling potash consumption with it,” Doyle said.

And while consumption has been steady in mature North American markets for the past
two decades, South America is another growth area. Brazil, for instance, needs potash
because it is producing soybeans for China and India, he said.
“In addition to providing growth, these markets produce a diverse customer base and
protect against a short-term shock in any one region,” Doyle said.

Mike Wilson CEO of Agrium Inc. (TSX:AGU), the country’s second-biggest fertilizer
producer, said his company is continuing to focus on South America after strengthening
its position in Chile and Argentina through retail acquisitions.
Agrium also acquired U.S. rival Royster-Clark Ltd. (TSX:ROY.UN) after a sweetened $616-
million-Cdn offer in February.

The deal, which turned the Calgary-based company into the largest agricultural supplies
retailer in the United States, is expected to produce $30 million US in cost savings and
margin improvements by next year.
“It’s a very good strategic fit; it gives us size and critical mass that no one else has, and our
synergies and margin improvements are significant,” he said.

Agrium’s distribution in North America, he added, is now approaching four million
tonnes.
Contd...

LOVELY PROFESSIONAL UNIVERSITY 133