Beruflich Dokumente
Kultur Dokumente
Marissa Estaya
Mervin Gabon
RaShaan Davis
Marketing/MKT 571
Introduction
The RoboProduce also known as RoboPro, a power-driven fruit and vegetable picking
device or machine defined with an improved method of picking fruit and vegetables, using a new
rapid airborne technique method. This device or machine imitates various types of tractors or
other propelling equipment with various (mechanical arms) extensions to extend and decrease in
height to pick the required fruit and vegetable. This device or machine engages the stem of the
fruit or vegetable, disconnecting where pressure against stem causes separation of fruit or
vegetable from stem. During the motion, the fruits or vegetables are cleansed and packaged.
The device is manufactured at a reasonable size for utilization and storing. Our team was asked
to develop and market this product and apply marketing concepts during the research.
distribution and pricing strategies for the RoboProduce product launch; based on trends, size of
market, growth rate, and profitability including both domestic and international markets. The
research of this paper will determine "what is feasible" in the internal and external environment
governmental political impacts, and strong economies impacts to the produce industry. This
paper will provide ramification to avoid the risks of changing environmental factors on
Business Justification
Our team selected another international market which is China; it has been reported to be
the world’s largest fruit and vegetable producer as illustrated in Figure 1.0 which was reported
by FAOSTAT (Food and Agriculture of the United Nation Statistics) in 2004. The statistics also
show China produces 19% of the world’s produce in 2003. Since this is the trends provides an
Channel and Pricing Strategy 3
obvious market for our product, we will launch our product in China. The sustainability of
RoboProduce is likely to succeed with the information as indicated in Figure 1.0, this illustrates
the China is consistently increasing their production outruns any other produce manufacturing
countries. China reports at a 6% average production growth rate in the period years of 1996 –
2003. Brazil was our primary international market which is another key producer including, the
United States of America (USA), Mexico, Chile, and South Africa. However, the production rate
in Brazil and the USA has been fairly stable over the periods of 1996 – 2003. The average annual
growth rate of Brazil is 0.34 % and 0.61 percent in the United States (FAS USDA, 2010).
Figure 1.0
Source:FAOSTAT,2004
Channels of Distribution
Our team research the profitability based on the channels of distribution such as China,
Brazil and the USA; and realized how well these different countries exporting performance in the
produce industries. The profitability can be accomplished as indicated in the statistics from
FAOSTAT based on the trends and make a sound decision to launch RoboProduce
internationally in Brazil, China and bring it back to the USA. We would expect our potential
Channel and Pricing Strategy 4
competitions to follow our marketing strategy internationally as Figure 1.0 Clearly identifies
production capacity (FAS USDA, 2010). As mentioned in an article on USA Today, many
companies worldwide are vulnerable to outsourcing to China as the labor is cheaper. One
example is Del Monte. Del Monte has stopped it’s productions in Hawaii for pineapple as Del
Monte reports, “it was no longer economically feasible to grow pineapple[s] in Hawaii because it
can be produced for less in other parts of the world.”(USA Today, 2006 para. 2). However, our
goal is to also make the USA more profitable so we do not have to outsource these industries,
RoboProduce is an American product that should contribute more to its place of origin in making
them the leading producer worldwide. RoboProduce can grow the production here in the USA
and be able to maintain the number one spot light in exporting produce.
Economic Environment
focus on savings; debt, and credit availability. The debt ratios, in the US alone we are
experiencing a higher debt-to-income ratio; this slows down the purchasing power of a
consumer. In the case of the RoboProduce we have to determine the debt of the potential
distributors, resellers and the companies we sell to. If these entities are looking to cut cost, they
may not have the investment to buy or finance this type of equipment, they have to ensure the
can cover the cost to implement the product. Many times companies will not want to buy these
high priced items if the economy is not in the best situation. As a team we decided to provide
leasing options to our potential customers to avoid the risk of this economic factor (Kotler &
Keller, 2006)
Channel and Pricing Strategy 5
RoboPro is a new, exciting, economical, swift and advantageous machine that allows a
more rapid and effective outcome of productivity in the fruit and vegetable picking industry.
Research has shown that RoboPro executes at almost double the speed of 10 manual workers in
China. Our team reviewed certain factors before deciding to become a global firm, that operates
in more than one country and captures R&D, production, logistical, marketing, and financial
advantages in its costs and reputation that are not available to purely domestic competitors, as
One of our competitors, Vision Robotics are currently building the scout and expect to
have a prototype ready next year, with the harvester to follow two or three years later. Engineers
claim it doesn't expect the mechanical systems to pose any serious problems, the hard work is
writing the software. After the scout robot makes a 3-D map of the tree, it has to evaluate each
piece of fruit. The robot needs to determine size, type of fruit or vegetable and color. It's a
question of gathering the information, and then judging whether it meets the parameters of
readiness. In entering this global industry, in which the strategic positions of competitors in
major geographic or national markets are fundamentally affected by their overall global
positions, RoboPro develops a strong following and raises a huge interest (Vision Robotics,
2010).
Pricing Strategy
The pricing strategy is simple and clear, RoboPro can target the competitor’s domestic
market by offering a stronger product or lower price. Potential customers consist of Brazilian
and Chinese farmers, small crop sharers, and large manufacturing distribution companies.
Several evaluations have proven the product is superior or advanced however; our team is
Channel and Pricing Strategy 6
convinced that selecting a penetration pricing technique is the best option during this economic
phase. The current cost to purchase one RoboProduce robot is $250, 000 and works at 10 times
the speed of the average crop labor worker. A pull strategy would with sales; this involves the
manufacturer using advertising and promotion to persuade consumers to ask intermediaries for
the product, thus inducing the intermediaries to order it. Another option would be the leasing
option, which is offered to our future customers’ and demonstrates the appreciation for the
Chinese business culture. A push strategy fits this option best which encourages the
manufacturer to use its sales force and trade promotion money to induce intermediaries to carry,
promote, and sell the product to end users. Good marketing and promoting will be essential to
The product adaptation in China would be a vast change and involves altering the local
usual conditions however, by adding a faster more effective way to pick fruit will add value to
the cultural diversity of both the organization and the country. Attracting foreign business can
improve the local economy, provide jobs, and improve infrastructure by targeting this particular
niche RoboPro establishes a footing in new markets (Kotler & Keller, 2006). RoboPro can be
considered a forward invention, as China is one of the world’s largest fruit manufacturing
Government Influences
In addition to cultural, cyclical, seasonal, and geographical differences that exist when
trying to decide when and where to launch a product into international markets, the RoboProduce
must also consider governmental and political bodies as these factors will either inhibit or
prohibit its legal use. When considering the agricultural industry, organizations must consider
Channel and Pricing Strategy 7
other countries legal entities. Each country, governed by its politicians, will have its own ideas
Local governments and politicians play a very large role in the selection process of what
products enter its market. Understanding that products can either help or deter their economies,
policy and decision makers can heavily influence an organization’s choice to pursue market
penetration. For example, in the Aerospace industry, Northrop Grumman and the Boeing
Company both put in bids for a jet refueling plane. The Tanker, as it is called, is decided by the
US Government. Northrop Grumman faced heavy criticism as it partnered with the European
company EADS. According to Reuters.com (2010), “Congressional aides and military analysts
said that the European company would face a tough uphill political battle on its own, given U.S.
concerns about alleged European subsidies” (para. 8). Northrop Grumman eventually bowed out
of the U.S. Tanker bid. Ultimately, politics can sway which way decisions are rendered.
There are many risk factors involved when trying to enter into an international market.
The Chinese ‘New Technology’ regulations are the biggest concern for RoboProduce where
implications surround its profitability and innovation. According to TopNews.com (2010), “The
new regulations being adopted by China in order to encourage local technology are substantially
hurting US companies and making them lose sales” (para. 1). As a non-traditional agricultural
vehicle, the RoboProduce heavily relies on its programmable software and innovational
The RoboProduce is built on the ideas of American agricultural industry vehicles and
innovative programming software. The vehicle design is based on the strength of American
industrial vehicles from companies like John Deere and Caterpillar. Using military
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robotics, the RoboProduce integrates data into a useful aggregate agricultural machine.
agriculture, the assumptions are that fields are segregated in linear fashion. This gives room for
easy navigational programming on the RoboProduce. Once its path is programmed, the
RoboProduce will run its course, collecting, identifying, selecting, and systematically picking
fruits. The programmable fruit selection process can be queried by an advanced discriminating
algorithm segregated by weight, color, size, tenderness, and even natural defections.
The ever changing, ever evolving rate of technology is the key to RoboProduce’s success.
It has technology similarity of the Kitchen Aid tool which improves due to innovative
attachments, RoboProduce will not only thrive with further innovations, but will remain the
market leader. Upon market entry, the RoboProduce will be a vehicle run on conventional means
such as gas and biodiesel. Innovative technologies will push the RoboProduce to run on
alternative sustainable energy. A hybrid engine is already being implemented but talks of hydro-
powered and other natural sources of energy are being produced. As the market shifts towards
‘greener’ products, the RoboProduce will eventually be green, for green, by green. Increasing
Conclusion
In comparing this similarly to the cotton gin in the Industrial Revolution, the
RoboProduce is created from developing technologies and is designed to improve the way we
gather resources. The RoboProduce is a powerful new breakthrough in the agricultural industry.
Using innovative technologies, the RoboProduce will select fruits and vegetables delivering
exceptional quality and lowering laboring costs for private and commercial agricultural sectors.
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The RoboProduce will launch in the Chinese and Brazilian markets as both shows a favorable
the economic environment and pricing, the RoboProduce will focus strategically on savings,
debt, and credit availability. Leasing options will be offered to customers to buffer against
economic conditions. Due to heavy influences from governmental and political entities, the
RoboProduce has been mindful of the international markets available and receptive to US
products. Major concerns with entering in an international market are the laws and regulations
governing these markets. China’s ‘New Technology’ regulations may prove to be a big challenge
when considering a launch in their market. However, because of its heavy focus in R&D,
pushing innovations and improving technologies will only allow the RoboProduce to become
References
FASUSDA.gov. Food and Agriculture of the United Nation Statistics 2004. Retrieve on
World%20Fresh%20Fruit%20Market%20%2808-04%29.pdf
Kotler & Keller. (2006). Marketing Management (12th ed.). New Jersey: Pearson-Prentice Hall.
Kotler & Keller. (2007). A Framework for Marketing Management (3rd ed.). New Jersey:
Pearson-Prentice Hall.
Reuters.com. (2010). Northrop quits U.S. tanker contest. Retrieved on April 27, 2010 from
http://www.reuters.com/article/idUSTRE6280B120100309
TopNews.com. (2010). New Technology Regulations by China Hurt American Firms. Retrieved
china-hurt-american-firms
USToday.com. Del Monte stops pineapple growing in Hawaii. Retrieved on April 26, 2010 from
http://www.usatoday.com/money/industries/food/2006-02-02-del-monte_x.htm
(2007).