ABB Grain - Company's Profile, Competitors, Suppliers, and Customers - Example

Company report Student’s Name: Instructor’s Name: Course Code: Date of Submission: Introduction ABB Grain Company is among the largest companies in the world in the provision of Agricultural products. The main product that the company exports is barley which is used to brew beer (ABB Grain Company 2013). The company has applied various strategies which have made it to excel in the competitive market. Among the strategies the company has applied include effective distribution strategy and pricing strategy. These strategies have enabled the company to create a competitive advantage by satisfying the consumer needs. The company exports consumer products like wheat which are used for consumer consumption (David et al 2005). The main competitors of the company include cargill Inc and AWB Ltd. In this regard, this report will discuss the various marketing strategies applied by the company to create competitive advantage. The report will also discuss the range of products the company exports as well as the marketing mix of the company. Company profile ABB Grain is among the biggest grain companies in Australia. It was founded in the year 1939. The company was listed in the Australian security exchange market in the year 2009 due to takeover by Viterra. Recently, the company has expanded its operations and it engages in storage of grain. ABB grain Company has its roots back to the Australian Barley Board and it expanded its operations and it was called ABB Grain in the year 1999 (ABB Grain Company 2013). The company had the capacity to produce about 500,000b tones per year. The company has eight malting plants all over Australia and it has the largest multihouse in the southern hemisphere which is situated in Perth Western Australia. Further, the company provides other products such as fertilizers as well as wool and livestock products (ABB Grain Company 2013). The company acquired Wool Company and Wardle Co in the year 2007. In the year 2009, the company formed a merger with Viterra Company and many of the shareholders supporting the move. The sustainability strategy of the company is that it involves all the stakeholders to ensure they find the better ways to manage the challenges of the world including maintaining clean environment with high recycling of wastes and reduced wastage. This will help to strengthen resources utilization. The company helps the customers to be more efficient and provide recommendations on how to improve the business knowledge (ABB Grain Company 2013). In addition, the company sustains itself through developing world class products and developing operations which are efficient to the organization hence help in effective utilization of resources. This has helped to improve sustainability of the company. Competitors, suppliers and customers ABB Grain Company faces stiff competitors from other consumer companies which provide agricultural products. However, with the strategies which are applied by the company, it has managed to be the market leader in providing Agricultural products (ABB Grain Company 2013). The competitors of the company are cargill Inc and AWB Ltd. There are also other competitors in the market but these two companies the greatest competition to the ABB Grain Company. Other competitors include Australian Agricultural Company, Burns Philip and company ltd and Brown brother milaya vineyard. Due to high competition, the suppliers have managed to gain high power than the company thus influencing the market conditions. The main consumers of the company’s products are the local consumers as well as the overseas market (Kevin & John 2009). The company has large expert market to importing countries like Saudi Arabia. Due to regulations which are imposed by different countries, the company has experienced some decline in its exports. The rising cost of living has limited the consumption power of the customers thus the company is experiencing some decline in its revenues (Jobber 2001). The main suppliers of the company are the Australian farmers who supply the materials to the company. Product description The company offers various product demands to be consumed by the customers. This has enabled the company to attract and retain more customers due to its ability to provide variety of products. The main products of the company include the barley, wheat and livestock products such as wool. The company has the ability to produce about 500,000 of barley per year (ABB Grain Company 2013). Further, the company offers storage services for storing consumer products. In this regard, the main product that the company engages in is barley malting. This is the main product for the company. The company offers the barley both for local and overseas consumption. Pricing, promotion and distribution strategies applied by the company The company’s competitiveness has been upheld by the various strategies applied like pricing strategies. The pricing strategy which is applied by the company is competitive pricing strategy (Margaret & Mark 2003). This is the strategy which the company aims to attract and retain customers. It creates competitive advantage from the competitors. With competitive pricing, the company prices its consumer products a price which is slightly lower than the competitors. On the other hand, the promotional technique which is applied by the company is by engaging in sustainable operations such as corporate social responsibility (Patterson & Ward 2000). This promotional strategy enables the company to create awareness of its products to consumers and also creates good relationship with stakeholders. For instance, the company engages in training the suppliers on the best ways they can preserve their produce before they are delivered to the company. This enables the company to improve its image hence will attract more customers. In addition, the company distributes its products through its stores; the company has stores in various places which help in supplying the products to the consumers (Proctor 2000). The company also uses middlemen to ensure the products reach the consumers. In overseas market, the company has entered into strategic alliances with foreign local companies to sale its products. For instance, the company engages in franchising to sale its products in overseas markets. Marketing mix The marketing mix comprises of all the elements which marketing function a success. These elements include product, place, price and promotion. ABB Grain Company has applied these elements to create a competitive advantage. To start with, the company offers products which the demand and needs of the customers (Schultz 2001). In this effect, the company offers variety of products like wheat and barley which meet the international standards. The customers are satisfied with the company’s products hence there have been constant and regular customers who frequent to buy the company’s products. This has enabled the company to enjoy competitive advantage because there are many then the number of customers of the competitors companies (Fifield1998). In addition, the company has an effective distribution strategy which ensures that the company’s products reach the customers’ disposal conveniently (Robert2004). Through franchising and use of middlemen, the products of the company are able to demand of the customers since the products supplied are adequate to satisfy the consumer demand. When compared to competitors, the marketing mix of ABB Grain Company has been very successful and that is why it is among the leading companies in Australia. Effective distribution strategy has enabled the company to create value for its products thus improving customer satisfaction leading to competitive advantage. Moreover, the pricing strategy of the company is effective when compared to other companies. The company applies competitive pricing as a way of attracting customers. The company offers quantity discounts as a way of improving customer after sale service. In this way the customers will be satisfied better unlike when there are no discounts given (Kotler 2002). In this effect, the company has been able to attract and retain customers hence competitive advantage. When compared to AWB Ltd which applies profit oriented pricing strategy, it can be concluded that ABB Grain has high potential of attracting and retaining customers due favorable prices charged for its products and services. Finally, the company promotes its products through corporate social responsibility. The company also uses sales people to promote the products of the company (McDonald 2002). The sales people move from one place to another to create awareness of the company’s products. When compared to the competitors like cargill Inc which uses media to market its products, the promotion conducted by ABB Grain Company is effective. This is because it is less costly and is appropriate to different market segments. Recommendations In order for ABB Grain to remain successful in the market, the company has to segment its markets into high income earning market and low income earners (Hatton 2000). Through market segmentation, the company will be able to price its products effectively without limiting the purchasing power5 of the customers. This can be achieved by analyzing the different needs of the different customers in the market segments. In addition, the company should price its products according to the product life cycle (Palmer 2000). Since the company enters new markets, the pricing strategy should not be necessarily competitive. The company can apply the product life cycle experience to price the products according to the stage of development like the introduction stage through to growth stage and decline stage (Hsu & Powers 2002). The prices should be different is these products stages. Conclusion ABB Grain Company has been the leading grain supplier not only in Australia but also in the global market. Having started in the year 1936, ABB Grain Company has had good brand name due to its quality of products it offers to customers and the strategies it applies like competitive pricing and effective distribution of the products. Due to globalization, the company has been facing stiff competitors from both the local companies and the international companies. ABB Grain Company has been threats of regulations which are imposed by different countries making it hard for the company to enter into some international markets forcing it to enter into strategic alliances with local companies to market and sale its products overseas. However, the company has managed to create and maintain its competitiveness by applying the marketing mix effectively like effective promotions and effective distribution thus improving customer satisfaction. References ABB Grain Company 2013, retrieved on 15th April 2014 from http://www.bloomberg.com/apps/news?pid=newsarchive&sid=agiccmy5NSKk David B. 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