Roullier steps into south China market with new marketing model
Date:08-08-2016
July 2015 saw the founding of Roullier Group VITAS Business Unit, marking the entry of the 57-year-old French fertilizer giant in the south China market. Thereafter, a brand new marketing model for imported fertilizer emerged in south China.
VITAS has a team of 400 experts in France working on product research and customizing products to meet the specific requirement of the clients. VITAS is currently promoting its novel smart fertilizer D-Coder, which achieved remarkable sales within only two months of entering the south China market in April this year.
D-Coder can release fertilizer in quantities that match the specific nutritional requirements of the plant. The product’s utilization of nitrogen, phosphorus, and potassium can reach 70%, 90%, and 80% respectively. To better serve the soil of southern China, magnesium and zinc have been added to the product, while its pH value ranges between 7.2 and 7.5, so the soil will not become acidic.
Celia Perez Ledesma, the chief executive of VITAS South China Region, said, “Although the selling price is high, we are selling both a high-quality product and our services. It is a package deal.”
At present, under the regular business practices of international fertilizer suppliers in China, Sinoagri or Sinochem are typically chosen as their general agency in China. The general agency then distributes the products down the supply chain. The usual technical service and sales tracking is mainly done by general agencies and distributors.
Unlike other imported fertilizer suppliers, VITAS directly approaches city or county distributors to integrate with agricultural material retailers for joint exploration and development of the market. This means that its technical service and sales representatives get into the end market at the very beginning of promotions, which is helpful for market exploration initiatives, as they are supported by the package deal concept, combining the product with service. Once farmers have purchased a VITAS product, they are offered services and problem-resolution methods.
Celia noted that the marketing model was conditional on two principles: non-exclusive sales and ensuring that the price system remains unchanged and is identical to the terminal retail price.
To ensure that the technical service offering is firmly in place, VITAS is currently working on widening enrollment, focusing on the recruitment of technical and sales personnel to work in the terminal market in the southern part of China, such as Guangdong, Guangxi, Hainan, and Fujian.