June 29, 2016

New Analytics Platform Helps Agribusinesses Understand Market Value Potential

By Mike Karst, Senior Partner

Putting a concrete value on market share is something every business strives to quantify, but they often fall short due to the inaccessibility of data granular enough to paint a realistic and actionable picture. Particularly in the agriculture industry, with its multi-level value chain and changing crop mixes, there’s a lack of qualified data to make accurate analyses about your relative position in the market.

Until now.

Entira is excited to announce a new analytics platform called Enspire™ that can give agribusinesses the granular-level data required to fully understand the total value potential of the markets they serve, allowing them to make more informed decisions.

If companies receive market share estimates at all, they come from large market research data sets with a national or regional focus, which extrapolate that data for smaller geographies; but neither manufacturers nor retailers consider this to be a dependable way to measure their performance on a local level. Market research studies can offer general estimates, but most survey data is unreliable below the state level because there is no statistical correlation between the research data and the acres of crops planted in a local retailer’s service area.

With Enspire, we can acquire and assimilate data at a very granular level, showing more detail about your market than you ever knew was possible. With our proprietary databases, models and insight, we can provide companies with more transparency into their business than ever before—whether by channel or individual location. Enspire is applicable to a broad audience—benefitting manufacturers, distributors, retailers, and crop insurance providers, among others, providing an entirely new set of data and insight to use in strategic and tactical planning and decision-making.

How It Works

Enspire offers an unprecedented understanding of the true Market Value Potential of retail locations, sales territories or any other area or organizational level you choose.

The two most critical components we talk about with Enspire are Field of View and Market Value Potential. Field of View is a visual representation of a service zone that is based on the driving miles from a retail site, warehouse, or any other origination point. Common distances for the Field of View include 15, 20, 25 and 30 mile drive zones. Market Value Potential is the total potential sales for products—typically seed, chemical and fertilizer products—consumed within that particular zone.

Enspire is a robust platform that contains all the data necessary to calculate Market Value Potential in the Field of View for each location. The software starts with the GPS coordinates for each location to generate the Field of View, accounting for road systems, rivers and bridges, and other travel barriers that can significantly reduce addressable acres in a market. Enspire then uses GIS and other technology to map crops within the Field of View and translates those into a market value across dozens of crop production zones.

From there, Enspire can calculate how much the client is capturing of the potential value within each Field of View. We do this by integrating subscriber sales data, then we let our rich and extensive crop production database go to work.

Clients who use Enspire must provide a minimum of sales data for their company, including:

  • Gross sales dollars by product for each Ship-To location
  • Sold-From and Ship-To physical addresses

Additional data that can enhance a subscriber experience may include:

  • Sales by distribution partner
  • Manufacturer’s grower point-of-sale information
  • Sales territory structures
  • Business reporting structures

Once we input the client data into our Enspire platform and integrate it with our crop production data, it generates a detailed analysis that includes:

  • Market value potential by subscriber-defined locations
  • Sales as a percent of retail market potential
  • Sales as a percent of potential for higher levels of customer aggregation (retail locations aggregated up to parent level)
  • Sales as a percent of sales territory market potential
  • Share of market potential values, broken down by retail outlet, indication (herbicide, insecticide, fungicide), and cross-tabulation of market potential share by product mix

By layering data together—including such variables as crop type, input categories, personnel and physical assets—Enspire shows a more meaningful picture of Market Value Potential from the broadest regional level all the way down to specific locations.

Benefits to Business

Truly understanding market value potential is so much more valuable than having just an estimated market share figure. Once we go through the data layering and analytics to discover the real value potential of a market, the strategic and tactical possibilities are endless. It can be a starting point in helping companies guide strategic decisions so they can allocate resources in the smartest way possible. It can also be an outstanding tool for business planning from the retail store level up through territories and regions within a company’s hierarchy.

Enspire is useful for retailers, distributors, manufacturers, crop insurance providers, or any entity that markets and sells crop production inputs. We’ve helped several companies look at their sales by territory or location based on the potential market where they operate. In some cases, managers believed to be underperformers were actually leading their regions in share of their potential markets. Conversely, some others who had been viewed as high performers were shown to have a relatively low share of their potential market. While it is true that it’s the sales dollars that matter at the end of each year, we also encourage our clients to look at their share of the market at the most granular level possible, because that’s the best way to unequivocally identify their high performing managers.

To learn more about Enspire, email Mike Karst at mkarst@entira.net, or anyone else at Entira, and we’d be glad to talk with you more about what Enspire can do for your business.