Eagle Fertilizers: Paving the Route-to-Market Path

Abstract

In January 2021, Mehmood Arif, the Business Manager for Shadaab—a new product launched by Eagle Fertilizers in Pakistan—faced crucial decisions regarding the market strategy for this recently introduced product. Despite Eagle being the second-largest player in the Pakistani fertilizer market, Shadaab’s performance was underwhelming, contributing only 5% to the company’s top line. Pakistan’s fertilizer market predominantly comprises urea, a nitrogen-based product that overshadows the other two phosphorus and potassium-based fertilizers categories. Shadaab, however, is a ‘blended’ fertilizer containing all three major nutrients—nitrogen, phosphorus and potassium—designed to enhance crop quality and yield. Although Shadaab had demonstrated proven efficacy and had been well-received by farmers, its sales were not meeting expectations. Farmers are critical stakeholders in building an agribusiness brand, but due to low levels of awareness, Field Advisory Services were essential for educating them and raising awareness. Eagle’s primary route-to-market for its existing line of ‘straight’ fertilizers relied on a non-exclusive distribution network involving traders and retailers. Ideally, a higher percentage of sales should come from retailers, given their smaller size and greater reach. However, the sales team was primarily focused on traders, who provided financial stability and required less effort from the sales team despite being fewer in number. This emphasis, along with a lack of consumer demand, was negatively impacting Shadaab’s performance. Looking ahead, Mehmood Arif had four options for Shadaab’s market strategy. The first was to maintain the status quo, continuing with the non-exclusive, traditional, hybrid channel that farmers were accustomed to. The other options were to focus exclusively on retailers or trader dealers. The final option was to develop a direct-to-consumer channel.