John Deere Field Connect
Nebraska
Sandy Creek FFA
NE0166
2015
Oregon Trail Equipment (OTE) was founded in 2003 when 3 already existing John Deere Dealers
combined into one. They are a dealer for farm equipment, tractors, combines, sprayers, planters, lawn
mowers and skid steers. OTE has over 300 years of family history and is dedicated to exceeding customer
expectations. Between Nebraska and Kansas they have seven locations. OTE takes care of multiple
counties in the south central area because they are the only dealer in this part of the state. Being the only
dealer in this part of the state they have been able to provide services and other necessities to the local area
including maintenance, repair and GPS.
Market Analysis
Product/Service and Client Status
Oregon Trail and Equipment (OTE) has seven locations, which serve South Central Nebraska and North
Central Kansas. OTE’s area of service covers 11,000 square miles of prime and productive farmland which
is high in irrigation technology use. OTE currently employs over 150 people.
In order to help farmers cope with water restrictions, in 2012, John Deere released the Field Connect Soil
Moisture Sensor. In 2012, the Field Connect system came to Oregon Trail Equipment. Marketing this
product is a vital stage to Oregon Trail equipment as it allows them to add another service to their business.
Since it was released it has not been marketed to its potential by OTE. Field Connect is one of the top
water sensor products. The Field Connect system allows farmers to save on fuel inputs and maximize yield
potentials. Water restrictions are a concern to farmers in the area. With Oregon Trail joining the
competitive market of water sensors, it will allow them to prove their technology. By offering this service
through OTE to farmers, it will help customers and increase the services provided.
Industry Trends
According to the 2008 Census, Nebraska is the leading state in total irrigated acres with 8.56 million acres
being irrigated on an annual basis. While farmers have access to the aquifer, in recent years Nebraska has
seen drought plague many areas of the state causing farmers to pump more water and in some cases have
water restricted. These restrictions have led to the increase in soil moisture sensor use by farmers.
Buyer profile and behavior
The producer looking to include the Field Connect system into their operation is one who uses irrigation
technology, is concerned about using water efficiently and wants to maximize their inputs. Buyers most
likely to lease Field Connect are also looking for ways to increase technology within their operations.
Competitors SWOT Analysis
1.
Crop Metrics- $2650/ sensor Lifetime
license- $1500/pivot End tower
telemetry- $1500 pivot, Annual
investments- VRI services-$575,
Annual investments complete water
solutions package-$1975
Strengths
• Average water savings 2 inches per acre
• Reduction in energy cost
• Improvement of nearly 6 bushels/acre
per moisture probe
• Access data wirelessly
Weaknesses
2 Watermark Sensors
Strengths
• Corrosion resistant
• Not affected by freezing temperatures
Weaknesses
Many annual fee’s
Lifetime licenses must be purchased per
pivot
• Only measure down to 36 inches deep
• Only measures a 4 inch diameter circle
Opportunities
• Allows farmer to save water
• Use with Variable Rate Irrigation
Threats
• Cheaper Alternatives
• Depths and diameter test area are
smaller than competitors.
•
•
•
•
•
Meter is operated by batteries making
them unreliable
Only measure down in the ground 3 feet
Have to install three of them per field
instead of one sensor
• Have to convert data to a chart
Opportunities
• Lowest Cost
• Self Installation
• Used in any growing situation
Threats
• Data is not easily available
• Old Technology
Product/Clients SWOT Analysis
Our marketing team has identified the following SWOT analysis to help create a clearer picture of Oregon
Trail Farm and Equipment’s current situation:
Strengths:
• John Deere is a well known company; having been in business since 1837 and is known for their
superior products.
• Wide customer base with over 500 local customers
John Deere Field Connect
Strengths
• Measures an 8.5 inch diameter circle
• Dual modem data transmissionWeaknesses
Satellite antenna, cellular antenna
• Price is slightly higher than competitors
• Can be calibrated for specific soil types
• Product could be intimidating to non• Sensor spacing allows for optimal root
tech savvy producers
coverage
Opportunities
• By using this product you will work
• Backed by John Deere who is known
closely with you John Deere Dealership
for superior farming products
• Can wirelessly access data anywhere in
• Numerous pivot irrigation systems in
the world using your cell phone
the area
• Self Powered using solar panels
• Easily serviced with OTE being local
Threats
• Can use with any crop
• Cheaper alternatives
• Leasing field connect is all inclusive
price with service
• VRT could cause producers to not think
it is necessary.
• John Deere installs sensor for the
farmer
Primary Research Results- total of 30 respondents
From the research gathered we discovered the following about our target audience:
• 57% of the local farmers range from 45- 54 years old
• 91% have been farming for 15 plus years
• 96% are concerned about water restrictions
• 53% use center pivot irrigation technology
• 64% are comfortable using soil moisture sensors
• 43% use some type of soil moisture sensor currently
• 48% would use Field Connect system if they had more information
Business Proposal
Mission Statement
Designed for farmers to efficiently use water and maximize their operation.
Key Planning Assumptions
Producers will lease Field Connect for the following reasons:
• To maximize their inputs efficiently
• Increase use of technology throughout their operations
• Use irrigation technology more efficiently
• Conserve water use on their operations
Measurable and Attainable Goals
The measurable and attainable goals to be achieved by December of 2017 are as follows:
Goals for Oregon Trail, Field Connect Sales:
1. Increase the sales of Field Connect by 100 units in 2 years.
2.
Put on 3 workshops in the 2015 year with each workshop targeting 50 new and or existing
customers of Oregon Trail Equipment.
3. Increase the employment by 2 full time employees by 2017 (FTE) for the increase of sales and
service calls for the additional 100 units.
Target Audience
The main target audience is farmers who are currently employing irrigation technology in South Central
Nebraska. Farmers between the ages of 18-64 will be our main demographic. This area of Nebraska is a
high irrigation usage area with many farmers using center pivot irrigation.
Strategies and Action Plan
Product Attributes
The John Deere Field Connect has dual modem data transmission through satellite antennas and cellular
antennas as well. It can be calibrated for specific soil types in different areas. This product allows for
optimal root coverage with the right spacing. When using this product you will create a close relationship
with you John Deere Dealer. You can conveniently wirelessly access your data anywhere using your cell
phone or computer. The Field Connect is self powered by solar panels and you can use it with any crop.
The sensor will be installed for you by a John Deere Field Connect Specialist.
Price Structure
The initial lease price for Field Connect Soil Moisture Sensor is $2,499.00 for a one-year term. The price
for a 3-year term is $2,299.00/ year. This price includes installation, training, maintenance, setup and
service. When purchasing a 3-year term, all three years will be paid for upfront.
Distribution and Sales
The purchase of Field Connect Soil Moisture Sensors will be made through contacting Oregon Trail
Equipment. Customers can call or visit the store on their time to make the purchase of the lease whenever is
convenient. Once the product is purchased Oregon Trail Equipment will send out a Field Connect specialist
to install and help you learn how to operate the product.
Promotion
•
•
•
•
•
•
Mailing flyers to all current customers and extension education producer list at Oregon Trail
Equipment
Hold workshops to help customers understand the need and usage for the product
Quarter page ad in the Midwest Messenger
Set up an informational table at the Corporate John Deere booth at Husker Harvest Days
Oregon Trail Equipment booths at Lincoln and Kearney Farm Shows to help promote Field
Connect Soil Moisture Sensors
Ads in the local newspapers around the distributing area. In our distributing area most farmers
read the newspapers daily.
Product Positioning
Our product will be advertised via the internet, newspapers, flyers, farm publications and farm show
interactions. The advertisements will be run throughout the year, but will be really pushed during the spring
and fall. This will help potential customers recognize the Field Connect Soil Moisture Sensors with the
Oregon Trail Equipment name. Our main focus will be to sell our product through South Central Nebraska.
We believe the reliability of John Deere and the superior product quality of Field Connect will help people
see the benefits of our product against our competition. In year two, our goal will be to continue to promote
Field Connect Soil Moisture Sensors through established advertisements.
2015 Budget
Advertising Expenses
Mar-May
Printing cost for mailing fliers for 500
households @ .25/sheet
$125.00
Jun-Aug
Sept-Nov
$125.00
Dec-Feb
Postage for 500 letters @ .44/letter
$220.00
$220.00
Quarter page ad in Midwest Messenger
$87.50
$87.50
Table at John Deere tent at Husker
Harvest Days- Giveaways and product
information
$2,500
Lincoln Farm Show Booth
$565.00
Kearney Farm Show Booth
Clay County Newspaper Ad- Half Page,
$75/week
$420.00
$300.00
$150.00
$300.00
$5280.00
$5280.00
$5280.00
$5280.00
Building Rental
$100.00
$100.00
$100.00
Lunch and Refreshments
$500.00
$500.00
$500.00
Field Moisture Sensor Technician and
Sales
OTE Employee Salary
40 hours/week @ $11.00/hour
Workshop Expenses
Field Connect Complete Unit- 40 units
$3,360.00
Total Expenses for 2015
$134,400.00
$6,012.5
$6030.00
$9232.5
$6745.00
2016 Budget
Advertising Expenses
Mar-May
Jun-Aug
Sept-Nov
Dec-Feb
Printing cost for mailing fliers for 500
households @ .25/sheet
$125.00
Postage for 500 letters @ .44/letter
$220.00
Quarter page ad in Midwest Messenger
$87.50
Table at John Deere tent at Husker Harvest
Days- Giveaways and product information
$2,500
Lincoln Farm Show Booth
$565.00
Kearney Farm Show Booth
Clay County Newspaper Ad- Half Page,
$75/week
Field Moisture Sensor Technician and Sales
$420.00
$75.00
$75.00
$28,020.00
OTE Employee Salary
40 hours/week @ $11.00/hour
$5280.00
$5280.00
$5280.00
$5280.00
Building Rental
$100.00
$100.00
$100.00
$100.00
Lunch and Refreshments
$500.00
$500.00
$500.00
$500.00
Workshop Expenses
Field Connect Complete Unit- 60 units
$3,360.00
Total Expenses for 2016
$201,600.00
$5,955.00
$5,880.00
$6,300.00
$6,952.50
$25,087.50
Total Income
Units sold
2015 year
40 units- 3 year lease paid upfront- $2,229.00
$275,800.00
2016 year
60 units- 3 year lease paid upfront- $2,299.00
$413,820.00
Total Expenses
2015 year
$162,420.00
2016 year
$226,697.50
Net Profit
2015 year
$113,380.00
2016 year
$187,122.50
Evaluation
Monitoring and Measuring
Goal 1- Increase the sales of Field Connect by 100 units in 2 years. By keeping records and receipts we
will be able to monitor how many units are sold per year and make adjustments as needed. Alternative
strategies if not met will include sales calls to customers by OTE staff.
Goal 2- Put on 3 workshops in the 2015 year with each workshop targeting 50 new and or existing
customers of Oregon Trail Equipment.
By keeping a record of people attending and promoting our workshop on flyers and at farm shows we will
be able to increase the amount of knowledge in farmers about the Field Connect product. At the end of the
workshop we will ask participants to take a survey on utilizing Survey Monkey so we can monitor the areas
we need to improve on. Also attendees will be asked to recommend two local producers for contacting for
additional prospects to add to the Field Connect Workshop list.
Goal 3- Increase the employment by 2 full time employees (FTE) for the increase of sales and service
calls for the additional 100 units. With the new increase in leases of Field Connect system the OTE will
need to expand their employee base. With more customers, OTE will need more staff for solely meeting the
needs of Field Connect customers. As sales increase, the income from Field Connect allows us to hire more
employees with the first new employee to be hired by June 2015. Alternative strategies if not met will
include sales calls to customers by OTE staff.
Appendix