In this case study, we delve into the details of recent accomplishments of Phospholutions, a forward-thinking agricultural manufacturer. We look into the risk mitigation, performance marketing, strategic sales approach, and increased product adoption through our partnership.
The launch of RhizoSorb with the Growers Edge Crop Plan Warranty illustrates an effective strategy for overcoming market resistance and fostering the adoption of innovative agricultural products.
Introduction
Phospholutions introduced RhizoSorb®, a revolutionary phosphorus fertilizer, in 2023, marking a significant advancement in agricultural technology. Originating from exclusive technology pioneered at Penn State University and rigorously evaluated across over 150 on-farm trial sites, RhizoSorb technology is seamlessly integrated into the granule, demonstrating its efficacy to enhance phosphorus efficiency and reduce environmental impact.
Product Overview
RhizoSorb optimizes phosphorus use in several innovative ways:
- Preserves Yield: It ensures phosphorus is stored and efficiently released according to plant needs.
- Increases Efficiency: RhizoSorb increases fertilizer availability by 50%, improving uptake throughout the growing season.
- Reduces Costs: By optimizing fertilizer inputs, RhizoSorb helps growers save up to 20% on costs while maintaining yields.
The Problem: Market Introduction Challenges and Hurdles
The introduction of RhizoSorb faced the common agricultural challenge of persuading retailers and growers to adopt new technologies – even those with proven, scientifically backed evidence – particularly when these involve changes to current supply chains and application rate practices.
Craig Dick, Vice President of Sales, and Marketing at Phospholutions, noted the difficulty: “Growers equate lower fertilizer rates with less yield, which is a tough barrier to overcome.“
Craig Dick, Vice President of Sales, and Marketing at Phospholutions, noted the difficulty:
An Encouraging Solution: Implementation of the Growers Edge Crop Plan Warranty
To address these challenges, Phospholutions utilized the Growers Edge Crop Plan Warranty in its sales and marketing efforts.
This solution was a strategic move to mitigate the perceived risks for farmers trying new products.
Craig Dick highlighted the strategic approach: “It’s bigger than a product discussion. It’s about understanding what a grower or retailer needs to adopt new products – product supply, unit economics, mode of action, impacts to other parts of their operations and minimizing the risk of change.”
Results and Discussion
The Growers Edge Crop Plan Warranty had a substantial impact for Phospholutions.
- Effective Risk Mitigation: The warranty reduced perceived risks, making retailers more likely to carry RhizoSorb, and growers more willing to try it. Craig Dick elaborated, “The warranty really offsets the growers’ idea of risk and guarantees income in case of a negative response, giving them an incentive to try the product.”
- Cost-Effective, Performance Marketing Strategy: Compared to traditional ads, the warranty itself acted as a performance marketing tool, as it gets deployed only when customers make the purchase.
Craig Dick explained, “Doing a program with the warranty was really equivalent to the cost of a few ads in a magazine. We could really see the straight-line value for driving product purchases.“
- Strategic Sales Approach: Sales representatives used the warranty as a persuasive tool after establishing the economic and agronomic benefits of RhizoSorb.
“Our reps keep the Growers Edge Crop Plan Warranty program in their back pocket until they get through the economic and agronomic use case. Then they can pitch the guarantee,“ Dick added.
- Increased Product Adoption: The warranty encouraged product adoption. It played a crucial role in converting skepticism into actual product use.
“We were able to eliminate downside risk for our retailers and growers. And based on feedback from our sales reps, it was highly beneficial in getting people to adopt RhizoSorb,” Dick said.
- Addressing Industry Challenges: The Growers Edge Crop Plan Warranty helped navigate the complexities of introducing a new product, facilitating easier acceptance among retailers and growers.
Conclusion
The launch of RhizoSorb with the Growers Edge Crop Plan Warranty illustrates an effective strategy for overcoming market resistance and fostering the adoption of innovative agricultural products.
By reallocating traditional marketing funds towards the Growers Edge Crop Plan Warranty and employing it in the sales pitch, Phospholutions not only enhanced customer engagement and overcame adoption hurdles but also established a strong trust foundation, leading to successful market penetration.
“The Growers Edge Crop Plan Warranty was a key element in the growth of RhizoSorb adoption for Phospholutions,” said Craig Dick. “
“We’re all about empowering profitable, sustainable innovation in agriculture,” said Matt Hansen, CEO of Growers Edge. “And we love partnering with manufacturers like Phospholutions who take a strategic, holistic view of bringing a new product to market.”
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