Corporate marketing policy: Priority directions and promotion of new technologies on the global market

June 1, 2012

Each year adds a new page in the history of the company. Today, we are flipping the 66th and again there is a cause to review and summarize the scope of our activities. Despite the difficult macroeconomic circumstances, Minsk Tractor Works (MTW) continues to maintain its status as the largest manufacturer of tractors in the territory of the former USSR and one of the leading tractor manufacturers in the world. To keep pace with the times, means making the right choices, determining priorities and clearly highlighting the key points, following the current tendencies of development in the field and staying ahead of the events by predicting changes in the consumer demand. For the MTW export department, there is no other way. The marketing policy is planned while taking into consideration the current conditions and developments of the world markets. The Marketing Director of MTW, first deputy of MTW General Director, Mr. Alexander Zvirko, told us about the modern product development technologies that are currently in place at MTW, about the export volumes from Belarus and about the future plans.

— Alexander Ivanovich, how does the plant cope with the export volumes of tractors abroad?

— Summarizing 4 months of work, MTW has reached the following indicators of export growth. Overall eexport growth comprised 107.2%. Total equipment deliveries to overseas reached 367.4 million dollars, which resulted in positive export surplus. During the period between January-April 2012, when compared to the same period the year before, the MTW enjoyed an increase in its export volumes to Russia, Turkmenistan, Azerbaijan, Armenia, Kazakhstan, Kirgizstan, Uzbekistan, Tajikistan, Angola, Vietnam, Ireland, Yemen, Costa-Rica, Morocco, Mongolia, Nicaragua, Pakistan, Czech Republic and Equatorial Guinea.

— Considering the use of modern technologies in agriculture tractors market, high power equipment is experiencing increase in demand. Several years ago, our plant made the correct strategic decision in favor of the development of the production of high power Belarus made tractors. Today, these tractors are being actively marketed abroad. What are the results of the work in this direction?

— On the world market, emphasis has been placed towards more powerful tractors, 120-150 hp and up. This tendency is observed not only in the European countries, but also in North America and in former USSR markets. This year, the plant has increased supplies of high power Belarus made tractors abroad. Within 4 months, their export volume has increased 1.5 times and comprised a total of 2,852 tractors. Compared to the same period in 2011, the sales of Belarus made tractors of 1200-series, 1500-series, 1800-series and 2000-series has increased. 30 tractor sets of the new model, “Belarus-1822.3”, have been shipped to China.

The main markets for 3000-series tractors this year have become Kazakhstan, Russia and Ukraine.

In order to sell the tractors to Kazakhstan, 120 disassembled model 1221.2 Belarus tractors and 10 model 3022DC.1 tractors were shipped to TOO “SemAZ”. To Ukraine, the plant shipped a total of 250 model 1221.2 tractors to the LLC “Technotorg Don” and LLC “Ukravtosapchast” assembly factories. In addition, tractor sets of high power MTW tractors of 120 hp and above, are also supplied to Azerbaijan, Venezuela, Poland and China. This year, the first batch of two model 3022DC.1 tractors had been shipped to China.

The organization of new assembly lines, and the expansion of the Belarus made tractors model lineup in the existing facilities, is one of the prioritized directions of the high-power MTW equipment marketing strategy abroad. This year, a new assembly line of tractor model 3522 had been setup in Russia, at the CJSC SMZ “Kranspecburmash” plant in the Amur Oblast.

— What other marketing techniques are employed to increase the export volumes?

— This depends on the particularities of our target markets, customer requirements, economic factors and many other considerations.  For this reason, MTW today employs various techniques to promote and market its products, including supply of equipment through the JSC “Prom-Agroleasing” leasing company. Last year, through the leasing program of equipment for agriculture, 79 tractors had been sold. This year, as of May 17, this number stood at 266 Belarus made tractors.

— The expansion of the worldwide market is one of the contributing factors to the   expanding influence of MTW. The cooperation with which new countries has been established in the current year? Which prospective export destinations are currently being reviewed?

— The new markets for the company product line include — Iraq, Mongolia, Sweden, Colombia, as well as Bangladesh, Canada, Congo, Nigeria, Burkina-Faso, Yemen, Myanmar, Tunisia, Djibouti and Equatorial Guinea.

Priority export development destinations for MTW include North America, Africa, Latin America and South-Eastern Asia.

— Which steps have already been taken to develop cooperation with the afore-mentioned countries?

— A great deal of work has been performed in these directions, which resulted in a number of agreements regarding the subjects of the development of cooperation in the area of export of Belarus made tractors. For example, an increase is planned in the supply of our products to South Africa.  In the near future, members of the Ministry of Industry and Trade of South Africa are planning to visit the MTW plant, as well as the specialized trade-show “Belagro 2012”. This show, as well as the MTW plant, will also be visited by members of the Ministry of Agriculture and head of the Agriculture development fund of Mozambique. During the visit of the Mozambique delegation in Minsk, we plan to continue negotiations on matters, concerning the supply of Belarus made tractors and the organization of an assembly line. These areas of cooperation are also expected to be discussed in the coming days with the Nigerian side, at the time of the visit of MTW representatives in Nigeria.

An agreement has been reached on the supply of Belarus tractors to Bolivia. A contract on the sales of model 952.3 tractors is being prepared. The Bolivian side is interested to purchase  Belarus made tractors in the 79-90 hp range.

By the end of June, a shipment of two Belarus tractor models 522 and rototiller 09N is expected to arrive in Myanmar. Their supply had been concluded in a recently signed contract addendum with «Dynasty Excellency PTE LTD» - the MTW representative in Myanmar. Upon the arrival of the equipment, MTW specialist will travel to Myanmar to assist in the demonstration of the tractors. The honorary consul of Belarus in Myanmar, Mr. Aung Mint, will participate in these promotional activities. He also plans to invite local farmers to the exhibition, as well as entrepreneurs, who may be interested in the purchase of our equipment.

— A strategic partner of MTW in South-Eastern Asia is Pakistan. A few years ago, before the disaster, this country was a leader among the foreign markets in terms of purchase volumes. At present, as we know, the company faces the task of achieving the previous scopes of cooperation. How is it being worked out?

— MTW works with several companies from Pakistan. This country is already the largest importer of Belarus made tractors in South-Eastern Asia and the Middle East. This year, within 4 months, 1545 tractors had been shipped to Pakistan. In addition, a letter of credit had already been opened to supply 3585 Belarus tractors. This year, the plant intends to ship no less than 6000 Belarus tractors to this market.

— What are the current foreign joint projects in which MTW currently takes part?

— One of the examples of such projects is the cooperation between Belarus and Mozambique. Our republic offered the Mozambique side to introduce a 5-year long program, aimed at the development of agriculture in the African nation. This program was developed based on the Belarus experience and assumes the utilization of Belarusian agricultural equipment. The Ministry of Agriculture and the Agriculture development fund of Mozambique expressed their interest towards the implementation of this program. The first step in this direction will be to study the soil properties by specialists of the National Academy of Sciences of Belarus, the results of which will be the basis for the issue of recommendations towards the most appropriate cultivation of agricultural crops in Mozambique.  In turn, our company has already provided the Mozambique side with equipment catalogs — tractors and tractor implements. Once the soil analyses are complete, the required equipment nomenclature and its quantities will be determined.

— The status of MTW, one of the leading tractor manufacturers in the world, obliges the plant to keep up with the times, to follow modern global tendencies in the production of agricultural machinery.  What is being done today, to remain among the world leaders in the long run?

— At present, MTW puts emphasis on the design and sales of tractors with Tier 3 and Tier 4 engines, which allows us to gain a good niche in this segment of the world market. Belarus tractor model 3522.5 had already been shipped to Hungary, model 2022.5 to the Czech Republic. Export of tractors with the Tier 4 engine is also planned to Bulgaria, Lithuania, Latvia, as well as to other European countries.

Alexander ZVIRKO:
— On the eve of the 66th birthday of the company, I would like to convey my sincere greetings to all tractor-builders and, primarily, to the veterans, who devoted the best years of their lives to MTW and today, while on a well-deserved rest,  proudly follow the successes of their dear plant. Over the years of the MTW existence, labor tendencies appeared and warm traditions formed. I wish all the former and present plant employees health, success and fulfillment of their plans, may their work in MTW contribute to their well-being and make it possible for them to keep up with the times, to take pride in their enterprise and staff.

Source: «Belarus-MTW Review»