Colin Fain and the advantages of Market Intelligence
There is nothing worse for the agricultural producer, than the permanent uncertainty regarding the behavior of the prices that their products will reach in the different markets of destination, the quantity and quality of the competitors' production, and the moments and volumes of demand for their products. products, among other uncertainties.
Colin Fain is founder of the Agronometrics company, dedicated to Market Intelligence, and will be one of the exponents at the 6 ° International Seminar "Cranberry industry in Mexico: new challenges, new opportunities", to be held at the 8 in June the Hyatt Regency Andares Hotel in Guadalajara, Mexico. At the meeting, the international expert will develop the theme "Current status of blueberry production in Mexico and influence of potential competitors."
There is nothing worse for the agricultural producer, than the permanent uncertainty regarding the behavior of the prices that their products will reach in the different markets of destination, the quantity and quality of the competitors' production, and the moments and volumes of demand for their products. products, among other uncertainties. Year after year, these data must be guessed only with intuition, using the indexes achieved last season, the impact of external elements on crops and other variables that allow us to sketch an approximate calculation of profitability.
It is almost impossible for the producer to have precise indexes that allow him to plan efficiently the production process and its different stages. It is therefore necessary to resort to the analyzes and projections built with the methods of Market Intelligence, because to have access to more accurate and detailed information regarding fluctuations in prices, volumes of production, and demand of the different markets in advance. , to project the production on the basis of concrete values, is an ideal scenario for any producer, since it can also plan future investments on the basis of costs and returns calculated a priori and with medium accuracy, in a time and place also quantifiable.
"People have a habit of always approaching their traditional markets and then the price is the one that touched them, they are not fiddling with the market, they are not opening the doors to all the options that could be found. A tool like Agronometrics adds a level of transparency to the market that previously did not exist. So that a producer who is thinking about exporting has a better idea of what is happening outside the country, to know where there are opportunities, so that he can begin to explore within those markets. There are many things that can answer the data, such as what container to have, what fruit to send, where to send that fruit, etc. and the prices are giving you the answer you need to know in order to make the best decisions"Says Colin Fain regarding the process of data crossing.
What is Market Intelligence?
We understand first that intelligence is the ability to relate knowledge that we have to solve a certain situation, or more accurately, it is the ability to correctly choose between several alternatives, because it is a word of Latin origin (intelligere) composed by intus, which means "between", and legere, which means "choose". So, being smart is knowing how to choose the best option among those given to us to solve a problem.
Market Intelligence, on the other hand, is an information and strategy mechanism that relates variables of market data using different methods and tools that help in making managerial decisions, based on three disciplines:
- Business Intelligence, which is responsible for feeding the Market Intelligence system with information from the business itself, internally.
- Competitive Intelligence, which provides information and analysis of the competition, a key element in a comprehensive market intelligence system.
- Market Research, a discipline that analyzes consumer behavior, answering the questions: what people buy; who buy; how they buy; why they buy; and when they buy.
We can conclude that the Market Intelligence is an information tool resulting from these three sources of information, which feed through a permanent flow of data the market analysis center of the company.
The question that arises is, what does Market Intelligence help us with, and the answer is composed of multiple actions, such as being able to observe what is happening; understand why it happens; predict what will happen; decide on what should be done or what path should be followed to find a better position for the company, or discover new potential markets, know and interact better with customers, minimize investment risks, increase profits and reduce expenses, identify new opportunities and new scenarios, or establish commercial goals, among other objectives.
Source: Martín Carrillo O. - Blueberries Consulting