The John Deere strategy is to market the purchase of a classic green John Deere tractor along with matched Frontier implements as "green on green." But Horrell says it's not quite as simple as painting the equipment green to match the tractor.
In the case of the Kubota and Land Pride pact, the tractor maker will actively market the Land Pride line of implements under the Land Pride label while both maintain their corporate brands.
John Deere conceived the idea for its Frontier Equipment line in 2000 during strategy meetings with its Dealer Advisory Council. According to Michael Horrell, marketing manger for Frontier Equipment, it wasn't about increasing profits.
If the wide-ranging views ag machinery manufacturers hold about business alliances is at all reflective of where the industry is coming from, it's no wonder that some consider the industry to be fragmented and even fractured.
There's nothing all that new about business alliances, where two concerns seize the opportunity to capitalize on each other's respective strengths to increase sales and capture market share. But the coalition of Kubota Tractor and Land Pride implements brings a new dimension to the partnership game in the farm equipment world and has many shortline manufacturers and their dealers wondering where this era of "pick your partner" will ultimately lead.
If anyone is qualified to lend an empathetic ear to today’s ag equipment dealer, Bob Crain is near or at the top of the list. He grew up on the dealership side of the business, and this year marks his 25th year participating in agribusiness from the manufacturing side of the industry.
Not everyone in the farm equipment community would say they follow the leader when it comes to John Deere. But few will deny that it’s part of their strategy to watch the leader. Shortly after Deere releases its quarterly earnings recently, dozens of “breaking news” reports immediately flood the Internet news sites and wire services.
On its website, AGCO Corp., sometimes called the “teenager” of the big four ag equipment makers, boasts “approximately 3,900 independent dealers and distributors around the world.” What it doesn’t say is that about half or more of its dealers are located in the U.S. and Canada alone.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we take a look at how the flooding in Texas will impact the ag industry and check in with some dealers in the region.
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