Talking Heads: Working with the market

publication date: May 8, 2008

 | 

author/source: David Roberts, Kubota Groundcare

Landscape & Amenity Product Update recently paid Kubota Groundcare a visit at their Thame offices to hear from David Roberts, UK Sales & Marketing Manager just what makes them tick.

LAPU: What do you think will be the short and long term effects of the current economic slowdown.

DR: I sometimes think that, as a nation, we are a little guilty of ‘talking down’ a situation and generating a crisis out of what may just be a correction, although there is no doubt that the current situation is serious and will have some degree of effect on the industry in certain sectors.

The market is waiting to see how the economy develops and just what the affects will be on business levels within the ground care sector. I do feel that the impact will be greater on our Construction products division in the short term.

LAPU:  What are the Kubota strengths that will carry the business through?

DR: We are the market leader in diesel Ride-on and Compacts and the ‘brand’ reputation is very strong. I feel this is an important factor in both good and bad economic climates. Our breadth of product gives us a breadth of market opportunities and we feel able to ride out any down-turn in certain sectors.

We are continually looking for opportunities. For instance we have recently seen growth in the Shooting market. Our 2005RTV launch has given us additional brand strength and the sales growth into theAgricultural market, and has given us access to a market we are targeting for other Kubota models.

This expansion of markets does not detract from the fact that our core areas are Local Authorities, Contractors and the Estates.

LAPU: Do you foresee any changes in your route to market?

DR: We currently operate a network of 80-90 UK dealer outlets which I feel is sufficient for our product range. I see the dealers as key within our activity. We will continue to be proactive in our approach with them via in-house training and support at ground level. We work hard to ensure we supply and they sell the right product to the right person.

LAPU:  Is there pressure on price?

DR: Our customers are discerning. We need to be competitive on price and repeat business is vital. Prices are on hold which, in effect, mans a small decrease.

The ground care sector has become highly populated in recent years with a range of both established and new manufacturers targeting the user. Our job is to emphasise Kubota’s strengths and values and to get our message across with regard to ‘lifetime cost’ where our products are particularly strong.

There is no doubt though that the industry has undergone a business culture change. There is pressure on pricing from much cheaper imports but the ‘maxim you get what you pay for‘ still applies. Our Tractor & ground care division turnover has doubled in the last five to six years which I feel justifies our strategy. We generated 15% of our sales from RTV business alone in 2007.

LAPU: Is the make-up of the UK market changing?

DR: I do think that the cheaper imports will affect the second hand market, and we are looking at ways of remaining competitive with such options as the introduction of a ‘basic’ range in some markets. For instance, we see the Smallholders requirements as suitable for this type of basic machine. This policy has proved successful in the US with targeting of certain markets.

One noticeable change has been more pro-activity with regard to planning by LA’s instead of late ordering which resulted in panic purchasing if the season started earlier. The Contractor sector has seen huge growth on behalf of LA’s but we feel it is now experiencing some slow down. However we still see the Contractor more prevalent than LA’s direct.

Business is made more complex, as the buying decision is being made in a number of different places and the business can come from a variety of source. As the products develop we are seeing a changing pattern. For instance we have done good business with a large civil engineering company for the supply of bank and verge maintenance equipment, so they build the road and then maintain it. Our three core markets of Agriculture, Consumer and Ground care require very different marketing strategies and we have become sharper and smarter with regard to our routes to market.

LAPU:  Can we expect to be reporting on additions to the Kubota range?

DR: We are always looking for the right opportunity and very soon our new M40-series 60-95hp range will be launched in the UK. This will give is further options in both Ground care, for example with Gang and Trail mowers and also Agriculture. We currently have around a 5 year life-span before we update model ranges. In the last three years we have successfully introduced new products such as the RTV utility vehicels, GR ride on mowers and increased M-series 50plus horsepower options.We will always listen to and work with the market.