Product Positioning - Translating technical features into customer value

Introduction

Welcome to the high-stakes world of agricultural product positioning, where science meets strategy, and a single decision can make or break a season for thousands of farmers. Imagine you're at the helm of launching a groundbreaking fungicide that could revolutionize corn disease management across the United States. This isn't just another product; it's a potential game-changer we'll call Ace Xpro®SC. But in a market saturated with options and skeptical growers, how do you ensure your innovation doesn't just become another bottle on the shelf?

In this deep dive into technical product positioning, we'll unravel the complexities of bringing Ace Xpro SC to market - Our fictional product. From dissecting its molecular magic to crafting a message that resonates with the most discerning farmers, we'll explore a comprehensive framework that turns scientific breakthroughs into market success. Whether you're a portfolio manager juggling product lines, a marketing director orchestrating campaigns, or a product manager translating features into benefits, this article will arm you with the insights needed to navigate the challenging terrain of agricultural product launches.

Buckle up as we journey through the cornfields of America, exploring everything from the nitty-gritty of fungicide formulations to the psychology of grower decision-making. By the end, you'll have a roadmap for positioning that could turn Ace Xpro®SC from a laboratory triumph into a field-proven favorite. Let's dive in and discover how to plant the seeds of success in the minds of growers across the nation.

This article contains 10 sections ordered as follows:

1. Product Positioning Overview: The framework
2. Technical Features of the Product: Understanding your Product in depth
3. Technical Product Positioning: Key biological targets and application timing
4. Key Differentiators and Key Buying Factors
5. Grower Segmentation: From common segmentation to user persona framework
6. Positioning Statement: Key core messaging and communication strategy
7. Marketing Strategy: Inbound and outbound marketing
8. Pricing: Value Pricing to maximize value capture; a real-world exercise
9. Rebates: Rationale behind the program
10. Launching Plan: How generic-driven companies launch a product versus an R&D organization

1- Product Positioning Overview: The framework

What is Product Positioning?

Product positioning is the strategic process of defining how a product is perceived in the minds of target customers, relative to competitors. It involves identifying the unique value the product offers, clarifying its key benefits, and differentiating it from alternatives. Effective product positioning communicates why a product is the best choice for a specific market segment, addressing the customers' needs, preferences, and pain points.

The goal of effective positioning is to create a lasting and favorable impression that influences customer decision-making and builds long-term brand loyalty. This involves crafting a clear positioning statement that speaks to the target audience, highlights key benefits, and differentiates the product from its competition.

Critical elements of product positioning include:

• Target Market Identification: Knowing exactly who the product is for and understanding their needs.
• Competitive Analysis: Evaluating competitor offerings and identifying gaps where the product can stand out.
• Value Proposition: Defining the unique benefits and advantages the product brings to customers.
• Positioning Statement: Creating a concise message that communicates the product’s core value.
• Marketing Mix: Using the right combination of product, price, place, and promotion to reinforce the positioning.

In essence, strong product positioning allows a company to carve out a distinct market niche, enhancing customer engagement and delivering competitive advantage.

The Product Positioning Framework

In this article, we will delve deep into a framework that I have developed over my career that ensures that anyone can build a keen, clear, and concise communication about your brand that resonates in the mind of the target customer.

2- Technical Features of the Product: Understanding your product

In the chemical sector, products are often introduced by highlighting their technical properties, which provide critical insights into their performance. For instance, in the crop protection sector, a product's molecular weight can indicate how quickly it moves within a crop’s leaf, affecting its efficacy. While there are many factors to consider when evaluating a product's technical profile, I will not go into all the details here, as it's beyond the scope of this article (see image below).

One critical factor is the recommended (or allowable) amount of Active Ingredients (AI) per hectare (or acre depending on the country), usually presented as a range. Applying less than the minimum can lead to underperformance while exceeding the maximum risks of phytotoxicity. Achieving the right balance requires extensive field trials under different conditions, especially varying levels of disease pressure. In my experience, many products fail when the commercial team pushes for lower application rates to improve cost per acre, breaking the most fundamental rule of crop protection: "The product must work."

Additionally, the product’s formulation type (such as SC, WDG, DF, or EC) plays a crucial role in its application and performance, making it a key factor for consideration in product evaluation and positioning.

As I did in the PLCM article, I will once again use a fictitious example to illustrate key points. For this article, let's consider a new product being launched in the U.S. market by the company Baygenta. The product, named Ace Xpro®SC, is powered by its proprietary active ingredient from the carboxamide group, Falsexyn™. Below, you’ll find an overview of the product’s technical profile, which will serve as the foundation for further discussion in this article.

You can see my PLCM article here.

In the image below, you will see what, I think, is the best way to review the technical properties of a product. This can give you a glimpse of the key features that any product manager must look at and understand for its product positioning.

To position a product like our new fungicide, Ace Xpro® SC, it’s essential to first grasp the fundamentals that shape its unique value proposition to the grower. Don’t worry—this article isn’t here to bog you down with dry technical details. Instead, it’s about uncovering how and why specific combinations of active ingredients make Ace Xpro® SC a powerful weapon against crop diseases. By understanding how pathogens attack crop cells and how we’ve engineered this fungicide to combat them, you’ll see why this product isn’t just another option but a carefully crafted solution designed to make a real impact in the field.

When a fungal pathogen attacks a crop, it progresses through five main cycles, each offering a chance for fungicides to protect the plant:

1. Spore Germination

• Cycle: Spores land on plant surfaces and begin germinating under favorable conditions.
• Fungicide Role: Preventive fungicides can be especially effective here, as they create a protective barrier on plant surfaces, stopping spores from germinating and establishing a foothold.

2. Penetration

• Cycle: The pathogen penetrates the plant, entering through natural openings or by breaking down cell walls.
• Fungicide Role: Some fungicides target cell wall degradation enzymes, disrupting the pathogen's ability to penetrate and infect the crop cells.

3. Mycelium Growth (Infection and Colonization)

• Cycle: The pathogen spreads through plant tissues, using the plant’s nutrients and causing visible damage.
• Fungicide Role: Systemic fungicides are ideal here, as they move through the plant tissues, reducing the pathogen’s ability to spread further and limiting damage to plant cells.

4. Pre- Sporulation

• Cycle: The pathogen produces new spores on infected tissues, which could spread further.
• Fungicide Role: Fungicides applied at this stage help contain the spread of the pathogen by reducing the number of spores the fungus can produce, limiting its ability to propagate.

5. Sporulation (Dispersal)

• Cycle: Spores are released and dispersed by wind or rain, ready to infect new plants.
• Fungicide Role: Residual fungicides or those with long-lasting action can be applied to uninfected plants to prevent germination and protect against incoming spores, effectively breaking the infection cycle.

Optimizing Fungicide Applications: Timing, Chemistry, and Crop Energy Balance

In the image below, I have created a framework that maps the typical fungal pathogen cycle against the most commonly used chemical groups in corn (row crops). This comparison highlights how different fungicides create intrinsic value, whether as a standalone product, as a premix, or as a later application in the fungal pathogen cycle.

A proactive approach—using fungicides preventatively—often yields the best results. By acting before infection sets in, you preserve your crop’s energy for growth rather than defense, ensuring it can focus on reaching its full potential throughout the season. In other words, imagine your crop's energy like a bank account. Every time disease strikes, your crop withdraws energy for defense instead of investing it in growth and yield. This is where smart fungicide preventative timing becomes your crop's best ally.

In a nutshell, applying fungicides with a preventative mindset maximizes crop resilience and minimizes the stress caused by pathogens. When timing and chemistry align, the result is a healthier, more productive crop, with stronger yields and reduced impact from disease pressures.

A simplified way to understand fungicide effectiveness is by examining a transversal cut of a leaf, as shown in the image below. Here, we can see three key factors that determine a fungicide’s value and performance:

1. Penetration power: Protectant fungicides form a barrier on the leaf surface, creating a barrier against spores, while systemic fungicides penetrate deeper, reaching internal tissues to stop infections at the source. The deeper the penetration, the more comprehensive the defense (there are more technical nuances about this, but I am not going to cover it because it is not the main focus of this article).
2. Speed of movement within the leaf: A fungicide's mobility within the leaf matters. The faster it moves through the leaf’s structure, the quicker it reaches potential infection sites, stopping pathogens before they spread. A good hint for this is comparing the molecular weights of the products.
3. Residual effect: Longevity is crucial. A fungicide with a strong residual effect remains active within the leaf for an extended period, offering lasting protection and reducing the need for frequent reapplication (cost-effectiveness).

Taking it a step further, understanding chemical groups helps us determine where specific fungicide products are best positioned. As illustrated in the previous image, the fungicide’s location within the leaf correlates directly with its intrinsic value.

When a product remains primarily on the surface of the leaf, it functions as a protectant (Multisites), offering a barrier against incoming pathogens. While this provides essential protection, its value is considered lower because it lacks the ability to address infections that may have already taken hold inside the leaf.

In contrast, systemic fungicides penetrate deeper, moving through the leaf’s internal structures. This internal mobility allows them to protect both current and emerging tissues, making them more effective against infections that are harder to reach and thus providing higher value to growers.

Degrees of Systemicity:

1. Translaminar: Moves from one leaf surface to another.
2. Xylem-mobile: Moves upward in the plant's water-conducting tissues.
3. Phloem-mobile: Rare in fungicides, allows for downward movement as well.

Personal suggestion: If you have to take a look at a specific AI, I would take a look at Flutriafol. This DMI looks promising for the US market.

The Value Equation: Beyond Just Chemistry

While systemicity often correlates with higher value, it's not the only factor. Consider:

• Efficacy: How well does it control target pathogens?
• Spectrum: Does it address multiple diseases?
• Residual Activity: How long does protection last?
• Crop Safety: Does it stress the plant?
• Environmental Profile: How does it impact non-target organisms?

To conclude this section, I will leave this table that helps you to understand the movements of the most commonly used fungicides in the CP industry.

Now, after covering the boring part of product positioning, we can focus on the fun part. In the sections that follow, we’ll dive into the strategic positioning of Ace Xpro®SC in the US market, this includes the following:

• Technical Product Positioning: Key biological targets and application timing
• Grower Segmentation: From common segmentation to user persona framework
• Positioning Statement: Key core messaging and communication strategy
• Marketing Strategy: Inbound and outbound marketing
• Pricing: Value Pricing to maximize value capture; a real-world exercise
• Rebates: Rationale behind the program
• Launching Plan: How generic-driven companies launch a product versus an R&D organization

3- Technical Product Positioning: Key biological targets and application timing

Based on the information on the technical profile of the product. This product has a strong profile for the following Crops and Biological targets:

Key Crops and target diseases:

• Corn: Tar spot, common rust, southern rust, and leaf spots
• Soybean: Septoria brown spot, soybean rust, and leaf spots
• Wheat: Leaf rust, Septoria tritici blotch, Tan spot

In this case, I will focus my positioning exclusively on Corn, but you can work on the positioning for other crops if you want to.

Now, let's focus on application timing; to achieve optimal product positioning in the crop protection industry, particularly with a new fungicide targeting corn foliar diseases, one of the most critical aspects is understanding and effectively communicating the ideal application timing. Extensive research supports that the most productive window for fungicide application on corn typically falls between the VT (tasseling) and R2 (blister) stages. In certain cases, the application might begin slightly earlier, at the V12 stage, but VT to R2 remains the widely recommended window for maximum efficacy across the vast majority of products in this segment.

Understanding and leveraging the technical features of your product allows for precise positioning in a way that enhances its value for both the grower and the firm. In this case, Ace Xpro® SC’s positioning aligns with the optimal application window of VT to R2. By focusing on this critical growth phase, Ace Xpro® SC can be differentiated from competing products based on efficacy, helping farmers achieve superior results and making it easier for the product to gain traction and loyalty in a crowded market.

This strategic approach not only highlights the science-backed benefits of timing but also reinforces brand value by focusing on delivering measurable yield improvement, thus fostering trust and preference among growers.

Now that we know the technical product positioning, let's deep dive into the key differentiators of the product and its key buying factors.

4- Key Differentiators and Key Buying Factors

Now, before going deep into this section, let's define what key differentiators and key buying factors are, and how they are related to utilizing these concepts in our simulated case of Ace Xpro®SC.

Key Differentiators are the unique attributes, features, or benefits of a product or brand that set it apart from competitors. For farmers, these are the unique strengths or features that make them choose one product over another. For instance, Ace Xpro’s triple-action formula (SDHI, QoI, and DMI) and its use of Falsetyn™ provide extra strength against tough diseases like tar spot. Differentiators may include tangible aspects, like advanced technology, superior performance, or exclusive features, and intangible aspects, such as brand reputation or customer service quality.

Key Buying Factors are the specific criteria or attributes that influence a customer’s decision to purchase a product. For example, when choosing a fungicide, farmers may consider several factors such as effectiveness in disease control, consistent performance, resistance management, price, etcetera. Key Buying factors vary significantly by industry and customer segment, as they reflect the needs and priorities of the buyer, which may include factors like price, quality, ease of use, brand trust, and after-sales support.

In marketing, key differentiators and key buying factors are concepts that are closely related but serve distinct roles in understanding and influencing customer decision-making.

How Key Differentiators and Key Buying Factors Are Related

Key differentiators and key buying factors are closely related because effective differentiation is based on aligning the unique attributes of a product with the main buying factors important to the customer. In other words, a differentiator has real value when it resonates with what customers care about most in their purchasing decisions.

The Relationship:

1. Matching Differentiators to Buying Factors: If a differentiator doesn’t align with a customer’s buying factors, it’s unlikely to sway their decision. For example, if performance is a key buying factor in crop protection, a fungicide with highly effective disease control will stand out as a differentiator (based on the LCP survey, from Purdue University, performance accounts for 57% of the purchase decision for growers).
2. Informing Marketing Strategy: Understanding key buying factors allows a brand to highlight relevant differentiators in messaging. For instance, if a company knows its target segment values low cost, it can emphasize cost-effectiveness as a key differentiator in marketing campaigns.
3. Building Competitive Advantage: The strongest competitive advantage occurs when a product’s differentiators address key buying factors that are under - or unmet by competitors. This alignment creates a compelling offer that speaks directly to customer needs while standing out in the market.

In summary, while key differentiators highlight a product’s unique features, key buying factors reveal what customers prioritize. Their interplay forms the foundation of effective positioning, with successful differentiation built upon understanding and addressing what matters most to the customer.

Now, after this brief parenthesis, we can continue with our simulated case of Ace Xpro®SC using real-world information from the Crop Protection Network (CPN). In this case, we will use the estimated yearly losses due to foliar corn diseases in the US.

In order to simplify our lives, we will use the assumption that the losses represent the KBF for growers, and our goal as the product marketing team throughout the article will be to align those with our key differentiators of Ace Xpro®SC to tell a compelling story about our product.

To build the story behind the key differentiators we must have field trial results in place with the "right" protocols in order to be sure about the performance of the product. For the sake of this exercise, we will assume that we have done everything perfectly in terms of product development and that we have all the information we need.

Imagine that we have all information tabulated in a way that is easier to digest and assess its relative importance, and now, based on field trials, we tested AceXpro's performance against competitors in the key diseases. The results are shown in the table below.

With this information, we have enough evidence to back our claims about Ace Xpro's performance against competitors. It is worth mentioning that we may have more information on field trials comparing this product against the standards in the market, however, for the sake of this exercise, I will present the table above as a simplified way to summarize the results.

Other key differentiators that can be used in your positioning statement are:

• Product formulation such as WP, WG, SG, EC, SL, SC
• Inert ingredients such as adjuvants, Emulsifiers and Surfactants, Stabilizers, colorants, and Odorants.
• Number of Active Ingredients (AIs) in your product formulation such as Solo formulation (1 AI) and Premixes (2, 3, or 4 AIs).
• Application ease
• Company's reputation

5- Grower Segmentation: From common segmentation to user persona framework

Let’s bring everything we’ve covered into context. At this point, we have a clear understanding of several critical aspects: the product’s technical features, its unique differentiators, optimal application timing, recommended rates, key competitors, and the main buying factors in this market segment.

Now let's focus on segmentation. Here I will share 2-types of techniques that can be used to ensure that your message is delivered properly to the grower: Basic Segmentation and Grower Persona.

5.1- Basic Segmentation: Technology Adoption Pyramid

For our product, Ace Xpro®SC, the primary target segment is growers managing corn foliar diseases. Geographically, around 70% of foliar fungicide applications for corn are concentrated in key states: Iowa, Illinois, Indiana, Nebraska, Ohio, and Kansas. Understanding the grower landscape in each of these regions is essential for effective positioning.

A practical way to categorize growers across these states is by using the technology adoption pyramid. This framework provides a broad view, classifying growers by farm size and their level of technology adoption—from traditional to cutting-edge practices. This perspective not only helps in tailoring messaging for each segment but also in identifying the key factors that drive fungicide choices across various types of operations.

In the example image below, I’ve created a sample matrix to illustrate how this categorization might look. This framework can be adjusted based on the data available within your organization, allowing for customization that meets specific needs. It’s especially beneficial for resource-conscious organizations, such as generic-driven or smaller companies, as it requires minimal financial investment but still provides valuable segmentation insights.

5.2- Grower Personas: Beyond Demographics

Taking positioning a step further, you can develop a detailed user persona—in this case, a grower persona. This persona is a representative profile of a specific type of grower who shares similar traits, pain points, and purchasing behaviors - A specific market segment. Building this persona enables you to align your product's key differentiators with the exact buying factors that matter most to this audience, helping your message resonate more deeply and making your communication strategy far more effective.

Imagine having a crystal ball that reveals not just who your customers are, but how they think, what keeps them up at night, and what drives their decisions. That's the power of a well-crafted grower persona. A grower persona is more than just a profile; it's a semi-fictional representation of your ideal customer, based on market research and real data about your existing customers. It encompasses:

1. Demographic information
2. Behavioral patterns
3. Pain points and challenges
4. Goals and aspirations
5. Preferred communication channels
6. Decision-making processes

In the image below you can see an example that illustrates how to depict a grower persona.

An important caveat about this methodology is that it requires time and resources such as market research, CRM information, and networking with the main actors in the industry. But if you do this properly, it will drive incredible results for positioning your brand.

Why Grower Personas Matter in Agricultural Marketing

In the vast and varied landscape of agriculture, one size definitely does not fit all. Here's why grower personas are crucial:

1. Targeted Marketing: Craft messages that speak directly to specific farmer segments
2. Product Development: Align product features with real farmer needs
3. Customer Service: Anticipate and address farmer concerns proactively
4. Sales Strategy: Equip your sales team with insights to connect meaningfully with prospects

Now that we know our key growers, we can move to the next stage of product positioning; Product positioning statements and the communication strategy.

6- Positioning Statement: Key core messaging and communication strategy

To build a strong communication strategy, I recommend a framework refined through my career and honed during my MBA in Boston and my recent program at Kellogg. While agencies and business schools may have slight variations on this approach, the core objective is the same: crafting a compelling value proposition that will drive your communication campaign. This framework ensures that your product’s message resonates deeply with the target audience, laying the foundation for a powerful and effective market presence.

This framework encompasses several key components: market insights and value, brand foundations and reasons to believe, and a clear positioning statement that encapsulates the value proposition. Below, you'll find an example I created using the technical information we've discussed. It’s worth noting that I’ve thoroughly analyzed all competing products within the same segment as Ace Xpro®SC, ensuring that our messaging aligns seamlessly with market expectations. Keep in mind that Ace Xpro®SC is a fictional brand, designed to illustrate effective product positioning in action.

Now, after building the rationale behind the positioning statement, let's build the key message statement. The logic behind this framework is that consumers, in this case growers, tend to remember at maximum between 2 and 4 key core messages. Therefore, the goal is to try to simplify and make all the technical jargon more digestible and understandable for the key users. In this case, we will focus on highlighting the unmatched disease control, higher yield potential, and reliable partner as part of our communication strategy.

With this information clear, you can now build the product pitch, which will help your sales team organization communicate clearly about your new brand. This can be utilized in social media, your website, or your sales pitch.

Let me dive deeper into the communication strategy. In the input industry, it’s common for companies to rely on agencies to craft their positioning statements. Typically, a company uses a framework provided by the agency and, then, fills out the key points with the technical information required for the positioning. Next, the agency refines the messaging to make it clearer and more impactful. However, in this case, I used ChatGPT to accomplish the same goal. And to be honest, it’s not only faster and more productive but also significantly cheaper than working with an agency. My recommendation for you is to leverage generative AI tools like this, as they can save substantial costs over time—especially considering many agencies are likely using these tools behind the scenes themselves and charging you the same amount.

7- Marketing Strategy: Inbound and outbound marketing

Now, with the communication strategy completed, we can start focusing on telling the story on different platforms.

Ace Xpro®SC Inbound and Outbound Marketing Strategy

Goal: Maximize market reach and leverage the strong influence of field trials and product performance on farmers’ purchase decisions for Ace Xpro®SC and position it as the top choice fungicide for growers looking to boost yield, enhance plant health, and effectively manage Tar spot and other yield-threatening diseases.

7.1 - Inbound Marketing Strategy - Online Marketing

1- Localized Field Trials & Data-Rich Content Creation

• Localized Field Trials: Conduct trials across diverse regions and farming conditions to gather compelling data on Ace Xpro’s efficacy in combating Tar spot and other key important yield threatening diseases promoting healthy yields. Collaborate with respected local farmers for authenticity, and use the trial results as key content across all marketing channels.

• Data-Rich Case Studies: Use these results to develop detailed case studies, comparing Ace Xpro to competitors in terms of yield, disease control, and resistance management. Share these insights in digital ads, newsletters, and social media to target farmers researching fungicide options.
• Interactive Application Timing Tool: Offer an online tool or app that helps farmers determine the optimal application timing for Ace Xpro®SC, customized to local conditions and disease pressure. This tool positions Ace Xpro as a strategic solution and builds a connection by demonstrating personalized value.

2- Digital and Social Engagement

• Educational Webinars and Q&A Sessions: Host virtual sessions featuring agronomists and trusted farming influencers to discuss Ace Xpro's application timing, trial results, and performance against competitors. These sessions offer valuable, data-driven insights for farmers, positioning Ace Xpro as the clear choice.
• Content Strategy & Social Proof: Encourage early adopters and influencers to share their experiences on platforms like Twitter, Instagram, and Facebook. Utilize posts, testimonials, and video content showcasing field trial results and real-world outcomes. Farmers gain social proof and build confidence in Ace Xpro’s performance.

3- Search-Optimized Content Marketing

• Performance-Focused Blog and Articles: Publish articles, infographics, and blog posts that break down Ace Xpro’s unique combination of SDHI, QoI, and DMI modes of action. Include evidence from field trials and its proprietary Falsexyn™ technology, highlighting competitive advantages that speak directly to farmers’ productivity goals.
• Comparative Content and Ads: Run targeted ads and distribute comparative content across digital farming forums, emphasizing how Ace Xpro outperforms competitors and aids resistance management. Link these ads to detailed product pages or case studies to deepen engagement.

7.2- Outbound Marketing Strategy - Traditional Marketing

1- Performance-Centric Outreach Campaigns

• Targeted Mailers with Field Trial Data: Send targeted print and digital mailers featuring field trial results, focusing on Ace Xpro’s superiority in yield protection and tar spot control. These mailers should also include compelling side-by-side data comparisons and testimonials from trial locations similar to farmers’ own conditions.
• Direct Email Campaigns: Develop segmented email lists for high-impact campaigns that highlight Ace Xpro’s field trial results, competitive advantages, and exclusive offers for first-time buyers or trial demos. Include clear calls to action to visit local demo events or speak with a sales representative.

2- Dealer Training and Incentives

• Dealer Training on Product Differentiation: Equip local dealers with comprehensive information on Ace Xpro’s key benefits and competitive data. Training should emphasize the product’s unique field trial results and modes of action, enabling dealers to clearly articulate why Ace Xpro is the top choice for high-performance fungicides.
• Incentivize Dealer Recommendations: Provide incentives for dealers to promote Ace Xpro by rewarding verified sales driven by product performance data. Dealers who actively educate customers on Ace Xpro’s proven efficacy gain recognition, reinforcing Ace Xpro’s commitment to product quality.

3- Engaging Demo Day Events and Field Trials

• Demo Days and In-Person Events: Host demonstration events in high-yield farming areas to showcase real-world trial plots, providing farmers the chance to see Ace Xpro’s results up close. Include presentations by agronomists on Ace Xpro’s unique benefits, such as its triple chemistry formulation, robust disease control, and long-lasting performance.
• Peer Influence through Local Testimonials: Position early adopters and field trial participants as brand advocates. Create promotional content featuring their testimonials and success stories on Ace Xpro’s efficacy, which can be shared by both the farmers themselves and Ace Xpro’s digital channels.

4- Bundled Offers with Performance Emphasis

• Bundled Sales with Complementary Products: Offer bundles that pair Ace Xpro with compatible crop protection products, emphasizing a “package of benefits” approach. Highlight how this combination not only boosts crop yield but also provides multi-layered protection, further distinguishing Ace Xpro in the crop protection market.

8- Pricing: Value Pricing to maximize value capture; a real-world exercise

Framework for Capturing Fungicide Value in the Market

In this section, I’ll introduce a framework I’ve developed throughout my career to help maximize fungicide value in the market. As covered earlier, three critical factors play a role in capturing a product’s full value: penetration power, speed of movement, and residual effect.

1. Penetration Power: This refers to the product's ability to enter and move within the plant tissue. Fungicides typically range from contact fungicides (remaining on the leaf surface), to translaminar fungicides (penetrating the leaf layers), to systemic fungicides (moving within plant tissues). Each level offers distinct benefits based on the disease profile and crop protection needs.
2. Speed of Movement: This factor, influenced by molecular weight, determines how quickly the fungicide spreads through the plant. Faster movement can mean quicker protective or curative effects, crucial for combating aggressive diseases.
3. Residual Effect: Every fungicide has a unique residual period, or how long it remains effective within the plant. A longer residual effect translates to extended protection, which is valuable for growers aiming for fewer applications over a season.

In the accompanying image, you’ll find a price ladder for a fungicide portfolio, which illustrates how these factors—penetration, speed, and residual effect—contribute to a product's intrinsic value and, ultimately, its market price. Although this example focuses on foliar corn disease products, the framework can be adapted to different crops and disease segments. Also shown is the price structure for premixes in this segment, offering insight into how combined products add value based on their enhanced efficacy and expanded modes of action.

Strategizing Pricing for Maximum Profitability

Firstly, to establish an effective pricing strategy for Ace Xpro® SC, we must take a comprehensive look at the competitive landscape. By closely analyzing the pricing structures of our primary competitors, we can ensure that our pricing aligns with market expectations and resonates with our target audience. This involves not only matching the value perceived by growers but also positioning Ace Xpro® SC as the optimal choice among available fungicide solutions. The comparative analysis below provides insights into competitor pricing, helping us identify key price points that meet market demands while reinforcing the product’s premium position in the fungicide market.

Secondly, with all the gathered information, let’s consider that we invested in a value pricing study that suggests setting the grower price at approximately $24 per acre - this type of market research costs, approximately, $35K. This price point not only aims to maximize profitability for our organization but also positions our new product as the market standard within a price-skimming strategy. By initially pricing Ace Xpro® SC at this level, we can capitalize on its high perceived value and benefits, making it an attractive option for growers seeking effective solutions for their crops.

Finally, in the image below, you’ll find a similar real-world exercise I conducted recently on value pricing in corn (see article here). In this analysis, Ace Xpro® SC was incorporated into the value pricing framework. The results were encouraging; The product is within the fair-trade line and it is in the top-right quadrant of the value pricing matrix, indicating a high perceived value and high perceived benefits.

As Ace Xpro® SC is set to become the new market standard for managing Tar spot, we can confidently anticipate that its superior performance will drive us toward our market share objectives in this segment. This strategic approach not only reinforces our product’s standing in the market but also aligns with our long-term growth goals.

Value Map Analysis

Given the extensive nature of this article and the wealth of high-quality insights it offers, I’ll refrain from delving into the specifics of how to translate this pricing strategy into net price and margin calculations. However, understanding these financial metrics is crucial for effective product positioning and ensuring profitability. If you’re interested in exploring this aspect further, I encourage you to read my article on pricing products in the chemical industry.

9- Rebates: Rationale behind the program

Let’s dive into the rebate program, starting with some key insights about how rebates function in the U.S. market. First, there’s a fundamental difference in how top R&D-driven companies and smaller, generic-focused companies structure their rebates. As illustrated below, the ratio between net sales and rebates for R&D companies averages around 30%, ranging from 23% to 46%. In contrast, generic-driven and smaller companies typically maintain a much lower rebate ratio, averaging 10%, with a range from 3% to 20%. Second, R&D companies often channel a larger portion of their rebates toward sell-out incentives—encouraging movement through the distribution chain and ultimately driving end-user demand. Generic-driven and smaller companies, however, tend to focus on sell-in incentives, which prioritize initial distributor sales.

Now let's review the implications and distinctions of how rebates significantly impact product positioning and channel dynamics.

R&D Giants: The Long Game Players

• Focus: Heavily emphasize sell-out incentives
• Strategy: Encourage movement of products through the entire supply chain, ultimately reaching end consumers
• Goal: Build brand loyalty and maintain premium positioning

Generic and Smaller Companies: The Quick Win Seekers

• Focus: Majority of incentives on sell-in
• Strategy: Push products into distribution channels quickly
• Goal: Gain market share and improve short-term cash flow

While the sell-in strategy might seem like a quick path to market penetration, it's not without its pitfalls:

1. Positioning Peril: Overemphasis on sell-in can dilute brand value, potentially relegating products to "commodity" status.
2. Inventory Overload: Pushing products into channels faster than they're pulled out by consumers can lead to bloated inventories.
3. Price Pressure: Excess inventory often leads to desperate price cuts, further eroding positioning and profitability.

If you haven't noticed this so far. This is exactly what happened in the industry over the last couple of years.

By understanding these rebate structures, companies can better align their incentive programs with their positioning strategies, ensuring sustainable growth and optimal inventory levels across the distribution chain.

Striking the Balance: Lessons for All Players

The rebate strategy divide offers valuable lessons for companies of all sizes:

1. Think Long-Term: Short-term gains from aggressive sell-in strategies can lead to long-term positioning challenges.
2. Invest in Pull-Through: Allocating resources to sell-out incentives can create a more sustainable market presence.
3. Monitor the Pipeline: Keep a close eye on inventory levels throughout the distribution chain to prevent overstock situations.
4. Adapt and Evolve: Regularly review and adjust rebate strategies to align with changing market conditions and company growth stages.

Now, after this explanation, let's focus on our product.

If you have read my article about rebates in the US market, you may have seen that there is a group of rebate buckets for each type of rebate: Distributors' rebates, retailers' rebates, and growers' rebates. In this case, I will use those fundamentals to break down the incentive plan of Ace Xpro® SC (see the rebates article here).

As you can see, the emphasis of this rebate program is sell-out, but carefully consider sell-in to ensure that we can secure the first sales of the product.

10- Launching Plan: How generic-driven companies launch a product versus an R&D organization

Before giving my opinion about how to launch Ace Xpro SC. Let's go over some fundamentals about how R&D and Generic-driven organizations launch products and the risks involved in those decisions.

10.1- Product Launch Strategies: R&D-Driven vs. Generic-Driven Organizations

A- R&D-Driven Organizations

R&D-focused companies take a strategic, phased approach to minimize risk and maximize impact:

• Phased Market Entry: Launching in select markets first allows companies to gather feedback and refine positioning before a full rollout.
• Early Risk Management: Cross-functional teams identify key risks and implement mitigation strategies, aligning development with launch readiness.
• Targeted Market Focus: Initial launches often concentrate on high-impact markets to build momentum and optimize resources.
• Customer Involvement: Engaging customers early—often through pre-commitments—validates demand and strengthens market entry success.

B- Generic-Driven Organizations

Without volume constraints, generic-driven companies face unique risks:

• Demand Overestimation: Excess production often leads to inventory surplus and financial strain.
• Price Erosion: High volumes can saturate the market, reducing prices and margins.
• Positioning Challenges: Heavy reliance on distribution for product positioning risks high return rates if demand is misjudged.
• Quality & Compliance Risks: Scaling quickly can compromise product quality and introduce regulatory challenges.

10.2- Launching Ace Xpro: Key Initiatives

Ace Xpro® SC is a blockbuster product that will become the market standard for corn foliar diseases, so it is important to have controlled growth over time in order to ensure that the key messages resonate in the minds of corn growers in the US market. This strategic plan contains 10 important tasks that must be accomplished (the "what", I am not going to cover the "how" due to the length of this article).

1. Staged Launch: Begin with a targeted rollout in key corn-producing states like Iowa, Illinois, and Nebraska. This allows for testing market reception and refining positioning before scaling up nationwide. Gradually expand to other corn-growing regions over subsequent seasons.
2. Early Adopter Focus: Initially target innovative, tech-savvy farmers who are opinion leaders in their communities. Their success stories and testimonials will drive broader adoption. Partner with these early adopters to gather real-world data on product performance.
3. Controlled Supply: Carefully manage production and distribution to create a sense of exclusivity and high demand. This helps maintain premium pricing and allows for gradual scaling of manufacturing capabilities.
4. Phased Label Expansion: Start with a focused label for key corn diseases. Plan for strategic label expansions in subsequent years to broaden the product's applicability and maintain market interest. This provides opportunities for "relaunch" marketing efforts with each expansion.
5. Integrated Education Program: Develop a comprehensive education initiative for farmers, agronomists, and distributors. This should include hands-on training, digital tools, and ongoing support to ensure proper product use and maximize results.
6. Strategic Partnerships: Collaborate with leading agricultural universities, extension services, and industry influencers to conduct field trials and generate credible, independent data on product efficacy.
7. Precision Agriculture Integration: Develop tools and partnerships that integrate Ace Xpro SC into precision agriculture systems, enhancing its value proposition for tech-forward farmers.
8. Robust Monitoring System: Implement a sophisticated system to track product performance, customer feedback, and market penetration. Use this data to inform ongoing strategy refinements and anticipate potential issues.
9. Sustainable Messaging: Position Ace Xpro SC as part of a holistic, sustainable crop management approach, aligning with growing interest in environmentally responsible farming practices.
10. Long-term Resistance Management: Develop and promote a clear resistance management strategy from the outset, ensuring the product's long-term efficacy and demonstrating commitment to sustainable agriculture.

This approach balances the excitement of a blockbuster launch with the need for controlled, sustainable growth. It allows for careful management of supply and demand while building a strong foundation for long-term market leadership through strategic expansions and continuous engagement with the farming community. For further details about launching products in the CP industry, you can read my article here.

Conclusion

As we conclude our journey through the intricacies of positioning Ace Xpro® SC in corn for the foliar diseases market in the US, it's clear that successful product launches in agriculture are far more than just science and sales. They're a delicate dance of innovation, understanding, and strategic communication.

The framework we've explored – from dissecting technical features to crafting user personas, from value-based pricing to strategic rebate programs – offers a comprehensive approach to product positioning that goes beyond traditional marketing. It's a blueprint for turning scientific advancements into tangible value for growers, distributors, and your organization alike.

Remember, in the world of agriculture, trust is cultivated as carefully as the crops themselves. By aligning your product's strengths with growers' needs, communicating value effectively, and strategically managing your launch, you're not just selling a fungicide – you're offering a partnership in prosperity.

As you apply these insights to your own product launches, whether you're with an R&D powerhouse or an agile generic manufacturer, keep in mind that the true measure of success lies not just in initial sales, but in becoming an indispensable part of growers' operations year after year.

Ace Xpro® SC may be fictional, but the strategies we've discussed are very real and proven. They have the power to transform how agricultural products are brought to market, ensuring that innovations in the lab translate to innovations in the field.

So, as you step back into your role – be it as a product manager, marketing director, or portfolio strategist – carry with you the knowledge that effective positioning is both an art and a science. It's about understanding not just the product, but the people who will use it. With this comprehensive approach, you're well-equipped to navigate the complex landscape of agricultural marketing, turning scientific breakthroughs into market success stories.

Now, it's your turn to take these insights and cultivate success in your own product launches. The fields are waiting, and the potential for growth is limitless. Go forth and position your products not just as solutions, but as catalysts for agricultural excellence.