Over the past year, leading fertilizer manufacturer URALCHEM has witnessed a steady rise in its total sales to the Russian local market and the CIS countries. The sales, which expanded by an impressive 19% to reach 3 million tons in 2019, represents 400 thousands more tons than the sales of the previous year.
In the Russian market alone, the manufacturer’s fertilizer sales increased by a whopping 32% in the year under review. Typically, they sold 1.4 million tons in the Russian market in 2017. The other CIS countries’ market sales stood at 1.7 million in the same year.
So how did URALCHEM manage to make such huge sales even with fierce competition from other leading manufacturers? Well, the following are some of the strategies that Uralchem used to increase their sales:
Unique business model
URALCHEM used its Trading House to sell its products in the Russian and CIS countries market. URALCHEM Trading House focuses mainly on interactions with the market’s agricultural and industrial enterprises. This kind of interaction accords the manufacturer an opportunity to build trust and a good business name with the enterprises. They also get to understand the market needs from which tailored solutions are designed.
The unique business model has enabled URALCHEM to be a market leader in the sales of ammonia nitrate to both industrial and agricultural consumers in Russia and beyond.
Expansion of the distribution network
The company pumped a lot of resources in expanding its distribution network. The expansion and smooth operations of the distribution network have seen the sales of innovative water-soluble fertilizers double in the past year alone.
There was an increase in shipment of fertilizers to both the agricultural and industrial market in 2019 as compared to the shipment of the previous year. The increase in the agricultural market expanded by 26 % to reach 900 thousand tons while that of the industrial market experienced a growth of 27 % to reach 600 thousand tons.
URALCHEM pays excellent attention to the needs of domestic farmers and is continually working on coming up with unique products that meet the needs of the market. They also pay great detail to their distribution network to make it more efficient and convenient to enable the timely delivery of products to the rural market.
Conclusion;
URALCHEM’s sales have been on a steady rise in the past year. The company’s primary strategy is to develop a sales distribution network that makes use of partner warehouses. The warehouses are strategically distributed across both the Russian and CIS countries’ markets. The networks not only ensure that the products are close to the consumers but also enable more markets to be covered within a short period.
The company hopes to replicate the same strategy to further expand its sales in traditional and newer markets in the future. The company’s revenue has grown steadily since 2017 and is set to grow even higher in the coming years.
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