Iowa State University

Cyclone Marketing
 INTRODUCTION
Midwest corn and soybean growers have seen tightening profit margins over the past several years while yields remain
strong and commodity prices decrease. Investments in on-farm storage have been made during this same time as a
means of risk management13. With the challenges in grain production, executing smart marketing decisions is essential
to managing a successful operation and maintaining profitability7. To take full advantage of grain marketing opportunities,
growers need an accurate measure of current grain inventories available for trade. Without exact numbers, growers pass
up profits on a portion of their grain as crop prices are volatile and fluctuate throughout the season12. Additionally, growers
are constantly seeking ways to increase operational efficiency13 and safety1.
grainTech, an established company in Ames, Iowa, has developed a valuable tool for growers with on-farm storage to
better account for marketable commodities and optimize marketing decisions. With over six years of experience in the grain
industry and a similar product for commercial grain handlers, grainTech is excited to introduce grainXact to the industry.
The grainXact system is attached to the grain bin auger and uses x-ray technology to accurately measure grain as it flows
in or out of a grain bin. Using these measurements, grainXact calculates the amount of grain in storage, helping growers
to make profitable marketing decisions. Additionally, grainXact can be programmed to automatically unload a specified
amount of bushels from the bin, giving growers peace of mind by showing the exact weight loaded. Furthermore, the
grower will save time by being more efficient with loading times and transportation when ready to sell. grainXact increases
operation safety by reducing the need to climb tall grain bins to check grain inventory. Increasing efficiency and safety,
grainXact is a valuable product for growers utilizing on-farm storage as a marketing strategy.
Marketing Strategy ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •
grainXact marketing strategy will focus on nurturing relationships with growers while building brand awareness and
increasing sales.

MARKET ANALYSIS
Industry Trends •••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •
Strong corn and soybean yields over the past several years have led to some of the largest production volumes in the United
States. Such large volumes have increased available supply and contributed to declining crop prices, thus incentivizing
producers to use on-farm storage as a marketing strategy and wait for higher prices9. Roughly 82% of growers utilize
storage as a way to market grain post-harvest8. According to the United States Department of Agriculture, 53% of corn and
34% of soybeans produced in 2017 were still in storage as of December 1, 201714. Growers utilizing on-farm storage are
continually seeking larger, faster grain storage systems and ways of managing grain inventory more effectively16.
With an increased need for improved accuracy, the agricultural technology industry is seeing an increase in the number of
products available15. Farm structure plays a substantial role in technology adoption. Larger operations are more likely to
adopt new technologies as the need for efficiency and financial backing are greater3. Additionally, younger growers who are
more experienced with technology are beginning to take over roles previously held by baby boomers5. An overwhelming
95% of growers feel investments in agricultural technology are “worth it”, while 80% already invest in one or more yield
monitoring technologies6.
Besides operation profitability, safety is another growing concern for the industry as the average age of growers and
operation size increases. Agriculture ranks among the most dangerous occupations and is associated with a high risk of
injury, disability, and death11. In 2016, 30 out of 60 agricultural accidents were reported as fatal with the leading cause of
fatality due to being alone. The number of reported accidents increased 25% from 2015 to 2016, while an estimated 30% of
non-fatal accidents are never reported4. Corn, with 45%, was the leading grain involved in such accidents1. In the Midwest,
75% of accidents were directly associated with grain storage facilities4.
Primary Research Findings••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •
Cyclone Marketing surveyed 120 growers across 12 Midwest states and discovered the following:
• 87.3% of growers utilize technology daily in their operation
• 75.6% stated that technology was fairly to highly integrated in their operation
• 20.2% and 18.5% credited technology for better records and increasing efficiency, respectively
Market Potential •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •
Over 67% and 63% of corn and soybean production, respectively, in the United States takes place in the Midwestern states
of Illinois, Indiana, Iowa, Minnesota, Missouri, Nebraska, and Ohio. The market potential for grainXact lies within these
Midwest states as 61% of U.S. on-farm storage capacity is found here14. More specifically, grainXact fits the needs of
large scale, grain operations as accuracy, efficiency, and safety are critical for operation success. These seven states have
11,727 grain operations consisting of 2,000 or more acres in corn or soybean production with potential sales of $176 million.

State IL IN IA MN MO NE OH Total % Total14

On-Farm Storage 1.5 0.9 2.1 1.6 0.5 1.2 0.5 13.5
61.5
Capacity (Bu.) billion billion billion billion billion billion billion billion
No. of 2000+ Acre
2,338 1,288 1,444 1,1,897 1,400 2,688 672 37, 049 31.7
Operations
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Target Market •••••••••••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••• • • • • • • • •
In year one, grainXact will exclusively target growers in Iowa. During year two, grainXact will expand to the
surrounding states that have high volumes of corn and soybean production including Illinois, Minnesota, and
Nebraska. Finally, grainXact will expand to Indiana, Missouri, and Ohio in year three.
2% Market Share 5% Market Share 10% Market Share
Year 1 250 Systems Sold Year 2 600 Systems Sold Year 3 1,200 Systems Sold

Customer Profile ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •

grainXact understands the differences in large farming operations today, while also realizing baby boomers and younger
generations (Generation X and millennials) are actively involved in the operations. Thus, grainXact has identified two key
customer profiles: the decision-making baby boomer and the younger influencer.

Decision Maker Dan Ford Family Farms, Inc. Influencer Isaac

• Early 60s • Early 30s

• Has 35+ years of farm • Values agricultural technology
management experience and seeks ways to utilize
• Open to integrating new technology in the operation
agricultural technologies in his • Wants to contribute to the
operation in order to sustain operation
business for next generation • Expects to take over
• Prefers to be in control of management in the next 5-10
operation decisions years
• Utilizes magazines and • Spends time on the internet,
newspapers as primary social media, and other digital
information sources sources when looking for new
technology

Competitor Profile •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • •

grainXact, and its patented x-ray technology, stands apart from competitors by more accurately measuring grain movement
and automating the load-out process. Additionally, the position of the system, attached directly to the grain bin auger, allows
grainXact to also calculate current inventory unlike other products on the market.

Location Technology Used Placement Display Accuracy Price

Patented X-Ray +/- 0.5-1% $15,000

grainXact Ames, Iowa Auger on grain bin Monitor
Imaging
United Weighing plate with Scale display $5,000
Grain Brain Auger on grain cart +/- 2%
Kingdom load cells with ticket +Shipping

Scale; Grain Varies Free

Load Tickets Point of sale Off-farm Printed tickets
moisture tester

SWOT Analysis • ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • •

Strengths Weaknesses
• Allows grower to make smarter grain marketing decisions • Technology gap of older generation and weak financial
by providing an accurate reading of on-farm inventory position of younger generation
• Increases operation efficiency and safety • Existing company with limited brand awareness amongst
• Minimal maintenance and calibration of unit target market
• grainTech’s six years of experience • ROI hard to realize if not moving large amounts of grain
within the operation
Opportunities Threats
• Increasing use of on-farm technology with transitioning • Volatile commodity prices reducing investment in on-farm
farm operator demographics storage and associated technologies
• Growing farm sizes with need to increase efficiency • Tight farm budgets and budget conscious growers
• Current methods for tracking grain inventory are less • Decreased production of corn and soybeans
accurate or occur after sale has been made

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 BUSINESS PROPOSITION
Product Description ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • • •
grainXact is an x-ray system mounted on a grain bin auger which determines grain flow by taking several pictures per
second as grain moves through the system. Images taken are used to calculate the volume of grain, in bushels, that moved
through the grain bin auger before grainXact reports the volume moved and bin inventory levels to a touch screen monitor.

Key Planning Assumptions •••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •

1. Grain production and operations in the Midwest will continue to increase in size and efficiency.
2. With volatile commodity prices, growers utilizing on-farm storage as a marketing strategy will need more accurate grain
inventory numbers for a competitive marketing advantage and increased profitability.
3. Increasing grower age and operation size coupled with transitioning farm labor will drive the need for investments in
agricultural technology. s
4. grainXact will be able to meet production of forecasted sales demand.
Goals and Objectives •••••••••••••••• •••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •
• Maintain 95% customer satisfaction through customer support systems while striving for 100%.
• Reach $18 million in gross sales by year 3.
• Obtain 10% market share by the end of year 3.
Strategy Statement •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • • •
grainXact provides growers with advanced imaging technology to quickly and accurately monitor grain flow and inventory
to provide better records, increase marketing advantage, and improve operator safety.

ACTION PLAN
Positioning ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • • •
grainTech is located in Ames, Iowa, a very convenient and strategic location for producing and distributing grainXact to
customers. A grainXact purchase includes the auger-mounted x-ray attachment, software, and product installation.
Price •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •
grainXact will be sold for $15,000 per system.

Place •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •
grainXact will be sold directly to growers with 2,000 or more acres in corn and/or soybean production throughout Illinois,
Indiana, Iowa, Minnesota, Missouri, Nebraska, and Ohio.
Promotional Strategies ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •
Sales and Support Team
In year 1, two sales representatives will cover Iowa. In year 2, two additional
reps will be hired to cover Minnesota and Illinois, while an Iowa representative Year 1
expands into Nebraska. An additional three representatives will be hired to
cover Missouri, Indiana and Ohio in year 3. In addition to selling grainXact, Year 2
this team will also aid in teaching growers on usage and evaluating system
Year 3
issues.
grainXact + Grain Bin Manufacturer Partnership Program
To effectively utilize marketing dollars and expand sales,
grainXact will partner with top grain bin manufacturers and
their dealers to reach growers installing new bins. Utilizing
plug-and-play marketing materials, manufacturers can push
out information on grainXact to their customers in the
targeted states. Additionally, this partnership will allow growers
the option to purchase grainXact when building a new bin.
Marketing Manager
One marketing manager will focus on grainXact’s marketing strategy, create content for promotions, attend trade shows,
and build crucial partnerships for product testimonials.
System Technicians
In order to strive for 95% customer satisfaction, grainXact will hire 7 system technicians over the 3 years to not only install
but also maintain and repair grower systems.

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Promotional Strategies (Cont.) •••••••••••••••••••••••••••••••••••••••••••••••••••• • • • • • • • • • • •
Trade Shows and Conferences
In each of the three years, grainXact will strategically
attend trade shows with an emphasis on farm machinery
or grain production to increase brand awareness and
generate new sales leads. The grainXact trade show
booth will include a model of the product, demo videos
and information about the product. Geo-targeted Facebook
advertisements will be used during trade shows to reach
attendees and promote a 10% trade show discount and
drawing for two tickets to the Pro Farmer Midwest Crop
Tour. During the Top Producer Seminar, in years 2 and 3,
grainXact will sponsor a session where Chip Flory, editor
of Pro Farmer and radio host, educates grower attendees
on the importance of knowing when and how to market
grain.
Year 1 Year 2 Year 3
• Iowa Power • Husker Harvest • Fort Wayne
Farming Show Days Farm Show
• North American • National Farm
Farm and Power Machinery Show
Show • Top Producer
• Top Producer Seminar
Seminar
Multimedia
• Social Media:
grainXact will educate growers and influencers through
the use of YouTube and Facebook. A series of short videos,
including product demos and customer testimonials, will
be shared on grainXact’s social media accounts.
• Company Website:
grainTech’s website will host a series of pages for
grainXact which will allow growers to see features of
grainXact, demo videos, estimate ROI, and contact a
local sales representative.
Direct Mail
To reach decision makers, grainXact will send direct
mail beginning in year 1 to potential and current
customers, sharing product details and driving them
to grainXact’s website and social media, as well as
promoting grainXact’s booth at upcoming trade shows
in the grower’s region. Postcards will be sent out four
times a year in relation to trade show schedules and the
Advertising
• Print & Digital:
In all three years full page advertisements, including
advertorials, will be placed in Top Producer, a popular
magazine among growers, quarterly to increase brand
awareness while educating growers on grainXact’s
benefits. Digital advertisements will also be placed
quarterly in Corn eDigest newsletter.
• Podcast + Radio:
Research shows that 88% of growers listen to farm
broadcasting 3 or more times a week10. grainXact will
produce an excerpt for Ag News Daily’s #TechTuesday
podcast series in addition to paying for advertisements
to be played bi-weekly during these and the
#MondayMarkets podcasts. grainXact will also place
bi-weekly advertisements on AgriTalk After the Bell with
Chip Flory featuring current customers experiences with
grainXact’s ability to help aid in marketing decisions.
grainXact while educating media outlets on the benefits
for growers.
Public Relations
• Earned Media:
As grainXact expands into new geographical territories,
press releases and media kits will be sent to regional
publications including Farm Progress publications like
Wallace’s Farmer, Indiana Prairie Farmer, Nebraska
Farm, and more. Press releases will introduce grainXact
while educating media outlets on the benefits for growers.
• ISU AgEds 450 Farm:
Iowa State University is home to the only student-
operated farm at a land-grant university in the nation.
grainXact will host a lecture at the farm for students who
engage in daily management of the AgEds 450 Farm in
conjunction with grain storage and agronomy professors.
grainXact will have a representative available to discuss
the grainXact product, and its advantages. Additionally,
in year 1, a grainXact system will be donated to the
AgEds 450 Farm to increase brand awareness among
students while hosted lectures continue in years 2 and 3.
• State Farm Bureau Workshops:
grainXact will partner with state Farm Bureau offices
to host Winning the Game, a workshop led by extension
specialists and Farm Bureau commodity services
managers, to help growers develop a post-harvest
marketing plan. Workshops provide an opportunity for
growers to be educated on the value of storing crops for
higher profit.
• Farm Safety Week & Trainings:
In years 2 and 3 grainXact, in partnership with the
National Education Center for Agricultural Safety, will
sponsor the agricultural safety trainings for emergency
responders and growers in targeted regions and promote
National Farm Safety Week to the community. 10% of
sales during the month of September will be donated to
the Center to expand both adult and youth farm safety
programs.
Promotions Timeline
Year 1 Year 2 & 3
• Manufacturer Partnership • Manufacturer Partnership
Program Program
• Multimedia • Multimedia
• Direct mail • Direct mail
• Print + digital advertising • Print + digital advertising
• Podcast + radio advertising • Podcast + radio advertising
• Earned media • Earned media
• ISU AgEds 450 Farm • ISU AgEds 450 Farm
donation + lecture lecture
• Farm Bureau workshops • Farm Bureau workshops
• Farm Safety Week &
trainings
4
 FINANCIALS
Income Statement
Units Sold
Price per Unit
Gross Sales
Trade Shows Discounts
Net Sales
Unit Cost
Cost of Goods Sold
Operating Expenses*
Gross Margin
Marketing Expenses
Sales Representatives
Travel Expenses
Marketing Manager
System Technicians**
Creative Development
Manufacturer Partnership
Trade Shows & Conferences
Direct Mail
Website
Advertising
ISU AgEds 450 Farm
State Farm Bureau Workshops $
Farm Safety Week & Trainings
Monitoring & Measuring
TOTAL Marketing Expenses
Net Profit
Profit Margin
Year 1 Year 2 Year 3
250 600 1,200
* = 50% Cost Share
$ 15,000.00 $ 15,000.00 $ 15,000.00 ** = 75% Cost Share
$ 3,750,000.00 $ 9,000,000.00 $ 18,000,000.00
$ 18,750.00 $ 45,000.00 $ 90,000.00
$ 3,731,250.00 $ 8,955,000.00 $ 17,910,000.00 Trade Show Expenses Year 1
$ 10,000.00 $ 10,000.00 $ 10,000.00 One-Time Display Expenses $ 51,550.00
$ 2,500,000.00 $ 6,000,000.00 $ 12,000,000.00 Iowa Power Farming Show $ 7,050.00
$ 47,500.00 $ 14,750.00 $ 16,225.00 TOTAL Cost Year 1 $ 58,550.00
$ 1,183,750.00 $ 2,940,250.00 $ 5,893,775.00
Year 1 Year 2 Year 3
$ 160,000.00 $ 328,000.00 $ 576,400.00
$ 60,000.00 $ 120,000.00 $ 210,000.00
$ 55,000.00 $ 57,750.00 $ 60,638.00
Trade Show Expenses Year 2
$ 138,750.00 $ 240,188.00 $ 351,422.00
Husker Harvest Days $ 10,050.00
$ 50,000.00 $ 30,000.00 $ 30,000.00
North American Farm &
$ 7,050.00
$ 18,750.00 $ 45,000.00 $ 90,000.00 Power Show
$ 58,550.00 $ 67,150.00 $ 64,700.00 Top Producer Seminar $ 50,050.00
$ 8,664.00 $ 50,202.00 $ 70,362.00 TOTAL Cost Year 2 $ 67,150.00
$ 20,000.00 $ 10,000.00 $ 10,000.00
$ 167,000.00 $ 167,000.00 $ 167,000.00
$ 11,000.00 $ 1,000.00 $ 1,000.00
Trade Show Expenses Year 3
15,000.00 $ 60,000.00 $ 105,000.00
Fort Wayne Farm Show $ 7,050.00
--- $ 275,000.00 $ 500,000.00
National Farm Machinery
$ 7,600.00
$ 187,500.00 $ 450,000.00 $ 900,000.00 Show
$ 950,214.00 $ 1,901,290.00 $ 3,136,521.00 Top Producer Seminar $ 50,050.00
$ 233,536.00 $ 1,038,961.00 $ 2,757,254.00 TOTAL Cost Year 3 $ 64,700.00
6% 12% 15%

MONITORING & MEASURING

Maintain 95% Customer Reach $18 million in Gross Sales Obtain 10% Market Share by
Goal
Satisfaction by Year 3 Year 3

Means of Analysis Customer Feedback and Surveys Financial Reports Financial Reports

• Strengthen current customer • Invest in excess profits back into

relationships
Exceeds
• Expand marketing strategies
• Develop customer testimonials
• Evaluate feedback to
Less Than identify weaknesses
Exceeded • Develop strategic plans to
address areas of discontent
business
• Evaluate business to see if
continued growth is possible
• Evaluate sales team distribution
and quarterly sales
• Review marketing promotions
ROI
• Re-evaluate target market if
needed
• Continue to increase sales while
maintaining customer satisfaction
• Determine key areas of product
weakness
• Evaluate marketing strategy
effectiveness

CONCLUSION
Today’s Midwest corn and soybean growers demand greater record keeping and efficiency in their operation as crop markets
remain volatile. Cyclone Marketing will strategically position grainXact as a valuable tool for growers with on-farm storage
as a way to enhance their marketing strategy and boost profitability. By tactfully targeting both farm decision makers and
influencers, grainXact will establish itself as a premiere marketing tool for corn and soybean growers.

5
WORKS CITED
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Farmer. Retrieved from: http://www.indianaprairiefarmer.com/story-should-know-working-grain-grain-bins-9-138118

2. Bennett, C. (2016, February 3). A Steady March of Grain Bin Deaths. Ag Web. Retrieved from: https://www.agweb.com/
article/a-steady-march-of-grain-bin-deaths-naa-chris-bennett/

3. Castle, Lubben, & Luck (2016, March). Factors Influencing the Adoption of Precision Agriculture Technologies by
Nebraska Producers. University of Nebraska-Lincoln Digital Commons. Retrieved from: https://digitalcommons.unl.edu/
cgi/viewcontent.cgi?referer=https://www.google.com/&httpsredir=1&article=1050&context=ageconworkpap

4. Cheng, Field, & Issa (2017, March). 2016 Summary of U.S. Agricultural Confined Space-Related Injuries and Fatalities.
Purdue Extension. Retrieved from: http://src.bna.com/nhX

5. Clark, E. (2018). Top Ten Megatrends in Agriculture. AgWeb. Retrieved from: https://www.agweb.com/article/top-10-
megatrends-in-agriculture-ed-clark/

6. Cornhusker Economics (2015, May 25). Precision Agriculture Usage and Big Agriculture Data. University of Nebraska-
Lincoln. Retrieved from: https://agecon.unl.edu/cornhusker-economics/2015/precision-agriculture-usage-and-big-
agriculture-data

7. Edwards, W. (2015, May). Cost of Storing Grain. Iowa State University Extension and Outreach Ag Decision Maker.
Retrieved from: https://www.extension.iastate.edu/AgDM/crops/html/a2-33.html

8. Farm Credit Services of America (2017). Grain Marketing: Producer Practices and Attitudes. Retrieved from: https://
www.fcsamerica.com/docs/grain_marketing/fcsamerica_grain_marketing_survey_full_report_may2017.pdf

9. ISBSWorld (2017, June). Farm Product Storage and Warehousing in the US. www.ISBSWorld.com. PDF.

10. Millennium Research (n.d.). Farm Radio Connects. Retrieved from: https://nafb.com/sites/default/files/blogs/
Marketing%20and%20Research/Farm%20Radio%20Connects_72nd%20Convention.pdf

11. Missikpode, C. et al. (2015, December 2). Trends in non-fatal agricultural injuries requiring trauma care. US National
Library of Medicine. Retrieved from: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4669366/

12. Nebraska Farmer (2016, May 6). Should you add more on-farm grain storage? Retrieved from: http://www.nebraskafarmer.
com/story-should-add-more-farm-grain-storage-37-141087

13. Pocock, J. (2013, March 3). New innovations in grain storage systems for higher capacities and better grain quality.
Farm Industry News. Retrieved from: http://www.farmindustrynews.com/grain-handling/new-innovations-grain-storage-
systems-higher-capacities-and-better-grain-quality?page=1

14. United States Department of Agriculture - National Agricultural Statistics Service. (2012). Quick Stats. Retrieved from:
https://quickstats.nass.usda.gov/

15. Vangsness, A. (2018). 2018 agriculture trends aim for accuracy. Forge Steele County. Retrieved from: http://www.
forgesteelecounty.com/2018-agriculture-trends-aim-for-accuracy/

16. Wehrspann, J. (2015, September 17). INDUSTRY INSIDER: Trends in grain handling. Farm Industry News. Retrieved
from: http://www.farmindustrynews.com/grain-handling/industry-insider-trends-grain-handling

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• Iowa state University

IOWA STATE UNIVERSITY

National Agri-Marketing Association
Ryan Calvert Jordan Geis-Agar Kayla Morgan Matt Stenzel
Emily Campbell Kristi Goedken Hannah Pagel Megan Striegel
Courtney Davis Emma Harper Rebekah Sletten Dalton Tietz
Rebecca Frantz Ashley Moore Elizabeth Smith Megan Warin

Advisors: Amanda Blair + Marcie Fahn