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Business Internal
Business Internal
customers?
Declaration of authenticity 3
Introduction 4
Conclusion 14
References 15
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DECLARATION OF AUTHENCITITY
utilized especially to fulfill the purposes and objectives of this subject, and has
not been previously submitted to any other institution for other purposes. I also
declare that the publications cited in this work have been personally consulted.
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Introduction:
nutrition programs and technological methods to elevate the yield of the crop.
With the high demand in products, Yara Ecuador started to integrate the
existing portfolio to the Ecuadorian market. Since 2018, their main problem had
to the single delivery point that they have in the country. Thus, in that same
year, the business started to applied solutions to improve their problems with
customers, as cellphones calls, mails and the introduction of apps for the
technical assistance of the customers. So the question in which this work would
focus is: To what extent the improvements communication and closeness that
Yara Ecuador have applied in the last years have created a positive impact on
Score of May and November of 2018, a Brand Market Survey 2018 and a
magazine article talking about the top businesses in Ecuador. The business
tools and theories to be used to analyze this problems are: a fishbone diagram,
force field analysis, perception map and one of marketing’s four P’s, promotion.
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Findings and analysis:
Image 1.1 – Yarecuador Cia. Ltda Fishbone Diagram for the year 2018,
analyzing the causes that lead to the failures in communication and closeness
In both the Net Promoter Score of May and November of 2018, Yarecuador
have the same conclusions: the business need to work in marketing and human
resources area, as the main complain of the customers is the lack of connection
between seller-buyer.
Despite the fact that Yarecuador have documents such as the NPS and the
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fishbone diagram was made to summarize and target the specific reasons why
closeness with their customers. It was divided in four categories, being them the
Norway, where is the headquarters of the CEO and the Board of Directors.
reducing their power of control, making them unable to respond faster when the
Yarecuador, as they have few employees for them to divide into working in the
office and assisting farmers with the fertilizers, giving another difficulty to the
business, as the employees communicate only with the customers, no with the
they do not received the attention that they need or want. Also, the business’
Methods to turn over their products to their customers is one of the causes of
the failures in communication and closeness, as the they have just one delivery
point, making them have delayed deliveries, which make them be behind their
Yarecuador’s services. Moreover, Materials is the last category that cause the
time to arrive on time to its destiny. Plus, the apps that they use, as a solution to
improve their communication with the customers do not satisfied them, as the
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By analyzing the results of the fishbone diagram, it can be conclude that due
to the international condition, Yarecuador do not have the enough power to take
big decisions without the intervention of a third. And also according to the
interview made to Hurtado, one of the key sources of the problems is the lack of
because they outnumber the few staff in the office, so what Yarecuador tried to
do, is give technical assistance through phone calls, mails and apps, but they
still received complains about the logistics of the business. Thus, a main issue
highlight in the interview, was the lack of delivery points: there is just one in
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Tool #2 – Force Field Analysis
The H.R and the Marketing Managers of Yarecuador analyzed the results
of the two Net Promoter Score make in 2018, and realized that at the beginning
of the year the most followed recommendation of distributers and farmers was
the business’ prices of products, but the managers of Yarecuador could do little
about these, as they do not have the power to change this factors, because the
while there was a 4.55% of farmers calling for the same improvement, and the
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main problem being the prices of Yarecuador with a 50% of farmers, and
farmers, in the other hand, the main problem that the customers found was in
Yarecuador had try different ways to satisfied the customers, such as via apps
like TANK and CHECK IT, or via queries, mails and cellphone conversations.
and technical support, stated in the NPS’ of 2018, the managers of the business
Ecuador. There are four major driving forces that the business would have to
take in consideration when deciding if this change is feasible. The first one is
of the farms, but no with the farmers, because there are too many of them in
5 in the force field analysis, because is the main advantage as is the most claim
issue that the distributors and farmers have when taking queries, also a change
like this was thinking of to give more close places for an easier communication
between seller and buyer. Then, there are two driving forces with a rank of 3, on
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time deliveries and increased output, because this are benefits that Yarecuador
know that they would gain, but the purpose of the innovation was not
considered for this causes, but to decreased the logistics and communication
problems. A plus, that came with the change if Yarecuador decide to take it, is
longer a the ace card of more dispatch places in Ecuador, than Yara. As a
In the other hand, there are four restraining forces identify with this
innovation. The ones with most rank: 4, are construction costs, as a base
budget for one delivery point is $ 375000.00, and the total fees is $12550.00,
and if Yarecuador wants to improve their services, they would have to construct
approximately a 100 more, as Agripac have 160 delivery points around Ecuador
expend in a total fee of $12550.000.00; the other restraining force with rank of
4, is the new staff costs, because according to Xavier Hurtado, there have to be
minimum 5 employees for one delivery point, which makes 500 new employees,
and only with the minimum salary, the new staff cost per month would be
$187.500. The other two restraining forces have a rank of 1, which are: the new
would be nothing, compare to all the revenues that would give to Yarecuador;
and staff training costs would only generate profits, as one period of training
would give an efficient, productive and effective service, that would create a
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good environment for work, employees giving a good performance. Giving the
conclude, that the change of increasing the delivery points in Ecuador would
give a positive impact in Yarecuador and would give more advantages than
drawbacks, that make the business capable of taking a big step to improve the
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Tool #3: Perception Map
Image 3.1- Perception Map, created based on the records of the Brand Market
The main constrain that Yarecuador struggle with, is the lack of delivery
points. However, based in the Brand Market Survey, a perception map have
been made, where the growers and sellers of the products answer some
questions, in which they said that the only issue of Yarecuador is the lack of
communication with them, because talked with the owners and managers of
stores that buy their product, but they do not do it with the farmers, the ones
competitor, Agripac, which have a logistic advantage, because they have 160
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delivery points at national level, so the farmers could reach them very easily,
while Yarecuador only have one: Guayaquil. Furthermore, Agripac is one of the
Vistazo, they are in the 44th place of all Ecuador’s industries, while Yarecuador
Vistazo, that enlist the top 100 businesses that grew in revenues in that year; in
which the business, take the second place. Moreover, in the Brand Market
Survey, the growers of the crops, gave higher rates to Yara’s products than
those of Agripac.
only problem that the farmers witness is the lack of support by the offices when
they ask for technical assistance, which, according to Hurtado, is a very difficult
thing to do, because the recommendations change according to the place, floor,
texture and location and these demands a lot of staff. As well, Hurtado said that
the business would have a better liquidity, if they could have other alternatives
sellers.
Yarecuador had already talked about all this constrains, with the NPS,
the Brand Market Survey, and all the documents and strategies that they use,
managers had already target the communication issues and the lack of
technical advice, that’s why they have tried different things such as, via apps
like TANK and CHECK IT, or via queries, mails and cellphone conversations.
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Therefore, the business need to work in the promotion of their products,
their customers and consumers, to satisfied all their desires, thus, the brand
Conclusion:
years, such as using apps like TANK and CHECK IT, cellphones conversations
and mails, have not created a positive impact on the customers, because in the
queries and interviews, the customer and consumer complaint about the
logistics of the business, saying that they do not communicate as fluent as they
would want and that they do not receive the needed technical assistance when
buying Yara’s products. Prove of the unsatisfied farmers are the NPS and the
Brand Market Survey, because more than the customers make the same
statement through the year 2018: the communication and closeness is a key
factor to give a good service, and the business is missing this part of the job.
creating new forms to talk to customers and having more delivery points in
which the fertilizers could be dispatch and the farmers could come and ask
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References Bibliography:
http://ecuador221.com.ec/agripac-se-expande-e-inaugura-nuevo-local-
en-tumbes/
http://dspace.espoch.edu.ec/bitstream/123456789/7827/1/20T00941.PD
https://www.vistazo.com/proyectos-especiales/500-empresas-2018
https://www.vistazo.com/seccion/edicion-impresa/100-empresas-que-
mas-crecieron-en-ingresos-0
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Yara en Ecuador. (n.d). In Yara.com.ec. Retrieved on April 15th, 2019, from
https://www.yara.com.ec/acerca-de-yara/yara-ecuador/
Yara international asa. (24, April, 2019). In Msn.com. Retrieved on April 23th,
yariy/fi-a32kbh
Appendices:
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Supporting document #2: NPS May 2018
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Supporting document #3: NPS November 2018
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Supporting Document #4: Magazine Vistazo article, of the top business of
Ecuador, 2018
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Supporting document #5: Interview with Xavier Hurtado
First of all, it’s very difficult, because there are a lot of customers in comparison
TANK and CHECK IT, and queries. However, all of our decisions have to enter
How is the interaction with customers, or with how much frequency does
With direct customers (120), that are the managers or owners of a farm, almost
every week. However with the farmers, not at all. We do not sell directly to the
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farmers (consumers), the customers have to go to our delivery place in
For you, as marketing manager, what is the main problem that Yarecuador
have?
One of our limitation is the logistics: There is only one delivery point in Ecuador,
difficult for us to deliver all of it at time. So the delivery is very slow, and we wish
Also, the technical assistance: sometimes the farmers want a Yara employee
24/7, supporting and helping them, but it is difficult due to the time and costs
like transportation or the gap in the work at the office that the employee is living
by going to a farm.
It does not affect in a quantitative way, but if we talk about qualitative terms, the
staff is affect because, as much of personnel that the business have, they are
not sufficient, and at the end of the day they are exhausted.
Yes, Agripac has a logistic advantage, because they have 160 delivery points at
national level, so the farmers could reach them very easily, and they also have
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