IMPROVING COMMODITY POLICY IN AGRICULTURAL ENTERPRISES
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IMPROVING COMMODITY POLICY IN AGRICULTURAL ENTERPRISES

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17.07.2020
IMPROVING COMMODITY POLICY IN AGRICULTURAL ENTERPRISES
The article: This article identifies the most important products in the product range by their ABS analysis, which is one of the strategic marketing elements in industrial enterprises. It also concludes that low-income products should be excluded from the range or modernized.
Бойжигитов. сельское хозяйство и сельскохозяйственные науки.docx

IMPROVING COMMODITY POLICY IN AGRICULTURAL ENTERPRISES

 

Boyjigitov Sanjarbek Komiljon o’g’li, assistant

Samarkand Institute of economics and service

E-mail: [email protected]

 

The article: This article identifies the most important products in the product range by their ABS analysis, which is one of the strategic marketing elements in industrial enterprises. It also concludes that low-income products should be excluded from the range or modernized.

Keywords: marketing, strategic marketing, industry, ABS analysis, industry marketing.

 

After independence, Uzbekistan has entered the world stage with confident steps. Production of competitive and export-oriented products has been launched to attract domestic and foreign investments, to modernize and diversify the industry, to establish new industrial enterprises equipped with modern equipment, to use advanced technologies. The industry of our country is recognized as a modern state with dynamic development, with increasing economic power and potential. This is because, during the years of independence, all sectors of the industry play an important role in the development of high-tech industries.

In his address to the Oliy Majlis on January 24, 2020, the President of the Republic of Uzbekistan Shavkat Mirziyoyev deep structural reforms have begun. Modernization and competitiveness programs are underway in 12 leading industries. As a result, last year’s economic growth was 5.6%. Industrial output increased by 6.6% and exports by 28%. In 2019, our gold and foreign currency reserves increased by $ 2.2 billion and reached $ 28.6 billion… ” [1]. This creates the need for new competitive advantages, creating new jobs and increasing the income of the population, which will enhance the specialization of the national economy and diversify the production structure of the world economy through the intensive introduction of innovative technologies and modern scientific achievements in the industry. is the relevance of the issue.

Marketing strategy is a social process aimed at meeting the needs of the enterprise by adapting the capabilities of the enterprise to the market, developing strategies for future goods, sales, communications, and free competition of consumers’ needs and wishes.

Marketing strategy - a systematic analysis of the needs and requirements of the main consumer group, formation and development of effective products and services, and better targeting of the target customers than other competitors; It is a set of basic ways of selling and promoting it [2].

There will be opportunities for developing and implementing strategies through industry marketing. Strategic planning in industrial marketing is focused on defining the future performance of the enterprise and defining the complex management of the enterprise. The formation of marketing strategies in industrial enterprises increases the role of marketing activities in enterprise management.

Strategic ideas should become the firm’s action plan, in which the strategic objectives are set, and the tools for implementing the chosen development strategy are identified. The success of the firm shortly depends, first and foremost, on the financial coherence of the various lines of its operations. In the long term, its development and development will depend on the ability to foresee changes in the market promptly, and the ability to adjust its structure and product portfolio accordingly. For such strategic, active ideas to be effective, they must be consistent and focused on “organizing the future”, preparing for action that leads to expected results.

An important criterion for the strategic development of industrial enterprises is the use of the product diversification policy. Increasing the competitiveness of products involves the timely adoption of decisions on modernization and improvement of the product range, the introduction of new products, increasing the competitiveness of the products, and the removal of old products.

The most important function of enterprise marketing is the development of the product range. Commodity range is a group of goods that are linked or have a common range of prices for the same use and sale at the same point of sale. In describing the concept of assortment the Russian scientist Pankrukhin lists 4 main features: a set of goods grouped by functional features, consumer characteristics, points of sale, and price [3].

According to many scholars, the basis of the marketing activity of the enterprise is its “product range policy”. The most important factor in assessing the competitiveness of an enterprise is its assortment policy.

We are looking at the analysis of the enterprise assortment policy, which is “Jomboy don mahsulotlari”, which is the object of our research in the field of commodity assortment policy.

The main activities of “Jomboy don mahsulotlari” are the production, sale, and profit of flour and flour products. The wider the range of products for the enterprise, the greater the level of consumer satisfaction and, on the one hand, to dominate competitors in the market.

Table 1

Analysis of the product nomenclature of JSC

“Jomboy don mahsulotlari” (as of 2019)

Types of products

Unit of measure

Product size

Product size

share (%)

Income

(thousand)

Income (%)

1

Flour products

tons

65500

59,0

51877090

73,9

2

Raw feed

tons

37500

28,0

15291128

21,8

3

Seed grain

tons

10600

8,0

2731515

3,9

4

Biomaterials

Mil.units

10

2,0

179685

0,3

5

Broiler

pieces

20000

3,0

130680

0,2

 

 

 

133610

100,0

70210098

100,0

 

As can be seen from the table, the major share in the volume of flour was made by flour products with 59.0%, and the main revenue came from sales of flour products with 73.9% of the income. There is also a demand for fodder, which has averaged 21.8%. Seed grain is also a separate component of the nomenclature, with their share in revenues for the same period making 3.9%. However, we see that biomaterials and broilers have a lower share of the revenue.

It should be noted that the volume of grain and grain products offered by the enterprise is not the same. To determine this, we use the ABS analysis method.

ABS analysis is a method for improving the effectiveness of an enterprise’s trade policy. Often, ABS analysis is used as a method to optimize product range and stock to further increase sales. In other words, the purpose of the ABS analysis is to identify the product or group of goods that will bring maximum benefit to the enterprise. This form of analysis is based on a study by economist Poreto: 20% of output and 80% of the profit. When assorting products, all products are classified into 3 groups:

Group A. High-value goods make up 20% of the product range, generating 80% of sales.

Group B Low-quality goods makeup 30% of the product range and provide up to 15% of sales.

Group S The demand is very low, 50% of the product range, and generates 5% of sales.

The stages of the ABS analysis.

1. Determining the range of products manufactured by the enterprise;

2. Calculation of profit rate for each product;

3. Determine the effectiveness of each group;

4. Classification of products by enterprise significance.

  By dividing products into such groups, an entity may have a report that identifies which product group is the main source of income.

ABS analysis has the following advantages:

1. Simplicity and quickness of the method can ensure high sales in the future. This method can be used in any enterprise since it does not require much information and calculations.

2. Reliability of results. The results will allow the company to focus its capital and resources on promising goods. Managing a high-value group can ensure the financial sustainability of an enterprise.

3. Optimization of time and resources. The application of this method allows for optimizing additional resources and time.

4. Multivariate analysis. Ability to apply this method in other areas of the enterprise.

Other areas of using the ABS analysis method at the enterprise:

· optimization of the commodity nomenclature;

· Identification of key suppliers, suppliers, regular customers;

· increasing the efficiency of the creation of reserve warehouses;

· Optimization of the production process;

·     financing and management of marketing expenses.

There are several drawbacks to this method of analysis, which are as follows:

1. One-dimensional method. ABS analysis does not allow for complex multidimensional grouping because of its simplicity.

2. Grouping of goods is based on quantitative indicators only, that is, qualitative indicators are not taken into account.

3. Lack of harmful goods group. Availability of goods that are harmful to the enterprise, except income-generating goods. In this method, they are ignored, but in this case, the method is converted to the ABSD method.

4. Impact of external factors on realization. This method does not reflect the impact of different external economic factors - seasonality, changing demand and demand dynamics, competitors, etc., despite the alternative of trading.

Now we proceed to the stages of ABS analysis of the product nomenclature of JSC “Jomboy don mahsulotlari”:

1. Determining the range of products offered by the enterprise:

The range of products of the enterprise includes flour products, feed mix, seed grain, bio-products, and broilers.

2. Calculate the average return rate for each assortment (Table 2):

Table 2

Rate of income on nomenclature

Name of the nomenclature

Flour products

Raw feed

Seed grain

Bioproduct

Broiler

Income

(million soms)

51,8

15,2

2,7

0,17

0,13

 

3. Determine and increase the share of each nomenclature in total revenue (Table 3):

Table 3

Nomenclature’s share of total revenue

Name of the nomenclature

Income

(million sums)

Income

share (%)

Growth rate (%)

Flour products

51877090

73,9

73,9

Raw feed

15291128

21,8

21,8

Seed grain

2731515

3,9

3,9

Biomaterials

179685

0,3

0,3

Broiler

130680

0,2

0,2

General

70210098

100,0%

100,0%

 

4. Classification of products by enterprise significance (Table 4):

Table 4

Classification of Nomenclature by Importance

Name of the nomenclature

Income

(million sums)

Income

share

Growth rate

Grouping

Flour products

51877090

73,9

73,9

А

Raw feed

15291128

21,8

21,8

А

Seed grain

2731515

3,9

3,9

В

Biomaterials

179685

0,3

0,3

С

Broiler

130680

0,2

0,2

С

General

70210098

100,0%

100,0%

 

 

In our case, Group A flour and mixed fodder accounted for 95.7% of total revenue, Group B seed yield accounted for 3.9% of total revenue, and Group C bio-products and broiler revenue. As it turns out, Group B nomenclatures are the main sources of income.

ABS analysis is a type of product that allows you to determine product ratings according to these criteria and to determine the range of these products.

The industry of our country is recognized as a modern state with dynamic development, with increasing economic power and potential. After all, in the years of independence, high-tech industries in all areas of the industry have been developing steadily. Large-scale work on modernization, technical modernization, and diversification of production, a wide introduction of innovative technologies, import of modern equipment have a positive impact on the growth of the economy.

Conclusion

In summary, the use of AVS analysis of the enterprise’s nomenclature allows to increase the production of products required for the enterprise, and to exclude non-profitable products from the enterprise’s assortment, or to create new options and to maintain the market by improving the product.

Moreover, the assortment of the enterprise will be analyzed and products with low sales volume and non-profits will be excluded from the assortment, or conclusions will be made on the modernization of the product.

 

Reference

1.  Элекроный ресурс.  https://www.pv.uz/oz/newspapers/poslanie-prezidenta-respubliki-uzbekistan-shavkata-mirzieeva-olij-mazhlisu-2020.

2.  Abdusamatov B.K. On the subject "Strategic Marketing" (text of lectures). - Samarkand: Samarkand State Architecture and Civil Engineering Institute named after Mirzo Ulughbek, 2015, 177 pages.

3.  А.П. Панкрухин. Маркетинг Гильдия маркетологов. — 3-е изд. — М.:    Омега-Л, 2005. - 656 с.

4.   Resolution of the President of the Republic of Uzbekistan "On measures to further develop industrial cooperation and expand the production of high-demand products" May 1, 2019, PP-4302 // "lex.uz".

5.   Bekmurodov F.Sh. and others. Strategic Marketing: A Study Guide. T .: TSUE, 2010.

6.   Басовский Л.Е. Маркетинг: Курс лекции. М.: ИНФРА-М, 2008. – 218 с.

7.   Николаева М.А. Маркетинг товаров и услуг. Учебник. - М.: Издательский дом “Деловая культура”, 2005. -4 4 8 с.

8.  Панкрухин А.П.. Маркетинг Гильдия маркетологов. — 3-е изд. — М.:    Омега-Л, 2005. - 656 с

9.       Силаков А.. Структурноя модель товарного портфеля производственной компании. Маркетинг: методы, формы, исследования. № 1 (10), 2010. Ст 21.

10.   Khotamov IS, Sadulloev HI .. Analysis and forecasting of marketing activities. Textbook. Tashkent - "Economy" - 2012.


 

11.   Скачано с www.znanio.ru

IMPROVING COMMODITY POLICY IN AGRICULTURAL

IMPROVING COMMODITY POLICY IN AGRICULTURAL

The formation of marketing strategies in industrial enterprises increases the role of marketing activities in enterprise management

The formation of marketing strategies in industrial enterprises increases the role of marketing activities in enterprise management

Broiler pieces 20000 3,0 130680 0,2 133610 100,0 70210098 100,0

Broiler pieces 20000 3,0 130680 0,2 133610 100,0 70210098 100,0

Identification of key suppliers, suppliers, regular customers; · increasing the efficiency of the creation of reserve warehouses; ·

Identification of key suppliers, suppliers, regular customers; · increasing the efficiency of the creation of reserve warehouses; ·

Table 4 Classification of Nomenclature by

Table 4 Classification of Nomenclature by

May 1, 2019, PP-4302 // "lex.uz"

May 1, 2019, PP-4302 // "lex.uz"
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17.07.2020