INSERT SPONSORED BY SYNGENTA CROP PROTECTION

Mike Mack is president of Syngenta Crop Protection, with responsibilities for the company's North American operations. He is also chairman of Syngenta Corporation in the U.S.

What is changing regarding Syngenta retail programs for 2004 as compared with 2002 and 2003 programs?

Retailers should look for some exciting changes. During my first 12 months, I personally visited with dozens of retail locations and met with many owners and managers. We've listened to what you've said, and we're incorporating many of your suggestions for 2004. I think you'll find it is simpler in nature, more competitive, and aligned with shared business goals.

How will you make it happen?

One of the key goals for Syngenta Crop Protection has been to create channel programs that fit both the needs of our customers and those of our company strategy. Our 2004 channel program offers are just now being rolled out, so I can't go into too many details, but I can outline the key strategic components.

We will begin by engaging in a dialogue with each of our retail customers so that we better understand their business objectives. Our programs will have the flexibility to allow some customization so that they can better help retailers meet their business objectives, not just ours. Our offer will be competitive and complemented by the value-added service that our field representatives bring.

Additionally, our goal is to develop simplicity in our channel programs. This will allow our customers, and their Syngenta sales representative, to focus on selling the products and services that fit growers' needs, rather than interpreting program details.

Finally, we recognize that our customers want realistic program targets, ones that recognize we are in a difficult market. That said, though, we do see a lot of opportunity out there, and we certainly believe that by working together we can do very well. Our objective is to create a new short- and long-term value proposition for the retailer that helps us focus on the right opportunities.

You mention customized programs. How will these programs take shape?

We know one size does not fit all. We conducted extensive research to better define what our distributors and retailers want from us. From this research we found that there are quite distinct segments out there. Business models, from “solutions driven” to “low-cost provider” are currently being operated. We found four or five distinct models in fact. The important thing to recognize is that all of the players have carved out their place in the market. In looking at what we bring to each of these types of businesses we realize we cannot apply a “cookie-cutter” approach. We have to make sure that our value offering is aligned with their business approach.

In order to better determine and work towards achieving mutual objectives, we reconstituted our Channel Management group into a team we now refer to as “Corporate Alliance.” This group's mission is to work at a much deeper level with key channel partners to better define ways that we can work more productively together. Currently they are focusing on improving the short-term programs I mentioned earlier, but very soon they will be looking at longer term, more fundamental opportunities. I expect big things from them.

You mentioned growers. How do you see the retailer and Syngenta working together on grower activities?

First, we deeply believe that we must have insight and understanding of what growers are thinking and how they are making their purchase decisions. This information is crucial for our ability to construct a competitive offer with our distributor and retail partners. How to gain this insight is the key question. In any industry the two basic options would be to go around the channel, or work through them to better service the market. We understand very well that any grower-focused activity will be doomed from the start if it doesn't involve going through the channel. A lot of efforts recently have revolved around how to define a competitive offer that takes advantage of what the retailer can bring and what we can do in addition. Making sure we are not redundant is a key challenge…wasting resources is inefficient. These offers, along with our technically sound product portfolio, a deep bench of people, and value-added service, will be our fundamentals.

What are some examples of “value-added” service?

A lot of this is a work-in-progress, but one example would be our Customer Resource Center, or CRC. It is clear that our customers value strong service and technical support. In order to meet those needs, we expanded an inbound call center into a more proactive team that is focused on supporting our sales reps and channel partners. Our CRC is staffed with experts who are specifically knowledgeable on formulation technology, toxicology, weed science, fungicides, insecticides, herbicides and application techniques, and complemented with a strong marketplace background. They are also equipped with the latest data tools and systems, which allow for efficient, immediate response to customer inquiries.

We also provide advice to our customers regarding issues they may encounter during or after application, such as drift, mixing, compatibility, state regulatory procedures and accidents. We provide guidance in all aspects of product stewardship for our compounds. It's as easy as calling our toll free number 866-Syngenta or 866/796-4368.

How else are you trying to become more aligned with retailers?

We realize there is no substitute for being closer to our channel partners. To that end we redesigned some of our sales areas to better reflect the agronomic regions of the country. To address this need we formed the Prairie and Mountain region to strengthen our ability to enhance our relationships and provide improved services.

Another area of our business where we continue to receive high ratings from retailers is customer service. Our focus on making customer contact with us a pleasant experience has helped us consistently be ranked at the top for providing on-time delivery of our products and timely response to customer inquiries.

If we continue to listen effectively and then use that information to meet our customer needs, we are positioned to be the partner of choice for retailers and, at the same time, continue to inspire a high level of confidence.

How is Syngenta working to better market the company's well-established products when faced with generic competition?

We will aggressively compete against generic versions of our products, or any competitors for that matter. I've talked with many people who are concerned that generics can devalue the market over the long term, leading to reduced resources for new products.

Our well-established brands have many benefits that make them the products of choice even though they face generic competition.

As the original registrant, we have the most familiarity with it. Our scientists, from the discovery of the molecule, to the development of the formulated product and final registration, follow guidelines that ensure our branded products possess the quality necessary to perform under some of the most demanding conditions. We collect significant experience over a wide range of soil types, climates and application techniques.

We also believe that Syngenta offers the best service for these products through our technical reps, CRC, sales reps and educational programs. This provides us with strong brand equity and reliability, which is certainly more difficult for generic players to replicate.

What are other ways retailers can profit from a relationship with Syngenta?

Last year we launched another very successful service to retailers, our AgBiz.com Web site. This secure business-to-business Web site centralizes the full suite of dealer-focused electronic services offered by Syngenta. The site provides password-protected access so our retail partners can track orders and shipments, check their Syngenta inventory, order products, view their account status, access price lists and even receive readings from our Remote Inventory Monitoring System (RIMS). All of our customers were sent passwords and information on how to begin using Agbiz.com. Those who would like additional assistance can call our CRC at the toll-free number I mentioned earlier. The feedback from retailers about AgBiz has been very positive.

Syngenta is working in a number of areas to enhance our business relationships. Our 2004 programs will be launched in a timely manner and we look forward to meeting with our retail customers and having these discussions. As we finish this marketing year and see the beginning of another, we will continue to seek relationships that lead to success for both of our businesses.

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