BASF: differentiating on service innovation

BASF is one of the leading companies in crop protection products. As with all of their competitors, BASF distributes their products to famers through a retailer in what is known as a three-tiered system. All manufacturers face similar challenges with this distribution system: to create user demand and to ensure product differentiation is conveyed by distributors and retailers. To help bridge the gap between chemical manufacturers and farmers, BASF has created the role of innovation specialist, a person who works to connect with both retailers and farmers. The goal is not only to help farmers increase efficiency and output, but also to grow the industry. BASF faces multiple challenges, including farmer skepticism and conflict with retailers. Despite these challenges, BASF has increased product sales and customer satisfaction, which is attributed to their use of innovation specialists.