A Study Of Regional Classification Of AGCO China Market Based On Principle Component Analysis

In past few years,as the process of global economic integration has advanced,solving the “three rural issues” has become a focus of concern for the party and the country.It is reflected in the continuous increase in the content of agricultural mechanization by the Central No.1 Documents from 2006 to 2013.The content is more abundant,and the status and role of agricultural mechanization in the work of “agriculture,rural areas and farmers” are increasingly strengthened.Agricultural machinery plays a very important role in the development of agriculture.This is a very rare opportunity for agricultural machinery manufacturers.How to efficiently and fully utilize this opportunity to expand the company's business faster and more steadily and how to increase business income is a question that every agricultural machinery manufacturing company is worth of thinking over about.One of the ways in which companies are generally recognized is the management of marketing regions.Territory Management is an important part of market management research.It divides the market environment faced by a company into appropriate divisions according to certain standards.It also covers the marketing environment,relevant industry situation,natural conditions,and customer conditions in the region.,competitive position,etc.are analyzed to further classify and divide a large range of sales regions.Putting forward a more robust classification of sales areas for agricultural machinery company could improve the sales volume of agricultural machinery companies and rationally allocate human resources.This paper proposes to classify and process AGCO Cooperation sales data from 2013 to 2016 in China,and considers the impact of the degree of agricultural mechanization,economic level,farmers' purchasing power,and natural conditions on sales of agricultural machinery divided into four target regions;and select the major factors affecting the development of agricultural mechanization,including the total power of agricultural machinery,the sown area of important crops,the amount of main agricultural machinery at the end of the year,the amount of tractor ownership,the amount of combined harvesters,the amount of farm tools,the main crops,the number of state-owned farms,Cultivated land area,import and export of regional agricultural machinery,number of agricultural cooperatives,number of agricultural mechanization training,number of extension identification certificates issued,machine farming area,machine broadcast area,irrigation area,plant protection area,machine harvest area,total area of agricultural mechanization and central government A total of 24 subsidy amounts for agricultural machinery were used as metrics.First,principal component analysis was used to reduce the dimension of 24 variables.Then,the Q-type system cluster analysis method was used to classify the sales regions of agricultural machinery in China,and the classification results of classifying 31 provinces(municipalities directly under the Central Government)into 4 categories were obtained through qualitative correction.Based on the characteristics of each region and the development of agricultural mechanization,combined with the characteristics of agronomy and product demand,recommendations were made on the division of sales areas of agricultural machinery.The results of the optimized Regional Classification could provide further reference for management and development of the company.Scientific regional classification can better cover the market radius,deeper dig market segment and end users,clear the responsibility radius for sales and service engineering,which is beneficial for the future promotion and development of the company's brand.The rationality of regional classification directly impact on the relationship between the company and customer.The regional classification helps CRM(Customer relationship)upgrade on another side as well.Finally,the scientific classification can obviously reduce operation costs and travel expenses provide valuable reference for the future allocation of human resources,performance assessment and other strategic behaviors.