Cheminova Project

BENCHMARKING OF CHEMINOVA INDIAS (IMAGE) PRODUCT AND SERVICES WITH RESPECT TO COMPETITION IN THE FRUIT AND VEGETABLE SEGMENT
OF CROP PROTECTION INDUSTRY IN NASHIK MARKET

By TARLE RAVINDRA KASHINATH 1116 Summer Internship PGDABM 2011-2012 BATCH UNDER THE GUIDANCE OF Proff. CHIRAG RATHOD
Submitted to CHEMINOVA INDIA LTD MAY-JUNE 2012
CENTER FOR MANAGMENT EDUCATION UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar
PREFACE
Practical study plays a vital role in the field of education. How management principles are implemented in business can only be known through practical study, students can be very well aware about industrial environment like problems, opportunities, different situations etc. this helps the student for better understanding and also gives them a chance to show their skills and ability. This report throws lights to one of the key sector of Development. Agro-chemical Industry, which has in the limelight due to its rapid development and emergence as a major contributor to the export of country, which will lead towards the economic progress of the country. The report seems in such a manner that can give comprehensive and relevant aspect about the Agro-chemical Industry and especially with respect to the Retailers Perception, which is racing towards capturing the large part of Agro-chemical market of the country. The project reflects on what are the Consumers expectations from the company through the medium of consumer. I hope that the report is fulfilling all the requirements as per the rules and regulations.
UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 2
ACKNOWLEDGEMENT
I express my sincere gratitude to Cheminova India Limited for providing me chance to be a part of such a reputed organization. I would like to meet this opportunity to express my gratitude towards Mr.Soumendu Gosh (Head-Marketing and Business Strategy) for providing me an opportunity to work as a trainee. I am thankful to Mr. Sushil Desai (Sr. Product Manager) Cheminova India Ltd. Mumbai and also express heartiest gratitude to Mr. Amit Padol (Divisional Sales Manager) Cheminova India Ltd, for granting me the permission to carry out this project in his esteemed organization and for offering the dedicated guidance, valuable opinions, suggestions and the much needed encouragement throughout my project work. I would like to thank Miss. Pallavi Patil, Mr. Chaudhari sir, for their support and entire Cheminova staff of Nashik for supporting me directly or indirectly for completing this project. I take immense pleasure in thanking Dr. A k Asthana, Regional Director of URICM Institute of Management, Gandhinagar. Miss. Neelu pandey, Programme Director (PGDMABM) for having preceded me to carry out this project work. I also express my sincere thanks to Dr. Chirag Rathod, under whose guidance I pursued my project and without whose kind help this project would not have been possible. I would also like to express my sincere thanks to my parents for their blessing & all respondents for their cooperation. I am extremely obliged and highly thankful to all those who have contributed to completion of this project in my ways.
CERTIFICATE BY THE SUBJECT GUIDE
This is to certify that Mr. Ravindra Tarle, student of PGDBM Agri-Business Management 2011-13, has completed the research and Project on the topic Benchmarking of Cheminova Indias (Image) Product and services with respect to competition in the fruit and vegetable segment of crop protection industry in Nashik Market. The Project is based on the work done by the candidate himself and fulfils the requirement of the project necessary for partial fulfillment of the PGDBM Agri-Business. To the best of my knowledge and belief, the work has not been submitted anywhere else for award of any diploma. I wish them every success in life.
Mr. Chirag Rathod. Faculty Guide
CERTIFICATE BY THE SUBJECT GUIDE
This is to certify that Mr. Ravindra Tarle, student of PGDBM Agri-Business Management 2011-13, has completed the research and Project on the topic Benchmarking of Cheminova Indias (Image) Product and services with respect to competition in the fruit and vegetable segment of crop protection industry in Nashik Market. The Project is based on the work done by the candidate himself and fulfils the requirement of the project necessary for partial fulfillment of the PGDBM Agri-Business. To the best of my knowledge and belief, the work has not been submitted anywhere else for award of any diploma. I wish them every success in life.
Dr. A. K. Astana Director, URICM
DECLARATION
I the undersigned student of Post Graduate Diploma in Management (Agri-Business) 20112013. Udaybhansinhji Regional Institute of Cooperative Management, Gandhinagar, hereby declare that the report of the project work Benchmarking of Cheminova Indias (Image) Product and services with respect to competition in the fruit and vegetable segment of crop protection industry in Nashik Market is based my own work carried out during the course of my study under the supervision of Mr. Sushil Desai. (Sr. Product Manager) and Mr. Chirag Rathod
I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.
Ravindra K. Tarle Roll No.: 1116
Benchmarking Of Cheminova Indias (Image) Product And Services With Respect To Competition In The Fruit And Vegetable Segment Of Crop Protection Industry In Nashik Market
Name of Student Ravindra Tarle (1116)
Name of Faculty guide Mr. Chirag Rathod
EXECUTIVE SUMMERY Agrochemicals are used to improve crop performance, yield or control pests, etc. Agrochemicals are substances manufactured through chemical or biochemical processes containing the active ingredient in a definite concentration along with other materials which improve its performance and increase safety. For application, these are diluted with water in recommended doses and applied on seeds, soil, irrigation water and crops to prevent the damages from pests. The global crop protection industry has registered a growth of 6% p.a. from 2005 to reach USD 43.2 Bn in 2009. This market is expected to grow further owing to the increasing food and fuel needs and is expected to grow at 4% p.a. to reach USD 54 Bn in 2015. The global crop protection market is fairly consolidated with top nine companies accounting for over 80% of the market. Syngenta, Bayer and BASF are the market leaders in the global crop protection market. The crop protection chemicals accounts for 2% of the total chemicals market in India. The domestic crop protection market is estimated at USD 1.8 Bn and has grown at 5 % p.a. in the last five years. However, owing to greater export opportunities and introduction of newer molecules the industry is witnessing high growth rates in recent times. Currently, the exports of crop protection chemicals are estimated at USD1.6 Bn.
Cheminova India Limited is leading pesticide industry in India. Cheminova India Ltd. headquartered at Mumbai is a wholly owned subsidiary of Cheminova A/S based in Lemvig, Denmark. Cheminova India Limited is dedicated in providing crop protection solutions through manufacturing and marketing of agrochemicals and its intermediates. Cheminova India Limited has a broad portfolio of agrochemicals including insecticides, herbicides, fungicides & growth promoters. Cheminova has been increasingly involved in the Indian agrochemical market, which is one of the fastest growing markets in the world. In order to strengthen its position in India, Cheminova acquired 100% stake in Lupin Agrochemicals (India) limited in December 1997.The present study is on - Benchmarking of Cheminova Indias (Image) Product and services with respect to competition in the fruit and vegetable segment of crop protection industry in Nashik Market
The objectives are To know the Awareness about the company in Farmers of Nashik Region. To know the satisfaction of farmers and dealers of Nashik Region. To know the factors influencing the purchasing decision of farmers. Comparison of companys image with competitor in the view of farmers and dealers. To know the share of different segments like insecticide, fungicides, herbicide and PGR in agrochemicals in Nashik Region
In the whole project two types of data collected was carried out, primary and secondary. Present study was targeted to Nasik district of Maharashtra mainly of Niphad, Nashik and Dindori block from Nashik region. Sample size was 125 farmers and 56 dealers. Sample population was selected randomly from farmers growing all types of crops and dealers dealing with Cheminova India ltd. Primary data collected from farmers through questionnaires. Secondary data were collected from Cheminova company officials, journals, local agri. Magazines, Agrowon, books of marketing and business research, focus interview with farmers.
FINDINGS:A) Farmers Survey Findings1. The company is well known among the farmers for insecticide products and for fungicides in grape growers. 2. Among all agrochemicals farmers of Nashik region use Fungicides most followed by Insecticide, PGRs and Herbicides. 3. Fruit and vegetable production is high in Nashik region, so the usage of fungicides is highest as it is used as preventive measure followed by insecticide and herbicides as curative measures. 4. The area under grapes production is high in Niphad, Dindori and Nashik Tahasil of Nashik region followed by vegetables like tomato, capsicum, brinjal and leafy vegetables. In agronomical crops most crops grown are Sugarcane, wheat, maize, soya bean and groundnut. 5. Farmers of Nashik region mostly prefer Bayer, Cheminova followed by Syngenta, Tata Rallies and Dupont for purchasing insecticides. The farmers are well aware of Cheminova products in Insecticide Segment as it has wide range of products at most affordable rates in the market with quality product. 6. Syngenta is most preferred by farmers followed by Bayer, BASF, Tata Rallies and Dupont in Fungicide Segment of Crop protection products. Cheminova is lacking in fungicide segment as they are having limited product range in the category but the products like Quatriz and Brunt are popular among Grape Growers. 7. Herbicides are least use in fruit and vegetables so farmers prefer the cheapest product in the market also it was observed that most farmers used loose chemical formulation available at low rate in the market. But Glyfos Dakar is popular among the farmers growing agronomical crops. 8. In PGRs segment products like GA3, 6BA, NAA are highly used by Fruit and vegetable growers in particular Grape and Capsicum. Products like GA3 are purchased by farmers from Grapes Grower Association of Maharashtra (MRDBS), so the products of Cheminova are less preferred.
9. Farmers of Nashik region consider Quality of product most important while purchasing the agrochemicals followed by past experience of them or other farmers regarding the product, Brand name of the company, Price of the product. Service by the company and dealers recommendation are least preferred by farmers of Nashik region. 10. According to the farmers prices of Cheminova India ltd are low in comparison to other agrochemical companies. The quality, packaging and services are similar to others while the availability is slightly high than other agrochemical companies. 11. Farmers especially grapes growers are demanding good fungicide formulations for Downey mildew and Powdery mildew on grapes. 12. Farmers are complaining about the packaging of old products like Rogar and Classic. B) Dealers survey findings:1. Through the survey of insecticide companies it is seen that Bayer crop science is having highest sales of insecticide in Nashik Region followed by Syngenta, Cheminova, Dupont, and Tata. 2. Cheminova is at 3rd place in the sales of insecticide segment of agrochemicals as its having a good range of insecticide at low price. 3. Syngenta is the market leader in Fungicide Segment followed by BASF, Indofil, Tata Rallies and Cheminova in Nashik Region. Cheminova is lacking behind due to less product range. 4. Excel Crop Care is having the highest Sales in Herbicide Segment. 5. Cheminova is least preferred for sale of PGRs as farmers are purchasing it from the Grapes grower Association of Maharashtra. 6. In the sales of dealers share of Fungicide is highest (31-40 %) followed by Insecticide (21-30 %), PGRs (11-20 %) and Herbicides (1-10 %) in Nashik region. 7. According to 75% dealers the sales of Cheminova are good in Nashik region. 8. 60-65% of dealers are satisfied with margins given by Cheminova India ltd. 9. 75-80% of dealers are satisfied with Timely Supply, Proper Schemes, Billing and Cr.Note Accounting by Cheminova India Ltd. 10. According to dealers Cheminova products have low price, similar quality, margins, brand reputation, demand by farmers, packaging, service and high availability at Nashik region as compare to other companies.
11. Dealers are expecting more margins, sales promotion activities from company and more product range in the category of fungicides and PGRs.
RECOMMENDATION: Cheminova India Ltd should increase the product range in fungicide and PGRs category as they are more demanded by the Farmers. The company is good in the sales of insecticides but it is not famous as a brand like Bayer or Syngenta so, the company should increase it field work for promotion of company in the form of field demonstration of its products, organizing farmers meet on various agriculture aspects, advertisement of the product so the farmer can recall the company easily. The company should launch its own unique product in the market to create its own brand image. The company should improve the packaging of its product for attractiveness and better keeping quality of Rogar and Classic The company should provide more sales promotion schemes to dealers to motivate them.
TABLE OF CONTENTS
Preface.. Acknowledge Certificate. Declaration Executive Summery.
Chapter No. 1 Introduction 1.1 Industry Profile 1.2 Company Profile 2 3 4 Literature Review
Particulars
Page No.
18-30 31-39 40-48 49-52
Research Methodology Data Analysis and Interpretation 4.1 Farmers Data Analysis and Interpretation 4.2 Dealers Data Analysis and Interpretation
53-62 63-73 74-76
Finding and Recommendation
Annexure Bibliography..
LIST OF TABLES
Sr.No 4.1.1 Particulars Crops Grown by most Farmers in Nashik region Page No 53
4.1.2
Type of Agrochemical Used most in Nashik region
54
4.1.3
Companies preferred by farmers for purchase of Insecticide
55
4.1.4
Companies preferred by farmers for purchase of Fungicide
56
4.1.5
Companies preferred by farmers for purchase of Herbicide
57
4.1.6
Companies preferred by farmers for purchase of PGRs
58
4.1.7
Awareness among Farmers about Cheminova India Ltd.
59
4.1.8
Cheminova Product usage by Farmers
60
4.1.9
Factors Considered while purchasing Agrochemicals
61
4.1.10
Comparison of Cheminova with Other Companies
62
LIST OF TABLES
Sr.No 4.2.1 4.2.2 Education of Dealers Companies having Highest Sales of Insecticide in Nashik Region. 4.2.3 4.2.4 Companies having Highest Sales of Fungicide Companies having Highest Sales of Herbicide 65 66 Particulars Page No 63 64
4.2.5 4.2.6
Companies having Highest Sales of PGRs Share of different segments in dealers sale of Agrochemicals
67 68
4.2.7
Dealers view regarding Sales of Cheminova India Ltd.
69
4.2.8
Level of Dealers Satisfaction with Present Margins of Cheminova India Ltd.
70
4.2.9
Satisfaction of Dealers with respect to Timely Supply, Proper Schemes, Billing and Cr.Note Accounting by Cheminova India Ltd
71
4.2.10
Comparison of Cheminova with other companies by dealer
72
4.2.11
Dealers opinion on Service of Cheminova India Ltd.
73
LIST OF GRAPHS
Sr.No 1.1 1.2 Particulars Loss caused by different pests Global Market size Page No 19 20
1.2.1 1.2.2
Market distribution by product category Market distribution by crop
21 21
1.3 1.3.2.1
Crop protection market Per capita consumption
22 23
1.3.2.2
Market distribution by product category
24
1.3.2.3
Crop wise pesticide consumption
25
1.3.2.4
State wise pesticide consumption
26
1.3.3 3.1.1
Future growth scenario Map of Nashik district
27 50
LIST OF GRAPHS
Sr.No 4.1.1 Particulars Crops Grown by most Farmers in Nashik region Page No 36
4.1.2
Type of Agrochemical Used most in Nashik region
37
4.1.3
Companies preferred by farmers for purchase of Insecticide
38
4.1.4
Companies preferred by farmers for purchase of Fungicide
39
4.1.5
Companies preferred by farmers for purchase of Herbicide
40
4.1.6
Companies preferred by farmers for purchase of PGRs
41
4.1.7
Awareness among Farmers about Cheminova India Ltd.
42
4.1.8
Cheminova Product usage by Farmers
43
4.1.9
Factors Considered while purchasing Agrochemicals
44
4.1.10
Comparison of Cheminova with Other Companies
45
LIST OF GRAPHS
Sr.No 4.2.1 4.2.2 Education of Dealers Companies having Highest Sales of Insecticide in Nashik Region. 4.2.3 4.2.4 Companies having Highest Sales of Fungicide Companies having Highest Sales of Herbicide 48 49 Particulars Page No 46 47
4.2.5 4.2.6
Companies having Highest Sales of PGRs Share of different segments in dealers sale of Agrochemicals
50 51
4.2.7
Dealers view regarding Sales of Cheminova India Ltd.
52
4.2.8
Level of Dealers Satisfaction with Present Margins of Cheminova India Ltd.
53
4.2.9
Satisfaction of Dealers with respect to Timely Supply, Proper Schemes, Billing and Cr.Note Accounting by Cheminova India Ltd
54
4.2.10
Comparison of Cheminova with other companies by dealer
55
4.2.11
Dealers opinion on Service of Cheminova India Ltd.
56
INDUSTRY OVERVIEW
1.1. Introduction to Agrochemicals With increasing population, demand for food grains is increasing at a faster pace as compared to its production. Moreover, every year, significant amount of crop yield is lost due to non usage of crop protection products. Agrochemicals are used to improve crop performance, yield or control pests, etc. Agrochemicals are substances manufactured through chemical or biochemical processes containing the active ingredient in a definite concentration along with other materials which improve its performance and increase safety. For application, these are diluted with water in recommended doses and applied on seeds, soil, irrigation water and crops to prevent the damages from pests. There are broadly 5 categories of crop protection products: 1. Insecticides: Insecticides protect crops by killing insects or preventing their attack. Insecticides may attack a particular type of insect or could be broad spectrum insecticides. Insecticides are used to manage the pest population below the economic threshold level. E.g. Chlorpyrifos is used to control insect pests in crops such as cotton, corn almonds, etc. 2. Fungicides: They are used to prevent the deterioration of crops due to fungi infestation. Fungicides are classified as protectants or eradicants. Protectant fungicides prevent or inhibit fungal growth and may have to be applied at regular intervals. Eradicant fungicides kill the pests on application. E.g. Anilazine is used to control fungal attack on lawns and turfs, cereals, coffee and various vegetables and other crops. 3. Herbicides: Herbicides or weedicides are used to prevent the growth of unwanted plants in a crop field. Herbicides could be selective, which kill the unwanted plants without any harm to the crop, or non-selective which kill all the plants. E.g. Glufosinate ammonium, a broadspectrum contact herbicide, is used to control weeds after the crop emerges or for total vegetation control on land not used for cultivation.
4. Bio pesticides: These are derived from natural substances like plants, animals, bacteria and certain minerals and control pests by nontoxic mechanisms. Bio-pesticides are considered ecofriendly and easy to use. They could be classified as microbial pesticides, plant incorporated protectants and biological pesticides. They are of low volume and high effect formulations and require lesser dosages as compared to chemical pesticides. A growth area for bio-pesticides is in the area of seed treatment and soil amendments. Example of biopesticides includes Bacillus subtilis which is used as soil inoculant in horticulture and agriculture. 5. Others (Nematocides, Rodenticides etc): Fumigants and rodenticides are used to prevent the attack of pests during storage of crops. Plant growth regulators control or modify the plant growth process and are most commonly used in cotton, rice and fruits. As per Govt. of India, crop losses due to non-usage of pesticides were 28% of the yield amounting to Rs. 90,000 Cr per annum (2002 estimated). It is estimated that the present food grain production can jump from 3 Trillion to 4 Trillion by using crop protection products. Therefore, right usage of crop protection chemicals is essential in increasing agricultural production by preventing crop losses before and after harvesting.
1.2. GLOBAL MARKET OVERVIEW The global crop protection industry has registered a growth of 6% p.a. from 2005 to reach USD 43.2 Bn in 2009. This market is expected to grow further owing to the increasing food and fuel needs and is expected to grow at 4% p.a. to reach USD 54 Bn in 2015.
1.2.1 Distribution of global crop protection market - Product category Herbicides are the most widely used agrochemical products globally, followed by insecticides and fungicides. Fungicides is the highest growing segments as it helps increasing yield, improving quality and in seed treatment. Individual sales of various categories however depend on climatic conditions and crop variance.
Herbicides are used in most of the regions of the world. However, major markets for herbicides are North America and Europe due to the favourable climatic conditions in these regions. Insecticides are more prevalent in Asian countries. This is due to higher growth of cotton, cereal, fruits and vegetables in these regions which have higher incidence of insect attacks. Increased usage of genetically modified crops in North America has reduced the usage of insecticides. Fungicides are used in almost all agriculture markets of the world due to favourable climatic conditions for the fungal growth.
11
1.2.2 Distribution of global crop protection market - Crop-wise Globally, fruits and vegetables and cereals account for the largest share of the crop protection industry.
1.3. INDIAN MARKET OVERVIEW The crop protection chemicals accounts for 2% of the total chemicals market in India. The domestic crop protection market is estimated at USD 1.8 Bn and has grown at 5 % p.a. in the last five years. However, owing to greater export opportunities and introduction of newer molecules the industry is witnessing high growth rates in recent times. Currently, the exports of crop protection chemicals are estimated at USD1.6 Bn.
1.3.1 Industry structure The crop protection industry in India is generic in nature with 80% of the molecules being non patented. Hence, strong distribution network and brand image act as competitive factors. Crop protection chemicals are manufactured as technical grades and converted into formulations for agricultural use. The crop protection industry consists of technical grade manufacturers, formulators producing the end products, distributors and end use customers. According to Pesticide Monitoring Unit, GOI, there were about 125 technical grade manufacturers, including about 10 multinationals, more than 800 formulators and over 145,000 distributors in India in 2007. Over 60 technical grade pesticides are being manufactured indigenously. Technical grade manufacturers sell high purity chemicals in bulk (generally in drums of 200-250 kgs.) to formulators. Formulators, in turn, prepare
formulations by adding inert carriers, solvents, surface active agents, deodorants etc. These formulations are packed for retail sale and bought by the farmers. 1.3.2 Indian market scenario India due to its inherent strength of low-cost manufacturing and qualified low-cost manpower is a net exporter of pesticides to countries such as USA and some European and African countries. Exports formed 47% of total industry turnover in Fy10. The industry suffers from high inventory (owing to seasonal and irregular demand on account of monsoons) and long credit periods to farmers, thus making operations 'working capital' intensive.
1.3.2.1 Domestic consumption Consumption of crop protection products in India is among the lowest in the world. Per capita consumption of crop protection products in India is 0.6 kg/ ha compared to 13 kg/ ha in China and 7 kg/ ha in USA. Some of the reasons for low consumption in India are low purchasing power of farmers, lack of awareness among farmers, limited reach and lower accessibility of products. This presents an immense opportunity for the crop protection industry to grow in India
1.3.2.2 Distribution of domestic crop protection market - Product category Insecticides form the largest segment of the domestic crop protection chemicals market accounting for 55% of the total market. It is mostly dependent on rice and cotton crops. Herbicides are the largest growing segment and currently account for 20% of the total crop protection chemicals market. Sales are seasonal, owing to the fact that weeds flourish in damp, warm weather and die in cold spells. Rice and wheat crops consume the major share of herbicides. Increasing cost of farm labour will drive sales of herbicides going forward. Fungicides, accounting for 20% of the total crop protection market, are used for fruits and vegetables and rice Farmers moving from cash crops to fruits and vegetables and government support for exports are increasing the fungicides usage. Biopestiocides include all biological materials organisms, which can be used to control pests. Currently a small segment, biopesticides market is expected to grow in the future owing to government support and increasing awareness about use of non-toxic, environment friendly pesticides. With increasing penetration of BT cotton, usage of insecticides has witnessed a decline in the recent past. Its share in the total crop protection chemicals has reduced from 69% in 2004 to 55% in 2009. On the other hand, share of herbicides and fungicides has increased from 17% and 13% respectively in 2004 to 20% each in 2009. This is due to increased focus on fruits and vegetables and higher awareness levels among end users.
1.3.2.3 Distribution of domestic crop protection market - Crop-wise Paddy and cotton are the major consumers of crop protection chemicals accounting for 28% and 20% respectively of the total domestic crop protection chemicals market. Fruits and vegetables also account for a significant share of the crop protection chemicals market. In recent years, consumption of insecticides has decreased due to the introduction of BT cotton, which has lower risk of pest attacks. As a result, pesticides usage on cotton as % of total has decreased from 33% in 2005 to 20% in 2009. On the contrary, pesticides usage in paddy has been increasing mostly due to increased popularity of hybrid varieties of rice, which require higher amount of pesticides. Share of paddy in the total crop protection chemicals has increased from 24% in 2005 to 28% in 2009.
1.3.2.4 Distribution of crop protection Market - State-wise
The top three states Andhra Pradesh, Maharashtra and Punjab account for ~50% of the total pesticide consumption in India. Andhra Pradesh is the largest consumer of pesticides with a share of 24%.
1.3.3 Future Outlook Since the Indian agricultural sector is highly dependent on monsoons, the market for agrochemicals is expected to grow at a conservative growth rate of 8% p.a. to reach USD 3.5 Bn by FY20. Exports are expected to grow at a higher rate of 15% p.a. to reach USD 7.3 Bn. by FY20.
1.3.4 KEY GROWTH DRIVERS INCLUDE:
1. Increasing demand for food grains: India has 16% of the world's population and less than 2% of the total landmass. Increasing population and high emphasis on achieving food grain self-sufficiency as highlighted in the FY10 budget, is expected to drive growth.
2. Limited farmland availability: India has ~190 Mn hectares of gross cultivated area and the scope for bringing new areas under cultivation is severely limited. Available arable land per capita has been reducing globally and is expected to reduce further. The pressure is therefore to increase yield per hectare which can be achieved through increased usage of agrochemicals.
3. Low Productivity: India has low crop productivity as compared to other countries. Average productivity in India stands at 2 MT/ha as compared to 6 MT/ha in USA and world average of 3 MT/ha. At the same time, India's pesticide consumption is also low at 0.60 kg/ha as compared to the world average of 3 kg/ha. Hence, increased usage of pesticides could help the farmers to improve crop productivity.
4. Growth of horticulture and floriculture: Buoyed by 50% growth experienced by Indian floriculture industry in last 3 years, Government of India has launched a national horticulture mission to double production by 2012. Growing horticulture and floriculture industries will result in increasing demand for agrochemicals, especially fungicides.
5. Increasing exports: Indian companies have successfully expanded into other geographies for exports and this trend has been increasing in recent times.
6. Availability of credit facilities: Govt. initiatives to provide credit facilities to farmers in the rural areas will provide boost to the agriculture industry. Access to finance would encourage them to use more pesticides in order to improve the crop yield. Govt. of India has set a target of Rs. 375,000 Cr for 2010-11. Loans are provided at lower interest rate of 6% with 2% rebate on timely payment.
7. Rural Infrastructure and IT: Linking the production areas with the market would help in easy distribution of pesticides. IT services would help create awareness among farmers and educate them for optimum use of crop protection chemicals.
8. Increasing awareness: As per Government of India estimates, total value of crops lost due to non-use of pesticides is around Rs. 90,000 Cr every year (2002 estimates). Companies are increasingly training farmers regarding the right use of agrochemicals in terms of quantity to be used, the right application methodology and appropriate chemicals to be used for identified pest problems. With increasing awareness, the use of agrochemicals is expected to increase.
9. Product portfolio expansion: Threats like genetically modified seeds, Integrated Pest Management, organic farming etc. can be turned into opportunities if the industry re-orients itself to better address the needs of its consumers and broadens its product offering to include a range of agri-inputs instead of only agrochemicals.
1.3.5 KEY CHALLENGES
1. Low focus on R&D by domestic manufacturers due to high costs: R&D to develop a new agrochemical molecule takes an average of 9 years and USD 180 Mn. Indian companies typically have not focused on developing newer molecules and will face challenges in building these capabilities, while continuing to remain cost competitive.
2. Lack of education and awareness among farmers: The main point of contact between the farmers and the manufacturers are the retailers who are generally not technically sound and are not able to provide a proper understanding of the product to the farmers. Also, very often farmers are not able to communicate their needs effectively to the manufacturers.
3. Need for efficient distribution systems: Since, the number of end users is large and widespread, effective distribution via retailers is essential to ensure product availability. Lately, companies have been directly dealing with retailers by cutting the distributor from the value chain thereby reducing distribution costs, educating retailers on product usage and offering competitive prices to farmers.
4. High post harvest losses: Post harvest losses of crops are estimated at Rs. 140,000 Cr every year. Supply chain inefficiency and inadequate infrastructure are the major causes for such losses.
5. Spurious products: There is a significant share of spurious pesticides and spiked biopesticides. According to pesticides industry body, Agrochemicals Policy Group (APG), spurious and substandard pesticides worth Rs. 1200 Cr were sold in India in 2009. These products not only fail to kill pests but also inflict damages on crops. APG pegs the crop losses due to these spurious products at Rs. 7,000 Cr in 2009.
6. Support for Integrated Pest Management (IPM) and rising demand for organic farming: Promotion of IPM, zero budget farming and usage of bio-pesticides by Indian Government and NGOs is gaining momentum. With increasing demand for organic food, farmers in certain states like Karnataka have reduced chemical usage and have adopted organic farming.
Agrochemical companies will have to tackle the rising environmental awareness and address concerns on negative impact of pesticide usage.
7. Threat from Genetically Modified (GM) seeds: Genetically modified seeds possess self immunity towards natural adversaries which have the potential to negatively impact the business of agrochemicals.
8. Longer period for registration of innovative products: In India, registration of new products takes 3-5 years which discourages domestic manufacturers.
CHEMINOVA INDIA LTD Corporate office: Keshava 7th Floor, Bandra - Kurla Complex, Bandra (E), Mumbai - 400 051 Tel: (+91)-22- 67045504 Fax: (+91)-22- 67045478, 67045488 Mail: customercare@cheminova.net
Cheminova India Ltd. headquartered at Mumbai in India is a wholly owned subsidiary of Cheminova based in Lemvig, Denmark. Cheminova India Ltd. was formed when Lupin agrochemicals (India) limited was acquired by Cheminova A/S in December 1997. Cheminova India Limited is dedicated in providing crop protection solutions through manufacturing and marketing of agrochemicals and its intermediates. The company has three state-of-the-art independent sites at Panoli (Gujarat), with an impressive portfolio of manufacturing Technicals, Intermediates and Formulations. The company is one of the leading crop protection chemical companies in India and employs around 480 people in manufacturing, marketing and other allied services in the country. The company is committed to safety and health of the Indian farmers, employees and other stakeholders and abide by all guidelines of environment protection by making high capital investments. The company lays special focus on safe use & handling of its products, intermediates at all levels during marketing & distribution. Cheminova India Limited has a broad portfolio of agrochemicals including insecticides, herbicides, fungicides & growth promoters. History Since the 90's, Cheminova has been increasingly involved in the Indian agrochemical market, which is one of the fastest growing markets in the world. In order to strengthen its position in India, Cheminova acquired 100% stake in Lupin Agrochemicals (India) limited in December 1997. Subsequently Lupin Agrochemicals (India) Limited was renamed as Cheminova India Limited.
Since the acquisition, Cheminova has invested in upgrading and expanding the existing capacities in the production of Technicals of Monocrotophos, Dichlorvos, Quinalphos, Acephate and Intermediates like TMP, DEPCT and PCl3, P2S5 as well as environment and safety issues. Cheminova India Limited has also large capacities to manufacture Chlorpyriphos, Imidacloprid and Triazophos. Recently, the company has expanded its
production capacities to manufacture Thiacloprid, a neonicotinoid insecticide to control sucking pests on crops. Today, Cheminova India Limited is an important manufacturer and marketeer of Monocrotophos, Dichlorvos, Acephate, Quinalphos, Triazophos, Imidacloprid and
Thiacloprid - and is continuously expanding its portfolio with new products.
MISSION We help improve quality of life for the worlds population by supplying products that help farmers increase yields and quality of crops to satisfy the global demand for food, feed, fiber and energy. VISION We create results for our customers by being a sustainable and innovative world-class supplier of a broad range of quality crop protection products. Value creation shall match the best among peer companies to the benefit of all stakeholders. VALUES We achieve ambitious goals We are innovative We decide and act We recognize results We are good corporate citizens We appreciate and encourage team spirit
Market Development Marketing activities comply with the FAOs Code of Conduct and the principles of Responsible Care. In cooperation with local authorities and through the international organisation GCPF, the company strives to ensure the correct application of plant protection products and its safe use. Cheminova only markets pesticides in India that have been approved or are being approved for introduction by their principle in Denmark. Cheminova is committed to sustainable agriculture through innovative, state-of-the-art formulations and high-tech manufacturing. With the investment of significant financial and scientific resources, Cheminova not only conducts the tests necessary to maintain product registrations, but also invests heavily in product improvement and safer formulation development. Our team of qualified and experienced scientists constantly experiment through field testing of our products under different agro climatic conditions throughout the country to ensure and maintain the high standards of our products performance. CIL also enjoys the privilege of exclusive distributorship and has co-marketing arrangements with other Indian & other MNCs of new chemistry products. CIL ensures scientific product promotion & market development through sales force of qualified agricultural graduates. Brand Building & Demand generation activities are based on the principle of partnering with the farmers. Farmers are reached through various communication media & emphasis is on Farmers Education & Training for balanced utilization of Agri inputs and sustainable development of agriculture.As a result of this commitment, pest control operators, public health officials and farmers within the country and abroad continues to rely on Cheminova and its products.
Research & Development Development of new products is a high priority in Cheminova, and in todays competitive environment speed of development has become more important. This has lead to the introduction of new project management principles, which have resulted in a more efficient product development process.
The development activities in Denmark are supplemented by development work at Cheminova India. Since the addition of the Indian subsidiary to the Cheminova group, new modern laboratories as well as pilot plant facilities have been established and is now working closely together with the development function in Denmark on new products for Cheminovas global organisation. Focus is on developing and maintaining economically competitive production processes for new and existing products. In this respect environmental friendliness including reduction and efficient treatment of waste streams is an important parameter.
Distribution Cheminova India Limited manufactures all its technical, formulations and intermediates at Panoli, Gujarat. Technical and formulations are transported from Panoli to various warehouses / depots. Intermediates are transported in ISO tankers or in tankers leased by the customers. These vehicles are checked by authorized people at Panoli, both for transport worthiness and technical fitness. The transporters are detailed on the safety aspects while transportation and are provided with safety kits. Agriculture is a time bound operation. It is therefore imperative that the right product reaches the consumers at the right time. To achieve this, Cheminova India Limited has established an intensive network of - depots/ C&F in close proximity to the farmers. These depots / C&F cater to the 2700 distributors who in turn supply to over 30,000 retail outlets all over the country. Cheminova India Limiteds distribution department functions as a central coordinating point between various regions, bulk customer & the manufacturing unit to service customer demand and ensure accounting of all sales, inventories and receivables. Cheminova India Limited has achieved the present rate of sales due to strong distribution systems to support the marketing activities. It is a total integrated approach towards servicing the consumer.
PRODUCTS INSECTICIDES Chlorpyriphos 20% EC (CLASSIC-20) Chlorpyriphos is a non systemic broad spectrum organ phosphorus insecticide with contact stomach and respiratory action. It controls coleoptera, diptera, homoptera and Lepidoptera in soil and on foliage in over large number of crops including rice, cotton, oilseeds, pulses, vegetables and plantation. Chlorpyriphos falls under toxicity Class II by WHO (ai) and EPA (formulation). Chlorpyriphos is registered in many countries. Other than field crops, Chlorpyriphos is also used to control household pests and mosquitoes. It is non phototoxic to most plant species when used at recommended dosages. It is compatible for tank mix with other insecticides and fungicides. In soil, Chlorpyriphos is degraded at a moderate rate. Chlorpyriphos is recommended in all IPM and IRM programmes. Quinalphos 25% EC (VAZRA-25) QUINALPHOS effectively controls caterpillars on fruit trees, cotton, vegetables and peanuts; scale insect on fruit trees and pest complex on rice. Quinalphos also controls aphids, bollworms, borers, leafhoppers, mites, thrips, etc. on vines, ornamentals, potatoes, soya beans, tea, coffee, cocoa, and other crops. Acephate 75% SP (LUCID-75) Acephate primarily controls sucking pests like aphids, jassids, white fly and bollworms in cotton and many other crops. Acephate treated crops are also protected from viral diseases, usually transmitted by sucking pests. There has been no report of resistance since inception. In many countries, Acephate is being used alternatively with synthetic pyrethroid for resistance management programs. Imidacloprid 17.8 % SL (Chemida) & 70 % WG (Pactus) Imidacloprid primarily controls sucking pests in cotton, rice, oil seeds and vegetables, chilli, mango, sugarcane and plantation, like tea, coffee and cardamom. Imidacloprid is used as a seed dressing, as soil treatment and as foliar treatment in different crops.
Triazophos 40% EC (TRIFOS - 40) Triazophos primarily controls sucking and chewing insects in cotton, rice, oil seeds and vegetables, fruits and plantation, like tea, coffee and cardamom. In spite of being nonsystemic, Triazophos can penetrate deeply in the plant tissues due to its translaminar properties and can effectively control leaf miner. There has been no report of resistance since inception and has been recommended for use in resistance management program.
Thiacloprid 21.7% SC (SPLENDOUR) Thiacloprid, a new chloronicotinyl insecticide, is targeted to control sucking and biting insects in cotton, rice, vegetables, fruit, sugar beet, potatoes and ornamentals. Pests controlled include aphids, whitefly, beetles and lepidoptera such as leaf miners. It acts as acute contact and stomach poison, with systemic action. It disrupts the nervous system by acting as an inhibitor at nicotinic acetylcholine receptors. Thiacloprid is safe to the mammals and it falls in the Toxicity class.
Other Products Alphamethrin 10% EC (NUMETHRIN) Chlorpyriphos 50% + Cypermethrin 5 EC (NUROCOMBI) Cypermethrin 10% EC (SHAKTI - 10) Cypermethrin 25% EC (SHAKTI - 25) Endosulfan 35% EC (LUSULFAN) Imidacloprid 70% WG (CHEMIDA WG) Profenofos 50% (AURIFOS)
FUNGICIDE Carbendazim 50% WP (CARZIM-50) CARZIM-50 is a systemic fungicide with protective and curative action. It is absorbed through the roots and green tissues. It acts by inhibiting beta-tubulin synthesis, inhibiting development of germ tubes and the growth of mycelia. It is compatible with most of the insecticides. It is used for the control of blast, sheath blight, brown spot, powdery mildew, scab, anthracnose & leaf spot diseases in various crops. It inhibits the development of the germ tubes, the formation of appressoria and the growth of mycelia.
Tricyclozole 75% WP (BLAST-OFF) BLAST-OFF is a systemic fungicide absorbed rapidly by the roots and foliage and translocated within the plant. It controls rice blast, in transplanted and direct seeded rice. Can be applied as a drench, root soak, foliar application and a seed treatment. Non phototoxic if used as directed. Compatible with many other pesticides.
Hexaconazole 5% EC (Danzole) & 5% SC (Danzole Plus) DANZOLE is a systemic triazole fungicide, with protective and curative action. It effectively controls blast & sheath blight of rice, leaf spot on all types of crops and powdery mildew of grapes and chilli by inhibiting ergosterol biosynthesis.
HERBICIDES Glyphosate 41% SL (Glyfos) & 71% SG (Dakar) GLYFOS is a non selective systemic herbicide absorbed by actively growing foliage which is rapidly translocated throughout the plant and thereby killing the plants from roots. It controls a wide range of annual and perennial grasses and broad leaved weeds by application as preemergence, post emergence and pre-harvest in cereals, tea & oilseeds. Also used as industrial weed control and aquatic herbicide. Glyphosate 71% SG (GLYFOS DAKAR) Glyfos Dakar 71 SG is a non selective post emergence herbicide used for the control of annual perennial, broad leaf and grassy weeds. The formulation when applied to foliages destroys the weed from the root system. Clodinafop Propargyl 15% WP (RAKSHAK PLUS) Clodinafop Propargyl is a post emergence systemic grass herbicide used for the control of annual grasses, canary grass, wild oats, and annual rye grass in wheat. Mainly used in combination with the safener cloquintocet-mexyl. Imazathapyr 10% SL (DINAMAZ) Imazethapyr is a systemic herbicide, absorbed by the roots and foliage, with translocation in the xylem and phloem, and accumulations in the merristamatic region. It controls major, annual and perennial grass and broad leaved weeds in soybeans, groundnuts and other leguminous crops. It is applied as pre-plant incorporation, pre-emergence and or postemergence. Other Products Metsulfuron Methyl 20% WP (METCIL M) Pendimethalin 30% EC (PENDIHERB) Pretilachlor 50% EC (PRETTY HERB) Pyrithiobac Sodium 10% EC (RIFE) Sulfosulfuron 75% WP (SUMET)
GROWTH PRAMOTERS Gibberellic Acid (CIL-GIBB) CIL-GIBB is a plant growth regulator containing a mixture of Gibberellins. It is translocated in the plant body & affects the physiology and morphology of plant parts above soil surface e.g. Fruit setting, loosening and elongation of clusters and increase of berry size in grapes: uniform seedling growth in paddy break the dormancy and stimulate sprouting of seed potatoes and advance flowering of ornamentals.
N-Tricontanol 0.1% EW (MIRACLE) MIRACLEl is a universal plant growth promoter used for enhancing the vegetative growth in a wide range of crops. Application on a periodic intervals helps in increasing the nutrient uptake by the crops resulting in increase in yield and quality of the produce.
LITERATURE REVIEW
1) What is Brand Awareness? The ultimate goal of most businesses is to increase sales and income. Ideally, you want to attract new customers to your products and encourage repeat purchases. Brand awareness refers to how aware customers and potential customers are of your business and its products. Within a week after its introduction, surveys found that more than 90% of US consumers had heard about the iPhone as a result of advertising and news reports. This is exceptionally high brand awareness. Ultimately, achieving successful brand awareness means that your brand is well known and is easily recognizable. Brand awareness is crucial to differentiating your product from other similar products and competitors.
Brand Awareness Plan The major components of a plan to develop brand awareness are: Identifying and understanding your target customers Creating a company name, logo, and slogans Adding value through packaging, location, service, special events, etc. Advertising After-sale follow-up and customer relations management Targeting the right audience is crucial to your success. Of similar importance is understanding that you need a plan along with specic actions that increase awareness of your brand amongst your consumers. Throughout the entire process of creating a brand, it is of utmost importance to consider how what you do will increase brand awareness.
Why is Brand Awareness Important? You may be asking yourself, is brand awareness really all that important? You may be saying to yourself, I have plenty of customers and sales are decent, why bother? The answer is: There are few things more worthwhile than investing time in your brands awareness. It can play a major role in purchasing decisions. The reality is, the more aware consumers are of your product and your brand, and the more likely they are to buy from you.
Among the challenges faced in selling pure maple products are: Do potential customers know you exist?
Why pay more for Pure Maple vs. articial syrup? Isnt Vermont maple syrup better? Why pay more for your products rather than from a less expensive alternative?
In the future, and for the sake of your business, it is in your best interests to take action to increase awareness of your brand.
How to Begin Creating Brand Awareness How do you, over time, establish positive brand awareness that promotes the possibility of purchase of your product in the future? There is always the initial impression of your brand that is of utmost importance. Beyond this, however, are all of the future impressions that may be formed regarding your brand. In deciding how you will go about creating brand awareness, you need to consider and to be aware of how your product value becomes know to the consumer and the importance of consistency: 1) The message of what a brand is offering to the consumer should be consistent. Wegmans, for example, offers fresh, high-quality foods for purchase and advertises the advantages, such as home-cooked meals, that their goods can provide for you. The layout of their perishable goods, the organization of complementary condiments and staple products, and the stands offering sample recipes to be cooked at home are all evidence of the company attempting to present a consistent message of what they are all about to the consumer. The presentation of Wegmans as a prominent player in providing quality foods for quality home-cooked meals is evident in each of the aforementioned examples. The company does not, for example, attempt to convey quality in its store layout and offerings and then convey cheap alternative in the mailings sent out. The impressions you hope to make on consumers and potential consumers should be consistent across various mediums, situations, and promotional attempts. 2) Images you present should also be consistent in order to increase brand awareness. It is important that you are consistent in your use of images so that you maximize recognition and positive impressions. Wegmans logo, for example, can be found on its storefront, on the products it produces itself, on the receipt consumers receive after purchase, on the bags customers carry out of the store, and in many of its distributed informational material. 3) Slogans and taglines should also be consistent throughout mediums and material. Once again, consistency is important in conveying a message that promotes awareness of your brand in a organized, recognizable manner. Wegmans tagline, Helping you makes great
meals easy, is consistent throughout its promotional materials, website, and logo, to name a few. Consistency cannot be emphasized enough. It presents the consumer with an image that in the future the consumer can continue to associate with your products. For example, if the materials you distribute, the set-up of your sale table, the packaging of your product, and the logo and tagline are not all relatively similar, regularly consistent, and repeatedly recognizable over time, it is likely you will get nowhere with your brand. Creating brand awareness, through a collaborative, well-developed overall image, is essential to developing a success brand that achieves maximum benets.
Maintaining Brand Awareness It is important to keep working at the issues and activities identied above. Pay attention to how customers are responding to products, packaging, displays, and messages. Look for ways to improve the image you are trying to get across. Ask your customers for suggestions. Work to maintain a consistent presence in the market place. This can mean a location and regular times where customers can reliably expect to nd you. The NY Maple Producers booth at the State Fair has been in a prime location for many years. They need to move to gain more sales space and will have to have a plan to help customers nd their new location. If your businesses wholesaling maple products to retail locations, you need to stay in regular and reliable contact with your customers. They should not have to come looking for you when they need to re-stock or they will turn to suppliers that make it easier for them to operate their businesses.
2) Customer Satisfaction:The definition of customer satisfaction has been widely debated as organizations increasingly attempt to measure it. Customer satisfaction can be experienced in a variety of situations and connected to both goods and services. It is a highly personal assessment that is greatly affected by customer expectations. Satisfaction also is based on the customers experience of both contact with the organization (the moment of truth as it is called in business literature) and personal outcomes. Some researchers define a satisfied customer within the private sector as one who receives significant added value to his/her bottom linea definition that may apply just as well to public services. Customer satisfaction differs depending on the situation and the product or service. A customer may be satisfied with a product or service, an
experience, a purchase decision, a salesperson, store, service provider, or an attribute or any of these. Some researchers completely avoid satisfaction as a measurement objective because it is too fuzzy an idea to serve as a meaningful benchmark. Instead, they focus on the customers entire experience with an organization or service contact and the detailed assessment of that experience. For example, reporting methods developed for health care patient surveys often ask customers to rate their providers and experiences in response to detailed questions such as, How well did your physicians keep you informed? These surveys provide actionable data that reveal obvious steps for improvement. Customer satisfaction is a highly personal assessment that is greatly influenced by individual expectations. Some definitions are based on the observation that customer satisfaction or dissatisfaction results from either the confirmation or disconfirmation of individual expectations regarding a service or product. To avoid difficulties stemming from the kaleidoscope of customer expectations and differences, some experts urge companies to concentrate on a goal thats more closely linked to customer equity. Instead of asking whether customers are satisfied, they encourage companies to determine how customers hold them accountable In the public sector, the definition of customer satisfaction is often linked to both the personal interaction with the service provider and the outcomes experienced by service users. For example, the Urban Institute and Mathematical conducted customer satisfaction surveys for the federal child support enforcement system. The definition they developed addresses three aspects of customer satisfaction: satisfaction with client-worker interaction, whether in-person, by phone, or by mail; satisfaction with the support payment (e.g., its accuracy and timeliness); and Satisfaction with the effect of child support enforcement on the child.
Another example that has particular implications for vulnerable individuals and neighbourhoods is the Shaping Our Lives National Users Network in the United Kingdom. This includes both national and local research and development projects to examine what service users see as good outcomes for services and support. Four customer networks were developed as part of the initiative: Black User Group in London, Service User Action Group in Wakefield, Ethnic Disabled Group in Manchester, and An alliance of User Groups in Waltham Forest.
It was the consensus of the groups that lack of information often leads to low expectations. They further agreed that the process of obtaining a service and the way it is delivered can have a major impact on the users experience. The qualities of relationships and staff were central to positive outcomes. Because customer satisfaction is a highly variable assessment that every individual makes based on his/her own information, expectations, direct contact and interaction, and impact, it makes sense to involve and consult consumers when designing customer satisfaction approaches.
3) Farmers buying behaviour: Venkateshwaralu et al. (1984) attempted to examine the reason for being brand loyal. It has been found that 50 per cent of the consumer respondents preferred a particular brand because they were convinced that its quality was better than that of other brands. Another 38 per cent of the sample consumers felt, it was the taste which made them to go in for a particular brand. While, very few consumers in the sample stated low price and easy availability as the main reasons for selecting and brand. Ramaswarny and Chandrashekaran (1990) examined factors influencing cotton seed buying behaviour of farmers in Kamraj district of Tamil Nadu, India, sixty cotton growers were selected from four villages for agriculture year 1987-88, factors influencing farmers purchase of cotton seeds were source of purchase, varietal preference, seed quality, source of information about the supply of cotton by different agencies and brand preference. Dealers with credit facility, availability of seeds at lower prices and premises located close to the farmers locality attracted. Ali (1992) studied the factors influencing purchase decision for processed products. It revealed that factors such as tase, family, preference, price, good keeping quality, well known brand, colour and consistency were important in the buying decision of the consumer in that order. Sivakumar et al. (1994) analysed buying behaviour of farmers with respect to pesticides, considering the factors influencing loyalty of farmers towards dealers and brand friend, neighbours and relatives were major source of information on dealers. In case of brands it
was extension personnel of department of agriculture, the price quality and advertisements about the brand contributed significantly to brand loyalty credit availability, advertisements and price of products available with dealer contributed significantly to dealers loyalty. Sidhu (1996) studied the seed use practices of farmers in Punjab. The results of the study indicated that the farmers judged the purity and quality of seeds purchased from public seed agencies, research organizations, government departments, private seed companies/dealers etc. by their past experience and reputation of agencies. The results also indicated that among the institutions/agencies, Punjab Agricultural University had the highest reputation among the selected farmers in Punjab. Singh (1998) in his study in Bihar concluded that seeds were purchased from private traders and fellow farmers mostly on cash basis. The reasons for preferring these sources were seed quality, availability and accessibility. This implied that the marketing bodies and seed business units did not carry out their functions in a manner as to create time place and form utility. Further, farmers purchased seeds only at the time of requirement i.e., a few days before use which was very rational given that seed I a perishable and costly input. Padmanaban (1999) conducted study on brand loyalty, which revealed that the price of the preferred brand and efficiency of preferred brand as well as influence advertisement significantly influenced the brand loyalty. Only when the price of a particular brand is competitively lower to price of other brand in the market the farmers would naturally prefer to low priced brand, otherwise farmer would naturally continue to purchase the same brand.
4) Perception Our perception is an approximation of reality. Our brain attempts to make sense out of the stimuli to which we are exposed. This works well, for example, when we see a friend three hundred feet away at his or her correct height; however, our perception is sometimes off for example, certain shapes of ice cream containers look like they contain more than rectangular ones with the same volume.
Factors in perception: Several sequential factors influence our perception. Exposure involves the extent to which we encounter a stimulus. For example, we are exposed to numerous commercial messages while driving on the freeway: bill boards, radio advertisements, bumper-stickers on cars, and signs and banners placed at shopping malls that we pass. Most of this exposure is random we dont plan to seek it out. However, if we are shopping for a car, we may deliberately seek out advertisements and tune in when dealer advertisements come on the radio. Exposure is not enough to significantly impact the individualat least not based on a single trial (certain advertisements, or commercial exposures such as the Swoosh logo, are based on extensive repetition rather than much conscious attention). In order for stimuli to be consciously processed, attention is needed. Attention is actually a matter of degreeour attention may be quite high when we read directions for getting an income tax refund, but low when commercials come on during a television program. Note, however, that even when attention is low, it may be instantly escalatedfor example, if an advertisement for a product in which we are interested comes on. Interpretation involves making sense out of the stimulus. For example, when we see a red can, we may categorize it as a Coke. Webers Law suggests that consumers ability to detect changes in stimulus intensity appear to be strongly related to the intensity of that stimulus to begin with. That is, if you hold an object weighing one pound in your hand, you are likely to notice it when that weight is doubled to two pounds. However, if you are holding twenty pounds, you are unlikely to detect the addition of one pounda change that you easily detected when the initial weight was one pound. You may be able to eliminate one ounce from a ten ounce container, but you cannot as easily get away with reducing a three ounce container to two (instead, you must accomplish that graduallye.g., 3.0 --> 2.7 --> 2.5 --> 2.3 --> 2.15 > 2.00). Several factors influence the extent to which stimuli will be noticed. One obvious issue is relevance. Consumers, when they have a choice, are also more likely to attend to pleasant stimuli (but when the consumer cant escape, very unpleasant stimuli are also likely to get attentionthus, many very irritating advertisements are remarkably effective).
One of the most important factors, however, is repetition. Consumers often do not give much attention to a stimuliparticularly a low priority one such as an advertisementat any one time, but if it is seen over and over again, the cumulative impact will be greater. Surprising stimuli are likely to get more attentionsurvival instinct requires us to give more attention to something unknown that may require action. A greater contrast (difference between the stimulus and its surroundings) as well as greater prominence (e.g., greater size, centre placement) also tend to increase likelihood of processing. Subliminal stimuli. Back in the 1960s, it was reported that on selected evenings, movie goers in a theatre had been exposed to isolated frames with the words Drink Coca Cola and Eat Popcorn imbedded into the movie. These frames went by so fast that people did not consciously notice them, but it was reported that on nights with frames present, Coke and popcorn sales were significantly higher than on days they were left off. This led Congress to ban the use of subliminal advertising. First of all, there is a question as to whether this experiment ever took place or whether this information was simply made up. Secondly, no one has been able to replicate these findings. There is research to show that people will start to giggle with embarrassment when they are briefly exposed to dirty words in an experimental machine. Here, again, the exposure is so brief that the subjects are not aware of the actual words they saw, but it is evident that something has been recognized by the embarrassment displayed.
5) Customers and their expectations Customers are people who buy products and services from other people (usually companies of one sort or another). What customers think and feel about a company and/or its products is a key aspect of business success. Attitudes are shaped by experience of the product, the opinions of friends, direct dealings with the company, and the advertising and other representations of the company. Irrespective of whether a business' customers are consumers or organisations, it is the job of marketers to understand the needs of their customers. In doing so they can develop goods or services which meet their needs more precisely than their competitors. The problem is that the process of buying a product is more complex than it might at first appear. Customers do not usually make purchases without thinking carefully
about their requirements. Wherever there is choice, decisions are involved, and these may be influenced by constantly changing motives. The organisation that can understand why customers make decisions such as who buys, what they buy and how they buy will, by catering more closely for customers needs, become potentially more successful.
Customer requirements The supermarket industry provides a good example of the way in which different groups of customers will have different expectations. Some customers just want to buy standard products at the lowest possible prices. They will therefore shop from supermarkets that offer the lowest prices and provide a reasonable range of goods. In contrast, some supermarket shoppers are seeking such aspects as variety and quality. They will therefore choose to buy from an up-market supermarket. Additionally some customers will have special tastes such as wanting to buy FAIRTRADE products or organic fruit and vegetables. It is clear therefore that to be successful a business has to have a clear understanding of their target customers and the expectations of this group. Most markets are made up of groups of customers with different sets of expectations about the products and services that they want to buy. Marketing oriented businesses will therefore need to carry out research into customer requirements to make sure that they provide those products and services which best meet customer expectations in the relevant market segment.
RESEARCH METHODOLOGY
In the process of achieving the objectives of the study, it is very essential to follow a systematic and scientific approach so as to present and interpret the results of the study or investigation conducted. This chapter on methodology consists of the details of the description of the study area, the sampling procedure, nature and sources of data, the analytical tools and techniques employed and other information to support the existing results like secondary sources of information required to keep the reader inferred for reference and documentation. The methodology chapter is discussed under the following heads.
3.1 Description of the study area
3.1.1 Location Maharashtra is a state located in India. It is the second most popular after Uttar Pradesh and third largest state by area in India. Maharashtra is the richest state in India, contributing 15% of the country's industrial output and 13.3% of its GDP (20062007 figures). Maharashtra encompasses an area of 308,000 km and is the third largest state in India.
Nashik District is located between 18.33 degree and 20.53 degree North latitude and between 73.16 degree and 75.16 degree East Longitude at Northwest part of the Maharashtra state, at 565 meters above mean sea level. The District has great mythological background. Lord Rama lived in Panchvati during his vanvas. Agasti Rushi also stayed in Nashik for Tapasya.
Nashik is famous for grapes, onions, and tomatoes. Because of variety of vegetables and its supply to Mumbai, the District is known as Backyard of Mumbai. The agricultural development of district is high in state due to annual cropping pattern with large spread of irrigation.
Map of Nashik District
3.2 Nature and sources of data In order to evaluate the objectives of the study, data was collected from both primary and secondary sources.
3.2.1 Primary data The primary data forms an important component of any research investigation. As the study focuses on the preferences of farmers over purchase of agrochemicals, behaviour of farmers towards the agrochemicals and adoption of brands, a subjective phenomenon focuses on the behaviour of farmers. Hence, greater thrust was given to collect information at farmers level. However, the number of farmers, their problems etc. were also important and the primary data was very essential to be elicited. The primary data was collected using a pre-structured questionnaire encompassing a number of variables/parameters which could explain their behaviour towards purchase of agrochemicals.
3.2.2 Secondary data As the research study focuses on the aspects such as estimating of demand forecasting and also some of the information relating to the number of farmers in each Talukas, quantities handled, the role of departments, the statistical data etc. were very much required to take some of the investigation process. Hence, the secondary data required were collected from company officials, Books, Magazines and Internet.
3.3 Sampling design In order to proceed with investigation as per the objectives stated, it was necessary to adopt an appropriate sampling design. It was proposed at the outset to study the area under grapes and vegetable crop in primary stage, for this purpose the secondary source data of company field officials were used. Sample population was selected randomly from major grapes and vegetable growing regions of Nasik district such as Niphad and Dindori talukas. A multistage random sampling was adopted as appropriate sampling procedure for the study.
3.3.1 Selection of districts The area under fruits and vegetables in Maharashtra when observed indicated that the northern district of Maharashtra namely Nasik reported to have the highest area under fruit and vegetables which contributed about 30-40 per cent of the total area under. Hence, it was allotted by Cheminova for the study so as to investigate into the research problem.
3.3.2 Selection of Talukas In the second stage, it was proposed to select the talukas in district which acted as hinterland markets for agriculture input agency supplying agro-chemicals. It was decided to select those talukas in Nasik district based on highest area of grapes; hence, Niphad and Dindori talukas were select for research work. Hence, total of 30 villages of both talukas were selected for the study.
3.3.4 Selection of Farmers In order to initiate first hand information using primary source techniques on various variables in the purchase of agro-chemicals, prices, awareness, brand, Sources of new information, source preferences etc., it was proposed to select farmers growing fruit and
vegetables. The farmers were selected randomly from the two talukas. The total no of farmers visited are 125.
3.3.5 Selection of Market The importance of study is to focus of Demand of agrochemicals bearing the importance of fruit and vegetable production. Grapes and sugarcane is the important commercial crop in this region. The secondary markets formed an important centre of business activity. Hence, it is true and fact that the districts headquarter viz., Nashik, Niphad and Dindori talukas are important markets in Nashik. Hence, it was proposed to select the dealers from these headquarters places as central market for agriculture input marketing especially for agrochemicals.
Methodology of Research: Convenience sampling has been adopted for the study. The district was selected as high potential area of agro-chemicals.
Instrument of Data collection: Questionnaires.
Sample size: Farmers- 125 Dealers- 56
Method of contact: Personal Interview
ANALYSIS OF FARMERS DATA AND INFERENCES 1) Crops Grown by most Farmers in Nashik region. Table No. 4.1.1. Crops Grown by most Farmers in Nashik region 1 st 2 nd 3 rd 4 th Total
Preferred Agronomical Vegetable Fruit Flowers 18.4 4.8 76.8 0
Preferred 8.8 77.6 9.6 4
Preferred 68.8 17.6 8.8 4.8
Preferred 4 0 4.8 91.2 100 100 100 100
Graph No. 4.1.1. Crops Grown by most Farmers in Nashik region
100 90 80 70 60 50 40 30 20 10 0 1 st Preferred 2 nd Preferred 3 rd Preferred 4 th Preferred
Agronomical
Vegitable
Fruit
Flowers
Inference: Through the data is seen that that farmers of Nashik region gives 1st preference to grow fruit crops, 2nd to vegetables, 3rd to agronomical crops and 4th to flowers. The area under grapes production is high in Niphad, Dindori and Nashik Tahasil of Nashik region followed by vegetables like tomato, capsicum, brinjal and leafy vegetables. In agronomical crops most crops grown are Sugarcane, wheat, maize, soya bean and groundnut.
2) Type of Agrochemical Used most Table No. 4.1.2. Type of Agrochemical used most Highest Insecticide Fungicides Herbicides PGR 34.4 63.2 2.4 0 Moderate 63.2 32.8 1.6 2.4 Less 2.4 1.6 42.4 53.6 Least 0 2.4 53.6 44
Graph No. 4.1.2. Type of Agrochemical used most
70 60 50 40 30 20
10
0 Highest Moderate Insecticide Fungicides Less Herbicides Least PGR
Inference: It is observed from the survey that farmers of Nashik region use Fungicides most followed by Insecticide, PGRs and Herbicides. As the area under fruit and vegetable production is high in Nashik region the usage of fungicides is highest as it is used as preventive measure followed by insecticide and herbicides as curative measures.
3) Companies preferred by farmers for purchase of Insecticide Table No. 4.1.3. Companies preferred by farmers for purchase of Insecticide 1 Preferred Syngenta Bayer BASF Cheminova Tata Rallies Dupont 16.8 33.6 2.4 34.4 4.8 8 st 2 Preferred 33.6 23.2 2.4 7.2 32 4 nd 3 Preferred 25.6 11.2 8.8 31.2 8.8 14.4 rd 4 Preferred 11.2 24.8 12.8 16 29.6 5.6 th
Graph No. 4.1.3. Companies preferred by farmers for purchase of Insecticide
35 30 25 20 15 10 5 0 1 st Preferred Syngenta 2 nd Preferred Bayer BASF 3 rd Preferred Cheminova 4 th Preferred Dupont
Tata Rallies
Inference: The statistical data shows that farmers of Nashik region mostly prefer Bayer, Cheminova followed by Syngenta, Tata Rallies and Dupont for purchasing insecticides. The farmers are well known of Cheminova products in Insecticide Segment and they are using it most as it having affordable rates in the market with quality product.
4) Companies preferred by farmers for purchase of Fungicide Table No. 4.1.4. Companies preferred by farmers for purchase of Fungicide
st 2
nd 3
rd 4
th 5
th
Preferred Syngenta Bayer BASF Cheminova Tata Rallies Dupont 42.4 36 14.4 0 0 7.2
Preferred 21.6 45.6 18.4 2.4 12 0
Preferred 24.8 9.6 43.2 4.8 7.2 10.4
Preferred 6.4 2.4 9.6 30.4 23.2 28
Preferred 0 6.4 9.6 28.8 41.6 13.6
Graph No. 4.1.4. Companies preferred by farmers for purchase of Fungicide
50 45 40 35 30
25
20 15 10 5 0 1 st Preferred 2 nd Preferred 3 rd Preferred 4 th Preferred 5 th Preferred
Syngenta
Bayer
BASF
Cheminova
Tata Rallies
Dupont
Inference: According to the market survey it is found that Syngenta is most preferred by farmers followed by Bayer, BASF, Tata Rallies and Dupont in Fungicide Segment of Crop protection products. Cheminova is lacking in fungicide segment as they are having limited product range in the category but the products like Quatriz and Brunt are popular among Grape Growers.
5) Companies preferred by farmers for purchase of Herbicide Table No. 4.1.5. Companies preferred by farmers for purchase of Herbicide 1 Preferred Monsanto Excel Gharda Cheminova UPL Local Formulators Graph No. 4.15. Companies preferred by farmers for purchase of Herbicide. 19.2 37.6 1.6 0 12 29.6 st 2 Preferred 25.6 26.4 16.8 2.4 18.4 8 nd 3 rd 4 Preferred 17.6 12 17.6 23.2 15.2 16.8 th 5 Preferred 20 2.4 13.6 22.4 35.2 6.4 th
Preferred 8.8 20 42.4 10.4 7.2 11.2
45 40 35 30 25 20 15 10 5 0 1 st Preferred 2 nd Preferred Excel 3 rd Preferred Gharda 4 th Preferred Cheminova 5 th Preferred UPL
Monsanto
Inference: The result of the survey shows that farmers of Nashik region mostly prefer Excel Crop Care followed by Monsanto, Gharda, Cheminova and UPL in Herbicide category of agrochemicals. Herbicides are least use in fruit and vegetables so farmers prefer the cheapest product in the market also it was observed that most farmers used loose chemical formulation available at low rate in the market. But Glyfos Dakar is popular among the farmers growing agronomical crops.
6) Companies preferred by farmers for purchase of PGRs Table No. 4.1.6. Companies preferred by farmers for purchase of PGRs 1 st 2 nd 3 rd 4 th 5 th 6 th
Preferred Godrej Cheminova Biostadt Omega Local Formulators Unethical Sources 20 39.2 2.4 17.6 8 12.8
Preferred 23.2 0 38.4 7.2 20
Preferred 17.6 0 24 36.8 15.2
Preferred 1.6 9.6 12.8 18.4 41.6
Preferred 18.4 8 7.2 22.4 10.4
Preferred 0 80 0 7.2 0
11.2
6.4
16
33.6
12.8
Graph No. 4.1.6. Companies preferred by farmers for purchase of PGRs
80 70 60 50 40 30 20 10 0 1 st Preferred 2 nd Preferred 3 rd Preferred 4 th Preferred 5 th Preferred Biostadt Unethical Sources 6 th Preferred
Godrej Omega
Cheminova Local Formulaters
Inference: According to the survey it is observed that in PGRs segment most farmers prefer Godrej products followed by Biostadt, Omega Fine Chemicals, Local Formulators and unethical sources.
In PGRs segment products like GA3, 6BA, NAA are highly used by Fruit and vegetable growers in particular Grape and Capsicum. Products like GA3 are purchased by farmers from Grapes Grower Association of Maharashtra (MRDBS) , so the product of Cheminova is not so preferred.
7) Awareness among Farmers about Cheminova India Ltd. Table No. 4.1.7. Awareness among Farmers about Cheminova India Ltd Frequency Well aware Slightly aware Not aware Total 103 20 2 125 Percent 82.4 16.0 1.6 100.0
Graph No. 4.1.7. Awareness among Farmers about Cheminova India Ltd
Not aware Slightly aware
Well aware
Inference: The Above statistics shows that farmers of Nashik region are well aware about Cheminova India Ltd. The company is well known among the farmers for insecticide products and for fungicides in grape growers.
8) Cheminova Product usage by Farmers Table No. 4.1.8. Cheminova Product usage by Farmers Highest Insecticide Herbicides Fungicide PGR 82.4 9.6 1.6 0 Moderate 8.8 44.8 31.2 8.8 Less 2.4 36.8 32.8 21.6 Least 0 2.4 28 63.2
Graph No. 4.1.8. Cheminova Product usage by Farmers
90 80 70 60 50 40 30
20
10 0 Insecticide Herbicides Highest Fungicide Moderate Less PGR Least
Inference: From the above data is it is found that farmers of Nashik region are using Insecticides of Cheminova India ltd followed by Herbicides, Fungicides and PGRs. Cheminova is having a wide range of insecticide at affordable price so it is highly used. Herbicides are used by most people for same result, fungicides are less preferred as the range is less and for PGRs they have alternate source of Grapes Grower Association.
9) Factors Considered while purchasing Agrochemicals Table No. 4.1.9. Factors Considered while purchasing Agrochemicals Highly preferred Price Quality Brand Name Past Experience Dealers Recommendatio n Service 28 20 25.6 18.4 8 40.8 72.8 48 58.4 20.8 48.8 25.6 28.8 32.8 19.2 3.2 1.6 23.2 6.4 26.4 Preferred Neutral Somewhat Preferred 3.2 0 0 2.4 18.4 Least preferred 4 0 0 0 15.2
Graph No. 4.1.9. Factors Considered while purchasing Agrochemicals
80 70 60 50
40
30 20 10 0 Price Quality Brand Name Past Dealers Experience Recomm Service
Inference: According to the above data farmers of Nashik region consider Quality of produce most important while purchasing the agrochemicals followed by past experience of them or other farmers regarding the product, Brand name of the company, Price of the product. Service by the company and dealers recommendation are least preferred by farmers of Nashik region.
10) Comparison of Cheminova with Other Companies Table No. 4.1.10. Comparison of Cheminova with Other Companies Price High Similar low 17.6 26.4 49.6 Quality 17.6 71.2 4.8 Availability Packaging 41.6 42.4 9.6 20.8 40.8 32 Services 12.8 64.8 16
Graph No. 4.1.10. Comparison of Cheminova with Other Companies
80 70
60
50 40 30 20 10 0 Price Quality Availability High Similer Packaging low Services
Inference: According to the farmers prices of Cheminova India ltd are low in comparison to other agrochemical companies. The quality, packaging and services are similar to others while the availability is slightly high then other agrochemical companies.
DEALERS DATA ANALYSIS AND INFERENCES 1) Education of Dealers in Nashik Region. Table No. 4.2.1. Education of Dealers Frequency SSC HSC Graduation Post Graduation Total 10 15 24 7 56 Percent 17.9 26.8 42.9 12.5 100.0
Graph No. 4.2.1. Education of Dealers

45.0 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 .0 SSC HSC Graduation Post Graduation
Inference: From the above statistics it is seen that most of the dealers in Nashik region has education up to Graduation followed by Higher Secondary, Secondary and Post Graduation.
2) Companies having Highest Sales of Insecticide in Nashik Region. Table No. 4.2.2. Companies having Highest Sales of Insecticide Highest Syngenta Bayer Cheminova Dupont Tata 35.7 57.1 0 3.6 3.6 High 53.6 30.4 5.4 0 10.7 Moderate Less 3.6 8.9 76.8 7.1 3.6 3.6 3.6 17.9 44.6 30.4 Least 3.6 0 0 44.6 51.8
Graph No. 4.2.2. Companies having Highest Sales of Insecticide
80 70 60 50 40 30 20 10 0 Highest Syngenta High Bayer Moderate Cheminova Less Dupont Least Tata
Inference: Through the survey of insecticide companies it is seen that Bayer crop science is having highest sales of insecticide in Nashik Region followed by Syngenta, Cheminova, Dupont, and Tata. Cheminova is at 3rd place in the sales of insecticide segment of agrochemicals as its having a good range of insecticide at affordable price.
3) Companies having Highest Sales of Fungicide Table No. 4.2.3. Companies having Highest Sales of Fungicide Highest Indofil BASF Syngenta Cheminova Tata Rallies 12.5 33.9 50 3.6 0 High 16.1 32.1 28.6 19.6 3.6 Moderate Less 39.3 25 21.4 5.4 8.9 32.1 5.4 0 25 37.5 Least 0 3.6 0 46.4 50
Graph No. 4.2.3. Companies having Highest Sales of Fungicide
50 45 40 35 30 25 20
15
10 5 0 Highest Indofil High BASF Moderate Syngenta Less Least Tata Rallies
Cheminova
Inference: As per the above Graphical Representation it gets clear that Syngenta is the market leader in Fungicide Segment of Agrochemicals followed by BASF, Indofil, Tata Rallies and Cheminova in Nashik Region. Cheminova is lacking behind due to less product range in fungicide.
4) Companies having Highest Sales of Herbicide. Table No. 4.2.4. Companies having Highest Sales of Herbicide Highest Monsanto Excel BASF Dhanuka Cheminova 8.9 73.2 0 17.9 0 High 57.1 0 33.9 5.4 3.6 Moderate Less 3.6 23.2 37.5 28.6 7.1 3.6 3.6 12.5 33.9 46.4 Least 26.8 0 16.1 14.3 42.9
Graph No. 4.2.4. Companies having Highest Sales of Herbicide
80 70 60 50 40 30 20 10 0 Highest High Monsento Moderate Excel BASF Less Dhanuka Least Cheminova
Inference: According to the Market Survey it if found that Excel Crop Care is having the highest Sales in Herbicide Segment of Agrochemicals fallowed by Monsanto, BASF, Cheminova and Dhanuka Agritech ltd.
5) Companies having Highest Sales of PGRs. Table No. 4.2.5. Companies having Highest Sales of PGRs Highest Cheminova Biostadt Godrej Omega Bayer 0 19.6 42.9 30.4 10.7 High 3.6 23.2 30.4 26.8 16.1 Moderate Less 0 23.2 17.9 33.9 25 3.6 30.4 8.9 8.9 44.6 Least 92.9 3.6 0 0 3.6
Graph No. 4.2.5. Companies having Highest Sales of PGRs
100 90 80 70 60 50 40 30 20
10
0 Highest High Cheminova Moderate Biostadt Godrej Less Omega Bayer Least
Inference: The data from the survey shows that Goderj is the leading company in the sales of PGRs segment of Agrochemicals followed by Omega Fine Chemicals, Bayer Crop Science, Biostadt and Cheminova India ltd.
6) Share of different segments in dealers sale of Agrochemicals. Table No. 4.2.6. Share of different segments in dealers sale of Agrochemicals 31-40 % Insecticide Fungicide Herbicide PGR's 21.4 69.6 0 5.4 21-30 % 58.9 23.2 14.3 0 11-20 % 14.3 7.1 25 60.7 1-10 % 5.4 0 60.7 33.9
Graph No. 4.2.6. Share of different segments in dealers sale of Agrochemicals
70 60 50 40 30 20 10 0 31-40 % 21-30 % Insecticide Fungicide 11-20 % Herbicide 1-10 % PGR's
Inference: From the above statistical data it is observed that in dealers sale of agrochemicals of Fungicide is highest (31-40 %) followed by Insecticide (21-30 %), PGRs (11-20 %) and Herbicides (1-10 %)
7) Dealers view regarding Sales of Cheminova India Ltd. Table No. 4.2.7. Dealers view regarding Sales of Cheminova India Ltd. Frequency v. Good Good Average Total 7 42 7 56 Percent 12.5 75.0 12.5 100.0
Graph No. 4.2.7. Dealers view regarding Sales of Cheminova India Ltd.
Average 13%
v. Good 12%
Good 75%
Inference: The Market Survey shows that out of 56 Dealers 75 % says, the sale of Cheminova India Ltd is good. 12 % says very good and 13 % says average.
8) Level of Dealers Satisfaction with Present Margins of Cheminova India Ltd. Table No. 4.2.8. Level of Dealers Satisfaction with Present Margins of Cheminova India Ltd Frequency Highly Satisfied Satisfied Neutral Highly Dissatisfied 9 29 15 3 Percent 16.1 51.8 26.8 5.4
Graph No. 4.2.8. Level of Dealers Satisfaction with Present Margins of Cheminova India Ltd
HIghly Disatisfied 5%
Highly Satisfied 16% Nutral 27%
Satisfierd 52%
Inference: It is observed from the data that 52 % Dealers are satisfied, 27 % are Neutral, 16 % are highly satisfied and 5 % are dissatisfied with present Margins of Cheminova India Ltd.
9) Satisfaction of Dealers with respect to Timely Supply, Proper Schemes, Billing and Cr.Note Accounting by Cheminova India Ltd Table No. 4.2.9. Satisfaction of Dealers with respect to Timely Supply, Proper Schemes, Billing and Cr.Note Accounting by Cheminova India Ltd Frequency Highly Satisfied Satisfied Neutral Dissatisfied Total 31 14 9 2 56 Percent 55.4 25.0 16 3.6 100.0
Graph No. 4.2.9. Satisfaction of Dealers with respect to Timely Supply, Proper Schemes, Billing and Cr.Note Accounting by Cheminova India Ltd
55.4
25.0 16.1
3.6 Highly Satisfied Satisfierd Nutral Disatisfied
Inference: The data from the survey shows that 55.4 % dealers are highly satisfied, 25 % are satisfied, 16 % are neutral and 3.6 % dissatisfied with Timely Supply, Proper Schemes, Billing and Cr.Note Accounting by Cheminova India Ltd.
10) Comparison of Cheminova with other companies by dealer Table No. 4.2.10. Comparison of Cheminova with other companies by dealer Price Quality Margins Brand Demand Availability Packaging Services
Reputation by Farmers High Similar Low 0 50 50 16.1 83.9 0 21.4 48.2 30.4 8.9 55.4 35.7 17.9 58.9 23.2 64.3 32.1 3.6 21.4 51.8 26.8 17.9 69.6 12.5
Graph No. 4.2.10. Comparison of Cheminova with other companies by dealers
90 80 70 60 50 40 30 20 10 0 High Similer Low
Inference: The data shows that the Cheminova products have low price, similar quality, margins, brand reputation, demand by farmers, packaging, service and high availability at Nashik region.
11) Dealers opinion on Service of Cheminova India Ltd. Table No. 4.2.11. Dealers opinion on Service of Cheminova India Ltd Frequency v. Good Good Average Total 2 37 17 56 Percent 3.6 66.1 30.4 100.0
Graph No. 4.2.11. Dealers opinion on Service of Cheminova India Ltd
70.0 60.0 50.0 40.0 30.0 20.0 10.0 .0 v. Good Good Average
Inference: The market survey shows that 66.1 % dealers say the service of Cheminova is good, 30.4 % says average and 3.6 % says very good.
FINDINGS:A) Farmers Survey Findings1. The company is well known among the farmers for insecticide products and for fungicides in grape growers. 2. Among all agrochemicals farmers of Nashik region use Fungicides most followed by Insecticide, PGRs and Herbicides. 3. Fruit and vegetable production is high in Nashik region, so the usage of fungicides is highest as it is used as preventive measure followed by insecticide and herbicides as curative measures. 4. The area under grapes production is high in Niphad, Dindori and Nashik Tahasil of Nashik region followed by vegetables like tomato, capsicum, brinjal and leafy vegetables. In agronomical crops most crops grown are Sugarcane, wheat, maize, soya bean and groundnut. 5. Farmers of Nashik region mostly prefer Bayer, Cheminova followed by Syngenta, Tata Rallies and Dupont for purchasing insecticides. The farmers are well known to Cheminova products in Insecticide Segment as it has wide range of products at most affordable rates in the market with quality product. 6. Syngenta is most preferred by farmers followed by Bayer, BASF, Tata Rallies and Dupont in Fungicide Segment of Crop protection products. Cheminova is lacking in fungicide segment as they are having limited product range in the category but the products like Quatriz and Brunt are popular among Grape Growers. 7. Herbicides are least use in fruit and vegetables so farmers prefer the cheapest product in the market also it was observed that most farmers used loose chemical formulation available at low rate in the market. But Glyfos Dakar is popular among the farmers growing agronomical crops. 8. In PGRs segment products like GA3, 6BA, NAA are highly used by Fruit and vegetable growers in particular Grape and Capsicum. Products like GA3 are purchased by farmers from Grapes Grower Association of Maharashtra (MRDBS), so the product of Cheminova is not so preferred. 9. Farmers of Nashik region consider Quality of product most important while purchasing the agrochemicals followed by past experience of them or other farmers regarding the product, Brand name of the company, Price of the product. Service by
the company and dealers recommendation are least preferred by farmers of Nashik region. 10. According to the farmers prices of Cheminova India ltd are low in comparison to other agrochemical companies. The quality, packaging and services are similar to others while the availability is slightly high than other agrochemical companies. 11. Farmers especially grapes growers are demanding good fungicide formulations for Downey mildew and Powdery mildew on grapes. 12. Farmers are complaining about the packaging of old products like Rogar and Classic. B) Dealers survey findings:1. Through the survey of insecticide companies it is seen that Bayer crop science is having highest sales of insecticide in Nashik Region followed by Syngenta, Cheminova, Dupont, and Tata. 2. Cheminova is at 3rd place in the sales of insecticide segment of agrochemicals as its having a good range of insecticide at low price. 3. Syngenta is the market leader in Fungicide Segment followed by BASF, Indofil, Tata Rallies and Cheminova in Nashik Region. Cheminova is lacking behind due to less product range. 4. Excel Crop Care is having the highest Sales in Herbicide Segment. 5. Cheminova is least preferred for sale of PGRs as farmers are purchasing it from the Grapes grower Association of Maharashtra. 6. In the sales of dealers share of Fungicide is highest (31-40 %) followed by Insecticide (21-30 %), PGRs (11-20 %) and Herbicides (1-10 %) in Nashik region. 7. According to 75% dealers the sales of Cheminova are good in Nashik region. 8. 60-65% of dealers are satisfied with margins given by Cheminova India ltd. 9. 75-80% of dealers are satisfied with Timely Supply, Proper Schemes, Billing and Cr.Note Accounting by Cheminova India Ltd. 10. According to dealers Cheminova products have low price, similar quality, margins, brand reputation, demand by farmers, packaging, service and high availability at Nashik region as compare to other companies. 11. Dealers are expecting more margins, sales promotion activities from company and more product range in the category of fungicides and PGRs.
RECOMMENDATION: Cheminova India Ltd should increase the product range in fungicide and PGRs category as they are more demanded by the Farmers. The company is good in the sales of insecticides but it is not famous as a brand like Bayer or Syngenta so, the company should increase it field work for promotion of company in the form of field demonstration of its products, organizing farmers meet on various agriculture aspects, advertisement of the product so the farmer can recall the company easily. The company should launch its own unique product in the market to create its own brand image. The company should improve the packaging of its product for attractiveness and better keeping quality of Rogar and Classic The company should provide more sales promotion schemes to dealers to motivate them.
FARMERS QUESTIONNAIRE 1. NAME OF FARMER:2. ADDRESS:AT/POST: 3. AGE:4. EDUCATION:ILLETRATE HIGHER SECONDARY 5. CULTIVABLE LAND IRRIGATED:DRY:6. WHICH TYPE OF CROPS DO YOU GROW (GIVE RANK) AGRONOMICAL VEGETABLE FRUITS FLOWERS PRIMARY GRADUATE SECONDARY POST GRADUATE TAL: DIST:-
7. CROPPING PATTERN Sr. No. KHARIF AREA RABI AREA SUMMER AREA
8. WHICH TYPE OF AGROCHEMICALS DO YOU USE MOST (GIVE RANK) INSECTICIDE FUNGICIDE HERBICIDE PGRS
9. WHICH COMPANY YOU PREFER MOST FOR INSECTICIDE (GIVE RANK) SYNGENTA BAYER BASF CHEMINOVA TATA RALLIES DUPONT
10. WHICH COMPANY YOU PREFER MOST FOR FUNGICIDE (GIVE RANK) SYNGENTA BAYER BASF CHEMINOVA TATA RALLIES DUPONT
11. WHICH COMPANY YOU PREFER MOST FOR HERBICIDES (GIVE RANK) MONSANTO EXCEL GHARDA CHEMINOVA UPL OTHERS (SPECIFY)
12. WHICH COMPANY YOU PREFER MOST FOR PGRS (GIVE RANK) GODREJ CHEMINOVA BIOSTADT OMEGA LOCAL COMPANY UNETHICAL SOURCES
13. ARE YOU AWARE OF CHEMINOVA INDIA LTD WELL AWARE SLIGHT AWARE NOT AWARE
14. DO YOU USE CHEMINOVAS PRODUCTS YES IF NO, WHY UNAWARE ABOUT BRAND HIGH COST UNAVALIBILITY OF PRODUCT OTHER FACTORS (SPECIFY) NO
15. WHICH CHEMINOVA PRODUCT YOU USE INSECTICIDE HERBICIDE FUNGICIDES PGRS
16. WHICH FACTORS DO YOU CONSIDER WHILE PURCHASING CHEMINOVAS PRODUCT? PARTICULAR PRICE QUALITY BRAND NAME PAST EXPERIANCE RECOMMENDATION BY DEALERS SERVICE/SUPPORT HIGHLY PREFERED NUTRAL SOMEWHAT LEAST PREFERED PREFERED PREFERED
17.
COMPAIRE
CHEMINOVAS
PRODUCT
WITH
OTHER
COMPANY
ON
FOLLOWING PARAMETERS PARTICULAR PRICE QUALITY AVAILABILITY PACKAGING SERVICES HIGH SIMILER LOW
18. WHAT ARE YOUR EXPECTATIONS FROM COMPANY?
DEALERS QUESTIONNAIRE
1. NAME OF FIRM:2. ADDRESS:AT/POST: 3. NAME OF PROPERITOR:4. EDUCATION OF PROPERITOR. PRIMARY GRADUATE SSC POST GRADUATE HSC TAL: DIST:-
5. FROM HOW LONG YOU ARE IN THIS BUSINESS:6. MARKET COVERAGE:-
7. WHAT IS YOUR TURNOVER OF AGROCHEMICALS:8. WHICH COMPANIES DEALERSHIP YOU HAVE.
9. WHICH COMPANYS HAVE HIGHEST SALES OF INSECTICIDE (GIVE RANK) TOP FIVE COMPANIES IN SALES 1. SYNGENTA 2. BAYER 3. CHEMINOVA 4. DUPONT 5. TATA RALLIES RANK
10. WHICH COMPANYS HAVE HIGHEST SALES OF FUNGICIDE (GIVE RANK) TOP FIVE COMPANIES IN SALES 1. INDOFIL 2. BASF 3. SYNGENTA 4. DUPONT 5. CHEMINOVA RANK
11. WHICH COMPANYS HAVE HIGHEST SALES OF HERBICIDES (GIVE RANK TOP FIVE COMPANIES IN SALES 1. MONSANTO 2. EXCEL 3. BASF 4. DHANUKA 5. CHEMINOVA RANK
12. WHICH COMPANYS HAVE HIGHEST SALES OF PGRS (GIVE RANK) TOP FIVE COMPANIES IN SALES 1. CHEMINOVA 2. BIOSTADTH 3. GODREJ 4. OMEGA 5. BAYER RANK
13. WHAT IS THE PER CENT SHARE OF AGROCHEMICALS IN YOUR SALES? 31-40 % Insecticide Fungicide Herbicide PGRs 21-30 % 11-20 % 1-10 %
14. WHAT DO YOU THINK OF SALES OF CHEMINOVA INDIA LTD.?
V.GOOD
GOOD
AVERAGE
BAD
V.BAD
15. ARE YOU SATISFIED WITH PRESENT MARGINES BY CHEMINOVA?
H. SATISFIED SATISFIED
NUTEAL
DISATISFIED H.DISATISFIED
16. ARE YOU SATISFIED WITH THE TIMELY SUPPLY, PROPER SCHEMES, AND CR.NOTE/ACCOUNTING FROM DISTRIBUTORS?
NUTEAL
17. WHAT ARE YOUR EXPECTAIONS FROM COMPANY?
18.
COMPAIRE
CHEMINOVAS
PRODUCT
WITH
OTHER
COMPANY
ON
FOLLOWING PARAMETERS PARTICULAR PRICE QUALITY MARGINS BRAND REPUTATION DEMAND FARMERS AVAILABILITY PACKAGING SERVICES BY HIGH SIMILER LOW
19. WHAT DO YOU THINK ABOUT SERVICES PROVIDED BY CHEMINOVA
V.GOOD
GOOD
AVERAGE
BAD
V.BAD
20. ARE YOU SATISFIED WITH COMPANIES POLICEIS?
NUTEAL
21. ARE YOU FACING ANY PROBLEMS WITH COMPANY?
ALWAYS
SOMETIMES
NEVER
BIBLIOGRAPHAY 1. David A Aaker,V Kumar, George S Day Market Research 9th Edition, Wiley India Edition 2. Richard I Levin, David S. Rubin, Statistics for Management Seventh Edition, Pearson. 3. Donald R Cooper, Business Research Methodology Ninth Edition, McGraw Hill. 4. Agrochemicals 2011 conference at Mumbai Feb. 2011 5. http://www.ficci.com/ accessed on ( 20 June 12 ) 6. http://www.mahaagri.gov.in. accessed on ( 25June12) 7. http://www.cheminovaindia.in accessed on (5th May 12) 8. http://nashik.nic.in/ accessed on (28 June 12)

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BENCHMARKING OF CHEMINOVA INDIAS (IMAGE) PRODUCT AND SERVICES WITH RESPECT TO COMPETITION IN THE FRUIT AND VEGETABLE SEGMENT

OF CROP PROTECTION INDUSTRY IN NASHIK MARKET

Submitted to CHEMINOVA INDIA LTD MAY-JUNE 2012

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 2

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 3

CERTIFICATE BY THE SUBJECT GUIDE

Mr. Chirag Rathod. Faculty Guide

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 4

CERTIFICATE BY THE SUBJECT GUIDE

Dr. A. K. Astana Director, URICM

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 5

Ravindra K. Tarle Roll No.: 1116

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 6

Name of Student Ravindra Tarle (1116)

Name of Faculty guide Mr. Chirag Rathod

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 7

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 8

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 9

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 11

18-30 31-39 40-48 49-52

53-62 63-73 74-76

Finding and Recommendation

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 12

Type of Agrochemical Used most in Nashik region

Companies preferred by farmers for purchase of Insecticide

Companies preferred by farmers for purchase of Fungicide

Companies preferred by farmers for purchase of Herbicide

Companies preferred by farmers for purchase of PGRs

Awareness among Farmers about Cheminova India Ltd.

Cheminova Product usage by Farmers

Factors Considered while purchasing Agrochemicals

Comparison of Cheminova with Other Companies

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 13

Dealers view regarding Sales of Cheminova India Ltd.

Level of Dealers Satisfaction with Present Margins of Cheminova India Ltd.

Comparison of Cheminova with other companies by dealer

Dealers opinion on Service of Cheminova India Ltd.

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 14

Market distribution by product category Market distribution by crop

Crop protection market Per capita consumption

Market distribution by product category

Crop wise pesticide consumption

State wise pesticide consumption

Future growth scenario Map of Nashik district

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 15

Type of Agrochemical Used most in Nashik region

Companies preferred by farmers for purchase of Insecticide

Companies preferred by farmers for purchase of Fungicide

Companies preferred by farmers for purchase of Herbicide

Companies preferred by farmers for purchase of PGRs

Awareness among Farmers about Cheminova India Ltd.

Cheminova Product usage by Farmers

Factors Considered while purchasing Agrochemicals

Comparison of Cheminova with Other Companies

UDAYBHANSINHJI REGIONAL INSTITUTE OF COOPERATIVE MANAGEMENT Sector-30, Gandhinagar 16

Dealers view regarding Sales of Cheminova India Ltd.

Level of Dealers Satisfaction with Present Margins of Cheminova India Ltd.

Comparison of Cheminova with other companies by dealer

Dealers opinion on Service of Cheminova India Ltd.