1.

Introduction

1.1 Introduction to the Vegetable seed industry

Our country has achieved self-sufficiency and a good degree of

stability of food production. However, self-sufficiency in the true sense can
be achieved only when each individual in the country is assured of balanced
diet. This created an urgent need for providing health security to our
population by supplying nutrition through balanced diet. Vegetables form the
most important component of a balanced diet. India is the world's second
largest producer of vegetables next only to China. Varied agro-climatic
conditions in India make it possible to grow a wide variety of vegetable
crops all the year round in one part of the country or another. India can
claim to grow the largest number of vegetable crops compared to any other
country of the world and as many as 61 annual and 4 perennial vegetable
crops are commercially cultivated. These include solanaceous,
cucurbitaceous, leguminous, cruciferous (Cole crops), root crops and leafy
vegetables. Major vegetable crops grown in the country are tomato, onion,
brinjal, cabbage, cauliflower, okra and peas.
India is the second largest producer of vegetables in the world and
accounts for about 15 per cent of the world’s production of vegetables. The
current production level is over 90 MT and the total area under vegetable
cultivation is around 6.2 million hectares which is about 3 per cent of the
total area under cultivation in the country. Vegetable seeds account for
about 18 per cent of the total production of certified seeds. Potato, tomato,
onion, cabbage and cauliflower account for around 60 per cent of the total
vegetable production in the country. Vegetables including root and tuber
crops occupy an important place in diversification of agriculture and have
played pivotal role in food and nutritional security of ever growing population
of our country.

1
 The demand of vegetables has been increasing fast in the urban
areas with a gradual rise in standard of living coupled with development of
communication and transport facilities. In terms of organization, the seed
industry consists of a large public sector and a growing private sector. The
public sector consists of the National Seed Corporation, the State Farm
Corporation of India and 13 State Seed Corporations. These corporations
multiply and market varieties bred by the public sector institutions, i.e., the
research institutes financed by the Indian Council for Agricultural Research
(ICAR) and the State Agricultural Universities. Although private seed
companies such as Poacha and Sutton have been established since the
pre-independence era, accelerated growth of the private sector began only
after the introduction of the new seed policy in 1988 which ushered in a
liberal business climate. Currently there are over 200 private seed
companies, together with a few multinational companies, and these tend to
focus on low volume, high value crops with the principal effort being placed
on creating hybrids for oilseeds, maize, cotton and vegetable crops.
The private sector accounts for 70 per cent of the market in terms of
market turnover whereas the public sector has the greater share in terms of
volume sales. India’s rupees five billion seed industry - the backbone of the
massive multi-billion fruit and vegetable industry is undergoing a silent
transition to branded varieties, thanks to the fast changing food habits and
retail food industry. And at the forefront to take the advantage of the vast
potential of this untapped seed segment are the multi national corporations
(MNCs). Little wonder, therefore, the MNCs are busy drawing the battle
lines to take advantage of the untapped potential of the rupees five billion
Indian seeds industry. In the forefront are MNCs Syngenta, Indo American
Seeds, Monsanto India, Pioneer Seeds. The latest entrant is the USA’s
Seminis, claimed to be one of the leader in vegetables and fruit seeds
brand.

2
1.2 Introduction to the Sungro Seeds Ltd.

The company started its business in vegetable crops in 1973 with

having 10 products in its portfolio and virtue of its continuous R&D efforts it
has developed 38 hybrids and 26 superior open pollinated varieties in all
major high value vegetable crops like Okra, Bottle gourd, Bitter gourd,
Cabbage, Cauliflower, Egg Plant, Ridge gourd, Sponge gourd, Tomato, Hot
pepper etc. This was mainly possible with the efficient and learned
Scientists team work. The SUNGRO has become a member of Maharashtra
Hybrid Seeds Company (Mahyco), although, SUNGRO will continue to
maintain its own identity. Now, it is greatly benefited by the strong technical
backing with the latest technology, supported with modern facilities of
MAHYCO.

The company has research, trial grounds and production centres in

all the important agro-climatic zones of the country. Company carries out
very extensive testing of cultivars for their different trades. Sungro's strong
R&D group has very successfully utilized the tools of breeding by evolving
new and improved varieties and hybrids. SUNGRO offers to the trade about
25 kinds and more than hundred varieties and hybrids of vegetable. The
company has plans to improve its existing lines, and to breed new hybrids in
the crops like cauliflower, cabbage, carrot, tomato, Eggplant, radish, ridge
gourd, bottle gourd, bitter gourd, chilli etc.

The company has R&D facilities in different agroclimatic zones of

country as per specific crops like Kullu (H.P.) for cole crops, Delhi for
tropical vegetables and Ranebennur (Karnataka) for Solanaceous, cucurbits
and okra etc. The Sungro Seeds Ltd. has sizable market share in cabbage,
cauliflower, radish, tomato, Eggplant, cucumber etc. The company has
developed hybrids in cauliflower, radish and cabbage. Now the company is
focusing to develop hybrids in major high value vegetable having more
value added traits e.g. multiple disease resistance, heat/cold, drought
resistance, better self life / transportability and nutritional value etc. Sungro's
products are doing well in many European and Asian countries and
exporting seeds to them.

3
Sungro Seeds Research Limited – A Profile

Sungro Seeds Research Ltd. believes in continuous improvement. For

this Sungro has created an efficient team of scientists actively engaged in
research work for the improvement of crops handled by it. All the hybrids
released by the institution are performing excellently throughout the zoned
identified for release and are being exported to different countries. List of
number of vegetable wise released hybrids and hybrids in pipeline is shown
below in table 1.2.1.

Table 1.2.1 Hybrids release status of Sungro Seeds Research Ltd.

Crop Hybrids
Released In Pipeline
Cauliflower 15 8
Radish 5 3
Carrot 2 4
Cabbage 6 4
Tomato 5 3
Brinjal 17 9
Chilli 2 0
Ridge gourd 4 1
Sponge gourd 3 0
Bitter gourd 4 5
Bottle gourd 5 0
Kakri 2 1
Cucumber 1 1
Okra 2 2
Watermelon - 1
Muskmelon - 1
Pumpkin 1 1
Total 74 44

4
1.3 Introduction to the study area

The study area was Bhagalpur district of state Bihar. Bhagalpur is

one of the oldest districts of Bihar located in the Southern region. It is
situated in the plains of Ganga basin at height of 141 feet above sea level. It
covers an area of 2569.50 sq. km. Other details about the district Bhagalpur
are given in tables 1.3.1, 1.3.2 and 1.3.3.

The district boundary is as follows:

Table 1.3.1 Boundaries of district Bhagalpur

North : Khagaria, Medhepura, Purnea and Katihar districts.

South : Banka District
East : Sahebganj and Godda districts. (Jharkhand state)
West : Munger Districts

Table 1.3.2 Tehsils of Bhagalpur

Tehsils of Bhagalpur

Jagdishpur Sabour Goradih Gopalpur

Nathnagar Sanhoula Navgachia Bihpur

Sultanganj Kahalgaon Kharik Ismailpur

Shahkund Pirpaiti Narayanpur Rangra Chowk

5
Area 2569 Sq. km

Population (2001) 24,30,331

Males 12,94,192

Females 11,36,139

Rural Population 19,92,872 (82%)

Urban Population 4,37,459 (18%)

No. of S.C 1,88,234

No. of S.T 44,884

Population density 946 Per Sq. km

Sex Ratio 878

Literacy Rate 50.28%

No. of Tehsils 16

No. of Villages 1536

Average rainfall 1166.2 mm.

Temperature Max.: 44.5 0C ; Min.: 8 0C

Table 1.3.3 Figures about Bhagalpur district

6
1.4 Importance of the study
The Indian seed industry is currently valued around Rs 3750
crores and is proposed to be around 5000 crores by 2008. The contribution
of private research in terms of value is steadily increasing. When the Indian
seed industry is compared with the global scenario, the estimated turnover
($ 900 million) is less than 2 per cent of the global seed business of US $ 25
billion. With one sixth of the world population and the second largest
cultivable land, the Indian seed industry presents a poor picture. Vegetable
seeds account for about 18 per cent of the total production of certified
seeds. Potato, tomato, onion, cabbage and cauliflower account for around
60% of the total vegetable production in the country. Vegetables including
root and tuber crops occupy an important place in diversification of
agriculture and have played pivotal role in food and nutritional security of
ever growing population.
Brand loyalty provides predictability and security of demand for the
firm and also can translate into a willingness to pay higher prices. The brand
must always be moving forward- but moving forward in the right direction.
As a company’s major enduring asset, a brand needs to be carefully
managed so that its value does not depreciate. Brand that fails to do so find
that their market leadership dwindles or even disappears, therefore need of
brand strengthening and brand repositioning arises.
Keeping this in mind, the present study was done with the following
objectives:-
 To study the potential of vegetable seed market and current status of
major vegetable seed companies in Bhagalpur area
 To know the perception of farmers, dealers, retailers and distributors
about Sungro brand and other major competitors
 To study the marketing activities adopted by different companies in
Bhagalpur area
 To undertake SWOT analysis of Sungro seed
 To frame out suitable strategy for strengthening and repositioning the
Sungro brand in Bhagalpur area

7
 2. Review of Literature

Brand image is the perceptions and beliefs held by consumers, as

reflected in the associations held in consumer’s memory. Brands can signal
a certain level of quality so that satisfied buyers can easily choose the
product again and again. As a company’s major enduring asset, a brand
needs to be carefully managed so that its value does not depreciate. Brand
that fails to do so find that their market leadership dwindles or even
disappears, therefore need of brand strengthening and brand repositioning
arises, (Mukherjee, 2008).
According to Reddy and Shivkumar (2005), market potential is the
maximum demand response possible for a given product or service over a
specified period of time under well defined competitive and environmental
conditions.
Calculation of market potential needs estimated area under that
product, which could be done through regression analysis. By fitting linear
and compound growth rates, one can select statistically best fit for the
study. For example, Linear regression equation of following form can be
found best fit on the value of most positive coefficient of determination : A=
a + bx ; where A= area under product in hectare, b= linear growth rate, x=
years. For any seed, estimated area in ha for successive years can be
multiplied with their corresponding seed rate to estimate market potential.
Market Potential = Area under individual Vegetable in ha X Average Seed
rate applied there in Kg/ha as reported by Paliwal (2001).
Banumathy and Hemameena (2006) are of the view that brand
preferences among the consumers may be related to different factors like
personal attributes age, educational qualifications, occupational status,
monthly income etc. As expressed by Ganguli (2008), instead of creating an
artificial need or demand, the marketers are, in fact, now concentrating on
creation of brands that fit into customer’s real lives.

8
 According to Kamatam (2003), a lot of factors are considered by
farmers while purchasing vegetable seed i.e. quality, price, dealers
suggestion, ad-campaign, brand, own experience and availability. Similarly
several factors influencing buying behavior like demonstration, quality,
pricing, literature, company’s representatives, primary group (neighbours &
co-farmers), cultural, social, personal and psychological factors are also
important. Jhala (2005)

Thus, a company has to work upon continuous improvement of a

number of characteristics if they want to strengthen their brand. So, first the
company has to decide what type of image they want to create in
consumer’s mind, then only they can go for positioning. Mukherjee (2008) is
of the view that positioning means creating a space in the customer’s mind.
Marketing is a continuous process of value creation, value communication,
value delivery and brand positioning. Brand positioning helps marketer in
building the marketing mix for each segment.

9
 3. Project Methodology

The project methodology used for studying the repositioning and

strengthening of Sungro Seeds Ltd. in five tehsils of Bhagalpur district of
Bihar is presented under following heads:-
3.1 Data source: Both primary and secondary data were collected for the
study.
3.1.1 Primary Data - The primary data sources were the farmers, dealers,
distributors and retailers in the selected 5 tehsils of Bhagalpur district of
Bihar. The methodology for the collection of primary data involved interview
schedules through separate pre-structured questionnaires for farmers,
distributors and dealers/retailers containing both open-ended as well as
close-ended questions (Appendix I to IV).

3.1.2 Secondary Data - The secondary data sources included the district
office of department of agriculture, department of statistics and different
magazines and journals related with branding and reports available with the
universities.

3.2. Study approach:

For the present study descriptive study approach was used.

3.2.1 Sample units and size:

The study was conducted on three type of sample units i.e., farmers,
distributors and dealers/retailers. The size of each sample unit is given in
the table 3.2.1.

Table 3.2.1 Sample units and size

Sample Size
Farmers 250
Distributors 11
Dealers / Retailers 39
Total 300

10
3.2.2 Sampling procedure: -

For the selection of farmers, multistage sampling was done. First

of all enquiries were made from distributors and ministry of agriculture about
maximum and minimum vegetable producing tehsils for selecting three
tehsils from high and two from low vegetable producing tehsils. Then, from
each selected tehsils, five villages were selected on the basis of production
and area under vegetable i.e., three villages from high and two from low
vegetable producing area under vegetables. There after, from each village
10 farmers were selected i.e., seven vegetable growers and three non-
vegetable growers with a total of 250 farmers. All distributors of different
companies operating in the Bhagalpur area were selected. For selecting
dealers and retailers, random sampling was done among the companies
operating in the market.

Information was gathered through separate pre-structured

questionnaire for vegetable growers, non-growers, dealers/ retailers and
distributors consisting of both closed-ended questions and open-ended
questions. Analyses of data were done through tabular analysis and
suitable statistical techniques like regression analysis and principal
component analysis.

11
 4. Findings and Analysis

After collection of data, tabulation was done and then using

appropriate statistical techniques like Regression analysis and Principal
Component analysis, results were explained. The objective wise results and
findings in detail are presented below:

4.1: To study the market potential of vegetable seed market

and current status of major vegetable seed companies in
Bhagalpur area
The objective was studied in two parts i.e. in first part study was made
to determine the market potential of vegetable seeds in Bhagalpur district
and in second part current status of major vegetable seed companies was
studied.

4.1.1 Market potential of vegetable seeds in Bhagalpur

Market potential is the limit approached by market demand as industry
marketing expenditures approach infinity for a given marketing environment.
In other words, it is the maximum amount of sales that might be available to
all the firms in a seed industry during a given period, under a given level of
seed industry marketing effort and environmental conditions.
A common way to estimate market potential is as under:

Market Potential = Potential number of buyers X Average quantity

purchased by a buyer X The price

For any hybrid vegetable seed company like Sungro seeds ltd., market
potential for individual vegetable in quantity terms can be calculated by:
Market Potential =
Potential numbers of buyers X Average quantity purchased by a buyer

12
 From District Horticulture Officer and District department of Agriculture,
Bhagalpur, data were collected regarding area under different vegetables in
Bhagalpur from 2002-03 to 2006-07 and presented in table 4.1.1.

Table 4.1.1: Year wise area in ha under different vegetables in

Bhagalpur district

Bhagalpur

Area under vegetables in hectare

Vegetables 2002-03 2003-04 2004-05 2005-06 2006-07

Cabbage 967 983 1007 998 1013

Cauliflower 1211 1254 1229 1312 1367

Okra 1734 1787 1942 1956 1968

Tomato 1198 1267 1356 1377 1401

Chilli 622 687 709 734 769

Brinjal 1433 1412 1454 1513 1564

Onion 1298 1311 1356 1388 1397

Others 3212 3189 3243 3267 3284

Total 11675 11890 12296 12545 12763

Source: Agriculture Department, Government of Bihar

Efforts have also been made for calculating the market potential of
vegetables in Bhagalpur for next successive years. For this, using trend
analysis area under individual vegetable for next successive years was
estimated and presented as follows:

13
4.1.1.1 Cabbage
When area under cabbage was plotted on line graph for drawing trend
lines, linear regression was found best fit (figure 4.1.1.1). Area under
Cabbage was estimated using regression line

A = 10.7 x + 961.5 (Where A is area and x is the year)

Figure 4.1.1.1 Line graph of Area under cabbage

y = 10.7x + 961.5
1020
R2 = 0.8206
1013
1010
1007

1000
998

990
Area in ha

983
980

970
967

960

950

940
2002-03 2003-04 2004-05 2005-06 2006-07
Years

Series1 Trendline

The area under cabbage crop was estimated as 1025 ha for the year
2007-08, 1030 ha for the year 2008-09 and 1047 ha for the year 2009-10.

4.1.1.2 Cauliflower
Area under cauliflower was plotted on graph for the year 2002-03,
2003-04, 2004-05, 2005-06 and 2006-07 and depicted as figure 4.1.1.2. To
get the trend line, best fit method was used. Area under Cabbage was
estimated using regression line

A = 37 x + 1163.6 (Where A is area and x is the year)

14
 4.1.1.2 Line graph of Area under cauliflower

y = 37x + 1163.6
1400
R2 = 0.8304
1367
1350
1312
1300
Area in ha

1250 1254
1229
1211
1200

1150

1100
2002-03 2003-04 2004-05 2005-06 2006-07
Years

Series1 Trendline

Using trend line, the area under cauliflower was estimated for the year
2007-08, 2008-09 and 2009-10 as 1385 ha, 1422 ha and 1459 ha
respectively.

4.1.1.3 Okra
When area under Okra was plotted on line graph for drawing trend
lines, linear regression was found best fit (figure 4.1.1.3). Area under okra
was estimated using regression line

A = 63.7 x + 1686.3 (Where A is area and x is the year)

4.1.1.3 Line graph of Area under Okra

y = 63.7x + 1686.3
2050
R2 = 0.8579
2000
1950 1956 1968
1942
1900
Area in ha

1850
1800 1787
1750 1734
1700
1650
1600
1550
2002-03 2003-04 2004-05 2005-06 2006-07
Years

Series1 Trendline

The area under Okra crop was estimated as 2068 ha for the year
2007-08, 2132 ha for the year 2008-09 and 2196 ha for the year 2009-10.

15
4.1.1.4 Tomato
Area under tomato was plotted on graph for the year 2002-03, 2003-
04, 2004-05, 2005-06 and 2006-07. To get the trend line, best fit method
was used (figure 4.1.1.4). Area under tomato was estimated using
regression line

A = 51.6 x + 1165 (Where A is area and x is the year)

4.1.1.4 Line graph of Area under Tomato

y = 51.6x + 1165
1450
R2 = 0.9245
1400 1401
1377
1350 1356
Area under ha

1300
1267
1250

1200 1198
1150

1100

1050
2002-03 2003-04 2004-05 2005-06 2006-07
Years

Using trend line, the area under tomato was estimated for the year
2007-08, 2008-09 and 2009-10 as 1474 ha, 1547 ha and 1577 ha
respectively.

4.1.1.5 Chilli
When area under Chilli was plotted on line graph for drawing trend
lines, linear regression was found best fit (figure 4.1.1.5). Area under Chilli
was estimated using regression line

A = 34.1 x + 601.9 (Where A is area and x is the year)

16
 4.1.1.5 Line graph of Area under Chilli

y = 34.1x + 601.9
900
R2 = 0.956
800 769
709 734
700 687
600 622
Area in ha

500
400
300
200
100
0
2002-03 2003-04 2004-05 2005-06 2006-07
Years

Series1 Trendline

The area under Chilli crop was estimated as 806 ha for the year 2007-
08, 840 ha for the year 2008-09 and 874.7 ha for the year 2009-10.

4.1.1.6 Brinjal
Area under brinjal was plotted on graph for the year 2002-03, 2003-04,
2004-05, 2005-06 and 2006-07. To get the trend line, best fit method was
used (figure 4.1.1.6). Area under brinjal was estimated using regression line

A = 36.3 x + 1366.3 (Where A is area and x is the year)

4.1.1.6 Line graph of Area under Brinjal

y = 36.3x + 1366.3
1600
R2 = 0.848
1564
1550
1513
1500
Area in ha

1450 1454
1433
1412
1400

1350

1300
2002-03 2003-04 2004-05 2005-06 2006-07
Years

Series1 Trendline

Using trend line, the area under brinjal was estimated for the year
2007-08, 2008-09 and 2009-10 as 1584 ha, 1620 ha and 1656 ha
respectively.

17
4.1.1.7 Estimated area under different vegetables:
With the help of linear regression, estimated area under major
vegetables for year 2007-08, 2008-09 and 2009-10 (table 4.1.2):

Table 4.1.2 Estimated area in hectares under different vegetables in

Bhagalpur

Vegetables Estimated area under vegetables in hectare

2007-08 2008-09 2009-10
Cabbage 1025 1030 1047
Cauliflower 1385 1422 1459
Okra 2068 2132 2196
Tomato 1474 1547 1577
Chilli 806 840 874.7
Brinjal 1584 1620 1656
Onion 1432 1460 1487
Others 3305 3328 3350
Total 13079 13379 13646.7

4.1.1.8 Comparative growth in area under different vegetables

Data regarding area under vegetables in 2002-03 and estimated for

the year 2009-10 were compared and presented as bar diagram in figure
4.1.1.7.
4.1.1.7 Bar graph of Area under vegetables comparison
3500

3000

2500

2000

1500

1000

500

0
Cabbage Cauliflower Ok ra Tomato Chilli Brinjal Others
2002-03 967 1211 1734 1198 622 1433 3212
2009-10 1047 1459 2196 1577 874.7 1656 3350
%age growth 8.27 20.47 26.64 31.63 40.62 15.56 4.23

From the figure, it can be inferred that maximum percentage growth

would be in Chilli followed by Tomato, Okra, Cauliflower and so on.

18
4.1.1.9 Market potential for different vegetables in the studied area:
For private vegetable seed player, Market potential on volume basis
can be calculated by changing the form of the formula given earlier i.e.

Market Potential = Area under individual Vegetable in ha

X
Average Seed rate applied there in Kg/ha

By using this formula, market potential for different vegetables were

calculated for year 2007-08 to 2009-10 and results are shown in table 4.1.3.

Table 4.1.3 Calculation of Market Potential

Bhagalpur

Year 2007-08 Year 2008-09 Year 2009-10

Seed Seed Seed
rate Market rate Market rate Market
Area in Potential Area in Potential Area in Potential
in ha Kg/ha in Kg in ha Kg/ha in Kg in ha Kg/ha in Kg
Vegetables (1) (2) (1X2) (1) (2) (1X2) (1) (2) (1X2)

Cabbage 1025 0.3 307.5 1030 0.3 309 1047 0.3 314.1

Cauliflower 1385 0.4 554 1422 0.4 568.8 1459 0.4 583.6

Okra 2068 4.5 9306 2132 4.5 9594 2196 4.5 9882

Tomato 1474 0.12 176.8 1547 0.12 185.6 1577 0.12 189.2

Chilli 806 0.25 201.5 840 0.25 210 874.7 0.25 218.6

Brinjal 1584 0.25 396 1620 0.25 405 1656 0.25 414

Onion 1432 ……. ……. 1460 ……. ……. 1487 ……. …….

Others 3305 ……. ……. 3328 ……. ……. 3350 ……. …….

Total 13079 ……. ……. 13379 ……. ……. 13646.7 ……. …….

19
4.1.2 Current status of major vegetable seed companies in
Bhagalpur
For determining current status of vegetable seed companies in
Bhagalpur, sales-volume data of year 2007 for all the vegetables were
collected from the distributors. It was found that during the study period 11
vegetable seeds companies were operating in Bhagalpur.
4.1.2.1 Status of different companies in Cabbage seed:
In cabbage, 9 companies were offering hybrids in Bhagalpur. S ale-
volume data of all the 9 companies are presented in table 4.1.2.1.
Table 4.1.2.1 Sales- volume of Cabbage

Cabbage
Companies Sales in 2007(in Kg)
Seminis 80
Tokita 60
Sungro 50
Century 25
Nunhems 20
Nath 20
Namdhari 15
Syngenta 10
Mahyco 5
Total 285
Percent market share of all the 9 companies in cabbage seed is
depicted as pie chart in figure 4.1.2.1.
4.1.2.1 Pie chart showing Market Share in Cabbage

Market Share in Cabbage

Syngenta
4%
Mahyco
Namdhari 2%
5%
Seminis
Nath
27%
7%
Nunhems
7%

Century
9%

Tokita
Sungro 21%
18%

20
 From pie chart it was inferred that in cabbage, Seminis was the
market leader (27%) having popular hybrid No. 401 in the basket. Tokita
was on second rank (21%) with noticeable hybrids like Delhi boll followed by
Sungro (18%) with S-92 and Blue diamond hybrids.

4.1.2.2 Status of different companies in Cauliflower seed:

Sales-volume data of Cauliflower seed by different companies are
presented in table 4.1.2.2.
Table 4.1.2.2 Sales- volume of Cauliflower

Cauliflower
Companies Sales in 2007(in Kg)
Seminis 50
Sungro 25
Nunhems 20
Namdhari 15
Century 6
Tokita 5
Nath 2
Syngenta 2
Total 125
Percent market share of all the 8 companies in cauliflower seed is
depicted as pie chart in figure 4.1.2.1.
4.1.2.2 Pie chart showing Market Share in Cauliflower
Market Share in Cauliflow er

Syngenta
Tokita Nath 2%
Century4% 2%
5%
Namdhari
12% Seminis
39%

Nunhems
16%

Sungro
20%

From figure 4.1.2.2, it was inferred that in cauliflower, during the study
period Seminis was the market leader (39%) having popular hybrid Sweta in
their basket. Sungro was on second rank (20%) with noticeable hybrids like
No. 159 and No. 1385 followed by Nunhems (16%)with Tushar and Sarita
hybrids.

21
4.1.2.3 Status of different companies in Bitter gourd seed:
In bitter gourd, eight companies were offering cabbage hybrids in
Bhagalpur. Sales volume data in 2007 from all 8 companies are presented
in table 4.1.2.3.
Table 4.1.2.3 Sales- volume of Bitter gourd

Bitter gourd
Companies Sales in 2007(in Kg)
Sungro 100
Nunhems 100
Century 80
Seminis 50
Nodai 50
Namdhari 25
Nath 20
Mahyco 10
Total 435
Percent market share of all the 8 companies in Bitter gourd seed is
depicted as pie chart in figure 4.1.2.3.
4.1.2.3 Pie chart showing Market Share in Bitter gourd

Market Share in Bitter gourd

Mahyco
Nath 2%
5%
Namdhari Sungro
6% 24%
Nodai
11%

Seminis
11%
Nunhems
23%
Century
18%

From figure 4.1.2.3, it was inferred that in Bitter gourd, Sungro was
the market leader (24%) having popular hybrid Vivek in their basket.
Nunhems was on second rank (23%) with noticeable hybrids like Chaman
followed by Century (18%) with Lakshya hybrid.

22
4.1.2.4 Status of different companies in Bottle gourd seed:
Sales-volume data of Bottle gourd seed by different companies are
presented in table 4.1.2.4.
Table 4.1.2.4 Sales- volume of Bottle gourd

Bottle gourd
Companies Sales in 2007(in Kg)
Sungro 120
Century 110
Mahyco 100
Seminis 60
Namdhari 50
Nath 25
Nunhems 20
Nodai 15
Total 500
Percent market share of different companies in Bottle gourd seed is
depicted as pie chart in figure 4.1.2.4.
4.1.2.4 Pie chart showing Market Share in Bottle gourd

Market Share in Bottle gourd

Nunhems
4%
Nodai
Nath
3%
5% Sungro
24%
Namdhari
10%
Seminis
12%
Century
Mahyco 22%
20%

From figure 4.1.2.4, it was inferred that in Bottle gourd, Sungro

(24%) was the market leader having popular hybrids Pratima & Swati in
their basket. Century was on second rank (22%) with noticeable hybrids like
CPS -10 followed by Mahyco (20%) with Warad hybrid.

23
4.1.2.5 Status of different companies in Sponge gourd seed:
In Sponge gourd, 6 companies were offering hybrids in Bhagalpur.
Sale-volume data of all the 6 companies are presented in table
4.1.2.5.
Table 4.1.2.5 Sales- volume of Sponge gourd
Sponge gourd
Companies Sales in 2007(in Kg)
Century 250
Sungro 150
Seminis 100
Nath 50
Namdhari 40
Mahyco 10
Total 600

Percent market share of different companies in Sponge gourd seed is

depicted as pie chart in figure 4.1.2.5.
4.1.2.5 Pie chart showing Market Share in Sponge gourd

Market Share in Sponge gourd

Mahyco
2%

Namdhari
7%

Nath
8%
Century
Seminis 41%
17%

Sungro
25%

From figure 4.1.2.5, it was inferred that in Sponge gourd, Century was
the market leader (41%) having popular White seeded hybrid in their
basket. Sungro was on second rank (25%) with noticeable hybrid like Gourd
Sonali followed by Seminis (17%) with Java hybrid.

24
4.1.2.6 Status of different companies in Okra seed:
Sales-volume data of Okra seed by different companies are presented
in table 4.1.2.6.
Table 4.1.2.6 Sales- volume of okra

Okra
Companies Sales in 2007(in Kg)
Syngenta 800
Sungro 400
Seminis 350
Nunhems 200
Century 100
Nath 40
Namdhari 25
Ankur 20
Tokita 15
Mahyco 5
Total 1955
Percent market share of different companies in okra seed is depicted
as pie chart in figure 4.1.2.6.
4.1.2.6 Pie chart showing Market Share in Okra

Market Share in Okra

Ankur
Namdhari
1% Tokita Mahyco
1%
1% 0%
Nath
Century 2%
5%

Nunhems
Syngenta
10%
42%

Seminis
18%

Sungro
20%

From figure 4.1.2.6, it was inferred that in Okra,

Syngenta was the market leader (42%) having popular hybrid OH 016 in
their basket. Sungro was on second rank (20%) with noticeable hybrids like
No.7777 & No. 405 followed by Seminis (18%) with Najuka hybrid.

25
4.1.2.7 Status of different companies in Tomato seed:
In Tomato, all companies were offering hybrids in Bhagalpur. S ale-
volume data of all the companies are presented in table 4.1.2.7.
Table 4.1.2.7 Sales- volume of Tomato

Tomato
Companies Sales in 2007(in Kg)
Sungro 25
Seminis 20
Nunhems 17
Mahyco 15
Ankur 12
Syngenta 10
Namdhari 8
Nath 5
Tokita 3
Century 3
Nodai 2
Total 120
Percent market share of different companies in tomato seed is depicted
as pie chart in figure 4.1.2.7.
4.1.2.7 Pie chart showing Market Share in Tomato

Market Share in Tomato

Tokita
Century
Nath 3% Nodai
3%
4% 2%
Sungro
Namdhari 20%
7%
Syngenta
8%
Seminis
Ankur
16%
10%
Mahyco Nunhems
13% 14%

From figure 4.1.2.7, it was inferred that in Tomato, Sungro was

market leader (20%) having popular hybrids No. 525 & No. 3232 in their
basket. Seminis is on second rank (16%) with noticeable hybrid Aruna
followed by Nunhems (14%) with Raja & Dev hybrid.

26
4.1.2.8 Status of different companies in Cucumber seed:
Sales-volume data of Cucumber seed by different companies are
presented in table 4.1.2.8.
Table 4.1.2.8 Sales- volume of Cucumber

Cucumber
Companies Sales in 2007(in Kg)
Seminis 40
Nunhems 30
Sungro 10
Namdhari 9
Nath 8
Nodai 6
Syngenta 4
Total 107
Percent market share of different companies in cucumber seed is
depicted as pie chart in figure 4.1.2.8.

4.1.2.8 Pie chart showing Market Share in Cucumber

Mark e t s hare in Cucum be r

Nodai Syngenta
6% 4%
Nath
7%
Seminis
Namdhari 38%
8%

Sungro
9%

Nunhems
28%

From figure 4.1.2.8, it was inferred that in Cucumber, Seminis was

the market leader (38%) having popular hybrid Malini in their basket.
Nunhems was on second rank (28%) with noticeable hybrids like Rani &
Noori followed by Sungro (9%) with No. 243 hybrid.

27
4.1.2.9 Status of different companies in Chilli seed:
In Chilli, 9 companies were offering hybrids in Bhagalpur. S ale-
volume data of all 9 companies are presented in table 4.1.2.9.
Table 4.1.2.9 Sales- volume of Chilli

Chilli
Companies Sales in 2007(in Kg)
Seminis 40
Nunhems 25
Syngenta 20
Namdhari 15
Nath 10
Mahyco 8
Century 5
Sungro 4
Tokita 4
Total 131
Percent market share of different companies in chilli seed is depicted
as pie chart in figure 4.1.2.9.
4.1.2.9 Pie chart showing Market Share in Chilli

Market share in Chilli

Sungro Tokita
Century
3% 3%
4%

Mahyco
6% Seminis
Nath 31%
8%

Namdhari
11%

Nunhems
Syngenta
19%
15%

In Chilli, Seminis was the market leader (31%) having popular hybrid
Gunturhope in their basket. Nunhems was on second rank (19%) with
noticeable hybrid Soldier followed by Syngenta with Agnirekha hybrid.
Sungro (3%) ranked last while estimated maximum percentage growth in
area is maximum in Chilli.

28
4.1.2.10 Status of different companies in Brinjal seed:
Sales-volume data of brinjal seed by different companies are presented
in table 4.1.2.10.
Table 4.1.2.10 Sales- volume of Brinjal

Brinjal
Companies Sales in 2007(in Kg)
Sungro 150
Century 50
Nunhems 35
Seminis 25
Nath 15
Namdhari 10
Mahyco 10
Tokita 5
Total 300
Percent market share of different companies in brinjal seed is
depicted as pie chart in figure 4.1.2.10.

4.1.2.10 Pie chart showing Market Share in Brinjal

Market share in Brinjal

Mahyco Tokita
Namdhari
3% 2%
3%
Nath
5%

Seminis
8%
Sungro
Nunhems 50%
12%

Century
17%

From figure 4.1.2.10, it was inferred that in Brinjal, Sungro was the
market leader (50%) having popular hybrids like PPL 74, Navkiran, PK 123
& No. 10 in their basket. Century was on second rank (17%) with noticeable
hybrid Greenlong followed by Nunhems (12%) with BE 706 hybrid.

29
4.1.2.11 Status of different companies in Bhagalpur district:
Sales-volume data of all the vegetable seed companies are presented in
table 4.1.2.11.
Table 4.1.2.11 Overall Sales- volume
Overall Market Share
Companies Sales in 2007(in Kg)
Sungro 1149
Seminis 915
Syngenta 921
Century 729
Nunhems 542
Namdhari 255
Nath 245
Mahyco 208
Tokita 117
Nodai 93
Ankur 37
Total 5211
Percent market share of different companies in Bhagalpur district is
depicted as pie chart in figure 4.1.2.11.
4.1.2.11 Pie chart showing Overall Market Share
Overall market share
Nodai Ankur
Tokita
2% 1%
Mahyco2%
4%
Nath Sungro
5% 21%
Namdhari
5%

Nunhems
10%

Seminis
18%
Century
14%
Syngenta
18%

From figure 4.1.2.11, it was inferred that Sungro emerged as market

leader in Bhagalpur area having overall market share of 21% followed by
major competitors Seminis (18%), Syngenta (18%), Century (14%),
Nunhems (10%) and so on.
On comparison of the percentage growth of area under vegetable, it
was found that maximum percentage growth is in Chilli where Sungro
ranked last. But in tomato where next maximum percentage growth is
predicted, Sungro ranked first. Okra and cauliflower, Sungro was at second
rank already. So, Sungro should target Chilli to capture future market.

30
4.2: To know the perception of farmers, dealers, retailers
and distributors about Sungro brand and other competitors
Brand image is the perception and belief held by consumers, as
reflected in the associations held in consumer’s memory. Thus, for
determining brand image, one has to know perception about a list of factors
in vegetable seed. This study was done in two parts i.e. in first part attempt
was made to identify key factors responsible for brand image and in second
part perception of respondents were studied about identified key factors.

4.2.1 Factor analysis to identify key factors responsible for brand

image:

To determine perception about any brand as a whole is quite difficult

because brand image depends on many factors. So, factor analysis was
used to understand the underlying motives of consumers who buy a product
category or a brand i.e. to find out the key factors responsible for purchase
of a brand. So, for more accuracy, principal component analysis was used
to identify key factors responsible for purchase of vegetable seeds.

The process followed two distinct steps:

1. Extraction : How many factors should be taken from the data? Generally
two criterions are used for extraction. First is based on the Eigen value of all
possible factors. Usually, factors with Eigen values of one or higher are
extracted in this stage. Another criterion is to maximize the cumulative
variance in the extracted factors, i.e. 70 per cent or more may be used as a
cutoff.

2. Rotation: Rotation is done using one of the orthogonal rotation

techniques, and then the rotated factor loadings of each factor is examined.
The variables which load highly on a factor, are identified, and the factor is
named after these variables.

Data set having responses for importance of factors for buying or

selling vegetable seed were analyzed on Principal Component Analysis and
results (Appendix V) obtained were presented in tables 4.2.1.1 and 4.2.1.2.

31
 Table 4.2.1.1 Rotated Component Matrix (a) for farmers

Rotated Component Matrix(a) for farmers

Component
Factors 1 2 3
Price 0.062 0.865 -0.101
Quality 0.917 -0.063 -0.034
Seller suggestion -0.042 -0.167 0.6522
Peer farmer reference 0.029 0.035 0.7145
Brand 0.815 0.258 0.2183
Ad-campaign 0.245 0.171 0.6814
Schemes 0.077 0.832 0.0933
Extraction Method: Principal Component Analysis. Rotation Method:
Varimax with Kaiser Normalization. (a) Rotation converged in 5 iterations.
Principal Component analysis (Table 4.2.1.1) indicated that in
Bhagalpur, among farmers mainly three cluster of respondents existed. First
and foremost was QYALITY SEEKERS and looking for quality and brand.
Second important cluster of respondents believed in VALUE FOR MONEY
and look for price and schemes. The third cluster of respondents was
mainly PROMOTION- DEPENDENT i.e., looking for peer farmer reference,
seller’s suggestion and ad-campaign.

Similarly, dealers, retailers as well as distributors were asked to

express their priorities for different attributes while selling vegetable seed.
When data regarding preferences of dealers, retailers and distributors for
attributes while selling any vegetable seed were analyzed using rotated
component matrix of Principal component analysis, very useful results were
obtained (Table 4.2.1.2).

32
 Table 4.2.1.2 Rotated Component Matrix (b) for dealers, retailers and
distributors
Rotated Component Matrix(b)
Component
Factors 1 2
Price -0.377 -0.0699
Quality 0.843 -0.1147
Margin -0.033 0.9409
Demand 0.664 0.3994
Availability 0.827 0.0838
Ad-Campaign 0.689 -0.1788
Extraction Method: Principal Component Analysis. Rotation Method:
Varimax with Kaiser Normalization. (b) Rotation converged in 3 iterations.

Principal Component analysis indicated (4.2.1.2) that in Bhagalpur,

among sellers mainly two cluster of respondents existed. First and foremost
was looking for QUALITY COMMUNICATION i.e. quality, availability and
ad-campaign. Second cluster of respondents believed in SELF-INTEREST
and looking for Margin only.
On the basis of results obtained in Principal component analysis,
Key factors responsible for purchase of any vegetable seed were identified
as Seller suggestion, peer farmer reference, ad-campaign, product quality
and price whereas Key factors responsible for sell of any vegetable seed
were identified as Margin, quality, price, ad-campaign, availability.

Since seller suggestion and peer farmer reference can be turned

towards any company by margin and ad-campaign also, so these also can
be eliminated while determining perception for any company. So, after
principal component analysis key factors responsible for sale/purchase of
vegetable seed were identified as:

Product quality, Price, Ad-campaign, Availability and Margin.

33
4.2.2 Perception of farmers, distributors and dealers / retailers
about product quality, affordability, ad-campaign, availability,
margin

After identification of key factors responsible for brand image,

composite sample of 215 respondents i.e. company distributor (1),
dealers/retailers (39) and vegetable growing farmers (175) was formed.
Thereafter all the 215 respondents were asked to express their perception
on identified key factors for Sungro brand and other major competitors. The
results so obtained are presented below:

4.2.2.1 Perception about Product quality:

Composite sample of 215 respondents were asked to express their
perception about product quality and the responses obtained are depicted in
figure 4.2.2.1.
4.2.2.1 Bar diagram showing perception about Quality

Perception about Quality

100% 4 9
25 21
46
29
80%
89 Extremely Poor
66
Percentage 60% 104 Moderately Poor
Responses Neutral
40%
65 78
Moderately Good
20% 61
30 18 Extremely Good
0%
Sungro Seminis Nunhems
Companies

From the figure it is evident that about 50 per cent of respondents

were satisfied with the Quality of Sungro seeds mainly because of some
best quality well-established trusted hybrids of Sungro like Vivek, PPL-74,
Chakor, Gaurav, S-92 and No. 7777 etc. and to some extent due to widest
and diverse product line in Brinjal.

34
 From Sungro products, about 25 per cent of respondents have
shown dissatisfaction on quality parameter and reasons were different for
different vegetables like:
 The average Curd Weight in cauliflower of Sungro is less than
that of competitors like Seminis.
 The fruit length in cucumber of Sungro is less than that of
competitors like Seminis.
 The pungency in Chilli of Sungro is less stronger than that of
competitors like Nunhems and Seminis.

4.2.2.2 Perception about Product price / Affordability:

Composite sample of 215 respondents comprising of all
dealers/retailers (39), company distributor (1) and all vegetable growing
farmers (175) were asked to express their perception about product price
and the responses obtained are depicted in figure 4.2.2.2.
4.2.2.2 Bar diagram showing perception about Price

Perception about affordability

100% 30 17
66
80% 84
93 Extremely Poor
Percentage 60% 65 Moderately Poor
responses 69 Neutral
40%
84 92 Moderately Good
20% 45 Extremely Good
0%
Sungro Seminis Nunhems
Companies

From the figure it is evident that about 70 per cent of respondents

were satisfied with the affordability of Sungro seeds while rests 30 per cent
of respondents were taking it neutral. To make it more clear, price
comparison had been made between Sungro and competitors (table
4.2.2.2).

35
 On price comparison it was found that prices of Sungro vegetable
hybrids were competitively lower than that of major competitors like Seminis
and Nunhems, with some exceptions like Gotya tomato and No. 10 okra of
Mahyco, Sneha cauliflower and No. 404 cucumber of Namdhari.
4.2.2.2 Table of price comparison

Price Comparison for 100 gm hybrid in Rs.

Sungro Nunhems Seminis Mahyco Namdhari

Cabbage S-92 =800 Riya = 1100 C 401 = 900

Tushar = Sneha =
Cauliflower No159=1400 2500 Giriza = 1700 1000
No. 10= No 502 =
Okra No. 18 = 600 Tulsi = 1000 400 620
Laxmi = Gotya NS
Tomato Arjun = 1550 2500 Aruna = 1700 =1350 812=1600
PPL-74
Eggplant =400 Shilpa = 600 Shamali=1450
No 404 =
Cucumber No 404 = 90 Rani = 200 Malini_= 170 85

4.2.2.3 Perception about Ad-Campaign:

Composite sample of 215 respondents were asked to express their
perception about ad-campaign and the responses obtained are depicted in
figure 4.2.2.3.
4.2.2.3 Bar diagram showing perception about Ad-campaign

Perception about Ad-campaign

18 4
100% 29
64
80% 55
104 Extremely Poor
Percentage 60% 67 Moderately Poor
responses 115
40% Neutral
78 66 Moderately Good
20%
32
4 9 Extremely Good
0%
Sungro Seminis Nunhems
Companies
36
 Since sales-volume data indicated that Sungro was the market
leader in Bhagalpur hence it was difficult to accept poor perception towards
Sungro promotional activities as shown in bar diagram. Further investigation
made for knowing the status of promotional activities done by Sungro in
Bhagalpur revealed that almost all respondents were not satisfied with the
present Ad-campaign and promotional activities. Most of them were of the
opinion that company has not conducted demonstration, farmers meeting
and campaign at village level in good numbers.
When it was asked to distributor, one new problem appeared. At
present, Sungro Company is conducting adaptation as well as performance
trials on local location in joint venture with Mahyco company and person
conducting trials for both companies is basically employee of Mahyco. So,
results of trials as well as actual information regarding cultivation practices
to be adopted and what care should be taken and when; failed to reach to
Sungro distributor and staff in proper way and proper time.

4.2.2.4 Perception about Availability

All dealers/retailers (39), company distributor (1) and vegetable
growing farmers (175) i.e. composite sample of 215 respondents were
asked to express their perception about availability and the responses
obtained are depicted in figure 4.2.2.4.
4.2.2.4 Bar diagram showing perception about Availability

Perception about Availability

100%
33 39
90% 54
80%
70% 88
75 98 Extremely Poor
60%
Percentage Moderately Poor
50%
responses
Neutral
40%
Moderately Good
30%
85 90 69 Extremely Good
20%
10%
1 4 9
0%
Sungro Seminis Nunhems
Companies

37
 Most of the respondents were unhappy with irregular supply of
Sungro hybrids in Bhagalpur especially in vegetables like bitter gourd and
okra. Sungro distributor intimated about limited supply of No. 7777 okra
hybrid and Vivek bitter gourd this year also. Last year sale of Bitter gourd
was 200 kg which dropped to 100 kg this year just because of short supply
of seed though demand was more than 200 kg .

4.2.2.5 Perception about Margin

All dealers/retailers (39) and individual company distributor were
asked to express their perception about margin and the responses obtained
are depicted in figure 4.2.2.5.

4.2.2.5 Bar diagram showing perception about Margin

Perception about Margin

100% 6 5 6
80%
23 25 21
Percentage 60%
Responses 40%
20% 11 10 13

0%
Sungro Seminis Nunhems
Companies

Extremely Good Moderately Good Neutral Moderately Poor Extremely Poor

Most of the dealer, retailers and distributor himself have shown

satisfaction with the margin but some of the have shown interest in cash
discounts or any new promotional scheme as well as reward for extra
ordinary sales.

38
4.3: To study the marketing activities adopted by different
companies in Bhagalpur area

A list of marketing and promotion activities was made and all

respondents of composite sample were asked to express their perception
about these activities for different companies separately.

4.3.1 Marketing activities adopted by Nunhems

The perception of all respondents of composite sample about
satisfaction from marketing activities adopted by Nunhems were
collected and depicted in 4.3.1.
4.3.1 Bar graph showing marketing activities by Nunhems

250 198 204 215

200 150
Number of 114 124
150
Satisfied 89
100
respondents
50
0
Fa Ot Ca De PO Le Sc
r m he mp mo P afl he
e rs r s a n d e m
/D (Ind igni stra ispla t dist es
e a iv ng tio y rib
ler id u n u ti
s m al on
e e onc
tin ta c
g t)

Marketing activities by Nunhems

Satisfied

From figure 4.3.1, it is evident that maximum respondents were

satisfied with promotional schemes undertaken by Nunhems while
maximum numbers of respondents have shown their dissatisfaction
regarding farmers as well as dealers meeting. In others Numhems was
contacting farmers individually through company representatives and was
offering calendars, diary, T-shirts to retailers in good numbers.
Respondents were satisfied with leaflet distribution and POP displays by the
company.

39
4.3.2 Marketing activities adopted by Seminis

The perception of all respondents of composite sample about

satisfaction from marketing activities adopted by Seminis were
collected and depicted in 4.3.2.
4.3.2 Bar graph showing marketing activities by Seminis

250 192 195 215

200
Number of
Satisfied
150 100 109 114
89
100
respondents
50
0
Fa De Ca Ot Le PO Sc
r m mo mp her afle P he
e rs ns ai s d m
/De tra gni (Ind t dist is pla es
ale tion ng iv id ribu y
rs ua tion
me l co
etin n ta
g ct)

Marketing activities by Seminis

Satisfied

From the figure it is evident that maximum respondents were

satisfied with promotional schemes undertaken by Seminis while
maximum numbers of respondents have shown their dissatisfaction
regarding farmers as well as dealers meeting. In others Seminis have
distributed free sample in few villages to potential farmers and was
offering calendars to retailers in good numbers. Respondents were satisfied
with leaflet distribution and POP displays by the company.

40
4.3.3 Marketing activities adopted by Sungro
The perception of all respondents about satisfaction from
marketing activities adopted by Nunhems were collected and depicted
in 4.3.3.
4.3.3 Bar graph showing marketing activities by Sungro

250 215
179 185
200
Number of
150
Satisfied
100 54 62
respondents 33
50 0
0
Ot De Fa Ca PO Le Sc
he
r s mo n r me r mp a P dis afle t he me
(In stra s/D ign d
div e i play istrib s
id u tion aler ng u ti
al sm on
con ee
ta c tin
t) g

Marketing activities by Sungro

Satisfied

From the figure it is evident that maximum respondents were satisfied

with promotional schemes undertaken by Sungro while maximum
numbers of respondents have shown their dissatisfaction regarding
others and demonstration, farmers as well as dealers meeting and
campaigning. Sungro offers various promotional schemes like T- Shirt
scheme on 1 kg purchase of Vivek bitter gourd or 100 gm purchase of No.
626 cauliflower or No. 525 tomato, but this scheme is also now withdrawn
after gaining popularity.
On comparison satisfaction from marketing activities adopted by
different companies, it was concluded that Sungro has to work on
demonstration, farmers/dealers meeting and campaigning. Also, Sungro
should go for other than these activities like free sample distribution and
individual contact through company representatives.

41
4: To undertake SWOT analysis of Sungro seed

SWOT Analysis, is a strategic planning tool used to evaluate the

Strengths, Weaknesses, Opportunities, and Threats involved in a project or
in a business venture. It involves specifying the objective of the business
venture or project and identifying the internal and external factors that are
favorable and unfavorable to achieving that objective. Strengths and
Weaknesses are internal and Opportunities and Threats relate to external
factors. Thus, SWOT Analysis (Strengths, Weaknesses, Opportunities, and
Threats) is a powerful technique to throw light on business possibilities as
well as to chisel out strategies in a more streamlined manner to create a
niche in the market. Based on the perception of all the respondents
regarding Sungro Seeds Ltd. on the key factors identified for brand image,
SWOT analysis was done and presented below:

STRENGTHS WEAKNESSES

 Lower prices of vegetable seeds  Poor in promotional activities

like demonstration, campaigning
 Market leader and farmers or dealers meeting

 Good Quality hybrid seeds  Erratic availability of seeds

 Wider product line  Performance trial conduction

through Mahyco staff
 Sellers satisfaction for margin

OPPORTUNITIES THREATS

 Area under vegetables is  Entry of large number of competitors

increasing with few vegetable hybrids but at
lower prices
 Rising demand of vegetable seeds
 Very less market demand of hybrids
 Strong backup of R & D facility in some vegetables like papaya,
carrot, spinach etc.

Figure 4.4.1 SWOT analysis of Sungro

42
4.5: To frame out suitable strategy for strengthening and
repositioning the Sungro brand in Bhagalpur area
On the basis of SWOT analysis and open discussions with the
respondents, a strategy was formulated which is shown below in flow
diagram:

Strategy formulation

Appoint trial conductor Ensure uniform Sales turnover

& train field staff availability reward

Conduct farmer’s Improve Attractive

meeting, demonstration product line promotion schemes

Create awareness Motivation of dealers

Market penetration
and good brand image and distributors

Brand Repositioning & Strengthening

Figure 4.5.1 Brand repositioning and Brand strengthening

Key parameters of the strategy are as under:

1. Appointment of trial conductor and training of field staff: -
At present, Sungro Company is conducting adaptation as well as
performance trials on local location in joint venture with Mahyco Company
and person conducting trials for both companies is basically employee of
Mahyco. So, results of trials as well as actual information regarding
cultivation practices to be adopted and what care should be taken and
when; failed to reach to Sungro distributor and staff in proper way and
proper time. When company people are in suspicion state, it affects the
promotional efforts. So, there should be appointment of any experienced
person from Sungro to fill this communication gap. Training of the field staff
needed for enhancing effectiveness of promotional activities.

43
2. Ensure uniform availability:
It is a serious matter of thinking for any company if it would loose
market share, just because of erratic availability of product. Sungro
company introduced T-shirt scheme on Vivek bitter gourd last year. Due to
better quality, price and T-shirt scheme Vivek capture good market there
and gained a sale of about 200 kg. This year demand was more than 200
kg but the supply was only 100 kg. Similarly Sungro distributor told about
short supply of No. 7777 okra hybrid this year also. Similarly, Malti
cucumber was in demand but due to short supply, farmers remain devoid of
cucumber seed.

3. Farmers / dealers meeting and demonstrations: -

Frequency and effectiveness of farmers meetings, demonstrations
and promotional campaign should be increased. Aishwarya okra hybrid
flopped in Bhagalpur due to lack of focused promotion. Though both Vivek
bitter gourd and Pratima bottle gourd are good performing but due to very
less promotional activities, not getting the proper response.

4. Improvement in product line: -

Sungro has some best quality well-established trusted hybrids in
different vegetables like Vivek, PPL-74, Chakor, Gaurav, S-92 and No. 7777
etc. Also widest and diverse product line is available as in case of Brinjal.
But, in few dissatisfaction on quality is also there so improvement is
required in those vegetables.

5. Attractive promotion schemes: -

To attract customers, every company is offering something extra like:
 Vigro bhindi of Golden Seeds private limited, offers one steel dish
free on buying 500 gm tinned pack of hybrid seeds.
 No. 10 bhindi of Mahyco offers one Knapsack sprayer free on
buying 3 kg of hybrid seeds and one silk sari free on buying 1kg
of hybrid seeds.

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 The results of T-shirt scheme of Sungro Seed Ltd. were very positive
but now this is also withdrawn. So, company should announce some
schemes as proactive step or reactive step.

6. Creation of awareness among non-vegetable or non-hybrid

growers:
Awareness should be created among non-growers of vegetables as
well as non-hybrid vegetable growers about benefits of adopting hybrids
vegetables, so that they become next customers.

7. Market penetration: -
Till date, a lot of areas is remain untapped by Sungro, so
company should explore new market for brand awareness and
strengthening. Also, within vegetables like Chilli, Sungro ranked last while
maximum percentage growth will be in Chiil, so, target crop should be Chilli.

8. Sales turnover reward:-

On extra-ordinary sale due to individual effort, dealers or retailers
must be recognized, praised and awarded by cash discounts etc.

9. Motivation to dealers, retailers and distributors :-

The study revealed that farmers were giving priority to dealer
suggestion and dealers / retailers have shown preference to margin.

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 5. Conclusion and Recommendations

5.1 Conclusion

From the study undertaken, the following conclusions can be drawn:

 Area under vegetables is increasing in Bhagalpur district of Bihar

state with maximum percentage growth in Chilli while Sungro ranked
last in chilli. So, Sungro should target Chilli to capture more and more
market in future.
 Sungro Seeds Ltd. is a market leader in Bhagalpur with good share
in brinjal, cauliflower, gourds, tomato but poor in chilli, cucumber,
spinach, carrot etc.
 Sungro Seeds Ltd. is better than its competitors in price affordability,
margin and quality.
 Sungro Seeds Ltd. is poor than its competitors in ad-campaign and
availability of hybrid seeds.
 Sungro Seeds Ltd. is also inferior in promotional activities like
demonstration, farmers meeting and campaigning.
So it can be said that:
SUNGRO SEEDS Ltd. has taken long span to reach a status
where it can enjoy the benefits of good brand image and market leadership,
so necessity of the time is to retain this position and it could be only
possible through brand repositioning and brand strengthening.

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5.2 Recommendations

On the basis of study, the following recommendations are made:-

 Sungro should target Chilli to capture more and more market in

future.

 Sungro should appoint an expert for adaptive and performance trials.

 Frequency and effectiveness of farmers meetings, demonstrations

and promotional campaign should be increased.

 Sungro should ensure the desired and timely supply of hybrids.

 Sungro should improve quality of hybrids of certain vegetable like

chilli, cucumber and cauliflower.

 Prices of Sungro seed should not be raised every year.

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 6. References

Banumathy, S and M. Hemameena (2006). Analysis of brand preference of

softdrinks in the global environment, Indian Journal of Marketing, 36(6):
12-17

Ganguli, Shirshendu (2008). Breathing Brands, Advertising Express, February,

pp. 20-23

Jhala, Ranveer Singh (2005). Study of vegetable seed market dynamics and
evolution of marketing strategies for south Rajasthan, Project Report
submitted to Rajasthan Agricultural University, Bikaner

Kamatam, Maheshwara Reddy (2003). To study the market potential and

perception of dealers on NFCL products in Guntur district of A.P., Project
Report submitted to Rajasthan Agricultural University, Bikaner

Paliwal, Gyanendra (2001). Market potential of hybrid cucumber seeds in the

district of Jaipur & Tonk with reference to variety malini and rohini of Seminis
seeds, Project Report submitted to Rajasthan Agricultural University, Bikaner

Rajpurohit, Ravinder Singh (2002). Status of vegetable seed market of

Sriganganagar & Hanumangarh districts in Rajasthan and possibility of
increasing sales of Century seeds, Project Report submitted to Rajasthan
Agricultural University, Bikaner

Reddy,D. Raghunantha and N. Shivkumar (2005). Market Potential for The Hindu
in urban and semi-urban areas, Indian Journal of Marketing, 35(11):3-11

Singh, Harinder Paul Singh (2002). Estimation of market potential and product
requirement for early corn market in U.P., Project Report submitted to
Rajasthan Agricultural University, Bikaner

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