Documents - Pub Iffco-2

Marketing of Fertilizers by IFFCO
ACKNOWLEDGEMENT
I feel enriched with knowledge and experience gained during my training at Indian
Farmers Fertilisers Cooperative Limited. The guidance and cooperation received
during my training is invaluable.
I take this opportunity to express my gratitude and deep regards to my guide Mr

N.K.Salhotra Chief Manager (Marketing) for giving my spirit a boost and his
continuous support and inspiration. My sincere appreciation to all the people at
IFFCO who were helpful at all conceivable times, for their fruitful and informative
discussions on numerous aspects of the project and encouragement provided by
them.
I’m extremely thankful to Mrs.RITU BAJAJ (Faculty guide) BPIT, ROHINI,

DELHI who gave me useful suggestions throughout and extended all possible help
during the preparation of the report.
Lastly I would like to thank all those people who have directly or indirectly helped
me during the project.
TARUN DIXIT
Bhagwan Parshuram Institute Of Technology Page 1

Executive Summary:
IFFCO is one of the largest chemical fertilizer producers in the

country/Asian region over a period of 25 years. IFFCO has been concentrating in
the production and marketing of nitrogen phosphorus and potassium (NPK) complex
and urea and introduced Di-ammonium Phosphate (DAP) in 1981.
T h e s t u d y m a i n l y i n v o l v e s s t u d yi n g a n d analyzing the
current marketing strategy system and identifying the gaps between the
current state and the desired-in-state. The general methodology adopted for
study was primarily collection of primary dative; Survey based. Some s e c o n d a r y
sources like company records, manuals, books, accounting and
internet were also tapped.
The study was undertaken to understand that how implementation of marketing

strategies and Promotional programs initiated by IFFCO. As to study about these
strategies you need to learn about farmer’s needs and behaviour in order to develop
stronger relationship with them.
Good customer relationship are at the heart of business success. Today it is the
hardcore fact that understanding your customer needs and fulfilling them will help
you to establish your business in more firm manner.
Implementation of marketing strategy by IFFCO not only means maintaining a good

relationship with the farmers but also seeking a sustainable position and maintaining
a brand image in the market.
In this project different ways are used to find out the needs of the farmers in respect
of the fertilizers. It is conducted to check the expectations of the farmers from the
fertilizers and the IFFCO.
Various methods are used to collect the data from the farmers in order to note down
there response such as primary and secondary data collection method are used.
Further the data analysis and interpretation is done from the data collected from the
different farmers in the form of questionnaires and interviews conducted. Data
analysis is done with the help of various charts and tools and techniques are used.
In this the various research findings are noted in order to be understand the various
marketing strategies which are used for promotion and distribution of the IFFCO
products.

TABLE OF CONTENTS
TOPICS PAGE NO.
 Certificate(Company) i
 Certificate(Institute) ii
 Declaration iii
 Acknowledgement iv
 Executive Summary v
Chapter1. Introduction 1.
Chapter2. Industry Profile 6.
2.1. Fertilizer as Industry

2.2. Competitors of IFFCO
2.3. Joint Venture
Chapter3. Company Profile 13.
3.1. IFFCO at a glance

3.2. Mission and Vision
3.3. SWOT Analysis
Chapter4. Objectives of Study 23.
Chapter5. Research methodology 24.
Chapter6. Marketing strategies in IFFCO 25.
Chapter7. Data Analysis and Interpretation 32.
Chapter8. Research Findings 50.
Chapter9. Conclusion 52.
Chapter10.Recommendation and Suggestions 53.
Chapter11.Limitations of the study 54.
Chapter12.Annexture 55.
12.1. Questionnaires
12.2. Bibliography

INTRODUCTION OF MARKETING STRATEGIES:
A Marketing strategy is most effective when it is an integral component of firm

strategy, defining how the organization will successfully engage customers,
prospects and competitors in the market arena. Corporate strategies , corporate
mission and corporate goals. As the customer constitutes the source of a company’s
revenue, marketing strategy is closely linked with sales. A key component of
marketing strategy is often to keep marketing in line with a company’s overarching
mission statement.
Basic Theory:
1. Target Audience
2. Proposition/Key Element
3. Implementation
Types of Strategies:
Marketing strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic
strategies. A brief description of the most common categorizing schemes is presented
below:
 Strategies based on market dominance - In this scheme, firms are classified based
on their market share or dominance of an industry. Typically there are four types
of market dominance strategies:
o Leader
o Challenger
o Follower
o Nicher
 Porter generic strategies - strategy on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while strategic
strength refers to the firm’s sustainable competitive advantage. The generic
strategy framework (porter 1984) comprises two alternatives each with two
alternative scopes. These are Differentiation and low-cost leadership each with a
dimension of Focus-broad or narrow.
o Product differentiation (broad)
o Cost leadership (broad)
o Market segmentation (narrow)

 Innovation strategies — This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is on
the cutting edge of technology and business innovation. There are three types:
o Pioneers
o Close followers
o Late followers
 Growth strategies — In this scheme we ask the question, “How should the firm
grow?”. There are a number of different ways of answering that question, but the
most common gives four answers:
o Horizontal integration
o Vertical integration
o Diversification
o Intensification
Strategic Models:
Marketing participants often employ strategic models and tools to analyze marketing
decisions. When beginning a strategic analysis, the 3Cs can be employed to get a
broad understanding of the strategic environment. An Ansoff Matrix is also often
used to convey an organization's strategic positioning of their marketing mix. The
4Ps can then be utilized to form a marketing plan to pursue a defined strategy.
There are many companies especially those in the Consumer Package Goods (CPG)
market that adopt the theory of running their business centered around Consumer,
Shopper & Retailer needs. Their Marketing departments spend quality time looking
for "Growth Opportunities" in their categories by identifying relevant insights (both
mindsets and behaviors) on their target Consumers, Shoppers and retail partners.
These Growth Opportunities emerge from changes in market trends, segment
dynamics changing and also internal brand or operational business challenges. The
Marketing team can then prioritize these Growth Opportunities and begin to develop
strategies to exploit the opportunities that could include new or adapted products,
services as well as changes to the 7Ps.

INDUSTRY PROFILE:
FERTILIZERS AS INDUSTRY:
Fertilizer (or fertiliser) is any organic or inorganic material of natural or synthetic
origin (other than liming materials) that is added to a soil to supply one or more plant
nutrients essential to the growth of plants. A recent assessment found that about 40 to
60% of crop yields are attributable to commercial fertilizer use.
Fertilizers typically provide, in varying proportions:
 six macronutrients: nitrogen (N), phosphorus (P), potassium (K), calcium

(Ca), magnesium (Mg), and sulfur (S);
 seven micronutrients: boron (B), chlorine (Cl), copper (Cu), iron (Fe),
manganese (Mn), molybdenum (Mo), and zinc (Zn).
There are two types of fertilizers commonly available in market:
1. Inorganic fertilizer (synthetic fertilizer)
 Fertilizers are broadly divided into organic fertilizers (composed of enriched

organic matter—plant or animal), or inorganic fertilizers (composed of
synthetic chemicals and/or minerals).
 Inorganic fertilizer is often synthesized using the Haber-Bosch process,
which produces ammonia as the end product. This ammonia is used as a
feedstock for other nitrogen fertilizers, such as anhydrous ammonium nitrate
and urea. These concentrated products may be diluted with water to form a
concentrated liquid fertilizer (e.g. UAN). Ammonia can be combined with
rock phosphate and potassium fertilizer in the Odda Process to produce
compound fertilizer.
 The use of synthetic nitrogen fertilizers has increased steadily in the last 50
years, rising almost 20-fold to the current rate of 100 million tonnes of
nitrogen per year. The use of phosphate fertilizers has also increased from 9
million tonnes per year in 1960 to 40 million tonnes per year in 2000. A
maize crop yielding 6-9 tonnes of grain per hectare requires 31–50 kg of
phosphate fertilizer to be applied, soybean requires 20–25 kg per hectare.
Yara International is the world's largest producer of nitrogen based fertilizers.

Problems with inorganic fertilizer

 Trace mineral depletion
Many inorganic fertilizers may not replace trace mineral elements in the soil which
become gradually depleted by crops. This depletion has been linked to studies which
have shown a marked fall (up to 75%) in the quantities of such minerals present in
fruit and vegetables.
2. Organic Fertilizers
Organic fertilizers include naturally occurring organic materials, (e.g. manure, worm
castings, compost, seaweed, guano), or naturally occurring mineral deposits (e.g.
saltpeter).
Benefits of organic fertilizer
 Organic fertilizers have been known to improve biodiversity (soil life) and
long-term productivity of soil, and may prove a large depository for excess
carbon dioxide.
 Organic nutrients increase the abundance of soil organisms by providing
organic matter and micronutrients for organisms such as fungal mycorrhiza
(which aid plants in absorbing nutrients), and can drastically reduce external
inputs of pesticides, energy and fertilizer, at the cost of decreased yield.
Disadvantages of organic fertilizers
 Organic fertilizers may contain pathogens and other disease causing

organisms if not properly composted
 Nutrient contents are very variable and their release to available forms that
the plant can use may not occur at the right plant growth stage
 Organic fertilizers are comparatively voluminous and can be too bulky to
deploy the right amount of nutrients that will be beneficial to plants
 More expensive to produce
 not eco friendly.
Comparison with inorganic fertilizer
Organic fertilizer nutrient content, solubility, and nutrient release rates are typically
all lower than inorganic fertilizers. One study found that over a 140-day period, after
7 leaching’s:
 Organic fertilizers had released between 25% and 60% of their nitrogen
content

 Controlled release fertilizers (CRFs) had a relatively constant rate of release

 Soluble fertilizer released most of its nitrogen content at the first leaching
In general, the nutrients in organic fertilizer are both more dilute and also much less
readily available to plants. According to the University of California's integrated pest
management program, all organic fertilizers are classified as 'slow-release' fertilizers,
and therefore cannot cause nitrogen burn.
Organic fertilizers from composts and other sources can be quite variable from one
batch to the next.Without batch testing, amounts of applied nutrient cannot be
precisely known. Nevertheless they are at least as effective as chemical fertilizers
over longer periods of use.
Negative environmental effects:

1. Water quality
2. Eutrophication
The nitrogen-rich compounds found in fertilizer runoff is the primary cause of a

serious depletion of oxygen in many parts of the ocean, especially in coastal zones;
the resulting lack of dissolved oxygen is greatly reducing the ability of these areas to
sustain oceanic fauna.[45] Visually, water may become cloudy and discolored (green,
yellow, brown, or red).
2. Blue Baby Syndrome
High application rates of inorganic nitrogen fertilizers in order to maximize crop

yields, combined with the high solubilities of these fertilizers leads to increased
runoff into surface water as well as leaching into groundwater. The use of
ammonium nitrate in inorganic fertilizers is particularly damaging, as plants absorb
ammonium ions preferentially over nitrate ions, while excess nitrate ions which are
not absorbed dissolve (by rain or irrigation) into runoff or groundwater.
3. Soil acidification
Nitrogen-containing inorganic and organic fertilizers can cause soil acidification

when added. This may lead to decreases in nutrient availability which may be offset
by liming.
4. Persistent organic pollutants
Toxic persistent organic pollutants ("POPs"), such as Dioxins, polychlorinated

dibenzo-p-dioxins (PCDDs), and polychlorinated dibenzofurans (PCDFs) have been
detected in agricultural fertilizers and soil amendments[53]

5. Heavy metal accumulation
The concentration of up to 100 mg/kg of cadmium in phosphate minerals (for

example, minerals from Nauru and the Christmas islands increases the
contamination of soil with cadmium, for example in New Zealand.
6. Radioactive element accumulation
Uranium is another example of a contaminant often found in phosphate fertilizers (at

levels from 7 to 100 pCi/g). Eventually these heavy metals can build up to
unacceptable levels and build up in vegetable produce. Average annual intake of
uranium by adults is estimated to be about 0.5 mg (500 μg) from ingestion of food
and water and 0.6 μg from breathing air.
7. Atmosphere
Global methane concentrations (surface and atmospheric) for 2005; note distinct
plumes.Methane emissions from crop fields (notably rice paddy fields) are increased
by the application of ammonium-based fertilizers; these emissions contribute greatly
to global climate change as methane is a potent greenhouse gas.
Through the increasing use of nitrogen fertilizer, which is added at a rate of 1 billion
tons per year presently to the already existing amount of reactive nitrogen, nitrous
oxide (N2O) has become the third most important greenhouse gas after carbon
dioxide and methane. It has a global warming potential 296 times larger than an
equal mass of carbon dioxide and it also contributes to stratospheric ozone depletion.
Storage and application of some nitrogen fertilizers in some weather or soil

conditions can cause emissions of the potent greenhouse gas—nitrous oxide.
Ammonia gas (NH3) may be emitted following application of 'inorganic' fertilizers
and/or manures and slurries.
The use of fertilizers on a global scale emits significant quantities of greenhouse gas
into the atmosphere. Emissions come about through the use of:
 animal manures and urea, which release methane, nitrous oxide, ammonia,
and carbon dioxide in varying quantities depending on their form (solid or
liquid) and management (collection, storage, spreading)
 fertilizers that use nitric acid or ammonium bicarbonate, the production and
application of which results in emissions of nitrogen oxides, nitrous oxide,
ammonia and carbon dioxide into the atmosphere.
By changing processes and procedures, it is possible to mitigate some, but not all, of
these effects on anthropogenic climate change.

8. Other problems
 Increased pest fitness
Excessive nitrogen fertilizer applications can also lead to pest problems by increasing
the birth rate, longevity and overall fitness of certain agricultural pests, such as
aphids (plant lice).
Growth of Indian Fertilizer Industry
The Indian fertilizer industry has come a long way since the setting up of the
manufacturing unit of Single Super phosphate (SSP) near Chennai in 1906 A new
impetus to the growth of Indian Fertilizer industry was provided by the set up the two
fertilizer plants- Fertilizer & Chemicals Travancore of India Ltd. (FACT) in Kerala
and the Fertilizers Corporation of India (FCI) in Bihar. This was during the forties
and the fifties. The aim was to create an industrial base that would provide India with
self reliability in food grains.
India witnessed significant growth of the fertilizer industry during the sixties and the
seventies. By 2003, India had an installed capacity of 12.11 million MT of nitrogen
and 5.36 million MT of phosphate. Today, with 57 large sized fertilizer plants
manufacturing a wide variety of the nitrogenous, complex and phosphatic fertilizers,
the Indian fertilizer industry is the 3rd largest producer in the world. One of the
major factors that have led to the rapid increase in the production capacity of
fertilizers in India is the policy environment. With the formulation and
implementation of investor friendly policies, large investments poured into the
private, public and co-operative sectors and this propelled the growth of the Indian
fertilizer industry.

Competitors of IFFCO:
In fertilizer marketing, lot of competitors exist in each state but IFFCO is one brand
that stands out of the major players in this industry and is the biggest fertilizer
company in Asia. It is one of the oldest and one of the trusted brand in the market. It
is so much trusted that farmers can actually wait for IFFCO products or can drive
miles to get IFFCO products. For farmer the word IFFCO stands for quality and most
other competing brand stand for duplicacy. As per one of the farmers remarks, none
of the players in the market give you a better quality and price than IFFCO products.
Its only then when farmers actually move to other brands like NFL, PPL, TATA
CHEMICALS, OSWAL and KRIBACHO. It is because of this perception in the
farmers mind that today every 4ͭ ͪ - 5ͭ ͪ bag of fertilizer consumed is of IFFCO.
But brands like TATA chemicals and KRIBHCO are quickly coming into the picture
and are posing a serious threat to IFFCO. They are very cleverly hitting on IFFCOs
weaknesses i.e. unavailability and are making their products readily available at the
time of scarcity and are charging premium for that. They have also launched a series
of programs to make their brand more visible, make people more aware of the quality
of product and also to have a better connect with farmers.
In order to withstand competition IFFCO is providing competitive sale terms to the

marketers, increasing direct supply of IFFCO fertilizers to the societies to make them
financially viable projects, organizing need based & location specific promotional
and extension programmes to increase the sale of IFFCO fertilizers through societies
and also organizing Training for Cooperative Personnel to apprise them about the
latest available agro technology. In an attempt to make cooperative projects more
viable they have gone to an axtent that today they are hiring space with the
cooperative (66% at present), giving transportation work to the adopted societies,
giving rake handling work to the adopted societies wherever feasible, warehousing
jobs to the adopted societies.
Joint Ventures:
The IFFCO Group is a family of following group:

1. IFFCO Kisan Sewa Trust.
2. IFFCO Foundation.
3. IFFCO Exchange/Collateral Management.
4. IFFCO Kisan Sanchar Ltd.
5. IFFCO-TOKIO General Insurance Company (ITGI).
IFFCO KISAN SEWA TRUST

IFFCO has established a charitable trust known as “IFFCO Kisan Trust” to provide
relief and rehabilitation to victims in the event of natural calamities like floods,

earthquakes, cyclones, landslides and droughts etc. IFFCO initially contributed Rs.10
crore and has been making contribution of Rs.1 crore every year. IFFCO employees
also regularly contribute to this Trust. The Trust is undertaking programs ad projects
aimed at improving the quality of life of farmers. The Trust is undertaking programs
and projects aimed at improving the quality of life of farmers. The Trust organized
mega medical camp, eye check-up camps for the farmers of Rajasthan, Uttar Pradesh
and Punjab.
IFFCO FOUNDATION
IFFCO laid the foundation of a ‘Think Tank’ ‘Brain Tank’ named “IFFCO
Foundation” in January 2003. The main objective of the “IFFCO Foundation” is to
focus on strengthening cooperative structure, developing social capital and human
resources and promoting cultural development through cooperative organization,
empowerment of women and youth, development of micro enterprise and micro
credit concepts and pioneering reform and advancements in cooperatives. Foundation
has been recognized as National Level Agency by Govt. of India for implementation
of Horticulture Program through SHG/Cooperatives.
IFFCO EXCHANGE/COLLATERAL MANAGEMENT

To empower the farmers by providing them range of service, which includes price
discovery, Price dissemination, Risk hedging and providing a national level trading
platform. IFFCO stepped into the area of Commodity Exchange by acquiring 12
percent stake in National Commodities and Derivative Exchange (NCDEX) in 2004.
The exchange offers contracts in 51 commodities which include 41 agriculture
commodities, 2 energy, 6 metals and 2 bullion products. The exchange provides
range of services which include Price Discovery and Price Dissemination. IFFCO
along with seven other institutions co-promoted National Collateral Management
Services Limited (NCMSL), which is the first national level collateral management
company to be set up in India. On the agricultural side, NCMSL provides
Procurement, Storage and Preservation, Quality testing and Certification, Collateral
Management and information Services. It accredits were-houses, which meet the
parameters for scientific storage.
IFFCO KISAN SANCHAR LIMITED (IKSL)

IFFCO launched a new subsidiary viz. ‘IFFCO Kisan Sanchar Ltd.’ (IKSL) with an
aim to deploy Information Communication Technology to empower farmers in rural
India and to strengthen the cooperative network in the country. IKSL will identify
the needs of telecom & communication products and services which would add value
to the life of farmer and retail them directly through the vast reach of cooperative
societies.
IFFCO-TOKIO GENERAL INSURANCE COMPANY (ITGI)

Pursuant to IFFCO’s plans to diversify into areas other then fertilizers, which can be
beneficial for Indian farmer IFFCO and TOKIO Marine and Fire Insurance Company
Limited, Japan established a joint venture company known as IFFCO-TOKIO
General Insurance Company Ltd (ITGI) for undertaking general insurance business
in India. IFFCO and its associates have subscribed to 74% equity in share holding of
ITGI Ltd. The company operates through 51 branches across the company.

COMPANY PROFILE
IFFCO AT A GLANCE:
 During mid- sixties the Co-operative sector in India was responsible for
distribution of 70 per cent of fertilizers consumed in the country. This Sector
had adequate infrastructure to distribute fertilizers but had no production
facilities of its own and hence dependent on public/private Sectors for
supplies.
 To overcome this lacuna and to bridge the demand supply gap in the country,
a new cooperative society was conceived to specifically cater to the
requirements of farmers. It was an unique venture in which the farmers of the
country through their own Co-operative Societies created this new institution
to safeguard their interests. The number of co-operative societies associated
with IFFCO has risen from 57 in 1967 to 38, 155 at present.
 Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on

November 3, 1967 as a Multi-unit Co-operative Society. On the enactment of
the Multistage Cooperative Societies Act 1984 & 2002, the Society is deemed
to be registered as a Multistage Cooperative Society. The Society is primarily
engaged in production and distribution of fertilizers.

 IFFCO commissioned an ammonia - urea complex at Kalol and the

NPK/DAP plant at Kandla both in the state of Gujarat in 1975. Ammonia -
urea complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The
ammonia - urea unit at Aonla was commissioned in 1988.
 In 1993, IFFCO had drawn up a major expansion programme of all the four
plants under overall aegis of IFFCO vision 2000. The expansion projects at
Aonla, Kalol, Phulpur, and Kandla have been completed on schedule. Thus
all the projects conceived as part of Vision 2000 have been realized without
time or cost overruns.
 All the production units of IFFCO have established a reputation for

excellence and quality. A new growth path has been chalked out to realize
newer dreams and greater heights through Vision 2010 which is presently
under implementation.
 As part of the new vision, IFFCO has acquired fertilizer unit at Paradeep in
Orissa in September 2005. As a result of these expansion projects and
acquisition, IFFCO's annual capacity has been increased to 3.69 million tones
of Urea and NPK/DAP equivalent to 1.71 million tones of P2O5.
 IFFCO has made strategic investments in several joint ventures. Godavari

Fertilizers and Chemicals Ltd (GFCL) & Indian Potash Ltd (IPL) in India,
Industries Chimiques du Senegal (ICS) in Senegal and Oman India Fertilizer
Company (OMIFCO) in Oman are important fertilizer joint ventures. Indo
Egyptian Fertilizer Co (IEFC) in Egypt is under implementation.
 As part of strategic diversification, IFFCO has entered into several key

sectors. Through ITGI, IFFCO has formulated new services of benefit to
farmers. 'Sankat Haran Bima Yojana' provides free insurance cover to
farmers along with each bag of IFFCO fertilizer purchased.
 To take the benefits of emerging concepts like agricultural commodity

trading, IFFCO has taken equity in National Commodity and Derivative
Exchange (NCDEX) and National Collateral Management Services Ltd

(NCMSL). IFFCO Chattisgarh Power Ltd (ICPL) which is under

implementation is yet another foray to move into core area of power. IFFCO
is also behind several other companies with the sole intention of benefiting
farmers.
 The entire activities of Distribution, Sales and Promotion are co-coordinated

by Marketing Central Office (MKCO) at New Delhi assisted by the
Marketing offices in the field. In addition, essential agro-inputs for crop
production are made available to the farmers through a chain of 158 Farmers
Service Centre (FSC).
 IFFCO has promoted several institutions and organizations to work for the
welfare of farmers, strengthening cooperative movement, improve Indian
agriculture. Indian Farm Forestry Development Cooperative Ltd (IFFDC),
Cooperative Rural Development Trust (CORDET), IFFCO Foundation, Kisan
Sewa Trust belongs to this category.
 An ambitious project 'ICT Initiatives for Farmers and Cooperatives' is

launched to promote e-culture in rural India. IFFCO obsessively nurtures its
relations with farmers and undertakes a large number of agricultural
extension activities for their benefit every year.
 At IFFCO, the thirst for ever improving the services to farmers and member
co-operatives is insatiable, commitment to quality is insurmountable and
harnessing of mother earths' bounty to drive hunger away from India in an
ecologically sustainable manner is the prime mission.
 All that IFFCO cherishes in exchange is an everlasting smile on the face of

Indian Farmer who forms the moving spirit behind this mission.
IFFCO, to day, is a leading player in India's fertilizer industry and is making
substantial contribution to the efforts of Indian Government to increase food
grain production in the country

Vision:
 IFFCO’s vision is "to augment the incremental incomes of farmers by helping

them to increase their crop productivity through balanced use of energy
efficient fertilizers, maintain the environmental health and to make
cooperative societies economically & democratically strong for
professionalized services to the farming community to ensure an empowered
rural India.”
 To retain dominant position in Indian fertilizer sector and cost effective
technologies.
 Sourcing raw materials for production of Phosphate Fertilizers at low cost
with joint ventures outside India.
 Emerging as a dynamic organization, focusing on strategies maximizing the
shareholders value.
 To build a culture of trust, openness & mutual concern.
 Implement diversification in information technologies.
 Committed to cooperate social responsibilities for sustainable development.
 Commitment to health, safety, environment & forestry development to
enhance quality of community life.
 A true cooperative society committed to foster cooperative movement in the
country.
VISION 2015
 IFFCO successfully implemented its earlier Corporate Plans namely
“VISION 2000”, “MISSION 2005” and ‘VISION 2010’ which resulted into
becoming one of the largest producer and marketer of Chemical Fertilisers by
expansion of IFFCO’s existing units, setting up joint venture companies
overseas and diversification into new sectors.
 IFFCO has now visualised a comprehensive Plan entitled ‘VISION-2015’
having objectives of :-
 Production of fertilisers through expansion of existing units
 Setting up of additional fertiliser production facilities in India and Abroad
through joint ventures
 Diversification into other profitable sectors
 Strengthening raw material sourcing through Strategic joint ventures
 Formulation of Strategic Alliances through IFFCO consortium

Mission:
 To provide to farmers high quality fertilizers in right time and in adequate

quantities with an objective to increase crop productivity.
 To make plants energy efficient and continually review various schemes to
conserve energy.
 Commitment to health, safety, environment and forestry development to
enrich the quality of community life.
 Commitment to social responsibilities for a strong social fabric.
 To institutionalize core values and create a culture of team building,
empowerment and innovation which would help in incremental growth of
employees and enable achievement of strategic objectives.
 Foster a culture of trust, openness, and mutual concern to make working a
stimulating and challenging experience for stake holders.
 Building a value driven organization with an improved and responsive
customer focus. A true commitment to transparency, accountability, and
integrity in principle and practice.
 To acquire, assimilate and adopt reliable, efficient, and cost effective
technologies.
 Sourcing raw materials for production of phosphates fertilizers at economical
cost by entering into Joint Ventures outside India.
 To ensure growth in core and non-core sectors.
 A true Cooperative Society committed for fostering cooperative movement in
the country.
 Emerging as a dynamic organization, focusing on strategic strengths, seizing
opportunities for
generating and building upon past success, enhancing earnings to maximize
the shareholders' value
Our Main Aim.
“Strengthening management and participatory character of the Indian Cooperative

Movement by using duly tested and appropriate consultancy, advisory and
technological interventions sourced from within the country and abroad and in
accordance of the Cooperative Principles and in harmony with the law and culture of
the land.”
Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on

November 3, 1967 as a Multi-unit Co-operative Society engaged in the production of
fertilizer to help the farmers of India. During mid- sixties the Co-operative sectoring
India was responsible for distribution of 70 per cent of fertilizers consumed in the
country. This Sector had adequate infrastructure to distribute fertilizers but had no
production facilities of its own and hence dependent on public/private Sectors for
supplies. Hence to overcome this lacuna and to bridge the demand supply gap in the
country, a new cooperative society i.e. IFFCO came into the picture. The society has
grown in strength from a modest membership of 57 societies in 1967-68 to 39824
cooperative societies and 158 Farmers Service Centers of its own spread across 17
states namely, Jammu & Kashmir, Punjab, Haryana, Uttar Pradesh, Jharkhand,
Rajasthan, Uttaranchal, Bihar, Madhya Pradesh, West Bengal, Goa, Andhra Pradesh,
Tamil Nadu, Kerala, Karnataka, Assam, & Orissa.Today IFFCO is the largest
producer of fertilizers in the country and the only Fertilizer Institution in the country
to have surpassed 6 Million MT per annum in terms of production and 8 Million MT
per annum in respect of sales. So we can say that IFFCO, to day, is a leading player
in India’s fertilizer industry and is making substantial contribution to the efforts of
Indian Government to increase food grain production in the country.The organization
has production facilities at AONLA, KANDLA, PHULPUR, KALOL and the latest
one at PARADEEP. Due to the increasing demand of fertilizers all these plants have
undergone an expansion of production facilities.
Byelaws:
The byelaws of IFFCO provide the framework within which IFFCO as a cooperative
Society operates. They define the objectives, guidelines for membership and other
rules for administrative operations of the Society. The broad objective of IFFCO as
enshrined in the byelaws are to promote the economic production / development of
chemical fertilizers, bio-fertilizers, petro-chemicals, industrial chemicals, their,
inputs and technologies, and allied products/ bye - products and conversion, storage,
transportation and marketing.
The bye-laws also provide for manufacturing processing / conversion of farm

products including sugar cane, derived products and bye-products, pesticides, seeds,
farm produces, bio-technology, pisi-culture and aqua farming, agriculture machinery,
implements and other agricultural inputs and their conversion, storage, transpiration
and marketing and undertake trading, shipping, transportation.
IFFCO's main thrust has been on production and distribution of mineral fertilizers in
which it has carved out a niche for itself. The endeavors had always been to make the
country self-sufficient in this crucial input for agriculture and ensure its timely
availability to the farmers.

PRODUCTS OF IFFCO:
IFFCO's Urea:
IFFCO's Urea is not merely a source of 46% of nutrient nitrogen for crops, but it is
an integral part of millions of farmers in India. A bag of IFFCO's urea is a constant
source of confidence and is a trusted companion for Indian farmer.
Urea is the most important nitrogenous fertilizer in the country because of its high N
content (46%N). Besides its use in the crops, it is used as a cattle feed supplement to
replace a part of protein requirements. It has also numerous industrial uses notably
for production of plastics.The rapid hydrolysis of urea in soils can be responsible for
ammonia injury to seedlings if large quantities of this material placed with or too
close to the seed. Proper placement of fertilizer urea with respect to seed can
eliminate this difficulty.
IFFCO's NPK/DAP:
As far as Indian farmer is concerned, IFFCO's NPK/DAP is not just a source of
crucial nutrients N, P, K for the crops, but is an integral part of his/her quest for
nurturing mother earth. The bountiful crop that results from this care is an enough
reason for the graceful bags of IFFCO NPK/DAP bags to be an integral part of the
farmer’s family. The two grades of NPK produced by IFFCO, 10:26:26, and
12:32:16, indicating the content of N, P, K proportion, are tailor made to supply the
exact composition required for replenishment of the soil. The Indian farmer's
confidence and trust stems from the fact that IFFCO's NPK/DAP are merely a part of
a complete package of services, ably supported by a dedicated team of qualified
personnel. More importantly, they are aware, IFFCO is a cooperative society owned
by farmers cooperatives.

BIO – FERTILISERS:
A biofertiliser unit was established at Cooperative Rural Development Trust, Phulpur
(Uttar Pradesh) in 1996 - 97 and other at Kalol (Gujarat) in 2003-04 with an annual
capacity of 75 MT and 165 MT respectively of different cultures such as Rhizobium,
Azotobacter, PSM, Azospirillium, and Acetobacter
PRODUCTION AND SALES:
During the year 2010-11 IFFCO produced 85.83 Lakh (8.583 million) MT (Metric
Tonnes) of fertilizer material, consisting of 44.02 lakh MT of Urea and 41.81 lakh
MT NPK/DAP.
PRODUCTION (RS. IN LAKHS)
YEAR UREA NPK/DAP TOTAL
2007-08 39.63 28.84 68.47
2008-09 40.68 31.00 71.68
2009-10 43.24 38.74 81.98
2010-11 44.02 41.81 85.83
100
90 85.83
81.98
80
71.68
70
60
2008-09
50 43.2444.02
40.68 41.81 2009-10
38.74
40 2010-11
31
30
20
10
0
UREA NPK/DAP TOTAL
2010-11 44.02 41.81 85.83

100
90 85.83
81.98
80
71.68
68.74
70
60
NPK/DAP
50 43.24 44.02
40.68 41.81 UREA
37.86 39.63 38.74
40 TOTAL
32.26 31
28.84
30
20
10
0.12
0
2006-07 2007-08 2008-09 2009-10 2010-11

SWOT Analysis of IFFCO:
Strength
 Biggest fertilizer company in Asia

 Large number of cooperative societies.
 Fully modernized plants.
 Effective workforce of over 14,000 people.
 In any case cooperative will purchase fertilizers from IFFCO.
 Biggest producer of DAP and NPK.
Weakness
 Fully dependent on government subsidies.

 Price and distribution are controlled by government.
 Cannot sell fertilizers in their area of choice.
 Has to take government permission on each and every issue which take a lot
of time.
Opportunities
 Fertilizers producton in India is still insufficient and we have to import

fertilizers from other countries. This show the high demand-supply gap for
the product which need to be fulfilled as soon as possible.
 Various areas of industries are still untapped by IFFCO in which it need to
diversify.
 IFFFCO should explore the option of forming JV’s with other companies to
enter country’s market and also to import fertilizers from there.
Threats
 The ever growing private sector which has big players like TATA, having
deep pockets to spend considerable amounts of money on marketing
activities.

OBJECTIVES:
Primary Objective:
 To study the effectiveness of the Company’s distribution and promotional
strategy and to find out the areas of relative strength and weakness.
Secondary Objectives:
 To analyse the marketing strategies used by IFFCO to sell their fertilizers to
various farmers.
 To study the marketing channel followed by IFFCO to sell their products to
the farmers.
 To study various promotional programs organized by IFFCO and their impact
on the farmers.

Research Design:
The research design is descriptive in nature.The research is mainly focused on

IFFCO’s promotional programs, its market analysis, attractiveness of the programs
and its impact on farmers (psychologically and economically). Through this research
we aim to find out which programs and which part of these programs is liked by the
farmers the most. Research extends to find out whether any of these programs
requires restructuring or not (strengths and weakness of programs).
Method of data collection:
Primary Data collection: Interview and Questionnaires (open ended and close ended).
Secondary Data collection: Internet , Journals, Magazines and Past Data.
Sampling Plan:
Sampling Area: District Baghpat (U.P.) – Village adopted by IFCCO

The survey conducted has been limited to the franchisee at Badhot, khekda, Tatiri
Mandi, Surajpur, Mehanwa etc.data was collected b both primary and secondary
sources.Primary data was collected in the form of survey through the markets by
asking some close and open ended questions which helped in analyzing the changing
trends and its effection already existing ones.
Our study is focused towards the co-operative due to the fact that IFFCO co-
operative are good sources of estimating the market and collecting data.
SAMPLING UNIT
The co-operative distributor, member and farmer’s in and
around District Baghpat.
SAMPLING TYPE
Simple random sampling
SAMPLING SIZE
Member - 40
TOOLS AND TECHNIQUES:
Survey chart, Pie chart, Bar chart.

Marketing Strategies at IFFCO:
In broad sense, marketing includes the activities of all those engaged in the
transportation of goods from producer to customer i.e. not only those who buy and
sell directly, warehouse, transport, insure, finance or promote the product, otherwise
have a hand in the process of transfer.
MARKETING POLICY OF IFFCO

Being the largest producer in fertiliser products IFFCO has very vast marketing
chain, which is commended by the marketing division of IFFCO head office. As the
IFFCO cooperative works as nation level and the products are consumed in all the
states of India. IFFCO distributes its fertiliser material through more than 37,5000
cooperative societies. To have an effective coordination with these cooperative
societies and the farmers, IFFCO has a wide marketing network spread throughout
the country. The illustration depicts the field structure of the IFFCO. IFFCO's
Marketing activities are coordinated through five Zonal Offices. Each zonal office
oversees the activities of State Offices which in turn coordinate the various activities
of the Area Offices. Area Offices conduct IFFCO's marketing operations in few
districts through field officers. At present, about 450 field officers undertake
distribution of fertilisers and various other promotional activities. IFFCO
undertakes a large number of these programmes to educate the farmers on latest
facets of modest agricultural practices.IFFCO has divided its marketing chain into
Zonal Marketing Offices and State Marketing Offices. There are five Zonal Offices
of IFFCO in India, which commands all the marketing activities and operations
respected to their concerned states.
MARKETING OF FERTILISERS
 Fertilizers are produced at about 120 locations in the country.
 Fertilizer production is continuous process whereas its consumption is highly
seasonal and confined to only 3-4 months in a year split into two season.
 Distributed to farmers scattered in about 6 lakh villages in the country
through network of wholesalerand retailers.
Marketing Set-up
 The Marketing Division is headed by Director (Marketing) assisted by

Sr.General Manager (Mktg)/ General Manager (Mktg.). In addition,
Executive Director (Transportation) is also looking after the transportation
operations. The Marketing Division has the following departments :
 1. Distribution
 2. Transportation
 3. Port Operation

 4. Marketing Services
 5. Agricultural Services
 6. Training
 7. Publicity
 8. Marketing Accounts
 9. Personnel & Administration
 IFFCO's marketing set-up in the field comprises of 5 Zonal Offices, 20 State
Offices and 62 Area Offices. Each Area Office covers 4-5 districts. In each
area about 4-8 Field Officers will be working. They are posted at district and
taluk level towns. They visit the villages in their area of operation and work
with the farmers in transferring modern agricultural technology. The total
field force as on date is about 475. The total number of personnel in
Marketing Division is around 1642.
ZONE-WISE MARKETING DIVISION
 IFFCO is operating in 29 States & U.T’s

 Total marketing area has been divided into 5 zones. Namely:
 NORTH- PUNJAB, HARYANA, RAJASTHAN, J&K, H.P
 WEST- GUJARAT, M.P, MAHARASHTRA, CHATTISGARH
 NORTH CENTRAL- U.P, UTTARANCHAL, BIHAR & JHARKHAND
 EAST- WEST BENGAL, ASSAM & ORISSA
 SOUTH- A.P, KARNATAKA, TAMIL NADU &KERALA

MARKETING TERRITORIES
MARKETING CENTRAL
OFFICE
North Central North Zone South Zone West Zone East Zone
Zone
(Chandigarh) (Bangalore) (Bhopal) (Kolkata)
(Luck now)
Up, Bihar, Pun, Har, AP,TN, Guj,MP, Assam,

Zarkhand,
J&K, Raj, Kar, Mah, Orissa,WB
Uttaranchal
HP Kerala Chhattisgarh
Marketing Offices
 IFFCO distributes its fertilizer material through more than 38155 cooperative
societies. To have an effective coordination with these cooperative societies
and the farmers, IFFCO has a wide marketing network spread throughout the
country. The illustration depicts the field structure of the IFFCO.
 IFFCO's Marketing activities are coordinated through five Zonal Offices.
Each zonal office oversees the activities of State Offices which in turn
coordinate the various activities of the Area Offices. Area Offices conduct
IFFCO's marketing operations in few districts through field officers.
 At present, about 450 field officers undertake distribution of fertilizers and
various other promotional activities. IFFCO undertakes a large number of
these programmes to educate the farmers on latest facets of modest
agricultural practices.
 IFFCO undertakes distribution of its fertilizer products - Urea, NPK
(10:26:26 and 12:32:16) and DAP, throughout the length and breadth of
India. Being a Cooperative Society, the sales are mostly channelised through
cooperative societies.However, the member cooperatives have no obligation
to buy from IFFCO. At the state level, the Apex Cooperative Marketing
Federation acts as a wholesaler to route IFFCO's fertilizers. In the event the
Apex Cooperative Marketing Federation is not in fertilizer business in any
state of India, direct supplies are made to the cooperative societies.

 In case the cooperative system is either weak or non-existent in any state,
IFFCO's fertilizers are routed through other institutional agencies like Agro-
Industries Corporation of that state. In addition, IFFCO has 158 Farmers
Service Centers (FSC) spread over in eleven states through which fertilizer
sales are undertaken
MARKETING CHANNELS:
1. Every manufacturer needs a link with the customers to sell his products.
2. The set of intermediates forming this important link is called the
marketing/distribution channel.
3. Selecting the right channel is the most important, complex and challenging
task for every business organisation.
Marketing channel in India for fertilizers
Marketing channel in India for fertilizers can broadly be classified into three
categories:
1.Institutional Agencies
2. Private Trade
3. Company owned outlets
 Private trade accounts for 60%

 Institutional agencies including cooperatives account for 35%
 Manufacturers own 5%
As a matter of Policy, IFFCO is channelizing its products through the cooperative
channels.
STATEWISE MARKETING CHANNEL

THRU Gujarat, Madhya Pradesh,
APEX FEDN. Chattisgarh, West Bengal,
Only Tamil Nadu, J & K, H.P. and
Assam
Direct to U.P, Uttaranchal, Bihar,
Societies Jharkhand & Rajasthan
APEX as well as Punjab, Haryana, Maharashtra,

thru direct Orissa, A.P., Kar., & Kerala

CHANNEL-
CHANNEL-WISE DISTRIBUTION OF IFFCO FERTILISERS
IFFCO PLANT
5% 4%
APEX MKT. 29% 62%
FEDERATION
AGRO FARMERS
INDUSTRIES SERVICE
Distt./Block CENTRES
Distt./Block Level
Level Mktg.
Societies Societies
RETAIL
OUTLETS
Village Level Coop
Mktg. Soc. (PACS)
FARMERS
Distribution of fertilizers mainly through the Cooperative System: -
 State level Apex Cooperative Marketing Federation Acts as wholesaler

 Direct supplies to Societies in some States
 IFFCO-NCDC Cooperative Societies
 Small quantities to institutional agencies like Agro Industries Corporation et
 158 IFFCO Farmers Service Centers
Current Marketing Structure

IFFCO’s marketing setup at present comprises of 5 zonal offices, 17 State
Offices and 64 Area Offices. East area offices covers 4-5 districts. Each area has 8-
10 field officers attached to it. They are posted at district and taluk-level towns. At
present, there are about 500 field officers. The total number of personnel in
Marketing Division has come down to around 1501 from the level of 1850 in 1991-
92 .
IFFCO has taken up promotional and extension programs more vigorously after
decontrol of phosphatic and potassic fertilizers with a view to promoting balancing
and efficient use of fertilizers and also to increase soil productivity. IFFCO is also
promoting environment-friendly sustainable agriculture in various state through
IPNS programs in collaboration with FAO.
Promotional And Publicity Activities
Fertilizer promotion is one of the important in fertilizer marketing. The objective is

to create awareness about fertilizers and provide technical information on improved
agriculture practices and fertilizers use so as to increase productivity and fertilizer
use efficiency. Mass media approach is followed in fertilizer promotion.

 AIR, Doordarshan, and Press
These are effective and powerful medium of communication and the message is
conveyed even in remote and inaccessible areas in a short time. IFFCO has been
taking the advantage of this media for promotion of fertilizer use. IFFCO’s field
staffs often delivers talks over air and doordarshan. Popular articles on fertilizer use
and crop production are also published in local and national level newspapers. From
time to time advertisements are released to newspapers and journals.
 Fairs and Exhibitions

Fairs and exhibitions are organized at local and national level to appraise the farmers
about achievements in agriculture development through audio-visual aids. This
medium has a mass appeal. IFFCO avails of such opportunities to participate in such
programs.
 Technical Literature
Publication and updating of technical literature from time to time in regional
language on crop production practices and fertilizer use is very important. This
include crop folders, leaflets, pamphlets etc. which give brief account on crop
production technology. IFFCO has brought out five volumes of its publication
entitled ‘soil fertility and fertilizer use’. This is a comprehensive publication
covering wide range of topics on sustainable agricultural production. All the 5
volumes have become very popular nationally and internationally.
 Hoardings and Roadside Sign Boards

IFFCO is effectively making use of state and national highways and also market
places for promoting the concept of balanced fertilizer use by erecting hoardings and
roadside sign boards, wall painting etc. the front walls of village cooperative
societies and panchayt bhavans have been painted with slogans promoting balanced
and efficient fertilizer use.
 Crop Films
Appreciating the importance of electronic media and popularization of video
presentations, IFFCO has developed 8 crop film depicting the package of practices
for the benefits of the farmers. These films are 15 minutes duration each and cover
important crops like rice, wheat, maize, pearlmillet, cotton, sugarcane, soyabean and
mustard seed. These films are regularly screened through two mobile testing vans
and also in field programs.
IFFCO Programmes – An Overview
In the last three decades (1975-76 to 2004-05) IFFCO has organised 68547, farmers
meeting, 19492 field days, 25196 sales point personnel training + district cooperative
conferences, 3765 crop seminars, 29529 two plot demonstrations, distributed 481684
CIP kits, 14245 soil test campaigns (collected 14.62 lakh samples) and 585 training
and visit programmes. Besides these activities, women training, agricultural (weed
control, seed treatment etc.)/social (tree plantations/veterinary and medical check up,

etc.) campaigns were also organised. IFFCO has undertaken location specific 51
special projects viz. dry land farming/area development, land reclamation, tribal area
development, lab to land programme and hi tech projects on agricultural
development. IFFCO has also worked in more than 3000 villages under its Village
Adoption Programme for their development with thrust on agricultural related
aspects. IFFCO has also undertaken in a limited way seed multiplication programme
(59003 ha) on its own and also in collaboration with State Seeds Corporation
to augment supply of seeds to the farmers. IFFCO has conducted demonstrations /
trials on farmers fields on its own and also in collaboration with national /
international organisations as under:
1. Urea supergranules – Conducted 389 demonstrations on rice in 11 states during

1981-82 to 1984-85 and also in collaboration with ICAR/State Agricultural
Universities (14, 15)
2. FAO–IFFCO sulphur research network programme – Conducted 96 trials on 13

crops in 3 states during 1987-88 to 1989- 90 . Network programme was reviewed by
Biswas and Tewatia .
3. PPIC (India programme) – IFFCO collaborative programme on maximum yield

research in 3 states during 1990-91 and 1991-92 .
4. Soil test based trials – Conducted 511 trials on 15 crops in 108 villages in 92
districts covering 14 states during 1992- 93 to 1994-95.
5. Integrated plant nutrition system

a. Conducted demonstrations (1647 entries) on 24 crops covering 55 locations
involving 146 farmers of 14 states.
b. FAO – IFFCO collaboration on integrated plant nutrition system – A technical
cooperation programme project – TCP/IND/6611 “Development of an integrated
plant nutrition system methodology” (FAO –IFFCO 1997).
c. Organised a national workshop on IPNS, Bhubaneshwar, March 10-12, 1997 (10).
d. Organised an international seminar on IPNS for sustainable development, New
Delhi, November 25-27, 1997.
6. IMPHOS–IFFCO extension project – Conducted 265 demonstrations on 14

crops in 44 villages in 30 districts of 8 states during 2000-01 to 2003-04.
7. IARI–IFFCO collaborative project on transfer of technology – Conducted 1280

demonstrations on cereals, pulses, oilseeds, fodder, vegetables, flowers in 7 states
during 2000-01 to 2002-03 (IARI, 2005).
8. Fortification of NPK 10:26:26 with 0.3% boron - Conducted 280 demonstrations

on 25 crops in 58 districts in 6 states during 2002-03 (Rabi) and 2003- 04. Farmers
feedback (366 respondents) was obtained from 4 states.

FERTILISER PROMOTION PROGRAMMES:

Field Programmes
The gap between the technologies developed under On Station situations and its
implementation under On Farm situations need to be minimised. The technology
could be demonstrated on the farmer’s field through demonstration/trials which is the
most effective method of convincing the farmers on the usefulness of balanced
fertilisation in crops. Balanced fertiliser use was promoted initially by giving
incentive to cooperatives @ Rs.20
per mt. This was supported by undertaking field demonstrations. To support the
demonstration programme other field activities like field day, farmers meetings,
campaigns, use of electronic and print media, training programmes for sale point
personnel etc. should be
effectively utilised/organised to disseminate the message of balanced fertilisation.
Integration of fertiliser supplies and field programmes together with involvement of
cooperatives is necessary for increasing productivity of crops. The programmes
organised during 2002-03 to 2004-05. IFFCO has established two static soil testing
laboratories at CORDET, Phulpur and Kalol and pressed into service five mobile
testing vans and analysed 3.03 lakh soil samples . CORDET, Phulpur and Kalol
together have analysed 9.9 lakh soil samples during 1980-81 to 2004-05 whereas
mobile soil testing vans have analysed 1.88 lakhs soil samples during 1988-89 to
2004-05. Data from soil testing over a period of time reveal that status of major
nutrients in soil is gradually declining from high to medium and medium to low
status. Mobile soil testing vans have analysed soil samples in the villages itself and
results were explained to farmers the same day. They were motivated to apply
nutrients dose based on soil test values. A limited number of soil samples for
micronutrients were also analysed at CORDET, Kalol and Phulpur. The cooperatives
are involved in transfer of farm-technologies as they have direct access to their
member farmers. IFFCO has provided financial assistance to the cooperatives for the
construction of 47 storage cum community centres during the period 2002-03 to
2004-05 These centres are used as a venue for holding meetings of farming
community; besides storage of fertilisers. As a part of corporate social responsibility,
social and community development programmes are organised for providing relief to
the farmers and cooperatives based on specific needs viz. drinking water facilities by
installing hand pumps, tube-wells and storage tanks, eye camps, assistance to
school/school children, worked at the time of natural calamities like earthquake,
flood and drought.

Data Analysis and Interpretation:
Ques1.What is the satisfaction level by the programs implied

by IFFCO?
Highly satisfied 59%
Somewhat Satisfied 25%
Not Satisfied 16%
Satisfaction level by the various programs

implied by IFFCO.
16%
Highly Satisfied
25% Somewhat Satisfied

59%
Not satisfied

INTERPRETATION:

Ques2. What is the quality perception of

IFFCO products?
Best 78%
Better than competing brands 13%
At par with competing brands 9%
Worse than competing brands 0%
Worst 0%
Quality perception of IFFCO products.

0%
9%
13% Best
Better than competing brands
At par with competing brands
Worse than competing brands
Worst
78%


Ques3. What is the price perception of IFFCO

products among farmers?
Lowest 41%
Lower than competing brands 31%
At par than competing brands 16%
Higher than competing brands 12%
Highest 0%
Price perception of IFFCO products among

farmers.
12%
Lowest
16% 41% Lower than competing brands
At par than competing brands
Higher than competing brands
Highest
31%


Ques4. Are IFFCO fertilizers effective for the farmers?
Highly effective 85%
Effective to a certain extent 9%
Less effective 6%
Not effective 0%
Effectiveness of IFFCO fertilizers.
0%
6%
9%
Highly effective
Effective to a certain extent
Little effective
85% Not effective


Ques5.Does the IFFCO products used with ease?
Best 28%
Better than 47%

competing brands
At par with 16%

competing brands
Worse than 9%
competing brands
Worst 0%
Ease of use of IFFCO products.
9%
28% Best
16%
Better than competing brands
Worst
47%


Ques6. Does they effect on the skin/health of

the farmers?
No adverse 41%
effect
Has less 19%

adverse
effect
Significant 12%
negative
effect
Don’t know 28%
Effect on the skin/health of the farmers.
41%
No adverse effect
Has little adverse effect
19% Significant negative effect
1.2 Don’t know

12%


Ques7. Are IFFCO products easily available?
Best 6%
Better than 9%
competing brands
At par with
competing brands 19%
Worse than
competing brands 25%
Worst 41%
Availability of IFFCO products.
0 6%
Best
9%
25% Better than competing brands
Worst
19%


Ques8. How often is IFFCO able to solve farmers

problems.
Never 06%
Sometimes 16%
Mostly 50%
Always 28%
How often is IFFCO able to solve farmers

problems
6%
16%
Never
Sometimes
50%
Mostly
1.2 Always


Ques9.How often are the benefits of a successful program discussed by

farmers.
Always 09%
Mostly 63%
Sometimes 25%
Never 03%
Ques9.How often are the benefits of a

successful program discussed by farmers.
9%
63% Always
Mostly
1.2 Sometimes
Never
25%


Chapter8.
Research Findings:


Conclusion:

Recommendation:
1. Maintain the quality standards: IFFCO already has a great quality perception
in the mind of farmers. Company should never deter from quality standards
and should leverage on this quality perception.
2. Restructure the programs: None of the programs should not take more than 2
hours and should be conducted during afternoon.
3. IFFCO should also conduct other non farming programs (social development
programs) on a regular basics and should communicate the benefits of such
programmes(may be stating and depicting examples)
4. Effort should be to include as many farm owners as possible: They need to
quickly device mechanisms whereby they personally invite these land owners
to attend these programmes.
5. Company should try to improve the distribution of its products thereby
ensuring high availability of IFFCO fertilizers, as in the case of availability,
the farmers end up purchasing other company’s fertilizers.
6. The company should think on the financing schemes so that poor farmers
should get IFFCO products at even those times when they do not have
sufficient cash to buy its products and hence for the better production of their
crops.

LIMITATION OF THE STUDY:
The study could suffer from the following limitation:

1. Project is based upon data collected from Baghpat therefore result may not be
generalized for whole of U.P. & India.
2. Correctness of survey is subjected to the correctness of the respondents.
3. This project was to be completed within a short span of time.
4. Study is based on a sample survey therefore it has some inherent shortcoming of
a sample study.
5. Co-operative, member and farmer had some personal reasons for not responding
to some of the question

Annexure
Questionnaires:
NAME:
AGE:
VILLAGE:
Qualification: Illiterate/ Upto 10 ͭ ͪ/ Upto 12 ͭ ͪ/Graduate/ Postgraduate
Are you the owner of the farm, or you just work on it?
For how many years have you been doing farming?
Do you use fertilizers?
1. Are IFFCO products easily available?
a) Best
b) Better than competing brand
c) At par with competing brands
d) Worst
2. What is the quality perception of IFFCO products?
a) Best
d) Worst
3. Does the IFFCO products used with ease?
a) Best
d) Worst

4. Does they effect on the skin/health of the farmers?
a) No adverse effect
b) Has less adverse effect
c) Significant negative effect
d) Don’t know
5. Are IFFCO fertilizers effective for the farmers?
a) Highly effective
b) Effective to a certain extent
c) Less effective
d) Not effective
6. What is the price perception of IFFCO products among farmers?
a) Lowest
b) Lower than competing brand
c) At par than competing brands
d) Highest
7. What is the satisfaction level by the programs implied by IFFCO?
a) Highly Satisfied
b) Somewhat satisfied
c) Not satisfied
8. Do you also use other chemicals for pest protection?
a) Yes
b) No

9. Which companies fertilizers do you use?
a) NFL
b) PPL
c) TATACHEMICALS
d) OSWAL
e)KRIBHCO
f)IFFCO
10. How do you get to know about IFFCO:
a) Electronic /print media,
b) Satellite channel
c) Fairs and Exhibitions
d) Leaflets / Booklets
e) Hoardings or banners
f) Advertisements painted on walls
11. What are the other services do you expect from IFFCO apart from what you
already get?
12. Any other facilities that competitors provide and IFFCO doesn’t.

Bibliography:
 Text Books Reffered:

 Beri G.C. , Marketing Research (Second Edition) Part-4
 Chabbra T.N., Marketing Management: Published by: Dhanpat Rai &
Co.
 Horper N. Boyd, (2004) , Marketing Research (7th edition) , Richard
D. Irwin
 Journals:
 Annual Reports of IFFCO Ltd. Of 2010-11
 Marketing strategies of IFFCO
 Websites:
 www.iffco.nic.in
 www.fert.nic

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Marketing of Fertilizers by IFFCO

I take this opportunity to express my gratitude and deep regards to my guide Mr

I’m extremely thankful to Mrs.RITU BAJAJ (Faculty guide) BPIT, ROHINI,

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IFFCO is one of the largest chemical fertilizer producers in the

The study was undertaken to understand that how implementation of marketing

Implementation of marketing strategy by IFFCO not only means maintaining a good

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Chapter2. Industry Profile 6.

2.1. Fertilizer as Industry

Chapter3. Company Profile 13.

3.1. IFFCO at a glance

Chapter4. Objectives of Study 23.

Chapter5. Research methodology 24.

Chapter6. Marketing strategies in IFFCO 25.

Chapter7. Data Analysis and Interpretation 32.

Chapter8. Research Findings 50.

Chapter9. Conclusion 52.

Chapter10.Recommendation and Suggestions 53.

Chapter11.Limitations of the study 54.

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INTRODUCTION OF MARKETING STRATEGIES:

A Marketing strategy is most effective when it is an integral component of firm

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Fertilizers typically provide, in varying proportions:

 six macronutrients: nitrogen (N), phosphorus (P), potassium (K), calcium

There are two types of fertilizers commonly available in market:

1. Inorganic fertilizer (synthetic fertilizer)

 Fertilizers are broadly divided into organic fertilizers (composed of enriched

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Problems with inorganic fertilizer

Benefits of organic fertilizer

Disadvantages of organic fertilizers

 Organic fertilizers may contain pathogens and other disease causing

Comparison with inorganic fertilizer

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 Controlled release fertilizers (CRFs) had a relatively constant rate of release

Negative environmental effects:

The nitrogen-rich compounds found in fertilizer runoff is the primary cause of a

2. Blue Baby Syndrome

High application rates of inorganic nitrogen fertilizers in order to maximize crop

Nitrogen-containing inorganic and organic fertilizers can cause soil acidification

4. Persistent organic pollutants

Toxic persistent organic pollutants ("POPs"), such as Dioxins, polychlorinated

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5. Heavy metal accumulation

The concentration of up to 100 mg/kg of cadmium in phosphate minerals (for

6. Radioactive element accumulation

Uranium is another example of a contaminant often found in phosphate fertilizers (at

Storage and application of some nitrogen fertilizers in some weather or soil

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 Increased pest fitness

Growth of Indian Fertilizer Industry

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In order to withstand competition IFFCO is providing competitive sale terms to the

The IFFCO Group is a family of following group:

IFFCO KISAN SEWA TRUST

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IFFCO EXCHANGE/COLLATERAL MANAGEMENT

IFFCO KISAN SANCHAR LIMITED (IKSL)

IFFCO-TOKIO GENERAL INSURANCE COMPANY (ITGI)

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