Summer internship project

On
‘A study on Marketing Channel of an Eco-Friendly Venture-
Farm Se ’

Submitted to
Institute code:768

Under guidance of college guide

DR.Vaidehi Shukla
In partial Fulfillment for the award of the degree of Master of Business
Administration (MBA)

Offered by:

Submitted by:
Nachiket soni (052)
MBA (semester - 2)
 DECLARATION

I hereby declare that the Summer Internship Project Report entitled “ A

Study on Marketing Channel of an Eco-friendly” in FARM SE is a result of
my own work and my indebtedness to other work publication, references, if
any, any have been duly acknowledged. If I am found guilty of copying from
any other report or published information and showing as my original work, or
extending plagiarism limit, I understand that I shall be liable and punishable
by the university, which may include “Fail” in examination or any other
punishment that university may decide.

NAME ENROLLMENT SIGNATURE

Nachiket soni 052
 PREFACE

Pedagogy can build power of theoretical knowledge but to win in the

competitive world one must be practical. As one philosopher has rightly said
that “One can learn through one’s expert once”, hold true here. Best is no
longer good enough. Today everyone is constantly striving to achieve
excellence. That applies to us Masters of Business Administration (MBA)
students also. In MBA course, practical studies are very important. Case
studies, industrial visits, preparation of various reports and presentations
consist of practical studies which give real life exposures to management
students. Project report is one of the opportunities provided by the Gujarat
Technical University as a part of MBA curriculum and in fulfillment of it
we’ve selected topic “A Study on Marketing Channel of an Eco Friendly
Venture” in Farm Se.
 ACKNOWLEDGEMENTS

It is a great pleasure for me to express gratitude to the people who directly or

indirectly contributed to my project. My humbled thanks to Mr Yash Mehta (CEO) of
farms, who consented to be my project adviser. He gives me constant support and
help during the project.

A special thanks to my faculty guide, Ms. Vaidhehi Shukla for being the mentor of
this project and helped me enhance my knowledge in the field of marketing sector.
Institute Certificate
Company / Organization Certificate
Plagiarism Report
 TABLE OF CONTENT

S.R NO CONTENT PAGE NO

1 INTRODUCTION 09

2 REVIEW OF LITERATURE 31

3 Research Methodology 36

4 Data analysis and Interpretation 39

5 Findings 57

6 Further Learning 59

7 Conclusion 60

Bibliography & References 62

Annexure-I 63
 CHAPTER-1
Introduction of topic
1.1 Background of the study

Organic food is food produced using methods that meet the standards of organic
farming. Standards vary worldwide; however, organic farming in general has
practices that aim to stimulate the cycle of resources, promote ecological balance
and preserve biodiversity. Organizations that regulate organic products can
choose to limit the use of certain pesticides and fertilizers in agriculture. In
general, organic foods are also usually not processed with radiation, industrial
solvents or synthetic food additives.

Organic farming is particularly suitable for a country like India with a huge
population of small farmers who still use traditional farming methods with little
agricultural input. It is estimated that 65% of the built-up area of ​ ​ the country
is standard organic, because the small farmers have no choice but to farm without
chemical fertilizers and pesticides, because they cannot afford it. This standard
status combined with the inherent advantages of India, such as the diverse
agro-climatic regions, local subsistence agro systems, a significant number of
progressive farmers and the easy availability of cheap manpower, translate into
the potential to produce a huge basket of products to grow organically.

India, a country with a large number of small farmers who still use traditional
methods and practice agriculture with little agricultural input. NGOs promoting
organic farming and other organizations support farmers in these aspects. In India
an organic movement is now emerging at various levels (producer groups,
trainers and advisors, certification bodies and processors and traders). The
dissemination of information on the opportunities and challenges for Indian
organic products in the domestic and international market is therefore
fundamental to enable continuation.
Organic food production is a self-regulated industry with government oversight I
some countries, distinct from private gardening. Currently, the European Union,
the United States, Canada, Japan, and many other countries require producers to
obtain special certification based on government defined standards in order to
market food as organic within their borders. In the context of these regulations,
foods marketed as organic are produced in a way that complies with organic
standards set by national governments and international organic industry trade
organizations.

1.1.2 AN OVERVIEW OF CURRENT ORGANIC FOOD

MARKET IN INDIA

According to the Indian Competence Center for Organic Agriculture, the world
market for organically produced food is $ 26 billion and is estimated at $ 102
billion by 2020. As part of the tenth five-year plan (2002-07), the government set
aside 100 crore (Rs 1 billion) to promote sustainable agriculture in the country,
but the main components of this initiative have benefited exports, thanks to the
adoption of national organic standards under NPOP (National Organic
Production Program), which introduced a certification system for products, and
the establishment of APEDA (Agricultural and Processed Food Export
Development Authority) as a hub to promote export opportunities.

Organic farming is an ancient concept in India in terms of the extensive farming

that is carried out in the country. The organic food market is worth $ 129.3
million and has tremendous growth potential in the future.
Major products produced in India by organic farming

Type of Product Products

Commodity Tea, Coffee, Rice, Wheat
Spices Cardamom, Black pepper,
White pepper, Ginger,
Turmeric, Vanilla, Tamarind,
Clove, Cinnamon, Nutmeg,
Mace, Chili
 Pulses Red gram, Black gram
Fruits Mango, Banana, Pineapple
Passion fruit, Sugarcane,
Orange, Cashew nut,
Walnut
Vegetables Okra, Brinjal, Garlic, Onion,
Tomato, Potato
Oil seeds Mustard, Sesame, Castor,
Sunflower
Others Cotton, Herbal extracts

1.1.3 Organic Food Consumption in India is on the Rise

Some people believe that organic food is just a "concept" popular in developed
countries. They think that when it comes to organic food, India only exports
organic food and very little is consumed. However, this is not true.

While 50% of India's organic food production is export-oriented, many are

looking for organic food for domestic consumption.

The organic agricultural export market is one of the main drivers of organic
farming in India. India exports 31 organic products. It is estimated that more than
85% of the total organic production is exported, with the exception of wild herbs
from UP and MP. India is best known as an organic tea exporter and also has
great export potential for many other products. Other organic products for which
India has a niche market are herbs and fruit. There is also a good response for
organic rice, vegetables, coffee, cashew, oilseeds, wheat and legumes. Of the
fruit crops, bananas, mangoes and oranges are the most preferred organic
products.
 India's organic exports include tea, honey, cashew, cotton, processed fruit, coffee,
basmati rice, sesame, spices, walnuts, legumes, and wheat. Important organic
products that are important for export are fruit and vegetables, sesame, basmati
rice, pulp, fruit juices, herbs, cashew, tea, coffee, cotton and wheat. India has
manufacturing advantages with most of these products. The domestic market is
still emerging, but it has enormous growth potential. Currently, the domestic
market for organic products is estimated at 1,200 tons and there are about 2-3
million potential customers for organic agricultural products and growing.

1.2 concept of marketing channel

Definition of 'marketing channel' is based on a person's perspective - that of a

consumer versus that of a manufacturer. From a marketing manager's perspective,
the marketing channel is viewed and defined as: "the external cont-factual
organization that manages management to achieve its distribution objectives."

Channel Marketing channel is a system that distributes the goods from the producer
to the consumers by passing it through multiple levels known as intermediaries. It is
also known as distribution channels. Each product is different from each other, as
are their distribution channels.

A marketing channel is the people, organizations and activities required to

transfer ownership of goods from the production point to the consumption point.
This is how products reach the end user, the consumer; and is also known as a
distribution channel. A marketing channel is a useful management tool and is
crucial for creating an effective and well-planned marketing strategy.
Types of Marketing Channel

 Producer → Customer (Zero-level Channel):-

The producer sells the goods or provides the service directly to the consumer
without the intervention of an intermediary, such as an intermediary, a wholesaler,
a retailer, an agent or a reseller. The consumer goes directly to the producer to
buy the product without going through another channel. This type of marketing is
most beneficial to farmers who can determine the prices of their products without
going through the Canadian Federation of Agriculture. Typically, goods
consumed by a smaller market segment affect producers, and therefore goods
produced on behalf of some consumers are taken into account. Normally, goods
and services from this channel are not used by large market segments. In addition,
the price of the goods can be subject to strong fluctuations. For example, high
demand dictates a price increase.

In addition, this particular channel has three main modes of direct sales, including:
peddling, mail-order sales, and trading through manufacturer-owned stores.
Venten is an outdated version of the trade between two parties and shipments are
often sold in small quantities by sellers traveling to different places. For example,
a sales associate sells New Wave cosmetics to housewives by using a method of
peddling. Mail order sales are usually used to sell catalogs, books, etc. except
industrial and bulky goods. For example, a company sells collectibles by mail
order. Also, this sales method is normally made without eye contact.

In the latter method (stores under own management), the manufacturer is

surrounded by the stores and supplies goods directly to his stores. For example,
Zinger sells its sewing machines through its own stores. Due to the distance of
goods and products between producer and seller, it is an advantage to be an
effective distribution channel of its kind and these advantages are; producers pay
close attention to customers and are aware of their thoughts and ideas shared with
them, there are no middlemen who could significantly reduce a company's profit,
which would result in significant loss and shorten delivery time because no
obstacles such as intermediary, etc. Despite these clear advantages, direct sales
have not become a powerful channel. It is estimated that even less than 3 percent
of total consumer sales are made through this channel.

On the other hand, technological innovations, the help of the Internet and handy
smart phones are now changing the way commerce works significantly. The
increase in internet direct channels means that internet companies can produce
services and goods with consumers and trade directly with them. It can be
distributed directly over the Internet, for example gambling or software services
such as antivirus programs as such.

 Producer → Retailer → Consumer (One-level Channel)

Retailers, such as Walmart and Target, purchase the product from the
manufacturer and sell it directly to the consumer. This channel works best for
manufacturers who produce retail items such as clothing, shoes, furniture, dishes,
and toys. Since consumers need more time with these items before deciding to
buy them, it is in the manufacturer's interest to sell them to another user before
they reach the consumer. It is also a good strategy to use a different dealer to get
the product to the end user if the producer needs to get to market faster using an
established network that already has brand loyalty. In accordance with the shape
of the retail property, operators may be an independent company, owned by
another owner or participate in the retail network. Intermediaries (retail service)
are essential and useful because of their professionalism, the ability to offer
products to the target market, leveraging their industry connections, experience,
the benefits of specialization and the high quality of work.

The fact suggests that the production produces large goods and products, but
limited in the range and merchandise. However, consumers are looking for a
wider range in smaller quantities. Therefore, it is very important to distribute
goods from different manufacturers to meet the needs and wants of the
 consumer. When creating a store, the efforts that buyers need to make a
purchase are taken into account. For example, shops that sell everyday consumer
goods are conveniently located in relation to local residents. The speed and
convenience of service to customers' interests are a high priority and fit their
schedule. An equally important part of retail is the retail functions that play a
critical role and include them; research of products, implementation of storage,
determination of pricing policy, arrangements of products and their selection for
the creation of different trading ranges, exploration of the state of the market.

This channel is considered useful if; the volume of presales and after-sales is
insignificant, the number of market segments is not huge, the range of goods and
products is wide. Ultimately, the interest of intermediaries in distribution
companies is vital, as they help consumers obtain a certain good from a certain
brand without taking unnecessary steps. Mediators therefore play an important
role in establishing an agreement between supply and demand.

Producer → Wholesaler → Retailer → Customer (Two-level Channel)

Wholesalers, such as Costco, buy the products from the manufacturer and sell
them to the consumer. In this channel, consumers can buy bulk products directly
from the wholesaler. By buying the items in bulk from the wholesaler, the prices
of the product are reduced. The reason for this is that the wholesaler removes
additional costs, such as service charges or sales costs, that customers typically
pay when purchasing in retail; making the price much cheaper for the consumer.
However, the wholesaler does not always sell directly to the consumer.
Sometimes the wholesaler goes through a store before the product comes into the
hands of the consumer.
Every dealer (the manufacturer, wholesaler and retailer) will be looking for a
decent profit margin on the product. So every time the buyer buys the
merchandise from a different source, the price of the product has to go up to
maximize the profit each person receives. This increases the price of the product
for the end user. Due to the simultaneous and joint work of wholesaler and
retailer, a transaction can only be beneficial if; a market is situated in a larger
area, the supply of goods and products takes place in small but urgent shipments
(products), it can be cost effective and profitable by supplying larger shipments
(products) to fewer customers.

Industrial factories are looking for mass production benefits to produce and sell
large batches (batches), while retailers prefer smaller batches. This method for
factories can lead to instant sales, high efficiency and cost-effectiveness.
Therefore, especially in these situations, the wholesaler now plays a role in
reconciling these conflicting ambitions. The wholesaler buys large lots and then
divides them to a minimum after they have been resold to further retailers. The
work of the wholesaler facilitates and makes it less burdensome for the transport
of production. Hence, the use of this channel (the wholesaler) reduces the
quantity of goods delivered. For example, if five producers deliver goods directly
to a hundred different stores, they must have 500 deliveries (5 times 100).
However, if those five factories supply the same wholesaler and the wholesaler at
this stage to 100 different retailers, the total number of deliveries will decrease to
105 (5 plus 100).

Another important part to take into account in wholesale is storage. Storage of

goods is one of the characteristic aspects of the work of a wholesaler. The
wholesaler regulates the supply of goods and has synchronized the production
and consumption of material goods.

In addition, as a wholesaler, he also assumes the financial obligations associated

with the immobilization of funds invested in the creation of commodity shares.
While the transition chain suggests that the wholesaler communicates and deals
directly with a manufacturer, it should not be unambiguous. A distributor's
contribution is highly recognized and plays a critical role in distributing flows of
goods before they reach wholesalers, retailers, and so on. A distributor is the
manufacturer's representative and performs goods distribution tasks on behalf of
 the manufacturer producer to wholesaler or retailer. A distributor is always in the
seek out for orders from different clients and possesses activeness in promoting
producer's products and services. The main tasks of a distributor are; study the
market and the creation of databases of consumers, advertising of goods, an
organization of a service for the delivery of goods, stocking up the inventory
levels, the creation of a stable sales network, which includes dealers and other
intermediaries, depending on the market situation. Distributors scarcely sell a
manufacturing goods directly to customers.

 Producer → Agent/Broker → Wholesaler or Retailer → Customer

(Three-level Channel)

More than one intermediary is involved in this distribution channel before the
product reaches the consumer. Known as the agent, this intermediary assists in the
negotiation between the manufacturer and the seller. Agents play a role when
producers have to bring their product to the market as soon as possible. This usually
happens when the item is perishable and needs to hit the market fresh before it
starts to rot.

Sometimes the agent goes directly to the retailer with the goods, or takes an
alternative route through the wholesaler that goes to a retailer and eventually to the
consumer. Cooperation normally takes place when parties in particular meet the last
channel of the marketing distribution chain. Because producers, agents, retailers /
wholesalers and consumers of this channel help each other and benefit from each
other.

Their collaboration generates greater output in terms of further profitability,

through discernment and exploring newer sales markets and building a better
business relationship. Distribution channel participants need to have knowledge and
experience not only to effectively maintain target segments, but also to maintain the
manufacturer's competitive advantage. For example, an agent who can vary prices
for certain products can negotiate and / or lower prices. This will help him maintain
the comparative advantage, keep up with the competition and remain in demand on
the market. A broker mainly works to bring the seller and the buyer and to assist in
the negotiation process. An intermediary like Broker usually depends on the
commission of a product or production sold in terms of goods. In addition, a broker
is thus involved in one-off transactions and cannot be an effective distribution
channel. However, he can maintain a competitive advantage over other companies
in the form of a particular brand if he has acquired the right to exclusive
representation from the manufacturer and can take more advantage of it. He acts on
behalf of the seller (producer / manufacturer) and has no right to change product
prices. In addition, after forming a distribution channel, it is important to remember
that the operation and use of intermediaries in a company (not only wholesalers,
retailers but also transport logistics) will extend the distribution chain. A company
will then have to consider which channel is more cost effective and productive in
terms of time use, efficiency, pricing policy and where it is with competitors; eg
general feedback, higher rating, higher customer demand etc. The best use and help
of intermediaries can be applied to start-ups and perhaps an established company

1.3 FLOWS OF MARKETING CHANNEL IN FARM - SE

1. Product flow
2. Negotiation flow
3. Ownership flow
4. Information flow
5. Promotion flow

1. Product flow is the actual physical movement of the product from the
manufacturer through all of the parties to the consumer.

2. . Negotiation flow represents the interplay of the buying and selling functions
associated with the transfer of title or rights of ownership. Negotiation is a
two-way process involving mutual exchange between buyer and seller.

3. Ownership flow is the movement of the title of the product from one stage in
the process to another.

4. Information flow involves two directions – from the manufacturer to the

consumer and from the consumer to the manufacturer. This flow includes
transportation as information deemed necessary for the actual delivery of the
product is communicated to the transportation agents.

5. Promotion flow refers to the flow of persuasive communication in the form of

advertising, personal selling, sales promotion and publicity. This flow adds the
advertising agency as an element of promotion.

COMPANY BACKGROUDND

FARM- SE

A sour & sweet journey started from 2 childhood friends who are CA's by
profession but the duo got interested in organic produce due to their touch with
farms in their own town.Farm . is kind-hearted business started by two childhood
friends who also happen to CA’s aiming to always act and react with an
 understanding of our consumers needs, to offer meaningful alternatives and
ultimately, improves lives. Coming from Rajasthan & after working in big
corporate for some time in Mumbai, the duo got interested in organic farming due
to their touch with farms in their own town. Leaving their family business, these
childhood friends wanted to make a career in something that gives them real
happiness at the end of day. Here they are; leaving their family businesses &
corporate jobs to bring organic produce from trusted framers to your families. In
the free time Raj loves to socialize and party while Yash loves to play guitar and
travel.

 Vision – To delivery best quality organic products to all. Everything,

everywhere.

 Mission – to build habit of organic product and

Also spread awareness of organic life style

Source :- Instagram.com/Farm Se

August 2018 – Field visits & ground research on organic market. Visited multiple
exhibitions and understood basics of organic while staying with farmers.
 December 2018 – Launched whats app ordering. On weekly delivery, only fruits
and vegetables. Started with 10 deliveries per week and grown up to 70 deliveries
per week.

February 2019 – Started twice a week delivery and added 10 grocery products in
the portfolio.

March 2019 – launched online application and website. Did a record delivery of
selling 700 dozens mangoes.

July 2019 – Launched Farm Se on wheels at two location.

August 2019 – Decided to launch first offline store in Ahmadabad.

October 2019 – Launched store.

April 2020 – Farm Se organic merge with Greenobazaar.

 Source:- instagram.com/farmse

FARMSE ORGANIC STORE. - Sears Tower, Panchavati Society, Opp. Just

Dial Office,
Gulbai Tekra, Ahmadabad, Gujarat, India - 380009.
Phone Number – +91 9462066111
Mail id – info@farmseindia.com
Facebook & Instagram - @farmseindia
Website – www.greenobazaar.com

Product bucket and their origin

Fruits & Vegetables came from Nasik, Pune, Mumbai, Bhavnagar, Nasik and
Anand.
Healthy traits & Mouth freshener - It’s their own product, hand-made.
Spoonful is perfect for increasing immunity.

Dry Fruits came from Pulwama Kashmir. No sugar cotted.

Sweeteners - Sangli Maharstra. Multiple uses.

Honey is from Dang forest, Gujarat.

Natural sharbats is from Bikaner Rajasthan.

Oils – Cold pressed oils, they have anti-inflammatory and healing properties
and healthy From Rajasthan.

Ghee – Hand churned, A2 desi gir cow ghee.

 Spices are from South India.

 Product Bucket
 Range of non plastic games supporting Indian artisans and comlove. Wooden toys
for good health of children.

 Products collected from Pay By Waste are recycled in many varieties products.
Also have calendars and pencils in which different food seeds are there, to grow at
home. Edible spoon made of wheat flour and millets.

 Corporate gifting, Event Gifting, etc. Gift a healthy and radiant present.
 Holi colors has no harmful chemicals, in an Eco-friendly way. Smooth and silky -
Biodegradable.

 Alternate of flower bouquet. Kokedema are live plants required low maintainence
& unlike bouquets they last for long time.

 In store special section for Women Entrepreneur. Women who made different
products at home without adding any harmful chemicals. Like soap, shampoo bars,
lotion, scrub, etc.

Source:-instgram.com/farmse
 BYOC
`
What is BYOC :- It means Bring your own container like the traditional grocery
shops & do the shopping. They feel this is the future of sustainability & this step
is necessary to curb use of plastic that’s harming us in every way. It has twin
benefits: Saving the environment as well as packing cost and No need to be
bound by quantity of purchase.
 PAY BY WASTE

A unique store, 1ST to accept waste as a payment!

 INCPTION AND VERIFICATION

Since authenticity is the biggest question for all around, they bet that no one keeps
as many check as they do. They say just don’t rely only on certificates. They strictly
visit all the farms that deal with & keep a regular monitoring (soil sampling &
random tests) to check only what is grown at the organic farm only. Only people
from supply chain are involved so that produce reaches at earliest to people in short
time. The farmers are not all certified organic as many of them are marginal farmers
from tribal areas or with small lands that can’t afford certification but all these re
strictly checked & monitored to ensure utmost care of produce that reaches. They
do event called farm , to take people on the farms from where they produce.
 Farm PE
A completely new business model as well as marketing tool. Where people
(specially kids & families) are taken on farms for an experimental organic tour. As
this is one of the main pillar of farmse, they also liked to visit farm and interact
with farmers. Not only help to stay healthy but also help farmer grow their business
on day to day basis, increase sustainability, yields and their incomes. So they took
initiative that people can know actually what’s organic farming & where it happens,
also understand the trust value of farmers. Moreover people will be aware about the
place their produce is coming from & whether the food that they are having is
genuinely chemical free or not. Indulge in this experience through various fun
learning activities that will make kids excited about the nature and about the eating
healthy.
 CHEPTER - 2
REVIEW OF LITERATURE

Naspetti and Zanoli (2009) analysed the consumers’ perceptions on organic food
quality and safety in Europe using primary survey of 792 respondents. Results
indicated that majority of the consumers were highly aware of the benefits
associated with organic food consumption and had purchased organic foods at
least once. But, in spite of their awareness, they still had deep concerns about
quality and food safety issues since they had little knowledge about how actually
the organic production and processing takes place and what essential quality and
food safety attributes they should look for, while purchasing organic food
products. The analysis significantly confirmed that there is a need for a new
positioning and marketing strategy for organic food products.

Foxall (2003) studied various papers that examined the consumer choice over a
range of laboratory and naturalistic settings, demonstrating the variety of
interpretations of consumer choice. He argued that the characteristics of
marketing-oriented economic systems such as product characteristics, advertising
and promotional campaigns, competitive price strategies and distribution policies;
together clubbed with nonmarketing influences such as interpersonal
communications among consumers (e.g. word-of-mouth), governmental
interventions, prior experience of customers and situational influences on
purchase and consumption, influence the consumer choice.

Johns and Pine (2002) reviewed the literature relating to consumer studies in
food service discussing survey work, experimental studies and investigations
relating to economic and geography, and sociological and anthropological
research. He argued that sociological and anthropological studies have the
potential to enrich consumer research in the food service industry by casting light
on the individual experience that underlies consumer responses. He argued that
although location and economic factors are important attributes of food and
service, these have received little research attention. The study concluded that
there is a need for studies to seek new techniques and to exchange ideas and
perspectives between disciplines with the application of appropriate methodology
and newer modelling techniques.

Green (2006) discussed the efforts of the corporate sector in promoting the
health and well-being of consumers, by discussing a case of Nestle´s Initiatives in
nutrition, health and wellness, to meet the growing challenge of global obesity.
She emphasised that food companies play a vital role in improving the health and
wellness of people by improving their nutritional profiles, providing them
adequate information on nutrition and health benefits of food and undertaking
collaborative steps along with other stakeholders to bring forth apt solution for
health related problems. She suggested that food companies should undertake the
processes of product renovation and innovation through research and
development in order to provide the consumer with food products, which are both
tasty and provide good nutrition at the same time.

Sutar et al. (2010) examine the growth of the Indian functional food market and
the existing trends with respect to functional foods in the Indian market, as well
as its current and potential contributions to the international markets. The study
highlights the various barriers in developing functional foods in India, which
include low income of most of the population, the high costs involved in bringing
a new product to the market, market search, research and development, quality
certification and regulations. The future growth and development of functional
food product in India would depend on how these barriers are handled and
removed by the concerned stakeholders including the government, private sector
and international organisations.
Chakrabarti and Baisya (2009) investigated consumer purchase behaviour for
organic foods by constructing a model based on various variables like consumer
innovativeness; the related perceived risk and personal influence; and the
demographic characteristics and time of adoption. Their findings demonstrated
that the factors which played an important role in explaining the diffusion of
innovation in case of organic food products, were innovativeness of the consumer
and the personal influence variable. The study also confirmed the role of select
demographic parameters in the level of regular purchase in the organic food
category. They concluded that the retailers should develop an in-depth
understanding about these variables of consumer behaviour and should devise
effective relationship marketing campaigns for the consumers.

Goetzke and Spiller (2014) conducted a comparative study on functional food

consumers vis-à-vis organic food consumers, based on a primary survey of 500
German consumers, with respect to the concepts of health and wellbeing and the
factors which drive them in making their purchase decisions. They argued that
the most important motive for the consumption of organic as well as functional
foods is the consumer’s desire for health and wellbeing. Their research aimed at
investigating if the consumption of organic and functional foods is dependent on
the same level of consumer.

Guilabert and Wood (2012) studied the importance of organic certification in

winning the consumer belief on health benefits of organic labeled products. They
argued that consumers had strong preferences for organic or non-organic foods
based on their beliefs about the benefits of organic foods, and the reliability of
the product labels. The results showed a correlation between choice of
organic-labeled products and health beliefs. It was found that the consumers’
taste discriminations were influenced by prior beliefs about health and organic
foods, and that these beliefs were triggered by the label information. The study
provided insights on public policy for strengthening organic food labeling
process and certification programs.

Methakornkulnan et al. (2013) studied the existing functional food market in

Thailand and assessed the consumers’ motivations, perception, attitudes and their
purchase intention towards functional food. Results of the study revealed that the
consumers had a very positive attitude towards functional food products and were
aware of the health benefits from functional foods, safety of functional foods,
innovative functional foods and medicinal functional foods. Women were found
to be more inclined towards purchasing functional food products. The functional
foods’ market in Thailand was found to be very competitive with functional
foods becoming a popular trend in the country.

Verbeke (2005) investigated the socio-demographic and attitudinal factors that

determine the preference of consumers for health attribute over taste, for
functional food products. This cross sectional study was conducted on two
samples of population in 2001 and 2004, for analysing the consumers’
willingness to compromise on taste in place of health. The empirical findings
reveal that although the expectation of health benefit from functional foods was
the most crucial factor which led the consumers to compromise on taste, both the
level and the acceptance were found to be decreasing over time from 2001 to
2004, with taste now emerging as a critical factor leading to acceptance of
functional foods in the future. The study concluded that in general, the consumers
are unwilling to compromise on taste over the perceived health benefits of
functional foods.

Stanley F. Teele et al (1944) had studied the marketing practices of Food

manufacturers and observed that the use of brand names is not directly
related,however, to high distribution costs because it is the intensity with which
brands are promoted that determines costs rather than their use alone. The costs
of marketing differ very decidedly from organization to organization within the
same product division of the food industry. It is of great importance to see how
wide a range of marketing practices may be adopted successfully by companies
in competition with each other. The wide variety of marketing practices had
exemplified by the extent to which firms differed in the selection of types of
customers. Personal selling costs vary significantly from one industry to another,
but within each industry there is more of a tendency toward a common or typical
figure. Firms of larger size tend to had higher distribution costs in relation to
smaller firms in the same industry.

The companies will spent a higher than average amount on promotion like
advertising when their products have higher quality, uniqueness or purchase
frequency or where more customer preferences. 3. The companies set a higher
than average marketing budget when their customers were more dispersed or
when the growth rate of customer is higher.

Mackowiak et al [1985] found the relationship between promotion and demand

for medicines by using econometric modeling. They looked at benzodiazepines
and diuretics which were the medicines from 1977 to 1981 and investigated the
overall organizations promotional expenditure affecting the demand for a group
of medicines that is overall market size and how individual company promotional
expenditure affected demand for a particular drug that is market share.They used
research organization IMS-Health data for investigating the extent of medical
representative activity and the extent of advertising, and converted these into
estimates of expenditure. IMS also provided data on the number of new
prescriptions for the products studied. They used Auto Regression Integrated
Moving Average modeling but were not able to find any relationships between
promotional expenditure and demand. They suggested that this may be due to
limitations of the methodology, or it may be due to companies spending much on
advertising that they are getting little marginal return for extra dollars spent. The
authors were unable to draw any conclusive findings from the study.
 CHEPTER-3
RESEARCH METHODOLOGY

3.1 Introduction
This portion of the study is dedicated to provide an all inclusive research
methodology which is employed to conduct whole research. This chapter is
dedicated to give detailed articulation of descriptions and approaches involved in
the main concern of this study that is to marketing channels of farmse-An
eco-friendly venture.Moreover, research instruments, research design, population
target, information gathering and most importantly methods employed in this
study for analysis of the data collected.

3.2 Research design

Research design means method or technique is used by the researcher in their
study.

Three types of research design:

Exploratory

Descriptive

Casual

Descriptive research studies are those, which are concerned with describing the

characteristics of a particular individual or group. Researcher used descriptive

study in order to know the consumer behaviour on marketing channel of farmse

The main idea of using this method is to understand the consumer reaction to
Marketing channel.The most suitable technique for the research topics was
observational method to conduct descriptive study. Qualitative observation has
done while conducting telephonic conversation

3.3 Sample size

Sample size is 100.

3.4 Objectives of study.

1. To study Distribution channels of Farm Se organic.
2. Find out customer satisfaction.

3.5 Data Collection

The primary data collection was carried out by telephonic survey and the
secondary data was collected from reports, articles and websites.

3.6 Problem statement

In this pandemic time firms can’t do the physical marketing or promotion so
Problem is that how to attract consumer to buy product and gain customer
retention.The study can help the store to make essential changes and attract more
Consumer in these difficult time.
 3.7 Limitation

The research is done through observation while telephonic conversation,

therefore not all the perspective can be known. Also observation might get
misinterpret. Respondents have to actually answer the call and can hang up at any
time, as behavior and body cannot observe.Customer view point remains
unknown as there is not direct interaction with them.Not every suggestion will be
helpful or would be implemented by the company.

3.8 scope of study

The study will helps to analyze various factors like which marketing channel
influence most, consumer behaviour towards pay by waste,bring your own container.
The study helps to identify the marketing channel from which more customers are
attracted, so it helps for better promotional techniques in future. Hence, helps to the
company to identify the behavior, attitude and other factors influence to purchase
organic mangoes.
 CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION
 Analysis and Interpretation

Questions For retailer

At what Frequency you get farmse Product?

Interpretation

-According to observation more than half of retailer get product after month while
25 retailer out of 100 buy product of farmse after 15 days.

-According to Graph almost 85 retailer buy product after 15 days or 30 days.

 Do you force consumer for purchasing farme product

Interpretation

-According to observation 60 retailer out of 100 have to force consumer to buy

product of farmse apart from that 40 retailer selling without any efforts.

-As farmse is high end brand they have to adopt push system.
 Are you satisfied with sale of farmse?

Interpretation

-According to observation 67 retailer out of 100 have satisfaction with sale of

farmse product and 33 retailer have no satisfaction

-majority of retailer have satisfaction from sale of farmse product

 Are you selling other similar product

Interpretation

-According to observation 80 retailer out of 100 have similar product while 20

retailer do not store similar product

-There are many similar product in market

 How the customer response to farmse product

Interpretation

-According to observation more than 60 retailer out of 100 said that response of
farmse product is high

-Due to price point around 40 retailer out of 100 noted medium and low response
from customer
 Dose farmse provide you credit ?

Interpretation

-According to observation all retailer don’t have option for credit

-Farmse do not sale on credit

Questions for customer

GENDER

Gender Frequency Percentage%

Male 40 40
Female 60 60

Interpretation:-
-According to survey 60 consumer out of 100 were women and 40 consumer are
male

-the women shop more than male in grocery sector

-The study recorded a higher response rate from Females than males.
 Age group

Age bracket Frequency Percentage%

20 - 30 20 20
30 - 40 30 30
40 - 50 50 50
100 100

Interpretation:-

-According to survey lowest consumer belong from 20-30 age group

-Most of the respondents are from age-group of 40-50 years.
 Source of Awareness

Interpretation:-

-According to observation 60 out of 100 consumer are purchasing from calling

And only 20 and 15 consumer were came from social media and relative respectively.

-Majority of the respondents were awarded by the medium of call.

 Visited Store

Interpretation:-
-According to observation 60 out of 100 people were not visited store yet and only
40 customer visited the store
-Out of all respondents less than half had visited the store at panchvati.
 Know About Pay by waste or Bring your own container

Interpretation:-

-According to observation only 10 consumer know about pay by waste and bring your
own container and 90 consumer are unaware of these services.
-Majority of respondents are not knowing the Pay by waste or bring your own
container method.
 Trust issues?

Interpretation:-

-According to observation 7 consumers out of 100 have trust issue. And 93

consumers out of 100 don’t have.
-Majority of consumers don’t have trust issue
 Feedback

Interpretation:-

-According to observation 72 consumer out of 100 have positive feedback and only
28 consumer have negative feedback .
-Out of all respondents, 77% gave positive response.
CHAPTER-5
FINDINGS
 FINDINGS

-According to the survey conducted the important findings can be briefed as follows:

-According to Graph almost 85 retailer buy product after 15 days or 30 days.

-As farmse is high end brand they have to adopt push system.
-Majority of retailer have satisfaction from sale of farmse product.
-There are many similar product in market.
-Farmse do not sale on credit .
-Due to price point around 40 retailer out of 100 noted medium and low response
from customer.
-According to the survey conducted the important findings can be briefed as follows:
From survey it can be clearly found out that people are more responsive to personal
marketing and Social media marketing and also word of mouth is major player in
marketing.
-As graphs represents old age people are more health concern in compare to younger
people furthermore, there is large volume of female who buy from farmse.
Customers are influenced by social media and personal marketing due to that,
Majority of customer don’t know about special offers such as bring your own
Container, Pay by waste and more .
-One of most interesting thing is without any physical visit people are buying more
and More and also they like products of farmse for example mango, Jaggery, protein
bar etc.
-Side effect of these kind of marketing is customer did not visited the store and not
exploring vast product range of these firm.
-Above 75% people rated good, positive about firm.
 CHAPTER: 6 Further Learning

(1) How to communicate with customer

(2) Educate customer about industry
(3) How to deliver value of firm
(4) I learned how social media can lead us to success
(5) How to build a brand
 CHAPTER: 7 CONCLUSION

From above research , it can be concluded that Personal and Social media marketing
are most effective ways of marketing.Relatives and personal suggestion have role in
marketing furthermore, due to electric platforms customer do not wish for store visit
and also it reduce space requirement for physical store but this kind of change in
consumer market can lead firms to loss in business because less physical visit means
less product in customer bucket . In this era firms are more concern about social
presence and they are selling more via social media marketing.Apart from that By age
people do more care about health.
Bibliography
https://www.facebook.com/Farm Seindia/
https://instagram.com/Farm Seindia?igshid=12rmlfg0m2844
https://www.greenobazaar.com/

References
https://www.disruptiveadvertising.com/marketing/marketing-channels/

http://www.marketingmo.com/strategic-planning/how-to-develop-your-distribut
ion-channels/

https://www.marketing-schools.org/types-of-marketing/channel-marketing.html

https://smallbusiness.chron.com/types-marketing-channels-21627.html

https://www.ijitee.org/wp-content/uploads/papers/v8i12S/L111610812S19.pdf

https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=6544&context=libphilpra
c
https://www.researchgate.net/publication/266160025_Attitude_and_behaviour_of_co
nsumers_towards_organic_food_An_exploratory_study_in_India

https://www.ijrte.org/wp-content/uploads/papers/v8i3/C5452098319.pdf

https://www.researchgate.net/publication/335716406_Indian_Consumer_Buying_Beh
aviour_towards_Organic_Foods_Empirical_Evidence

https://www.academia.edu/35018637/Factors_influencing_Indian_consumers_actual_
buying_behaviour_towards_organic_food_products
 Annexure-I-

1. How frequently you get farmse product?

(A)After 7 days
(B)After 15 days
(C) After month

2. Do you force consumer for purchasing farme product

(A)Yes
(B)No

3. Are you satisfied with sale of farmse

(A)Yes
(B)No

4. Are you selling other similar product

(A)Yes
(B)No

5. How the customer response to farmse product

(A)High
(B)Medium
(C)Low

6. Dose farmse provide you credit ?

(A) Yes
(B) No

7. Gender
(A)Male
(B)Female

8.Age Group
(A)20-30
(B)30-40
(C)40-50
(D)above 50

9.Have you visited store

(A)Yes
(B)No

10.How you come to know about Farmse

(A)Social media
(B)Call
(C)Newspaper
(D)Relative or Friend
(E)Neighbour
11.Do you know about pay by waste or BYOC
(A)Yes
(B)No

12.Trust issue
(A)Yes
(B)No

13.Feedback
(A) Positive
(B) Negative