Professional Documents
Culture Documents
INTERNATIONAL BUSINESS
Submitted By:
Rahul Manyagol (PRN: 17020242004)
Submission Date:
23.01.2019
I would like to thank my mentor Mr. Sushant Malik under the guidance of
whom, I was able to complete this dissertation. He has been very supportive to
guide me on the theme of the dissertation, suggesting me appropriate changes in
the questionnaire developed for both interview and survey. He also took time to
review my work every now and then suggesting me ideas and a way forward for
all the obstacles I faced during my dissertation. It was due to the time and
efforts of my mentor, that I was encouraged to work on this dissertation and
bring out the best of efforts in completing it
I would also then our HOD Dr. Nisha Bharti for constantly guiding me in the
dissertation and preparing the various methods that proved to be useful during
the dissertation.
I would also like to thank the participants of my survey and interview, without
whom the core analysis wouldn’t have been possible. Due to their co-operative
and supportive nature.
I would also thank Mr. Ketan Manek from Agrostar for allowing me to
interview the farmers which are associated with their company for my
dissertation work and collecting the information along with the survey done.
Thank you,
Rahul Manyagol
MBA AB 2017-2019
Index
INDEX Heading
1) Acknowledgement
2) Executive Summary
3) Introduction to project
4) Industry Profile
5) Company Profile
8) Suggestion and
conclusion
9) Bibliography and
website reference
Executive summary
In the last 4 decades the growth in the India agriculture has been observed to be
increase with a CAGR of 3%. Today the agriculture contributes to the 1/5 th of
the total GDP. The overall production of the nation has increased over the past
years but the productivity remains the same for years. Majorly due to less
fertility and one of the major reason for this being the losses to the crops due to
Pest and Insects along with it one more reason that is the weeds in the field.
Weeds are the plants not planted by the farmer. They dominate the land and are
hard to eradicate along with being major reason of the crop losses as they
compete with the major crop for the water and nutrient supressing the growth of
the main crop resulting in the losses as the production decreases. If we see the
losses due to the weeds is 35% in final production. Leading to which to control
the spread of weed herbicide market has increased over the past years and
accounts to 50% of all the Agrochemicals sold in the world are Herbicides. As
weed control with the help of the chemicals is cheaper as compared to
traditional practices it is become the most used method for weed control.
This report was made considering in to the account of weed present in the area
of Pune district and the crop loss faced by the farmers due to the weeds.
Questionnaire was used to record the responses from the farmers and then the
interaction with them also resulted in helping to analyse the results to know the
brand awareness among the farmers and to study the consumer behaviour for
purchasing the herbicides form the retailer. This project also helped in the
understanding of the supply chain of the Agri input market.
Some of the data collected in this report is from the observations of my Summer
internship as well as the in depth situation analysis was done during the live
project in the done in Yavatmal of BVG where there has been reported lives
loss due to the pesticides. The direct interaction with the farmers, dealers and
the distributors made in the actual analysis and the results are based on the
same.
Industry profile
If we see in the past many years the growth of the Agricultural sector has been
increasing throughout the world because of better seeds, improved Agricultural
practices, better weed and pest control and the disease control accounts for the
same. But it has also been noticed that in the developing countries as compared
to the developed countries there has been a shift of practices from the traditional
ones to the improved ones. Due to which the production of the crops has also
increased in these countries.
Geographical Distribution
It can be inferred further that the reach of these chemicals will be growing in the
coming years mainly in the developing markets as the developed countries
markets has attained the maturity.
In India the market overview is that out of the total chemical market the crop
protection market is of about 2%. As per the data India is the second largest
manufacturer of Agrochemicals in Asia, followed by japan. The growth of the
industry is approx. 9% per annum. Over the years the industrial growth is
measured and with the size estimated to 4 billion US dollars and the growth
exports are about 50%. And in the coming years is expected to grow at the rate
of 14% per annum. To reach about the 8 billion dollars. And increasing the
export demand to 16% per annum.
Paddy and cotton are the major consumers of crop protection chemicals
accounting for 28% and 20% respectively of the total domestic crop protection
chemicals market. In recent years, consumption of insecticides has decreased
due to the introduction of BT cotton, which has lower risk of pest attacks. As a
result, pesticides usage on cotton as % of total has decreased from 33% in 2005
to 20% in 2009
Share of paddy in the total crop protection chemicals has increased from 24% in
2005 to 28% in 2009.The top three states Andhra Pradesh, Maharashtra and
Punjab account for 50% of the total pesticide consumption in India. Andhra
Pradesh is the largest consumer of pesticides with a share of 24%.
Indian scenario
Domestic consumption
Manufacturer Formulators
Distributors Retailers
Retailers/ Dealers
Formulator
Any company may have a sales force allotted through these three tier system.
The Indian market is highly fragmented market. Having more than 800
formulators in the country resulting in the high consumption by the farmers in
crops with the availability of large number of organised players and a diverse
product portfolio in the choice of the Agrochemicals. Key market participants
include UPL, Bayer Crops science Ltd, Rallis India Ltd, Gharda Chemicals Ltd,
Syngenta India Ltd, BASF India Ltd, etc. these are the market leaders and
dominate the market of Indian Agrochemicals.
Break-Up of Agrochemical Industry
It can be seen that in India the herbicides used is 17% as compared to the world
where Herbicide accounts to the major Agrochemical with 46%. In India the
major Agrochemical is the Insecticides and the world has only 26%
consumption as compared to India where it is 61%
State wise consumption
OBJECTIVES
Questionnaire containing both open ended and closed ended questions were
used as main tools for data collection from the farmers, distributor and dealers.
Source of information
Primary information:
1. farmers
2. dealers
3. distributers survey
Secondary information
1. Website
2. Articles
3. Historical data
4. Research paper.
Research technique
Population
Population for study selected was all paddy and maize crop growers in Pune
District
Sample Design
1. Questionnaire
2. Industry analysis
3. Graphs, bar diagram, Pie chart etc
Limitations
Location
This project was conducted in Pune district of Maharashtra .Given below is the
list of villages where promotional activities like farmer meeting, group
discussion, individual farmer contact, van campaign, Tele-campaign, poster
campaign was carried out by various companies
1. Asade
2. Barpe Bk.
3. Bhoini
4. Bhoirwadi
5. Hotale
6. Jatede
7. Kalamshet
8. Karmoli
9. Kondhawale
Maded
Findings
1. Farmers are depends upon many factors for making purchase decision but
they give prime importance to the quality and results of particular
product.
2. Dealers were reported to be important source of information to the
farmers and they were having huge impact on their decision making.
Buying behaviour of farmers were studied with respect to different
segments in Agri-input industry.
3. Buying behaviour was mainly depending on some of the crucial factors
like brand awareness, credit policies of dealer, dealer’s opinion,
availability of product and its price.
4. Farmers were more aware about different awareness activities taken by
the company to promote the product. Company was also concentrating
this segment due to higher consumption rate and brand loyalty to the
quality brands. Degree of awareness was decreased with decreased land
holding. Farm meeting was found to be the most effective source of
awareness as it has very good conversion rate in final purchase.
5. Field visits were also rated higher by the farmers irrespective of their land
holding and it helped to build the good brand image in the minds of
farmers due to proper feedback mechanism by the company compare to
the other competitors. Farm meeting followed by jeep campaigning was
most effective method as it act as a reminder to the farmers.
6. The study revealed that area under Rice crop is increasing. Market
potential of Rice herbicides is very high.
7. Channel conflict between dealer and distributor.
8. The study revealed in its findings that quality, dealers‟ recommendation
and brand image are important factors for purchasing of herbicides.
Further demonstration followed by field day, individual contact and
farmers meeting emerged as useful promotional activities which have
significant influence on sales.
DATA ANALYSIS AND DATA PRESENTATION
Number of Farmer
YES
No
32 %
68 %
Brand awareness
percentage share
2% 2% 2%
11%
6%
Fastmix
Machete
topstar
pretilaclore
other butaclore 50% EC
other butaclore 50% EW
78%
market share of herbicide
Percentage share
10% 9%
4% 6%
1%
Fastmix
Machete
topstar
pretilaclore
other butaclore 50% EC
other butaclore 50% EW
Suggestion
1. Introduction of loyalty scheme to the dealers which will include the
bonus points on the sales.
2. Opinion maker and educated farmers should be focused in demonstration
campaign, who in return would convey the good results of Fast mix to
other farmers.
3. As individual contact was found to be as effective promotional activity
therefore more individual contacts should be done before crop season.
4. Since dealers/retailers is one of the main factor which influence the
buying behavior so attractive incentives schemes should be launched for
them.
5. Profit margin for distributor and dealer should be increased.
6. Some of the farmers mentioned about problem of duplicates in their area
so increase the promotional activity for rooting out the duplicates
Conclusion
The company (Sinochem India company private limited) is having good market
share but the market has huge potential and the company can increase its market
share using these brand promotional activities.
BIBLIOGRAPHY / REFERENCES