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TATA RALLIS
The production of pesticide industry was 6.2 lakh tones during FY 2009-10. Size of Indian pesticide industry was estimated at Rs.106 bn for 2010, including exports of Rs.52.2 bn. PESTICIDES SEGMENTS
Product Name
Company Name
Admiral Liquid, Crystal Plex AG-Streptomycin Curzate, Nustar, Equation, Coragen, Fertera, Avaunt FanFare Round-Up
TATA RALLIS
TATA RALLIS
THE COMPANY
It was set up in 1851 by Stephan Ralli as Ralli Brothers for trading in Jute, Cotton and other agricultural commodities. Rallis India after independence became countrys leading distribution company for Fertilizers, Pesticides & other agri inputs. It is the first Indian company to set up factory for production of technical grade Pesticide. It is the first company to establish R & D facility. It is involved in four segment of agricultural business. They are- Pesticides, Seeds, Fertilizers, and Seed treatment chemicals.
PRODUCT PROFILE Pesticides Fertilizers Seeds Seed Treatment Chemicals Asataf. Applaud, Rogor, Manik, Prabal, Endotaf Aquafert, Calcium Nitrate, Krista, Solubor, Tracel Hybrid Maize, Hybrid Paddy, Bt Cotton Tata Mida, Glazer, Captaf
5 Zonal Offices 3 Regional Offices 33 Area Sales Offices 23 Depots 190 Sales territories 1500 Dealers 30,000 Retailers
RETAIL PROFILING
Wholesale retailer Large/medium/small and medium, during cropping season (region specific)
One stop shop Mostly the large farmers (innovators), during cropping season
Type of locality Factors influencing consumers to visit these outlets Customer patronage Details of stocks Service Profitability Cost of stock out for the company Inventory to be maintained Pricing Display space Companies bargaining power Ideal for
Low Branded Credit and technical service Low Low Low Co-op Comparatively low Low Push
High Branded/unbranded Credit &advice Average Very high Very high W.retailer High High Pull/push
High Branded/unbranded Credit technical service Average Comparatively low Comparatively low Retailer High High Pull/push Branded Technical advice-high Comparatively low Low Low One-stop shop Low Comparatively low Pull
CHANNEL DESIGN
Buyer Needs
CHANN
Product Needs
Retailer Needs
Distribution Needs
Legal Requirements
Feasible Alternative
Product Needs: This is applicable at the stock point near market places. This includes decision regarding stocking point. As the pesticide demand estimation is very important the company should have more number of localized stocking points. Here time utility plays a very important role
Space Location Infrastructure Retailer Needs These are the characteristic, which the channel member should possess.
Distribution Needs this shows the width of the channel. As the spraying period of pesticide is very short there should be proper distribution of the product when the farmer needs. The sales service is very important. Making The Quality Product Available Sales Service (Complaint Handling, Delivery Time Etc) Generating Demand Legal Requirement-To minimize the burden there should be C&F agent in different states. There Requirement-To should be central service tax and state sales tax to fulfill the legal requirements. Certificate From CST And SST Association Of Memorandum
(from manufacturing
Depots... 1
Depots n
Second leg
Distributor 1
Distributor n
Third leg
Retail 1
Retail n
Tata Rallis Products are available in over 30,000 retail outlets across India through its network of 1500 Dealers.
First Leg: From Manufacturing Units to Depots- Tata Rallis send its product to 23 Depots located across major cities of India.
Second Leg: From Depot to Wholesalers: Company has a network of 1500 distributors. The margin offered to the distributors varies for the different product. There is high margin for pesticides, seeds and micro-nutrients and low margin for fertilizers. Volume discounts are given to the distributors. Wholesaler gets incentives for selling extra amount.
Third Leg: This is the flow of goods from wholesaler to retailers, a beat plan is prepared and transportation is done on trucks.
Tata Rallis strongly believes in maintaining a good relationship with the channel members so that they are genuinely motivated to work for the company. Also if the channel members are motivated, they can also initiate advertising & sales promotion schemes on behalf of the company. However to keep the channel members motivated to work, the company has to incur certain costs but the benefits of it are felt in the long run. The following are the motivation programs run by the company:
DISTRIBUTORS-
One of the main factors, which keep the distributors motivated, is the margin. Usually the margins offered by the company are HIGH for pesticides and seeds and low for fertilizers. Volume wise this comes out to be a big figure since Tata Rallis product has a good demand in the market. However compared to the other companies the margins are still lower. But the very fact that TATA has a brand name so Tata Rallis products have good demand in the market motivates the distributors to stock it.
The company is giving many kind of sales offers to the Distributors like price discount, Bulk discount and other prizes for achieving high sales.
The company is organizing various Total Quality Management initiatives & workshops. Here various counseling measures are undertaken by the company to improve the overall working of the distribution network.