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Case of

Dying Fish
Submitted by:
Sowmya S 18083
Srinivas Prasad 18110
Shourya 18143
Achyut Kulkarni 18146
Vrishabh Kumar 18177
• Zuari Agro Chemicals Ltd was
founded by eminent Indian
industrialist Late Dr KK Birla
• Indian Oil corporation agreed to
supply 2,00,000 tonnes of
naphtha
• The company expected to market
its product in Maharashtra,
Mysore (Karnataka) and Andhra
Pradesh
• Zuari entered collaboration with
united states Steel Corporation in
1968
• The plant production capacity
was 2,20,000 tonnes of ammonia,
3,40,000 tonnes of Urea and
1,50,000 tones of compound

Introduction and case facts fertilizer per year


Continued…
• In 1973, issue of sea pollution due to arsenic
discharged into sea which causes threat to
marine life
• In 1974, The plant also complained of seepage
and pollution of their wells and damage of crops
• 1975, the villagers with the support of political
parties, started agitations and organized hunger
strike to press the issue
Issues
• Fish Mortality- presence of arsenic was the main
cause
• Temporary closure of the factory
• Discharge of ammonia into Bissau reservoir
• Cost of anti- pollution measures
Macromarketing
• Study of the effect that marketing policies and practices have on
economy of a country and society
• Impact on the economy: The company claimed that farmers will
suffer from insufficient fertilizers and economy will destabilize if the
closure happens. But there has been steady increase of 12.94% in
production of fertilizers during 1969 to 1975 (from exhibit 3) despite
the temporary closure of the company in the tenure.
• Fertilizer consumption of India per hectare field was way below
compared to Asian or American standards
• Due to low consumption of Fertilizers, the per hectare yield was 20
times less than that of US and 23 times less than that of Japan
Macromarketing
• Around 53-55% of total consumption of fertilizers was
from imports and the growth rate was 21% (Exhibit
2b)
• Zauri being one of the prominent players in fertilizer
production, has surely large impact on economy of the
country
• Impact on society: Effluents from the dispensers
released chemicals that are harmful to fishes, paddy
fields and drinking water wells
• Fishery being 3.5% of the total regional income
generator, has affected by effluents and fishes were seen
dead at the shore in large numbers
Pertaining “society” there are some
factors to be considered such as,
• Does our product/operations
affect the well being of the people
in the vicinity? (type of the
product- tradeoff between
development [economy] and
environment [well being])
• If yes, what is the measure that
we need to take? (stringent
adherence to rules and operation
quality improvement)
• Have you considered all the
stakeholders (people in the
vicinity included) in formulating
the business objectives
Macromarketing
Macromarketing practices: Pepsi vs. Zuari

Pepsi Zuari
Economy: Did not have clear benefits to the economy. But Economy: Have clear contributions to the economy but is the only
company managed to highlight the economic benefits claim company relies on.

Skills: Company started a research center Skills: In 70’s and 80’s utilization of fertilizers to get the maximum
yield was not so hot topic in the Indian context. The company,
Employment: Pepsi promised to generate 50000 employment apart from government initiatives, may have approached farmers
opportunities across the country independently to educate about the benefits

Marketing attractiveness: Due to all the claims it had made to Employment: Direct employees were merely 500
support the economy and growth had attracted government and
claims about employment generation, research centre and food Marketing attractiveness: No such incentives were given from
processing technology attracted people company side apart from farmers getting benefitted
Probable suggestions:
Macromarketing
perspective

• Victim farmers must be called and


sort about the probable
compensation to be given
• Educational/social programmes to
be held to improve the living
• Build the good relationship with
Goa government and then try to
negotiate (Complying to some
conditions and dodging some)
• Reposition the company from mere
manufacturing fertilizer to
something like “Farmer’s
companion”
• Try and bring in the new
system that releases less waste
or not at all. Company
claimed that it already started
implementing such projects.
• Being sustainable enterprise
includes uplifting society with
the development. Educate
farmers to use fertilizers and
better their yield.
• The fertilizers are chemically
sourced. It is hard to change
the business model to
organic/biogenic business
model. Try and include Indian
Being a sustainable players in the chain.

enterprise
Pillars of
Sustainable
Development
Identify how to deliver
benefits in all areas or
at least to informed
decisions if trade-offs
between different
pillars are required
Human capital

Business and shareholder Product Significant member of the


community
• Protect health and safety of • Eliminate negative health and • Foster local employment
employees safety impacts of products • Protect human rights
• Employee training and • Design product that meet • Engage in dialogues
development schemes human need and enhance
quality of life

Social capital
Business and shareholder Product Significant member of the
community
• Encourage local procurement • Communicate information • Sustainability performance is
related to product, openly and accurately
performance, risk and communicated
appropriate use • Community investment
programme aligned to
sustainable development
• Develop partnerships with
the local community
Learnings
• People in the vicinity of the business
operations are important stake
holders
• Macromarketing issues are crucial in
building sustainable enterprise
• Tradeoff between development and
sustainability exists. And this needs
to be balanced by business circle and
government
• By reacting apologetically company
could have changed the conditions to
its favor. So, responding to
allegations is important
• Relationship with local government
is crucial
Thank you

There is plenty
of fish in the
sea. So does the
trash!

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