Submitted by:

21206061 SPANDITA TRIPATHY

21206062 SUBHAM NAG
21206063 SUBHAM RAY
21206064 SUCHISMITA SAHU
MARKETING STRATEGY OF
21206065 SURJEET DAS

KRISHNA (A CASE STUDY)

21206066 SWADHIKANTA RATH
21206067 TADISETTI LOKESH ANJANA
SRIVATSAVA
21206068 VEERLAPALLI PAVANKUMAR
REDDY
21206069 VISHAL KUMAR
21206070 VUTTI SAI MAHANTH
Submitted to: 21206071 ABHIJEET TRIPATHY
Prof. Nishith Parida 21206072 SOMYA RANJAN NANDA
Director, KIIT School of Rural
21206073 SAKTI SOURAV MOHANTY
Management(KSRM)
21206075 FABRICE CHIGUMIJE
 INTRODUCTION
• India has shown a growth of 2.7 p.a. and it is contributing 1/5th of GDP in the form of Agriculture.
From a mere 52 million tonnes in 1951-52, the food grain production in 2005-06 has increased to
210 million tonnes.
• Agrochemicals play a major role in improving soil fertility, protecting crop produce and raising
productivity.
• Krishna Pvt. Ltd. dealing with manufacture and production of agrochemicals and pharmaceuticals.
It had a history of growth and success and had begun to control a substantial market share of
agrochemicals in the country.
• In 2003-2004, the company decided to concentrate on its core agrochemical business and the years
2005-2006 saw a turnaround in terms of revenue and profit generation.
• The company decided to focus on untapped rural market in the country and saw an opportunity in
the vegetable growing belt of the state of Chhattisgarh.
• The state govt. was playing an active role in making available and encouraging the adoption of
agrochemicals for its farmers by creating awareness and providing subsidies.
• The effectiveness of various marketing alternatives in rural markets was studied, and marketing
strategies developed and implemented, that have helped the company grab a substantial share of
the market.
History
• The Indian agrochemical industry was 1st started in the year1906 in ranipet with a production capacity of
6000 metric tonnes.
• In 40s and 50s large sized fertilizer and chemical plants was set up in cochin and Sindri in view of mass
production, manufacturing and industrialization.
• The success of the green revolution in the late 60s provided a substantial boost to the agrochemical
industry.
• Now India is the 3rd largest producer & consumer of fertilizers in the world.
Changing trends
• The annual consumption of fertilizers in India has increased from 0.7 LMT in 1951-52 to 203.40 LMT in
2005-06. Farmers expect ready product information and availability of good quality agrochemicals and
accessories at optimum prices.
• The changing global market environment, farmer awareness and knowledge, and role played by the
government have greatly affected the agrochemical industry. Emphasis has been laid on innovations and
maintaining the world class quality.
• Older production plants and techniques have been replaced by technologically advanced and
sophisticated plants that are easy to manage, cost effective and environmentally less dangerous.
Drivers of Agro-chemical Industry: -
• Large untapped market: - Increase in agriculture production if the products could be developed
for controlling pests and diseases.
• Innovative market: - Continuous advancements in the technology used in the agriculture have
led to shift in farming practices with the increased export and import of agricultural commodities
across different geographies.
Challenges of Agro-chemical Industry: -
• Target pest defence to agrochemicals: - By continuous usage the resistance to chemicals may
develop.
• Regulatory norms: - Consider health and safety norms.
• Low capacity utilisation: - Due to seasonal demand and cheap imports.
• High inventory: - Companies have to follow a policy of end of season sales and this leads to
price cutting.
• Environmental pressures: - Pollution, Global regulations, proper disposal.
 COMPANY PROFILE
• Krishna Pvt. Ltd. is one of the leaders in the Indian agrochemical industry.
Capacity to produce 12,000 M.T. of technical grade pesticide and 35,000 Tons/Litres of
formulations per annum.
• Wide range of agrochemical products such as;
• Insecticides: Saksham, T Seeda, Saja, Nasaf and Heera
• Fungicides: Sintaf, Sintaf Plus, Captain and Fusigrab
• Weedicides: Seize, T Dosti and T Pasinda.
• In 2005, Krishna Pvt. Ltd. earned revenues figuring Rs. 3870 crores and profit after taxes
of Rs. 40 crores.
• India's leading producers of urea, ammonia and phosphate fertilisers.
 
• Aim:
• The company is to focus on untapped rural market of the country to see an opportunity in the
vegetable growing belt.
Problem faced by the Company in Chhattisgarh:
• Failed to target the untapped region of Chhattisgarh due to government it has developed
tremendously.
• Incapable to capture the huge market size of Rs 8 crores.
• The Kolkata officials were spending lot of money, time and energy to turn around the
position of Krishna in the vegetable market of Chhattisgarh but all in vain.
 METHODOLOGY OF THE STUDY
• A study was made on the vegetable grower of Raipur and durg of Chhattisgarh .they have a
similarity in farmer profile, the buyer behavior. A total of 100 farmer and 30 dealer were
chosen for sample size.
• The questionnaire as tool gather data seemed inappropriate due to-
• 1.literacy rate of the farmer
• 2.product complexity
• 3.technicl complexity
• Then personal interview could help in-
• 1.simplifying aspect of the questionnaire
• 2.watching customer reaction and personal observation
Findings-
1. Farmer profile-
• Farmers have average land holdings of 25 acres and median land holdings of 20 acre
2.Cropping and spraying pattern-
• 80% of the cultivated area was under vegetable,15% maize, fruit and sugarcane and 5%
paddy.
3.Irrigation facility-
• It was found that 86% of the total vegetable acreage had boring facility, about 60% of the
total vegetable acreage had drip irrigation.
4.Cash credit ratio-
• For smaller farmer having the land holding of less than 25acre the credit ratio is 30%.the
farmer having land holding of more than 25 acre the credit ratio is 80%.the net credit ratio is
60%.
5.innovativeness and product loyalty-
• The bigger farmer are less brand conscious and show low product loyalty.70% of the
vegetable farmer were keen in trying new agrochemical product and techniques to prevent
resistance formation
6.Customer buying behavior-
• Critical success factor in determining the choice of the product was identified they are
company name, farmer recommendation dealer recommendation, lunch of new chemical and
trial pack result
• From the study we got that 84% of the farmer are knowledgeable and purchase pesticide
based on technical compounds rather than on the company name and image.
• As per information 40% of the farmer took advice from the dealers.15% of the farmers
watched the agri programs like krusidarsan and Doordarshan and also depend on local
newspaper information.
 FINDINGS FROM THE STUDY

• Not only co-farmers recommendations and experiences but also company officials and
qualified field staff were consulted in the purchase decision.
• Farmers also desire help like better product, literature, helpline, farmer meetings+ field
contact, demonstrations and seminar from company. ( 90% of farmer desire farmer meetings
from company)field staffs not only campaign but also educate and guide farmers.
• Village fairs, stage shows, video van are used to attract farmers, educate them and let them
know brand offerings and also helpful to make them know about pest and disease and about
their corrective measures, this indicates the importance of face to face farmer meetings for
the adaptation and usage of chemical products.
 COMPETITOR ANALYSIS
• In this locality Syngenta agrochemicals is the main competitor.
• The study revealed that Syngenta, the market leader of agrochemical industry in Chhattisgarh
has contact strategies that are paramount to its success.
• Right from the sales executives to sales officers and field staff, every official is proactive and
visits 20-35 farmers a month.
• Syngenta uses advanced technologies through audio visual means; a van with LCD screen to
educate farmers on latest agricultural practices and to promote its products is used.
• The Syngenta India Agro Farmers Club has been formed to facilitate network building amongst
farmers who thereby have a platform to share their experiences and increase awareness.
• Syngenta and Basf have also been organizing annual and biannual informational seminars that
serve as a platform for grievance reprisal and to launch of new products.
• The companies also have an attractive reward system for its retailers, who are thus, always keen
to push the product.
 SUGGESTIONS AND
• Contact Strategy:
RECOMMENDATIONS
• Effective contact strategies to connect with customers and treat them in a special way are of
utmost importance as service differentiation can win customers and boost the business of the
company
• Pricing Policy:
• The product portfolio should be categorized into two categories: (A): Key brands where
retail- level prices will be informed through the Pricing Circular; (B): Brands for which net
prices would be offered to distributors of so that they can work out on their gains.
• Sole Stockist Margin: Sole stockists would be entitled to a margin of 3%, calculated on
DBP, for category A products and a margin of 2%, calculated on DBP, for category B
products. For category A products, the recommended price to retailer will be provided in the
price circular to the sole stockist. However, no recommended price to retailer will be
indicated in the price circular for category B products.
• Matching Discount: Matching discount would be offered to match temporary deviation in
prices in the market and it thus it could vary across months. It would be applicable on every unit
sold of a particular product. Special discounts for exceptional customers who buy in bulk like
plantations or institutions would be indicated in the price approval formats.
• Payment Incentive: Payment incentive would be offered to sole stockists or preferred dealers
for paying cash within specific days of invoicing. It would be calculated as a percentage of net
DBP (DBP less Sole Stockist Margin less Matching Discount).
• Rebate Agreement: This would take the form of an incentive and would be offered to the sole
stockist and preferred dealers for lifting the sale of a particular product.
• Year-end Performance Incentive: Year-end performance incentive was a reward for sole
stockist and preferred dealers for accomplished targets established at the beginning of the
financial year. It was valid on sales of all Category A and Category B products, excluding the
low profitability products. It would be based on both quantitative (25 % weightage) as well as
qualitative (75 % weightage) parameters, to be decided at the beginning of the year in
consultation with Regional Manager – Sales.
• Differential Discounts: Apart from the above, differential Discounts would be offered to sole
stockists or preferred dealers.
 KEY RECOMMENDATIONS
• Above studies reveals that vegetable growers of Chhattisgarh were knowledgeable and
farming have been done at large scale since long time.
• Target market: Krishna company have good market among the small farmers but it should
be extended to medium and large scale farmers with moto of less cost with more brand
loyalty.
• Product portfolio:
• Krishna has a good presence in the fungicide market, this needs to be further
strengthened. However, the company needs to increase its base in the pesticide and
herbicide sector with using brand image of insecticide sector.
Dealer Network:
• Regional mangers and sales department should look after the new dealers among the weaker
districts where cut to competition with Bayer and Syngenta .
• Those new dealers should be look after personally by district level sales force.
• Krishna Pvt. Ltd. has strong controls and higher market shares among
the smaller farmers, this needs to be further strengthened. Incentives should be given to
big dealers as they have big market share as compare to smaller dealers, this could encourage
them and act as motivators for them as well as for others. A uniform pricing and discount
policy as discussed above should be adopted to reduce the discontentment among the dealers.
 COMMUNICATION AND PROMOTION
• Product portfolios should be promoted as a complete solution for all problems of
vegetable growers. Trial packs and smaller packs must be distributed.
• Farmers having the opinion that products of Krishna company are concerned with paddy this
thought should be changed and should also create a brand image in vegetable input sector
also.
• The vegetable farmer community is progressive; they use the latest technologies and have a
high level of awareness about pests and diseases. It has been observed that officials from
Syngenta, Bayer and Basf, have been working in this sector for the past 10 years and are in
regular touch with the farmers. Infact, the success of Syngenta lay in its intensive individual
farmer contact, finally making the farmer dependent on the company officials for regular
advice before purchasing pesticides, This strategy also should be adopted by the Krishna
company sales driven department by regular meetings and demonstrations on files could
improve the situation .
• 23 % of the farmers depend on the dealers for product information; hence more of point of
purchase display at the outlets is recommended this should be look after by the ground level
filed staff.
• In the sales weaker districts and newly adopting districts ,there should be special focus and
extra funds by the company officials to take new initiatives like arranging tele helpline
services.
• Apart from advertising in print media should also focus most in agri related news papers
and magazines .
 IMPLEMENTATION AND
CONCLUSION
• Number of incentives and discounts recommended to farmers, distributors and stockiest
would be driving the sales of the company.
• To build company loyalty among farmers our company should focus that theme of
demonstrations should also new agricultural practices among brand promotion.
• To create strong dealership in the ground level the company should look after the dealer that
is the dealer fulfilling the below needs of the farmer like:-
• Correct guidance
• One stop shop
• Credit etc.
THANK YOU