PROJECT REPORT ON BRAND AWARENESS OF NAGARJUNA AGRICHEM LIMITED IN JUNNAR AND KHED TAHSIL OF PUNE DISTRICT AT NAGARJUNA AGRICHEM LIMITED AT FURSUNGI, PUNE
By Mr. BABASAHEB BHAURAO THATAWALE (Regn. No. 10/370)
Submitted to MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI, DISTRICT- AHMEDNAGAR (MS)
In partial fulfilment of the requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION (AGRICULTURE)
COLLEGE OF AGRICULTURE, PUNE- 411 005 (2011)
BRAND AWARENESS OF NAGARJUNA AGRICHEM LIMITED IN JUNNAR AND KHED TAHSIL OF PUNE DISTRICT A Project Report submitted to the
MAHATMA PHULE KRISHI VIDYAPEETH, RAHURI, DISTRICT – AHMEDNAGAR, (MAHARASHTRA) In partial fulfilment of the requirements for the degree of
MASTER OF BUSINESS ADMINISTRATION (AGRICULTURE) By Mr. BABASAHEB BHURAO THATAWALE
(Regn. No. 10/370) Approved by Advisory Committee
Dr. M.N.Waghmare Project Guide Asstt. Professor of Agril. Economics, College of Agriculture, Pune.
Dr. R. K. Rahane Professor of MBA (Agri) College of Agriculture, Pune.
Prof. P.N. Shendage Associate Professor of Agril. Economics College of Agriculture Pune.
Master of Business Administration (Agri.), COLLEGE OF AGRICULTURE, PUNE- 411 005 (Maharashtra) (2011)
CERTIFICATE OF ORIGINALITY
This is to certify that the project entitled “ Brand Awareness of Nagarjuna Agrichem Limited In Junnar and Khed Tahsils of Pune District ” is an original work of the student and is being submitted in partial fulfilment for the award of degree in Master of Business Administration (Agri.) of Mahatma Phule Krishi Vidyapeeth Rahuri- 413 722, District- Ahmednagar. This report has not been submitted earlier either to this University or any other University/ Institution for the fulfilment of the requirement of a course of study.
Mr. Thatawale B.B.
(10/370) Student
Place: Pune Date: / /2011
Dr. M. N. Waghmare Project Guide, and Asstt. Professor Agril Economics College of Agriculture, Pune-5
Dr. M. N. Waghmare Project Guide, Asstt. Professor of Agril Economics College of Agriculture, Pune-5
CERTIFICATE This is to certify that the Project entitled “ Brand Awareness of Nagarjuna Agrichem Limited In Junnar and Khed Tahsils of Pune District ”submitted to the Mahatma Phule Krishi Vidyapeeth, Rahuri, District–Ahmednagar (Maharashtra), in partial fulfilment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION (AGRICULTURE) embodies the results of a piece of bonafide work carried out by
Mr. Thatawale Babasaheb Bhaurao (Reg.No.10/370) under my
guidance and that no part of the project work has been submitted for any other degree or diploma. The assistance and the help rendered during the training period have been duly acknowledged. The suggestions made by the Evaluation Committee are incorporated in this project draft.
Place: Pune. Date:
/
/ 2011
(M. N. Waghmare)
Dr. B.R. Ulmek Associate Dean, College of Agriculture, Pune-5
CERTIFICATE
This is to certify that the Project entitled “BRAND AWARENESS OF NAGARJUNA AGRICHEM LIMITED IN JUNNAR AND KHED TAHSIL OF PUNE DISTRICT” submitted to the Mahatma Phule Krishi Vidyapeeth, Rahuri,
Dist.-Ahmednagar (Maharashtra) for award of the degree of MASTER OF BUSINESS ADMINISTRATION (AGRICULTURE) embodies the results of a piece of bonafide Project carried out by Bhaurao
Thatawale
Mr. Babasaheb
(Regn. No. 10/370) under the guidance of
Dr.M.N.Waghmare Assistant. Professor of Agricultural Economics College of Agriculture, Pune and that no part of the Project has been submitted for any other degree or diploma.
Place: Pune. Date:
/
(B.R. Ulmek) /2011
ACKNOWLEDGEMENT With immense pleasure, I would like to present this project report for Nagarjuna Agrichem Limited. It has been an enriching experience for me to undergo my summer training at Nagarjuna Agrichem Limited. Which would have not been possible without the goodwill and support of the people around and for this, I would like to express my sincere thanks to all those who helped me during this project I take this opportunity to thank, Dr. M.N. Waghmare, Project Guide and Assistant Professor of Agricultural Economics college of Agriculture Pune who was always there to help and guide me as and when needed. His perceptive criticism kept me working to make this project more full proof. I would like to express my profound gratitude and thanks to my Advisory Committee Members Dr. R. K. Rahane Professor of MBA (Agri) College of Agriculture Pune and Prof. P. N. Shendage, Associate Professor of Agricultural Economics, College of Agriculture, Pune I would like to thank Dr. B. N. Pawar, Course Coordinator and Asstt. Professor of MBA (Agri.) for their valuable guidance and suggestions during the project. I express my gratitude towards Mr.Vijay Bode, Senior Area Manager of Nagarjuna Agrichem. Limited who permitted me to get training at Nagarjuna Agrichem. Limited I would like to thank Mr satish altekar development Manager and Mr.Vikas Neharkar area sales representive of Nagarjuna Agrichem limited, for their encouraging and valuable support, and all the staff members of marketing department for their constant guidance and assistance throughout the project. I am greatly indebted to Dr. B.R. Ulmek, Associate Dean, College of Agriculture, Pune, without whose help and guidance this project would not have been completed. Words are insufficient to express my gratitude towards my sample respondents who spared their precious time and sincere thanks to my parents, my brothers ,my sisters my uncle, my friends and God for their support and motivation throughout the project.
Place: Pune Date: / /2011
(Thatawale Babasaheb Bhaurao)
TABLE OF CONTENTS Chapter No.
Title Certificate of Advisory Committee
I
Certificate of Originality
II
Certificate of Industry
III
Certificate of Project Guide
IV
Certificate of Associate Dean
V
Acknowledgement
VI
EXECUTIVE SUMMARY 1
2
Page
INTRODUCTION
VII-XI 1-12
1.1 Concepts and meaning of agrochemicals
1
1.2 History
1
1.3 Type of Pesticide
1
1.4 Importance of Agrochemicals
3
1.5 Broad Categories of Pesticides
3
1.6 Technical Classification
4
1.7 Global Scenario
5
1.8 Indian Scenario
7
1.9 Importance of Study
10
1.10 Objectives of Study
11
1.11 Scope of Study
11
1.12 Agrochemical Business Advantages
11
1.13 Limitation of Study
12
RESEARCH METHODOLOGY 2.1
Selection of sample respondents
13-14 13
2.2 Data collection
13
2.3 Sources of data
14
2.4 Analytical Tools Used
14
3
RESULTS AND DISCUSSION
15-39
3.1 Profile of Nagarjuna Agrichem. Limited.
15
3.2 Profile of sample farmers
22
3.3 Awareness of NACL amongst the farmers
26
3.4 Product promotional strategies of NACL
29
3.5 Awareness of competitors
32
3.6 Profile of Dealer
32
3.7 Study Competitor and there marketing strategies.
34
3.8 Market Share of Nagarjuna In study Area
37
3.9 SWOT analysis of Nagarjuna Agrichem Limited
37
3.10 Findings
38
3.11 Conclusions
39
3.12 Suggestions
39
REFERENCES
i
APPENDIX- I to III VITA
ii to ix x
LIST OF TABLES Sr.No.
Table No.
Title of the table
Page
1
1.1
Type of pesticides
2
1
1.2
Category of Pesticides its product and purpose
3
2
1.3
Pesticide Consumption Pattern
3
3
1.4
Classification of Pesticides usage to Chemical Structure
4
4
1.5
Classification of Pesticides usage to Chemical Structure In value terms in World and India
4
5
1.6
Global Agrochemical Sales by category in 2010
5
6
1.7
World’s top 10 pesticide firms
7
7
1.8
India’s top 10 Agrochemical companies
8
8
1.9
Indian Pesticide Market: 2009
8
9
3.1
Technical Grade Pesticides manufactured by NACL
18
10
3.2
List of Formulated Products.
19
11
3.3
Cropping Pattern of Sample Farmers
25
12
3.4
Product wise awareness of Nagarjuna Agrichem ltd
27
13
3.8
Marketing Strategies of competitor Companies
36
LIST OF CHART Sr.No.
Chart no.
Title of the chart
Page
1
1.1
Global agrochemical sale 2010 by Region
5
2
1.2
Indian agrochemical market 2009
9
3
1.3
World’s Pesticide consumption (kg/ ha)
9
4
1.4
Consumption pattern of pesticides in India
10
5
3.1
Age group of respondents
23
6
3.2
Education status of sample farmers
23
7
3.3
Land holding pattern of sample farmers
24
8
3.4
Type of farming
24
9
3.5
Awareness of NACL
26
10
3.6
Users of NACL
27
11
3.7
Awareness of NACL among the sample farmers
28
12
3.8
Satisfaction level of farmers while using NACL
28
13
3.9
Promotional activities of NACL
29
14
3.10
Recommendations for purchase Nacls product
30
15
3.11
Advertising media
30
16
3.12
Factors considered while purchase the product
31
17
3.13
Major competitor of NACL
32
18
3.14
Dealers Experience
32
19
3.15
Awareness of NACL
33
20
3.16
Product promotional activities of NACL
33
21
3.17
Famous Agrochemical companies.
34
22
3.18
Marketing activities of Agrochemical companies
35
23
3.19
Market Share of NACL
37
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY __________________________________________________________________________ “BRAND AWARENESS OF NAGARJUNA AGRICHEM.LIMITED IN JUNNAR
AND KHED TAHSIL OF PUNE DISTRICT” BY MR. BABASAHEB BHAURAO THATAWALE (Regn. No. 10/370) A candidate for the degree Of MASTER OF BUSINESS ADMINISTRATION (AGRICULTURE) COLLEGE OF AGRICULTURE, PUNE-5 2011 _________________________________________________________________________ __PROJECT GUIDE: Dr. M.N. WAGHMARE. Asstt. Professor of Agril. Economics DEPARTMENT: Agricultural Economics College of Agriculture, Pune. _________________________________________________________________________ __ Importance of study
Agriculture occupies a dominant position in India’s economic structure. The success of the Green Revolution enabled the country to achieve self–sufficiency in food grains production. Over the last five decades the industry has expanded with more than 500 players, making India the second largest manufacturer of basic crop protection chemicals in Asia in volume terms. In terms of turnover the industry is worth of $1.7 bn and given the low rate of consumption there is huge potential for growth waiting to be tapped. The demand for food grains vegetables and fruits is expected to increase significantly in future. Record production of food grains has been possible primarily on account of various inputs used in agriculture namely seeds, fertilizers and pesticides. Agrochemicals form the largest and the most diverse group of chemical compounds. Popularly referred to as pesticides they are mainly used for plant protection and improving crop yields. Every year nearly 30 per cent of the potential of food production valued Rs 150bn are lost due to insects, pests, plant pathogens, weeds, rodents, and birds and in storage. Hence the use of pesticides has become extremely necessary. Besides given the large growing population and scarcity of land available for cultivation, pesticides industry has a vital role to play in the agricultural sector.
India is the most leading country in terms of agricultural production. In order to encourage farmers to take an integrated approach to crop and pest management, incorporating our range of products with good practice to increase yields and promote sustainable agriculture to Nagarjuna Agrichem Ltd. offers customized products and services to help farmers meet these requirements and produce the quality crop that consumers and the food industry demand, This involves training farmers to use our products safely and effectively, and encouraging them to use sustainable agriculture techniques as part of integrated approach to crop management. Finally this study highlighted Awareness of Nagarjuna Agrichem Limited Products amongst the farmers it helps to know the impact of promotional strategies of Nagarjuna amongst the farmers and their effectiveness. It also helps to know the competitor’s promotional activities and market share of company in the study area. Objective of Study
1. To study the awareness of the farmer’s about NACL. 2. To study of different product promotion strategies of NACL. 3. To find out competitors and their market strategies. 4. To estimate market share of Nagarjuna in Junnar and Khed area. Research Methodology
Junnar and Khed tahsil of Pune district was selected purposively because of high potential area for agriculture production. 45 farmers were selected randomly and 20 dealers of company and its competitors were selected for study purpose. Primary data was collected from farmers and companies dealer by survey method with the help of personal interview and specially designed schedule for the study purpose. The collected data were categorized in a systematic way according to need of objectives and then analyzed with the help of simple statistical tools such as percentage method, average method, graphical and tabular method etc for interpretation of appropriate result. Scope of Study The study under the title “Brand awareness Of Nagarjuna Agrichem Ltd in Khed and Junnar Tahsils of Pune District” was specially carried in selected tahsils of Pune district. These tahsils were Junnar and Khed. These selected tahsils were well known for its agricultural production (Specially Vegetables). The farmers of this area are well aware
about crop protection and its importance. The increasing area under various crops shows demand for agrochemicals. The study focuses on promotional activities of the agrochemicals. It gives guidelines to company or new player who wants to decide or accept new promotional strategies. This market research can be help to know consumer perceptions towards the products. We can estimate the consumer behavior on the basis of opinions given by the farmers. Also study makes us about the depth of knowledge of farmers about the pesticide uses Agrochemicals Business advantages in India a) Strong growing domestic market. b) Cost leadership in generic production. c) Well developed basic chemical industries. d) Growing awareness about Environment, safety & health. e) Well established R& D set up. f) Relatively easier registration for exports. Findings 1) In all 87 per cent of farmers were aware about Nagarjuna Agrichem Ltd products. 2) Amongst the aware farmers 91 per cent farmers were users Nagarjuna’s products. 3) Nagarjuna promoted its products through field visits up to 23 per cent , Hand bills 25 per cent, Advertisement and field demonstration 18 per cent, respectively, remaining 16 per cent t exhibition and krishimelas. 4)Nagarjuna’s major competitors were Syngenta ,Bayer, who had cent per cent awareness then BASF having 78 per cent, Tata Rallies 67 per cent, Excel 60 per cent awareness. 5) The marketing strategies of other companies (competitors) were to give more field demonstration and Field visit then advertisement, exhibition. 6) There were cent per cent awareness of Nagarjuna products amongst the Dealers. 7) In the study area Syngenta products were more famous and had more market share than other agrochemical company. 8) Nagarjuna’s some particular products were famous in study area. 9) Nagarjuna’s total market sale was about 1.70 crore with having 4 per cent share in total Agrochemicals in the study area.
Conclusions 1. On the basis of awareness and market share it is concluded that Nagarjuna has good market potential in the study area. 2. The farmers are satisfied with the use of NACL’S product of its quality. 3. The company has provided the less attention on the Field demonstration. 4. Nagarjuna is focusing only on 3 products i.e. Canon, Profex, and Profex super. Suggestions 1. Company should concentrate on marketing of all the other product’s rather than concentrating only products such as Canon, Profex, and Profex super. 2. Design plan to make such community to the famer which would bound them for purchase of company products. Like other companies such as.” Syngenta Krishi shakti” which provides consultancy service to farmer for guiding them and make companies promotion. 3. Suggestion for Brand Awareness a) Involve slogan on pocket. b) Sponsor major events.
BABASAHEB BHAURAO THATAWALE
PAGE NO: 1-39
INTRODUCTION
1. INTRODUCTION 1.1 Concept and meaning A pesticide is any substance or mixture of substance used for preventing, destroying, repelling or mitigating any pest, A pesticide may be a chemical substance, biological agent (such as virus or bacteria), antimicrobial, disinfectant, or device used against any pest .Pest include insects, plant pathogens, weeds, molluses, birds, mammals, fish, nematodes, (roundworms), microbes and people that destroy property, spread or are a vector for disease or cause nuisance. Although there are benefits to the use of pesticides, there are also drawbacks, such as potential toxicity to human and other animals. 1.2 History Since before 2500BC, human has utilized pesticides to protect their crops. First known pesticide was elemental sulfur dusting used in summer about 4,500 years ago. By the 15 th century, toxic chemical such as arsenic, mercury, and lead were being applied to crops to kill pests. In the 17th century, nicotine sulfate was extracted from tobacco leaves for use as an insecticide. In1939, Paul Muller discovered that DDT was a very effective insecticide. It quickly became the most widely used pesticide in the world .In the 1940s manufactures began to produce large amounts of synthetic pesticides and their use became widespread. Some source considers the 1940s and 1950s to have been the start of the “pesticide era.” Pesticide use has increased 50- fold since 1950 and 2.3 millions tones (2.5 million short tons) of industrial pesticides are now used each year .75 percent of all pesticides in the world are used in developed countries, but their use in developing countries is increasing in the 1960s, it was discovered that DDT was preventing many, fish eating birds from reproducing. This was a serious threat biodiversity. The agricultural use of DDT is now banned under the Stockholm convention on persistent Organic pollutants, but it is still in some developing nations used to prevent malaria and other tropical diseases by spraying on interior walls to kill or repel mosquitoes. 1.3 Type of pesticides: Pesticides are grouped or classified according to the pests they control the word ending or suffix -cide means to kill, the following types of pesticides are used to kill specific kinds of pests:
Table1.1 type of pesticides Sr.No Type of pesticide 1
Algaecides
Purpose Control algae in lakes, canals, swimming pools, water tanks and other sites.
2
Asti fowling agents
Kill or repel organisms that attach to underwater surfaces, such as boat bottoms.
3
Antimicrobials
Kill microorganisms (such as bacteria and viruses)
4
Attractants
Attract pest (for example, to lure an insect or rodent to a trap).
5
Biocides
Kill microorganisms
6
Disinfectant and
Kill or inactivate diseases-producing microorganisms
sanitizer
on objects
Fungicides
Kills fungi (including blight, mildews, molds, and
7
rusts). 8
Fumigants
Produce gas or vapour intended to destroy pests in building or soil.
9
Herbicide
Kill weeds and other plants that grow where they are not wanted
10
Insecticide
Kill insect and other arthropods
11
Miticides /Acracide
Kill mites that food on plants and animals
12
Microbial pesticides
Microorganisms that kill, inhibit, or out complete pests, including insects or other microorganism.
13
Molluscides
Kill Snail and sluges
14
Nematicides
Kill nematodes (microscopic, worm like organism that feed on plant roots).
15
Ovicides
Kill eggs of insect and mites
16
pheromenes
Biochemicals used to disrust the mating behavior of insect
17
Repellent
Repel pests, including insect (such as mosquitoes) and birds
18
Rodenticides
Control rodents
1.4 Importance of Agrochemicals Agrochemicals form the largest and the most diverse group of chemical compounds popularly referred to as pesticide they are mainly used for plant protection and Improving crop yields. Every year nearly 30per cent of the potential of food production valued Rs 150bn are lost due to insects, pest, plant pathogens, weeds, rodents, and birds and in storage. Hence the use of pesticide has become extremely necessary. Beside given the large growing population and scarcity of land available for cultivation, pesticide industry has a vital role to play in the agriculture sector. 1.5 Broad Categories of pesticides 1.5.1Broad categorization of the Pesticide Industries The industry broadly classified into different segments like insecticide, fungicides and herbicide and the main product and their use is given below as follows Table 1.2 Category of Pesticide, its major products and purposes Nature Insecticide Fungicide Herbicide / Weedicide Nemanticides Rodenticide Fumigants
Major product Monocrotophos,phosphamidon, Parathion,Endosulphan,Quinalphos Copper Oxychloride, Nickel Chloride, mancozeb Anilphos,pendamethalin, paraquat, naropamide Zinc phosphide, Aluminum phosphide
Purpose To kill The Insect To Eliminate Fungus To Remove Unwanted Plants / weeds To kill Pest In Plant roots and to eliminate rodents
1.5.2 Global and domestic pesticides consumption pattern Table 1.3 pesticide consumption patterns. Nature Insecticides Fungicides Herbicides Others
Global share (%) 29 17 48 6
Domestic Share (%) 76 13 10 1
In above table it clearly shows that consumption of insectide is more than other pesticides in World and in India also. In Worlds total consumptions is of insecticide is 29 per cent where India it has 76 per cent it indicate that India use more insecticide as compare to world in terms of percentages, and use less herbicide as compare to world in
term of percentage, after insecticide in India fungicide is used more i.e. about 13 per cent of total consumptions of pesticide. 1.6 Technical Classification Based on Usage: The agrochemical compounds can also be classified into organophosphates, synthetic pyrethroids, organ chlorines and carbamates. Recently bio-pesticides, currently organophosphates and synthetic pyrethroids constitute nearly 70 per cent of the pesticides produced in the country. Table 1.4 the following table classifies pesticides usage according to the chemical structure as follows: Nature
Product classification
Organo-chlorines
DDT, BHC
Organo-phosphates
Monocrotophos
Synthetic Pytheroids
Decis
Bio-pesticides and others
Neem pest
Table 1.5 Classifies pesticides usage according to the chemical structure in value terms of World and India: Nature
India (%)
World (%)
Organo-chlorines
16
6
Organo-phosphates
50
37
Synthetic Pytheroids
19
22
Bio-pesticides and others
15
35
In above table it shows that organo – phosphates structure pesticide usage is more in both World and in India, and other structure are varies in usages in table 1.3 there is product classification organo-chlorides is used 16 per cent in India which is worlds 6 per cent i.e. DDT, BHC, organo- phosphates i.e. Monocrotophos which is used 50 per cent in India from 37 per cent of world.
1.8 Global Scenario 1.8.1 Table 1.6 Global Agrichemical sales by category in 2010 Global agrochemical sales by category ($ millions ) Category
2009
% change
2010
Herbicides
17,872
+2.2
18,265
Insecticides
10,201
+3.5
10,558
Fungicide
10,241
+2.7
10,518
Other
1,847
+3.9
1,920
TOTAL
40,162
+3.4
41,528 Source: cropnosis
Global Agrichem sale would raised by +3.4 in 2009 to 2010 it was $ 40,162Million, in 2009 which raised to $ 41,528Millions Growth observed in all product categories of pesticide and also from all regions
Global sale of herbicide raised by 2.2per cent
i.e.$17,872Millions to $18,265 million, with respect to the product category. The major percentage change in Insecticide sale as compare to other category is +3.55 that is $10,201million in 2009 to $ 10,558million. As concern to fungicide there is +2.7 5 increase in sale over the previous year. Highest market sale in both 2009 and 2010 year is herbicide. Far Latin East, 9,272 America, 9,29 8
Rest of world, 2,680
North America, 9,94 3
Europe, 10,33 9
Chart 1.1 Global Agrochemical Sale 2010 by region
Europe would remain the region with the highest sales, with growth of 3.8 per cent leading to $ 10,339 million of sales. The region would account quarter of total sales. Western Europe would account for some 85 per cent of sales in the region North America is has to maintained its position as the second largest market, with sale s expected to go up
by 2.3 per cent i.e. to $9,943million.Latin America would be on a high growth curve going up by 6.2 per cent to $ 9,272million.the far east region would be marginally behind, increasing by 1.7 per cent to $9,272million. The rest world would make up remaining 6.5 per cent share either sale rising by 2.7 per cent to $ 2,680million. According to the report, the world’s six largest agrochemical manufacturers, who control nearly 75 per cent of global pesticide market, are also seed industry giants. Bayer : the world’s biggest agrochemical company is also the world’s seventh biggest seed company, Syngenta : the world’s second largest agrochemical company is also world’s second largest seed company, BASF The world’s fourth Largest Agrochemical company Monsanto : the world’s fifth largest agrochemical company &world’s largest seed company, DuPont : world’s Sixth largest Agrochemical company. Table 1.7 World’s Top 10 Pesticide firms Agrochemical Company
Sale 2008 (US$ Millions)
Market share (%)
1.Bayer (Germany)
7,458
19
2. Syngenta(Switzerland)
7,285
19
3.BASF(Germany)
4,297
11
4.Dow Agro science (USA)
3,779
10
5. Monsanto (USA)
3,599
9
6.Dupont (USA)
2,369
6
7.Makhteshim(Israel)
1,895
5
8.Nufarm(Australia)
1,470
4
9.Sumitomo chemical
1,209
3
10.Arysta life science
1,035
3
TOTAL
34,396
89
Source: Agrow World Crop Protection News, August 2008 The world’s top 10 agrochemical companies contributes total 89 per cent of the global agrochemical market share The worldwide market of pesticide was US$40,162 Millions in 2009 +Up 3.4 per cent over the previous year in 2010 is up to $ 42,528 million.
1.9 INDIAN SCENARIO. Indian Agrochemical Industry is the fourth largest producer of agrochemicals globally, after United States, Japan and China. The agrochemicals industry is a significant industry for the Indian economy. The Indian agrochemicals market grew at a rate of 11per cent from USD 1.22 billion in FY08 to an estimated USD 1.36 billion in FY09. India’s agrochemicals consumption is one of the lowest in the world with per hectare consumption of just 0.48 Kg compared to US (4.5 Kg/ha) and Japan (11 Kg/ha). In India, Cotton accounts for the maximum share of pesticide consumption, around 27 per cent after paddy (20per cent). Indian population is increasing and the per capita size of land decreasing, the use of pesticides in India has to improve further. Besides increasing in domestic consumption, the exports by the Indian Agrochemicals Industry can be doubled in the next four years if proper strategies and sophisticated technologies are adopted by the industry. In India, there are about 125 technical grade manufacturers (10 multinationals), 800 formulators, over 145,000 distributors. 60 technical grade pesticides are being manufactured indigenously. Technical grade manufacturers sell high purity chemicals in bulk (generally in drums of 200-250 Kg) to formulators. Formulators, in turn, prepare formulations by adding inert carriers, solvents, surface active agents, deodorants etc. These formulations are packed for retail sale and bought by the farmers. The Indian agrochemicals market is characterized by low capacity utilization. The total installed capacity in financial year 2009 was 146,000 tones and total production was 85,000 tons leading to a low capacity utilization of 58 per cent. The industry suffers from high inventory (owing to seasonal & irregular demand on account of monsoons) and long credit periods to farmers, thus making operations ‘working capital’ intensive. India due to its inherent strength of low-cost manufacturing and qualified low-cost manpower is a net exporter of pesticides to countries such as USA and some European & African countries. Exports formed ~50 per cent of total industry turnover in the year 20008 and have achieved a Compounded Annual Growth Rate (CAGR) of 29per cent from the year 2004 to 2008
Table1.8 India’s Top 10 Agrochemical Companies Rankings
Name of the Company
Sales (Rs.Million)
1
Bayer Crop Science
17241.06
2
Syngenta India Ltd
16953.09
3
BASF India
13816.9
4
Rallis India
10751.34
5
Monsanto India
7101.35
6
United Phosphorus
7
NagAgriChem
6503.14
8
Excel Crop care
6204.07
9
Dhanuka Agritech
4081.36
10
Advanta India
3513.36
6951
Source: PMFI repot 2008 Above Table 1.7 depicts that Bayer ranks first among in the Indian agrochemical companies with revenue of Rs 17241.06 million. After that Syngenta, BASF, Rallies India is big players in agrochemical market, while Nagarjuna Agrichem Ltd ranks 7th with the revenue of Rs 6503.14 millions in year 2007. Table 1.9 Indian Pesticide Market 2009 A) Agriculture
Mill USD
Growth over 2008 (%)
Insecticide
680
0.2
Fungicide
220
1.8
Herbicide
250
2.1
Other
30
5.0
Total
1180
0.7
B) Non –Agriculture (public
350
health/household) C) Export (tech/ form.+
700
Intermediate) Grand Total
2230 Source: Crop cropnosis
As compared to year 2008 use of herbicide and fungicide increases more than other categories of pesticides total Indian pesticide market in year 2009 is USD 2230 million include agriculture and non agriculture also Export pesticides. 4% plantation,pulses/ other 17%
10%
Cotton Fruit & vegetables
21% Rice
27%
Wheat & other Cereals 21%
soyabean ? Gnut
Chart 1.2Indian Agrochemical Market 2009 Indian pesticide market is shrinking due to BT cotton about 27 per cent pesticide used in Bt Cotton , Bt Cotton occupied nearly 76 per cent cotton cropped area in 2009. 18 16
17
14 12 10
10.7
8
10.5
6
6.6
5.8
4
4.5
2 0 Taiwan
Japan
Holland
South Koria
France
USA
0.48 India
Chart 1.3Worlds Pesticide Consumption (kg/ ha) India uses only less than 2 per cent Pesticide, where as produces 16 per cent of the world’s food grains Production from chart Taiwan has highest pesticide consumption i.e.17 kg/ha where as India consume only 0.48 kg/ha pesticide.
Andha… Punjab Maharashtra Karnataka Haryana Gujarat West Bengal Tamil Nadu Others 0
24.05 16.02 8.63 8.24 7.37 6.83 5.21 5.09 18.56 5
10
15
20
25
30
Chart1.4 State wise pesticide consumption in of India (%) Source: Crop Life India Mumbai. In above Chart there are a consumption percentage of pesticides in different State of India From this chart it revealed that 8 states consume about up to 81per cent pesticide, in which Andhra Pradesh highest user of pesticide and Maharashtra was in 3rd in position of using pesticide. 1.10 Importance of study Agriculture occupies a dominant position in India’s economic structure. The success of the Green Revolution enabled the country to achieve self–sufficiency in food grains production. Over the last five decades the industry has expanded with more than 500 players, making India the second largest manufacturer of basic crop protection chemicals in Asia in volume terms. In terms of turnover the industry is worth of $1.7bn and given the low rate of consumption there is huge potential for growth waiting to be tapped. The demand for food grains vegetables and fruits is expected to increase significantly in future. Record production of food grains has been possible primarily on account of various inputs used in agriculture namely seeds, fertilizers and pesticides. Agrochemicals form the largest and the most diverse group of chemical compounds. Popularly referred to as pesticides they are mainly used for plant protection and improving crop yields. Every year nearly 30% of the potential of food production valued Rs 150bn are lost due to insects, pests, plant pathogens, weeds, rodents, and birds and in storage. Hence the use of pesticides has become extremely necessary. Besides given the large growing population and scarcity of land available for cultivation, pesticides industry has a vital role to play in the agricultural sector.
India is most leading country in terms of agricultural production. In order to encourage farmers to take an integrated approach to crop and pest management, incorporating our range of products with good practice to increase yields and promote sustainable agriculture. Nagarjuna Agrichem Ltd Care offers customized products and services to help farmers meet these requirements and produce the quality crop that consumers and the food industry demand. This involves training farmers to use our products safely and effectively, and encouraging them to use sustainable agriculture techniques as part of integrated approach to crop management. Finally this study highlighted awareness NACL’s products amongst the farmer. It helps to know the impact of promotional strategies of NACL amongst the farmer and their effectiveness. It also helps to know the competitors promotion activities and point out consumer behavior while purchasing agrochemicals. 1.11 Objectives of Study 1. To Study the Awareness of the Farmer’s About NACL. 2. To Study the Different Product Promotion Strategies of NACL. 3. To Find out Competitors and Their Market Strategies. 4. To Estimate Market Share of Nagarjuna in Junnar and Khed Area. 1.12 Scope of Study The study under the title “Brand awareness of Nagarjuna Agrichem Ltd in Junnar and Khed Tahsils of Pune District” was specially carried in selected tahsils of Pune district. These tahsils were Junnar, and Khed. These selected tahsils were well known for its agricultural production (Specially Vegetables). The farmers of this area are well aware about crop protection and its importance. The increasing area under various crops shows demand for agrochemicals. The study focuses on promotional activities of the agrochemicals. It gives guidelines to company or new player who wants to decide or accept new promotional strategies. This market research can be help to know consumer perceptions towards the products. We can estimate the consumer behavior on the basis of opinions given by the farmers. 1.13 Advantages of Agrochemical Business in India a) Strong growing domestic market. b) Cost leadership in generic production. c) Well developed basic chemical industries. d) Growing awareness about Environment, safety & health.
e) Well established R& D set up. f) Relatively easier registration for exports. g) Strong Institution to support R&D/ personal needs universities / IITs/ UDCT / IICT 1.14 Limitation of Study The following limitations were experienced during the study. 1. Time limit: Allotted time was inadequate to study the various aspect of the problem. 2. Secrecy of the organization: Due to the secrecy of the organization, confidential matters were not given. 3. Financial limitations: The lack of financial assistance for research work also becomes a limitation to the study. 4. Number of consumers: The study was limited to an extent because it comprised of only of 45 farmers, 20 dealers. 5. It is also not possible to approach each every customer and cover all the area. 6. Since the study was limited to a specific period (45 days), further quantitative and qualitative research on the topic was not possible.
**************
RESEARCH METHODOLOGY
2. RESEARCH METHODOLOGY 2.1 Selection of sample respondents Methodology used for the research indicates the type and size of sample used in the research. The methods and procedure used for analyzing the data. Therefore, it helps the researcher not only in specifying method of analysis and also explains the concepts to be studied. 2.1.2 Location of the Study and Research Design The study was conducted in Junnar & Khed Tahsils of Pune district. Sampling design used for the study was both the purposive and random sampling design.
Map showing location of study area 2.2
Data Collection
2.2.1
Method of sampling The sampling method used for project study was purposive. The sample was
selected in such a way that maximum possible study area should be covered.
2.2.2 Sample Size As it is not possible to survey the entire target population, 65 respondents which consisted of 45 farmers and 20 dealers of company were selected for the study. The farmers were selected randomly, whereas, dealers were selected purposively due to their limited number and authorized dealership. Sampling design – Both Purposive and Random sampling. The sample size will consists of Farmers-45= From Junnar tahsils 25, Khed tahsils 20. Dealers-20 = From Junnar tahsils 12, Khed tahsils 08. 2.2.3 Research Instrument The intension of survey was to find the awareness, effectiveness of promotional strategies of NACL and its competitors in study area. The research instrument used for project was designed structured schedules references which are given in appendix i-ii 2.3
Sources of Data
2.3.1 Primary Data The primary data was collected by survey method with the help of specially designed schedules by conducting interview and personal observation from the sample respondent. 2.3.2 Secondary Data Secondary data is collected from the books, periodical, journals, office records, papers, company records, internet etc. 2.4
Analytical Tools Used The collected data was analysed according to the objectives of study by using the
tools such as percentages, averages, tabular, graphical methods.
**********
RESULTS AND DISCUSSION
3. RESULTS AND DISCUSION 3.1 Profile of Nagarjuna Agrichem Ltd. Nagarjuna Group is truly an enterprise on the move. The foundation of the Group was laid over two decades ago by technocrat entrepreneur Shri. KVK Raju. He started with an initial investment of US $ 1.2 million and sowed the seeds of what is now one of the fastest growing industrial houses in India. In addition to a growing presence in Agribusiness, the Group has made significant investments in core sectors like Refining, Power generation and Life Sciences. Today, the asset base of Nagarjuna Group is over US $ 2.5 billion. The Agribusiness Division of Nagarjuna is committed to enhancing the availability of quality food supply for the future by developing products and services that contribute to increasing farm productivity. The Agribusiness Division of the Nagarjuna Group consists of the following business units:•
Plant Nutrition
•
Crop Protection
Nagarjuna provides a complete range of cost effective agricultural inputs. Nagarjuna's products and services enjoy nationwide reputation in India among the farming community due to their consistent high quality. 3.1.1 Company Profile - NAGARJUNA AGRICHEM LIMITED (NACL) Date of
: 1993
Establishment Revenue
: 157.49 (USD in Millions)
Market Cap
: 2183.3249 (Rs. In Millions)
Corporate Address
: Plot No 61, Nagarjuna, Hills, panjagutta Hyderabad Andhra Pradesh. www.nagarjunagroup.com
Management Details : Chairperson –Nitish K Sen Gupta
: MD- GS Raju : Directors-AS Pradha Saradhi, A S Saradhi, Ashok Muni, C M Ashok Munni D Rang Raju, G S Raju, K Lakshmi Raju, K Rahul Raju, K S Raju, K Lakshmi Raju, K Raghuraman, K Rahul Raju, K S Raju, N Vijayaraghavan, Nitish K Sen Gupta, Nitish K Sen Gupta, P K Mallik, P K Mallik, R K S Prasad, R S Nanda, Sudhakar Kudva, Sukhendu Ray, Suresh Business Operation : Pesticides & Agrochemicals Background
Nagarjuna Agrichem (NACL), a Nagarjuna Group
company was established in 1994 with an investment of $7 million for producing Monocrotophos Technical. NACL has since grown substantially and now manufactures a comprehensive range of pesticide technicals, formulations and custom manufactured fine chemicals. All the manufactured products conform to international quality standards and specifications. Financials
: Total Income - Rs. 6589.796806 Million (year ending Mar 2010) Net Profit - Rs. 597.565295 Million (year ending Mar 2010)
Company Secretary : Suresh Babu 3.1.2Company History NACL was established in 1994 for producing Monocrotophos Technical. NACL has since grown substantially and now manufactures a comprehensive range of pesticide technicals, formulations and custom manufactured fine chemicals. All the manufactured products conform to international quality standards and specifications. NACL have adequate capacities, state-of-the-art infrastructure, skilled experienced manpower and technical absorption capabilities. In fact, Custom Synthesis and manufacturing are one of NACL's inherent capabilities. The production lines are designed for a quick change over. NACL also have a Custom Synthesis and Toll Manufacturing Division, which caters to the requirements of reputed overseas customers. NACL has one of the largest Dealer Network spread across India, with marketing and sales offices in addition to an extensive Warehousing & Logistics Infrastructure to handle operations in 20 Indian States. NACL has tie-ups with large Indian Agrochemical Majors and MNC’s for the domestic and export markets. The Current Gross Annual Sales
of the Organization is approximately US $ 145 million. Nagarjuna operate one of the most modern and comprehensive Technical Agrochemical manufacturing plants, situated in Srikakulam district of Andhra Pradesh, India. — — — — — — — — — — — — — — —
Singapore USA Italy Japan Hong Kong Taiwan Colombia Belgium Saudi Arabia Thailand Kenya Germany France Egypt Sri Lanka
Fig3.1 NACL’s foot-prints across the globe Nagarjuna's growing global presence is reflected in its exports. Today Nagarjuna is among the few companies in India exporting pesticide technicals and formulations to as many as 24 countries including Australia, Bangladesh, Belgium, Brazil, Colombia, Egypt, France, Germany, Indonesia, Italy, Ivorycoast, Japan, Malaysia, Netherlands, Nigeria, Saudi Arabia, Singapore, Sri Lanka, Switzerland, Taiwan, Tanzania, Thailand, USA and Yemen. To meet the growing demand in the international markets and improve its export business, the Group is constantly introducing new generics and formulations. To strengthen this process, Nagarjuna has generated complete packages of Chemistry, Toxicology, Residues and Bioefficacy data for all its manufactured techincals. 3.1.3 Current Position of Nagarjuna in Market Nagarjuna Agrichem net profit rises 15.96 per cent in the March 2010 Net profit of Nagarjuna Agrichem rose 15.96 per cent to Rs. 12.86 crore in the quarter ended March 2010 as against Rs. 11.09 crore during the previous quarter ended March
2009. Sales declined 1.93 per cent to Rs. 140.02 crore in the quarter ended March 2010 as against Rs. 142.77 crore during the previous quarter ended March 2009. For the audited full year, net profit rose 21.32 per cent to Rs. 59.76 crore in the year ended March 2010 as against Rs. 49.26 crore during the previous year ended March 2009. Sales rose 7.43 per cent to Rs. 650.31 crore in the year ended March 2010 as against Rs. 605.36 crore during the previous year ended March 2009. 3.1.4Quality Quality at Nagarjuna Agrichem is a result of consistent efforts. Naturally, each of its products ranks with the best in the world. The most stringent quality control tests mark every stage of manufacturing - from raw material sourcing to processing and packaging. Along with in-house norms and standards in eco-friendly operations and safe handling, we have the capabilities to standardize products and packaging to meet the prevailing regulatory demands of any country of the World. This primary focus on quality is the key to the wide acceptance for Nagarjuna products in many countries across the Globe. 3.1.5 Manufacturing and R & D NACL has adequate capacities, state-of-the-art infrastructure, and skilled experienced manpower and technology absorption capabilities. The production lines are designed for quick change over to also undertake Toll manufacturing adhering to the highest international standards and specifications. Table 3.1The Technical Grade Pesticides manufactured by NACL Insecticides
Herbicides
Fungicides
Profenophos
Pretilachlor
Propiconazole
Dichlorovos.
Myclobutanil
Acephate
Tricyclozole
The process Development Skills of NACL are comparable to the Best Indian Companies. It is our belief that the R & D / Process Development Department of NACL is the second largest of any Indian Agrochemical Company in terms of size and scope of operation. Research and Development plays a critical role in NACL. The R&D division carries out work on process development of technical and intermediates, custom synthesis, process improvement, application research and basic research.
3.1.6 PRODUCT Table 3.2 List of Formulation Products FUNGICIDE Cabendazim 5% WP Cabendazim12%+ Mancozeb63% WP Cymoxanil 8%+Mancozeb64%WP Hexaconazole 5% EC Mancozeb 75% WP Myclobutanil 10 % WP Propiconazole 25 % E Tricyclazole 75% WP Thifluzamide 24% SC Validamycin 3 % L HERBICIDE Atrazine 50% WP Ammonium Salt of Glyphosate 71% SG Bensulfuron methyl 0.6% +Pretilachlor 6% Clodinafop Propargyl 15 % WP Glyphosate 41% SL Metsulfuron Methyl 20% WP Pretilachlor 50% EC Pretilachlor 30.7% w/w or 30% w Paraquat Dichloride 24% INSECTICIDE Acephate 75% SP Acetamiprid 20% SP Buprofezin 25% SC Carbofuran 3% CG Cartap Hydrochloride 4% G Cartap Hydro Chloride 50% SP Chlorpyrifos 20% EC Clothianidin 50 % WDG Chlorpyrifos 50% EC+ Cypermethrin 5% EC Dichlorvos 76% EC Endosulfan 35% EC Emamectin Benzoate 5% SG (BPMC) Fenobucarb 50% EC Fipronil 5% SC Imidacloprid 17.8% SL Lambda Cyhalothrin 2.5% EC Lambda Cyhalothrin 5% EC Milbemectin 1 % EC Monocrotophos 36% SL Phorate 10%CG Profenofos 50% EC Profenofos 40% + Cypermethrin 4% EC Spinosad 45% SC
TRADE NAME ZEN NAGARJUNA COMBIPLUS FONT NAGARJUNA MASS ZEB INDEX RESULT SIVIC VISTA RHIZOCIN TRADE NAME SURYA GLOBUS STRONG ERAZE STRONG POINT GLOBUS SL DOT ERAZE -N ERAZE-N RHINO TRADE NAME PACE NAGARJUNA ENNOVA BENJ FURY SANVEX-4G SANVEX SP FORCE DANTOP CANON DASH SPEED NAGARJUNA TRUST MERLIN TASK NAGARJUNA MIDA WARRIOR WARRIOR PLUS MILBEKNOCK MONOCROWN NAGARJUNA PHORATE PROFEX PROFEX SUPER CONSERVE
Nagarjuna’s Some famous products
Use: Control of White Aphid.
Use: Controlling of borer.
Use: for controlling red rot.
Dose: 400 ml/200 liter of Water. Dose: 400ml/200 liter of Water. Dose: 120gm/ 200 liter
Use: for controlling wilt Dose: 400 gm/500gm/ 200 liter water
Use: for controlling sucking pest Dose: 18-24 gm per
3.1.7 PRICE The products offered by Nagarjuna’s are quality oriented and also has Moderate not so high price. Their product range consists of the best that is there to be offered in the market due to their immense R&D activities and emphasis on technology. The farmers too believe in the quality of their products and price comes secondary to such quality products. 3.1.8 PLACE (PHYSICAL DISTRIBUTION)
Nagarjuna makes very little use of middlemen as they strongly believe in “personal selling”. Their general channel of distribution is Company Sales person
Dealer/Retailer
Farmer Nagarjuna have strict policies when it comes to offering credit to middlemen. Since the company salespersons are in very close contact with the farmers they can offer timely supply of their products.
3.1.9 PROMOTION Nagarjuna is a newly formed company it is currently engaging itself in a lot of marketing activities. As earlier mentioned Nagarjuna very strongly believes in personal selling, that is, creating demand at the grassroots level. Their target audiences are the farmers and also opinion leaders like village chiefs or teachers (as they are educated). They use media like “direct mailers” to inform the farmers about their products and schemes, which, helps in creating a good rapport with the farmers and they distinguish Nagarjuna from rest of the companies. Press or print media is used very judiciously since many of the farmers are not educated. For print advertising popular regional newspapers or trade journals are used. Radio is a very essential media since it has a wide reach. Audio advertising is also done through vehicles, which announce the product and its features by way of catchy phrases. Other media used are wall paintings, hoardings and point of purchase media like posters. Another effective way of marketing is “word-of-mouth publicity”. The company targets influencers like village sarpanch or a very prosperous farmer who enjoys very good reputation among the farmers. These people inform other farmers about the company and its products. 3.2 PROFILE OF SAMPLE It is essential to know the agricultural profile of the selected sample in study area, before one would go in detail rate of aspects. In this chapter, information regarding to age of farmers, their education level, cropping pattern, pesticide use, awareness regarding to NACL pesticides product ware collected, analyzed and presented as follows; 3.2 A. PROFILE OF FARMER 3.2.1 Demographic feature of sample farmers Profile of sample includes demographic and geographic factors which indicate there level of understanding and awareness of farmers about various agrochemical products. a. Age Age is a very important factor which affects the behaviour and influence people choice, thinking and risk taking ability differ with age group person.
N=45 <30 years
42% 25%
30-40 years >40years
33%
Chart 3.1 Age group of respondents The above chart 3.1 clearly shows that the age of more than 40 years age group of sample farmer have majority in percentage and the age group of less than 30 is minor in percentages of doing farming. b. Education In the decision making process education plays a key role, preference for the different attributes of the product is change with the education of the people. Education affect on the behaviour of the farmer. So it is very important to analyse the educational factor in the study. The following Chart 3.2 shows the social profile of the farmers in the study area. N=45 7% Primary
13%
33% Secondary Higher secondary
25%
Graduate 22% Post graduate Chart 3.2 literacy level From Chart.3.2 it will notice that about 7 per cent people are highly educated 13 per cent farmer are graduate, about 22 per cent farmer educated up to SSC , major number i.e. 33 per cent farmer are just completed their primary education and remaining 25 per cent farmer completed their higher secondary education.
c. Land Holding To know the economic status of a farmer, it is essential to study the land holding of selected sample farmers. Pattern of land holding affects the cropping pattern of the farmer. Usually marginal, small farmers are more involved in vegetable production and large farmers are more interested in growing cash crops. The average land holding of sample farmers is depicted in chart 3.3 N=45 20%
7% Marginal (up to 1ha)
31%
Small (1-2 ha) 42%
Medium (2.01-4.0ha) Large(more than 4.01ha)
Chart 3.3 Land holding pattern of sample farmer From the chart 3.3 it can be observed that out of 45 sample farmers 7 were having marginal land holding i.e. up to 1 ha. 14 farmers were having small land holding i.e. 1 to 2.0 ha. While 42 per cent farmers were from medium size group having 2.01 to 4.0 ha land holding. From the table it can be revealed that majority of sample farmers were having medium size land holding. d. Type of Farming In the below chart 3.4 it clearly show that all land under water not depend on rain about 71 per cent land is fully irrigated and remaining 29 per cent land are partially irrigated that’s reason in that are vegetables are more and also sugarcane we see in above.
29%
Irrigated 71%
Chart 3.4 Type of farming of selected sample
Partially Irrigated
e. Cropping pattern of farmer Cropping pattern of the farmers is the mirror of his economy. Considering the importance of cropping pattern, it is essential to know the share of prominent crops in the study area. As the study was the attempt made to find out the share of various crop in gross cropped area. Table3.3Cropping Pattern of Farmer Crop Season Kharif Tomato Cabbage Cauliflower Bringal Soyabean Ground nut Fodder crop Bean TOTAL A Rabi Onion Potato cucumber Wheat Fodder crop Follow TOTAL B Summer Coriender Fenugreek Cauliflower Bajra Fodder crop follow TOTAL C Perennial Sugarcane Grape Banana TOTAL D GCA (A+B+C+D)
Area under crop (ha)
Total average area under crop
Irrigated
Unirrigated
% to gross cropped area
19.07 5.5 4.3 7.4 3.3 2.5 10.5 4 56.57
0.42 0.12 0.09 0.16 0.07 0.05 0.23 0.08 1.22
0.42 0.12 0.09 0.16 0 0 0.23 0.08 1.1
0 0 0 0 0.07 0.05 0 0 0.12
7 2 1.5 2.66 1.16 0.81 3.62 1.32 20.07
15.7 9.8 7.4 17.3 4.37 2 54.57
0.33 0.21 0.16 0.38 0.09
0.33 0.21 0.16 0.38 0.09
0 0 0 0 0
5.5 4.5 2.66 6.33 1.5
1.17
1.17
0
20.49
7.9 5.8 6.7 17.2 13.3 5.67 50.9
0.17 0.12 0.14 0.38 0.29
0.17 0.12 0.14 0.38 0.29
0 0 0 0 0
2.83 2 2.32 6.33 4.8
1.1
1.1
0
18.28
88.1 17.1 7.7 112.9
1.96 0.38 0.17 2.51
1.96 0.38 0.17 2.51
0 0 0 0
32.53 5.83 2.8 41.16
274.94
6
5.88
0.12
100
Cropping Intensity
=
Gross cropped area * 100 Net cropped area 274.94 *100 169.47
= 162.23%
Average Net Cropped Area = Total Area under Crop No of farmer =
169.47
= 3.76
45 It is observed from the table 3.5 that, Sugarcane had dominant place in perennial cropping pattern of sample farmers. In kharif Season Tomato was major crop, Rabi wheat was the prominent crop in Rabi season.The cropping intensity was to the tune of 162.23 per cent, Total area was 178.36 ha net cropped area was 169.47 ha 3.3 Awareness of farmer about Nagarjuna Agrichem Ltd. Awareness is the first step towards course of action i.e. trial. For knowing the consumer behaviour about Nagarjuna we should know the awareness about the product among the farmer community. Total farmer were selected as 45 for knowing the awareness about the product, among that 39 farmer were aware about the Nagarjuna Agrichem and remaining 06 farmers unaware about the Nagarjuna product.
Total selected sample =45 Aware 39 Unaware 06
13%
Yes 87%
No
Chart 3.5 Awareness of NACl In above pie chart it mentioned that about 87 per cent farmer aware about Nagarjuna and 6 people from sample that is 13 per cent who not known about the Nagarjuna majority group is aware about the company product.
The awareness is the first step towards course of action i.e. trial for knowing the consumer behavior towards agrochemical of NACL , one should know the awareness about the product to decide the future marketing strategy to promote companies products. I obtain information regarding the awareness about Nagarjuna’s Agrichem Ltd. Company; Table3.4 Product wise awareness of Nagarjuna Agrichem Ltd.
N=39
Canon
Profex
Profex Super
I Max
Index
Sivic
No. of Respondents
39
35
30
24
24
21
Percentage
100
85
77
62
62
54
Particulars
In above table it shows that awareness of canon is 100 per cent from aware farmer all know the canon after then profex awareness is high and sivic having low awareness. 3.3.1 User of Nagarjuna product: Farmer’s perception about the Nagarjuna Agrichem Limited
No 9%
Total selected sample =45 Aware 39 Unaware 06 Aware user 35 Aware but non user 04 yes 91%
Chart 3.6 Users of Nagarjuna Agrichem Ltd
The Chart reveals that out of 39 aware sample farmers from all size groups, 35 farmers were using the Nacls product, while 04 farmers were not using Nacls product91.00 per cent farmers were users and 09 per cent farmers were aware but non users respectively.
3.3.2Awareness of NACLproducts among farmers N=45 40 30 20 10 0 Aware
Unaware
Aware user Aware but non user Chart 3.7Awareness of NACL Among the Farmers In above chart there is awareness of Nagarjuna’s product we say that about 39 farmers are aware about Nagarjuna’s Product from aware there are 35 farmers actual user of Nagarjuna product, there are 4 farmers are unaware and non user of Nagarjuna’s product 3.3.2Satisfaction level Moderately satisfied 20%
N=35
Highly Satisfied 80%
Chart 3.8Satisfaction level of sample farmers by using NACL product
In any business the customer’s satisfaction is the primary aim for increasing sell and achieves a good position in the market. In pesticides market it is difficult to increase the satisfaction level of farmers because large no of competitors in the market and this competitors have same products in the market.
In Chart3.8 show that out of 35 sample farmer their satisfaction level is good as concern with using the product of Nagarjuna’s About 80 per cent farmer are highly and 20 per cent are moderately satisfied. 3.4 Product promotional strategies of NACL. 16%
23%
N=39 Exibition,Krishimela Field Demonstration 18%
Advertisements Hand Bills Field Visits By company Person
25%
18% Chart 3.9 Promotional Activity of NACL Promotional activity is major factor to capture high market share there are various Marketing activity Nagarjuna follows in study area about 16 per cent farmers opinion that Nagarjuna took Exhibition and krishimelas,18 per cent Farmer said that field demonstration, no any wall painting activity is there for the promotion of the Nagarjuna product , advertisement through pamphlets, posters banner are about 18 per cent promotion through hand bills which are major one that is 25 per cent and last one is field visit by company person which give direct impact on farmer’s perception is 23 per cent. Following some are promotional strategies would adopted in stuy area by Nagarjuna 1) Arrange postering. 2) Arrange road show programme. 3) Arrange mega farmer meetings. 4) Arranging sendy counters on weekly market day. 5) Make litreature of product information for farmer. 3.4.1 Product purchase behaviour on recommendation. Following discussion of farmer’s intention of purchasing NACL product shows impact of Promotional strategies of NACL. Following table shows on whose recommendation farmer purchase agrochemicals.
N=35 Progressive farmer
11% 20%
22%
Agricultural university
11%
Dealer / Distributor Companies field assistant
36%
Chart 3.10 Recommendations for the purchase NACL'S Products
companies promotion activities
For using the Nagarjuna product farmer prefer more dealer recoomendation than other’s 36 per cent farmer say that they purchase Nagarjuna Product through dealer’s recommendation 22 per cent farmer buy product because of progressive farmer’s recommendation, 11 per cent farmer buy product through university recommendation, 20 per cent farmer say that they buy company’s people’s recommendation and lastly remaining 11 per cent farmer purchase through Companies promotional activity. 3.4.2. Advertising of media: N=39 News paper Posters
15% 33%
2% 7% 7% 7%
13%
16%
Chart 3.11 Advertising media used by NACL
Exhibitions Mouth publicity Wall paintings Krishimela Demonstration Field Visits Other
For advertising purpose there are various medium are available in which some are highly effective for increasing companies market share and some are less effective to increasing companies market share through sample study analysis it revealed that field
visit is the best media for advertising the product which has 33 per cent after that farmer give preference to krishimela , then news paper of 15 per cent , then demonstration 13 per cent that is 6 out of 45 , wall painting ,mouth publicity, exhibition, having equal share of each 7 per cent i.e. 3 of each out of 45 farmer. In favor of poster there are only 2 per cent 3.4.3. Factors considered while purchasing the product. The aim of marketing is to meet and satisfy target consumers needs and wants better than competitors. Consumer behavior is the study of how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas or experiences to satisfy their needs and wants studying consumers provides clues for improving or introducing products or services, setting prices, crafting messages and developing other marketing activities. Marketers are always looking for emerging trends that suggest new marketing opportunities. No of farmers = 45
18%
Price
15% 40%
18% 9%
Quaity Brand Name Past Experience Recommendati on By Dealer
Chart 3.12 Factors considered by the sample farmers while purchasing the product In above Chart it clearly show that while purchasing the any product quality is the matter, price is not consider is major factor price is minor factor and quality is the major factor and other are supporting factor for price only 15 per cent farmer give priority from out of 45 only 7 farmer for the quality 40 per cent farmer from out of 45 there are 18 farmer, and also other factor include brand name i.e. 9 per cent, past experience and dealer recommendation is about 15 per cent each.
3.5. Awareness of agrochemical companies (competitors) the awareness is the first step towards course of action i.e. trial for knowing the consumer behavior towards agrochemical companies, one should know the awareness about the product to decide the future marketing strategy to promote companies products. No of farmer = 45 120
Syngenta
100 80
100
100 78
60
Bayer
87 67
BASF
60
40
Tata Rallies
20
Nagarjuna
0
Excel Syngenta
Bayer
BASF
Tata Nagarjuna Rallies
Excel
Chart 3.13 Major competitors of NACL In above chart in revealed that Syngenta and Bayer having 100 per cent awareness after that Nagarjuna then Basf, Syngenta and Bayer are the major competitor of Nacls. 3.6 B. PROFILE OF DEALERS a. Experience in dealership No of dealer = 20 15%
Less Than 2 Year 25% 60%
2-5 Year more than 5 year
Chart 3.14 Dealers experience In pie chart it shows that experience in dealing of Agrochemicals is high of more than 5 year’s category is 60 per cent and low who entered new in the market is 15 per cent and 25 per cent is who has experience between 2- 5 years in dealing of agrochemicals
b. Awareness of NACL No of dealer = 20
100% Yes
Chart 3.15 Awareness of NACL In above Chart it clearly shows that dealer’s awareness about Nagarjuna Agrichem product is cent per cent because of they were authorized dealer of Nagarjuna’s product, there awareness about the all products of NACL in the study area.
no of dealer
c. Promotional Activities of Nagarjuna through dealer. 20 18 16 14 12 10 8 6 4 2 0
No of dealer = 20 Exhibition Field demo Wall paintings Advertisement Field visits other
Chart3.16 Promotional Activities of Nagarjuna through dealer. As concern of promotional activity Nagarjuna not give more attention on it. It focused more on dealers margin in chart it indicate that majority about 38 per cent dealer say that Nagarjuna did not took more attention promotional activity through them, for dealer’s margin Nagarjuna give them various scheme likewise, discount, various gift hampers, foreign tours etc.
3.7. Famous Agrochemical Company in Study Area (competitors) No of dealer = 20 5% 15%
20%
Nagarjuna Syngenta
5%
Bayer Excel
20%
35%
Basf Other
Chart 3.17 Famous Agrochemical Companies The chart3.17 denote that Syngenta company having famous product range that is about 35 per cent dealer realized , after that bayer and Nagarjuna’s products are famous each having equal 20 per cent dealer’s opinion, then Basf 15 per cent then Excel 5 per cent and lastly remaining other companies include mostly domestic companies. 3.7.1 Promotional activities of other Agrichemical companies. Promotion is the generatic term which encompasses all such tools in marketing mix that aims at persuasive communication. All activities involving in the persuasive communications are called “promotional activities”. These activities make potential buyers of a product aware of the existence of a product and its merits converting the potential buyers into actual consumers. In the modern competitive environment, promotion is considered to be a key weapon in marketing for the company’s growth and its success. Any company wish to stay in business has to develop and execute sale promotional programmes. The Marketing of Agrochemicals is done through “rural marketing”. Here the consumer targeted is the ‘farmer’. The attitudes, lifestyle and consumer behaviour of the farmers differ from those of the urban consumers. Hence, a slightly different approach has to be adopted while marketing agrochemicals. To get success in to the marketing it is important to know the competitors promotional strategies which they use to promote their product in the market. Sales of the product are depended on the effective promotional strategies adopted by the company. To know the
promotional strategies adopted by close competitor’s data was collected from dealers of NACL and their competitors as well as from the company personal as secondary data. From the observation of the data it is found that promotional strategies adopted by the company are more or less same as the other companies which followed for promotion. From this it is found that some brands are well established in the market and they don’t require more efforts to promote their product they use intensive promotional strategies while launch of new product molecule and this can be more or less applicable in the case of NACL. Other than the promotional activities for farmers companies provides some incentive scheme to their dealers like sole stockiest margin, matching discount, payment incentive, rebate agreement, yearend performance incentive, differential discounts with the help of which company is able to increase their sale. But in case of NACL more importance is given to the farmer. So, company concentrates more on quality and results of products which induce or pull the farmers to purchase their products. e.g. Worrier ,Dunet ,Canon, Profex……etc
11%
13%
Exhibition Demonstration
14% 31%
Field visit Advertisement
31%
other
Chart 3.18 Marketing activities of all Agrochemical companies For the Effective marketing there are various activity some same marketing activity are used by various company which are show in chart 3.18 most of company through analysis it clear that they do more concentration on demonstration and field visit about 31per cent each companies priority, and after that advertisement and Exhibition in advertisement there are various activity such as distributing pamphlets, leaflet’s, poster’s etc.and also painting,bannering, exhibition like kharif melava, rabi melava’s etc.about 13 per cent priority to exhibition, and other categories 11 per cent.
Table: 3.5 Competitive marketing strategies of various companies. Particular Pricing strategy
Nagarjuna Skimming Strategy
Bayer
Excel
Tata rallies
Skimming Strategy
Skimming Strategy
Skimming Strategy
Skimming Strategy
High
High
Moderate
Moderate
3 month
Very high for all product 3month
Very high Low or Low or for all Moderately Moderate product 3 month 3 month 3 month
Up to 10 %
5-6%
5-6%
Moderate Brand Awareness Product Moderately available. available Credit note Margin
Syngenta
5-6%
7-8%
Field staff
Very low Trained High No No field staff at field staff at Trained bottom level field level field staff at field level In above table there are various companies marketing activities are shown through
that it clear Syngenta and Bayer Agrochemical Company having strong work on there marketing activity other than other company. As concern of Nagarjuna there pricing strategy is skimming they give priority to quality using pull marketing strategy, like Nacl other companies also use this strategy. In relation with brand awareness Syngenta and Bayer have strong brand image than other. field staff are more in Syngenta and in Bayer, margin to the dealer is more of Nagarjuna and Tata rallies, Syngenta and Bayer and with aspect of availability also Syngenta and Bayer’s products availability is more than other companies product availability . 3.7.2 Strategies of competitors for increasing their sale and brand image •
Continuous addition of new molecules in every year.
•
Mega Farmers Meeting Monthly 3 with S.O. & D.O. in peak season.
•
Arrange Rally for prime products.
•
Agriculture Scientist along with studied local farmer debates for pesticide schedule.
3.7.3 Marketing activities different companies. 1) Syngenta’s contact strategy. a) Krushi Shakti unit in Maharashtra : Dindori : - ( Nashik) Tasgaon :- ( Sangali) Manchar :- ( Pune)
2) Bayar a) Annual dealers meeting at district level b) New product Launching program c) Project officer at Taluka level 3) BASF a) Launching program at Taluka level 4) Other Companies a) Provide gift to dealers 3.8 Market Share of Nagarjuna in Junnar and Khed Area No of dealer = 20
NACL s share 4%
Total Turnover
NACL s Turnover 96% Chart 3.19 Market share of agrochemicals in study area In chart it showed that total turnover of all dealers about 44 crore and 55 lakh in which Nagarjuna’s turnover is 1 crore and 70 lakh in financial year 2010-11 above pie chart it shown that Nagarjuna had 4 per cent share in total Agrichem sales in financial year 2010-11, there was 96 per cent of potential for Nagarjuna to capture market share in study area, Nagarjuna had positive growth rate. 3.9 SWOT Analysis Strengths o Brand image of NAGARJUNA’S helps to selling the products. o One of the company’s strength is its power brands are Canon, Profex, and Profex super. o Well established marketing channels. o High product range.
Weaknesses o
Less promotion.
o
Low campaigning and less number of field demonstrations by the company.
o Companies sale in study area is depend on very few products. Opportunities o
Successes of company in boosting the product on global competition.
o Greater market access. o Tremendous Scope for Gaining high market share through promotion of quality products. Threats o Poor field development work led to attract the market competitors. o Focus On a particular product other than all Products. o Change in government policies. o Residue of Agrochemicals seen in various fruits, Vegetables and Soil sample there for threat of ban on some Agrochemical. 3.10 FINDINGS Findings 1) In all 87 per cent of farmers were aware about Nagarjuna Agrichem Ltd products. 2) Amongst the aware farmers 91 per cent farmers were users Nagarjuna’s products. 3) Nagarjuna promoted its products through field visits up to 23 per cent , Hand bills 25 per cent, Advertisement and field demonstration 18 per cent, respectively, remaining 16 per cent t exhibition and krishimelas. 4)Nagarjuna’s major competitors were Syngenta ,Bayer, who had cent per cent awareness then BASF having 78 per cent, Tata Rallies 67 per cent, Excel 60 per cent awareness. 5) The marketing strategies of other companies (competitors) were to give more field demonstration and Field visit then advertisement, exhibition. 6) There were cent per cent awareness of Nagarjuna products amongst the Dealers. 7) In the study area Syngenta products were more famous and had more market share than other agrochemical company. 8) Nagarjuna’s some particular products were famous in study area. 9) Nagarjuna’s total market sale was about 1.70 crore with having 4 per cent share in total Agrochemicals in the study area.
3.11Conclusions 1. On the basis of awareness and market share it is concluded that Nagarjuna has good market potential in the study area. 2. The farmers are satisfied with the use of NACL’S product of its quality. 3. The company has provided the less attention on the Field demonstration. 4. Nagarjuna is focusing only on 3 products i.e. Canon, Profex, and Profex super. 3.12Suggestions 1. Company should concentrate on marketing of all the other product’s rather than concentrating only products such as Canon, Profex, and Profex super. 2. Design plan to make such community to the famer which would bound them for purchase of company products. Like other companies such as.” Syngenta Krishi shakti” which provides consultancy service to farmer for guiding them and make companies promotion. 3. Suggestion for Brand Awareness a) Involve slogan on pocket. b) Sponsor major events.
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REFERENCES
REFERENCES Books Philip Kotler, Gary Armstrong, John Saunders VeronicaWong, 1999. ‘Principles of Marketing’, Book published by Prentice Hall Europe, London. ISBN 0-13-262254-8, Pages- 142-363 Acharya S. S. and N. L. Agrwal. 2004. ‘Agricultural Marketing in India’, Book published by Oxford and IBH publishing company, Private Limited, New Delhi-110001. ISBN-81-2041636-8. Pages – 221-235
Paul E. Green, Donald S. Tull, Gralald Albaum 2008. ‘Research for Marketing Decisions’, Book Published by PHI Learning Private Limited, New delhi-110001.ISBN-978-81-20307557-5, Pages-280-338 Website
· www.nacl.org · www.nagarjunagroup.com · www.agrowpages.com · www.google.com · www.wikipedia.com · www.cropnosis.org · www.adbio.com/science/agri-history · www.agronews.com · www.pmfi.com · www.vpgcrop.com · www.eoearth.org ·
www.agf.gov.bc
APPENDICES
APPENDIX – I Brand awareness of Nagarjuna Agrichem ltd. in Junnar and Khed tahsil of Pune district
Questionnaire For farmer Q.1) Name of Farmer.
Village
Post
Taluka
District
State
Pin Code
Mobile
Landline
Education
No. of members in family
Any business and income (Other than farming) Q.2)Your land holding (ha). b) 1 – 2 ha.
a) Up to 1 ha. c) 2 – 5 ha. Q.3) Which type of farming?
d) More than 5 ha.
Irrigated Rained Q.4) Which are the major crop grown in your area? ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Q.5) Which are the major Pest & Diseases in your crop? ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q.6) Which companies chemical do you use mostly for controlling Pest & Disease? ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q.7) Have you heard about Nagarjuna Agrichem Ltd.? Yes
No
Q.8) Do you use Nagarjuna Agrichem Ltd? Yes
No
Q.9) How long you use Nagarjuna Agrichem Ltd. Product? b) 2 – 5 years
a) Less than 2 years
c) 5 – 10 years d) More than 10 years Q.10) Satisfaction level about Nagarjuna Agrichem Ltd products. a) Satisfied b) Moderately satisfied c) Unsatisfied Q.11) Which promotional activity is arranged by Nagarjuna Agrichem Ltd in your area? a) Exhibition, Krishimela
b) Field demonstration
c) Wall paintings
d) Advertisement
e) Hand Bills
f) Field visits by company person
Q.12) From where you like to purchase agrochemicals? a) Agro service centers
b) Village societies
c) Other Q.13) Are you familiar with dealer? Yes
No
Q.14) Reason behind go to the dealers? a) Friend
b) Neighbor
c) Advertise
d) Attractive scheme
e) Self experience
f) any other
Q.15) Are you bargaining with dealer for purchase of product? Yes
No
Q.16) Timely availability of the products by dealer. Timely
Not timely
Sometimes
Q.17) Recommendation from? a) Progressive farmer c) Dealer / Distributor
b) Agricultural university d) Companies field assistant
e) Companies promotion activities Q.18) Which media is best for advertising? a) News paper
b) Posters
c) Exhibitions
d)Mouthpublicity
e) Wall paintings
f) Other
g) Krishimela
h) Demonstration
Q.19) According to you which is the major factors preferred by you while purchasing the product? Parameter Very high High Moderate Price Quality Brand name Demand Past experience Recommendation by dealer Service Q.18) Any comment on Nagarjuna Agrichem Ltd ?
Low
Very low
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Place:Date: -
Signature:-
APPENDIX – II Brand awareness of Nagarjuna Agrichem ltd. in Junnar and Khed tahsil of Pune district
Questionnaire for Dealer/Distributor Q.1)Nameof Dealer/Distributor Village
Post
Tahsil
District
State
Pincode
E-mail Id Education Mobile no.
Landline no.
No.of sub dealers under him Annual income Q.2)Experience in dealership? a) Less than 2 years b) 2 – 5 years c) More than 5 years Q.3) Have you heard Nagarjuna Agrichem Ltd .? Yes
No
Q.4) Do you maintain farmers data bank? Yes No Q.5) Are you satisfied by dealings? Yes/No? Why? a) Highly satisfied b) Moderately satisfied c) Unsatisfied
Q.6) Are satisfied with dealer incentive schemes provided to you by company? Yes No Q.7) How many villages you cover? ----------------------------------------------------------------------------------------------------------Q.8) Which are the major crops grown in your area? ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q.9) Which agricultural input do you supply more? a) Seed b) Fertilizer c) Agrochemicals d) Manure e) Equipment Q.10) Which companies agrochemicals farmer purchase mostly? Why? ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q.11) Which companies agrochemicals are famous in your area? Sr. no. Name of the company Agrochemicals Reason 1) 2) 3) 4) 5) 6) Q.12) Which promotional activity is arranged by Nagarjuna Agrichem Ltd in your area? a) Exhibition, Krishimela b) Field demonstration c) Wall paintings d) Advertisement e) Hand Bills f) Field visits by company person
Q.13) According to you which is the major factors preferred by farmer while purchasing the product? Parameter Very high High Moderate Low Very low Price Quality Brand name Demand Past experience Recommendation by dealer Service Q.14) How much amount you deposited in various company for dealership? Sr.No. Name of company Amount 1) 2) 3) 4) Q.15) Total turnover of all Agrochemicals? -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q.16) Total Turnover of Nagarjuna Agrichem Ltd ? -------------------------------------------------------------------------------------------------------------Q.17) Which is Marketing activity of other Agrochemical companies? ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Q.18) Any comment on Nagarjuna Agrichem Ltd? ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Place:-
Date: -
Signature
APPENDIX-III Brand awareness of Nagarjuna through following promotional activities in study area POSTERING AT STUDY AREA
ARRANGE SENDY COUNTERS ON WEEKLY MARKET DAY.
WALL PAINTING AT STUDY AREA
ROAD SHOW PROGRAM
MAKE LITRETURE of PRODUCT INFORMATION FOR FARMER
MAKE POCKET CARD INFORMATION OF WIPER AND SPRAY SCHEDULE OF ONION FOR FAMER
VITA
VITA Mr. Babasaheb Bhaurao Thatawale (Regn. No. 10/370) A Candidate for the Degree Of Master of Business Administration (Agri.) -2011-
Title of Project: Brand Awareness of Nagarjuna Agrichem Limited in Junnar and Khed Tahsils of Pune District Department
: Master of Business Administration (Agri.)
Bio-Graphical Information Personal:
Born at kawaddhan tahsil: Sailu, District: Parbhani, On April23 rd1987, Son of Shri. Bhaurao Baburao Thatawale And Mrs. Laxmi Bhaurao Thatawale.
Educational Qualification: Passed SSC from Nutan Vidhyalaya Sailu in 2003 Passed HSC from Nutan Mahavidhyalaya Sailu in 2005 Completed graduation from Rajiv Gandhi Agriculture College Parbhani under MAU Parbhani in between 2005-2009.
Permanent Address: “Thatawale Bhuvan” Sarangi Galli, Walur Road sailu Tq; Sailu Dist; Parbhani (431503) Phone No-02451 217004 Mobile No. 9423686113 E-mail:
[email protected]
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