SUMMER INTERNSHIP PROJECT REPORT

“A project report on Current status and customers

behavior towards new project”

Submitted to Submitted by

Prof. Priyanka Bhivpathaki Rohit Sharma

Project Guide PGDM (Marketing)

SINHGAD INSTITUTE OF MANAGEMENT

VADGAON, PUNE

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 ACKNOWLEDGEMENT

I would like to express my sincere thanks and gratitude to the Dr. Daniel Penkar Director of
SIOM and my Project guide Prof. Priyanka Bhivpathaki who have helped in directly and also to
those who have helped me indirectly.

I would also like to thank Mr. S.P Singh(Dept. Head) for giving the opportunity to do my
Summer Internship in Aditya Birla Nuvo Ltd. I would like to thank Prof. Gopa Das for helping
and assisting me in making this project.

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 DECLARATION

I, the undersigned, hereby declare that the project report entitled “Current Status & Customers
behavior towards new product” in partial fulfillment of the requirement for the award of the diploma
of PGDM (Post Graduate Diploma in Marketing) under the guidance of Prof. Priyanka Bhivpathaki,
is my original work and the conclusions drawn there in are based on material collected by myself.

Place
Name

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Date
Research student

INDEX

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 EXECUTIVE SUMMARY

A survey was conducted by using different methods like, dealer surveys, farmers meetings, jeep
campaigning and focused and group discussions to understand the market dynamics and
strategies of all the players in this area.

As the companies now a days are well aware about the fact that retailing

Is detailing, and due to this the importance of sales dealers and distributers have got an upper
hand. To make themmore efficient companies provide their sales agents/extension agents at the
counters. The salesperson plays an important role in convincing the farmers about the quality of
the product and the package of practices adopted for this.

To analyze the market competition for which I have used Porters five forces model because the
presentation of different market tactics used by different stakeholders of this business become
easier.

As dealers plays an important role in promoting the product it is very essential to keep them
satisfied. The demonstration and farmers meeting are the proper target means of promotion. As
the dealers play an important role in promoting the product it very essential to keep them very
much satisfied. And for the motivating thosedealers meet after the season should be organized
with effective recognition of their contribution.

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 INTRODUCTION

Indo gulfs Fertilizers has its core business in Agri input fertilizers seeds and agrochemicals.
Given its locational advantages strong brand equity and enviable cost structure the company is
well positioned in this sector.

Its plant at Jagdishpur, near Lucknow, its location in the heart of the fertile agriculture
intensive indo Gangetic plains. In operation since 1988 the reassessed capacity of this urea stands
at 864,000 tpa. Indo Gulf’s marketing activities span Uttar Pradesh, Bihar, Jharkhand, and
WestBengal which together account forever 35-40% of urea consumption in India.

IndoGulf has sustained strong equity and premium position of the Birla Shaktimaan Brand’
through its unrelenting focus on adding value at farmers as a total solution provider helping
improves their yield at lower cost. The first company to provide the principal of six sigma in the
agriculture fields, Indo Gulf has successful enable farmers to achieve higher yield quality and
profit. With an increased focus on R&D aimed towards introducing unique and profit value
added products indo gulf successfully introduced a neem coated urea under the Birla
ShaktimaanKrishidev’ brand in 2004 a provide a significant leap in the value preposition to
farmers.

Indo Gulf has now strengthened its products offering by entering seeds and agrochemical
business. This business has been built on partnership with public and private institution bring the
latest technology and products to the farmers the company has set-up its own R&D station for
breeding hybrid seeds near Hyderabad. Birla Shaktimaan seeds and agrochemicals have helped

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the company position itself as a total solution provider to the farmers. Indo Gulf service centric;
marketing strategy focuses on providing complete Agro-solution to the farmers and service
support the channel partners.

The Birla Shaktimaankrishisewa Kendra’s multi-input retail counters chain forms the
fulcrum for conducting these activities.

OBJECTIVE OF THE STUDY

1. To study the Marketing procedure and Consumer Behavior of Birla Shaktimaan Urea
among different client from various parts of the state.

2. To gain practical knowledge about the Marketing and other process.

3. To have a look in to the working of an marketing oriented organization.

4. To develop skill to take decision on the intricate problem in sales & marketing and how
to overcome these difficulty in day to day administration.

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 5. To know how the company deals with their day to day customers.

6. To know how they implement their innovative ideas in increasing their sales.

ABOUT THE COMPANY

Indo Gulf Fertilizers

Indo Gulf fertiltizers is located at jagdishpur industrial area which is 78 Kms from Lucknow City
on Lucknow- Varanasi National Highway(NH-56). IGF produces & markets Urea fertilizers
under the brand name “Shaktimaan”. The plant was commissioned in the year 1988 and it has
annual production capacity of 8.64 Lac MT. It is India’s first gas-based fertilizers project in the
private sector and one of the most energy efficient Urea plants in india. The plant is spread over
an area of around 874 Acre of land and employs about 800 people.

IGF enjoys leadership position in the Indo-Gangetic plains for its strong Birla Shaktimaan as
well as its strong distribution and customers service network which spans Uttar Pradesh, Bihar,
Jharkhand and West Bengal, which together account for 35-40% of Urea consumption in India.

With an increase focus on R&D aimed towards introduction unique value-added products. Indo
Gulf successfully introduced neem coated urea under the “Birla Shaktimaan Krishidev” brand in
2004 to provide a significant leap in the value proposition to farmers.

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 Amongst the fertilizers companies in India IGFL was the first to achieve ISO 9002 certification
(in 1994). IGFL has also received ISO 9001:2000 certification for Company Secretarial and
Investor Service, ISO 14001 Certification (in 2001) for Environment Management Systems and
OHSAS-18001 certification for Occupational Health and Safety Management Systems.

IGF is the only fertilizer company in India to adopt world-renewed Total Productive
Maintenance (TPM) practices under the guidance of Japan institute of Plant maintained(JIPM)
and has received TPM Exellence Award- 1st Category in November 2000 and Excellence in
consistent TPM Commitment Award-1st Category in November 2002.

IGF has won IMC- Ramkrishna Bajaj National Quality (RBNQ) Award in 2001 and is the first
Indian company to won International asia Pacific Quality Award in 2003. Indo Gulf is also
accredited with with Deming Application Prize Award in 2004.

Product Lines

Aditya Birla Nuvo fertilizers business indo gulf manufacturers and markets urea, a nitrogenous
fertilizers sector. The company enjoy a leadership position in nitrogenous fertilizers sector, with
its strong brand, Birla Shaktimaan Urea.

The fertilizers business product range include :-

• Birla Shaktimaan Urea Gold

• Birla Shaktimaan urea krishidevneem coated.

• TRADED FERTILIZERS

• Birla kirtimaan Dap-DI-Ammonium Phosphate(DAP)

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 • Birla Kirtimaan MOP-muriate of Potash(MOP)

• Birla shaktimaan seeds- mainly paddy wheat.

• Birla Shaktimaan pesticides- mainly Butachlore 57% ec, isoproton 75% wp and
Phorate 10%cg.

The organizational structure of company

Board of Directors

Managing Director

Marketing Finance Technic Joint Cooperati HRD

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al veDevlop
Director Director Senior Executive
Venture ment Direct
Director Director or
Director
THE FERTILIZATION DIVISION MARKETS THE PRODUCTS ITS PRODUCTS IN FOUR
STATES UNDER THE ESSENTIAL COMMODITIES ACT(ECA).THE REGIONAL
OFFICES THROUGH WHICH THE CONPANY REACHES OUT IN THESE STATES ARE
LOCATED AT

Uttar Pradesh: Bareily, Lucknow, Sultanpur and Gorakhpur

Bihar : Patna and Muzzafarpur

West Bengal: Kolkata

Jharkhand: Ranchi

The company’s sale’s and retail distribution includes

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 • 400 whole sellers

• 2,500 ‘A’ category retailers

• 12,000 B and C category retailers

• 33 Shaktimaan krishiseva Kendras

• 70 ShaktimaankrishiSwayamRozgar Kendra’s

• Change agents

FERTILIZER

The chemical substances which are added to the soil as to make up deficiency of essential
element are called fertilizer.

NITROGENOUS PROPERTIES OF FERTILIZER

 It must be soluble in water.

 It should be cheap.

 It should not disturb ph of the soil.

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  It should be easily assimilated by plants.

 It should be fairly stable.

 It should not be injurious to plant.

FERTILIZERS:-
The important nitrogenous compounds used as fertilizers are.

Ammonium sulphate ;( NH 4)2SO4; - Ammonium sulphate is

manufactured at Sindri (Bihar). Ammonium sulphate is generally called Sindri fertilizer in
India .Ammonium sulphate contains 24-25%ammonia. This ammonia can not be easily
utilized by plant. It is converted into nitrates by nitrifying bacteria in the soil and nitrates are
taken up easily by plants from soil. It should not be frequently used otherwise the soil
becomes acidic .it should be generally used after the seed have germinated.

Calcium cyan amide (NITROLINE):- The product is usually dark grey in

color due to the presence of graphite and is sold in market in the name of nitrolim.It is slow
fertilizer and its effects on fertility are of more permanent nature. It is added to the soil before
sowing and not when the plants are actually growing.

Calcium ammonium nitrate:- It is known as Nan gal fertilizer in India. It is

hygroscopic. This fertilizer is superior to ammonium sulphate as it is more soluble in water
and does not make the soil acidic.

Urea,NH2- CO-NH2:- It is manufacture by reacting ammonia and carbon dioxide

under 200 atmospheric pressure. Ammonium carbonate is formed as an intermediate product
which changes into urea.

Out of the nitrogen fertilizers, urea has the highest nitrogen content equal to 46.6%. It has
no explosive property and there is no risk in the storage. It dose not alert the ph of the
soil. It can use for all type of crops. However, there is one disadvantage. Urea is not as
stable as other temperatures in humid atmosphere. It decomposed in even at lower
temperatures in humid atmosphere. It is highly soluble in water and hence requires
airtight packing.

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 Neem coated “Urea”:-

Neem or Margays is a botanical cousin of monogamy. It belongs to the family

meliaceae the Latinized name of Neem Azadirachta indica is derived from the Persian.
Azad = free dirakht - Tree - which literally means the fee tree of India. Neem coated
fertilizers are those fertilizers which are coated of Neem oils of Nitrogenous fertilizers.
Which reach the crops so slowly for beneficial for crop and soil use of these fertilizer
more and more good and no harmful for soil .The field is greenish for a long time. This
fertilizer gives a good result and production also increased and use of pesticide and
insecticide is less.
Improper use of fertilizers and chemicals (Pesticides, fungicides, weedicides) are
definitely harmful for our health especially chemical substance. For ex. improperly use of
these chemicals in vegetable like (Brinjal, Tomato, Chilly, Potato etc.) Crops (wheat,
paddy, etc.) it previous is to think why this type of farming is deviating if the use of such
chemical will not be restricted, then will creates the problem of infertility of land for our
generation also human life will be less safer. Therefore, now it is the necessity of organic
farming in which neem product should be used in crops and for Killing insects.

Importance of “Neem Coated Urea”

• N.C.U. is stable in the field for a long time in comparison to the other Urea
• N.C.U. is not rapidly soluble.
• N.C.U. keeps the crop green a long time in comparison to the other Urea.
• N.C.U. is very benificial for the farmer because it increases the production and
safe the plant from dimk and other harmful bacteria.
• N.C.U. is more use full for water logging crops.
• N.C.U is very friendly in nature and it is not harmful for the climate.
• To use N.C.U.; Reduce harm full chemical (pesticide& insecticide) in plant.

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Marketing Initiatives:

The division started its marketing operation 15 year old ago, well before its commercial.

Production went on streamIna unique seeding program the company procured urea from
other manufacturers and branded it as Birla Shaktimaan.

The objective was to market Birla Shaktimaan urea as premium brand not, merely
as commodity. The concept was to set up the marketing and distribution network well
before commercial production started. The company created a network of area offices
buffer godown stock points wholesaler, retailers and a service center network, manned
by field officers and agronomist to serve two key constituencies:

• Trader(Dealers and Retailers)

• Farmers

As the result of concentrated marketing efforts, Birla Shaktimaan has emerged as the
most preferred brand of farmers for several years in a row.

Services offered to dealers and retailers

• Servicing the dealers network by regular scheduled visit.

• Transparent policies air practices and assured quality products.

• Regular training programs of dealers retailers on maintaining complacence with

applicable government regulation. Basic intelligence on the use of fertilizers crop
protection chemicals, etc.

• A network of accredited.

Services offered to farmers

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• A network of multi input service centers.

• Shaktimaan krishiseva Kendra have been set up to educate and train farmers to achieve
higher on application of modern agriculture techniques,

• Shaktimaan swaywam rozgar Kendras have been established with the dual purpose of the
introducing the concept of change agent in rural development and providing support to
qualified agriculture graduate with an entrepreneurial bent of mind. The Kendras help in
women emancipation and progress by appointing women at some of the Shaktimaan retail
outlet.

• Farmers oriented extension programs, including block/crop demonstration; free soil

testing; soil fertility maps; micro watershed development projects agro-forestry/fruit tree
plantation.

• Farmers – oriented social welfare programs for better health and sanitation to promote a
better standard of livingof villages.

• Active participation in social life of farmers by activities conducted through Shaktimaan

Farmers by activities conducted through Shaktimaan Farmers Clubs.

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Indo Gulf Fertilizers (A Unit of Aditya Birla Nuvo Limited) manufactures and
markets UREA, a nitrogenous fertilizer. The manufacturing facility is located at
Jagdishpur Industrial Area (UP). The company was formed in 1983 and the project
was completed in record time of 33 months with no cost overrun. The commercial
production started in November 1988. The company enjoys leadership position in
Indo-Gangetic plains due to its strong brand Birla Shaktimanas well as strong
distribution and customer service network.

The main product is Prill Urea, a most preferred brand of the farmers. We have been
always at
the forefront to provide best product and best services to the farmers. We were
first to Think Differently, took initiative to develop & produce Neem Coated Urea
under the brand name of “ShaktimanKrishidev”, highly admired by farmers. Field trials
conducted revealed an increase in the yield by about 15%. Innovative idea is to have
slow release of Nitrogen by coating Urea prills
withNeem oil. Neem coating also gives pesticidal effect. Development of Neem Coated
Urea has been an outstanding achievement by our team and has put IGF in forefront
from its competitors.
We are producing Neem Coated Urea by about 30% of total annual production.

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BAGGING PLANT

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 SWOT ANALYSIS

STRENGTH
1. A profit making private ltd. Company.

2. Company has a strong R&D wing in Hybrid paddy.

3. Company has a good market share in eastern states e.g. West Bengal, Uttar Pradesh,
Bihar and Jharkhand.

4. Strong brand image for its product.

WEAKNESS
1. Most of the decisions are based on traditional selling concept.

2. Less market development attitude and high profit earning motto.

3. Distribution channel is not up to the mark.

OPPORTUNITIES
1. it has the good brand image as a fertilizer company in the mind of farmers and
hence can be capitalized for seed too.

2. Marketing of Agricultural inputs/servicesunder one roof is attract to increase the

market share.

3. Increase in market share of hybrid seed and pesticides.

THREATS
1. Huge competition from national as well as multinational companies.

2. Requires large investment for developing different varieties to meet the demand of
farmers.

3. Uncertainty in market factors and changing market scenario.

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 4. Wide variation in demand.

5. Agriculture depends on rain therefore high certainty.

RESEARCH WORK

TO COLLECT THE ESSENCIAL INFORMATION

• Area of study
• Farmers profile
• Factor influence the purchasing of fertilizer
• Demand of neem coated fertilizer by the farmer
• Factors that aware the farmers about neem coated Urea of shaktiman
• Promotional Activities which influences the farmers
• Factors to increase the demand of shaktiman product
• Different promotional Activities carried out by the Indo Gulf Fertilizer company

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 THE DETAILS ARE AS FOLLOWS

 Area of study :-

Place in U.P Demonstration Villages

1. Akbar-Pur-Farsi

Samrauta 2. Gujeran-Ke-Purwa

3. Usarha

4. Shuklan Purwa

5. Maheshpur

6. Purekhetiyatdas

1. Raipur Bainti

Shivgarh 2. PanKuwar Kheda

3. DaulatKheda

4. PureMethiyan

5. DangiBarauli

6. Duniya-ke-purwa

The study was conducted in 2 district of U.P

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 SAMPLE SIZE
TOTAL NUMBER OF VILAGES 12
TOTAL NUMBER OF FARMERS 300
FARMERS PROFILE

It covers many information about farmer as:-

1. Name

2. Address

3. Status of education

4. Land holding

5. Crops which are grown by farmers at that time

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Status of Education-

Literacy rate is good in this district and farmers are very sincere with
their jobs.
LAND HOLDING-

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This graph shows only two percent farmers have below one acres land and
farmers have enough land for farming.

CROPS WHICH ARE GROWN BY FARMERS-

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RABI

KHARIF

FACTORS INFLUENCING THE PURCHASING OF FERTILIZER-

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 Graphical View

4
3.5
3
2.5
2
1.5 Graphical View
1
0.5
0
Availability Better Price Good Brand Packaging
Quality
As in the graph we can see that Better quality and Good Brand are the main factors which are
increasing the sale of the product but also we can see that the supply of the product is less which
is resulting in lesser returns. Hence if the supply will be increased than we will get higher returns.

AWARENESS ABOUT NEEM COATED UREA TO S.K.S.K & NON S.K.S.K-

The quality is the most important factor for S.K.S.K farmers but Non S.K.S.K farmers first prefer
to price and other things.

DEMAND OF NEEM COATED UREA-

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As we can see in the above graph the demand of Neem Coated Urea is high because it is more
effective than the simple urea.

PROMOTIONAL ACTIVITIES WHICH INFLUENCES THE FARMERS-

Demonstration and field program are more effective for promotional activities.

DEMAND OF INDO GULF NEEM COATED UREA & OTHER COMPANIES

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The demand of Indo Gulf Neem Coated Urea is more than others because of better quality and
gives good results.

While into looking into the marketing aspects of urea, the following dimension need analysis:-

• PRODUCT

• PRICING

• PLACE/DISTRIBUTION

• PROMOTION

PRODUCT
Seed is a perishable product by nature. But fertilizer & insecticide are not perishable. Its
demand is seasonable and derived.

There are also wide fluctuation in its demand, as the demand is the function of various factors
like prices of the crop under consideration, prices of the crop other crops, climate, replacement
rate and the information about the market. Also, it is not possible to create an exclusive
distribution network at the retail level, as it is small time and highly seasonal product. This nature

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of the product result in much specificity at the various stages of marketing process like
production of seeds, procurement, its distribution, seed pricing and promotion of the product.

PRICING
The uncertainties in demand for agricultural input and making its pricing estimate are a
complicated exercise. Seeds grown by growers for seed corporations and the private sector which
meet specified standards attract a premium price over and above the commercial grain price, for
the crop which varies anywhere between 25% for self-pollinated crops like cereals to over 100%
for hybrids. In the public sector, like NSC is usually the retail price setter. The pricing strategies
of private sector are also influenced by the pricing structure followed by the public sector.

The final marketing price of the certified seed is the result of number of components as follows:

A. Based seed price

B. Price paid to the seed growers for the raw seed.

C. Processing and storage costs.

D. Transportation, distribution and marketing cost.

DISTRIBUTION
The private companies who in gases in production of input market input through a
network of distributors and dealers. These distributors are appointed for district which in turn
appoints dealers within the district. These distribution and dealers handle other agriculture inputs
like fertilizers, pesticides, and agricultural machinery.

They are appointed on non-exclusive basis, which means dealers can deal in products of
other companies or even in other commodities. Hence, the seed forms only a part of the overall
business not only with other agricultural inputs but also with other commodities as well. The
distributors, dealers and retailers are paid Commission by the companies on sale. Normally, 15%
to 25% commission is given to distributers who pass 12 to 22% to the dealers while retailers get

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9 to 19% discount on sales. But here, company directly deal with dealers, who are paid at par
with distributors. The distributors or dealers have to place the order well in advance, for the
company to get an estimate demand for the inputs from a particular region.

PROMOTION

The demand for agriculture inputs is largely dormant and has to be awakened and
stimulated. Creative use of promotional tools that reach the cultivators is an important way to
accomplish this goal. The different promotional means used by the company are as follows:

•Retailer contact with the help of staff

•Posters, banners and pole-posters

•Leaflets and pocket calendars

•Mike campaign at hats and around villages in jeep

•Village level farmers meeting

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Studying the Agricultural input Market in the perspective of Porter’s five forces
Model

PORTER’S FIVE FORCES

SUBSTITUTE

PRODUCT

Potential threat Bargaining power

SUPPLIERS COMPETITIVE RIVALRY BUYERS

Bargaining power Potential threat

ENTRY OF NEW
FIRMS

Threat of New Entrants

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 Agricultural input is one among that lucrative business, which has attracted a number of
players today, who try to enter the market and grab a portion of the market share. Since there are
less entry barriers in the input industry hence players come with potential to try their best. The
new entrants of last few years are trying their level best to grab market.

Apart from these small players, I found during my survey that companies like pioneer,
Monsanto India, Syngenta etc. have entered the market after assessing the market potential of the
business.

The reason being these small players viz. Manisha seeds, Ganga Kaveri, Nuziweedu etc.
through their intense promotional activity are in fact developing market for the hybrid paddy,
which is at concept stage in most of the areas. Therefore when the market gets aware about the
paddy through them, then it can be taken by big players if care is taken to utilize and right steps
be followed in the future to tackle these big players. I again emphasize that timing is more
important because input industry is such a sector where once we are able to put our brand in
farmers mind by making them use our product once, then that will develop over the years and
will generate its market by word-of-mouth advertisement. So care should be taken against the big
players and we should try to identify the weakness of these players.

Bargaining Power of Suppliers

As such I could not get an opportunity to visit the areas which supply hybrid paddy to
different companies, it won’t be justice on my part to comment on the bargaining power of
suppliers with certainty, but one thing can be said in certainity that if the current practice of
outsourcing hybrid cultivation to Andhra farmers may have implications in the future. A glance
look at the intense competition among competitors and presence of a number of buyers, the
suppliers of hybrid paddy to the companies may lobby together to charge higher price for their
produce.

Bargaining power of Buyers

In true sense buyers means the ultimate consumers, but in the case of agricultural input
uses, the concept can be applied to the dealers/distributers or retailers and wholesalers. The
presence of a number of players with their different lucrative packages and schemes has the
bargaining power of these intermediaries has increased a lot. The small new entrants give hefty
margin on their products and also keep the product of these new entrants. The excellent product
performance acts as fuel to the fire of flame and brand image.

Threat of competitor companies

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 Even though the other improved varieties and research varieties can’t beat the hybrid seed
if the condition are favorable, but the things go other way when these hybrids have to perform in
different climate and soil condition. The higher cost of hybrids, as the consumers perceive it,
gives lee way the entry of firms having variety of products which can substitute the existing
products. This is the case prevailing in the areas I visited during my project work. Companies
like Rallis India, Ankur seed & Bayer India are trying to utilize this opportunity by entering the
market with their research variety and improved variety respectively. The cost of these offering is
in between local varieties and hybrid, i.e. Rs 24-30 per Kg of seed. The performance of these
varieties is not bad, because production is climate and soil type dependent, and the lesser price is
giving them entry in the market. In fact Ankur seeds is having food market share. This may
create a problem for hybrid seed in the future.

Rivalry among Competitors

Competition is normally a game in which one player loses at the expense of the other, and
this is what exists I the input market today. With their varieties of product a number of
companies have entered into the market and a good number are planning to do so in near future.
Competitive Structure is oligopoly here, which means major market share is in the hands of a few
companies (Pro-agro seed Company and Advanta India ltd & NFL.) and is small share a large
number of companies are fighting. They are trying its best to maintain its market share, which it
is losing year after year due to many reasons one of it I would say is less supply.

The promotional activity of new entrants are intense, and is being achieved by the
employing a good number of fields staffs, who promote the products with the help of Field
demos, Farmer meetings, Jeep Campaign, Posters and Banners, followed by regular visit to the
dealers and distributers shop. Apart from this they try to motivate the intermediaries by
innovative packages and schemes, the details of which are given in subsequent pages. The
leaflets, which they provide in different areas, are also different and are targeted the problem of
that particular area.

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 Data Analysis

Influence of size farmers on promotional tools

Big farmers are influenced by demonstration and meeting less by other means whereas
small farmers influenced by almost equally by all means.

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 1. Response towards the pricing of Birla Shaktimaan

Majority of stake holders have the same opinion regarding pricing of the products and
responded as high.

36
distributo
Dealer
r Deal
s
Retail Retail ers
Retai
ers ers lers

37
TRADITIONAL MODEL
Existing model followed by Company

38
Impact on promotional scheme on sale

Result

Others
7%

Mike campaign
13% Field
demonstration
33%

Purchase scheme
20%

Farmers
27%

Field demonstration has great impact followed by farmers meeting purchase scheme and
other.

Results
39
 Product
Product i.e. agricultural input is having a good competitive product market fit but
still lack in some expectations such is case of seed the maturity period, disease resistance and
unfilled grain content (Khakhri).

In spite of that customers are in expectations about different type of problem based on the
nature of there field i.e. they want hybrid for their water logged areas. But the company has
hybrid paddy variety at present and of lowland irrigated type of field.

Packaging quality is also poor in terms of its strength and designing of hanging facility
which results in uncomfortable hanging in counters as well as in for farmers to carry the product.
The picture of paddy and hulled rice in the front of the packet is creating confusion among the
farmers. Recommendation for growing season in different states is also lacking on the product.

Price
The price expectation of retailers as well as farmers was little bit lower than what was
disclosed by the company. They expected that being a established company it would have little
low price. The price of their input i.e. seeds, fertilizers & pesticides are relatively higher than
others companies products.

Place
The distribution strategy they are following in Uttar Pradesh market is quite efficient as
they one chain middle men from the system i.e. they eliminated the concept of distributer in the
district level and connect to the taluka level dealer directly to the company. In this way, they
created a distributer in taluka level.

Promotion
On the promotional front company is mostly relying on the less impactful means like
posters, banners, pocket-calenders and pole posters rather than stronger means as field
demonstration farmers meeting and field days.Not only that theposters, banners, pocket-calenders
are also not properly designed and targeted. The impact of posters, pole-posters and banners is
high with the distantly located farmers and small farm holder and vice-versa.Whereas, impact of
demonstration and farmers meeting increases with big farm holder and nearly located farmers.

Initial 1 or 2 year of introduction

More focus on primary channel at introducing stage & in beginning

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Focus on secondary and tertiary channel to get confidence of stakeholders present
near the consumer end point

Subsequent years

More focus on retailer and intense campaign combined with the placement of
seasonal extension worker at different counter with

Meeting and demonstration at farmers field and Discussion

A concept really worth thinking

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FINDINGS

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• Demand for Neem Coated Urea is more.

• Demand is increasing because of its quality and Brand.

• Supply and availability in some areas is less.

• Price of this product is little bit high which declines the sale.

• Packing is also attractive.

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 RECOMMENDATIONS

After all the Indo Gulf’s Neem Coated Urea is very beneficial for farming such as increase the
production etc.

1. The supply is very less than the demand so company should promote supply to all
rural areas because most of the farmers complained that they didn’t get Neem
Coated Urea on Time.
2. Company should always maintain the quality.
3. Company should provide beneficial scheme for farmers.
4. Company should always maintain availability in season.
5. Company should contact with the "Advertising Parties" because they has traditional
way of entertainment and have good approach to every village & towns and have a
deep impact in villagers Mind Company should offer them some money to promote
his product in their every activity.
6. Group meetings of farmers as well as prospects are an important part of
interpersonal media. The company is able to pass on the message regarding benefits
of the products to a large number of farmers through such meetings. To maintain
regularity in the farmer's attendance surprise gifts should be given to those whole
have a good attendance.
7. The field demonstrations should be increased and done in choosing a potential
customer fields. The study conducted has given a result that the farmers of the given
districts are ready to give field demonstrations in their fields. These demonstrations
are based on the extension principle "Seeing believes" and are one of the most
effective methods to show the superiority of the company's products to the farmers.
8. Company should always try research works on new more effective fertilizers
.

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 BIBLIOGRAPHY

• Gopalaswamy, T.P: Rural Marketing: Environment, Problems and Strategies,

Wheeler, New Delhi, 1997

• Singh Sukhpal: Rural Marketing: Focus on agricultural inputs, Vikash publishing

House PVT. LTD. New Delhi 2006

• Cooper R Donald and Schindler S Pamela: Business Research Methods, Tata

McGraw-Hill publishing companies Ltd., New Delhi, 2006

• Kothary, C.R: Research Methodology: vikas publication, New Delhi

• A. Janaiah. “Hybrid Rice for Farmers-Myths and Realities”. Economic and

Political Weekly.

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