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IB BUSINESS & MANAGEMENT

INTERNAL ASSESSMENT (HL) c
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HOW SHOULD BONAGERI CROPSCIENCE PVT.

LTD. MODIFY ITS PROMOTION MIX FOR ITS
PROPOSED LAUNCH IN RAJASTHAN?

CANDIDATE NAME: SIDDHI MODI

CANDIDATE SESSION NUMBER: 002760-017

WORD COUNT

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ABSTRACT

RESEARCH PROPOSAL

c Rationale for study

c Theoretical framework
c Methodology
Œc Primary and secondary research
c Action Plan

INTRODUCTION

RESEARCH METHODOLOGY

MAIN FINDINGS

ANALYSIS

c SWOT analysis
c Lewin¶s force field analysis
c BCG matrix analysis

CONCLUSION

LIMITATIONS

BIBLIOGRAPHY

APPENDIX

c Interview with the managing director

c Survey on the customers
c BCG matrix

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With the recent profit that the firm has made, the firm wishes to be a global market leader and to
do that it needs to expand in many places. The firm has decided to do that staring with Rajasthan.
The firm feels that if they are able to expand in Rajasthan, since it has a different weather
condition all together and if the firm can be successful in Rajasthan than it will be very easy to
expand elsewhere. The firm is moving into an existing market with many competitors, and
relatively low prices proposed by the competitors, which could result in a price war since the
existing firm is already well established and is difficult for the existing firms to survive.

The firm has already calculated its financial data and is capable to expand her financially,
although it is difficult for them to anticipate the market in Rajasthan since the firm has no local
contact. Therefore, on the firms¶ behalf I will be calculating its promotional mix to see if or not
is it a good option for Bonageri Crop Science Pvt. Ltd to expand here.

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The firm, Bonageri Crop Science Pvt. Ltd, has its main headquarters in Hubli, Karnataka. The
firm is doing very well so far making its monthly profit of 1 core and above, and is looking
forward to expanding in many cities for more profits in India, including Rajasthan as its option.
It needs to have a business plan and abasic research to analyze the viability of operating in
Rajasthan. For this I will be considering problems faced by start up business in Rajasthan, its
main competitors as well as the market study to see where each of its products stand the place it
is operating presently.

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c SWOT analysis ± to see if there are any chances for Bonageri Corp Science to survive in
Rajasthan.
c Ansoff matrix ± to see where the organization stands.
c Market development -
c BCG matrix ± to see where each of the firm¶s products stands and assume if that would be the
same case in Rajasthan.
c External environment ± since Rajasthan is very dry and droughty, it could be possible that the
medicines made by the firm won¶t be helpful
c Promotion Mix ± so that they know what to do in order to peruse the farmers in buying the
product.

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Œc Interview with the managing director ± to see why he¶s considering Rajasthan as one of
its options.
Œc Survey on the customers ± customers in Rajasthan to see if they know anything about
Bonageri Crop Science. To see what farmers are really looking for in order to make their
crops better and faster without any harmful side effects.

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Œc Collect the data from the internet.
Œc IB business and management
Œc IB business and management course companion

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25th ± 27th July Made a list of firms that I could do my Internal Assessment on
th
28 July Selected the Firm I wanted to work on
29th ± 31st July Researched the problem faced by the firm and made a research proposal
1st August Made a survey for the labors
2nd ± 18th August Carry out the survey
20th August Compile the data
21st ± 25th
Analyze the data
August
27th August Submit 1st draft
30th August Receive 1st draft, checked
1st September Worked on the draft
5th September Submitted final draft

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The firm Bonageri Crop Science Pvt. Ltd. manufactures products that can be useful to farmers in
obtaining a better and healthier crop. The firm specializes in this field as they are concerned
about the growing population and the higher demand for basic commodities as it increases
rapidly. It¶s looking at expanding in India, to make sure the growing population meets its
demands for food.

Since it¶s looking at proactive growth strategy by increase in its geographic region, it¶s
looking at Market Development as per the Ansoff Matrix. Market development is the
most lucrative than the others S the risk is no very high and the growth substantial. The
company is looking at expanding into Rajasthan.

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Market penetration Product development

¯c¯¯c Market development Diversification

However, Market Development might be risky if the firm is not familiar with the local market or
the competition that takes place in Rajasthan. The market is different than the one they are used
to supply its products in. Therefore, I will be doing a background research for the company to
find out if this option if lucrative for them or not.

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For this investigation I will be collecting data from primary as well as secondary sources. My
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he feels about the firm and its expansion, to also ask as to why has he chosen Rajasthan and not
any other state. I would also see what farmers in Rajasthan are particularly looking at in order to
have their crops grow healthier and better for the existing population as well as the upcoming
ones. Different medicines would be given to the farmers to test on the crops to see if there are
any side effects of that product.

My  c  would include, data collected from the internet about the firm and also
about what the firms goals. Bonageri Crop Science has initially launched a pesticide in 2002
called c cc"c/
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the agricultural industry of Karnataka, but they are not quite sure about Rajasthan¶s soil since its
very dry and desert here. So they need to understand the climate of Rajasthan and see what
products will be useful here without any side effects.

For this investigation, the tools that I would be using are BCG matrix, Ansoff matrix, external
environment, product and promotion mix and SWOT analysis to arrive at a conclusion that is
beneficial to the organization.

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There are all in all 30 farmers who were ready to answer the questions asked above. Out of these
three grow Bajra, five grow Juar, four grow Wheat, six grow Gram, five grow Barley, one grows
Maize, two grow groundnut, one grows Seasame and three grow cotton. The largest amount of
crop grown is Gram.

Bonageri Crop Science Pvt. Ltd has many products, or some say pesticides, but the main
products that are mostly used are the following:

c Tiranga
c Asset
c Heera
c Lorris
c Mealy break
c Crusher
c Boom
c Trifen
c Myclobil
c Bilaxyl
c Stopper
c Creeper
c Benstar [benfit]
c Trizol
c Garud
c Macrosul[wp]
c Macrosul [wdg]
c Rakshak
c Ekomin

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And the most used fertilizers by the farmers amongst all products are, Lorris, Heera and Trifen.
Although pesticides should not be used regularly, yet there are many farmers who apply
pesticides very often and yet gain healthier crops. It depends on the farmers whether they are
ready to take the risk of applying or not.

The farmers that I surveyed, out of 30, twelve apply once a month, ten twice a month and 7
thrice a month. One of the farmers that I surveyed, apply pesticides to his crops more than thrice
a month.

There are many threats to Bonageri Crop Science in Karnataka. It has competitors such as Bayer
Crop Science, Aventis Crop Science and High Tech Agri. When asked to random farmers as to
which brand do they use the most, High Tech Agri. was the highest answer. And Bonageri Crop
Science was second and then Bayer Crop Science1, Aventis Crop Science2 and High Tech Agri
Pvt. Ltd3. There are many other firms operating in the same field such as, Best Exports, Mehta
Dye Chem, Tirupati Chemicals and BioGenics.4 The one thing that farmers always want is to
have their products healthy which help others. So in a pesticide they in a pesticide they look for
all sorts of qualities such as:

c Grows fast ± this saves time for the farmers and the customers since crops reach the
market soon.
c Healthy ± if the crop is not healthy, people do not buy the product. In other words
they face a loss
c No harmful side effects ± harmful side effects, such as abnormal growth and the crop
dying would lead to the farmer having a loss.
c Cost effective ± farmers cannot afford expensive products so they want it to be cost
effective.

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c The product and the use of bio pesticides by the farmers.

c They already have a ready market when they set up their business here in Rajasthan.
c Although the firm has high products, it is still accepted by the farmers.
c Brand image
c Arrangement of capital is high since it¶s a private limited company

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c Currently operating in one climate condition

c Lack of awareness in Rajasthan
c High prices

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c The firm could look at growing in Karnataka itself since its well known there and knows
the market. Its growth here will be different from the growth there in Karnataka due to
climate change.
c Instead of introducing Star products here, it should look at new markets. Identifying its
needs and according to it, introduce a product line.

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c Competition ± there are many firms operating in the same field in Rajasthan
c Low prices of the competitors

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SWOT is used in the formation of promotion mix. As the strength says, finance would not be a
problem since they have enough profits to expand the firm, so they do not have to be dependent
on taking loans and neither would they have a problem setting up a market there since there is
already a ready market available there. They might face problems in Rajasthan since they are not
aware of the market condition and since they only operate in one climate condition, they would
not know if or not their products are suitable here. Competition is going to be a threat for the
firm, since as mentioned, there are many firms already operating in Rajasthan in the same field.
Since its going to be a start up business here in Rajasthan, its prices in Karnataka is very high
and acceptable by the farmers but that might not be the same in here. Existing firms in Rajasthan
would have low prices here but they might not share the same product as Bonageri Crop Science
Pvt. Ltd.

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Positives (13) Negatives (14)

c There is less competition in
Rajasthan so it will be a benefit for
them. (5)
c They will be able to cover all areas
of the spectrum. (3)
c Increase in profits in the long run.
(3)
c Increased output (2)
c Equipment cost will be high (3)
c High set up cost (2)
c High training staff cost (2)
c Difficult to collect capital (4)
c Pesticides might not be effective
since there is a weather change. (3)


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c There are less competition in Rajasthan ± there are very less firms in Rajasthan operating
the same business, such as ±
Œc RSM Crop Science, Udaipur5
Œc AICRP Crop Science, Jodhpur and Sharatpur.6
Œc ANIP, Durgapur7
Œc Rajasthan Crop Pvt. Ltd. , Jaipur

c They will cover all areas of spectrum ± they already have their business operating in
Karnataka which faces amazing weather change and now they are planning to operate in
Rajasthan which has a different climate all together.

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c Increased Profit in the long run ± if the firm in successful in Rajasthan than it would gain
more profits since it has less competitions and there are wide lands which have not yet
been used up.
c Increased output ± if they become successful and their products are brought by framers
often than they would have to increase their input, which would result in increase in the
output.
c High equipment Cost ± machines brought by the firm for making pesticides is very high
unless they could bring their products from Karnataka.
c High set up cost ± the firm could open up a franchise.
c High training staff cost ±
c Difficult to collect capital ± the firm can use profits earned by the firm in Karnataka
c Pesticides might not be effective since they have a weather change ± try out new
pesticides, or invent new products.

Although the restraining forces are stronger than the driving force, the firm, however, there is a
chance they could succeed prior they reduce their restraining forces such as, set up costs, training
staff cost, equipment cost in order to operate a viable business. Restraining forces should be
brought down to the maximum level. The set up cost could be reduced by transporting products
from Karnataka instead of making them here.

Taking these into considerate and as per Lewin¶s force field analysis, I find the expansion to be
very risky. This is because its rest restraining forces are stronger than its driving force.

So my proposal is to strengthen the promotion mix by:

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crop and its needs. And one the firm is awake about these, it would be easier for them to
make products as well as sell them. But if the product is not suitable for a particular

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fertilizer than the testing costs rise up which would result in the firm losing more money
on its research and development section more than the products marketing.
c c $ c cccc" c c% c ' To see what they feel
about the products and what they want from the company. This shows that the company
is concerned and hence forth, the farmers would by products only form this firm
thinking it¶s going to be loyal to the farmers. This gives the farmers a personal attention
and touch which would later bound them to be loyal to the firm. But if the company
wastes time on meeting than it won¶t be able to focus on the company¶s main motto,
which is profit.
c c"cc#cc c. They could lower their price so that the farmers
can afford it, and if they do decide to continue the product, the prices can always rise.
This would gain more customers to the firm and so will profits to the firms. This would
enhance the company¶s brand image as well. But giving discounts would have a risk of
farmers changing their brand and looking for products in a different company offering
them lower prices and more affordable products.
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buy products. This would lead to the company having fewer profits. This would result in
the firm having less money for their research and development department.
c ccc $c cc cc cc c. As the farmers would
see how much the firm is concerned about the living population¶s well being.

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The company¶s star products are Asset, Lorris, Crusher and Boom, they should utilize the
money earned by Cows, which are Trifen, Myclobil, Stopper, Creeper, Trizol, Garud and
Rakshak, so that they can invest in the business and use the money to expand in Rajasthan so
they face no financial problem.

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Although this expansion seems to be very risky, but the strengths that the firm possesses, ready
market in Rajasthan, superior products and have high prices that are still accepted by the farmers,
they meet the demand of the expansion. Although the company¶s financial condition is not
conducted, the company should do well if they follow strong promotional mix proposed by me.
It would be good for people in Rajasthan if Bonageri Crop Science Pvt. Ltd. expands in
Rajasthan since its guarantying its products to be harmless and have great results.

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c There was not enough time to go and personally interview the owner and the customers
c Some farmers might have answered in the company¶s favor in order to continue dealing
with the firm.

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c http://www.bonageri.com/
c www.bonageri.com/bonageri_cropscience_about_us.htm
c http://www.indiamart.com/company/550749/
c http://www.agricultureinformation.com/mag/?p=6174
c http://www.mapsofindia.com/maps/rajasthan/rajasthanagriculture.htm
c http://www.rajtourism.com/html/raj_tour/agriculture.htm
c http://en.wikipedia.org/wiki/Rajasthan
c http://sawaal.ibibo.com/jaipur/what-major-crops-rajasthan-209884.html
c http://www.tradeget.com/companies/X2/agrochemicals_and_pesticides.html
c http://www.hotfrog.in/Products/Agriculture/Karnataka
c http://bangalore.indiabizclub.com/profile/2187004~high+tech+agri+(p)+ltd.~bangal
ore_india

c http://business.mapsofindia.com/india-company/a/aventis-crop.html
c http://www.bayercropscience.com/bcsweb/cropprotection.nsf/id/EN_The_Bayer_Cr
opScience_Child_Care_Program?open&l=EN&ccm=500039
c http://www.indiamart.com/company/1906667/
c http://www.icar.org.in/crop-science-AICRP.htm

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Interview with the Managing Director ±

c Why have you chosen only to expand in Rajasthan?

That¶s because I wanted to cover all areas of a spectrum. My firm, as you know, is
initially in Hubli, which faces many weather changes so I did not what it was like to
expand in a dry region, so I wanted to see what it would be like to operate in Rajasthan,
since it has a different climate all together than the one I am operating in now.
c There are many other places with better climate condition, with no problems that you can
face. So why Rajasthan?
In Rajasthan because it has a very dry climate and I wanted to see if my products are
suitable and helpful in all weathers or not.
c What are you key-strengths? Are there any challenges that you are expecting to face?
My key strengths are my products, which are very well sold and they earn me a lot of
profits. I¶m not quite sure about the challenges but I do know that it is hard to expand a
firm. There are many things that I would have to look at.
c What is your channel of distribution?
A zero level channel ± that is, I sell directly to the customers.

Producer

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Survey on the customer (30 farmers)

c What crops do you usually grow?

Bajra
Juar
Wheat
Gram
Barley
Maize
Groundnut
Seasame
Cotton

Crops grown by farmers

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The above graph shows what amount of farmers (30 farmers) grow what particular crop.

c What are the pesticides that you regularly use?

Tiranga

Asset

Heera

Lorris

Mealy break

Crusher

Boom

Trifen

Myclobil

Bilaxyl

Stopper

Creeper

Benstar [benfit]

Trizol

Garud

Macrosul[wp]

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Macrosul [wdg]

Rakshak

Ekomin

Any other, please specify

roducts of Bonageri Crop Science  t.

Ltd. used by farmers
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c How many times do you use them in a month?

Once a month

Twice a month

Thrice a month

If more please specify

" e number of times a farmer applies t e

product (pesticide)


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c Are any of those branded? If so, which brand?

Yes, which brand?

No

Brands t at t e farmers use

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This shows the amount of farmers who say if they use branded product or not and if branded than
which.

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c Do you look for any specific quality when you chose the pesticides?

Grows fast

Healthier crop

Any harmful effects

Cost effective

Any other, please specify

]uality t at a farmer looks for in t e

pesticide


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c Do you randomly try products on the crops?

Yes.

No.

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c The products you use, are they really helpful?

Yes, how?

No, how?

Products used are helpful since they are meant to help the crop grow further and healthier,
whereas some are not helpful since they may create a side effect to the crop, such as, excess of
pesticides would result in the crop dying or have an abnormal growth.

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STAR ±

A star has a high market share as well as a high business growth rate. This is a position that all
business dreams to have their products at, so the business needs to keep working hard in order to
retain its position. Its star products are Lorris, Boom, Crusher and Asset. Although there is no
information as to in which crop are these products used. The firm should look at the crops grown
in Rajasthan and accordingly see which products to launch here.

COW ±

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A cow has a low business growth rate and a high market share. Just like cows, we milk it.
Meaning we invest in it. Cow products are Garud, Trizol, Stopper, Creeper, Trifen, Myclobil and
Rakshak. These are very profitable for this business to have these products in its portfolio. And
they should use revenue generated from these to maintain product in Star

PROBLEM CHILD ±

These have a low market share but a relatively high growth rate. These create a problem for the
businesses. These products are Macrosul (wp), Marcosul (wdg), Ekomin and Bilaxyl.

DOGS ±

They not only have a low market share but also a low market growth. Since they do not have a
high market share, their chances of gaining one are very limited. The only solution is to get rid of
them. That is they divest. They should get rid of Tiranga, Heera, Mealy break and Benstar
(benfit)

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