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S U M M E R P R O J E C T R E P O R T

2012

2011

Study of Trade policies of competitor companies as per the bench mark and compare with them to analyze the expectations of trade in Kurnool, Nandyal and Nellore regions of A.P.

SUBMITTED TO
Mr.M.N.RAO BUSINESS MANAGER DHANUKA AGRITECH LIMITED HYDERABAD (A.P.)

SUBMITTED BY
VIJAY DEMOCRATE PGDABM 2010-12 NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR (RAJ.)

ACKNOWLEDGEMENT

I would like to extend my deep sense of gratitude to Dhanuka Agritech ltd. especially Mr. Kamal Kumar Sr. general manager for giving me the opportunity to work in this company as summer trainee, which has been a pleasant experience for me.

I am also thankful to Mr. M. N. Rao Business Manager whose guidance and encouragement during the course of this project has been valuable. My thanks are to Mr.Hussainavalli A.R.M., Mr.V. Sheshavali AM, Mr. Lokeshwar Reddy AM, Dr. M. Parashuramaiah, Development Manager, Dhanuka Agritech ltd. Whose valuable suggestions were of immense help to me.

I am also grateful to my director Dr. Kamal Kumar without whose support this project would have not been complete. I wish to express my thanks to all my friends especially Prashant Dharapure, Sandip Dongare, Chandan Kumar, Pankaj Vijay Jadhao, Amol Jadhav, Chirag Jain who have been offering advice and suggestions which were of great help to me.

I am also thankful to all Niamies and faculty especially Prasad sir who were constantly encouraging me. I wish to thank all the respondents who were kind enough to spend their valuable time for my project.

Lastly but most importantly I am greatly indebted to my parents who have been the sole cause for my progress in life. Thank you my dear parents.

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DECLARATION

This is to declare that, I, Vijay Democrate, student of Post Graduate Programme in Agri Business Management (2010-2012), NIAM, JAIPUR, have given original data and information to the best of my knowledge in the project report titled Study of Trade policies of competitor companies as per the bench mark and compare with them ours to analysis with expectations of trade in A.P and that, no part of this information has been used for any other assignment but for the partial fulfillment of the requirements towards the completion of the said course.

Vijay Democrate

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CERTIFICATE

This is to certify that Mr. Vijay Democrate, bonafide student of Post Graduate Program in Agri- Business Management (2010-2012); NIAM; JAIPUR participated as summer trainee in our company for the period April - June. He has successfully completed his summer project titled Study of Trade policies of competitor companies as per the bench mark and compare them with ours to analysis the expectations of trade in A.P, towards the partial fulfillment of their requirements for the course.

I wish him all success in future.

Dr. Kamal Mathur Director, PGPABM (Marketing) NIAM, JAIPUR

Mr. M. N. Rao Business Manager Dhanuka Agritech Ltd. Hyderabad.

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EXCECUTIVE SUMMARY
The study titled Study of Trade policies of competitor companies as per the bench mark and compare them with ours to analysis with expectations of trade in A.P was conducted for Dhanuka Agritech Ltd. in project areas viz. Kurnool including Nandyal, and Nellore districts of Andhra Pradesh to carry out the comparative study of trade policies of the bench mark competitor companies and to evaluate performance of existing policy of the company in terms of expectations of the respondents in the market. Market leaders in the A.P. pesticide market are Syngenta, Bayer Crop science, DuPont, Rallis and Dhanuka Agritech ltd. The major response in the market about the existing policy is good as compare to other market leaders. But in terms of Brand Image, Promotional activities and Field activities company has to look after. The respondents are majorly demanding new molecules or formulations from the house of Dhanuka. The company should build good relations with the channel partners/PDs by providing them foreign tours or surprise tour with increasing turnover criterion. A slight increase in the margin can be a good move toward building a good relation with the distributors and PDs. The average credit period given by company to dealers is 90 days and respondents are satisfied with that. Most of the dealers are not happy with the companies imitating strategy of the popular products by the market leaders like Bayer and Rallis so they want new molecules to be released, they also not happy with incentives offered by company and fieldwork of company. In term of sales returns company here again got good response from the market and it stands 2nd in the market after Makhtesham Agan ltd. But in terms of margin given to the distributors and dealers company is behind Rallis and some local companies like HCL and NACL. As far as product price is concerned company stands after other Indian and local companies like HCL, NACL and MAL.

However, Dhanuka Agritech ltd. can compete with the existing market leaders while adopting the cost leadership, differentiation and focus strategies. Cost leadership By offering formulations / molecules at lower prices to potential buyers, differentiation by Positioning the product in the NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 5

minds of consumers as superior to other companies products in terms of quality and other features like higher efficiency, no sedimentation problems during cases of long storage by obtaining superior quality material from suppliers. And lastly, Focus strategy by Concentrating on loyal customers and few potential areas rather than wasting resources in multiple areas. So in short there is an immense scope for the company to expand its business with following smart steps as research findings have suggested.

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TABLE OF CONTENTS
S. No

Particulars

Page No. 5 7 8 10 13 15 18 21 27 27 36 43 50

1. 2. 3. 4. 5. 6. 7. 8. 9.

Executive Summary Table of contents Introduction Andhra Pradesh State Profile Research methodology Research design Pesticides Industry overview Company Profile

DATA ANALYSIS 9.1 KURNOOL 9.2 NANDYAL 9.3 NELLORE 10. RESEARCH FINDINGS 10.1 KURNOOL 10.2 NANDYAL 10.3 NELLORE 12. SWOT ANALYSIS 13. RECOMMENDATIONS 14. Appendix 1: Questionnaire for dealers/Distributors survey
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15.

REFERENCES

62

INTRODUCTION
Although agriculture contributes only 14.3% GDP, its importance in the countrys economic, social, and political fabric goes well beyond this indicator. The rural areas are still home to some 72 percent of the Indias 1.1 billion people, a large number of whom are poor. Most of the rural poor depend on rain-fed agriculture and fragile forests for their livelihoods. The sharp rise in foodgrain production during Indias Green Revolution of the 1970s enabled the country to achieve selfsufficiency in food grains and stave off the threat of famine. Indias rice yields are one-third of Chinas and about half of those in Vietnam and Indonesia. According to the Centre for Monitoring Indian Economy (CMIE), crop production is expected to rise by 1.7 per cent during FY 10 and food grain production is expected to increase by 1.1 per cent and wheat production is projected to remain at the same level of 80 million tonnes as estimated for FY 09 while rice production is projected to increase by 1.1 per cent to 98.8 million tonnes. Production of coarse cereals and pulses is also expected to rise in FY 10. So we can judge by ourselves that India is taking bigger and bigger steps towards success and this is the time when farmers are keen to adopt new techniques and innovations in agriculture. There is an immense scope for seed as well as pesticide industry to come together contribute in the success of Indian Agriculture which is not a business in India but a religion for every one as it not only satisfies hunger but an only source of more than half of the countrys population. Though Green Revolution has contributed immensely in achieving self-sufficiency in food grain production, India still needs to feed its burgeoning population. But there considerable losses in yields due to micronutrient deficiencies and pest attack damage which we can ill afford to neglect because the only way we can feed our increasing population is to increase productivity with controlling pest damage and giving micronutrients. The main causal factor for situation is intensification of agriculture over the years without adequate replenishment. This loss of micronutrients largely affects the efficiency of other nutrients, crop production, crop quality and returns to farmers. NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 8

Sustainable agricultural production has always assumed importance in the wake of growing population of the country. Pesticides are one of the invaluable inputs in sustaining the agricultural production as substantial food production is lost due to insect pests, plant pathogens, weeds etc. Crop losses in India due to pests such as insect pests, rodents, diseases and weeds range between 10 to 30% annually depending on severity of attack and climatic and environmental conditions. However, the consumption of pesticides is quite low in India. Project is titled as Study the trade policies of competitor companies as per the bench mark and compare them with ours for analyzing the expectation of trade in A.P. Trade or marketing policy and channel relations are highly matter for the companys performance in the market. The expectations of every channel level bodies from the company are fulfilled as their marketing policy design. Companys expectation regarding this project is to evaluate and analyze its existing trade policy while studying that of different competitors. Following objectives are there for this project, which are fulfilled in the report: To analyze to what extent the marketing policies are helpful in improving the bond between the channel and companies and also study whether it is improving any discipline at channel level. How far they are creating relationship between the Distributors, PDs and Companies and Its impact on buying behaviour of channel and company. Analyze how much importance channel is giving for the marketing policies of various companies.

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ANDHRA PRADESH

State profile of A.P. Andhra Pradesh is the fourth largest state in India with an area of 27.4 million ha. About 40% of the area (10.9 million ha.) is the net cultivated area and around 70% of the population depends on agriculture. So far pesticide consumption for the last year was 1015 Million tones. NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 10

The state has 23 districts classified under three regions viz. Telangana (10 including Hyderabad), Coastal Andhra (9 districts) and Rayalaseema (4 districts). The state has tropical to subtropical climate. Humid to semi-humid conditions prevail in the coastal area, while in the interiors of the state the climate is arid to semiarid. . The major crops grown here include paddy, sugarcane, oilseeds, beans, and pulses (edible seeds from crops such as peas, lentils, and beans. Agriculture plays a vital role in the economy of the state. Project areas are Nellore and Kurnool.

Nellore district
Pesticide consumption: 125 Million Tones

Nellore district is the southernmost coastal district of Andhra Pradesh, India. The most important river in the District is Pennar River. Swarnamukhi and Kandaleru are the other two rivers in the District, which flow in the West to East direction and merge into the Bay of Bengal. The total geographical area of the District is 13.16 lakh Hectares. Of this 41.3% alone is cultivable area while 18.7% is forest area. Agriculture is the main occupation of the people of the district. The princ iple crops which are grown in Nellore are Paddy, Jowar, Bajra along with Tobacco, Chillies, Groundnut, Sugar Cane.A variety of agro based Industries such as rice bran oil plants, sugar factories, rice and

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paraboiled rice mills have come up. As Nellore has a long coast line, farmers have a good time in the aquaculture. Fish is also available in plenty.

Kurnool
Pesticides consumption: 225 million tones Agriculture - Major Food crops Paddy, Jowar, Bajra Major Commercial crops- Groundnut, Cotton, Chillies and Sugarcane Major oilseeds- Groundnut, Sunflower Major Horticultural crops -Mango, Citrus, Banana, Onions, Tomatoes, Chillies and Flowers like Crossandra, Jasmine

Background: Kurnool district is one of the important districts in the state of Andhra Pradesh and the most prominent district of the Rayalaseema Region. Kurnool district is gifted with rich natural resources. The district is bounded on the North by major rivers of Krishna and Tungabhadra. One of the largest Hydro-Electric Power Project is constructed across river Krishna at Srisailam

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Research Methodology
Sampling and Data collection Andhra Pradesh is divided in to three major zones, viz. Telangana, Rayalaseema and Coastal Andhra. Rayalaseema region having Kurnool and Nandyal as project market area the potential market areas for the company. Coastal Andhra region having Nellore as project market area is also a big market for the same. Among these three major areas, Kurnool district including Nandyal, alone having turnover above 9 Crores. Disguised and non disguised questionnaires were prepared for PDs/dealers/distributors. Personal interview method was adopted for data collection for both PDs/dealers/distributor and marketing staffs. Almost all the dealers/PDs/Distributors and marketing officers were asked within all these 3 territories. Source of information

Primary source of information


Personal interviews of PDs/distributors/dealers and Marketing officers. Discussion with some retailers. Discussion with marketing officials of competitor companies(Non Disguised) Discussion with experienced Dhanuka loyal preferential dealers (PDs). Discussion with ASM and Area manager of project areas.

secondary source of information NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR

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There is no secondary source for the information related to trade/marketing policies of the competitor companies.(Confidential information for the companies)

Sample Size No. of PDs / Dealers & Distributors covered 20

Market Area covered Kurnool Market Area

Villages / Markets covered Kurnool town, Shanthi Nagar, Venkatpuram stage, Ieja Mandal, Macherla - Gattu mandal, A.Boodidapadu, Vill.B.Satyanarayana shetthy, Nandikotkur Nandyal town, Atmakur, valgodu, Rudravaram, chhagalamarri, Arjunapuram Derripodu, Alagadda, Bengampalli, Nellore town, Atmakur, Nagireddy palem Vinjamur, Udaigiri, Kaligiri, Kavali, Allore, Raju palem

No of Marketing staffs covered 1 M.O.+ 1 DD

Nandyal Market Area

45

2 M.O. + 2 DD

Nellore Market Area

45

4 M.O. + 2 DD

Total

110

18

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Research design
SCOPE: To analyze the different approaches by MNCs and few leading major Indian companies, its perception and impact on motivation of Distributors / PDs.

OBJECTIVES: 1. To analyze to what extent the marketing policies are helpful in improving the bond between the channel and companies and also study whether it is improving any discipline at channel level. 2. How far they are creating relationship between the Distributors, PDs and Companies and Its impact on buying behavior of channel and company. 3. Analyze how much importance channel is giving for the marketing policies of various companies.

IN-DEPTH STUDY OF TRADE POLICIES OF COMPETITOR COMPANIES AS PER THE BENCHMARK AND COMPARE WITH OURS TO ANALYZE THE

EXPECTATIONS OF THE TRADE.

Clarify different discounts offered by the companies to the Distributors/PD. Any circulars issued by the competitors for explaining the objectives of the above trade policies. Please specify, any discounts, which is products related or to Generate turnovers etc.

Study the margins provided by various companies for facilitating to grab more marketing share.

MATERIAL & METHODS

1. Questionnaire (Disguised and Non-Disguised)

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2. Respondents a. Distributors b. PDs c. Marketing Staff [of Dhanuka & Competitors

3. Analysis of Data using graphs/charts.

4. The number of PDs / Distributors to be contacted to gather the information must be more

than 10 of each company in at least two different districts.

5. Companies to study NAGARJUNA BAYER CROP SCIENCE MAKHTESHAM HYDERABAD CHEMICALS INDOFIL CHEMINOVA IIL PI Industry

CONCLUSIONS TO GIVE: 1. 2. What improvements you suggest for going close to channel? Study very clearly discounts offered by companies to go closer to the dealers without deviating from their marketing policies. 3. 4. What is the perception of channel Vs Dhanuka over benchmark companies? Your project should give us more information on how we score better over our benchmark companies on our marketing policy. 5. Is it one of the tools for inculcating a sense of responsibility in the channel.

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The data and information required for the study were collected from primary data source. Primary information were collected with the help of disguised and non disguised questionnaires formulated for the PDs/dealers/distributors and discussions with marketing staffs.

Selection of Area Project areas viz. Kurnool, Nandyal and Nellore were allotted by the company itself. Three of these are potential areas for the company.

Duration of study Study was conducted from 18th April to 15th June, 2011 which includes field work starting from 20th April to 20th may, 2011.

Questionnaire and direct interviews Disguised and non disguised questionnaires prepared for the PDs/Dealers/Distributors and direct interviews for the marketing staffs for taking the primary information.

Sampling technique PDs/dealers/distributors were selected on the basis of feedback of marketing officers and Dhanuka Doctors, so to some extent here Judgmental sampling is used. This type of sampling technique is also known as purposive sampling and authoritative sampling. Purposive sampling is used in cases where the specialty of an authority can select a more representative sample from the population based on the authoritys or the researchers knowledge and judgment that can bring more accurate results than by using other probability sampling techniques. Statistical Analysis The data hence analyzed by using SPSS analysis software and MS Excel software. Analysis is presented in the form of tables, charts, graphs, and pie charts etc. NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 17

Limitations of the study Time was major limiting factor for this project because of PDs/distributors/dealers of all bench mark companies with huge potential markets has to cover. Direct interview method adopted for PDs/distributors/dealers, so bias may appear due to reasons like language barriers, human exaggerating nature, social prestige, prejudices, suspicions etc. Secondary information about total turnover, margins including cash discount, product discount and T.O.D. from Internet, journals, Magazines couldnt get collected because these are confidential information as marketing policies for particular company. Some sort of bias may exist through researchers. With the consideration of all constraints and limitations, adequate efforts have taken to minimize biasness and make these efforts more meaningful.

Pesticides Industry Size and Structure


According to the Working Group on Indian chemical industry for the formulation of the Eleventh 5-Year Plan, with an estimated market size of Rs 45 bn, India is the second largest producer of pesticides in Asia. Performance of the Pesticide Industry The domestic pesticide industry is fragmented and characterized by over capacity, low capacity utilization, low investment in R&D and high inventory. The pesticides industry has grown at a CAGR of around 1.60% during FY03- FY09. In India, cotton accounts for the maximum share of pesticide consumption i.e. around 37% followed by paddy (20%). Together they account for around 57% of the total pesticide consumption. As a result pesticide consumption is largely driven by the production trend in these two crops. NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 18

Characteristics of Pesticide Industry


Fragmented Structure As there was no product patent in this industry till 2005, many formulators entered the market and rendered a fragmented structure to the pesticide industry. The major players in the Indian market are United Phosphorous Ltd, Bayer Crop science Ltd, Rallis India Ltd, Syngenta India, Gharda Chemicals and the top ten players have an 85% market share. Bayer Crop science Ltd and Syngenta India Ltd are the market leaders in domestic sales while United Phosphorous Ltd is the largest exporter of pesticides. R&D Requirement During the process patent regime that existed before 2005, the Indian companies concentrated on marketing generic and off-patent products; evidently the R&D investment in the pesticide industry was quite low in India during this time as compared to the global market. Consequently, about 70% of all pesticides used in India are generics. Even though the lack of patents deprived the

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Indian agriculture sector from the benefits of newer and more effective pesticides, India developed competencies in the generics market and is now a net exporter of pesticides. Low Brand Awareness and Price-Sensitive Products The market for pesticides is highly price-sensitive and less brand conscious as it largely caters to farmers. However, farmers need to be educated and made aware of the usage and quality of pesticides. Moreover, due to the prevalence of spurious pesticides in the market, brand awareness becomes critical for the Indian manufacturers.

Consumption Trend of Pesticides


Consumption Trend The pesticide industry in India is self-sufficient as it resorts to imports for meeting only 4% of domestic consumption. However, pesticide consumption in India is very low which could be mainly attributed to the factors such as fragmented land holdings, dependence on monsoons, low awareness among farmers, low level of irrigation etc. Lack of proper knowledge among farmers and usage of spurious pesticides have hindered demand for technical grade pesticides in India. Inadequate development of new products has also affected the demand; however, the need for new products is unavoidable as pests develop a resistance to chemicals that are used repeatedly. Moreover, usage of genetically-modified crops like Bt cotton, which has a resistance towards pests, also hampers the demand for pesticides; in fact, low pesticide consumption can be partly attributed to the advent of genetically modified (GM) seeds. GM crops can combine both herbicide resistance and insect resistance in one seed. For example Bt cotton (introduced in 2002) which is widely used in India is a GM seed which provides high degree of resistance to the American Bollworm, a major pest in India, thereby reducing pesticide usage. Segment-Wise Domestic Consumption of Pesticides In India, insecticides constitute the largest share in domestic consumption followed by fungicides and herbicides mainly because Indias tropical climate is conducive for the growth of insects. The higher cultivation of cotton in India has NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 20

also increased insecticide consumption because cotton has a high incidence of insect attack. India has one of the largest areas of land under cultivation for cotton in the world.

COMPANY PROFILE

BACKGROUND OF DHANUKA AGRITECH LTD. Dhanuka is a well-established group of companies manufacturing and formulating wide range of popular pesticides in various forms. Northern Minerals Ltd. has been the flagship company of the group in pesticides department, was acquired by the group as a sick unit in 1980 and now it has a huge turnover. Dhanuka pesticides ltd., a Public Limited Company, is engaged in manufacturing technical grade pesticide. It became a PLC in the year1985 under The Companys act 1956. NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 21

Dhanuka Group also extended its operation by venturing into seed production under the brand name Dhanuka Seeds. It is engaged in production and distribution of high quality seeds of cereals, pulses, fibers, oilseeds and vegetables. The Group diversified its operations by entering into Pharmaceutical sector and got engaged in manufacture of various drugs under the company name Dhanuka Laboratories Ltd (DLL) since the year 1997.

INTRODUCTION The Dhanuka Group has been one of the leading groups of companies engaged in manufacture of pesticides for last 26 years. This success is the result of their adherence to international standards and efficient practices in every aspect of their operations. The company is known for its quality consciousness and its safe and eco-friendly products. After 26 years of experience, the Group has emerged as a prominent player in pesticides market. The group is having its flagship brand Northern Minerals Ltd., which was acquired as a sick unit in 1980 and at present, it has turned into a high turnover company. Dhanuka Pesticides Ltd., its own company is also a highly respected company for its technical grade pesticides. In 1984, the Group established its R & D unit named Dhanuka Agriculture Research Centre, to boost its research, and it is recognised by Ministry of Science and Technology, Government of India. In the year 1992 it acquired another sick unit called Rajasthan Insecticides and Fertilizers Co. Pvt. Ltd. which is mainly in the business of dust formulations. Dhanuka pesticides Ltd entered into a series of technical tie-ups with Japanese MNCs for its objective of achieving continuous improvement and making available wide range of products to the farming community. It has tie-ups with companies like Takeda Chemical Industries Ltd. Japan, Mitsui Chemical Inc. Japan, Hokko chemical Ind. Co. Ltd, Japan. Northern Minerals Ltd also got technically tied-up with Uniroyal Chemical Company, U.S. The group has a vision of prosperity of farmers through excellence and has corporate mission of life enrichment through science. The Group has established a fair network of distributors, dealers and retailers around the country, supported by the branch offices in major states. The company is also having their own NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 22

marketing and development staff, techno-commercially qualified, trained, and serving around the country.

DIVISIONS At present Dhanuka has presence in three divisions namely pesticide, pharmaceuticals, and seed. PESTICIDES DIVISION Dhanuka is dealing with wide range of agrochemicals such as insecticides, weedicides, fungicides and Plant Growth Regulators. The companies under pesticides division are Northern Minerals Ltd. and Dhanuka Pesticides Ltd.

PHARMACEUTICAL DIVISION The group diversified its business into Pharmaceutical sector in the year 1997 and engaged in manufacture of drugs like Cephalexin, Cephadroxil, 7-ADCA and Simvastatin.

SEEDS DIVISION The Group made a modest beginning with production and distribution of high quality seeds for crops such as sunflower, soybean, wheat, cotton and vegetable seeds of peas tomato, chilies and onion are introduced later on.

COLLABORATIONS Dhanuka Group has made various collaborations with MNCs and other companies to achieve continuous improvements and technical excellence in the agrochemicals market. Companies and the products manufactured/formulated in collaboration with corresponding companies are given in the following table.

Name of The Company

Products

Sumitomo Chemicals Takeda Agro Co. Ltd., Cartap hydrochloride, with brand Caldan NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 23

Japan Mitsui chemicals Inc.,Japan Nissan Chemical Ind., Japan

4G,Caldan 50SP Etofenprox with brand Nukil 10 EC Quizalofop Ethyl with brands Targa super , Phenthoate and Dhanusan

FMC corporation, USA

AAATANK ,DANFURON

with

brand

MARKER

Hokko Chemical Ind. Co. Ltd., Japan Uniroyal Chemical Company Inc.,US

Kasugamycin , with brand Kasu-B Carboxin, brand Vitavax,

Oxycaboxin,Plantvax and Difflubenzuron E.I.DuPont Nemours &co. inc.,U.S Yara International, Norway Methomyl, brand Dunet 12.5 L Samadhan Source: www.dhanuka.com FUTURE PLANS To give more thrust on R&D operations and make available more range of molecules to he farming community. Sharing technical expertise through international tie-ups. Providing Indian farmers with safer and eco-friendly products. Venturing into the micronutrients business and provide farmers more options.

AGROCHEMICAL PRODUCTS Dhanuka offers wide range of products consisting insecticides, fungicides, weedicides. These are as follows.

MOLECULES Thiophanate Methyl 70% WP Endosulfan-35% EC ANA 4.5% Solution W/W Endosulfan 4% DP W/W Monocrotophos 36% SL

BRAND NAME Cover Endodhan-35% EC Dhanumon 4.5% Endodhan 4% DP Monodhan 36% SL

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2,4-D Ethyl Easter 38% W/W Dichlorvos 76% EC W/W Dimethoate 30% EC W/W Methyl Parathion 2% DP Methyl Parathion 50% EC Butachlor 50% EC Ethion 50% EC Copper Oxychloride 50% WP Carbendazim 50% WP Zineb 75% WP Mancozeb 75% WP Isoproturon 50% WP Phorate 10% CG Phosphamidon 85% SL Oxydemeton Methyl 25% EC Sulphur 80% WP Paraquat Dichloride 24% SL Fenitrothion 50% EC Captafol 80% WP Acephate 75% SP Atrazine 50% WP Dhanuzine 50% WP Phenthoate 2% DP Isoproturon 75% WP Carbaryl 50% WP Captan 50% WP Fenvalerate 0.4% DP Pendimethalin 30% EC Propanil 35% EC

Weedmar Domar Diadhan 30% EC Dhanudol 2% DP Dhanumar 50% EC Dhanuchlor 50% EC Dhanumit 50% EC Dhanucop 50% WP Dhanustin 50% WP Dhanuthane Z ? 75 Dhanuka M ? 45 Dhanulon 50% WP Dhan 10 G Dhanucron 85% SL Dhanusystox 25% EC Dhanusul 80% WP Dhanuxone 24% SL Dhanuka Fenitrothion 50% EC Dhanutaf 80% WP Dhanraj Dhanuzine 50% WP Weedmar 80 Dhanusan 2% DP Dhanulon 75% WP Dhanuvin 50% WP Dhanutan 50% WP Triumphcard 0.4% DP Dhanustomp 30% EC Dhanustam 35% EC

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Glyphosate 41% SL Fluchloralin 45% EC Butachlor 5% Gr. Metoxuron 80% WP Anilofos 30% EC Malathion 0.05% + Pyrethrum 0.02% Ziram 27% SC Alphamethrin 10% EC Azadirachtin 0.03% W/W Metalaxyl 8% + Mancozeb 64% WP Table: 2

Noweed Dhanulin 45% EC Dhanuchlor 5% Gr. WIP ? 999 Anilodhan Kilfast Dhanuka Z ? 27 Alphadhan ? 10 Neemraj Dhanuxyl Source: www.dhanuka.com

DOMESTIC MARKET Dhanuka has been a forerunner when it comes to its domestic market. India is a vast market of agrochemicals and still at instauration. While the other domestic companies are trying to survive in the highly globalised market, Dhanuka is one of the domestic companies who have made its mark by constantly offering its quality products to the farming community. As it is a Delhi based company it has more prominent market in Northern part as compared to the southern region. Quality of products is the biggest strength of the company followed by its product range. On this platform, the company is not only going to survive in the market but also going to flourish.

Data Analysis
Project Area: Kurnool

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Markets/villages covered:

Kurnool town, Shanthi Nagar, Venkatpuram stage, Ieja Mandal,

Macherla - Gattu mandal, A.Boodidapadu, Vill.- B. Satyanarayana shetthy, Nandikotkur Total annual turnover: 9 crores (including Nandyal)

Market occupying companies in Kurnool market *turnover units in crores


Indofil share, 1 IILshare, 1 MAL share, 1.1 dupont, 1.8 rallis share, 6 rallis share bayer share syngenta NACL share DAL share, 1.4 NACL share, 1 syngenta, 3 bayer share, 2 DAL share MAL share IILshare

As per the primary data source, Kurnool district (Kurnool and Nandyal) is second largest potential market for the company in turnover basis which contributes 9 crores alone. As we look at the market occupying companies, Rallis occupying highest share i.e, 6 crores, followed by Syngenta, 3 crores and Bayer crop science, 2 crores. Dhanuka agritech ltd ranks 5th after Dupont 4th in this series followed by NACL, IIL and Indofil 1 crore each. %age Share of bench mark companies
other lacal comp.share, 19.35 P I share, 3.5 Indofil share, 6.6

*Units in %age
bayer share,10.75 rallis share, 19.80

As we look at the bench mark companies market share in the Kurnool area, Rallis is the market leader followed by Bayer
HCLshare , 4

CHEMINOVAs hare, 4.15 IILshare, 4.15


MAL share, 6.45 DAL share, 15.75

crop science, 2nd rank. Dhanuka agritech ltd ranks 3rdin the series. As figure shown Indofil, Makhtesham Agon ltd, NACL,

NACL share, 5.5

IIL, Cheminova are ranked 4th, 5th, 6th, , 7th and 8th respectively. Other local companies also make a sound share in the market jointly.

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Company margin to distributors


*units in %age dealer margin from company

12 10 8 6 4 2 0

In the series of margins given by the company to the distributors, Rallis is again ahead of all with 10% average margin followed by Bayer crop science with 8-9 % and Dhanuka agritech ltd with 8 % margin.
Ch IN Ral Ba HC NA DA MA am IIL PI DO lis yer L CL L L ino CM CM LFI CM CM CM CM CM CM va CM CM 9 5. 6 8 5 5 5 5 5

% margin

NACL, HCL and other local companies also giving a sound margin. IIL, MAL, Cheminova, PI, Indofil etc. are giving 5 % margins on their stocks.

Series1 10

Company margin to dealers/PD


*units in %age dealer margin from company through distributors

The margin given by the distributors to

Company margin to dealers/PD


Axis Title 8 6 4 2 0

the dealers vary from dealer to dealer, distributors giving margins as per their choice. If we go with average Margin Bayer and Dhanuka both are ahead of

Cha IND ralli Bay NA DA MA HCL min IIL PI OFI s er CL L L ova CM CM L CM CM CM CM CM CM CM CM 6 7 5 5 7 5 5 5 5 6

all with 7% margin followed by Rallis and Indofil with 6% and rest all the companies giving 5% each.

Series1

Credit period given by various companies


*units in no. of interest free credit days

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR

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160
140 120 100 80 60 40 20 0 7 90 90 90 150

Most of the dealers and distributors take credit from the companies for their stocks, so credit period offered by the company is playing a key role to perform in the market.
60
30

60

60

60

Makhtesham Agon ltd with 150 days interest free days/Credit period is ahead of all the companies followed by Dhanuka Agritech with 90120 days, PI and Indofil also

giving 90 days credit period. Rallis and Bayer are lowest in the terms of credit period with 7 and 30 days respectively.

Cash discount offered by the companies


*units in %age

Chart Title
10 8 6 4 2 0 %age

As shown in the figure ( ) In the course of Cash discount at the time of billing, Rallis and MAL are leading companies with 8% and 6% respectively followed by the rest

IND RAL BAY NA MA CH HCL DAL IIL PI OFI LIS ER CL L EMI CD CD CD CD L CD CD CD CD CD CD 8 5 5 3 5 6 5 5 5 5

companies with 5% each. HCL is having least Cash discount i.e, 3%.

Series1

Turnover Discounts given by the bench mark companies


*units in %age

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR

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MAL is the leading company to give highest Turnover discount of 3% followed by rest all the companies with 2%. Rallis having least average T.O.D.
2 1 2 2 2 3 2 2 2 2

3
2 2 1 1 0

of 1%.

Incentive scheme performance of all the bench mark companies


PI Scheme Indofil Scheme IIL Scheme cheminova Scheme MAL Scheme dhanuka Scheme NFCL Scheme HCL Scheme Bayer Scheme rallis Scheme 0 Fig.4.6 5 10 15 20 25 rank 1 rank 2 rank 3 rank 4 rank 5 rank 6 rank 7 rank 8

As far as Incentive schemes are concerned respondents choice companies are as follows: Rallis having highest choice as Rank 1 with frequency 7 followed by Bayer, 5 and Dhanuka, 5 Thus rank 2 is given highest to Bayer followed by Rallis and Dhanuka. NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 30

Rallis > Bayer > Dhanuka > MAL

Reasonability of the Price of the products


indofil price PI price IIL price cheminova price MAL price DAL price NFCL price HCL price buyer price rallis price 0 Fig. 4.7 5 10 15 20 25 rank 1 rank 2 rank 3 rank 4 rank 5 rank 6 rank 7 rank 8

Price is the key factor which affects purchasing behavior of the farmers who are unknown of Brands, Quality etc. so local and India based companies like HCL, NACL, MAL and DAL etc which are having lower price than the MNCs and hence preferred by the farmers. So MAL is the leading company with highest frequency as Rank 1 as far as price is concerned, followed by Dhanuka, NACL and HCL. Dhanuka also got highest frequency as Rank 2. So it ranks 2nd in this criterion.

Timely supply of the stocks

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indofil supply PI supply IIL supply cheminova supply MAL supply DAL supply NFCL supply HCL supply buyer supply rallis supply 0 Fig. 4.8 5 10 15 20 25

rank 1 rank 2 rank 3 rank 4 rank 5 rank 6 rank 7 rank 8

All the companies are trying their best to market their products so supply of the stocks of all the companies is well timed in this area. But as per the respondents convenience Rallis has become top company for stock supply and convenience. As far as timely supply is concerned Loyalty of brand also matters, it means those respondents who are having distributorship of Rallis and Bayer they said these companies are ahead of all in terms of timely supply. Some local companies and India based companies like HCL, NACL, MAL and DAL are also having well timed supply. Fig. state that Rallis is having highest frequency of rank 1 followed by DAL and Bayer. But Bayer accounts highest frequency of being Rank 2nd followed by MAL and NACL. 3rd ranks highest frequency goes HCL followed by DAL and CHEMINOVA Finally the preference order for the companies is as follows: Rallis>Bayer>DAL>MAL>HCL>NACL

Marketing and Sales Returns policy performance of the company

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5 4 4 3 3 2 2 1 1 0

6.000 5.000 4.000

3.000
2.000 1.000 0.000

Marketing policy performance: fig.() According to the questionnaires all the respondents had to give marks to the companies as per their marketing policy performance. Higher the average points better the companies trade policy. So in this series, respondents of Kurnool say DAL marketing policy is ahead of all the companies followed by Bayer and PI. Local companies like HCL, NACL, and MAL have scored poor in this criterion.

Sales Return and credit note policy: fig.() same as above point assessment sales return and credit note policy also have been calculated. In this series according to the respondents view MAL is leading to all the companies and almost all the respondents say MAL having best sales return policy which is liked by them followed by DAL, Rallis and Bayer.

Marketing policy satisfaction level

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marketing policy satisfaction level highly


somewha t satisfied 20% satisfied 5%

In Kurnool region, according to the pie chart, 5% of the respondents say they are highly satisfied with the marketing policy of DAL, 75% say they are only satisfied with it and rest 20% say they are somewhat satisfied with the same.

satisfied 75%

As we sum up all the variables like timely supply, reasonable price, incentive scheme, margin etc, marketing policies summarizes all them and gave result as pie chart states above.

So there is 20 % scope to improve the policy is there. So company has to look after these factors.

Respondents view about Gap in the policy


yes, 15

no, 85

When the respondents are asked about the gaps in the policy of Dhanuka at channel level, 85% of them are saying that there is no any gap at the channel level and 15% of them are saying that yes there is gap in the channel level. It reflects that there is a good image in the market about the marketing policy of Dhanuka Agritech Ltd. and also 15 % scope of improvement in this criterion.

Suggestions

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR

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25 20 15 10 5 0 new molecules raise cash introductio discount n 20 18

raise Turn Over Discount 14

DECREASE INTEREST 0

RAISE credit period 0

improve field activities 16

promotiona l activities 19

others

Series1

According to the respondents suggestions, following suggestions order has got:

New Molecule should be introduced: highest 20 frequency is there for this suggestion. It means in Nandyal region all the respondents are prioritize this suggestion as their 1st choice from the company. Raise Cash Discount: second highest frequency,18 is of raising cash discount, it means the respondents of the Nandyal are thinking that raising Cash discount is their 3rd important suggestion which can be benefit for them. Raise turnover Discount: third highest frequency, 14 is of raising TOD. The respondents are expecting from company to give higher TOD and treating this suggesting as 3rd most important. Improve field activities: this suggestion ranks 4th with 16 frequency. In which respondents expect to improve field activities like raise the no. Of Dhanuka doctors in the crop seasons and other field demos also. Promotional activities: there is a large no. of respondents with frequency 19 who think that company should give more focus to the promotional activities like village campaigning, jeep campaigning, rallies, field demonstrations etc. Other suggestions like Decrease Interest, Raise credit period, and others: these suggestions are having very low frequency than above suggestions. It means company is already strong in this part and no much mass is expecting these things from the company.

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Project Area:

Nandyal valgodu, Rudravaram, chhagalamarri,

Markets/villages covered: Nandyal town, Atmakur, Arjunapuram, Derripodu, Alagadda, Bengampalli Total annual turnover: 5.62 crores

Market occupying companies with market share in Nandyal


other lacal comp.shar e, 19.35 rallis share, 15.7 5

Nandyal is the one of the potential market for the company in entire A.P. as we talk about the market share of the top

PI share, 3.5

Indofil share, 6.6 CHEMINOV Ashare, 4.1 5 IILshare, 4. MAL 15 share, 6.45

bayer share, 19.8

companies, Bayer crop Science is the market leader in this region with 19.8% followed by Rallis with 15.75% and Dhanuka Agritech ltd. with 10.75%

DAL share, 10.7 5

HCLshare NACL , 4 share, 5.5

which ranks 3rd. MAL, HCL, NACL also make a sound share of 6.4%, 5.5%, 4% respectively. Other local and small

companies also contribute a handsome share of 19.35% together.

Company margin to distributors


*units in %age dealer margin from company

12 10 8 6 4 2 0

Ch IN Ral Ba HC NA DA MA am IIL PI DO lis yer L CL L L ino CM CM LFI CM CM CM CM CM CM va CM CM 9 5. 6 8 5 5 5 5 5

In the series of margins given by the company to the distributors, Rallis is again ahead of all in Nandyal with 10% average margin followed by Bayer crop science with 8-9 % and Dhanuka agritech ltd with 8 % margin. NACL, HCL and other local companies are also giving a sound margin. IIL, MAL, Cheminova, PI, Indofil etc. are giving 5 % margins on their stocks.

% margin

Series1 10

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR

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Company margin to dealers/PD


*units in %age dealer margin from company through distributors

12 10 % margin 8 6 4 2 0

The margin given by the distributors to the dealers vary from dealer to dealer, distributors giving margins as per their choice here again. If we go with average Margin, Rallis ahead of all with 10% margin followed by Bayer with 9% and
Ch IN Ral Ba HC NA DA MA am IIL PI DO lis yer L CL L L ino CM CM LFI CM CM CM CM CM CM va CM CM
9 5. 6 8 5 5 5 5 5

Dhanuka with 7-8% and rest all the companies giving 5% each. Local companies like HCL and NACL are also giving handsome margin of 6% each.

Series1 10

Credit period/ interest free days given by different companies


*units in days 160 140 120 100 80 60 40 20 0

Nandyal Market is mostly creditoriented i.e, dealers and distributors take credit from the companies for their stocks, so credit period offered by the company is playing a key role to
IND RAL BAY NA MA CHE HCL DAL IIL PI OFI LIS ER CL L MI CPD CPD CPD CPD L CPD CPD CPD CPD CPD CPD 7 30 30 30 90 150 60 60 60 60

perform in the market. Makhtesham Agon ltd with 150 days interest free days/Credit period is ahead of all the companies followed by Dhanuka

Series1

Agritech with 90-120 days, PI and Indofil also giving 60 days credit period. Rallis and Bayer are lowest in the terms of credit period with 7 and 30 days respectively.

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Cash discount offered by the companies


*units in %age

As shown in the figure In the course of Cash discount at the time of billing, Rallis and MAL are leading companies with 11% and 6% respectively followed by the rest companies with 5% each. As far as TOD is concerned MAL and DAL are ahead of all the companies with 3 % each.

12 10 8 6 4 2 0

RA LLI S CD

BA CH IN HC NA DA M YE EM IIL PI DO L CL L AL R I CD CD FIL CD CD CD CD CD CD CD 5 5 5 6 5 5 5 5

Series1 11 5

Incentive scheme performance of all the bench mark companies


rallis price Indofil Scheme IIL Scheme cheminova Scheme MAL Scheme dhanuka Scheme NFCL Scheme HCL Scheme Bayer Scheme rallis Scheme 0 5 10 15 20 25 30 35 40 45 50 RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 RANK 6 RANK 7 RANK 8

As far as Incentive schemes are concerned respondents choice companies are as follows: Rallis having highest choice as Rank 1 with frequency 13 followed by Bayer, 12 and Dhanuka, 10 Thus rank 2 is given highest to Bayer followed by Dhanuka and Rallis. Hence the choice order is as follows: Rallis > Bayer > Dhanuka > MAL>NACL

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Reasonability of the Price of the products


rallis price Indofil Scheme IIL Scheme cheminova Scheme MAL Scheme dhanuka Scheme NFCL Scheme HCL Scheme Bayer Scheme rallis Scheme 0 20 40 60 80 100 RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 RANK 6 RANK 7 RANK 8 RANK 9 RANK 10 RANK 1

Pricing is the key factor which affects purchasing behavior of the farmers who are unknown of Brands, Quality etc. so local and India based companies like HCL, NACL, MAL and DAL etc which are having lower price than the MNCs and hence preferred by the farmers.
So MAL is the leading company with highest frequency as Rank 1 as far as price is

concerned, followed by Dhanuka, NACL and HCL.


Dhanuka also has got highest frequency as Rank 2. So it ranks 2nd in this criterion. NACL and HCL are 3 and 4 in the series. Hence choice order is as follows:
rd th

MAL>DAL>NACL>HCL> Cheminova Timely supply of the stocks


indofil supply PI supply IIL supply cheminova supply MAL supply DAL supply NFCL supply HCL supply buyer supply rallis supply 0 10 20 30 40 50 RANK 1 RANK 2 RANK 3 RANK 4 RANK 5 RANK 6 RANK 7 RANK 8 RANK 9

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR

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Those respondents who are having distributorship of Rallis and Bayer they said these companies are ahead of all in terms of timely supply. Some local companies and India based companies like HCL, NACL, MAL and DAL are also having well timed supply. Fig. state that Rallis is having highest frequency of rank 1 followed by MAL and NACL. But Bayer accounts highest frequency of being Rank 2nd followed by DAL and NACL. 3rd ranks highest frequency goes HCL followed by DAL and CHEMINOVA Finally the preference order for the companies is, Rallis>Bayer>DAL>MAL>NACL

Marketing and Sales Returns policy performance of the company


4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50

5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50

1.00
0.50 0.00

0.00

Marketing policy performance: fig.() According to the questionnaires all the respondents had to give marks to the companies as per their marketing policy performance. Higher the average points better the companies trade policy. So in this series, respondents of Nandyal say DAL marketing policy is ahead of all the companies followed by Bayer, Indofil, P I. Local companies like HCL, NACL, and MAL have scored poor in this criterion.

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Sales Return and credit note policy: fig.() same as above point assessment sales return and credit note policy also have been calculated. In this series according to the respondents view MAL is leading to all the companies and almost all the respondents say MAL having best sales return policy which is liked by them followed by DAL, Rallis and Bayer.

Marketing policy satisfaction level In Nandyal region, according to the pie chart, 9% of the respondents say they are highly satisfied with the marketing policy of DAL, 40% say they are only satisfied with it and rest 51% that is more than half say they are somewhat satisfied with the same. As we sum up all the variables like timely supply, reasonable price, incentive scheme, margin etc, marketing policies summarizes all them and gave result as pie chart states above. So there is much scope to improve the policy is there. So company has not performed well in the terms of marketing policies here and has to look after these factors. Respondents view about Gap at the channel level
Yes there are gaps in present policies No there are no gaps in present policies somewh at 51% satisfied 40%

highly satisfied With DAL 9%

2%

When the respondents are asked about the gaps in the policy of Dhanuka at channel level, 85% of them are saying that there is no any gap at the channel level and 15% of them are saying that yes there is gap in the channel level. It reflects that there is a good image in the market about the

98%

marketing policy of Dhanuka Agritech Ltd. and also 15 % scope of improvement in this criterion.

Respondents Suggestions

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Chart Title
40.00 35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00

Axis Title

new molecules introducti on 38.00

raise cash discount 36.00

raise Turn Over Discount 35.00

DECREASE INTEREST 1.00

RAISE credit period 0.00

improve field activities 34.00

promotion al activities 32.00

others

Series1

0.00

According to the respondents suggestions, following suggestions order has got:


New Molecule should be introduced: highest 38 frequency is there for this suggestion. It means in Nandyal region all the respondents are prioritize this suggestion as their 1st choice from the company. Raise Cash Discount: second highest frequency,36 is of raising cash discount, it means the respondents of the Nandyal are thinking that raising Cash discount is their 2 nd important suggestion which can be benefit for them. Raise turnover Discount: third highest frequency, 35 is of raising TOD. The respondents are expecting from company to give higher TOD and treating this suggesting as 3rd most important. Improve field activities: this suggestion ranks 4th with 34 frequency. In which respondents expect to improve field activities like raise the no. Of Dhanuka doctors in the crop seasons and other field demos also. Promotional activities: there is a large no. of respondents with frequency 32 who think that company should give more focus to the promotional activities like village campaigning, jeep campaigning, rallies, field demonstrations etc. Other suggestions like Decrease Interest, Raise credit period, and others: these suggestions are having very low frequency than above suggestions. It means company is already strong in this part and no much mass is expecting these things from the company.

Project Area:

Nellore Page 42

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR

Markets/villages covered:

Nellore town, Atmakur, Nagireddy palem Vinjamur, Udaigiri, Kaligiri, Kavali, Allore, Raju palem crores

Total annual turnover:

Market occupying companies with market share in Nellore As we look at the bench mark companies market share in the Kurnool area, Bayer is the market leader with 20% share followed by Rallis with 13%, 2nd rank and HCL with 9.5% share ranks 3rd. Dhanuka agritech ltd ranks 4th in the series. As figure shown NACL, Makhtesham Agon ltd, PI, Cheminova, Indofil, IIL, are also making handsome shares ranked 5 , 6 , 7 , 8 ,9 and so on respectively. Other local companies also making a sound share in the market altogether .
th th, th th, th

other lacal comp.shar e, 18.5 PI share, 4.8 Indofil share, 4.5 CHEMINO VAshare, 4.7 IILshare, 4 .5 MAL share, 5.5

rallis share, 13

bayer share, 20

DAL share, 8.5

NACL share, 6.5

HCLshare , 9.5

Company margin to the distributor


9 8 7 6 5 4 3 2 1 0

Cha IND Rall Bay NA MA HCL DAL min IIL PI OLF is er CL L ova CM CM I CM CM CM CM CM CM CM CM 5 7 8 5 5 6 8 6 6

In the series of margins given by the company to the distributors, Rallis, IIL and NACL are again ahead of all with 8% average margin each followed by HCL with 7%, PI and Indofil with 5% each. Bayer crop science and Dhanuka Agritech ltd. are lowest in the series with 5% margin. NACL, HCL and other local companies are giving a sound margin on their stocks.

Series1 8

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Company margin to dealers/PD


*units in %age dealer margin from company through distributors

16 14 12 10 8 6 4 2 0

Cham INDO Rallis Bayer HCL NACL DAL MAL IIL PI CM LFI inova CM CM CM CM CM CM CM CM CM 10 12 14 8 9 8 7 7 7 7

Series1

The margin given by the distributors to the dealers vary from dealer to dealer, distributors giving margins as per their choice. If we go with average Margin HCL is ahead of all the competitors followed by Bayer with 12% and Rallis with 10%. Dhanuka ranks 4th with 8-9% margin followed by NACL and MAL with 8%. Cheminova, IIL, PI, and Indofil are lowest in the series with 7% each.

Credit period given by different companies


160 140 120 100 80 60 40 20 0 RALL BAY NAC CHE IND HCL DAL MAL IIL PI IS ER L MI OFIL CPD CPD CPD CPD CPD CPD CPD CPD CPD CPD 7 30 60 30 90 150 60 90 60 60

Series1

Most of the dealers and distributors take credit from the companies for their stocks, so credit period offered by the company is playing a key role to perform in the market. Makhtesham Agon ltd with 150 days interest free days/Credit period is ahead of all the companies followed by Dhanuka Agritech with 90-120 days, IIL is also giving 90 days credit period. HCL, Cheminova, PI, Indofil are giving 60 days each. Rallis and Bayer are lowest in the terms of credit period with 7 and 30 days respectively.

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Page 44

Cash discounts given by the bench mark companies As shown in the figure ( ) In the course of Cash discount at the time of billing, Rallis and Bayer are leading companies with 11% and 9% followed by DAL with 8% and HCL, NACL with 7% each. Rest companies like Cheminova, IIL, PI, Indofil are next in the series with 6 % each.
12 10 8 6 4 2 0

RALL BAY CHE HCL NAC DAL MAL IIL IS ER MI CD L CD CD CD CD CD CD CD 9 7 7 8 7 6 6

IND PI OFIL CD CD 6 6

Series1 11

3.5 3 2.5 2 1.5 1 0.5 0 RAL LIS TO D Series1 0

Turnover Discounts given by the bench mark companies MAL and DAL are the leading companies to
che BAY NA MA ind HCL DAL min IIL PI ER CL L ofil ova TO TO TO TO TO TO TO TO D D TO D D D D D D D 0 2 2 3 3 2 2 2 2

give highest Turnover discount of 3% followed by rest all the companies with 2%. Rallis and Bayer are not giving any TOD to the dealers.

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Incentive scheme performance of all the bench mark companies


PI Scheme Indofil Scheme IIL Scheme cheminova Scheme MAL Scheme dhanuka Scheme NFCL Scheme HCL Scheme Bayer Scheme rallis Scheme 0 5 10 15 20 25 30 35 rank 1 rank 2 rank 3 rank 4 rank 5 rank 6 rank 7 rank 8

As far as Incentive schemes are concerned respondents choice companies are as follows: Bayer having highest choice frequency of 15 as Rank 1 followed by Dhanuka, 8 and Rallis, 7. Thus rank 2 is given highest to Rallis followed by Bayer and HCL, NACL and DAL. Rank 3rd is also given highest to DAL followed by HCL and Rallis. Hence the preferred order of the choice is as follows: Bayer >Rallis> Dhanuka>HCL > MAL>NACL

Reasonability of the Price of the products


indofil price PI price IIL price cheminova price MAL price DAL price NFCL price HCL price buyer price rallis price 0 5 10 15 20 25 30 35 rank 1 rank 2 rank 3 rank 4 rank 5 rank 6

rank 7
rank 8

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Price is the key factor which affects purchasing behavior of the farmers who are unknown of Brands, Quality etc. so local and India based companies like HCL, NACL, MAL and DAL etc which are having lower price than the MNCs and hence preferred by the farmers. So MAL is the leading company with highest frequency as Rank 1 as far as price is concerned, followed by Dhanuka, NACL and HCL. Dhanuka also got highest frequency as Rank 2. So it ranks 2nd in this criterion.

Timely supply of the stocks


indofil supply PI supply IIL supply cheminova supply MAL supply DAL supply NFCL supply HCL supply buyer supply rallis supply rank 1 rank 2 rank 3 rank 4 rank 5 rank 6 rank 7

10

15

20

25

30

35

40

rank 8

All the companies are trying their best to market their products so supply of the stocks of all the companies is well timed in this area. But as per the respondents convenience Dhanuka has become top company for stock supply and convenience. As far as timely supply is concerned Loyalty of brand also does matters, it means those respondents who are having distributorship of Rallis and Bayer they said these companies are ahead of all in terms of timely supply. Some local companies and India based companies like HCL, NACL, MAL and DAL are also having well timed supply. Fig. state that Dhanuka is having highest frequency of rank 1 followed by Rallis, Bayer, and HCL. But NACL accounts highest frequency of being Rank 2nd followed by Bayer and Rallis. 3rd ranks highest frequency goes HCL followed by DAL, Bayer and Rallis. Finally the preference order for the timely supply is as follows:

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DAL> Rallis>Bayer >HCL>NACL>MAL Marketing and Sales Returns policy performance of the company

5.00 4.50 4.00 3.50 Axis Title 3.00 2.50 2.00 1.50 Axis Title

5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00

1.00
0.50 0.00

Sales Return and credit note policy: fig.() same as above point assessment sales return and credit note policy also have been calculated. In this series according to the respondents of Nellore view MAL is leading to all the companies and almost all the respondents say MAL having best sales return policy which is liked by them followed by DAL, Cheminova, IIL ,Rallis and Bayer.

Marketing policy performance: fig.() According to the questionnaires all the respondents in Nellore had to give marks to the companies as per their marketing policy performance. Higher the average points better the companies trade policy. So in this series, respondents say DAL marketing policy is ahead of all the companies followed by Bayer, MAL and Rallis. Local companies like HCL and NACL have scored poor in this criterion.

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Marketing policy satisfaction level


highly satisfied With DAL ,9

In Nellore region, according to the pie chart, only approx. 23% of respondents say they are highly satisfied with the marketing policy of DAL, 77% say they are only satisfied with it. As we sum up all the variables like timely supply, reasonable price, incentive scheme,

satisfied, 30.00

margin etc, marketing policies summarizes all them and gave result as pie chart states

above. So there is so much to improve the policy is here. So company has to look after these factors.

Respondents view about Gap at the channel level When the respondents are asked about the
Yes there are gaps in present policies
No there are no gaps in present policies 6%

gaps in the policy of Dhanuka at channel level, 94% of them are saying that there is no any gap at the channel level and only 6% of them are saying that yes there is gap in the channel level. It reflects that there is a good image in the market about the marketing

94%

policy of Dhanuka Agritech Ltd. and also 6%

scope of improvement in this criterion.

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Page 49

Respondents suggestions
35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 new molecules introductio n 30.00 raise Turn Over Discount 28.00 RAISE credit period 0 improve field activities 27

raise cash discount 29.00

DECREASE INTEREST 0.00

promotiona l activities 33

others

Series1

According to the respondents suggestions, following suggestions order has got:


Promotional activities: there is a highest no. of respondents with frequency 33 who think that company should first give more focus to the promotional activities like village campaigning, jeep campaigning, rallies, field demonstrations etc. New Molecule should be introduced: highest 30 frequencies are there for this suggestion. It means in Nandyal region all the respondents are prioritize this suggestion as their 2nd choice from the company. Raise Cash Discount: second highest frequency, 29 is of raising cash discount, it means the respondents of the Nandyal are thinking that raising Cash discount is their 3rd important suggestion which can be benefit for them.

RESEARCH FINDINGS AND RESPONDENTS SUGGESTIONS


Kurnool As per the data analysis the exploratory study reveals the following major findings about the market position, these are: Brand Image: Rallis, Biostadt, PI and Indofil are the close competitors in the market. Bayer is far better than all these bench mark companies in Brand image.

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Market share: Dhanuka ranks 3rd with 15.75% market share and hence Bayer, Rallis and MAL are the close competitors for the company. Overall Margin: Rallis and Bayer are again close competitors for the company in terms of overall company margin. Credit Period: Dhanuka is having 90 days of credit period and 2 nd in the series of all the bench mark companies, MAL is ahead of them. Incentive scheme and timely supply performance: Rallis and Bayer are again close performers in both incentive scheme and timely supply. Pricing performance: Local companies like MAL, NACL and HCL are the close competitors of the company with low pricing but ahead of Rallis and Bayer. Marketing policy performance: Dhanuka is ahead of all and mostly liked by the respondents. Rallis, PI and Bayer are the competitor and are also prevailing in the market.

Suggestions from the respondents


New Molecule should be introduced: respondents are demanding new molecule from the company instead of copied formulations of the brand products. Increase Margin: respondents ultimate demand is getting good margin from the company and here in Kurnool also not different case, they are demanding more margin%. Improve field activities: field activities attract and make aware more and more farmers towards the products of the company. So in this area more focus should be given to the field activities. Promotional activities: promotional activities like campaigning should be raised in this area. Other suggestions like Decrease Interest, Raise credit period, and others are having lowest response so these issues need not to be looked after.

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NANDYAL As per the data analysis the exploratory study reveals the following major findings about the market position, these are: Brand Image: Bayer, Rallis, MAL and NACL are the close competitors in the market. Bayer and Rallis are far better than all these bench mark companies in Brand image. Market share: Dhanuka ranks 3rd with 10.75% market share and hence Bayer, Rallis, NACL and MAL are the close competitors for the company. Overall Margin: Rallis and Bayer are again close competitors for the company in terms of overall company margin. NACL is also close in the terms of margin. Credit Period: Dhanuka is having 90 days of credit period and 2 nd in the series of all the bench mark companies, MAL is ahead of them. Incentive scheme and timely supply performance: Rallis, Bayer, MAL and NACL are close performers in both incentive scheme and timely supply. Pricing performance: Local companies like MAL, NACL and HCL are the close competitors of the company with low pricing but ahead of Rallis and Bayer. Marketing policy performance: Dhanuka is ahead of all and mostly liked by the respondents. Rallis, PI and Bayer are the competitors and are also prevailing in the market.

Suggestions from the respondents


New Molecule should be introduced: respondents are demanding new molecule from the company instead of copied formulations of the brand products. Improve field activities: field activities attract and make aware more and more farmers towards the products of the company. So in this area more focus should be given to the field activities. Promotional activities: promotional activities like campaigning should be raised in this area. NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 52

Increase Margin: respondents ultimate demand is getting good margin from the company and here in Kurnool also not different case, they are demanding more margin%. Other suggestions like Decrease Interest, Raise credit period, and others: low response.

NELLORE In this region research findings are as follows: Brand Image: Bayer, Rallis, MAL and NACL are the close competitors in the market. Bayer and Rallis are far better than all these bench mark companies in Brand image. Market share: Dhanuka ranks 4th with 8.5% market share and hence Bayer, Rallis, HCL are the close competitors for the company. Overall Margin: Rallis, NACL, HCL and Bayer are ahead of all and close competitors for the company in terms of overall company margin. Credit Period: Dhanuka is having 90 days of credit period and 2 nd in the series of all the bench mark companies, MAL is ahead of them. Incentive scheme and timely supply performance: Rallis, Bayer, HCL and NACL are close performers and ahead of ours in both incentive scheme and timely supply. Pricing performance: Local companies like MAL, NACL and HCL are the close competitors of the company with low pricing but ahead of Rallis and Bayer. Marketing policy performance: Dhanuka is ahead of all and mostly liked by the respondents. Rallis, PI and Bayer are the competitors and are also prevailing in the market.

Suggestions from the respondents


New Molecule should be introduced: respondents are demanding new molecule from the company instead of copied formulations of the brand products. NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR Page 53

Increase Margin: respondents ultimate demand is getting good margin from the company and here in Kurnool also not different case, they are demanding more margin%. Improve field activities: field activities attract and make aware more and more farmers towards the products of the company. So in this area more focus should be given to the field activities. Promotional activities: promotional activities like campaigning should be raised in this area. Other suggestions like Decrease Interest, Raise credit period, and others: low response.

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SWOT ANALYSIS

Strengths
good brand image

Weakness
Lack of extension services hinders the sale of quality products switching of field staff between different companies very frequently they are not get ting proper training and lacks knowledge of agriculture. Communication gap within distribution channel.

Product line/range
Marketing policy strong marketing, sales & distribution set up PDs distribution channel

Opportunities
introduction of new molecules ensuring loyal PDs and distributors through various schemes and tours company can expand its business as its policies shows positive response in the market

Threats good incentive schemes and motivational strategies by the competitor companies regular entry of local companies

field work and promotional activities of competitor companies

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RECOMMONDATIONS
Although different players in pesticide industry are trying to capture the a better position in the market place but after observation of these two districts these are some recommendation from surveyors sideCompany should look after its Brand image. Its close competitors like Bayer and Rallis are harvesting maximum advantages through Brand image. Hence the company should build Brand image through different promotional activities and awareness programmes. Prosperity of the Farmers and sales of company has direct relationship. Hence company should invest in developing platform for success of farmers by counselling centres, training programs, and soil testing lab. Sudden increase in margin and change in marketing policy is not possible for any company but as per research findings close competitors like local brands are giving high margin, so a slight increase in the margin can be a good move toward building a good relation with the distributors and PDs. Company should go closer to the channels with continuing PD or Dhanuka channel partner (DCP) concept and increase these numbers of PDs as compared to distributors and satisfying them with giving handsome schemes like Gold schemes etc. And Turnover discount. Because in every region major distributors are underselling the stocks and getting benefitted and PDs are feeling demoralized. There is a positive response of companies marketing policy performance in the market. The perception of the channel bodies about the company is good as compare to that of competitors, they are satisfied with ours and hence there is a scope here to expand our business with utilizing this opportunity. Company should give more points scheme and credit note on popular products like Caldan, Targa Super, Dhanuvit etc. It should also be given for other products of Dhanuka to increase sales.

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Suggested Strategies for Dhanuka Agritech Ltd. As DAL is at good position with sound marketing policy as compared to other bench mark companies after Bayer and Rallis, it has to adopt a better strategy vis--vis Bayer and Rallis to challenge them in the market. For any firm to become market leader either it should adopt cost leadership or differentiation or focus strategy. Cost leadership strategies Offering formulations/molecules at lower prices to potential buyers. Getting material from suppliers at low cost. Efficient distribution and management at channel level. Optimal outsourcing from outside suppliers. Differentiation strategies Positioning the product in the minds of consumers as superior to other companies products in terms of quality and other features like higher efficiency, no sedimentation problems during cases of long storage by obtaining superior quality material from suppliers. Pricing the product at slightly higher prices than competitor companies to put it as premier product before consumers i.e. farmers. Creating a brand image for the product as during the dealer survey major finding is that farmers prefer only brand image to all other attributes of the product. Focus strategies Developing loyal customers as already Dhanuka is having good response among the dealers. Concentrating on few potential areas rather than wasting resources in multiple areas.

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Questionnaire for dealer survey


Project title: Trade policies of competitor companies as per the bench mark and compare them with ours to analyze the expectation of the trade. DEALERS QUESTIONNAIRE
1. Name of the respondent: 2. Trade Name of the Customer: . 3. Address of Place of business: .. .. 4. Contact Phone No .. 5. Annual turnover of the firm (in Rs.): o < 25 Lakh o 25-50 lakh o 50 lakh- 1 crore o 1-3 crore o > 3 crore 6. Number of villages the firm reaches: ............... 7. Which companys product do you sell in your shop? Company Rallis Bayer crop science HCL Nagarjuna chemical Dhanuka Agritech Ltd. Insecticide India ltd Indofil Cheminova Sale (yes/no) % share in total turn over

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P.I. Industry

8. Give ranking to the following companies as per the parameters (1 to 5) (1 = highest, 5 = lowest) s. no. Rallis Company Parameters Retailers incentive schemes Reasonable Price of the product Timely availability Bayer HCL NACL DAL Makhtesha m cheminova IIL PI

2.

3.

9. As a percentage of total turnover, percentage sales in cash and credit: Sales Cash sales Credit sales 10. What are the margins given by different companies to dealers/distributor on their products? s.no. 1 2 3 4 5 6 7 8 9 Company Rallis Bayer crop science HCL Nagarjuna chemical Dhanuka Agritech Ltd. Insecticide India ltd Indofil P.I. Industry Cheminova Margins (%) Credit period (interest free days) Percentage of total turnover

11. Average days of Credit & margins offered by distributor to the dealer/retailer on the products of various companies: S. No 1 2 Company Rallis Bayer crop science Margins (%) Credit period (interest free days)

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3 4 5 6 7 8

HCL Nagarjuna chemical Dhanuka Agritech Insecticide India ltd Indofil P.I. Industry

12. What are the Trade discounts/incentives offered by the companies to the distributors on account of performance or prompt payment? Discounts S. No 1 2 3 4 5 6 7 8 9 Company Rallis Bayer crop science HCL Nagarjuna chemical Makhtesham Dhanuka Agritech Ltd. Insecticide India ltd. Cheminova PI Industry Cash discount Volume discount

13. Give points to the following companies on the basis of their sales return policy performance (1-5) s.no. 1 2 3 4 5 6 7 8 9 company Rallis Bayer crop science HCL Nagarjuna chemical Makhtesham Dhanuka Agritech Ltd. Insecticide India ltd. Cheminova PI Industry points

14. what is your satisfaction level with present sales returns credit notes policies of Dhanuka agri. Ltd.

Strongly satisfied

satisfied

Somewhat satisfied

dissatisfied

Strongly dissatisfied Page 60

NATIONAL INSTITUTE OF AGRICULTURAL MARKETING, JAIPUR

15. Rate the following companies on the basis of their trade/marketing policies (1-5) (1=lowest, 5=highest) Rallis Bayer crop science HCL Dhanuka Agritech ltd NACL IIL Makhtesham Indofil PI Industry

16. what is your satisfaction level with present policies of Dhanuka agri. Ltd.

Strongly satisfied

satisfied

Somewhat satisfied

dissatisfied

Strongly dissatisfied

17. Are there any gaps in present policies of Dhanuka Agri ltd.? YES NO

18. Any expectations from Dhanuka agri. Ltd. 1. New molecule should be released. 2. Raise cash discount 3. Raise T.O.D. 4. Decrease the interest 5. Raise credit period 6. Improve field activities

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7. Raise promotional activities 8. Others.(specify).. ...

REFERENCES www.indiastat.com www.dhanuka.com www.indiamap.com Indian economy 2011 PHILIP KOTLER, MARKETING MANAGEMENT

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