ACTIVITIES, MARKETING STRATEGIES AND BRAND …€¦ · Padhi, Activities, Marketing Strategies and...

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International Journal of Management

Volume 11, Issue 10, October 2020, pp. 1266-1287. Article ID: IJM_11_10_114

Available online at http://www.iaeme.com/ijm/issues.asp?JType=IJM&VType=11&IType=10

Journal Impact Factor (2020): 10.1471 (Calculated by GISI) www.jifactor.com

ISSN Print: 0976-6502 and ISSN Online: 0976-6510

DOI: 10.34218/IJM.11.10.2020.114

© IAEME Publication Scopus Indexed

ACTIVITIES, MARKETING STRATEGIES AND

BRAND PERFORMANCE OF FPOS’ IN ODISHA -

THE EASTERN STATE OF INDIA

Barada Prasad Panigrahy

Assistant Professor - Faculty of Management Studies

Sri Sri University, Sri Sri Vihar, Ward No - 3, Godi Sahi, Cuttack – 754006, Odisha, India

Dr Subash Chandra Nath*

Associate Professor (Marketing & Strategy), Faculty of Management Studies

Sri Sri University, Sri Sri Vihar, Ward No - 3, Godi Sahi, Cuttack – 754006, Odisha, India

Dr. Prafulla Kumar Padhi

Asst. Professor (Finance & Marketing)

Dr. Ambedkar Memorial Institute of Information Technology & Management Science

(DAMITS), Jagda, Rourkela – 42, Odisha, India, Biju Patnaik University of Technology,

Odisha, India,

*Corresponding Author

ABSTRACTS

Ever studied the situation of FPOs in the present market scenario is taken into

research consideration. Although the FPOs activities give benefits to the farmers, the

performances of FPOs are not satisfactory. The cropping intensity of farmers is

increased to a certain level but not matching with the expectation. Data collected

from 30 FPOs to study the FPOs activity, FPOs Benefits, FPOs brand performance

along with FPOs marketing activity. Correlation and regression analysis are used to

test the hypothesis such as “FPOs activities and FPOs Benefits effect insignificantly

on FPOs performance” and “FPOs Marketing activity, Strategy influence adversely

to FPOs Branding Performance”. The main research identifies the problems of the

FPOs and gives the predictive solution to overcome the branding and packaging

issues as a suitable marketing strategy. As a result, the market link, networking,

quality, safe packaging and branding, agency partnership may be used to develop the

overall market scenario of FPOs in Odisha.

Key words: FPO(Farmer Producer Organisations)s Activity, FPOs Benefits, FPOs

performance FPOs constrains, FPOs marketing activities, FPOs Marketing Strategies,

FPOs branding and packaging challenges

Activities, Marketing Strategies and Brand Performance of FPOS‟ in Odisha -The Eastern State of India


Cite this Article: Barada Prasad Panigrahy, Subash Chandra Nath and Prafulla Kumar

Padhi, Activities, Marketing Strategies and Brand Performance of FPOS‟ in Odisha -

The Eastern State of India, International Journal of Management, 11(10), 2020,

pp 1266-1287.

http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=10

1. INTRODUCTION

Agriculture is an age old occupation of human in this world. In ancient period, human were

depending on forest to collect food to eat. Later on the people had been depending on

agriculture to fulfil their basic need i.e. food. Population growths, rapid civilisation,

development of villages and towns have caused less productivity in agriculture. Causes may

be many, but the food scarcity was faced by human. Development of science and technology,

development of culture in agriculture and government initiative has supported the agriculture

to access in a new dimension. The challenges and issues of farmers have never end.

Ecological, environmental, technological, infrastructure, political and market issues are

constantly alarming to the life of the farmer. FPOs in Odisha aim to contribute the agrarian

society, specially the marginal farmers working for providing economic wellness. Saurav

Negi and Neeraj Anand (2015) has tended to the investigation which found that chilly chain

offices, divided flexibly chain, linkages and joining between the accomplices, tax collection

issue, framework offices, cost of bundling material, innovation and methods; rancher's

information and mindfulness, quality and wellbeing norms, handling and worth expansion,

gracefully chain wastefulness, ranchers pay, gracefully chain misfortunes and wastage of new

produce, transportation offices, and request and market data and so forth are the components

which comprises genuine difficulties for foods grown from the ground area and are

influencing the general development of the rural advancement of India. Today it is contended

that not exclusively should items and administrations build up an arrangement of brand the

board concentrated on their personality, which builds up an intelligible execution, however

places ought to likewise build up a comparative brand the executives framework (Freire,

2009: 420). For instance, Khamis (2011: 1) challenges the marking of the island of Lundy in

the Bristol Channel in the UK as pristine or immaculate: "this observation is exceptionally

lost, and neglects to check out the significant exertion that goes into overseeing Lundy". At

the end of the day, Genuine Jersey appears to advance produce and items as a major aspect of

an apparent true Jersey,

FPOs facilitate the farmers all the possible infrastructure, knowledge and market link for

development of the farmers. The relation building, knowledge and communication are the

main factors which are addressed by the FPOs to the target farmers and also customers. Inputs

and policy are added to the FPOs activities to improve the cropping intensity of the farmers.

Community farming and branding which are not practiced and pulls back to the growth of the

farmers‟ economic condition in Odisha.

2. LITERATURE REVIEW

Agricultural marketing considers both the international market as well as the domestic market

(Acharya, S.S., 1998). Due to global climate change, Sahoo, Smrutishree., Sanadya, Sanjay

Kumar. (2020) has suggested farmers, agrarian society and policy makers to adopt the

technology and the big data of climate change. But it is not possible now due to deficiencies

as regarded, National Paper - PLP 2019-20 (2020) states the deficiencies of the agriculture;

farmers are facing lack of capital and poor business skill. According to the defined guidelines

of ICRISAT (2016), FPOs in India are focusing not only local market but also regional,

national and international market. The value chain management and market linkage are

Barada Prasad Panigrahy, Subash Chandra Nath and Prafulla Kumar Padhi


associated with identification of products, crops and geographical area. Ever issues and

challenges are there, still there is a hope and strategy to uplift the FPOs‟ performance through

strategic marketing and branding. Sahoo. Smrutishree, Sanadya, Sanjay Kumar (2020) have

suggested to adopt the “Technology” and “Big Data of climate change” in order to facilitate

the production and allied activities of agriculture.

National Paper - PLP 2019-20 (2020) states the deficiencies of the agriculture; farmers are

facing lack of capital and poor business skill. The critical marketing ecosystem are Retail

services/ Markets- Quality inputs, retail marketing, spot markets (eNAM, APMC), futures

trading (NCDEX), linkages with agriculture corporate, exporters, direct marketing. Now agro-

produce market is not only constant to rural or local market but also spread to commodity

market (Stock Market) as well as links to Global market. NABARD and Other Government

agencies helps the FPOs in agro processing, branding and direct marketing activities through

Farmers‟ Clubs, Joint Liability Groups, Self Help Groups, Watershed Groups, etc.

Necessarily to nurture the collective strengths and empowering farmers, the changing pattern

of agricultural marketing is adopted in India. For example, SEBI (Security Exchange Board of

India) arranges seminar for awareness of commodity market among FPO members. The

Ministry of Food Processing Industries, Government of India is implementing a scheme to

provide schemes to production of economic products; such as fruits, vegetables, dairy

products, meat, poultry, fish, ready to Cook Food Products, Honey, Coconut, Spices,

Mushroom and also provides schemes to Retails Shops for Perishable Food Products. In order

to facilitate the production and allied activities of agriculture, FPOs are using modern

technology and entered in changed market structure.

Chatterjee, Tirtha.; Raghunathan, Raghav and Gulati, Ashok.(2019) find that the

imperatives in connecting farmers to FPOs and the later to prospects are-(1) farmers' as of

now existing solid relationship with go betweens and brokers, (2) given higher hazard

associated with yield related exercises, less FPOs are engaged with promoting, (3) absence of

credit limit of FPOs, (4) the FPO executives related issues with farmers, (5) absence of trust

and comprehension of fates showcase, (6) high dismissal rates, (7) hesitance in pre-gather

supporting, (8) calculated related like area of conveyance focuses and (9) tedious

documentation and passage hindrances. The path forward for Indian agri-fates market can be

as per the following (1) center at first around wares not secured by overwhelming government

intercession since this aides in picking up trust in its working; (2) recognize creation

communities for those yields, fabricate conveyance revolves around them and first empower

fates exchanging these regions; (3) asset foundations must be prepared, (4) Government

activities like that of Bihar and Rajasthan may help in different locales, (5) learning from

China can help center around Agri-prospects, (6) exchanging offices of the administration

ought to be urged to legitimately take part in the prospects market and (7) financial

instruments like advances and choices must be empowered.

According to K., Nadhika, Krishnankutty, Jayasree, Kuruvila, Anil and Raju, Rajesh K.

(2019), the profit or benefits of mango selling is widely enjoyed by traders, wholesalers and

collection agents. The actual farmers are not getting so many benefits out of mango farming.

The value chain of mango marketing is not providing actual benefits to mango farmers. A,

Kavin and Divya, K. (2019) have defined the performance of farmer producer organisation (

FPO) based on seven Socio-economic factors such age, gender, education, firm size,

occupation, experience and annual income in western region of Tamil Nadu. Multiple

regression analysis is used to carry on the empirical study. The age, education and experience

of farmers have increased impact on the FPOs‟ performance. The basic constraints as (1) Lack

of Awareness among the farmers, (2) Lack of coordination among the members, (3) Lack of

ineffective utilization of funds, (4) Non availability of funds and (5) Lack of Government



Support have more adverse influence on the FPOs‟ performance. They found that the middle

aged, graduated and experienced FPO members have positive performance and influence the

FPOs‟ performance positively. Charyul, D Kumar. and Mose. D. Shyam, and Raju, KV.

(2019) have considerd the key issues of inadequate business planning, traders have become

key functionaries of FPOs, improper market identification and price discovery of better

growth models for promoting the FPOs. They have suggested to adopt the experts opinion to

prepare business plan, use of digital platform to revel the transparency in transactions and

other technological innovation.

Vutukuru, Vinay Kumar, Singh, Paramveer, and Kumar, Manoj. (2018) have stated the

company form of organization structure and work culture and Self Help Group (SHG),

initiated by Government of India and World Bank. JEEVIKA is one of them which mobilizes

5,00,000 farmers/producers into FPOs, at Muzaffarpur, Bihar. Primary packaging and

secondary packaging system is used to avail the produces near to the consumer through

channels of distribution. The daily pricing information is given to FPOs and farmers/produces

through Mobil phone/digital platform. Badatya, K.C., Ananthi, S. and Sethi, Y. (2018) have

stated the few determinants of Promotion of FPOs in Maharashtra. They observed the primary

jobs of the FPOs i.e. cleaning, sorting and grading of the produces. The FPOs also provide

market linkage, supply services to the market, storage and vehicle facilities to the marginal

farmers. The services such as Input Supply, Financial facilities, Technical assistant, insurance

services, Procurement facility, Packaging facility, Marketing and Networking etc. are

included in the draft policy of Odisha Farmer Producer Organizations (FPOs) Policy, 2018.

Ramakrishnan, Ganesh. (2017) has used rubric method to analyses the performance of

FPOs. The analytic and holistic of rubric method is used to evaluate the performance in detail.

He found that the Nasik FPOs are performing in institutional side whereas the Pune FPOs are

performing in output side. Rani, Ch. Radhika et al. (2017) expressed that the FPOs managing

vegetables are staggering now and again as the vegetables are transitory items and they have

to represent considerable authority in taking care of the everyday activities of vegetables and

cash dissemination. Some moderate and moderate performing FPOs which are taking care of

vegetables are attempting to build up relationship with retail corporate. They communicated

their trouble in breaking the dealers and friends relationship. As the corporate expect an all

year gracefully with tough quality standards and the odds of dismissing the low quality

produce by them was likewise high and remaining task at hand in arranging and evaluating is

additionally overwhelming. The FPCs which are taking care of specialty exercises like Potato

Seed business are seen as fumbling on account of value and specialized issues. Maurya,

Upendra., Kaur, Arshinder. and Ganesh, L S. (2017) had chosen the goals of the FPOs is to

collectivize little agriculturists for purchasing inputs like seeds, composts, credit, assurances,

data and development organizations; and aggregate displaying, getting ready, and market-

drove cultivating age. Such aggregate undertakings offer help agriculturists to diminish their

brought of age, gain the best possible expenses, amend estimations of make, and get

collaborations back and in this way improve their flexibly chain capability. Inside the given

setting of FPOs in Tamil Nadu, issues identifying with gracefully chain and packaging,

assessing and advancing, require basic thought.

Sadiq, M. S., Singh, I. P, I.J. Grema, Umar, S.M. AND Isah, M.A. (2017) denoted that the

discoveries affirmed the nearness of co integration, suggesting since quite a while ago run

value relationship among the related markets. For extra proof concerning, whether and in

which bearing value transmission was happening between the business sectors pair, Granger

causality test demonstrated four unidirectional causalities: Rwanda-Nigeria; Ghana-Rwanda;

Nigeria-Madagascar and Madagascar- Rwanda, while the rest of the market sets indicated no

causal connection between them. The drive reaction capacities led affirmed the consequence



of co- integration, yet the size of value transmission was discovered moderately low in some

market combines that were spatially coordinated. Further, the discoveries demonstrated

convenience of cassava exchanging the significant cassava showcases in Africa given that

hazardous instability design was not watched. ARIMA model could be utilized effectively for

demonstrating just as gauging of yearly costs of cassava in the significant markets in Africa

given its great execution regarding clarified fluctuation furthermore, foreseeing power. In

light of discoveries, arrange structure for significant cassava advertises across. Africa at

practically equivalent good ways from each other to upgrade advertises joining and better

value transmission among them was suggested. Likewise, the high level of showcase

incorporation saw for this situation demonstrate that the significant cassava advertises in

Africa were very serious, consequently, giving little avocation for broad and expensive

intercession intended to upgrade advertise effectiveness by means of improved rivalry.

According to the defined guidelines of ICRISAT (2016), FPOs are focusing not only local

market but also regional, national and international market. The value chain management and

market linkage is associated with identification of products, crops and geographical area. The

promotion of FPOs is associated with Research organizations, Development agencies, and

corporate agencies and also NGOs etc. Again the surplus produces are market linked to

streamline the cost, supply and demand for sustainability of FPOs members. The

Government, private and Cooperative sectors support to FPOs‟ marketing infrastructure to

carry on the smooth business. Joglekar, Abha. (2016) had revealed that the farmers as well as

the FPOs had faced the registration and documentation challenges in initial stages, due to lack

of awareness and funding. Farmers have also faced challenges of ecological, social, cultural

diversity, financial democracy and knowledge democracy. Chauhan, Swati. (2015) endeavour

to evaluate the presentation of maker organizations in Madhya Pradesh. The producer

organizations need a lot of working capital for acquirement, esteem expansion and promoting

just as expanding credit, advance and advances. Sawairam, Preeti (2014) explored the

challenges faced by small and marginal FPOs members of small volume of produce, limited

bargaining power, and lack of cold storage as the marketing challenges. Other challenges are

faced by them such as limited access of market information through mobile phones and costly

transportation facility.

According to Onumah, Gideon and Davis, Junior and Kleih, Ulrich and Proctor, Felicity

(2007) the vast majority of the advertising developments are private-segment drove and tends

to be commonly valuable to them and makers. In any case, the particularity of a considerable

lot of the linkages regularly restricts the scaling up of support by ranchers and suggests huge

self-determination that prompts rejection of huge segments of the cultivating populace. This

circumstance can likewise constrain repeatability of the advancements, which are regularly

founded on trust. Producers organizations (POs) assume a significant job in sorting out and

preparing makers to exploit the market developments and particularly those bolstered by

NGOs, contributor subsidized ventures and the private division.

Acharya, S.S. (1998) had suggested that the agricultural marketing is to consider the

international market as well as the domestic market, appealed to liberalization of market.

Promotion of retail- outlet, expansion of market structure, monitoring of pricing and training

to farmer are the suitable marketing strategies, suggested by them. The positive FPO activities

help the registered farmers to increase the productivity, which also influence the FPOs‟

performance. Still there are many constraints of FPOs (A, Kavin and Divya, K., 2019) and the

members. But the marketing and branding prospects influence the FPO performance in some

extend. (Vutukuru, Vinay Kumar et al., 2018).

Vutukuru, Vinay Kumar, Singh, Paramveer, and Kumar, Manoj. (2018) have stated the

basic activities of FPOs is to mobilize the farmer for strengthening their community work



culture as recommended by Self Help Group (SHG), initiated by Government of India and

World Bank. For example, JEEVIKA is one of them which mobilizes 5,00,000

farmers/producers into FPOs, at Muzaffarpur, Bihar. Primary packaging and secondary

packaging system are their basic promotional activities used to avail the produces near to the

consumer through channels of distribution. The daily pricing information is communicated

among FPOs and farmers/produces through Mobil phone/digital platform. Badatya, K.C.,

Ananthi, S. and Sethi, Y. (2018) have stated the few determinants of Promotion of FPOs in

Maharashtra. They observed the primary jobs of the FPOs i.e. cleaning, sorting and grading of

the produces. The FPOs also provide market linkage, supply services to the market, storage

and vehicle facilities to the marginal farmers. The services such as Input Supply, Financial

facilities, Technical assistant, insurance services, Procurement facility, Packaging facility,

Marketing and Networking etc. are included in the draft policy of Odisha Farmer Producer

Organizations (FPOs) Policy, 2018. The positive FPO activities help the registered farmers to

increase the productivity, which also influence the FPOs‟ performance. Still there are many

constraints of FPOs (A, Kavin. and Divya, K., 2019).

The Ministry of Food Processing Industries, Government of India is implementing a

scheme to provide schemes to production of economic products; such as fruits, vegetables,

dairy products, meat, poultry, fish, ready to Cook Food Products, Honey, Coconut, Spices,

Mushroom and also provides schemes to Retails Shops for Perishable Food Products. In order

to facilitate the production and allied activities of agriculture, FPOs are using modern

technology and entered in changed market structure. The FPOs also provide market linkage,

supply services to the market, storage and vehicle facilities to the marginal farmers. The

services such as Input Supply, Financial facilities, Technical assistant, insurance services,

Procurement facility, Packaging facility, Marketing and Networking etc. are included in the

draft policy of Odisha Farmer Producer Organizations (FPOs) Policy, 2018.

There are many constrains of FPOs which influence adversely to the FPOs performance

(A, Kavin and Divya, K., 2019). According to Sahoo. Smrutishree, Sanadya, Sanjay Kumar

(2020), it is noted that the FPOs performance may be improved due to adoption of

“Technology” and “Big Data of climate change” in order to facilitate the production and

allied activities of agriculture. A, Kavin and Divya, K. (2019) have defined the performance

of farmer producer organisation ( FPO) based on seven Socio-economic factors such age,

gender, education, firm size, occupation, experience and annual income in western region of

Tamil Nadu.

The basic constraints of FPOs are the Awareness among the farmers, coordination among

the members, ineffective utilization of funds, Non availability of funds and Government

Support have more adverse influence on the FPOs‟ performance (A, Kavin and Divya, K.,

2019). Addition to this, Chatterjee, Tirtha.; Raghunathan, Raghav and Gulati, Ashok.(2019)

have found similar constrains of FPOs relating to relationship with brokers and farmers, Yield

related, Promotion related, credit limit by funding agencies, trust, variability of rates,

conveyance and documentation. K., Nadhika, Krishnankutty, Jayasree, Kuruvila, Anil and

Raju, Rajesh K. (2019) revealed losses and benefits of mango selling the profit or benefits of

mango selling in Kerala. The profit is widely enjoyed by traders, wholesalers and collection

agents. The actual farmers are not getting so many benefits out of mango farming.

Arshinder. and Ganesh, L S. (2017) had chosen the goals of the FPOs is to collectivize

little agriculturists for purchasing inputs like seeds, composts, credit, assurances, data and

development organizations; and aggregate displaying, getting ready, and market-drove

cultivating age. Such aggregate undertakings offer help agriculturists to diminish their

brought of age, gain the best possible expenses, amend estimations of make, and get

collaborations back and in this way improve their flexibly chain capability. Unfortunately, the



same collective market setting is not found in FPOs across Odisha. A, Louw, H. Vermeulen

and H. Madevu (2006) studies the procurement policy of the Thohoyandou SPAR model,

which involves the procurement of fresh produce from farmers of the surrounding area, as far

as possible. The most important idea of this model is a commitment to addressing the needs of

the neighborhood emerging market and a high level of community involvement. The small

farmers made available fresh vegetables in small quantity to the nearer market regularly to

avoid constrains of cold storage facility. Common vegetables are produced by community and

distributed through minibus transportation system in different area. The private-private (PP)

partnership without Government association involvement is adopted in this model and given

an example to the agrarian society. NABARD and Other Government agencies helps the

FPOs in agro processing, branding and direct marketing activities through Farmers‟ Clubs,

Joint Liability Groups, Self Help Groups, Watershed Groups, etc.

Badatya, K.C., Ananthi, S. and Sethi, Y. (2018) have stated the few determinants of

Promotion of FPOs in Maharashtra. They observed the primary jobs of the FPOs i.e. cleaning,

sorting and grading of the produces. The FPOs also provide market linkage, supply services to

the market, storage and vehicle facilities to the marginal farmers. Charyul, D Kumar. and

Mose. D. Shyam, and Raju, KV. (2019) have considerd the key issues of inadequate business

planning, traders have become key functionaries of FPOs, improper market identification and

price discovery of better growth models for promoting the FPOs. FPO members faces

challenges of operation, pricing, information, banking and finance (Chauhan, Swati., 2015)

along with marketing and branding orientation (Sawairam, Preeti., 2014). Irrespective of

many challenges, the FPOs are in the way of promoting the products through Branding and

Packaging as involved in their strategy.

Internationally, examples are found from many countries about the branding and

packaging strategy adopted, which shows greater performance. The performance of branding

and packaging increased the overall performance of FPOs or farmers organization in many

countries.

Johnson, Henry (2012) had found that the Tourism and cultural heritage of JERSEY had

used to mediate the goods produced, grown or caught by the jersey island people. “Genuine

Jersey” brand name is used to their produce, especially “potato” and sold in the market for

local consumption as well as tourist consumption. Genuine Jersey too offers a logo as well as

several slogans that inherently index a sense of authenticity in the language that is used. Many

businessman has used the paces as branding, exampled by Grydehøj (2010), for example,

explores the idea of heritage production in Shetland (Scotland), Åland (Finland) and Svalbard

(Norway). Anholt, S. (2008) also agreed that the political geography and place is used as

branding of agricultural produces.

Badatya, K.C., Ananthi, S. and Sethi, Y. (2018) have stated the few determinants of

Promotion of FPOs in Maharashtra. They observed the primary jobs of the FPOs i.e. cleaning,

sorting and grading of the produces. The FPOs also provide market linkage, supply services to

the market, storage and vehicle facilities to the marginal farmers. Fruits are now globally

supplied from one place to another place physical packaging along with long distance

transportation packaging is used to make safe delivery of products in regards to qualitative

and quantitative (Clément Vigneault et al., 2009). Erik A. Borg, Karl Gratzer (2013) has noted

the lesson of branding strategy i.e. protected designation of origin (PDO) represents a

collective brand strategy. PDO certification is the strategic certification for branding the

regional products. But it looks as it is politically influenced.



Even though there is an availability of many branding and packaging strategy with their

higher performance record, still the same is not adopted or seen in the Odisha market. Causes

are related to the major marketing challenges, faced by the FPOs in Odisha.

Basic marketing challenges faced by FPOs and members are denoted by Charyul, D

Kumar. and Mose. D. Shyam, and Raju, KV. (2019), which includes issues of inadequate

business planning, traders have become key functionaries of FPOs, improper market

identification and price discovery of better growth models for promoting the FPOs. Sawairam,

Preeti (2014) explored the challenges faced by small and marginal FPOs members of small

volume of produce, limited bargaining power, and lack of cold storage as the marketing

challenges. Joglekar, Abha. (2016) had revealed that the farmers as well as the FPOs had

faced the registration and documentation challenges in initial stages, due to lack of awareness

and funding. Farmers have also faced challenges of ecological, social, cultural diversity,

financial democracy and knowledge democracy.

The agricultural products are sold in Odisha by its generic place brand by word of mouth

but not actually branded with logo, slogan and packaging system. In Odisha context, the same

is not practiced by the FPOs members. In year 2020, the products are sold in open sky in the

road side. The health, hygiene and humanity are not addressed. Many challenges are faced by

the FPOs and farmers in Odisha. Inadequacy of marketing and branding Knowledge of

farmers and FPOs executives are causing the underperformance of FPOs.

The branding and packaging strategies run parallel but coaxial to promote a product in the

market. In India context and also Odisha context, suitable branding and packaging strategy is

not noted by any author except a few lessons. Although the agricultural produce of local and

regional branding strategies are adopted by many countries, still it fails in Odisha.

2.1. Research Gap

Very less literature are focused on the branding and marketing strategy of FPOs or related

organizations. The agricultural produce marketing is now a parallel market as like FMCG or

other products. Proper marketing strategy and branding strategies are not mentioned clearly.

Not only Odisha level but also in county level, there is a less scope of FPOs‟ branding

strategy and performance. There are many issues and challenges, which can be resolved by

proper branding and packaging of agricultural produce and FPOs.

The researcher focuses to study the influence of branding strategy on FPOs‟ performance.

Although the FPOs are adopting many marketing strategies along with the branding, the FPO

members are facing many challenges; operation, pricing, information, banking and finance

(Chauhan, Swati., 2015) relating to marketing and branding orientation (Sawairam, Preeti.,

2014).

The effect of FPOs activities and FPOs benefits on FPOs performance is not studied any

literatures. In Indian context it is not yet studied. Although many examples are found from

literatures about the branding and packaging and success of FPOs or farmers organization but

still there is a large scopre to study the influence of marketing strategy on Branding

performance. The self constructed model is prepared to study the influence of FPOs

Marketing activity, marketing strategy on branding and Packaging FPOs performance is

aimed to study in this research.

3. CONCEPTUAL FRAMEWORK AND CRAFTING HYPOTHESIS

The research gap has given scope to construct vary similar and distinct model of FPOs

marketing model to carry on the study. Generally the traditional method of supply chain of

agricultural produce in India conducts the ways given in Figure 1. Farmers directly produce

and sale those products to the consumer and also through middleman i.e farmers, agents and



auctioneers, vendors and retailers as specified. Agents and auctioneers collect produces from

farmers and sale to wholesalers. Wholesalers sale the produce to vendors and retailers. The

vendors and retailers sale the produce to the consumers in the farmers‟ market, daily market,

haat and vending zone. Here the consumers‟ price is the market price. There is no control over

the price and consumers‟ bargain power. Results of the traditional form has insignificant

profit margin for the farmers and also for the traders.

Figure 1 Traditional Method of Supply Chain in India

Source: Own

In figure 2, strategically the FPO is formed to provide suitable market, price, place,

promotion to the farmers of their sustainability. In this supply chain system, the farmers

produce produces and sale them to the FPOs, Now FPO plays major role in collecting,

cleaning, grading, branding and pricing of the products. Then the FPOs sale that produces to

the registered retailers, vendors and auctioneers. Through them, the produces goes to the local

market, regional market and international market. Still there is a issue of pricing and many

others. The products are limited to local area where the standardized products are coming

from other areas. The quality and price parameter give thrust to the farmer in this competitive

market. The lack of standardizing and branding, the farmers cannot take over the competitive

advantage.

Figure 2 Recent Supply chain and Branding strategy of FPOs

Source: Own

A developed model is developed in figure 3, which informs that the farmer community is

divided into four communities, as per the branding and packaging strategy. Here the local

farmers will sale the produce in local area. The produces which are coming under the regional

grading, packaging, branding and pricing, they will the produce in Odisha regional market.

now the produces which are coming under international product standard, those are linked to

the international market.



Figure 3 Developed Branding Model of FPOs

Source: Own

3.1. Problem of the study

Mostly the marginal farmers are the members of the FPOs. With less technological

knowledge and business regulation knowledge, they are not able to improve the standard of

business although the FPOs are supporting them. The whole research is concentrating on

FPOs from Odisha and regional. The grading, packaging and specially branding which is

lagging behind, is focused in this research. Although FPOs are creating value in the system

but the farmers are not benefited significantly which is mentioned in Table 3.1 Observation:

Impact of FPO on Agriculture and Allied: (Cropping Intensity). In common observation to the

farmers‟ cropping intensity, the changing pattern of productivity and income of the farmers

are not improved significantly. The studies of many literatures have denoted that the branding

strategy of FPOs provide positive cropping intensity, productivity and profit to the farmers.

The same branding strategy is not found in any literatures pertaining to Odisha and more over

India also. The main study focuses on FPOs of Odisha. Regional branding and packaging

strategy is followed to uplift FPOs performance.

3.2. Objectives of the Study

To study the effect of FPOs activities and FPOs benefits on FPOs performance.

To study the influence of FPOs Marketing activity, Marketing strategy and branding

on FPOs performance.

3.3. Hypotheses of the Study

H1 - FPOs activities and FPOs Benefits effect insignificantly on FPOs performance.

H2 - FPOs Marketing activity, Strategy influence adversely to FPOs Branding Performance

The descriptive study is used to find out the ranks of related variables and sub variables.

Factor analysis, data reduction are measured to find the data fits of the variables. After

satisfactory result of the factor analysis, correlation and regression analysis is used to test the

hypotheses.

3.4. Methodology

Descriptive statistics is used to carry on the study. Correlation is calculated to study the

relationships and regression analysis is used to test hypothesis. Multi scale of measurement is

used to prepare the questionnaire. 30 numbers FPOs members from 30 FPOs are interviewed

through direct personal interview, email and telephonic interview to find the responses. The

structured questionnaire contains major questions regarding (1) FPOs Activity, (2) FPOs

Benefits to beneficiaries, (3) FPOs Performance, (4) Constrains of FPOs, and (5) FPOs



Marketing Activity, (6) FPOs Marketing Strategy, (7) FPOs Branding and Packaging

Performance, (8) FPOs Marketing Challenges. According to the objectives of the study, the

questionnaire responses are organized in MS- Excel sheet and transferred to SPSS software

for data analysis. Comparative study, Regression analysis is calculated to test the hypotheses.

Finally coefficient of matrix is calculated to find out the variable to fit a suitable problem

solution model.

4. DATA ANALYSIS

The systematic data analysis process is followed to reach a final decision. Descriptive

statistics is calculated to find out the frequency of variables i.e. FPOs activity, FPOs Benefits

and FPOs Performance (Table 4.1.). Correlation among variables such as FPOs activity, FPOs

Benefits and FPOs Performance are found in Table 4.2 and Table 4.3. Again the horizontal

and vertical values of variables are correlated to check the correlation values.

4.1. Descriptive Study

The major activities of FPOs are storage facility, service, processing, information sharing and

transportation of produces. 1 to 5 rank order scales is used to gather the responses from 30

respondents. The Table 4.1 descriptive statistics reveals the ranks in ascending order as

storage (1st), service (2

nd), information (3

rd), processing (4

th) and transportation (5

th). The

storage facility (Mean μx =1.2333) and basic services (Mean μx = 1.9667) are provided by the

FPOs but fails in agro processing (Mean μx = 2.6667) such as sorting, grading unit, waxing/

polishing unit, pre-cooling, packaging activities and Transportation (Mean μx = 3.0333) in

procurement of produce and market link. The variable information (Mean μx =2.6333) plays

normal role in FPOs activities. Table 1 Descriptive Statistics

Descriptive Statistics

Variables

N Minimum Maximum Mean

Std.

Deviation

Rank

FPOs Activity

FA STORAGE 30 1.00 2.00 1.2333 .43018 Rank 1

FA SERVICE 30 1.00 3.00 1.9667 .71840 Rank 2

FA PROCESSING 30 1.00 5.00 2.6667 1.62594 Rank 4

FA INFORMATION 30 1.00 5.00 2.6333 1.73172 Rank 3

FA TRANSPORTATION 30 2.00 5.00 3.0333 1.35146 Rank 5

FPOs Benefit to

Beneficiaries

FBB TECHNOLOGY 30 2.00 5.00 3.8000 .88668 Rank 3

FBB PRODUCTIVITY 30 1.00 5.00 3.9333 1.41259 Rank 2

FBB INCOME 30 3.00 5.00 4.0333 .61495 Rank 1

FBB LIVELIHOOD 30 2.00 5.00 3.7667 .85836 Rank 4

FBB FINANCIAL 30 1.00 3.00 1.8000 .61026

FBB OPERATIONAL 30 2.00 5.00 2.8333 1.14721 Rank 5

FPOs Performance

FP COLDSTORAGE 30 1.00 4.00 2.5000 1.10641

FP MARKET LINK 30 1.00 8.00 3.7333 2.24274 Rank 4

FP PRICING 30 1.00 9.00 4.4667 2.44573

FP MARKET PRICE 30 2.00 7.00 3.2667 1.76036 Rank 5

FP DAILY PRICE 30 1.00 9.00 2.5667 2.37346

FP TRANSPORTATION 30 2.00 9.00 3.1333 1.47936

FP MEETING 30 2.00 9.00 5.4000 1.67332 Rank 1

FP PACKAGING 30 2.00 9.00 4.5667 2.28463 Rank 2

FP CASHLESS 30 2.00 5.00 3.1667 1.05318

FP DIGITAL 30 2.00 8.00 4.4667 1.94286 Rank 3

Valid N (list wise) 30



In order to find out the FPOs‟ benefits to beneficiaries, six variables are taken in

questionnaire. Although Likert scale ranging from 5 to 1 are considered to gather the

responses, neutral value (3), disagree (2) and strongly disagreed (1) are taken into

consideration to put the benefits in an order. Table 1. Descriptive statistics shows better

income (Mean=4.0333) is rank 1, packaging (Mean=3.9333, rank 2), technological benefit

(Mean=3.8000, rank 3), better livelihood (Mean=3.7667, rank 4) and operational benefits

(Mean=2.8333, rank 5). While measuring the FPOs performance, considering 1 to 10 rating

scale with 10 questions, table 4.1 shows farmers‟ meeting (Mean=5.4000, rank 1), packaging

(Mean= 4.5667, rank 2), digital platform (Mean= 4.4667, rank 3), market link ( Mean=

3.7333, rank 4) and operational (Mean=2.8333, rank 5). Here, the market or promotional

activities, benefits and performance of information, processing transportation, and technology,

livelihood, operational, and digital platform, market link, operational variables are lagging

behind the performance measurement. These can be used in better way to promote and

branding FPOs and produces. The sums of responses are taken in order to set all the variables.

Top five ranks values of each variable are taken in chronological order to define the rank of

the variables. Along with the Mean values are also orderly taken and analyzed to verify the

result.

Correlation

Table 2 Relationship: FPOs Activity, FPOs Performance, FPOs Performance

Ra

nk

FPO

ACTIVI

TIES

BENEFINS TO

BENEFICIARI

ES

FPO

PERFOR

MANCE

Variables

FPO

ACTIVI

TIES

BENEFINS TO

BENEFICIARI

ES

FPO

PERFOR

MANCE

RA

NK

1 37 121 162

FPO

ACTIVITIES 1

RA

NK

2 59 118 137

BENEFINS TO

BENEFICIARI

ES

-

0.73584 1

RA

NK

3 79 114 134

FPO

PERFORMAN

CE

-

0.92773 0.822927 1

RA

NK

4 80 113 112

RA

NK

5 91 85 98

Table 2 Relationship: FPOs Activity, FPOs Performance, FPOs Performance shows the

positive relationship between FPOs benefits and FPOs performance. In Table 1, descriptive

statistics, the mean is considered to specify the rank. The rank of variables of FPOs activities,

FPOs benefits to beneficiaries and FPOs performance are ranked in Table 3.



Table 3 Rank order and Correlation

Rank

FPOs

Activities

Benefits To

Beneficiaries

FPOs

Performance Correlations

FPOs

ACTIVITY

FPOs

BENEFITS

FPOs

PERFORMANCE

FPO

ACTIVITY

Pearson

Correlation 1 -.736 -.928*

Sig. (2-tailed) .156 .023

N 5 5 5

FPO

BENEFITS

Pearson

Correlation -.736 1 .823

Sig. (2-tailed) .156 .087

N 5 5 5

FPO

PERFORMANCE

Pearson

Correlation -.928* .823 1

Sig. (2-tailed) .023 .087

N 5 5 5

*. Correlation is significant at the 0.05 level

(2-tailed).

RANK 1 37 121 162

RANK 2 59 118 137

RANK 3 79 114 134

RANK 4 80 113 112

RANK 5 91 85 98

The above table 3 also shows the correlation values of FPO Activities, Benefits of FPOs

to the beneficiaries who are the registered FPO members/ farmers. There is a perfectly

negative correlation of FPOs Activity with FPOs Benefits to beneficiaries (-0.736) and with

the FPOs performance (-0.928). But FPOs benefit to beneficiaries has positive correlation

(0.823) with FPOs performance. Again the mean value of five ranks of FPOs activity and five

FPOs benefits are taken together to correlate the FPOs performance. Henceforth, the

correlation is found 0.385 in Table 4.

Table 4 Correlation FPOs Activity and FPOs Benefits (FAB) with FPOs Performance (FP)

FAB FP Correlations

FAB FP

FAB Pearson Correlation 1 .385

Sig. (2-tailed) .271

N 10 10

FP Pearson Correlation .385 1

Sig. (2-tailed) .271

N 10 10

1.2333 2.5

1.9667 3.7333

2.6333 4.4667

2.6667 3.2667

3.0333 2.5667

4.0333 3.1333

3.9333 5.4

3.8 4.5667

3.7667 3.1667

2.8333 4.4667

In Table 4, the mean values of variables are taken to calculate the correlation values. Then

also, the correlation value r is found i.e. 0.271 and 0.385 accordingly. Both “r” values show

very negligible relationship between the variables.



Table 5 Correlation FPOs Activity, FPOs Benefits with FPOs Performance

FPOs ACTIVITIES FPOs BENEFITS FPOs PERFORMANCE

FPOs ACTIVITIES Pearson

Correlation 1 .359 .231

Sig. (2-tailed) .052 .220

N 30 30 30

FPOs BENEFITS Pearson

Correlation .359 1 .150

Sig. (2-tailed) .052 .430

N 30 30 30

FPOs PERFORMANCE Pearson

Correlation .231 .150 1

Sig. (2-tailed) .220 .430 N 30 30 30

Again the variables are taken in vertical order from FPOs Activities, FPOs Benefits and

FPOs Performance to correlate. The Table 4 shows there is a less or insignificant relationship

between FPOs activities and FPOs benefits (0.359), FPOs Benefits with FPOs Performance

(0.150), FPOs Activity with FPOs Performance (0.231). The nominal change in cropping

intensity in Table 3.1.1 suggests exploring the constraints of FPOs in Odisha in Table 6.

Table 6 Cropping Intensity of FPOs

Crop/ Vegetable/

others Name

Before FPO formation

AVERAGE Cropping

After FPO formation

AVERAGE Cropping

Percentage CHANGE

in

Area

(Acre)

Production

(Quintal)

Area

(Acre)

Production

(Quintal)

Area

+/-

Production

+/-

Paddy 2250 30000 3000 38500 750/25% 8500 28%

Vegetable 800 5800 1050 9500 250 3700

Fruit 600 5600 700 8950 100 3350

Maize 550 7700 950 5800 400 -1900

There is a change in area of cultivation is 25% and increase in production is 28% as given

in table 6. There is no extraordinary result is found after FPOs all effort. Now the questions

arise, where the FPOs fail to perform. Now the major constrains and marketing activities of

FPOs are taken into consideration as the determinants.

Table 7 Constraints of FPOs in Descending order

Descriptive Statistics

N Minimum

Maximu

m Sum Mean Std. Deviation

C8 Lack of capital 30 2.00 7.00 140.00 4.6667 1.62594

C11 Lack of Market place 30 2.00 7.00 126.00 4.2000 1.60602

C10 Substitute market 30 2.00 7.00 126.00 4.2000 1.39951

C13 Low market efficiency 30 2.00 6.00 119.00 3.9667 1.18855

C4 Lack of FPO project awareness 30 3.00 6.00 119.00 3.9667 .92786

C12 Poor infrastructure 30 2.00 9.00 109.00 3.6333 2.29667

C9 Other middleman interference 30 1.00 6.00 108.00 3.6000 1.69380

C2 Lack of mobile communication 30 2.00 8.00 107.00 3.5667 2.11209



C3 Lack of availability of vehicles 30 1.00 6.00 95.00 3.1667 1.36668

C5 Lack of Government Support 30 2.00 4.00 95.00 3.1667 .94989

C6 Lack of favorable costing and pricing 30 1.00 6.00 93.00 3.1000 2.00603

C7 Lack of proper coordination among staffs

and FPO membership 30 1.00 4.00 73.00 2.4333 1.16511

C1 Lack of road communication 30 1.00 3.00 49.00 1.6333 .71840

Valid N (listwise) 30

Out of 13 constraints, major five constraints are C8 Lack of capital (Mean=4.6667), C11

Lack of Market place (Mean=4.2000), C10 Substitute market (Mean=4.2000), C13 Low market

efficiency (Mean=3.9667), C4 Lack of FPO project awareness (Mean=3.9667), which are

presented in descending order. Again the Marketing and Promotional attributes are checked to

reach to a decision point. All the constraints are presented in Table 7.

Factor Analysis, Reliability and Matrix of variables

Maximum results of Factor analysis variables are more than 0.70, except FA SERVICE

(0.529) and BB FINANCIAL (0.524). The result of reliability test shows 0.849 which means

all the variables are fit for further analysis. But the scatter of matrix structure is not

satisfactory.

Table 8. Factor Analysis, Reliability and Matrix Scattered of Variables

Communalities

Initial Extraction

FASTORAGE 1.000 .826

FASERVICE 1.000 .592

FAPROCESSING 1.000 .951

FAINFORMATION 1.000 .952

FATRANSPORTATION 1.000 .863

BBTECHNOLOGICAL 1.000 .903

BBPRODUCT 1.000 .951

BBINCOME 1.000 .859

BBLIVELIHOOD 1.000 .945

BBFINANCIAL 1.000 .524

BBOPERATIONAL 1.000 .801

FPCOLDSTORAGE 1.000 .846

FPMARKETLINK 1.000 .867

FPINTERVIEW 1.000 .916

FPMARKETPRICE 1.000 .944

FPDAILYPRICE 1.000 .924

FPTRANSPORTATION 1.000 .849

FPFMEETING 1.000 .910

FPPACKAGING 1.000 .907

FPCASHLESS 1.000 .828

FPDIGITAL 1.000 .791

Extraction Method: Principal Component Analysis.

Case Processing Summary

N %

Cases Valid 30 100.0

Excludeda 0 .0

Total 30 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's Alpha N of Items

.849 21



Figure 1 Relational Chart of FPOs Activity, FPOs Benefits and FPOs Performance

The variables of FPOs Activity are far away from FPOs Performance and also FPOs benefits

are far away from FPOs performance, presented in Figure 1.

Testing of Hypotheses:

Hypothesis 1:

FPOs activities and FPOs Benefits effect insignificantly on FPOs performance

Table 9 Regression Analysis: Objective 1 and Hypothesis

Coefficientsa

Model

Unstandardized

Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 2.523 1.062 2.376 .045

FAB .403 .341 .385 1.181 .271

a. Dependent Variable: FP

Here, Significant value 0.271 is more than P=0.05, means H0 is rejected and H1 is

accepted. It means FPOs activity and FPOs Benefits to beneficiaries affects more on the FPOs

performance. Although the FPOs activity and FPOs Benefits to beneficiaries influence

positively to the FPOs performance, the model summary and parameter estimated in Table 10

and Figure 2. The result also shows 0.403 and rejects the null hypothesis. The figure 2 shows

variation between variables.

Table 10 Model Summary and Parameter Estimates

Dependent Variable:FP

Equation

Model Summary Parameter Estimates

R Square F df1 df2 Sig. Constant b1

Linear .148 1.395 1 8 .271 2.523 .403

The independent variable is FAB.



Figure 2 Variations between variables

Hypothesis 2:

FPOs Marketing Activity and Marketing Strategy have insignificant influence on FPOs

Branding performance (Table 11).

Table 11 Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig. B Std. Error Beta

1 (Constant) 5.471 2.218 2.467 .020

FMA .509 .271 .338 1.880 .071

FMS .202 .339 .107 .595 .556

a. Dependent Variable: FBP

Here, significant value is 0.071 and 0.556, both are more than P=0.05. H0: Marketing

Activity and Marketing Strategy has insignificant influence on FPOs Branding performance is

rejected. It proves that Marketing Activity and Marketing Strategy have insignificant

influence on FPOs Branding performance (Table 11).

Due to the challenges of FPOs such as credit and insurance (Rank 1), working capital

support (Rank 2), lack of information (Rank 3), Weak participation in the consumers‟ markets

and Poor access to cheaper credit (Rank 5, the adverse result is appeared, given in Table 12.

Table 12 Challenges of FPOs

Lower

scale of

operation

Lack of

information

Poor

access

to

cheaper

credit

Weak

participation

in the

consumers’

markets

Dominance

role of

traders

scale-up

business

credit

and

insurance

working

capital

support

High

interest

rates

from

bank

13 18 15 16 12 0 21 19 11

Rank 3 Rank 5 Rank 4

Rank 1 Rank 2



Figure 3 FPOs‟ Marketing Challenges

The same marketing challenges as the challenges of FPOs are mentioned in pie chart.

Herein the lower scale of operation (12,10%), Lack of Market information (18,14%), weak

participation in the consumers‟ market (15,12%), and dominance role of traders (16, 13%) are

causing major marketing and branding failure in Odisha.

Henceforth, a predictive solution is determined to overcome the branding and packaging

challenges of FPOs in Odisha. The variables of FPOs marketing activities (FMA), Marketing

Strategies (FMS) and FPOs Branding and Packaging (FBP) are taken in a descending rank

order. A matrix is prepared. Co factors of matrix are calculated by using the determinants and

matrix in Table 13 and Table 14.

Table 13 Predictive solutions variables

RANK

Variable FMA Variable FMS Variable FBP

C1

C2

C3

1 Extension 29 Training 28 Branding Link 26 R1

2 Low Cost of

Production 29

Market

Link 22 Packaging and Product Safety 22

R2

3 Higher Income 25 Networking 22 Agency Partner 20 R3

4 Brand Facility 18 Educating 19 Brand Name and Tag Name 19 R4

5 Technological

knowhow 17 Promotion 18 Quality Packaging 19

R5

Table 14 Matrix Structure

RANK Column1 Column2 Column3

Co-factors of Matrix

FMA FMS FBP

1 29 28 26 Row 1

a11=

+44

a21= -38 a31=-19 a41=+44 a51=+38

2 29 22 22 Row 2

a 12= -

30

a22=+115 a32=+19 a42=+30 a52=-95

3 25 22 20 Row 3

a 13=

+88

a23=-79 a33=+01 a43=-88 a53=+79

4 18 19 19 Row 4

5 17 18 19 Row 5 Total numbers of co factors=15



Table 15 Top five co factors in Rank order and frequency

Rank Co-factor Variable frequency

1 a22=+115 r2c2=22 r3c1=25 r3c3=20 r4c1=18 r4c4=19 R1c1 1

2 a 13=+88 r1c3=26 r2c1=29 r2c2=22 r3c1=25 r3c2=22 R2c2 3

3 a11=+44 r1c1= 29 r2c2=22 r2c3=22 R2c3=22 r3c3=20 R1c3 1

R3c1 1

Variable Frequency Variable Frequency Variable frequency R2c1 1

R4c1 1 R3c2 2 Total number of

variables = 15

R3c3 1

R3c3 2 R4c4 1 R2c3 2

Projective Marketing, Branding and Packaging attributes to be focused to increase the

FPOs performance significantly.

a22=+115 r2C2=22 r3C1=25 r3C3=20 r4C1=18 r4C4=19

: Reference to predictive solutions.

1. Market link : FPOs has to provide market link to farmers

2. Higher income : FPOs should act to increase the income of the farmers

3. Agency partner : FPOs should make partners with regional agencies

4. Brand facility : FPOs should provide branding knowledge and facility

5. Brand name and tag name : FPOs should help to create brand name and use regional

tag name

Table 16 Rank order of variables which influence Brand and Packaging Performance

Rank Variable Variable frequency Variable name

1 R2c2 3 Market Link

2 R2c3 2 Packaging and Product safety

3 R3c3 2 Agency Partner

4 R3c2 2 Networking

Table 16 show that market link will provide more values to increase the brand

performance. Qualitative packaging and product safety will provide second preference brand

performance attribute. Agency partner with regional NGOs and other marketing agency will

also provide essence to create big brand name in the market. Lastly the networking will uplift

the name and fame of the product as well as the FPOs.

5. FINDINGS

FPOs activity and FPOs Benefits to beneficiaries affects more on the FPOs

performance.

It proves that Marketing Activity and Marketing Strategy has insignificant influence

on

FPOs branding performance

FPOs should act on

a. Market link : FPOs has to provide market link to farmers

b. Higher income : FPOs should act to increase the income of the farmers

c. Agency partner : FPOs should make partners with regional agencies

d. Brand facility : FPOs should provide branding knowledge and facility



e. Brand name and tag name : FPOs should help to create brand name and use

regional tag name

6. CONCLUSION

The concept of aggregation is the key success factor for any FPO. The aggregation of input

requirement by member farmers of FPO should be considered at the beginning of any

cropping season and the aggregated input requirement should be communicated to input

companies by the CEO of FPO. The members of FPO will get inputs at a better price, if

purchase from the input company or distributor of the input company; as compared to the

traditional method of purchase of inputs from a local retailer. Similarly, CEOs of FPOs should

aggregate the farm produce/output and explore bulk buyers of that commodity, instead of

selling to a local intermediary. Farmer members would get better price by selling the output to

organized buyers / retail outlets / bulk buyers, etc. Branding also plays a major role for

availing better price for their produce. In case of non-perishables or semi-perishables, the

produce of the member farmers of the FPO should be branded, packaged and sold to bulk

buyers; instead of selling as a commodity. CEOs and board members of FPOs must be trained

on various aspects of branding, packaging and digital marketing. Each FPO must have a

website, where the detail of the members, the crops produce by them, the varieties grown by

them, the approximate quantity of requirement of inputs, time of requirement of input,

expected quantity of production and time of production should be reflected on the website.

This information will attract input companies as well as the bulk output buyers to get attracted

to the FPO, which would result to cost saving towards input purchase and better price for the

produce of member farmers of the FPO. Capacity building of CEOs and board members in the

areas of branding, promotion, social media management, digital marketing, market

intelligence, access to organized buyers are very much crucial for success of any startup.

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