Develop marketing plan for WSF in Marathwada for cotton for 3 years along with cost-benefit analysis

8/14/2019 Develop marketing plan for WSF in Marathwada for cotton for 3 years along with cost-benefit analysis

1/28

Develop marketing plan forWSF in Marathwada for cotton

for 3 years along with cost-benefit analysis

Submitted By:V.K. Agarwal

Zonal Manager, Aurangabad

1


2/28

2


3/28

CONTENTS

CHAPTER

NUMBER

PARTICULARSPAGE

NOExecutive summary 03

CHAPTER

NO 1About Marathwada 04

CHAPTER

NO 2About WSB 07

CHAPTER

NO 3Data analysis and results 17

CHAPTERNO 4

SWOT Analysis

CHAPTER

NO 4

Recommendations and

suggestions21

Annexure iLand utilization statistics

cotton in Marathwada22

Annexure iiArea/production/yield

figures of 2006-0722

Annexure iiiArea/production/yield


Annexure ivArea/production/yield


Annexure v Rainfall data Marathwada 24

Annexure viCost benefit analysis of

2007-10

24

Annexure viiCost benefit analysis of

2010-1325

3


4/28

Executive summary

In the present agricultural scenario, WSB forms an important

consideration for growth, betterment and productivity enhancement of

any crop. Moreover due to various technological and scientificinnovations, people in the agricultural community of the world aremore conscious about the health and quality of agri produce.

The project was aligned to develop marketing plans for WSB in cottoncrop for three years in Marathwada region in terms of cost benefit

analysis comparable to last three years work done by coromandelinternational limited. So the task is to see the last year sales,

development activities etc and to compare with the expected sales,

development activities. Moreover what innovative techniques will be

used for achieving expected sales growth. We have to also keep thisfact in mind that ultimately goal of financial growth will be achieved.

Therefore, the project was undertaken with following objectives inmind:

1) To study and analyze the Marathwada region completely and toderive the importance of WSB in Cotton crop.

2) To find out area of improvement, if any in the system

3) To determine the importance of WSB in Cotton crop.

4) development activities done by our company in the past three yearsin the particular area. Develop plan for next three years in the same

area and to compare that with the previous figures.

5)to give proper schedule, recommendations and innovative ideas toimprove the sales of WSB in the progressive years and finally to derive

it as cost benefit to the company.

About area

4


5/28

Marathwada:

Marathwada is the region comprising the eight districts of (divisional

headquarters) Jalna, Aurangabad, Parbhani, Hingoli, Nanded, Latur,

Osmanabad and Beed. Was once part of the erstwhile kingdom of theNizam of Hyderabad.

But as per our company districution , Marathwada division consistes of

Aurangabad, Jalna, Buldana, Jalgaon, Parbhani, Hingoli , Nanded &

Latur.

5


6/28

This area economy highly dependable on agriculture and major crops

grown in this area are Cotton, Soyabean, Jowar, Miaze, Bajra, Tur,

Gram and vegetables. Moreover in horticulture crops sweet orange,

banana, sugarcane and very less area covered under grapes as well.

For irrigation people are mainly dependent upon rain water. Though

net sown area in this region is 48.15 lac hac. Out of which net irrigated

area is 6.39 lac hac. But in actual taotal capacity of the area is 70.12

lac hac for sowing and 7.91 lac hac for irrigation.

Main hurdles for this are illiteracy, lack of infrastructure , traditional

way of farming etc.

Like in current year 2009-10, ain was delayed by 2 months, so farmers

could not grow their crop. Thats why the area of sowing decreased,

moreover yield of the crop also reduced to minimum.

6
http://www.iird.org.in/images/MarathwadaIndiaBig.jpg


7/28

The situation of rainfall in the present year 2009-10 can be easily

predict out from the rain fall data till November 2009.

Figure; Rainfall data Analysis of Marathwada region

District

June To

October - 2009 Nov-09 June To November - 2009June To

Sept

Normal

Rainfall

Normal

Rain

Fall

Actual

Rain

Fall

Normal

Rain

Fall

Till

Previou

s Day

Progressive

Total

Normal

Rain

Fall

Actual

Rain

Fall

% To

Normal

Jalgaon 702.4 583.9 20.3 128.3 128.3 722.7 712.2 98.5 663.3

A'bad 675.3 553.5 19.3 135.5 135.5 694.6 689 99.2 623.6

Jalna 688.1 564.1 22.2 64.1 64.1 710.3 628.2 88.4 634.1

Latur 788.6 526.4 25.4 24.3 24.3 814 550.7 67.7 725.3

Nanded 943.8 509.9 15 39.8 39.8 958.8 549.7 57.3 882.9

Parbni 776.7 616.2 19.1 36.1 36.1 795.8 652.3 82 721.7

Hingoli 884.8 603.1 20.6 52.2 52.2 905.4 655.3 72.4 838.5

Buldhana 713 630.8 23.2 106.7 106.7 736.2 737.5 100.2 668.1

state avg 1175.3 957.4 21.5 87.3 87.3 1196.8

1044.

7 87.3 1109

7


8/28

About Product

Water Soluble Fertilizers

Water soluble fertilizers are the fully soluble fertilizers in soluble form.

These are the fertilizers with low salt index and have high contents of

primary nutrients. They are different from conventional complex

fertilsers in various aspects . some are as under:

8


9/28

Different grades of water soluble fertilizers of Coromandel

International Limited

Advantages of Water soluble fertilizers are :

1. Provides a source of immediately available plant nutrients.2. Particularly suitable for fast growing field, vegetable and nurserycrops.3. No leaching, No groundwater contamination4. No wastage - cost saving5. WSF improve the quality of final produce

Colour

size

keeping quality/shipping quality

Can be applied to fruit and other crops even nearing maturity

9


10/28

Mode of application of water soluble fertilizers are:

WaterThere occurs a need for water soluble fertilisers because of the various

limitations of soil application fertilisrers. Various plant factors like root

inactivity, damage, insect pest infestation and disease etc. And theonly possible solution for the above mentioned problems are use of

water soluble fertilisers.

Foliar fertilisation is found to be an effective way to apply additional

nutrients to crop when the supply of the nutrients is restricted becauseof various factors.

Advantages of foliar feeding over soil application

o Immediate results

o Prolong bloom

o Increase crop yields

o Increase storage life of food crops

o Boost growth during dry spells

10


11/28

o Increase cold and heat tolerance

o Increase pest and disease resistance

o Maximize plant health and quality

o Help the internal circulation of the plant

11


12/28

Various grades of water soluble fertilisers for CoromandelInternational Limited

12


13/28

Advantages of Gromor Spray 19.19.19

In the initial stages of plant growth NPK are required in the

balanced form Soil fertilisers are not fully utilised by the plant and crops always

shows hunger for nutrients. So Foliar application of Gromor Spray 19.19.19 provide the

balanced nutrition to the crop in the early growth period/ prebloom period.

Most suitable formula to enhance the vegetative growth.

Contains the balanced ratio of NPK.

Provide balanced nutrition to the crops in the early growthstages.

Helps in increased branching

Increased flowering

13


14/28

Gromor Spray-K (13.0.45)

14


15/28

Potassium in physiological processes

1. Activates more than 60 enzyme systems

2. Aids in photosynthesis3. Favors high energy status

4. Maintains cell turgor

5. Regulates opening of leaf stomata6. Promotes water uptake

7. Regulates nutrients translocation in plant8. Favors carbohydrate transport and storage

9. Enhances N uptake and protein synthesis

10.Promotes starch synthesis

Gromor Spray SOP 0.0.50

15


16/28

Rich Source of Potash and Sulphur.

Most effective source of supplying K to Chloride sensitive cropslike Fruits, Vines, Tobacco, Potato Veg. etc.

Good to enhance the quality and shine of the crops

WSF Application timing

Stage Days Product

Initial growth 15 45 days 19:19:19

Flowering time 45- 75 days 13:0:45

MaturityStage

>100 days 0:0:50

General Recommendation for Using Gromor Spray fertilisers oncrops

Stage of the crop Recommended Grade Benefits

16


17/28

Vegetative / new flushemergence/FloweringStage

Gromor Spray19.19.19

Enhanced flowering

Provides balanced nutrition

to crop during growing phase

Flowering /fruit setstage Gromor Spray K13.0.45

Acts as flowering & fruitingbooster Promotes flower bud

opening and fruit set Increases the crop

resistance to pestsand diseases

Satisfies hidden hunger

of potash in crops

Fruit developmentStage

Gromor Spray SOP0.0.50

Increases the size of the fruit Satisfies the hidden hunger

of potash in crops during fruitdevelopment

Increases the shining,

quality and shelf life of fruit crops

17


18/28

Data Analysis & Results

As the topic of my project is Develop marketing plan for WSF inMarathwada for cotton for 3 years along with cost-benefit analysis. So

while going for data analysis and results of our interpretations wehave to go deeply through various aspects.

As there are many water soluble grades available in market, so just for

assumption I am taking 19:19:19 foliar spray for my study.

Average sowing and potentiality of the area

Year

Avg. Sowing area of

cotton

Potentiality @ 2.5

Kg/ha

2007-

08 45876 1146902008-

09 47654 1191352009-

10 48200 120500

Now we can see it clearly that the total potentiality of waters soluble

for all crops in Marathwada region is more then 12000 MTs. This isconsolidated for all crops.

Even we assume cotton as the major crop in Marathwada territory,and we take cotton area 60%, then also the potentiality of the WSB is

more then 7500 MTs.

Now this is the hypothetical figures, one cant think even to achieve

that amount of target. The major reasons are:

1) Penetration of the product.2) One time use of product by many farmers. They didnt use it

again in their life.3) Awareness about the product.

18


19/28

But still the scope of WSB in marathwada region cant be declined.Even if we take 25% possibility of WSB sale in Marathwada, ecen then

the figure is near about 2700 MTs.Now lets take note of the current year sales of all companies in

Marathwada region for year 2009-10.

Market size for WSB for 2009-10

Coromandel Juari RCF Deepak Others Total

Aurangabad 178 113 122 83 55 551

Nanded 183 55 43 37 62 380

Jalgaon 160 108 130 103 225 726

Latur 60 50 18 55 9 192

Total 581 326 313 278 351 1849

Now we can very well see that out of the total potentiality of

12000MTs, consolidated sales of all companies in my area is less then200 MT, i.e. 17%only.

Now our last 3 years sales i.e. 2007-10 is shown in chart in annexurespage. When we compare cost of WSB with profit, the graph will be as

shown below. From that graph it is clearly shown that expenses fromthe year 2007-08 to 2008-09 are inceraded, while there is no change

in the profit figures. Moreover expenses from the year 2008-09 to

2009-10 are decreased with slightly change in the profit figures.

19


20/28

Figure: Expense VS profit graph of previous 3 years

When we make graph of expenses VS profit for next consecutive yearsfrom 2010-13, there is a little variation in the profit figures.

Figure: Expense VS profit graph of next 3 years

Now while comparing expenses and profit of previous and expected

sales of WSB, we can clearly see with this graph that we will lowerdown the expenses, but will increase the profit to a great extent.

Detailed chart of this calculation will be shown in annexure.

20


21/28

Figure: Previous VS Expected sales profit/expense comparison

21


22/28

SWOT Analysis

Strengths of our products:

1) Excellent quality.

2) Good packaging.3) Good trust of farmers and distributors.

4) Good margin to dealers and retailers.5) Availability in different grades.

6) Quickly fulfill demand and supply gap.

Weakness of our products:

1) High costing as compared to competitors.

2) Very less fertilizers supply in my area.3) Undercutting of products by dealers/ retailers.

4) Not well known brand.

Opportunities for our products:

1) As it is a very potential market of 12000 MTs and consolidated

sales for all companies in 2000 MTs only, so there is a greatpotentiality for increase market share.

2) With expected change in fertilizers policy , more farmers will gofor WSB instead of Complex fertilizers.

3) With extensive market development activities we can definitelyachieve the maximum market share of the product.

Threats for our products:

1) No departmental support.

2) Linking issues.3) Undercutting of products by dealers/ retailers.

4) Leading fertilizers suppliers are bringing many WSB grades incheaper rate.

5) Local manufactures are making poor quality WSB products, sothey may deteriorate the market.6) Linking of our products by other companies product.

22


23/28

Recommendations & conclusion

As we know that the total potentiality of Marathwada region is 12000MT, and total sales of all companies in this region is 2000 MT only. But

still we are the leading players in this area.

So only recommendation is that we need good support from

departmental, dealer, farmers and company side.

I request you to please do separate our promotional budget for SND,Organic and fertilizers. This is only because of the fact that as we have

to concentrate on different product wise, so budget should also be

separated.

I also request you to organize product wise seminars for dealers,retailers, farmers, PT, MO and for all the staff of Coromandel.This will

help us to get more aware about latest technologies and queries.

Literature and promotional things should be available in time, In local

and common language.Like this year we didnt get posters andliteratures for 28:28:00 etc in time. Moreover many literature were

printed in English/Hindi rather then Marathi.

In the end I conclude that if enough support will be provided from

Higher management team, Product team then achieving bigger targets

will not be impossible.

23


24/28

Annexures:

Land utililisation Statistics (00 Ha): Cotton In Marathwada

District

Netsown

Grosssown

netIrigated

grossirrigated

% grossirrigated

Jalgaon 8501 13057 1558 1454 11.1

A'bad 6937 11065 1557 1297 11.2

Jalna 5711 7325 739 984 13.4

Latur 5181 7315 560 756 10.3Nanded 7048 8313 649 938 11.3Parb

ni 4838 8635 441 791 9.2Hingoli 3292 5255 509 764 14.5Buldna 6692 8459 379 436 5.2

Area/Production/Yield figures 2006-07

DistrictArea in 00Ha

Production in 00MT

Yield inlint

Jalgaon 4160 9485 388

A'bad 3061 6898 383

Jalna 2675 6491 413

Latur 18 27 255

Nanded 288 2730 223

Parbni 1981 5445 467

Hingoli 749 2711 615

Buldna 2492 5549 379

24


25/28


District

Area in 00Ha

Production in 00MT

Yield inlint

Jalgaon 4160 9480 391

A'bad 3061 6901 383

Jalna 2675 6495 413

Latur 18 31 256Nanded 288 2730 223

Parbni 1981 5446 470Hingoli 749 2719 167

Buldna 2492 5569 380


District

Area in00 Ha

Production in00 MT

Yield inlint

Jalgaon 4160 9480 396

A'bad 3061 6904 389Jalna 2675 6496 413

Latur 18 32 256Nanded 288 2732 223Parbni 1981 5447 472Hingoli 749 2719 167Buldna 2492 5570 381


District

Area in 00Ha

Production in 00MT

Yield inlint

Jalgaon 4160 9480 396

25


26/28

A'bad 3061 6904 389

Jalna 2675 6496 413

Latur 18 32 256Nanded 288 2732 223

Parbni 1981 5447 472Hingoli 749 2719 167Buldna 2492 5570 381

District

June ToOctober - 2009 Nov-09 June To November - 2009

June To

SeptNormal

Rainfall

NormalRain

Fall

ActualRain

Fall

NormalRain

Fall

TillPreviou

s Day

Progressive

Total

NormalRain

Fall

ActualRain

Fall

% To

Normal

Jalgaon 702.4 583.9 20.3 128.3 128.3 722.7 712.2 98.5 663.3

A'bad 675.3 553.5 19.3 135.5 135.5 694.6 689 99.2 623.6

Jalna 688.1 564.1 22.2 64.1 64.1 710.3 628.2 88.4 634.1

Latur 788.6 526.4 25.4 24.3 24.3 814 550.7 67.7 725.3Nanded 943.8 509.9 15 39.8 39.8 958.8 549.7 57.3 882.9

Parbni 776.7 616.2 19.1 36.1 36.1 795.8 652.3 82 721.7

Hingoli 884.8 603.1 20.6 52.2 52.2 905.4 655.3 72.4 838.5

Buldhana 713 630.8 23.2 106.7 106.7 736.2 737.5 100.2 668.1

state avg 1175.3 957.4 21.5 87.3 87.3 1196.8

1044.

7 87.3 1109

Cost benefit analysis 2007-08 Cost benefit analysis 2008-09 Cost benefit analysis 2009-10

Mkt dvlpmnt program cost Mkt dvlpmnt program cost Mkt dvlpmnt program cost

Farmers seminar 15000 Farmers seminar 25000 Farmers seminar 40000

Jeep campaigh 150000 Jeep campaigh 200000 Jeep campaigh 260000

PT 100000 PT 150000 PT 200000

26


27/28

Farmers scheme 0 Farmers scheme 0 Farmers scheme 0

Printing & media 100000 Printing & media 100000 Printing & media 100000

Demonstration 5000 Demonstration 5000 Demonstration 5000

Dealer meet 50000 Dealer meet 50000 Dealer meet 45000

Retailers meet 50000 Retailers meet 50000 Retailers meet 50000

Total 470000 Total 580000 Total 700000

market dev cost 470000 market dev cost 580000 market dev cost 700000

Target 135 3480 Target 258 2250 Target 580 1207

Basic price 60000 Basic price 80000 Basic price 60000

Primary freight 1000 Primary freight 1000 Primary freight 1000

Sec Transportation 1000 Sec Transportation 1100 Sec Transportation 900

Incentive to MO 1000 Incentive to MO 1000 Incentive to MO 1000

Market dev cost 3480 Market dev cost 2250 Market dev cost 1207

incentive to PT 100 incentive to PT 100 incentive to PT 100


Cost benefit ratio Cost benefit ratio Cost benefit ratio

Sales cost 85000 Sales cost 105000 Sales cost 85000

Expences 66580 Expences 85450 Expences 64207

Profit 18420 Profit 19550 Profit 20793

Net profit @ 135MT 2486700



Cost benefit analysis 2010-11 Cost benefit analysis 2011-12 Cost benefit analysis 2012-13

Mkt dev programcost Mkt dev program cost

Mkt dev programcost

Farmers seminar 50000 Farmers seminar 60000 Farmers seminar 65000

Jeep campaigh 300000 Jeep campaigh 325000 Jeep campaigh 350000

PT 500000 PT 525000 PT 550000

Farmers scheme 50000 Farmers scheme 60000 Farmers scheme 70000

Printing & media 150000 Printing & media 175000 Printing & media 200000

Demonstration 10000 Demonstration 10000 Demonstration 10000

Dealer meet 50000 Dealer meet 50000 Dealer meet 60000

Retailers meet 50000 Retailers meet 50000 Retailers meet 60000


market dev cost 1160000 market dev cost 1255000 market dev cost 1365000

Target 800 1450 Target 1000 1255 Target 1250 1092

27


28/28

Basic price 60000 Basic price 60000 Basic price 60000

Primary freight 1000 Primary freight 1000 Primary freight 1000

Sec Transportation 1000 Sec Transportation 1100 Sec Transportation 1150

Incentive to MO 1000 Incentive to MO 1000 Incentive to MO 1000

Market dev cost 1450 Market dev cost 1255 Market dev cost 1092

incentive to PT 100 incentive to PT 100 incentive to PT 100


Cost benefit ratio Cost benefit ratio Cost benefit ratio

Sales cost 85000 Sales cost 85000 Sales cost 85000

Expences 64550 Expences 64480 Expences 64342

Profit 20450 Profit 20520 Profit 20658

Net profit @ 800 MT 16360000Net profit @ 1000MT 20520000

Net profit @ 1250MT 25822500

Develop marketing plan for WSF in Marathwada for cotton for 3 years along with cost-benefit analysis

Documents

Transcript of Develop marketing plan for WSF in Marathwada for cotton for 3 years along with cost-benefit analysis