Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
-
Upload
kumarvijay44 -
Category
Documents
-
view
220 -
download
0
Transcript of Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
1/75
MEASURING IMPACT OF ORGANISED RETAIL
ON FOOD PROCESSING INDUSTRY
A Research Report is submitted to the faculty ofMARKETING RESEARCH, Centre for retail Management, FDDI
In Partial fulfillment Requirement of PGDRM course (2007-09)
SUBMITTED BY: SUBMITTED TO:
(51)Vijay Kumar Mr Shashank Mehra
F.M.R.
CRM, FDDI
FDDI(NOIDA)(center for retail management)
(ministry of commerce, GOVT. OF INDIA)
1
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
2/75
THE LETTER OF AUTHORIZATION
As per the integral part of the Marketing Research subject, we have undertakenProjects to conduct a research on measuring the impact of organizeretail on food processing industry.
This research covers major section of ourlearning process and covers all the data and information collectedwhich is authentic & going to be used exclusively for academic purposeonly.
Therefore our respectful faculty of Marketing Research Mr. Shashank
Mehra has authorized this project and hence all the steps undertakenby us were as per his specific guidelines and directions.
Authorized By:
Mr. Shashank Mehra(Faculty of Marketing Research)
2
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
3/75
LETTER/MEMO OF TRANSMITTAL
May 01, 2008Mr. Shashank Mehra,Faculty Centre For Retail Management,FDDI, Noida.
Respected Sir,As, per the area and objective of our research and authority received fromyou we have now completed the investigation on various factors effecting
food production and distribution. The result of our research is contained inthis Report entitled Impact Of organized retail on food processingindustry. This report is based on the data collected throughquestionnaires both from retailers & farmers. The methodology adopted isdescribed in the report and the relevant research practices were used in theconduct of the study. We believe that the result to be valid and reliablewithin the constraints as defined in the report. We also believe that as perguidelines and specifications received, you will find the report interestingas well as an addition to the on going research on the concerned fieldwhich will bring new opportunities for future research.
Yours Sincerely,
Vijay kumar
PGDRM,Centre for Retail Management,
3
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
4/75
TABLE OF CONTENTS OF RESEARCH REPORT
Section Title Page No.
1. Executive Summery 7
Major findings
Conclusions
Recommendation
2. Introduction 9
Some Facts 10
Background 11
3. Objective of the study 12
4. Research Design 16
5. Methodology 17-19
Population definition 17
The sample plan 17
The sample size 18
Development of the survey questionnaire 18
Collecting the data 18
The response rate 19 Statistical technique used 19
4
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
5/75
6. Analysis of result 20-42
A profile of the total sample 20
a) Retailersb) Farmers
Analysis of retailer response 21-31
Analysis of farmer response 32-42
7. Limitations of the study 43
8. Conclusion and recommendations 44
Conclusions 44
Strategic recommendations 45
9. End matter (appendixes) 46-73
Questionnaire 46-51
a) Retailers 46-48b) Farmers 49-51
Frequency tables 52-73
a) Retailers 52-62b) Farmer 63-73
10. Bibliography & references 74
5
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
6/75
EXECUTIVE SUMMARY
MAJOR FINDINGS:
As per the area of research undertaken by us i.e.., IMPACT OFORGANISED RETAIL ON FOOD PROCESSING INDUSTRY the majorfindings are also divided into two parts-
In term of retailer.
In term of farmer
Retailer-
Major findings that came into being after conducting a research on retailerare:-
Most of the organized retailers are of the thought that direct tie-up
between farmers and retailers will ultimately going to help them both in abig way.
Above all it will also help in controlling black marketing and inflation.
In terms of strategy for selling most of the retailers feels it is better to go
with a push oriented strategy.
Farmers-
Major findings derived through farmers are:-
Majority of the farmers feels that current supply chain needs to be vastlyimproved and transportation is the one factor that needs maximumattention.
Farmers want minimum number of intermediaries in terms of supply chain.
And they think technology can be very helpful in increasing Agro output. As like the retailers, farmers also feels that direct dealing with Big retailers
could be helpful in reducing price and wastages.
6
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
7/75
CONCLUSIONS:
As per the research undertaken & the result derived with in the availableconstraints it can be concluded that:-
Organized retail is acting as a catalyst for food processing industry right
from farmers to processor to retailers.
Tie-ups between farmers and retailers are really going to help them both
term of efficiency and productivity. Supply chain needs to be vastly improved in terms of storage,
transportation and value addition.
RECOMMENDATION:
Govt should play a pro active role in building the supply chain
infrastructures like cold storages and warehouses besides that they shouldmade the policies friendly to both farmers and retailers.
Organized retailers should help farmers and processors or provide them
with the technical know-how of the food processing industry because it is
ultimately going to pay them back in term of getting good and fast food.
7
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
8/75
INTRODUCTION
India is worlds second largest food producers and can double the foodsproduction in next 10 years. In India growing retail appetite, the food sectorstands out to be the most promising one. Retail segment has opened upopportunities for processed food products in the country. Indian food industry isfull of small players at each level of food chain. Large supply integrator, chainretailers and cooperatives that have actively driven the development of foodchains in developed economies are missing in India. But now because of Indianeconomy is growing at a stupendous pace. Rising income leading to higherhousehold spending on a variety of goods and services consumers are spending asnever before especially on food. Urbanization and nuclear families too forces
consumer to seek convenience food like ready to cook or ready to eat food. Asdemand for quality food expands, large corporate have began to makeinvestments in retail chains and food processing like Nestle India Ltd., ITC Agroetc. The entry of so many professionally managed business houses will raise thestandard of customer service, improve category management and make sourcingmore efficient. Food supplies to retail chains are required to be processed and
package as also delivered at a reasonable cost investment in food processinghappens once retail chains expands investment will also flow into warehousing toreduce wastages of perishable goods it also helps in developing existing food
products and design processes to attain the best quality and safety.
Indian economy is growing at a rapid rate of 9% with that income level ofcommon man is also rising. Rising income level means more spending power andlifestyle and convenience shopping. This concept is fueling the organized retailindustry, which has a direct connection of dependence on food processingindustry. Food processors give retailers and wholesalers the food and the
beverages product they want, where they want and when they want with the packaging they prefer. Food processing industry has to nurture further bydeveloping a demand oriented approach that is implementing just-in-timeapproach to achieved higher customer satisfaction and reduce wastages andexcess inventories which in turn reduces cost for both commodities in warehousespace, ultimately increasing productivity.
8
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
9/75
INDIAS FOOD PRODUCTION: SOME FACTS
India with arable land of 184 million hectares.
India produces annually 90 million tones of milk (highest in the world)
India produces 150 million tones of fruits & vegetables (second largest)
India has 485 million livestock population (largest)
India produces 204 million tones food grain (third largest)
India produces 6.3 million tones fish (3rd largest),
India has 489 million Poultry and produces 45,200 million eggs.
India had the Green Revolution, the White Revolution, and the BlueRevolution,And now the focus is on the Pink Revolution.
The Green Revolution had led to self-sufficiency in food grains, the WhiteRevolution
Saw India occupy the Number One Position in milk production in the world, and theBlue Revolution brought about increase in fish production.
Processed fruits & vegetable:
India is the worlds second largest producer of fruits and vegetables. The hugeproduction base needs to be supported by strong food processing industry. Currently
in India the processing level is estimated to be around 2.20 %.The major items of theIndian fruits and vegetable processing industry are pulps Particularly of tomatoes &mangoes, ready to serve juices, canned fruits, jam, Pickles, squashes, etc.Frozen fruits,dehydrated & freeze dried vegetables, canned mushrooms etc. are also becoming
popular among Indian consumers. The fruit and vegetable processing industry in Indiais highly decentralized with large number of units is in the cottage/home scale
9
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
10/75
And small scale sector. According to Ministry of Food Processing the installedcapacity of fruits and Vegetables processing industry has increased from 11.08 lakhtons in January 1993 to 21.18 lakh tons in January 2006. The utilization of fruitsand vegetables for Processing is estimated to be around 2.20 percent of the total
production.
RATIONALE
India can become the food supplier of the world. It has the cultivable land, all theseasons for production of all varieties of fruits and vegetables, an agribusiness systemthat works although it needs to be vastly improved. The single most important problemfacing the Indian agricultural industry is the highly inefficient supply chain. Becauseof lack of cold chain infrastructure and also a food processing industry about 20% ofall foods produced in India (Rs.500b) are wasted. By building an efficient andeffective supply chain using state of the art techniques it is possible to serve the
population with value added food while simultaneously ensuring remunerative pricesto the farmers. The surplus of cereals, fruits, vegetables, milk, fish, meat and poultry
can be processed as value added food products and marketed aggressively both locallyand internationally. Investment in cold chain infrastructure, applied research in postharvest technologies, installation of food processing plants in various sectors anddevelopment of food retailing sector are mandatory for achieving gains in this sector.
Indian food processing industry logging an impressive growth rate of 18% up from 8%in 2004. Food processing industry employs around 15 million people with a turnover of 70 billion dollar per year by 2010 industry is expected to be worth 150 billiondollars. India has a potential to be the food basket of the world it has large rawmaterial base and varied agro climatic conditions. Rising incomes, changing foodhabits leading to tremendous scope in terms of variety of product that can be put onself. So, retail will provide the strong local production and consumption
base.moreover, pre and post harvest technology can help reduce wastages and savecost.
10
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
11/75
FDI in retail could fuel Food processing industry. it will provide for much neededtechnical know how to farmers which the established retailers across the world will
bring along with them when they open shops in the country.foriegn retail giants arewilling to buy 30 billion dollars worth of processed food from the country. Accordingto study country could attract 1.5 to 2 lakh crore in 10 years time if it opens door toFDI in retail.
OBJECTIVES
Determining the various issues that are influencing food production anddistribution.
Measuring current supply chain and impact of organized retail on foodprocessing industry.
Identify the key factors that farmers and food processors should reap throughorganized retailers.
Measuring the role of govt. in enhancing investment in food processingsector.
11
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
12/75
PROBLEMS IN INDIAN FOOD PROCESSING SECTOR:
1 Indian production and consumption centers are widely dispersed.As a result actual cost of transportation becomes much higher due to longsupply chain with inadequate cold storage facilities for perishable products.
2 Indias supply chain for perishable is characterized by extensive wastages andpoor handling. The wastages occurs because of multiple point of manualhandling, inadequate packaging and temperature control and lack of cold
storage network both in term of storage, processing and transportation.
3 Production of raw material being relatively unorganized, seasonal and spatiallydisbursed.
4 The supply chain is long because of number of intermediaries due to whichfarmer will not be able to get due for their produce
.
5 Value additions in terms of sorting, grading, storage and bulk handlingfacilities are very less due to lack of capital and experience in food
retailing.
6 The reason for such a distress selling are(1)lack of direct linkages withmarket(2)lack of processing facilities.
7 Ineffective marketing channels.
12
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
13/75
WHY INVEST IN INDIAN FOOD PROCESSING SECTOR?
Due to its diverse agro-climatic conditions, it has a wide-ranging and largeRaw material base suitable for food processing industries. Presently a verySmall percentages of these are processed into value added products.
It is one of the biggest emerging markets, with over 900 million populationsAnd a 250 million strong middle class.
Rapid urbanization, increased literacy and rising per capita income, have allCaused rapid growth and changes in demand patterns, leading to tremendousnew opportunities for exploiting the large latent market. An average IndianSpends about 50% of household expenditure on food items.
Demand for processed/convenience food is constantly on the rise.
India's comparatively cheaper workforce can be effectively utilized to setupLarge low cost production bases for domestic and export markets.
Liberalized overall policy regime, with specific incentives for high priority food
Processing sector. No industry license is required for food processing industries.
Very good investment opportunities exist in many areas of food processingIndustries, the important ones being: fruit & vegetable processing, meat, fish& poultry processing, packaged, convenience food and drinks.
Exclusive Agri Export Zones set up for end to end development for export ofSpecific products from geographically contiguous areas
Setting up of food parks to enable food and beverage units to use capitalIntensive facilities, such as cold storage, warehouse, quality control labs,Effluent treatment plant etc
13
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
14/75
Agro based 100% Export Oriented Units allowed sales up to 50% in Domesticmarket
Presence of virtually all major multi-national companies like Coca-Cola,Pepsi,Britannia, DANONE, Nestle, Cadbury, Lever's Kelloggs, Heinz,International Best Foods Walls, Perfetti, Van Melle, etcIn a developing country like India a large chunk of consumer expenditure is on
basic necessities, especially food related items. A recent study by KSA TechnopakIndia Pvt. Ltd. has revealed that food and beverages still gets the major chunk of
the total consumer spending in India followed by clothing and footwear.
Sector wise Indian Consumer Expenditure:
S.No. Sector Share of Consumer spending in India:
1 Food and beverages 52 percent2 Cloth & footwear 11 percent3 Entertainment 3 percent4 Consumer durables and furniture 7 percent5 Health care 2 percent6 Housing 9 percent7 Others 16 percent
14
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
15/75
FOREIGN DIRECT INVESTMENT IN FOOD PROCESSINGSECTOR
The Indian food processing market is one of the largest in terms of production,consumption, and export and import prospects. Since, India is one of the majorfood producers worldwide, with new reforms ruling the roost, it encouragescommercialization. The country's food processing market is opening up to a widerange of investors across the globe. In fact, in the last decade, India moved from anera of scarcity to surplus, in the area of food production. Consequently, analysts areof the opinion that the Food Processing Industry in India is on an assured track ofgrowth and profitability over the next five years. It is also estimated that food-
processing market in India will attract a phenomenal investment, in the form ofcapital, human, technological, and financial, of over US$32.1 million by 2010.
15
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
16/75
RESEARCH DESIGN
The research design followed during the course of research work was-
Exploratory research:
To study and gain the knowledge about the current supply chain in the food
processing industry and the shortcomings which it is facing.
We have done pilot study on retailers and their processors. Our focus group includ
Farmers, Retailers and Processors.
To study problem faced by the retailers and the farmers during supply chain we hav
conducted the focus group interview.
Descriptive Research:
After going through the EXPLORATORY REASEARCH, the research processwas advanced with the help of DESCRIPTIVE RESEARCH, which wasfollowed in the following manner:-
Designing and developing if questionnaires for both the retailers and
farmers.
Collection of data and information with the help of these questionnaires.
Cross sectional study been done to explore the impact of organized retail on
foodProcessing industry.
Evaluation and analysis of data as per the objectives of the research.
16
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
17/75
Final conclusion & recommendation as per the analysis
METHODOLOGY
POPULATION DEFINITION
The population or the parameter considered for the research purpose covers:-
Farmers both big and small dealing in different types of crops.
Retailers especially grocery stores which can be called as organized
retailers.
Some of the experts of the specialized areas have also been interviewed to
know the expert opinion.
SAMPLE PLAN
The selection of the samples is done through following sampling technique:
17
SAMPLE PLAN
PROBABILITY SAMPLING NON-PROBABILITY
SAMPLING
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
18/75
SAMPLE SIZE:
Retailers- 15
Farmers- 20
SAMPLE LOCATION:
Selected retail grocery stores in Delhi & NCR region.
Farmers interviewed are from Surajpur, Noida & Kasna.
DEVELOPMENT OF SURVEY QUESTINNAIRE:
The development of survey questionnaire took place in two phases:-
Initial phase At this phase the questionnaire were designed using various toolsand techniques as per the research objectives and gone through the pilot testing.
Final phase At this phase the final questionnaire were designed after makingnecessary corrections in previous questionnaire introduced through pilot testing.
COLLECTING THE DATA:
Collection of data from retailers and farmers was done with the help ofQUESTIONNAIRE.
RESPONSE RATE:
As per the number of retailers and farmers contacted the responserates were:-
18
SIMPLE
RANDOMSAMPLING
JUDGMENT
SAMPLING
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
19/75
Retailers:
No of retailers contacted Response No Response18 15 03
RESPONSE RATE: 83.33%
Farmers:
No of farmers contacted Response No Response24 18 06
RESPONSE RATE: 75%
STATISTICAL TECHNIQUES USED:
Statistical tools used are:
Mean
Mode
Standard Deviation
19
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
20/75
ANALYSIS OF RESULT
Profiles of samples
Retailers -:
The retailers selected by us as a sample were among the major retailers of India,dealing either in apparel or in grocery. These retailers belong to major
business units of India, which are -:
Future group Reliance group
Subhiksha
Birlas group
etc
Farmers -:
The farmers selected by us as a sample from from different locations of DELHI&NCR. They were operating on both low and high level of production.
20
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
21/75
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
22/75
1. From where are you procuring your inventories ?
13%
27%
7%
46%
7%
farmers
vendorsagents
warehouse
noresponse
To determine the procurement source for retailer
highest response rate is warehouse
second highest is vendors
overall results reflect 50% of the retailer are procuring from warehouses
Nominal scaling technique is used
Mode is used as a statistical tool(4)
22
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
23/75
2. Do you think Tie-ups between farmers and retailers will help in controllingblack marketing and inflation?
80%
20%
0%0%0%
stronglyagree
somewhatagree
somewhatdisagree
stronglydisagree
noresponse
To know the retailers opinion about tie-ups between them & farmers
Single item balanced scaling technique is used
Most of the retailers are agreed with the advantages of tie-ups
Response rate is 100%
Mode is used as a statistical tool(1)
23
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
24/75
3. Do you think by helping the farmers, Retailers are ultimately helpingthemselves?
73%
27%
0%0%0%
somewhatagree
stronglyagree
somewhatdisagree
stronglydisagree
noresponse
To determine how much are retailers ready to help farmers in term of
production and distribution.
Most of the retailers are agreed with the statement asked to them to give
their opinion
Response rate is 100%
Single item balanced scaling technique is used Mode is used as a statistical tool
24
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
25/75
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
26/75
5. Do you think In-house processing facility will improve product line andproductivity for retailers?
33%
54%
0%
0%
13%
stronglyagree
somewhatagree
somewhatdisagree
stronglydisagree
noresponse
To know the retailers opinion about In-house processing facility
Single item balanced scaling technique is used
Majority of the feels it could improve product line & productivity
Response rate is 100%
Mode = 2
26
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
27/75
6. Which market do you think is having maximum opportunities?
0%
87%
13%
rural
urban
semiurban
To determine which market they would see has maximum opportunities
87% of the retailers feels urban middle class market has the maximum
opportunities to explore
Comparative scaling(constant sum) technique is used
High response in favor of urban market 87%
Mode = 2
27
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
28/75
7. Where do you think the maximum investment needs to be done?
40%
53%
0%7% 0%
storage
transportation
processing
coldstorage
noresponse
To know which factor of supply chain they think needs maximum
investment
Nominal scaling technique is used
Highest response rate for the transportation (53%)
Second highest is for cold storage (40%)
Outcome is that the transportation needs more attention than other factors
Mode = 2
28
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
29/75
8. Do you think growing need of quality food will ultimately push foodprocessing sector?
60%
40%
0%0%0%
stronglyagree
somewhatagreesomewhatdisagree
stronglydisagree
noresponse
To take the retailers opinion about relationship between quality food and
food processing sector
Single item balanced scaling technique is used
Majority of the retailer(60%) feels demand of quality food is certainly going
to push food processing sector
100% response rate is received
Mode = 1
29
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
30/75
9. Which strategy do you think is best for retailers?
0
2
4
6
8
10
12
14
pushoriented pulloriented
no
ofre
atilers
Series1
To know which strategy they are going with i.e. demand oriented or
marketing oriented
Comparative scaling(constant sum) technique is used
Most of the retailers are going up with push oriented strategy i.e. pushing the
customer to buy the product
Mode = 1
30
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
31/75
10. Do you think packaged food industry has huge scope of improvement both interm of product and market?
53%
47%
0%0%0%
stronglyagree
somewhatagree
somewhatdisagree
stronglydisagree
noresponse
To determine what the retailers think about food processing industry and its
market
Single item balanced scaling technique is used
100% response rate
Almost all of the retailers feels food processing industry needs lots ofimprovement
Mode = 1
31
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
32/75
ANALYSIS OF FARMERS RESPONSE
6%6%
6%
6%
6%
6%
6%
6%6%6%
6%
6%
6%
6%
6%
6%
6%6%
far1
far2
far3
far4
far5far6
far7
far8
far9
far10
far11
far12
far13
far14
far15
far16
far17
far18
Response received from 18 farmers
Sample collected form NCR Non probability judgement sampling is used
No response from 6 farmers
Response rate is 75%
Full contribution and equal participation by each farmer@6%
32
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
33/75
1. Which according to you is the most critical factor affecting post harvestingprocess?
22%
22%45%
11%0%
cold storage
warehouse
transportation
valuaddition
no respose
To determine the most important factor after harvesting or production
Response rate is 100%
Majority of the farmers takes transportation as the critical factor
High response is 45%(transportation) & lowest is value 11%(addition) Nominal scaling technique is used
Mode = 3
33
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
34/75
2. Do you think current supply chain needs to be vastly improved?
67%
33%
0%0%0%
storngly agree
somewhat agreesomewhat disagree
stornglydisagree
no response
To take the farmers opinion on current supply chain
100% response rate is achieved
Single item balanced scaling technique is used
Majority of the farmers are in the favor of improvement of current supply
chain
Mode = 1
34
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
35/75
3. Do you think direct dealing between farmers and retailers will reduce price andwastages?
55%
28%
17%
0%
0%
strongly agree
somewhat agree
somewhat disagree
strongly disagree
no reponse
To know what the farmers think about their dealing with retailers
100% Response rate
Single item balanced scaling technique is used
Around 50% are in the strong favor of direct dealing with retailers
11% of the farmer feels otherwise
Mode = 1
35
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
36/75
4. Do you satisfy with the efforts being made by Govt in improving foodproduction and distribution?
49%
28%
0%
17%
6%
don't like
somewhat like
very much like
excellent
no response
To know whether they like the efforts being made from the side of the Govt
Single item balanced scaling technique is used
Half of the respondent do not satisfy the efforts by govt
17% said govt is doing excellent
6% have no response
Mode = 1
36
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
37/75
5. Do you think technology can be helpful in increasing agro output?
72%
28%
0%0%0%
strongly agree
somewhat agree
somewhat disagree
strongly disagree
no reponse
To know the farmers opinion about use of the technology in agriculture
Single item balanced scaling technique is used
Response rate is 100%
Most of the farmers are of the view that technology is certainly a helpfulfactor in agro processing sector
Mode = 1
37
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
38/75
6. Do you have sustainable or continuous demand for your product?
4 4
10
0
2
4
6
8
10
12
yes no somewhat
noo
fretalers
Series1
Series2
To know the demand pattern for the product of farmers Nominal scaling technique is used
61% of the farmers said they have continuous demand for their product
22% have no response
Mode = 2
38
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
39/75
7. Do you think their should be a integrated cold storage and processing facility forfarmers and retailers
77%
17%
0%
0%
6%
strongly agree
somewhat agree
somewhat disagree
strongly disagree
no reponse
to know the farmers opinion about integrated cold storage and processing
facility
100% response rate
Most of the farmers were in favor of integrated food processing facilities
Single item balanced scaling technique is used
Mode = 1
39
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
40/75
8. Do you think less number of intermediaries will help both farmers andretailers?
83%
17%
0%0%0%
strongly agree
somewhat agree
somewhat disagree
strongly disagree
no reponse
To know the farmers opinion about intermediaries In supply chain Response rate is 100%
Single item balanced scaling technique is used
83% of the farmers feels more intermediaries
will reduce price for both them and retailers
mode = 1
40
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
41/75
9. Which strategy do you prefer while production?
12
6
0
2
4
6
8
10
12
14
PUSH(produce & sell() PULL(food on demand)
NOO
FRETAILERS
Series1
To know whether farmers are going with pull or push oriented strategy
Comparative scaling(constant sum) technique is used
100% response rate
Most of the farmers(66%) were going with push oriented strategy
Mode = 2
41
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
42/75
10.Do you think big retailers will provide farmers technical know-how ofproduction and distribution?
59%
18%
18%
5% 0%
strongly agree
somewhat agree
somewhat agree
somewhat disagree
strongly disagree
To take their view on help that retailers can provide them
100% response rate is achieved
Single item balanced scaling technique is used
Around 60% of the farmers were strongly agreed to the statement Mode = 1
42
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
43/75
LIMITATION OF THE STUDY
As per the area of research undertaken the collection of the date and theinformation is done with in the prescribed set of rules and direction & as per theobjectives of the research project, but still there are some aspects which were not
possible to be considered or followed in order to make this research flawless, andtherefore these aspects had turned into limitations of the study which are as
follows-
Limited time period to cover the entire concept and take feedback from larger
sample in order to get more accurate result.
Non-cooperation of the retailers & farmers in sharing information about their
procurement, processing and production process.
The data collected is not representing all the farmers operating outside the NCRRegion.
The research paper and the case study analyzed were not having sufficient
information about actual impact of organized retail on food industry although itis improving supply chain.
43
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
44/75
CONCLUSIONS AND RECOMMENDATION
CONCLUSIONS
The overall conclusions derived after conducting the research on MEASURINGIMPACTOF ORGANISED RETAIL ON FOOD PROCESSING INDUSTRYare-
Both Retailers and Farmers feels they are supplement to each other and can
achieve lots of good things if they tie-up hands with each other.
Both Retailers and Farmers said that current supply chain of food product needs
to be vastly improved especially in terms oftransportation & warehousing.
Organized Retail can definitely boost the food processing industry but it would
require lots of efforts from the side of Govt also.
Both Retailers and Farmers are going with push oriented strategy i.e. pushing
the product into the market
Both Retailer and Farmers wants direct dealing with each other with less no of
intermediaries to reduce price and wastages.
44
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
45/75
RECOMMENDATIONS
As per the major findings & conclusions derived through this researchrecommendation regarding strategies, planning & major aspects of supply chaincan be draws as-:
Retailers should extend their helping hand first to the Farmer because they are
the ones who provide the market to the Farmer and can guide the farmers toproduce right product at the right time.
Retailers should go for contract farming technique to provide Farmers with
continuous demand for their product and to avoid wastages & reduce price for
both retailer and consumer.
Govt should comes out with the helping hands for both farmers and retailers as
organized retail is still at the adolescent stage and it has lots of potential toimprove.
In term of strategy Retailers and Farmers should go for demand oriented
strategy to have maximum consumption of their produce.
45
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
46/75
Footwear Design & Development Institute
IMPACT OF ORGANIZED RETAIL ON FOOD PROCESSING INDUSTRY
QUESTIONNAIRE
NAME: AGE: SEX:
CONTACT NO: LOCATION:
1. Which according to you is the most critical factor affecting post harvesting process?
Cold storage Ware house Transportation Value addition
2. Current supply chain needs to be vastly improved.
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
3. Direct dealing between farmers and retailers will reduce price and wastages.
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
46
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
47/75
4. Do you like the efforts being made by govt.in improving food production anddistribution?
Dont like Somewhat like Very much like excellent
5. Do you think technology can be helpful in increasing agro output?
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
6. Do you having a sustainable or continuous demand for your product?
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
7. They should be a integrated cold storages and processing facility for farmers andprocessors.
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
8. Less no. of intermediaries will help both farmers and retailers.
47
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
48/75
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
9. Which strategy do you prefer while production?a) Food on demand (pull) b) Produce & sell (push)
10. Big retailers will provide farmers technical know-how of production and distribution.
Stronglyagree Somewhatagree Somewhatdisagree Stronglydisagree
48
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
49/75
Footwear Design & Development Institute
IMPACT OF ORGANIZED RETAIL ON FOOD PROCESSING INDUSTRY
QUESTIONNAIRE
NAME: AGE: SEX:
CONTACT NO: LOCATION:
11. From where are you procuring your inventories?
Farmers Vendors Agents Ware houses
12. Tie-ups between farmers and retailers will help in controlling black marketing andinflation.
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
13. By helping the farmers, retailers are ultimately helping themselves.
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
49
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
50/75
14. Decentralized buying is better than centralized buying.
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
15. In house processing facility will improve product line and productivity for retailers.
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
16. Which market do you think is having maximum opportunities?a) Rural b) Urban c) Semi urban
17. The factors where the maximum investment need to be done are :
Storage Transportation Processing Cold storage
18. Growing need of quality food will ultimately push food processing sector.
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
19. Which strategy do you think is best for retailers?a) Push oriented b) Pull oriented
50
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
51/75
20. Packaged food industry has a huge scope of improvement both in term of product andmarket.
Stronglyagree
Somewhatagree
Somewhatdisagree
Stronglydisagree
51
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
52/75
FREQUENCIES OF RETAILERS QUESTIONNAIRE
Retailers
ETAILERS
Frequency Percent
ValidPercent
CumulativePercent
Valid
BIG BAZAR 1 5.6 6.7 6.7
SUBHIKSHA 1 5.6 6.7 13.3
SALASAR 1 5.6 6.7 20.0
REL FRESH 1 5.6 6.7 26.7
6TEN 1 5.6 6.7 33.3
MORE 1 5.6 6.7 40.0
SPENCER'S 1 5.6 6.7 46.7
SABKA BAZAR 1 5.6 6.7 53.3
BIG APPLE 1 5.6 6.7 60.0
MOTHERDAIRY
1 5.6 6.7 66.7
SAFAL 1 5.6 6.7 73.3
VISHAL 1 5.6 6.7 80.0
DOLLARSTORE
1 5.6 6.7 86.7
GUPTA 1 5.6 6.7 93.3
MITTAL 1 5.6 6.7 100.0
Total15 83.3 100.0Missing System 3 16.7
Total 18 100.0
52
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
53/75
1. Do you think Tie-ups between farmers and retailers will help in controlling
black marketing and inflation?
Frequencies
N
Valid 15
Missing 0
Mean 1.2000Std. Error of Mean .10690
Mode 1.00
Std. Deviation .41404
Frequency Percent
ValidPercent
CumulativePercent
Valid
Strongly agree 12 80.0 80.0 80.0
somewhat agree 3 20.0 20.0 100.0
Total 15 100.0 100.0
53
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
54/75
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
55/75
Frequencies
Frequency Percent
ValidPercent
CumulativePercent
Valid
missing 1 6.7 6.7 6.7farmers 3 20.0 20.0 26.7
vendors 4 26.7 26.7 53.3
agents 1 6.7 6.7 60.0
4.00 6 40.0 40.0 100.0
Total 15 100.0 100.0
3. Do you think by helping the farmers retailers are ultimately helping themselves?
Statistics
Valid 15
Missing 0
Mean 1.2667
Std. Error of Mean .11819
Mode 1.00
Std. Deviation .45774
55
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
56/75
Frequencies
4. Do you think decentralized buying is better than centralized buying?
Statistics
N
Valid 15
Missing 0
Mean 2.6000
Std. Error of Mean .28950
Mode 2.00(a)
Std. Deviation 1.12122
Frequency Percent
ValidPercent
CumulativePercent
Valid
strongly agree 11 73.3 73.3 73.3
somewhat agree 4 26.7 26.7 100.0
Total 15 100.0 100.0
56
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
57/75
Frequency
Frequency Percent ValidPercent CumulativePercent
Valid
strongly agree 3 20.0 20.0 20.0
somewhat agree 4 26.7 26.7 46.7
somewhat disagree 4 26.7 26.7 73.3
strongly disagree 4 26.7 26.7 100.0
Total 15 100.0 100.0
5. Do you think in-house processing facility will improve product line and
productivity for retailers?
Statistics
N
Valid 15
Missing 0
Mean 1.4000Std. Error of Mean .19024
Mode 2.00
Std. Deviation .73679
57
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
58/75
Frequency
Frequency Percent ValidPercent CumulativePercent
Valid
Missing 2 13.3 13.3 13.3
strongly agree 5 33.3 33.3 46.7
somewhat agree 8 53.3 53.3 100.0
Total 15 100.0 100.0
6. Which market do you think is having maximum opportunities?
Statistics
N
Valid 15
Missing 0
Mean 2.1333
Std. Error of Mean .09085
Mode 2.00
Std. Deviation .35187
58
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
59/75
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
Urban 13 86.7 86.7 86.7semi urban 2 13.3 13.3 100.0
Total 15 100.0 100.0
7. In which sector do you think maximum investment needs to be done?
Statistics
N
Valid 15
Missing0
Mean 1.7333
Std. Error of Mean .20625Mode 2.00
Std. Deviation .79881
Frequency
59
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
60/75
Frequency Percent
ValidPercent
CumulativePercent
Valid
storage 6 40.0 40.0 40.0
transportation 8 53.3 53.3 93.3
cold storage 1 6.7 6.7 100.0Total 15 100.0 100.0
8. Do you think growing needs of quality food will ultimately push foodprocessing sector?
Statistics
N
Valid 15
Missing 0
Mean 1.4000
Std. Error of Mean .13093
Mode 1.00Std. Deviation .50709
60
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
61/75
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
strongly agree 9 60.0 60.0 60.0somewhat agree 6 40.0 40.0 100.0
Total 15 100.0 100.0
9. Which strategy do you think is best for retailers?
Statistics
N
Valid 15
Missing 0
Mean 1.1333
Std. Error of Mean .09085
Mode 1.00
Std. Deviation .35187
61
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
62/75
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
push 13 86.7 86.7 86.7pull 2 13.3 13.3 100.0
Total 15 100.0 100.0
10. Dont you think packaged food industry has a huge scope of improvement bothin term of product and market?
Statistics
N
Valid 15
Missing 0
Mean 1.4667
Std. Error of Mean .13333
Mode 1.00
Std. Deviation .51640
62
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
63/75
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
strongly agree 8 53.3 53.3 53.3
somewhat agree 7 46.7 46.7 100.0
Total 15 100.0 100.0
FREQUENCIES OF FARMERS QUESTIONNAIRE
Frequency of Farmers
Frequency Percent Valid PercentCumulativePercent
Valid
farmer1 1 5.6 5.6 5.6
farmer2 1 5.6 5.6 11.1
farmer3 1 5.6 5.6 16.7farmer4 1 5.6 5.6 22.2
farmer5 1 5.6 5.6 27.8
farmer6 1 5.6 5.6 33.3
farmer7 1 5.6 5.6 38.9
farmer8 1 5.6 5.6 44.4
farmer9 1 5.6 5.6 50.0
farmer10 1 5.6 5.6 55.6
farmer11 1 5.6 5.6 61.1
farmer12 1 5.6 5.6 66.7
farmer13 1 5.6 5.6 72.2
farmer14 1 5.6 5.6 77.8
farmer15 1 5.6 5.6 83.3
farmer16 1 5.6 5.6 88.9
farmer17 1 5.6 5.6 94.4
farmer18 1 5.6 5.6 100.0
Total 18 100.0 100.0
63
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
64/75
1. Which according to you is the most critical factor affecting post harvestingprocess?
Statistics
N
Valid 18
Missing 0
Mean 2.4444
Std. Error of Mean .23182
64
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
65/75
Mode 3.00
Std. Deviation .98352
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
cold storage 4 22.2 22.2 22.2
warehouse 4 22.2 22.2 44.4
transportation 8 44.4 44.4 88.9
valueaddition
2 11.1 11.1 100.0
Total18 100.0 100.0
2 Do you think current supply chain needs to be vastly improved?
Statistics
current supply chain needs to be vastly improved
N
Valid 18
Missing 0
Mean 1.3333
Std. Error of Mean .11433
Mode 1.00
Std. Deviation .48507
65
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
66/75
Frequency
Frequency Percent Valid PercentCumulativePercent
Valid
strongly agree 12 66.7 66.7 66.7
somewhat agree 6 33.3 33.3 100.0
Total 18 100.0 100.0
3 Dont you think direct dealing between farmers and retailers will reduce price andwastages?
Statistics
N
Valid 18
Missing0Mean 1.6111
Std. Error of Mean .18327
Mode 1.00
Std. Deviation .77754
66
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
67/75
Frequency
Frequency Percent ValidPercent CumulativePercent
Valid
strongly agree 10 55.6 55.6 55.6
somewhat agree 5 27.8 27.8 83.3
somewhat disagree 3 16.7 16.7 100.0
Total 18 100.0 100.0
4 Do you like the efforts being made by govt in improving food production anddistribution?
Statistics
N
Valid 18
Missing 0
Mean 1.7222
Std. Error of Mean .27778
Mode 1.00
Std. Deviation 1.17851
67
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
68/75
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
missing 1 5.6 5.6 5.6
don't like 9 50.0 50.0 55.6
somewhat like 5 27.8 27.8 83.3
excellent 3 16.7 16.7 100.0
Total 18 100.0 100.0
5. Do you think technology can be helpful in increasing agro output?
Statistics
N
Valid 18Missing
0
Mean 1.2778
Std. Error of Mean .10863
Mode 1.00
Std. Deviation .46089
68
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
69/75
Frequency
Frequenc
y Percent
Valid
Percent
Cumulative
PercentValid
strongly agree 13 72.2 72.2 72.2
somewhat agree 5 27.8 27.8 100.0
Total 18 100.0 100.0
6 Do you have a sustainable or continuous demand for your product?
Statistics
N
Valid 18
Missing 0
Mean 2.1111
Std. Error of Mean .21219
Mode 2.00
Std. Deviation .90025
69
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
70/75
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
missing 1 5.6 5.6 5.6
yes 2 11.1 11.1 16.7
NO 10 55.6 55.6 72.2
Somewhat 4 22.2 22.2 94.4
4.00 1 5.6 5.6 100.0
Total 18 100.0 100.0
7. Dont you think there should be integrated cold storage and processing facilityfor farmers and retailers?
Statistics
N
Valid 18
Missing 0
Mean 1.1111
Std. Error of Mean .11111
Mode 1.00
Std. Deviation .47140
70
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
71/75
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
Missing 1 5.6 5.6 5.6
strongly agree 14 77.8 77.8 83.3
Somewhatagree
3 16.7 16.7 100.0
Total 18 100.0 100.0
8. Do you think less number of intermediaries will help both farmers and retailers?
Statistics
N
Valid 18
Missing 0
Mean 1.1667
Std. Error of Mean .09039
71
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
72/75
Mode 1.00
Std. Deviation .38348
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
strongly agree 15 83.3 83.3 83.3
somewhat agree 3 16.7 16.7 100.0
Total 18 100.0 100.0
9. Which strategy do you prefer while production?
Statistics
N
Valid 18
Missing 0
Mean 1.6111
Std. Error of Mean .14323
Mode 2.00
Std. Deviation .60768
72
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
73/75
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
Missing 1 5.6 5.6 5.6
PULL(food ondemand)
5 27.8 27.8 33.3
PUSH(produce & sell) 12 66.7 66.7 100.0
Total 18 100.0 100.0
10. Dont you think big retailers will provide technical know-how of productionand distribution to farmers?
Statistics
N
Valid 18
Missing 0
Mean 1.3889
Std. Error of Mean .18327
Mode 1.00
73
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
74/75
Std. Deviation .77754
Frequency
Frequency Percent
ValidPercent
CumulativePercent
Valid
strongly agree 13 72.2 72.2 72.2
somewhat agree 4 22.2 22.2 94.4
stronglydisagree
1 5.6 5.6 100.0
Total 18 100.0 100.0
BIBLIOGRAPHY & REFERENCES
Report of the APO multi country study mission on rural based food processinindustry heldIn Tokyo, Japan
Asian Productivity Organization 2004
Web site of Ministry OF Food Processing Govt of India.
74
-
8/14/2019 Research Report by VIJAY KUMAR FDDI,NOIDA,INDIA
75/75
News paper- Economic Times, HT
Magazines- Retail images.
Book Marketing research by Naresh Malhotra, Levys-Weitz.
Research papers on Challenges of Retail & Food Retailing