Effect of Market Development Activity on Sales of Fast-Mix Weedicide in Hoshiarpur Region

Project Report

Submitted To The

G.B. Pant University of Agriculture & Technology

Pantnagar (U. S. Nagar) Uttrakhand, India

BySudhanshu Ranjan

ID- 42680

IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF

Master of Business Administration (Agribusiness)July, 2013

ACKNOWLEDGEMENT

Where I am standing now is for those hands which were stretched towards me when I took

my first step. Diction is inadequate to express my feeling for the love affection, care and

blessings of my father and mother. The principle and the ideology I have learned from them is

behind every single success of mine.

I express my sincere gratitude to "Almighty" who helped me in this great endeavour by

making so many great minds to guide me and so many loving hearts to enlighten my path.

I really feel honored and blessed to be a student of this college i.e. College of

Agribusiness Management, Pantnagar. It has provided me a platform to nurture all the skills

and techniques required for doing this project effectively and efficiently.

I consider myself fortunate and greatly privileged to have work under the supervision and

guidance of Mr. N K Singh, Assistant Professor, CABM and chairman of my Advisory

Committee. Words are inadequate to express my sincere and deepest feeling of gratitude for his

benevolent guidance, meticulous supervision, whole hearted encouragement and critical

appreciation in execution of my work.

It is great pleasure to place my deep sense of gratitude to Dr. Devendra Kumar Professor

& Dean College of Agribusiness Management, Pantnagar.

I express my deep sense of gratitude to members of my Advisory Committee Mr. Saurabh

Singh and Dr. Mukesh Pandey of College of Agribusiness Management, Pantnagar.I also

expresses my sincere gratitude to Dr. M. L. Sharma and Dr. Ashutosh Singh and other college

staff of CABM.

I express my veneration to Sinochem India Co Pvt Ltd and the employees of company

who help me on this project.

Some friends are there who never wait for thanks but just add meaning to life and the

names like Kamlakar, Ram, Binayak and Yogita belongs to this category.

Pantnagar Sudhanshu RanjanAugust, 2013 Author

CERTIFICATE

We, the undersigned members of the Advisory Committee of Mr. Sudhanshu Ranjan, ID-

42680, a candidate for the degree of Master of Business Administration (Agribusiness), agree

that the Project Report entitled “Effect of Market Development Activity on sales of Fast-Mix

Weedicide in Hoshiarpur Region” may be submitted in partial fulfillment of the requirement

for the degree.

( Nirdesh Kumar Singh)

Chairman

(Project Advisory Committee)

( Saurabh Singh) ( Mukesh Pandey) Member Member

EXECUTIVE SUMMARY

The present study revealed that 30 percent of farmers are having small land holding, 28 percent

belongs to semi-medium land holding category, 30 percent belongs to medium size land holding

category and 12 percent of large farmer’s category. It was found that every farmer was literate

and 70 percent of farmers have at least High school degree. The result shows that the 45 percent

of farmers are having annual income of Rs.2,00,000 to Rs. 5,00,000 followed by 23 percent

farmers having annual income of Rs. 5,00,000 and above. Hoshiarpur region is famous for its

intensive Poplar plantation and Citrus orchards. Majority of farmer have adopted cropping

pattern of maize- Potato- Sugarcane, Maize-pea Sugarcane and Paddy-Wheat - Sugarcane. There

are two types of weed control methods practiced in the region like Mechanical and Chemical.

The study shows that 72 percent farmers trusts on chemical weed control measures. Lasso is also

a Brand of Sinochem Company and because of that 38 percent people knows about the company

and 62 percent does not. According to the research during the last kharif season Machete was the

leading weedicide contributing 32 percent of share followed by Butaveer 14 percent and 12

percent of Topstar. Rifit is a brand of Pretilachlor and it is contributing 10 percent of market

share. It is true that the promotional tools used by the companies are having significant effect on

sales, but according to the study, farmers have complete faith on the dealers. Dealers have

influenced 54 percent of farmers to buy a particular brand. The reason for choosing a particular

brand is highly depended upon quality by 44 percent and price by 26 percent.

All farmers allowed this demonstration and they showed good response to the test. Most of the

farmers were excited and very excited but 22 percent showed average response for the Beaker

test. After showing demonstration the farmers also said they will use Fast-Mix in present season.

A brand position map was designed to see the position of different brand in the market. The Map

shows that Machete, Topstar and Rifit are the leading brand in the market. According to the

dealers Topstar is the best brand Followed by machete and Rifit. When we talk about the effect

of market development activity on sales that can only measured by the actual sales of the product

and the product showed a growth of 23.63 percent in the season .

1. INTRODUCTION

Weedicides are not a new name in the pesticide industries; they are being used since decades. In

paddy crop weeds are a major problem and that’s why farmers are now using high doses of

chemical in their field. That’s why study of “Effect of Market Development Activity on Sales of

Fast-Mix Weedicide in Hoshiarpur Region” was done to know about the present market situation

of weedicide market and to observe the effect of promotional activity on sales.

1.1 Hoshiarpur Introduction

Hoshiarpur is a city and a municipal council in Hoshiarpur district in the Indian state of Punjab.

The district of Hoshiarpur has a mild climate due to the abundance of hilly terrain and the

sizeable forest cover. Temperatures drop as low as -5°C in the winter. The pattern of seasons in

the district is similar to that of other districts in Punjab, except slight variations at the terminals.

The year is divided into three main seasons. The summer season begins in April, and lasts until

the end of July. The rainy season starts in the beginning of July and lasts until the end of

September. The winter season starts when rains are over in October, and lasts until the end of

March. May and June are the hottest months of the year in Hoshiarpur (during which time the

temperature can rise over 45 °C). The local climate here is suitable for citrus fruit cultivation,

and a large area is dedicated to this crop. Hoshiarpur has always been known for the distinctive

variety of mangoes. The total avg. rain falls in district is 1125 mm .Broadly speaking 75 percent

of the rainfall is experienced in the period July to September, whereas 15 Percent rainfall is

experienced in the winter months of January and February are under the influence of western

disturbances in the Persian Gulf.

Topographically, the District can be divided into three broad regions mainly on basis of soil

crop-climate complex.

1.1.1 Flood-plains; Paddy-Maize-Wheat

This is most fertile area of this district formed by Beas in North-West. More than 580 Sq. Km

area is under cultivation in these plains. It covers about 17.00 percent of the geographical area of

the District. It has wide-spread irrigation facilities. Paddy-Wheat followed by maize-wheat is the

main rotations of this region.

1.1.2 Kandi Belt; Maize-Wheat

The Kandi area is located at the foot of Shivaliks and covers the submountaneous undulating

plain with a slope of more than 16 meters per kilometer which progressively decreases towards

west side of the district. There is acute shortage of water and this area faces high incidence of

soil erosion which is caused by the rivulets (choes) passing through this region and are flooded

during the rainy season. Soil of this region is poor and it constitutes 53% of total geographical

area of this district. In Kandi area about 50% area is sown under rain fed conditions. Rainfall at

the sowing time is a major factor influencing rise of fall in the sown area of this belt and this is

the major cause of wide fluctuations in area and production of crops in the district. This region

broadly covers Talwara, Bhunga and Hoshiarpur. Maize in Kharif and wheat in Paddy are the

major crops of this region.

1.1.3 Bet Area: Maize-Wheat, Paddy-Wheat, Sugarcane

Located on the beds of lower Shivalik, these are undulating plains with relatively low slope

decreasing up to 4 meters per kilometers covers 30% area of the district. This is suitable for

maize, sugarcane and paddy crops.

1.2 Market Development Activity

Promotion tools have been considered as one of the most useful tools to influence sales volume

in a short-term period of time. Promotions are considered as sales acceleration and maximizing

tools. The impacts of price and promotions on which brand customer will choose, when they are

willing to buy the product, and how much they are going to buy are significant. Three main

advantages of sales promotion are triggering unplanned purchase, encouraging customers to

purchase non promoted merchandises, accelerating the number of shopping trips to the store.

Sales promotions are action-focused marketing events whose purpose is to have a direct impact

on the behavior of the firm‘s customers. Clearly, promotion has been considered one of the

stimuli of brand-switching and repeat purchase. In agrochemicals industries the major

promotional tools are printed literatures, farmers meetings, field demonstrations, free sampling,

and TV advertisements, in store displays, hoardings and posters.

1.2.1 Field Demonstrations

Field demo is one of the most effective ways that creates a long term impact. In field demo the

field officer shows a demonstration of the product while comparing it with the competitors’

product thereby differentiating its product with others and showing the effect of the product on

the crop and field. With this method the farmer clearly understands the concept behind working

of the product and its effect.

1.2.2 Farmers Meeting

Company Personnel local village level dealers and put the proposal to conduct farmer meeting in

village. With the co-operation of farmers and dealer farmers meeting is conducted in the centre

of village. Try to get maximum attention of farmers in meeting and build up strong reputation for

company and product. Farmer meeting is a way to increase awareness about company and

product among farmers. Invite farmer selected for field demonstration and give time to share

their experience of using such product.

1.2.3 Printed Literatures

Distribution of various literatures, which provides information about products range, product

photos, pests and diseases that, can be controlled etc.

1.2.4 Van Campaigns

Van campaigns consists of the product model that along with audio and poster displays conduct a

strong campaigns that helps to promote the product on a wider basis. With the audio it is possible

to convey the information regarding the product to many farmers in limited time in any given

area. It is considered to be a very effective marketing tool as it attracts the farmers and grab their

attention and tries to positions the product image and name very effectively in farmers mind and

that too for long time.

1.2.5 In store Displays

In store displays include posters, hoardings and flex displaying inside the stores that provide the

necessary information regarding the product along with any schemes or offers on that product.

The posters and hoardings are designed in such a way to make the data clearly visible and

understandable so that it attracts the farmers.

1.2.6 Newspaper and TVs

Newspaper and TVs are considered to be an effective and impact creating media as they are the

best source to convey the messages to the target customers.

1.3 Work already done

Sivakumar et al. (1994) analyzed buying behavior of farmers with respect to pesticides,

considering the factor influencing loyalty of farmer towards dealer and brand. Friends, neighbors

and relatives were the major source of information about dealers. In case of brands, it was

extension personnel of the department of agriculture. The price, quality and promotional

strategies of the brand contributed significantly to brand loyalty. Credit availability,

advertisement and price of products available with dealer contributed significantly to dealer

loyalty.

Krishna (1994) studied the effect of deal on knowledge of consumer purchase behavior. The

author built a purchase quantity model to study the behavior of consumer who has knowledge of

future price deals with that of those who do not. The result showed that the better and more

accurate the information a consumer has the more consumer’s behavior will differ from the one

who has no awareness of future deals.

Beverland (2001) studied the level of brand awareness within the New Zealand market for

ZESPRI kiwi fruit. The effectiveness of this branding strategy employed by kiwi fruit, New

Zealand was studied. It is indicated that brand awareness could be increased through a

relationship building programme involving targeted marketing and supply chain management

Belch et al (2010) studied that sales promotion is an important tool in the marketer’s

communication armory. This includes marketing efforts designed to generate immediate interest

in purchasing a product or service. Sales promotions are direct inducements that offer an extra

value or incentive for the product to the sales force, distributors, or the ultimate customer with

the primary objective of creating an immediate sale.

.

1.4 PROBLEM STATEMENT

Beaker test is a procedure to show the property of the chemical to mix with the water. In which

we takes the sample of chemical, a beaker filled with water and dropper. In this we carefully

drop the chemical in the water. The ability of chemical to mix/dissolve with water is very

important. In agrochemical industry there are so many formulations like Emulsified Content

(EC), Wettable Powder (WP), Active Ingredient (AI), and water based (E/W). The main

objective of the test is to show the farmers the easy mixing nature of chemical with water. Most

of the chemical in market is Emulsified Content (EC) based means that contains petroleum

solvent which is sticky in nature. But it gets drain out when water overflows in field because it is

lighter then water so they do not work properly because they need stagnate water for long time

and Rice is a rainy season crop so the chances of maintaining a proper level of water is low. In

that case the water based molecule like Butachlor E/W is very beneficial. It easily gets dissolved

in water and can work in low water and also in high water logged condition. The awareness

about the Fast-Mix is very low so that company wants to increase the market share by showing

Beaker test to farmers.

1.5 OBJECTIVE

The objectives of study are:-

1. To study weedicide usages pattern in Hoshiarpur region.

2. To study factors influencing farmer’s buying behavior towards weedicide.

3. To analyze the influence of beaker test on sales and Brand Positioning.

2. INDUSTRY DESCRIPTION

The agrochemicals industry is a significant industry for the Indian economy. India has to ensure

food security for 1.21 billion populations while facing reduction in cultivable land resource.

With increasing population, demand for food grains is increasing at a faster pace as compared to

its production. This necessitates the use of pesticides. Moreover, every year, significant amount

of crop yield is lost due to non usage of crop protection products. So the industry is bound to

experience healthy growth rate in the years to come. A major boost to the agrochemical industry

came with the success of the green revolution in the late sixties. India is the fourth largest

producer of agrochemicals globally, after United States, Japan and China. The agrochemicals

industry is a significant industry for the Indian economy. According to the report of Indian

Pesticide Industry 2011 The Indian agrochemicals market grew at a rate of 11% from USD 1.22

billion in FY08 to an estimated USD 1.36 billion in FY09. India’s agrochemicals consumption is

one of the lowest in the world with per hectare consumption of just 0.58 Kg compared to USA

(4.5 Kg/ha) and Japan (11 Kg/ha). In India, paddy accounts for the maximum share of pesticide

consumption, around 28%, followed by cotton (20%). According to the report of Federation of

Indian Chambers of Commerce and Industry (FICCI) Indian population is increasing and the per

capita size of land decreasing, the use of pesticides in India has to improve further. Besides

increasing in domestic consumption, the exports by the Indian Agrochemicals Industry can be

doubled in the next four years if proper strategies and sophisticated technologies are adopted by

the industry. In India, there are about 125 technical grade manufacturers (10 multinationals), 800

formulators, over 145,000 distributors. 60 technical grade pesticides are being manufactured

indigenously. Technical grade manufacturers sell high purity chemicals in bulk (generally in

drums of 200-250 Kg) to formulators. Formulators, in turn, prepare formulations by adding inert

carriers, solvents, surface active agents, deodorants etc. These formulations are packed for retail

sale and bought by the farmers. The Indian agrochemicals market is characterized by low

capacity utilization. The total installed capacity in FY09 was 146,000 tons and total production

was 85,000 tons leading to a low capacity utilization of 58% (Source FICCI). The industry

suffers from high inventory (owing to seasonal & irregular demand on account of monsoons) and

long credit periods to farmers, thus making operations ‘working capital’ intensive. India due to

its inherent strength of low-cost manufacturing and qualified low-cost manpower is a net

exporter of pesticides to countries such as USA and some European & African countries. Exports

formed ~50% of total industry turnover in FY08 and have achieved a Compounded Annual

Growth Rate (CAGR) of 29% from FY04 to FY08.

Globally, herbicides represent the largest group within agrochemicals. In India this is still not the

case. Chemical weed control is slowly becoming one of the more important and reliable

measures in weed management systems in India. In India, paddy accounts for the maximum

share of pesticide consumption, around 28%, followed by cotton (20%). Indian population is

increasing and the per capita size of land decreasing, the use of herbicides in India has to

improve further. India produces 90,000 metric tons of pesticides a year. With over 400 million

acres under cultivation and over 60% of the country‘s population dependent on agriculture, the

country‘s economy depends on the agricultural sector to a substantial extent. India loses nearly

30% of its potential crop to insects, weeds and rodent attacks. The Pesticides industry plays a

crucial role in protecting crops from damage by weeds, pests, insects and fungus, both before and

after harvest. This helps to increase crop yields, which is important given the rate at which

cultivable land is shrinking. According to the Rajesh Aggarwal, MD of Insecticides India

"Farmers are getting higher minimum support prices (MSP) of crops than in the past, and they

know how much they will lose if they don't prevent crops from pest or insect attacks. Also, as

farm practices are improving, the use of pesticide will get a boost. During the last five-year Plan,

through 2011-12, the government raised MSPs of various crops in the range of 29% to 107%.

Moreover, India's per capita pesticide consumption of 600 gm is far below its major Asian peers

—14 kg in China and 12 kg in Japan. The domestic market has immense growth potential

because of the low level of consumption. With increasing focus on scaling up of productivity and

preventing crop losses to feed a billion-plus population with limited land resources, the reliance

on pesticide is only going to rise, industry executives said. According to an industry study, every

one rupee spent on pesticide for the groundnut crop saves crop losses worth Rs 6. Similarly, the

spending and benefit ratio in mustard is 1:12, while in paddy it is 1:7. Some industry executives

said pesticide manufacturers are facing hard times as the data registration process for a molecule

is cumbersome and takes a lot of time due to red tape. According to experts, currently, crops lost

due to non-use of pesticides are estimated to be around USD 17 billion every year. With

increasing focus on scaling up of productivity and preventing crop losses to feed a billion plus

population with limited land resources, the reliance of pesticides is only going to rise. India's

agrochemicals consumption is one of the lowest in the world with per ha consumption of just

0.58 Kg compared to US (4.5 Kg/ha) and Japan (11 Kg/ha). The key reasons for low usage are

low purchasing power of farmers, lack of awareness about crop protection benefits and poor

reach and accessibility of crop protection chemicals. The domestic market is expected to grow at

8% annually till FY15. Exports are set to grow at a CAGR of 15% during the same period.

Table 1: Production and Percentage of different types of Pesticides in World (Source USDA)Types of Pesticides World Market (in Million$) World Market (in %)

1. Herbicide 14,118 44

2. Insecticide 8,763 28

3. Fungicide 6,027 19

4. Other 2,848 9

Total 31,756 100

In yield exploitation and stability in state agricultural production, the use of herbicides and

insecticides has played a crucial role. The pest problem accentuated with the introduction of high

yielding varieties of crops, intensive use of inputs and development of new cropping patterns.

Crops like cotton, sugarcane, paddy, oilseeds and vegetables have shown greater reliance on

pesticides. Problem of weeds also increased with increase in cropping intensity and fertilizer use

particularly in irrigated areas like Punjab. Punjab farmers had used herbicides effectively in weed

management of field crops particularly in crops like wheat, paddy, potato, etc. This resulted into

tremendous increase in demand of herbicides over time.

Table-2 Consumption of Pesticides in recent years (Source FICCI)

Year Consumption in Technical Grade (M.T)

2007-08 5900

2008-09 5760

209-10 5745

2010-11 5600

2011-12 6100

2.1 Classification of Different Classes of Pesticide in the Market

Insecticides: Insecticides are used to ward off or kill insects. Consumption of insecticides for

cotton has come down to 50% from 63% of total volume after introduction of BT cotton.

Fungicides: Fungicides are used to control disease attacks on crops. The growing horticulture

market in India owing to the government support has given a boost to fungicide usage. The

market share of fungicides has increased from 16% in 2004 to 20% in 2009.

Herbicides: Herbicides are the fastest growing segment of agrochemicals. Their main

competition is cheap labor which is employed to manually pull out weeds. Sales are seasonal,

owing to the fact that weeds flourish in damp, warm weather and die in cold spells.

Bio-pesticides: Bio-pesticides are pesticides derived from natural substances like animals,

plants, bacteria, certain minerals PGR, Nematocides, Rodenticides, Fumigants.

Pre-Emergent Herbicides prevent the germination of seeds by inhibiting a key enzyme. Pre-

emergence herbicides are applied to in the crop fields to prevent the germination of weed seeds.

They will not affect any established plant. Herbicides should always be applied when the

temperature is low (morning or evening).

Post-Emergence Herbicides are typically categorized as being either selective or nonselective;

these only destroy specific plants while leaving grass intact. Other options are contact herbicides,

these products will only destroy the cells in the plant that it comes into direct contact with

The industry manufactures two main types of products:

2.2 Company Profile

Sinochem is a Chinese conglomerate primarily engaged in the production and trading of

chemicals, exploration and production of oil, and operation of the state fertilizer monopoly.

Sinochem deals primarily in petrochemicals distribution, but also in rubber, plastics, and

agrochemicals. It operates through more than 100 subsidiaries in China and abroad in concerns

ranging from petroleum trading to real estate. Sinochem International became the exclusive

owner of commercial rights and trade marks in mainland China of 4 famous-brand amide

products of U.S. Monsanto (Machete, Harness, Lasso and New Machete); according to the

agreement, Sinochem International can purchase the amide products from Monsanto at the

agreed cost prices in the coming 5 years, which opens a new chapter of the strategic

transformation of the agrochemical business of Sinochem International and the company

gradually embarks on the road of brand operation. With the success in pesticide brand operation,

the agrochemical team of Sinochem International participates further in the integration of

domestic pesticide industry chain. At the end of February 2008, it acquired amide products

business of Monsanto in India, Thailand, Philippines, Vietnam, Bangladesh and Taiwan and

secured 31%, 55% and 45% of rice herbicide market share in Philippines, India and Thailand,

respectively. Thus the company’s overseas sales channels are further expanded and the

marketing of brand products stretches to other Asian countries; this demonstrates that the

agrochemical business of Sinochem International formally steps on the journey of international

operation and lays the foundation for Sinochem International to be a global leading professional

and multinational supplier integrated with brand building, production, marketing and

technological innovation in agrochemical field. As an important strategic measure to promote the

agrochemical business of Sinochem International, Sinochem India Company Private Ltd was

registered in February 2008 with 360 million rupee of registered capital and has officially put

into operation since September 2008. In 2013 Sinochem International entered in a deal for

exclusive distribution rights of RoundUp in world worth of $100 million. Sinochem India is

currently selling majority of Butachlor in India. They have Butachlor brands like Machete and

Fast-Mix. Sinochem also have patented rights to sell Lasso. They have other products like

Reload, Swift, Sinozeb, Duranto, Digital, Afnor, Sinocin and Sinotid.

3.1 Research Design

Research design was descriptive type.

3.2 Data Source

Secondary Data: Secondary Data was collected from Agriculture Department Reports, Business

Magazines, Journals and Portals

Primary Data: Primary Data has been obtained from paddy growing farmers and retailers.

3.3 The Study Area

The Hoshiarpur region was selected for the study. The district has significant paddy cropping

area that is well enough to conduct our research.

Exihibit-1 Hoshiarpur Map

3. METHODOLOGY

esearch design was descriptive type.

: Secondary Data was collected from Agriculture Department Reports, Business

: Primary Data has been obtained from paddy growing farmers and retailers.

selected for the study. The district has significant paddy cropping

area that is well enough to conduct our research.

: Secondary Data was collected from Agriculture Department Reports, Business

: Primary Data has been obtained from paddy growing farmers and retailers.

selected for the study. The district has significant paddy cropping

3.4 Sampling Plan

Demonstration was conducted on the individual farmer engaged in paddy cultivation and those

who are not using Fast-Mix in the study area.

3.5 Sampling Unit

For the proposed study sampling unit was Paddy growing farmers who are not using Fast-Mix.

3.6 Sampling Size

The study conducted personal interview & experiment with total 50 farmers and 10 Dealers.

3.7Sampling Technique For the study convenient sampling was adopted. Convenient sampling

is a non-probability sampling technique where subjects are selected because of their convenient

accessibility and proximity to the researcher.

3.8 Research Instrument -Questionnaire consists of open and close-ended questions

3.9 Analytical Tool

For analysis of data percentage, average, tabulation, graphical representation and Lickert scale

was used.

3.10 Duration of Study

The period of study was from May to July, 2013.

4. RESULTS

This chapter deals with the presentation and discussion of the result obtained from the answers of

respondents. The study was conducted to know the level of awareness of Fast-Mix based on

demographic segmentation, to determine factors influencing farmers buying decision for

herbicide, and to analyze the Impact of “Beaker test” demonstration on sales during campaign

period of Fast-Mix. The Results are discussed according to the objectives of the study.

4.1 Demographics of Farmers in Hoshiarpur Region

This topic deals with the land holding pattern, educational level and Income level of Farmers

engaged in paddy cultivation.

4.1.1 Land Holding Pattern

Exhibit No. 2 shows that 12 percent of the sample farmers were Large (>10 ha), 30 percent were Small, 30 percent were Medium and 28 percent were Semi-Marginal farmers. So from present study it can conclude that majority of farmers of Hoshiarpur district are having land holding more than 1 hectare.

Exhibit No. 2 Land Holding Pattern

30%

28%

30%

12%

Marginal

Small

Semi

Medium

Large

4.1.2 Education Level

The Educational Level of farmers is very important aspect just because only a well aware farmer

will access the all information and he can apply the latest technology in the field. A good quality

of farmer’s practices will be successful only when there is a sound knowledge of minor things.

Exhibit 3: Education Level of Farmers of Hoshiarpur district.

The Result in the Exhibit 3 shows that 70 percent of the sampled farmers are having education

up to SSC/HSC while 24 percent farmers were graduate and 6 percent of the have done post

graduation. No one was illiterate farmer.

4.1.3 Income Level of Farmers

The survey shows that 45 percent of the sampled farmers fall in the income group of Rs. 2,

00,000 to Rs 5, 00, 000 per annum and 32 percent falls under income group of Rs. 5, 00,000 and

above and about 23 percent of farmers falls under category of income group of Rs. 50,000 to Rs.

2, 00,000.

70%

24%

6%

SSC/HSC

Graduate

Post Graduate

Exhibit 4- Income level of Farmers

4.2 Weedicide usages Pattern In Hoshiarpur region.

This topic deals with cropping pattern, weed control measures and weedicide usages pattern in hoshiarpur region.

4.2.1 Cropping Pattern of the Hoshiarpur Region

Hoshiarpur region is famous for its intensive Poplar Plantation and also for the Potato seed

production. A majority of farmers has adopted following cropping patterns in the region.

1. Maize-Potato-Sugarcane

2. Maize – Pea – Sugarcane

3. Paddy – Wheat- Sugarcane

4. Maize/Paddy - Wheat

4.2.2 Method of Weed Control

Weed control in the paddy fields is the most important crop practice for farmers. However there

are cultural, biological, mechanical and chemical weed control methods.

23%

45%

32%

0 to 50000

50000 to 200000

200000 to 500000

500000 to Above

Table 3: Method of Weed control

Method of Control No. of Respondents

Mechanical Control 7

Chemical Control 36

Mechanical/Chemical 7

Exihibit-5 Weed control measure’s share

On the basis of survey it was revealed that maximum 72 percent of farmers trust on chemical

weed control measures where as 14 percent practice only mechanical measure of weed control.

Mechanical weed control is practiced by paddy weeder. Some farmers also practices both type of

weed control measures contributing around 14 percent share.

4.2.3 Awareness of farmers about Sinochem India Company

Lasso is a very famous brand from company and that is very popular in Maize and Sugarcane

crop. About 38 percent of the farmers know about the Sinochem India Company and about 62

percent of Farmers does not know about company’s name.

72%

14%

14%

Chemical

Chemical/Manual

Mechanical

4.2.4 Weedicide Used Last Year

Machete, Rifit and Topstar are the major brand available in the market. According to the

research majority of the weedicide used last year was Machete, Butaveer, Rifit & Topstar.

Machete and Butaveer is Butachlor 50 EC,Rifit is Pretilachlor & Topstar is Oxadiagryl. But there

is a significant market share of non branded products like Fatafatmix Ready-mix and pritigan.

According to the research Machete is having maximum market share of 32 percent followed by

Butaveer 14 percent followed by Topstar 12 percent.

Exhibit 6- Weedicide Market Share of year 2012

4.3. Factors Influencing Farmer’s Buying Decision for Weedicide.

This topic deals with different factors influencing farmers buying behavior and reason for

choosing particular brand.

4.3.1 Factors Influencing Farmer Buying Decision

Buying of herbicide primarily depends on the distributor’s good faith and product giving good

margins to the dealers/distributors. Sale is largely governed by the credit driven market .Farmers

generally go for products that are recommended by commission agents at mandi. Company

staff’s relations with the dealers as well as with the farmers are equally important for increasing

sale of herbicides. Generally farmers ask for a particular brand like Machete or Rifit, but it is

14%

6%

32%

6%

8%

6%

10%

6%

12%Butaveer

Fatafatmix

Machete

Milchlor

Pritigan

Readymix

Rift

TKS Pritila

Topstar

solely on dealers discretion that what type of product he gives to farmer as normally purchase by

farmers are made on credit.

Results of field demonstrations do influence the sale of herbicide, still majority of the farmers

before using any new product ask for guarantee by the company or dealer. As shown in the

exhibit dealer/distributor influence (54%) is the main factor responsible for the sale of herbicide

followed by field demonstrations (18%) and opinion leaders or Peer group (26%) and while rest

use recommendation of Agriculture department.

Exhibit 7- Factors of Buying

4.3.2 Reasons for Choosing Particular Brand

Farmers always search for ways to widen the narrow margin of profit between production costs

and crop returns .Weeds causes more losses in rice fields than any other pest, therefore farmers

purchase that kind of product which is cost effective and also give good timely results. The result

show that 44 percent of farmers are influences by the quality of product followed by price (26%)

followed by packing 16% and 12 % by availability and few of them by the expiry date of

product.

54%

26%

18%

2%

0%

10%

20%

30%

40%

50%

60%

Dealer/Distributer Recommendation

Peer Group Pramotional Activity Agri Dept Recommendation

Exhibit 8 – Reason for Choosing Particular Brand

4.4. Analysis of the influence of Beaker Test on sales and Brand Positioning.

This topic deals with the effect on Beaker Test on sales and brand positioning map of Hoshiarpur

market.

4.4.1 Attention Level of Farmers for Beaker Test

The measure of attention level of farmers is based on the number of questions asked by the

farmers. The chart says that the more the farmer is interested, more number of question will be

asked by him.

Exihibit-9 Attention Level

26%

44%

16%

12%2%

Price

Quality of Product

Packing

Availability

Expiry Date

0

2

4

6

8

10

12

14

16

One Two Three Four Five Six

Farmer's Responce

No of Farmers

4.4.2 Response of the Farmers towards the Beaker Test

Exihibit-10- Response of Farmers

The response was taken on four point scale on which particulars like indifferent, average,

excited. Study shows 46 percent farmers showed average interest and 50 percent farmers showed

excited response.

4.4.3 Intention to Use Fast-mix

After showing the Beaker-Test farmers were asked that will you use Fast-Mix in upcoming

season. All of them i.e. 100 percent farmers said that they will use it.

4.4.4 Brand Positioning of the Weedicide Market

A brand’s position is the set of perceptions, impressions, ideas and feelings that consumers have

for the product compared with competing products. Marketers plan positions that give their

products the greatest advantage in selected target markets, and they design marketing mixes to

create these planned positions. Brands occupy a space in a consumer's mind whilst other brands

compete within that space. The important issues concerning positioning maps for brand owners

are as follows.

1. It helps in spotting gaps in the market place.

4%

46%50%

0

5

10

15

20

25

30

Indifferent Average Excited

Respondents

Respondents

2. That helps to see if you are launching into a crowded market place.

3. It helps to understand who your closest competitors are.

4. It helps to appreciate the most important criteria customers' use when 'positioning'

Different brands in minds are a result of this it helps to inform decisions being made about

organizations by marketing activities. For any major decisions being made it can be asked, what

is the likely effect of this action on the current position of our brand and is this a wise move? Of

course it’s more complex than this perceptual map shows because any change in one element is

likely to have knocked on effects on other elements. Map was designed on the basis of price of

product, brand recall by dealers on 1-9 point scale and market share converted on 1-3 point scale.

Exihibit-11- Brand Position Map

Butaveer

Fatafat mix

Machete

Milchlor

Pritigan

Ready mix

Rifit

TKS Pritila

TopStar

Brand Positioning Of Weedicide Maket

PricePrice

Brand Recall

Brand Recall

4.4.5 Position of the Brands According to the Dealers in the Market

The attributes promotional activities, price and effectiveness of products. Dealers were asked to

give points to different brands from 1-9 from their point of view. After that all points given by

dealer for every product was summed. Here are the ratings of brands according to the dealers.

Maximum point can be 90 in the chart. Study shows that effectiveness is almost similar but

difference created in price of product is because of the margin dealers are getting. Chart is also

representing the difference in the promotional activity among different companies. In this chart

dealers gave those companies higher points, who are giving them higher margin.

The exhibit is showing that according to the dealers Bayer’s Topstar is on the top position

followed by Sinochem’s Machete followed by Syngenta’s Rifit.

Exhibit- 12 Rating of Brands according to dealers

Butaveer

Machete TopstarReady

MixTKS

Pritilapritigan

fataftmix

Milchlor Rifit

Pramotion 10 54 79 10 29 10 10 10 71

Price 83 70 65 90 55 90 90 90 49

Effectiveness 90 88 86 71 88 71 63 73 90

0

10

20

30

40

50

60

70

80

90

100

Tota

l Rat

ing

Poin

t

Brand Rating according to Dealers

4.4.6 Existing Market Size and Projected Market size of Major Weedicides.

For this study we gathered the data of dealers and distributers about what was the sales of paddy weedicide technical last year and what will be the expected market size in the year 2013.The data is showing a significant increase in the consumption of Butachlor technical compared to Pretilachlor.

Table – 4 Market Size (Source Sinochem)

Market Size FY 12 Expected Market Size FY 13

S. No Pockets Rice Acreage in Acre

Buta EC Buta EW Pretila Buta EC Buta EW Pretila

1 Hoshiarpur 20000 4000 3000 1000 4500 3000 1500

2 Mahilpur 5000 1500 1000 500 1500 1000 500

3 Tanda 35000 20000 15000 1000 22000 12000 1500

4 Kathar 20000 6000 2500 1000 5000 3000 1000

5 Pasnta 10000 2500 2000 500 3000 2000 500

Total 90000 34000 23500 4000 36000 21000 5000

4.4.7 Effect of Market Development Activity on the Sales of Fast-Mix

During Kharif season of 2012 total sale of Fast-Mix was 2750 liters and now in the year 2013

kharif season the sales figure showing growth of 23.6 percent in consumption of Fast-Mix. The

sales figure represents that any kind of market development activity has a large impact on sales.

If promotion of the product is good then it will create demand from the farmers and dealers will

automatically demand the product.

5. RECOMMENDATIONS FOR ACTION

Beaker Test is an effective promotional tool so need to be focused while going for

promotion with respect to the consumer perception.

An attractive dealer scheme to attract them because when dealers were asked to rate the

product they gave to Sinochem’s product a lower rating by saying that your prices are not

supportive.

Study shows that product can be sold without promotional tools by sharing margin from

expenditure on promotional tools can give extra edge on sales.

6 REFERENCES

1. Krishna, A (1994) studied consumer buying behavior. J Mktg Res 31: 76-91.2. Sivakumar, S.D., Srinivasan and Hani, K. 1994. Buying behavior of farmers with

reference to pesticides –An analysis. Indian Journal of Agricultural Marketing .22:127-

133. Retrived on 14/5/13 from URL http://www.agrilmktg.org.

3. Michael Beverland, (2001) "Creating value through brands: the ZESPRI kiwi fruit case",

British Food Journal, Vol. 103 Iss: 6, pp.383 – 399 Retrieved on 14/4/2013 from

www.emeraldinsight.com

4. Kothari, C.R. 2009. Research Methodology- Methods and Techniques, 2, New Age

International (P) limited, New Delhi, India.

5. Belch, G.E., Belch, M. A., and Purani K. 2010. Advertising and promotion: An integrated Marketing Communications Perspective. 7th ed. Tata McGraw-Hill Education. New Delhi, India

6. November (2012) ,Annual Review Report on Indian Pesticide Industry 2012 Retrieved

on 14/5/13 from URL www.researchandmarkets.com

7. Raghav,R. 2013. Indian Agrochemicals: Tackling the Challenges.www.agropages.com

Extracted on 14/5/13.

8. May (2013) FICCI, 3rd National Agrochemical Conclave Retrieved on 14/5/13 from

URL http://www.ficci.com on 14/5/13.

9. www.researchandmarkets.com/.../indian_pesticides_industry_2011 Extracted on 14/5/13.

10. www.larrl.ars.usda.gov/research/publications Extracted on 15/5/13.

11. www.en.wikipedia.org/wiki/Hoshiarpur Extracted on 15/5/13.

12. www.hoshiarpur.nic.in/ Extracted on 15/5/13.

13. www.agriculturejournals.com/Extracted on 15/5/13.

APPENDICES

Annexure 1

Beaker Test Questionnaire

1. Name –

2. Village –

3. Contact No –

4. Educational Qualification –

5. Total area

6. Paddy Area

7. Cropping Pattern

8. Do you know about Sinochem India Company Yes/No

9. Do you know about Fast-Mix Yes/No

10. How you control weeds Chemical/Mechanical/Both

11. Which Weedicide you have used last year on Paddy

12. Beaker Test allowed Yes/No

13. Is the Beaker test is helpful to know about benefits of Fast-Mix Yes/No

14. Attention Level .…%

15. Response

Indifferent Average excited very excited

16. Intention to use Fast-Mix Yes/No

17. What Kind of factors you look while purchasing the Weedicide.

I. Dealer /Distributer Recommendation

II. Peer Group

III. Promotional Activities

IV. Agri Dept Recommendation

18. Reason For choosing particular brand

Price Quality of

Product

Packing Availability Expiry date

Annexure 2

Dealer Questionnaire

1. Name 2. Market3. Major Paddy Weedicide Selling –

4. How you will rate these products (1-9)

Brands MRP Pramotion Price Effectiveness

Butaveer

Fatafatmix

Machete

Milchlor

Pritigan

Readymix

Rift

TKS Pritila

Topstar