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Marketing Strategies of Different Local, Domestic and Multinational Brands of Pesticides in Nizamabad District of Telangana
Marketing Strategies of Different Local, Domestic and Multinational Brands of Pesticides in Nizamabad District of Telangana
B. PRAVEEN REDDY
B.Sc. (CA&BM)
2020
DECLARATION
Mr. B. PRAVEEN REDDY has satisfactorily prosecuted the course of research and that thesis
entitled “MARKETING STRATEGIES OF DIFFERENT LOCAL, DOMESTIC AND
MULTINATIONAL BRANDS OF PESTICIDES IN NIZAMABAD DISTRICT OF
TELANGANA” submitted is the result of original research work and is of sufficiently high
standard to warrant its presentation to the examination. I also certify that neither the thesis nor its
part thereof has been previously submitted by her for a degree of any university.
No part of the project report has been submitted by the student for any other degree or
diploma. The published part and all assistance received during the course of investigations
have been duly acknowledged by the author of the project report.
First, I want to thank GOD for his abundant blessing that has helped me in each step of
the progress towards successful completion of the research. At the very outset, I submit the
commodious and indefinite thanks to my beloved parents, family members, teachers and friends
for the successful accomplishment of two years in this university and to present this diminutive
piece of work.
It gives me great pleasure to humbly place on record my profound sense of gratitude,
indebtedness and heartfelt thanks to my chairperson of my advisory committee, Dr. B. GANESH
KUMAR, Principal Scientist, NAARM, Rajendranagar, Hyderabad for his initiative,
benevolence, constant encouragement, warm affection, caring nature and ready help which
enabled me to overcome several stumbling blocks during the period of my investigation and also
in writing of this thesis.
With respectful regards and indebtedness I profess my deep sense of gratitude and
sincere thanks to the members of my advisory committee Dr.P. Radhika, Associate Professor &
Head, School of Agribusiness Management, College of Agriculture, Professor Jayashankar
Telangana State Agricultural University, Rajendranagar, Hyderabad and Dr. D. Srinivasa
chary, Assistant Professor, Dept. of Statistics and Mathematics, College of Agriculture,
Hyderabad for their co-operation, technical guidance and kindness during my study period.
I am in dearth of words to express my sense of gratitude to my beloved parents Smt.
Narsavva and Sri. Pedda ganga reddy for giving me this wonderful life and my siblings
Prashanth reddy, sravanthi and soumya, who have encouraged and motivated me in every stage
of my life and have always strived for my wellbeing. I shall always remain grateful for their
unforgettable efforts in bringing me to this stage, without whom I could not have achieved my
success in my life.
I owe a deep sense of honour, regards and cordial love to my grandparents Smt.
Mallavva and Sri. Gangaram and my family members Shyam reddy, Satish reddy, Harish
reddy, Saritha and relatives for their blessings, love, affection and valuable moral support
throughout my life.
Everyone has to get a little help from friends for one or another work, so I owe my
heartfelt gratitude towards Mounika, Ravinder, Anand, Ramu, Badugu Dilip, Pramod reddy,
Koka Nagaraj, Kranthi reddy, Achyuth reddy, Srikanth varma, Govardhan, Brahmam,
Prasad, Vamshi singaram, Ganga reddy ankapuram, Ram reddy, Suresh reddy, Naresh and
my juniors and seniors Sathya Dheeraj, Gangamohan, Naresh thogaru, Harish lenkalapally,
for their cooperation, support and help during these two years of study which I cherish for
lifetime.
I extend my gratitude and thanks to all the teaching staff Srinivas Reddy, Appa Rao and
non-teaching staff of Department of Agribusiness Management, for extending a warm helping
hand and valuable suggestions throughout the research work.
I feel elated to express my thanks to those who directly or indirectly helped me in
successful completion of thesis work.
Date:
(B. PRAVEEN REDDY)
Place:
LIST OF CONTENTS
I INTRODUCTION
II REVIEW OF LITERATURE
LITERATURE CITED
LIST OF TABLES
% : Per cent
@ : At the rate of
± : Plus or minus
µg : Microgram
µm : Micrometre
µmol : Micromole
o
C : Degree Celsius
cm : Centimetre
dia : Diametre
g : Gram
h : Hour
i.e : that is
mg : Milligram
ml : Millilitre
mm : Milimetre
No. : Number
vis-a-vis : in relation to
viz. : Namely
AUTHOR : B. PRAVEEN REDDY
DEGREE : MBA(ABM)
FACULTY : AGRICULTURE
DEPARTMENT : SCHOOL OF AGRIBUSINESS MANAGEMENT
YEAR OF
SUBMISSION : 2020
ABSTRACT
In view of the fact that nearly 22-25 per cent of the potential food production is lost in
India (The Hindu, 2015) due to the damage caused by the insect pest, plant pathogens,
weeds, rodents, birds etc., the use of pesticides has become absolutely essential. Hence, the
pesticide industry in India has a vital role in the economy of the country. The Indian crop
protection industry is estimated to be USD 4.25 billion in FY14 and is expected to grow at
a CAGR of 12 per cent to reach USD 7.5 billion by FY19. The industry is dominated by
insecticides which contribute to 60 per cent of the overall demand, followed by fungicides,
herbicides and rodenticides/nematicides which account for 18 per cent, 16 per cent and 6
per cent of the demand respectively. Top 20 agro chemical companies share 80 per cent in
the Indian agro chemical market. The market share of large players depends primarily on
product portfolio and introduction of new molecules. The study has been taken up with the
following objectives. - To estimate the trends in pesticide consumption in maize and rice
crops in India, Telangana and Nizamabad district. - To assess the market share of
multinational brands, domestic and local brands of pesticides in study area. - To compare
four Ps of marketing of multinational companies, domestic players and local players in the
pesticide industry. - To assess the preference pattern of farmers and dealers towards
various pesticide brands. For the study, four mandals in Nizamabad district are selected
based on the cultivated area of paddy and maize. From each mandal five villages are
selected based on the cultivated area of paddy and maize. From each village six farmers are
selected randomly. From each mandal five pesticide dealers are selected randomly. Data
was also collected from one salesperson each from three top MNC’s, domestic companies
and local companies in the study area. Primary data is collected from farmers, dealers and
salesperson using separate questionnaires. Secondary data relating to usage of pesticides
and firms information was collected from Agriculture Commissionerate office, Hyderabad,
journals, company websites and other relevant reports. The data collected was analysed by
using percentages and other statistical tools like Garrett’s ranking technique, Compound
annual growth rate in order to draw valid conclusions. Compound annual growth rate of
pesticide consumption in India was 1.9 with level of significance at 1 per cent. That
implies positive trend in pesticide consumption in India and that was significant.
Percentage change in 2015 over 2001 was 24 per cent. Compound Annual Growth Rate of
pesticide consumption in Telangana was 2.9 with level of significance at 1 per cent. That
implies positive trend in pesticide consumption in Telangana and that was significant.
Percentage change in 2015 over 2001 was 18 per cent. MNC’s majorly focusing on crash
campaigns, demonstrations, trainings, paintings, banners, hoardings, literature and dealer’s
general meetings. Domestic companies promotional activities majorly focus on
demonstrations, trainings, exhibitions, posters, banners, crash campaigns, regional mela
participation and dealer’s general meetings. Local companies promotional activities are
majorly dealer oriented, they mainly focus on dealer’s general meetings. It can be noticed
that most of the multinational company products are applied on all crops. All the
companies are majorly focusing on paddy, maize, cotton, fruits and vegetables in the study
area. Most of domestic company products are majorly focusing on paddy and maize in the
study area, apart from this they are also focusing on fruits and vegetables. Among the
selected local companies, Nova agri tech has products suitable for specific crops, whereas
the other two companies products are suitable for all crops. From the table it can be noticed
that there is not very high variation in prices among the prices of multinational and
domestic companies. It can be noticed that the average usage of pesticide in liquid form is
more in paddy crop, where as in granules form it is more in cotton crop in the study area.
Farmers are not happy with the quality of products of local companies and they are mostly
satisfied with the products of multinational and domestic companies. Peer farmers and
sales personnel are an important sources of information for farmers. Credit is the most
influencing factor to purchase a particular brand of pesticide in case of farmers, as can be
noticed from the table 4.22 . Price, performance of the product are second and third most
influencing factors. On the whole, 90 per cent of dealers in the study area were dealing
with three product lines i.e., pesticides, fertilizers and seeds, 10 per cent dealers are dealing
with pesticides and seeds. The multinational companies and domestic companies compete
on the basis of their product strength, promotional activities and giving trainings to the
dealers, where as the local companies compete on the basis of promotional activities and
maintaining good relation with the dealers given them good margins. Though these
activities are also taken up by domestic companies and multinational companies their focus
is not majorly on these activities.
Chapter I
INTRODUCTION
Pesticides are chemical compounds that are used to kill pests, including insects,
rodents, fungi and unwanted plants which are widely used in agriculture (Banerjee,
2016).
The pesticide usage in India has increased from green revolution period in
India. Because of high yielding varieties the pest attack has increased and to get the
proper yield the usage of pesticide also increased. Even though the usage is more in
India we are still at very low level of usage in comparison to many countries.
In view of the fact that nearly 22-25 per cent of the potential food production is lost
in India (The Hindu, 2015) due to the damage caused by the insect pest, plant
pathogens, weeds, rodents, birds etc., the use of pesticides has become absolutely
essential. Apart from high dependency on monsoon and irrigation facilities, the
situation becomes critical as about 15-25 per cent potential crop production is lost
due to pests, weeds and diseases.Thus in order to enhance productivity, the usage of
pesticides play a vital role (CARE Ratings).
The Indian pesticide market is the twelfth largest in the world with a value of US $
0.6 billion, which is 1.6 per cent of the global market pie. Western Europe and USA
are the world leaders with shares of about 30.2 per cent and 22.7 per cent
respectively. Currently there is a boom in the global pesticide market and new
insecticides, herbicides and fungicides and their formulations are being introduced
with greater level of activity.
Top 20 agro chemical companies share 80 per cent in the Indian agro
chemical market (Agropages, 2018). The market share of large players depends
primarily on product portfolio and introduction of new molecules. In India Larger
companies are acquiring/ entering into strategic alliances with smaller companies
to increase their market reach (Religare Institutional Research, 2017).
Table 1.1. Key pesticide industry players in India
Cotton and Paddy are the major consumers of crop protection chemicals
accounting for 50 per cent and 18 per cent respectively of the total domestic crop
protection chemicals market. Fruits and vegetables also account for a significant
share of the crop protection chemicals market. Cotton, which accounts for just 5
per cent of the cropped area consumes about 50 per cent of the pesticides. Rice
grown over 24 per cent of the cropped area uses nearly 18 per cent, fruits and
vegetables raised over three per cent of cropped area consume 14 per cent,
plantation crops covering two per cent of
the area consume eight per cent and cereals, millets and oilseeds extending over
58 per cent of the area consume seven per cent. Sugarcane uses two per cent of
pesticides and other crops grown over six per cent of the cropped area account for
another one per cent.
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 and African countries. The global market in generic pesticides is
likely to increase in coming years. It is expected that the strong fundamentals of
the Indian pesticide industry, such as cheap availability of raw materials, process
expertise, low operating costs and R and D strengths will attract many foreign
companies. This in turn
should boost investment in research, and thus there seems to be a bright future for
agrochemical companies in India.
1. Non-genuine products
There is a significant share of non-genuine pesticides which include
counterfeit, spurious, adulterated or sub-standard products. According to industry
estimates the non- genuine pesticides could accounted for more than 40 per cent
of the pesticides sold in India in FY14. These products are inferior formulations
which are unable to kill the pests or kill them efficiently.
2. Stringent regulations
Stringent environmental regulations across the world are increasing the
cost of developing new products and simultaneously delaying the introduction of
new products in the market.
1.8.1.3 Advertisement
Advertisements are given by companies in various media from time to
time. An advertisement is a paid, non personal public communication about
causes, goods and services, ideas, organizations, people, place through means
such as direct mail, telephone, print, radio, television and internet. An integral part
of marketing, advertisements are public notices designed to inform and motivate.
Their objective is to change the thinking pattern of the recipient.
1.8.1.4 Campaigning
Full – scale implementation of sales strategy for a product in a particular
or in a market segment in a geographical area to achieve the objective of
increasing sales.
1.8.1.5 Burra kathalu
It is type of a promotional activity where the company people will explain
about their product by playing a short play.
2. To assess the market share of multinational brands, domestic and local brands
of pesticides in the study area.
IV. Results and Discussion: The results and discussion presents the results
obtained after analysis of the data collected.
An attempt has been made to review the relevant literature which is presented
in a systematic manner under following sub headings.
1. Trends in pesticide consumption and usage pattern.
2. Promotion and other strategies of pesticide companies.
3. Preference pattern of farmers and dealers with regard to agriculture inputs.
Perritt (1989) revealed that 95 per cent of farmers purchase and apply
pesticides to protect food crops in the field and during storage. The use of pesticides is
more complicated because it requires appropriate training to identify the pest, to
select the appropriate pesticide and to use it in required quantities at the right time.
Because of this, the use of pesticides continue to be at a lower level and
disproportionate to fertilizers used in the country.
Srivastava and Patel (1988) reported that farmers get substandard quality of
product from local formulators. Non-availability of credit, shorter credit period and
farmers illiteracy, which lead to cheating by dealers are some problems in pesticide
usage. Dealer loyalty is another significant factor which influences the buying
behaviour of farmers.
Sagar and Pal (1984) made an attempt to identify the problems and observed
that more attention has to be paid on adequate quantity and timely supply of
pesticides. Skilled labour for pesticide application are needed to make the farmers to
adopt plant protection. Farmers are facing numerous problems in the purchase of
pesticides at a nominal price, when most needed in desired quantity and quality.
Farmers were also dissatisfied regarding the steps taken by government agencies in
handling cost-free pesticides.
Duffy (1983) studied the use and practices of pesticides in USA. The study
reported the nature and extent of pesticides use by crop, using data from the ERS-
USDA's 1982 crop and livestock pesticide usage survey. The survey covered 13
major field crops in 33 states with data from 6520 respondents. It was reported that
11per cent of farmers used professional scouting for pest problems, 59 per cent self
scouted their fields, and 12 per cent were aware of beneficial insects and diseases.
Almost 70 per cent of the farmers with livestock used insecticides for livestock insect
control.
Shanthini and Karthirvel (2013) in their study mentioned that several brands
of fertilizers exists in the market. In the study an attempt was made to study the
leading eight fertilizer manufacturing concerns and to know which is more popular,
preferred and purchased by the farmers. Expectation and the level of satisfaction of
farmers is an essential one for withstanding a brand. The factors influencing the
farmers for purchasing branded fertilizer are quality, price, availability and
advertisement. Today, consumer market is flooded with various brands of fertilizers.
Each branded fertilizer stands out distinctly when grouped with other branded
fertilizer. Farmers have specific preference or choice and they analyze the price,
quality, packaging aspects etc. before they buy the product and hence, it is up to the
different brands of fertilizers manufacturers to concentrate on those aspects and
workout better strategy to attract more farmers for their brands.
Solanki et al. (2013) studied about the consumer buying behavior towards
agriculture inputs in Bardoli, Gujarat. In their study they identified the factors that
affect consumers purchasing behavior towards agriculture inputs like fertilizer, seeds,
agrochemicals, oils and lubricants and also durables like tractor and other
agricultural machineries and implements. The study mentioned that price, product
quality, brand and credit facility are the important factors which customers consider
while purchasing agriculture inputs. The study also highlighted that 43 per cent of
the respondents preferred T.V. as their main source of information for the purchase
of agriculture inputs, next came posters with 26 per cent, 19 per cent by magazines,
radio with seven per cent, internet sources with only three per cent of the total and
lastly two per cent for other sources.
Shetty et al. (2010) had conducted intensive survey involving 1039 farmers
belonging to 28 districts in 12 Indian states which was carried out in pesticide use
predominant regions to study the influence of farmer’s awareness, education and
practices related to pesticide use as well as Integrated Pest Management (IPM)
measures. Only 20 per cent of the respondents obtained their information on plant
protection aspect from the agricultural extension officer and the rest of 80 per cent of
the farmers used unreliable information with respect to the crop protection in the
surveyed areas.
George and Lahiri (2009) studied the company and dealers relationship in
agrochemicals business and reported that in appointing dealers by the agrochemicals
companies’ security deposit has varied to a great extent in providing credit limit to
the dealers. The agrochemicals companies has not followed any uniform policy,
maximum period of credit limit has been up to 50 days. Beyond this period, interest
is charged. Regarding return of unsold stocks companies have a varied policy,
control of promotional expenses followed an unauthorized and decentralized
approach.
Rao et al. (2009) revealed that in India 52.00 per cent of farmers got their
plant protection advice from pesticide dealers, while in Nepal the majority of the
farmers (69.00%) make their plant protection decisions through agricultural officers.
Gregory and Bumb (2006) identified five pillars that are required to develop
agriculture input markets and achieve market efficiency. Increasing supplies and
market efficiency can reduce input prices. These five pillars are the policy
environment; human capital development; access to finance; market information; and
regulatory frame works. These generic components need to be adopted in the context
of country-specific situations. Holistic improvements in all areas will reduce
transaction costs and improve accessibility to fertilizers in rural areas.
Grover and Lunach (2006) reported that the private dealers were the major
source of the purchase of pesticides by the sample farmers. Among all the identified
channels manufacturers-distributor-farmers was found to be higher in case of
weedicides .The average time of clearance of stock was 2 months and 17 days and
respondent dealers also suggested that the training should be given to pesticides
dealers for fixing dealers sale price and quality control.
Hiralal et al. (2006) conducted a study on adoption of various sale promotion
methods by agricultural input retailers in West Bengal to assess the relative
importance of different sales promotion methods based on the perception of
agricultural input-retailers. The study resulted that the major sales promotion
methods adopted by agricultural input retailers were individual contact to farmers (97
per cent), selling products on credit (95 per cent), diagnosing and prescribing (95 per
cent) and participating in dealers' meetings (45 per cent).
NSSO (2005) reported that 80.00 per cent of farmers who obtained
information from input dealers or other progressive farmers have either tried or
adopted them. At all India level the input dealers stood second (13.10%) in access to
farming community for providing information on agriculture technology, first being
the progressive farmers.
Mele et al. (2002) had conducted a empirical research work in1998-99, about
150 citrus farmers and 120 pesticide sellers in Can Tho and Dong Thap province,
Mekong Delta, Vietnam. Media, pesticide sellers and extension staff had different
influences on farmers’ pest perception and management practices depending on the
region and intensity of the cropping system. Pesticide sellers were notified by about
95 per cent of the farmers about their major pest problems, and the type of pesticides
sold in their shop was primarily based on farmers’ demand (87 per cent) and then on
company promotion (56 per cent).
Rohini and Padmanaban (2000) studied farmers’ brand and dealer loyalty to
pesticides in Coimbatore district. The results showed that price and efficiency of the
preferred brand were significant at one per cent level for brand loyalty. The factor
advertisement also influenced the brand loyalty at five per cent level. With regard to
dealer loyalty, factors such as credit availability and quality of product were
significant at one per cent level. The study showed that farmers are loyal to pesticide
brands and also to pesticide dealers.
Reddy and Raju (1999) studied about buying motives of rural consumers
towards purchase of seeds and different sources of information about brands with
regard to seeds. Factors influencing brand loyalty of farmers were dealer’s
suggestion, quality product and co-farmers. The problems faced by farmers with
regard to seed are supply of poor quality of seed, adulteration and irregular supply of
seeds.
Mirani (2013) studied about perception of farmers and extension and research
personnel regarding use and effectiveness of sources of agricultural information in
Sindh province of Pakistan. In the study he found out that farmers perceived
neighboring farmers and agricultural suppliers were very much effective sources of
agricultural information. The study further reveals that the farmers perceived
training, farmer field schools, demonstration, radio and face to face interaction as
effective approaches for technology transfer. Also the study highlighted that
extension and research personnel perceived that farmers used radio on an almost
always basis and also perceived that radio, television and agricultural suppliers are
very effective sources of information.
Krausova and Banful (2010) in their study reported that the majority of
agricultural input dealers perceive lack of available capital (79.00%), followed by
cost of transporting products (47.00%) and low customer demand (32.00%) as key
challenges to business operations.
Sivakumar (1994) analysed buying behaviour of farmers with respect to
pesticides, considering the factors influencing loyalty of farmers towards dealer and
brand. Friends, neighbours 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 advertisements of the brand contributed
significantly to brand loyalty. Credit availability, advertisements and price of
products available with dealer contributed significantly to dealer loyalty.
Chapter III
MATERIAL AND METHODS
The methodology followed for conducting any study plays an important role
in obtaining reliable results. The methodology includes general characteristics of the
study area, selection of sample, method of collection of data, evaluation techniques
of data and scope of the study.
3.1.2 Climate
The climate of the district is tropical with three main seasons being rainy,
winter and summer. The maximum temperature attained during April-June was 43°C
and daily average temperature fluctuates within the range of 16-42°C.
3.1.3 Rainfall
The major amount of rainfall is during the South West monsoons and North
East monsoons which contributes about 86% of annual rainfall. The normal rainfall
of the district is 1035.5 mm.
3.1.4 Soils
The important soils are black soils and chalka soils (sandy loamy) and they
constitute 52 per cent and 48 per cent of total area of the district respectievely. The
erstwhile block of Bodhan, are predominantly covered by black soils and other blocks
are covered by chalka soils.
3.1.5 Agro climatic region
Nizamabad district is situated in North Telangana plateau, hot moist semi arid
agro ecological sub region as per ICAR and as per planning commission Nizamabad
district belongs to southern plateau hills region in agro climatic region.
3.1.7 Irrigation
The major irrigation source in the district is bore wells which occupies major
per cent of irrigated area. Tanks and open wells are in next position in the district and
five per cent of net area irrigated was under surface water, while the rest 95% was
irrigated by ground water during 2012.
Y = abt
Where,
t = base period in number of years (1, 2, 3….n)
y = number of factors
b = (1 + r)
r = compound growth rate
a = constant
In log form b was calculated by using the formula,
Where,
n = number of years
The per cent of compound growth rate is,
[(Anti log of b) – 1] × 100
The standard error of growth rate (SEr) was estimated by using the following
formula.
Where,
T=t-t
The student‘t’ test was used to test the significance of growth rates.
T=
3.8.5 Price
Pricing strategy in marketing is the pursuit of identifying the
optimum price fo a product. This strategy is combined with the other marketing
principles known as the four P's (product, place, price and promotion) market
demand, product characteristics, competition and economic patterns. Pricing is
also a key variable in micro economic price allocation theory. Pricing is a
fundamental aspect of financial modelling. Price is the only revenue generating
element amongst the four Ps, the rest being cost centres.
3.8.6 Place
The process of moving products from the producer to the intended user is
called place. In other words, it is how a product is bought and where it is bought.
This movement could be through a combination of intermediaries such as
distributors, wholesalers and retailers.
3.8.7 Product
Product is anything that can be offered to a market that might satisfy a want
or need. In retailing, products are called merchandise. In manufacturing, products are
bought as raw materials and sold as finished goods.
3.8.8 Promotion
Promotions refer to the entire set of activities, which communicate the
product, brand or service to the user. The idea is to make people aware, attract and
induce to buy the product, in preference over others. There are several types of
promotions. Above the line promotions include advertising, press releases, consumer
promotions (schemes, discounts, contests), while below the line include trade
discounts, freebies, incentive trips, awards and so on. Sales promotion is a part of the
overall promotion effort.
Compound annual growth rate of pesticide consumption in India was 1.9 with
level of significance at 1 per cent. That implies positive trend in pesticide consumption
in India and that was significant. Percentage change in 2015 over 2001 was 24 per cent.
1 2000-01 43584
2 2001-02 47020 7.88
3 2002-03 48350 2.82
4 2003-04 41020 -15.1
5 2004-05 40672 -0.84
6 2005-06 39773 -2.21
7 2006-07 41515 4.37
8 2007-08 43630 5.09
9 2008-09 43860 0.52
Local companies promotional activities are majorly dealer oriented, they mainly
focus on dealer’s general meetings. Apart from dealer’s general meetings they also
distribute literature about the product, posters, melas and exhibitions. They are not
focusing much on demonstrations and trainings in the study area.
4.2.2 Promotional activities
Different companies use different type of promotional activities to promote their products in the market. The promotional activities
range depends on the strategy followed by the company. The promotional activities taken up the sample companies are listed in the
following table.
Table 4.4 promotional activities of different companies
S.No Promotional activity Corteva Syngenta Bayer IIL Dhanuka SWAL Nova agri tech Shanmukha agri Srikar
tech Bio tech
1 Crash campaigns ✓ ✓ ✓ ✓ ✓ ✓ * * *
2 Crop seminars ✓ ✓ ✓ ✓ ✓ ✓ * * *
3 Demonstrations ✓ ✓ ✓ ✓ ✓ ✓ * * *
4 Stop demonstrations ✓ ✓ ✓ ✓ ✓ ✓ * * *
5 Trainings ✓ ✓ ✓ ✓ ✓ ✓ * * *
6 Regional mela ✓ ✓ ✓ ✓ ✓ ✓ * * *
7 Exhibitions ✓ ✓ ✓ ✓ ✓ ✓ * * *
8 Crop folders ✓ ✓ ✓ ✓ ✓ ✓ * * *
9 Product literature ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
10 Posters ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
11 Pole posters ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
12 Banners ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
13 T shirt campaign use ✓ ✓ ✓ * * * * * *
14 Wall painting ✓ ✓ ✓ * * * * * *
15 Shop painting ✓ ✓ ✓ * * * * * *
16 Retailer boards ✓ ✓ ✓ * * * * * *
17 Retailer gates ✓ ✓ ✓ * * * * * *
18 Trolley painting ✓ ✓ ✓ * * * * * *
19 Hoardings ✓ ✓ ✓ * * * * * *
20 Radio (spots) * * ✓ * * * * * *
21 Prints(Ads) * * ✓ * * * * * *
22 TV(spots) * * ✓ * * * * * *
23 Dealer’s general meeting ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
(note: “ ✓ “ mark indicates that the promotional activity is taken up the company, where as a ‘*’ mark indicates that the promotional
activity is not taken up by the company)
4.2.3 Product
The products of each company chosen and the crops on which they are applied are
shown in the following tables.
Most of the Corteva brands are useful for all crops that are cultivated in the study
area. They also have some products which can be applied on fruits and vegetables.
4.2.3.1.2 Syngenta products
Table 4.6. Syngenta company products and crops on which they are used
Various products of
Sl. No Syngenta available in the Crop applied on
study area
1 Ampligo Maize, Cotton, Vegetables
2 Actara Cotton
3 Polo Cotton, Vegetables
4 Pegasus Cotton
5 Virtako Paddy
6 Amistar top Vegetables
7 Redmil gold All crops
8 Refit Paddy
9 Refit plus Paddy
10 Alika Cotton, Vegetables
11 Matador Maize, Cotton, Vegetbles
12 Chess Paddy
Most of Syngenta products are useful to apply on all crops cultivated the study
area, however the company is mainly on Cotton, Chilli and Paddy.
4.2.3.1.3 Bayer products
Table 4.7. Bayer company products and crops on which they are used
Various products of Bayer
Sl. No Crop applied on
available in the study area
1 Guacho Chilli, Cotton, Pulses
A high percentage of Bayer products are suitable for application on cotton, chilli,
paddy and vegetables.
It can be noticed that most of the multinational company products are applied on
all crops. All the companies are majorly focusing on paddy, chilli, cotton, fruits and
vegetables in the study area.
4.2.3.2 Domestic company products
4.2.3.2.1 IIL products
Table 4.8. IIL company products and crops on which they are used
Various products of IIL
Sl. No Crop applied on
available in the study area
1 Thimet Paddy, Cotton and Vegetables
2 Nuvan Paddy, Cotton and Vegetables
3 Lethal Paddy, Sugarcane
4 Monocil All crops
5 Victor Cotton, Chilli, Fruits and Vegetables,
6 Pluto All crops
7 Hijack All crops
8 Hakama Cotton, Soyabean, Black and Green gram
9 Pulsor Paddy
10 Lethal 50 Paddy and Sugarcane
11 Victor plus Paddy
12 Avone Paddy, Cotton and Chilli
13 Force 11 Paddy, Chilli, Cotton, Fruits and Vegetables
14 Selector All crops
Most of the IIL products are targeted for use on Paddy crop, followed by Cotton and
Chilli.
4.2.3.2.2 Dhanuka products
Table 4.9. Dhanuka company products and crops on which they are used
Various products of
Sl. No Dhanuka available in the Crop applied on
study area
1 Largo Maize, Cotton and Vegetables
2 D one Cotton and Vegetables
3 Cover All crops
4 Sempra Maize and sugarcane
5 Dhanu top Paddy, Cotton and Vegetables
6 Cover Gr Paddy
7 Caldan Paddy
8 Dhanuka M-45 Paddy, Cotton and Vegetables
9 Barrier All crops
10 Cursor All crops
SWAL products are mainly meant for use on Paddy, Cotton and Chilli crops.
Most of domestic company products are majorly focusing on paddy, cotton and chilli in
the study area, apart from this they are also focusing on fruits and vegetables.
4.2.3.3 Local company products
4.2.3.3.1 Nova agri tech products
Table 4.11. Nova agri tech company products and crops on which they are used
Various products of Nova agri
Sl. No Crop applied on
tech available in the study area
Paddy, Cotton, Chilli, Fruits and
1 N counter
Vegetables
2 Sniper Fruits and Vegetables
3 Terminator Field and horticulture crops
4 Attack Chilli, tomato
5 Swarna Pulses
6 Cosmo Fruits and vegetables
7 N kick Paddy, Cotton and chilli
8 N shooter Paddy and Cotton
9 Kin nova Paddy, Cotton and Chilli
Most of Nova agri tech products are suitable for application on paddy, cotton
and chilli crops. Few products of this company are also suitable for application on fruits
and vegetable crops.
As like Shanmukha agri tech products, Srikar bio tech products are also suitable for
any crop. They also have insecticidal, fungicidal, growth regulators and soil health
developers.
Among the selected local companies, Nova agri tech has products suitable for
specific crops, whereas the other two companies products are suitable for all crops.
The prices of local companies have not been mentioned in the table because, these
companies products do not fall under a particular formulation. The local companies
products are targeted for all the crops and have no specific formulations and they are
priced in the range Rs.350 to Rs.500 per litre in the study area.
Table 4.15. Value of business done by each selected company in the study area
Value of business (crores)
Sl. No Company Company name
Corteva 16.25
1 Multinational company Syngenta 12.75
Bayer 8.50
IIL 9.50
2 Domestic company Dhanuka 6.25
SWAL 5.50
Nova agri tech 4.50
3 Local company Shanmukha agri 3.20
tech
Srikar bio tech 2.30
It can be noticed from the table 4.15 that multinational companies are doing more
business than domestic companies except in case of IIL. Corteva is the market leader
in the multinational category, whereas IIL is the market leader in case of domestic
companies. The local companies have their share of business in the study area, Nova
agri tech is the market leader among local companies. All the selected companies
contribute 62.5 per cent to the total business in the study area. The market share of
Corteva is 14.8 per cent, whereas the market share of Syngenta and Bayer are 11.6 per
cent and 7.7 per cent respectively. The market share of IIL, Dhanuka and SWAL in the
study area is 8.6 per cent, 5.7 per cent and 5.0 per cent respectively. The market share of
Nova agri tech, Shanmukha agri tech and Srikar bio tech are 4.1 per cent, 2.9 per cent and
2.1 per cent in the study area.
4.3 GENERAL PROFILE OF FARMERS AND ANALYSIS OF
FARMER’S PERCEPTION WITH REGARD TO VARIOUS
PESTICIDE COMPANIES
4.3.1 General characteristics of sampled farmers
Age, educational level, farm holding, cropping pattern, usage of pesticides and
place of purchase of pesticides with regard to farmer respondents are analysed in this
sub- section.
4.3.1.1 Age
The analysis revealed that about 15.8 per cent of sample farmers were in the age
group of 30-35 years, while 32.5 per cent belonged to the age group of less than 35-40
and the rest 51.7 per cent were above 40 years of age. Most of the farmers are above 35
years of age in the study area. The following table shows the age group details of
farmers in Nizamabad district.
As all the sampled farmers had minimum education, they will be in a position to
understand the promotional activities conducted by the pesticide companies.
One hundred and nine (90.8 per cent) farmers in the study were interested to buy
pesticide from dealers outlets. Remaining eleven (9.2 per cent) farmers preferred
retailer outlets.
4.3.1.4 Usage pattern of pesticide
In the study area sampled farmers were asked to give the usage pattern of
pesticide. The given data is tabulated and explained as below.
The pesticides in the study are used both in liquid form and granules or powder
form. The average pesticide usage in cotton crop was 4-4.5 lit and 5 kg of granules in
kharif season and pesticide usage in rabi season was 3.5-4 lit and 4.5 kg of powder or
granules. The average pesticide usage in maize crop was 13-15 lit and 0.5 kg to 1 kg of
powder in kharif season and pesticide usage in rabi season was 11-13 lit and 500 -700
gm of granules. The pesticide average usage in paddy crop was 21-23 lit and 2 kg to 2.5
kg of powder in kharif season and pesticide usage in rabi season was 20 -21 lit and 1.5-
2 kg of powder. It can be noticed that the average usage of pesticide in liquid form is
more in paddy crop, where as in granules form it is more in cotton crop in the study
area.
4.3.2 Awareness of the farmers about the various brands of pesticides and rating
of various brands of pesticides
The farmers in the study area are aware about all the brands listed under three
categories of companies i.e multinational companies, domestic companies and local
companies, as shown in the following table. All the farmers gave rating of five to the
brands of Corteva, whereas most of the farmers (hundred per cent and eighty per cent)
gave a high rating to products i.e Polo and Ampligo of Syngenta respectively.
Similarly, five rating was given to Bayer products also by most of the farmers. In
case of domestic companies all the products of the three companies IIL, Dhanuka
and SWAL received a rating of good mostly. Some of the products of IIL, Dhanuka and
SWAL received very good ranking from the farmers. In case of local companies the
products of the three companies listed received a rating of very poor to average, with
most of the rating of products falling in the very poor and poor category. This shows
that farmers are not happy with the quality of products of local companies and they are
mostly satisfied with the products of multinational and domestic companies.
Table 4.20. Awareness of the farmers’ about the various brands of pesticides and rating of various brands of pesticides
Sl. No Firm Company name Brand Aware/ not aware Rating given by farmers
Delegate Aware 120(100%)-5
Corteva
Pexalon Aware 120(100%)-5
Multinaltional Polo Aware 96(80%)-5; 24(20%)-4
1 Syngenta
companies Ampligo Aware 102(85%)-5 18(12%)-4
Spintor Aware 120(100%)-5
Bayer
Confidor Aware 120(100%)-5
Thimet Aware 96(80%)-4 24(20%)-3
IIL
Nuvan Aware 112(93.3%)-4 8(6.7%)-3
Largo Aware 115(95.8%)-5 5(4.1%)-4
2 Domestic companies Dhanuka
D one Aware 117(97.5%)-5 3(2.5%)-4
Monstar Aware 102(85%)-4 18(15%)-3
SWAL
Starthene Aware 106(90%)-514(11.7%)-4
Shanmukha agri Terminator Not aware 90(75%)-2; 30(25%)-1
tech
Garuda Not aware 96(80%)-2; 24(20%)-1
KinNova Aware 108(90%)-3; 12(10%)-2
3 Local companies Nova agri tech
N power Aware 108(90%)-3; 12(10%)-2
Srikars’s super Not aware 110(91.6%)-2;10(8.4%)-1
Srikar bio tech
Srikars’s khaleja Not aware 115(95.8%)-2; 5(4.2%)-1
4.3.3 Ranking of the different information sources
In the study area farmers were asked to mention the sources of information
about various pesticides. The details gathered are shown in the following table.
Among all factors farmers have given 1 st rank to progressive farmer as best source
of information with mean score of 74.13. Company sales personnel, demonstrations,
Peer farmers/ relatives, pamphlets, dealers are ranked 2nd, 3rd, 4th, 5th and 6th important
sources of information to farmers with regard to information on about pesticides with
mean scores of 72.11, 71.9, 69.79, 67.7 and 65.61 respectively. 7 th, 8th, 9th, 10th and 11th
ranked information sources were hoardings, NGO’s, television/ radio, extension works
of government departments and newspapers with mean scores of 62.04, 44.21, 38.05,
35.88 and 31.05 respectively. Thus it can be noticed that company sales personnel are
an important source of information for farmers.
4.3.4 Factors influencing purchase of a particular brand
The farmers were asked about factors which influence them to purchase a particular
brand of pesticide. The data was tabulated and ranks were given to each factor by using
Garrett ranking method.
Non availability of credit facilities was ranked as the most important problem
among all the problems listed. High price and imitation products were ranked as the 2nd
and 3rd problems with mean score of 75.33 and 69.07 respectively. Quality issues,
dealer’s wrong advice and non-availability in required package sizes were the 4th, 5th
and 6th ranked problems. Spurious products, non-availability of product when required
and lack of knowledge about use of pesticide were the least important problems faced
by the farmers as they were ranked as 7 th, 8th and 9th problems with mean scores of
44.59, 35.03 and 32.05 respectively.
Farmers in the study area are educated, they are aware about various products of
selected pesticide companies and for them credit availability is the major factor
influencing them to buy a particular product. They rely more on fellow farmers to gain
information about various available products.
4.4 GENERAL PROFILE OF DEALERS AND ANALYSIS OF
DEALER’S PERCEPTION WITH REGARD TO VARIOUS
PESTICIDE COMPANIES
4.4.1 General characteristics of sampled dealers
Age, educational level, business experience in pesticide sales and product lines
dealt by dealers were analysed and discussed as they influence pesticide sales.
4.4.1.1 Age
The analysis revealed that about 10 per cent of sample dealers were in the age
group of 30-35 years, while 80 per cent belonged to the age group of less than 35-40
and the rest 10 per cent were above 40. The following table shows the age group
details of dealers in Nizamabad district.
Most of the dealers are well established in the field and they know the pros and
cons of the business. They have a clear understanding of local conditions in terms of
crop, season, and exact time of appearance of pest and diseases and the movement of
different chemicals for the control of these.
Hence financial strength of the dealer and accessibility of the shop to the
customers are the major factors considered by companies for giving dealership and
education of the traders is not considered by the companies to give dealership.
4.4.3 Awareness of the traders about the various brands of pesticides and rating of
various brands of pesticides
The dealers in the study area are aware about all the brands listed under three
categories of companies i.e., multinational companies, domestic companies and local
companies, as shown in the following table. All the dealers gave rating of five to the
brands of Corteva, whereas most of the dealers (eighty per cent and ninty per cent)
gave a high rating to products Polo and Ampligo of Syngenta respectively. Similarly
five rating was given to Bayer products also by most of the dealers. In case of domestic
companies all the products of the three companies IIL, Dhanuka and SWAL received a
rating of good mostly, where as in case of local companies the products of the three
companies listed received a rating of very poor to average, with most of the products
ranked in the very poor and poor category, this shows that dealers are not happy with the
quality of products of local companies.
Table 4.30.Awareness of the trader about the various brands of pesticides and rating of various brands of pesticides
Sl. No Firm Company name Brand Aware/ not aware Rating given by dealers
Delegate Aware 20(100%)-5
Corteva
Pexalon Aware 20(100%)-5
Multinaltional Polo Aware 16(80%)-5 4(20%)-4
1 Syngenta
companies Ampligo Aware 18(90%)-5 2(10%)-4
Spintor Aware 20(100%)-5
Bayer
Confidor Aware 20(100%)-5
Thimet Aware 18(90%)-4 2(10%)-3
IIL
Nuvan Aware 17(85%)-4 3(15%)-3
Domestic Largo Aware 16(80%)-5 4(20%)-4
2 Dhanuka
companies D one Aware 18(90%)-5 2(10%)-4
Monstar Aware 18(90%)-4 2(10%)-3
SWAL
Starthene Aware 16(80%)-5 4(20%)-4
Terminator Not aware 16(80%)-2 4(20%)-1
Shanmukha agri
tech Garuda Not aware 17(85%)-2 3(15%)-1
3 Local companies Kin Nova Aware 18(90%)-3 2(10%)-2
Nova agri tech
N power Aware 16(80%)-3 4(20%)-2
Srikars’s super Not aware 18(90%)-2 2(10%)-1
Srikar bio tech
Srikars’s khaleja Not aware 19(95%)-2 1(5%)-1
When it comes to domestic companies these companies are good in giving credit
facilities to dealers but not like local companies. The local companies main focus is to
attract more customers towards their products, for this reason they give more credit
facilities to dealers when compared to multinational companies. In the study area dealers
said that all the domestic companies credit facilities are good and among the domestic
companies SWAL is better than other companies.
According to dealers all local companies are very good in giving credit facilities.
They mainly focus on sale of the product and would like to push the product by giving
benefits to the dealers.
All domestic companies are also same like multinational companies in giving
training to dealers. These companies are also good in giving training to dealers. When
compared to domestic companies and multinational companies, local companies are very
poor in giving training to dealers.
The multinational companies and domestic companies compete on the basis of their
product strength, promotional activities and giving trainings to the dealers, where as the
local companies compete on the basis of promotional activities and maintaining good
relation with the dealers by given them good margins. Though these activities are also
taken up by domestic companies and multinational companies their focus is not majorly on
these activities.
4.4.5 Ranking of different factors which a farmer considers for purchasing a pesticide
and dealer’s perception
Dealers were asked to rank the different factors, which a farmer considers to
purchase a particular brand of pesticide. The results obtained are summarised in the
following table.
Table 4.32. Ranking of different factors which a farmer considers for purchasing a
pesticide and dealer’s perception
Sl. No Factors Total score Mean score Rank
1 Credit 1975 79 1
2 Crops grown 1026 41.04 6
3 Information regarding the product 1271 50.84 4
4 Low price 1910 76.4 2
5 Easy availability 1446 57.84 3
6 Previous performance 1134 45.36 5
7 Quality of the product 950 38 7
According to the dealers, credit is the most important factor with the mean score of
79 per cent. With mean score of 76.4 per cent, low price is next important factor. The next
important factors are easy availability, information regarding the product, previous
performance and crops grown with mean score of 57.84 per cent, 50.84 per cent, 45.36 per
cent and 41.04 per cent respectively. Quality of the product is least important factor with a
mean score of 38 per cent.
4.4.6 Ranking of common promotional tools that a company adopts
Dealers were asked to give ranks to the different promotional activities which are
taken up by the companies. The results were furnished in the following table.
Table 4.33. Ranking of common promotional tools that the companies adopt
Sl. No Factors Total score Mean score Rank
1 Demonstrations 1581 63.24 3
2 Pamphlets 1698 67.92 2
Newspapers/ Magazines
3 1221 48.84 5
advertisements
4 Television/Radio advertisements 1188 47.52 6
5 Kisan melas/Fairs 1277 51.08 4
6 Trainings 1758 70.32 1
With a mean score of 70.32 per cent trainings are chosen by the dealers as top most
important promotional activity adopted by the company. Pamphlets and demonstrations are
in the 2nd and 3rd position with mean score of 67.92 per cent and 63.24 per cent
respectively. Kisan melas/fairs, newspapers / magazines advertisements and
television/radio advertisements are the least important promotional activities adopted by the
companies according to the dealers with mean scores of 51.08 per cent, 48.84 per cent and
47.52 per cent respectively.
4.4.7 Ranking of many different problems faced by the dealers in pesticide business
In the study area dealers were asked to rank various problems being faced by them
in doing pesticide business and the ranks obtained are summarised in the following table.
Table 4.34. Ranking of many different problems faced by the dealers in pesticide
business
Sl. No Problems Total score Mean score Rank
1 Payment problems from customers 1796 71.84 4
2 Late delivery of the company 1758 70.32 5
Company do not take care of the
3 1487 59.48 8
dealer
Less credit period given by the
4 2014 80.56 2
company for stocking brand
5 Bandhs and strikes 709 28.36 10
6 High prices of pesticides 1966 78.64 3
7 Variation in pesticide brands 1689 67.56 6
No promotional support from
8 1344 53.76 9
companies
9 Performance issues of the brand 1547 61.8 7
10 Constant changing of the packaging 2220 88.8 1
Constant changing of the packaging is the top most problem faced by the dealers in
the study area with mean score of 88.8. Less credit period given by the company for
stocking brand, high prices of pesticides and payment problems from customers are the 2nd.
3rd and 4th ranked problems faced by the dealers with mean score of 80.56, 78.64 and 71.84
respectively. Dealers ranked late delivery of the company, variation in pesticide brands,
performance issues of the brand and company do not take care of the dealer as 5 th, 6th, 7th
and 8th problems with mean score of 70.32, 67.56, 61.8 and 59.48 respectively. No
promotional support from the companies and bandhs and strikes are considered as least
affecting problems faced by the dealers in the study area with rank of 9 th and 10th and mean
scores of 53.76 and 28.36 respectively.
4.4.8 Suggestions given by dealers for improvement in the marketing and distribution
of pesticides.
The dealers were asked to give their suggestions to improve the marketing and
distribution of pesticides in the study area. the ranks were assigned to the suggestions based
on the number of dealers giving a particular suggestion.
Table 4.35. Suggestions given by dealers for improvement in the marketing and
distribution of pesticides.
Company should give more offers and discounts, finance facilities should be from all
banks to the dealers and timely and proper distribution is required are the top most
suggestions, ranked as 1st, 2nd and 3rd in the study area. 4th, 5th, 6th and 7th ranked
suggestions are : company should provide credit facility for at least six months, company
personnel must spend more time in high sales area, company should know customer need
and pass the information to dealers and company must maintain regular contact with
customers. The last suggestion they have given is that company should give more
promotions in local language which received 8th rank.
Chapter V
SUMMARY AND CONCLUSIONS
The Indian agriculture sector remains the backbone of the nation’s economy
accounting for about 15.35 per cent of the country’s Gross Domestic Product, however
Indian agriculture is highly monsoon dependent and out of the 142 million hectares of net
sown area, only 45 per cent or 64 million hectares have access to irrigation facilities.
Apart from high dependency on monsoon and irrigation facilities, the situation becomes
critical as about 15-25 per cent potential crop production is lost due to pests, weeds and
diseases.Thus in order to enhance productivity, the usage of pesticides play a vital role
(CARE Ratings).
Top 20 agro chemical companies 80 per cent share in the Indian agro chemical
market (Agropages, 2018). Among these companies UPL ltd, Bayer crop science, Indofil
and Rallis India ltd have emerged as the market leaders by following strategies like strong
research capability, releasing of new brand chemicals and providing specific product
packages according to crop and market demand. In India Larger companies are acquiring/
entering into strategic alliances with smaller companies to increase their market reach.
This poses a threat to local companies who are forced to reduce prices in order to
compete, thereby leading to lower margins (Religare Institutional Research, 2017).
Objective of investigation
1) Trends in pesticide consumption in maize and rice crops in India, Telangana
and Nizamabad district.
2) The 4P’s of marketing of various pesticide companies and market share of
various companies in the study area.
3) General profile of farmers and analysis of farmer’s perception with regard to
various pesticide companies.
4) General profile of dealers and analysis of dealer’s perception with regard to
various pesticide companies.
For the study, four mandals in Nizamabad district were selected based on the
cultivated area of paddy and maize. From each mandal five villages were selected
based on the cultivated area of paddy and maize. From each village six farmers were
selected randomly. From each mandal five pesticide dealers were selected randomly.
Data was also collected from one salesperson each from three top MNC’s, domestic
companies and local companies in the study area. Thus the sample consisted of 120
farmers, 20 dealers and nine sales personnel. The data was collected through personal
interview method from both farmers, dealers and sales personnel with the help of pre-
tested schedules.
Various analytical tools were employed for analysis of collected data. As for the
analysis of factors affecting pesticide purchase, sources of information about pesticide,
effectiveness of promotional activities, problems of the dealers and their suggestions
and the problems of the farmers, Garrett Ranking was used. For calculation of trends in
pesticide consumption in India and Telangana Compound Growth Rate (CGR) was
used.
5.1 MAJOR FINDINGS OF THE STUDY
Trends in pesticide consumption
In the pesticide consumption India showed a significant compound growth rate
of 1.9 per cent during 2000-01 to 2014-15 and during the same period Telangana state
also showed an increase trend in the pesticide consumption with 2.9 per cent compound
growth rate.
4 P’s of Marketing Mix and market share
Product:- All the multinational companies had their own brand with unique
technical names, whereas most of the domestic companies products were same in
technical names but different in trade names. Local companies don’t have any specific
technical names products. These products are bio in nature.
Price:- The price of multinational companies products prices are high when
compared to domestic and local companies products because of unique formulations.
All domestic company products face in the same price range. Local companies’ prices
are very low because these companies want to penetrate into the market with low prices.
Place:- The extent of availability of multinational companies products is 100 per
cent in the study area. Domestic companies and local companies have 60- 80 per cent of
extent of availability in the study area.
Promotion:- Trainings, demonstrations, crash campaigns are major promotional
activities taken up by the multinational and domestic companies. Product literature,
posters, banners and dealer’s general meeting are the promotional activities taken up
multinational, domestic and local companies.
Market share:- Corteva, IIL, Nova argri tech are the market leaders in the
study area in the respective categories.
General profile of farmers and analysis of farmer’s perception with regard to
various pesticide companies.
Age:- 52 per cent of the farmers in the study area are above 40 years. 32 per
cent of farmers are between 35-40 years and 16 per cent of farmers are between 30-35
age group.
Educational qualification:- 61 per cent of farmers in the study area are studied
up to secondary school education and remaining farmers completed collegiate
education.
Place of purchase:- 91 per cent of farmers purchase required pesticide from
dealer’s outlets, remaining are purchasing from retailer’s outlets.
Usage pattern of pesticide:- The usage of pesticide is more in paddy crop with
20-23 litres of liquid formulation and 2-2.5 kg of powder form of pesticide used in
Kharif in comparison with other crops . Cotton and maize are the next crops which need
more pesticides. The usage is more in Kharif compared to Rabi.
Awareness of the farmers about various brands of pesticides:- All
respondent farmers are fully aware of multinational and domestic companies products,
where as they don’t have much awareness about local company products.
Information sources:- Progressive farmers, company sales personnel,
demonstrations and peer farmers are the most important sources of information to the
farmers about a particular brand of pesticide.
Factors influencing purchase of a particular brand:- Credit is most important
factor influencing purchase of a particular brand of pesticide, followed by price,
performance of product and brand image.
Problems faced by the farmers:- Non availability of credit facilities is top
most problem faced by the farmer in the study area. High price, imitation products,
quality issues and dealer’s wrong advice are the other problems faced by the farmers.
General profile of dealers and analysis of dealer’s perception with regard to
various pesticide companies
Age:- 80 per cent of dealers in the study area are in the age group of 35-40
years, 10 per cent of dealers are above 40 years and remaining are in the 30-35 age
group.
Educational level:- 80 per cent dealers in the study area are completed
secondary education, remaining have completed their college level education.
Business experience:- 60 per cent of dealers had the experience of 10-15 years
in the pesticide business in the study area. 10 per cent dealers had above 15 years
experience. 20 per cent dealers had below 5 years of experience in the pesticide
business. 10 per cent of dealers had a range of 5-10 years of experience in the pesticide
business.
Product lines dealt by dealers:- 90 per cent of dealers are dealing with
pesticides, fertilizers and seeds. Remaining are dealing with only pesticides and
seeds.
Parameters considered by companies to give dealership:- 100 per cent
dealers agreed that financial strength of dealer is the most important factor for getting
dealership. Accessibility of the shop to the customers is considered as important factor
by 80 per cent dealers for getting a dealership. For 75 per cent of dealers payment terms
is the neutral factor for dealership. Experience of the dealers is the moderate factor
moderate factor for getting dealership as stated by 80 per cent of dealers. There is no
need for any educational qualification for getting a dealership as said by 100 per cent
dealers.
Credit facilities:- 100 per cent dealers said that the company should give credit
period of 1-6 months without any strict terms and conditions.
Awareness of dealers about various brands of pesticides:- All the dealers
have a clear awareness on multinational and domestic companies products, but they
don’t have a clear awareness on local companies products.
Rating of attributes of companies by dealers:- Most of the dealers said that
when compared to multinational companies domestic companies and local companies
are giving more credit facilities. When it comes to training to dealers multinational
companies are top in this attribute when compared to domestic and local companies. All
three companies are good in the promotional activities said by dealers. Local companies
are giving more dealer’s margin than multinational companies and domestic companies.
The extent of availability of multinational companies and domestic companies are 100
per cent whereas the extent of availability of local companies up to 75 per cent. All
three companies give awards to the dealers but in these local companies are a step ahead
in giving awards to the dealers. Multinational companies put strict terms and conditions
to the dealers in purchase of stock, whereas domestic companies and local companies
terms and conditions are flexible change according to the dealer’s requirements.
Factors considered by farmers in purchasing of pesticide from dealer’s
point of view:- In dealer’s point of view credit is the most important factor that farmer
considers in purchase of a particular brand of pesticide. Low price, easy availability of
product and information regarding the product are the next important factors considered
by the farmers in purchase of a particular brand of pesticide in dealer’s point of view.
Promotional tools that company adopts:- Trainings, pamphlets and
demonstrations are the major promotional tools adopted by the companies in the study
area. Promotional tools like news papers/ magazins advertisements, television/ radio
advertisements and kisan melas/ fairs are also adopted by the companies in the study
area.
Problems faced by the dealers:- constant changing of the packaging is the
ranked first problem by the dealers in the study area. Less credit period given by the
company for stocking the brand and high prices of pesticides are the 2nd and 3rd ranked
problems faced by the dealers in the study area. Payment problems from customers, late
delivery of the company and variation in pesticide brand are also problems faced by the
dealers in the study area.
Suggestion given by dealers:- Company should give more offers and discounts
is ranked as highest among suggestions given by the dealers. Finance facilities should
be from all banks to the dealers, timely and proper distribution is required are the 2 nd
and 3rd ranked suggestions given by the dealers. Company should provide credit facility
for at least six months, company personnel must spend more time in high sales area,
company should know customer need and pass the information, company must maintain
a regular contact with customers and company should give more promotions in local
language are the 4th, 5th, 6th, 7th and 8th ranked suggestions given by the dealers.
5.2 CONCLUSIONS
• In the study area farmers and dealers are educated and these are in a
position to understand the promotional activities of the companies.
• Multinational companies products are rated as the best by the dealers and
farmers. Farmers are not happy with the quality of products of local
companies.
5.3 SUGGESTIONS
• The companies may take feedback and try to maintain good contact with the
customers on dealership from time to time so as to know the behaviours of the
dealers.
• The companies may organise a campaign for the dealers, so that companies’
officials can explain/address various issues which are related to customer
satisfaction.
• Since company personnel are the second most important source of information
for farmers, companies can concentrate on creating more interactions
between the farmers and company personnel.
• The companies while promoting their products, can also focus on exposing
imitation products and spurious products.
Adejumo, O.A., Ojoko, E.A. and Yusuf. 2014. Factors Influencing Choice of Pesticides
Used by Grain Farmers in Southwest Nigeria. Journal of Biology, Agriculture
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Bandara, B.M., Abeynayake, D.P., Bandara, N.R and Anjalee, G.H.I. 2013. Farmer’s
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