On Course Project for Market Research to

Facilitate Local Business Growth

-Initial Report

Marketing Research in Food and Agribusiness

ABM-135

SUBMITTED TO:
Dr. M. Mahipal Reddy

GROUP -8
C. Vennala – F23012
C. Neha Reddy - F23013
E. Akhila- F23016
G. Kaveri – F23018
K. Shiva Prasad – F23028
Local business selected: Agri input business (fertilisers and pesticides).
Reasons for selecting the business:
 Market Dynamics: Managing a store that sells pesticides and fertilizers provides
insight into the workings of the regional agriculture market. This entails researching
variations in demand, seasonal patterns, and elements affecting farmers' purchasing
decisions.
 Identification of Customer Needs: By concentrating on pesticides and fertilizers, we
can examine the unique requirements and preferences of farmers with regard to
brands, product categories, costs, and value-added services. Comprehending these
facets is imperative for efficiently fulfilling customer requirements.
 Competitive Analysis: By looking at the market for fertilizers and pesticides, we can
determine which players are currently there as well as their advantages,
disadvantages, and tactics. Finding market gaps and opportunities for differentiation is
made easier with the aid of this analysis.
 Regulatory Compliance: Selling pesticides and fertilizers requires adhering to a
number of laws and safety requirements. Examining the regulatory landscape
facilitates comprehension of the legal
 Profitability Assessment: Examining elements including profit margins, overhead
expenses, inventory control, and pricing strategies is necessary to determine whether a
fertilizer and pesticide store can remain financially viable. Choices about the viability
and expansion of the business are influenced by this evaluation.
 Possibilities and Difficulties Identification: We seek to identify potential obstacles
through market research, including supply chain problems, seasonality, environmental
concerns, and technological advancements. We look for chances to innovate, stand out
from the competition, and grow the market at the same time.
 Development of Marketing Strategies: Equipped with knowledge of the regional
agriculture market, we are able to create focused marketing plans that will efficiently
advertise our line of pesticides and fertilizers. These tactics include branding,
promotions, advertising, and digital marketing campaigns that are specifically
designed to appeal to our target market of nearby farmers.

Objective:
The primary objective of this market research project is to assist local businesses in
overcoming their current challenges and enhancing overall performance. This project aims to
provide valuable insights, actionable recommendations, and strategic guidance to contribute
effectively to the growth and sustainability of local businesses.

Challenges faced by business:

 Seasonal Demand: The need for pesticides and fertilizers typically peaks during the
planting and growing seasons. It may be difficult to control inventory to satisfy
varying demand without going overboard or running out of stock.
 Competitive Market: The market for fertilizers and pesticides is often competitive,
with multiple suppliers vying for customers' business. Local businesses must
 differentiate themselves through factors such as product quality, customer service, and
pricing.
 Supply Chain Management: Ensuring a reliable supply of fertilizers and pesticides
from manufacturers and distributors is crucial. Disruptions in the supply chain, such
as transportation delays or shortages, can lead to inventory shortages and lost sales.
 Price Sensitivity: Farmers are often price-sensitive and tend to negotiate hard on the
price of Agri inputs, which can impact the margins of Agri input dealers.
 Trust Issues: Farmers often lack trust in Agri input dealers due to concerns about
product quality, authenticity, and efficacy. This can lead to a lack of repeat business
and referrals.
 Credit Issues: Farmers often struggle to pay for Agri inputs upfront and may require
credit facilities. However, Agri input dealers often face challenges in assessing the
creditworthiness of farmers and managing credit risks.

Research methodology:
Qualitative method (Primary research):
 Observation and interpretation of objectives, exploratory research designs.
 Technique/tool is interviews, conversation, survey, questionnaires

Review of literature (Secondary research):

 Engaging with local communities and stakeholders is critical for building trust and
maintaining social license to operate. Studies highlight the importance of transparent
communication, participatory decision-making, and proactive engagement in
addressing community concerns about pesticide use, environmental impacts, and
public health (Mancini et al., 2018).
 Several studies emphasize the significant challenges local businesses encounter in
complying with stringent regulations governing the sale, handling, and use of
pesticides and fertilizers. Regulatory requirements, such as obtaining licenses,
adhering to labelling guidelines, and managing waste disposal, impose financial and
administrative burdens on businesses (Marshall et al., 2018).
 Challenges and Opportunities in the Pesticide Industry: A Review" by Smith et al.
(2020) This review examines the regulatory, environmental, and market challenges
confronting the pesticide industry. It discusses the complexity of pesticide regulation
and the need for companies to navigate evolving standards and requirements. The
review highlights the growing public concern over pesticide use and its impacts on
human health and the environment, emphasizing the importance of sustainable pest
management practices. Additionally, it explores market dynamics, including global
trade issues, emerging technologies, and consumer preferences, shaping the future of
the industry.
 Research indicates that local pesticide and fertilizer businesses face intense
competition from larger suppliers and retailers, which often have greater economies of
scale and marketing resources. Price pressure and market saturation make it
challenging for small businesses to differentiate themselves and retain customers
(Rudel et al., 2019).