Transcript
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“Farmers and Dealers Relationship Management’ – Case study of YARA Fertilizers in Nashik District”.
Under the Guidance of Mr. Alok Ranjan
Presented by, Mr. Atul B. Dukare
Mr. Pavan R. PatilPGDM-ABM, B.Sc. Agricultural Biotechnology
Centre for Management EducationUdaybhansinhji Regional Institute of Cooperative Management,
Sector- 30, Gandhinagar, Gujarat(Ministry of Agriculture, Government of India)
YARA International ASAYARA Fertilizers India Private Limited
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YARA FERTILIZERS INDIA PRIVATE LIMITED
Company Profile
YARA International ASA
• Established as Norsk Hydro in 1905, demerged as YARA International ASA in 2004.
• President and CEO since 2008: Jorgen Ole Haslestad.• Headquartered in Oslo, Norway: Listed on the Oslo Stock Exchange• Global presence with operations and offices in more
than 50 countries and sales to more than 150 countries.
Headquarter India:#402, Suyog Fusion Dhole Patil Road Sangamwadi Pune 411 001 Tel: +91 20 4130 2585 / 86 / 87 Fax: +91 20 4130 2589
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ObjectivesFarmers:• To study awareness about YARA’S fertilizers.• To study the awareness of the drip irrigation system among farmers. • To study awareness about soil testing.• To identify major competitors in fertilizers industry to the YARA.• To ascertain popular product families in YARA.• To study awareness about tools and services provided by YARA.• To study crop nutrition knowledge level.
Dealers:• To identify major competitors in fertilizers industry to the YARA in
Nashik market.• To study the scope of the YARA Fertilizer offering in Nashik district. • To study the satisfaction level of the Dealers. • To formulate strategies for improvement.
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IntroductionFertilizer: “Any material, organic or inorganic, natural or synthetic,
which supplies one or more of the chemical elements required for the plant growth”.
Purpose of fertilizers:• To supplement what has been eaten up by the plants.• To give an additional supply of tonic and good food, so that
they may grow more healthy and produce a better yield.• They help to maintain the PH value of the soil in the
vicinity of 7 to 8 and thereby facilitate optimum growth and health
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CRM for Agricultural organizations
CRM is the alignment of business strategies, organizational structure and business culture, based on customer information and information technology, in order that all contacts with clients meet their needs and achieve business benefit or profit.
Objective of CRM- Use of customer data for management decision-making;
Market approach; Tactics used to develop and maintain relationship with customers; Assessment of the technological infrastructure that is currently used.
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Industry overview
2009-2010 2011-2012 2012-2013 2013-2014 2014-20150
50
100
150
200
250
300
Fertilizer consumption in Lakhs MTfoodgrain production in MT
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Vision: As a global chemical company YARA’S vision is to be an Industry Shaper, aiming to set industry standards and being a positive force, developing the
industry through performance and growth.
Mission: YARA’s mission is to strive for better yield, delivering good returns for farmers,
industrial customers, its owners and society at large.
Strategy: YARA’s corporate strategy is based on profitable and sustainable growth, building on an unrivalled market position and a unique, flexible business model united with global corporate citizenship. The strategy is the company’s roadmap for industry
shaper performance and long-term value creation
YARA INTERNATIONAL
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Product Profile of YARA Fertilizers
YaraMila Complex (12:11:18)
Balanced source of nitrogenComposition of fertilizer:- Nitrogen N - 12% - Phosphorus P - P ₂ O ₅ - 11%- Potassium K - K ₂ O - 18%- Magnesium MgO - 2.7%- Sulphur S - 8%, Iron Fe-0.2%- Boron B - 0.015%, Manganese Mn- 0.02%-Zinc Zn – 0.02
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YaraLiva Nitrabor
• Nitrogen (N) Total15.0% • Nitrogen (N) Nitric 14.4%• Nitrogen (N) Ammonia1.1%• Calcium (Ca), Soluble in
water19.0%• Calcium oxide (CaO), Soluble in
water 27%
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YaraLiva Calcinit
YARA Liva Calcinit is a fully water soluble nitrogen and calcium fertilizer. It is a free flowing, fine granular or prilled material which dissolves quickly in water without any residues.
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Krista MAP (12:61:0)
Nitrogen (N) Total 12.0%
Nitrogen (N) Ammonia 12.0%
Phosphorus pentoxide (P2O5)
Soluble in water and
Ammonium Citrate
61.0%
Phosphorus (P2O) 26.6%
Solubility (20 ° C) 360 g / l water
EC (1 g / l at 25 ° C) 0.8 mS / cm
pH (1% solution) 4.5
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Krista SOP • Potassium (K2O), Water
Soluble 52.0%• Potassium (K), Soluble in
water43.0%• Sulfur trioxide (SO3) Soluble
in water 45.0%• Solubility (20°C)110g/lwater• EC (1g/lat 25°C)1.3 mS/cm• pH (1% solution)4.5
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Phosphorus pentoxide (P2O5) Soluble in water and Ammonium Citrate
52.0%
Phosphorus (P2O) 22.7%Potassium (K), Soluble in water
34.0%
Sulfur (S), Soluble in water
28.2%
Solubility (20 ° C) 230 g / l water
EC (1 g / l at 25 ° C) 0.7 mS / cm
pH (1% solution) 4.6
Krista MKP (0:52:34)
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Delta spray(19:19:19)
Delta spray 19-19-19 is a fully water soluble NPK fertilizer with balanced
ratio of nutrients.
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YaraVita Zintrac
YaraVita Zintrac is a highly concentrated flowable zinc
formulation containing 8-10 times more zinc than a typical liquid chelate and 3-4 times that of
sulphate or nitrate based liquids.
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Research Methodology• Research area: Nashik (Maharashtra)• Data Collected: 5000+ (Farmers)• Sample size: 5106 &100 Farmers : 50 dealers/Retailer• Research Instrument: Questionnaires• Method of contact: Personal Interview Farmer meetings Telephonic Interview.
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Map of Nashik District
Data interpretation
Farmers Survey
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Age of the Respondents
Less Than 3023%
30-4048%
41-5026%
More Than 503%
Graph no. 4: Age
For 100 Farmers
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Cultivated crops
Fruits Vegetables Fruits & Vegetables Fruits & Plantaion Crops
551
123
4299
133
Cultivated Crops Cultivated Crops
For 5106Farmers
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Crop Nutrition knowledge level
0%10%20%30%40%50%60%70%80%90%
100%
Low 569
Medium 4164
High 346
Graph no. 6: Crop Nutrition Knowledge Level
Nutrition Knowledge Level
Num
ber
of fa
rmer
s
For 5106 Farmers
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Farmers segment
Traditional Cost Oriented Business Innovative0
500
1000
1500
2000
2500
30002572
101
1933
500
Segment Of Farmers
Graph no: 7: Farmers segment
For 5106 Farmers
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Decision Maker
Owner Purchase Group Agronomist 0
500
1000
1500
2000
2500
3000
3500
4000
45003901
173
1031
Decision Maker For 5106 farmers
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Irrigation Type
Flood Drip
Flood & DripSprinkler
0500
100015002000250030003500
104
1614
3388
0
Graph no. 9: Irrigation Type Irrigation Type
For 5106 Farmers
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Soil Testing
Yes No0
500
1000
1500
2000
2500
3000
2938
2169
Soli Testing
Graph no: 12: Soil testing
For 5106 Farmers
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Duration of soil testing
after 4 Months after 8
Months after 12 Months after 16
Months more than 16 months
0
200
400
600
800
1000
1200
14001220
1359
247
1 111
Duration of soil testing For 5106 Farmers
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Graph no. 14: Soil test is beneficial
Soil testing is beneficial (it saves extra fertilizer dose)
Yes No0
102030405060708090
86%
14%
Soil testingFor 100 Farmers
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Buying Behaviour
Better Result Cheaper Price
41
59
Graph no: 15. Buying Behavior Buying Behaviour
For 100 Farmers
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Competitor Brand
Series10 50 100 150 200 250
78
219
46
209
40
61
20
36
Brand
Cham-bal
Coroman-dal
Nagarjuna
Deepak
RCF
Vanita
Zuari
Graph no: 16. Competitors Brand
For 673 Framers + 36 PR Agro= 709 (YARA non users)
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YARA Relationship
Yes No0
50010001500200025003000350040004500
Graph no. 17: YARA Relationship N
o of
Far
mer
s
For 5106Farmers
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YARA families preferenceGraph no: 18. Preference to YARA families
Mila Liva Vita Delaspray Krista0
20
40
60
80
100
120
For 100 Farmers
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Sources of Awareness
Progressive Farmer40%
Agro Service Centre39%
Other6%
YARA Agronomist15%
Graph no. 19: Sources of Awareness of YARA
For 100 Farmers
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Pricing of YARA Fertilizers
Low5%
Affordable25%
High70%
Graph no. 20: Price of YARA fertilizer
For 100 Farmers
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Availability at ASC
Always
Sometimes
Never
0 10 20 30 40 50 60 70 80
Graph no: 21. Availability
For 100 Farmers
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Services by YARA Agronomist
VERY GOOD GOOD AVARAGE Bad Very Bad 0
10
20
30
40
50
60
70
80
90
4
83
13
0 0
Graph no. 22: Services by YARA agronomist
Services by yara agronomist
For 100 Farmers
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Tools provided by YARAGraph no: 23. Tools by YARA
YARA Analytical Service
Check IT N-Tester ZIM0
10
20
30
40
50
60
70
80 74
26
0 0
Tools provided by Yara
Graph no: 23. Tools and Services provided by Yara
For 100 Farmers
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Trust towards YARA
YES79%
NO1%
Can't say 20%
Graph no. 24: Do you trust YARA ?
For 100 Farmers
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Do you suggest YARA to others
Graph no: 25. Suggestion of YARA to others
YES NO0
102030405060708090
90
10
Do you suggest to use YARA fertilizers product
For 100 Farmers
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Dealer survey• Number of YARA dealers : 50
40
Post Graduate
Graduate
Agri Diploma
0 5 10 15 20 25 30 35 40
Graph no. 26: Dealers education
Education of the dealers
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No of farmers come to shop
>50 51-100 101-150 151<0
2
4
6
8
10
12
14
16
18
20
18%
11%
10%11%
Graph no. 28: No of farmers come to shop
No of farmers come to shop
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Way of purchase of the Yara fertilizer by the dealers
Cash Credit Both0
5
10
15
20
25
Cash ; 8
Credit; 20Both; 22
Graph no. 29:Way of purchase
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Dealers Keep Different fertilizer of the Yara
YaraMila Complex
YaraLiva Nitrabor
Krista K
Deltaspray
YaraVita Zintrac
48
48
47
48
47
2
2
3
2
3
Graph no: 30. Dealers keep different Fertilizer of YARA No Yes
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Dealers rating to the quality of the Yara fertilizer
Very Good Good Satisfactory Poor05
101520253035404550
Graph no:31: Dealers feel about quality of Yara fertil-izer
Dealers feel about quality of Yara fertilizer
Satisfaction Level
No
of R
espo
nden
ts
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Reason behind more sale of the fertilizer
88% Better Result
12% Cheaper Price
Graph no. 32: Reason Behind More SaleBetter result Cheaper price Farmer requirement
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Dealers rating to ConsultantsGraph no. 35: Dealers rating to the answers of the YARA sales consultant
Excellent Good Average Poor0
5
10
15
20
25
30
35
17%
33%
0% 0%
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Display material given by the Yara fertilizer company to the dealers
Yes78%
No22%
Graph no. 36: Display material given to the dealers
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Factors that farmers consider while purchasing fertilizer according to dealers.
Price
Brand
Better results
Recommendation from ASC
0 5 10 15 20 25 30
30
5
12
3
Graph no: 38. Preference while purchasing
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Discount from YARA
Cash Discount
Trade Discount
Quantity Discount
0 5 10 15 20 25 30 35 40 45
5
40
5
Graph no. 39: Discount from YARA
Discount from Yara
Dealers satisfaction with the dealership of Yara
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Facilities that dealer want for the promotion of Yara fertilizer
Free tri
p
Price d
iscou
nt
Quanti
ty dis
coun
t
More cr
edit p
eriod
Display
mate
rial
More cr
edit p
eriod
0
5
10
15
20
25
03
20
8
12
7
Graph no. 40: Dealers want the facilities
Dealers want the facilities
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According to the dealers company should do the different things for marketing of fertilizers
Reduction in price6% Field demos
8%Farmers meet-
ing6%
Field demos & Farmers meeting
80%
Graph no. 41: Company should do this
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Through the detail survey of Farmers relates with fertilizers use and YARA’s awareness with satisfaction from its products, we have got some findings which is mentioned below:Farmers Survey: Age- From the whole survey I observed 23% Youngsters involved in
Agriculture.• Recommendation-Hence, it is suggested that focus and aware them to new
technology of YARA such as CHECK IT, YARA ANALYTICAL SERVICE etc.
Crop nutrition knowledge- Crop nutrition knowledge is good. Out of 5106 farmers 346 farmers having high crop nutrition knowledge level and 4164 have medium.
• Recommendation-Remaining farmers having low Crop nutrition knowledge hence, it is suggested that reach non user farmers of YARA and arrange more and more KNOWLEDGE GROWS SEMINAR.
Findings and Recommendations
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Decision maker- 3901 Cases Owner is decision maker, 1031 farmers decisions taken by Agronomist.
• Recommendation- We observed that most of innovative farmers take guidance from agronomist for crop nutrition. Numbers of agronomist are not much more and he can’t reach to every farmer hence, Increase in reach is necessary.
Soil Testing- We observed 2938 farmers always do soil testing, 2168 of the farmers does not test soil.
• Recommendation- Increase awareness about soil testing and promote YARA soil testing service. Text message service for farmers to remind them for soil testing for better result.
Buying Behavior- 41% farmers think about better results of fertilizers and 59% think about price. At the time of survey many farmers are suggest the quality of YARA product is good but price is too much high.
• Recommendation- So, Need to tell them reasons behind it. Price is high because we providing good quality of material.
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Other Players- Out of 709 non user of Yara, 219 farmers using Vanita, 209 users of Deepak Fertilizers and 78 users of Zuari and 61 of Coromandal. RCF, Chambal and Coromandal having 46 and 20 users respectively.
• Recommendation- Vanita and Deepak are main competitors so there is need to work more on promotional activity and expand the business in other state also. Need to concentrate on price factor.
Sources of awareness of YARA- 40% of the farmers firstly know about YARA fertilizer from progressive farmers, 39% of the farmers know about it from Agro. Service center and 15% and 6% farmers aware from YARA agronomist and summer trainee/other respectively.
• Recommendation- To convince farmers Progressive farmers plays important role so company should be focus on that Progressive farmers.
Pricing - 70% of the farmers said that price of the YARA fertilizers is high, 25% of the farmers said price is affordable and 5 said it is low.
• Recommendation- To aware farmers why YARA Product price is high? And convince them according to that.
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Findings from the Dealer survey:
Availability- 48 dealers/retailers keep YARA Mila Complex, YARA Liva Nitrabor, Deltaspray. 2 does not keep it. 47 dealers keep Calcinit,Krista K ,Krista MAP, Krista SOP, Krista MKP , YARA vita Zintrac and 3 does not keep it.
• Recommendation- We observed that dealers want to keep all product range but sometimes due to unavailability they unable to maintain all.
Display Material by YARA- 39 dealers was having display material of YARA fertilizer in their shop and 11 dealers do not have it.
• Recommendation- After survey I concluded company gives display material but it does not impact much more, dealers demanding for digital and attractive flex.
Reason behind more sale- 44 dealers said that more sale of the particular brand in their shop is due to better results and 6 dealers said it is due to cheaper price of the fertilizer.
• Recommendation-As per Survey quality of YARA product was good just maintain its price and quality.
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Preference while purchasing-38 dealers said that farmers firstly want better results, 12 dealers said that farmers secondly consider about the price of the fertilizer.
Discount-40 dealers and retailers want trade discount from YARA, 5 wants quantity and cash discount from company
• Recommendation-Many Dealers wants trade discount from company so, if dealer make a onetime payment in cash give somewhat extra discount.
Things need to do for increasing sale- 39 Dealers said both farmers meeting and field demos must conduct by company. According to 3 dealers farmers meeting must conduct by the company for increase awareness and sales, 4 dealers said field demos should be given and 3 dealers said price of the fertilizer should be decrease.
• Recommendation- I observed farmers meeting and field demos helps to increase the sale so focus on this type of things.
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SWOT Analysis
Strength
• Strong marketing chain• International Brand• High skill working staff/ agronomists• Quality of fertilizers
Weakness
• Lack of awareness in all farmers• Unavailability of database of farmers• Different prices of fertilizers according to dealers • Delay in the payment of by the dealers
Threats• Strong competitors• New entries in fertilizer market
Opportunity
• Wide availability of markets• Can capture market of the all crops growers of
sugarcane, onion and vegetables• Enlarge the working area other Districts as well as
States• To achieve the large scale of market share in fertilizer
industry
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Conclusion• After all, Nashik is good in Grapes production as well as Tomato, Onion and
vegetable production• The productivity and fertility of the land is well compare than the other
districts with availability of irrigation facilities in this District• Hence, there is very wide scope for penetration in this region and need to
enlarge area.• There are many companies which are putting their efforts to prove how their
products fertilizers are best than the others. • YARA is one of the well developed International company, which is entered
strongly in this region to capture the more market share.• Initially company needs to increase awareness of its products in farmers or
door step of farm or mainly in ASC in other states. • YARA have lots of scope to capture this market on the basis of its quality
fertilizers rather than the others. As per the research YARA should concentrate on its prices of fertilizers which are the higher than the others.
• On the basis of quality fertilizers YARA is growing very fast in this area, this are the good sign for the company’s future.
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What we learnt? • Farmers and dealers relationship management• Fertilizer market• Marketing strategies• Brand development• Sales forecasting• Inventory management
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Thank you
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