Vous êtes sur la page 1sur 59

Marketing of Fertilizers by IFFCO

ACKNOWLEDGEMENT

I feel enriched with knowledge and experience gained during my training at Indian Farmers Fertilisers Cooperative Limited. The guidance and cooperation received during my training is invaluable. I take this opportunity to express my gratitude and deep regards to my guide Mr N.K.Salhotra Chief Manager (Marketing) for giving my spirit a boost and his continuous support and inspiration. My sincere appreciation to all the people at IFFCO who were helpful at all conceivable times, for their fruitful and informative discussions on numerous aspects of the project and encouragement provided by them. Im extremely thankful to Mrs.RITU BAJAJ (Faculty guide) BPIT, ROHINI, DELHI who gave me useful suggestions throughout and extended all possible help during the preparation of the report. Lastly I would like to thank all those people who have directly or indirectly helped me during the project.

TARUN DIXIT

Bhagwan Parshuram Institute Of Technology

Page 1

Marketing of Fertilizers by IFFCO

Executive Summary:
IFFCO is one of the largest chemical fertilizer producers in the country/Asian region over a period of 25 years. IFFCO has been concentrating in the production and marketing of nitrogen phosphorus and potassium (NPK) complex and urea and introduced Di-ammonium Phosphate (DAP) in 1981. T h e s t u d y m a i n l y i n v o l v e s s t u d yi n g a n d analyzing the current marketing strategy system and identifying the gaps between the current state and the desired-in-state. The general methodology adopted for study was primarily collection of primary dative; Survey based. Some s e c o n d a r y sources like company records, manuals, books, accounting and internet were also tapped. The study was undertaken to understand that how implementation of marketing strategies and Promotional programs initiated by IFFCO. As to study about these strategies you need to learn about farmers needs and behaviour in order to develop stronger relationship with them. Good customer relationship are at the heart of business success. Today it is the hardcore fact that understanding your customer needs and fulfilling them will help you to establish your business in more firm manner. Implementation of marketing strategy by IFFCO not only means maintaining a good relationship with the farmers but also seeking a sustainable position and maintaining a brand image in the market. In this project different ways are used to find out the needs of the farmers in respect of the fertilizers. It is conducted to check the expectations of the farmers from the fertilizers and the IFFCO. Various methods are used to collect the data from the farmers in order to note down there response such as primary and secondary data collection method are used. Further the data analysis and interpretation is done from the data collected from the different farmers in the form of questionnaires and interviews conducted. Data analysis is done with the help of various charts and tools and techniques are used. In this the various research findings are noted in order to be understand the various marketing strategies which are used for promotion and distribution of the IFFCO products.

Bhagwan Parshuram Institute Of Technology

Page 2

Marketing of Fertilizers by IFFCO

TABLE OF CONTENTS
TOPICS Certificate(Company) Certificate(Institute) Declaration Acknowledgement Executive Summary PAGE NO. i ii iii iv v 1. 6.

Chapter1. Introduction Chapter2. Industry Profile 2.1. Fertilizer as Industry 2.2. Competitors of IFFCO 2.3. Joint Venture Chapter3. Company Profile 3.1. IFFCO at a glance 3.2. Mission and Vision 3.3. SWOT Analysis Chapter4. Objectives of Study Chapter5. Research methodology Chapter6. Marketing strategies in IFFCO Chapter7. Data Analysis and Interpretation Chapter8. Research Findings Chapter9. Conclusion Chapter10.Recommendation and Suggestions Chapter11.Limitations of the study Chapter12.Annexture 12.1. Questionnaires 12.2. Bibliography

13.

23. 24. 25. 32. 50. 52. 53. 54. 55.

Bhagwan Parshuram Institute Of Technology

Page 3

Marketing of Fertilizers by IFFCO

INTRODUCTION OF MARKETING STRATEGIES:

A Marketing strategy is most effective when it is an integral component of firm strategy, defining how the organization will successfully engage customers, prospects and competitors in the market arena. Corporate strategies , corporate mission and corporate goals. As the customer constitutes the source of a companys revenue, marketing strategy is closely linked with sales. A key component of marketing strategy is often to keep marketing in line with a companys overarching mission statement. Basic Theory: 1. Target Audience 2. Proposition/Key Element 3. Implementation

Types of Strategies:
Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies: o Leader o Challenger o Follower o Nicher Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow. o Product differentiation (broad) o Cost leadership (broad) o Market segmentation (narrow)

Bhagwan Parshuram Institute Of Technology

Page 4

Marketing of Fertilizers by IFFCO

Innovation strategies This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: o Pioneers o Close followers o Late followers Growth strategies In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers: o Horizontal integration o Vertical integration o Diversification o Intensification

Strategic Models:
Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy. There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges. The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps.

Bhagwan Parshuram Institute Of Technology

Page 5

Marketing of Fertilizers by IFFCO

INDUSTRY PROFILE:
FERTILIZERS AS INDUSTRY:
Fertilizer (or fertiliser) is any organic or inorganic material of natural or synthetic origin (other than liming materials) that is added to a soil to supply one or more plant nutrients essential to the growth of plants. A recent assessment found that about 40 to 60% of crop yields are attributable to commercial fertilizer use. Fertilizers typically provide, in varying proportions:

six macronutrients: nitrogen (N), phosphorus (P), potassium (K), calcium (Ca), magnesium (Mg), and sulfur (S); seven micronutrients: boron (B), chlorine (Cl), copper (Cu), iron (Fe), manganese (Mn), molybdenum (Mo), and zinc (Zn).

There are two types of fertilizers commonly available in market:


1. Inorganic fertilizer (synthetic fertilizer) Fertilizers are broadly divided into organic fertilizers (composed of enriched organic matterplant or animal), or inorganic fertilizers (composed of synthetic chemicals and/or minerals). Inorganic fertilizer is often synthesized using the Haber-Bosch process, which produces ammonia as the end product. This ammonia is used as a feedstock for other nitrogen fertilizers, such as anhydrous ammonium nitrate and urea. These concentrated products may be diluted with water to form a concentrated liquid fertilizer (e.g. UAN). Ammonia can be combined with rock phosphate and potassium fertilizer in the Odda Process to produce compound fertilizer. The use of synthetic nitrogen fertilizers has increased steadily in the last 50 years, rising almost 20-fold to the current rate of 100 million tonnes of nitrogen per year. The use of phosphate fertilizers has also increased from 9 million tonnes per year in 1960 to 40 million tonnes per year in 2000. A maize crop yielding 6-9 tonnes of grain per hectare requires 3150 kg of phosphate fertilizer to be applied, soybean requires 2025 kg per hectare. Yara International is the world's largest producer of nitrogen based fertilizers.

Bhagwan Parshuram Institute Of Technology

Page 6

Marketing of Fertilizers by IFFCO

Problems with inorganic fertilizer


Trace mineral depletion

Many inorganic fertilizers may not replace trace mineral elements in the soil which become gradually depleted by crops. This depletion has been linked to studies which have shown a marked fall (up to 75%) in the quantities of such minerals present in fruit and vegetables.

2.

Organic Fertilizers

Organic fertilizers include naturally occurring organic materials, (e.g. manure, worm castings, compost, seaweed, guano), or naturally occurring mineral deposits (e.g. saltpeter).

Benefits of organic fertilizer


Organic fertilizers have been known to improve biodiversity (soil life) and long-term productivity of soil, and may prove a large depository for excess carbon dioxide. Organic nutrients increase the abundance of soil organisms by providing organic matter and micronutrients for organisms such as fungal mycorrhiza (which aid plants in absorbing nutrients), and can drastically reduce external inputs of pesticides, energy and fertilizer, at the cost of decreased yield.

Disadvantages of organic fertilizers


Organic fertilizers may contain pathogens and other disease causing organisms if not properly composted Nutrient contents are very variable and their release to available forms that the plant can use may not occur at the right plant growth stage Organic fertilizers are comparatively voluminous and can be too bulky to deploy the right amount of nutrients that will be beneficial to plants More expensive to produce not eco friendly.

Comparison with inorganic fertilizer


Organic fertilizer nutrient content, solubility, and nutrient release rates are typically all lower than inorganic fertilizers. One study found that over a 140-day period, after 7 leachings:

Organic fertilizers had released between 25% and 60% of their nitrogen content
Page 7

Bhagwan Parshuram Institute Of Technology

Marketing of Fertilizers by IFFCO

Controlled release fertilizers (CRFs) had a relatively constant rate of release Soluble fertilizer released most of its nitrogen content at the first leaching

In general, the nutrients in organic fertilizer are both more dilute and also much less readily available to plants. According to the University of California's integrated pest management program, all organic fertilizers are classified as 'slow-release' fertilizers, and therefore cannot cause nitrogen burn. Organic fertilizers from composts and other sources can be quite variable from one batch to the next.Without batch testing, amounts of applied nutrient cannot be precisely known. Nevertheless they are at least as effective as chemical fertilizers over longer periods of use.

Negative environmental effects:


1. Water quality 2. Eutrophication The nitrogen-rich compounds found in fertilizer runoff is the primary cause of a serious depletion of oxygen in many parts of the ocean, especially in coastal zones; the resulting lack of dissolved oxygen is greatly reducing the ability of these areas to sustain oceanic fauna.[45] Visually, water may become cloudy and discolored (green, yellow, brown, or red). 2. Blue Baby Syndrome High application rates of inorganic nitrogen fertilizers in order to maximize crop yields, combined with the high solubilities of these fertilizers leads to increased runoff into surface water as well as leaching into groundwater. The use of ammonium nitrate in inorganic fertilizers is particularly damaging, as plants absorb ammonium ions preferentially over nitrate ions, while excess nitrate ions which are not absorbed dissolve (by rain or irrigation) into runoff or groundwater. 3. Soil acidification Nitrogen-containing inorganic and organic fertilizers can cause soil acidification when added. This may lead to decreases in nutrient availability which may be offset by liming. 4. Persistent organic pollutants Toxic persistent organic pollutants ("POPs"), such as Dioxins, polychlorinated dibenzo-p-dioxins (PCDDs), and polychlorinated dibenzofurans (PCDFs) have been detected in agricultural fertilizers and soil amendments[53]
Bhagwan Parshuram Institute Of Technology Page 8

Marketing of Fertilizers by IFFCO

5. Heavy metal accumulation The concentration of up to 100 mg/kg of cadmium in phosphate minerals (for example, minerals from Nauru and the Christmas islands increases the contamination of soil with cadmium, for example in New Zealand. 6. Radioactive element accumulation Uranium is another example of a contaminant often found in phosphate fertilizers (at levels from 7 to 100 pCi/g). Eventually these heavy metals can build up to unacceptable levels and build up in vegetable produce. Average annual intake of uranium by adults is estimated to be about 0.5 mg (500 g) from ingestion of food and water and 0.6 g from breathing air. 7. Atmosphere Global methane concentrations (surface and atmospheric) for 2005; note distinct plumes.Methane emissions from crop fields (notably rice paddy fields) are increased by the application of ammonium-based fertilizers; these emissions contribute greatly to global climate change as methane is a potent greenhouse gas. Through the increasing use of nitrogen fertilizer, which is added at a rate of 1 billion tons per year presently to the already existing amount of reactive nitrogen, nitrous oxide (N2O) has become the third most important greenhouse gas after carbon dioxide and methane. It has a global warming potential 296 times larger than an equal mass of carbon dioxide and it also contributes to stratospheric ozone depletion. Storage and application of some nitrogen fertilizers in some weather or soil conditions can cause emissions of the potent greenhouse gasnitrous oxide. Ammonia gas (NH3) may be emitted following application of 'inorganic' fertilizers and/or manures and slurries. The use of fertilizers on a global scale emits significant quantities of greenhouse gas into the atmosphere. Emissions come about through the use of:

animal manures and urea, which release methane, nitrous oxide, ammonia, and carbon dioxide in varying quantities depending on their form (solid or liquid) and management (collection, storage, spreading) fertilizers that use nitric acid or ammonium bicarbonate, the production and application of which results in emissions of nitrogen oxides, nitrous oxide, ammonia and carbon dioxide into the atmosphere.

By changing processes and procedures, it is possible to mitigate some, but not all, of these effects on anthropogenic climate change.

Bhagwan Parshuram Institute Of Technology

Page 9

Marketing of Fertilizers by IFFCO

8. Other problems Increased pest fitness

Excessive nitrogen fertilizer applications can also lead to pest problems by increasing the birth rate, longevity and overall fitness of certain agricultural pests, such as aphids (plant lice).

Growth of Indian Fertilizer Industry


The Indian fertilizer industry has come a long way since the setting up of the manufacturing unit of Single Super phosphate (SSP) near Chennai in 1906 A new impetus to the growth of Indian Fertilizer industry was provided by the set up the two fertilizer plants- Fertilizer & Chemicals Travancore of India Ltd. (FACT) in Kerala and the Fertilizers Corporation of India (FCI) in Bihar. This was during the forties and the fifties. The aim was to create an industrial base that would provide India with self reliability in food grains. India witnessed significant growth of the fertilizer industry during the sixties and the seventies. By 2003, India had an installed capacity of 12.11 million MT of nitrogen and 5.36 million MT of phosphate. Today, with 57 large sized fertilizer plants manufacturing a wide variety of the nitrogenous, complex and phosphatic fertilizers, the Indian fertilizer industry is the 3rd largest producer in the world. One of the major factors that have led to the rapid increase in the production capacity of fertilizers in India is the policy environment. With the formulation and implementation of investor friendly policies, large investments poured into the private, public and co-operative sectors and this propelled the growth of the Indian fertilizer industry.

Bhagwan Parshuram Institute Of Technology

Page 10

Marketing of Fertilizers by IFFCO

Competitors of IFFCO:
In fertilizer marketing, lot of competitors exist in each state but IFFCO is one brand that stands out of the major players in this industry and is the biggest fertilizer company in Asia. It is one of the oldest and one of the trusted brand in the market. It is so much trusted that farmers can actually wait for IFFCO products or can drive miles to get IFFCO products. For farmer the word IFFCO stands for quality and most other competing brand stand for duplicacy. As per one of the farmers remarks, none of the players in the market give you a better quality and price than IFFCO products. Its only then when farmers actually move to other brands like NFL, PPL, TATA CHEMICALS, OSWAL and KRIBACHO. It is because of this perception in the farmers mind that today every 4 - 5 bag of fertilizer consumed is of IFFCO. But brands like TATA chemicals and KRIBHCO are quickly coming into the picture and are posing a serious threat to IFFCO. They are very cleverly hitting on IFFCOs weaknesses i.e. unavailability and are making their products readily available at the time of scarcity and are charging premium for that. They have also launched a series of programs to make their brand more visible, make people more aware of the quality of product and also to have a better connect with farmers. In order to withstand competition IFFCO is providing competitive sale terms to the marketers, increasing direct supply of IFFCO fertilizers to the societies to make them financially viable projects, organizing need based & location specific promotional and extension programmes to increase the sale of IFFCO fertilizers through societies and also organizing Training for Cooperative Personnel to apprise them about the latest available agro technology. In an attempt to make cooperative projects more viable they have gone to an axtent that today they are hiring space with the cooperative (66% at present), giving transportation work to the adopted societies, giving rake handling work to the adopted societies wherever feasible, warehousing jobs to the adopted societies.

Joint Ventures:
The IFFCO Group is a family of following group: 1. IFFCO Kisan Sewa Trust. 2. IFFCO Foundation. 3. IFFCO Exchange/Collateral Management. 4. IFFCO Kisan Sanchar Ltd. 5. IFFCO-TOKIO General Insurance Company (ITGI).

IFFCO KISAN SEWA TRUST


IFFCO has established a charitable trust known as IFFCO Kisan Trust to provide relief and rehabilitation to victims in the event of natural calamities like floods,
Bhagwan Parshuram Institute Of Technology Page 11

Marketing of Fertilizers by IFFCO earthquakes, cyclones, landslides and droughts etc. IFFCO initially contributed Rs.10 crore and has been making contribution of Rs.1 crore every year. IFFCO employees also regularly contribute to this Trust. The Trust is undertaking programs ad projects aimed at improving the quality of life of farmers. The Trust is undertaking programs and projects aimed at improving the quality of life of farmers. The Trust organized mega medical camp, eye check-up camps for the farmers of Rajasthan, Uttar Pradesh and Punjab.

IFFCO FOUNDATION
IFFCO laid the foundation of a Think Tank Brain Tank named IFFCO Foundation in January 2003. The main objective of the IFFCO Foundation is to focus on strengthening cooperative structure, developing social capital and human resources and promoting cultural development through cooperative organization, empowerment of women and youth, development of micro enterprise and micro credit concepts and pioneering reform and advancements in cooperatives. Foundation has been recognized as National Level Agency by Govt. of India for implementation of Horticulture Program through SHG/Cooperatives.

IFFCO EXCHANGE/COLLATERAL MANAGEMENT


To empower the farmers by providing them range of service, which includes price discovery, Price dissemination, Risk hedging and providing a national level trading platform. IFFCO stepped into the area of Commodity Exchange by acquiring 12 percent stake in National Commodities and Derivative Exchange (NCDEX) in 2004. The exchange offers contracts in 51 commodities which include 41 agriculture commodities, 2 energy, 6 metals and 2 bullion products. The exchange provides range of services which include Price Discovery and Price Dissemination. IFFCO along with seven other institutions co-promoted National Collateral Management Services Limited (NCMSL), which is the first national level collateral management company to be set up in India. On the agricultural side, NCMSL provides Procurement, Storage and Preservation, Quality testing and Certification, Collateral Management and information Services. It accredits were-houses, which meet the parameters for scientific storage.

IFFCO KISAN SANCHAR LIMITED (IKSL)


IFFCO launched a new subsidiary viz. IFFCO Kisan Sanchar Ltd. (IKSL) with an aim to deploy Information Communication Technology to empower farmers in rural India and to strengthen the cooperative network in the country. IKSL will identify the needs of telecom & communication products and services which would add value to the life of farmer and retail them directly through the vast reach of cooperative societies.

IFFCO-TOKIO GENERAL INSURANCE COMPANY (ITGI)


Pursuant to IFFCOs plans to diversify into areas other then fertilizers, which can be beneficial for Indian farmer IFFCO and TOKIO Marine and Fire Insurance Company Limited, Japan established a joint venture company known as IFFCO-TOKIO General Insurance Company Ltd (ITGI) for undertaking general insurance business in India. IFFCO and its associates have subscribed to 74% equity in share holding of ITGI Ltd. The company operates through 51 branches across the company.

Bhagwan Parshuram Institute Of Technology

Page 12

Marketing of Fertilizers by IFFCO

COMPANY PROFILE IFFCO AT A GLANCE:

During mid- sixties the Co-operative sector in India was responsible for distribution of 70 per cent of fertilizers consumed in the country. This Sector had adequate infrastructure to distribute fertilizers but had no production facilities of its own and hence dependent on public/private Sectors for supplies.

To overcome this lacuna and to bridge the demand supply gap in the country, a new cooperative society was conceived to specifically cater to the requirements of farmers. It was an unique venture in which the farmers of the country through their own Co-operative Societies created this new institution to safeguard their interests. The number of co-operative societies associated with IFFCO has risen from 57 in 1967 to 38, 155 at present.

Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on November 3, 1967 as a Multi-unit Co-operative Society. On the enactment of the Multistage Cooperative Societies Act 1984 & 2002, the Society is deemed to be registered as a Multistage Cooperative Society. The Society is primarily engaged in production and distribution of fertilizers.

Bhagwan Parshuram Institute Of Technology

Page 13

Marketing of Fertilizers by IFFCO IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant at Kandla both in the state of Gujarat in 1975. Ammonia urea complex was set up at Phulpur in the state of Uttar Pradesh in 1981. The ammonia - urea unit at Aonla was commissioned in 1988.

In 1993, IFFCO had drawn up a major expansion programme of all the four plants under overall aegis of IFFCO vision 2000. The expansion projects at Aonla, Kalol, Phulpur, and Kandla have been completed on schedule. Thus all the projects conceived as part of Vision 2000 have been realized without time or cost overruns.

All the production units of IFFCO have established a reputation for excellence and quality. A new growth path has been chalked out to realize newer dreams and greater heights through Vision 2010 which is presently under implementation.

As part of the new vision, IFFCO has acquired fertilizer unit at Paradeep in Orissa in September 2005. As a result of these expansion projects and acquisition, IFFCO's annual capacity has been increased to 3.69 million tones of Urea and NPK/DAP equivalent to 1.71 million tones of P2O5.

IFFCO has made strategic investments in several joint ventures. Godavari Fertilizers and Chemicals Ltd (GFCL) & Indian Potash Ltd (IPL) in India, Industries Chimiques du Senegal (ICS) in Senegal and Oman India Fertilizer Company (OMIFCO) in Oman are important fertilizer joint ventures. Indo Egyptian Fertilizer Co (IEFC) in Egypt is under implementation.

As part of strategic diversification, IFFCO has entered into several key sectors. Through ITGI, IFFCO has formulated new services of benefit to farmers. 'Sankat Haran Bima Yojana' provides free insurance cover to farmers along with each bag of IFFCO fertilizer purchased.

To take the benefits of emerging concepts like agricultural commodity trading, IFFCO has taken equity in National Commodity and Derivative Exchange (NCDEX) and National Collateral Management Services Ltd
Page 14

Bhagwan Parshuram Institute Of Technology

Marketing of Fertilizers by IFFCO (NCMSL). IFFCO Chattisgarh Power Ltd (ICPL) which is under implementation is yet another foray to move into core area of power. IFFCO is also behind several other companies with the sole intention of benefiting farmers.

The entire activities of Distribution, Sales and Promotion are co-coordinated by Marketing Central Office (MKCO) at New Delhi assisted by the Marketing offices in the field. In addition, essential agro-inputs for crop production are made available to the farmers through a chain of 158 Farmers Service Centre (FSC).

IFFCO has promoted several institutions and organizations to work for the welfare of farmers, strengthening cooperative movement, improve Indian agriculture. Indian Farm Forestry Development Cooperative Ltd (IFFDC), Cooperative Rural Development Trust (CORDET), IFFCO Foundation, Kisan Sewa Trust belongs to this category.

An ambitious project 'ICT Initiatives for Farmers and Cooperatives' is launched to promote e-culture in rural India. IFFCO obsessively nurtures its relations with farmers and undertakes a large number of agricultural extension activities for their benefit every year.

At IFFCO, the thirst for ever improving the services to farmers and member co-operatives is insatiable, commitment to quality is insurmountable and harnessing of mother earths' bounty to drive hunger away from India in an ecologically sustainable manner is the prime mission.

All that IFFCO cherishes in exchange is an everlasting smile on the face of Indian Farmer who forms the moving spirit behind this mission. IFFCO, to day, is a leading player in India's fertilizer industry and is making substantial contribution to the efforts of Indian Government to increase food grain production in the country

Bhagwan Parshuram Institute Of Technology

Page 15

Marketing of Fertilizers by IFFCO

Vision:
IFFCOs vision is "to augment the incremental incomes of farmers by helping
them to increase their crop productivity through balanced use of energy efficient fertilizers, maintain the environmental health and to make cooperative societies economically & democratically strong for professionalized services to the farming community to ensure an empowered rural India. To retain dominant position in Indian fertilizer sector and cost effective technologies. Sourcing raw materials for production of Phosphate Fertilizers at low cost with joint ventures outside India. Emerging as a dynamic organization, focusing on strategies maximizing the shareholders value. To build a culture of trust, openness & mutual concern. Implement diversification in information technologies. Committed to cooperate social responsibilities for sustainable development. Commitment to health, safety, environment & forestry development to enhance quality of community life. A true cooperative society committed to foster cooperative movement in the country.

VISION 2015 IFFCO successfully implemented its earlier Corporate Plans namely
VISION 2000, MISSION 2005 and VISION 2010 which resulted into becoming one of the largest producer and marketer of Chemical Fertilisers by expansion of IFFCOs existing units, setting up joint venture companies overseas and diversification into new sectors. IFFCO has now visualised a comprehensive Plan entitled VISION-2015 having objectives of :Production of fertilisers through expansion of existing units Setting up of additional fertiliser production facilities in India and Abroad through joint ventures Diversification into other profitable sectors Strengthening raw material sourcing through Strategic joint ventures Formulation of Strategic Alliances through IFFCO consortium

Bhagwan Parshuram Institute Of Technology

Page 16

Marketing of Fertilizers by IFFCO

Mission:
To provide to farmers high quality fertilizers in right time and in adequate quantities with an objective to increase crop productivity. To make plants energy efficient and continually review various schemes to conserve energy. Commitment to health, safety, environment and forestry development to enrich the quality of community life. Commitment to social responsibilities for a strong social fabric. To institutionalize core values and create a culture of team building, empowerment and innovation which would help in incremental growth of employees and enable achievement of strategic objectives. Foster a culture of trust, openness, and mutual concern to make working a stimulating and challenging experience for stake holders. Building a value driven organization with an improved and responsive customer focus. A true commitment to transparency, accountability, and integrity in principle and practice. To acquire, assimilate and adopt reliable, efficient, and cost effective technologies. Sourcing raw materials for production of phosphates fertilizers at economical cost by entering into Joint Ventures outside India. To ensure growth in core and non-core sectors. A true Cooperative Society committed for fostering cooperative movement in the country. Emerging as a dynamic organization, focusing on strategic strengths, seizing opportunities for generating and building upon past success, enhancing earnings to maximize the shareholders' value

Our Main Aim.


Strengthening management and participatory character of the Indian Cooperative Movement by using duly tested and appropriate consultancy, advisory and technological interventions sourced from within the country and abroad and in accordance of the Cooperative Principles and in harmony with the law and culture of the land.

Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on November 3, 1967 as a Multi-unit Co-operative Society engaged in the production of fertilizer to help the farmers of India. During mid- sixties the Co-operative sectoring India was responsible for distribution of 70 per cent of fertilizers consumed in the
Bhagwan Parshuram Institute Of Technology Page 17

Marketing of Fertilizers by IFFCO

country. This Sector had adequate infrastructure to distribute fertilizers but had no production facilities of its own and hence dependent on public/private Sectors for supplies. Hence to overcome this lacuna and to bridge the demand supply gap in the country, a new cooperative society i.e. IFFCO came into the picture. The society has grown in strength from a modest membership of 57 societies in 1967-68 to 39824 cooperative societies and 158 Farmers Service Centers of its own spread across 17 states namely, Jammu & Kashmir, Punjab, Haryana, Uttar Pradesh, Jharkhand, Rajasthan, Uttaranchal, Bihar, Madhya Pradesh, West Bengal, Goa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Assam, & Orissa.Today IFFCO is the largest producer of fertilizers in the country and the only Fertilizer Institution in the country to have surpassed 6 Million MT per annum in terms of production and 8 Million MT per annum in respect of sales. So we can say that IFFCO, to day, is a leading player in Indias fertilizer industry and is making substantial contribution to the efforts of Indian Government to increase food grain production in the country.The organization has production facilities at AONLA, KANDLA, PHULPUR, KALOL and the latest one at PARADEEP. Due to the increasing demand of fertilizers all these plants have undergone an expansion of production facilities.

Byelaws:
The byelaws of IFFCO provide the framework within which IFFCO as a cooperative Society operates. They define the objectives, guidelines for membership and other rules for administrative operations of the Society. The broad objective of IFFCO as enshrined in the byelaws are to promote the economic production / development of chemical fertilizers, bio-fertilizers, petro-chemicals, industrial chemicals, their, inputs and technologies, and allied products/ bye - products and conversion, storage, transportation and marketing. The bye-laws also provide for manufacturing processing / conversion of farm products including sugar cane, derived products and bye-products, pesticides, seeds, farm produces, bio-technology, pisi-culture and aqua farming, agriculture machinery, implements and other agricultural inputs and their conversion, storage, transpiration and marketing and undertake trading, shipping, transportation. IFFCO's main thrust has been on production and distribution of mineral fertilizers in which it has carved out a niche for itself. The endeavors had always been to make the country self-sufficient in this crucial input for agriculture and ensure its timely availability to the farmers.

Bhagwan Parshuram Institute Of Technology

Page 18

Marketing of Fertilizers by IFFCO

PRODUCTS OF IFFCO:
IFFCO's Urea: IFFCO's Urea is not merely a source of 46% of nutrient nitrogen for crops, but it is an integral part of millions of farmers in India. A bag of IFFCO's urea is a constant source of confidence and is a trusted companion for Indian farmer. Urea is the most important nitrogenous fertilizer in the country because of its high N content (46%N). Besides its use in the crops, it is used as a cattle feed supplement to replace a part of protein requirements. It has also numerous industrial uses notably for production of plastics.The rapid hydrolysis of urea in soils can be responsible for ammonia injury to seedlings if large quantities of this material placed with or too close to the seed. Proper placement of fertilizer urea with respect to seed can eliminate this difficulty.

IFFCO's NPK/DAP:
As far as Indian farmer is concerned, IFFCO's NPK/DAP is not just a source of crucial nutrients N, P, K for the crops, but is an integral part of his/her quest for nurturing mother earth. The bountiful crop that results from this care is an enough reason for the graceful bags of IFFCO NPK/DAP bags to be an integral part of the farmers family. The two grades of NPK produced by IFFCO, 10:26:26, and 12:32:16, indicating the content of N, P, K proportion, are tailor made to supply the exact composition required for replenishment of the soil. The Indian farmer's confidence and trust stems from the fact that IFFCO's NPK/DAP are merely a part of a complete package of services, ably supported by a dedicated team of qualified personnel. More importantly, they are aware, IFFCO is a cooperative society owned by farmers cooperatives.

Bhagwan Parshuram Institute Of Technology

Page 19

Marketing of Fertilizers by IFFCO

BIO FERTILISERS:
A biofertiliser unit was established at Cooperative Rural Development Trust, Phulpur (Uttar Pradesh) in 1996 - 97 and other at Kalol (Gujarat) in 2003-04 with an annual capacity of 75 MT and 165 MT respectively of different cultures such as Rhizobium, Azotobacter, PSM, Azospirillium, and Acetobacter

PRODUCTION AND SALES:


During the year 2010-11 IFFCO produced 85.83 Lakh (8.583 million) MT (Metric Tonnes) of fertilizer material, consisting of 44.02 lakh MT of Urea and 41.81 lakh MT NPK/DAP. PRODUCTION YEAR 2007-08 2008-09 2009-10 2010-11
100 90 80 70 60 50 40 30 20 10 0 UREA NPK/DAP TOTAL 43.2444.02 40.68 31 41.81 38.74 2008-09 2009-10 2010-11 85.83 81.98 71.68

(RS. IN LAKHS) UREA 39.63 40.68 43.24 44.02 NPK/DAP 28.84 31.00 38.74 41.81 81.98 85.83 TOTAL 68.47 71.68

2010-11

44.02

41.81

85.83
Page 20

Bhagwan Parshuram Institute Of Technology

Marketing of Fertilizers by IFFCO

100 90 80 70 60 NPK/DAP 50 40 30 20 10 0.12 0 2006-07 2007-08 2008-09 2009-10 2010-11 37.86 32.26 39.63 28.84 40.68 31 43.24 38.74 44.02 41.81 UREA TOTAL 68.74 71.68 81.98 85.83

Bhagwan Parshuram Institute Of Technology

Page 21

Marketing of Fertilizers by IFFCO

SWOT Analysis of IFFCO:


Strength Biggest fertilizer company in Asia Large number of cooperative societies. Fully modernized plants. Effective workforce of over 14,000 people. In any case cooperative will purchase fertilizers from IFFCO. Biggest producer of DAP and NPK.

Weakness Fully dependent on government subsidies. Price and distribution are controlled by government. Cannot sell fertilizers in their area of choice. Has to take government permission on each and every issue which take a lot of time.

Opportunities Fertilizers producton in India is still insufficient and we have to import fertilizers from other countries. This show the high demand-supply gap for the product which need to be fulfilled as soon as possible. Various areas of industries are still untapped by IFFCO in which it need to diversify. IFFFCO should explore the option of forming JVs with other companies to enter countrys market and also to import fertilizers from there.

Threats The ever growing private sector which has big players like TATA, having deep pockets to spend considerable amounts of money on marketing activities.

Bhagwan Parshuram Institute Of Technology

Page 22

Marketing of Fertilizers by IFFCO

OBJECTIVES:
Primary Objective:
To study the effectiveness of the Companys distribution and promotional strategy and to find out the areas of relative strength and weakness.

Secondary Objectives:
To analyse the marketing strategies used by IFFCO to sell their fertilizers to various farmers. To study the marketing channel followed by IFFCO to sell their products to the farmers. To study various promotional programs organized by IFFCO and their impact on the farmers.

Bhagwan Parshuram Institute Of Technology

Page 23

Marketing of Fertilizers by IFFCO

Research Design:
The research design is descriptive in nature.The research is mainly focused on IFFCOs promotional programs, its market analysis, attractiveness of the programs and its impact on farmers (psychologically and economically). Through this research we aim to find out which programs and which part of these programs is liked by the farmers the most. Research extends to find out whether any of these programs requires restructuring or not (strengths and weakness of programs).

Method of data collection:


Primary Data collection: Interview and Questionnaires (open ended and close ended). Secondary Data collection: Internet , Journals, Magazines and Past Data.

Sampling Plan: Sampling Area: District Baghpat (U.P.) Village adopted by IFCCO
The survey conducted has been limited to the franchisee at Badhot, khekda, Tatiri Mandi, Surajpur, Mehanwa etc.data was collected b both primary and secondary sources.Primary data was collected in the form of survey through the markets by asking some close and open ended questions which helped in analyzing the changing trends and its effection already existing ones. Our study is focused towards the co-operative due to the fact that IFFCO cooperative are good sources of estimating the market and collecting data.

SAMPLING UNIT
The co-operative distributor, member and farmers in and around District Baghpat.

SAMPLING TYPE
Simple random sampling

SAMPLING SIZE
Member - 40

TOOLS AND TECHNIQUES:


Survey chart, Pie chart, Bar chart.

Bhagwan Parshuram Institute Of Technology

Page 24

Marketing of Fertilizers by IFFCO

Marketing Strategies at IFFCO:


In broad sense, marketing includes the activities of all those engaged in the transportation of goods from producer to customer i.e. not only those who buy and sell directly, warehouse, transport, insure, finance or promote the product, otherwise have a hand in the process of transfer.

MARKETING POLICY OF IFFCO


Being the largest producer in fertiliser products IFFCO has very vast marketing chain, which is commended by the marketing division of IFFCO head office. As the IFFCO cooperative works as nation level and the products are consumed in all the states of India. IFFCO distributes its fertiliser material through more than 37,5000 cooperative societies. To have an effective coordination with these cooperative societies and the farmers, IFFCO has a wide marketing network spread throughout the country. The illustration depicts the field structure of the IFFCO. IFFCO's Marketing activities are coordinated through five Zonal Offices. Each zonal office oversees the activities of State Offices which in turn coordinate the various activities of the Area Offices. Area Offices conduct IFFCO's marketing operations in few districts through field officers. At present, about 450 field officers undertake distribution of fertilisers and various other promotional activities. IFFCO undertakes a large number of these programmes to educate the farmers on latest facets of modest agricultural practices.IFFCO has divided its marketing chain into Zonal Marketing Offices and State Marketing Offices. There are five Zonal Offices of IFFCO in India, which commands all the marketing activities and operations respected to their concerned states.

MARKETING OF FERTILISERS
Fertilizers are produced at about 120 locations in the country. Fertilizer production is continuous process whereas its consumption is highly seasonal and confined to only 3-4 months in a year split into two season. Distributed to farmers scattered in about 6 lakh villages in the country through network of wholesalerand retailers.

Marketing Set-up
The Marketing Division is headed by Director (Marketing) assisted by Sr.General Manager (Mktg)/ General Manager (Mktg.). In addition,

Executive Director (Transportation) is also looking after the transportation operations. The Marketing Division has the following departments :

1. Distribution 2. Transportation 3. Port Operation


Page 25

Bhagwan Parshuram Institute Of Technology

Marketing of Fertilizers by IFFCO 4. Marketing Services 5. Agricultural Services 6. Training 7. Publicity 8. Marketing Accounts 9. Personnel & Administration

IFFCO's marketing set-up in the field comprises of 5 Zonal Offices, 20 State Offices and 62 Area Offices. Each Area Office covers 4-5 districts. In each area about 4-8 Field Officers will be working. They are posted at district and taluk level towns. They visit the villages in their area of operation and work with the farmers in transferring modern agricultural technology. The total field force as on date is about 475. The total number of personnel in Marketing Division is around 1642.

ZONE-WISE MARKETING DIVISION


IFFCO is operating in 29 States & U.Ts Total marketing area has been divided into 5 zones. Namely: NORTH- PUNJAB, HARYANA, RAJASTHAN, J&K, H.P WEST- GUJARAT, M.P, MAHARASHTRA, CHATTISGARH NORTH CENTRAL- U.P, UTTARANCHAL, BIHAR & JHARKHAND EAST- WEST BENGAL, ASSAM & ORISSA SOUTH- A.P, KARNATAKA, TAMIL NADU &KERALA

Bhagwan Parshuram Institute Of Technology

Page 26

Marketing of Fertilizers by IFFCO

MARKETING TERRITORIES
MARKETING CENTRAL OFFICE

North Central Zone (Luck now)

North Zone (Chandigarh)

South Zone (Bangalore)

West Zone (Bhopal)

East Zone (Kolkata)

Up, Bihar, Zarkhand, Uttaranchal

Pun, Har, J&K, Raj, HP

AP,TN, Kar, Kerala

Guj,MP, Mah, Chhattisgarh

Assam, Orissa,WB

Marketing Offices IFFCO distributes its fertilizer material through more than 38155 cooperative societies. To have an effective coordination with these cooperative societies and the farmers, IFFCO has a wide marketing network spread throughout the country. The illustration depicts the field structure of the IFFCO. IFFCO's Marketing activities are coordinated through five Zonal Offices. Each zonal office oversees the activities of State Offices which in turn coordinate the various activities of the Area Offices. Area Offices conduct IFFCO's marketing operations in few districts through field officers. At present, about 450 field officers undertake distribution of fertilizers and various other promotional activities. IFFCO undertakes a large number of these programmes to educate the farmers on latest facets of modest agricultural practices. IFFCO undertakes distribution of its fertilizer products - Urea, NPK (10:26:26 and 12:32:16) and DAP, throughout the length and breadth of India. Being a Cooperative Society, the sales are mostly channelised through cooperative societies.However, the member cooperatives have no obligation to buy from IFFCO. At the state level, the Apex Cooperative Marketing Federation acts as a wholesaler to route IFFCO's fertilizers. In the event the Apex Cooperative Marketing Federation is not in fertilizer business in any state of India, direct supplies are made to the cooperative societies.

Bhagwan Parshuram Institute Of Technology

Page 27

Marketing of Fertilizers by IFFCO In case the cooperative system is either weak or non-existent in any state, IFFCO's fertilizers are routed through other institutional agencies like AgroIndustries Corporation of that state. In addition, IFFCO has 158 Farmers Service Centers (FSC) spread over in eleven states through which fertilizer sales are undertaken MARKETING CHANNELS: 1. Every manufacturer needs a link with the customers to sell his products. 2. The set of intermediates forming this important link is called the marketing/distribution channel. 3. Selecting the right channel is the most important, complex and challenging task for every business organisation.

Marketing channel in India for fertilizers


Marketing channel in India for fertilizers can broadly be classified into three categories: 1.Institutional Agencies 2. Private Trade 3. Company owned outlets

Private trade accounts for 60% Institutional agencies including cooperatives account for 35% Manufacturers own 5%
As a matter of Policy, IFFCO is channelizing its products through the cooperative channels.

STATEWISE MARKETING CHANNEL


THRU APEX FEDN. Only Direct to Societies APEX as well as thru direct Gujarat, Madhya Pradesh, Chattisgarh, West Bengal, Tamil Nadu, J & K, H.P. and Assam U.P, Uttaranchal, Bihar, Jharkhand & Rajasthan Punjab, Haryana, Maharashtra, Orissa, A.P., Kar., & Kerala

Bhagwan Parshuram Institute Of Technology

Page 28

Marketing of Fertilizers by IFFCO

CHANNEL-WISE DISTRIBUTION OF IFFCO FERTILISERS CHANNELIFFCO PLANT

APEX MKT. FEDERATION

29%

62%

5%

4%

AGRO INDUSTRIES

Distt./Block Level Mktg. Societies

Distt./Block Level Societies


RETAIL OUTLETS

FARMERS SERVICE CENTRES

Village Level Coop Mktg. Soc. (PACS) FARMERS

Distribution of fertilizers mainly through the Cooperative System: State level Apex Cooperative Marketing Federation Acts as wholesaler Direct supplies to Societies in some States IFFCO-NCDC Cooperative Societies Small quantities to institutional agencies like Agro Industries Corporation et 158 IFFCO Farmers Service Centers

Current Marketing Structure


IFFCOs marketing setup at present comprises of 5 zonal offices, 17 State Offices and 64 Area Offices. East area offices covers 4-5 districts. Each area has 810 field officers attached to it. They are posted at district and taluk-level towns. At present, there are about 500 field officers. The total number of personnel in Marketing Division has come down to around 1501 from the level of 1850 in 199192 . IFFCO has taken up promotional and extension programs more vigorously after decontrol of phosphatic and potassic fertilizers with a view to promoting balancing and efficient use of fertilizers and also to increase soil productivity. IFFCO is also promoting environment-friendly sustainable agriculture in various state through IPNS programs in collaboration with FAO.

Promotional And Publicity Activities


Fertilizer promotion is one of the important in fertilizer marketing. The objective is to create awareness about fertilizers and provide technical information on improved agriculture practices and fertilizers use so as to increase productivity and fertilizer use efficiency. Mass media approach is followed in fertilizer promotion.

Bhagwan Parshuram Institute Of Technology

Page 29

Marketing of Fertilizers by IFFCO AIR, Doordarshan, and Press These are effective and powerful medium of communication and the message is conveyed even in remote and inaccessible areas in a short time. IFFCO has been taking the advantage of this media for promotion of fertilizer use. IFFCOs field staffs often delivers talks over air and doordarshan. Popular articles on fertilizer use and crop production are also published in local and national level newspapers. From time to time advertisements are released to newspapers and journals. Fairs and Exhibitions Fairs and exhibitions are organized at local and national level to appraise the farmers about achievements in agriculture development through audio-visual aids. This medium has a mass appeal. IFFCO avails of such opportunities to participate in such programs. Technical Literature Publication and updating of technical literature from time to time in regional language on crop production practices and fertilizer use is very important. This include crop folders, leaflets, pamphlets etc. which give brief account on crop production technology. IFFCO has brought out five volumes of its publication entitled soil fertility and fertilizer use. This is a comprehensive publication covering wide range of topics on sustainable agricultural production. All the 5 volumes have become very popular nationally and internationally. Hoardings and Roadside Sign Boards IFFCO is effectively making use of state and national highways and also market places for promoting the concept of balanced fertilizer use by erecting hoardings and roadside sign boards, wall painting etc. the front walls of village cooperative societies and panchayt bhavans have been painted with slogans promoting balanced and efficient fertilizer use. Crop Films Appreciating the importance of electronic media and popularization of video presentations, IFFCO has developed 8 crop film depicting the package of practices for the benefits of the farmers. These films are 15 minutes duration each and cover important crops like rice, wheat, maize, pearlmillet, cotton, sugarcane, soyabean and mustard seed. These films are regularly screened through two mobile testing vans and also in field programs.

IFFCO Programmes An Overview


In the last three decades (1975-76 to 2004-05) IFFCO has organised 68547, farmers meeting, 19492 field days, 25196 sales point personnel training + district cooperative conferences, 3765 crop seminars, 29529 two plot demonstrations, distributed 481684 CIP kits, 14245 soil test campaigns (collected 14.62 lakh samples) and 585 training and visit programmes. Besides these activities, women training, agricultural (weed control, seed treatment etc.)/social (tree plantations/veterinary and medical check up,

Bhagwan Parshuram Institute Of Technology

Page 30

Marketing of Fertilizers by IFFCO etc.) campaigns were also organised. IFFCO has undertaken location specific 51 special projects viz. dry land farming/area development, land reclamation, tribal area development, lab to land programme and hi tech projects on agricultural development. IFFCO has also worked in more than 3000 villages under its Village Adoption Programme for their development with thrust on agricultural related aspects. IFFCO has also undertaken in a limited way seed multiplication programme (59003 ha) on its own and also in collaboration with State Seeds Corporation to augment supply of seeds to the farmers. IFFCO has conducted demonstrations / trials on farmers fields on its own and also in collaboration with national / international organisations as under: 1. Urea supergranules Conducted 389 demonstrations on rice in 11 states during 1981-82 to 1984-85 and also in collaboration with ICAR/State Agricultural Universities (14, 15) 2. FAOIFFCO sulphur research network programme Conducted 96 trials on 13 crops in 3 states during 1987-88 to 1989- 90 . Network programme was reviewed by Biswas and Tewatia . 3. PPIC (India programme) IFFCO collaborative programme on maximum yield research in 3 states during 1990-91 and 1991-92 . 4. Soil test based trials Conducted 511 trials on 15 crops in 108 villages in 92 districts covering 14 states during 1992- 93 to 1994-95. 5. Integrated plant nutrition system a. Conducted demonstrations (1647 entries) on 24 crops covering 55 locations involving 146 farmers of 14 states. b. FAO IFFCO collaboration on integrated plant nutrition system A technical cooperation programme project TCP/IND/6611 Development of an integrated plant nutrition system methodology (FAO IFFCO 1997). c. Organised a national workshop on IPNS, Bhubaneshwar, March 10-12, 1997 (10). d. Organised an international seminar on IPNS for sustainable development, New Delhi, November 25-27, 1997. 6. IMPHOSIFFCO extension project Conducted 265 demonstrations on 14 crops in 44 villages in 30 districts of 8 states during 2000-01 to 2003-04. 7. IARIIFFCO collaborative project on transfer of technology Conducted 1280 demonstrations on cereals, pulses, oilseeds, fodder, vegetables, flowers in 7 states during 2000-01 to 2002-03 (IARI, 2005). 8. Fortification of NPK 10:26:26 with 0.3% boron - Conducted 280 demonstrations on 25 crops in 58 districts in 6 states during 2002-03 (Rabi) and 2003- 04. Farmers feedback (366 respondents) was obtained from 4 states.

Bhagwan Parshuram Institute Of Technology

Page 31

Marketing of Fertilizers by IFFCO

FERTILISER PROMOTION PROGRAMMES:


Field Programmes The gap between the technologies developed under On Station situations and its implementation under On Farm situations need to be minimised. The technology could be demonstrated on the farmers field through demonstration/trials which is the most effective method of convincing the farmers on the usefulness of balanced fertilisation in crops. Balanced fertiliser use was promoted initially by giving incentive to cooperatives @ Rs.20 per mt. This was supported by undertaking field demonstrations. To support the demonstration programme other field activities like field day, farmers meetings, campaigns, use of electronic and print media, training programmes for sale point personnel etc. should be effectively utilised/organised to disseminate the message of balanced fertilisation. Integration of fertiliser supplies and field programmes together with involvement of cooperatives is necessary for increasing productivity of crops. The programmes organised during 2002-03 to 2004-05. IFFCO has established two static soil testing laboratories at CORDET, Phulpur and Kalol and pressed into service five mobile testing vans and analysed 3.03 lakh soil samples . CORDET, Phulpur and Kalol together have analysed 9.9 lakh soil samples during 1980-81 to 2004-05 whereas mobile soil testing vans have analysed 1.88 lakhs soil samples during 1988-89 to 2004-05. Data from soil testing over a period of time reveal that status of major nutrients in soil is gradually declining from high to medium and medium to low status. Mobile soil testing vans have analysed soil samples in the villages itself and results were explained to farmers the same day. They were motivated to apply nutrients dose based on soil test values. A limited number of soil samples for micronutrients were also analysed at CORDET, Kalol and Phulpur. The cooperatives are involved in transfer of farm-technologies as they have direct access to their member farmers. IFFCO has provided financial assistance to the cooperatives for the construction of 47 storage cum community centres during the period 2002-03 to 2004-05 These centres are used as a venue for holding meetings of farming community; besides storage of fertilisers. As a part of corporate social responsibility, social and community development programmes are organised for providing relief to the farmers and cooperatives based on specific needs viz. drinking water facilities by installing hand pumps, tube-wells and storage tanks, eye camps, assistance to school/school children, worked at the time of natural calamities like earthquake, flood and drought.

Bhagwan Parshuram Institute Of Technology

Page 32

Marketing of Fertilizers by IFFCO

Data Analysis and Interpretation:

Ques1.What is the satisfaction level by the programs implied by IFFCO? Highly satisfied Somewhat Satisfied Not Satisfied 59% 25% 16%

Satisfaction level by the various programs implied by IFFCO.


16%

Highly Satisfied 25% Somewhat Satisfied Not satisfied

59%

Bhagwan Parshuram Institute Of Technology

Page 33

Marketing of Fertilizers by IFFCO

INTERPRETATION:

Bhagwan Parshuram Institute Of Technology

Page 34

Marketing of Fertilizers by IFFCO

Ques2. What is the quality perception of IFFCO products? Best Better than competing brands At par with competing brands Worse than competing brands Worst 78% 13% 9% 0% 0%

Quality perception of IFFCO products.


0% 9% 13%

Best Better than competing brands At par with competing brands Worse than competing brands Worst 78%

Bhagwan Parshuram Institute Of Technology

Page 35

Marketing of Fertilizers by IFFCO

Bhagwan Parshuram Institute Of Technology

Page 36

Marketing of Fertilizers by IFFCO

Ques3. What is the price perception of IFFCO products among farmers? Lowest Lower than competing brands At par than competing brands Higher than competing brands 41% 31% 16% 12%

Highest

0%

Price perception of IFFCO products among farmers.


12% Lowest 16% 41% Lower than competing brands At par than competing brands Higher than competing brands Highest 31%

Bhagwan Parshuram Institute Of Technology

Page 37

Marketing of Fertilizers by IFFCO

Bhagwan Parshuram Institute Of Technology

Page 38

Marketing of Fertilizers by IFFCO

Ques4. Are IFFCO fertilizers effective for the farmers? Highly effective Effective to a certain extent Less effective 85% 9% 6%

Not effective

0%

Effectiveness of IFFCO fertilizers.


0% 9% 6% Highly effective Effective to a certain extent Little effective 85% Not effective

Bhagwan Parshuram Institute Of Technology

Page 39

Marketing of Fertilizers by IFFCO

Bhagwan Parshuram Institute Of Technology

Page 40

Marketing of Fertilizers by IFFCO

Ques5.Does the IFFCO products used with ease? Best Better than competing brands At par with competing brands Worse than competing brands Worst 28% 47%

16%

9%

0%

Ease of use of IFFCO products.

9% 28% 16% Best Better than competing brands At par with competing brands Worse than competing brands Worst 47%

Bhagwan Parshuram Institute Of Technology

Page 41

Marketing of Fertilizers by IFFCO

Bhagwan Parshuram Institute Of Technology

Page 42

Marketing of Fertilizers by IFFCO

Ques6. Does they effect on the skin/health of the farmers?

No adverse effect Has less adverse effect Significant negative effect Dont know

41%

19%

12%

28%

Effect on the skin/health of the farmers.

41% No adverse effect Has little adverse effect 19% 1.2 12% Significant negative effect Dont know

Bhagwan Parshuram Institute Of Technology

Page 43

Marketing of Fertilizers by IFFCO

Bhagwan Parshuram Institute Of Technology

Page 44

Marketing of Fertilizers by IFFCO

Ques7. Are IFFCO products easily available? Best Better than competing brands At par with competing brands Worse than competing brands Worst 6% 9%

19%

25% 41%

Availability of IFFCO products.


0

6% 9% Best Better than competing brands At par with competing brands Worse than competing brands Worst 19%

25%

Bhagwan Parshuram Institute Of Technology

Page 45

Marketing of Fertilizers by IFFCO

Bhagwan Parshuram Institute Of Technology

Page 46

Marketing of Fertilizers by IFFCO

Ques8. How often is IFFCO able to solve farmers problems. Never Sometimes Mostly Always 06% 16% 50% 28%

How often is IFFCO able to solve farmers problems


6% 16% Never 50% 1.2 Sometimes Mostly Always

Bhagwan Parshuram Institute Of Technology

Page 47

Marketing of Fertilizers by IFFCO

Bhagwan Parshuram Institute Of Technology

Page 48

Marketing of Fertilizers by IFFCO

Ques9.How often are the benefits of a successful program discussed by farmers.

Always Mostly Sometimes Never

09% 63% 25% 03%

Ques9.How often are the benefits of a successful program discussed by farmers.


9% Always Mostly 1.2 Sometimes Never 25%

63%

Bhagwan Parshuram Institute Of Technology

Page 49

Marketing of Fertilizers by IFFCO

Bhagwan Parshuram Institute Of Technology

Page 50

Marketing of Fertilizers by IFFCO

Chapter8. Research Findings:

Bhagwan Parshuram Institute Of Technology

Page 51

Marketing of Fertilizers by IFFCO

Bhagwan Parshuram Institute Of Technology

Page 52

Marketing of Fertilizers by IFFCO

Conclusion:

Bhagwan Parshuram Institute Of Technology

Page 53

Marketing of Fertilizers by IFFCO

Recommendation:
1. Maintain the quality standards: IFFCO already has a great quality perception in the mind of farmers. Company should never deter from quality standards and should leverage on this quality perception. 2. Restructure the programs: None of the programs should not take more than 2 hours and should be conducted during afternoon. 3. IFFCO should also conduct other non farming programs (social development programs) on a regular basics and should communicate the benefits of such programmes(may be stating and depicting examples) 4. Effort should be to include as many farm owners as possible: They need to quickly device mechanisms whereby they personally invite these land owners to attend these programmes. 5. Company should try to improve the distribution of its products thereby ensuring high availability of IFFCO fertilizers, as in the case of availability, the farmers end up purchasing other companys fertilizers. 6. The company should think on the financing schemes so that poor farmers should get IFFCO products at even those times when they do not have sufficient cash to buy its products and hence for the better production of their crops.

Bhagwan Parshuram Institute Of Technology

Page 54

Marketing of Fertilizers by IFFCO

LIMITATION OF THE STUDY:


The study could suffer from the following limitation: 1. Project is based upon data collected from Baghpat therefore result may not be generalized for whole of U.P. & India. 2. Correctness of survey is subjected to the correctness of the respondents. 3. This project was to be completed within a short span of time. 4. Study is based on a sample survey therefore it has some inherent shortcoming of a sample study. 5. Co-operative, member and farmer had some personal reasons for not responding to some of the question

Bhagwan Parshuram Institute Of Technology

Page 55

Marketing of Fertilizers by IFFCO

Annexure Questionnaires:
NAME: AGE: VILLAGE: Qualification: Illiterate/ Upto 10 / Upto 12 /Graduate/ Postgraduate Are you the owner of the farm, or you just work on it? For how many years have you been doing farming? Do you use fertilizers? 1. Are IFFCO products easily available? a) Best b) Better than competing brand c) At par with competing brands d) Worst 2. What is the quality perception of IFFCO products? a) Best b) Better than competing brand c) At par with competing brands d) Worst 3. Does the IFFCO products used with ease? a) Best b) Better than competing brand c) At par with competing brands d) Worst

Bhagwan Parshuram Institute Of Technology

Page 56

Marketing of Fertilizers by IFFCO 4. Does they effect on the skin/health of the farmers? a) No adverse effect b) Has less adverse effect c) Significant negative effect d) Dont know 5. Are IFFCO fertilizers effective for the farmers? a) Highly effective b) Effective to a certain extent c) Less effective d) Not effective

6. What is the price perception of IFFCO products among farmers? a) Lowest b) Lower than competing brand c) At par than competing brands d) Highest 7. What is the satisfaction level by the programs implied by IFFCO? a) Highly Satisfied b) Somewhat satisfied c) Not satisfied 8. Do you also use other chemicals for pest protection? a) Yes b) No

Bhagwan Parshuram Institute Of Technology

Page 57

Marketing of Fertilizers by IFFCO

9. Which companies fertilizers do you use? a) NFL b) PPL c) TATACHEMICALS d) OSWAL e)KRIBHCO f)IFFCO 10. How do you get to know about IFFCO: a) Electronic /print media, b) Satellite channel c) Fairs and Exhibitions d) Leaflets / Booklets e) Hoardings or banners f) Advertisements painted on walls 11. What are the other services do you expect from IFFCO apart from what you already get? 12. Any other facilities that competitors provide and IFFCO doesnt.

Bhagwan Parshuram Institute Of Technology

Page 58

Marketing of Fertilizers by IFFCO

Bibliography:
Text Books Reffered: Beri G.C. , Marketing Research (Second Edition) Part-4 Chabbra T.N., Marketing Management: Published by: Dhanpat Rai & Co. Horper N. Boyd, (2004) , Marketing Research (7th edition) , Richard D. Irwin Journals: Annual Reports of IFFCO Ltd. Of 2010-11 Marketing strategies of IFFCO

Websites: www.iffco.nic.in www.fert.nic

Bhagwan Parshuram Institute Of Technology

Page 59