Market Research by Kapil Behare
- 1. Project Title- Marketing Research for Brand Awareness, Brand Image, Customer Satisfaction and Competitive Analysis of Vegetable Seeds Industry. Project Guide- External Guide- Mr. Samadhan Damdhar Internal Guide- Dr. KP Reddy Submitted By- Mr. Kapil Behare Mr. Manish Kumar FOOD AND AGRIBUSINESS SCHOOL, HYDERABAD
- 2. Content- Company profile Study area Objectives Research methodology Data Analysis and Interpretation (Related to farmers) Data analysis and interpretation (Related to dealer) SWOT Analysis Michael Porter Five Forces Model Plan of action (Based on 4p’s) Conclusion and Recommendations
- 4. • India is the 2nd largest producer of vegetables in the world next to China with an estimated production of about 100.0 million tons from an area of 6.0 million hectares. • The present annual requirement of vegetables is estimated to be 100 million tones and is expected to be over 135 million tones by 2010. • India shares about 15 % of the world output of vegetables from about 2.8 % of cropped area in the country. • Indian seed market can cross more than 10,000 crores worth of business in coming 10 years. • Presently there are about 200-225 private seed companies in India and volume of turnover, ratio between the private and public sectors is 60:40.
- 5. World top ten Seeds Company Company 2006 seed sales US $ millions 1. Monsanto + Delta & Pine Land (US) pro forma $4,476 2. DuPont (US) $2,781 3. Syngenta (Switzerland) $1,743 4. Groupie Lima grain (France) $1,035 5. Land O’ Lakes (US) $756 6. KWS AG (Germany) $615 7. Bayer Crop Science (Germany) $430 8. Takii (Japan) estimate* $425 9. Sakata (Japan) $401 10. DLF-Trifolium (Denmark) $352
- 7. • Bejo Sheetal Seeds Pvt. Ltd was set up in 1986 as a Joint venture between Bejo Zaden B.V. of Netherlands and Sheetal Hybrid Seeds Company of India. • The company produces hybrid variety of seeds of many vegetables like chilli, onion, potato, okra and tomato. • Bejo Sheetal having 240 ha of farmland, 4 ha of polyhouse and1 ha of greenhouse. • It is also having excellent breeding programms in tropical vegetable crops like tomato, hot pepper, eggplant, sweet pepper, short day onion, okra, bottle gourd, bitter gourd, ridge gourd, pumpkin, cucumber, and TPS (True Potato Seeds). • Company having successfully commercialized about 500 vegetable hybrids.
- 8. Major Hybrids of Bejo-Sheetal Seeds- Tomato: Tasty, BSS-211, 282, 320, 350, 366, 369, 419, 420, 422, 423, Sartaj, Tolstoy, Rakshak, param, Rahul, Sssultan, Charm, etc. Watermelon: BSS-358, 359, 360, 408, Swapnil, Sweetbaby, etc. Brinjal: BE-706, BE-707, Chaya, Pinki, Black Boy, Shilpa, Sandhya, etc. Bitter Gourd: Parachi, Priya, Sonam, Poonam, etc. Okra: Anokhee, Karishma, Saloni, Parful, etc. Cauliflower: Goodman, Fastman, Cassius, Somerast, Amazing, Latemen, etc. Cabbage: Red cabbage , Primero, Benson, General, Fresco, Governor, Rotonda, Fieldrocket, Gonzales, Morries, fieldman, etc. Sweet corn: Komal. Chilly: BSS-89, 140, 141, 202, 213, 219, 266, 269, 270, 273, 304, 305, 306, 307, 308, 414, 344, 375, 378, 376, 413, anmol, etc. Capsicum: BSS-89, 399, 421. Broccoli: Fiesta, Carrot: Samson-196, Bangor, Carson, Organza. Onion: Lucifer, Flare, Orient, BSS-262. Bottle Gourd: Akash, Shramik, BSS-333
- 9. • To study the potential of vegetable seed market and current status of major vegetable seed companies in Bellary area. • To know the perception of farmers and dealers about Bejo Sheetal brand and other major competitors. • To study the marketing activities adopted by different companies in Bellary Dist. • To undertake SWOT analysis of Bejo Sheetal seed. • To frame out suitable strategy for strengthening and repositioning the Bejo Sheetal brand in Bellary Dist.
- 10. • How to increase the brand image and brand awareness among the farmers. • What is the current status of Bejo Sheetal Seeds with other competitor in Bellary. • How to increase the satisfaction level of the farmers and dealers.
- 11. Study Area:
- 12. These are the villages which we covered- BELLARY HOSPET SIRUGUPPA SANDUR KUDLIGI Vigneshwar Camp P.K.Halli Sirigiri Krishnanagar Anandurga Laxminagar Kamalapur Dasapur Sushilanagar Moroba Kolegal Dharmapur Dammmur Bowalli Kotturu Bommanipelli Kamalchet Sangnakal Daulatpur Amalapura Moka Somasumudhrum Torangullu Konapuri Kalapuram Korugudu Hampi Dharmapur Benchikotil Vijaya-nagar Panchgiri
- 14. Research Design : • Descriptive type of research has been conducted. • It is also known as Quantitative Research. • Method of sampling: Simple Random Sampling • Sampling area: Bellary Dist (Karnataka). • Sample size: Total sample size is 380 ( 350 farmers and 30 Distributors/Dealers/Retailer)
- 15. Research Instrument: Structured questionnaire and personnel interviews with different farmers/Distributors/Dealers/Retailers. Source of data: (a) Primary data: Farmers and Distributors/Dealers/retailers. (b) Secondary data: From various sources (Agriculture magazine, Internet, Company’s employees etc.) Analysis of data: Simple percentage and average method. Results are presented in the form of charts, graphs etc.,
- 16. Data Analysis and Interpretation (Related to farmer)
- 17. • Brand Awareness- We asked to the 350 respondent. It has seen from the graphs that 51% of the respondents’ are aware of Bejo Sheetal Seeds brands and only 49% are not aware of it. Interpretation:- Awareness was less because of poor promotional activities and inadequate farmers meetings. Since out of 350 respondents only 140 respondent are using Bejo sheetal seed variety because of BSS variety don’t have pest resistance and adaptability to climate. Farmers are going for the local varieties.
- 18. •Loyalty with the Bejo Sheetal Seeds- YEAR RATING 1-2 years Not Loyal 3-4 years 5-6 years Loyal 7-8 years 9-10 years More Loyal More than 10 yrs From the above graph, we can say those farmers were using seeds more than 5 years , they are the loyal customers and those farmers were using seeds not more than 4 years, they are not loyal customers with the Bejo Sheetal Seeds.
- 19. • Source of purchasing Seeds- No of Attribute responde % nt Dealer 209 59.71 Retailer 117 33.42 Others 24 6.8 Observation: The graph shows that 59.71% farmers were purchased seeds from dealer and 33.42 %. farmers from retailer and 7% farmers were purchased seed from others like progressive farmer and research station. Interpretation: Since most of the farmers purchased the seeds from dealer, the dealer play an important role for selling seed and they can better understand the preferences of the farmers.Farmers are happy to take seeds from dealers because dealers are giving more discounts and good relations.
- 20. •Buying Decision- Attributes No of respondent Percentage (%) Dealer 200 57.14 Retailer 53 15.14 Others 97 27.71 Interpretation- Since most of the farmers are taking advice from dealer (57.14%) before purchasing seed. So the company should concentrate on dealer by giving more offers and regular visits
- 21. •Time for purchasing of vegetable Seeds- Interpretation- Most of the farmers were purchasing vegetable seeds one week before (62%). So the seeds will be available to the farmers whenever they need.
- 22. • Attitude and perception of farmer while selection the vegetable seed- Germination %, yield, brand image and price is the perception and belief held by consumer, as reflect to the minds of farmer. Thus, for determining the germination %, yield, brand image and price, one has to know perception of the farmer about a list of factor in vegetable seed. Therefore it was main focus of our study/survey was to know the farmer attitude and perception towards the purchasing seed. Rank given by Farmer 6 5 5 4 4 3 3 2 2 1 1 0 Germination % Yield Price Pest Resistance Adaptibility Climate Interpretation: - It was found that most of the farmers prefer the quality seeds in the form of good germination % (Rank 1) then they go for high yielding varieties (Rank 2) and considering the price factor at 3rd rank.
- 23. Competitor Analysis- Over all rank of Vegetable Seed Industry 9% 16% Syngenta 13% Mahyco 11% 22% Namdhari Seeds Ankur Seeds BSS 19% 10% Prabhakar Seeds Monsanto(Seminis) Rank of Vegetable Seed Industry according to Chilli Syngenta Mahyco Namdhari Seeds Ankur Seeds Bejo Sheetal Seeds Prabhakar Seeds Monsanto(Seminis) 0% 7% 24% 21% 13% 19% 16%
- 24. Comapny Ranking in all Vegetable Seed Industry 8 7 7 7 6 6 6 5 5 5 4 4 4 3 3 3 Overall Rating 2 2 Rating according to Chilli 2 1 1 1 0 This graph showing that in case of Bejo Sheetal is having 5th rank in all over vegetable seeds and in case of Chilli Bejo rank is 2nd , It means that farmer is satisfied with chilli variety.
- 25. • Problem occurring in crop and variety- Bejo Sheetal Variety Other companies Varieties Anthrognose in Chilli Leaf Curl in Chilli Both None Anthrognose in Chilli Leaf Curl in Chilli Both None 8% 14% 34% 22% 39% 21% 31% 31%
- 26. Cont… The graph shows that, Bejo Sheetal Seeds variety having 39% of anthracnose in chilli, 31% leaf curl in Chilli and 22% of both the disease problems and 8% of varieties having no problem while in others is like that 34% of anthracnose in Chilli, 31% leaf curl in Chilli, 21% of both the disease problem and 14% of varieties having no problem. Interpretation- We have seen that, in case of Bejo Sheetal Seeds Hybrid Variety (BSS-355) most of the farmers were suffering from disease/pest. That variety is having good yield but not resistance power, in case of Syngenta Seeds (HPH-204), Ankur Seeds (Pusa Jywla, G-4), and Namdhari Seeds (Chilli-01) are having good resistance to power as well as yield.
- 27. • Problems handled by company employee- Problems handled by company No of employee and dealer Attribute % Technical Assistance Regular Monitoring Training to Farmers Others Respondent Technical 58 42% Assistance 11% Regular 38 27% Monitoring 20% 42% Training to 28 20% Farmers Others 16 11% 27% Graph showing that, 42% respondent were getting technical assistance, 27% through regular monitoring, 20% by training to the farmers. Interpretation:- There was not any technical support provided by Bejo Sheetal Seeds, only competitor was providing support required by the farmer.
- 28. • Compensation fixed by the Company- Compensation fixed by the Company According to the problem According to the Crop damage Other reason Attributes BSS According to the problem 29% 29% According to the Crop 44% 27% damage Other reason 44% 27% The graph shows that, compensation fixed by the Vegetable seeds companies is as, 29% by according to problem, 27% by according to crop damage and 44% are having other reason.
- 29. • Time taken to resolve the problems by Bejo Sheetal Seeds- Time taken to solve the problem 1 week 2 week Problems not solved Respo- Time nse % 18% 1 week 25 18% 37% 2 week 63 45% Problems 52 37% not solved 45% The graph shows that 45% of the farmers said that their problem was resolved within two weeks, 18% of the farmers said that their problems were solved within one week, and rest 37% said that their problems were not solved.
- 30. • Are you satisfy with the compensation given company employee/ dealer Are you satisfy with the compensation Are you satisfy with the cmpensation given by Bejo Sheetal Seeds given by other companies Yes No Yes No 23% 28% 72% 77% In the above graph, 23% are satisfied with the compensation given by the Bejo Sheetal Seeds while 77% of farmers are not satisfied. In case of other companies, 72% are satisfied with compensation given by the companies while 28% are not satisfied.
- 31. • Market Activities adopted by Bejo Sheetal Seeds- Bejo Sheetal Seeds Other Seeds Industries Scheme Individual Contact Scheme Individual Contact Demonstration Campaiging Demonstration Campaiging Leaflet Distribution Faemer/Dealer Meeting Leaflet Distribution Farmer/Dealer Meeting 0% 0% 0% 23% 21% 7% 38% 18% 0% 10% 56% 27% In the above graph, marketing activities adopted by Bejo Sheetal Seeds are mainly 56% of leaflet distribution, 23% of farmers/Dealer meeting and 21% of demonstration while other companies having 38% of farmer/dealers meeting, 27% of leaflet distribution, 18% of demonstration, 10% of compaiging and 7% of scheme.
- 32. Data Analysis and Interpretation (Related to dealer)
- 33. • Source for purchasing of vegetable seeds- Source of Purchasing Vegetable Seeds 14 Attribute Response 12 12 10 Company 8 8 8 7 Distributor 7 6 4 3 Both a and b 3 2 Preferred Dealer 12 0 Company Distributor Both a & b Preferred Dealer The above graph shows the different source of purchasing seed, 8 of them purchase seeds directly from company, 7% from distributer and 12% from preferred dealer. Interpretation- Company should create and maintain good relations with the preferred dealer.
- 34. Pattern of Purchasing Seeds from Vegetable Company 70 60 Attribute Response % 60 50 40 Advance Booking 18 60 30 23.33 % of Respondent Cash 7 23.33 20 16.66 10 Consignment 5 16.66 0 Advance Booking Cash Consignment In above graph most of the dealers are purchasing the vegetable seeds through cash and very few dealers are using on consignment basis transactions. Interpretation: Since most of the dealer/retailers are purchasing seeds through cash, so if we can, we should prepare some different structure for scheme which would attract the dealer /retailer as well as farmers to go for our brand.
- 35. • Risk factor in vegetable seeds at the time of selling the vegetable seeds- Risk factor in vegetable seeds at the time of selling vegetable seeds Attribute Response % 0.6 0.5666 0.5 Expiry 8 26.66% 0.4 0.3 0.2666 Germination % 17 56.66% 0.2 % of Respondent's Packaging 0 0% 0.1 0.066 0.1 0 Fruit Setting 3 10% 0 Expiry Germination Packaging Fruit Setting Yield % Yield 2 6.60% Observation: The above graph is showing most of dealer viewed yield is the main risk factor at the time selling the seeds. Suggestion: By looking at the above graph of all respondent. We would like to suggest the company to improve quality of seed and yield level should be Maximum and tested by state government, so that the sales of vegetable seeds will be increase more.
- 36. Expectations from Vegetable Seed Companies 20 18 18 16 14 12 10 8 8 No.of Respondent's 6 4 4 2 0 0 0 Good Quality Seeds Field Work Visits to Dealer Sales Return No Expectation Services In the above graph % respondent expecting good quality seeds, % respondent expecting field work , % expecting after sales service and % expecting visit to dealer.
- 37. The Behaviour of BSS with dealers: Very Excellent Good Satisfactory Poor Poor Visits 1 15 9 5 0 Response to complaints 5 13 12 0 0 Price communication 6 14 10 0 0 Behaviour of Bejo Sheetal Seeds with dealers 16 14 12 10 Visits 8 Response to complaints 6 Price communication 4 2 0 Excellent Good Satisfactory Poor Very Poor
- 39. Strengths Weakness Good Quality hybrid seeds Less number of field staff as compared to Wider product line sale. Farmers and Seller’s satisfaction with yield It has to improve the quality seed. Strong research and development Don’t have Live plot and communication Strong capacity for processing and gap between farmers and staff. packaging Poor in promotional activities like demonstration, campaigning and farmers or dealers meeting Inadequate availability of seeds Opportunities Threat Area under vegetables is increasing Increasing competition in seed industry. Rising demand of vegetable seeds New entry of Multinational companies in Strong backup of R & D facility seed market. Company can provide good quality Introduction of viral resistance varieties in seed, high yielding varieties, disease and pest case of chilli. resistance varieties Introduction of new seed varieties of chilli Small and marginal farmers. having shelf life .
- 41. Industry analysis- According to Michael Porter, competition in any industry is inevitable, but there are 5 forces which work upon in an industry. He defined them as follow.
- 43. Product- Place BSS-355(Chilli Vara.) Bellary, Sandur, Siriguppa taluka in which farmers are main grower of chilli. Marketing Channel: (a) Communicating channel (b) Distribution channel (c) Service channel Price- Promotion •It should be affordable (a) Advertising: •Company is giving 12-13% margin to dealer (b) Sales promotion: By giving more offers to •If company will reduce 1% to all that should the be used live demonstration and visit to dealer (c) Display: Display of posters. and farmers.
- 45. • Major Findings- 1. Bejo Sheetal Seeds is having strong market in nearby villages only, especially in chilli. 2. Farmers prefer the seeds with good germination % as well as minimum price. Sometimes they may go for local varieties because of lesser price. 3. Farmers are buying seeds one week before sowing. Farmers are satisfied with the prices given by company. 4. We are lacking effective Distributor/Dealer meetings. 5. We are poor in promotional activities like Scheme, Campaigning, and Demonstration.
- 46. • Recommendations- * We have great opportunity to capture the vegetable seed market in Bellary Dist. * We should concentrate and target the chilli, which is mostly grown by the farmers in all the mandals of Bellary. * The frequency of meetings with distributors and preferred dealers should be increased. * We should concentrate on the marketing activities like Demonstration, Campaigning, and Individual contact. * Effective farmers meeting will create good brand image about the Bejo Sheetal Seeds. * We are having satisfactory price as compare to others, so we can easily capture the market from local competitors. * Prices of BSS seed should not be raised every year and it should be affordable and competitive pricing and packaging should be according to the requirement of farmer.
- 47. Conclusion- Bejo Sheetal seed ranked is ranked 2nd in chilli. So, Bejo Sheetal seed should target Chili to capture more and more market in Bellary Dist. Bejo Sheetal Seeds Ltd. variety having a excellent seeds quality, germination % and packaging. Bejo Sheetal Seeds Ltd. variety having satisfactory yield as well market price but in case of pest resistance it should improve. Bejo Sheetal Seeds Ltd. is better than its competitors in price affordability, margin and quality for the dealers and retailers. Bejo Sheetal Seeds Ltd. is also inferior in promotional activities like demonstration, farmers meeting and campaigning.
- 48. Bibliography and References • Gupta, S.P. (1997) Statistical Methods, Sultan Chand and Sons, New Delhi • Marketing management-I (Philip Kotler) • Aggrawal, R.L. (1998) Seed Technology, Oxford and IBH Publication, New Delhi • Swarp, (2000) Indian Seed Industry, Need of Second Green Revolution, Agriculture Today • Kothari, C.R. (1990) Research Methodology (Methods and Techniques), Wishwa Prakashan, New Delhi. • Aaker, D. A. (1996). Measuring brand equity across products and markets. California • www.wi98Agbussinessnew.htm • www.indiastat.com • www.dscl.com • www.rafi.org • www.indiaseeds.com • www.wikipedia.com
- 52. Thank You…