project report

“Product life cycle: Understanding and strategy implementation in

saturated market of MACHETI and growing market of FAST-MIX in

Uttar Pradesh”

Submitted in partial fulfillment of the requirements for the Post Graduate

Diploma in Management (PGDM)

Agri -Business and Plantation Management (ABPM)

SUBMITTED BY

Prathamesh Hanmant Ghorpade

(Roll No.10PGDM-42)

Under the Guidance of:

Mr. Krishana Kumar

(Regional Coordinator)SICPL

Uttar Pradesh

Submitted to:

Dr. John Mano Raj

Assistant Professor (Marketing)

INDIAN INSTITUTE OF PLANTATION MANAGEMENT, BANGALORE

(An Autonomous Organization Promoted by the Ministry of Commerce and

Industry – Govt. of India)

Jnana Bharati Campus Post Malathalli

Bangalore 560056

August 2011

DECLARATION

I hereby declare that the CTS report entitled “Product life cycle:

Understanding and strategy implementation in saturated market of

MACHETI and growing market of FAST-MIX in Uttar Pradesh”

submitted for the partial fulfillment of the requirements of Post Graduate Diploma

in Management (Agri-Business and Plantation Management) of Indian Institute of

Plantation Management (IIPM), Bangalore is my original work and not submitted

in partial or full for award of any other degree, diploma, fellowship or similar

titles.

Date : (PRATHAMESH HANMANT GHORPADE)

Place : Bangalore Enrollment No.10PGDM42

Acknowledgement

First and for most, I wish to thank Sinochem India company Pvt. Ltd. for giving

me this opportunity to study and present the report on “Product life cycle: Understanding

and strategy implementation in saturated market of MACHETI and growing market of

FAST-MIX in Uttar Pradesh”. It has been my first exposure to practical work life and the

experience which I have got here while working on this project in Sinochem will indeed

be one of my most cherished ones.

Professional accomplishments are always Team oriented and as we all know

that Together everyone achieves more, so I take this opportunity to thank all those who

have guided me in the successful completion of this project. I would like to thank my

project guides Mr. Krishana Kumar (Regional Coordinator, Uttar Pradesh) for all

the pains he has taken to guide me in my project work.

I also take this opportunity to mention the names of Mr. Manoj Bhanadari

(Reginal Business Manager, U.P. & Uttarakhand), who were always guided and help

me out during my project work.

I also take this opportunity to mention the names of Mr. Jitendar Gangawar (Market

Development Officer) who were always present to help me out during my field data

collection.

I would like to express my gratitude and thanks to Dr. S.John Mano Raj

(Assistant Professor) for his support and kind blessings. He has been an everlasting

source of inspiration and guidance. I would also like to forward special thanks to K.

Narenderan (lecturer) for his excellent cooperation and encouragement.

This acknowledgement would be incomplete if I don’t mention a special regard to

my family members, friends, and all those who have motivated me to perform better than

the best.

CONTENTS

CHAPTER TITLE PAGE NO

EXECUTIVE SUMMERY

1. INTRODUCTION

2. A BIRD EYE VIEW TO SINOCHEM

CROP CARE INDIA LIMITED

3. REVIEW OF LITERATURE

4. DATA PRESENTATION AND

ANALYSIS

5. FINDINGS AND CONCLUSION

6. APPENDICES

7. REFERENCES

Executive Summery

India’s agricultural production has shown a growth of 2.7% p.a. in last 40 years,

contributing today to a one fifth of its GDP. Food grain production in 2010-11 has

increased to 232.07 million tonnes. Agrochemical industry played an important role in

the overall agricultural growth and productivity in India. Weeds are responsible for

almost 33% loss in final production.

Globally, herbicides represent the largest group within agrochemicals. Chemical

weed control is slowly becoming one of the more important and reliable measures in

weed management systems in India. Machete (Butachlor 50%EC) was pioneer chemical

herbicide in paddy introduced by Monsanto India and today also holds good position in

the market. To plan effective marketing policy understanding of product life cycle stage

is an important factor and hence this project entitled “Product life cycle: Understanding

and strategy implementation in saturated market of MACHETI and growing market of

FAST-MIX in Uttar Pradesh” was conducted.

Understanding buying behaviour of the farmer’s w.r.t. different brands and

products was important phase as it will give the market trends and positions of major

competitors in the market. Some of the important findings were to understand market

leaders like PR113 (Seeds), Machete (Pre emergence herbicide), Nomini Gold (Post

Emergence herbicide), IFFCO (Fertilisers) and Bayer Crop Sciences (Insecticide and

Fungicide) which were preferred by farmers. Important reasons for shifting their

preferences from one brand to another were impure quality and unsatisfactory results

with existing brands.

Most of the paddy growing farmers were considering weeds as one of the major

contributor to the loss in field. Almost 71% farmers were considering weeds as a major

problem in paddy production. Application of chemicals and manual weeding were most

preferred practices by farmers. Degree of chemical usage was increased as increase in

land holding of the farmers. Machete was most popular brand in paddy herbicide and

now its generic name for Butachlor 50% EC. Rifit was reported to be a tough competitor

for Machete in pre emergence segment. Dealers and fellow farmers i.e. word of mouth

were reported to be important sources of information about brands to farmers.

Sinochem Crop Care is very particular about fieldwork and gives maximum

attention on highlighting product in minds of farmers. Different awareness programmes

were judged for their effectiveness in field. Most of the Dera Farmers were aware about

different programmes conducted by company. Awareness levels were decreased as

decrease in land holding of the farmers. Farm meetings, field demonstrations and jeep

campaigning were most effective methods. Degree of usefulness was recorded to be

higher in farm meetings and field visits. Effort from the company to identify the original

product Machete i.e. embossed seal on packaging was appreciated by the farmers by open

heart.

Machete is one of the oldest herbicide in paddy market and eventually it is

attending the maturity phase in life cycle and hence it is very important to look for the

proper alternative to the existing product. Fast Mix was creating good impressions among

the farmers due to its ability to work in low water areas and uplands. It can be very good

alternative for Machete and have good bright future as paddy herbicide.

LIST OF TABLES

Table

No Title

Page

No

1 Fertiliser consumption Pattern in Uttar Pradesh

2 Pesticide Consumption Pattern in Uttar Pradesh

3

Understanding buying behaviour of the farmer’s w.r.t. different brands

and products in rice seeds

4

Understanding buying behaviour of the farmer’s w.r.t. different brands

and products in Herbicide

5 Understanding buying behaviour of the farmer’s w.r.t. different brands

and products in Fertilisers

6 Understanding buying behaviour of the farmer’s w.r.t. different brands

and products in Insecticide

7 Understanding buying behaviour of the farmer’s w.r.t. different

brands and products in Fungicide

8 Understanding reasons for dissatisfaction in different agri-input sectors

9 Major Issues Affecting Paddy Production in Beesalpur

10 Intensity of Weeds as an Important Problem in Paddy Production

11 Important Methods of Weed control in Paddy

12 Usage Behaviour of Herbicide in Paddy

13 Awareness about Different Programmes and Relative Participation

14 Rating of Different Awareness Programmes by Farmers

15 Sales of Machete

16 Important Players & New Entries in Butachlor Business

LIST OF FIGURES

Figure

No Title

Between

Pages

1 Losses in production caused by different factors (%)

2 Global Market Size of Pesticide Industry (US $)

3 Global Geographical Share in Pesticide Consumption 2009

4 Global Market Share by Revenue 2008 (%)

5 Market distribution by Product Category, 2009 (%)

6 Market distribution by crops, 2008 (%)

7 Per capita consumption: Fy09 (kg/ ha)

8 Market distribution by product category (% of total)

9 Crop wise pesticides consumption (% of total)

10 State-wise pesticides consumption Fy09 (% of total value)

11 Understanding buying behaviour of the farmer’s w.r.t.

different brands and products in rice seeds


different brands and products in Herbicide


different brands and products in Fertilisers


different brands and products in Insecticide


different brands and products in Fungicide

16 Understanding reasons for dissatisfaction in different agri-

input sectors

17 Major Issues Affecting Paddy Production in Beesalpur

18 Intensity of Weeds as an Important Problem in Paddy

Production

19 Important Methods of Weed control in Paddy

20 Usage Behaviour of Herbicide in Paddy

21 Evaluation of all brand promotional activities undertaken by

Sinochem India

22 Product Life Cycle of Machete and Fast Mix

LIST OF PLATES

Plate No Title Between

pages

1

Brand Promotional Activities Undertaken by Sinochem

India

2 POP Displays for Machete

3 POP Displays for Fast Mix

1. INTRODUCTION

1.1 Back ground of Study

India’s agricultural production has shown a growth of 2.7% p.a. in last 40 years,

contributing today to a one fifth of its GDP. From a mere 52 tonnes in 1951-52, the food

grain production in 2010-11 has increased to 232.07 million tonnes. However, differences

in soil fertility and corresponding agricultural growth as well as unreliable agricultural

produce. This has been further worsened by farmer illiteracy, backwardness and poverty.

Notwithstanding, an important role in the overall agricultural growth and productivity in

India has been due to the agrochemical industry. The agrochemical market in India has

been grown over the decades, with the farmers having been inclined towards adoption of

agrochemicals to protect their crops (Sahney, S. and Shrivastava, A., 2008).

Weeds are major obstacle for Indian agriculture, as elsewhere in the world. Weeds

compete with crops for moisture and nutrients and counts for around 33% of all losses in

a crop (Fig 1). Loss of yield due to weed infestation is variable and is more pronounced

in crops grown under rain fed conditions. Some parasitic weeds draw water and nutrients

from crop plants and can inflict severe damage. Further, weeds serve as alternate hosts to

pathogens and also harbour pests. Control of weeds during early stages of crop growth,

when the young seedlings of crop plants are unable to compete with hardy weeds, is

crucial for capturing yield potential. For this reason, labour demand for weeding

operation is high during early phase of crop cycle and manual weed control over large

areas is not feasible from the point of labour supply and monetary costs. Some weeds that

are wild relatives of crop plants are difficult to distinguish from crop plants at early

stages and pose challenge for manual weeding. Under these situations, chemical weed

control is relevant for realizing higher productivity and production.

Globally, herbicides represent the largest group within agrochemicals. In India

this is still not the case. Chemical weed control is slowly becoming one of the more

important and reliable measures in weed management systems in India. In India, about

6000 tons of herbicides are currently used for weed control, mainly in irrigated crops

(about 77% on wheat and rice) and on plantations (about 10%). However, herbicides

form only 12% of the pesticides used on crops in India.

33%

26%

26%

15%

Fig. 1 Losses in production caused by

different factors (%)

Weeds

Insects

Disease

Rodents and others

1.2 Need of Study

Butachlor, one of the famous names in the family of herbicides and it is a very

familiar name among the farmers whenever there is infestation of weeds in their paddy

field. Butachlor was firstly brought by Monsanto as a solution for the weeds in paddy

fields under the trade name Machete. Machete has become a boom for the paddy growing

farmers but in the recent few years many companies have come up with their products

containing Butachlor salt and diluting the market. As Sinochem Crop Care (earlier

Sinochem India Company Pvt. Ltd.) has taken over Monsanto company's Butachlor and

Alachlor businesses in India, Philippines, Thailand, Vietnam, Pakistan and Taiwan

(China) on March 1, 2008 and Up to September 1, Sinochem India has completely taken

over Monsanto’s Butachlor and Alachlor businesses in India and started to try to

introducing new types of agricultural chemicals from China to India.

As now Machete is being marketed by “Sinochem Crop Care” and the company is

new in India so to retain the existing customers of machete, to catch switchers and to

increase the market share, brand promotion is needed.

Beside this as Machete is in the market for last thirty five years it has reached to

its maturity stage and now farmers are slowly switching to other new salts. So to retain

the customers and to attract new customers the company have positioned themselves with

their new innovative product Fast-Mix with same chemical constituent i.e. Butachlor,

which requires less water to work effectively on the weeds. Actually it is a water based

herbicide unlike Machete, oil based and which requires more water in the paddy field to

work properly.

Now Fast-Mix has got its own credibility among farmers and they are satisfied

with this product and its results in their field. Since it has been introduced in the market

before five years, so it is very important to know the status of this product in the market

i.e. Product Life Cycle and stage in which it lies, because by knowing this we can be able

to formulate new marketing strategy i.e. introduction of new promotional tools for

increasing brand awareness and for brand building. Along with this by introducing all

new tools we can educate farmers about the product, its identification and quality.

Because many progressive farmers know about Fast-Mix but they can’t identify it and

they get cheated by the dealers and the distributors and they give them some spurious

brand on which they are getting good margins. These low quality products do not give

desired results in the field and farmers have to face great degree of loss due to weeds. So

for increasing brand awareness among farmers, for brand building and for determining

particular stage of product life cycle it is very important to conduct some promotional

activities and, to formulate these strategies we should know the stage (introduction,

Growth ,Maturity and Decline), in which product Fast-Mix lies.

1.3 Objectives

• To study the Buying behaviour of farmers of Beesalpur Tahsil for Agri-inputs.

• To study usage pattern of herbicide by farmers.

• To evaluate of all the brand promotional activities.

• To determine particular stage in Product Life Cycle of the brand Machete and

Fast-Mix.

1.4 Research Methodology

1.4.1 Type of research

To fulfil the objectives of the study descriptive research was conducted. The basic

emphasis of this study was on knowing farmers views for the brands Machete and Fast-

Mix, their opinion, perception, attitude and other motivational factors which drive

farmers to purchase this product. This study is also emphasizing the effectiveness of

brand promotional tools which will be helpful for determining the stages of product life

cycle. Different sales promotional tool applied by the company in the market. It also

described the awareness level of farmers and dealers opinions for the product and reason

for which the farmers was opting for one brand of herbicide as compared to other brands.

1.4.2 Tools for data collection

Questionnaire containing both open ended and closed ended questions was used

as main tools for data collection from the farmers, distributor and dealers.

Sources of Primary Data

Primary data regarding the study were collected from the farmers by using

questionnaire.

Sources of Secondary Data

Secondary data regarding area under cultivation and cropping pattern was

obtained from Department of Agriculture of State Government (KVK, agriculture

development officer) and Company’s previous year’s data.

1.4.3 Population

Population for study selected was all paddy growers of Beesalpur District

Peelibheet (U.P.).

1.4.4 Sample Design

Sample Size: - 450 Farmers from 81 villages

Sample Unit: - Farmers

Sampling Technique: - Stratified random sampling (strata based on the land holding size)

1.4.5 Period

The research work was carried for 58 days from 2nd

May to 30th

June.

1.4.6 Tools For analysis

• Questionnaire

• Industry analysis

1.4.7 Limitations

• Time constrains was one of the limitations in carrying out study.

• A large area for study has to cover.

• Heavy workload.

• Reluctance of farmers in answering questions.

1.5 Location

This project titled “Product life cycle: Understanding and strategy implementation

in saturated market of MACHETI and growing market of FAST-MIX in Uttar Pradesh”

was conducted in the Beesalpur tehsil under Bareilly territory of U.P. The study was

conducted in the villages of Beesalpur. The list of villages in different districts where

promotional activities like farmer meeting, group discussion, individual farmer contact,

mandi contact, van campaign, tele-campaign, postering were carried out by me were as

follow.

Villages in Beesalpur

1 Muralikheda 2 Gularia 3 Mudha

4 Tandol 5 Pokharapur 6 Shirkhana

7 Sundarpur 8 Pipariya 9 Sundarpur

10 Bilandpur 11 Indalpur 12 Daluria

13 Saradarpur 14 Saidapur 15 Duriyatwala

16 Badara Udaipur 17 Dimalpur 18 Bansalia

19 Mandanpur 20 Khumaria 21 Bhopatpur

22 Bansalia 23 Rampur 24 Himmatpur

25 Haripur 26 Mahaliaya 27 Kannapur

28 Mohapur 29 Chapori 30 Karailli

31 Marrori 32 Ghanshampur 33 Pagar

34 Badepura 35 Meerpur Hempura 36 Bamrolli

37 Lilhar 38 Navadiya 39 Rampur Amrut

40 Churaha Phirsa 41 Dhakariya 42 Rampur Amra

43 Mudgoan 44 Dhangoan 45 Teda Shriram

46 Charkhuta 47 Gahunia 48 Firshaha

49 Khajuria 50 Kanparia 51 Harunagar

52 Nauwa 53 Ghonguchaiya 54 Karnayaa

55 Azampur 56 Akbarabad 57 Kamalpur

58 Luhich Nath 59 Baribara 60 Aktiyarpur

61 Methia Chaham 62 Dhaka Ghansham 63 Padari Kishanpur

64 Sikandarapur 65 Bhawarkheda 66 Pawan Nagara

67 Ughanapur 68 Dharmanalpur 69 Charkhidevipur

70 Vihar 71 Lidhpura 72 Aamkheda Jalalpur

73 Maniya 74 Banda Manpur 75 Jaipalpur

76 Bhatpura 77 Saidapur 78 Hartheli

79 Meerpur Dhakariya 80 Tajpur 81 Neerath

AREA OF WORK

2. A BIRD EYE VIEW TO SINOCHEM CROP CARE INDIA LIMITED

2.1 Company profile

On Sep 3, Sinochem India Co. was established in New Delhi, marking a huge step

forward achieved by Sinochem's overseas agricultural chemical project and laying a

sound basis for the company to fully carry out its agricultural chemical strategy outside

China. Agricultural chemical is a core business sector of Sinochem International. After

taking over Monsanto Company's Butachlor and Alachlor businesses in India,

Philippines, Thailand, Vietnam, Pakistan and Taiwan (China) on March 1, 2008, the

preparation for the construction of Sinochem India Co. was officially initiated. Up to

September 1, Sinochem India has completely taken over Monsanto’s Butachlor and

Alachlor businesses in India and started to try to introducing new types of agricultural

chemicals from China to India. China at the end of 2003 and in three years has

successfully increased the product on ground of Machete, Harness and Machete Plus by

13%, 40% and 300% respectively, and total sales of the four products by 20%." In 2006,

the total sales revenue of the major operations of Sinochem International reached RMB

15.4 billion and its total assets over RMB 7.9 billion. It is the company with customers

from more than 100 countries and regions worldwide. Sinochem International, Sinochem

Corporation (Sinochem) (formerly known as China National Chemicals Import & Export

Co) was founded in 1950. It is the earliest Chinese company to rank among Fortune 500

and has remained on the list for 16 times consecutively. Company’s outstanding

performance of 30% net profit compound growth rate and been recognized as one of

China's Top 100 listed companies by Fortune for 7 consecutive years.

It ranks first among the "100 Best Managed Chinese Listed Companies" by the

Institute of World Economy & Politics, the Chinese Academy of Social Sciences, and

also tops "China's Best Board of Directors" by Directors & Boards magazine and

Chinadirectors.com. The company's stock has been selected as constituent stock for both

the Shanghai Stock Exchange 180 index and Shenzhen 300 index. SINOCHEM yielded a

total of US£14.993 billion which was an increase of 13.1% over that of the previous year.

Its export volume totaled US£3.456 billion, with US £2.341 billion worth of crude oil and

petroleum products; chemicals, US£741 million. Its total import volume was US£3.668

billion. It’s importing and exporting also developed fast, reaching US£7.857 billion,

which was an increase of 36.4% over that of the previous year. SINOCHEM set up

regional groups in America, Hong Kong, Oceania, as well as 6 business centres dealing

in the business of petroleum and chemical fertilizers abroad. Sinochem has established 85

organizations and agencies in more than 20 countries and regions all over the world. As a

result, and international operating network has-begun to take form.

On April 12, 2007, Sinochem merged with Shenyang Research Institute of

Chemical Industry (hereinafter referred to as “Shenyang Institute”) upon the approval of

the State Council, and Shenyang Institute became an affiliate fully owned by Sinochem.

On June 13, Sinochem merged with China National Seed Group Corporation (hereinafter

referred to as “China Seed Corporation”) upon the approval of the State Council, and

China Seed Corporation became an enterprise fully owned by Sinochem.

This year the company has changed its name and repositions it as “Sinochem

Crop Care”.

2.2 Competitors

Sinochem Crop Care Company has both national & multinational competitors like

Monsanto, Syngenta, DuPont, Bayer, Dhanuka, Nagarjuna, Tata Rallis, UPL, and

Pesticides India. These all companies are the major competitors for the company. These

companies have large customer base because they entered in the market very early, and

they have a good market share. This year (2011) some other companies have entered (eg.

Punjab Pesticides) in the market and they may be the good competitor in coming years.

The major companies whose Herbicides are available in the market and which are having

close competition with Machete and Fast-Mix are as follows.

• Syngenta

• Bayer

• Nagarjuna

• Pesticides India

• Doupont

• Excel

• Excel

• Dhanuka

• UPL

3. REVIEW OF LITERATURE

The socio-economic scenario in the agricultural sector in many of the developing

countries warrants the substitution of labour with machines and chemicals, at a faster

pace (Huang and Rozelle 1996). The emerging agricultural scenario in favour of

agribusiness is likely to increase the use of pesticides further and the resultant

environmental and human health problems thereof.

Research findings already reported by various workers in the related fields

are reviewed under the following headings.

3.1 Agrochemical Industry in Globally

The global crop protection industry has registered a growth of 6% p.a. from 2005

to reach USD 43.2 Bn in 2009. This market is expected to grow further owing to the

increasing food and fuel needs and is expected to grow at 4% p.a. to reach ~USD 54 Bn

in 2015 (Fig. 2).

The crop protection chemicals market is mainly concentrated in the major

developed countries such as United States and Western European nations. Europe has the

largest share in the agrochemical market followed by Asia, Latin America and North

America. There is an increased usage of products in Europe due to high commodity

prices and in order to boost yield and quality. Increased demand for palm oil has led to

increasing usage of herbicides in Japan, Malaysia and Indonesia. Strong rice prices and

other food grains are driving the agrochemical consumption in India. In Latin America,

increased production of soybean and sugarcane for animal feed as well as for bio-fuels is

the driving the growth of agrochemical consumption (Fig. 3).

It is believed that the crop protection chemicals market has reached its saturation

in developed regions such as North America and Western Europe whereas regions such

as Asia Pacific, Middle East and Latin America will offer high growth opportunities in

the future. The global crop protection market is fairly consolidated with top nine

companies accounting for over 80% of the market. Syngenta, Bayer and BASF are the

market leaders in the global crop protection market (Fig. 4). Global crop protection

market is characterized by large number of mergers and acquisitions in the recent years.

Several large companies have consolidated their presence in the existing geographies or

25.8

33.2

43.2

0

5

10

15

20

25

30

35

40

45

50

2001 2005 2009

Fig. 2 Global Market Size of Pesticide Industry (US $)

6%

29%

25%

19%

23%

4%

Fig.3 Global Geographical Share in Pesticide Consumption

2009

Europe

Asia

Latin America

North America

ROW

(Govt. Taskforce on chemicals)

19%

17%

11%

11%

9%

6%

6%

5%

3%

13%

Fig. 4 Global Market Share by Revunue 2008

(%)

Syngenta AG

Bayer

BASF SE

Monsanto

Daw

Nufarm Ltd.

Dupont

Makhteshim Agan Group

Sumitomo Chemicals

Others

ventured into newer areas through acquisitions of local companies. Some of the recent

acquisitions include Arysta LifeScience's acquisition of Volcano Agroscience Limited in

2005, Nufarm's acquisition of Agripec (Brazil) in 2007. In 2010, Cheminova acquired

insecticide business from Isagro (Italy) to strengthen its presence in emerging markets of

India and Italy.

Herbicides are the most widely used agrochemical products globally, followed by

insecticides and fungicides. Fungicides is the highest growing segments as it helps

increasing yield, improving quality and in seed treatment. Individual sales of various

categories however depend on climatic conditions and crop variance. Herbicides are used

in most of the regions of the world. However, major markets for herbicides are

North America and Europe due to the favourable climatic conditions in these regions.

Insecticides are more prevalent in Asian countries. This is due to higher growth of cotton,

cereal, fruits and vegetables in these regions which have higher incidence of insect

attacks. Increased usage of genetically modified crops in North America has reduced the

usage of insecticides. Fungicides are used in almost all agriculture markets of the world

due to favourable climatic conditions for the fungal growth (Fig. 5).

Globally, fruits and vegetables and cereals account for the largest share of the

crop protection industry (Fig.6).

3.2 Agrochemical Industry in India

The use of pesticides in India has increased steadily from 1950- 51 onwards, and

currently, covers about 30% of the cropped area. The cropped area under the chemical

pest control has increased from 2.4, million hectares (1950) to 137 million hectares. Total

consumption was the highest during the 1980s, may be due to post-green revolution

spiralling effects (Devi, 2010).

The crop protection industry in India is generic in nature with ~80% of the

molecules being non-patented. Hence, strong distribution network and brand image act as

competitive factors. Crop protection chemicals are manufactured as technical grades and

converted into formulations for agricultural use. The crop protection industry consists of

technical grade manufacturers, formulators producing the end products, distributors and

end use customers. According to Pesticide Monitoring Unit, GOI, there were about 125

technical grade manufacturers, including about 10 multinationals, more than 800

45%

26%

26%

3%

Fig. 5 Market distribution by Product

Category, 2009 (%)

Herbicide

Fungicide

Insecticide

Other

26%

18%

13%

10%

9%

6%

18%

Fig. 6 Market distribution by crops, 2008

(%)

Fruit & Vegetable

Cereals

Maize

Soyabean

Rice

Cotton

Other

formulators and over 145,000 distributors in India in 2007. Over 60 technical grade

pesticides are being manufactured indigenously. Technical grade manufacturers sell high

purity chemicals in bulk (generally in drums of 200-250 kgs.) to formulators.

Formulators, in turn, prepare formulations by adding inert carriers, solvents, surface

active agents, deodorants etc. These formulations are packed for retail sale and bought by

the farmers.

India due to its inherent strength of low-cost manufacturing and qualified low-

cost manpower is a net exporter of pesticides to countries such as USA and some

European and African countries. Exports formed ~47% of total industry turnover in Fy10.

The industry suffers from high inventory (owing to seasonal and irregular demand on

account of monsoons) and long credit periods to farmers, thus making operations

'working capital' intensive.

Consumption of crop protection products in India is among the lowest in the

world. Per capita consumption of crop protection products in India is 0.6 kg/ ha compared

to 13 kg/ ha in China and 7 kg/ ha in USA. Some of the reasons for low consumption in

India are low purchasing power of farmers, lack of awareness among farmers, limited

reach and lower accessibility of products. This presents an immense opportunity for the

crop protection industry to grow in India (Fig. 7).

Insecticides form the largest segment of the domestic crop protection chemicals

market accounting for 55% of the total market. It is mostly dependent on rice and cotton

crops. Herbicides are the largest growing segment and currently account for 20% of the

total crop protection chemicals market. Sales are seasonal, owing to the fact that weeds

flourish in damp, warm weather and die in cold spells. Rice and wheat crops consume the

major share of herbicides. Increasing cost of farm labour will drive sales of herbicides

going forward. Fungicides, accounting for 20% of the total crop protection market, are

used for fruits and vegetables and rice Farmers moving from cash crops to fruits and

vegetables and government support for exports are increasing the fungicides usage.

Biopestiocides include all biological materials organisms, which can be used to control

pests. Currently a small segment, bio-pesticides market is expected to grow in the future

owing to government support and increasing awareness about use of non-toxic,

environment friendly pesticides. With increasing penetration of BT cotton, usage of

17

13 12

7 7

5 5

0.6

0

2

4

6

8

10

12

14

16

18

Taiwan China Japan USA Korea France UK India

Fig. 7 Per capita consumption: Fy09 (kg/ ha)

Scope for

growth

69

17 13

1

55

20 20

5

0

10

20

30

40

50

60

70

80

Insecticide Herbicide Fungicide Biopesticide & others

Fig. 8 Market distribution by product

category (% of total)

2004

2009

insecticides has witnessed a decline in the recent past. Its share in the total crop

protection chemicals has reduced from 69% in 2004 to 55% in 2009 (Fig. 8). On the other

hand, share of herbicides and fungicides has increased from 17% and 13% respectively in

2004 to 20% each in 2009. This is due to increased focus on fruits and vegetables and

higher awareness levels among end users.

Paddy and cotton are the major consumers of crop protection chemicals

accounting for 28% and 20% respectively of the total domestic crop protection chemicals

market. Fruits and vegetables also account for a significant share of the crop protection

chemicals market (Fig. 9). In recent years, consumption of insecticides has decreased due

to the introduction of BT cotton, which has lower risk of pest attacks. As a result,

pesticides usage on cotton as % of total has decreased from 33% in 2005 to 20% in 2009.

On the contrary, pesticides usage in paddy has been increasing mostly due to increased

popularity of hybrid varieties of rice, which require higher amount of pesticides. Share of

paddy in the total crop protection chemicals has increased from 24% in 2005 to 28% in

2009. Consumption of pesticides by fruits and vegetables has been relatively stable in the

recent years (Fig. 9).

The top three states Andhra Pradesh, Maharashtra and Punjab account for ~50%

of the total pesticide consumption in India. Andhra Pradesh is the largest consumer of

pesticides with a share of 24% (Fig. 10). The Indian crop protection chemicals market is

highly fragmented in nature with over 800 formulators. The competition is fierce with

large number of organized sector players and significant share of spurious pesticides. The

market has been witnessing mergers and acquisitions with large players buying out small

manufacturers. Key market participants include United Phosphorus Ltd, Bayer

Cropscience Ltd, Rallis India Ltd, Gharda Chemicals Ltd, Syngenta India Ltd, BASF

India Ltd, etc. Top ten companies control almost 80% of the market share. The market

share of large players depends primarily on product portfolio and introduction of new

molecules. Strategic alliances with competitors are common to reduce risks and serve a

wider customer base.

3.3 Agriculture in Uttar Pradesh at Glance

Uttar Pradesh is the most populous and fifth largest state in the Union of India.

Uttar Pradesh covers a large part of the densely populated Gangetic plain. The western

0

5

10

15

20

25

30

35

Cotton Paddy Fruits &

Vegetables

Wheat Pulses &

Oilseeds

Others

33

24

21

8 8 6

20

28

20

6

10 10

Fig. 9 Crop wise pesticides consumption

(% of total)

2005

2009

24

13

11

7 7

8

5

5

5

23

Fig. 10 State-wise pesticides consumption

Fy09 (% of total value)

AP

Maharashtra

Panjab

Karnataka

Gujarat

MP & Chattisgarh

Tamilnadu

Haryana

West Bengal

Others

region of the state is more advanced in terms of agriculture. Majority of the population

depends upon farming as its main occupation. Wheat, rice, sugar cane, pulses, oil seeds

and potatoes are its main products. Sugar cane is an important cash crop almost

throughout the state and sugar mills and other cane crushers who produce gur and

Khandsari are common throughout the state. Uttar Pradesh is an important state in so far

as horticulture is concerned. Apples and mangoes are produced in the state.

Uttar Pradesh is leading producer of food grains (418.65 MT) which contributes

19% food grain production of country. State is leading producer of wheat (260.27 MT)

which represents 33% production while third largest producer of rice (108.76 MT) in the

country (12% share). Fertiliser consumption of state is 80.77 MT while consumption per

hector was 158 Kg while NPK ratio was 11:4:1. Emphasis was given on the use of NPK

complex (Table 1). Pesticide consumption of sate was 6888 MT during 2008-09 where

39.72% was contributed by insecticides, 18.03% share by fungicides, 24.74% share by

herbicides and 15.62% bio-pesticides (Table 2).

3.4 Product Life Cycle Analysis in Agrochemical Product

Product life cycle management (or PLCM) is the succession of strategies used by

business management as a product goes through its life cycle. The condition in which a

product is sold (advertising, saturation) changes over time and must be managed as it

moves through its succession of stages. The understanding of a product’s life cycle, can

help a company to understand and realize when it is time to introduce and withdraw a

product from a market, its position in the market compared to competitors, and the

product’s success or failure (Komninos, 2002).

In his famous study forward “A review of agricultural pesticide pricing and

availability in Canada” Michael Rothschild (1990) put theory of costs could be described

as a product life cycle model. Early production of a good takes place in a high cost

environment. As the cumulative volume of production increases, learning and process

innovation takes place and costs decline.

Phillips McDougall (2005) reported relative allocation of industry R&D cost split

between these various product life cycle stages. Allocations of funds were reported to be

higher during initial phase of product life cycle.

Table 1. Fertiliser consumption Pattern in Uttar Pradesh

Table 2. Pesticide Consumption Pattern in Uttar Pradesh

S No Group of Pesticide

Achievements( MT)

2006-07 2007-08 2008-09

1 Insecticide 3025 3043 2736

2 Fungicide 1387 1307 1242

3 Herbicide 1804 1782 1704

4 Rodenticids /

Fumigants 205 138 130

5 Bio- pesticide 1048 1055 1076

Total 7469 7325 6888

Sl. No. Fertilizer

Fertilizer Distribution

2006-07 2007-08 2008-09

1 Urea 51.68 52.24 54.86

2 DAP 13.21 14.77 16.40

3 NPK 6.93 8.88 7.03

4 MOP 1.23 2.36 2.48

Total 73.05 78.25 80.77

Consumption (Kg/ha.) 153 155 158

NPK Ratio 17:5:1 11:4:1 11:4:1

4. DATA PRESENTATION AND ANALYSIS

The results of the study on “Product life cycle: Understanding and strategy

implementation in saturated market of MACHETE and the growing market of FAST-

MIX in Uttar Pradesh” are presented under the following major headings in this chapter.

4.1 To understand the buying behaviour of the farmer’s w.r.t. different brands and

products

Sinochem international is one of the leading Agri-input companies in the world.

As per the long term strategy of an organisation they are looking at India as a long term

strategy partner for all the agri-input categories like seeds, fertilizers, agrochemicals and

other operations in India. Hence understanding the buying behaviour of the farmers is an

important part of this strategy. Questionnaire was prepared w.r.t. rice crop which is the

important staple food in the region and the results are presented below.

4.1.1.1 Seeds

Major seed company varieties were selected based on their sales and farmers

responses. Varieties like PR 113 from different local companies and governmental

institutions; Prima, 6111, 6420, 6129 and 6444 (Ariz Series) from Bayer crop sciences;

Silky series from Advanta (UPL group) and others were grouped for the questionnaire.

PR 113 was found to be the successful variety widely accepted by the farmers. Overall

43% farmers preferred this variety over other varieties. PR 113 was widely adopted by

the Dera farmers (51 %) due to its high demand by the rice mills and higher production

capacity (Table 3).

Arize series was preferred by almost 28 % farmers in the region where Arize 6444

was leading the front with more than 10 % share in the demand of the hybrid rice by

Bayer Crop Sciences. Silky series from Krishidhan Seeds was demanded by the marginal

farmers (27%) with early crop and higher market price. Awareness about Silky was

increasing in region due to its performance and good returns.

Advanta seeds another important player in this industry was showing their presence with

PAC 835 which was quite popular with among the Dera farmers. But it was lacking in

other areas due to improper distribution network and lack of awareness. Other varieties

were not in such demand by the farmers due to the production capacity

Table 3. Understanding buying behaviour of the farmer’s w.r.t. different brands and

products in rice seeds

Varieties

Dera

Farmer

Large

Farmer

Marginal

Farmer Overall

PR 113 PR 113 51 42 35 43

Bayer

Prima 5 6 3 4

6111 2 1 11 5

6420 3 3 7 4

6129 3 6 5 5

6444 8 15 7 10

Krishidhan Silky 19 25 27 24

Advanta Pac 835 9 0 4 4

Other Others 0 1 1 1


products in Herbicide

Brands

Dera

Farmer

Large

Farmer

Marginal

Farmer Overall

Pre Emergence

Macheri 41 48 35 41

Fast mix 21 18 12 17

Top star 12 6 5 8

Refit 14 5 5 8

Trap 7 13 15 12

Thunder 2 7 8 6

other 2 3 21 9

Post

Emergence

Non user 0 4 33 12

Nomini Gold 85 71 45 67

Tata Tarak 15 25 23 21

Fig. 11 Understanding buying behaviour of the farmer’s w.r.t. different brands and

products in rice seeds

0

10

20

30

40

50

60

PR 113 Prima 6111 6420 6129 6444 Silky Pac 835 Others

PR 113 Bayer Krishidhan Advanta Other

Seeds

Dera Farmer Large Farmer Marginal Farmer

Fig. 12.1 Understanding buying behaviour of the farmer’s w.r.t. different brands and


Fig. 12.2 Understanding buying behaviour of the farmer’s w.r.t. different brands and


0

10

20

30

40

50

60

Macheri Fast mix Top star Regent Trap Thunder other

Pre Emergence

Pre Emergence


0

10

20

30

40

50

60

70

80

90


Post Emergence

Post emergence Nomini Gold Post emergence Tata Tarak Non user

and performance of the major players, even though players like Chambal seeds

(Uttamveer) and other local players like Pantnagar seeds and others were showing their

demand.

4.1.1.2 Herbicides

Herbicide is one of the important inputs in paddy as it affects yield up to 33%.

Machete was found to be the market leader in pre emergence herbicide segment with

leading market share up to 41% overall (Table 4), where it was more popular among the

Dera farmers and large farmers. Fast mix (Sinochem India Pvt. Ltd.) is one of the fastest

growing brands in the market due to its ability to work in less water and its good impact

on modern weeds. Refit (Syngenta Ltd.) and Trap (Isagro Ltd.) had a shared presence in

the pre emergence herbicide segment. Lack of awareness and credit issues were the major

reasons affecting the major pre emergence herbicide brands associated with marginal

farmers.

The post emergence segment was dominated by Nomini gold (Pesticide India

Ltd.) with more than 67% market share. Tata Tarak had a significant mark in the market

with 21% market share in post emergence herbicide market. Share of nonuser was higher

in marginal farmers due to their low land holding and higher cost associated with it.

4.1.1.3 Fertilisers

Green revolution during sixties and seventies created awareness among the

farmers for utilisation of fertiliser in field. Initially user behaviour was limited to the urea

and DAP but with changing time usage behaviour was changed radically and now

farmers are aware about customised fertilisers and micronutrients. Hence it was an

important agri-input segment to have huge impact on production and productivity. Some

of the important results of buying behaviour w.r.t. different brands are given below.

IFFCO was leading organisation when it comes to fertiliser sector. It was leading

almost all the categories as it was leading brand with overall 52% market share in urea,

49% share in phosphorus, 53% share in potash and 48% share in DAP. The market share

was highest due to the wide distribution network collaborating with village societies and

credit facility for the farmers. Share of marginal farmers was highest due to credit facility

given by societies (Table 5).

Table 5. Understanding buying behaviour of the farmer’s w.r.t. different brands

and products in Fertilisers

Company

Dera

Farmer

Large

Farmer

Marginal

Farmer

Urea

IFFCO 46 50 59

Tata Chemicals (Paras) 15 13 8

Chambal Fertilisers (Uttamveer) 31 24 19

NCF 5 7 5

RCF 1 3 5

Zuari 1 2 3

Others 0 1 1

Phosphorus

IFFCO 41 51 54



NCF 9 6 3

RCF 3 2 5

Zuari 5 1 5

Others 4 0 3

Potash

IFFCO 47 53 59



NCF 4 9 7

RCF 5 1 2

Zuari 3 2 3

Others 2 2 1

Zink Dayal (Talwar) 71 65 55

Others 29 35 45

DAP

IFFCO 36 48 61



NCF 10 6 3

RCF 6 4 3

Zuari 3 2 1

Others 5 1 0

Customised

Fertilisers

IFFCO 15 21 49



Micronutrients Tata Chemicals (Paras) 69 76 52

Others 31 24 48

0

20

40

60

Phosphorus

Dera Farmer Large Farmer

Marginal Farmer

0

20

40

60

80

Urea


0

20

40

60

80

Potash


71 29

65 35

55

45 0

100

200

300

Dayal (Talwar) Others

Zink


Marginal Farmer

0

50

100

DAP


Marginal Farmer

0 20 40 60 80

IFFCO

Tata Chemicals

Chambal Fertilisers

Custamized Fertilisers

Marginal Farmer Large Farmer

Dera Farmer

69 76 52

31 24 48

0

50

100

150


Micro nutrient

Others

Tata Chemicals


products in Fertilisers

Chambal fertilisers and Tata chemicals were preferred brands followed by IFFCO

respectively. Chambal fertilisers were dominant in traditional products like urea,

phosphorus, potash and DAP which is well known by its brand name Uttamveer. Tata

chemicals which introduced its fertiliser segment under brand name Paras Formula which

was leading new trends of fertiliser industry i.e. customised fertilisers and micronutrient

market (Table 5).

Zink is an important micronutrient for paddy cultivation in the region due to

deficiency in soil. Dayal Industries was market leader in this segment with its products

Talwar which contributes about 71% of total supply of zink in the area. Other brands like

Uttam (Chambal Fertiliser), Soniya (Crystal Pvt. Ltd.) were sharing remaining market.

Talwar was enjoying the market leadership due to its quality standards, awareness

programmes and strong distribution due to its innovative distribution channel like

Dayalbandhu Kendra.

4.1.1.4 Plant Protection Material

Plant protection products are an important segment in agri-input sector. It includes

both insecticides and fungicide products. Paddy is largest consumer of plant protection

material and hence huge potential to different companies with great attraction to this

segment. Study was conducted to understand insecticide and pesticide usage pattern,

results are presented below.

4.1.1.4.1 Insecticide

Important players in insecticide sector were identified based on pilot study. Most

preferred brand in the market was Bayer Crop Sciences. 21% Dera farmers preferred this

brand over other companies. Some of the important brands in Bayer basket were Regent,

Bayruril (Quinalphos 25% EC), Gole (Acephate 75% SP), Rogar (Dimethoate 30% EC),

Metacid 50 (Methyl parathion 50% EC), Confidor 200 S.L (Imidachloprid 17.8% SL),

Bilfen (Fenvelerate 20% EC & 0.4 % dust). These were most preferred by large farmers

(19%) as well as marginal farmers (13%).

Tata Rallis was second most popular brand in insecticide market. Preference for

Tata Rallis was varied from 18% (Dera farmers) to 12% in marginal farmers. Some of

important brands were Furadan 36 (Carbofuran 3%GR, 50% SP),


products in Insecticide

Dera farmer Large Farmer Marginal Farmer

Bayer 21 19 13

Tata Rallis 18 15 12

Syngenta 17 14 11

Nagarjuna 8 9 10

UPL 7 11 11

Excel Crop Care 4 7 8

Sinochem 3 2 1

Sumitomo 5 3 4

Chormandal 2 2 3

Chemchura 3 3 5

DSCL 2 3 3

Dhanuka 5 4 5

BASF 1 1 2

Daw Agro 2 1 1

PI 1 3 4

Uttam 1 2 2

other 2 1 5



Dera farmer Large Farmer Marginal Farmer

Bayer 17 15 12

Tata Rallis 14 13 11

Syngenta 13 12 9

Nagarjuna 11 9 10

UPL 8 11 9

Excel crop care 3 4 6

Sinochem 4 3 5

Sumitomo 3 4 3

Chormandal 2 3 3

Chemchura 3 5 5

DSCL 5 6 6

Dhanuka 6 7 9

BASF 1 2 2

Daw Agro 4 1 2

PI 1 1 1

Uttam 1 1 3

other 4 3 5




products in Fungicide

0

5

10

15

20

25

Dera farmer

Large Farmer

Marginal Farmer

0

5

10

15

20

25

30

35

40

45

50

Marginal Farmer

Large Farmer

Dera farmer

Balwan (Monocrotophos 36% SL), Marshal (Carbosulfan 25% SD), Tafgor (Dimethoate

30% EC), Contaf, Contaf plus, Asataf (Buprobenzine).

Insecticide market was one of the most competitive markets and even

multinational companies were facing problems to increase their market share and same

was reflected in the results. Syngenta was holing fare market share 17% among Dera

farmers, 14% among large farmers and 11% among small farmers. Among other farmers

other brands like UPL, Excel crop care; Nagarjuna etc. were popular (Table 6). Usage of

marginal brands was high among marginal farmers (8%) due to higher cost of branded

insecticide and pressure from dealers due to credit.

4.1.1.4.2 Fungicide

Trends in fungicide market were almost similar to that of insecticide market.

There was change in market share where small brands were one of the major challengers

to big brands in the market.

Bayer was most dominant player in fungicide market as well due to its big

product range and wide distribution system (Table 7). Market was dominated by Tata

Rallis, Syngenta, Nagarjuna, Dhanuka and DSCL respectively.

Dominance of major brands was challenged due to low price of domestic and

lower brands and higher margins to dealers.

4.1.2 Understanding reasons for dissatisfaction in different agri-input sectors

Farmers were very aware about the new developments in market. They were

adopting the best products in the category which they find reliable to improve their

production. Important reasons were identified and survey was conducted. Some of the

important reasons from the farmer’s point of view for brand shifting are given below.

The poor quality and unsatisfactory results of a particular seed variety is one

important reason for the shift as seen among the Dera farmers (Table 8). They are quite

willing to shell out more from their pockets so long as quality is assured and are quite

familiar with the fake brands in the market. A significant change in the farmer category

pattern is seen as more and more farmers are bothered about quality and yield. Marginal

farmers on the contrary were looking for value for money and were bothered about the

high prices.

Table 8. Understanding reasons for dissatisfaction in different agri-input sectors

Dera Farmers Large Farmers Marginal Farmers

Impure

qual

ity

Hig

her

pri

ce

Unsa

tisf

acto

ry

resu

lts

Unav

aila

bil

ity o

f

mat

eria

l in

mar

ket

Fak

e bra

nds

Impure

qual

ity

Hig

her

pri

ce

Unsa

tisf

acto

ry

resu

lts

Unav

aila

bil

ity o

f

mat

eria

l in

mar

ket

Fak

e bra

nds

Impure

qual

ity

Hig

her

pri

ce

Unsa

tisf

acto

ry

resu

lts

Unav

aila

bil

ity o

f

mat

eria

l in

mar

ket

Fak

e bra

nds

Seeds 41.33 8.67 37.33 10.67 2.00 34.67 18.00 28.67 8.00 10.67 18.00 44.67 18.00 4.67 14.67

Herbicide 28.67 1.33 40.67 1.33 28.00 20.67 6.67 34.00 12.67 26.00 8.00 41.33 7.33 19.33 24.00

Fertilisers 14.67 48.67 8.00 27.33 1.33 12.00 52.67 4.00 27.33 4.00 11.33 54.00 2.00 26.67 6.00

Insecticide 7.33 10.00 54.00 8.67 20.00 10.67 5.33 49.33 12.67 22.00 4.67 45.33 8.67 8.00 33.33

Fungicide 8.00 11.33 52.67 10.67 17.33 6.67 4.67 46.00 16.00 26.67 5.33 47.33 7.33 11.33 28.67

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

Dera Farmer Large Farmer Marginal Farmers

Seeds

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

Dera Farmer LargeFarmer

MarginalFarmers

Herbicide

0.00 10.0020.0030.0040.0050.0060.00

Dera Farmer

Large Farmer

Marginal Farmers

Fertilisers

0.00

10.00

20.00

30.00

40.00

50.00

60.00

Dera Farmer Large Farmer MarginalFarmers

Insecticide

0.00

10.00

20.00

30.00

40.00

50.00

60.00

Dera Farmer Large Farmer MarginalFarmers

Fungicide

Fig. 16 Understanding reasons for dissatisfaction in different agri-input sectors

In the herbicide segment, shifting pattern w.r.t. Dera farmers was due to

unsatisfactory results (40.67%), poor quality (28.67%) and fake brands (28%)

respectively. Unsatisfactory results (34%) and fake brands (26%) were the important

reasons for shifting in case of large farmers. Higher price (41.33%) and fake brands

(24%) were the main reasons for the shifting in marginal farmers. Most of the farmers

were happy with the supply of material in the market as it was not a major reason for

shifting usage behaviour (Table 8).

Major reasons for the shifting in fertiliser category were unviability of material

and higher prices (Table 8). Extent of shifting varied from different group of farmers.

Fake brands and unsatisfactory results were not the major reasons for shifting the

purchase designs. Strong distribution network of some of major fertiliser companies

(IFFCO, NCF, RCF, Chambal Fertilisers, DSCL, Tata Chemicals) were the important

reasons.

The plant protection segment, which included insecticide and fungicide, a major

shift in purchase pattern was observed due to the unsatisfactory results and fake brands

(Table 8). Shift due to fake brands (33.33%) was higher among marginal farmers where

purchase designs were influenced by the retailer. Dera farmers and large farmers were

more bothered about results of the chemicals in the field and hence shift in the brand

depends entirely upon the field results during the previous year.

Growth regulators are emerging as a new potential area in agrochemicals for

increasing production. The awareness among the farmers was least about this product.

4.2 Understanding Herbicide Usage Pattern

To understand herbicide usage pattern in Bareilly region it was important to

understand urgency of the situation and followed by the usage behaviour.

4.2.1 Major Issues Affecting Paddy Production

Few important problems in the paddy cultivation were thrown to farmers to

understand important issues in paddy cultivation. According to farmers major problems

were identified i.e. weeds, pest, diseases, water and labour problem. Responses were

recorded from the farmers and results were presented below.

Weed was found to be the major problem in paddy cultivation. About 30%

farmers irrespective of their land holding were recognising weeds as one of the major

problem which affect the yield of paddy. Dera farmers (35%) were more worried about

the weed due to large farm holding and higher cost of intercultural operations. In case of

large farmers (28%) and marginal farmers (25%) they were considering weeds as an

important problem but extend of the problem was small.

According to 25% farmers irrespective of their land holding water was second

important problem in paddy cultivation. Large farmers and marginal farmers were more

concern about the water supply and its availability. According to marginal farmers

scarcity of water was creating the huge production losses in paddy.

Pest (19%), diseases (13%) and labour issues (13%) were ranked respectively as

important problems in paddy cultivation. Extend of pest attack was considered as a major

problem by large farmers (21%) while 18% marginal farmers were bother about it.

According to the marginal farmers labour (17%) was one of the rising challenges for

them. Higher wage structure was one of the restricting factors for marginal farmers to

hire labour for different intercultural operations (Table 9).

According to the perception of overall farming community 71% farmers were

considering weeds as an important problem. Extend of agreement was higher with Dera

farmers (85%). Less difference was among the marginal farmers where 58% farmers

think weed as major issue others were thinking otherwise for weeds (Table 10).

4.2.2 Weed Control Methods, Awareness and Usage Pattern of Herbicide

Weed was major problem in paddy cultivation. After understanding major

problems faced by farmers the picture was even clearer about its intensity. For

understanding herbicide usage pattern it was important to understand different methods

mainly adopted by the farmers to control this problem. Results of study are presented

below.

Manual weeding was mainly practiced by marginal farmers (53%) mainly due to

smaller land holdings. The intensity of manual weeing was reduced with increasing land

holding (Table 11). Pattern of chemical control was totally opposite, Dera farmers (28%)

giving more importance on it. Major chemicals used were Machete as pre emergence

herbicide and Nomini gold as post emergence herbicide for large land holdings. Based on

Table 9. Major Issues Affecting Paddy Production in Beesalpur

Table 10. Intensity of Weeds as an Important Problem in Paddy Production

Dera

Farmer

Large

Farmer

Marginal

Farmer Overall

Yes 85 69 58 71

No 15 31 42 29

Dera Farmer

V.LOW LOW MOD HIGH V.HIGH

Weeds 1 3 9 8 15

Pest 0 5 3 6 3

Diseases 3 4 2 1 1

Water 2 5 7 9 3

Other (labour) 0 1 4 3 2

Large Farmer


Weeds 1 3 9 12 4

Pest 2 5 6 7 2

Diseases 1 3 3 5 1

Water 1 11 8 3 3


Marginal Farmers


Weeds 8 6 5 4 3

Pest 2 3 7 3 3

Diseases 1 3 4 3 5

Water 4 7 6 3 3


Fig. 17 Major Issues Affecting Paddy Production in Beesalpur

Fig. 18 Intensity of Weeds as an Important Problem in Paddy Production

WEEDS PEST DISEASES WATER Other (Labour)

Dera Farmer 35 17 11 26 11

Large Farmers 28 21 12 27 12

Marginal Farmers 25 18 16 23 17

0

5

10

15

20

25

30

35

40

Ratting Important Problems in Rice Cultivation

85 69

58 71

15 31

42 29

0

20

40

60

80

100

120

Dera Farmer Large Farmer Marginal Farmer Overall

Yes No

the availability of resources use combination for chemical and manual methods was

varied from 65% to 29% in Dera farmers to marginal famers (Table 11).

Understanding weed control method provided platform to understand usage

behaviour of herbicide. Major brands were selected based on the pilot study. Study was

divided in to two stages, in first stage was to understanding about product awareness and

usage pattern among farmers and second stage was to understand major sources of

information about brand.

All the farmers were aware about two major products i.e. Machete and Nomini

gold. Machete was popular due to its presence from long time in market since 1978 and

enjoying market leadership with huge trust and brand loyalty among farmers. Nomini

gold was more popular due to its performance as post emergence herbicide and enjoys

market leadership due to first entry advantage (Table 12).

Ratings were given for understanding usefulness of Machete to the farmers. 41%

Dera farmers gave high importance for use of Machete. Moderate importance was given

by the large farmers (38%) and marginal farmers (37%) for its use in paddy. According to

most of the farmers there is an emerging need to modify the technical of Machete as it

was losing its penetration power and was unable to check growth of modern weeds.

Among other brands Refit (92%) was more popular while it was being used by

93% farmers who have heard about it. Fast mix was heard by 73% of farmers while 74%

farmers were adopted this in there practice. Top star (70%) and Tarak (51%) were ranked

fifth and sixth respectively where 79% and 47% farmers have used these products among

them.

Major sources of information were dealers who influence the purchase

decisions. A newspaper was one of the major sources of advertising used by some of the

organisations. Word of mouth from fellow farmers was identified as important source of

information. While other activities like extension work form organisation, posters, POP

displays etc. were categorised under other category.

Among dealers Refit (62%) was most popular and was recommended to farmers

followed by Fast mix (57%). Top star (31%), Tarak (39%) and Machete (46%) was least

promoted by dealers. Newspaper advertises was one of the major advertising strategies

adopted by Bayer crop sciences for Top Star (23%).

Table 11. Important Methods of Weed control in Paddy

Table 12. Usage Behaviour of Herbicide in Paddy

Dera

Farmer Large Farmer

Marginal

Farmer

Manual Manual 7 18 53

Chemical Chemical 28 23 18

Both

If both,

Mostly

manual-

little

chem. 7 13 17

Mostly

Chem –

Little

manual 29 39 5

Equal 29 7 7

Name of

Chemicals/brand

Heard

Used

Where from heard ( dealer/paper/other

farmer/ others ( specify)

Dealer News

Paper

other

farmers other

Machette 100 100 46 0 43 11

Nomini Gold 100 68 50 12 36 2

Taarak 51 47 39 9 17 35

Top Star 70 79 31 23 26 20

Rifit 92 93 62 20 7 11

Fast mix 73 74 57 0 28 16

Fig. 19 Important Methods of Weed control in Paddy

7

18

53

28 23

18

65 59

29

0

10

20

30

40

50

60

70


Manual Chemical Both

0

5

10

15

20

25

30

35

40

45

Dera Farmer Large Farmers Marginal Farmer

V.LOW

LOW

MOD

HIGH

V.HIGH

0

10

20

30

40

50

60

70

Machette Nomini Gold Taarak Top Star Rifit Fast mix

Dealer

News Paper

other farmers

other

Fig. 20.1 Usage Behaviour of Herbicide in Paddy

Fig. 20.2 Source of Information about Different Brands

Fig. 20.3 Usefulness of Machete for Weed Control in Paddy

100 100

51

70

92

73

100

68

24

55

85

54

0

20

40

60

80

100

120

Machette Nomini Gold Taarak Top Star Rifit Fast mix

Heard

Used

Word of mouth is one of the major reliable sources of information to farmer and they

give more importance to such recommendations. The recommendations in form of word

of mouth were highest for Machete (43%) followed by Nomini gold (36%) and Fast mix

(28%).

Road act was one of the advertising strategies adopted by Tata Rallis for their

product Tarak and it helped them to create awareness among the farmers for their

product.

4.3 Evaluation of all brand promotional activities undertaken by Sinochem India

Sinochem India gives more importance to the reach out to farmers in fields (Plate

1). It has created a very good impression in the minds of farmers. It not only helped them

to improve the sales but also their products are establishing themselves as important

brands in the market. This objective was introduced in the study to judge impact and

effects of different extension activates by sales force of an organisation.

Frist stage was to understand the awareness about different activities undertaken

by sales team. Overall 69% farmers were aware about different promotion activates

undertaken by company for popularising Machete and Fast mix. Degree of awareness

was highest among Dera farmers (85%) while marginal farmers (52%) were relatively

less aware about these initiatives. Due to large farm holdings company was giving more

importance to the Dera farmers in promoting product as the rate of purchase was also

reported to high.

Based on the awareness level of different programmes participation of different

programmes were determined. Dera farmers (86%) were heard about farm meetings

while 65% farmers were participated in farmer meeting conducted by the sales team for

promoting Machete and Fast mix. Participation was highest for jeep campaigning where

91% farmers were aware about it while 81% farmers were actually benefited by this

programme (Table 13). Maximum effective method was observed to be jeep campaigning

due to its coverage in short time. Farm meeting was reported to be second most important

contact programme which helps to create good awareness about products and purchase

decision.

Farmer Meeting

Postering

Plate 1.1 Brand Promotional Activities Undertaken by Sinochem India

Jeep Campaign

POP DisplayPlate

1.2 Brand Promotional Activities Undertaken by Sinochem India

Table 13. Awareness about Different Programmes and Relative Participation

Table 14. Rating of Different Awareness Programmes by Farmers


Programme Heard Participa

ted

Not

heard

Heard Participa

ted

Not

heard

Heard Participa

ted

Not

heard

Farmers meet 86 65 15 63 36 37 45 31 55

Demo’s 45 15 55 33 21 67 11 4 89

Field Visit 69 59 31 57 42 43 56 29 44

Jeep campaign 92 81 8 89 64 11 95 54 5


Pai

nfu

l

Don’t

car

e

Ok

Ver

y

use

ful

Del

ightf

ul

Pai

nfu

l

Don’t

car

e

Ok

Ver

y

use

ful

Del

ightf

ul

Pai

nfu

l

Don’t

car

e

Ok

Ver

y

use

ful

Del

ightf

ul

Farmers meet 0 0 31 57 11 0 0 27 59 14 0 0 15 59 25

Demo’s 0 0 22 50 28 0 0 32 51 17 0 0 58 29 13

Field Visit 0 15 35 29 21 0 0 21 61 18 0 0 19 64 17

Jeep

campaign 14 21 53 13 0 0 7 34 47 12 0 0 9 69 22

85 69

52

15 31

48

0

20

40

60

80

100

120

Dera Farmers Large Farmers Marginal Farmers

No

Yes

01020304050607080

Pai

nfu

l

Do

n’t

car

e

Ok

Ve

ry u

sefu

l

De

ligh

tfu

l

Pai

nfu

l

Do

n’t

car

e

Ok

Ve

ry u

sefu

l

De

ligh

tfu

l

Pai

nfu

l

Do

n’t

car

e

Ok

Ve

ry u

sefu

l

De

ligh

tfu

l


Farmers meet Demo’s Field Visit Jeep campaign

0

10

20

30

40

50

60

70

80

90

DeraFarmers

LargeFarmers

MarginalFarmers

86

45

69

92

63 33 57 89

45

11

56

95

0

10

20

30

40

50

60

70

80

90

100

Farmersmeet

Demo’s Field Visit Jeepcampaign

Awareness

Fig. 21 Evaluation of all brand promotional activities undertaken by Sinochem India

Fig. 21.1 Awareness among Farmers about Different Awareness Programmes

Fig. 21.2 Awareness about Different Programmes and Relative Participation

Fig. 21.3 Rating of Different Awareness Programmes by Farmers

Participation

Plate 2 POP Displays for Machete

Plate 3 POP Displays for Fast Mix

According farmers irrespective of their land holding they were ratting farm

meetings very useful for them (Table 14). Large farmers (51%) were very delighted with

demonstrations conducted by sales persons while marginal farmers (58%) were feels ok

about these activities there were happy but not excited about it. Response for farm visit

was neutral while large farmers (61%) and marginal farmers (69%) were excited about it

and were rating this programme with very useful rating. Jeep campaigning was ratted

high by marginal farmers (69%) due to its timing.

Sinochem India has developed special packaging indicators to identify original

Machete and Fast mix as to create awareness. 95% Dera farmers identified seal embossed

is a good initiative to identify Machete. 100% marginal farmers were happy about this

initiative and were happy due to proper identification sign which will even help illiterates

to identify the original product and help to avoid fake brands.

4.4 Evaluation of product life cycle w.r.t. brands Machete and Fast mix

Product life cycle management (PLC) is the succession of strategies used by

business management as a product goes through its life cycle. The condition in which a

product is sold (advertising, saturation) changes over time and must be managed as it

moves through its succession of stages.

4.4.1 Machete

Machete is pioneer brand in paddy herbicide segment. After acquiring particular

brand from Monsanto India Sinochem India have given immense importance to this

product. Following points were considered to determine PLC of Machete.

Sales volume was increased considerably according to the available data Machete

brand was market leader in paddy herbicide business. Continuous growth was observed

in the sales as well as awareness of particular brand (Table 15). Growth in the sales was

18.92 % and 18.18% over 2008-09 and 2009-10 respectively. Sales volumes were almost

touching to the peaks and growth in the sales reduced over previous year.

Machete was launched in Indian market in 1975 and since it has served the

purpose. Over the year’s attractiveness of this segment attracted many major players in

industry. Some of the important competitors launched their product with same technical

and new entries are increasing day by day. Some of the important entrants are mentioned

Table 15. Sales of Machete

Table 16. Important Players & New Entries in Butachlor Business

Year Sales (000 Lit.) Growth

2008-09 185

2009-10 220 18.91

2010-11 260 18.18

Company Brand

Isagro Trap

DSCL Shaktiman

Chambal Fertilisers Uttamveer

Tropical Agro Thunder

Zuari Butasaan

Dhanuka Dhanuchlor

Lupin Nirmool

in the Table 16. Today Butachlor provides stage for more than 20-25 brands of different

companies in market and also attracting new players even today.

Retail price of Machete has fallen considerably due to high market competition

and proliferation of competing products. Reductions in margins to the dealers have made

competition even difficult as they prefer to sell the brands with more margins and

monitory benefits.

Sinochem India have launched new embossed symbol on packaging for proper

identification of brand Machete (Plate 2). Machete is promoted as original Butachlor in

different publication and meetings and emphasis is given on promoting same image

among the farmers. Awareness programmers were more concentrated towards creating

market pull (demand) rather than push.

Based on available information Machete can be placed in mature phase in product

lifecycle (Fig. 22). Current status of product will help to increase the sales for 4-5 years

but growth rate will be lower. Due to current situation in market, increasing competitors

and introduction of new molecule will create new challenges to the product.

4.4.1 Fast Mix

Fast mix (Butachlor 50% EW) was introduced in the market to satisfy demand for

herbicide which can work in water scarcity conditions. Water was one of the major

problems in paddy cultivation. Brand was acquired from Monsanto as a part of Butachlor

business acquisition. Following points were considered for understanding the PLC of Fast

mix.

Sales volume was low as compare to the other brands. Due to low awareness

levels farmers did not prefer to buy the product. Sales of the product were increased as

compare to the previous year but with repetitive buying from the farmers who have tried

earlier.

Competition for the market is very low as most of the competitors in the

Butachlor segment didn’t have the same product. Due to low awareness levels of this

product demand has to create in the market as it is an advance version of Machete for

drought conditions and uplands (Plate 3). Every time sales team visited the farmers we

have to be prompted to try the product.

Based on available information Fast Mix can be placed in introduction phase in

product lifecycle (Fig. 22).this product is future of Butachlor business in India. Due to

current situation in market, there is every chance of increasing competitors for Fast Mix.

Promotion of this product will help to establish this brand with trust and brand loyalty for

the product in the minds of farmers.

Sales

Profit

Time

Value

Product Development

Intro

du

ction

Growth Maturity

Fig. 22 Product Life Cycle of Machete and Fast Mix

Machete Fast Mix

Decline

5. FINDINGS AND CONCLUSION

“Product life cycle: Understanding and strategy implementation in saturated

market of MACHETI and growing market of FAST-MIX in Uttar Pradesh” study was

conducted with four objectives. Some of the important findings of the study were

presented below.

Buying behaviour of farmers were studied w.r.t. different segments in agri-input

industry. Buying behaviour was mainly depending on some of the crucial factors like

brand awareness, credit policies of dealer, dealer’s opinion, availability of product and its

price.

Even though farmers are depend upon many factors for making purchase decision

but they give prime importance to the quality and results of particular product. Impure

quality and unsatisfactory results are important reasons for change in buying behaviour of

farmers along with fake brands penetration in market.

Irrespective of their land holding major paddy producing farmers were

considering weeds as a major problem in cultivation of paddy in their field. Majority of

the farmers were using combination of manual and chemical methods for controlling

weeds in fields. Combination of manual and chemical method was found to be dominant

use of chemical was dominant in Dera farmers whereas degree of manual operations were

increased with decreasing land holding of the farmers.

Dealers were reported to be important source of information to the farmers and

they were having huge impact on their decision making. Almost for all the brands sealers

were playing important role to disseminate information. Word of mouth from fellow

farmers was reported to be the important source of information to the farmers. They were

more comfortable with is information source due to the confidence from the farmers of its

earlier results.

Dera farmers were more aware about different awareness activities taken by the

company to promote the product. Company was also concentrating this segment due to

higher consumption rate and brand loyalty to the quality brands. Degree of awareness

was decreased with decreased land holding. Farm meeting was found to be the most

effective source of awareness as it has very good conversion rate in final purchase.

Field visits were also rated higher by the farmers irrespective of their land holding

and it helped to build the good brand image in the minds of farmers due to proper

feedback mechanism by the company compare to the other competitors. Farm meeting

followed by jeep campaigning was most effective method as it act as a reminder to the

farmers.

Product life cycle is important tool for formulating marketing strategy of product

in the market. Product life cycle of Machete and Fast mix was determined based on the

primary and secondary data. Machete was reported to be in the maturity phase where

sales were increasing but at reducing rate while entry of new brands and molecule was

creating challenges to the brand. High level of duplicity and fake brands were harming

the image of brand. On the other hand Fast mix is in introduction to growth phase where

product stared to create good awareness due to its results and good awareness campaign

conducted by sales team.

1.

1.

6. SUGGESTIONS

“Product life cycle: Understanding and strategy implementation in saturated

market of MACHETI and growing market of FAST-MIX in Uttar Pradesh” study was

conducted with four objectives. Some of the important findings of the study were

presented below.

Machete is one of the major brands in the paddy herbicide market. Machete is

now became generic name for the Butachlor. Fake brands are also promoted as Machete

and huge duplicity harming the product in big way. It is necessary to bring some new

unique identification as of new embossed symbol on packaging already existed on

package.

Machete is most trusted brand in the paddy herbicide market and it will help the

other products of company to create its own image with the help of Machete. Uniform

symbol on every product will promote the quality and trust to the farmer which is created

by Machete in their minds.

With the changing needs and demands of the market it is very difficult to compete

in the market with same oil based technical formulation in market. Hence it is need of the

hour to promote Fast Mix on larger basis in Uttar Pradesh otherwise series of failures due

to certain uncontrolled reasons like rain and water supply it will affect the brand image of

Machete and Sinochem overall.

As a premium brand in herbicide margins for dealers are very low and hence they

are avoiding the sales of the product on large scale. They are diverting the farmers to

other brands like Trap and Thunder where they have more margins per lit. Introduction of

loyalty scheme to the dealers which will include the bonus points on the sales of given

targets based on the different products will help to induce loyalty as well as it will

promote the sales of other products which are offered by the company.

Machete is surrounded by many look alike and spell alike products in the market

where dealers take full advantage of illiterate farmers and hence more marketing force

needed to be add in the current team of people as work load is much higher and it affect

via neglecting some of the area’s due to lack of time in the season.

Fast Mix is prominent product for the future and considering the fact about small

and marginal land holders in the Uttar Pradesh need of new half litter package which will

allow the small farmers to purchase the product.

Post emergence herbicide is creating a good challenge to the pre emergence

products like Machete and Fast Mix and hence proper marketing strategy have to be

formed and implement to protect the damage by these segments to market share of

Machete and Fast Mix.

Farmer meeting and field visits are important aspects of the awareness

programme by the company and are working well for the company and the Machete

brand, but if it is promoted on the larger stage like series of farmer camps and training at

taluka place and important market places will help to promote brand on larger ground.

Newspapers are the cheapest mode of advertisement and also most effective one.

So company should think on giving advertisement in local newspapers. It will helpful in

creating brand value of company among farmers and promotion Machete and other

product.

Name:

Village: Tahasil: District:

Average Land

Holding Dera Farmer

Large Land Holding

(More than 3 Ha)

Marginal

Farmer

(Less than 3 Ha)

Crops Kharip Season : Rabbi Season : Summer Season :

(This module is designed to understand buying behavior of different brands in rice)

Q.1. Which company products you are using for last 3 years? (Tick appropriate)

Product Company Brand Satisfaction/

Dissatisfaction

Seeds

Herbicide Pre emergence

Post emergence

Fertilisers

Urea

Phosphorus

Potash

Zink

DAP

Customised

fertilisers

Micronutrients

Insecticide Sucking pest

Other pests

Fungicide

Growth Regulator

Others

Q.2. If no what are the important reasons for dissatisfaction?

Ranks

1 – Impure quality

2 – Higher price

3 – Unsatisfactory results

4 – Unavailability of material in market

5 – Fake brands

Q.3. How do you rate the following problems?

Pest:

Diseases:

Weeds:

Water:

Others:

Rating V.Low-1 Low-2 Moderate-3 High-4 Very High- 5

Q.4. Do you think weed is the major problem in Rice?

Product Ranks

Seeds

Herbicide

Fertilisers

Insecticide

Fungicide

Growth Regulator

Others

Yes

No

Q.5. How do you control weeds in your rice crop? (Multiple ticks)

Q.6. What chemicals are you using in weed control.

Type Names of chemicals/Brands

Pre emergent

Post Emergent

Q.7. What are the different chemicals/brands you have heard or have used?

Name of Chemicals/brand Heard Used Where from heard ( dealer/paper/other

farmer/ others ( specify)

Machette

Nomin Gold

Taarak

Top Star

Rifit

Fast mix

Manual

Chemical

Both

If both, Mostly manual- little chem.

Mostly Chem – Little manual

Equal

Other:

Q.8. How does you rate usefulness of Machette?

Rating - V.Low-1 Low-2 Moderate-3 High-4 Very High- 5

Q.9. Can you tell me why do you think so?

Q.10. What are the advantages and disadvantages of using Machette?

No. Advantages Disadvantages

1

2

3

4

Q.11. What are the important improvement in product and service do you feel?

Q.12. What do you feel about new seal embossed by the company on the packaging

material?

Q.13. Do you think it will help farmers to identify the brand? Why?

Yes Reason

No

Machete Fastmix

Q.14. Are you aware about the different initiatives taken by Sinochen India for

popularising Machette or Fastmix?

Yes

No

Q.15. What company contact programmes are you aware of or participated in?

Programme Y/No Heard of (Name co’s) Participated in (Name co’s)

Farmers meet

Demo’s

Field Visit

Jeep campaign

Q.16. Rate the current farmer programmes being conducted by Sinochem India that you

are aware of:

(First list all and then Rate them)

Programme Rating Remarks

1- Painful 2- Don’t care 3- OK 4- Very useful 5- Delightful

BIBLIOGRAPHY / REFERENCES

IndiaChem2010 Handbook on Indian Chemical Industry, Tata Strategic & Roland Berger

Crop Protection market in India 2008, Frost & Sullivan

Global crop protection chemicals markets 2009, Frost & Sullivan

Phillips McDougall report on agrochemicals

Crop protection Business in the New Decade, 2010 presentation, Cheminova

KRC Research weekender on Agrochemicals 2009

Thirty-seventh report of Standing Committee on Petroleum & chemicals on "Production

and availability of pesticides", 2002

Croplife India report on agrochemicals

Company websites and Annual Reports FY10: Bayer Crop Science, Rallis India, United

Phosphorous Limited, Syngenta India Limited, Gharda Chemicals Limited

Primary interactions with industry leaders and Govt. of India

Business Press

Chemical Weekly

Yara Fertilizer handbook

National Horticulture Mission

project report

Documents

growing market of fast

saturated market of

market leaders

market trends

project work

product life cycle stage

plantation management

management agribusiness