CHAPTER-5

MARKETING MANAGEMENT IN PLANTATIONS

5.1. Introduction

As a critical functional area, marketing has received

increasingly greater attention in the competitive business world since

the early modem era. The old concept of marketing has been

replaced by a new concept. The old concept focused on the firm's

existing product or services and considered marketing consist of

selling and promotion to maximize sales at profit. The new concept,

in contrast, focuses on the firm's existing and potential customers

and seeks to earn profit through customer satisfaction with an

integrated marketing progr. 1 'rmme.

5.2. Modern Marketing Concept

According to the modem concept 'the purchase of a

business is to create a c~,nsurner'.~ Marketing is the h c t i o n of

business concerned with th: creation of a customer. This means that

marketing is the essence of all business. Creation of a customer

means the identification ~f consumer needs and organizing the

business to meet these needs. According to the modem concept of

marketing, then a firm makes a conscious and organized effort to

find out what the member:; of the community needs and how it can

produce the maximum measure of satisfaction to them.3

' . WilliamLazer et.al, Perspective and viewpoints of managerial marketing, Illinois (1962), p413.

Hany Hanson, Meaning o f Modem Idarketing, p208. 3 E.Jerome Mc Carthy, Basic Marketing-a management approach (1964), pp 38-40.

From this it ]nay appear that everything a firm does is

marketing. However it is convenient to separate marketing as

distinct activity. According to modem marketing view, the basic

functions of a business firm include the following.4

1. Identification and assessment of markets

2. Formulating Market policy

3. The planning and operation of the marketing organization

4. Conduct of sale promotion through salesmanship and

advertising

5 . The costing and budgeting of marketing effort.

5.3. Market, Marketing and Marketing Management

5.3.1. Market

When we refer to the term market what immediately

comes to our mind is the market place of our areas. That means, in

general by market, we mean a particular place where the buyers and

seller meet and exchange goods to satisfy their wants. The term

market had a wider mean ng than its concept. It is not confined to

any place. According to Pro.Jevons, "originally a market was a

public place in town where provisions and other object were exposed

for sale, but the word has been generalised to mean any body of

persons who are in intricate business relations and carry on extensive

transaction in any commodity".5

In generally market means people with needs to satisfy,

money to spend and Willingness to spend. This is the three

characteristics a market.

4 American Marketing Association, A glossary of Marketing teams, Chicago ( I 960) 5 Prof. Jevons, Article of New York T'imes (1966).

5.3.2. Marketing

Marketing is a dynamic, existing and challenging activity.

It affords ample employment opportunity in the modem business

world. The success of business enterprises depends upon the

efficiency of marketing management. The marketing manager must

be aware of the changing needs and desire of consumers. He must

concentrate on demand stiinulating and demand hlfilling efforts of

the enterprise. Demand creation and demand fulfilling activities are

interrelated these activities include designing of a new product, its,

production, distribution, promoting and pricing.

Usually marketing associated with tangible goods. But is

every applicable in services also such as repairs, workshops,

electricity, hotel, educatior~ and financial institutions, transportation

etc. adopts marketing techniques now on a large scale.6

5.3.3. Marketing Management

"Marketing mlinagement is the analysis, planning,

implementation and control of programmes designed to create, build

and maintain beneficial exchanges with targets buyers for the

purpose of achieving organizational objectives says ~otyler' .

According to him marketing management seeks to influence the

level, timing and character of demand in a way that will help the

organization to achieve its objectives. Simply put marketing

management is demand management.'

Albert.W.Frey, Advertising, 3rd edi ion, New York (1961), p30. ' Philip Kotler, p14.

Kurtz.et.al.p55.

Marketing milnagement deals with planning production

and control of the entire marketing activity of firm. It includes the

formulation of marketing; objectives, policies, programmes and

strategies. These are required to canyout the plans, marketing

operations, controlling and evaluating marketing performance. Thus

marketing management corccemed with broad problem of sales.

5.4. Functions of Marketing

In the joumey from the producers to consumers goods

generally require some preparation and have to pass through many

operations and man by hands. The essential marketing functions

consist of all such effort ancl activities. These functions generally fall

into two types of processes, namely:

1. Concentration

2. Dispersion.

The process of concentration is concerned with

gathering and concentrating the basic raw materials, foodstuffs and

manufactured goods at central points market places. Goods are

bought from small producers and are collected and concentrated in

markets. Concentration invcllves a number of marketing functions

like buying and assemblir~g, transportation, storage, financing,

grading, standardization and risk bearing.

Dispersion means the distribution of goods from the

central locations to the f nal consumers. The distribution or

dispersion of the assembled or recollected goods through wholesalers

and retailers to the final coilsumers calls for one or more of the

following services.

1. Selling

2. Grading.

3. Transportation

4. Storage

5. Financing and risk bearing.

5.5. Marketing Management in Plantations.

The marketing, management in plantations deals with

the selling pattern of the crops, selling form, advertisement system in

plantations, marketing department in plantations, international trade

etc. Unlike the other manufacturing products, plantations crops have

certain specialities in their marketing; they are as follows.

The government of India and the IS1 has prescribed

fairly well-defined grades ~opularly known as Agmark grades and

Indian specifications or standards on the basis of important quality

factors like colour, weight /mit, size etc for marketing of agricultural

and plantations crops. This is the important speciality of marketing

of plantation crops. The marketing of plantation crops is based on

these gradations.9

Another speci~~lity of plantations crops' marketing is

price determination. There is less influence of internal price in the

price determination of plantation crops. They are connected with

international pricing and inlernational markets. Domestic traders are

also having fewer roles in the marketing of plantation crops.I0

Economic and political weekly, Dec.1996, p14. 'O Marketing of plantations, Articles in Times of India, January 1996,p4.

5.6. Analysis

5.6.1. Selling Forms of the Plantations Crops

Most of the l~lantations crops are sold in two forms -

unprocessed and processed. These forms can be categorized on the

basis of the nature of the c:rops. For examples, in the case of cashew,

crops can be sold only after systematic processing. So this crop

comes under the category of processed crops. But in the case of

other crops such as spices, rubber etc, in such cases crops may be

processed or unprocessed. In certain spices like pepper, ginger, also

it may be processed, or ur~processed.l'

5.6.1. a. Rubber

Usually the::e are two forms of product sales in rubber

plantations, unprocessed and processed forms. In the case of rubber

most of the planters sell their product in processed form-sheet

rubber. In certain case it can be sold as unprocessed forms. In this

case the rubber can be sold at tapping place (estate). This form of

sale is more often found in small holders.

The table 5.1 reveals the selling form in rubber

plantations.

" Hand book of Agriculture, I.C.P..R, New Delhi

Table No.5.1.Selling form of Rubber

Unprocessed

15(30%)

25(50%)

40

(Pnmary data)(C V=4 16)(T V-=3 84)Degree.s of freedom=], Slgmficance level=5%)

Processed

35(70%)

25(50%)

60

Total

50(100'?40)

50(100%)

100

From the tab12 it is noticed that 30% of the large estates

sell the rubber in unprocessed form and 70% in processed form. In

the case of small estates 50% sell their produce in unprocessed form

and 50% in processed fonn. Comapared to large estates,. most of the

small estates sell the crop in unprocessed form

A Chi-square test is conducted with Ho= there is no

difference in the selling form of the crop in large and small rubber

estates. Since the calcu1atc:d value is greater than table value, the null

hypothesis is rejected and it is concluded that the selling form of the

crop is different in large and small rubber estates

5.6.1.b. Tea

In tea plant.ations, most of the estates sell the crop in

plucked leaves, which iue directly entered in to the market -

unprocessed form.12

The table 5 .:! reveals the details of form of sale of tea

estates sell their produce in processed form 15%in unprocessed form.

In the case of small estates 20% of them sell their produce in

Table No.5.2.Selling form of Tea

processed form and 80% of the small estates sell their produce in

15(30%)

Total 5 5

'' Tea, Kerala Bhasha Institute, p2f'.

(Prmary data)(C V=25 24, T V==3 84, Degrees of freedom=l, Stgn~ficance level=S%)

From the table it is observed that 70% of the large

Processed form

35(70%)

10(20%)

45

Total

50(100%)

50(100%)

100 -

unprocessed form-plucked leaf. This is because there is less number

of tea factories in small estates; tea factories are mainly found in

large esatates, so large estates sell their produce mostly in processed

form.

A Chi-square test is conducted the Ho=there is no

difference in the selling form of the crop in large and small tea

estates. Since the calculated value is greater than the table value, the

null hypotheses is rejected and it is concluded that the size of the tea

estates have some influenc:e in the selling form of the crops

5.6.1.c. Cardamom

Cardamom present more or less stagnating picture

during the year with are, sales, export and price etc. Like wise the

other plantation crops cardamom also have three forms-processed,

semi-processed, and unprocessed. In large plantation, most of them

are sell their produce in processed form while in the case of small

holding it may become ~mnprocessed.'~ This is because of lack of

factory and other equipment. The table 5.3 shows details of selling

form of the crop.

produce in processed form, and 10% in un-processed form. While in

Table No.5.3.Selling form of Cardamom

l 3 Major Spices, J.S.F'ruthi, 1993,p 116.

30(60%)

35

(Pnrnary Data)(C V=27 46, T \. = 3 84, Degrees of freedom=l, Significance level=5%)

From the table it noticed that 90% large estates sell thelr

Processed

45(90%)

20(40%)

65

Total

50(100%)

50(1000/0)

100

the case of smallholdings, 60% sell their produce in un-processed

form and 40% in unprocessed form.

A Chi-square test is conducted with Ho= there is no

difference in the selling form of the crop in large and small

cardamom estates. Since the calculated value is greater than the table

value, the null hyohothese is rejected and it is concluded that the size

of the cardamom estates have some influence in the selling form of

the crops

5.6.1. d. Comparison

The details of the selling form in plantations are given

in table 5.4.

Table No.5.4.Selling form in Plantations

sell their produce in processed form, and 40% in unprocessed form.

Type of Unprocessed Processed Plantations Rubber 40 60

5 5 45

Cardamon1 3 5 65

Total 130 170

In the case of tea plantations, 45% of them sell their produce in

Total

100

100

100

300

processed form and 55% in unprocessed form. In the case of

cardamom plantations, 05% of the estates sell their produce in

(Pnmary Data)(C V=10 295, V=5 991, Degrees of Freedom=2, S~gmficance

level=5%)

From the table, it is observed 60% of the rubber estates

processed form and 35% in unprocessed form

A Chi-square test is conducted with Ho= there is no

difference in the selling form of rubber, tea and cardamom

plantations. Since the calcu ated value is greater than the table value,

the null hypothesis is rejected and it is concluded that the selling

form of rubber, tea and cardamom plantations are same.

5.6.2. Selling Pattern in Plantations ./----- -/-- - Auction sale is the main method of marketing of

plantations. Auctions are held at regular intervals.

The estates send their stock intended for sale at the

auctions to reputed auctioneer firms. The latter often grant advances

to the estates pending the disposal of stocks at the auctions. The

auctioneers in turn may avail themselves of credit facilities from the

bank. Thereby the regular flow of stocks from the estates to the

export markets through the medium of auctioneers is facilitated.

The plantations crops can be sold mainly through

auctions. But auctions are method of sale only for certain crops like

Tea, Spices etc. There are other forms of sales. They are;

a. Direct to industry

In the case of plantation crops, most of them have their

own industrial infrastructur

c. General traderllocal trader

Another form ~f sales is direct selling to generalllocal

traders. Here also the product form is unprocessed.

The following are the details of marketing of various plantations

crops.

5.6.2.a. Rubber

It is noticed that most of the large plantation sell their

products to industry. Some of them sell not only to industry but to

trader also. The table 5.5 shows the details regarding the sales.

Table No.5.5.Selling pattern in Rubber plantations

m ? y G v i

(Primary Data)(C.V=35.09; T.V= 7.815; Degrees of freedom=3; Significance

level=5%)

From the tablc it is noted that in the case of large

plantation, 60% of the estate directly their product to industry, 15%

to traders, 5% of to sole buying agent and 20% of them engaged in

export.

In the case of small estates, 20% of them sell their

product to industry, 30% of'them to traders. Most of them (45%) sell

their produce to sole buying; agent. There is less international trade in

small estates. In large estates, direct to industry is the main method

of sale while in the case of smallholdings, sole buying agent is the

main medium of sale.

A Chi-square test is conducted with Ho= there is no

difference in the selling paitem of the crops in large and small rubber

estates. Since the ~alculate~d value is greater than the table value, the

null hypothesis is rejected .md it is concluded that the selling pattern

in large and small estates are different.

5.6.2. b. Tea

In tea plantation auction is the main method of sales.

Auction is held in regular intervals at different parts of the country

(Calcutta, Cochin, Connor etc). The estates send their stock of tea

intended for sale at auctions to reputed auctioneer firms. The latter

often grant advances to the estates pending the disposal of the stocks

at auctions. The auctioneers in turn may avail themselves of credit

facilities from the bank. Thereby the regular flow of stocks from the

states to the export market through the medium of auctioneers is

facilitated.I4 Other methods of tea marketing are:

1. Sale by mutual treaty (trader).

2. Through whole buying agent

3. Direct to industry.

By mutual treaty (agreement) tea can be sold to trader.

Here the planter or producer and the trader (purchaser) are enters in

to an agreement. The agreement contains the quantity of sale, value,

quality gradation of tea etc.

Whole (sole) buying agent is usually found _ ._ - - in - %all -

estates. These agents directly approach the small growers and ---_-------- ~~ ~ ~- ~ ~ ~~ . ~ ~~ .~ purchase the produce directly from the estate (at the time of plucking

C~ -- .~~ ~ ~~ -. -~~ . . . ~ ~ ~ ~ ~~~~ ~

l4 lbid p27

the tea). Large sector plantations sell their product directly to

industry. In such plantation, most of them have their own factories. - --

"t The table 5.6 shows the details of sales pattern in tea

plantations.

Table No.5.6.Selling pattern in Tea estates

I I I I I I 2. 1 Small / 3(7%) 1 32(65%) 114(28%) 1 1(2%) 1 50(100%)

I No ype of estates Industry

1(2%)

From the table it is observed that 70% of the large

Sole buying

agent 35(70%)

I I I I I I

estates sell their produce to sole buying agent, 8% of them sell by

mutual treaty with the trader and 2% sell direct to industry. In large

Trader

4(8%)

3.

estates 20% enter into export field. In the case of small estates,65%

(Primary Data)(C.V=14.035; T.V=7.815; Degrees of freedom=3; Significance

Total 4

sell their produce to sole buying agent,28% to trader,7% direct to

Export

10(20%)

industry and only 1% enter into export. It is noticed that in both

Total

50(100%)

67

cases, most of the estates sell their produce to sole buying agent.

A Chi -square test is conducted with Ho= there is no P=-%

difference in the selling pattern in[arges b d mall 'tea estates. Since @#

- -

I8

\ L.-- the calculated value is greater G' the table value, the null

~ ~ ~

hypothesis is rejected and it is concluded that the selling pattern in

large and small tea estates are different.

11

5.6.2.c. Cardamom

100

Like wise the tea plantation, auction is the main type of

selling in cardamom plantiition. "Aleppy green"and,"Coorg green'

are placed first grade in cardamom plantations. The cardamom

market is based on such gradation.'5

Besides auction, there are other types of selling pattern

in cardamom. They are sale to industry, sole buying agent, direct to -- -- - -- - - --=.- trader etc. The table 5.7 shclws the details. /

Table No.5.7.Selling pattern in Cardamom estates

I 4 I I I

2. I Small 1 8(17%) ( 20(40%) ( 20(40%)( 2(3%) ( 50(100%)

From the table it is seen that 60% of the large estate sell

I 1 I I I I

their products directly to industry and in the case of small estates

3. 1 Total 1 3 8

only 17% sell their products to industry. 10% of the large plantations

sell their produce to sole buying agent, 16% of them to trader and

Primary DataXC.V=29.65; T.V=7.315; Degrees of freedom=3; Significance level= 5%) 25

14% enter into export field. In the case of small one, 17% sell their

product direct to industry, 40% sell their product to sole buying

28

agent, 40% to trader and (only 3% enter into export field. A Chi- --- - square test is conducted with Ho= there is no difference in the selling .L ___ -. ____ --- -

9

pattern in large and small cardamom estates. Since the calculated c- - - _ _ - - -- - - - L

value is greater than the table value, the null hypothesis is rejected =--- -- Y and it is concluded that the selling pattern in large and small

100

cardamom estates are different.

5.6.2.d. Comparison

The details of selling pattern in plantations are given in

table.5.8.

Table No.5.8.Selling pattern in Plantations

From the table it is observed that in rubber plantations,

SI.No

1 -

2

3

4

they sell their produce in hulk directly to industry (40%), followed

by sole buying agent (25%) and trader (25%), only few of them enter

(primary data)(C.V=62.54; T.V=: 2.592; Degrees of freedom=6; Significance level;

Type of plantations

Rubber

Tea

Cardamom

Total

in the field of export. In tea plantations, mutual treaty with the trader

Ind

40

4

38

82

(67%) is the main method of selling followed by sole-buying agent

(18%). In cardamom, sales to industry are main method of selling

followed by sole buying agent. Here also fewer estates enter in the

field of export. Out of the three plantations, more tea estates enter in

to international trade.

A Chi-square test is conducted with Ho=there is no

difference in selling pattent followed in different plantations. Since

the calculated value is ~jeater than the table value, the null

hypothesis is rejected and it is concluded that the selling pattern in

different plantations are different.

5.6.3. Annual Sales in l'lantations

5.6.3.a. Rubber

Compared to the other plantations the annual

sales/hectares is higher in n~bber plantations. The table 5.9 shows the

details of annual sales in rubber plantations.

Table No.5.9.Annual sales in Rubber Plantations

SI No I I I 1.

(Primary ~ a t a )

Area (hectares)

50 and below

I I

From the tablt: it is seen that estates having 50ha. and

Sales per year

25-95

5.

below have annual sales of 25 tonne-95tonneha. In the case of

estates in the category of 50ha-150ha, the average annual sale is

Above 200

95tonne-180tonne. Estates having the area between 100ha-150ha.

380andabove

have an annual sale of 18Otonne-290tonne. and estates having the

area above 200ha., the annual sales is 380 tonne and above. The

average price varies from Rs.33.51kg to Rs. 35.7 in the last year.

5.6.3.6. Tea

The quantity (of sale in tea plantation depend on the

production. In tea plantaticln, the annual sales during 1995-00 was

1.8 tonthectare. The table 5.10 shows the annual sale in tea estates.

Table No.5.10.Annual Sales in Tea plantations

SI.No

1

I I I I (Primary Data)

I I

From the table, it is clear that the annual sale up to 50

Area(hectares)

50 and below

5.

hectare is 92.5 tone and upto looha, it is 185tonnelha. Estates having

Sales per year 1 30-92.5

the area between 100ha.-1 tiOha., the sales increased from 185toniha

to 277.5tonlha and the estate having the area up to 200ha. have

Above 200

annual sale of 370tonnelhi~. and estates having the area 200ha and

370 and above

above have a sale of 370tonnelha. and above. During the last year

(2001-02) the price of tea was Rs.41.19kg and during 2000-01 the

price was Rs.47.41IKg.

5.6.3.c. Cardamom

Compared to other plantation crops like rubber, tea etc.

the quantity of sale of cardamom is very few16. This is because the

productivity of the cardamom is very low (127tiha).

16 Ealem, C, Kannan, p12.

The average annual sales are given in the table no.5.11.

Table No.5.11.Annual sales of Cardamom plantations

Area (in hectares) Sales in quantity

(Primary ~ata)

From the table it is observed that estates below 50ha

are having only 6.35tlha. scnnual sales and in the next category (50-

150ha) the annual sales vs:ries from 6.35-to 12.7ttha. In the case of

estates having the area between 100ha-150ha, the quantity of sales is

12.7-19.05tha. Estates having the area between 150-200 ha, the

sales are 19.05-25.4t/ha and in case of very large estates (above

200ha), the annual sales quantity is 25.4 tonne and more. The

average sale price of cardamom varies from Rs.550/kg to 750lkg.

The prices depend on the iorm of the crops (Whether it is processed

5.

or unprocessed).

Above 200 25.4 and more.

5.6.3.d. Comparison

The details of the annual sales in rubber, tea and

cardamom are shown in table No.5.12.

Table No.5.12.Annual Sales in Rubber, Tea and Cardamom

I I I Rubber Tea / Cardamom 1 Annual Sales SI.No

I I I 5 I Above 200 380 and 1 370 and / 25.4 and

Area (ha.)

I I I

1 1 above above above (Primary Data)

1 50 and 25-95 1 30-92.5

From the table, it is observed that the rubber stands first

3-6.35

in the case of annual sale followed by tea, it depends on the annual

production and area under cultivation. Compared to rubber and tea,

the annual sale of cardamom is low.

5.6.4. Advertising

The modem age is the era of competition, and its has

already been observed how competition in the market makes. It

absolutely necessary for manufacturers to think of new and

unfamiliar uses for their l~roducts to find out new buyers for their

products.

To the layman, advertising is nothing more than the 'use

of bright ideas, stunts and slogans to popularize goods, which appeal

to the great body of ordinary consumers. But advertising should be

looked upon as purely comlnercial function, which is an integral part

of the marketing processes. 7

The late presidznt Roosevelt of the USA gave a very apt

description of modem advertising. In his words, 'it brings to the

large number of people, actual knowledge concerning useful thing.

It is essentially a form of education and the progress of civilization

depends on education'.'' In this sense, advertising began with some

kind of personal approach to the consumers. So the fimction of

advertising is to inform the possible customers about the products or

services.

5.6.4.1. Advertisement system in Plantation Crops

Usually the advertisement of the plantation crops is

based on the finished product. The crops are processed and after

processing, the next stage is packing. The advertisement process can

be done only after this stage.

In large sector plantations, the marketing can be done

through large-scale advertisement. In such plantations, there should

be a systematized advertisi~ig and marketing team under the control

of marketing department. They firstly prepare the budget for

advertisement. This advertisement also becomes the part of product

cost. It also included in the market prices of the product.'9

In small plantation, the marketing can be done either

through advertisement or through direct marketing. Here there is no

systematic advertisement. In such plantation separate field staff for

marketing. They directly contact the locall wholesale traders. But

17 British Institute of Management, Adbertising-A tool for management, p5. Franklin Roosevelt, Former president of U.S.A, A speech regarding advertising at California.

l9 Marketing of Plantation Crops, p34.

the pattern of advertisemeni: is depends on the crops.20 The following

are the details of advertisement system in various plantations crops.

5.6.4.a. Rubber

In large rubber plantations, they spent large amount per

year for advertisement. Most of the large estates have their own

advertisement mode but in small estates, they depend on

advertisement agencies. I'he table 5.13 reveals the details of

advertisement.

Table No.5.13.Advertisement in Rubber plantations

system estates

I I I I

No System

1.

2.

(Primiuy Data)(C.V=16; T.V= 3.84; Degrees of freedom=l; Significcnce level=S%)

Total

I I I I

From the tablc: it is seen that 70% of the large estates

Large

Small

3

have their own advertiselrent system while in the case of small

35(70%) 1 15(30%) 1 50(100%) 15(30%) / 35(70%) 1 50(100%)

estates, only 30% have such system. A Chi-square test is conducted

with Ho= there is no difference in advertisement pattern in large and

Total

small rubber estates. Since the calculated value is greater than the

5 0 5 0

table value, the null hypothesis is rejected and it is concluded that the

100

advertisement pattern in large and small rubber estates are different,

fewer percentages of small estates have their own advertisement

system.

2o Ibid, p38.

5.6.4.6. Tea

Most of the large estates use various medias such as

newspapers, television etc. jor their product advertisement. The table

5.14 shows the details of the estates using advertisement system.

Table No.5.14.Advertisement system in Tea estates

SI.No frype of estates ( Own system I No system ( Total I I I I

- I I I (Primary Data)(C.V=29.24; T.V=3 34; Degrees of freedom=l; Significance level =5%)

1 .

I I I I

From the table it is observed that 80% of the large

estates have their own advlxtisement system and 20% of them have

Large

47 1 100 3

not. While in the case of small estates 26% have their own system

for advertisement and 73% have not. Small estates usually depend on

40(80%)

Total

advertisement agency for their product advertisement. A Chi-square

53

test is conducted with Ho=there is no difference in the advertisement

10(20%)

system in large and small tea estates. Since the calculated value is

50(100%)

greater than theoretical value, the null hypothesis is rejected and it is

concluded that there is difrerence in the advertisement system large

and small tea estates.

5.6.4.c. Cardamom

The marketing department fixed the media of

advertisement in cardamcrm plantations. But this is only in large

hectares estates. In snallholdings advertisement have less

importance compared to larger one. The table 5.15 shows the

advertisement facility in c,udamom plantations.

small estates onlyl8% have their own advertisement system and

Table No.5.15.Advertisenlent system in Cardamom

82% have not. A Chi-square test is conducted with Ho=there is no

difference in the advertisement system in large and small cardamom

SI. No Type of estates

Large

Small 9(18%)

3. Total 5 1

estates. Since the calculatetl value is greater than table value; the null

hypothesis is rejected and it is concluded that the advertisement

(Primary Data)(C.V=43.83; T.V= .1.84; Degrees of freedom=l; Significance level=5%)

From the table 85% of the large estates have their own

system for advertisement iind 15% have not. While in the case of

No system

8(15%)

4 1(82%)

49

system in large and small estates are different.

Total

50(100%)

50(100%)

100

5.6.4. D. Comparison

In all the thre,: plantations, large estates have its own

advertisement system and smallholdings have not. Table 5.16 shows

the details of advertisement system in plantations.

Table No.5.16.Advertisement system in Plantations.

I SI.No I Type of plantations ( Advertisement ( No System ( Total I

I I I 4 Total t 154 146 ( 300

system

I I I I I I (primary Data)(C.V=.1867; T.\'=5.991; Degrees of Freedom=2; Significance

1 50 Rubber 50 1 100

From the tablc:, it is observed that most of the tea estates

have their own advertisement system followed by large cardamom

estates. But in rubber estates (50%) have their own advertisement

system and 50% have not. A Chi-square test is conducted with

Ho=There is no difference in the advertisement system in different

plantations. Since the calculated value is less that the table value, the

null hypothesis is accepted and it is concluded that there is no

difference in advertisement system followed in different plantations.

5.6.5. Marketing Department in Plantations

The marketing department in plantations carried out

activities such advertisement, fixing annual budget relating to

marketing, media selection, conduct door to door field work,

assessing the market trend md pricing policy, contact small growers

and connect them into large sector etc.

5.6.5. a. Rubber

In rubber plantations, the marketing department carried

out the activities such as atlvertisement, door to door sales, product

launching measures etc. The details of the marketing department

system in rubber estates are given in table no.5.17.

Table No.5.17.Marketing Department in Rubber estates

From the tablc: it is noticed that 4% of the large estates

have marketing department only 18% have marketing manager only

Total

50(100%) 50(100%) 100

9(18%) Small 31(61%)

40 (Primary Data)(C.V=28.55; T.V=5.99; Degrees of freedom=2; Significance level=5%)

Both

39(78%) 18(37%) 5 7

and 78% have both marketing department and marketing manager.

But in the case of smallholdings 2% have marketing department

only, 61% have marketing manage only and 37% have both

marketing department and marketing a manager. In large plantation

besides this, there is a marketing team for coordinating their sale

activity and publicity. More over they have also field staff for

marketing. But in small estates, there have no such coordinated team

and field staff

A Chi-square test is conducted with Ho=there is no

difference in the marketing: department structure in large and small

rubber estates. Since the calculated value is greater than the table

values, the null hypothesis is rejected and it s concluded that the

marketing department structure in large and small rubber estates are

different.

5.6.5. b. Tea

The marketing department of tea plantations carried

out the activities such as iixing various marketing strategies, sales

policy, setting auction strategies etc. Most of the large estates have

their own marketing depa~.tment headed by a marketing manager.

The table 5.18 shows the details of marketing department in tea

plantations.

Table No.5.18.Marketing Department in Tea estates

SI No I Type of estates

Large

Small

(Primary Data)(C.V=

Total

only

I

!.34; T.V=5.99; Degrees of freedom=2; Significance level=5%)

From the table: it is seen that 20%of the large estates

have only marketing department and 22% of them have only

marketing manager. 68% c f them have both marketing department

and marketing manager.

In the case of small estates 5% have marketing

department only and 85% have marketing manager only.lO% of

them have both marketing department and marketing manager.

Compared to large estates, less number of small estates have

marketing department. Most of them have only marketing manager.

A Chi-square test is conducted with Ho= there is no

difference in marketing de1,artment structure in large and small tea

estates. Since the calculatc:d value is much greater than the table

value, the null hypothesis is rejected and it is concluded that there is

difference in the marketing, department structure in large and small

tea estates.

5.6.5.c. Cardamom

The marketing departments in cardamom plantations

determine the sales strategy, advertisement system, marketing

methods etc. Most of the large plantations have both marketing

department and marketing manager. The table 5.19 exhibits the

details of them.

Table No.5.19.Marketing Department in Cardamom

Marketing Both Total

I I I I I

1. 1 Large 1 2(5?6) 1 15(30%) 1 33(65%) 1 50(100%) I I I I I

2. I Small I 2(5?6) 1 45(90%) / 3(5%) / 50(100%) I I I 1

3 I Total 1 4- 3 6 100 1 ' I I I I (Primary Data)(C.V=40; T.V=5.951; Degrees of freedom=2; Significance level=5%)

From the table it is observed that in large estates 5%

have marketing department only and 30% have only marketing

manager.65% of them have both marketing department and

marketing manager. In small estates, 5% have marketing department

and 90% have marketing manager 0111~5% of them have both

marketing department and marketing manager.

A Chi-square test is conducted with Ho= there is no

difference in the marketing department structure in large and small

cardamom estates. Since the calculated value is greater than the table

value, the null hypothesis is rejected and it is concluded that the

marketing department stnccture in large and small cardamom estates

are different.

5.6.5. d. Comparison

The table 5.20 snows the details of marketing department

and marketing manager in plantations. - -\ Table No.5.2O.Marketing Department structure in plantation3

I I I I I

4 I Total 1 14 1 154 1 132 1 300

Rubber

Cardamom - I I I I (Primary data)(C.V=l1.846; T.V=0.488; Degrees of freedom=4; Significance

From the table, it is observed that in large estates (in all

40

54

60

plantations), most of them have both marketing department headed

by a marketing manager. Compared to tea and cardamom, more

57

39

3 6

rubber plantations have both marketing department and marketing

100

100

100

manager. Most of the small estates (rubber, tea and cardamom) have

only marketing manager. A Chi-square test is conducted with

Ho=there is no difference in the marketing department pattern in

different plantations. Sincc: the calculated value is greater than the

table values, the null hyporhesis rejected and it is concluded that the

marketing department patiern followed in different plantations are

different.

5.6.6. Export Trade

As against the home or inland trade, the foreign trade of

the country consists the export of goods to other countries beyond

its own national frontiers, and import necessary goods from them.

Such trade is carried out or wholesale basis. The basis of the modern

international trade has its foundations in the concept of division of

labours."

India's export:; accounts for less than one percent of

world exports. According to the provisional data released by DGCI

& s India's exports at US$34928 million recorded a decline of 3.9%

during 1998-99 as against irn increase of 4.5 % registered during 97-

98. As a consequence, India's trade deficit stood at US$ 13246

million during that year. During the year 1999-00, the export also

faces a decline stagez2.

After reaching a peak of 1.04%in1966, India's share

dipped to .44%in 1980's. In the second half of 1990's the share

moved around .6 %23. Export from India registered again in 2001-

2002 with 13.3% growth as against 5.2.percent decline in 2000-

200 1. After a high growth c f 18% to 26% percent per annum.

5.6.6.1. Export in Plantations

The export of plantations and spices crops plays a vital

role in the foreign earnings. Here (plantations and other spices),

Kerala contributes a sizeable portion to the nation's exports (1% of

all India's export). Fluctuations in prices, high cost of production,

lack of finance, absence 01' scientific management and trade union

etc.hinder the export of plantations. The following are the details of

export in plantations.

" Gov. of India, Handbook of Export F'romotion, p56. " Economic Review, December 2000,~~16. 23 lbid, p30.

As per the Exam policy of government of India for the

period April 1998 to march 2002, natural rubber is 'restricted item'

included in the negative lisl. The import of natural rubber is allowed

only against a license or in accordance with a public notice. The

policy also allows exporters of rubber products to import natural

rubber against Quality Ba:sed Advance License or Special Import

License (S~I) . '~ Since there was excess availability of natural rubber

is the domestic market, government of India did not allow the import

of natural rubber against public notice.

The table 5.21 shows the details of export. From the table

it is seen that around 10% 'of the large plantations are usually found

in the field of export. Because they have their own facilities for

export compared to smaller one.

According to l.he table. In large estates 10% enter into

Table No.5.21.Export in Rubber estates

export and 90% engaged in domestic trade. In small estates only 2%

Type of Export

estates Trade

5(10%)

Small 1(2%)

3. Total 6

were engaged in export trade. It is observed that out of the total

rubber estates only few are engaged in export trade.

(Primary Data)(C.V=2.83;T.V=3.841,Dergrees of freedom=l; Significance level=5%)

Home

trade

45(90%)

49(98%)

94

Total '

50(100%)

50(100%)

100

A Chi-square test is conducted with Ho= there is no

difference in export in large and small rubber estates. Since the

calculated value is less thim the table value, the null hypothesis is

accepted and it is conc1udc:d that there is no difference in export in

large and small rubber estates.

5.6.6.6. Tea

At present the tea-market faces a deep financial crisis.

Due to these the export field of the same also faces a deep

depression. During 1998 India exported 206m.kg of tea valued at

Rs.2156 c r o r e ~ . ~ ~ Export from South India is 1llm.kgs. The

performance of export of tea during the last decades reveals a direct

correlation between the domestic price of tea and the quantum of

exports. The inclusions of tea in the list of 100 items for duty free

import as part of Indo-Srilankan Free Trade Agreement will

adversely affect the industry. From the study it reveals that 10% of

the estates (above 250 hec).are) only exist in the international trade

field. This is also flexible nature. The graph of such estates may

become downward. The takile 5.22shows the details of estates in the

field export

Table No. 5.22.Export in Tea estates

SI.No Type of International estates I trade

I L I I 1 I (Primary Data)(C.V= 8.27;T.V=3,84I;Degrees of freedorn=l;Significance level=5%)

I I

25 Economic Review,Dec.2000,p14.

Home trade Total

89 11 3. 100 Total

From the table it is seen that 21% of their large estates

engaged in international trade and in the case if small estates only

2% are entered in the export field.79% of the large estates engaged

in home trade and in the case of the small estates, 98% are home

traders.

A Chi-square test is conducted with Ho= there is no

difference in export trade in large and small tea estates. Since the

calculated value is greater t:qan the table value, the null hypothesis is

rejected and it is concluded that export in tea plantations are different

according to the size of the estates.

5.6.6.c. Cardamom

Cardamom is a major foreign exchange earner among the

spices. More than 113 of the export of spices accrues from

Cardamom export alone. Tiearly 85% of total quantity of cardamom

export from India is accoun8:ed from Kerala. Of the different varieties

of cardamom, Aleppy green constitute nearly 95% of the India's

export.26

Usually very large estates are entering into the field of

export. The details of the estates dealing with international trade are

shown in the table5.22.

26 Kerala Calling,June 2002,p9.

Table No.5.22.Number of Cardamom Estates in Export

Export

7(14%)

2(3%) 9

(Primary data)(C.V= 3.034;T.V= 3.841;Degrees of freedom=l;Significance level=5%)

Home trade

43(86%)

48(97%) 91

Total

50(100%)

50(100%) 100

From the table it is observed that only 28% of the large

estates enter in to the field of export and 72% are not. In the case of

smallholdings only 2% are enter in export. So it is observed that

large estates are more engaged in international trade than small

estates. A Chi-square tesi is conducted with Ho= there is no

difference in export in large and small cardamom estates. Since the

calculated value is less than the table value, the null hypothesis is

accepted and it is concluded that there is no difference in export in

large and small cardamom estates.

5.6.6. d. Comparison

In the case of export trade, tea plantations stand first

followed by rubber and CZI-damom. The details are shown in table

No.5.23.

Table No.5.23.Export in Plantations

Home trade

Total

I I I 1 I Rubber

I I I I

2 I I I I

I I I I I

(Primary data)(C.V=.222;T.V=5.99;Degrees of freedom=2;Significance level=5%)

10

3 1 Cardamom I 9 I I I I

From the table it is seen that tea plantations are more enter

Tea

4 / Total

in international trade than lubber and cardomom. While in the case

90

9 1

of home trade, cardamom estates are more enter than tea and rubber.

100

11

100

3 0

A Chi-square test is conducted with Ho=there is no

difference in export in rubber, tea and cardamom plantations. Since

89

270

the calculated value is less ihan the table value, the null hypothesis is

100

3 00

accepted and it is concluded that there is no difference in export in

rubber, tea and cardamom.

5.6.7. Scientific marketing management and productivity in plantations.

The scientific practices of marketing management in

plantations can be measured by conducting correlation test by

considering three marketing variables-marketing department,

marketing manager and advertisement system. If all these are

possessed by estates, it is assigned three points and if two or any of

the variables are possessed gy estates, it is assigned two points and if

none are possessed by estates it is assigned only one point. The

details of the correlation test are given in table 5.24.

5.6.7.a. Rubber

Table 5.24 shows the details of the correlation test in rubber estates.

(Primary data)

The value obtained from the correlation test is .558 and

it is concluded that the scientific marketing management and the

productivity in rubber plant.ations are positively.

The details of the correlation test conducted in tea

estates are given table no.5.25.

lanagement Points

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

(Primary data).

and the Productivity

1.77 1.76 1.82 1.81 1.88 1.76 1.88 1.81 1.82 1.83 1.87 1.8 1.88 1.71 1.77 1.78 1.82 1.82 1.83 1.68 1.89 1.85 1.77 1.78 1.79 1.76 1.74 1.73 1.77 1.77 1.76 1.76 1.75

productivity SI.No

67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

in tea Points

2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

estates. Productivity

1.67 1.66 1.76 1.78 1.77 1.73 1.71 1.76 1.74 1.69 1.69 1.66 1.71 1.72 1.73 1.74 1.75 1.76 1.74 1.8 1.71 1.7 1.69 1.66 1.65 1.67 1.7 1.78 1.79 1.78 1.77 1.65 1.678 1.68

The value obtained from the correlation test is .688 and

it is concluded that the scientific marketing management and the

productivity in tea estates are positively correlated.

5.6.7. c.Cardomom

Table 5.26 shows the details of the scientific marketing management and the productivity in cardamom estates.

(Primary data)

The value obtained from the correlation test is .710 and

it is concluded that the scientific marketing management and the

productivity in cardamom estates are positively correlated.

5.6.8. Scientifc marketing management in plantations.

The scientific marketing management practice in

plantations are measured by considering three aspects-marketing

manager, marketing department and the advertisement system in

estates If all these are possessed by an estates it is assigned three

points (full scientific marketing management) and if any two or one

of the variables possessed, then it is given two points(partia1

scientific marketing management) and if none of them are possessed,

it is assign one point. The details of scientific marketing

management in plantations are given in table no.5.27.

Table No.5.27.Scientific marketing management in plantations.

I S1.No I Scientific I Rubber I Tea I Cardamom I Total I 1 management I

1 / Full 1 2.4 / 30 1 20 1 74 I

2 I Partial 1 3 3 -* I I I I 1

3 1 Nil 138 ( 25 1 45 / 108

I

(Primary data)(C.V=9.14; T.V. =9.488, df=4; Sig=5%)

I I I I I

From the table, it is observed that 24% of the rubber

estates have full scientific management 38% have partial and 38%

4

have non-scientific management. In the case of tea 30% have full

100

scientific management, 45% have partial and 25% have not. In the

case of cardamom, 20% have full scientific management followed

300

35% partial and 45% have non-scientific management. It is analysed

100 Total 130

that compared to rubber and cardamom; tea estates have more

scientific marketing management system. A chi-square test

conducted with Ho= there is no difference in scientific marketing

management followed in rubber, tea and cardamom. Since the

calculated value is less than the table value, the null hypothesis is

accepted and it is concluded that there is no difference in the

scientific marketing management system followed in rubber, tea and -====-

cardamom. Y ,.

In order to mzasure the effect of scientific marketing ---- . . - -- - - management and the productivity of each crops, multiple regression

test is conducted and fi-om the result, it is observed that scientific - - - marketing management ha1.e more significance with productivity in

-- - ~~ - -~-- ~~ ~~ ~~ ~ ~~ ~ --

rubber plantations than tea and cardamom. (The details of the

multiple regression test are shown in Appendix-3)