CHAPTER 1INTRODUCTION AND OBJECTIVE

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1. INTRODUCTION

Marketing strategy  

Marketing strategy is a process that can allow an organization to concentrate its limited

resources on the greatest opportunities to increase sales and achieve a sustainable competitive

advantage.

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill

market needs and reach marketing objectives. Plans and objectives are generally tested for

measurable results. Commonly, marketing strategies are developed as multi-year plans, with a

tactical plan detailing specific actions to be accomplished in the current year. Time horizons

covered by the marketing plan vary by company, by industry, and by nation, however, time

horizons are becoming shorter as the speed of change in the environment increases. Marketing

strategies are dynamic and interactive. They are partially planned and partially unplanned. 

Seeds marketing

In India, increasing agricultural production in future depends on the increase in productivity, as

the sustainable limit in the case of acreage expansion has crossed. In the near future, the area

under plough is likely to decrease with increasing urbanization, industrialization and expansion

of urban infrastructural facilities. Now the solution to meet the increasing food grain demand is

to produce more from limited land resources by the efficient use of improved agricultural

technologies. The process of modernizing Indian agriculture primarily involves the intensive use

of non-conventional inputs such as quality seeds, chemical fertilizers, pesticides, weedicides,

irrigation, farm machinery and a network of research and extension infrastructure. The quality

seed is a trigger point which sets in motion the process of technological change. The returns to

investment depend significantly on the quality of crops. Impact of quality seeds in enhancing the

yield potential is highly felt now-adays. Superior planting material and high quality seed is the

single most important factor enabling a country to make its agriculture more productive and cost

competitive especially in the scenario of world agricultural trade under the WTO regime.

In the development of agriculture, seed has been important since crops were first domesticated.

In the traditional agriculture, the cultivators use to retain part of the produce for seed purposes.

However, with the introduction of new technology in Indian agriculture which was based on the

use of high yielding varieties and hybrids of crop plants responsive to high levels of chemicals of

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fertilizers and irrigation. With the development of plant breeding in the early twentieth century,

improved crop varieties were evolved and their seed production was taken up in the organized

sector.

Seed is a very vital input and dynamic instrument for increasing agricultural production. It has

been one of the miraculous inputs responsible for green revolution in India and elsewhere. The

green revolution has brought prosperity, stability and confidence not only in agriculture, but also

in the economic well being of the country. This is also an established fact that amongst different

critical inputs used in the process of agricultural production, quality seeds hold the key position

as it alone contributes nearly 15-20 per cent more to the agricultural production. Farmers in India

know the value of good seed from times immemorial and have contributed for improvement of

seeds through selection and cultivation. Seed is a basic input and though it forms only a small

part of the investment compared to investment on fertilizers, pesticides and other inputs. In fact,

seed is the real vehicle of production and other inputs like water and fertilizers can be regarded

as fuel. Quality seed production is a specialized activity and a portion of crop produce retained

by the farmer as seed cannot substitute for quality seed since such seed is devoid of genetic

vigour and may suffer from lack of desired qualities.

Seed industry is heterogeneous in many dimensions. The product segment corresponds to all the

major field crops and vegetables. With respect to product type, a major distinction is between

hybrids and open-pollinated varieties. As a result, beyond the initial purchase, farmers can

multiply their own seed. This is not a viable strategy with hybrids because they suffer noticeable

declines in yields in subsequent generations. As a result, hybrid seed need to be repeatedly

purchased. Hybrids dominate in coarse cereals consisting of sorghum, pearl millet, maize, cotton

and oilseeds.

In terms of organization, the seed industry consists of a large public sector and a growing private

sector. The public sector consists of the National Seeds Corporation, the State Farm Corporation

of India and 13 State Seeds Corporations. These corporations multiply and market varieties by

the public institutes financed by the Indian Council of Agricultural Research (ICAR) and the

State Agricultural universities.

There are no firm estimates of the number of private seed firm. Estimates vary from 200 to 500.

Private seeds firms are heterogeneous with respect to size, research capacity and product

segments. Plant breeding research is found in the larger firms. Unlike the public sector, where

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research is separate from seed production and marketing, these functions are integrated in the

private firms. The other striking difference is in product types. The private sector focuses largely

on hybrid seed. The private sector is a major player in the hybrid seed markets for vegetables,

sorghum, oilseeds (e.g., sunflower), maize, cotton and pearl millet. In terms of ownership,

private firms are closely held and not listed in the stock exchanges although some of the large

firms have sold equity to foreign seed companies. Foreign firms maintain a presence through

equity stakes in Indian firms, technical alliances or through wholly owned subsidiaries.

Seed firms, whether in the private or public sector, outsource the production of seeds through

contract growers. These growers are supplied with the foundation seed that is used to produce

commercial seed. The seed industry is one of the earliest examples of contract farming in India.

The value of the global seed market is estimated to be close to one billion U.S. dollars

(www.worldseed2003.com/invitation.htm). The seed industry was probably half this size in the

early part of the 1990s (Shiva and Cromption, 1998). It has therefore grown rapidly in the last

decade. Estimates of the share of the private sector range from 60 per cent to 70 per cent (Shiva

and Cromption, 1998). Because the private sector sells high value hybrids, their share in value is

greater than their share in quantity sold.

The government regulates the seed industry and the seed trade in various respects. The Seed Act

of 1996, the Seeds Control Order of 1983, and the Seeds Policy of 1988 are the major

components of policy specific to the industry. The seed industry has also been subject to policies

relating to industrial licensing and direct foreign investment that are applicable to all industry. In

September 2001, the Plant Variety Protection and Farmers Rights Act came into being. In June

2002, the government announced a new seeds policy that significantly alters the framework of

regulation.

The Seed Act of 1996 and the Seeds Control Order of 1983 provides statutory backing to the

system of variety release, seed certification and seed testing. Varieties are released after

evaluation at multi-location trials for a minimum of three years. Varieties approved are

“notified” which is a pre-requisite for certification. While all public sector varieties go through

this process, it is not mandatory for private varieties.

Structure of the Indian Seed Industry

Although the Indian seed market is one of the largest, it is almost exclusively supplied by locally

produced seeds. Farmers retain seed of major food crops (wheat, rice, sorghum, millet, corn, and

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pulses) and commercial crops for many years, and the largest volume of seed trade involves local

exchanges of established self-pollinating varieties. The seed replacement rate in most crops is

very low, with the exception of cotton and some vegetables. The use of hybrid seeds is mostly

confined to cotton, and to some extent to corn, millet, sunflower, and few vegetables. However,

awareness about the high yield and quality of produce from hybrid seeds, attracting farmers to

switch over to hybrids, is growing. The Indian seed industry used to be dominated by public

sector seed companies. However, following the easing of government regulations and the

implementation of a new seed policy in 1988, the private sector seed companies have started

playing a major role in seed development and marketing. More recently, the government’s

decision to embrace biotechnology as a means of achieving food security has attracted several

leading biotechnology-focused multinational seed companies to India. The composition of the

seed industry, by volume of turnover, has reportedly reached a ratio of 60:40 between the private

and public sectors.

The reason why they are losing market share is because seeds by private companies often

outperform the publicly available varieties. Some SSCs have started their own research to evolve

superior propriety hybrids.

The purpose of seed marketing

Although governments in developing countries have, in general, succeeded in establishing seed

legislation as well as seed production and trading activities, government supply objectives are

frequently not met and seed stocks remain unsold. This may be because the public sector usually

operates passive distribution systems, simply stocking outlets from which the farmer can collect

seed but often leaving many outlets unstocked or with the wrong varieties. Such systems are not

responsive to the needs of the farmer. However, by introducing a commercial perspective and

applying sound management and marketing techniques these passive systems can be transformed

into active marketing systems which may prove far more beneficial to the farmer and the

supplier The principle that marketing is about identifying anticipating and satisfying the needs of

the farmer, as well as realizing the objectives of the supplier, is fundamental. Even if public

sector objectives are not necessarily profit oriented there is no reason why a public organization

should not adopt sound management and marketing techniques.

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The role of government

The role of government should be to create a legislative framework which supports national seed

Institutions, creates the appropriate economic environment and minimizes government

interference in the market. In such circumstances the private sector may be encouraged to play a

greater role while guaranteeing the availability of seed of reliable quality to the farmer.

Over the past ten years many developing countries have initiated structural adjustment

programmes in order to correct severe domestic economic problems. An important part of these

programmes consists of reducing the role of the state in economic activity. One specific area

where changes are occurring is in the marketing of agricultural inputs and produce.

The pressure for market liberalization is based on the belief that economic performance will be

enhanced by involving the private sector and creating competition. However, private business

may not always be able to fill the gap left by departing state enterprises. As a result, it may be

necessary to combine professionally managed public operations and private enterprise. In

privatizing state seed organizations, for example, there is an added risk that private monopolies

are created in the place of state monopolies.

A steadily increasing number of countries is embracing privatization and seed market

liberalization as a solution to the underperformance of public sector seed supply. But no practical

improvement in seed supply will result simply by declaring such a policy. Any such change has

to be accompanied by a significant shift in attitude and a willingness to implement change.

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Objectives

• To study the market structure and conduct of seed market.

• To know the distributor selling strategy of seeds.

• To know the promotion, advertising & margin satisfaction of dealers.

• To analyze the problems faced in purchasing of seeds and in sales by the dealers.

7

CHAPTER 2LITERATURE REVIEW

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2. LITERATURE REVIEW

Review of the existing related literature forms an integral part of any systematic research work. It

contributes to the understanding of issue involved, analytical tools to be adopted and overall

handling of the research work. A very little work has been done on marketing of cotton seeds.

The literature closely related and relevant to the present investigation has been reviewed under

the following headings.

The market structure and conduct

Harris (1979) examined the paddy marketing system in terms of Sosnik’s concept of structure,

conduct and performance. She inferred that the paddy marketing system was for from

competitive and failed to be efficient when measured from absolute standard the imperfections

were partly explained by the faults in the working of free trade and partly due to government

intervention.

Bhide et al. (1981) studied the structural changes in the arecanut market using data on the size

distribution of firms and coefficients inequality (Gini coefficient) for the period from 1965-66 to

1972-73, they projected the distribution of firms in different size categories by using Markov

Chain Analysis. The impact of these changes on price structure was evaluated by using

regression analysis. The analysis suggested an increasing degree of competitiveness in market

structure characterized by more equal distribution of share in the market transactions.

Elangovan and Zeaudeen (1983) studied the market structure of groundnut in the market

structure was analysed by computing the coefficient of inequality from size distribution of

buyers of farms, which came down from 0.55 to 0.38 over the study period indicating a steady

improvement in the size distribution.

Bain (1989) emphasized that most of the characteristics and strategic aspects of market structure

are the degree of seller concentration, the degree of buyer concentration, the product

differentiation and the condition of entry to the market. He classified any product or service

marketing as high seller concentration (where three sellers supply about 90% of the market), the

moderate seller concentration (where four sellers about 60% of the market) and low seller

concentration (where twenty sellers supply about 45% of the market).

Yeledhalli (1991) studied the agency-wise marketing of fertilizer and found that the agencies

operating in the state are KAIC, MARKFED and private. The private agency had the lion share

9

in marketing of fertilizer. He found that the distribution of retail outlets in the districts was also

dominated by private agencies.

Colton (1993) studied about consumer information and workable competition in

telecommunication and emphasized that market are classified according to the structure of the

industry serving the market. Industry structure of categorized on the basis of market structure

variable which are believed to determine the extent and characteristics of competition. Variables

which have received the most attentions are number of buyers and sellers. Extent of product

substitutability, costs, extent of mutual interdependence and ease of entry and exit. According to

Colton, the taxonomy of market structure, perfect competition, monopolistic competition,

oligopoly and monopoly.

Mundinamani et al. (1993) using Bain’s classification of markets and the Lorenz coefficient of

inequality technique analysed groundnut market in highly and moderately concentrated

oligoposonic nature of competition was observed with regards to buyers and slightly

concentrated o competing type of markets with regard to sellers. A few big firms performing

multiple functions were controlling the major portion of the groundnut trade.

Nagaraja (1998) studied the market structure, market share and market potential for sunflower

seeds. Thiel’s intropy index of 0.4638 suggested that sunflower seed market was moderately

concentrated with few suppliers dominating the trade. The market share of individual brands and

their switching pattern indicated that local unbranded seeds had the major share. A very high

degree of brand switching was noticed among the different varieties of seeds.

Padmanabhan and Sankaranarayana (1999) studied the market structure for pesticides. In this

study, they made an attempt to analyse the market structure of pesticides at retail level and

degree of concentration. The market structure of pesticide at retail level was identified as

oligopoly implying that major share of pesticides sales was concentrated with few dealers based

on brand name, symbol and colour of picking material offered by the firms. The farmers were

able to differentiate the pesticides, competition between the existing retailers in retaining the

market share and high investment act as barriers to entry.

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Farmers buying behaviour

Venkateshwaralu et al. (1984) attempted to examine the reason for being brand loyal. It has been

found that 50 per cent of the consumer respondents preferred a particular brand because they

were convinced that its quality was better than that of other brands. Another 38 per cent of the

sample consumers felt, it was the taste which made them to go in for a particular brand. While,

very few consumers in the sample stated low price and easy availability as the main reasons for

selecting and brand.

Ramaswarny and Chandrashekaran (1990) examined factors influencing seed buying behavior of

farmers in India, sixty growers were selected from four villages for agriculture year 1987-88,

factors influencing farmers purchaseof seeds were source of purchase, varietal preference, seed

quality, source of information about the supply of seeds by different agencies and brand

preference. Dealers with credit facility, availability of seeds at lower prices and premises located

close to the farmers locality attracted.

Ali (1992) studied the factors influencing purchase decision for processed products. It revealed

that factors such as tase, family, preference, price, good keeping quality, well known brand,

colour and consistency were important in the buying decision of the consumer in that order.

Sivakumar et al. (1994) analysed buying behaviour of farmers with respect to pesticides,

considering the factors influencing loyalty of farmers towards dealers and brand friend,

neighbours and relatives were major source of information on dealers. In case of brands it was

extension personnel of department of agriculture, the price quality and advertisements about the

brand contributed significantly to brand loyalty credit availability, advertisements and price of

products available with dealer contributed significantly to dealers loyalty.

Sidhu (1996) studied the seed use practices of farmers. The results of the study indicated that the

farmers judged the purity and quality of seeds purchased from public seed agencies, research

organizations, government departments, private seed companies/dealers etc. by their past

experience and reputation of agencies. The results also indicated that among the

institutions/agencies, Punjab Agricultural University had the highest reputation among the

selected farmers in Punjab.

Singh (1998) in his study in Bihar concluded that seeds were purchased from private traders and

fellow farmers mostly on cash basis. The reasons for preferring these sources were seed quality,

availability and accessibility. This implied that the marketing bodies and seed business units did

11

not carry out their functions in a manner as to create time, place and form utility. Further,

farmers purchased seeds only at the time of requirement i.e., a few days before use which was

very rational given that seed I a perishable and costly input.

Padmanaban (1999) conducted study on brand loyalty, which revealed that the price of the

preferred brand and efficiency of preferred brand as well as influence advertisement significantly

influenced the brand loyalty. Only when the price of a particular brand is competitively lower to

price of other brand in the market the farmers would naturally prefer to low priced brand,

otherwise farmer would naturally continue to purchase the same brand.

Dealers margin

Patel and Dholaria (1981) studied the marketing cost of certified hybrid seeds. They found the

distribution of seed was undertaken by co-operative societies and group of farmers. The rate of

hybrid seeds differed from district to district because the rate has been fixed by the co-operative

societies. In open competitions, the procurement price of Rs. 78.09 per kg of seed had covered

production cost leaving more than 10 per cent profit to the seed producers.

Patel (1984) observed that unit purchasing price per kg of seed in Gujarat was Rs. 70.56 and

prevailing sale price per kg was Rs. 74.00. hence, net margin to the middleman worked out to be

Rs. 3.44 per kg of seed.

Mane and Hiremath (1995) studied the economic performance of seed marketing of hybrid seeds

grown in Parbhani district, Maharashtra, India. A sample comprised of 28 per cent of dealers

from Hingoli and Parphani taluks was selected and data were collected for 1990-91. There were

set marketing costs at various levels for both hybrids. The dealers net margin was found to be

higher for advance purchases and their marketing margin constituted about 6 per cent of

consumers price.

Sabur and Aktar (1997) studied marketing and economic use of pesticides in Bangladesh and

noted that the gross margin and net margin of dealers was higher than that of retailers. This was

because of dealers lower marketing cost and imperfection of market at dealer level Entry and

imperfection of market at dealer level. Entry into dealers market was not easy compared to retail

market, because dealers need larger amount of capital and reputation.

Gap between the demand and supply of seeds

Sankayan et al. (1973) observed longer price spread in all fertilizers, except two in the case of

private dealers than those in the co-operatives. This was primarily due to the shortage of

12

fertilizers which enabled the private dealers to charge higher than the controlled prices and retain

bigger margin.

Chandrakanth and Venkataram (1983) projected the demand and supply of forest products for

the years 1990 and 2000 in the input output framework. The prospective of supply and demand

was considered by the national planning commission. The strategies for bridging the gap in the

requirements of forest products aimed at efficient utilization of existing wood resources and also

simultaneously to meet the growing demand for forest products in the future.

Quasem (1986) examined the availability of two major inputs, fertilizers and pesticides . It was

found that wholesaler operated only in less than 40 per cent of markets surveyed. Retailers

however, were present in all markets. Pesticides dealers operated only in 40 per cent of market

surveyed concluded that 40 per cent shortage of pesticides and the prices of some of the

pesticides were high.

Bhargave (1988) studied demand supply and impact of certified seeds in the four districts of

Madhya Pradesh and concluded that there should be multichanneled distribution system

involving co-operative societies. He identified inadequate irrigation, high input price and less

uncertain availability of certified seed.

Khanna and Gupta (1988) in their study on seed strategy to boost agricultural yield reported that

production of certified seeds was limited on account of non-availability of adequate volume of

breeder and foundation seeds. Plan provisions were made to strengthen the national seeds

corporation to enable it to assume direct responsibility for production of breeder and foundation

seeds so that the shortage exhibited at the national level in the past could be eliminated.

Radha and Chowdry (2002) studied present status and policy perspectives of seed

industry . There was a wide gap ranging from 80 to 90 percent between the production and

demand of certified seed of different crops in the state. Out of the total quantity of 27.49 lakh

quintals of seed produced in the state, a quantity of 12.69 lakh quintals were exported, indicating

the wider scope for expansion of area under seed production in the state.

Srilatha et al. (2003) studied seed production in India. The three major crops maize, sunflower

and cotton selected for the study. The study estimated seed production gaps for maize, sunflower

and cotton. In case of maize certified production and requirement gap in 2000-01 is -55.68

thousand quintals (Actual production is 23.48 thousand quintals and requirement is 79.16

13

thousand quintals). In case of sunflower gap is -17.14 thousand quintals (Actual production is

2.59 thousand quintals and requirement is 19.73 thousand quintals). In case of cotton gap is -

35.45 thousand quintals (Actual production is 15.63 thousand quintals and requirement is 51.08

thousand quintals). Further, there was a shortage of seeds for some varieties of groundnut (JL-

24), paddy (indan), cotton (Dch-32, DHB-105 and DHH-11). For the kharif season, there is

heavy demand for green gram seed where there is likely to a shortage of 1000 quintals and also

in case of groundnut seeds.

Problems in dealers and farmers

Choudhary and Prasad (1972) reported that small farmers perceived lack of money as the most

important problem. The other problem of small farmers in order of importance were high cost of

fertilizer, non-availability of fertilizer in village, lack of adequate knowledge about fertilizers,

lengthy time taken by in the delivery of fertilizer, use of fertilizer, deteriorated quality of land,

lack of transport facilities and short weight of fertilizer bags. Yeledhalli (1991) studied the

problems faced by agencies involved in the marketing of agricultural inputs. In case of private

agencies, which sold only fertilizers, lack of transportation facilities and high competition among

the sellers were the problems faced by them. In the case of co-operative, problems such as lack

of storage facility Inadequate retail outlets and lack of transportation facility were pointed out by

the majority of the respondents and the same problems were also stated by a respondents of

Karnataka Agro Industries Corporation (KAIC).

Ramamoorthy (1995) studied the major socio-economic constraints in seeds production and

management, the constraints were identified and ranked through rank analysis. The study

identified the major production constraints as poor quality input supply, inadequate credit supply

and high production risk and the marketing constraints as price fluctuation, storage, problems

under weighment and poor market development.

Sidhu (1996) in his study in Punjab observed that self-retained seed was most commonly used

followed by the seeds from fellow farmers in Punjab. They found that large number of farmers

(76%) did not receive the certified seeds in adequate qualities. Also, a majority of farmers (60%)

expressed that price of certified seeds was very high. The researcher suggested that for proper

and timely distribution of quality seeds. There was a need to develop proper network.

14

MARKET STRUCTURE FOR VEGETABLE SEEDS AT DEALERS LEVEL

Since, the review of earlier work indicated the absence of studies on market structure for

vegetable seeds some related studies were reviewed and presented hereunder. Chauhan and

Singh (1973) analysed market structure of Rajasthan wheat market. The study revealed that

private traders, particularly wholesalers, dominated marketing of wheat in the state. The

competition in the market was imperfect. According to the authors, the farmers having a poor

retention capacity were the worst affected. Harriss (1979) examined the paddy marketing system

in northern Tamil Nadu in terms of sosnik's concept of structure, conduct and performance. She

inferred that the paddy marketing system was far from competitive and failed to be efficient

when measured from absolute standards. The market imperfections were partly explained by the

faults in the working of free trade and partly due to government intervention. Bhide et al. (1981)

examined the market structure for arecanut in Mangalore using Lorenz curve. The study revealed

a steady decline in the value of coefficient of inequality over the period. This was interpreted as

an improvement in the size distribution surveys of intermediaries in the market, which inturn

increased the degree of competitiveness in the market. Elangovan and Zeaudeen (1983) studied

the market structure of groundnut in Ramanathpuram district of Tamil Nadu. The market

structure was analysed by computing the coefficient of inequality from size distribution of

buyers of farms, which came down from 0.55 to 0.38 over the study period indicating a steady

improvement in the size distribution. Idachiba (1984) studied the role of private sector in farm

input distribution in Nepal. He analyzed the constraints of farming in farm input distribution and

found inefficiencies in fertilizer distribution. Hence, he suggested that the private sector should

form the enterprise of a national farm input distribution strategy, that the existing governmental

parastatals should be gradually phased out and replaced with private sector and all barriers to

market entry be removed. Jagadish and Rajendra (1984) made an attempt to evaluate the impact

of market development project on the structure and performance of Jute marketing in Bihar. The

degree of concentration was studied through the techniques of Lorenz curve and the magnitude

by the Gini concentration ratio were high in the Jute market under study, which indicated the

prevalence of imperfection in the jute market structure of Bihar. Sujatha et al. (1989) analysed

the performance of market intermediaries in Bangalore regulated market in Karnataka. They

employed the Gini concentration ratio technique to explain the extent of inequality in the

15

distribution of volume of business among the traders. The Gini coefficient was found to be 0.33

and 0.45 for onion and potato and 0.17 and 0.21 for rice and ragi, respectively, which indicated

the existence of perfect competition in the market for food grains compared to onion and potato

crops.

Mundinamani et al. (1993) using Bain's classification of markets and the Lorenz coefficient of

inequality technique analysed groundnut market in Karnataka. Highly' and moderately

concentrated oligopsonic nature of competition was observed with regards to buyers and slightly

concentrated on competing type of markets with regard to sellers. A few big firms performing

multiple functions were controlling the major portion of the groundnut trade. Mandanna (1998)

carried out market-structure analysis to know the extent of market competition or concentration

for two representative tobacco auction markets in Karnataka namely, Hunsur and Ramanathapura

and found to be increased market concentration. Further, the same study on structural change in

India's tobacco exports for the period 1980-81 to 1994-95 using markov chain analysis revealed

USSR was the largest market for Indian unmanufactured tobacco.

PRODUCT PROMOTION ACTIVITIES FOR VEGETABLE SEEDS

Since the studies on promotional measures taken to promote the sale of vegetable seeds are

limited, an effort was made to collect and present the reviews that are parallel to the present

work. Dave (1988) in his study on dairy products in United States revealed that advertising and

promotion to boost consumption of dairy products, which helps both the farmers and the

consumers. He suggested increase in the funds for promotion of sales, only is the evidence of

increase in sale due to these measures are obtained.

Veerendrakumar (1993) in his study on strategies for fertilizer promotion under changing

environment in zonalwise situation of agricultural development in India revealed that for rapid

awareness mass communication extension strategy is also adopted by most of the organization

engaged in agricultural extension activities. The credibility studies of various means of

communication have however, indicated that demonstrations and farmers meeting rank at the

top. Nevertheless a media mix approach is gradually adopted to accelerate the pace of transfer of

technology with the large spectrum of target audience.

Bhattacharya and Paliwal (1998) conducted a study on promotional measures adopted for bio-

fertilizer marketing. They stressed the need for availability of credit to farmers, technical

16

knowledge to farmers, availability of bio-fertilizers at district and taluk levels and also to make

the people aware of importance of bio-fertilizer for soil and crop growth. The promotional

measures such as radio, T.V., press advertisement, wall paints, road side boards, cinema sliders,

film show, street drama etc were suggested.

Rane (1996) in his article studied the promotional· strategies of DFPCL (Deepak Fertilizer and

Petrochemicals Corporation Ltd.). He found that the sales programmes were carried out through

agricultural graduates by distributing the company products personally to the farmers. This

programme created good image for company’s product. In addition, the spot demonstrations

were carried out on farmer fields helped to compare the efficiency of products. Apart from these

things DEPCL also conducted farmers and dealers training programme to impart knowledge

about the use of P, K and micronutrients.

Nareshprasad (2002) stated that field demonstrations were taken up to educate the farmers about

the benefit of improved agronomic practices including the use of soil test based fertilizer

recommendations, high yielding variety seeds, proper water management and adequate insect

pest control.

Prakash (2002) in his article “Moving towards Integrated Seed Supply System in India”, reported

increased use of Information Technology in seed sector promotion. There are websites, which

give updates on prevailing availability, domestic and global prices, local  and global demand,

acceptable condition of trade and related aspects.

Variability in production and price

Employing the spectral analysis for world cocoa prices Joseph (1995) identified a cyclical

pattern of world cocoa prices. He reported that in addition to seasonal variations, there existed a

periodic fluctuation in cocoa prices due to lags in production and in consumption responses to

price changes with average lengths of 14 years and 22 months, respectively.

Parikh (1971) analyzed the short-term fluctuations in coffee prices in the world market with the

help of a spectral analysis. Further, he also computed coherence and phase measures to detect

linear association between the two series at each of the frequency components and to measure

the time differences between the corresponding frequency components. He concluded that there

was a periodic component of less than 12 months in coffee prices which cause short-term

fluctuations. He suggested that the spectra remain insensitive to various trend-domination

procedures.

17

According to Geroge and Mukherjee (1986) the growth ratio of area, yield and production of rice

in Kerala indicated considerable variation across the districts. He concluded that it was unlikely

that the area under paddy could be increased in the state. However, there was a scope for

increase in production with the advent of technological changes.

A study conducted by Das (1986) reveled high erratic nature of movement of wholesale prices of

coconut, copra and coconut oil in Kerala for the period starting from 1960 to 1986. The violent

fluctuation in the prices were found to be caused by more than one reason. The major factor

behind this was the uncertainty of weather which lead to volatility in the supply-demand gap in

the edible oil sector in general and coconut oil sector in particular.

Bogahawatte (1988) studied the seasonal variations in retail and wholesale prices of rice in

Colombo market, Srilanka. Results of a univariate analysis revealed that both retail and

wholesale prices of rice in Colombo market had different structure. Both retail and wholesale

market prices exhibited seasonality in prices, which was more prominent in retail prices than

wholesale prices.

Viju and Prabhakaran (1988) inferred that the increasing prices and yield of rubber might have

accelerated the planting of rubber in new areas and resulted in substitution of coconut by rubber

in Kerala. The author concluded that, the agrarian relation bill of Kerala which exempted rubber

from the land ceiling level might have resulted in the conversion of large areas under other crop

into rubber areas.

Satyabalan (1993) analyzed the yield variation in west coast tall coconut palm in Kerala. He

suggested mother palm selection should be restricted to those palms which yields 80 nuts or

more per year, as they would be able to give high yielding progeny, which won’t show much

yield variation.

18

CHAPTER 3RESEARCH METHODOLOGY

19

3. RESEARCH METHODOLOGY

A research may undertake any of the three types of research investigation depending upon the

problem.

This type of research included:

1. Basic research

2. Applied research

3. Designated Fact Gathering

Basic Research: - It is also known as the pure fundamental research, which refers to those

studies, sole purpose of which is the discovery of new information. It is conducted to extend the

horizons on given area of knowledge with no immediate application to existing problems.

Applied Research: - It is attempt to apply the various marketing technique, which have been

developed as research, first and later on they become applied research techniques. It is an

attempt to apply the basic principles and existing knowledge for the purpose of solving

operational problems.

Designated Fact Gathering: - It refers to a research where the investigation attempts to gather

some pre-determined data

In the process of achieving the objectives of the study, it is very essential to follow a systematic

and scientific approach so as to present and interpret the results of the study or investigation

conducted. This chapter on methodology consists of the details of the description of the study

area, the sampling procedure, nature and sources of data, the analytical tools and techniques

employed and other information to support the existing results like secondary sources of

information required to keep the reader inferred for reference and documentation. The

methodology chapter is discussed under the following heads.

Research design

Location

20

Nature and source of data

Data collection instrument

Sampling design

Analytical techniques employed

RESEARCH DESIGN

“Research design is the plan, structure and strategy of investigation conceived so as to

obtain answer to research question and to control variance.”

This project is done under the Descriptive Research Design.

Involves gathering data that describe events and then organizes, tabulates, depicts, and describes

the data. Uses description as a tool to organize data into patterns that emerge during analysis.

LOCATION

Chhattisgarh, the 26th state of the Indian Union came into existence on November 1,2000. The

state is geographically situated between 17046'N and 2405 North Latitude and 80015'E and 84020'

East Longitude. The total geographical area is around 136 lakh ha. of which cultivable land area

is 58.81 lakh ha & forest land area is 60.76 lakh ha with more than 2.07 crore population. About

80 percent of the population in the state is engaged in agriculture and 43 percent of the entire

arable land is under cultivation. Paddy is the principal crop and the central plains of Chhattisgarh

are known as rice bowl of central India. Other major crops are coarse grains, wheat, maize,

groundnut, pulses and oilseeds. The region is also suitable for growing mango, banana, guava &

other fruits and a variety of vegetables   with 44 percent of its area under forests it has one of the

richest bio-diversity areas in the country. It has abundant minor forest produce like Tendu leaves,

Sal seed, etc. Medicinal plants, bamboo, lac and honey are other potential money earners for the

state. Chhattisgarh has embarked on a concerted plan to increase double cropped areas, diversify

the cropping pattern and improve incomes from agro-based small-scale enterprises. In order to

unlock the true potential of agriculture sector in the state, government is paying special attention

towards better management of its water resources. To reduce the farmers dependence on rainfall,

government is working towards increasing the irrigation potential of the state. It is estimated that

approximately 43 lakh hectares can be potentially irrigated covering  75 percent of the entire

21

cropped area in the state. Ravi Shankar Sagar Mahanadi project, Hasdeo-Bango, Kodar and

others are some of the important irrigation projects in the state.

 Agro-climatically, Chhattisgarh may be divided into 3 distinct zones with immense potential for

agricultural development.

 BASTAR PLATEAU

NORTHERN HILLS

CHHATTISGARH PLAINS

The plains cover districts of  Raipur,

Mahasamund, Dhamtari, Durg, Rajnandgaon,

Kawardha, Bilaspur, Korba, Janjgir and a part

of Kanker district (Narharpur & Kanker blocks)

along with a part of Raigarh district.

22

Map of Chhattisgarh state showing selected districts for the study

23

Raipur district:

Cropwise & Districtwise Area, Production & Productivity of Rabi Crops (Year 2007-08 to 2010-11)

C.L.R. Unit : Area 000' ha, Production 000 MT & Productivity Kg./ha.

S.No Crop 2007-

08

2008-

09

2009

-10

2010-

11

2007-

08

2008-

09

2009-

10

2010-

11

2007-08

2008-09

2009-10

2010-11

1 Wheat 8.71 8.24 8.52 8.60 9.80 8.27 11.97 11.60 1125 1004 1405 1408

2 Summer

Paddy

29.60 19.27 15.96 27.12 46.68 26.38 24.48 39.87 1577 1369 1534 1470

3 Gram 8.89 8.58 8.47 8.60 7.75 7.47 8.62 8.30 872 871 1018 964

4 Peas 3.27 3.27 2.49 2.60 1.11 1.11 0.87 0.90 339 339 349 371

5 Rapeseed-

Mustard

1.24 1.21 1.42 1.40 0.46 0.41 0.62 0.50 371 339 437 347

6 Sunflower 0.28 0.21 0.20 0.25 0.10 0.08 0.08 0.10 357 381 400 410

24

Durg district:

Cropwise & Districtwise Area, Production & Productivity of Rabi Crops (Year 2007-08 to 2010-11)

C.L.R. Unit : Area 000' ha, Production 000 MT & Productivity Kg./ha.

25

S.N

o

Crop 200

7-08

200

8-09

2009

-10

201

0-11

2007

-08

200

8-09

200

9-10

201

0-11

200

7-08

200

8-09

200

9-10

2001

0-11

1 Wheat 20.1

7

19.7

5

24.5

5

27.3

0

19.4

3

18.8

9

23.1

6

26.9

0

963 956 943 1027

2 Summer

Paddy

22.5

7

20.9

7

6.45 17.6

0

37.4

4

19.9

0

5.40 33.2

6

165

9

949 837 1890

3 Gram 99.2

0

87.6

2

101.

46

95.8

0

100.

98

84.6

0

98.3

6

91.1

0

101

8

966 969 951

4 Peas 1.38 1.07 1.06 1.10 0.48 0.34 0.31 0.30 348 318 292 316

5 Rapesee

d-

Mustard

1.77 1.99 2.22 4.20 0.58 0.61 0.92 1.40 328 307 414 329

6 Sunflow

er

0.44 0.14 0.25 0.25 0.30 0.08 0.17 0.17 682 571 680 685

NATURE AND SOURCES OF DATA

In order to evaluate the objectives of the study, data was collected from both primary and

secondary sources.

Primary data

The primary data forms an important component of any research investigation. As the study

focuses on the preferences of farmers over purchase of seeds, behaviour of farmers towards the

solution and adoption of brands, the loyalty of farmers towards dealers as a subjective

phenomenon focuses on the behaviour of farmers. Hence, greater thrust was given to collect

information at farmers level. However, the number of dealers, their problems etc. were also

important and the primary data was very essential to be elicited.

The primary data was collected using a pre-structured questionnaire encompassing a number of

variables/parameters which could explain their behaviour towards purchase of seeds, the dealers

margin etc.

Secondary data

As the research study focuses on the aspects such as estimating of demand and supply of their

gaps and also some of the information relating to the number of dealers in each district,

quantities handled, the role of departments, the licensing of agriculture inputmagencies, the

statistical data etc. were very much required to take some of the investigation process. Hence, the

secondary data required were collected from:

Department of Agriculture

Districts Statistical Officer and other related departments

internet

literatures

journals

26

Sampling

Sample is the true representation of the population by studying of the sample we can predict the

behavior of the population.

Element –Seed marketing strategy

Sample Size- 29(in this case)

Sampling unit-Dealers and Retailers

Sampling method- Non probability convenience sampling

Sampling design

In order to proceed with investigation as per the objectives stated, it was necessary to adopt an

appropriate sampling design so as to focus the importance of objective in taking the problems in

seed marketing. It was proposed at the outset to study the area under crop in primary stage, for

this purpose the secondary source data was used. The districts are ranked in order of the highest

area by districts, the percentage contribution of each district were computed to ascertain the

relative importance of these lists among the total districts in the area under. However, the figures

on production of seeds could not be ascertained which directly dependent on the diversity in

productivity in different location. A non probability convenience sampling was adopted as

appropriate sampling procedure for the study.

Method procedure

T test- A statistical examination of two population means. A two-sample t-test examines whether

two samples are different and is commonly used when the variances of two normal distributions

are unknown and when an experiment uses a small sample size.

27

CHAPTER 4ANALYSIS AND FINDINGS

28

DATA ANALYSIS AND INTERPRETATION

1 Satisfaction with the promotional activities regarding seeds advertisements.

Promotional activity Response percentage

Strongly agree 6 21%

Agree 4 14%

Neutral 4 14%

Disagree 15 52%

Strongly disagree 0 0%

Total 29

strongly agree agree neutral disagree strongly disagree

0%

10%

20%

30%

40%

50%

60%

Advertisment

Advertisment

INTERPRETATION:- The seeds dealers are asked to give their satisfaction on promotional activity of seeds. From the above it was found that 51.72% of seeds dealer are dissatisfied with the promotional activity related with seeds marketing.

29

2 Packing and labeling affect seeds marketing.

Packing and labeling Response Percentage

Strongly agree 18 62%

Agree 8 28%

Neutral 3 3%

Disagree 0 0%

Strongly disagree 0 0%

Total 29

INTERPRETATION:- Another major factor playing the role in seeds marketing is labeling

and packaging. From the above it is find that majority of dealers are satisfied with the packaging

and labeling of seeds.

30

Strongly agree Agree  Neutral  Disagree  Strongly disagree

0%

10%

20%

30%

40%

50%

60%

70%

Packaging

Packaging

3 Distribution channel for procuring and supplying of seeds

Distribution channel Response Percentage

Strongly agree 6 21%

Agree 16 55%

Neutral 7 24%

Disagree 0 0%

Strongly disagree 0 0%

Total 29

INTERPRETATION:- from the above, it is found that the major group of respondents with

55% agree with the distribution channel of seeds marketing and 21% are replied with neutral

response regarding distribution channel.

31

Strongly agree

Agree Neutral Disagree Strongly disagree

0%

10%

20%

30%

40%

50%

60%

Distribution channel

Distribution channel

4 Credit acquisition facilities from distributors

Credit acquisition Response Percentage

Strongly agree 5 17%

Agree 5 17%

Neutral 11 38%

Disagree 8 28%

Strongly disagree 0 0%

Total 29

Strongly agree Agree Neutral Disagree Strongly disagree

0%

5%

10%

15%

20%

25%

30%

35%

40%

credit facilities

credit facilities

INTERPRETATION:- from the above, it is found that the major group of respondents 38% are neutral with getting credit facilities from distributor and 28% are dissatisfied with credit facilities.

32

5 Awareness about customers demand

Demand awareness Response Percentage

Strongly agree 17 59%

Agree 7 24%

Neutral 5 17%

Disagree 0 0%

Strongly disagree 0 0%

Total 29

Strongly agree Agree Neutral Disagree Strongly disagree

0%

10%

20%

30%

40%

50%

60%

70%

Demand

Demand

INTERPRETATION:- From the above we conclude that more than half of the dealers are very much aware about customer demand.

6 Transportation facilities provide to customers

33

Transportation facilities Response Percentage

Strongly agree 15 52%

Agree 7 24%

Neutral 5 17%

Disagree 2 7%

Strongly disagree 0 0%

Total 29

Strongly agree

Agree Neutral Disagree Strongly disagree

0%

10%

20%

30%

40%

50%

60%

Transportation facilities

Transportation facilities

INTERPRETATION:- From the above we conclude that more than half of the dealers are provide transportation facilities to customer.

7 Deal with all types of seeds

34

Dealing with type of seeds

Response Percentage

Strongly agree 11 38%

Agree 4 14%

Neutral 5 14%

Disagree 9 31%

Strongly disagree 0 0%

Total 29

Strongly agree Agree Neutral Disagree Strongly disagree

0%

5%

10%

15%

20%

25%

30%

35%

40%

Type of seeds

Type of seeds

INTERPRETATION:-from the above data we found that 35% of dealers agree with dealing of all type of seeds and 31% dealers are disagree with dealing with all type of seeds.

Findings

35

Market share is mostly enjoyed by the branded seeds company

Dealers in developing regions mostly dissatisfied with the promotional activity regarding seeds advertisement.

It is find that majority of dealers are satisfied with the packaging and labeling of seeds.

The margin given by seed industry to the dealers is satisfactory.

Seeds is timely available to dealers

The channel of distribution and procurement is satisfactory.

Credit facilities provided by the seeds industry to the dealers are not satisfactory.

Seeds dealers in developing region are very much aware about customer demands for seeds

Transport facilities are provided by the seeds industry to dealers.

In the developing region of Chhattisgarh the seeds dealers are not deal with all type of seeds such as cereals, grain, vegetable etc.

36

CHAPTER 5CONCLUSION AND SUGGESTIONS

Conclusion

Almost everyone had role in the overall seed trade. Because the seeds of all type being a

commercial crop of the area. The dealers take up seeds in large scale. Seeds demands are

37

increasing day by day. Many companies and dealers do participate in the trade. The market for

seeds is highly competitive and the results analysed also indicate the same. The marketing

strategy adopt by the seeds industry in developing region is not satisfactory. The promotional

activities, credit facilities, advertisement used by the seed industry are not satisfactory.

Suggestions

Seeds industry must improve their promotional activity in developing region of

Chhattisgarh.

38

Seeds industry must adopt new methods of advertising.

Should provide all information related to price, contents and other information related

with seeds in packaging and labeling of seeds.

Seeds industry should provide credit facilities, discounts, and free sample to seeds

dealers.

The seeds industry in developing region of Chhattisgarh should use various modes for

awareness regarding seeds.

Seeds industry must provide free sample to dealers and farmers.

In today scenario the demand of seeds product increasing and agriculture land

availability is less so seeds industry must provide good quality of seeds for more

productions

Dealer’s questions or problems should be considered properly and same has been

answered effectively.

Should improve the distribution channels for supplying the seeds to dealers.

Should take feedback from dealers and farmers.

Appendix – VIII

39

BIBLIOGRAPHY

Books: 

(1.) C.R.Kothari, ”Research Methodology”, Published By New Age International(P) 

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(2.) D.N. Elhance,”Business Statistics”, Published By Newton International(p) 

Ltd,New Delhi-110002,Third revised edition,2006,page no.678

Website:

www.wikipedia.com

www.cgagri dept .nic.in/

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