36920152 Project on Distribution Channel of Iffco

download 36920152 Project on Distribution Channel of Iffco

of 59

Transcript of 36920152 Project on Distribution Channel of Iffco

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    1/59

    1

    PROJECT REPORT

    DISTRIBUTION CHANNEL OF

    INDIAN FARMERS FERTILIZER COOPERATIVE LTD(IFFCO)

    PHULPUR,UTTAR PRADESH

    Master of Business Administration (Marketing)

    SUBMITTED I N PARTIAL FULFILLMENT OF THE REQUIREMENT

    FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION OF

    TILAK MAHARASTHRA UNIVERSITY , PUNE

    SUBMITTED BY :

    RISHABH MISHRA

    PRN NO: 0729007618

    OF

    INSTITUTE OF BUSINESS STUDIES AND RESEARCH,

    PUNE

    TILAK MAHARASHTRA UNIVERSITY

    GULTEKDI, PU NE 411037

    2009-2011

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    2/59

    2

    CHAPTER - 1

    RATIONALE FOR THE STUDY

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    3/59

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    4/59

    4

    Urea at present being the only controlled fertilizer and having a major share

    of the entire states and also a market leader in many countries, therefore ,

    market potential of companys product is very high.

    In conclusion, this project will give a comprehensive idea about effective

    utilization of the channel of the distribution and recommendations

    offered would definitely help in increasing the sale of urea and dap etc.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    5/59

    5

    CHAPTER - 2

    OBJECTIVE OF STUDY

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    6/59

    6

    (2.1)Title of the Project:

    A Study of distribution channels of Indian Farmer Fertilizer Cooperative Ltd.

    (IFFCO), Phulpur, Uttar Pradesh.

    (2.2)Scope:

    1. The project will act as a broad straightforward guide to the managementfor further expansion and improvement of distribution channels.

    2. The study will encourage the marketing official s and the dealers to take

    sufficient measures to overcome the limitation of the channel of distribution.

    (2.3)Objectives :

    1. To study the existing distribution channel of the organisation.

    2. To find out the satisfaction level of farmers of Allahabad district regarding

    IFFCO fertilizer.

    3. To study the sales promotion activities being undertaken by IFFCO

    Phulpur Unit.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    7/59

    7

    CHAPTER - 3

    PROFILE OF THE COMPANY

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    8/59

    8

    (3.1)INDIAN FARMERS FERTILIZER COOPERATIVE LIMITED

    (IFFCO)

    MISSION

    "To enable Indian farmers to prosper through

    Timely supply of reliable, high quality agricultural inputs and services in an

    environmentally sustainable manner and to undertake other activities to improve

    their welfare"

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    9/59

    9

    APPROACH

    To achieve their mission, IFFCO as a cooperative society, undertakes several

    activities covering a broad spectrum of areas to promote welfare of member

    cooperatives and farmers. The activities envisaged to be covered are exhaustively

    defined in IFFCOS Bye-laws.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    10/59

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    11/59

    11

    Successfully implemented its earlier Corporate Plans namely VISION 2000,

    MISSION 2005 and VISION 2010 which resulted into becoming one of the largest

    producer and marketer of Chemical Fertilisers by expansion of IFFCOs existing

    units, setting up joint venture companies overseas and diversification into new

    sectors.

    IFFCO has now visualised a comprehensive Plan entitled VISION -2015

    having objectives of :-

    y Production of fertilisers through expansion of existing units .

    y Setting up of additional fertiliser production facilities in India and Abroad

    through joint ventures.

    y Diversification into other profitable sectors.

    y Strengthening raw material sourcing through Strategic joint ventures.

    y Formulation of Strategic Alliances through IFFCO consortium.

    y Become Global Leader in Fertilisers Production to cater to Food Security

    needs of the Nation.

    y Enhance presence in International markets through strategic joint ventures

    andSynergisticAcquisitions.

    y Promote Integrated Nutrient Management to improve efficiency of fertiliser

    use and to promote location specific research an efficient fertiliser practices .

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    12/59

    12

    During mid- sixties the Co-operative sector in India was responsible for distribution of

    70 per cent of fertilizers consumed in the country. This Sector had adequate

    infrastructure to distribute fertilizers but had no production facilities of its own and

    hence dependent on public/private Sectors for supplies. To overcome this lacuna

    and to bridge the demand supply gap in the country, a new cooperative society was

    conceived to specifically cater to the requirements of farmers. It was an unique

    venture in which the farmers of the country through their own Co -operative Societies

    created this new institution to safeguard their interests. The number of co-operative

    societies associated with IFFCO has risen from 57 in 1967, 39862 on 31st march

    2010.

    1968-69 1975-76 1981-82 1987-88 1993-94 1999-00 2006-07 2008-09 2009-10

    57

    2552826960 28134

    30200

    35072

    37381

    39564 39862

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    13/59

    13

    Indian Farmers Fertilizer Co-operative Limited (IFFCO) was registered on November

    3, 1967 as a Multi-unit Co-operative Society. On the enactment of the Multistage

    Cooperative Societies act 1984 & 2002, the Society is deemed to be registered as a

    Multistate Cooperative Society. The Society is primarily engaged in production and

    distribution of fertilizers. The byelaws of the Society provide a broad frame work for

    the activities of IFFCO as a Cooperative Society.

    IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant

    at Kandla both in the state of Gujarat in 1975. Ammonia - urea complex was set up

    at Phulpur in the state of Uttar Pradesh in 1981. The ammonia - urea unit at Aonla

    was commissioned in 1988.

    In 1993, IFFCO had drawn up a major expansion programme of all the four plants

    under overall support of IFFCO VISION 2000 . The expansion projects at Aonla,

    Kalol, Phulpur and Kandla have been completed on schedule. Thus all the projects

    conceived as part of Vision 2000 have been realized without time or cost overruns.

    All the production units of IFFCO have established a reputation for excellence and

    quality. A new growth path has been chalked out to realize newer dreams and

    greater heights through 2015 which is presently under implementation.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    14/59

    14

    (3.3)IFFCO PHULPUR

    IFFCO Phulpur an ISO 9001 & ISO 14001 certified company, was started in 1967. In

    order to cater the fertilizer need of farmers. The plant is located 34km away from

    holy Ganga Yamuna Sangam on the Allahabad Gorakhpur highway. IFFCO

    Phulpur consists of two plants. Old plant is known as Phulpur-I while new plant is

    known as Phulpur-II. Construction cost of Phulpur-I & Phulpur II has been Rs.205

    cores & Rs.1186.8 cores respectively. Total area of the plant is 1070 acres whichcovers Plant area 320 acres, Township 480 acres, Cordet 150 acres and Ash pond

    120 acres. Urea production capacity of Phulpur-I and Phulpur-II plants are 1670 MT

    and 2620 MT respectively. Capacity for Ammonia production capacity of Phulpur-I

    and Phulpur-II are 977 MT and 1520 MT respectively. Consultant for Ammonia plant

    and Urea plant of Phulpur-I are M/s Pullman Kellogg, USA and M/s Snam Progetti,

    Italy respectively and for Ammonia plant and Urea plant of Phulpur-II are M/s Haldar

    Topasoe and M/s Snam Progetti respectively. Naphtha consumption of entire

    complex is around 2000 MT/day. Captive Power plant-I having three coal fired

    boilers of 125 MT/hr steam generation capacity and one 12.5 MW Turbo generator

    set has been installed for Phulpur-I while another Captive Power plant-II, having one

    oil fired boiler of 200 MT/hr steam generation capacit y and one 18 MW electric turbo

    generator set has been installed for Phulpur -II.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    15/59

    15

    A full fledge Human Resource Management Centre with technically competent staff

    meets all the requirement of employees and trainees in order for their overall

    development.

    IFFCO Phulpur has a Computer Centre equipped with all the modern facilities. All

    the business work like Purchase, Store, Finance and Accounts, production,

    Maintenance, Dispatch and Communication are performed through the computer.

    IFFCO Phulpur also undertakes the IRDP work (hand pump installation,

    constructions of brick roads, construction of school building, aid of books and

    equipments to the school) of nearby village.

    License Number : Cil 93 (Dated 5th March 1976)

    Registration Number : ALD-314

    Factory Code Number : 2356

    Industry Code Number : 3112

    IFFCO Phulpur Unit comprises some specific directly/ indirectly contributes in Mass

    Production.

    1. Production Department

    2. Technical Department

    3. Research and Development Department

    4. Fire and Safety Department

    5. Moti Lal Nehru Farmers Training Center

    6. Administrative Block

    IFFCO PHULPUR I

    Conceived in 1974, the Fertilizer Complex located 34 km. away from Allahabad at

    Phulpur, has been built at a cost of Rs.205 cores. IFFCO Phulpur unit is a modern

    Fertilizer Complex having a 900 TPD Ammonia Plant and 1500 TPD Urea Plant,

    ream and Power Plant, Water Treatment Plant, Cooling Towers, Inert Gas

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    16/59

    16

    Generation Instrument and Plant Air System, Naptha and Fuel Oil Handling S ystem,

    Ammonia Storage and Handling, Urea Storage and Bagging, Coal and Ash

    Handling. Effluents Plants are provided auxiliary facility to the Complex. Apart from

    that a Technical Division including well established R&D section always provides the

    technical services to Complex.

    PRODUCTION CAPACITY:

    PLANT CAPACITY CONSULTANT/SUPPLIER

    Ammonia 977 MT/Day M/S Pullman Kellogs, USA

    Urea 1670 MT/Day M/S Snam Progetti, Italy

    Power Boilers 3x125 MT/HR M/S Bhel

    Turbo Generator 1x125 MW M/S Bhel

    MAIN FEATURES:

    Starting Date May 26, 1980

    Commercial Production March 28, 1981

    Project Cost Rs.205 Cores

    Total Area 1670 Acres

    Plant 320 Acres

    Township 480 Acres

    Cordet 150 Acres

    Ash Pond 120 Acres

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    17/59

    17

    IFFCO PHULPUR - II

    To bridge the demand supply gap of Fertilizer in the country and as a part of

    Vision 2000, to make IFFCO, one of the largest Fertilizer producing company in the

    world it was decided to expand the Phulpur unit by putting new Ammonia and Urea

    Plant. The project consists of Ammonia Plant o capacity 1100 MT/Day, 200 MT/HR

    Oil Fired Boiler and 18 MW Turbo Generator with other related offsite facilities. The

    zero date of the project was April 20, 1995 and commercial production declared on

    December 22, 1997. The total cost for the entire expansion project was Rs.1190

    corers.

    PRODUCTION CAPACITY:

    PLANT CAPACITY CONSULTANT/SUPPLIER

    Ammonia 2000 MT/Day M/S Htas, Denmark

    Urea 3500 MT/Day M/S Snam Progetti, Italy

    Power Boilers 1x1200 MT/HR M/S Bhel

    Turbo Generator 1x18 MW M/S Bhel

    MAIN FEATURE:

    Zero Date April 20, 1995

    Commercial Production December 22, 1997

    Project Cost Rs.1186.8 Cores

    Indian Currency Rs.859.8 Crore

    Foreign Currency Rs.327 Crore

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    18/59

    18

    (3.4)IFFCO PHULPUR UNIT: AWARDS

    1. NATIONAL ENERGY CONSERVATION AWARD 2003:

    2. In recognition of its outstanding performance in Environment Management,

    Phulpur Unit has won the "BEST ENVIRONMENTAL AWARD" three times

    from Fertilizers Association of India, i.e., for the Year 1993 -94, 1996-97 and

    1997-98

    3. 2nd Jawaharlal Nehru Memorial National Award for best organization in

    implementing "POLLUTION CONTROL MEASURES" from International

    Green Land Society, Hyderabad.

    4. IFFCO Phulpur has bagged "ENVIRONMENT AWARDS" for its excellent

    work in the field of Environment Management, by Rotary Club of Allahabad

    Midtown, for the year 1993-94.

    5. The Regional Director, Ganga Project Directorate, Ministry of Environment

    & Forests, New Delhi has issued appreciation letters for the good

    Environment control at IFFCO Phulpur.

    6. "First Position in Fertilizer Sector of Indo German Genentech Environment

    Excellence Award" New Delhi in Year 2002.

    7. "TERI Corporate Environmental Award" from Tata Energy Research

    Institute, New Delhi in Year 2000-01 (in the category of companies having

    turnover more than Rs.500 crore per annum).

    8. IFFCO Phulpur unit has received prestigious FAI award for the best overall

    performance of an operating Fertilizer Unit for Nitrogen (Ammonia and Urea

    Plants) for the year 2001 02. The award was presented by Honorable

    Union Fertilizer Minister Mr. S.S. Dhindsa, in the FAI annual seminar held in

    New Delhi on December 16, 2002.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    19/59

    19

    9. IFFCO PHULPUR UNIT BAGS CSI YITP AWARD 2001

    10.IFFCO Phulpur unit lifted runners-up trophy for the northern Region in

    Young IT professional Awards 2001, organized by Computer Society of

    India, held at New Delhi.

    11.IFFCO Phoolpur unit has been awarded ISO 14001 certificate from British

    Standards Institution UK (certificate number EMs 57450), in January 19,

    2001 for the Environmental Management System Associated with the

    manufacture and supply of fertilizer grade Urea inclusive corded, Hospital

    and Township.

    12.IFFCO Phulpur unit was awarded ISO 9001 certificate from British

    Standards Institution UK in July 12, 2000.

    (3.5)Nutrient-based subsidy policy (NBS): Under the new nutrient-based subsidy

    policy (NBS),April 2010 the government provides subsidy on decontrolled (whoseMRP is not decided by the government) nutrients such as Phosphorus (K) and

    Potash (S). A budget estimate of US$ 11.9 billion has been set for fertiliser s ubsidy

    during the 2010-11.

    New policy scheme are as following for per bag:

    N : Rs. 23.07

    P : Rs. 26.27

    K : Rs. 24.48

    S : Rs. 1 .76

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    20/59

    20

    (3.6)Marketing Division

    Marketing Territories of IFFCO:

    n

    There are 5 Zonal Offices, 20 State Curve Area Office , 63 Area Offices.

    Marketing Central Office

    North

    Centre

    (Lucknow)

    North

    Centre

    (Chandigarh)

    South

    (Bangalore)

    West

    (Bhopal)

    East

    (Calcutta)

    Bihar,U.P.,

    Jharkhand,

    Uttaranchal

    A.P., Karnataka,

    Tamilnadu,

    Kerala

    Assam, Orissa,

    W.B.

    Punjab, Haryana,

    Rajasthan, J&K,

    .Himanchal Pradesh

    Gujarat, M.P,

    Maharashtra,

    Chhattisgarh

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    21/59

    21

    Marketing Channel at IFFCO Phulpur Unit

    APEX Marketing District/Block level PACS ( FSC )

    Farmers Mktg. Societies

    Federation Centre

    District/Block level PACS Farmers Farmers

    Mktg. Societies

    PACS Farmers

    Farmers

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    22/59

    22

    DISTRIBUTION CHANNELS

    1. Distribution of fertilisers mainly through the Cooperative

    System:

    2. State level Apex Cooperative Marketing Federation acts as wholesaler.

    3. Direct supplies to Societies in some States.

    4. IFFCO-NCDC Cooperative Societies.

    5. Small quantities to institutional agencies like Agro .

    6. Industries Corporation etc.

    7. 158 IFFCO Farmers Service Centres

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    23/59

    23

    (3.7)TOTAL SALES OF FERTILIZER

    Data in Lakh Mt as on 31st march 2010.

    81.9586.1

    93.24

    112.58118.27

    0

    20

    40

    60

    80

    100

    120

    140

    2005-06 2006-07 2007-08 2008-09 2009-10

    Sale in lakh

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    24/59

    24

    (3.8)DISTRIBUTION & WAREHOUSHING

    Distribution of Urea and inter-state movement is under government controlled

    and is regulated under the Essential Commodities Act ( ECA) 1956. Under

    ECA , supply plan for urea is formulated by the government in consultatio n

    with the State Deptt. of Agriculture and Fertilizer industry. IFFCO urea is moved

    from factory to field warehouse by both road and rail. Movement through rail is

    resorted to on a need basis to distant locations at the shortest time.

    Consumption of urea is seasonal thereby rendering transportation, storage and

    distribution is very important .

    Urea Distribution Channel Process:-

    IFFCO Production Area Office Sub Area Office Ware-

    Housing Societies Farmer

    Fertilizer distribution Both by Rail (90%) and Road (10%) .

    300 Km. Distance by Road.

    Forwarehousing following services are used:

    Federations & Cooperative Godowns.

    Central Warehousing Corporation (CWC)

    State Warehousing Corporation (SWC)

    (3.9)HUMAN RESOURCE STATUS:

    Manpower strength of the company as on 31.04.2010 is as under :

    Executive : 450

    Non-executive : 1150

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    25/59

    25

    (3.10)Board of Directors of the Company is following

    Mr. Surinder Kumar Jakhar, (Chairperson)

    Mr. N. P. Patel, (Vice Chairperson)

    Shri. Rakesh Kapur (Jt. Managing Director)

    Shri. K.L. Singh (Director Technical)

    Dr. G.N. Saxena (Director (Coop. Development)

    Shri. R.P.Singh (Director (HRD)

    Shri. Arabinda Roy (Marketing Director)

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    26/59

    26

    CHAPTER - 4

    REVIEW OF LITERATURE

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    27/59

    27

    Most producers do not sell their goods directly to the final user , between

    them a stand a set of intermediaries performing variety of functions. The

    intermediaries are a chain each passing the product down to the chain to the

    next organization, before it finally reach the consumer or end user. This

    process is known as the distribution chain or the distribution channel. Each

    of the element in this chain will have their own specific needs which the

    producer must take into account along with those of all the important end -

    user. A distribution channel includes several inter -connected intermediaries such

    as - farmer service center, cooperative societies, distributors, whole seller etc.

    Each intermediary receives the goods at one pricing point and moves it to the

    next higher pricing point until it reaches the final buyer.

    A channel of distribution is a bridge to cover the gap between a

    manufacturer and consumer. So, it is very important for the company to have an

    effective channel of distribution. Distribution channel often require the assistance

    of others in orders to enable the market to reach its target market. A

    company can he handle its own distribution functions in a better position to

    exercise the control over product sale and potentially earn higher profit. At

    present, internet has made it much easier to distribute products thus lessening

    the need for others to be involved in selling a companys product .

    Distribution channels may not be restricted to physical product alone. They may be

    just as important for moving a service from producer to consumer in certain

    sectors, since both direct and indirect channels may be used Hostels , for

    example may sell their service (typically rooms) directly or through travel agent,

    tour operators, airlines, tourist boards, centralized railway system etc.

    A well designed distribution channel strategy takes into account the linkage

    between both the sales peoples activities with channel partners and the

    marketing managers efforts to better reach and serve end -users. The distribution

    channels management programmers builds a logical framework uniting

    marketing and sales efforts in a collaborative learning environment.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    28/59

    28

    This project discusses the existing distribution channels of IFFCO and the

    role of the farmer service centers in the distribution of the product. This project

    is also attempts to find out the distribution policy as well as the performance

    of the distribution channel on the sale of the product of the company. The

    project also bring out the various factors influencing the distribution of the

    company.

    For this purpose, data has been collected by one to one interaction with the

    officials of the Marketing Department of IFFCO. Also personally visited the

    dealers of the nearest area and collected the information required for the

    project.

    This project has been prepared with a view to give a comprehensive idea

    about effective utilization of distribution channel through which the company

    has been successfully expanding the sales of the product and also to fulfill

    the academic requirement of MBA offered by Institute of Business Studies &

    Research (IBSAR) under the TMV University, Pune.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    29/59

    29

    CHAPTER - 5

    RESEARCH METHODOLOGY

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    30/59

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    31/59

    31

    Primary Data:

    In Primary Data the information was collected from Manufacturers of fertilizers,

    Distributors, Retailers (Cooperatives, FSC, IFDC etc.) and customers i.e. Farmers of

    the Allahabad district using Questionnaire and personal interview.

    Secondary Data:

    For the study and analysis of Marketing Divisions Secondary Data from the

    Company, Area Office, VikashBhawan (A.D.O.),C.D.O. and Deputy Director

    Agriculture records were used.

    (5.3) Sampling Unit:

    y Farmers of the Allahabad District.

    y

    Employees of Cooperative Societies of IFFCO, PHULPUR.

    (5.4) Sample Size (200)

    In this study 130 Farmers, 40 Dealers, 20 Cooperative Societies,and 10 IFDC were

    taken into consideration.

    (5.5) Sampling Method:

    The method used for sampling is Convenient Sampling depending upon the

    information provided by the company.Geographically the areas of Research were

    different Markets of Allahabad Distt. Consisting of Rural as well as Urban Areas.

    They were Phulpur, BabuGanj, RahimaPur, BahadurPur, Jhunsi, Phaphamau,

    Teliarganj, Gaddopur, Soraon, Hathigaha, Sahanso, Sikandra, Gara pur, Tharwai,

    Padeela ground, 40 numbers Gomati, Mahewa, Arail, Sekhpur, Sulemsarai, Chakiya

    etc. from 15 June to 31st July 2010.

    (5.6) Tools of data analysis:Tabular analysis was used and same is presented in the Graphs.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    32/59

    32

    CHAPTER - 6

    DATA ANALYSIS

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    33/59

    33

    Table No. 6.1- To determines the type of fertilizer presently used by the farmers.

    Types of Fertilizer Number of

    Respondents

    Only Chemical Fertilizer 60

    Only Compost Fertilizer 40

    Both 30

    Figure 6.1 Pie chart showing response of farmers who used different types of

    fertilizer.

    Data Interpretation

    The above data clearly indicates that chemical fertilizers are most widely used and

    preferred fertilizer among the respondents.

    Chem. Ferti.

    46%

    Comp. Ferti.

    31%

    Both

    23%

    Typ. Of Fer.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    34/59

    34

    Table No. 6.2- The following table indicates the presence of category of fertilizer

    prominently used by the farmers in the fields are.

    Category of Fertilizer Number of

    Respondents

    Urea 60

    DAP 40

    NPK 30

    Figure 6.2 Chart showing response of farmers who used different category of

    fertilizer.

    Data Interpretation

    It is very clear from the above data that Urea is used by majority of the farmers in the

    field followed by DAP and NPK.

    0

    10

    20

    30

    0

    50

    60

    0

    UREA DAP NPK

    Res ndents using fertilizer

    UREA

    DAP

    NPK

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    35/59

    35

    Table No. 6.3- When I inquired about the specific brand of fertilizers which the

    Farmers were using following were the responses.

    Figure 6.3 Pie chart showing that IFFCO fertiizer used promiently.

    Data Interpretation:

    By the above table we can draw the inference that the fertilizer of IFFCO-Urea is

    mostly used at largest scale and after it similarly Oswal/Indogulf and National

    fertilizers is being used second and third place.

    31%

    46%

    8%

    15%

    Farmers using fertilizer

    oswal IFFCO Nat. Fert. Others

    Fertilizer

    Brand Name

    Number of

    Responses

    Oswal/

    Indogulf

    40

    IFFCO 60

    National

    Fertilizer

    10

    Others 20

    Total 130

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    36/59

    36

    Table No. 6.4- When I asked to the farmers about the preference of various factors

    in purchase of fertilizer following were the obtained Data.

    Factors Responses Percentage

    Availability 20

    Brand Name 10 8%

    Price 35 27%

    Solubility 15 11%

    Advertisement 10

    Quality 40 31%

    Figure 6.4 Chart showing that farmers bought IFFCO fertilizer due to his quailty.

    Data Interpretation:-

    It is evident from the above data that quality plays an important role in purchasing a

    particular brand of fertilizer i.e. IFFCO.

    20

    10

    35

    15

    10

    40

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    Availibility Brand Name Price Solubility Adverts. Quailty

    Availibility Brand Name Price Solubility Adverts. Quailty

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    37/59

    37

    Table No. 6.5- The table given below shows role of sources on providing a particular

    brand of fertilizer to the farmers 160 dealers and 40 cooperative socities taken for

    answer.

    Figure 6.5 Pie chart showing the role of dealers in IFFCO fertilizer

    Data Interpretation:- The above data reveals that most of the users are getting the

    fertilizers from Dealers Shop. IFFCO should adopt such strategy but it cant be

    possible due to cooperative laws.

    Dealers, 160

    Coo. Socities, 46

    Source Number of

    Respondents Percentage

    Dealers 160 80%

    Cooperative

    Societies

    40 20%

    Total 200 100%

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    38/59

    38

    Table No. 6.6- Following data give the number of respondent who attended

    awareness program.

    Yes 45

    No 85

    Figure 6.6 Pie chart showing the response of farmers who attendad the

    awarness program.

    Data Interpretation:- The above data revels that the awareness program has notbeen up to the mark. Farmers are not aware to these types of awareness program.

    YES, 45

    NO,85

    Farmers

    YES NO

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    39/59

    39

    Table No. 6.7- The above Table shows that awareness program from the above 45

    Farmers (Who attended awareness program) are as following.

    Figure 6.7 - Pie chart showing the response of farmers after the awarness program.

    Data Interpretation:

    The above data reveal that the awareness program has not been up to the

    expectations.

    Good, 10

    ati fa tor,

    Poor, 30

    Good 10

    Satisfactory 5

    Poor 30

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    40/59

    40

    Figure 6.8 Opinion of officials on the existing distribution channels for

    the distribution of the product (IFFCO) Urea :

    According to 85% of the marketing officials, the existing distribution channels

    are sufficient for the distribution of the product. However 15% of the marketing

    officials think that the existing distribution channel are not sufficient for the

    product.

    Yes (Existing distribution channel are sufficient).

    No (Existing distribution channel are not sufficient).

    15%

    85%

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    41/59

    41

    Figure 6.9 - Opinion of dealers on the delay faced in product

    transportation :

    Generally transportation cost by road is more than the rail transport. The

    company, therefore, prefers to transport major part by rail. In such situation private

    dealers have to wait for their requirement and as a result delay occurs. In

    this respect, 60% of dealers agree to the above limitations and 40% are of

    the opinion that there are no limitations in supplying the product accor ding to

    consumers requirement.

    Yes (limitation faced in supply of product).

    No (limitations not faced in supply of product ).

    40%

    60%

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    42/59

    42

    ROLE OF DEALERS

    Figure 6.10 - Factors which dealers consider while taking dealership of

    Company:

    Dealers before taking the dealership analyze various factors such as price,

    quality, brand, image, hassle free agreement etc. The bar chart below depicts

    the various factors the dealer look for while taking up dealership of

    Company.

    Percentage showing various factors dealers looks for while taking up

    dealership of company :

    Analysis of data revels that 65% of dealer give importance to quality and 35%

    look for brand image while taking up the dealership of the company. Dealers

    do not prefer price because price is fixed by government. As IFFCO is the only

    company of its kind in this region, so there are no competitors. For this,

    dealers have to accept the term and conditions of the agreement and abide

    by all rules and regulations as stipulated by the company.

    0

    10

    20

    30

    40

    50

    60

    0

    65%Quality 35% Brand

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    43/59

    43

    CHAPTER - 7

    FINDINGS

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    44/59

    44

    Findings

    1. Despite of various government regulations, other limitations, most of the

    marketing officials are satisfied with the present distribution channel as it

    makes the process of distribution easy.

    2. From the survey, it was found that there is a strong distribution channel of

    IFFCO in the Uttar Pradesh. It has emerged that present distribution channels

    increase the sale of product and it does not affect the quality of the product.

    3. In the beginning IFFCO was supplying fertilizer to state level APEX

    cooperative marketing federation only.

    4. During the survey on dealers, it was found that majority of them have taken up

    dealership of product because of its quality and brand image.

    5. APEX federation acted as wholesaler in the cooperative sector and they

    catered to the requirement of the lower societys i.e.PACS etc.

    6. Over the passage of time some federation walked out of fertilizer business

    due to financial management and other organizations problem.

    7. In some states where cooperatives are not in position to absorb the quantity

    offered by IFFCO, others channel viz. state agro Development Corporation as

    well as other institutional agency are also utilize.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    45/59

    45

    8. IFFCO is collaboration with National Cooperative Development Corporation

    (NCDC) adopt 1450 village level societies on the line of IFFCO Farmer

    Service Centre (FSC) in phase manner.

    9. Under the NCDC scheme its provide a loan of Rs. 424194 laks to IFFCO

    which was distributing as margin money loan @30,000 per societies.

    10. IFFCO also provides subsidy of Rs 12,000 to each for procuring agricultural

    implements.

    11. 20% farmers say that maize are grown in selected area of Allahabad district

    and near about 80% farmers are using IFFCO Urea.

    12. Major farmers (50%) using only IFFCO Urea and 60% farmers are satisfied

    with IFFCO fertilizer specially IFFCO Urea.

    13. 70% farmers are not satisfied with the price of IFFCO urea i.e. Rs 258.00 per

    bag of 50 Kg Urea. But farmers want Urea in between Rs 230-240 per bag of

    50 Kg.

    14. IFFCO provides many sales promotional schemes and farmers are generally

    satisfied by this scheme.

    15. The competitive brands of IFFCO Urea are in the market are generally

    Indogulf (Shaktiman) ,TATA, National, KRIBHCO and Oswal mainly, amongst

    these competitive brand of IFFCO is Shaktiman (Indogulf).

    16. Now a days packaging attracts farmers instead of the quality.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    46/59

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    47/59

    47

    CHAPTER - 8

    LIMITATIONS

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    48/59

    48

    Limitations

    While undertaking the project work in IFFCO there are some limitations

    experienced in compiling information for the purpose, which are briefly stated

    as below :

    1. Due to time constraints the sample size was to be kept limited.

    2. Area limitations i.e. only some parts of the Rural and urban market were takeninto consideration.

    3. Due to scarcity of transportation facility at villages it was very difficult to visit all

    the farmers individually.

    4. It is very difficult to gather 100% information through respondent because they

    are not confident about the purpose of the survey and Questionnaire. The

    Questionnaire were filed by the respondents. Generally it depends upon validity

    of these responses what they have given, we can only reach to conclu sion based

    on that and responses cant taken to 100% true.

    5. Non responding error might have occurred because some of the

    respondents contacted provided an incomplete or no response to some

    questions mentioned in the questionnaire. R espondents did not respond to

    those questions because they were unwilling to disclose the related data

    of information .

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    49/59

    49

    CHAPTER - 9

    RECOMMENDATIONS

    &

    SUGGESTIONS

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    50/59

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    51/59

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    52/59

    52

    APPENDIX

    (9.1)Questionnaire for Farmers

    Dear Respondent,

    I, a student of MBA (3rd sem) of Institute of Business Studies &

    Research, Pune have undertaken a major project as part of my study .

    Therefore, I would seek your kind cooperation and request you kindly to givethe answer to my questionnaire to make my project successfully. I also assure

    you that that the information will be kept as confidential and the same will be

    used only for my academic purpose.

    Rishabh Mishra.

    Name:

    Age:

    Address:

    Signature:

    Date: Place: Allahabad.(Uttar Pradesh)

    1. Do you know IFFCO fertilizer firstly from following?

    (a).Through News Paper, Radio, Television (b). Through our farmer

    brother.

    (c). through field officer of the IFFCO. (d). through wall

    Hording\Banner and some others

    sources.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    53/59

    53

    2. There are some fertilizers companies name select one which you know very

    well?

    (a).IFFCO (b).National Fertilizers

    (c). Shri Ram fertilizers (d). Tata Fertilizers

    3. Which company fertilizer you use mostly?

    (a). Shri Ram Fertilizers (b). National Fertilizers

    (c).KRIBHCO (d).IFFCO

    4. You are using IFFCO Urea, How many years?

    (a).5 Years (b).10 Years

    (c). 20 Years (d). 40 Years

    5. Which company fertilizer (Urea) you find good in quality and easily soluble in

    water?

    (a). Oswal fertilizer (b). National fertilizer

    (c).Tata fertilizer (d). IFFCO fertilizer

    6. Which company fertilizer available you very easily?

    (a). KRIBHCO fertilizer (b). Narmada fertilizer

    (c). Oswal fertilizer (d).IFFCO fertilizer

    7. Do IFFCO fertilizer available you at right time as per your demand?

    (a).Before time (b). At right time

    (c). No time availability (d). Never available

    8. Why you like most IFFCO fertilizer?

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    54/59

    54

    (a). Quality of fertilizer is very good (b).Bagging quality is

    very good

    (c). There is proposal of Insurance with the fertilizers. (d).All of above are truth.

    9. In IFFCO fertilizer which type of changes do you like?

    (a).Not any change in IFFCO fertilizer (b). Packaging and Quality

    (c). Availability and price (d). Change in distribution

    channel.

    10. How much you are satisfied with IFFCO fertilizers?

    (a). Only 50% (b). Fully satisfied

    (c). Worthless (d). Unhappy

    11. In which area of following do you want change?

    (a). Cooperative society (b). FSC

    (c). IFDC (d). Private channel.

    12. Do you feel IFFCO is best in fertilizer and chemicals because

    (a). IFFCO supplies fertilizers, seeds, NPK, DAP, Pesticides, Insecticides and others

    product.

    (b). Quality and solubility of fertilizer is very good in each types of soil.

    (c). IFFCO provide farmers training, Insurance, Timely availability and many more.

    (d). All of them are true.

    13. Finally amongst all of Fertilizers Company at which position would you like to

    place IFFCO?

    (a). First (b). Second

    (c). Third (d). None

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    55/59

    55

    (9.2)Questionnaire for Co-Operative Society

    Name:

    Age: .

    Designation: ...

    Department: Cooperative Society

    Address:

    Signature: .

    (Hindi) (English)

    Date: Place: Allahabad (Uttar Pradesh)

    1. What do you mean by Co-operative Society?

    (a). Cooperative means group of people.

    (b). Cooperative is group of farmers.

    (c). this is group of farmers and register under cooperative act.

    (d). this is a society made by farmers.

    2. How cans a person become a member of cooperative society of IFFCO?

    (a). By getting registration at IFFCO office only.

    (b).Firstly organizing society and registration in Govt. office.

    (c). anybody can be the member of IFFCO society.

    (d). simply by following cooperative laws.

    3. To whom IFFCO supply fertilizer?

    (a). Cooperative society only.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    56/59

    56

    (b). Private organizations only.

    (c). Non-Government Organizations and Trust.

    (d). Mainly IFFCO sales license holders.

    4. What is the mode of payment of sale of fertilizer to IFFCO?

    (a). By Cheque (b).By Cash (c).By cash-by credit (d).By Credit method.

    5. What is the method of providing subsidy rate o IFFCO fertilizer?

    (a).By calculating real input (labour, raw material) and Sale output (profit)

    (b). By following Govt. subsidy rate norms.

    (c). by following instruction of Managing Director.

    (d). none of them.

    6. What is current condition of cooperative society in IFFCO?

    (a). They are running very smoothly. (b). All most societies are dead in

    their locality

    (c). they need infrastructural changes (d). All are correct.

    7. Cooperative society are controlled by-

    (a). Central govt. (b).State govt.

    (c). Ministry of Cooperative society (d). IFFCOS Managing Director

    8. What are the basic principle of cooperative society?

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    57/59

    57

    (a). Spirit of cooperation between State

    (b). Spirit of cooperation between farmers & state govt.

    (c). Spirit of cooperative for the farmers only.

    (d). none of them.

    9. Is cooperative society commencing any type of training program for farmers?

    (a). Two or three times in every block level.

    (b). Five times at Distt. Level.

    (c). Two times in every village.

    (d). Never commence training program.

    10. How you face marketing competition with private channel?

    (a). We have famous brand IFFCO hence no competitor exist in market.

    (b). Our delivery system are so strong hence no problem of competition in

    market.

    (c). Private companies has no quality and popularity hence we have monopoly in

    market.

    (d). Till today I have no competitor in market.

    11. In the peak season how can you satisfy the farmers?

    (a) No one farmer is being satisfied.

    (b) All the farmers being satisfied.

    (c) Only potential and old farmers are being satisfied.

    (d) Only new farmers are being satisfied.

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    58/59

    58

    12. What is sales promotion level at Cooperative society?

    (a). State level sales advertisement through print and electronic media.

    (b). Field officer are responsible for sales promotional activities.

    (c). It is the duty of Marketing division to promote sales.

    (d). No need of sales promotion with IFFCO brand.

    13. Which types of complain do you face with the IFFCO fertilizer sales?

    (a). IFFCO brand has famous and good in quality hence no need of complaints.

    (b). Late delivery of fertilizers causes dispute in the farmers.

    (c). Farmer are very happy with our system.

    (d). All of them are correct.

    14. Which one of them is correct?

    (a). There are need to change the Cooperative channel so that fast delivery may

    applicable.

    (b). No need of change in cooperative society system.

    (c). There is need of privatization in delivery of fertilizers.

    (d). There should be involvement of non government organizations.

    16. What is the Distribution channel of fertilizers & other agricultural products in

    IFFCO?

    (a). Through Cooperative and Private channel both. (b). Through cooperativesociety only.

    (c). Through Government counters. (d). Through IFFCO counters .

  • 8/8/2019 36920152 Project on Distribution Channel of Iffco

    59/59

    Bibliography

    1. Marketing Management by Dr. Philip Kotler, The Prentice hall, India.

    2. Uttar Pradesh Government Statistical Book.

    3. Allahabad Distt. Fertilizer Sales Report Book from Project Manager

    Agricultural Services.

    4. IFFCO web site: www.iffco.nic.in,www.Google.com.

    5. Web site: www.wikipedia.com, www.answer.com.

    6. Others relevant sources like Agriculture magazine Yojana.

    7. Times of India Agriculture Survey Report 2009.

    8. Other websites: www.dogpile.com,www.icar.ac.in,www.google.com.