G.L BAJAJ INSTITUTE OF MANAGEMENT & RESEARCH SUMMER PROJECT REPORT ONDISTRIBUTION CHANNEL OFINDIAN FARMERS FERTILIZER COOPERATIVE LTD(IFFCO)PHULPUR,(UTTAR PRADESH)

BY ABHISHEK VERMA PGDM-GM12008

INDUSTRY GUIDE FACULTY GUIDE

Mr. Ashok Kumar Rai Prof. Sumeet jhamb

Asst. Marketing Manager Professor

(IFFCO PHULPUR) GLBIMR

ACKNOWLEDGEMENT

This project has been a great learning experience for me and I would like to express my sincere gratitude to all the people who guided me throughout the project and without the valuable guidance and suggestions of these people this project would not have been completed successfully.

I owe enormous intellectual debt towards my industry guide Mr.Ashok Kumar Rai MarketingManager,IFFCO PHULPUR (UP), and Faculty guide Prof. Sumeet jhamb, G L Bajaj Institute of Management & Research for their continuous support and cooperation throughout my project without which the present work would not have been possible.

Special thanks to Mr. Alok Kumar IFFCO (PHULPUR) for their continuous guidance, support and cooperation during the project.

I would like to thank all the respondents whom I interacted during my project without their support and cooperation this project would not have been completed successfully.

And Last but not the least, I feel indebted to all those persons and organization who/ which have

Provided helped directly or indirectly in successful completion of this project.

TABLE OF CONTENT

Chapter No. SubjectPage No.

1Executive Summary4

Objective of Study 6

2

3Profile of the company7

4Review of Literature22

5Research Methodology 24

6Data Analysis27

7Recommendation & suggestion41

8Questionnaire

42

9 Bibliography 50

CHAPTER - 1RATIONALE FOR THE STUDY

The project report on the Distribution Channel of IFFCO,Phulpur is just an attempt to find out the overall distribution and marketing activities of the organization. For a better understanding, the distribution strategy has been studied by me. Studying the distribution channel strategy gave me a clear understanding of the specific functions of each section of the distribution channel of IFFCO.In the recent years, we have seen that the importance of studying any subject matter in an analytical way has developed conceptually with the changing scenario.In a professional course like PGDM., it is very essential for a student to get sufficient exposure to the real business situation where one can have some practical knowledge as how to the organisation functions and works.Fertilizer has been a major contributing factor to the growth of Indian agriculture over the last five decades. The overall fertilizer consumption in the country has recorded phenomenal growth in last few years. The marketing department controls the day to day supply as per the fixed norms of government so that the farmers are benefited with good quality Urea at a cheaper rate and at cooperative societies nearer to them.

With a view to find out the policy of distribution and movement of companys product i.e UREA and DAP in the states like Uttar Pradesh. I have undertaken the study on the distribution channel of the Indian Farmer Fertilizer Cooperative Limited, Phulpur. This project also discusses about the role of farmer service centres (FSC) and the role of dealer in the distribution channel. Since fertilizer distribution and movement are regulated by Govt. of India under Essential Commodities Act (ECA), the company is expanding its marketing of their product as per extent rule and regulations of the Government.

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

CHAPTER - 2OBJECTIVE OF STUDY

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 broadstraightforward guide to the management for further expansion and improvement of distribution channels.2. The study will encourage the marketing officials 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 undertakenby IFFCO Phulpur Unit.

CHAPTER - 3PROFILE OF THE COMPANY

3.1INDIAN FARMERS FERTILIZER COOPERATIVE LIMITED(IFFCO)

MISSION

"To enable Indian farmers to prosper throughTimely supply of reliable, high quality agricultural inputs and services in an environmentally sustainable manner and to undertake other activities to improve their welfare"

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.

COMMITMENT

Their thirst for ever improving the services to farmers and member co-operatives is insatiable, commitment to quality is insurmountable and harnessing of mother earths' bounty to drive hunger away from India in an ecologically sustainable manner is the prime mission.

3.2 IFFCO VISION 2015Successfully 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-2015having objectives of :-

Production of fertilisers through expansion of existing units . Setting up of additional fertiliser production facilities in India and Abroad through joint ventures. Diversification into other profitable sectors. Strengthening raw material sourcing through Strategic joint ventures. Formulation of Strategic Alliances through IFFCO consortium. Become Global Leader in Fertilisers Production to cater to Food Security needs of the Nation. Enhance presence in International markets through strategic joint ventures andSynergisticAcquisitions. Promote Integrated Nutrient Management to improve efficiency of fertiliser use and to promote location specific research an efficient fertiliser practices.

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 supplygap 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, 39862on 31stmarch 2010.

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.

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 which covers 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 SnamProgetti, Italy respectively and for Ammonia plant and Urea plant of Phulpur-II are M/s HaldarTopasoe and M/s SnamProgetti 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 capacity and one 18 MW electric turbo generator set has been installed for Phulpur-II.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-314Factory Code Number: 2356Industry Code Number:3112

IFFCO Phulpur Unit comprises some specific directly/ indirectly contributes in Mass Production.1. Production Department2. Technical Department3. Research and Development Department4. Fire and Safety Department5. MotiLal Nehru Farmers Training Center6. Administrative Block

3.3.1 IFFCO PHULPUR IConceived 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 Generation Instrument and Plant Air System, Naptha and Fuel Oil Handling System, 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:PLANTCAPACITYCONSULTANT/SUPPLIER

Ammonia977 MT/DayM/S Pullman Kellogs, USA

Urea1670 MT/DayM/S SnamProgetti, Italy

Power Boilers3x125 MT/HRM/S Bhel

Turbo Generator1x125 MWM/S Bhel

MAIN FEATURES:Starting DateMay 26, 1980

Commercial ProductionMarch 28, 1981

Project CostRs.205 Cores

Total Area1670 Acres

Plant320 Acres

Township480 Acres

Cordet150 Acres

Ash Pond120 res

3.3.2 IFFCO PHULPUR - IITo 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:PLANTCAPACITYCONSULTANT/SUPPLIER

Ammonia2000 MT/DayM/S Htas, Denmark

Urea3500 MT/DayM/S SnamProgetti, Italy

Power Boilers1x1200 MT/HRM/S Bhel

Turbo Generator1x18 MWM/S Bhel

MAIN FEATURE:Zero DateApril 20, 1995

Commercial ProductionDecember 22, 1997

Project CostRs.1186.8 Cores

Indian CurrencyRs.859.8 Crore

Foreign CurrencyRs.327 Crore

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.

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 (whose MRP 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 subsidy during the 2010-11.New policy scheme are as following for per bag:N : Rs. 23.07P : Rs. 26.27K : Rs. 24.48S : Rs. 1 .76

(3.6)Marketing Division

Marketing Territories of IFFCO:

Marketing Central Office

East (Calcutta) West (Bhopal) South (Bangalore)North Centre (Chandigarh) North Centre (Lucknow)n

A.P., Karnataka, Tamilnadu, KeralaAssam, Orissa, W.B.

Gujarat, M.P, Maharashtra, Chhattisgarh Punjab, Haryana, Rajasthan, J&K, .Himanchal PradeshBihar,U.P., Jharkhand, Uttaranchal

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

APEX Marketing District/Block level PACS ( FSC )Farmers Mktg. SocietiesFederation Centre

District/Block level PACS Farmers Farmers Mktg. Societies

PACS Farmers

Farmers

DISTRIBUTION CHANNELS

1. Distribution of fertilisers mainly through the CooperativeSystem:2. State level Apex Cooperative Marketing Federationacts 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

3.7 TOTAL SALES OF FERTILIZERData in Lakh Mt as on 31stmarch 2010.

3.8 DISTRIBUTION & WAREHOUSHINGDistribution 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 consultation 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 : 450Non-executive : 1150

3.10 Board of Directors of the Company is followingMr.Surinder Kumar Jakhar, (Chairperson)Mr. N. P. Patel, (Vice Chairperson)Shri.RakeshKapur (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)

CHAPTER - 4REVIEW OF LITERATURE

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.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 PGDM offered by G.L BAJAJ INSTITUTE OF MANAGEMENT AND RESEARCH(GREATER NOIDA)

CHAPTER - 5RESEARCH METHODOLOGY

Research MethodologyIn the research I have found new ideas by which I can explain the views of respondents on whom I have conducted research on the topic and on that basis I have found their views and can suggest some decision problems and opinions by analyzing and interpreting the facts I have found.

Exploratory researchIs a type of research conducted because a problem has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects.Exploratory research often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups, projective methods, case studies or pilot studies.

5.1 Research Design: It is the frame work by which we can conduct study on any topic and can collect data and can analyze that. In this study the information was collected by using: Exploratory Research design in the form of well structured Questionnaire. Personal Interview method. Simple Convenient Sampling.For the study two types of data was used. Primary Data Secondary Data

5.2 Data Collection Method / Sources:The primary Data was collected through personal interviewes conducted with the help of a strucatred questionnaire. The questioonairewas designed with closed ended question, which was used to collect data from the distributors, Retailers and Customers in that particular area. The secondary data was collected by the researcher with the help of various publications and internet, listited in the bibliography.

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 DeputyDirector Agriculture records were used.

5.3Sampling Unit: Farmers of the Allahabad District. 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.

5.5Sampling 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.

CHAPTER - 6DATA ANALYSIS

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

Only Chemical Fertilizer60

Only Compost Fertilizer40

Both30

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

Data InterpretationThe above data clearly indicates that chemical fertilizers are most widely used and preferred fertilizer among the respondents.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 FertilizerNumberof Respondents

Urea60

DAP40

NPK30

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

Data InterpretationIt is very clear from the above data that Urea is used by majority of the farmers in the field followed by DAP and NPK.Table No. 6.3- When I inquired about the specific brand of fertilizers which the Farmers were using following were the responses.Fertilizer Brand NameNumber of Responses

Oswal/ Indogulf 40

IFFCO 60

National Fertilizer 10

Others 20

Total 130

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.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.

FactorsResponses Percentage

Availability 20 15%

Brand Name 10 8%

Price 35 27%

Solubility 15 11%

Advertisement 10 8%

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.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.Source Number of Respondents Percentage

Dealers160 80%

Cooperative Societies 4020%

Total 200100%

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.

Table No. 6.6-Following data give the number of respondent who attended awareness program.Yes45

No85

Figure 6.6 Pie chart showing the response of farmers whoattendad the awarness program.

Data Interpretation:The above data revels that the awareness program has not been up to the mark. Farmers are not aware to these types of awareness program. Table No. 6.7- The above Table shows that awareness program from the above 45 Farmers (Who attended awareness program) are as following.Good 10

Satisfactory 5

Poor 30

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.

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).

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 according to consumers requirement.

Yes (limitation faced in supply of product).

No (limitations not faced in supply of product).

ROLE OF DEALERSFigure 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.

CHAPTER -7FINDINGS

Findings1. 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. 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.

17. Road and Rail are the main mode of transportation of companys product. It was found that companys transportation facility are best because 90% are by train and 10% by road so his transportation cost is very cheap, fast and safe.

18. One thing is very much attracting Farmers towards purchase of IFFCO Urea is KHAD TO KHAD BEEMA BHI SAATH. This is a insurance offered by IFFCO for farmers.

19. Now a days IFFCO marketing officer are made concentration on Customer Delight rather than Customer Satisfaction.

CHAPTER 8LIMITATIONSLimitationsWhile 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 taken into 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 conclusion 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. Respondents did not respond to those questions because they were unwilling to disclose the related data of information .

RECOMMENDATION & SUGGESTIONS:The following recommendation/ suggestion are given below for improvement of the distribution channel of the IFFCO Fertilizer :

1. Selecting weak Cooperative Societies and provide their Financial,Managemental and Technical support like MIS facilities in Marketing Division as well as all delivery centers.

2. Launch the program like constructing storage community center in the area of direct need. The company should organize availability promoting the fertilizer and also serve the technical need.

3. IFFCO should also help in forming new cooperative societies so as to increase sales of IFFCO fertilizer.

4. IFFCO should also adopt direct supply system to provide fertilizer to farmer.

5. In Direct Supply system IFFCO should give the facilities of credit for selling the fertilizer.

6. Price of urea should be reasonable, and easy mode of payment should design.

7. To promote research and training on the application of present management system, technology and global experience for cooperative development.

8. To Promote, assist and encourage development of cooperatives with special power on suitable agricultural and social economic and cultural development of the members through cooperative bodies, voluntary institutions and other entities.

APPENDIX

9.1 Questionnaire for Farmers

Dear Respondent, I, a student of MBA (3rdsem) 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 give the 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.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 Fertilizers3. 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?(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

(9.2)Questionnaire for Co-Operative SocietyName: Age: .Designation: ...Department:Cooperative SocietyAddress: 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.(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?(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.

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 cooperative society only.(c). Through Government counters. (d). Through IFFCO counters .

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.

9. IFFCO Booklet.

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