SYPNOSIS

AN EMPIRICAL STUDY ON FARMERS ACCEPTABILITY OF INDOFIL M45 BRAND IN COOCHBEHAR DISTRICT AGRICULTURAL BELT

Submitted By

Ms. JUI BASU

Enrolment Number: 091362013 Program: MBA

Guide

Mr. SUBRATA RAY

Lecturer, Department of Management UNIVERSITY OF NORTH BENGAL

Indira Gandhi National Open University

New Delhi

PROJECT PROPOSAL
INTRODUCTION Fungicides a brief story In 2008, fungicides overtook insecticides in global market value for the first time, giving producers newfound opportunities. Two main reasons stand out: The increased use of insect and herbicide resistant or tolerant crops, and farmers desire to maximize yields. Planting of genetically modified (GM) crops increased 7% to 134 million hectares (ha) last year. Costa Rica joined the GM nations in 2009, while the EU approved cultivation of BASFs Amflora potato in March. GM cultivation is growing, and with 25 countries now planting biotech crops, insecticides have taken a hit. One of GMs marketing points is that it reduces the need for chemical pesticides; therefore, the growing market segment of biotech crops has lessened sales of pesticides that perform the same duty as the insect-resistant crops. Longer-term, farmers are looking at fungicides to drive quality and yield. While the segment has been somewhat marginalized in the past, the more educated growers become, the more they realize the benefit fungicides can have on production. The thing which is being observed is a grower segment, growing fairly rapidly, looking to maximize their yield profitably and have high-quality crops. The farmers want to have more efficient operations, and certainly manage their risk. That is the reason why it is being believed that it is a very big driver for this. This trend is expected to continue, because fungicides drive yield and quality. The longterm trend is because of the advanced developing countries where the general economy is improving rapidly; people have more money to spend on food; they want more food, they want better quality food. Foliar fungicides have been shown to increase soybean yields by three bushels per acre when foliar diseases are present, according to research by Pioneer Hi-Bred, the seed business of DuPont. Companies such as Indofil, which specializes in fungicides like Mancozeb, are continuing to push these yieldincreasers through the pipeline. There are four generic fungicides under development stage in Indofil. The company is also investing in manufacturing and data development for EBDC and Cymoxanil. Indofil is also continuing its development in fungicides for fruits and vegetables, potato, grapes and banana. Future of Fungicides Overall, most analyses come to the conclusion that the benefits of fungicides far outweigh the risks, if they are used carefully and according to the label recommendations. Currently more than 80% of the fruit and vegetable crops grown in the U.S. receive a fungicide every season. The benefit of fungicide use in the U.S. agriculture to boost farm income by nearly $13 billion annually. The alternatives proposed by organic farmers, who are opposed to intensive farming altogether, exclude the use of synthetic fungicides, but allow the use of copper and sulfur based inorganic fungicides. There is still an ongoing debate as to whether traditionally or organically grown products are safer for the consumer. For example, a growing number of studies are being conducted to evaluate the risk of mycotoxins in the two farming systems. The major changes in fungicide use have usually been associated with changes in the spectra of pathogens as well as in crop intensities, practices or prices. The migration of tobacco blue mold into Europe or soybean rust into the Americas had a dramatic impact on the fungicide use on these crops.

Agrochemical and Fungicide market in India India is the fourth largest producer of agrochemicals globally, after United States, Japan and China. The agrochemicals industry is a significant industry for the Indian economy. The Indian agrochemicals market grew at a rate of 11% from US$ 1.22 billion in FY08 to an estimated US$ 1.36 billion in FY09. Indias agrochemicals consumption is one of the lowest in the world with per hectare consumption of just 0.58 Kg compared to US (4.5 Kg/ha) and Japan (11 Kg/ha). In India, paddy accounts for the maximum share of pesticide consumption, around 28%, followed by cotton (20%). Indian population is increasing and the per capita size of land decreasing, the use of pesticides in India has to improve further. Besides increasing in domestic consumption, the exports by the Indian Agrochemicals Industry can be doubled in the next four years if proper strategies and sophisticated technologies are adopted by the industry. In India, there are about 125 technical grade manufacturers (10 multinationals), 800 formulators, over 145,000 distributors. 60 technical grade pesticides are being manufactured indigenously. Technical grade manufacturers sell high purity chemicals in bulk (generally in drums of 200-250 Kg) to formulators. Formulators, in turn, prepare formulations by adding inert carriers, solvents, surface active agents, deodorants etc. These formulations are packed for retail sale and bought by the farmers. The Indian agrochemicals market is characterized by low capacity utilization. The total installed capacity in FY09 was 146,000 tons and total production was 85,000 tons leading to a low capacity utilization of 58%. The industry suffers from high inventory (owing to seasonal & irregular demand on account of monsoons) and long credit periods to farmers, thus making operations working capital intensive. India due to its inherent strength of low-cost manufacturing and qualified low-cost manpower is a net exporter of pesticides to countries such as USA and some European & African countries. Exports formed ~50% of total industry turnover in FY08 and have achieved a Compounded Annual Growth Rate (CAGR) of 29% from FY04 to FY08. Among these one of the key segments is the fungicide market. The growing horticulture market in India owing to the government support has given a boost to fungicide usage. The market share of fungicides has increased from 16% in 2004 to 20% in 2009. Description of ethylene bisdithiocarbamate (EBDC) protective fungicide (Indofil M45) As a chemical family, the EBDC pesticides are regarded as fungicides with a wide range of uses including control of early and late blights of potatoes and tomatoes and many other diseases of vegetables, fruit, commercial sod, and field crops. They are also used as seed treatments. They have been on the market since the 1930s and 40s. Members of this chemical family that remain on the market in the U.S. include mancozeb, maneb, metiram, and nabam. Product formulations of mancozeb are dry flowables, flowables, wettable powders, and microencapsulated. Mancozeb is a coordination product of zinc ion and maneb. These fungicides may cause irritation of the skin, respiratory tract, and eyes. Systemic toxicity by oral and dermal routes is generally low. It is not significantly absorbed through the skin. Mancozeb is essentially water insoluble; therefore, skin absorption of these two active ingredients is probably very limited. In 1987, the EPA conducted a special review of the EBDC compounds because of concerns about the potential health effects from dietary exposure to residues left on food crops and occupational exposure. It was concluded that the actual levels of EBDC residues on produce purchased by consumers are too low to affect human health. Many home garden uses of EBDCs have been cancelled because the EPA assumed that home users of these pesticides do not wear protective clothing during application. Systemic poisonings of humans have been extremely rare. No tests for these fungicides or their breakdown products in body fluids are available. 2

About Indofil-The Company manufacturing and marketing Indofil M45 Indofil Industries Limited, established more than four decades ago, headquartered in Mumbai, a researchled and fully integrated Chemical Company has emerged as a successful and vibrant enterprise, riding high on a simple philosophy of retaining loyalty and enlarging the fold of satisfied customers. The Vision of Indofil is equally simple - to focus on specific opportunities, drive growth and enhance value for esteemed customers. It has a highly skilled and successful sales team that believes in learning and working with the customers as Partners - thus developing the products and services around core issues, to meet their future needs. Employing 705 people, Indofil has a sales turnover of Rs. 782 crores, as on 31st March, 2010. Indofil has a very strong domestic base and a well recognized international presence. Both businesses viz Agricultural Chemicals and Specialty & Performance Chemicals are poised for much faster growth by partnering/joint ventures for manufacturing, marketing and research and development activities with prospective companies across the world. Indofil which is a very strong QMS ISO-9001-2000 and ISO 14001 Company is professionally managed by its Chief Executive Officer & President, Mr. R. K. Malhotra, a Post Graduate in Agriculture with 35 years "hands-on" experience and is an active and advisory member of various related Technical and Trade Associations. The vision of the Agrochemical division of Indofil is transforming from "Crop protection chemical supplier" to "Crop Care Company". Agro Business Division - is based on the concept of Crop District Approach. Indofil is promoting "Crop Care Concept" throughout the crop districts, where the needs and problems of the crops are identified and an attempt is made to meet the same by existing solutions or procuring new/right solutions. The basic market potentials are worked out by a systematic approach called Market Potential System, which helps to determine market share on every important crop in the district. This also helps to identify new avenues and understand customer's requirements better. The field staff is in constant touch with the market and customers to achieve this objective. A well thought of "Journey Cycle Plan" is chalked out well in advance, taking into consideration the requirements of the area.

Technical & Business Development Serving as pivotal link between R&D and Marketing team of experts is always busy evaluating new products and technologies. This is to generate data for registration as well as to demonstrate capabilities of new products / combinations / formulations to farmers, traders and the strong marketing team. They aspire to help and support customers to resolve predicaments and aim to provide convenient, clear and intuitive interfaces for rapid and acceptable crop solutions. The department also handles regulatory submissions to seek approvals for new products both within the country as well as abroad. Own registrations in more than 50 countries is a testimony to that. The department has successfully defended the products of interest in different countries and actively participated in annex-I listing of Mancozeb in European Union (EU). The division strongly believes in field work and Brand equity. The efforts are thus taken to introduce specialty products with an added advantage to Indian agriculture. Relentless search and negotiations are carried forward under the leadership of Exe. Vice President & technical department then takes over the onus of registration of the product, sorting out the gaps between data availability and requirements.

Distribution At Indofil, the endeavor is to make the right pack available at the right time to the customer. The Company has modified its distribution network to ensure a constant interaction between the sales force, the distributor and the ultimate customer. All the business processes in the company are online and are guided through an ERP system. This is done with the objective of reaching the Company's Products & Services to the customers in the shortest possible time. Indofil's chain of distribution starts with Selling Agents, C&F Agents and Distributors, who have their own well-maintained stock points. The well-knit distribution is spread throughout the vast geography of the country through more than 50,000 retail outlets. OBJECTIVES OF STUDY Basically, the objectives of the study can be divided into 2 categories i.e. primary objectives of the study and the secondary objectives of the study. If we try to observe the primary objectives of this research study, we can conclude the following as far as the objectives of this study is concerned. Primary Objectives of the study 1. To understand the lacunas in marketing Indofil M45, as a brand against the leading fungicide brands etc. 2. To figure out the acceptability level of Indofil M45, as a fungicide brand by the farmers of Coochbehar district in comparison to the existing brands available in the market. 3. To understand the distribution problems of Indofil M45, as a fungicide brand in Coochbehar district in comparison to other existing brand. 4. To understand the promotional discrepancies in the context of Indofil M45, as a fungicide brand in Coochbehar district agricultural belt, in comparison to other existing brands. These are some of the primary objectives what we are attempting to figure it out through this study. However, the list of primary objectives may not be enough, because as the research progresses we will definitely be in a position to derive more primary objectives in relation to the Indofil M45, as a fungicide brand in Coochbehar district agricultural belt. As far as the secondary objectives are concerned, we summarize some of them which are stated as below. Secondary Objectives of the study 1. To understand the impact of marketing of Indofil M45 in Coochbehar district agricultural belt. 2. To find out the reasons of acceptability level of stocking a new brand against the existing available fungicide brands by the fungicide distribution network in the region. 3. To understand the Sales Personnel-Distributor relationship in Coochbehar district agricultural belt.

4. To find out various techniques of tackling the on-field problems arisen in the process of distributing agrochemical products in Coochbehar district agricultural belt. These are some of the primary objectives what we are attempting to figure it out through this study. However, the list of primary objectives may not be enough, because as the research progresses we will definitely be in a position to derive more primary objectives in relation to the Indofil M45, as a fungicide brand in Coochbehar district agricultural belt. LIMITATIONS OF STUDY We already know that the research is an empirical study on the brand acceptability of the fungicide brand Indofil M45 from Indofil among the existing fungicide users in Coochbehar district agricultural belt. It is understood that any research study will be restricted in scope by certain inherent limitations that are participated by the choice of the research design, sampling procedure and respondent selection. This study also is no exception and has the following limitations. 1. Even though the survey was conducted among the sample of fungicide users, the research may not reflect the real opinion of the all the prospective consumers due to lack of more coverage and attitudinal difference in consumptions. 2. Because of time constraints, the sample size is restricted to around 200, which may not reflect the opinion of the population because the lesser number of representations may be affecting the conclusionary results. 3. Since the study was restricted to fungicide users of Coochbehar district agricultural belt and adjoining areas, majority of findings are applicable only to these areas and cannot be generalized for the entire country or even the country. 4. The respondents (samples) may behave or give opinions differently at times because of their psychological temperament. This will affect the survey because it may change according to situation henceforth definitive conclusions may not be expected out of the results. These are some of the tentative limitation which came forward while compiling the research proposal. However, more limitations if found may be included in the main project report. RESEARCH METHODOLOGY Meaning of research Research in common parlance refers to a search for knowledge. Once can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Some analysts define research as a systematized effort to gain new knowledge. Some people consider research as a movement, a movement from the known to the unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us, we wonder and our inquisitiveness makes us probe and attain full and fuller understanding of the 5

unknown. This inquisitiveness is the mother of all knowledge and the method, which man employs for obtaining the knowledge of whatever the unknown, can be termed as research. Research is an academic activity and as such the term should be used in a technical sense. According to some researchers research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. Many researchers define research as the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art. Research is, thus, an original contribution to the existing stock of knowledge making for its advancement. It is the pursuit of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and the formulation of a theory is also research. As such the term research refers to the systematic method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching certain conclusions either in the form of solutions(s) towards the concerned problem or in certain generalizations for some theoretical formulation. The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad groupings: To gain familiarity with a phenomenon or to achieve new insights into it (studies with this object in view are termed as exploratory or formulative research studies); To portray accurately the characteristics of a particular individual, situation or a group (studies with this object in view are known as descriptive research studies); To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are known as diagnostic research studies); To test a hypothesis of a causal relationship between variables (such studies are known as hypothesis-testing research studies).

Types of research The basic types of research are as follows: i. Descriptive vs. Analytical: Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quite often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. Most ex post facto research projects are used for descriptive studies in which the researcher seeks to measure such items as, for example, frequency of shopping, preferences of people, or similar data. Ex post facto studies also include attempts by researchers to discover causes even when they cannot control the variables. The methods of research utilized in 6

descriptive research are survey methods of all kinds, including comparative and co-relational methods. In analytical research, on the other hand, the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material. ii. Applied vs. Fundamental: Research can either be applied (or action) research or fundamental (to basic or pure) research. Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organization, whereas fundamental research is mainly concerned with generalizations and with the formulation of a theory. Gathering knowledge for knowledges sake is termed pure or basic research. Research concerning some natural phenomenon or relating to pure mathematics are examples of fundamental research. Similarly, research studies, concerning human behavior carried on with a view to make generalizations about human behavior, are also examples of fundamental research, but research aimed at certain conclusions (say, a solution) facing a concrete social or business problem is an example of applied research. Research to identify social, economic or political trends that may affect a particular institution or the copy research (research to find out whether certain communications will be read and understood) or the marketing research or evaluation research are examples of applied research. Thus, the central aim of applied research is to discover a solution for some pressing practical problem, whereas basic research is directed towards finding information that has a broad base of applications and thus, adds to the already existing organized body of scientific knowledge. Quantitative vs. Qualitative: Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with qualitative phenomenon, i.e., phenomena relating to or involving quality or kind. For instance, when we are interested in investigating the reasons for human behavior (i.e., why people think or do certain things), we quite often talk of Motivation Research, an important type of qualitative research. This type of research aims at discovering the underlying motives and desires, using in depth interviews for the purpose. Other techniques of such research are word association tests, sentence completion tests, story completion tests and similar other projective techniques. Attitude or opinion research i.e., research designed to find out how people feel or what they think about a particular subject or institution is also qualitative research. Qualitative research is especially important in the behavioral sciences where the aim is to discover the underlying motives of human behavior. Through such research we can analyze the various factors which motivate people to behave in a particular manner or which make people like or dislike a particular thing. It may be stated, however, that to apply qualitative research in practice is relatively a difficult job and therefore, while doing such research, one should seek guidance from experimental psychologists. Conceptual vs. Empirical: Conceptual research is that related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. On the other hand, empirical research relies on experience or observation alone, often without due regard for system and theory. It is data-based research, coming up with conclusions which are capable of being verified by observation or experiment. We can also call it as experimental type of research. In such a research it is necessary to get at facts firsthand, at their source, and actively to go about doing certain things to stimulate the production of desired 7

iii.

iv.

information. In such a research, the researcher must first provide himself with a working hypothesis or guess as to the probable results. He then works to get enough facts (data) to prove or disprove his hypothesis. He then sets up experimental designs which he thinks will manipulate the persons or the materials concerned so as to bring forth the desired information. Such research is thus characterized by the experimenters control over the variables under study and his deliberate manipulation of one of them to study its effects. Empirical research is appropriate when proof is sought that certain variables affect other variables in some way. Evidence gathered through experiments or empirical studies is today considered to be the most powerful support possible for a given hypothesis. v. Some Other Types of Research: All other types of research are variations of one or more of the above stated approaches, based on either the purpose of research, or the time required to accomplish research, on the environment in which research is done, or on the basis of some other similar factor. Form the point of view of time, we can think of research either as one-time research or longitudinal research. In the former case the research is confined to a single timeperiod, whereas in the latter case the research is carried on over several time-periods. Research can be field-setting research or laboratory research or simulation research, depending upon the environment in which it is to be carried out. Research can as well be understood as clinical or diagnostic research. Such research follows case-study methods or in-depth approaches to reach the basic causal relations. Such studies usually go deep into the causes of things or events that interest us, using very small samples and very deep probing data gathering devices. The research may be exploratory or it may be formalized. The objective of exploratory research is the development of hypotheses rather than their testing, whereas formalized research studies are those with substantial structure and with specific hypotheses to be tested. Historical research is that which utilizes historical sources like documents, remains, etc. to study events or ideas of the past, including the philosophy of persons and groups at any remote point of time. Research can also be classified as conclusion-oriented and decision-oriented. While doing conclusion oriented research, a researcher is free to pick up a problem, redesign the enquiry as he proceeds and is prepared to conceptualize as he wishes. Decision-oriented research is always for the need of a decision maker and the researcher in this case is not free to embark upon research according to his own inclination. Operations research is an example of decision oriented research since it is a scientific method of providing executive departments with a quantitative basis for decisions regarding operations under their control.

Research Methodology to be used in this study The research methodology to be used is an empirical study which is tentatively planned for a sample size of 200 or more (in accordance to the opportunities). The research area will basically be related to the agricultural farmers of Coochbehar district. The target respondent selection will basically be the direct purchasers and simultaneously the fungicide users. We are keeping targeted respondents to a new age farmers who are exposed to the media. The respondents will be randomly selected based on the convenience. Secondly, the respondents will also comprise the retailers and the stockiest who generally sell fungicides. The entire regional representation is being targeted. Initially, we are targeting 20 respondents spread 8

across the Coochbehar district. However, based on the time and physical convenience we can increase the number from 20 to more. Here also the respondents will be randomly selected based on convenience. As far the questionnaire is concerned, it will basically comprise tentatively around 15 set of questions which will be of close ended nature. A Likert scale will be used for the respondents for responding. Apart from this, the demographic variables will also be collected from the respondents for the purpose of analysis. As far as analysis is concerned statistical analysis like Regression analysis, T-Test, etc can be used to come to certain conclusions. Apart from this graphical method for presentation can be used. Moreover, tools like Virtue matrix, SWOT analysis is also being kept in contention for its application in the final project. FUTURE DIRECTIONS OF RESEARCH From this study many research directions can be obtained. From the study we will be able to find out the competitive scenario of the fungicide market in this region. This is because we will be trying to get the knowledge about the competitive brands (especially in the fungicide market) available in the North Bengal region with special reference to Coochbehar district agricultural belt. Furthermore, we can also get to know about the field based distribution systems applicable for the fungicide sales. This surely will enable us to proceed towards researching about the distribution systems in the future. Apart from this we will also be in a position to define the fungicide brand positioning based on this research study. This is because this study will definitely be a torch bearer for the researchers who intends to research in fungicide brand positioning in Coochbehar district agricultural belt. Sales person may also be benefited out of this research because it will definitely be helping them to develop strategies for customer targeting after they go through this study findings. These are the possible directions of research which will definitely enable the future researchers, academicians, sales professionals to use the findings as well as the procedures of conducting the study for their benefits wherever applicable. BIBLIOGRAPHY Crop Protection Handbook. (2005) vol. 91. Willoughby, Ohio: Meister Publishing Co. Nesheim, O.N. 2002. Toxicity of pesticides. UF / IFAS EDIS Document PI-13. Pesticide Toxicity Profile: Ethylenebis (dithiocarbamate) Pesticides by Frederick M. Fishel, University of Florida publication. Reigart, J.R. and J.R. Roberts. (1999) Recognition and management of pesticide poisonings, 5th ed. United States Environmental Protection Agency Publication EPA-735-R-98-003. Seyler, L.A., et.al. (1994) Extension toxicology network (EXTOXNET). Cornell University and Michigan State University. The Rise of Fungicides (2010), Andrea Klosterman Harris,

WEBLIOGRAPHY http://edis.ifas.ufl.edu/PI008. http://extoxnet.orst.edu/index.html. http://www.farmchemicalsinternational.com http://www.meistermedia.com/publications/ handbook.html

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