MARKETING STRATEGIES OF DIFFERENT LOCAL, DOMESTIC AND MULTINATIONAL BRANDS OF PESTICIDES IN NIZAMABAD DISTRICT OF TELANGANA.
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Date
2020
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PROFESSOR JAYASHANKAR TELANGANA STATE AGRICULTURAL UNIVERSITY
Abstract
In view of the fact that nearly 22-25 per cent of the potential food production is lost in
India (The Hindu, 2015) due to the damage caused by the insect pest, plant pathogens,
weeds, rodents, birds etc., the use of pesticides has become absolutely essential. Hence, the
pesticide industry in India has a vital role in the economy of the country. The Indian crop
protection industry is estimated to be USD 4.25 billion in FY14 and is expected to grow at
a CAGR of 12 per cent to reach USD 7.5 billion by FY19. The industry is dominated by
insecticides which contribute to 60 per cent of the overall demand, followed by fungicides,
herbicides and rodenticides/nematicides which account for 18 per cent, 16 per cent and 6
per cent of the demand respectively. Top 20 agro chemical companies share 80 per cent in
the Indian agro chemical market. The market share of large players depends primarily on
product portfolio and introduction of new molecules. The study has been taken up with the
following objectives. - To estimate the trends in pesticide consumption in maize and rice
crops in India, Telangana and Nizamabad district. - To assess the market share of
multinational brands, domestic and local brands of pesticides in study area. - To compare
four Ps of marketing of multinational companies, domestic players and local players in the
pesticide industry. - To assess the preference pattern of farmers and dealers towards
various pesticide brands. For the study, four mandals in Nizamabad district are selected
based on the cultivated area of paddy and maize. From each mandal five villages are
selected based on the cultivated area of paddy and maize. From each village six farmers are
selected randomly. From each mandal five pesticide dealers are selected randomly. Data
was also collected from one salesperson each from three top MNC’s, domestic companies
and local companies in the study area. Primary data is collected from farmers, dealers and
salesperson using separate questionnaires. Secondary data relating to usage of pesticides
and firms information was collected from Agriculture Commissionerate office, Hyderabad,
journals, company websites and other relevant reports. The data collected was analysed by
using percentages and other statistical tools like Garrett’s ranking technique, Compound
annual growth rate in order to draw valid conclusions. Compound annual growth rate of
pesticide consumption in India was 1.9 with level of significance at 1 per cent. That
implies positive trend in pesticide consumption in India and that was significant.
Percentage change in 2015 over 2001 was 24 per cent. Compound Annual Growth Rate of
pesticide consumption in Telangana was 2.9 with level of significance at 1 per cent. That
implies positive trend in pesticide consumption in Telangana and that was significant.
Percentage change in 2015 over 2001 was 18 per cent. MNC’s majorly focusing on crash
campaigns, demonstrations, trainings, paintings, banners, hoardings, literature and dealer’s
general meetings. Domestic companies promotional activities majorly focus on
demonstrations, trainings, exhibitions, posters, banners, crash campaigns, regional mela
participation and dealer’s general meetings. Local companies promotional activities are
majorly dealer oriented, they mainly focus on dealer’s general meetings. It can be noticed
that most of the multinational company products are applied on all crops. All the
companies are majorly focusing on paddy, maize, cotton, fruits and vegetables in the study
area. Most of domestic company products are majorly focusing on paddy and maize in the
study area, apart from this they are also focusing on fruits and vegetables. Among the
selected local companies, Nova agri tech has products suitable for specific crops, whereas
the other two companies products are suitable for all crops. From the table it can be noticed
that there is not very high variation in prices among the prices of multinational and
domestic companies. It can be noticed that the average usage of pesticide in liquid form is
more in paddy crop, where as in granules form it is more in cotton crop in the study area.
Farmers are not happy with the quality of products of local companies and they are mostly
satisfied with the products of multinational and domestic companies. Peer farmers and
sales personnel are an important sources of information for farmers. Credit is the most
influencing factor to purchase a particular brand of pesticide in case of farmers, as can be
noticed from the table 4.22 . Price, performance of the product are second and third most
influencing factors. On the whole, 90 per cent of dealers in the study area were dealing
with three product lines i.e., pesticides, fertilizers and seeds, 10 per cent dealers are dealing
with pesticides and seeds. The multinational companies and domestic companies compete
on the basis of their product strength, promotional activities and giving trainings to the
dealers, where as the local companies compete on the basis of promotional activities and
maintaining good relation with the dealers given them good margins. Though these
activities are also taken up by domestic companies and multinational companies their focus
is not majorly on these activities.
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D10,491