3.1New Final Project

1

1. Introduction

1.1 Introduction to the Vegetable seed industry Our country has achieved self-sufficiency and a good degree of

stability of food production. However, self-sufficiency in the true sense can

be achieved only when each individual in the country is assured of balanced

diet. This created an urgent need for providing health security to our

population by supplying nutrition through balanced diet. Vegetables form the

most important component of a balanced diet. India is the world's second

largest producer of vegetables next only to China. Varied agro-climatic

conditions in India make it possible to grow a wide variety of vegetable

crops all the year round in one part of the country or another. India can

claim to grow the largest number of vegetable crops compared to any other

country of the world and as many as 61 annual and 4 perennial vegetable

crops are commercially cultivated. These include solanaceous,

cucurbitaceous, leguminous, cruciferous (Cole crops), root crops and leafy

vegetables. Major vegetable crops grown in the country are tomato, onion,

brinjal, cabbage, cauliflower, okra and peas.

India is the second largest producer of vegetables in the world and

accounts for about 15 per cent of the world’s production of vegetables. The

current production level is over 90 MT and the total area under vegetable

cultivation is around 6.2 million hectares which is about 3 per cent of the

total area under cultivation in the country. Vegetable seeds account for

about 18 per cent of the total production of certified seeds. Potato, tomato,

onion, cabbage and cauliflower account for around 60 per cent of the total

vegetable production in the country. Vegetables including root and tuber

crops occupy an important place in diversification of agriculture and have

played pivotal role in food and nutritional security of ever growing population

of our country.

2

The demand of vegetables has been increasing fast in the urban

areas with a gradual rise in standard of living coupled with development of

communication and transport facilities. In terms of organization, the seed

industry consists of a large public sector and a growing private sector. The

public sector consists of the National Seed Corporation, the State Farm

Corporation of India and 13 State Seed Corporations. These corporations

multiply and market varieties bred by the public sector institutions, i.e., the

research institutes financed by the Indian Council for Agricultural Research

(ICAR) and the State Agricultural Universities. Although private seed

companies such as Poacha and Sutton have been established since the

pre-independence era, accelerated growth of the private sector began only

after the introduction of the new seed policy in 1988 which ushered in a

liberal business climate. Currently there are over 200 private seed

companies, together with a few multinational companies, and these tend to

focus on low volume, high value crops with the principal effort being placed

on creating hybrids for oilseeds, maize, cotton and vegetable crops.

The private sector accounts for 70 per cent of the market in terms of

market turnover whereas the public sector has the greater share in terms of

volume sales. India’s rupees five billion seed industry - the backbone of the

massive multi-billion fruit and vegetable industry is undergoing a silent

transition to branded varieties, thanks to the fast changing food habits and

retail food industry. And at the forefront to take the advantage of the vast

potential of this untapped seed segment are the multi national corporations

(MNCs). Little wonder, therefore, the MNCs are busy drawing the battle

lines to take advantage of the untapped potential of the rupees five billion

Indian seeds industry. In the forefront are MNCs Syngenta, Indo American

Seeds, Monsanto India, Pioneer Seeds. The latest entrant is the USA’s

Seminis, claimed to be one of the leader in vegetables and fruit seeds

brand.

3

1.2 Introduction to the Sungro Seeds Ltd.

The company started its business in vegetable crops in 1973 with

having 10 products in its portfolio and virtue of its continuous R&D efforts it

has developed 38 hybrids and 26 superior open pollinated varieties in all

major high value vegetable crops like Okra, Bottle gourd, Bitter gourd,

Cabbage, Cauliflower, Egg Plant, Ridge gourd, Sponge gourd, Tomato, Hot

pepper etc. This was mainly possible with the efficient and learned

Scientists team work. The SUNGRO has become a member of Maharashtra

Hybrid Seeds Company (Mahyco), although, SUNGRO will continue to

maintain its own identity. Now, it is greatly benefited by the strong technical

backing with the latest technology, supported with modern facilities of

MAHYCO.

The company has research, trial grounds and production centres in

all the important agro-climatic zones of the country. Company carries out

very extensive testing of cultivars for their different trades. Sungro's strong

R&D group has very successfully utilized the tools of breeding by evolving

new and improved varieties and hybrids. SUNGRO offers to the trade about

25 kinds and more than hundred varieties and hybrids of vegetable. The

company has plans to improve its existing lines, and to breed new hybrids in

the crops like cauliflower, cabbage, carrot, tomato, Eggplant, radish, ridge

gourd, bottle gourd, bitter gourd, chilli etc.

The company has R&D facilities in different agroclimatic zones of

country as per specific crops like Kullu (H.P.) for cole crops, Delhi for

tropical vegetables and Ranebennur (Karnataka) for Solanaceous, cucurbits

and okra etc. The Sungro Seeds Ltd. has sizable market share in cabbage,

cauliflower, radish, tomato, Eggplant, cucumber etc. The company has

developed hybrids in cauliflower, radish and cabbage. Now the company is

focusing to develop hybrids in major high value vegetable having more

value added traits e.g. multiple disease resistance, heat/cold, drought

resistance, better self life / transportability and nutritional value etc. Sungro's

products are doing well in many European and Asian countries and

exporting seeds to them.

4

Sungro Seeds Research Limited – A Profile

Sungro Seeds Research Ltd. believes in continuous improvement. For

this Sungro has created an efficient team of scientists actively engaged in

research work for the improvement of crops handled by it. All the hybrids

released by the institution are performing excellently throughout the zoned

identified for release and are being exported to different countries. List of

number of vegetable wise released hybrids and hybrids in pipeline is shown

below in table 1.2.1.

Table 1.2.1 Hybrids release status of Sungro Seeds Research Ltd.

Crop Hybrids

Released In Pipeline

Cauliflower 15 8

Radish 5 3

Carrot 2 4

Cabbage 6 4

Tomato 5 3

Brinjal 17 9

Chilli 2 0

Ridge gourd 4 1

Sponge gourd 3 0

Bitter gourd 4 5

Bottle gourd 5 0

Kakri 2 1

Cucumber 1 1

Okra 2 2

Watermelon - 1

Muskmelon - 1

Pumpkin 1 1

Total 74 44

5

1.3 Introduction to the study area

The study area was Bhagalpur district of state Bihar. Bhagalpur is

one of the oldest districts of Bihar located in the Southern region. It is

situated in the plains of Ganga basin at height of 141 feet above sea level. It

covers an area of 2569.50 sq. km. Other details about the district Bhagalpur

are given in tables 1.3.1, 1.3.2 and 1.3.3.

The district boundary is as follows:

Table 1.3.1 Boundaries of district Bhagalpur

North : Khagaria, Medhepura, Purnea and Katihar districts.

South : Banka District

East : Sahebganj and Godda districts. (Jharkhand state)

West : Munger Districts

Table 1.3.2 Tehsils of Bhagalpur

Tehsils of Bhagalpur

Jagdishpur Sabour Goradih Gopalpur

Nathnagar Sanhoula Navgachia Bihpur

Sultanganj Kahalgaon Kharik Ismailpur

Shahkund Pirpaiti Narayanpur Rangra Chowk

6

Area 2569 Sq. km

Population (2001) 24,30,331

Males 12,94,192

Females 11,36,139

Rural Population 19,92,872 (82%)

Urban Population 4,37,459 (18%)

No. of S.C 1,88,234

No. of S.T 44,884

Population density 946 Per Sq. km

Sex Ratio 878

Literacy Rate 50.28%

No. of Tehsils 16

No. of Villages 1536

Average rainfall 1166.2 mm.

Temperature Max.: 44.5 0C ; Min.: 8 0C

Table 1.3.3 Figures about Bhagalpur district

7

1.4 Importance of the study

The Indian seed industry is currently valued around Rs 3750

crores and is proposed to be around 5000 crores by 2008. The contribution

of private research in terms of value is steadily increasing. When the Indian

seed industry is compared with the global scenario, the estimated turnover

($ 900 million) is less than 2 per cent of the global seed business of US $ 25

billion. With one sixth of the world population and the second largest

cultivable land, the Indian seed industry presents a poor picture. Vegetable

seeds account for about 18 per cent of the total production of certified

seeds. Potato, tomato, onion, cabbage and cauliflower account for around

60% of the total vegetable production in the country. Vegetables including

root and tuber crops occupy an important place in diversification of

agriculture and have played pivotal role in food and nutritional security of

ever growing population.

Brand loyalty provides predictability and security of demand for the

firm and also can translate into a willingness to pay higher prices. The brand

must always be moving forward- but moving forward in the right direction.

As a company’s major enduring asset, a brand needs to be carefully

managed so that its value does not depreciate. Brand that fails to do so find

that their market leadership dwindles or even disappears, therefore need of

brand strengthening and brand repositioning arises.

Keeping this in mind, the present study was done with the following

objectives:-

To study the potential of vegetable seed market and current status of

major vegetable seed companies in Bhagalpur area

To know the perception of farmers, dealers, retailers and distributors

about Sungro brand and other major competitors

To study the marketing activities adopted by different companies in

Bhagalpur area

To undertake SWOT analysis of Sungro seed

To frame out suitable strategy for strengthening and repositioning the

Sungro brand in Bhagalpur area

8

2. Review of Literature

Brand image is the perceptions and beliefs held by consumers, as

reflected in the associations held in consumer’s memory. Brands can signal

a certain level of quality so that satisfied buyers can easily choose the

product again and again. As a company’s major enduring asset, a brand

needs to be carefully managed so that its value does not depreciate. Brand

that fails to do so find that their market leadership dwindles or even

disappears, therefore need of brand strengthening and brand repositioning

arises, (Mukherjee, 2008).

According to Reddy and Shivkumar (2005), market potential is the

maximum demand response possible for a given product or service over a

specified period of time under well defined competitive and environmental

conditions.

Calculation of market potential needs estimated area under that

product, which could be done through regression analysis. By fitting linear

and compound growth rates, one can select statistically best fit for the

study. For example, Linear regression equation of following form can be

found best fit on the value of most positive coefficient of determination : A=

a + bx ; where A= area under product in hectare, b= linear growth rate, x=

years. For any seed, estimated area in ha for successive years can be

multiplied with their corresponding seed rate to estimate market potential.

Market Potential = Area under individual Vegetable in ha X Average Seed

rate applied there in Kg/ha as reported by Paliwal (2001).

Banumathy and Hemameena (2006) are of the view that brand

preferences among the consumers may be related to different factors like

personal attributes age, educational qualifications, occupational status,

monthly income etc. As expressed by Ganguli (2008), instead of creating an

artificial need or demand, the marketers are, in fact, now concentrating on

creation of brands that fit into customer’s real lives.

9

According to Kamatam (2003), a lot of factors are considered by

farmers while purchasing vegetable seed i.e. quality, price, dealers

suggestion, ad-campaign, brand, own experience and availability. Similarly

several factors influencing buying behavior like demonstration, quality,

pricing, literature, company’s representatives, primary group (neighbours &

co-farmers), cultural, social, personal and psychological factors are also

important. Jhala (2005)

Thus, a company has to work upon continuous improvement of a

number of characteristics if they want to strengthen their brand. So, first the

company has to decide what type of image they want to create in

consumer’s mind, then only they can go for positioning. Mukherjee (2008) is

of the view that positioning means creating a space in the customer’s mind.

Marketing is a continuous process of value creation, value communication,

value delivery and brand positioning. Brand positioning helps marketer in

building the marketing mix for each segment.

10

3. Project Methodology

The project methodology used for studying the repositioning and

strengthening of Sungro Seeds Ltd. in five tehsils of Bhagalpur district of

Bihar is presented under following heads:-

3.1 Data source: Both primary and secondary data were collected for the

study.

3.1.1 Primary Data - The primary data sources were the farmers, dealers,

distributors and retailers in the selected 5 tehsils of Bhagalpur district of

Bihar. The methodology for the collection of primary data involved interview

schedules through separate pre-structured questionnaires for farmers,

distributors and dealers/retailers containing both open-ended as well as

close-ended questions (Appendix I to IV).

3.1.2 Secondary Data - The secondary data sources included the district

office of department of agriculture, department of statistics and different

magazines and journals related with branding and reports available with the

universities.

3.2. Study approach:

For the present study descriptive study approach was used.

3.2.1 Sample units and size:

The study was conducted on three type of sample units i.e., farmers,

distributors and dealers/retailers. The size of each sample unit is given in

the table 3.2.1.

Table 3.2.1 Sample units and size

Sample Size

Farmers 250

Distributors 11

Dealers / Retailers 39

Total 300

11

3.2.2 Sampling procedure: -

For the selection of farmers, multistage sampling was done. First

of all enquiries were made from distributors and ministry of agriculture about

maximum and minimum vegetable producing tehsils for selecting three

tehsils from high and two from low vegetable producing tehsils. Then, from

each selected tehsils, five villages were selected on the basis of production

and area under vegetable i.e., three villages from high and two from low

vegetable producing area under vegetables. There after, from each village

10 farmers were selected i.e., seven vegetable growers and three non-

vegetable growers with a total of 250 farmers. All distributors of different

companies operating in the Bhagalpur area were selected. For selecting

dealers and retailers, random sampling was done among the companies

operating in the market.

Information was gathered through separate pre-structured

questionnaire for vegetable growers, non-growers, dealers/ retailers and

distributors consisting of both closed-ended questions and open-ended

questions. Analyses of data were done through tabular analysis and

suitable statistical techniques like regression analysis and principal

component analysis.

12

4. Findings and Analysis

After collection of data, tabulation was done and then using

appropriate statistical techniques like Regression analysis and Principal

Component analysis, results were explained. The objective wise results and

findings in detail are presented below:

4.1: To study the market potential of vegetable seed market

and current status of major vegetable seed companies in

Bhagalpur area

The objective was studied in two parts i.e. in first part study was made

to determine the market potential of vegetable seeds in Bhagalpur district

and in second part current status of major vegetable seed companies was

studied.

4.1.1 Market potential of vegetable seeds in Bhagalpur

Market potential is the limit approached by market demand as industry

marketing expenditures approach infinity for a given marketing environment.

In other words, it is the maximum amount of sales that might be available to

all the firms in a seed industry during a given period, under a given level of

seed industry marketing effort and environmental conditions.

A common way to estimate market potential is as under:

Market Potential = Potential number of buyers X Average quantity

purchased by a buyer X The price

For any hybrid vegetable seed company like Sungro seeds ltd., market

potential for individual vegetable in quantity terms can be calculated by:

Market Potential =

Potential numbers of buyers X Average quantity purchased by a buyer

13

From District Horticulture Officer and District department of Agriculture,

Bhagalpur, data were collected regarding area under different vegetables in

Bhagalpur from 2002-03 to 2006-07 and presented in table 4.1.1.

Table 4.1.1: Year wise area in ha under different vegetables in

Bhagalpur district

Bhagalpur

Area under vegetables in hectare

Vegetables 2002-03 2003-04 2004-05 2005-06 2006-07

Cabbage 967 983 1007 998 1013

Cauliflower 1211 1254 1229 1312 1367

Okra 1734 1787 1942 1956 1968

Tomato 1198 1267 1356 1377 1401

Chilli 622 687 709 734 769

Brinjal 1433 1412 1454 1513 1564

Onion 1298 1311 1356 1388 1397

Others 3212 3189 3243 3267 3284

Total 11675 11890 12296 12545 12763

Source: Agriculture Department, Government of Bihar

Efforts have also been made for calculating the market potential of

vegetables in Bhagalpur for next successive years. For this, using trend

analysis area under individual vegetable for next successive years was

estimated and presented as follows:

14

4.1.1.1 Cabbage

When area under cabbage was plotted on line graph for drawing trend

lines, linear regression was found best fit (figure 4.1.1.1). Area under

Cabbage was estimated using regression line

A = 10.7 x + 961.5 (Where A is area and x is the year)

Figure 4.1.1.1 Line graph of Area under cabbage

967

983

1007

998

1013

y = 10.7x + 961.5

R2 = 0.8206

940

950

960

970

980

990

1000

1010

1020

2002-03 2003-04 2004-05 2005-06 2006-07

Years

Are

a in

ha

Series1 Trendline

The area under cabbage crop was estimated as 1025 ha for the year

2007-08, 1030 ha for the year 2008-09 and 1047 ha for the year 2009-10.

4.1.1.2 Cauliflower

Area under cauliflower was plotted on graph for the year 2002-03,

2003-04, 2004-05, 2005-06 and 2006-07 and depicted as figure 4.1.1.2. To

get the trend line, best fit method was used. Area under Cabbage was

estimated using regression line

A = 37 x + 1163.6 (Where A is area and x is the year)

15

4.1.1.2 Line graph of Area under cauliflower

1211

12541229

1312

1367

y = 37x + 1163.6

R2 = 0.8304

1100

1150

1200

1250

1300

1350

1400

2002-03 2003-04 2004-05 2005-06 2006-07

Years

Are

a i

n h

a

Series1 Trendline

Using trend line, the area under cauliflower was estimated for the year

2007-08, 2008-09 and 2009-10 as 1385 ha, 1422 ha and 1459 ha

respectively.

4.1.1.3 Okra

When area under Okra was plotted on line graph for drawing trend

lines, linear regression was found best fit (figure 4.1.1.3). Area under okra

was estimated using regression line


4.1.1.3 Line graph of Area under Okra

1734

1787

1942 1956 1968

y = 63.7x + 1686.3

R2 = 0.8579

1550

1600

1650

1700

1750

1800

1850

1900

1950

2000

2050

2002-03 2003-04 2004-05 2005-06 2006-07

Years

Are

a in

ha

Series1 Trendline

The area under Okra crop was estimated as 2068 ha for the year

2007-08, 2132 ha for the year 2008-09 and 2196 ha for the year 2009-10.

16

4.1.1.4 Tomato

Area under tomato was plotted on graph for the year 2002-03, 2003-

04, 2004-05, 2005-06 and 2006-07. To get the trend line, best fit method

was used (figure 4.1.1.4). Area under tomato was estimated using

regression line

A = 51.6 x + 1165 (Where A is area and x is the year)

4.1.1.4 Line graph of Area under Tomato

1198

1267

13561377

1401

y = 51.6x + 1165

R2 = 0.9245

1050

1100

1150

1200

1250

1300

1350

1400

1450

2002-03 2003-04 2004-05 2005-06 2006-07

Years

Are

a u

nd

er

ha

Using trend line, the area under tomato was estimated for the year

2007-08, 2008-09 and 2009-10 as 1474 ha, 1547 ha and 1577 ha

respectively.

4.1.1.5 Chilli

When area under Chilli was plotted on line graph for drawing trend

lines, linear regression was found best fit (figure 4.1.1.5). Area under Chilli

was estimated using regression line


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4.1.1.5 Line graph of Area under Chilli

622687 709 734

769

y = 34.1x + 601.9

R2 = 0.956

0

100

200

300

400

500

600

700

800

900

2002-03 2003-04 2004-05 2005-06 2006-07

Years

Are

a i

n h

a

Series1 Trendline

The area under Chilli crop was estimated as 806 ha for the year 2007-

08, 840 ha for the year 2008-09 and 874.7 ha for the year 2009-10.

4.1.1.6 Brinjal

Area under brinjal was plotted on graph for the year 2002-03, 2003-04,

2004-05, 2005-06 and 2006-07. To get the trend line, best fit method was

used (figure 4.1.1.6). Area under brinjal was estimated using regression line


4.1.1.6 Line graph of Area under Brinjal

14331412

1454

1513

1564

y = 36.3x + 1366.3

R2 = 0.848

1300

1350

1400

1450

1500

1550

1600

2002-03 2003-04 2004-05 2005-06 2006-07

Years

Area

in h

a

Series1 Trendline

Using trend line, the area under brinjal was estimated for the year

2007-08, 2008-09 and 2009-10 as 1584 ha, 1620 ha and 1656 ha

respectively.

18

4.1.1.7 Estimated area under different vegetables:

With the help of linear regression, estimated area under major

vegetables for year 2007-08, 2008-09 and 2009-10 (table 4.1.2):

Table 4.1.2 Estimated area in hectares under different vegetables in

Bhagalpur

Vegetables Estimated area under vegetables in hectare

2007-08 2008-09 2009-10

Cabbage 1025 1030 1047

Cauliflower 1385 1422 1459

Okra 2068 2132 2196

Tomato 1474 1547 1577

Chilli 806 840 874.7

Brinjal 1584 1620 1656

Onion 1432 1460 1487

Others 3305 3328 3350

Total 13079 13379 13646.7

4.1.1.8 Comparative growth in area under different vegetables

Data regarding area under vegetables in 2002-03 and estimated for

the year 2009-10 were compared and presented as bar diagram in figure

4.1.1.7.

4.1.1.7 Bar graph of Area under vegetables comparison

0

500

1000

1500

2000

2500

3000

3500

2002-03 967 1211 1734 1198 622 1433 3212

2009-10 1047 1459 2196 1577 874.7 1656 3350

%age growth 8.27 20.47 26.64 31.63 40.62 15.56 4.23

Cabbage Cauliflower Okra Tomato Chilli Brinjal Others

From the figure, it can be inferred that maximum percentage growth

would be in Chilli followed by Tomato, Okra, Cauliflower and so on.

19

4.1.1.9 Market potential for different vegetables in the studied area:

For private vegetable seed player, Market potential on volume basis

can be calculated by changing the form of the formula given earlier i.e.

Market Potential = Area under individual Vegetable in ha

X

Average Seed rate applied there in Kg/ha

By using this formula, market potential for different vegetables were

calculated for year 2007-08 to 2009-10 and results are shown in table 4.1.3.

Table 4.1.3 Calculation of Market Potential

Bhagalpur

Year 2007-08 Year 2008-09 Year 2009-10

Vegetables

Area

in ha

(1)

Seed

rate

in

Kg/ha

(2)

Market

Potential

in Kg

(1X2)

Area

in ha

(1)

Seed

rate

in

Kg/ha

(2)

Market

Potential

in Kg

(1X2)

Area

in ha

(1)

Seed

rate

in

Kg/ha

(2)

Market

Potential

in Kg

(1X2)

Cabbage 1025 0.3 307.5 1030 0.3 309 1047 0.3 314.1

Cauliflower 1385 0.4 554 1422 0.4 568.8 1459 0.4 583.6

Okra 2068 4.5 9306 2132 4.5 9594 2196 4.5 9882

Tomato 1474 0.12 176.8 1547 0.12 185.6 1577 0.12 189.2

Chilli 806 0.25 201.5 840 0.25 210 874.7 0.25 218.6

Brinjal 1584 0.25 396 1620 0.25 405 1656 0.25 414

Onion 1432 ……. ……. 1460 ……. ……. 1487 ……. …….

Others 3305 ……. ……. 3328 ……. ……. 3350 ……. …….

Total 13079 ……. ……. 13379 ……. ……. 13646.7 ……. …….

20

4.1.2 Current status of major vegetable seed companies in

Bhagalpur

For determining current status of vegetable seed companies in

Bhagalpur, sales-volume data of year 2007 for all the vegetables were

collected from the distributors. It was found that during the study period 11

vegetable seeds companies were operating in Bhagalpur.

4.1.2.1 Status of different companies in Cabbage seed:

In cabbage, 9 companies were offering hybrids in Bhagalpur. Sale-

volume data of all the 9 companies are presented in table 4.1.2.1.

Table 4.1.2.1 Sales- volume of Cabbage

Cabbage

Companies Sales in 2007(in Kg)

Seminis 80

Tokita 60

Sungro 50

Century 25

Nunhems 20

Nath 20

Namdhari 15

Syngenta 10

Mahyco 5

Total 285

Percent market share of all the 9 companies in cabbage seed is

depicted as pie chart in figure 4.1.2.1.

4.1.2.1 Pie chart showing Market Share in Cabbage

Market Share in Cabbage

Seminis

27%

Tokita

21%Sungro

18%

Century

9%

Nunhems

7%

Nath

7%

Namdhari

5%

Syngenta

4%Mahyco

2%

21

From pie chart it was inferred that in cabbage, Seminis was the

market leader (27%) having popular hybrid No. 401 in the basket. Tokita

was on second rank (21%) with noticeable hybrids like Delhi boll followed by

Sungro (18%) with S-92 and Blue diamond hybrids.

4.1.2.2 Status of different companies in Cauliflower seed:

Sales-volume data of Cauliflower seed by different companies are

presented in table 4.1.2.2.

Table 4.1.2.2 Sales- volume of Cauliflower

Cauliflower


Seminis 50

Sungro 25

Nunhems 20

Namdhari 15

Century 6

Tokita 5

Nath 2

Syngenta 2

Total 125

Percent market share of all the 8 companies in cauliflower seed is


4.1.2.2 Pie chart showing Market Share in Cauliflower

Market Share in Cauliflower

Seminis

39%

Sungro

20%

Nunhems

16%

Namdhari

12%

Nath

2%

Tokita

4%Century

5%

Syngenta

2%

From figure 4.1.2.2, it was inferred that in cauliflower, during the study

period Seminis was the market leader (39%) having popular hybrid Sweta in

their basket. Sungro was on second rank (20%) with noticeable hybrids like

No. 159 and No. 1385 followed by Nunhems (16%)with Tushar and Sarita

hybrids.

22

4.1.2.3 Status of different companies in Bitter gourd seed:

In bitter gourd, eight companies were offering cabbage hybrids in

Bhagalpur. Sales volume data in 2007 from all 8 companies are presented

in table 4.1.2.3.

Table 4.1.2.3 Sales- volume of Bitter gourd

Bitter gourd


Sungro 100

Nunhems 100

Century 80

Seminis 50

Nodai 50

Namdhari 25

Nath 20

Mahyco 10

Total 435

Percent market share of all the 8 companies in Bitter gourd seed is


4.1.2.3 Pie chart showing Market Share in Bitter gourd

Market Share in Bitter gourd

Sungro

24%

Nunhems

23%

Century

18%

Seminis

11%

Nodai

11%

Namdhari

6%

Nath

5%

Mahyco

2%

From figure 4.1.2.3, it was inferred that in Bitter gourd, Sungro was

the market leader (24%) having popular hybrid Vivek in their basket.

Nunhems was on second rank (23%) with noticeable hybrids like Chaman

followed by Century (18%) with Lakshya hybrid.

23

4.1.2.4 Status of different companies in Bottle gourd seed:

Sales-volume data of Bottle gourd seed by different companies are


Table 4.1.2.4 Sales- volume of Bottle gourd

Bottle gourd


Sungro 120

Century 110

Mahyco 100

Seminis 60

Namdhari 50

Nath 25

Nunhems 20

Nodai 15

Total 500

Percent market share of different companies in Bottle gourd seed is


4.1.2.4 Pie chart showing Market Share in Bottle gourd

Market Share in Bottle gourd

Sungro

24%

Century

22%Mahyco

20%

Seminis

12%

Namdhari

10%

Nath

5%

Nunhems

4%Nodai

3%

From figure 4.1.2.4, it was inferred that in Bottle gourd, Sungro

(24%) was the market leader having popular hybrids Pratima & Swati in

their basket. Century was on second rank (22%) with noticeable hybrids like

CPS -10 followed by Mahyco (20%) with Warad hybrid.

24

4.1.2.5 Status of different companies in Sponge gourd seed:

In Sponge gourd, 6 companies were offering hybrids in Bhagalpur.

Sale-volume data of all the 6 companies are presented in table

4.1.2.5.

Table 4.1.2.5 Sales- volume of Sponge gourd

Sponge gourd


Century 250

Sungro 150

Seminis 100

Nath 50

Namdhari 40

Mahyco 10

Total 600

Percent market share of different companies in Sponge gourd seed is


4.1.2.5 Pie chart showing Market Share in Sponge gourd

Market Share in Sponge gourd

Century

41%

Sungro

25%

Seminis

17%

Nath

8%

Namdhari

7%

Mahyco

2%

From figure 4.1.2.5, it was inferred that in Sponge gourd, Century was

the market leader (41%) having popular White seeded hybrid in their

basket. Sungro was on second rank (25%) with noticeable hybrid like Gourd

Sonali followed by Seminis (17%) with Java hybrid.

25

4.1.2.6 Status of different companies in Okra seed:

Sales-volume data of Okra seed by different companies are presented

in table 4.1.2.6.

Table 4.1.2.6 Sales- volume of okra

Okra


Syngenta 800

Sungro 400

Seminis 350

Nunhems 200

Century 100

Nath 40

Namdhari 25

Ankur 20

Tokita 15

Mahyco 5

Total 1955

Percent market share of different companies in okra seed is depicted

as pie chart in figure 4.1.2.6.

4.1.2.6 Pie chart showing Market Share in Okra

Market Share in Okra

Syngenta

42%

Sungro

20%

Seminis

18%

Namdhari

1%Tokita

1%

Mahyco

0%

Nunhems

10%

Century

5%

Nath

2%

Ankur

1%

From figure 4.1.2.6, it was inferred that in Okra,

Syngenta was the market leader (42%) having popular hybrid OH 016 in

their basket. Sungro was on second rank (20%) with noticeable hybrids like

No.7777 & No. 405 followed by Seminis (18%) with Najuka hybrid.

26

4.1.2.7 Status of different companies in Tomato seed:

In Tomato, all companies were offering hybrids in Bhagalpur. Sale-

volume data of all the companies are presented in table 4.1.2.7.

Table 4.1.2.7 Sales- volume of Tomato

Tomato


Sungro 25

Seminis 20

Nunhems 17

Mahyco 15

Ankur 12

Syngenta 10

Namdhari 8

Nath 5

Tokita 3

Century 3

Nodai 2

Total 120

Percent market share of different companies in tomato seed is depicted


4.1.2.7 Pie chart showing Market Share in Tomato

Market Share in Tomato

Sungro

20%

Seminis

16%

Nunhems

14%

Mahyco

13%

Ankur

10%

Syngenta

8%

Namdhari

7%

Nath

4%

Tokita

3%Century

3%Nodai

2%

From figure 4.1.2.7, it was inferred that in Tomato, Sungro was

market leader (20%) having popular hybrids No. 525 & No. 3232 in their

basket. Seminis is on second rank (16%) with noticeable hybrid Aruna

followed by Nunhems (14%) with Raja & Dev hybrid.

27

4.1.2.8 Status of different companies in Cucumber seed:

Sales-volume data of Cucumber seed by different companies are


Table 4.1.2.8 Sales- volume of Cucumber

Cucumber


Seminis 40

Nunhems 30

Sungro 10

Namdhari 9

Nath 8

Nodai 6

Syngenta 4

Total 107

Percent market share of different companies in cucumber seed is


4.1.2.8 Pie chart showing Market Share in Cucumber

Market share in Cucumber

Seminis

38%

Nunhems

28%

Sungro

9%

Namdhari

8%

Nath

7%

Nodai

6%

Syngenta

4%

From figure 4.1.2.8, it was inferred that in Cucumber, Seminis was

the market leader (38%) having popular hybrid Malini in their basket.

Nunhems was on second rank (28%) with noticeable hybrids like Rani &

Noori followed by Sungro (9%) with No. 243 hybrid.

28

4.1.2.9 Status of different companies in Chilli seed:

In Chilli, 9 companies were offering hybrids in Bhagalpur. Sale-

volume data of all 9 companies are presented in table 4.1.2.9.

Table 4.1.2.9 Sales- volume of Chilli

Chilli


Seminis 40

Nunhems 25

Syngenta 20

Namdhari 15

Nath 10

Mahyco 8

Century 5

Sungro 4

Tokita 4

Total 131

Percent market share of different companies in chilli seed is depicted


4.1.2.9 Pie chart showing Market Share in Chilli

Market share in Chilli

Seminis

31%

Nunhems

19%Syngenta

15%

Namdhari

11%

Tokita

3%

Nath

8%

Mahyco

6%

Century

4%

Sungro

3%

In Chilli, Seminis was the market leader (31%) having popular hybrid

Gunturhope in their basket. Nunhems was on second rank (19%) with

noticeable hybrid Soldier followed by Syngenta with Agnirekha hybrid.

Sungro (3%) ranked last while estimated maximum percentage growth in

area is maximum in Chilli.

29

4.1.2.10 Status of different companies in Brinjal seed:

Sales-volume data of brinjal seed by different companies are presented

in table 4.1.2.10.

Table 4.1.2.10 Sales- volume of Brinjal

Brinjal


Sungro 150

Century 50

Nunhems 35

Seminis 25

Nath 15

Namdhari 10

Mahyco 10

Tokita 5

Total 300

Percent market share of different companies in brinjal seed is


4.1.2.10 Pie chart showing Market Share in Brinjal

Market share in Brinjal

Sungro

50%

Century

17%

Nunhems

12%

Seminis

8%

Nath

5%

Tokita

2%

Mahyco

3%Namdhari

3%

From figure 4.1.2.10, it was inferred that in Brinjal, Sungro was the

market leader (50%) having popular hybrids like PPL 74, Navkiran, PK 123

& No. 10 in their basket. Century was on second rank (17%) with noticeable

hybrid Greenlong followed by Nunhems (12%) with BE 706 hybrid.

30

4.1.2.11 Status of different companies in Bhagalpur district:

Sales-volume data of all the vegetable seed companies are presented in

table 4.1.2.11.

Table 4.1.2.11 Overall Sales- volume

Overall Market Share Companies Sales in 2007(in Kg)

Sungro 1149

Seminis 915

Syngenta 921

Century 729

Nunhems 542

Namdhari 255

Nath 245

Mahyco 208

Tokita 117

Nodai 93

Ankur 37

Total 5211

Percent market share of different companies in Bhagalpur district is


4.1.2.11 Pie chart showing Overall Market Share

Overall market share

Sungro

21%

Seminis

18%

Syngenta

18%

Century

14%

Nunhems

10%

Namdhari

5%

Nath

5%

Mahyco

4%

Tokita

2%

Nodai

2%Ankur

1%

From figure 4.1.2.11, it was inferred that Sungro emerged as market

leader in Bhagalpur area having overall market share of 21% followed by

major competitors Seminis (18%), Syngenta (18%), Century (14%),

Nunhems (10%) and so on.

On comparison of the percentage growth of area under vegetable, it

was found that maximum percentage growth is in Chilli where Sungro

ranked last. But in tomato where next maximum percentage growth is

predicted, Sungro ranked first. Okra and cauliflower, Sungro was at second

rank already. So, Sungro should target Chilli to capture future market.

31

4.2: To know the perception of farmers, dealers, retailers

and distributors about Sungro brand and other competitors

Brand image is the perception and belief held by consumers, as

reflected in the associations held in consumer’s memory. Thus, for

determining brand image, one has to know perception about a list of factors

in vegetable seed. This study was done in two parts i.e. in first part attempt

was made to identify key factors responsible for brand image and in second

part perception of respondents were studied about identified key factors.

4.2.1 Factor analysis to identify key factors responsible for brand

image:

To determine perception about any brand as a whole is quite difficult

because brand image depends on many factors. So, factor analysis was

used to understand the underlying motives of consumers who buy a product

category or a brand i.e. to find out the key factors responsible for purchase

of a brand. So, for more accuracy, principal component analysis was used

to identify key factors responsible for purchase of vegetable seeds.

The process followed two distinct steps:

1. Extraction : How many factors should be taken from the data? Generally

two criterions are used for extraction. First is based on the Eigen value of all

possible factors. Usually, factors with Eigen values of one or higher are

extracted in this stage. Another criterion is to maximize the cumulative

variance in the extracted factors, i.e. 70 per cent or more may be used as a

cutoff.

2. Rotation: Rotation is done using one of the orthogonal rotation

techniques, and then the rotated factor loadings of each factor is examined.

The variables which load highly on a factor, are identified, and the factor is

named after these variables.

Data set having responses for importance of factors for buying or

selling vegetable seed were analyzed on Principal Component Analysis and

results (Appendix V) obtained were presented in tables 4.2.1.1 and 4.2.1.2.

32

Table 4.2.1.1 Rotated Component Matrix (a) for farmers

Rotated Component Matrix(a) for farmers

Component

Factors 1 2 3

Price 0.062 0.865 -0.101

Quality 0.917 -0.063 -0.034

Seller suggestion -0.042 -0.167 0.6522

Peer farmer reference 0.029 0.035 0.7145

Brand 0.815 0.258 0.2183

Ad-campaign 0.245 0.171 0.6814

Schemes 0.077 0.832 0.0933

Extraction Method: Principal Component Analysis. Rotation Method:

Varimax with Kaiser Normalization. (a) Rotation converged in 5 iterations.

Principal Component analysis (Table 4.2.1.1) indicated that in

Bhagalpur, among farmers mainly three cluster of respondents existed. First

and foremost was QYALITY SEEKERS and looking for quality and brand.

Second important cluster of respondents believed in VALUE FOR MONEY

and look for price and schemes. The third cluster of respondents was

mainly PROMOTION- DEPENDENT i.e., looking for peer farmer reference,

seller’s suggestion and ad-campaign.

Similarly, dealers, retailers as well as distributors were asked to

express their priorities for different attributes while selling vegetable seed.

When data regarding preferences of dealers, retailers and distributors for

attributes while selling any vegetable seed were analyzed using rotated

component matrix of Principal component analysis, very useful results were

obtained (Table 4.2.1.2).

33

Table 4.2.1.2 Rotated Component Matrix (b) for dealers, retailers and

distributors

Rotated Component Matrix(b)

Component

Factors 1 2

Price -0.377 -0.0699

Quality 0.843 -0.1147

Margin -0.033 0.9409

Demand 0.664 0.3994

Availability 0.827 0.0838

Ad-Campaign 0.689 -0.1788

Extraction Method: Principal Component Analysis. Rotation Method:

Varimax with Kaiser Normalization. (b) Rotation converged in 3 iterations.

Principal Component analysis indicated (4.2.1.2) that in Bhagalpur,

among sellers mainly two cluster of respondents existed. First and foremost

was looking for QUALITY COMMUNICATION i.e. quality, availability and

ad-campaign. Second cluster of respondents believed in SELF-INTEREST

and looking for Margin only.

On the basis of results obtained in Principal component analysis,

Key factors responsible for purchase of any vegetable seed were identified

as Seller suggestion, peer farmer reference, ad-campaign, product quality

and price whereas Key factors responsible for sell of any vegetable seed

were identified as Margin, quality, price, ad-campaign, availability.

Since seller suggestion and peer farmer reference can be turned

towards any company by margin and ad-campaign also, so these also can

be eliminated while determining perception for any company. So, after

principal component analysis key factors responsible for sale/purchase of

vegetable seed were identified as:

Product quality, Price, Ad-campaign, Availability and Margin.

34

4.2.2 Perception of farmers, distributors and dealers / retailers

about product quality, affordability, ad-campaign, availability,

margin

After identification of key factors responsible for brand image,

composite sample of 215 respondents i.e. company distributor (1),

dealers/retailers (39) and vegetable growing farmers (175) was formed.

Thereafter all the 215 respondents were asked to express their perception

on identified key factors for Sungro brand and other major competitors. The

results so obtained are presented below:

4.2.2.1 Perception about Product quality:

Composite sample of 215 respondents were asked to express their

perception about product quality and the responses obtained are depicted in

figure 4.2.2.1.

4.2.2.1 Bar diagram showing perception about Quality

30

65

66

29

25

61

104

46

4

18

78

89

219

0%

20%

40%

60%

80%

100%

Percentage

Responses

Sungro Seminis Nunhems

Companies

Perception about Quality

Extremely Poor

Moderately Poor

Neutral

Moderately Good

Extremely Good

From the figure it is evident that about 50 per cent of respondents

were satisfied with the Quality of Sungro seeds mainly because of some

best quality well-established trusted hybrids of Sungro like Vivek, PPL-74,

Chakor, Gaurav, S-92 and No. 7777 etc. and to some extent due to widest

and diverse product line in Brinjal.

35

From Sungro products, about 25 per cent of respondents have

shown dissatisfaction on quality parameter and reasons were different for

different vegetables like:

The average Curd Weight in cauliflower of Sungro is less than

that of competitors like Seminis.

The fruit length in cucumber of Sungro is less than that of

competitors like Seminis.

The pungency in Chilli of Sungro is less stronger than that of

competitors like Nunhems and Seminis.

4.2.2.2 Perception about Product price / Affordability:

Composite sample of 215 respondents comprising of all

dealers/retailers (39), company distributor (1) and all vegetable growing

farmers (175) were asked to express their perception about product price

and the responses obtained are depicted in figure 4.2.2.2.

4.2.2.2 Bar diagram showing perception about Price

84

65

66

92

93

30

45

69

84

17

0%

20%

40%

60%

80%

100%

Percentage

responses


Companies

Perception about affordability

Extremely Poor

Moderately Poor

Neutral

Moderately Good

Extremely Good

From the figure it is evident that about 70 per cent of respondents

were satisfied with the affordability of Sungro seeds while rests 30 per cent

of respondents were taking it neutral. To make it more clear, price

comparison had been made between Sungro and competitors (table

4.2.2.2).

36

On price comparison it was found that prices of Sungro vegetable

hybrids were competitively lower than that of major competitors like Seminis

and Nunhems, with some exceptions like Gotya tomato and No. 10 okra of

Mahyco, Sneha cauliflower and No. 404 cucumber of Namdhari.

4.2.2.2 Table of price comparison

Price Comparison for 100 gm hybrid in Rs.

Sungro Nunhems Seminis Mahyco Namdhari

Cabbage S-92 =800 Riya = 1100 C 401 = 900

Cauliflower No159=1400 Tushar = 2500 Giriza = 1700

Sneha = 1000

Okra No. 18 = 600 Tulsi = 1000 No. 10= 400

No 502 = 620

Tomato Arjun = 1550 Laxmi = 2500 Aruna = 1700

Gotya =1350

NS 812=1600

Eggplant PPL-74 =400 Shilpa = 600 Shamali=1450

Cucumber No 404 = 90 Rani = 200 Malini_= 170 No 404 = 85

4.2.2.3 Perception about Ad-Campaign:

Composite sample of 215 respondents were asked to express their

perception about ad-campaign and the responses obtained are depicted in

figure 4.2.2.3.

4.2.2.3 Bar diagram showing perception about Ad-campaign

4

78

104

29

9

66

67

55

18

32

115

64

4

0%

20%

40%

60%

80%

100%

Percentage

responses


Companies

Perception about Ad-campaign

Extremely Poor

Moderately Poor

Neutral

Moderately Good

Extremely Good

37

Since sales-volume data indicated that Sungro was the market

leader in Bhagalpur hence it was difficult to accept poor perception towards

Sungro promotional activities as shown in bar diagram. Further investigation

made for knowing the status of promotional activities done by Sungro in

Bhagalpur revealed that almost all respondents were not satisfied with the

present Ad-campaign and promotional activities. Most of them were of the

opinion that company has not conducted demonstration, farmers meeting

and campaign at village level in good numbers.

When it was asked to distributor, one new problem appeared. At

present, Sungro Company is conducting adaptation as well as performance

trials on local location in joint venture with Mahyco company and person

conducting trials for both companies is basically employee of Mahyco. So,

results of trials as well as actual information regarding cultivation practices

to be adopted and what care should be taken and when; failed to reach to

Sungro distributor and staff in proper way and proper time.

4.2.2.4 Perception about Availability

All dealers/retailers (39), company distributor (1) and vegetable

growing farmers (175) i.e. composite sample of 215 respondents were

asked to express their perception about availability and the responses

obtained are depicted in figure 4.2.2.4.

4.2.2.4 Bar diagram showing perception about Availability

1

85

75

54

4

90

88

33

9

69

98

39

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage

responses


Companies

Perception about Availability

Extremely Poor

Moderately Poor

Neutral

Moderately Good

Extremely Good

38

Most of the respondents were unhappy with irregular supply of

Sungro hybrids in Bhagalpur especially in vegetables like bitter gourd and

okra. Sungro distributor intimated about limited supply of No. 7777 okra

hybrid and Vivek bitter gourd this year also. Last year sale of Bitter gourd

was 200 kg which dropped to 100 kg this year just because of short supply

of seed though demand was more than 200 kg .

4.2.2.5 Perception about Margin

All dealers/retailers (39) and individual company distributor were

asked to express their perception about margin and the responses obtained

are depicted in figure 4.2.2.5.

4.2.2.5 Bar diagram showing perception about Margin

11

23

6

10

25

5

13

21

6

0%

20%

40%

60%

80%

100%

Percentage

Responses


Companies

Perception about Margin

Extremely Good Moderately Good Neutral Moderately Poor Extremely Poor

Most of the dealer, retailers and distributor himself have shown

satisfaction with the margin but some of the have shown interest in cash

discounts or any new promotional scheme as well as reward for extra

ordinary sales.

39

4.3: To study the marketing activities adopted by different

companies in Bhagalpur area

A list of marketing and promotion activities was made and all

respondents of composite sample were asked to express their perception

about these activities for different companies separately.

4.3.1 Marketing activities adopted by Nunhems

The perception of all respondents of composite sample about

satisfaction from marketing activities adopted by Nunhems were

collected and depicted in 4.3.1.

4.3.1 Bar graph showing marketing activities by Nunhems

89114 124

150

198 204 215

0

50

100

150

200

250

Number of

Satisfied

respondents

Farmers/Dealers meeting

Others (Individual contact)

Campaigning

Demonstration

POP display

Leaflet distribution

Schemes

Marketing activities by Nunhems

Satisfied

From figure 4.3.1, it is evident that maximum respondents were

satisfied with promotional schemes undertaken by Nunhems while

maximum numbers of respondents have shown their dissatisfaction

regarding farmers as well as dealers meeting. In others Numhems was

contacting farmers individually through company representatives and was

offering calendars, diary, T-shirts to retailers in good numbers.

Respondents were satisfied with leaflet distribution and POP displays by the

company.

40

4.3.2 Marketing activities adopted by Seminis

The perception of all respondents of composite sample about

satisfaction from marketing activities adopted by Seminis were

collected and depicted in 4.3.2.

4.3.2 Bar graph showing marketing activities by Seminis

89100 109 114

192 195 215

0

50

100

150

200

250

Number of

Satisfied

respondents


Demonstration

Campaigning



POP display

Schemes

Marketing activities by Seminis

Satisfied

From the figure it is evident that maximum respondents were

satisfied with promotional schemes undertaken by Seminis while

maximum numbers of respondents have shown their dissatisfaction

regarding farmers as well as dealers meeting. In others Seminis have

distributed free sample in few villages to potential farmers and was

offering calendars to retailers in good numbers. Respondents were satisfied

with leaflet distribution and POP displays by the company.

41

4.3.3 Marketing activities adopted by Sungro

The perception of all respondents about satisfaction from

marketing activities adopted by Nunhems were collected and depicted

in 4.3.3.

4.3.3 Bar graph showing marketing activities by Sungro

033 54 62

179 185215

0

50

100

150

200

250

Number of

Satisfied

respondents


Demonstration


Campaigning

POP display


Schemes

Marketing activities by Sungro

Satisfied

From the figure it is evident that maximum respondents were satisfied

with promotional schemes undertaken by Sungro while maximum

numbers of respondents have shown their dissatisfaction regarding

others and demonstration, farmers as well as dealers meeting and

campaigning. Sungro offers various promotional schemes like T- Shirt

scheme on 1 kg purchase of Vivek bitter gourd or 100 gm purchase of No.

626 cauliflower or No. 525 tomato, but this scheme is also now withdrawn

after gaining popularity.

On comparison satisfaction from marketing activities adopted by

different companies, it was concluded that Sungro has to work on

demonstration, farmers/dealers meeting and campaigning. Also, Sungro

should go for other than these activities like free sample distribution and

individual contact through company representatives.

42

4: To undertake SWOT analysis of Sungro seed

SWOT Analysis, is a strategic planning tool used to evaluate the

Strengths, Weaknesses, Opportunities, and Threats involved in a project or

in a business venture. It involves specifying the objective of the business

venture or project and identifying the internal and external factors that are

favorable and unfavorable to achieving that objective. Strengths and

Weaknesses are internal and Opportunities and Threats relate to external

factors. Thus, SWOT Analysis (Strengths, Weaknesses, Opportunities, and

Threats) is a powerful technique to throw light on business possibilities as

well as to chisel out strategies in a more streamlined manner to create a

niche in the market. Based on the perception of all the respondents

regarding Sungro Seeds Ltd. on the key factors identified for brand image,

SWOT analysis was done and presented below:

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

Lower prices of vegetable seeds

Market leader

Good Quality hybrid seeds

Wider product line

Sellers satisfaction for margin

Poor in promotional activities

like demonstration, campaigning

and farmers or dealers meeting

Erratic availability of seeds

Performance trial conduction

through Mahyco staff

Area under vegetables is

increasing

Rising demand of vegetable seeds

Strong backup of R & D facility

Entry of large number of competitors

with few vegetable hybrids but at

lower prices

Very less market demand of hybrids

in some vegetables like papaya,

carrot, spinach etc.

Figure 4.4.1 SWOT analysis of Sungro

43

4.5: To frame out suitable strategy for strengthening and

repositioning the Sungro brand in Bhagalpur area

On the basis of SWOT analysis and open discussions with the

respondents, a strategy was formulated which is shown below in flow

diagram:

Strategy formulation

Appoint trial conductor

& train field staff

Ensure uniform

availability

Conduct farmer’s

meeting, demonstration

Create awareness

and good brand image

Improve

product line

Motivation of dealers

and distributors

Attractive

promotion schemes

Brand Repositioning & Strengthening

Sales turnover

reward

Market penetration

Figure 4.5.1 Brand repositioning and Brand strengthening

Key parameters of the strategy are as under:

1. Appointment of trial conductor and training of field staff: -

At present, Sungro Company is conducting adaptation as well as

performance trials on local location in joint venture with Mahyco Company

and person conducting trials for both companies is basically employee of

Mahyco. So, results of trials as well as actual information regarding

cultivation practices to be adopted and what care should be taken and

when; failed to reach to Sungro distributor and staff in proper way and

proper time. When company people are in suspicion state, it affects the

promotional efforts. So, there should be appointment of any experienced

person from Sungro to fill this communication gap. Training of the field staff

needed for enhancing effectiveness of promotional activities.

44

2. Ensure uniform availability:

It is a serious matter of thinking for any company if it would loose

market share, just because of erratic availability of product. Sungro

company introduced T-shirt scheme on Vivek bitter gourd last year. Due to

better quality, price and T-shirt scheme Vivek capture good market there

and gained a sale of about 200 kg. This year demand was more than 200

kg but the supply was only 100 kg. Similarly Sungro distributor told about

short supply of No. 7777 okra hybrid this year also. Similarly, Malti

cucumber was in demand but due to short supply, farmers remain devoid of

cucumber seed.

3. Farmers / dealers meeting and demonstrations: -

Frequency and effectiveness of farmers meetings, demonstrations

and promotional campaign should be increased. Aishwarya okra hybrid

flopped in Bhagalpur due to lack of focused promotion. Though both Vivek

bitter gourd and Pratima bottle gourd are good performing but due to very

less promotional activities, not getting the proper response.

4. Improvement in product line: -

Sungro has some best quality well-established trusted hybrids in

different vegetables like Vivek, PPL-74, Chakor, Gaurav, S-92 and No. 7777

etc. Also widest and diverse product line is available as in case of Brinjal.

But, in few dissatisfaction on quality is also there so improvement is

required in those vegetables.

5. Attractive promotion schemes: -

To attract customers, every company is offering something extra like:

Vigro bhindi of Golden Seeds private limited, offers one steel dish

free on buying 500 gm tinned pack of hybrid seeds.

No. 10 bhindi of Mahyco offers one Knapsack sprayer free on

buying 3 kg of hybrid seeds and one silk sari free on buying 1kg

of hybrid seeds.

45

The results of T-shirt scheme of Sungro Seed Ltd. were very positive

but now this is also withdrawn. So, company should announce some

schemes as proactive step or reactive step.

6. Creation of awareness among non-vegetable or non-hybrid

growers:

Awareness should be created among non-growers of vegetables as

well as non-hybrid vegetable growers about benefits of adopting hybrids

vegetables, so that they become next customers.

7. Market penetration: -

Till date, a lot of areas is remain untapped by Sungro, so

company should explore new market for brand awareness and

strengthening. Also, within vegetables like Chilli, Sungro ranked last while

maximum percentage growth will be in Chiil, so, target crop should be Chilli.

8. Sales turnover reward:-

On extra-ordinary sale due to individual effort, dealers or retailers

must be recognized, praised and awarded by cash discounts etc.

9. Motivation to dealers, retailers and distributors :-

The study revealed that farmers were giving priority to dealer

suggestion and dealers / retailers have shown preference to margin.

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5. Conclusion and Recommendations

5.1 Conclusion

From the study undertaken, the following conclusions can be drawn:

Area under vegetables is increasing in Bhagalpur district of Bihar

state with maximum percentage growth in Chilli while Sungro ranked

last in chilli. So, Sungro should target Chilli to capture more and more

market in future.

Sungro Seeds Ltd. is a market leader in Bhagalpur with good share

in brinjal, cauliflower, gourds, tomato but poor in chilli, cucumber,

spinach, carrot etc.

Sungro Seeds Ltd. is better than its competitors in price affordability,

margin and quality.

Sungro Seeds Ltd. is poor than its competitors in ad-campaign and

availability of hybrid seeds.

Sungro Seeds Ltd. is also inferior in promotional activities like

demonstration, farmers meeting and campaigning.

So it can be said that:

SUNGRO SEEDS Ltd. has taken long span to reach a status

where it can enjoy the benefits of good brand image and market leadership,

so necessity of the time is to retain this position and it could be only

possible through brand repositioning and brand strengthening.

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5.2 Recommendations

On the basis of study, the following recommendations are made:-

Sungro should target Chilli to capture more and more market in

future.

Sungro should appoint an expert for adaptive and performance trials.

Frequency and effectiveness of farmers meetings, demonstrations

and promotional campaign should be increased.

Sungro should ensure the desired and timely supply of hybrids.

Sungro should improve quality of hybrids of certain vegetable like

chilli, cucumber and cauliflower.

Prices of Sungro seed should not be raised every year.

48

6. References

Banumathy, S and M. Hemameena (2006). Analysis of brand preference of

softdrinks in the global environment, Indian Journal of Marketing, 36(6):

12-17

Ganguli, Shirshendu (2008). Breathing Brands, Advertising Express, February,

pp. 20-23

Jhala, Ranveer Singh (2005). Study of vegetable seed market dynamics and

evolution of marketing strategies for south Rajasthan, Project Report

submitted to Rajasthan Agricultural University, Bikaner

Kamatam, Maheshwara Reddy (2003). To study the market potential and

perception of dealers on NFCL products in Guntur district of A.P., Project

Report submitted to Rajasthan Agricultural University, Bikaner

Paliwal, Gyanendra (2001). Market potential of hybrid cucumber seeds in the

district of Jaipur & Tonk with reference to variety malini and rohini of Seminis

seeds, Project Report submitted to Rajasthan Agricultural University, Bikaner

Rajpurohit, Ravinder Singh (2002). Status of vegetable seed market of

Sriganganagar & Hanumangarh districts in Rajasthan and possibility of

increasing sales of Century seeds, Project Report submitted to Rajasthan

Agricultural University, Bikaner

Reddy,D. Raghunantha and N. Shivkumar (2005). Market Potential for The Hindu

in urban and semi-urban areas, Indian Journal of Marketing, 35(11):3-11

Singh, Harinder Paul Singh (2002). Estimation of market potential and product

requirement for early corn market in U.P., Project Report submitted to

Rajasthan Agricultural University, Bikaner

Documents

3.1New Final Project