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Methodology and data



Major Findings



































































The increase in demand for food, the advent of new
technologies, shrinking land under agriculture and uneven weather conditions
are all creating a need to improve the yields of the crop and thus increase the
productivity. Even the use of hybrid or high yielding varieties of crops cannot
address this problem alone as they can be affected by diseases, weeds or pests
thus damaging them and decreasing the productivity. These diseases, weeds and
pests thus are very critical to the productivity of the crops and thus need to
be destroyed for enhancing the yield and productivity.

Crop protection includes managing the various crop
diseases, pests and weeds that might
cause damage to the agricultural crops. They are diluted in the recommended
dosage and then applied to the crops to minimize
the damage and thus, increase the yield. Due to the above discussed factors,
Crop Protection is increasingly gaining importance and more and more farmers
are trying to resort to these to get better yields from their farms.

Asia is one of the largest food producing regions of the world, the Crop
Protection Industry of the Asia Pacific Region is expected to grow
significantly in the coming years. This
means that crop protection today is more sustainable than at any point in

The crop protection chemicals market
was valued at USD 51.2 billion in 2015 and is estimated to reach USD 77.50
billion by 2020 at a CAGR of 8.6%. Latin America leads the crop protection
chemicals market, especially Brazil, which was the biggest single country
market in 2015. Besides Brazil, Argentina was estimated to have a market share
of around USD 2.5 billion. Asia Paci?c was the second largest market followed
by Europe. Asia Paci?c is expected
to be the fastest-growing market during the forecasted period.


This report focuses on developing new
marketing strategies for pesticides in order to survive in the tough
competition faced by the major market players.












dissertation report was a great learning experience where in I got to learn a
lot about the marketing strategies for pesticides. I take this as a great
learning opportunity where I got to learn a lot.



I am thankful to Dr. Shubhangi Salokhe,Professor, Symbiosis Institute of
International Business, Pune for guiding me throughout the report and helping
me learn about the course and the topic.



Navneet Kamboj























Crop protection is the
collection of tools, products and practices farmers use to protect their crops
from weeds, pests and disease. Farmers across the world are concerned with crop
protection. In response, modern agriculture has provided them with a variety of


“Crop Protection Products
play a major role in protection of the crop from pests, weeds and diseases.
They are diluted in recommended doses and applied on the crop during the season
to prevent damage”



Growing population
leading to higher need for agri output

Reduction in arable land
due to increasing urbanization – focus on yield/ productivity

Changing dietary
preferences driving higher demand for protein and nutrients

Food security is a key
focus area for all countries

Intensification of
agriculture in emerging markets




















The crop protection
industry can be divided into the two classes:


Synthetic Pesticides
– include various chemically synthesized classes of pesticide like
Organophosphates, Carbamates, Organochlorines,
Phenoxys, Triazines etc


·       Biological Pesticides – include Microbial Pesticides, Plant-incorporated
protectants, biochemical pesticides























The global market for pesticides is expected to
register a CAGR of 4.5% between 2016 and 2021. By 2022, Asia-Pacific is
projected to grow at the fastest pace, followed by South America. The demand
and growth of synthetic pesticides in Europe and North America are likely to be
the slowest, due to market saturation and pesticides ban in the regions as
shown in the graph below.








There are 4 key components in the Agrochemicals Value
Chain –

Research and development
– The development of any new crop
protection chemical involves a lot of
research and effort in terms of time, infrastructure and investment. For any
new chemical to come up in the market, a lot of research has to be done to
invent a new Molecule also known as Active Ingredient. Most of the top players
like Bayer, Syngenta, DuPont spend a huge
part of their revenue in research of an active ingredient and molecule.


 Technical grade manufacturing
– this part of the value chain deals with the manufacturing of the active
ingredient found out. These chemicals are highly
toxic and concentrated in nature. A lot of companies have their own plants to
manufacture the active ingredient developed.



Manufacturing – in this part of
the value chain, the final formulation of the agrochemicals takes place.
Usually the companies that have sales and distribution network of their own,
also manufacture the end product themselves and sell under their own brand


and distribution – this part deals
with the distribution of the end product i.e the agrochemicals to the end users
ie farmers with the help of the various distributors and retailers present at
various levels across the different regions. Co-Distribution and marketing are
also prevalent where a brand markets and sells products of another brand using
it’s wide distribution network.





The Companies are
classified into Tier 1, 2 and 3 based upon their presence in value chain. The
major leading global players are present all across the value chain while the
others are either Formulation Manufacturers or Distributors.

Their role can be briefly
described as follows:

Integrated global Players:

They are present all
across the value chain and are strongly involved in research and development of
new AI or molecule, the registration process and then formulation and
distribution of the same.

Tier II:

They are involved in
formulation and it’s registration and distribution or research of new
formulations usually following Reverse engineering.

Tier III:

They are involved in
packaging and distribution of the Crop Protection Chemicals











Past studies pave way for future
research endeavours. An acquaintance with earlier studies is necessary to
develop better understanding of the present study and to formulate an
appropriate research methodology. Keeping in view the objectives of the study,
an attempt has been made to review the past studies related to the subject.

 A detailed review on various concepts and
methodologies are presented under the fallowing headings

Market share of different
brands of pesticides.

Factors influencing the brand
preference of pesticides.

Promotional strategies employed
by the pesticide companies.








This report is based on
primary and secondary data collected from various sources.The report is based
on qualitative data collected from various sources like internet and various
agri input companies. The secondary data collected from these sources will then
be analysed and thus a marketing strategy will be developed for pesticides in
Asia Pacific region.




The study
was conducted for grape growers in Maharashtra, with the sample being concentrated
around patches of grape growers in and around Baramati and Sangli.A cluster
sampling technique was used and within these clusters, a stratified sampling technique
was undertaken based on the size of holding and caste demographics. A total of
100 farmers and 30 dealers/retailers were chosen as the sample size.







schedule was prepared that was administered to the farmers and distributors;
the questionnaire

as a tool
to gather data, seemed inappropriate, first, because of the literacy rate of
the farmers;

due to the product complexity and the technical complexity involved. The use of

while administering the schedule could help


(i) In
simplifying aspects of the questionnaire;

(ii) Watching
customer’s reactions and personal observations;

(iii) Getting
a deeper understanding of the underlying reasons and effects.





The farmer
profile indicated that almost all farmers have large holdings with an average
land holding of 25 acres and are well off comparatively.



and Spraying Pattern:

cropping pattern revealed that the farmers prefer to grow grapes in comparison
to other

Crops and
about 80% of the cultivated area was under grapes. The average yield in quintal
per acre for the grapes grown was also high. The number of sprays per crop
season amounted to 10-12 sprays, with the spraying frequency being 8–10 days. This
varied across the months.





is well drained and irrigated, so as to facilitate 2-3 crops in 10-11 months of

It was found that 86 % of the total grapes acreage had boring facility; about

of the
total grape acreage had drip irrigation.





Credit ratio:


For the
smaller farmers with land holding of less than 25 acres, the credit ratio is 30
%; these farmers actually felt the need to avail a cash discount benefit and
mainly bought on cash. As far as the farmers with land holdings of more than 25
acres was concerned, the credit ratio is 80%; this was primarily due to
relationships that they could build with their lenders and suppliers. The net
credit ratio is 60%.


and product loyalty:


The study
revealed that the bigger farmers are more brand conscious, and show a low
product loyalty. While the farmers were satisfied with their current products,
about 70 % of the farmers were keen in trying out new agrochemical products and
techniques to prevent resistance formation. The rest of them waited for the
performance to reduce before changing their products/ brands.


Buying Behaviour:


success factors in determining the choice of the product was identified, viz.,
company name, farmers’ recommendation, dealers’ recommendation, launch of new
chemicals and trial pack result. The figure depicts the parameters which were
rated in order of importance by the customers’ choice.

It was
observed that 84% of the farmers were knowledgeable and actually purchase the
pesticide based on the technical compounds rather than on the company name and


As far as
source of information is concerned, 40 % of the farmers took advice from the

95% filed
the product literature for future reference, and 15 % of the farmers watched
the agri-programmes, like Krishi Darshan on Doordarshan on TV. The farmers also
rely on local newspapers and agricultural trade journals for information.


co-farmer recommendations and experiences play a major role as a determinant of
product quality, the company officials and the qualified field staff acted as
major educators, influencers and persons who were consulted in the purchase
decision in fact, the results from the study reveal that the farmers also
desired such help from the company; this could take place through meetings,
contacts, demonstrations etc. The field staffs and field assistants not only
campaigned for the products but also educated and guided the farmers. Village
fairs and stage shows are used to display product offerings; video vans are used
to screen pictures and documentary films to attract farmers, and educate them
on the product and brand offerings and the usage techniques.



farmers were also educated on pests and diseases and the corrective measures
that were required to be undertaken. This highlighted the need for appropriate
contact strategies between the company and the farmers. The study indicated the
importance of farmer meetings and face-to-face contact with company officials
as a major educator and influencer for the adoption and usage of chemical
products. While 62 % of the farmers came to the dealers’ outlet with a product
decision already decided based on preconceptions, the push was required as it
led to greater confidence and satisfaction in the minds of the farmer.





Customer Expenditure:


With the
seed expenditure/acre and the pesticide expenditure/acre being correlated to
each other, I also studied the seed expenditure vs. the pesticide expenditure.
This could help in segmentation on basis of usage rate so as to target the
appropriate farmers. It was seen that the increased popularity of the high
yielding hybrid seeds is affecting the pesticide industry, with a seed
expenditure/acre of Rs. 3000 and a pesticide expenditure/acre of Rs. 10000. The
cost of cultivation was calculated; the pesticide expenditure amounts to the
second highest component of the total expenditure.







Distribution network Analysis:

i) Dealer:


The main
reason for farmers’ adoption of agrochemicals amongst the farmers of

is protection of crops. The dealers provide information about the various
product offerings, their constituents and benefits; the usage; the accessories;
and, the side effects and results of using such chemicals. They also educate them
on issues of safe usage and disposal.

from this, the major role played by the dealer was facilities of credit and
development of long term relationships. The dealers provide credit facilities,
often through mutually agreed upon terms and conditions whereby the farmers are
allowed to pay in instalments or sometimes even after harvest. The long term
relationship that developed between the two, on basis of trust was an important
factor affecting both product and store loyalty.


ii Dealer Feedback:

The study on the dealers revealed that
there was a high degree of discontentment
amongst the

dealers, issues being:

ii Dealer Feedback:

The study on the dealers revealed that
there was a high degree of discontentment
amongst the

dealers, issues being:

Dealer Feedback

Pricing: The pricing methodology of the company is vague, incomprehensible and
non-transparent.; the pricing for each month is announced as late as two weeks
every month and that made implementation difficult.

Product packages and sizes:  smaller
packs are always short in supply; this is true even for newer product offerings
where trial is an important issue for farmers and farmers like to buy small pack
for trial basis.

Company representative visits: The frequency of visits made by the company
officials was found to be satisfactory at the dealer level but at the retailer
level it is weak.


It was
also observed that the dealers prefer to stock, established brands in the
market, even if it gave them lower margins which they could offset by sales, as
brand image in the minds of the farmers is an important parameter. However when
the product was not an established brand, then the dealers are more interested in
higher margins and returns.












The most common
strategies observed in the crop protection industry are:

The various strategies
for pesticide companies developed are :

Strategy 1: Promotion of the foundation – and matching the economic
value of agricultural pesticide product positioning. Do not waste crops in
low-income energy and time. Practice has proved that: the low value-added
crops, farmers less medication, and after treatment with low frequency may increase
the financial burden of farmers. High-value crops, high positioning; low
value-added crops, low position. Registration with the object and crops, to
find a bright spot for the product, refining a resounding slogan.


Strategy 2: Promotion of the premise – to find the most suitable number
of the characteristics of their own business distributor. Concentrate on
looking for the right object, looking good sweetheart – dealers. Great
marketing is not necessarily good, not necessarily small dealers cannot, do not
climb up is not low to the key is to the right eye got the idea. Good products
need the right dealer. In the subjective, good faith cooperation in the first,
sales of confidence in the second, the credibility of the third; the objective
to promote the ability of the fourth, the network channels fifth, sixth fund.


 Strategy 3: Promotion of the key
– find a suitable operation of the enterprise product marketing model.
“Model” can be copied and can be reused in the standard marketing
methods, marketing staff can save “touch stones” to explore the time,
to overcome the “money lessons, eventually turning back” the strange
phenomenon. No model, of course, can be resourceful marketing elite, but
ordinary people like marketing their way in the dark as wild guesses. Marketing
model is not very much, and no marketing manuals do not fine.


Strategy 4: Promoting the fundamental – on enterprise products and
customers “love” or even “crazy.” Eye of the beholder, the
marketing people in the eye of gold. Love the product and give this love to the
customer, ask some questions, we must love our customers. “Falling in love
with the product first – love products, discover the charm of products” to
help the product to speak, to make up for limitations of the product;
“after falling in love with the dealer – love customers, and tap the
resources of customers and sales potential” to help customers rapid growth
and progress. If the products and customers as a “lover” to love,
marketing representatives are not the perfect eyes, there is no place in the
less excuse for marketing, more passion.


Strategy 5: Promote the internal – love themselves, their full
confidence, and establish a new image of the concept of marketing staff. Who
self-love, love everyone, do first a representative of the amiable business.
Marketers must establish such a concept: “I am the God of Wealth clients,
I have come to help customers get rich characters, and I trusted the customer
sales consultants and technical staff, I was the wealth of missionaries’ plant
protection technology. I is plant protection technology for the prevention and
treatment programs rather than the product comes. ”


Strategy 6: Promotion of direction – for the customer to design a
suitable crop insect pest prevention and control of local marketing programs,
sales ideas and marketing plans, sales guidance to customers ahead direction.
To the front of the customer, but also walk in front of customers, determined
not to allow customers to fall behind in terms of ideology. Allow customers to
understand: if you work hard, our products here in the earnings outlook is very
good. To the customer to design a profitable operation of programs, channels
and customers to solve cash flow problems. First, a salesman with a sense of
direction, and then only customers with a sense of direction. Clerk of the
market theory of operation, guiding customer marketing action. Way forward is
very important to customers, then marketing should be a representative of
dealers sell pesticide products guide.


 Strategy 7: To promote the
practice – often went to the edge of the field to corner, and often return to
the fields to see, personally feel the effects of pesticides in the field. Doer
of deeds – for small farmers to solve a pest problem, do not do short of
theorists – even the bugs do not know what kind of grow into, but also talk at
length about control methods. To the farm to go to the grass roots to go to the
rural retail stores to go to witness the growth of farmers and agricultural
development. The hands of grass-roots farmers a variety of primary materials,
understanding of the product rose to an objective from the subjective, rose
from the practice in theory, negative information from a variety of dealer’s
interference. No practice field, there is no right to speak on plant protection


Strategy 8: Promotion of the external factors – attention and plant
protection station of agricultural technology exchanges and visits, product and
corporate culture, “reputation” communicator. “Let other people
to influence others”: plant protection technicians as missionaries; pest
forecasting personnel as copiers; pest information as planter; plant protection
staff is word of mouth marketing communicators and technology influencers;
model report leaflets to like a manifesto. National Plant Protection Technology
to borrow the power of extension systems (technology, promote the advantages,
the authority of superiority, information superiority), and agricultural
workers union, plant protection experts, How to borrow soft paper handwriting,
the use of plant protection experts in marketing their skills Chrysostom
Prevention program.


Strategy 9: To promote the objective – to customers and farmers,
pesticide input-output ratio calculated, calculate the yield after the rate of
pesticide use and increasing production, conversion and increase the economic
value of additional income. Products can not speak, but the yield figures will
speak, speak the test report, demonstration results will speak. Numbers are
objective, there is no bias. In the face of farmers and customers, use less
adjectives, the use of quantifiers.


Strategy 10: Promoting the subjective – of rival manufacturers of peer
influence and infiltration of the side, so that other manufacturers recommend
and introduce their products and companies. As competitors to hone their own
frame of reference, allow competitors to catch up with themselves, when they
had to bring in imitation – there is a wound, but the threshold, a benchmark
for others in line, and not busy with someone else after.


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