Documentos de Académico
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ON
“CONSUMER BEHAVIOUR OF HYBRID MAIZE SEEDS AND STUDY OF
HYBRID MAIZE MARKET POTENTIAL OF SOLAPUR DISTRICT”
AT
BY
PROF.GANESH TANNU
Submitted To
UNIVERSITY OF PUNE
Through
Narhe, Pune-411041
(A.Y. 2009–2011)
DECLARATION
I, the undersigned, hereby declare that the Project Report entitled “CONSUMER
BEHAVIOUR OF HYBRID MAIZE SEEDS AND STUDY OF HYBRID MAIZE MARKET POTENTIAL
OF SOLAPUR DISTRICT. “Written and submitted by me to the University of Pune, in
partial fulfillment of the requirements for the award of degree of Master of Business
Administration under the guidance of Prof. Ganesh Tannuis my original work and
the conclusions drawn therein are based on the material collected by myself.
Aditya Institute of Management, Pune for the M.B.A program affiliated to University of
The Project entitled “Consumer Behaviour of Hybrid Maize Seeds and Study of
Hybrid Maize Market Potential of Solapur District” is the original work student has
Any accomplishment requires the effort of many people and this work is no different. It
gives me an immense pleasure while submitting this dissertation. For partial fulfillment
of award Master of Business Administration. Every trainee expects a lot thing from the
eminent scholars and leading authorities of company and I am not an exception.
I would first and foremost thank the Pune University for designing such a precise and
practical course.
I would like to express my sincere gratitude towards Mr. Sameer Jadhav (General
Manager), for providing me with this opportunity to work with the esteemed
organization, KRISHIDHAN SEED Ltd. and I would also like to thank Mr. Sachin Patil
(Product promotion and extension manager) for guiding me throughout the course of this
project.
I would like to express my deepest sense of gratitude to Dr. Manoj Meghrajni and Prof.
Ganesh Tannu for playing the ideal mentor and being a constant source of inspiration
throughout at AIM. It is like a boon for me that I have got such kind of knowledgeable
guide. I am unable to find words to convey my gratitude towards him contribution. I
thank him from the depth of my heart.
Last but not the least my sincere thanks to other staff members of Krishidhan seeds and
all the Dealers and Farmers for their sincere co-operation in collection the necessary
details required for the completion of this report. I would also like to thank all of my
friends and all others who have directly or indirectly helped me in the successful
completion of this project.
EXECUTIVE SUMMARY
In today’s competitive world for retaining in the market it is very necessary to have good
knowledge of the consumer buying behaviour and the information regarding the activities
of competitor’s existing in the market so that we can plan our each activity according to
that. Also it is necessary to know the retailer expectation from the company.
The project is “CONSUMER BEHAVIOUR OF HYBRID MAIZE SEEDS AND
STUDY OF HYBRID MAIZE MARKET POTENTIAL OF SOLAPUR DISTRICT.”
This project is carried out for Krishidhan Seeds Limited, Pune, one of the leading seed
companies in India, engaged in production of different crop seeds.
The study deals with different objectives. The first objective of the project was to study
the consumer buying behaviour of hybrid maize consumer for that we have to understand
the customer needs, Income, constraints, response and emotions. The second objective of
this study was to analyze buying behaviour of existing customer of Hybrid maize in
Solapur.
It was essential to know the feedback of retailers and farmers in order to formulate
effective marketing and sales strategies in future and improve the quality to increase the
market share with better consumer satisfaction.
The data has been collected by visiting to farmers and retailersto know the consumer
buying behaviour and identifying the factors, which effect on consumer buying
behaviour. For this purpose structured questionnaire has been used
The descriptive design had been used to collect and analyze the data. In data analysis
tools like table, bar chart, pie chart had been used.
After the due analysis, it has been found that the most of farmer are preferring high
yielding variety and they are changing seeds at every time of growing.
With this in theresearcher can conclude that there is need to increase the awareness about
Krishidhan maize seeds to increase market share.
INDEX
Page
Sr. No. Content
No.
Executive Summery
1 Introduction 1
2 Profile of Organization 4
3 Literature Review 26
4 Research Methodology 40
7 Suggestions 74
8 Conclusion 76
9 Bibliography 78
10 Appendices 80
List of Tables
Table Page
Name of the Table
No. No.
1 Product of Krishidhan Seeds Ltd. 14
INTRODUCTION
1.1BACKGROUND
Consumer behaviour may be defined as the acts of individuals in obtaining and using
goods and services including both the ultimate consumer and the purchaser of the
industrial goods. Our approach is to view consumer behaviour, we must examine the
events that precede and follow from the purchase act. Consumer behaviour results from
individual and environmental influences. Consumer often influences goods and services
with they want to accept is therefore determined by the individual’s psychological
makeup and influences of others. The duel influence has been summarized in the
following simplified equation of the S. B = F (P, E)
Consumer Behaviour (B) is, therefore the results of the interaction of the consumers
personnel influences (P) and the environment (E), understanding consumer behaviour
requires that we understand the nature of these influences. The four basic determinants of
consumer behaviour are the individual needs motives, perception and attitudes. The
interaction of these factors with the influences of the environmental cause of the
consumer act. The starting point in the purchases decision process is the recognition of
felt need. A need is the simply lack of something useful. Everybody is motivated by
needs and wants. The consumer is typically confronted with numerous unsatisfied needs.
Some needs are physiological while others are his relationship with others. Wants are
basic these are learned during the courses of the individuals life. When a need or want is
not satisfied, it needs to drive, the drive state is one of the satisfaction his drive, motives
are inner attention that direct us towards the goal of satisfying a fall need.
The purpose of this research was to have practical experience of working within the
organization, in the field of marketing and to have exposure to the important management
practices in field of marketing.
While writing this report the language has been keep simple and the entire discussion has
been logical and has coherent outlines. The main motto of the project work was
CONSUMER BEHAVIOUR OF HYBRID MAIZE SEEDS AND STUDY OF HYBRID MAIZE
MARKETPOTENTIAL OF SOLAPUR DISTRICT. It includes through market Research in. It
includes consumer buying behaviour analysis, by surveying number of farmers and
dealer. The project report is divided into two parts, first part consist market research for
finding out the factor affect consumer buying behaviour, and second consist hybrid maize
market potential of Solapur.
PROFILE OF THE
ORGANIZATION
2.1 COMPANY PROFILE:
Krishidhan was established in 1996 and has grown into a group of companies
committed for excellence in an integrated seed business based on quality R&D,
Production, Quality Control, Processing, Marketing, Sales and Extension with sole goal
of ushering prosperity to farmers both at national and global level. Krishidhan has its
registered office at Indore and corporate office at Pune and major infrastructure base is at
"Jalna", the seed capital of Indian agriculture industry. Krishidhan Seeds is a pioneer and
dynamic agricultural biotech company delivering high quality seeds for the Indian
commercial seeds market. Krishidhan is a research-based organization. Its R&D activities
and research stations are recognized by the Department of Scientific and Industrial
Research (DSIR), Govt. of India. The company is actively involved in research,
production, processing, packing, and marketing of high quality seeds of Cotton, Cereals,
Pulses, Oil seeds and Vegetables. Recently, it has incorporated a separate legal entity as
Krishidhan Vegetable Seeds India Pvt. Ltd (KVSIPL), a company dedicated exclusively
for vegetable seeds business. Krishidhan is one amongst the first three sub-licensees of
M.M.B. India Ltd., which has commercialized Bollgard (BG-I) &Bollgard-II (BG-II)
cotton hybrids in India. Introduction of other GMOs are on anvil.
2.2 VISION:
To emerge as one of the biggest technology driven Indian agri input company
with a significant global presence and provide access to the latest technologies and all
required quality agri inputs for the socio-economic growth of farmers.
2.3 MISION:
KSL has a wide range of laboratories including Biotech Lab, Plant Molecular
Biology Lab, Tissue Culture/Transformational Lab & Entomo0lgy Lab, and Seed Testing
Lab & Quality Analysis Lab. It further has plans to add Molecular Marker / Genomics
Lab & Bio control Agent Lab.
i) KSL has the best brains in seed industry to conduct and guide its research. Very senior
and eminent scientists and breeders with vast experience in public sector lead its R&D
efforts in different crops. Research in each crop group is being led by an eminent breeder
as Chief R&D. They are guided by VP (R&D) a person of international repute. KSL has
8 crop specific research teams which are supported by 51 scientists out of which 26 are
Doctorates.
ii) The diversity of germplasm is the backbone of any crop improvement program. KSL
has about 18,000 entries in its collection in gene bank.
iii) Knowing the potential of application of Biotechnology in crop improvement the
company started its Biotechnology Division in 2002. The Biotechnology division has
now moved to a new facility in the technology center (Approximate area: 30,000 sq.ft)
with a group of 13 scientists.
iv) KSL has also entered into research collaborations with various national &international
institutes and universities benefits of which will be reaped in near future.
v) KSL's, KVSIPL's and KRFPL's R&D are recognized by the DSIR which is an obvious
indicator of its R&D standards.
Seed is the most vital input that sets the potential for crop yield and so achieving
the best seed quality standards is the KSL's prime goal. For this purpose, the quality
specifications/norms for field and seed stages prescribed in the Indian Minimum Seed
Certification Standards published by the Govt. of India are kept as the minimum base;
and additional specifications are indicated and adhered to.
Krishidhan Group has widespread presence across different agro climatic zones in
India. It’s Sales and Distribution network covers 15 prominent agrarian states in India
with a dedicated team of more than 250 Agribusiness professionals.
To achieve its vision of improving socio economic status of the Indian Farmer
Krishidhan Group has invested in creating outreach covering more than 1600 distributor
with 25000 plus no of retailers across 30000 villages benefiting more than 600000
farmers Its warehousing space which is approximately 60000 sq.ft is managed by
established Carrying and forwarding agents
Krishidhan Seeds Ltd has also subsidiary companies which are dealing with
fertilizer & micronutrient production.
KSL belongs to Karwa group of industries. It is a closely held company wherein 100%
ownership vests with the Karwa family. KSL is 100% holding company of four other
companies in the group.
Figure 1 Karwa group of industries
Krishidhan Seeds Limited, One of the top five seed companies in India has
opened its first European subsidiary from the 1st July 2010 under the name and style
“KRISHDHAN SEEDS EUROPE B V” having HQ at Enkhuizen, Holland. The company
deals in high quality seeds in Field crops, Vegetable crops and Plant Nutrition’s Products.
The group has State of the Art Infrastructure for R & D, Breeding, Biotechnology,
Supply Chain and Marketing. The company is determined to implement the three “P’s”
(Planet, People and Profit) in their International and Domestic Business. With this new
subsidiary, Krishidhan Group became the first Indian seed company spreading its wings
into High Tech, High Value and Attractive Market of International Seed Industry.
2.9 PRODUCT PROFILE:
The company is having network of 1600 distributor with 25000 plus no of retailers all
over India. Krishidhan seeds are involved in sales of BT Cotton, Hybrid Jowar, research
multicut fodder Jowar, research maize, Hybrid Bajra (research), research gram, research
mustard& notified varieties in moog, Udid, wheat, & soybean. These varieties are
popular throughout the country. The list of product is as follows
PRODUCTS OF KSL:
Maharaja
Characteristics:
Duration: 110-115 days Disease Tolerant to major diseases and pest.
Resistant:
Height: Medium Yield: High yielding.
Productive Orange Yellow colour with
Features: semi flint grain texture.
Figure 3 Maize variety Narendra
Narendra
Characteristics:
Duration: 110-115 days Disease Tolerant to MLB and TLB.
Resistant:
Height: Medium Yield: High yielding.
Productive Orange Yellow colour
Features: with flint grain texture.
Characteristics:
Duration: 110-115 days Disease Tolerant to diseases and pests.
Resistant:
Height: Medium Yield: High yielding.
Productive Yellow grain with semi-
Features: dent texture.
Figure 5 Maize variety Dhawal
Dhawal
Characteristics:
Duration: Full season maturity Disease Tolerant to major diseases
(115 days) Resistant: and pests.
Height: Medium Yield: High yielding.
Productive White grain with semi- Other: Suitable for major white corn
Features: dent in texture. growing area.
Characteristics:
Duration: 90-95 days Disease Resistant to common diseases.
Resistant:
Height: 220-225 cm Yield: 90 - 95 q/ha
Productive Yellow semi-flint, Rows 84-85
Features: excellent tip filling, 16- Shelling
18 kernal (%)
Table No. 1 Other product of KSL
Sr. Group of Crop Crop Name Products
No.
1. Cereals A. Bajra 1. Sujlam-68
2. KDBH-2561
3. KDBH-2095
4. Ratan-666
5. SBH-3333
6. Sujlam-810
7. KDBH-8272
8. Bajra KDBH-5013
B. Paddy 1. Chandrika-504
2. Sanskruti-621
3. KSL-1044
4. KSL 110001H
5. KSL 210011H
6. KSL 120007H
7. KSL-810
8. Komal
9. Hy Rize-307
C. Sorghum 1. Mankarna-504
2. Vimal-540
3. Sudama-333
4. Pandhari-296
5. KDSH-302
6. Harishakti-KDFSH-702
D. Wheat 1. Balram-011
2. Ambar-28
3. KDW-3028
E. Maize 1. Maharaja
2. Narendra
3. Golden gun
4. Dhawal
5. KDMH 017
3. Field Crops A. Cotton 1. KDCHH 9810 Bt (Dollar Maruti)
2. KDCHH 9632 Bt (Maruti)
3. KDCHH 9821 Bt (Pawan)
4. KDCHH 553 Bt (Green Ball)
5. KDCHB 407 Bt (Super Fibre)
6. KDCHH 441 BG II (Super
Maruti)
7. KDCHH 621 BG II (Rakhi)
8. KDCHH 9632 BG II (KSL Pratik)
9. KDCHH 541 BG II (Pancham)
10. KDCHH 9810 BG II (Dollar)
11. KDCHH 641 BG II (Trinetra)
12. KDCHB 407 (Talam 4072)
13. KDCHB 407 (Super Fibre)(Nbt)
14. KDCHH 9632 (Maruti)(Nbt)
B. Mustard 1. KDM-1066(KM-1)
2. Aishwarya Gold
3. B-9 (YS)
C. Sunflower 1. KDFSH-635
2. Welcome-812
3. Kapil-111
4. Marshal 675
D. Castor 1. Castor Splendor
2. KDCV-9
B. Bittergourd 1. Nikita
2. Hita
3. Ishita
4. Parinita
5. Ruchita
C. Bottlegourd 1. Santosh
2. Shambhu
3. Ramdev
4. Shashi
D. Brinjal 1. Ankush
2. Namrata
3. Revati
4. Sarika
5. Sagarika
6. Mamta
7. Anurag
8. Chaman
9. Green Beauty
10. Sahana
11. Suchitra
12. Shalin
E. Cabbage 1. Durga
2. Harnil
3. Green Shot
4. Sourav
F. Cauliflower 1. Aprima
2. Juliana
3. Octinova
4. Prathama
5. Dwitiya
6. Tritiya
H. Chilli 1. Manaswini
2. Tufan
3. Japanese Hot
4. Ayesha
5. Rutuja
6. Tejal
7. Green Spice
8. Hot Spice
9. Rujala
10. Mugdha
11. Suteja
12. Shivangi
13. Ronny
14. Isha
I. Cucumber 1. Harshini
2. Kamini
J. Pumpkin 1. Jaidev
L. Ridgegourd 1. Murali
M. Spongegourd 1. Nivedita
2. Nandita
N. Tomato 1. Kundal
2. Mahalaxhmi
3. Mahaveer
4. Ameya
5. Yashika
O. Watermelon 1. Tambola
2. Prince
3. Black Sugar
4. Black Honey
5. Rasraj
6. Savita
7. Julie
Corporate Office:
Krishidhan Seeds Limited,
"Sai Capital," 9th floor,
Opp.ICC Complex,
Senapate Bapat Marg,
Shivaji Nagar, PUNE - 411005
Maharashtra, India.
Phone: +91-20-25714000,
Fax: +91-20-25661207. E-mail: info@krishidhanseeds.com
Head Office:
Krishidhan Seeds Limited,
"Krishidhan Bhavan"
D3 to D6, Addln. MIDC,
Aurangabad Road,
JALNA - 431213
Maharashtra, India.
Phone: 91 2482 222600,
Fax: 91 2482 222611. E-mail: contact@krishidhanseeds.com
Registered Office:
Krishidhan Seeds Limited,
302, Royal House,
11/3 Usha Ganj
INDORE - 452001
Madya Pradesh,
India
Phone: +91-731-2352093,
Fax: +91-731-270321 E-mail: customercare@krishidhanseeds.com
2.11 Table No.2 Notified High Yielding Maize Composites/Hybrids
Name of State Kharif cultivars Rabi
- Full Season Medium Early Extra Early
Maharashtra Ganga - II, Ganga- MMH 69 Pusa Hybrid-1, Hybrids : Ganga
Hybrids 2, DHM 103, PRO- Pusa Hybrid-2, 11, DHM 103,
311 (4640) Y-1402 KH 9451 MMH 133 x Trishulata,
K. SSF 9374 (3058) 1123 G Ganga, Safed-2,
Bio 9681, JK 2492. Pusa 11 (3342)Kiran KH 5991,
Panch ganga 5981,Dhawal,
Panch ganga ICI
705, X 1382
(3054)
Composites Prabhat Navjot
Andhra Pradesh DHM 103, Ganga-2 KH 755 DHM 109, Pusa Ganga II, DHM
Hybrid-1,Pusa 103, 105,
Hybrids Pro 311 (4646) SSF KH 510 Hybrid-2, MMH Trishulata, KH
9374 133 x 1123 G 5991, 5891,
DHM 107 (3342) PAC 701
Bio 9681, Y-1402
K (3058)JK 2492
Composites Prabhat Navjot
Karnataka, Hybrids DHM 103, Ganga DHM 107 DHM 109 Ganga II, DHM
II, SSF 9374 103, 105,
KH 755 Pusa Hybrid -1
Bio 9681, Pro 311 Trishulata, KH
(4640) KH 510 Pusa Hybrid- 2 5991, 5981,
DHM 1, CoH-2,
MMH 69, Y-1420 Navjot 7 Renuka 3 x 1382 (3054)
K (3058)
Dhawal Co 1
(4840) KH 9451
Composites Prabhat Navjot
Tamilnadu Hybrids DHM 103, DHM 107 DHM 109, MMH Ganga 11, DHM
133, 103, 105,
Ganga II, KH 755 Trishulata, KH
Pusa Hybrid -1 5991, 5981,
PRO 311 (4640) KH 510,
Bio 9681, SSF 9374 KH 9451, Pusa Hybrid -2 DHM 1, CoH -
CoH 2, CoH3, JK MMH 69 2, 3, x 1382
2482, Y 1402 K X 1123 G (3342) (3054)
(3058) PAC 701
Dhawal, Co 1
Composites Co.1, Prabhat Navjot Kiran
For all states
http://www.ikisan.com/links/ap_maizeSeed%20Varieties.shtml
India's gross cropped area is next only to United States of America and Russia
and along with fragmented land holdings has helped India to become the largest seed
market in the world. India is second country in the world cotton production after China.
The Indian seed industry is the eighth largest in the world with an estimated value
of INR 49 billion (USD 1.06 Billion) and with an annual growth rate of 12% to 13 %.
The industry has shown a buoyant growth over the last two years on well supportive
monsoons. The development of private seed industry is no more confined to just
production and marketing of seed. It has well acquired technological strength to cater to
the varietal needs of tomorrow. Along with industries Indian farmers have in recent years
adopted intensive cultivation practices in order to meet the growing demand for
agricultural_produce.
If we look at the production capacity 70% of India’s seeds’ sales come from farmer bred
seeds, 26% from those bred in publicly financed institutions, and only 4% from
researched hybrids. The domestic hybrid seeds market is placed at INR 4.9 Billion and is
annually growing at 10% a year, against the 5% global growth rate. Here, majors players
like Monsanto India and Syngenta India dominate the hybrid seed market. The home
market works out to about 3.7% of the global market. As the organized Indian seed
industry is just forty years old. Yet, its growth has been phenomenal. India is among the
few countries where the seed sector is already reasonably advanced.
http://www.barc.ernet.in/
Maize is an important staple food in many countries of the world and the acreage and
production of maize in the world have been increasing continuously. Though the acreages
have not been so erratic, the production has been a bit volatile mainly due to the
variations in the yield. The area under the maize is continuously increasing over the
years. If we examine production figures, global maize production reached its high of
770.17 million tons during 2007-08.Acreage under corn cultivation increased to 157.1
million hectares in 2007-08 up by 14.5% from 137.19 million hectares in the year 2002-
03.
The US has the largest harvested area of corn and contributes one fifth of the world corn
harvested area. China, Brazil, Mexico, India and Indonesia are the other countries which
contribute significantly to the world harvested area. These six countries have around 60%
of the world corn harvested area and the climatic conditions of these countries during the
growth period of corn affect the yield and in turn the supply of corn in the world.
Figure No. 7
Source: www.karvycomtrade.com/.../karvysSpecialReports_20060727_01.pdf
Figure No. 8
Source: www.karvycomtrade.com/.../karvysSpecialReports_20060727_01.pdf
From the above graph, we can infer that United States has the lion’s share by capturing
43% of the total world production followed by China(19%), EU-27(6%), Brazil (7%).
These five countries production account to 75% of the total global production. India
stands fifth in terms of production with 2% to the total world corn production. From
below graph we can conclude that total global production is higher than global
consumption during 2004-05 due to its utility in limited sectors. Thereafter condition has
changed and witnessing the higher consumption than production due to rising global
demand from new sectors like Ethanol production.
2.15 INDIANMAIZE SCENARIO:
India is the fifth largest producer of maize in the world contributing 3% of the global
production. In India, maize is grown in all the seasons i.e., Kharif, Rabi and summer. Of
these three seasons, nearly 90% of the production is from Kharif season, 7-8% during
Rabi season and remaining 1-2% during summer season. Since the maize is rain
dependent, it is mainly grown during Kharif season.
With the early onset of the South West Monsoon, maize sowing was started little earlier
than normal planting period. According to Union Ministry of Agriculture, as on 10th July
2006, area brought under maize in India was 35.22 lakh hectares up from 27.36 lakh
hectares planted during the corresponding period last year. Higher acreage under the crop
raised the hopes of higher production this year.
Table 3 Area, Production & Yield of Maize in India
20
15
Area million ha
10
production million t.
5
Yield
2500
2000
1500
1000 yield
500
Source: http://www.karvycomtrade.com/disclaimer.asp
CHAPTER: 3
LITERATURE REVIEW
3.1 THEORETICAL BACKGROUND OF CONSUMER BEHAVIOR: -
The term consumer refers to all the individuals and households who are going to buy or
acquire goods and services for their final consumption. Consumers may vary and can be
classified according to their age, sex, income group, social status, mobility pattern and
their tests and preferences.
In India the two terms consumers and customers are synonymously used but quite
wrongly because the major significance is between their ways of usage. Customers are
those who purchase the goods but not for their own consumption and consumers are those
who are able to purchase that particulate good but these are meant for their final
consumption. Baby feeds can prove the difference between these two terms and here the
parents are the customers and those are the actual consumers. In earlier, time marketers
could identify their customer or could make a fair undertaking through their daily
practice and experience. But in today competitive world, as growth in size of firms and
markets had removed many marketing decision makers from direct contact with their
customers. So manager had turned to the consumer research. They are spending money to
study consumers and trying to find out answers to the questions like who is buyer. What
did they buy? How did they buy? Where did they buy? On any particular time, occasion
or reason? Why did they buy? Where did the buy? etc. and on the basis of answers of
above questions producer generally decides that, what to produce ? How to produce?
When to produce? And how much to produce etc.
The aim of marketing is to meet and satisfy target customers need and studies how
individuals, groups and organization select, buy, use and dispose as to satisfy their need
and desire. Understanding consumer behaviour and knowing customers are never simple.
Customers may state their needs and wants but cannot also. They may not be in touch
with deeper motivations. They may respond to influence that changes their mind at the
last minute. Never the fewer marketers must study their target customer’s wants
perceptions, preferences and shopping and buying behaviour. Consumer behaviour
display in searching, purchasing using and evaluation products services and ideas which
they expect will satisfy their needs."
3.1.1 Consumer Buying Behaviour:-
The study of how and why people purchase goods and services is termed consumer
buying behaviour. The term covers the decision-making processes from those that
precede the purchase of goods or services to the final experience of using the product or
service. Models of consumer buying behaviour draw together the various influences on,
and the process of, the buying decision. They attempt to understand the proverbial 'black
box' of what happens within the consumer between his or her exposure to marketing
stimuli and the actual decision to purchase.
In the next reading, Kotler et al. (2004) briefly explain the 'black box' model; however
Figure shows the content and process involved much clearer.
The essence of the model is that it suggests consumers will respond in particular ways to
different stimuli after they have 'processed' those stimuli in their minds. In more detail,
the model suggests that factors external to the consumer will act as a stimulus for
behaviour, but that the consumer's personal characteristics and decision-making process
will interact with the stimulus before a particular behavioral response is generated.
It is called the 'black box' model because we still know so little about how the human
mind works. We cannot see what goes on in the mind and we don't really know much
about what goes on in there, so it's like a black box. As far as consumer behaviour goes,
we know enough to be able to identify major internal influences and the major steps in
the decision-making process which consumers use, but we don't really know how
consumers transform all these
A] ECONOMIC FACTORS:-
Economic factors were first to advance formal explanation of consumer behaviour.
Generally economists are assuming that the market is homogenous. Economic theory
describes man as rational buyer who has perfect information obtain the optimum value
for his buying effort and many price regarded as the strongest motivation. The buyer
compares the prices charged by competing sellers and buys the product having the
optimum quality and a reasonable price.
The assumption that market is homogeneous is not correct. Heterogeneity is the main
characteristic of markets. Market segmentation is based on the realization that all buyers
are not alike. They differ in numbers of distinctive ways. Heterogeneity is seen on both
supply and demand side of the market. The marketing problem is to match demand and
supply sides to heterogeneous segments of the market.
B] CULTURAL FACTORS:-
A cultural factor exerts and deepest influence on consumer behaviour. The role played by
the consumer culture subculture and social class is particularly important.
1) CULTURE:-
Culture is the most fundamental determinant of person's wants and behaviour.
The consumers acquire a set of values. Perception, preference and behaviour through his
and her family and other key institutions. Culture is defined as "Culture is what we are
and civilization is what we have."
2) SUB - CULTURE:-
Each Culture contains smaller groups of subculture that provides more specific
identification and socialization for of its members. Few types of subculture have been
distinguished by American sociologists, Nationalities religious, Province as regional
groups.
3) SOCIAL CLASS:-
Social classes are relatively homogenous and enduring divisions in a society. Which are
hierarchically ordered and whose members share similar values interests and behaviour?
A social classes are relatively homogenous i.e. group of people with similar levels of
prestige, power and wealth who also share a set of related beliefs values and attitudes in
their thinking and behaviour. Social classes also show distinct product and brand
preferences in clothing, home furnishing and leisure activities and in America even in
respect of automobiles.
4) REFERENCE:-
A person's behaviour is strongly influence by many groups. A persons reference groups
are those which directly or indirectly influences person a person. These are groups to
which the person belongs some are primary groups with which there is a fairly
continuous interaction, such as family, friends, neighbour and co-workers or colleges
primary formal relationship and they have less continuous interaction. They include
religious organizations. Professional associations and trade unions.
5) FAMILY:-
The family is most important consumer buying organization in society and it has been
researched extensively. Family members constitute the most influential primary reference
group.
6) ROLES AND STATUS:-
Person participates in many groups throughout their life that are family, clubs,
organization etc. The person and his position in different in each group can be defined in
terms of role and status. A role consists of activities that a person is expected to perform
according to expectations of persons around him or her. Each role carriages a status
reflecting the general system to it by society. People often choose products to
communicate their role and status in the society.
C] PSYCHOLOGICAL FACTORS:-
A person buying choices are influenced by four major psychological factors motivation
perception, learning and beliefs and attitudes.
1) MOTIVATION:-
The term motivation means an inner urge that makes or promptly persons to act. A need
is not motive until is arranged. A need is a material recruitment basks to human life but
these needs are not always 'activated' when the need is activated it becomes 'motive
creation of wants' or revaluation of expectations from life is motivation.
2) PERCEPTION:-
A motivated person is ready to act. How a motivated person acts is influenced by his
perception of the situation. To persons or subjected to the same motivation may act
differently because he perceives the situation differently because he perceived the
situation differently. Perception can be defined as 'The process by which on individual
select organize and interpret information to create meaningful picture of the world.'
3) LEARNING:-
Learning involves changes of and individual behaviour arising from experience when
people act; learn through experience, learning describes changes in an individual’s
behaviour arising from experience. Experience related to usage of product, shaping and
exposure to the advertisement and other aspect of marketing. A person is attracted by
package of a new product if the consumer is get satisfied by this new product, the buyer
learns through the experience that the new product is good or acceptable to him. Learning
knows something which you did not know before.
4) BELIEF AND ATTITUDE:-
BELIEF - is a descriptive through that a person holds about something.
ATTITUDE - is persons enduring favourable or unfavourable evaluation. Emotional
feeling and action tendencies towards some objective or idea. Thus through doing and
learning
people acquire beliefs and attitudes and thus in turn these beliefs and Attitude greatly
influences the buying behaviour of consumers.
D] PERSONAL FACTORS:-
1) AGE AND STAGE IN LIFE CYCLE:-
People buy different goods and services throughout their lifetime and their buying
behaviour in age related. Consumption is also shape by family lifecycle marketers after
choose their customers life-cycle wise as their target market.
2) OCCUPATION:-
A person's occupation certainly influences his/her consumption pattern or buying
behaviour. Marketers also try to identify the occupational groups that have above average
interest in their product and services. A company can even specialize its products for
certain occupation groups.
3) ECONOMIC CIRCUMSTANCES:-
Product choice is greatly influence by one's economics circumstances people's economic
circumstances consists of their spendable income i.e. level, stability and time pattern,
saving and assets including percentage that is liquid, debts borrowing power and attitude
towards spending versus saving.
4) LIFESTYLE:-
A person coming from same sub-culture social classes and occupational groups may lead
to different lifestyle. "Lifestyle can be defined as, a person’s pattern of living as
expressed in the persons activities interests and opinions."
5) PERSONALITY AND SELF-CONCEPT:-
Each person has distinct personality that influences his buying behaviour. Personality can
be defined as a person distinguishing psychological characteristics that lead to relatively
constitution enduring response to his environment. Personality is usually described in
term of such traits as self-confidence dominance, autonomy, difference, sociability,
defensiveness and adaptability.
Personality can be useful in analysing consumer behaviour provided that personality
types can be classified accurately and that strong correlation exists between certain
personality types and products of brand choices self-concept is related to personality.
3.2.1 DEFINITION:
Estimated maximum total sales revenue of all suppliers of a product in a market during a
certain period
Understand market potential for a single store, network of stores or a new market
Deploy resources effectively by ranking markets in priority order
Forecast total opportunity in terms of number of customers and revenue potential
Estimate your market share
Estimating the market or market potential for a new business or business expansion is
critical in determining the economic feasibility of a venture. Estimating the market
potential will determine if the market is large enough to support your business.
Estimating the market potential for a business is critical in evaluating its viability and
provides an estimate of the maximum total sales potential for a given market. Once the
estimated market potential has been calculated, it is possible to determine if the market is
large enough to sustain your proposed business or sustain an addition competitor in the
marketplace. It is important to remember that the estimated market potential sets an upper
boundary on the market size and can be expressed in either units and or sales. Unless
there are no direct or indirect competitors, a business will capture a share of the total
estimated market potential, not all of it.
The following provide the steps and data necessary to estimate the market potential.
Key Steps in Estimating Market Potential:
1. Define your target market and market segments.
2. Define the geographic boundaries of your market.
3. Derive an average selling price.
4. Determine the average annual consumption.
Estimating the market potential for a business requires specific information on the
number of people or potential buyers, an average selling price, and an estimate of
consumption or usage for a specific period of time.
1. Target Market
One of the most important components of estimating the market potential for a
business is to determine its target market. A target market can be thought of as the
customers who are most likely to buy from you and generally are described using
demographic variables (gender, age, education) as well as psychographic variables
(lifestyle and belief system variables). In many cases, a business may have more than one
target market. Think about the automobile industry, automobile manufacturers have a
number of target markets, i.e., truck buyers, luxury car buyers, economy buyers. Your
business should be able to develop specific profiles for each of your target markets using
demographic and psychographic variables.
5. Pricing
A product’s pricing has a direct impact on the bottom line of your business and its
success. You do not want to price yourself out of the market but you do not want to leave
money on the table. However, it is important that your account for all of your costs
associated with providing your product to the consumers and set your price high enough
to cover this price and make a profit. Your product’s price must also be in line with
competing products relative to its value. Value is a ratio of a customers expected level of
quality and the price they pay for the product. If quality is low and price is high, it is a
low value product. Therefore, investigate what others are charging and what the customer
gets at that price when setting your price.
Calculating Price:
•Cost-plus pricing. Used mainly by manufacturers, assures that all costs (fixed
and variable) are covered and includes a desired level of profit.
•Demand pricing. Used by companies that sell their product through a variety of
sources at differing prices based on demand.
•Competitive pricing. Price according to your competitors. Used in competitive
markets with little product differentiation.
•Mark-up pricing. Adds a level of profit to the cost of the product being retailed.
Also good for products that are co-packed.
6. Market Share
The percentage of a market (either in units or revenue) accounted for by an
individual business This figure is important since it provides insight into how much of the
total market potential a business might capture. If the market share is not large enough to
support the business, then there is a problem. Also, if the number of units needed for the
business to break-even financially is known, it is possible to determine what share of the
market will have to be captured for the business to achieve this break-even point. If the
market share estimation is too high or unrealistic, the business should be reevaluated.
Estimating market share is difficult because of the lack of information. Some
trade associations or market research publications will provide some basic market share
information but finding directly applicable information for your business may be
impossible. Market share information is very difficult to obtain and may need to be
estimated using various scenarios.
Examples: There are two existing agritourism operation in the identified market area.
The new agritourism business wants to estimate what percent of the total market they can
capture. Since data on agritourism in the area is not being collected, it is impossible to
derive an accurate market share. However, for planning purposes, it is possible to crudely
estimate market share.
CHAPTER: 4
RESEARCH
METHODOLOGY
4.1 INTRODUCTION
Research is common parlance reference to a search for knowledge. Research
is an academic activity and as such the term should be used in a technical since. Research
is an original contribution to the existing stock of knowledge making for its advancement.
It is 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 in research. The systematic approach concerning generalization and
the formulation of theory is also research. The term research refers to a systematic
method consisting of enunciating the problem, formulating a hypothesis, collecting the
facts or data, analyzing the facts and reaching certain conclusion either in the form of
solution towards the concern problem or in certain generalization for some theoretical
formulation.
The term research can be defined as “a careful investigation or inquiry
especially through search for new facts in any branch of knowledge”. Redman and Mory
defined research as a “systematized effort to gain new knowledge”.
4.5 SAMPLING
The process of selecting number of units for a study in such a way that the units
represent the large group from which they are selected.
For this research the sampling unit referred is Retailers and farmers in the Solapur
district dealing in agriculture inputs particularly sell maize seeds and purchase maize
seeds respectively.
The purpose of sampling is to draw conclusions about populations from samples.
4.5.1 Sample
A finite subset selected from the population with the purpose of investigation of
its properties is called as sample.
For this research sample size used were 47 Retailers& 70 farmers from the
selected population.
4.5.2 Universe/Population:
The population means the large group from which the samples are drawn or the
group of individual under study is called universe/population.
For this research the population is the maize seeds dealer and farmer who growing
maize crop from Solapur district.
4.5.3 Sampling design:
It is definite plan for obtaining a sample from a given population.
4.5.4 Sample survey:
A survey conducted by selecting the sample is called as sampling survey.
4.5.5 Sampling technique/Method of sampling:
1. Probability sampling
a) Simple random sampling
b) Systematic random sampling
c) Stratified sampling
d) Cluster sampling
e) Multistage sampling
2. Non probability sampling
a) Convenience sampling
b) Judgmental sampling
c) Snowball sampling
d) Quota sampling
For this research convenience sampling is used. This is probably the most
common of all sampling technique with convenient sampling. The samples are selected
because they are accessible to the researcher. This technique is considered easiest,
cheapest and less time consuming. A finite subset select from the population with the
purpose of investigation of its properties is called sample. This small group represents the
total group. In the project the market research, which was ask to be studied Solapur
market but as it was possible to approach all the respondents dealer & farmer of the
district, hence a sample was selected which represents the whole area. The areas selected
for the sample are present further in the appendix. Sampling method used is convenience
sampling .It is non-probability sampling method .For this project convenient sampling
has been used as it meet the constraints like economic and time.
.
4.6.6 Sample Area:-
It is clear that probability sampling is more reliable and relevant but since time
and money being major considerations non probability sampling is convenient. All the
dealer and farmers were surveyed during the project belonging to population area. The
areas covered were Madha, Karmala, Jeur, Akluj, Tembhurni, Pandharpur, Solapur city
and villages like Vairag, Aran, Khandali, Wangi, Kandar, Karkamb, etc.
C] Questionnaire Method
a) It is free from the bias of interviewer; answers are in respondents own words.
b) Large samples can be made use of and thus the result can be made dependable and
reliable.
c) There is low cost even when the universe is large and is widely spread
geographically.
Limitations
a) It can be used only when respondents are educated and co-operating.
b) It is difficult to know whether willing respondents are truly representative.
c) The control over questionnaire may be lost once it is sent.
For this research primary data was collected by preparing two separate
questionnaires one for the farmer and other for the dealers.
The questions were asked to the dealers which covered all the aspects pertaining
to the project. The questions gave details about the Brand varieties, quality of the seeds,
effect of advertisement, and opinion of the dealers. Similarly in the schedule for the
customers the questions covered many aspects about their preferences, brand image,
effectiveness of the advertisements, etc.
Questionnaire design
ANALYSIS AND
INTERPRETATION OF DATA
5.1 DEALER’S SURVEY:
Tabular representation
Seeds Available
No. of respondent
Yes No
Wheat 42 5
Jowar 44 3
Soybean 17 30
G.nut 45 2
Gram 37 10
Cotton 16 31
Vegetable 44 3
Maize 47 0
Sunflower 43 4
Pulses 46 1
Figure No.-12
0
Interpretation:
From the above graph it can be interpreted that most of dealer having maize seed
available in their shop. This indicates that KSL has tremendous scope to increase their
market share.
Tabular representation
No. of respondent
Yes No
Mahyco 31 16
Krishidhan 9 38
PHI 38 9
Ankur 17 30
Syngenta 27 20
JK Seeds 11 36
Monsanto 31 16
Kaveri 21 26
Mahabeej 11 36
Nirmal 8 39
Ganga Kaveri 9 38
Figure No.-13
Monsanto
Nirmal
Ankur
Mahyco
JK Seeds
Kaveri
Mahabeej
Ganga Kaveri
Interpretation:
From the above graph it can be interpreted that most of the dealer having PHI Company
maize seed available in their shop
KSL has very less market share in Solapur district for maize seed
Q.3 which company’s seed sale more (give ranking)
Tabular representation
Total of No. of
Company ranking respondent MeanRanking
Mahyco 51 21 2.428571
Krishidhan 15 5 3
PHI 58 34 1.705882
Ankur 31 6 5.166667
Syngenta 72 21 3.428571
JK Seeds 30 5 6
Monsanto 85 27 3.148148
Kaveri 61 21 2.904762
Mahabeej 38 12 3.166667
Nirmal 16 5 3.2
Ganga
Kaveri 24 6 4
Figure No.-14
Mean ranking
7
6
5
4
3
2
1 Average ranking
Ganga…
0
Syngenta
Krishidhan
Kaveri
Nirmal
Ankur
PHI
JK Seeds
Mahyco
Monsanto
Mahabeej
Interpretation:
From the above it can be interpreted that sale of PHI company’s seed is morein Solapur
district with Mean ranking 1.70. This is followed by the Mahyco, Kaveri, Monsanto,
Mahabeej, etc.
Q.7 which promotional activities are commonly adopted by various companies?
Tabular representation
Interpretation:
From the above chart it can be interpreted that 40% companies adopting premium and
gift promotional activity it followed by coupons, exhibition
Q.8 Rank the companies according to their frequency of sales promotion?
Tabular representation
Mean ranking
6
5
4
3
2
Average ranking
1
0
Interpretation:
From the above it can be interpreted that Mahyco Company’s is at top regarding sales
promotion activity with Mean ranking 2. This is followed by the Monsanto, PHI,
Mahabeej, etc.
CHAPTER: 6
OBSERVATION& FINDING
1. From the research it is observed that 100% of dealer having maize seed available
in their shop, so there is no problem to farmer regarding seeds availability.
2. It is observed that the PHI, Mahyco, Monsanto, Syngenta & Kaveri companies
maize seeds available in their shop, so these are the top maize seeds selling
companies in Solapur market.
3. From the market survey observed that 64% of dealer are satisfied with margin
provided by company, 47% of 36% these are dealer which affect the sale.
4. It observed that while purchasing seed farmer considering factor like yield, price,
promotion, water requirement, etc. 49% of the farmer preferring high yielding
varieties.
5. It is found that, most of the farmers used maize as a commercial purpose. i. e.
71% of farmer growing maize for selling purpose.
6. Mahyco company’s is at top regarding sales promotion activity
7. Maize crop is such crops which can be grow in all season but 59% of farmer
growing maize in Kharif season as scarcity of water in other season.
8. It is observed that Most of farmers following the progressive farmers and their
friends.
9. As the 84% of farmers are satisfied with varieties using currently it is observed
that they are stick up that variety.
10. It is observed that there is tough competition of maize seed company in market.
11. It is observed that actual potential of hybrid maize is only 19%, so untapped
potential is 81%.
CHAPTER: 7
SUGGESTIONS
Suggestions
The important factor, which has been recognized from the data, collected analysis
regarding the Hybrid maize buying behavior of farmers are that, farmers give most
important to yield of crop, so other factors price, water requirement, availability and
promotion activity increases attractiveness of hybrid maize among the farmers. Due to
high yielding some variety are very popular among farmers.
In entire study of project it is observed that awareness of KSL hybrid maize seed is
very low among the farmer i.e. KSL maize seed has captured very less Market in Solapur.
As the farmer taking suggestion from progressive farmers, reading newspaper like
agro one, Most of the big farmers are literate because of that they give Brand preference.
So company can use print media for brand promotion.
Most of the farmers near about 90% are believes in product performance. So for
retaining and maintaining existing customer quality of product is one of important
criteria.
It is found that, most of the farmers used maize as a commercial purpose.
In present year, Pioneer 30v92, MRM 3838, Kaveri are more popular variety
So it is very important to redevelop their marketing strategies and try to cover
maximum market in Solapur.
BIBLIOGRAPHY
BOOK
1. 1. Philip Kotler,“Principles of Marketing”, 12th edition, PHI Learning Private
Limited.
2. C R Kothari, “Research methodology”,
3. G C Beri, “Marketing Research”, 3rd Edition, Tata McGraw-Hill Publishing
Company Limited.
Websites referred:
1. http://agricoop.nic.in /kharif10.htm
2. http://dacnet.nic.in/seednet/seeds/material/indianseedsector.htm
3. http://www.krishidhanseeds.com
4. http://agricoop.nic.in/agristatistics.htm
5. http:// napmc.co.in/products/groundnut.aspx
6. http://www.barc.ernet.in
7. http://www.ikisan.com
8. http://en.wikipedia.org/wiki
9. http://www.icrisat.org/vasat/learning_resources/crops
CHAPTER: 10
APPENDICES
APPENDIX-A1
1. Mahyco 6. JK Seeds
2. Krishidhan 7. Monsanto
3. PHI 8.Kaveri
4. Ankur 9.Mahabeej
5. Syngenta 10.Nirmal
Q.4what are the reasons behind selection of a particular brand given by farmers?
1. High yield
3. Price
4. Promotional activity
1. Mahyco 6. JK Seeds
2. Krishidhan 7.Monsanto
3. PHI 8.Kaveri
4. Ankur 9.Mahabeej
5. Syngenta 10.Nirmal
Yes No
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________
Q.9Are you satisfy with margin you get from company? Is it effect on your sale?
_______________________________________________________________________
___________________________________________________________________________Q.1
Q.10what is opinion about SKL maize seeds? Give suggestion.
______________________________________________________________________________
______________________________________________________________________________
_____________________________________________________________________
APPENDIX-A2
Yes No
5. Is the effect of promotion activity occurs on your purchase? If yes then which?
________________________________________________________________________
__________________________________________________________________
6. From which source you gate information regarding seed & other
News paper
Friend
Relative
TV
9. Are you satisfied with yield from the seed you are using right now? If no then how
much your expectation?