Develop marketing plan for

WSF in Marathwada for cotton

for 3 years along with cost-
benefit analysis

Submitted By:
V.K. Agarwal
Zonal Manager, Aurangabad

1
2
 CONTENTS

CHAPTER PAGE
PARTICULARS
NUMBER NO
Executive summary 03
CHAPTER
About Marathwada 04
NO 1
CHAPTER
About WSB 07
NO 2
CHAPTER
Data analysis and results 17
NO 3
CHAPTER
SWOT Analysis
NO 4
CHAPTER Recommendations and
21
NO 4 suggestions
Land utilization statistics
Annexure i 22
cotton in Marathwada
Area/production/yield
Annexure ii 22
figures of 2006-07
Area/production/yield
Annexure iii 22
figures of 2007-08
Area/production/yield
Annexure iv 23
figures of 2008-09
Annexure v Rainfall data Marathwada 24
Cost benefit analysis of
Annexure vi 24
2007-10
Cost benefit analysis of
Annexure vii 25
2010-13

3
 Executive summary

In the present agricultural scenario, WSB forms an important

consideration for growth, betterment and productivity enhancement of
any crop. Moreover due to various technological and scientific
innovations, people in the agricultural community of the world are
more conscious about the health and quality of agri produce.

The project was aligned to develop marketing plans for WSB in cotton
crop for three years in Marathwada region in terms of cost benefit
analysis comparable to last three years work done by coromandel
international limited. So the task is to see the last year sales,
development activities etc and to compare with the expected sales,
development activities. Moreover what innovative techniques will be
used for achieving expected sales growth. We have to also keep this
fact in mind that ultimately goal of financial growth will be achieved.

Therefore, the project was undertaken with following objectives in

mind:

1) To study and analyze the Marathwada region completely and to

derive the importance of WSB in Cotton crop.
2) To find out area of improvement, if any in the system
3) To determine the importance of WSB in Cotton crop.
4) development activities done by our company in the past three years
in the particular area. Develop plan for next three years in the same
area and to compare that with the previous figures.
5)to give proper schedule, recommendations and innovative ideas to
improve the sales of WSB in the progressive years and finally to derive
it as cost benefit to the company.

About area

4
Marathwada:

Marathwada is the region comprising the eight districts of (divisional

headquarters) Jalna, Aurangabad, Parbhani, Hingoli, Nanded, Latur,
Osmanabad and Beed. Was once part of the erstwhile kingdom of the
Nizam of Hyderabad.

But as per our company districution , Marathwada division consistes of

Aurangabad, Jalna, Buldana, Jalgaon, Parbhani, Hingoli , Nanded &
Latur.

5
This area economy highly dependable on agriculture and major crops
grown in this area are Cotton, Soyabean, Jowar, Miaze, Bajra, Tur,
Gram and vegetables. Moreover in horticulture crops sweet orange,
banana, sugarcane and very less area covered under grapes as well.

For irrigation people are mainly dependent upon rain water. Though
net sown area in this region is 48.15 lac hac. Out of which net irrigated
area is 6.39 lac hac. But in actual taotal capacity of the area is 70.12
lac hac for sowing and 7.91 lac hac for irrigation.

Main hurdles for this are illiteracy, lack of infrastructure , traditional

way of farming etc.

Like in current year 2009-10, ain was delayed by 2 months, so farmers

could not grow their crop. That’s why the area of sowing decreased,
moreover yield of the crop also reduced to minimum.

6
 The situation of rainfall in the present year 2009-10 can be easily
predict out from the rain fall data till November 2009.

Figure; Rainfall data Analysis of Marathwada region

June To
October - 2009 Nov-09 June To November - 2009
June To
Normal Actual Normal Till Normal Actual Sept
Rain Rain Rain Previou Progressive Rain Rain % To Normal
District Fall Fall Fall s Day Total Fall Fall Normal Rainfall
Jalgaon 702.4 583.9 20.3 128.3 128.3 722.7 712.2 98.5 663.3
A'bad 675.3 553.5 19.3 135.5 135.5 694.6 689 99.2 623.6
Jalna 688.1 564.1 22.2 64.1 64.1 710.3 628.2 88.4 634.1
Latur 788.6 526.4 25.4 24.3 24.3 814 550.7 67.7 725.3
Nanded 943.8 509.9 15 39.8 39.8 958.8 549.7 57.3 882.9
Parbni 776.7 616.2 19.1 36.1 36.1 795.8 652.3 82 721.7
Hingoli 884.8 603.1 20.6 52.2 52.2 905.4 655.3 72.4 838.5
Buldhana 713 630.8 23.2 106.7 106.7 736.2 737.5 100.2 668.1
1044.
state avg 1175.3 957.4 21.5 87.3 87.3 1196.8 7 87.3 1109

7
 About Product

Water Soluble Fertilizers

Water soluble fertilizers are the fully soluble fertilizers in soluble form.

These are the fertilizers with low salt index and have high contents of
primary nutrients. They are different from conventional complex
fertilsers in various aspects . some are as under:

W a te r S 8
 Different grades of water soluble fertilizers of Coromandel
International Limited

Advantages of Water soluble fertilizers are :

1. Provides a source of immediately available plant nutrients.

2. Particularly suitable for fast growing field, vegetable and nursery
crops.
3. No leaching, No groundwater contamination
4. No wastage - cost saving
5. WSF improve the quality of final produce
 Colour
 size
 keeping quality/shipping quality
 Can be applied to fruit and other crops even nearing maturity

9
Mode of application of water soluble fertilizers are:

Water S
There occurs a need for water soluble fertilisers because of the various
limitations of soil application fertilisrers. Various plant factors like root
inactivity, damage, insect pest infestation and disease etc. And the
only possible solution for the above mentioned problems are use of
water soluble fertilisers.

Foliar fertilisation is found to be an effective way to apply additional

nutrients to crop when the supply of the nutrients is restricted because
of various factors.

Advantages of foliar feeding over soil application

o Immediate results

Fertiga
o Prolong bloom
o Increase crop yields
o Increase storage life of food crops
o Boost growth during dry spells

10
o Increase cold and heat tolerance
o Increase pest and disease resistance
o Maximize plant health and quality
o Help the internal circulation of the plant

11
Various grades of water soluble fertilisers for Coromandel
International Limited

12
 Advantages of Gromor Spray 19.19.19

• In the initial stages of plant growth NPK are required in the

balanced form
• Soil fertilisers are not fully utilised by the plant and crops always
shows hunger for nutrients.
• So Foliar application of Gromor Spray 19.19.19 provide the
balanced nutrition to the crop in the early growth period/ pre
bloom period.
• Most suitable formula to enhance the vegetative growth.
• Contains the balanced ratio of NPK.
• Provide balanced nutrition to the crops in the early growth
stages.
• Helps in increased branching
• Increased flowering

13
 G
Gromor Spray-K (13.0.45)

14
 Potassium in physiological processes

1. Activates more than 60 enzyme systems

2. Aids in photosynthesis
3. Favors high energy status
4. Maintains cell turgor
5. Regulates opening of leaf stomata
6. Promotes water uptake
7. Regulates nutrients translocation in plant
8. Favors carbohydrate transport and storage
9. Enhances N uptake and protein synthesis
10.Promotes starch synthesis

Gromor Spray SOP 0.0.50

15
 • Rich Source of Potash and Sulphur.
• Most effective source of supplying K to Chloride sensitive crops
like Fruits, Vines, Tobacco, Potato Veg. etc.
• Good to enhance the quality and shine of the crops

WSF Application timing

Stage Days Product

Initial growth 15 – 45 days 19:19:19

Flowering time 45- 75 days 13:0:45

Maturity >100 days 0:0:50

Stage

General Recommendation for Using Gromor Spray fertilisers on

crops

Stage of the crop Recommended GradeBenefits

16
Vegetative / new flush Gromor Spray □ Enhanced flowering
emergence/Flowering 19.19.19 □ Provides balanced nutrition
Stage to crop during growing phase
Flowering /fruit set Gromor Spray K □ Acts as flowering & fruiting
stage 13.0.45 booster
□ Promotes flower bud
opening and fruit set
□ Increases the crop
resistance to pests
and diseases
□ Satisfies hidden hunger
of potash in crops
Fruit development Gromor Spray SOP □ Increases the size of the fruit
Stage 0.0.50 □ Satisfies the hidden hunger
of potash in crops during fruit
development
□ Increases the shining,
quality and shelf life of fruit crops

17
 Data Analysis & Results

As the topic of my project is “Develop marketing plan for WSF in

Marathwada for cotton for 3 years along with cost-benefit analysis”. So
while going for data analysis and results of our interpretations we
have to go deeply through various aspects.

As there are many water soluble grades available in market, so just for
assumption I am taking 19:19:19 foliar spray for my study.

Average sowing and potentiality of the area

Avg. Sowing area of Potentiality @ 2.5

Year cotton Kg/ha

2007-
08 45876 114690
2008-
09 47654 119135
2009-
10 48200 120500

Now we can see it clearly that the total potentiality of waters soluble
for all crops in Marathwada region is more then 12000 MTs. This is
consolidated for all crops.

Even we assume cotton as the major crop in Marathwada territory,

and we take cotton area 60%, then also the potentiality of the WSB is
more then 7500 MTs.

Now this is the hypothetical figures, one cant think even to achieve
that amount of target. The major reasons are:

1) Penetration of the product.

2) One time use of product by many farmers. They didn’t use it
again in their life.
3) Awareness about the product.

18
But still the scope of WSB in marathwada region cant be declined.
Even if we take 25% possibility of WSB sale in Marathwada, ecen then
the figure is near about 2700 MTs.
Now lets take note of the current year sales of all companies in
Marathwada region for year 2009-10.

Market size for WSB for 2009-10

Coromandel Juari RCF Deepak Others Total

Aurangabad 178 113 122 83 55 551
Nanded 183 55 43 37 62 380
Jalgaon 160 108 130 103 225 726
Latur 60 50 18 55 9 192
Total 581 326 313 278 351 1849

Now we can very well see that out of the total potentiality of
12000MTs, consolidated sales of all companies in my area is less then
200 MT, i.e. 17%only.

Now our last 3 years sales i.e. 2007-10 is shown in chart in annexures
page. When we compare cost of WSB with profit, the graph will be as
shown below. From that graph it is clearly shown that expenses from
the year 2007-08 to 2008-09 are inceraded, while there is no change
in the profit figures. Moreover expenses from the year 2008-09 to
2009-10 are decreased with slightly change in the profit figures.

19
 Figure: Expense VS profit graph of previous 3 years

When we make graph of expenses VS profit for next consecutive years

from 2010-13, there is a little variation in the profit figures.

Figure: Expense VS profit graph of next 3 years

Now while comparing expenses and profit of previous and expected

sales of WSB, we can clearly see with this graph that we will lower
down the expenses, but will increase the profit to a great extent.

Detailed chart of this calculation will be shown in annexure.

20
Figure: Previous VS Expected sales profit/expense comparison

21
 SWOT Analysis

Strengths of our products:

1) Excellent quality.
2) Good packaging.
3) Good trust of farmers and distributors.
4) Good margin to dealers and retailers.
5) Availability in different grades.
6) Quickly fulfill demand and supply gap.

Weakness of our products:

1) High costing as compared to competitors.

2) Very less fertilizers supply in my area.
3) Undercutting of products by dealers/ retailers.
4) Not well known brand.

Opportunities for our products:

1) As it is a very potential market of 12000 MTs and consolidated

sales for all companies in 2000 MTs only, so there is a great
potentiality for increase market share.
2) With expected change in fertilizers policy , more farmers will go
for WSB instead of Complex fertilizers.
3) With extensive market development activities we can definitely
achieve the maximum market share of the product.

Threats for our products:

1) No departmental support.
2) Linking issues.
3) Undercutting of products by dealers/ retailers.
4) Leading fertilizers suppliers are bringing many WSB grades in
cheaper rate.
5) Local manufactures are making poor quality WSB products, so
they may deteriorate the market.
6) Linking of our products by other companies product.

22
 Recommendations & conclusion

As we know that the total potentiality of Marathwada region is 12000

MT, and total sales of all companies in this region is 2000 MT only. But
still we are the leading players in this area.

So only recommendation is that we need good support from

departmental, dealer, farmers and company side.

I request you to please do separate our promotional budget for SND,

Organic and fertilizers. This is only because of the fact that as we have
to concentrate on different product wise, so budget should also be
separated.

I also request you to organize product wise seminars for dealers,

retailers, farmers, PT, MO and for all the staff of Coromandel.This will
help us to get more aware about latest technologies and queries.

Literature and promotional things should be available in time, In local

and common language.Like this year we didn’t get posters and
literatures for 28:28:00 etc in time. Moreover many literature were
printed in English/Hindi rather then Marathi.

In the end I conclude that if enough support will be provided from

Higher management team, Product team then achieving bigger targets
will not be impossible.

23
Annexures:

Land utililisation Statistics (00 Ha): Cotton In Marathwada

Distri Net Gross net gross % gross

ct sown sown Irigated irrigated irrigated

Jalga
on 8501 13057 1558 1454 11.1
A'bad 6937 11065 1557 1297 11.2
Jalna 5711 7325 739 984 13.4
Latur 5181 7315 560 756 10.3
Nand
ed 7048 8313 649 938 11.3
Parb
ni 4838 8635 441 791 9.2
Hing
oli 3292 5255 509 764 14.5
Buldn
a 6692 8459 379 436 5.2

Area/Production/Yield figures 2006-07

Area in 00 Production in 00 Yield in

District Ha MT lint
Jalgao
n 4160 9485 388
A'bad 3061 6898 383
Jalna 2675 6491 413
Latur 18 27 255
Nande
d 288 2730 223
Parbni 1981 5445 467
Hingoli 749 2711 615
Buldna 2492 5549 379

24
 Area/Production/Yield figures 2007-08

Distric Area in 00 Production in 00 Yield in

t Ha MT lint
Jalgao
n 4160 9480 391
A'bad 3061 6901 383
Jalna 2675 6495 413
Latur 18 31 256
Nande
d 288 2730 223
Parbni 1981 5446 470
Hingoli 749 2719 167
Buldna 2492 5569 380

Area/Production/Yield figures 2008-09

Distri Area in Production in Yield in

ct 00 Ha 00 MT lint
Jalga
on 4160 9480 396
A'bad 3061 6904 389
Jalna 2675 6496 413
Latur 18 32 256
Nand
ed 288 2732 223
Parb
ni 1981 5447 472
Hing
oli 749 2719 167
Buldn
a 2492 5570 381

Area/Production/Yield figures 2008-09

Distri Area in 00 Production in 00 Yield in

ct Ha MT lint
Jalga
on 4160 9480 396

25
 A'bad 3061 6904 389
Jalna 2675 6496 413
Latur 18 32 256
Nand
ed 288 2732 223
Parbn
i 1981 5447 472
Hingo
li 749 2719 167
Buldn
a 2492 5570 381

June To
October - 2009 Nov-09 June To November - 2009
June To
Normal Actual Normal Till Normal Actual Sept
Rain Rain Rain Previou Progressive Rain Rain % To Normal
District Fall Fall Fall s Day Total Fall Fall Normal Rainfall
Jalgaon 702.4 583.9 20.3 128.3 128.3 722.7 712.2 98.5 663.3
A'bad 675.3 553.5 19.3 135.5 135.5 694.6 689 99.2 623.6
Jalna 688.1 564.1 22.2 64.1 64.1 710.3 628.2 88.4 634.1
Latur 788.6 526.4 25.4 24.3 24.3 814 550.7 67.7 725.3
Nanded 943.8 509.9 15 39.8 39.8 958.8 549.7 57.3 882.9
Parbni 776.7 616.2 19.1 36.1 36.1 795.8 652.3 82 721.7
Hingoli 884.8 603.1 20.6 52.2 52.2 905.4 655.3 72.4 838.5
Buldhana 713 630.8 23.2 106.7 106.7 736.2 737.5 100.2 668.1
1044.
state avg 1175.3 957.4 21.5 87.3 87.3 1196.8 7 87.3 1109

Cost benefit analysis 2007-08 Cost benefit analysis 2008-09 Cost benefit analysis 2009-10

Mkt dvlpmnt program cost Mkt dvlpmnt program cost Mkt dvlpmnt program cost
Farmers seminar 15000 Farmers seminar 25000 Farmers seminar 40000
Jeep campaigh 150000 Jeep campaigh 200000 Jeep campaigh 260000
PT 100000 PT 150000 PT 200000

26
Farmers scheme 0 Farmers scheme 0 Farmers scheme 0
Printing & media 100000 Printing & media 100000 Printing & media 100000
Demonstration 5000 Demonstration 5000 Demonstration 5000
Dealer meet 50000 Dealer meet 50000 Dealer meet 45000
Retailers meet 50000 Retailers meet 50000 Retailers meet 50000
Total 470000 Total 580000 Total 700000

market dev cost 470000 market dev cost 580000 market dev cost 700000
Target 135 3480 Target 258 2250 Target 580 1207

Basic price 60000 Basic price 80000 Basic price 60000

Primary freight 1000 Primary freight 1000 Primary freight 1000
Sec Transportation 1000 Sec Transportation 1100 Sec Transportation 900
Incentive to MO 1000 Incentive to MO 1000 Incentive to MO 1000
Market dev cost 3480 Market dev cost 2250 Market dev cost 1207
incentive to PT 100 incentive to PT 100 incentive to PT 100
Total 66580 Total 85450 Total 64207

Cost benefit ratio Cost benefit ratio Cost benefit ratio

Sales cost 85000 Sales cost 105000 Sales cost 85000
Expences 66580 Expences 85450 Expences 64207
Profit 18420 Profit 19550 Profit 20793

Net profit @ 135 Net profit @ 258 Net profit @ 580

MT 2486700 MT 5043900 MT 12059940

Cost benefit analysis 2010-11 Cost benefit analysis 2011-12 Cost benefit analysis 2012-13

Mkt dev program Mkt dev program

cost Mkt dev program cost cost
Farmers seminar 50000 Farmers seminar 60000 Farmers seminar 65000
Jeep campaigh 300000 Jeep campaigh 325000 Jeep campaigh 350000
PT 500000 PT 525000 PT 550000
Farmers scheme 50000 Farmers scheme 60000 Farmers scheme 70000
Printing & media 150000 Printing & media 175000 Printing & media 200000
Demonstration 10000 Demonstration 10000 Demonstration 10000
Dealer meet 50000 Dealer meet 50000 Dealer meet 60000
Retailers meet 50000 Retailers meet 50000 Retailers meet 60000
Total 1155000 Total 1255000 Total 1365000

market dev cost 1160000 market dev cost 1255000 market dev cost 1365000
Target 800 1450 Target 1000 1255 Target 1250 1092

27
Basic price 60000 Basic price 60000 Basic price 60000
Primary freight 1000 Primary freight 1000 Primary freight 1000
Sec Transportation 1000 Sec Transportation 1100 Sec Transportation 1150
Incentive to MO 1000 Incentive to MO 1000 Incentive to MO 1000
Market dev cost 1450 Market dev cost 1255 Market dev cost 1092
incentive to PT 100 incentive to PT 100 incentive to PT 100
Total 64550 Total 64455 Total 64342

Cost benefit ratio Cost benefit ratio Cost benefit ratio

Sales cost 85000 Sales cost 85000 Sales cost 85000
Expences 64550 Expences 64480 Expences 64342
Profit 20450 Profit 20520 Profit 20658

Net profit @ 1000 Net profit @ 1250

Net profit @ 800 MT 16360000 MT 20520000 MT 25822500

28