“Pre Sale Campaign on Arize Hybrid Rice”

Presented by:Saurabh Kumar

Post Graduate Diploma In Management- Agriculture ICAR- National Academy of Agricultural Research Management

Better Rice Better Life

Flow of Presentation

Global and Indian Seed Scenario

Company overview

Objectives

Methodology & Sample size

Company Product’s Details

Promotional Activities

Analysis of Retailer survey

Analysis of farmer survey

Key learnings and Suggestions

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2009 2010 2011 2012 2013 2019E0

10

20

30

40

50

60

70

80

90

2731

3544 45

83

Year

US$

bn

Global & Indian Seed Market

CAGR(2009-13) :14%

China India Indonesia Bangladesh Viet Nam0

50

100

150

200

250

30.342.4

13.4 11.4 7.7

205.9

105.8

69 50.443.6

67.7

24.2

51.3 44.256.3

Area Production yield

Source- Agricultural-Statistics-At-Glance2014 & AURUM

(ISF) estimates the global seeds market size at US$45 bn in 2013

China and USA account for ~50% of the market despite of only 20% arable land

Indian market is estimated to be 4% of the global market despite having 11% of the global arable area.

Value of domestic market is $2000 million(ISF)

• The composition of seed industry, by volume of turnover has reportedly reached ratio of 60:40 between private and public sector

Area -M Ha Production- MT Yield- Kg/Hectare

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2010 2011 2012 2013 2014 2015E0

20

40

60

80

100

120

140

160

6075

96105

120135

INR

bn

Indian Seed Market

Global seed Market

CAGR(2010-14): 19%

World Rice Area, Production & Yield

Global Trends impacting Rice farming

RICE PRODUCTION

+30%of 2010 production

Increase of 135 millionby 2030

POPULATION GROWTH

9.6 billion people in 2050

7 billion people on the planet today

HECTARES OF FARMLANDPER CAPITA

1950: 0.522010: 0.20

2050: 0.15

HUNGER AND POVERTY

1 in 8 goes hungry today

LABOR SHORTAGE

Industrialization, Urbanization and aging population

More productivity is needed, especially in India

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Source- Bayer Report & USDA

Company Profile

• Bayer is a Life Science company with a more than 150-year history in the areas of health care and agriculture (Established in 1863)

• Global headquarters are in Leverkusen, Germany.

• The Bayer Group comprises around 307 consolidated companies in 77 countries throughout the world.

• In 2015 valued the Bayer brand at €6.3 billion.

• Bayer Group had 116,800 employees worldwide.

Bayer in Asia Pacific Region

• 12 Billion Dollar Sales• 28800 Employee• 55 Subsidiaries• In India, Established in 1896 (120 Year

Mumbai)

Baye

r Gro

up Pharmaceuticals

Consumer Health

Crop Science

Animal Health

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Bayer CropScience

Complete Crop Solution

Bayer CropScience is a sub group of Bayer Ag ,is one of the world’s leading innovative crop science companies in the areas of seeds, crop protection and non-agricultural pest controlCrop Protection comprises of Herbicides,Fungicides,Insecticidees and Seed TreatmentEnvironmental Science deals with Non Agricultural pest and weed control products where as Bioscience business unit focuses on Seeds and Plant traitsWith 36 production and packaging sites Total sale are:Crop protection-$bn 7.52

Fungicides

Herbicides

Insecticides

SeedGrowth

Seeds

Key Crop:-• Rice • Cotton• Fruit & Vegetable• Corn • Oil Seed• Wheat • Sugarcane• Sugar beets• Soybeans

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Project Objectives

To plan and Implement the brand promotional activities for “Arize” Hybrid Rice.

To map the Perception of Company at Dealer Level and effectiveness of all the promotional activities.

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To analyse the perception of farmers about adoption of hybrid rice.

All Bayer Rice Hybrids are sold under the "Arize®" umbrella brand name.Variety Characteristics

Arize® 6444 Gold

•India’s highest selling hybrid rice•Resistant to Bacterial Leaf Blight (BLB)•Consistently yielding 25-30% higher than popular inbred varieties•Medium duration (135-140 days)•Higher number of productive tillers per plant (12-15)•Wider adaptability•More than 70% milling•Suitable for Direct Seeded Rice (DSR) system•Notified by Government of India

Arize® 6129 Gold

•India's first BLB resistant Short duration hybrid•Consistently high yield 20-25% more than the other high yielding varieties of same duration•Early duration Hybrid (115-120 days) with Maximum productive tillers•High grain filling>90% & more grain per panicle(275-300)•Less water requirement & wider adaptability•Fits well in vegetable/Potato & wheat crop rotations

Arize® Idea

•Mid-early duration (125-130 days)•20-25% more yield than other high yielding varieties•Short Slender (SS) grain having excellent cooking quality

Company ‘s ProductsBe

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• Data collection tools – Interview Schedule and Questionnaire

• Data types: Primary and Secondary data

• Choice of survey location- purposive sampling

• Choice of farmers- simple random sampling

• Targeted crop:-Paddy

• Location :- Distt Kanpur Nagar and Kanpur Dehat (Uttar Pradesh)

• Sample size -146 farmers and 44 dealers from 2 districts

Methodology

• Data Analysis-• The data collected were properly decoded and used for analysis. The

data were analysed in MS Excel. Graphical tools like bar graph, pie charts etc. were used.

• Limitations of the Study-• There may be bias in response from the respondents(eg-Exact sale

value).

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Location selected for studyKanpur Dehat Kanpur Nagar

• Geographical area of the district is 3.02 lakh ha• Population- 15.63 lakh• major crops are wheat, paddy, maize, pulses, oilseeds and potato• Area under paddy- 53868 hectare

• Total geographic area is about 2.99 lakh ha• Population - 41.68 lakh• major crops are wheat, paddy and maize• Area under paddy- 38229 ha

Source: http://agriculture.up.nic.in/Bette

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Promotional ActivitiesSNo. Different promotional Activities for

pre saleSNo. Different promotional Activities

for pre sale

1. Ghar Ghar Dastak 7. Rampat & Rani Bala Big Show

2. Small Group farmer Meeting 8. Kala Jatha Show

3. Organize farmer meeting 9. Tele Campaign

4. Jeep Campaign with Magic Show 10. Point of Purchase Display

5. Big Magic show 11. Dealer & Retailer meetings

6. Give Awards to Progressive Farmer 12. Night Meetings

• All the above mentioned plans were implemented in the entire Kanpur territory near about more then 120 villages for Arize Hybrid rice.

• Plan and Implement the brand promotional activities:-

List of potential villages are prepared. List of potential dealers are prepared.

Progress of work is monitored regularly. Visit plans are made accordingly

Effective resource utilization

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Ghar Ghar Dastak• Selection of small village with high potential.• Visit Ghar to Ghar (Home) of Sarpanch and

some big progressive farmer.• Telling about product and educate them for full

crop solution (Bayer Labhsutra)• Convincing them to take a demo plot in his field. Small Group farmer Meetings• These meetings were unorganized, number of

farmers usually 20-25.• Giving company’s message and educating them

for full crop solution.• Procedure :-

Select Village Progressive farmer

Deliver message Feedback

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Cont…

Organize farmer meetings• Selection of Big village with high potential.• Invite the farmer 2-3 days in advance.• Tell about product and educate them for full

crop solution (Bayer Labhsutra)• Some time awards are given to the progressive

farmer.• Number of farmer 50-70

Jeep Campaign with Magic Show • Pre recorded message are played• Small meeting were also conducted• Preparation of best route map • Small Magic show for entertainment of

farmers• It helps to cover remote area.

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Big Magic show• Selection of Big village or market with

high potential.• Invite the farmer 0f 10-12 villages .• Telling about product and educate them

for full crop solution (Bayer Labhsutra)• Awarded the progressive farmer.• Number of farmer around 1000.

Rampat & Rani Bala Big Show & Kala Jatha Show

• Entertainment of farmers • Selection of big market. • Invite the farmer of 20-25 villages.• Awarded the progressive farmer.• Number of Farmer more then 1200.

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• Tele Campaign “02233598484” Toll Free Number

• Calls and messages are given to farmers in order to recall them about Arize, so they can go and ask from dealer.

• Point of Purchase Display Poles, Dealer and retailer shop decorated with our banner and poster. Arize gate provided to big retailers.

• Dealer & Retailer meetings• Awards for the Progressive

Farmers ( Arize SarTaj)

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

73%

16%

34%

80%

45%39%

Radio

Advertise-ment

Campaign

Van

Pre sale Farmer Meeting

Post sale Field Day

With Govt. dept.

Best tool for promotion of hybrid rice

Field

Demonstration

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• Pre-sales farmer meetings, Field demonstration and post sales field days are the best tools for promotion of the hybrid rice in the region.

Perception of Retailers about effectiveness of Promotional Activities

Objective-2

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0%20%40%60%80%

18%

64%

39% 41%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

43%

55%

45% 43%

68%

Main Constraints in sale of hybrid paddy seeds

Suggestions for improving the sale of hybrid paddy seed

• Main Constraints in sale of hybrid paddy sale is that it is more expensive followed by less cooking quality.

• Main Suggestion for improving sale is more field demonstration followed by high incentive to dealer.

Cont…

42%

15%15%

10%5%

13%

2014Bayer Dhanya Kaveri Pioneer Rasi Other

46%

16%

14%

10%4%

11%

2015Bayer Dhanya Kaveri Pioneer Rasi Other

Comparison of market share of various companies

Margin offered

Credit period offered

Better demand of product

Special offers/gifts Transparency in dealing

Promotional activities

Quality of product

0.01.02.03.04.0

Retailer’s preference of attributes while dealing with company

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• Bayer is the market leader with more than 40%

market share.

• Local players are also doing well because of low

cost seeds

• Quality and better demand of product are

preferred attributes by retailers.

Cont…

4 being“ Most Important”1 being “Least important”

Irrigation Status of Kanpur Region(surveyed area): -

• Out of the total surveyed area, 80-85 % area was under Irrigation.

Study was conducted in major paddy production area.

In this area most of area covered by Bore well Tube well and canal.

Varietal Distribution of Rice in surveyed Region

Hy-brid; 86%

OPV; 13%

Paddy Cultiva-tion

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26%

17%29%

28%

No of Respondents = 38Narendra 359 Pusa Basmati Kranti other

Total Area = 121 acre

45%

18%

13%

13%

11%

Bayer Dhanya Kaveri pioneer other

Hybrid Cultiva-tion

Total Area = 822.5 acreOPV Cultivation

In OPV cultivars, top three varieties have about 72% share .

In Hybrid Cultivars Arize (Bayer) is the market leader with 45% followed by Dhanya and Kaveri.

Objective-3

Factors influencing the purchase of rice seeds

14%

49%

29%

8%

Every Year Every Two Year Every Three Year Not at All

Seed Replacement Rate

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Reasons for growing multiple varieties • Fellow farmers and dealers have tight hold on purchase of rice seeds.

• Most of the farmers replace seeds every two year

• Farmers go for multiple varieties due to different land type & to mitigate the risk.

0%

10%

20%

30%

40%

50%

60%

70%

80%

73%62%

49% 53%

23%

No of respondent = 146

Fello

w Farm

er

Marketing Campaign

Govt. Agency

Company offica

l

Dealer

Want to tr

y something new

0%20%40%60%80%

82%

38% 50%23%

79%

18%

No of respondent = 146

Cont…

Repitative Grower; 88%

Drop Out; 12%

No of respondent = 146

Cultivation of Hybrid Rice

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0%20%40%60%80% 63%

11%

82%

45%

74%

26%

No of respondent = 129

Reasons for repetitive hybrid rice cultivation

Commodity price

Yield advantage

Better stress tolerance

Pest and Disease resistance

Good cooking quality

Less fertilizer requirement

0.0

2.0

4.0

Perception about Hybrid Rice

No of respondent = 146

• Repetitive grower is more than 80%

• Yield advantage is the main reason to continue growing Hybrid rice.

• Farmers’ perception about hybrid rice is yield advantage and less fertilizer requirement

Cont…

4 being“ Most Important”1 being “Least important”

45%

55%

Rice Miller Local Trader

No of respondent = 146

Selling pattern of rice

Up To- 15 %; 47%

15-30%; 26%

30-35%; 14%Above 50 %; 12%

Up To- 15 % 15-30% 30-35% Above 50 %

No of respondent = 118

Self-Consumption of Rice

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Low Price in

Mark

et

Inbalanced use of in

put

Lack o

f awerness

More expensiv

e

Shorta

ge of w

ater

lack o

f qualit

y seed/p

oor acce

ss 0%

10%20%30%40%50%60%70% 60%

18%13%

45%

15% 12%

Constraints in cultivation of hybrid rice

Low co

st se

ed

Good Cooking Quality

weather r

easitance

Training for n

ew Technology

Pest & Dease

se Rest.

0%10%20%30%40%50%60%70%

55%62%

43%

23% 24%

Suggestions for improving the cultivation of hybrid rice.

Cont…

More Concentration on Demonstrations and field visits.

Frequent visit by field officer to farmers and dealers, pre-sale and post-sale both.

Take an initiative to train the farmers for new technology.

RecommendationBe

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Key Learning’s An experience to work with a top class MNC.

Work Culture and Time management.

How to organize a farmer meeting & survey/study research.

Interaction with People at different geographic locations.

Brief knowledge about Seed market and Industry

ThankYou!

Better Rice Better Life