consumer buying behavoiur in respect of godrej products
DESCRIPTION
consumer buying behaviourTRANSCRIPT
1. INTRODUCTION
Dairy enterprise plays a very important role in the rural economy of India. The returns
from small holdings can be maximized by proper combination of dairy enterprise with
crop production. Commercialized Dairy farming for producing more milk round the year
of high quality is the only solution for the viability of Dairy Industry in the present
National and International Dairy Scenario. Modern dairying is geared to maximum
production as opposed to traditional dairying.
India ranks first in number of animals and in production of milk in the world. In 2003-04,
the production of milk in the country is 88.1 million tones. India accounts for 15% of
world’s milk production and its production is growing at the rate of 1.1% per year. In this
production, the contribution of crossbred cows is significant. As per the last 17 th livestock
census, crossbred cattle constitute 13.3% of the total cattle and 86.7% are indigenous
cattle. Out of total livestock in the country, 38.2% are cattle and 20.2% are buffaloes.
There is a tremendous increase in the crossbred cattle in the country i.e. 22.8% but the
indigenous cattle declined by 10.2%during the inter-censual period from 1997 to
2003.The total cattle population has decreased by 6.9% and the buffalo population has
increased by 8.9% during the period.
Dairy farming forms an essential part of Gujarat's rural economy.
Gujarat has been known as the 'milk pail' of India. Dairying gives
regular and steady income to farmers next to agriculture and it is the
best vocation to achieve higher growth of rural economy. Most of the
rural people especially women; eke out their livelihood by rearing
milch animals and supplying milk to the Milk Cooperatives. In 2003-04,
the milk production in the state is 6421 thousand tonnes. As per the
last 17th livestock census, conducted in 2003, the state had 4.01% of
cattle and 7.29% of buffaloes of the country. In Gujarat, the crossbred
cattle have increased heavily by 86.8% and indigenous cattle have
also increased by 5.9% during the period between 16th and 17th census.
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There is an increase of 10% in cattle population and buffalo population
has increased by 13.6% during the inter-censul period.
Indian livestock feed industry, though quite old, is still in a very
primitive stage, as it is supplying only about 5% for cattle feed. India
has an organized feed compounding industry. In the past 30 years, the
annual production of compounded feed has gone up to over 3 million
tonnes from 40,000 tonnes, the bulk being accounted for by the
western and southern parts of India. However, average milk yield at
300 kg per lactation is abysmally low due to severe genetic erosion
and fodder scarcity. In India, livestock is an integral part of crop
farming, and resource use in mixed farming (crop + livestock) is often
highly self-reliant, as nutrients and energy flow from crops to livestock
and back. There are two major factors, which determine the demand
for compound feed in India. Firstly size of livestock population and
secondly feed consumption per animal.
Feeds that are formulated largely utilize agro-industrial by-products and other non-
conventional materials. However, this production meets only a small percentage of the
total feed concentrate requirements, even for the organized dairy farming sector in the
country. This gap is likely to widen by 2010 when the requirement of cattle feed
concentrates would be around 5.4 million tonnes. Godrej Agrovet Ltd., a leading player
in the animal feeds, manufactures a range of animal feed products for cows, buffaloes,
poultry, fish and shrimps.
PROBLEM STATEMENT
GAVL is producing advanced compound feed, which is fortified with essential nutrients;
higher Bypass protein percentage (i.e.18-22%), along with higher Bypass fat percentage
(i.e. 2-2.5%). It contributes to the milk and fat yielding capacity of the animal. Bypass
Protein Feed is a new generation cattle feed in India and is manufactured by a special
formulation. Bypass Protein Feed (BPF) contains a large percentage of solvent extracted
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protein meals, grain by-products, whole grains, molasses, minerals and vitamins. The
special feature of the formulation is that 65 per cent of the total protein in the feed is
rumen non-degradable protein.
Cattle Feed: BYPRO, a feed for high yielding milch cattle and buffaloes.
Buffalo Feed: MILK MORE special feed for Buffalo for high milk and butter fat
content.
GAVL feels that there is tremendous potential in tapping the cattle feed marketing in
Anand district. Marketing is a continuous process to address to the changing customer
needs and maintain consistency in the supply chain. Each product demands continuous
monitoring of consumer behavior to add value for effective marketing. With this
background this study was conducted on consumer behavior for cattle feed in Anand
district with the following objectives:
To determine the target buyers of cattle feed of Godrej Agrovet in Anand district on
demographic and behavioral basis.
To determine the role of women in decision making for cattle feed buying.
To examine the value propositions for cattle feed buying and Study the factors affecting
decision making for these products.
To study the extension activities undertaken by Godrej Agrovet limited and find out the
most suitable communication channel.
To identify the gaps between potential and actual market share for these products and
devise strategies for reducing these gaps.
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2. RESEARCH METHODOLOGY
INFORMATION REQUIRED
Data related to market size of cattle feed in Anand district.
Data related to penetration level of Raw material, compound feed and advanced
compound feed.
Data related to the feeding practices of farmers.
Detailed facts on perception of buyer.
Data related to role of women in decision making.
Detailed facts related to extension activities undertaken by the company.
Data related to acceptance and awareness of Godrej cattle feed among the
consumers.
RESEARCH INSTRUMENT
Information was collected with the help of structured questionnaire having both open and
closed-ended questions by interacting with farmers, dealers, distributors and company
officials etc.
SAMPLING METHOD
Judgmental sampling method was adopted to carry out the study.
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DATA SOURCE
Data were collected from both the sources primary as well as secondary.
Primary Source: Farmers, dealers, distributors and company officials etc.
Secondary Source: Co-operatives, Dairies, NDDB, GCMMF, Web sites, Magazines,
Publications.
AREA OF STUDY
Anand district of Gujarat. (Taluka-Khambhat,Petlad,Nadiad).
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Sample size
Farmers=134
Dealers=12
Distributors=3
Animals surveyed
o Cows=633
o Buffaloes=624
Breed of surveyed cows
Jersey = 455 HF = 127 Indigenous = 31
Number of milking cows surveyed = 457Number of non-milking cows surveyed 176
Number of milking buffaloes surveyed = 141Number of non-milking buffaloes surveyed = 110
Data Analysis
Simple arithmetic tools like average and percentage have been used along with graphical
presentations for fulfilling the objectives of the project.
Limitations
Small sample size of the farmers, dealers and distributors taken may not represent
the entire opinion.
Some farmers were giving misleading information about their milk production
and feeding practices.
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Due to the paucity of time most of the samples taken from various areas could
not be crosschecked.
3. Results and discussion
Market of Cattle feed in Anand
The market size of cattle feed in Anand district (Taluka: Khambhat, Nadiad, Petlad) of
Gujarat is approximately 5250 tonnes/month. This market potential is estimated on the
assumption that each dairy farmer is feeding his cattle on the basis of recommended
feeding practices i.e.1/2 kg of feed should be provided per liter of milk production. The
graph shown below depicts that the potential for cattle feed is highest in Undel i.e 1740
tonnes. The major reason for this is that the milk production of Undel is highest i.e.
348000 liters/month among all the surveyed villages. Other high potential villages are
Vadola i.e. 474 tonnes, Bamanva i.e.420 tonnes, Vasana i.e. 360 tonnes and Vaso i.e. 300
tonnes per month.
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Exhibit 3.1Market size of cattle feed in Anand district
Categorization of market for Compound feed and Advanced compound
feed
The survey reveals that the cattle feed in Anand district is composed of mainly three
types of feed. These are Raw material, Compound feed and Advanced compound feed.
Raw material: is the material, which is unprocessed and home mix material.
Compound feed: is processed material with some percentage of Vitamins and Minerals.
Advanced compound feed: is especially designed feed for the high yielding animals.
Mixing vitamins and minerals in it makes it up. Apart from it is having Bypass fat and
Bypass protein percentage for better yield and fat % in the milk.
Exhibit 3.2 depicts that in surveyed area the percentage of compound feed used in cattle
feed is highest i.e.59%. This is because AMUL is providing co-operative feed to the dairy
farmers; this co-operative feed is falls under the category of compound feed. The chart
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shows that raw material use is 37% and use of advanced compound feed is only 4% of
total cattle feed.
Exhibit 3.2 Categorization of cattle feed market
37%
59%
4%
RM
CF
ACF
RM: Raw material CF: Compound feed ACF: Advanced compound feed
Estimation of current market size for RM, CF and ACF:
According to exhibit 3.2 the existing cattle feed market is having three categories i.e.
RM, CF and ACF and their share is 37%, 59% and 4% respectively; so the available
market i.e 5250 tonnes of cattle feed has demand for 1942.5 tonnes RM, 3097.50 tonnes
CF and 210 tonnes ACF. The table 3.1 depicts the amount of RM, CF and ACF in the
current feeding practices in each surveyed village.
Table 3.1 Share of RM, CF and ACF
Village RM tones/month CF tones/month ACF tones/month
Undel 678.6 1026.6 75
Vadola 175.38 279.66 25
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Popatpura 119.88 191.16 12.96
Bamanva 155.4 247.8 16.8
Finav 66.6 106.2 7.2
Vasana 133.2 212.4 14.4
Sokhada 48.84 77.88 5.28
Nagara 28.8 141.6 9
Shekhdi 77.7 123.9 8
Noortalavadi 69.6 70.8 4.8
Pij 55.5 88.5 6
Vaso 111 177 12
Rampur 55.5 88.5 6
Deva 66.6 106.2 7.2
Nadiad surrounding 99.9 159.3 10.8
Total 1942.5 3097.5 209.64
Current Status of GAVL brands in Anand
The current status of GAVL in the surveyed talukas is 1100 kg in terms of sales. Exhibit
3.3 depicts that in the surveyed talukas GAVL is having highest sale in Khambhat taluka
i.e. 600 kg followed by Nadiad taluka i.e. 500 kg. The important feature of this graph is
that there is zero sales in Petlad taluka currently. This is due to less number of field staff
to take care of customers.
Exhibit 3.3 Current status of GAVL brands in surveyed area
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Share of different GAVL brands in current sales
GAVL is having three brands in cattle feed i.e. Milkmore, Bypro and HP pellet. Among
these Milmore and Bypro are the premium brands of GAVL.
Milkmore: a special feed for Buffalo for high milk and butter fat content.
Bypro: a feed for high yielding milch cattle and buffaloes.
HP Pallet: a regular feed for cattle.
Exhibit 3.4 depicts that the share of Milkmore is highest among all the brands i.e. 62%
followed by Bypro 24% in rest of 14% share lies with HP pellet in the surveyed area.
Exhibit 3.4 Share of GAVL brands in current sales
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B y p r o2 4 %
M M6 2 %
H P P a lle t1 4 %
Penetrated market of GAVL
The market, which is penetrated by GAVL brands, is distributed to surveyed area as
shown in exhibit 3.5. This is shown that highest sales of GAVL brands is in Undel village
i.e.23% followed by Vadola i.e.14%, Vasana, Nadiad surrounding and Pij i.e. 11% each.
Sokhada and Deva accounts for 9%each. Nagara and Bamanva are having 6% each of the
total current sales of GAVL brands in the surveyed area.
Exhibit 3.5 Penetration of GAVL brands
Users of MilkMore
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Milkmore captures its reported that in surveyed area highest market among all the GAVL
brands. Among the surveyed 134 farmers, the farmers who are using MM are 23%
followed by Bypro i.e. 2% and HP pellet i.e. 1%. Exhibit 3.6 depicts that the highest
percentage of Milkmore customers is in Sokhada i.e. 20% followed by Vadola i.e. 16%
and Undel i.e. 13%. In Bamanva, Vasana and Nagara customers are 10% in each.
Exhibit 3.6 Distribution of Milkmore users
Feed composition in Anand
Exhibit 3.7 depicts the feed composition in the surveyed area. It shows that highest share
goes to AMUL daan i.e. 45% followed by Maize cake 11%, Rice bran 10%, CSC 8%,
Maize Gluten 6%, Radhakishan daan 5%, MM 4%, Tur cuni and Broken rice 3% each,
cotton seed, Madhuram, Dhara daan and others 1% each. This shows that market of cattle
feed is highly fragmented as so many components with small market share except market
leader i.e. AMUL daan are there in the surveyed area.
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Exhibit 3.7 Composition of cattle feed in Anand
45%
11%8%6%
1%
10%
3%1%4% 1%1%1%3% 5%
AMUL
Maize cake
CSC
Maize bran
Maize glutin
Rice bran
Tur chuni
Cotton seed
MM
Broken rice
Madhuram
Dhara dan
Radhakishan
Others
Current feeding practices
Cattle feeding practices are very traditional. Farmers choose their own ingredients and
prepare their own formulations believing that by these means they are able to pay more
individual attention to their cattle. The bulk of the feed is being produced by un-
organized sector compressed of home and custom mixers.
Table 3.2 depicts the feeding pattern of all the surveyed villages. It shows that feeding
practices are not exactly same in each village but AMUL daan, Maize cake; CSC, Maize
bran and Rice bran are common components of cattle feed in each surveyed village.
While feeding of Tur chuni, Broken rice and Daan of local companies vary in surveyed
area.
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Table 3.2 Current feeding practices in surveyed villages
Unit kg/feeding
Village AMUL Maize cake CSC Maize bran Maize gluten Rice bran Tur chuniUndel 26 3.72 3 0.5 4 2.75 0.5Vadola 31.5 5.5 1 8.75 0 2.75 0Popatpura 27 2 0.75 1.5 0 1.25 0Bamanva 17.5 1.75 0 0.5 0 6 0Finav 20.5 2 1 0.5 0 6.5 0Vasana 17.5 10.25 0 0 0 10.75 0Sokhada 22 4.25 2.75 0.5 0 4.5 0Nagara 15 2.5 0.5 0.5 0.5 5.5 0Shekhdi 29.5 11 5.75 15 0 3.5 0Noortalavadi 6 10.2 1 5.2 0 2.5 0Pij 6.5 4.5 4.5 1.5 0 0 0Vaso 15.5 0.5 3 2.5 2.5 1 2.5Rampur 20 3.5 1 1 0 2.75 0.5Deva 19 7.5 11.5 0.5 0.2 10 0Nadiad surrounding 3 2 15.5 2 0 4 18
276.5 71.17 51.25 40.45 7.2 63.75 21.5
Village Cotton seed MilkMoreBroken rice Madhuram Dhara dan Radhakishan Others
Undel 0 2.2 0 0 0 0 0
Vadola 0 5 0 0 0 0 0
Popatpura 0 0 0 0 0 0 2
Bamanva 0 1.5 0 0 0 0 0
Finav 0 0 0 0 0 0 0.75
Vasana 0 3.5 0 0 0 0 0
Sokhada 0 6.5 0 0 0 0 0
Nagara 0 0 0 0 0 0 0
Shekhdi 1 1 0 3.5 4 0 4
Noortalavadi 3 1 0 4 1 12 3
Pij 0 1 0.5 0 0 0.5 0.5
Vaso 0 0 0 0 0 0 6.5
Rampur 0 0 1 0 0 3 2.2
Deva 1 2 1 0 0 3 2
Nadiad surrounding 0 4.5 4 0 0 0 8
5 28.2 6.5 7.5 5 18.5 28.95
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Determination of Target buyers of cattle feed in Anand
On demographic basis
Gender distribution
Exhibit 3.8 depicts the gender distribution of respondents of the current study. Total male
respondents are 72% and female respondents are 28% of total 134 respondents. The ratio
of male:female is 2.5:1. The highest male respondents reported from Vadola and
Noortalavadi i.e. 9 followed by Bamanva ,Sokhada and Nadiad surrounding area i.e. 8.
The important feature of this graph is that in Bamanva, Pij, Vaso and Nadiad surrounding
area only male respondents are reported. The highest female respondents reported from
Shekhdi i.e.7 followed by Undel i.e.6 and Vasana i.e. 5. This determines the participation
of male and female members in dairy farming in the surveyed villages.
Exhibit 3.8 Gender distribution of respondents
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0
Und
el
Vad
ola
Pop
atpu
ra
Bam
anva
Fin
av
Vas
ana
Sok
hada
Nag
ara
She
khdi
Noo
rtal
avad
i
Pij
Vas
o
Ram
pur
Dev
a
Nad
iad
surr
ound
ing
Per
cen
tag
e
M a le
F e m a le
Age distribution
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Exhibit 3.9 depicts that respondent of the current study falls under different classes of age
distribution. It shows that the highest percentage of respondents i.e. 48% fall under the
30-40 years class; followed by 22% in 20-30 years class, 16% in 40-50 years class and
14% in 50-60 years class. This shows that not only mature generation but also the new
generation is having participation in dairy management.
Exhibit 3.9 Age distribution of respondents
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0
Un
de
l
Va
do
la
Po
pa
tpu
ra
Ba
ma
nv
a
Fin
av
Va
sa
na
So
kh
ad
a
Na
ga
ra
Sh
ek
hd
i
No
ort
ala
va
di
Pij
Va
so
Ra
mp
ur
De
va
Na
dia
d s
urr
ou
nd
ing
Pe
rce
nta
ge
5 0 - 6 0
4 0 - 5 0
3 0 - 4 0
2 0 - 3 0
Education level
Exhibit 3.10 depicts the education level of the respondents. This shows that highest
number of respondents is uneducated i.e. 33% followed by the persons educated up to
10thstandard i.e. 18% and persons educated up to 5th standard i.e. 17%. Education of
decision maker decides the level of active participation of the respondents in modernizing
the dairy farming.
17 College of Agribusiness Management
Exhibit 3.10 Education level of respondents
0 %
1 0 %
2 0 %
3 0 %
4 0 %
5 0 %
6 0 %
7 0 %
8 0 %
9 0 %
1 0 0 %
Un
del
Vad
ola
Po
pat
pu
ra
Bam
anva
Fin
av
Vas
ana
So
khad
a
Nag
ara
Sh
ekh
di
No
ort
alav
adi
Pij
Vas
o
Ram
pu
r
Dev
a
Nad
iad
su
rro
un
din
g
U n e d u c a t e d u p t o 5 u p t o 8 u p t o 1 0 u p t o 1 2 > 1 2
Social class
In the surveyed area respondents are categorized in to 4 social classes. Upper class,
Upper middle class, Lower middle class and Lower class on the basis of social status
earned by the person not only in terms of high income or wealth earned but also by their
say in the local community. So, that this categorization is helpful in identifying Opinion
leader. An opinion leader is the person who can influence the purchase decision of the
other persons by having a good reputation in the society. Exhibit 3.11 depicts that Lower
middle class (41), Upper class (34) and Lower class (6), highest follows the percentage of
Upper middle class i.e. 53. The target customers of Upper middle class will be more
beneficial for the company as they have high disposable income as well as good
reputation in the local community.
18 College of Agribusiness Management
Exhibit 3.11 Social classification of respondents
Income from dairy business
The study reveals that dairy farming is the primary as well as secondary business for the
farmers. This can be decided on the basis of income they are earning from dairy business.
Exhibit 3.12 depicts that there is large variation in income earned by dairy farming. It is
reported that among 134 respondents 27% farmers fall in category of Rs.10000-20000
per month income earned from dairy business is highest. This is followed by 25%
farmers who fall under the category of those earning Rs.20000-30000 per month while
23% farmers fall under the category of those earning less than Rs.5000 per month. But
the unique feature is that there are 2% farmers who fall under the category of farmers
earning more than Rs.100000 per month from the dairy business.
19 College of Agribusiness Management
Exhibit 3.12 Income earned from dairy business
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0U
ndel
Vad
ola
Pop
atpu
ra
Bam
anva
Fin
av
Vas
ana
Sok
hada
Nag
ara
She
khdi
Noo
rtal
avad
i
Pij
Vas
o
Ram
pur
Dev
a
Nad
iad
surr
ound
ing
Per
cen
tag
e
> 1 0 0
9 0 - 1 0 0
8 0 - 9 0
7 0 - 8 0
6 0 - 7 0
5 0 - 6 0
4 0 - 5 0
3 0 - 4 0
2 0 - 3 0
1 0 2 0
5 1 0
< 5
Behavioral basis:
Attitude of farmers
Exhibit 3.13 depicts the number of customers buying products from a fixed shop or
according to their convenience. It’s shown that in all the surveyed villages; number of
customers buying products from a fixed shop is higher i.e.115 (86%) in comparison to
customers buying products according to convenience i.e.17 (14%). The number of
customers buying products according to convenience is highest in Vasana i.e. 38%
followed by Finav i.e. 30% of surveyed customers in these villages.
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Exhibit 3.13 Attitude of farmers for buying
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0U
nd
el
Va
do
la
Po
pa
tpu
ra
Ba
ma
nv
a
Fin
av
Va
sa
na
So
kh
ad
a
Na
ga
ra
Sh
ek
hd
i
No
ort
ala
va
di
Pij
Va
so
Ra
mp
ur
De
va
Na
dia
d s
urr
ou
nd
ing
Pe
rce
nta
ge
F ix e d s h o p
A c c o r d in g t o c o n v e n ie n c e
Reasons for buying from a fixed shop
There are several reasons that are affecting buying decision but the reasons for buying
from fixed shop can be categorized in certain categories. Exhibit 3.14 depicts that farmers
are buying cattle feed from a fixed shop as the highest percentage goes to credit
availability i.e. 39% followed by relationship with the dealer i.e. 21%, easy to reach i.e.
16%, quality 14% and any other reason accounts for 10%.
Exhibit3.14 Reasons for buying from a fixed shop
Wheigtage of reasons for fixed shop buying in surveyed villages21 College of Agribusiness
Management
The above-mentioned reasons have different weightage for different customers and vary
in surveyed villages as shown in exhibit 3.15.It shows that credit availability has highest
weightage in Skhada i.e. 45% followed by Bamanva i.e. 42%.
Exhibit 3.15 Weightage of reasons in surveyed villages
0%
20%
40%
60%
80%
100%
Un
de
l
Vad
ola
Po
patp
ura
Bam
an
va
Fin
av
Vas
an
a
So
kh
ad
a
Nag
ara
Sh
ek
hd
i
No
ort
ala
vad
i
Pij
Vas
o
Ram
pu
r
De
va
Nad
iad
su
rro
un
din
g
Credit availability Relationship Quality Easy to reach Other
Mode of buying
The study shows that market of cattle feed is credit-based market. The major reason is co-
operatives are providing cattle feed to the farmers and procure milk from them. These
dairies deduct the payment of cattle feed at the time of final payment to the milk
producers so there is no need to pay it in cash by farmers. Exhibit 3.16 depicts that the
number of farmers buying cattle feed on credit is higher i.e. 90 as compared to cash
i.e.44. This is highest in Shekhdi i.e. 12 followed by Noortalavadi and Undel i.e. 9 in
each and Vadola i.e. 8. The number of farmers buying on cash basis is highest in Vasana
i.e. 5 followed by Rampur, Deva and Nadiad surounding area i.e. 4.
22 College of Agribusiness Management
Exhibit 3.16 Mode of buying
User status
User status shows the different categories of the customers. The ex-users are the persons
who have used the product but due to some reasons they have stopped its use so after
finding solution for their problem these can also be converted to the regular customers.
First time users are also very important because if they find product good once, they will
convert as the regular customers of the product. Though any category can be of potential
users but the customers who have shown their keen interest falls under the category of
potential users. Exhibit 3.17 depicts ex-user i.e.25, regular user i.e.19; first time user
i.e.13 and then potential user i.e.11 highest follow the number of non-user i.e.53 in the
surveyed area.
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Exhibit 3.17 User status in surveyed villages
Readiness stage
The readiness stage shows the awareness and acceptance level of GAVL products among
the surveyed farmers. Its shown that 91% of the respondents are aware about the GAVL
brands and 27% of respondents are accepting GAVL brands as user. Exhibit 3.18 depicts
that the awareness about the Godrej cattle feed is present in all the surveyed villages.
Awareness level is highest in Undel i.e. 13 followed by Vadola i.e 12, Vasana i.e.11,
Noortalavadi, Sokhada and Deva i.e10 in each. The acceptance level shows the number
of the current users of GAVL cattle feed. Graph shows that number of current users is
highest in Vasana i.e.9 followed by Undel i.e.8, Vadola and Sokhada i.e. 6 in each,
Bamanva and Nagara i.e.4 in each. Presently, there is no user in Finav, Shekhdi and
Noortalvadi.
Exhibit 3.18 Awareness and acceptance level of GAVL brands24 College of Agribusiness
Management
Value propositions
The value proposition consists of the whole cluster of benefits the company promises to
deliver, its more than the core positioning of the offering. Basically, the value proposition
is a statement about the resulting experience customers can expect. The expectations of
the customers are shown in percentage in exhibit 3.19. Customers perceived GAVL feed
as standard brand i.e.35%, increase milk production i.e. 25% quality product i.e.20%,
increase fat %i.e. 10%, maintain animal health and increases profit i.e.5 % each.
Exhibit 3.19 Value propositions for GAVL brands
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Reasons for feeding Raw material
The major reasons of feeding raw material to the animals are stated in exhibit 3.20. This
shows the perception of the farmer about raw material feeding as 25% farmer says that
they feed RM to their animal due to taste preference of their animal, 23% to maintain
health of the animal, 20% to maintain the milk yield and 19% to maintain the fat% in the
milk production. Some minor reasons like it provides ease in AI (1%), cheaper source of
good nutrient (7%), supplement (3%), and increase bulkiness (2%) is also reported in the
surveyed area.
Exhibit 3.20 Reasons for feeding Raw material
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2% 3%20%
19%23%
25%
1% 7%
Cheaper
Supplement
Maintenance of milk yield
Maintenance of fat%
Maintenance of animalhealth
Due to tase prefernece ofanimal
Ease in AI
Bukiness in feed
Awareness of CF/ACF
Awareness level of farmers for CF/ACF is stated in exhibit 3.21. It shows that 10 % of
farmers are aware of CF/ACF while 90% are unaware. This is reported that major source
of information for CF is co-operative dairy while they have no information abut ACF.
Exhibit 3.21 Awareness about CF/ACF among surveyed farmers
10%
90%
Aware
Unaware
27 College of Agribusiness Management
Readiness to switch to CF/ACF
The response of farmers to switch to CF/ACF is stated in exhibit 3.22. Its reported that
30% of farmers say that they will switch over to CF/ACF. This 70% negative response is
there due to farmers’ faith in co-operative feed and 90%of the farmers are unaware of the
fact, this co-operative feed is CF so they believe that whatever they are feeding is the best
for their animal health and any CF or any foreign feed can affect their profits adversely.
Exhibit 3.22Readiness to switch to CF/ACF
30%
70%
Yes
No
Reasons to switch over to CF/ACF
The current study reveals among surveyed farmers 30% farmers who are ready to switch
over to CF/ACF have some reasons to switch to CF/ACF as 35%of them are ready if they
will get higher profit, 25%are ready to crosscheck the proposition offered by GAVL,
22%are ready to take trials and rest 15 %to improve health of their animal as shown in
exhibit 3.23.
28 College of Agribusiness Management
Exhibit 3.23 Reasons to switch to CF/ACF
22%
28%35%
15%
Trial
Crosscheck
Increased Profit
Improved animal health
Buying role of women for cattle feed
The role of women in decision-making can be distinguished in four categories:
Initiator: who suggest the idea of buying the product.
Influencer: whose view or advice influences the decision
Decider: who decides on any component of a buying decision: whether to buy, what to
buy, how to buy, how much to buy, or where to buy etc.
Buyer: who makes the actual purchase
In the current study role of initiator and influencer clubbed together. Exhibit 3.24depicts
that woman as an initiator and influencer is having great significance in the surveyed area
and dairying at the household level is largely the domain of women. Women are
independently taking decision in Shekhdi and Noortalavadi i.e. 100% as shown in below
graph and in these villages women can control the products and income from dairying. In
Vasana and Bamanva their decision making power ranges from 85-90% followed by
Sokhada 80% and Finav i.e. 70%. The influencing power of women is highest in
Noortalavadi i.e.100% followed by Finav i.e. 80%, Shekhdi i.e. 78%, Vasana i.e. 75%
29 College of Agribusiness Management
and Undel, Vadola i.e.60% each. The unique feature of this analysis is that in Finav,
Undel, Vadola, Popatpura, Nagara, Rampur and Deva their influencing power is more
than their decision making. While in Vaso, and Nadiad surrounding area neither they can
influence or take the decision for cattle feed buying. Its also reported that in Vasana and
Undel 10% of women are buyer.
Exhibit 3.24 Role of women in buying decisions
Factors influencing decision-making
There are several factors, which can affect the buying decision of buyer. The current
study has undertaken some factors and exhibit 3.25 depicts that these were Price of the
product (6), taste consideration of animal (13), Increase milk yield (47), Increase fat
%(37), Nutrient requirement (38), Dealers’ recommendation (10), Availability of product
(12), Influence of opinion leader (10), Past experience of the farmer (83), Increased profit
(60), Rapport of sales representative (2), Quality (40), Animal health (15) or any other
factor (13). The highest number of responses goes to the past experience of the farmer
followed by increased profit, Increased milk yield and Quality of the product.
30 College of Agribusiness Management
Special feature: In Rampur village its reported that if farmers are using feed of any
private company the co-operative dairies denied to buy their milk as well as to give AI to
their animals so it also affect their decision making activity.
Exhibit 3.25 Factors influencing decision-making
Extension activities undertaken by GAVL
GAVL is undertaking extension activities to disseminate the knowledge of dairy
management among the farmers and to assure them about the success of GAVL brands.
Presently, there are mainly two activities undertaken by GAVL i.e. Farmers’ meeting and
field trials.
Farmer meetings
The company takes Farmer meeting as primary extension activity. A team of Veterinary
officer, Territory manager and a field officer is organizing it on the basis of need of the
customers and potential of the area. Presently the number of farmers’ meeting held in the
31 College of Agribusiness Management
surveyed area is 10.Exhibit 3.26 shows that the highest number of meetings held is in
Nagara i.e. 3 followed by Undel and Vadola i.e. 2 in each. Sometimes, these meetings are
especially organized for the women to discuss problems with the company’s lady
veterinarian without any hesitation. As, it is reported that most of the problems in dairy
farming is related to the reproduction.
Exhibit 3.26 Farmer Meetings in surveyed villages
0
1
2
3
4
Undel
Vadola
Popatp
ura
Bam
anva
Fin
av
Vasana
Sokh
ada
Nagara
Shekh
di
Noort
ala
vadi
Pij
Vaso
Ram
pur
Deva
Nadia
d s
urr
oundin
g
Nu
mb
er
Farmers attended Godrej meetings
Exhibit 3.27 depicts the number of the farmers attended meeting of GAVL. The total
number of farmers who have attended meeting is 30 out of 134 surveyed farmers. Its
shown that in Vasana highest number of persons attended the meeting i.e. 8 followed by
Sokhada and Undel i.e.6 in each. In Nagara highest number of meetings held but the
persons who have attended these meetings are 4 in number as respondents of the current
study.
32 College of Agribusiness Management
Exhibit 3.27 Farmers attended Godrej meetings in surveyed area
0
2
4
6
8
10
12
14
16
Undel
Vadola
Popatp
ura
Bam
anva
Fin
av
Vasana
Sokh
ada
Nagara
Shekh
di
Noort
ala
vadi
Pij
Vaso
Ram
pur
Deva
Nadia
d s
urr
oundin
g
Village
Nu
mb
er
Yes
No
Feedback of farmers’ meetings
Exhibit 3.28 depicts the feedback of farmers’ meeting. Its shown that 30% farmers found
it very good, 20% good, 15% fair and 5% found it poor. Rests 30% are able to recall only
when other fellow makes them enforced to recall.
Exhibit 3.28 Feedback of farmers’ meetings in surveyed area
33 College of Agribusiness Management
Farmers interested to attend meetings
Exhibit 3.29 depicts the number of the farmers who are interested to attend the GAVL
meetings. The number of farmers interested is highest in Vasana, Sokhada and Undel i.e.
9 in each followed by Vadola i.e.8 and Bamanva i.e. 7.In Shekhdi, Noortalavadi and in
Nadiad surrounding area no farmer is interested to attend the meetings. The reason in
Shekhdi and Noortalavadi the farmer will come to the meeting only if snacks will be
distributed after the meeting while in Nadiad surrounding area farmers are very big and
they have no time to come to meetings.
Exhibit 3.29 Farmers interested to attend meetings in surveyed area
0
2
4
6
8
10
12
14
16
Undel
Vadola
Popatp
ura
Bam
anva
Fin
av
Vasana
Sokh
ada
Nagara
Shekh
di
Noort
ala
vadi
Pij
Vaso
Ram
pur
Deva
Nadia
d s
urr
oundin
g
Village
Nu
mb
er
Yes
No
Farmers turning up as customers after meetings
This is reported that total farmers appeared in GAVL meetings are 175 in number as
mentioned by the company veterinarian and the dealers have reported that 18 i.e. 10% of
them are turning up as a buyer. Exhibit 3.30 shows that the highest number of turn up as
customers is highest in Vasana and Sokhada i.e. 20% in each followed by Undel i.e. 7 %
34 College of Agribusiness Management
Exhibit 3.30 Farmers turning up as customers after meetings
Number of trials continuing
Trials are another promotional tool of GAVL. As company considers that farmers’ seeing
believes that’s why initially GAVL starts trial at the farmers’ farm and put some animals
under trial and some under control and then compare the results of both. Exhibit 3.31
depicts that currently 6 trials are continuing i.e. in Undel (2), Vadola (1), Popatpura (2)
and Bamanva (1). In rest of the villages no trial is running currently.
Exhibit 3.31Number of trials continuing
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Frequency of Individual contact
Each field officer is meeting with 4 farmers in each village and covering 2-3 villages in a
day. So, frequency of individual contact is 8-12 farmers per day i.e. 24-36 farmers a
month. This meeting is takes place to get the feedback of performance of the product and
targeting the new customers. This is also done to get the feed back of farmers’ meeting
organized by GAVL as well as to follow up the trials started at the premise of the
farmers.
Source of information about cattle feed
The study reveals different sources of information for cattle feed. Exhibit 3.32 depicts
counts the number of response for different sources and its shown that the major source
of information about cattle feed is Dealer (94) followed by sales representatives (67), co-
farmers (36) and Leaflet/Posters (17).
Exhibit 3.32 Source of information about cattle feed
36 College of Agribusiness Management
Satisfaction level of farmers for GAVL brands
Exhibit 3.33 depicts that among users i.e. 36, 2% farmers are highly satisfied, 12%
farmers are quite satisfied, 3% are indifferent, and 24% farmers are quite dissatisfied
while 49% are highly dissatisfied with the performance of GAVL brands.
Exhibit 3.33Satisfaction level of farmers for GAVL brands
2% 12%3%
34%
49%
Highly satisfied
Quite satisf ied
Indifferent
Quite dissatisf ied
Highly dissatisfied
Reasons of satisfaction
Exhibit 3.34 depicts that among 2% highly satisfied and 12% quite satisfied users of
GAVL brands, the major reason of satisfaction is increase in profit i.e. 35% responses,
followed by increase in milk yield i.e.28%responses, fat percentage increase i.e. 25%
responses and good animal health i.e. 15% responses among satisfied farmers.
37 College of Agribusiness Management
Exhibit 3.34Reasons of satisfaction
Reasons of dissatisfaction among farmers
Exhibit 3.35 depicts the reasons for dissatisfaction among farmers. This shows that
highest number of response i.e. 32 for the dissatisfaction goes to the farmers’ faith in
dairy that’s why they are not ready to accept any other feed. Another major reason is that
GAVL product could not increase their profit even if the production of milk or fat was
increasing by its use as prices of GAVL brand is higher than that of its competitors. Its
also reported that the use of GAVL brand could not increase milk yield or fat percentage,
which is clear from 17 responses among surveyed farmers. Some farmers have faced
problem of palatability (7) and diarrhea (6) in feeding GAVL products.
38 College of Agribusiness Management
Exhibit 3.35 Reasons of dissatisfaction among farmers
Satisfaction level of Dealers for GAVL
Its reported that 85 % dealers among 15 surveyed dealers are highly satisfied with GAVL
and the major reason for their satisfaction is Brand association of Godrej i.e.35%
followed by Company support i.e. 25%. Increased profit and Quality product results for
20% each for their satisfaction as shown in exhibit 3.36.
39 College of Agribusiness Management
Exhibit 3.36Satisfaction level of Dealers for GAVL
Price comparison of GAVL brands with other competitors
Table 3.3 depicts per kg prices of GAVL brands and Table 3.4 depicts per kg prices of its
competitors. Its clear that per unit prices of Milkmore and Bypro are much higher from
AMUL feed (5.5), Maize bran (7), Rice bran (6), Tur chuni (5.8), cotton seed (5), broken
rice (7), Madfhuram daan (4.2), Dhara daan (4.7), Radhakishan (4), Godhara (5),Shakti
pashu aahar (6) and Ganesh daan (3.85).Its reported that per kg prices of Maize cake (14)
and Cotton seed cake (10) are higher and Maize gluten (8) is almost similar to the prices
of Milkmore and Bypro. But farmers are finding prices of Milkmore and Bypro much
higher as quantity of Maize cake and CSC in feed is half to Milkmore and Bypro while
quantity of Maize gluten is ¼ th of Milkmore and Bypro.
Table 3.3 Per kg price of GAVL brands
GAVL brand Price/kg
MM 9
HP pellet 5.8
40 College of Agribusiness Management
Bypro 8
Table 3.4 Per kg prices of competitors of GAVL brands
Feed Price/kg
AMUL 5.5
Maize cake 14
CSC 10
Maize bran 7
Maize glutin 8
Rice bran 6
Tur chuni 5.8
Cotton seed 5
Broken rice 7
Madhuram 4.2
Dhara dan 4.7
Radhakishan 4
Godhara 5
Shakti pashu aahar 6
Ganesh daan 3.85
41 College of Agribusiness Management
SWOT analysis of GAVL
Strengths
Quality product
Strong Support of Godrej brand
Quality extension services
ISO 9001:2000 company
Awareness of GAVL brands among farmer is high
Especially designed product for high yielding animals
Weaknesses
Poor distribution network
Dissatisfaction among farmers is high
Poor follow up due to less number of field force
Quality of after sales services is poor
Regular user status of GAVL brands among farmers is low
Proper emphasis to promotional strategies has not given
Logistic management is poor so in time delivery is burdensome process
Opportunities
Modern dairying is gearing to maximum production as opposed to traditional
dairying.
Growth rate of milk production is 1.1% per year
Underfed animals are the characteristics of Indian dairy farming
Number of high yielding animals is increasing
Threats
Strong distribution network of AMUL
Emotional bond of farmer with AMUL is very strong
Entry of local competitors with low price
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Market is credit based
Credit recovery is uncertain and tiresome process
SWOT analysis of AMUL
Strengths Market leader in cattle feed in Anand
Strong supply chain management
Primary choice for cattle feed buyer
Functioning as full solution provider for dairy management
Cyclic recovery of credit as vertically integrated with farmers
Weaknesses
Inconsistency in quality cattle feed
Single product portfolio
Due attention to cattle feed business is absent as its secondary activity
Success percentage of AI is going down so bond with farmer is getting loose
Dissatisfaction among farmers is increasing due to under measurement of fat%
Opportunities
Modern dairying is gearing to maximum production as opposed to traditional
dairying.
Growth rate of milk production is 1.1% per year
Underfed animals are the characteristics of Indian dairy farming
Number of high yielding animals is increasing
Threats
Entry of private players with good quality feeds.
Higher prices given by private dairies so co-operative bond getting loose.
43 College of Agribusiness Management
Expectations of Surveyed Dealers and Distributors
Prices of GAVL products are comparatively higher to other competitors so it
should be reduced.
Molasses should be higher in HP pallet.
HP pellet must have one more SKU i.e. 70 kg bag.
Additional SKUs of MM should be of 25 kg bag.
Availability of the material at the right time is crucial so company must take care
of it.
44 College of Agribusiness Management
Customer Relationship Management Model
RSI: Relationship specific investmentsSEI: Small equity investment
45 College of Agribusiness Management
Environmental Dynamism
Available Alternatives
Customer’s relationships with other suppliers
DistanceAge of relationship
Long duration relationship
Suppliers share of the Customer’s markets patronage
B
i
Customer’s RSICommunication
Information
Innovations
Competence
Initiatives
S
A
TISFACTIO
Geography
Cultural
Technology
Social
Bonds Trust Commitment
SEI’s
RSI
Offering quality
Suggestions and Recommendations
Product
New SKUs can be launch on dealers’ suggestions as smaller packs can assure more
business on cash basis as well as recover of credit will be faster.
Positioning of each product must be unique
MM – Quality positioning i.e. product is positioned as offering the
best quality.
Bypro - Benefit positioning i.e. product is positions as the leader in
certain benefits.
HP Pallet – User positioning i.e. as best for common purposes.
Proper monitoring system should be there for better evaluation of progress of each
product.
Price
Prices of premium brand i.e. Milkmore and Bypro are unreasonably high, as market is
not ready to except these prices so it must be restructured.
Place
Appointing one dealer in each village should develop proper distribution network.
Dealer must be financially strong to run business in long term.
Number of field officers should be increased i.e. one F.O. look after 5-6 villages for
better follow-up and assured product supply.
Number and frequency of Farmer meetings and Individual contact must be properly
designed i.e. One field officer will undertake following activities
Frequency of Individual contact =5 farmers/day
Number of villages covered = 1 village/ day
Organizing Farmer meeting = 1 meeting /week
46 College of Agribusiness Management
Promotion
Health camp for women can be organized as women are having general health
problems and health facilities are rare in surveyed area.
Free samples can be provided to opinion leaders of the village to increase acceptance
of the products among the farmers.
Organizing certain fairs where give some cash prize to the highest milk yielding and
best health cattle of the farmers who use GAVL feed.
Attractive pamphlets, posters and banners should be printed.
Posters should be pasted at village bus stops, co-operative dairies, panchayat ghar,
schools or any other place of common gathering.
Proper aids i.e. OHP, charts and CDs for farmer meeting should be used.
Company banners should be placed at dealers and distributors shop.
Quiz can be organized for farmers.
Initiatives
Providing free home delivery in case of an order of more than Rs 1000 to strengthen
the bond with the farmer.
Long term trial i.e. for whole lactation period and field day should be properly
organized and well advertised.
Van campaigning with spot sales should be promoted.
Recognition of highest selling dealer in company premises.
Ladies club can be formed and ladies activities should be promoted.
Schemes can be launched for the customers buying large quantities on cash.
47 College of Agribusiness Management
Company motive here is to convert customers into ambassadors
Suggestions and complains – – Farmers can give their suggestions to the dealers, which in
turn will pass on the information to the area manager. Also suggestions will be taken from
the local veterinarians on a regular basis. Special care will be taken to deal with complains
and necessary steps will be taken to meet them at shortest possible time.
Feedback – Feed back of each individual product will be taken from customers
individually in farmer meetings.
Word of mouth – our exclusively good service will definitely appeal the customer and it
will multiply in good word of mouth which is the most important factor for farmers to
influence their decision for cattle feed buying.
Ambassador – finally our delighted customers turn into our ambassadors who advocate or
recommend for us wherever such services will be needed in their peer group.
This will result in
Strong bond + Trust + Commitment + Small Equity Investments
Leading to
Higher Suppliers share of the customer’s market patronage.
48 College of Agribusiness Management
References:
1. www.godrejagrovet.com
2. Annual report of NDDB, 2003-04
3. Monthly review of Gujarat economy, Centre for Monitoring Indian economy,
December 2004
4. Indian dairyman, December, 2004
5. www.amul.com
6. www.mapsofindia.com
49 College of Agribusiness Management
Annexure
Questionnaire -1
1. Name of Dealer-…………………2. Place-…………………………….3. Total sale of Mandi (animal feed)……………4. a) Average monthly sale of Dealer …………….. b) Sale Cash Credit
(i) Wholesale (ii) RetailComponent Quantity Selling price/unit
c) Expected average monthly sale …………………….
5. Total sale of Godrej Agrovet feed ………………. Sale Cash Credit (i) Wholesale (ii) Retail
Godrej Brand Quantity Selling price/unit
6. a) Buying pattern of dealer Cash Discounts Cash
Advance bookingLarge quantities at onceSmall quantities
b) Credit recovery period (from farmers)…………………. (Days)
50 College of Agribusiness Management
7. Trend of components in particular season
RM CF/ACF
i) Summerii) Winteriii) Rainy
8. a) Does a farmer demands Godrej product/Brand- Y/N b) If Yes then which product being asked by farmers-
i) Milkmoreii) Byproiii) HP pelletiv) Any other
9. If dealer pushes product, what is the satisfaction level of farmersV.satisfied Quite satisfied Indifferent Quite dissatisfied V.dissatisf.
10. How much he pushes and how he pushes the product (strategies)……
11.Satisfaction of dealer about Godrej brands V.satisfied Quite satisfied Indifferent Quite dissatisfied V.dissatisf.
12.Reasons for selling Godrej feed……..
13.Reasons of dissatisfaction/satisfaction
14.Factors affecting decision making of a farmer
15.Suggestions if any
51 College of Agribusiness Management
Questionnaire- 2
1. Name of Farmer…………………………2. Village & P.O…………………………….3. Address………………………………..
4. Total no. of animals Cows BuffaloesMilking Non-milking Milking
Non-milking
Breed of animals
Average milk production
Fat%
5. Realized value of average production (per litre)
6. What are the ingredients of feedIngredient Quantity/day Cost/unit
7.Reasons for buying RM…..
8. Is he aware about CF/ACF Y/N Source of information
52 College of Agribusiness Management
9.Will he switchover to CF/ACF Y/N
Reasons for Y/N
10.Whereabouts do you buy cattle feed Fixed According to convenienceIf fixed why so…
Credit Relationship Easy to reach Quality Any Other
11.Decision maker (caretaker) Male Female Combined %M F
12.Factors influencing decision makingi) Priceii) Increased milk yield iii) Increased fat %iv) Nutrient requirementv) Dealer’s recommendationvi) Availability of productvii) Brand image of companyviii) Credit availabilityix) Impact of opinion leaderx) Past experiencexi) Increased profitsxii) Rapport of sales representativexiii) Any other…
13. Have you ever heard of Godrej feed-Y/Na. If yes, Have you ever used Godrej feed-Y/Nb. If Y which product have you used-c. Are you satisfied with the performance of the product-Y/Nd. If N, reasons for dissatisfaction/satisfaction
53 College of Agribusiness Management
14. How do you find information about cattle feed Farmer meetings……………..Radio………….General newspaper or magazine…………………Direct mails…………………………………Leaflets…………………………From friends or colleaguesFrom sales reps……………………………………………….From AgricentresFrom special exhibitions or seminarsOther (PLEASE WRITE IN)______
15. Are you interested to attend the meetings ………..Y/NIf Y have you ever attended Godrej meeting………….Y/N
16. What benefits you can count out of it
54 College of Agribusiness Management
17. What are your expectations from these meetings
18. What are your expectations from Godrej agrovet
19. Education level of respondent
20. Age of respondent20-30..................................................................30-40..................................................................40-50..................................................................50-60..................................................................>60.....................................................................
21. Interviewer Code Social GradeA……………………………………………B........................................................................C........................................................................D........................................................................
22. Income from dairy business
55 College of Agribusiness Management