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“Farmers and Dealers Relationship Management’ – Case study of YARA Fertilizers in Nashik District”.

Under the Guidance of Mr. Alok Ranjan

Presented by, Mr. Atul B. Dukare

Mr. Pavan R. PatilPGDM-ABM, B.Sc. Agricultural Biotechnology

Centre for Management EducationUdaybhansinhji Regional Institute of Cooperative Management,

Sector- 30, Gandhinagar, Gujarat(Ministry of Agriculture, Government of India)

YARA International ASAYARA Fertilizers India Private Limited

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YARA FERTILIZERS INDIA PRIVATE LIMITED

Company Profile

YARA International ASA

• Established as Norsk Hydro in 1905, demerged as YARA International ASA in 2004.

• President and CEO since 2008: Jorgen Ole Haslestad.• Headquartered in Oslo, Norway: Listed on the Oslo Stock Exchange• Global presence with operations and offices in more

than 50 countries and sales to more than 150 countries. 

Headquarter India:#402, Suyog Fusion Dhole Patil Road Sangamwadi Pune 411 001 Tel: +91 20 4130 2585 / 86 / 87 Fax: +91 20 4130 2589 

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ObjectivesFarmers:• To study awareness about YARA’S fertilizers.• To study the awareness of the drip irrigation system among farmers. • To study awareness about soil testing.• To identify major competitors in fertilizers industry to the YARA.• To ascertain popular product families in YARA.• To study awareness about tools and services provided by YARA.• To study crop nutrition knowledge level.

Dealers:• To identify major competitors in fertilizers industry to the YARA in

Nashik market.• To study the scope of the YARA Fertilizer offering in Nashik district. • To study the satisfaction level of the Dealers. • To formulate strategies for improvement.

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IntroductionFertilizer: “Any material, organic or inorganic, natural or synthetic,

which supplies one or more of the chemical elements required for the plant growth”.

Purpose of fertilizers:• To supplement what has been eaten up by the plants.• To give an additional supply of tonic and good food, so that

they may grow more healthy and produce a better yield.• They help to maintain the PH value of the soil in the

vicinity of 7 to 8 and thereby facilitate optimum growth and health

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CRM for Agricultural organizations

CRM is the alignment of business strategies, organizational structure and business culture, based on customer information and information technology, in order that all contacts with clients meet their needs and achieve business benefit or profit.

Objective of CRM- Use of customer data for management decision-making;

Market approach; Tactics used to develop and maintain relationship with customers; Assessment of the technological infrastructure that is currently used.

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Industry overview

2009-2010 2011-2012 2012-2013 2013-2014 2014-20150

50

100

150

200

250

300

Fertilizer consumption in Lakhs MTfoodgrain production in MT

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Vision: As a global chemical company YARA’S vision is to be an Industry Shaper, aiming to set industry standards and being a positive force, developing the

industry through performance and growth.

Mission: YARA’s mission is to strive for better yield, delivering good returns for farmers,

industrial customers, its owners and society at large. 

Strategy: YARA’s corporate strategy is based on profitable and sustainable growth, building on an unrivalled market position and a unique, flexible business model united with global corporate citizenship. The strategy is the company’s roadmap for industry

shaper performance and long-term value creation

YARA INTERNATIONAL

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Product Profile of YARA Fertilizers

YaraMila Complex (12:11:18)

Balanced source of nitrogenComposition of fertilizer:- Nitrogen N - 12%   - Phosphorus P - P ₂ O ₅ - 11%- Potassium K - K ₂ O - 18%- Magnesium MgO - 2.7%- Sulphur S - 8%, Iron Fe-0.2%- Boron B - 0.015%, Manganese Mn- 0.02%-Zinc Zn – 0.02

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YaraLiva Nitrabor

• Nitrogen (N) Total15.0% • Nitrogen (N) Nitric 14.4%• Nitrogen (N) Ammonia1.1%• Calcium (Ca), Soluble in

water19.0%• Calcium oxide (CaO), Soluble in

water 27%

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YaraLiva Calcinit

YARA Liva Calcinit is a fully water soluble nitrogen and calcium fertilizer. It is a free flowing, fine granular or prilled material which dissolves quickly in water without any residues.

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Krista MAP (12:61:0)

Nitrogen (N) Total 12.0%

Nitrogen (N) Ammonia 12.0%

Phosphorus pentoxide (P2O5)

Soluble in water and

Ammonium Citrate

61.0%

Phosphorus (P2O) 26.6%

Solubility (20 ° C) 360 g / l water

EC (1 g / l at 25 ° C) 0.8 mS / cm

pH (1% solution) 4.5

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Krista SOP • Potassium (K2O), Water

Soluble 52.0%• Potassium (K), Soluble in

water43.0%• Sulfur trioxide (SO3) Soluble

in water 45.0%• Solubility (20°C)110g/lwater• EC (1g/lat 25°C)1.3 mS/cm• pH (1% solution)4.5

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Phosphorus pentoxide (P2O5) Soluble in water and Ammonium Citrate

52.0%

Phosphorus (P2O) 22.7%Potassium (K), Soluble in water

34.0%

Sulfur (S), Soluble in water

28.2%

Solubility (20 ° C) 230 g / l water

EC (1 g / l at 25 ° C) 0.7 mS / cm

pH (1% solution) 4.6

Krista MKP (0:52:34)

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Delta spray(19:19:19)

Delta spray 19-19-19 is a fully water soluble NPK fertilizer with balanced

ratio of nutrients. 

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YaraVita Zintrac

YaraVita Zintrac is a highly concentrated flowable zinc

formulation containing 8-10 times more zinc than a typical liquid chelate and 3-4 times that of

sulphate or nitrate based liquids. 

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Research Methodology• Research area: Nashik (Maharashtra)• Data Collected: 5000+ (Farmers)• Sample size: 5106 &100 Farmers : 50 dealers/Retailer• Research Instrument: Questionnaires• Method of contact: Personal Interview Farmer meetings Telephonic Interview.

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Map of Nashik District

Data interpretation

Farmers Survey

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Age of the Respondents

Less Than 3023%

30-4048%

41-5026%

More Than 503%

Graph no. 4: Age

For 100 Farmers

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Cultivated crops

Fruits Vegetables Fruits & Vegetables Fruits & Plantaion Crops

551

123

4299

133

Cultivated Crops Cultivated Crops

For 5106Farmers

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Crop Nutrition knowledge level

0%10%20%30%40%50%60%70%80%90%

100%

Low 569

Medium 4164

High 346

Graph no. 6: Crop Nutrition Knowledge Level

Nutrition Knowledge Level

Num

ber

of fa

rmer

s

For 5106 Farmers

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Farmers segment

Traditional Cost Oriented Business Innovative0

500

1000

1500

2000

2500

30002572

101

1933

500

Segment Of Farmers

Graph no: 7: Farmers segment

For 5106 Farmers

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Decision Maker

Owner Purchase Group Agronomist 0

500

1000

1500

2000

2500

3000

3500

4000

45003901

173

1031

Decision Maker For 5106 farmers

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Irrigation Type

Flood Drip

Flood & DripSprinkler

0500

100015002000250030003500

104

1614

3388

0

Graph no. 9: Irrigation Type Irrigation Type

For 5106 Farmers

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Soil Testing

Yes No0

500

1000

1500

2000

2500

3000

2938

2169

Soli Testing

Graph no: 12: Soil testing

For 5106 Farmers

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Duration of soil testing

after 4 Months after 8

Months after 12 Months after 16

Months more than 16 months

0

200

400

600

800

1000

1200

14001220

1359

247

1 111

Duration of soil testing For 5106 Farmers

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Graph no. 14: Soil test is beneficial

Soil testing is beneficial (it saves extra fertilizer dose)

Yes No0

102030405060708090

86%

14%

Soil testingFor 100 Farmers

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Buying Behaviour

Better Result Cheaper Price

41

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Graph no: 15. Buying Behavior Buying Behaviour

For 100 Farmers

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Competitor Brand

Series10 50 100 150 200 250

78

219

46

209

40

61

20

36

Brand

Cham-bal

Coroman-dal

Nagarjuna

Deepak

RCF

Vanita

Zuari

Graph no: 16. Competitors Brand

For 673 Framers + 36 PR Agro= 709 (YARA non users)

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YARA Relationship

Yes No0

50010001500200025003000350040004500

Graph no. 17: YARA Relationship N

o of

Far

mer

s

For 5106Farmers

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YARA families preferenceGraph no: 18. Preference to YARA families

Mila Liva Vita Delaspray Krista0

20

40

60

80

100

120

For 100 Farmers

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Sources of Awareness

Progressive Farmer40%

Agro Service Centre39%

Other6%

YARA Agronomist15%

Graph no. 19: Sources of Awareness of YARA

For 100 Farmers

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Pricing of YARA Fertilizers

Low5%

Affordable25%

High70%

Graph no. 20: Price of YARA fertilizer

For 100 Farmers

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Availability at ASC

Always

Sometimes

Never

0 10 20 30 40 50 60 70 80

Graph no: 21. Availability

For 100 Farmers

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Services by YARA Agronomist

VERY GOOD GOOD AVARAGE Bad Very Bad 0

10

20

30

40

50

60

70

80

90

4

83

13

0 0

Graph no. 22: Services by YARA agronomist

Services by yara agronomist

For 100 Farmers

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Tools provided by YARAGraph no: 23. Tools by YARA

YARA Analytical Service

Check IT N-Tester ZIM0

10

20

30

40

50

60

70

80 74

26

0 0

Tools provided by Yara

Graph no: 23. Tools and Services provided by Yara

For 100 Farmers

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Trust towards YARA

YES79%

NO1%

Can't say 20%

Graph no. 24: Do you trust YARA ?

For 100 Farmers

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Do you suggest YARA to others

Graph no: 25. Suggestion of YARA to others

YES NO0

102030405060708090

90

10

Do you suggest to use YARA fertilizers product

For 100 Farmers

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Dealer survey• Number of YARA dealers : 50

40

Post Graduate

Graduate

Agri Diploma

0 5 10 15 20 25 30 35 40

Graph no. 26: Dealers education

Education of the dealers

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No of farmers come to shop

>50 51-100 101-150 151<0

2

4

6

8

10

12

14

16

18

20

18%

11%

10%11%

Graph no. 28: No of farmers come to shop

No of farmers come to shop

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Way of purchase of the Yara fertilizer by the dealers

Cash Credit Both0

5

10

15

20

25

Cash ; 8

Credit; 20Both; 22

Graph no. 29:Way of purchase

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Dealers Keep Different fertilizer of the Yara

YaraMila Complex

YaraLiva Nitrabor

Krista K

Deltaspray

YaraVita Zintrac

48

48

47

48

47

2

2

3

2

3

Graph no: 30. Dealers keep different Fertilizer of YARA No Yes

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Dealers rating to the quality of the Yara fertilizer

Very Good Good Satisfactory Poor05

101520253035404550

Graph no:31: Dealers feel about quality of Yara fertil-izer

Dealers feel about quality of Yara fertilizer

Satisfaction Level

No

of R

espo

nden

ts

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Reason behind more sale of the fertilizer

88% Better Result

12% Cheaper Price

Graph no. 32: Reason Behind More SaleBetter result Cheaper price Farmer requirement

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Dealers rating to ConsultantsGraph no. 35: Dealers rating to the answers of the YARA sales consultant

Excellent Good Average Poor0

5

10

15

20

25

30

35

17%

33%

0% 0%

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Display material given by the Yara fertilizer company to the dealers

Yes78%

No22%

Graph no. 36: Display material given to the dealers

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Factors that farmers consider while purchasing fertilizer according to dealers.

Price

Brand

Better results

Recommendation from ASC

0 5 10 15 20 25 30

30

5

12

3

Graph no: 38. Preference while purchasing

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Discount from YARA

Cash Discount

Trade Discount

Quantity Discount

0 5 10 15 20 25 30 35 40 45

5

40

5

Graph no. 39: Discount from YARA

Discount from Yara

Dealers satisfaction with the dealership of Yara

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Facilities that dealer want for the promotion of Yara fertilizer

Free tri

p

Price d

iscou

nt

Quanti

ty dis

coun

t

More cr

edit p

eriod

Display

mate

rial

More cr

edit p

eriod

0

5

10

15

20

25

03

20

8

12

7

Graph no. 40: Dealers want the facilities

Dealers want the facilities

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According to the dealers company should do the different things for marketing of fertilizers

Reduction in price6% Field demos

8%Farmers meet-

ing6%

Field demos & Farmers meeting

80%

Graph no. 41: Company should do this

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Through the detail survey of Farmers relates with fertilizers use and YARA’s awareness with satisfaction from its products, we have got some findings which is mentioned below:Farmers Survey: Age- From the whole survey I observed 23% Youngsters involved in

Agriculture.• Recommendation-Hence, it is suggested that focus and aware them to new

technology of YARA such as CHECK IT, YARA ANALYTICAL SERVICE etc.

Crop nutrition knowledge- Crop nutrition knowledge is good. Out of 5106 farmers 346 farmers having high crop nutrition knowledge level and 4164 have medium.

• Recommendation-Remaining farmers having low Crop nutrition knowledge hence, it is suggested that reach non user farmers of YARA and arrange more and more KNOWLEDGE GROWS SEMINAR.

Findings and Recommendations

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Decision maker- 3901 Cases Owner is decision maker, 1031 farmers decisions taken by Agronomist.

• Recommendation- We observed that most of innovative farmers take guidance from agronomist for crop nutrition. Numbers of agronomist are not much more and he can’t reach to every farmer hence, Increase in reach is necessary.

Soil Testing- We observed 2938 farmers always do soil testing, 2168 of the farmers does not test soil.

• Recommendation- Increase awareness about soil testing and promote YARA soil testing service. Text message service for farmers to remind them for soil testing for better result.

Buying Behavior- 41% farmers think about better results of fertilizers and 59% think about price. At the time of survey many farmers are suggest the quality of YARA product is good but price is too much high.

• Recommendation- So, Need to tell them reasons behind it. Price is high because we providing good quality of material.

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Other Players- Out of 709 non user of Yara, 219 farmers using Vanita, 209 users of Deepak Fertilizers and 78 users of Zuari and 61 of Coromandal. RCF, Chambal and Coromandal having 46 and 20 users respectively.

• Recommendation- Vanita and Deepak are main competitors so there is need to work more on promotional activity and expand the business in other state also. Need to concentrate on price factor.

Sources of awareness of YARA- 40% of the farmers firstly know about YARA fertilizer from progressive farmers, 39% of the farmers know about it from Agro. Service center and 15% and 6% farmers aware from YARA agronomist and summer trainee/other respectively.

• Recommendation- To convince farmers Progressive farmers plays important role so company should be focus on that Progressive farmers.

Pricing - 70% of the farmers said that price of the YARA fertilizers is high, 25% of the farmers said price is affordable and 5 said it is low.

• Recommendation- To aware farmers why YARA Product price is high? And convince them according to that.

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Findings from the Dealer survey:

Availability- 48 dealers/retailers keep YARA Mila Complex, YARA Liva Nitrabor, Deltaspray. 2 does not keep it. 47 dealers keep Calcinit,Krista K ,Krista MAP, Krista SOP, Krista MKP , YARA vita Zintrac and 3 does not keep it.

• Recommendation- We observed that dealers want to keep all product range but sometimes due to unavailability they unable to maintain all.

Display Material by YARA- 39 dealers was having display material of YARA fertilizer in their shop and 11 dealers do not have it.

• Recommendation- After survey I concluded company gives display material but it does not impact much more, dealers demanding for digital and attractive flex.

Reason behind more sale- 44 dealers said that more sale of the particular brand in their shop is due to better results and 6 dealers said it is due to cheaper price of the fertilizer.

• Recommendation-As per Survey quality of YARA product was good just maintain its price and quality.

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Preference while purchasing-38 dealers said that farmers firstly want better results, 12 dealers said that farmers secondly consider about the price of the fertilizer.

Discount-40 dealers and retailers want trade discount from YARA, 5 wants quantity and cash discount from company

• Recommendation-Many Dealers wants trade discount from company so, if dealer make a onetime payment in cash give somewhat extra discount.

Things need to do for increasing sale- 39 Dealers said both farmers meeting and field demos must conduct by company. According to 3 dealers farmers meeting must conduct by the company for increase awareness and sales, 4 dealers said field demos should be given and 3 dealers said price of the fertilizer should be decrease.

• Recommendation- I observed farmers meeting and field demos helps to increase the sale so focus on this type of things.

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SWOT Analysis

Strength

• Strong marketing chain• International Brand• High skill working staff/ agronomists• Quality of fertilizers

Weakness

• Lack of awareness in all farmers• Unavailability of database of farmers• Different prices of fertilizers according to dealers • Delay in the payment of by the dealers

Threats• Strong competitors• New entries in fertilizer market

Opportunity

• Wide availability of markets• Can capture market of the all crops growers of

sugarcane, onion and vegetables• Enlarge the working area other Districts as well as

States• To achieve the large scale of market share in fertilizer

industry

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Conclusion• After all, Nashik is good in Grapes production as well as Tomato, Onion and

vegetable production• The productivity and fertility of the land is well compare than the other

districts with availability of irrigation facilities in this District• Hence, there is very wide scope for penetration in this region and need to

enlarge area.• There are many companies which are putting their efforts to prove how their

products fertilizers are best than the others. • YARA is one of the well developed International company, which is entered

strongly in this region to capture the more market share.• Initially company needs to increase awareness of its products in farmers or

door step of farm or mainly in ASC in other states. • YARA have lots of scope to capture this market on the basis of its quality

fertilizers rather than the others. As per the research YARA should concentrate on its prices of fertilizers which are the higher than the others.

• On the basis of quality fertilizers YARA is growing very fast in this area, this are the good sign for the company’s future.

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What we learnt? • Farmers and dealers relationship management• Fertilizer market• Marketing strategies• Brand development• Sales forecasting• Inventory management

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Thank you