PROJECT REPORT
“DISTRIBUTION CHANNEL OF
INDIAN FARMER’S FERTILIZER COOPERATIVE LTD(IFFCO)
SITAPUR,UTTAR PRADESH”
Master of Business Administration (Agriculture)
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF MASTER OF BUSINESS ADMINISTRATION (AGRICULTURE) OF
CSA UNIVERSITY OF AGRICULTURE & TECHNOLOGY, KANPUR
SUBMITTED BY :
MANAS SHUKLA
ROLL NO. :- CA-11981/21
OF
Department of Agri Business Management,
KANPUR
CHANDRA SHEKHAR AZAD UNIVERSITY OF
AGRICULTURE & TECHNOLOGY
KANPUR 208002
2021-2023
SUBMITTED BY MANAS SHUKLA
MBA (ABM) CSAU&T KANPUR
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Certificate
SUBMITTED BY MANAS SHUKLA
MBA (ABM) CSAU&T KANPUR
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Acknowledgement
I take opportunity to express my profound and sincere gratitude to
“Chandra Shekhar Azad University Of Agriculture & Technology,
KANPUR” which provided me with excellent implements to achieve most
cherished goal in my life.
I wish to express our heartfelt thanks and immense gratitude to Dr. Rajeev
Kumar Singh Associate Professor, Department of Agri Business
Management,
CSAUA&T
for
his
keen
interest,valuable guidance,
persistence inspiration, encouragement and moral support though out the
course of preparation of this project. He had always taken out time from
his busy schedule to listen to us and also for valuable suggestions.
I wish to express my special thanks to Dr. T.K. Rajput, Ch. Manager, Mr.
Vinay Mohan, Project Guide & Chief Field Manager who always guided
me with their precious suggestions, Constant Supervision and their
valuable Support, without their help and coordination it would be
impossible for me to complete the project.
I am extremely thankful to Prof. D.R. Singh
Agriculture ,CSAUA&T
and DR.
Anshu
Singh
Dean, College of
Sengar,
Course
Coordinator-MBA (Agribusiness), Dept. of Agri Business Management,
CSAUA&T Mr. Shubham Gupta & Mr. Shubham Tiwari, SIP Coordinator
Dept. of Agri Business Management CSAUA&T for providing an excellent
academic climate in the institute which helped me making this project a
grand success.
My cordial and sincere thanks to all my teaching staff for giving me
valuable academic suggestions, encouragement and reliable help during
my academic course and project.
Manas Shukla
MBA-Agribusiness
APJ Hostel, Kanpur
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Table of Contents
S.No.
Particulars
PageNo.
1.
Rationale Of Study
5-6
2.
Objective Of Study
7
3.
Profile Of Company
8-19
4.
Review Of Literature
20-21
5.
Research Methodology
22-24
6.
Data Analysis
25-35
7.
Findings
36-39
8.
Limitation
39
9.
Recommendation & Suggestions
40
10.
Appendix
41-47
11.
Bibliography
48
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CHAPTER - 1
RATIONALE
FOR
THE
STUDY
The project report on the “Distribution Channel of IFFCO,Sitapur” is just an attempt
to find out the overall distribution and marketing activities of the organization. For a
better understanding, the distribution strategy has been studied by me. Studying the
distribution channel strategy gave me a clear understanding of the specific functions
of each section of the distribution channel of IFFCO.
In the recent years, we have
subject
matter
in
an
analytical
seen that the importance of studying any
way has developed
conceptually with
the
changing scenario. In a professional course like M.B.A., it is very essential for
a student to get sufficient exposure to the real business situation where one
can have some practical knowledge as how to the organisation functions and
works.
Fertilizer has been a major contributing factor to the growth of Indian agriculture over
the last five decades. The overall fertilizer consumption in the country has recorded
phenomenal growth in last few years. The marketing department controls the day to
day supply as per the fixed norms of government so that the farmers are benefited
with good quality Urea at a cheaper rate and at cooperative societies nearer to them.
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With a view to find out the policy of distribution and movement of company’s product
i.e UREA and DAP in the states like Uttar Pradesh. I have undertaken the study on
the distribution channel of the Indian Farmer Fertilizer Cooperative Limited, Sitapur .
This project also discusses about the role of farmer service centres (FSC) and the
role of dealer in the distribution channel. Since fertilizer distribution and movement
are regulated by Govt. of India under Essential Commodities Act (ECA), the
company is expanding its marketing of their product as per extent rule and
regulations of the Government.
Urea at present being the only controlled fertilizer and having a major share
of the entire states and
also a market leader in many countries, therefore ,
market potential of company’s product is very high.
In conclusion, this project will give a comprehensive idea about effective
utilization of the channel of the distribution and recommendations
offered would definitely help in increasing the sale of urea and dap etc.
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CHAPTER - 2
OBJECTIVE OF STUDY
(2.1)Title of the Project:
“A Study of distribution channels of Indian Farmer Fertilizer Cooperative Ltd.
(IFFCO),Sitapur, Uttar Pradesh.”
(2.2)Scope:
1. The project will act as a broad straightforward guide to the management
for further expansion and improvement of distribution channels.
2. The study will encourage the marketing officials and the dealers to take
sufficient measures to overcome the limitation of the channel of distribution.
(2.3)Objectives :
1. To study the existing distribution channel of the organisation.
2. To find out the satisfaction level of farmers of Sitapur district regarding
IFFCO fertilizer.
3. To study the sales promotion activities being undertaken by IFFCO Sitapur
Unit.
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CHAPTER - 3
PROFILE OF THE COMPANY
(3.1)INDIAN FARMERS FERTILIZER COOPERATIVE LIMITED
(IFFCO)
MISSION
"To enable Indian farmers to prosper through
Timely supply of reliable, high quality agricultural inputs and services in an
environmentally sustainable manner and to undertake other activities to improve
their welfare"
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APPROACH
“To achieve their mission, IFFCO as a cooperative society, undertakes several
activities covering a broad spectrum of areas to promote welfare of member
cooperatives and farmers. The activities envisaged to be covered are exhaustively
defined in IFFCO’S Bye-laws”.
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COMMITMEN
“Their thirst for ever improving the services to farmers and member co-operatives is
insatiable, commitment to quality is insurmountable and harnessing of mother earths'
bounty to drive hunger away from India in an ecologically sustainable manner is the
prime mission”.
(3.2) IFFCO CORPORATE GROWTH PLANS
In pursuit of its growth and development, IFFCO had embarked upon and
successfully implemented its Corporate Plans, ‘Mission 2005’, Vision 2010’ and
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‘Vision 2015’. These plans have resulted in IFFCO becoming the largest
manufacturer and distributor of Chemical Fertilisers in India and a significant global
player by setting up Projects and Joint Venture Companies overseas.
(3.3) IFFCO VISION
Vision: In order to augment the next phase of growth & development at IFFCO will
be guided by following objectives :
Achieving specific targets for Energy Saving through modernisation of
existing plants.

Manufacture of new Fertiliser products, setting up Agro-processing Units and
Agro-Chemicals Projects.

Setting up Fertiliser projects overseas through strategic Alliances.

Set up a Credit Rating Agency for cooperative Societies.
During mid- sixties the Co-operative sector in India was responsible for distribution of
70 per cent of fertilizers consumed in the country. This Sector had adequate
infrastructure to distribute fertilizers but had no production facilities of its own and
hence dependent on public/private Sectors for supplies. To overcome this lacuna
and to bridge the demand supply gap in the country, a new cooperative society was
conceived to specifically cater to the requirements of farmers. It was an unique
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venture in which the farmers of the country through their own Co
Co-operative
operative Societies
created this new institution
n to safeguard their interests. The number of co-operative
co
societies associated with IFFCO has risen from 57
57 in 1967, Now a days approx
40000 societies associated with IFFCO .
35072
25528
26960 28134
37381
39564 40000 Approx
30200
57
1968-69 1975-76 1981-82
82 1987-88 1993-94 1999-00 2006-07 2008-09 2021-22
Indian Farmers Fertilizer Co-operative
operative Limited (IFFCO) was registered on November
3, 1967 as a Multi-unit Co-operative
operative Society. On the enactment of the Multistage
Cooperative Societies act 1984 & 2002, the Society is deemed to be registered as a
Multistate Cooperative Society. The Society is primarily engaged in production and
distribution of fertilizers. The byelaws of the Society provide a broad frame work for
the activities of IFFCO as a Cooperative Society.
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IFFCO commissioned an ammonia - urea complex at Kalol and the NPK/DAP plant
at Kandla both in the state of Gujarat in 1975. Ammonia - urea complex was set up
at Phulpur in the state of Uttar Pradesh in 1981. The ammonia - urea unit at Aonla
was commissioned in 1988.
In 1993, IFFCO had drawn up a major expansion programme of all the four plants
under overall support of IFFCO VISION 2000 . The expansion projects at Aonla,
Kalol, Phulpur and Kandla have been completed on schedule. Thus all the projects
conceived as part of Vision 2000 have been realized without time or cost overruns.
All the production units of IFFCO have established a reputation for excellence and
quality. A new growth path has been chalked out to realize newer dreams and
greater heights through 2015.
(3.4)Nutrient-based subsidy policy (NBS)
Cabinet approves Nutrient Based Subsidy (NBS) rates for Phosphatic & Potassic
(P&K) Fertilizers for the year 2021-22 (from 1st October, 2021 to 31st March, 2022)
Net subsidy of Rs.28,655 crore for Rabi 2021-22
New policy scheme are as following for per bag:
N : Rs. 18.789
P :
Rs. 45.323
K :
Rs. 10.116
S
:
Rs. 2.374
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(3.5)Marketing Division
Marketing Territories of IFFCO:
Marketing Central Office
nNorth
Centre
(Lucknow)
North
Centre
(Chandigarh)
South
(Bangalore)
West
(Bhopal)
A.P., Karnataka,
Tamilnadu,
Kerala
Bihar,U.P.,
Jharkhand,
Uttaranchal
Punjab, Haryana,
Rajasthan, J&K,
.Himanchal Pradesh
East
(Calcutta)
Assam, Orissa,
W.B.
Gujarat, M.P,
Maharashtra,
Chhattisgarh
There are 5 Zonal Offices, 20 State Curve Area Office, 63 Area Offices.
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DISTRIBUTION CHANNELS
1. Distribution of fertilisers mainly through the Cooperative
System:
2. State level Apex Cooperative Marketing Federation acts as wholesaler.
3. Direct supplies to Societies in some States.
4. IFFCO-NCDC Cooperative Societies.
5. Small quantities to institutional agencies like Agro.
6. Industries Corporation etc.
7. IFFCO Farmers Service Centres
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(3.6)TOTAL SALES OF FERTILIZER
IFFCO sold over 12 million metric tones of fertiliser during financial year 2022.
16
14
13.6
12.3
13.3
11.5
12
10.8
10
8
6
4
2
0
FY 2022
FY 2021
FY 2020
FY 2019
FY 2018
Sales in million metric tons
(3.7)DISTRIBUTION & WAREHOUSHING
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Distribution of Urea and inter-state movement is under government controlled
and is regulated under the Essential Commodities Act ( ECA) 1956. Under
ECA , supply plan for urea is formulated by the government in consultation
with the State Deptt. of Agriculture and Fertilizer industry. IFFCO urea is moved
from factory to field warehouse by both road and rail. Movement through rail is
resorted to on a need basis to distant locations at the shortest time.
Consumption of urea is seasonal thereby rendering transportation, storage and
distribution is very important .
Urea Distribution Channel Process:IFFCO Production
Area Office
Housing
Sub Area Office
Societies
Ware-
Farmer
 Fertilizer distribution Both by Rail (90%) and Road (10%).
 300 Km. Distance by Road.
For warehousing following services are used:
 Federations & Cooperative Godowns.
 Central Warehousing Corporation (CWC)
 State Warehousing Corporation (SWC)
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(3.8)Board
Board of Directors of the Company is following
Mr. Dileep Sanghani, (Chairman)
(Chairman
Mr. U.S. Awasthi, (MD & CEO)
CEO
Mr. Balvir Singh (Vice Chairman
Chairman)
Mr. Prem Chandra Munshi (Director)
(Director
Mr. Mangi Lal Dangar (Director)
(Director
Mr. Prahlad Singh (Director)
Mr. Simachal Padhy (Director)
Mr. K. Srinivasa Gowda (Director)
Dr. M.V. Rao (Director)
Mr. M. Devender Reddy (Director)
Ms. Sadhana Laxmanrao Jadhav (Director)
Mr. Y Madhusudhana Reddy (Director)
Dr. Amit Pratap Singh (Director)
Mr. R. Ramachandran (Director)
Dr. M.N. Rajendra Kumar (Director)
Mr. Jayeshbhai V. Radadia (Di
(Director)
Mr. Jagdeep Singh Nakai (Director)
Mr. Manvendra Singh (Director)
Mr. P Narahari (Director)
Mr. Umesh Tripathi (Director)
Mr. Vijay Shankar Rai (Director)
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Mr. Bhavesh Radadiya (Director)
Mr. Rakesh Kapur (Jt. Managing Director & Chief Financial Officer)
Mr. R.P. Singh (Director HR & Legal)
Mr. Manish Gupta (Director strategy & Joint Venture)
Mr. Yogendra Kumar (Marketing Director)
Mr. Birinder Singh (Director Corporate Services)
Mr. G.K. Gautam (Director Technical)
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CHAPTER – 4
REVIEW OF LITERATURE
Most producers do not sell their goods directly to the final user , between
them a stand a set of intermediaries performing variety of functions. The
intermediaries are a chain each passing the product down to the chain to the
next organization, before it finally reach the consumer
or end user. This
process is known as the “distribution chain” or the “distribution channel”. Each
of the element in this chain will have their own specific needs which the
producer must take into account along with those of all the important enduser. A distribution channel includes several inter-connected intermediaries such
as - farmer service center, cooperative societies, distributors, whole seller etc.
Each intermediary receives the goods at one pricing point and moves it to the
next higher pricing point until it reaches the final buyer.
A
channel
of
distribution
is
a bridge
to
cover
the
gap
between
a
manufacturer and consumer. So, it is very important for the company to have an
effective channel of distribution. Distribution channel often require the assistance
of others in orders to enable
the market to reach its target market. A
company can he handle its own distribution functions in a better position to
exercise the control over product sale and potentially earn higher profit. At
present, internet has made it much easier to distribute products thus lessening
the need for others to be involved in selling a company’s product .
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Distribution channels may not be restricted to physical product alone. They may be
just as important for moving a service from producer to consumer in certain
sectors, since both direct and indirect channels may be used Hostels , for
example may sell their service (typically rooms) directly or through travel agent,
tour operators, airlines, tourist boards, centralized railway system etc.
A well designed distribution channel strategy takes into account the linkage
between both the sales people’s activities with channel partners and the
marketing managers efforts to better reach and serve end-users. The distribution
channels
management programmers’
builds
a
logical
framework
uniting
marketing and sales efforts in a collaborative learning environment.
This project discusses the existing distribution channels of IFFCO and the
role of the farmer service centers in the distribution of the product. This project
is also attempts to find out the distribution policy as well as the performance
of the distribution channel on the sale of the product of the company. The
project also bring out the various factors influencing the distribution of the
company.
For this purpose, data has been collected by one to one interaction with the
officials of the Marketing Department of IFFCO. Also personally visited the
dealers of the nearest area and collected the information required for the
project.
This project has been prepared with a view to give a comprehensive idea
about effective utilization of distribution channel through which the company
has been successfully expanding the sales of the product and also to fulfill
the academic requirement of MBA (Agricultue) offered by College of Agriculture
Chandra Shekhar Azad University of Agriculture & Technology, Kanpur
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CHAPTER - 5
RESEARCH
METHODOLOGY
In the research I have found new ideas by which I can explain the views of respondents on
whom I have conducted research on the topic and on that basis I have found their views and
can suggest some decision problems and opinions by analyzing and interpreting the facts I
have found.
Exploratory research: -
Is a type of research conducted because a problem has
not been clearly defined. Exploratory research helps determine the best research
design, data collection method and selection of subjects. Exploratory research often
relies on secondary research such as reviewing available literature and/or data, or
qualitative approaches such as informal discussions with consumers, employees,
management or competitors, and more formal approaches through in-depth
interviews, focus groups, projective methods, case studies or pilot studies.
(5.1) Research Design: It is the frame work by which we can conduct study on
any topic and can collect data and can analyze that. In this study the information was
collected by using:

Exploratory Research design in the form of well structured Questionnaire.

Personal Interview method.

Simple Convenient Sampling.
For the study two types of data was used.

Primary Data

Secondary Data
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(5.2) Data Collection Method / Sources:
The primary Data was collected through personal interviewes conducted with the
help of a strucatred questionnaire. The questioonaire was designed with closed
ended question, which was used to collect data from the distributors, Retailers and
Customers in that particular area.
The secondary data was collected by the researcher with the help of various
publications and internet, listited in the bibliography.
Primary Data:
In Primary Data the information was collected from Manufacturers of fertilizers,
Distributors, Retailers (Cooperatives, FSC, IFDC etc.) and customers i.e. Farmers of
the Allahabad district using Questionnaire and personal interview.
Secondary Data:
For the study and analysis of Marketing Divisions Secondary Data from the
Company, Area Office, VikashBhawan (A.D.O.),C.D.O. and Deputy Director
Agriculture records were used.
(5.3) Sampling Unit:
 Farmer’s of the Allahabad District.

Employees of Cooperative Societies of IFFCO, PHULPUR.
(5.4) Sample Size (200)
In this study 130 Farmers, 40 Dealers, 20 Cooperative Societies,and 10 IFDC were
taken into consideration.
(5.5) Sampling Method:
The method used for sampling is Convenient Sampling
depending upon the
information provided by the company.Geographically the areas of Research were
different Markets of Sitapur Distt. Consisting of Rural as well as Urban Areas. They
were Sidhauli, Kamlapur, Maholi, Sitapur, Bishwa Mahmoodabad Atariya Masterbag
etc. from 05th July to 10th August 2022.
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(5.6) Tools of data analysis:
Tabular analysis was used and same is presented in the Graphs.
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CHAPTER - 6
DATA ANALYSIS
Table No. 6.1- To determines the type of fertilizer presently used by the farmers.
Types of Fertilizer
Number of
Respondents
Only Chemical Fertilizer
60
Only Compost Fertilizer
40
Both
30
Figure 6.1 – Pie chart showing response of farmers who used different types of
fertilizer.
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Typ. Of Fer.
Both
23%
Chem. Ferti.
46%
Comp. Ferti.
31%
Data Interpretation
The above data clearly indicates that chemical fertilizers are most widely used and
preferred fertilizer among the respondents.
Table No. 6.2- The following table indicates the presence of category of fertilizer
prominently used by the farmers in the fields are.
Category of Fertilizer
Number of
Respondents
Urea
60
DAP
40
NPK
30
Figure 6.2 – Chart showing response of farmers who used different category of
fertilizer.
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Respondents using fertilizer
70
60
50
40
UREA
DAP
30
NPK
20
10
0
UREA
DAP
NPK
Data Interpretation
It is very clear from the above data that Urea is used by majority of the farmers in the
field followed by DAP and NPK.
NPK
Table No. 6.3- When I inquired about the specific brand of fertilizers which the
Farmers were using following were the responses.
Fertilizer
Number of
Brand Name
Responses
Kribhco
40
IFFCO
60
Shaktiman
10
Others
20
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Total
130
Figure 6.3 – Pie chart showing that IFFCO fertiizer used promiently.
Farmers using fertilizer
Kribhco
IFFCO
Shaktiman
Others
15%
31%
8%
46%
Data Interpretation:
By the above table we can draw the inference that the fertilizer of IFFCO-Urea is
mostly used at largest scale and after it similarly Kribhco and Shaktiman fertilizers is
being used second and third place.
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Table No. 6.4- When I asked to the farmers about the preference of various factors
in purchase of fertilizer following were the obtained Data.
Factors
Responses
Percentage
Availability
20
15%
Brand Name
15
11%
Price
30
23%
Solubility
15
11%
Advertisement
10
8%
Quality
40
31%
Figure 6.4 – Chart showing that farmers bought IFFCO fertilizer due to his quailty.
45
40
40
35
30
30
25
20
20
15
15
15
10
10
5
0
Availibility
Brand Name
Availibility
Price
Brand Name
Price
Solubility
Solubility
Adverts.
Adverts.
Quailty
Quailty
Data Interpretation:It is evident from the above data that quality plays an important role in purchasing a
particular brand of fertilizer i.e. IFFCO.
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Table No. 6.5- The table given below shows role of sources on providing a particular
brand of fertilizer to the farmers 160 dealers and 40 cooperative socities taken for
answer.
Source
Number of
Respondents
Percentage
Dealers
160
80%
Cooperative
40
20%
200
100%
Societies
Total
Figure 6.5 – Pie chart showing the role of dealers in IFFCO fertilizer
Coo. Socities, 46
Dealers, 160
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Data Interpretation:- The above data reveals that most of the users are getting the
fertilizers from Dealers Shop. IFFCO should adopt such strategy but it can’t be
possible due to cooperative laws.
Table No. 6.6- Following data give the number of respondent who attended
awareness program.
Yes
45
No
85
Figure 6.6 – Pie
chart
showing the
response of farmers who attendad the
awarness program.
Farmers
YES
NO
YES, 45
NO, 85
Data Interpretation:- The above data revels that the awareness program has not
been up to the mark. Farmers are not aware to these types of awareness program.
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Table No. 6.7- The above Table shows that awareness program from the above 45
Farmers (Who attended awareness program) are as following.
Good
15
Satisfactory
10
Poor
20
Figure 6.7 - Pie chart showing the response of farmers after the awarness program.
Poor, 20
Good, 15
Satisfactory
, 10
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Data Interpretation:
The above data reveal that the awareness program has not been up to the
expectations.
Figure 6.8 – Opinion of officials on the existing distribution channels for
the distribution of the product (IFFCO) Urea :
According to 85% of the marketing officials, the existing distribution channels
are sufficient for the distribution of the product. However 15% of the marketing
officials think that the existing distribution channel are not sufficient for the
product.
15%
85%
Yes (Existing distribution channel are sufficient).
No (Existing distribution channel are not sufficient).
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Figure 6.9 - Opinion
of
dealers
on
the
delay
faced
in
product
transportation :
Generally transportation cost by road is more than the rail transport.
trans
The
company, therefore, prefers to transport major part by rail. In such situation private
dealers
lers have to wait for their requirement and as a result delay occurs. In
this respect, 60% of dealers agree to the above limitations and 40% are of
the opinion that there are no limitations in supplying the product according
accor
to
consumer’s requirement.
40%
60%
Yes (limitation faced in supply of product).
No (limitations not faced in supply of product).
product
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ROLE OF DEALERS
Figure 6.10 - Factors which dealers consider while taking
ing dealership of
Company:
Dealers before taking the dealership analyze various factors such as price,
quality, brand, image, hassle free agreement etc. The bar chart below depicts
the various factors
the dealer look for while taking up
dealership of
Company.
Percentage
showing
various
factors
dealers
looks
for
while
taking
up
dealership of company :
70
60
50
40
30
20
10
0
65% Quality
35% Brand
Analysis of data revels that 65% of dealer give importance to quality and 35%
look for brand image while taking up the dealership of the company. Dealers
do not
prefer price because price is fixed by government. As IFFCO is the
th only
company of its kind in this region, so there are no competitors.
For this,
dealers have to accept the term and conditions of the agreement and abide
by all rules and regulations as stipulated by the company.
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CHAPTER - 7
FINDINGS
Findings
1. Despite of various government regulations, other limitations, most of the
marketing officials are satisfied with the present distribution channel as it
makes the process of distribution easy.
2. From the survey, it was found that there is a strong distribution channel of
IFFCO in the Uttar Pradesh. It has emerged that present distribution channels
increase the sale of product and it does not affect the quality of the product.
3. In the beginning IFFCO was supplying fertilizer to state level APEX
cooperative marketing federation only.
4. During the survey on dealers, it was found that majority of them have taken up
dealership of product because of its quality and brand image.
5. APEX federation acted as wholesaler in the cooperative sector and they
catered to the requirement of the lower society’s i.e.PACS etc.
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6. Over the passage of time some federation walked out of fertilizer business
due to financial management and other organizations problem.
7. In some states where cooperatives are not in position to absorb the quantity
offered by IFFCO, others channel viz. state agro Development Corporation as
well as other institutional agency are also utilize.
8. IFFCO is collaboration with National Cooperative Development Corporation
(NCDC) adopt 1450 village level societies on the line of IFFCO Farmer
Service Centre (FSC) in phase manner.
9. Under the NCDC scheme it’s provide a loan of Rs. 424194 laks to IFFCO
which was distributing as margin money loan @30,000 per societies.
10. IFFCO also provides subsidy of Rs 12,000 to each for procuring agricultural
implements.
11. 20% farmers say that Sugarcane are grown in selected area of Sitapur district
and near about 80% farmers are using IFFCO Urea.
12. Major farmers (50%) using only IFFCO Urea and 60% farmers are satisfied
with IFFCO fertilizer specially IFFCO Urea.
13. 70% farmers are not satisfied with the price of IFFCO urea i.e. Rs 266.5 per
bag of 45 Kg Urea. But farmers want Urea in between Rs 230-240 per bag of
45 Kg.
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14. IFFCO provides many sales promotional schemes and farmers are generally
satisfied by this scheme.
15. The competitive brands of IFFCO Urea are in the market are generally
Shaktiman ,Yara, KRIBHCO and mainly, amongst these competitive brand of
IFFCO is Kribhcho.
16. Now a day’s packaging attracts farmers instead of the quality.
17. Road and Rail are the main mode of transportation of company’s product. It
was found that company’s transportation facility are best because 90% are by
train and 10% by road so his transportation cost is very cheap, fast and safe.
18. One thing is very much attracting Farmers towards purchase of IFFCO Urea
is “KHAD TO KHAD BEEMA BHI SAATH”. This is a insurance offered by
IFFCO for farmers.
19. Now a days IFFCO marketing officer are made concentration on “Customer
Delight” rather than “Customer Satisfaction”.
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CHAPTER - 8
LIMITATIONS
Limitations
While undertaking the project work in IFFCO there are some limitations
experienced in compiling information for the purpose, which are briefly stated
as below :
1. Due to time constraints the sample size was to be kept limited.
2. Area limitations i.e. only some parts of the Rural and urban market were taken
into consideration.
3. Due to scarcity of transportation facility at villages it was very difficult to visit all
the farmers individually.
4. It is very difficult to gather 100% information through respondent because they
are not confident about the purpose of the survey and Questionnaire. The
Questionnaire were filed by the respondents. Generally it depends upon validity
of these responses what they have given, we can only reach to conclusion based
on that and responses cant taken to 100% true.
5. Non –responding
error
might
have
occurred
because
some
of
the
respondents contacted provided an incomplete or no response to some
questions mentioned in the questionnaire. Respondents did not respond to
those questions because they were unwilling to disclose the related data
of information .
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CHAPTER - 9
RECOMMENDATION & SUGGESTIONS
RECOMMENDATION & SUGGESTIONS:
The following recommendation/ suggestion are given below for improvement of
the distribution channel of the IFFCO Fertilizer :
1. Selecting weak Cooperative Societies and provide their Financial, Managemental
and Technical support like MIS facilities in Marketing Division as well as all
delivery centers.
2. Launch the program like constructing storage community center in the area of
direct need. The company should organize availability promoting the fertilizer and
also serve the technical need.
3. IFFCO should also help in forming new cooperative societies so as to increase
sales of IFFCO fertilizer.
4. IFFCO should also adopt direct supply system to provide fertilizer to farmer.
5. In Direct Supply system IFFCO should give the facilities of credit for selling the
fertilizer.
6. Price of urea should be reasonable, and easy mode of payment should design.
7. To promote research and training on the application of present management
system, technology and global experience for cooperative development.
8. To Promote, assist and encourage development of cooperatives with special
power on suitable agricultural and social economic and cultural development of
the members through cooperative bodies, voluntary institutions and other entities.
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CHAPTER - 10
APPENDIX
(10.1)Questionnaire For Farmers
Dear Respondent,
I, a student of MBA (2nd sem) of Chandra Shekhar Azad University Of
Agriculture & technology, Kanpur have undertaken a major project as part of
my study . Therefore, I would seek your kind cooperation and request you
kindly
to
give
the
answer
to
my
questionnaire
to
make
my
project
successfully. I also assure you that the information will be kept as confidential
and the same will be used only for my academic purpose.
Manas Shukla.
Name:
………………………………………………………………
Age:
………………………………………………………………
Address:
………………………………………………………………
Signature:
………………………………………………………………
Date:
1.
Place: Sitapur.(Uttar Pradesh)
Do you know IFFCO fertilizer firstly from following?
(a).Through News Paper, Radio, Television
(b). Through our farmer
brother.
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(c). through field officer of the IFFCO.
(d). through wall
Hording\Banner and some others
sources.
2. There are some fertilizers companies name select one which you know very
well?
(a).IFFCO
(b).Yara Fertilizers
(c).Kribhco fertilizers
(d). Shaktiman Fertilizers
3. Which company fertilizer you use mostly?
(a). Shaktiman Fertilizers
(b). Yara Fertilizers
(c).KRIBHCO
(d).IFFCO
4. You are using IFFCO Urea, How many years?
(a).5 Years
(b).10 Years
(c). 20 Years
(d). 40 Years
5. Which company fertilizer (Urea) you find good in quality and easily soluble in
water?
(a). Yara Fertilizers
(b). Kribhco fertilizer
(c). Shaktiman Fertilizers
(d). IFFCO fertilizer
6. Which company fertilizer available you very easily?
(a). KRIBHCO fertilizer
(b). Yara fertilizer
(c). Shaktiman Fertilizers
(d).IFFCO fertilizer
7. Do IFFCO fertilizer available you at right time as per your demand?
(a).Before time
(b). At right time
(c). No time availability
(d). Never available
8. Why you like most IFFCO fertilizer?
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(a). Quality of fertilizer is very good
(b).Bagging quality is very good
(c). There is proposal of Insurance with the fertilizers. (d).All of above are truth.
9. In IFFCO fertilizer which type of changes do you like?
(a).Not any change in IFFCO fertilizer
(b). Packaging and Quality
(c). Availability and price
(d). Change in distribution
channel.
10. How much you are satisfied with IFFCO fertilizers?
(a). Only 50%
(b). Fully satisfied
(c). Worthless
(d). Unhappy
11. In which area of following do you want change?
(a). Cooperative society
(b). FSC
(c). IFDC
(d). Private channel.
12. Do you feel IFFCO is best in fertilizer and chemicals because
(a). IFFCO supplies fertilizers, seeds, NPK, DAP, Pesticides, Insecticides and others
product.
(b). Quality and solubility of fertilizer is very good in each types of soil.
(c). IFFCO provide farmers training, Insurance, Timely availability and many more.
(d). All of them are true.
13. Finally amongst all of Fertilizers Company at which position would you like to
place IFFCO?
(a). First
(b). Second
(c). Third
(d). None
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(10.2)Questionnaire for Co-Operative Society
Name:
Age:
…………………………………………………………………
………………………………………………………………….
Designation:
…………………………………………………………………...
Department: Cooperative Society
Address:
……………………………………………………………………
Signature:
…………………………………………………………………….
(Hindi)
(English)
Date:
Place: Sitapur (U.P.)
1. What do you mean by Co-operative Society?
(a). Cooperative means group of people.
(b). Cooperative is group of farmers.
(c). this is group of farmers and register under cooperative act.
(d). this is a society made by farmers.
2.
How cans a person become a member of cooperative society of IFFCO?
(a). By getting registration at IFFCO office only.
(b).Firstly organizing society and registration in Govt. office.
(c). anybody can be the member of IFFCO society.
(d). simply by following cooperative laws.
3.
To whom IFFCO supply fertilizer?
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(a). Cooperative society only.
(b). Private organizations only.
(c). Non-Government Organizations and Trust.
(d). Mainly IFFCO sales license holders.
4.
What is the mode of payment of sale of fertilizer to IFFCO?
(a). By Cheque (b).By Cash (c).By cash-by credit (d).By Credit method.
5. What is the method of providing subsidy rate o IFFCO fertilizer?
(a).By calculating real input (labour, raw material) and Sale output (profit)
(b). By following Govt. subsidy rate norms.
(c). by following instruction of Managing Director.
(d). none of them.
6. What is current condition of cooperative society in IFFCO?
(a). They are running very smoothly.
(b). All most societies are dead in
their locality
(c). they need infrastructural changes
7.
(d). All are correct.
Cooperative society are controlled by(a). Central govt.
(b).State govt.
(c). Ministry of Cooperative society
(d). IFFCO’S Managing Director
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8.
What are the basic principle of cooperative society?
(a). Spirit of cooperation between State
(b). Spirit of cooperation between farmers & state govt.
(c). Spirit of cooperative for the farmers only.
(d). none of them.
9. Is cooperative society commencing any type of training program for farmers?
(a). Two or three times in every block level.
(b). Five times at Distt. Level.
(c). Two times in every village.
(d). Never commence training program.
10. How you face marketing competition with private channel?
(a). We have famous brand IFFCO hence no competitor exist in market.
(b). Our delivery system are so strong hence no problem of competition in
market.
(c). Private companies has no quality and popularity hence we have monopoly in
market.
(d). Till today I have no competitor in market.
11. In the peak season how can you satisfy the farmers?
(a) No one farmer is being satisfied.
(b) All the farmers being satisfied.
(c) Only potential and old farmers are being satisfied.
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(d) Only new farmers are being satisfied.
12. What is sales promotion level at Cooperative society?
(a). State level sales advertisement through print and electronic media.
(b). Field officer are responsible for sales promotional activities.
(c). It is the duty of Marketing division to promote sales.
(d). No need of sales promotion with IFFCO brand.
13. Which types of complain do you face with the IFFCO fertilizer sales?
(a). IFFCO brand has famous and good in quality hence no need of complaints.
(b). Late delivery of fertilizers causes dispute in the farmers.
(c). Farmer are very happy with our system.
(d). All of them are correct.
14. Which one of them is correct?
(a). There are need to change the Cooperative channel so that fast delivery may
applicable.
(b). No need of change in cooperative society system.
(c). There is need of privatization in delivery of fertilizers.
(d). There should be involvement of non government organizations.
16.
What is the Distribution channel of fertilizers & other agricultural products in
IFFCO?
(a). Through Cooperative and Private channel both. (b). Through cooperative
society only
(c). Through Government counters.
(d). Through IFFCO counters .
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CHAPTER - 11
Bibliography
1.
Marketing Management by Dr. Philip Kotler, The Prentice hall, India.
2.
Uttar Pradesh Government Statistical Book.
3.
IFFCO web site: www.iffco.nic.in,www.Google.com.
4.
Web site: www.wikipedia.com, www.answer.com.
5.
Others relevant sources like Agriculture magazine Yojana.
6.
Times of India Agriculture Survey Report .
7.
Other websites: www.dogpile.com,www.icar.ac.in,www.google.com.
8.
IFFCO Booklet.
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