YARA Fertilizers

1. “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. Patil PGDM-ABM, B.Sc. Agricultural Biotechnology Centre for Management Education Udaybhansinhji Regional Institute of Cooperative Management, Sector- 30, Gandhinagar, Gujarat (Ministry of Agriculture, Government of India ) YARA International ASA YARA Fertilizers India Private Limited 1

2. 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: [phone] / 86 / 87  Fax: [phone]

3. Objectives Farmers: 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. 3

4. Introduction Fertilizer: “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 4

5. 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. 5

6. Industry overview 6

7. 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 7 YARA INTERNATIONAL

8. Product Profile of YARA Fertilizers Yara Mila Complex (12:11:18) Balanced source of nitrogen Composition 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 8

9. Yara Liva 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% 9

10. Yara Liva 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.   10

11. 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 11

12. 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 12

13. 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) 13

14. Delta spray(19:19:19) 14 Delta spray 19-19-19 is a fully water soluble NPK fertilizer with balanced ratio of nutrients. 

15. Yara Vita Zintrac 15 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. 

16. 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. 16

17. Map of Nashik District 17

18. Data interpretation 18 Farmers Survey

19. Age of the Respondents 19 For 100 Farmers

20. Cultivated crops 20 For 5106Farmers

21. Crop Nutrition knowledge level 21 For 5106 Farmers

22. Farmers segment 22 Graph no: 7: Farmers segment For 5106 Farmers

23. Decision Maker 23 For 5106 farmers

24. Irrigation Type 24 For 5106 Farmers

25. Soil Testing 25 Graph no: 12: Soil testing For 5106 Farmers

26. Duration of soil testing 26 For 5106 Farmers

27. 27 Graph no. 14: Soil test is beneficial Soil testing is beneficial (it saves extra fertilizer dose) For 100 Farmers

28. Buying Behaviour 28 For 100 Farmers

29. Competitor Brand 29 For 673 Framers + 36 PR Agro= 709 (YARA non users)

30. YARA Relationship 30 For 5106Farmers

31. YARA families preference Graph no: 18. Preference to YARA families 31 For 100 Farmers

32. Sources of Awareness 32 For 100 Farmers

33. Pricing of YARA Fertilizers 33 For 100 Farmers

34. Availability at ASC 34 For 100 Farmers

35. Services by YARA Agronomist 35 For 100 Farmers

36. Tools provided by YARA Graph no: 23. Tools by YARA 36 For 100 Farmers

37. Trust towards YARA 37 For 100 Farmers

38. Do you suggest YARA to others Graph no: 25. Suggestion of YARA to others 38 For 100 Farmers

39. Dealer survey Number of YARA dealers : 50 39

40. 40 Education of the dealers

41. No of farmers come to shop 41

42. Way of purchase of the Yara fertilizer by the dealers 42

43. Dealers Keep Different fertilizer of the Yara 43

44. Dealers rating to the quality of the Yara fertilizer 44

45. Reason behind more sale of the fertilizer 45

46. Dealers rating to Consultants Graph no. 35: Dealers rating to the answers of the YARA sales consultant 46

47. Display material given by the Yara fertilizer company to the dealers 47

48. Factors that farmers consider while purchasing fertilizer according to dealers . 48

49. Discount from YARA 49 Dealers satisfaction with the dealership of Yara

50. Facilities that dealer want for the promotion of Yara fertilizer 50

51. According to the dealers company should do the different things for marketing of fertilizers 51

52. 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. 52 Findings and Recommendations

53. 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. 53

54. Other Players- Out of 709 non user of Yara , 219 farmers using V anita , 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. 54

55. 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. 55

56. 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. 56

57. SWOT Analysis 57

58. 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. 58

59. What we learnt? Farmers and dealers relationship management Fertilizer market Marketing strategies Brand development Sales forecasting Inventory management 59

60. Thank you 60