consumer buying behavoiur in respect of godrej products

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.

1 College of Agribusiness Management

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


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.


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.


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).


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.


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.


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


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


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


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


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


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.


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.


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


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


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.


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.


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.


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.


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.


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.


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


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


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


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.


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%


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.


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


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.


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


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 %


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


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


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.


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.


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.


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


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


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


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.


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.


Customer Relationship Management Model

RSI: Relationship specific investmentsSEI: Small equity investment


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


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.


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.


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


http://www.godrejagrovet.com/

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)


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


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


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


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


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


consumer buying behavoiur in respect of godrej products

Documents