Você está na página 1de 51

ACKNOWLEDGEMENT

All our praises for ALLAH THE ALMIGHTY, who bestowed potentially upon us to accomplish
this present report successfully. With all our sincerity, we express. Our gratitude to the HOLY
PROPHET (P.B.U.H) and his fellows, who are the source of enlighten guidance and wisdom for
the humanity.
I have deep sense of gratitude to our honorable teacher Madam Naima Khursheed and Mr.
Kashif (Business Manager FMC UNITED) for his generous guidance for this report. We would
also like to appreciate the praise-worthy efforts and the assistance of some people who have
kindly helped us out in the completion of this report. They definitely include our parents,
teachers and friends.

1
EXECUTIVE SUMMARY

FMC United Private was incorporated in 1883.When founder john bean created an innovative
insecticide spray pump to combat scale, an infestation that was ravaging California's orchards
and endangering the livelihood of growers.
The marketing division of FMC is mainly concerned with sale distribution, promotion,
procurement, finance, human resource management and general administration etc. The skill
inventory of the FMC comprises of highly efficient and proficient team of people, which leads to
competitive edge with maximum production of pesticide.
It is only due to self-driven management of plant that the company is utilizing the plant capacity
more then maximum caliber, which has facilitated the company to diversity its business with
minimum risk and threats.
Company's sales force consists of dynamic and efficient galaxy of people who are self driven
and highly motivated to achieve the sales targets. Company's promotion department is striving
hard to strength corporation image and brand loyalty. The very department launches two
campaigns rabbi and kharif consisting of six months each. The promotion department of
company is bit conservation the reason being that company is facing fierce competition. The
company is lacking in societal marketing, which is emerging treads of era.

FMC due to being in process industry observe the pesticide and spray control while a muddling
of autocratic and participative style of management is adopted to achieve the corporative
objectives. FMC is got ore competence in technical service department, which not provided
only technical assistance but also enhance the brand loyalty and enhance the brand loyalty
and assures the establishment of objectives of the company.
Its key responsibility is to facilitate the farmers with invaluable suggestion to optimize the use
of spray to enhance the productivity. It conducts seminars, village meetings to guide the
farmers through the course of difficulties.
Planning department is brain of organization that decides the ways to achieve the business
level objectives, which are concerned with the SOP's of marketing. The every department
relies only on its own channels to gather the information concerned with decision making to
minimize the risk of errors.

2
General administration and HR department are overlapping each other; the first ensures the
compensation of the employees of the marketing division while the former looks after the
employees needs to help them to get the maximum caliber performance department makes
sure the smooth sailing of the plant site as well as marketing division.

It always manages to register and maintain the list of national as well as international suppliers
and vendors. It assures to provide the right things in minimum time with maximum quality. It is
exercising JIT approach with minimum lead time so that things may keep on floating well.
Company always makes purchase through channel zed ways so that there should not be any
risk of embezzlement.
The finance department is key department recording all business transactions of the marketing
division. It directly reports to the head office of the company, the company has own certain
excellent awards in environment protection and employees safety measures.
Today, FMC continues changing lives as the innovative force behind industry and agriculture,
where our products maintain leading market positions.

3
Background of Host Organization

INTRODUCTION OF FMC

FMC (Food, machinery, and chemical) is an American based company selling products related
to agriculture in Pakistan. On crops like Cotton, Rice, Sugarcane, wheat, Mize, potato,

4
Vegetables.
FMC started marketing in Pakistan during 1994 at nine regions. FMC formulated plant in
situated at Lahore, where the entire products is formulated and packed for future supply to the
warehouses at different regions. This product is then supplied to the market through United
Distributors (PVT) Limited.

FMC Agriculture products groups:


With more then half of our business in international markets. FMC's agriculture products group
provides crop protection and pest control products around the world with environmentally
sound chemistries and delivery system
Necessary to ensure a safe and abundant fool supply. A strong insecticide portfolio, coupled
with next generation, herbicides products, reflect FMC's expertise in discovering, developing
and formulation state of the art crop protection. In addition, FMC offers specialty products for
pest control\, wood protection, public health and hygienic, stored grain, turf and ornamental,
animal health, home, and garden. Out strategy for growth in agriculture ourselves as a focused
player with a concentration on insecticide, select crops and region

FMC Industrial Chemicals:


FMC specially chemicals consists of FMC bio polymer, which serves the food, pharmaceutical,
and specially in markets: and FMC Lithium, which serves the pharmaceutical and industrial
markets. Our success is keyed to having extensive knowledge of customer's applications and
working to find new and proprietary solution to their needs based on our strong research and
development capabilities and applications knowledge.
We have successfully secured and developed low cost sources of key products, and we are
competing increasingly around the world, drives by global expansion or our current customers
and the potential of serving new customers. Today sales outside of North America have grown
to 55% of these combined businesses.
The Specialty Chemicals:
FMC is recognized around the world as market leader in industrial chemicals. Our success is
based on our law cost position; longer term raw material supply, efficacy, state of the art
production and strong industrial/market position.

5
The European market for industrial chemicals is sizeable. FMC meets the need of this
important market through FMC.
From a strong local business in Spain. FMC has evolved into a strong European player, with
exports to the Mediterranean area, Middle East and Latina America.
Our industrial chemical products play a role in manufacturing products for virtually every
industry. The major markets we serve are solid detergents, pulp and paper, and glass.

PRODUTS AND SERVICES

PRODUCT:
A product is one of the most important contingents of 4 P's because it is the thing which
company sells to its customers. It's a set attributed, a package of benefits tailored to customers
needs here we will discuss what FMC UNITED (PVT) LIMITED offers to customers.

FMC UNITED (PVT) LIMITED sells pesticides and spray to customers, which are farmer who
apply it to their crops, so as to get batter yields. Pesticides and spray generally, is a commodity
and almost all pesticides and spray marketed, by all companies is similar in nature and
content.
By product classification, pesticides and spray is an industrial product treated as raw material
for from products.

PRODUCT ATTRIBUTES:
Products attributes are the tangible benefits being accrued from a product these are product
quality, features and design.
Pesticides and spray (pesticides and spray products by FMC UNITED (PVT) LIMITED) is one
of the finest in quality; it is prepared on most modern plant. It is clean i.e. don't have any dust,
one value highly favored by farmers. It is on attribute from which farmer judge quality of
pesticides and spray has this in absence.

6
PRODUCT FEATURES:
Pesticides and spray has product features unmatched by other pesticide and spray. It is easily
soluble in water, a quality of goods pesticide and spray even after a year it will retain its quality.
While pesticide and spray is known as a perishable commodity even many pesticides and
spray become hard after a year in store becoming less soluble in water. Another feature is it
does determine of its periling capability. If pesticide and spray become a cake, you can make
return it in to pervious shape by hitting hard bag of pesticide and spray once or twice on the
ground.
These two are some of many reasons, which made the best and most preferred brand in the
market. The company pervaded quality pesticides on economic price & its product line the
following:
SERVICES:
The company provided farm advisory services to the servile thousand farmers and contribution
in the increase of production & productivity of agriculture sector.

HISTORY OF FMC

FMC is a chemical manufacturing company headquartered in Philadelphia, Pennsylvania. FMC


employs over 5,000 people world wide, and had gross revenues of US$3.115 billion in 2008.

Founded in 1883 as the Bean Spray Pump Company in San Jose, California by John Bean,
the company's first product was a piston pump. Bean invented the pump to spray insecticide
on the many fruit orchards in the area. In 1928, Bean Spray Pump purchased Anderson-

7
Barngrover Co. and Sprague-Sells, and changed its name to Food Machinery Corporation, and
began using the initials FMC. FMC received a contract to design and build landing vehicles
tracked for the United States War Department in 1941. FMC also built the M113 (APC)
Armored Personnel Carrier and the Bradley Fighting Vehicle as well as the XR311 at its former
facility in Santa Clara, California. The troubled development of the Bradley was satirized in the
1998 HBO movie The Pentagon Wars. In the movie FMC was fictionalized as A.O.C
Corporation. Bean also manufactured fire fighting equipment in the 1960s through the 1980s
under the FMC and the Bean names.

FMC sells chemical products used by beef and poultry processors to reduce pathogens, such
an E. coli and salmonella, on uncooked beef and poultry. FMC obtained a patent on a method
for sanitizing fowl that has been killed, plucked and eviscerated by contacting the fowl with an
aqueous acid solution and maintaining that contact for a time sufficient to sanitize the fowl.

FMC changed names again in 1948, becoming Food Machinery and Chemical Corporation. In
1961 the name was changed to FMC Corporation. In the 1980s, 1990s, and 2000s, FMC
Corporation began spinning several of its divisions into separate companies, including United
Defense and FMC Technologies, and selling its divisions, including the John Bean Company,
now a subsidiary of Snap-on.

COMPANY PROFILE

Company Name:
FMC UNITED (PVT) LIMITED

Legal status:
Private Limited Company

Registered Office:

8
1-G-II M.A Johar Town,
Lahore, Pakistan.
Phone: +92-42-111-222-362
Fax: +92-42-531-4459
E-mail: info@fmc.com
Managing Director:
Farooq Shahid
Director Technical& Operation:

Mr.M.sarwar

Auditors:
Shahzad saleem
Nasir Ali
Legal Advisor:
Mr. Rashid A. Malik (Advocate)
Bankers:
 Citi Bank Limited
 United Bank Limited
 Alfalah Bank Limited
 Habib Bank Limited

9
VISION STATEMENT

Improved the quality of life in Pakistan. Feeding the world protecting the health and providing
the convenience of life.

10
MISSION STATEMENT

"FMC United (PVT) Limited is committed Ted to play its leading role in supporting agriculture
advancement in Pakistan by providing quality pesticides and allied services to its customers
with the passion to excel by setting new goals and taking new initiatives for development of
profitable venture."

11
Managing Director

BUSINESS OPERATIONS
HR
Plant Manager
Manager

ORGANIZATIONAL STRUCTURE
FMC UNITED (PVT) Limited

12
R&D Business
Zonal
Sales
Field Finance Marketing
Manager Manager
Officers Manager Manager

CENTERLIZATION
The flow of command is centralized in FMC UNITED (PVT) LIMITED. Basically top
management makes all the major decision and there is less directed involvement of thee
middle and lower management. The authority flows from top to bottom and less authority and
power is delegated.
Functions of Different Departments at FMC UNITED

There are different departments working in FMC UNITED Pakistan. But I am describing the
functions of these departments.
 Marketing Department
 Finance Department
 Human Resource Department

Marketing Department

13
Marketing division set up in July, 1994 is responsible for the marketing operations including
planning, distribution, sales farm advisory services, field warehousing finance and
administration.
With the commencement of commercial production in June 1995, the company stared
marketing its own pesticides and spray under the brand name "TALSTAR" the company
markets not only "TALSTAR" pesticides and spray but also export nitrogenous and potash
pesticides.

The company is also undertaking the marketing of FMC UNITED LIMITED (PVT) LIMITED.
The company is fully marked up and capable of taking up challenge of marketing one million
tons of pesticides to be produce this plant every year.

When FMC UNITED LIMITED (PVT) LIMITED came into the market with its production in June
1995, the other manufactures namely "DAWOOD HERCULARS and NATIONAL PESTICIDES
CORPORATION was already well establishing in the market. The brand of the Dawood
Hercules was persevered premium brand in Sindh and Central Punjab respectively.

FMC UNITED LIMITED (PVT) LIMITED had to facing tough competition from the banging this
competition coupled with the huge surplus of pesticides and spray in the domestic market
posed a great challenge of the company in thee initial years. FMC UNITED LIMITED (PVT)
LIMITED not only met the challenge by capturing the desired market share but in the process,
enhances the brand image of the product "TALSTAR" pesticides and spray which has become
a number one brand. during the period 1983 to 1986 when a large pesticides and spray
surplus rousted in the country, FMC UNITED LIMITED (PVT) LIMITED pioneered pesticides
and spray exports which not only helped in stabilized domestic pesticides and spray but also
earned valuable foreign exchange for country.
Government of Pakistan deregulated the trade and prices of phosphate pesticides on august
21, 1993.subsequent to this decision FMC UNITED LIMITED (PVT) LIMITED started self
imports of these pesticides and spray.
Result timely supplies were arranged. Farmers were thus provided with quality product in bags

14
with guaranteed correct weight and this brought about a positive qualitative change in the
pesticides business in the country. The marketing division now has the necessary expertise to
handle pesticides imports and exports.

FMC UNITED LIMITED (PVT) LIMITED believes in selling a program rather than just a
product. For this the company has adopted a customer orientation strategy, marketing quality
products backed up by efficient and effective support services with emphasis on developing
the market through particular and innovative farmer education.

VARIOUS FUCTIONS OF MARKETING DIVISION

PLANNING DEPARTMANT:

Planning department is basically the brain of the company. The cooperative strategy is
formulated at the head office of the company while the department planes and formulated
concerned with the marketing operations.

The department's activities are to develop an efficient management information system (i.e.,
production, distribution, warehousing, sales, Finance, Technical, Services etc.) and to collect,
compile, analyze, and present information relevant to market information.

1. To assist the marketing management in the analysis, planning and monitoring of the
marketing operations for the purpose of achieving the FMC UNITED LIMITED (PVT) LIMITED
marketing objectives. The detail functions given as under:
2. To produce daily & monthly progress reports for General Manager Marketing and other
quarterly ,half yearly and annual report for the MD's coordination meeting and board of
directors.
3. Various analyses are carried out to keep management updates.
4. To conduct marketing surveys necessary for marketing planning and analysis
5. Preparation of feasibility reports for new projects.
6. To do long term and short term projects

15
7. Coordination data and preparing presentations material as and when required.
8. To monitor competitors, regions ' sales performance, dealers 'selling capacity, sales
campaign and utilization of capital budget.
9. Computerization of industry pesticides data.
10. Compiling information preparing presentation material as and when required.
1. Daily Report:
It contains basic daily data and analysis of the data pertaining to:
1Production
2Dispatches to customers & warehouses
3Sales position
4Inventory Level
5Position of order generation
6Pending order status
Monthly, quarterly & annual reports not only covered Marketing Division's Achievement for the
period but also gave an insight of the pesticides market situation with particular references to
competitors.

2. Annual Business Plan:


It consists of:
a. Operational budget
b. Capital budget
The process of budget preparation starts from last week of June and ends in September by
submission of the plan to the management for approval. The detail of activities involved is in
the transparency.
3. Analysis:
1Industry situation
2Sales Performance
3Receivables
4Budget Performance

16
5Freight Analysis
These analyses are carried out on a weekly basis and reports are sent to GMM to keep him
updated and facilitate modification of strategies according to the prevailing situation.
4. Market Survey:
For example during 1994 pesticides consumption in the country was law as compared to
pervious year. Till the end of third quarter 1994 the decline was over 9 % as compared to the
first three quarter of 1993.
It was, therefore decided to conduct a field survey with the objective of getting first hand
information for determining the factors which impact pesticides consumption.
5. Market Feasibility:
This department has developed market feasibility for FMC UNITED LIMITED (PVT) LIMITED.
6. Pesticides Data Book:
For the last 12 years planning department is compiling and printing pesticides data book
containing impact historical information pertaining to FMC UNITED LIMITED (PVT) LIMITED
sales data, pesticides industry and agriculture related data.
This book is divided into five main sections:
(I) Pesticides off take
(ii) Pesticides production
(iii) Pesticides imports
(iv) Pesticides prices & important data on agriculture
(v) FMC UNITED LIMITED (PVT) LIMITED statistics
8. Monitoring:
1Sales Performance
2Sales Companions
• Dealers' Budget
• Capital Budget
3Competitor's Activities
9. Presentations:
1Management
2Government of Pakistan
3Annual meeting

17
The preparation of these presentations is planning responsibility. They are developed on need
basis.
10. Training:
Planning chalks out orientation program for the newly indicated officers/internees to acquaint
them with the marketing operation of the company planning also arrange for the training of the
management employees at "department of Business administration BZU Sahiwal campus." the
coordination with the Head Office to select the officers for such training programs.
11. Company Newsletter:
News from all the twelve regions, distribution officers Sukker and from different departments of
marketing division come to planning where they are compiled & edited and sent to Head Office
for publishing in the company 's quarterly new letters.

18
FINANACE DEPARTMENT

The finance department 1994, the basic purpose of finance department is collect, monitor and
control finance. Its responsibilities and objective have been formulated to ensure attainment of
long and short term business plans, compliance with corporate and fiscal regulation and to
fulfill internal and external reporting needs.

The finance term is composed of qualified and experienced chartered / cost accountant,
Master in Business Administration / Commerce and professionally trained graduates. Its
personnel are placed at all locations under decentralization organizational structure to ensure
effective and continuing participation in all the company activities.

The financial position of FMC is very strong and FMC is profitable institution. The operating
revenue of the company has increased from Rs.26 Million in 1994 to 100 Million in 2008
Finance department comes under line authority of finance department but also a report to
General Manager Marketing (Head of Marketing Department).It is division into two sections.

19
1General Accounting
2Sales Accounting
General Accounting:
It handles all general record keeping responsibilities of marketing department from distribution
of salaries to disbursement of medical bills. It also handles responsibility of maintaining
necessary funds and transferring excess funds and transferring excess fund s to head office.
Sales Accounting:
It is the most important function of finance department. It maintains dealer's account and
record all sales made. It tracks all activities right from customer order to making of an invoice
and delivery to the customer. It has two sections
1Dealers Account
2Collections
Dealers Account:
Dealers account section holds all information about dealers. They record how much product a
specific dealer has order whether it is delivered or not etc. when a dealer gives order whether
on warehouse or for direct shipment from plant, a customer order is made. One of its copies is
sent to finance department.
When shipment is made, an invoice is prepared its one copy is given to finance department.
Actually finance department keep track of every major activities from customer order to
shipment advice.

Collections:
FMC UNITED LIMITED (PVT) LIMITED gives 14% of its products on credit, out of this 12% is
secured credit. It gives secured credit mostly on bank guarantees while a small amount is
given on basic of inland of credit. FMC UNITED LIMITED (PVT) LIMITED account receivables
are very good and it is able to avoid bad debts. They keep track of every recoverable and on
cash bank guarantees if recoverable are not cleared.

20
Human Resource Department

21
HUMAN RESOURCE PLANNING
Human resource planning is the process of determining and assuming the number of qualified
persons, available at the proper time performing jobs, which meet the need of the organization
and which provided satisfaction for the individuals attached with the organization.

The personnel department of FMC UNITED (PVT) LIMITED performs this function and set
plans to acquire proper and skilled employees for the organization. These plans are set in
coordination with the top management and line managers. The HR planning process is
following:

1. The personnel department consults with top management in order to determine the goals
and objectives of the FMC UNITED (PVT) LIMITED and to get future expansion plans of the
top management.
2. After consulting with top management they meet the line manger or unit manger in order to
determine to manpower need at present or in the future.
3. Now the personnel department sees whether the current or future manpower need can be
fulfilled from with in the organization or not. For the purpose of fulfilled the current or future

22
needs from within the organization .the personnel department keeps up the date record of all
the employees.
The record kept includes the following information regarding employees:-
1Name
2Age
3Date of joining
4Position at the time of joining
5Current Position
6Health
7Performance
8Skills possessed by employees, etc.
This record also helps the management to determine the manpower strengths of the FMC
UNITED (PVT) LIMITED. If the current or future needs of manpower cannot be filled from
within the organization then the personnel department looks in the labor market or outside in
order to hire skilled employees.

23
SWOT ANALYSIS

STRENGTHS
Stable Market
Market of the pesticide spray is very stable now so company can produce higher amount of
product and can achieve economies of scale in this the production cost of the company will
reduce.
Dealership Network
FMC UNITED has the loyal dealers. Which gives more important to the products of FMC
UNITED. They personally give the product on credit to the farmers. Company also gives them
incentive at the year end .
Sales Force
FMC UNITED has the qualified sales staff. All sales officers having the degree of master in
agriculture. In this way they can easily understand the problems of the farmers. So the sales
force helps the company in achieving the objectives with their excellent knowledge.
Quality Products
All the companies which operate in the agriculture sectors tell to their customers that we are
providing the quality products but FMC UNITED always giving them quality product. This thing

24
is also proved by the government of Pakistan. Government takes samples of FMC UNITED
and proved that all the product are fulfils the quality.

Brand Preference
Farmers of this country are well aware about FMC UNITED and its products. So when they are
going to purchase Pesticides they giving the preference to the company. Every customer who
use the product at one it left all the companies and join FMC UNITED.
Broad Product Range
If the company has the product for every problem then consumer giving them preference on
other companies. So FMC UNITED has a broad product range which differentiates it from
others.

High Production
FMC UNITED has the higher capacity of production. That is the biggest strength of the
company.

WEAKNESSES
Sugarcane Crop
FMC UNITED has not any product for the sugarcane crop. While the major competitor
of the company having the all products for the sugarcane.

Weediciades and fungicides


Company has not any weediciades or fungicides in this time but in the near future company
makes a plan to introduce new chemicals of this type.

Higher Prices
FMC UNITED used the skimming strategy of pricing. So they charge higher then every
company in Pakistan. This thing cuts the loyal customer of the company.

Distribution Channel
Company has very well distributors. Which is the competitive edge for the company but in

25
these days distribution channel is not working well. They distribute the order very late.

Broad Field Area


Every sales officer has the broad area so he is unable to provide FAS service on time .So they
should have be broad sales force to solve the problems of the company.

Dealers Incentive
FMC UNITED give the dealer incentive at the year end so it is difficult for dealer to continue
their business. While other companies give the incentive at purchase. So dealers give more
importance to other companies.

OPPORTUNITIES

Demand
With every passing day demand for the agriculture products are growing day by day. Because
every passing day introduce new pest so demand is going to high and high.

Chances of Expansion
Company has the chances of expand their business. They can produce fertilizer and
machinery for the agriculture. They can also introduce solar energy system and the farmer can
easily purchase the product of FMC UNITED due to its fame and quality.

Joint Venture
Company has chances to create a joint venture with Fuji Fertilizer Pakistan or other fertilizer
company.

THREATS

Free Trade Policy


Company is affected by many policies of WTO and government of Pakistan. In these polices

26
government remove tax from imports so everyone can import the foreign product which is
better in quality.

BT Cotton
As time passes companies introduce BT cotton which is free of pest. It means pest can not
attack on it. So farmers will not purchase the products of FMC UNITED. Company depends
largely on cotton crop or if cotton crop is protected from pest then who will purchase the
product.

BT Corn Seed
This seed also creates the problems for the company. Company will be unable to achieve the
sales target if the given situation will be occur.
Water, Gas and Electricity Crisis
These things creates problem for the farmers in the future. India wants to use the whole water
of Pakistan in this way Pakistan will be free from water and if water will disappear then light will
also disappear. If farmer left the farming then company will not be able to survive.

27
MARKETING STRATEGY

Segmentation:
FMC UNITED divided the whole market into three segments on the basis of agriculture land.
They make three types of segments.
Upper Class (More then 500 Acres)
Middle class (More then 30 Acres)
Lower class (Less then 30 Acres)

Targeting:
FMC United Target the lower class farmers. Because it is easy to satisfy them and they are
sincere with their work. They can also target upper or middle class but they thing they are
black mailers. They always want to make a deal with the company. So upper class and middle
class are less profitable as compare to lower class.

Positioning:
FMC UNITED used different tools for creating positive image in the mind of target customers.
Basically FMC UNITED used pull strategy for attracting target customers. FMC UNITED used
different tools i.e. Personal selling, direct marketing, sales promotion and advertising.

28
MARKETING MIX STRATEGIES

Product Strategy:
Company markets all of their products with brand name to build brand equity. While the major
competitors use generic names of their products or in the future government ban the generic
names so that’s why it is completive edge for the company. In this time some of the products of
FMC united have generic name which are shown into the product line. But now company
changes that name and turn towards brand name.
PRODUCT LINE

MACHINES & NOZZLES


1HAND SPRAY NOZZLES
2BOOM SPRAY NOZZLES
3KNAPSACK SPRAY MACHINE
PESTICIDES
1ACELAN 20SL-250ML
2ACELAN 20WP-500ML
3AFFINITY 50WP-800GM
4ACROBAT MZ
5ADVANTAGE 20EC
6AIF 40DF

29
7ARRIVO 20EC
8ATRAZIL
9ATRAZINE
10AUTHORITY
11BUPROFEIZIN 25WP
12BESTOX SEC
13BUMPER COTTON
14BUMPER CANE
15BUTACHLOR
16CARTAP 40G
17CASCADE 100C
18CABRIO TOP 60WDG
19CHLORPYPHOS 40EC
20EMMAMACTIN BENZOATE 19EC
21FURADAN 3G
22IMIADACLOPRID 20SL
23IMIADACLOPRID 70WB
24IMIADACLOPRID 25WP
25KUMULUS DF
26MATRIBUZIN
27MUSTANG 380 EC
28NOVASTAR 56EC
29PROFENOFOS 50 EC
30RUGBY 5G
31SHINKAR 50EC
32STOMP 455CS
SEED
1SUNFLOWER SEED DK 4040
2FRONTLINE POWER PACK SX 17

Pricing Strategy:

30
In pricing company used Skimming strategy .They charge higher then every company as
compare to multi national, national and generic companies. I also attached a pricing analysis in
Appendix which shows their pricing strategy.

Placing Strategy:
FMC UNITED (PVT) has joint venture with UNITED distributor. In Pakistan FMC has only one
distributor which is at top position. This joint venture is a core competency of FMC.
DISTRIBUTION SYSTEM
The primary function of distribution department is distribution of pesticides all over Pakistan,
ensuring that at the minimum possible freight cost while maintaining the competitive edge.
Following are the company's responsibilities of the distribution department
1. To ensure the effective distribution of all products from United Distribution Limited (UDL) to
the dealers network and various warehouse located all over the Pakistan is coordinating with
the field.
2. To conduct field surveys at united distribution limited (UDL) from time to time to ensure that
the existing company freights are competitive at minimum cost to company.
3. To maintain close liaison with the Head Office Lahore and coordination all matters affecting
imported Pesticides, Demigod product, claims etc.
4. To coordinate with N.L.C Rawalpindi for trucks in case of emergency.
5. To maintain all dealer record and information responsible for analysis of dealer performance
during rabbi and kharif.
6. To ensure the dispatch and effective distribution of all (imported) pesticides from Karachi
port by road and rail.
7. To supervise, guide to concerned distribution staff at Lahore, United Distribution Limited
(UDL) and Karachi port by road and rail.]
DISTRIBUTION OBJECTIVE
 To ship out total production.
 Services 240 dealers, 8 warehouse, and customer.
 All shipments to be made in cost effective manner.
 To keep inventory at plants at minimum levels.
 To maintain regional / zonal allocations.
31
Final
Procurement Production Distribution Dealer Ship
Consumer

 To rectify dealer complaints.


 All dispatch to be on FIFO basis
 Adequate and proper warehousing / control.
 To ensure prompt handling, good quality packing, correct weight and timely
delivery of products.
Strong distribution system is a competitive edge for FMC UNITED. UDL distribute all of their
products into minimum time and UDL also manage the warehouse of FMC UNITED.
Company has the regional sales office with the facility of ware house in these cities Regional
Sales Offices:
 Lahore Sales Office
 Multan Sales Office
 Rahim Yar Khan Sales Office
 Vehari Sales Office
 Behawalpur Sales Office
 D.G. Khan Sales Office
 Quetta Sales Office
 Sahiwal Sales Office
 Hyderabad Sales Office
 Sukhar Sales Office

32
Promotion Strategy:
FMC UNITED (PVT) used pull strategy to promote their products. Promotion team directly
attract and convince the customers by using direct marketing and personal selling.
Advertisement and Sales Promotion
An Advertisement and sales promotion department has the responsibility planning and
execution of all the promotional activities. This department is successfully executing the
activities from its inspection because of company's share of market has increased to 9%.It is
one of the major forces behind "TALSTAR" pesticides and image of No.1 brand in the market.
FMC UNITED LIMITED (PVT) LIMITED promotes its product on almost all type of media other
then direct mail.
They are
1Electronic Media
2Print Media
3Transit Media
In electronic media, FMC UNITED LIMITED (PVT) LIMITED advertises on Television and
Radio.

T.V Advertising:
In television advertising very limited choice is available an case of channels. Only P.T.V
available where only P.T.V fulfils FMC UNITED LIMITED (PVT) LIMITED requirements. Target
audience is mostly in villages where only P.T.V can reach. Therefore FMC UNITED LIMITED

33
(PVT) LIMITED advertises on P.T.V.

Print Media:
Most farmers, who are FMC UNITED LIMITED (PVT) LIMITED target audience, are illiterate
and therefore FMC UNITED LIMITED (PVT) LIMITED do not run major campaigns in print
media but it is advertise on occasions of national importance, so as to enhance its image.

Transit Media:
FMC UNITED LIMITED (PVT) LIMITED has more then 300 billboards placed in different parts
of the country, where FMC UNITED LIMITED (PVT) LIMITED target market is situated. Also it
runs close circuit television (CCTV) at airports, railway stations and in trains. FMC UNITED
LIMITED (PVT) LIMITED put heavy emphasis on sales promotion to its dealers as well as
farmers.
Following are the activities take during 1996 for sales promotion

Sales promotion. Items


1Calendars
2Key chain
3Garden Parks
4Dairies
5Wall Clocks
6Wallets
Sales promotion Material:
FMC UNITED LIMITED (PVT) LIMITED use following promotional material
1Crop Posters
2Crop Literature
3Stickers
4Price Lists
5Mobiles
Other Advertising:
1Eid Season cards

34
2Stalls at Exhibition

COMPETITIVE STRATEGIES

FAS Services
FAS services are competitive edge for FMC UNITED because its competitors only sale their
products. They are not giving the services to their customers. So that’s why it is competitive
edge for the company.
Farmer Meetings:
These are the meeting of the farmers conducted in villages and towns. Farmers are explained
the latest crop technology to be adopted for getting higher profitable yields. Other farmer
related problems like plant protection and oil testing besides many other issues are discussed
in these meetings. FMC UNITED LIMITED (PVT) LIMITED crop literature is distributed during
these meetings. Normal attendances vary between 50-70 farmers.
Special Farmer Meetings
These are farmer meetings conducted at Tehsil/Distric level head quarters. The
participants in these meetings are progressive farmers and Government/Agri. Related sugar
mills officials.
Agri related issues are discusses in the on set of rabbi/ kharif season and the numbers of
participants are between 150 to 200.
Group Discussions:
Discussions with small group of farmers are held at the farm levels or at the dealer's shop.
Crop related problems are discussed and suggestions pertaining to these problems are
advised.
Farmer Visits:
Farmer's farms are visited and on the sport issues regarding land preparation, soil

35
testing, pesticides application , use of pesticides and many other farmer's related problems
are discussed and suggestion are made accordingly.
Crop Experiments:
In order to carry out applied research about the use of pesticides, crop experiments are
conducted by FMC. Pesticides treated treatments are compared with the control plots and the
results are shown to farmers..
Sales force
Company has a competitive sales force which has excellent knowledge about chemicals and
pest with this knowledge they can easily solve the problems related to pest. All the sales officer
have master degree in agriculture and some of them having business degree along it.

Branding Strategies
FMC UNITED use brand names as compare to their competitors. With brand names product
can easily get loyal customers. On the previous pages I show companies product line. All the
products having the brand name with registration. Competitors have no chance of copy FMC
brand name because company has legal right to protect them.

36
Business Process Analysis

37
BCG Matrix

Cash cows

Business units with high market share in a slow-growing industry. These units typically
generate cash in excess of the amount of cash needed to maintain the business. They are
regarded as staid and boring, in a "mature" market, and every corporation would be thrilled
to own as many as possible. They are to be "milked" continuously with as little investment
as possible, since such investment would be wasted in an industry with low growth.

Dogs

charitably called pets, are units with low market share in a mature, slow-growing industry.

38
These units typically "break even", generating barely enough cash to maintain the
business's market share. Though owning a break-even unit provides the social benefit of
providing jobs and possible synergies that assist other business units, from an accounting
point of view such a unit is worthless, not generating cash for the company. They depress a
profitable company's return on assets ratio, used by many investors to judge how well a
company is being managed. Dogs, it is thought, should be sold off.

Question marks

Business which has low market shares they do not generate much cash is lie in this
segment. The result is large net cash consumption. A question mark has the potential to
gain market share and become a star, and eventually a cash cow when the market growth
slows. If the question mark does not succeed in becoming the market leader, then after
perhaps years of cash consumption it will degenerate into a dog when the market growth
declines. Question marks must be analyzed carefully in order to determine whether they
are worth the investment required to grow market share.

Stars

Business units with a high market share in a fast-growing industry. The hope is that stars
become the next cash cows. Sustaining the business unit's market leadership may require
extra cash, but this is worthwhile if that's what it takes for the unit to remain a leader. When
growth slows, stars become cash cows if they have been able to maintain their category
leadership.

This was not difficult for me to find that where FMC UNITED falls in BCG matrix. FMC falls in
Stars situation because Stars generate large amount of cash because of their strong relative
market share, but also consume large amounts of cash because of their high growth rate;
therefore the cash in each direction approximately nets out. If a star can maintain its large
market share, it will become a cash cow when the market growth rate declines. The portfolio of
a diversified company always should have stars that will become the next cash cows and
ensure future cash generation. . Meanwhile close competitor’s buyer and Syngenta lies into
question mark position.

39
PEST Analysis

Political
These factors affected FMC UNITED in every aspect of business.Political factors include areas
such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability
are the factors which effects the business of the company. With every passing day government
changes the tax policy which is not good for the business atmosphere of the country. Some
companies did not show the complete record of the companies due to save the amount of tax
but FMC UNITED is only company in the Pakistan which gives the complete tax to the
government. Political stability also effects the over all business of the country which also
effects FMC UNITED.

Economic

Factors include economic growth, interest rates, exchange rates and the inflation rate. These
factors have major impacts on how businesses operate and make decisions. From the
previous year interest rate increased which affects commonly all the business in the Pakistan
so it also affects the FMC UNITED. Interest rates increased the cost of capital for the company.
Exchange rates increase the cost of production. Exchange rates affect the costs of exporting
goods and the supply and price of imported goods in an economy. When the prices of every
thing going up which affects the purchasing power of consumer so in inflation it is not easy for
the company to achieve the desired target of sale.

Social

Factors include the cultural aspects and include health consciousness, population growth rate,
age distribution, career attitudes and emphasis on safety. Trends in social factors affect the
demand for a company's products and how that company operates. FMC UNITED is a
multinational company witch effects the culture of Pakistan it hires employee from home
country. These employees wear short dresses so in this way our culture is affected.

40
Technological

New innovation in the technology affects the FMC .Company has the latest plant in the
Pakistan but every day technology changes and company purchase new machinery. Company
faces a lot of problem from new pest they spend a lot of on research and development. So for
the purpose of doing research they need a laboratory with latest equipments.

41
Learning as a student intern

Duties

42
Actually I work with marketing department and also work with finance department so I write my
duties separately.

Marketing Department
After joining the FMC UNITED my basic duty is to join field officer early in the morning for
providing farm advisory services. It is very difficult for me because I have no knowledge about
PEST and its solution. FMC field officers train me to analyze the PEST.
IT is also my duty to attend three types of meetings in different areas.
These meeting are.
 Executives Meetings
 Sales Officers Meetings
 Farmers Meetings
In these meeting my duties are to attend them regularly and giving them my personal views
about planning and achievements of goals. I enjoyed a lot working with sales team because
they help me a lot in learning their executive’s gives me answer of my every question. Mr.
Abdul Rehman (TSO FMC UNITED) motivates me to give sale call.
Visit of the field of the farmers is another task for me .It is very difficult to do. Company needs
everyday data of FAS services. But I did not provide the updated FAS book mushawarti book.
There are three types of books which should be maintained and human recourse can visit and
checks these books any time and any where.
These books are.
 FAS List
 FAS Card
 FAS Book
 Mushawarti Slip
I did all to fulfill my duties and my boss Mr. Kashif is fully satisfied from me.

Finance Department
I spend just one week with finance department so I did not learn too much like I learn from
marketing department. So my duties in the finance department are to check the expenses of
43
the entire sales officer which are related to sahiwal office. Mr. Rafique gives me first day forms
of 22 people. It is very difficult experience for me to calculate these expenses and audit them.
After calculating these expenses it is my duty to post them into ledger after that I post them
into software which is connected with the net.

Accomplishments

Marketing Department
Companies Business Manger Kashif Ijaz gives me an assignment of pricing analysis of
different companies. I complete this analysis with hard work and Mr. Kashif appreciates it. He
also gives remarks in my evaluation form about this analysis. I attached my work which I have
done on pricing in the annex.
Mr. Kashif gives me sales target of 30000 PKR. I achieved this target in one week.

Finance Department
I spend only one week with finance department during my internship period. Mr. Rafique
(Accountant) gives me expense forms of their 22 sales officers and my work is to check all the
expenses and calculate them. I achieved this task into four days because it is time consuming
work and sales officers having no knowledge about different expenses so they add petrol
expenses into CNG and CNG into diesel. Accountant appreciate my work .

New knowledge acquired

Marketing Department
FMC UNITED is a well reputed multi national company. It performs every business activity very

44
well so it gives me lot of chances to learn practical knowledge.
I learn about.
 Marketing Strategies
 Promotion
 Distribution
 Pricing
 Interaction with upper management
 Customer relationship
 Dealers Relationships
I learn how to make plans and how to achieve them. They divide the yearly target into months
and monthly into weeks and weekly into days in this way they can easily achieve the target.
During achieving the target they also focus on the next month target or next week target .For
example in this time cotton crop is at end or near to end now their sales officers focus on next
crop and making new strategies about potato rice and other crops.
I also learn that company gives more importance to services which are called FAS services.
These services are free of cost so I think their concern should be with sale not with services.
But their sales team told me with these services company makes the customers loyal and
building a brand equity.
FMC UNITED have a strong dealership network. Their dealers are very loyal with the
company. Executives of the company say that they can not give them more then 14 % on
credit but I personally see that they give 100 % on credit but this opportunity is not for every
dealer this is for special dealers who have best business profile.
Some upper class farmers personally purchase the entire product for the entire one year crop
but they did not give them any incentive on bulk purchase. While other companies give them
on special discount or allowance.
They use pull strategy in promotion. They directly pull the customers toward their company.
Before some years they use both the up the line promotion and below the line promotion but
now they use only below the line promotion tool for promoting they products.
In the executive I learn about the supply chain of the company. They produce their products
personally but some product they also outsource from china. They purchase basic chemical
which is use in production they import from china, South Africa and America.
45
My working with this company is improving my knowledge which I also learn from my institute
but now I see the practicality of the concepts.
Finance Department
First of all I learn that it is very difficult to do work with finance department. Finally I learn to
manage the expense accounts and posting then to software.

Problem Encountered:
I worked one week with finance department that creates problem for me. On the first day
Accountant gives me expense accounts. At this time my duty is to calculate all the expenses
and audit these expenses of 22 territory sales officers. After four days I completed all expense
forms because it is very difficult for me to arrange maintain these accounts . Because
accountant has no time to teach me and guide me.
Mr. Kashif sends me Arifwala to see the condition of the market and for achieving the target.

46
But the sales team of Arifwala did not accept me because they thinks I am come here for there
audit. Companies Business manager gives me target of 30000 PKR sales but he dint gives me
any discount or allowance with it so it creates problems for me.

How experience impacts on your career:


After the internship in FMC UNITED I have a lot of opportunities in agriculture sector. After the
completion of my study I can also join dealers network of FMC UNITED.I have also opportunity
to join sales team of FMC UNITED as a sales officer. I can also join other generic company
easily in the future. In this time I know how to convince the customer of Pesticide Company
and hoe to create profitable customer relationships.

Recommendations

Over staffing and unbalanced distribution of employees in departments. Like all the
government and semi government institutions FMC UNITED (PVT) LIMITED has also
excessive staff then required. Moreover, there in uneven distribution, a place where one man
can do the job three people are working there. And some place a job of three persons is taken
from a man. This uneven distribution results in de-motivation of the employee and gradually his

47
interest in his work decreases the efficiency of worker job is assigned to its caliper to develop
his interest in work that increases the out put and decrees the overall cost of organization.

In the company there is an unnecessary emphasis on documentation. In transactions a lengthy


procedure of paper work is involved that decrease the efficiency and result in wastage of time.
It is also absorbed that in some cases the same record is maintained by more then one
departments.

There are very few programs for career development of the employees. People working in one
section or department from years are still with the same knowledge and style of doing job.
There not only sharpens the skills of the employee that not only sharpens the skills of the
employee and improved output for the organization.
Some employees are working in the same department or section since they are appointed.

Too much centralization in the organization. Managers at low level are not authorized to make
decision even about minor things. They have to consult top management and give justification
on small matters. Involvement of top management and reaching at the final decisions is time
consuming and some times result in heavy losses. Also man at low level with responsibility and
no decision making power gradually lose interest in his job and de-motivation that affect his
performance.
So there should be delegation of authority up to certain extent that enable manger to take
timely decision at the spot with confidence. When they take decision they feel themselves
more involved and responsible for the job and in turn their efficiency increases.

Due to high rate of unemployment in the country person join those jobs that are against their
interest and not according to their caliper. So proper analysis should be done, and explore
those employee which can do better what they are currently doing in the organization.
They are no strict means to force employees to take safety measures and follow safety rules.
Management should take necessary action in implementing the safety rules in the
organization.

48
After viewing the marketing analysis we see that product quality is not up to standard because
management is more is quantity conscious then the quality. While FMC UNITED (PVT)
LIMITED with most the plant and machinery giving the stranded product.

Conclusion

FMC UNITED is a big name in agriculture sector. Its position is better then other multinational
companies which are working in Pakistan. FMC UNITED has a good sales force, good
business strategies and strong distribution system. This thing makes the company different
from other companies. I spend seven weeks with this company but I see in this company there
is no politics between management and employee. All the people who are working with FMC
UNITED are hardworking and motivating. But I did not understand why they are focusing on
agriculture sector while they have good set up in food and in machinery in America. FMC is
basically American company and it is good reputation in America. In Islamabad airport all the
machines are belonging to FMC. But they are not wanting sale these machines to local

49
Pakistani customer. I think if they can enter in Pakistan they will be market leader. Also with
their machines Pakistan’s economic condition will improve.

Bibliography

WWW.FMC.COM
ANNUAL REPORT OF FMC 2008
WWW.GOOGLE.COM
WWW.WIKIPEDIA.COM
FMC MONTHLY NEWSLETTER
Mr. Kashif Ijaz (Business Manager)
Mr. Abdul Rehman (Sales Officer)
Mr. Sohail Arshaad (Sales Officer)

50
51

Você também pode gostar