MARKET ANALYSIS:

Presently India is the third largest fertilizer producer in the world (Source:

www.economywatch_fertilizer industry). Based on the gross cropped area in India (190

million hectare) and recommended doses of bio fertilizers, potential demand is estimated to

be about 6,27,000 M.T. The demand further can be segregated for Rhizobium as 35,730 MT

and PSB 275,510 MT (source: Greening Agriculture in India – An Overview Abhay Phadke,

2001) which are very expensive. Further it has been seen that for year 2000 proposed

production target for bio-fertilizer was 39,165 MT, which was only 4.8% of total estimated

demand (Abhay Phadke, 2001). The other alternative for organic waste is vermi-compost

which again is a very painful process especially for people living in urban regions especially

in metros where space is a constraint with large number of individuals going for gardening,

the number of nurseries increasing in cities and with private housing societies going in for

maintaining beautiful gardens more number of people are looking for non-messy organic

manure.

MARKET RESEARCH:

As it was felt that a market research was essential to understand the demand of the product, a

secondary data was collected through internet. It was seen that there are around 400

registered and unregistered nurseries within Mumbai and Pune.

Primary data was collected by:-

1. Talking to senior faculty members of MCAER (Maharashtra Council for Agriculture

Education and Research) and KKV (Konkan Krishi Vidyapeeth) through telephonic

conversation and e-mails to understand the feasibility of the product and composite.
2. Around 4 nurseries in Mumbai were also visited to understand whether there was any

similar kind of product and if the product would be made available, what would be the

chance the nursery would use and all the 4 nursery said that they would be willing to

go for the pilot test. Mother Natures Nursery – Borivali (West), Mumbai 400091

Greenlands since 1940 – Malad (West), Mumbai – 64. Veena Nursery – Chembur

West, Mumbai 400 089, Archis Agro Services – Thane West. At the initial stage it

would be seen that the customers targeted would be from Mumbai and Pune.

TARGET CUSTOMERS:

1. Plant Nurseries: Plant Nurseries who sell plants both to agriculture institutes and

individual customers would be the main customers.

2. Agricultural/ Botanical institutes: Institutes involved in agricultural and botanical

activities would be targeted as they maintain various types of plants/ crops in small

tubs.

Some of the major institutes in Mumbai – Pune area who indulge in agricultural/

botanical activities are:

Agricultural College, Pune.

NCL, Pune.

NIV, Pune.

Agharkar Research Institute, Pune.

Medical Research Society, Mumbai.

Mumbai Natural History Society

MITCON, Pune.

3. Private Housing Societies: Nowadays residential housing societies intend to keep their

complex beautiful by maintaining gardens such complexes could be customers.

4. Individual Consumers: Many people belonging to the upper middle class and upper

segments of the society, do gardening as a hobby in their flats and bungalows.

5. Horticulture Institutes: Institutes involved in growth of flowers and fruits would also

find it as a convenient source of fertilizer.

COMPETITION & STRATEGY:

At the outset of the product there would not be much competition as it is very unique and

with the only challengers being (chemical fertilizers and biofertilizers like Rhizobium, PSB).

Vermicompost to a small segment. But chemical fertilizers for long period being unsafe, bio-

fertilizer such as Rhizobium and PSB being costly and vermicompost being messy to operate

(cowdung and earthworm) product stands unique in terms of quality, safety and price and

convenience.

Hence the strategy would be to capture substantial portions of market before a similar product

would come up in near future.

Hence the product would have an upper hand as compared to competitors.

MARKETING STRATEGY:

1. Product: The unique features of the product are:

• Product would be available in plastic containers of 1 litre.

• Each spray would release 10 ml of the cowdung liquid. At a time one spray would be

enough, for best results the product needs to be used twice a week, i.e. 20 ml per

week.

• Assuming a person has 5 plants, the product would last for 10 weeks.
 • The expiry date of the product would be 150 days from the date of manufacture

(Source: MCAER and KKV – Konkan Krishi Vidyapeeth). Once the container would

become empty, it could be refilled with refill bottles.

2. Place : As per the geographical survey the product would be introduced initially only

in Pune, Mumbai and Navi Mumbai. A pilot test for the product at the initial stage

would be conducted at Pune as it has large number of institutes indulging in

agricultural and botanical activities. Besides people reside in huge flats with large

balcony and bungalows thus providing them ample space for gardening.

3. Pricing Strategy: In the market research study, the nursery, individual residents from

societies and faculty from KKV (Konkan Krishi Vidyapeeth) were questioned about,

if the product would be introduced in the market how much would they be willing to

pay. On an average people mentioned that they would be willing to pay :-

a) Rs.50 for one container.

b) Rs.20 for only the sprayer.

4. Promotional Strategy:

a) Tie up with plant nurseries.

b) Advertising in website of agricultural botanical institutes.

c) Setting up stalls in botanical fairs and plant exhibition.

5. Distribution Channel:

Zero – level distribution channel would be followed i.e. as per order the products

would be directly supplied to the consumers (nurseries botanical institutes, residential

complex (initial stage).

One level distribution channel would be followed at the growth stage through retailers

for exclusive garden products.

Thus the product being unique and easy to use (non-messy with high value) the

product would easily create a niche for itself, with additional price advantage the

people would prefer. Besides the presence of citronella in the product could keep

insects and pests when used at home. Hence the uniqueness of the product and price

act as strategy to differentiate the product from its competitors which are costly.

Submitted by:

Ms.Rashmi.Gopinathan.