Bayer crop(MNC) product (Confidor)( insecticide for paddy, wheat
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Pest spectrum[/b]
Sucking and biting insects e.g.: Aphidiae, Aphis illinoisensis, Baliothrips biforensis, Empoasca vitis, Erythroneura sp., Lema oryzae, Lygus spp., Lissorhoptrus oryzophilus, Leptinotarsa decemlineata, Myzus persicae, Oeballus spp., Cicadellidae, Thysanoptera spp., Bemisia tabaci, Pseudococcus spp., Scirtothrips dorsalis
Monthly orders and sales[/b]
[/b]Sales of any product in this industry are seasonal and totally depend on pest attack. A yearly sale of Confidor is 5 Lac Liters (approx.) in India. Confidor holds major share in company’s turnover.
Supply Chain, order size, their margin[/b]
Company is outsourcing the manufacturing of Confidor, which is delivered to the clearing and forwarding agents of all states from factories and then to the distributors situated almost in every city/town and then to dealers which later sell it to ultimate customers.
As such there are no stipulations on size of the order. As per the requirement of the distributor it can be a single carton as minimum and any number of cartons as maximum subject to the availability of stock with the C&F. But to avoid price under cutting, infiltration from one area/territory/region to the other company keeps a check on the demand compared to the potential of that particular market (Distributor).
Confidor costs to Distributor in 1 liter pack at Re.1650/- approx. and then company had set a margin of 4% for the distributor and the 4% for the dealer. The distributor who is selling direct to the ultimate customer is earning 8 %. Now these are the figures which company wants its channel partners to earn. But the actual picture is far from the above. Margin is decided by the intensity of competition. If the competition is high then margin is less and vice versa.
Promotional Schemes to retailers, end customers[/b]
There are no promotional schemes to retailers and to the end customers. This is a well established product not only in India rather in the whole world. At each nook and corner Confidor in well known for its results. So there is no question for any scheme.
Visibility at store and what is strategy, any incentive for placing in the front[/b]
Confidor is placed at every shelf. It is the need of every counter to place Confidor as it is in demand. It is the first ever product of its type or you can say it is a SUPER BRAND. Customer come and ask for Confidor. Now these days company is not focusing on Confidor as there are cheaper substitutes available in the market and Company had shifted to new molecules like Confidor Super, Admire etc.
It is available in 50ml,100ml, 250ml, 500ml & 1liter pack
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2. Insecticides India Ltd product(Victor, Insecticide for paddy/wheat/cotton
Pest[/b] spectrum[/b]
Sucking and biting insects e.g.: Aphidiae, Aphis illinoisensis, Baliothrips biforensis, Empoasca vitis, Erythroneura sp., Lema oryzae, Lygus spp., Lissorhoptrus oryzophilus, Leptinotarsa decemlineata, Myzus persicae, Oeballus spp., Cicadellidae, Thysanoptera spp., Bemisia tabaci, Pseudococcus spp., Scirtothrips dorsalis
Monthly orders and sales[/b]
[/b]Sales of any product in this industry are seasonal and totally depend on pest attack. A yearly sale of Victor is 3.5 Lac Liters (approx.) in India.
Supply Chain, order size, their margin[/b]
manufacturing of Victor is done by the company itself, which is delivered to the company owned depots located at various locations in the country from factories and then to the distributors situated almost in every city/town and then to dealers which later sell it to ultimate customers.[/b]
As such there are no stipulations on size of the order. As per the requirement of the distributor it can be a single carton as minimum and any number of cartons as maximum subject to the availability of stock.
Victor costs to Distributor in 1 liter pack at Re.550/- approx. and then company had set a margin of 10% for the distributor and the 70% for the dealer. The distributor who is selling direct to the ultimate customer is earning 90-100 %. Now these are the figures which company wants its channel partners to earn. Rest there are slight variations in the Margins stated above. If the competition is high then margin is slightly less and vice versa.
Promotional Schemes to retailers, end customers[/b]
There are various promotional schemes to distributors and retailers. Quantity Schemes: - Distributors/Dealers are given different prices against different quantities. If you sell more quantity you will get more discounts. Further there are gifts, prizes on the sales. If you sell certain quantity you will get a gift, on further sales Domestic single tour then further Domestic double tour, then Thailand tour, then Thailand + Singapore, then Europe single and bla bla bla
Victor is neither a super brand nor demanded by any customer and therefore retailer sells it as a substitute to Confidor to maximize his margin. Cost of Victor is far less than Confidor. There is no scheme required for the end customer to buy it as it sold at Rs.1000 per lt.(Liter pack) far less than Confidor sold at Rs.1750 per lt (Liter pack)
Visibility at store and what is strategy, any incentive for placing in the front[/b]
Victor is mostly placed at its distributor’s shelf only. It is not found at every nook and corner as in the case of Confidor. Reduced price is the major strategy. It is available in 50ml, 100ml, 250ml, 500ml & 1liter pack
Now the basic fundamental in this industry which has to be understood is that there are two categories of products one is Brand and the other is Non Branded irrespective of its company tag. First question arises is what is a brand? A brand is a name of the product (molecule) which is well known to the farmers and is demanded by the farmers. All names of the same product (molecule) other than established brand comes under one umbrella i.e non-branded. Further strategies of companies may or may not differ for their branded products marketing. Following law of economics companies fix higher price tag for brands/super brands. Where as others have to sell same molecules at low prices at attract attention.
There are large number of regional, national and MNCs operating in the country. So almost every counter in the country is directly associated as distributor or distributor cum retailer with the one or the another company. In other way we can say that every counter has a different product name of a single molecule(other things being equal) to maintain monopoly of non-branded product. So a non-branded product is generally placed at one counter in a local area/market. This peculiar monopoly in itself becomes second most important incentive to a counter after low prices.
3. Shivalik Agro Chemicals (Regional co.) product (Sacdor, insecticide for paddy/wheat and cotton