marketing stretegyand its types

1. 1
Marketing Strategies
for Specialty Fertilizers
M N Bhaskaran
Executive Vice President – Downstream Business
Nagarjuna Fertilizers and Chemicals Limited
Hyderabad - India
• Value Proposition in Food Chain
• Food security is nothing but Nutrient Security
• Solutions to enhance both productivity and Nutrient Value
• Marketing strategy for Specialty Fertilizers
• Nutrigation
• Marketing strategy for Nutrient Enhance Drivers
• Foliar feeding
• CFG for field crops
• Slow and Control Release Fertilizers
• Conclusions
Presentation Flow

2. 2
• To Produce ample nutrients for posterity
• To Nurture plants with appropriate nutrition to safe guard planet
• To Promote the products to make customer realize value for its price
• To Produce protein for people at affordable price
Value Proposition in Food Chain
• Water is vital to life
Sources : Ground water, Rain, Lakes, Canal, Rivers. Precious input on the planet
• Nutrient to nurture, nourish life forms
Source: Nutrient stock in the soil, Different combinations of Fertilizers
• Water & Nutrient are sine qua non for food security
Enhance Nutrient value of produce
Enhance productivity while maintaining soil health
Food Security
Pivotal inputs for Agriculture

3. 3
• Nearly 600 million Indians depend directly on Agriculture (54%)
• Agriculture contributed around 16.6% of GDP in 2010-11
• India’s food grain output is set to touch all time record of 235.88 million tones
• India has produced a record of 17.29 million tones of Pulses
• Food grain acreage are saturated
• Farmers are now shifting to commercial and F&V crops
-10
0
10
20
30
40
50
60
Rice
P
ulses
W
heat
Cotton
M
aize
Vegetable
s
Sugarcane
Fruits
O
ilseeds
Crop
%shift
Series1
Snap shot on Agriculture Scenario
• Judicious use of water helps to enhance water use efficiency
• Field studies clearly demonstrate that irrigation raises yields significantly for FNV
• Net returns in case of FNV cultivation rise dramatically with the availability of irrigation
• Chance to improve further 50% more yield Micro Irrigation potential of India is exploited
• Most of the state governments are encouraging Micro Irrigation projects
• Currently around 5.0 million ha has been covered under MI
• MI facilitate WSF to pass through Drip lines to enhance both WUE & NUE
Micro Irrigation (MI)

4. 4
• Horticulture sector contributing around 24% of Agri GDP.
• In global trade our share remains low at 1.7% & 0.5% of V&F respectively.
• Non implementation of BMP s in horticultural sector is the cause of concern.
• Minimizing environmental impact while maintaining high yields is order of the day.
• F&V is one of the constituents in food chain and directly contributes
the food security.
• Dire need to design extension programs to improve productivity.
Snap shot on Horticultural scenario
Others
2008-09
Million MT
Urea 26.6
DAP 9
Complex 7
SSP 2.5
Potash 5
0.1
Total 50.2
SSP
DAP 10.3
2010-11
Million MT
Urea 28.2
Complex 10.2
3.5
Potash 5.8
Total 59
+ 46%
+ 18%
1951 - 2007 2007 - 2011 2012……
Urea , DAP
Multi-nutrient
Complexes
Customized
Fertilizers
Paradigm Shift from Generic to Specialty

5. 5
• Government support
• Subsidy available
• Product Awareness levels are high
• Doest not required special promotion
• Logistics based
Traditional Fertilizers - Strengths
• Low NUE
• Indiscriminate usage due to low cost
• Imbalanced application due to subsidy
• Higher levels of soil and water contamination
• Standard combinations to all type of soils
Traditional Fertilizers - Weakness & Threats

6. 6
• To enhance Nutrient Use Efficiency (NUF)
• Nutrigation and Foliar techniques using WSF for F&V crops
• To produce exportable produce
• CFG for tailor made nutrient management for field crops
Need For Innovative Specialty Fertilizers
Cultural change- Food Security- Better tomorrow
1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11* 2011-12
Fertigation 1500 4000 5000 6300 7000 9400 12500 14000 21000 25500 33100 45600 57000 78000
Foliar 1000 1500 2000 2300 2600 2600 3500 4500 6000 5000 4700 14000 18000 22000
0
20000
40000
60000
80000
100000
Qtyinmt
WSF Market size

7. 7
•Synergy with Micro Irrigation (MI)
•Lot of encouragement for MI from state governments
•Impetus on fertigation/ Nutrigation
•Market size is growing steadily
•Can be offered stage wise recommendation to enhance NUE
•No fixation and No soil pollution
Strengths & Opportunities of SF
Weakness & Threats
• Concept selling
• Totally Imported fertilizers (except WS-NPK)
• Shortage of supply in the peak seasons
• Extensive customer education
• SF are expensive in comparison to bulk fertilizers
• No Subsidy and fluctuating international prices
• Farmers desist use SF owing to disproportionate expenditure

8. 8
Market Segmentation Approach
• Intensive Farmer Contact Program (IFCP)
• Technical Film screening through Audio Visual Vans
• Mailing Letters
• Village Meetings
• Crop Seminars
• Dealer Training Programs
• Field visits
• Farmers Clubs
Marketing Strategy for SF

9. 9
Foliar Feeding
• Supplement
In addition to soil application
• Prophylactic
Prevent nutrient disorders
• Curative
Repair mechanism
• Contingent – Exigency
Stress due to accumulation of water
Foliar Feeding

10. 10
Marketing Strategy
• Emphasis on Foliar & Nutrigation
Fruits & Vegetables
• Dealer Education
Make them aware of Techniques
Sub-dealers meetings
• Village meetings with AV Vans
Farmers to farmer contact
Number of village meetings
Strategy to be adopted

11. 11
Customized Fertilizers Usage
Nagendra Rao & Shrivastava (2010): Zn SO4 coating process: Patent filed
GOI approved CF Grades

12. 12
CF Marketing Strategy
• Designed to release plant nutrients throughout the growth season
• Require single, pre-plant application
• Made of granular fertilizers encapsulated in a polymer resin coating.
Nutrient core
Polymer coating
Slow & Controlled Release Fertilizer (SCRF)

13. 13
After application, the granule takes up
moisture over a period of 7-10 days,
depending on the longevity of the product.
SCRF Technology
Release carries on through
the growth season according to the soil temperature.
If it drops – so does the release rate.
SCRF Technology

14. 14
Core
Coating
Scanning Electron Micrograph of SCRF
The challenges:
• Reduce nutrients rate (higher NUE)
• Reduce ground water contamination
• Save water (no tech. irrigation)
• Simple nutrition operation
• Save manpower (single application)
SCRF - New Generation Fertilizers

15. 15
SCRF are different NPK blends meant for soil applications.
SCRF have fast-acting nutrients ingredients in them.
SCRF - NPK Fertilizers Blends
• All extension programs are to be designed keeping the value chain in mind (plant –people - planet)
• Plenty of opportunities to improve qualitative F&V products by adopting Nutrigation with WSF
• Foliar feeding should be popularized to enhance nutrient value of the produce
• Slow and Control Release fertilizers are new generation fertilizers to avoid ground water contamination
• Positioning strategy and provide solutions to customer is sine qua non for SF
• Communication to customer about SF s has to be made practice on regular basis.
Conclusions

16. 16
Thank you
for your attention