Supply Chain Strategies of Raven Agro Chemicals Limited

The major objective of this report is to analysis overall about the supply chain strategies of Raven Agro Chemicals Limited. Other objectives are describe the distribution channel and distribution process and assess the market position of a some products. Finally discuss the customers preference about the product of Raven Agro Chemicals Limited and find out some implement able recommendations.

 

Objectives of the Study:

The primary objective of this report is to provide a critical review of the supply chain strategies of Raven Agro Chemicals Ltd.

The specific objectives are:

  • To describe the distribution channel and distribution process.
  • To assess the market position of a some products.
  • To assess the customers preference about the product of Raven Agro Chemicals Limited.
  • To provide some implement able recommendations.

Methodology of the report:

Study Approach

The study is explorative in the context of Raven Agro Chemicals Limited for the aspects focused mainly on the Supply Chain strategies. However, it can also be termed as descriptive and analytical. That means the study is in fact both qualitative and quantitative in nature.

Area of Survey

I have worked over all products of Raven Agro Chemicals Limited. Though some of their products are more popular in the farmers level and I have collect information from their marketing department based on sales and also visited some dealers of Narayongonj and Gazipur.

 

Source of Data

Majority of the study is based on primary data. However some secondary data source is collected from different government and non government agricultural organization.

Primary Data collection sources were done by direct interview to the targeted respondents and by administering questionnaires.

Secondary Data were collected from books, published documents, Annual Sales Meeting report of the company, survey reports, and different agricultural information system.

 

Sampling Plan

Target Population

The entire Customers who buy the agricultural pesticides of Raven Agro Chemicals Limited; The SO, dealers, retail outlets who sell Raven Agro Chemicals products.

Sampling unit :

Every Customer, SO, distribution points, the retail outlets of the mentioned areas is our sampling unit.

 

Sample Size:

Sample size was determined by applying judgmental method. Considering the time constraint and other limitations the sample size kept in a limit. In this survey my used sample size was 45.

My used sample size are:

  • Sales Officer : 10
  • Retailer/Dealer : 5 X 2 = 10 (5@distribution area)
  • Customers : 5 X 5= 25 (5@distribution area)

Sampling technique:

Judgmental sampling approach has been used in this survey to determine the sample size.

Data collection procedure:

Detail questionnaires were formulated for collecting data. The questionnaires were distributed among randomly chosen respondent. Among the respondent the study is divided into four groups.

  • Distributors who made the distribution of the products of Raven Agro Chemicals Limited.
  • Sales Representative who are engaged with selling the products.
  • Customers (Farmers) or user who may purchase or not the product of the Raven Agro Product.
  • Retailers/dealer who may sell or not the product of Raven Agro Chemicals Limited.

 

Overview of Organization:

Raven Agro Chemicals Limited start its business in 2003 with reputed and respected business house of  Bangladesh with a good slogan “to serve the people”  under the initiative of Md. Atiqur Rahman, Managing Director of the company and an expert person on agricultural pesticides marketing.

They have first started their business to produce pesticides and mixed fertilizer later on they also engaged the similar product in the name of Raven Formulations Limited. Some other proposed company also in their pipe line as Rave Aquaculture Limited, Mahin Enterprise.

Organizational Vision

  • The Vision of Raven Agro Chemicals Limited is:
  • To build a platform for our employees to accomplish their values.
  • To found an innovation nationwide competing enterprise.
  • To provide better agrochemicals products for nationwide customers in lower price.

Organizational Mission

“It our endeavor to Serve the nation by serving the farmers with products and necessary guidance”

Organizational Objectives

The Objectives of Raven Agro Chemicals Limited are:

  • To supply the quality products to the farmer with minimum cost.
  • To serve the people.
  • Conduct business in a socially responsible manner.
  • Maintain strict cost and quality control.

Location of Raven Agro Chemicals Limited:

The Head office of the company located at 167/A (3rd floor), Green Road, Dhaka-1205, factory of the company located at Plot Mizmi, Kanda para, Siddirgonj, Narayangonj. It contains two part one part for repacking area and another part production of formulation with a very popular items Ravfuran. The technology of the factory hired from china and the most of the machineries imported from chian and some are also from local made.

Glance Raven Agro Chemicals Limited:

The company has corporate offices at Dhaka. It has country wide 08 nos. of depot headed by Regional Sales Manager of no. 12  in addition to cover 58 nos. district with a 301 nos. dealer, total sales officer of 98.

 

Product Mix of Raven Agro Chemicals Limited

A Product Mix is the set of entire products and items that a particular seller offers for sell. Raven Agro Chemicals product mix has a certain width, length, dept, and consistency like other companies. The width of a product mix refers how many different products line the company carries. At present their present registered product are as follows.

 

Pesticides:

  1. Sarter 55 EC
  2. Runtp 50 EP
  3. Rambo 10 EC
  4. Recafos 20 EC
  5. Ravfuran 5G
  6. Recadin 10G/Basudeb 10G
  7. Ravthion 57 EC
  8. Super Lamda

Fungicides/Miticides:

  1. Ravit 80 WGR
  2. Metazil 72 WP
  3. Ravistin 50 WP
  4. Cabazeb 75 WP
  5. Stellazeb 80WP
  6. Sprinter 72 WP
  7. Temper M 76WP

Herbicide:

  1. Rigid 500 EC
  2. Rav Chlor 5G

Plant growth regulator (PGR):

  1. PGR Gold
  2. Roton D

Fertilizers:

  1. China Mono Zinc.
  2. Raven Boron.
  3. SOP-Shar, Germany
  4.  Rexal Super.

 

8 Marketing Mix of Raven Agro Chemicals Limited

Product

  • Product Varity : 5 types of product
  • Quality : Moderate
  • Feature : pesticides, Fungicides, Herbicides and Fertilizer
  • Brand Name : RavenÒ
  • Packaging : Foil pack, poly pack
  • Size : Various

Price

  • Discount : 8% to 15% to the distributors.
  • Credit : Credit is applicable on the basis of transaction for 90-10 days.
  • Payment : Distributor pays before delivery of the products, some dealer get a limit (a limit mean a certain limit of credit Facilities) .

Promotion

Sales Promotion :

  • Discount to the distributors.
  • Sometimes discount to the retailers.

Advertisement:

  • News Papers.
  • Local cable TV.
  • Poster at different places.
  • Direct Sales: Visit of the executives of Raven Agro Chemicals Limited.

Place

  • Dealer : Over 307 dealer around Bangladesh
  • Coverage : 58 districts Bangladesh
  • Transport : Own vehicles, transport agencies, and currier services

 

Wings:

Raven Agro Chemicals comprising named Raven Group. It has the following companies

  1. RAVEN Agro Chemicals Limited
  2. RAVEN Aqua Agriculture Limited
  3. RAVEN Formulations Limited.
  4. RAVEN Seeds Limited.
  5. M/s Mahin Enterprise.

Printing and Packaging:

Raven Agro Chemicals Limited using Poly pack, Foil Pack, Plastic Bottle and Glass bottle for liquid products and for some fertilizer used Plastic bag. The product design and others things main idea develop by the marketing department through approval of the director and printing and other thing collect from the class one printing products.

 

SWOT Analysis of Raven Agro Chemicals Limited:

Strength

  1. The have develop strong financial strength with a very short time.
  2. Strong brand image.
  3. Profitable operation from its inception.
  4. High growth.
  5. Got registration a huge no of product with very shortest time.
  6. Have an agreement with renound company of the world.

Weakness

  1. No personal production, production is import based.
  2. Huge credit in the market.
  3. Not given the proper attention for all product due to long product line
  4. Lack of technical person.
  5. MD’s participation of all cases.
  6. Insufficient number of employees.
  7. Less marketing orientation.

Opportunity

  1. Growth rate of pesticides in Bangladesh is high so, it is positive for such sector.
  2. Positive agricultural growth.
  3. Cultivation of high yielding variety is being increased, which needs such company.

 Threats

  1. The regulatory authorities of the government dictate the pricing policy.
  2. An unehitical competition among the markets.
  3. Multinational company has huge investment in this market.
  4. Company recognized by individuals.

 

Distribution Process of Raven Agro Chemicals Limited:

The distributors collect products from the Head Office of Raven Agro Chemicals Ltd. Firstly they send a product requirement list with pay order or D.D/T.T./Online sending against the order to the head office. Then the marketing department assesses the order list about the availability of the finished products in the store. If the required products are available then they transfer the products to the distribution center by their own vehicle. If sometimes the product is not available then the department transfers product to the distribution center on basis of availability and also backs the money that amount of product has not delivered.

Sales Growth of Raven Agro Chemicals Ltd.:

Raven Agro Chemicals Limited started its journey on 2003. In the short period Raven Agro Chemicals increase its sales volume sharply.  The last three years sales in listed on the bellow table for a overall idea.

Table: Last three year’s Sales: Figure in million Tk.

Year201020112012
Sales100.27122.25150.32

Product wise Sales in 2012:

The total sales volume of Raven Agro Chemicals Limited in 2012  is Taka 150.32 million where they have a huge nos. of product but some are the main product. The business sales depend on the crop season so, round the year their sales are not same. Following are the month wise sale.

Table: Monthly Sales in 2012

Monthsales in million Tk.
January
10.12
February22.33
March20.75
April20.39
May30.52
June7.80
July10.12
August1.19
September12.10
October8.25
November4.5
December2.25
Total
150.32

Market size of pesticides of Different Companies:

In Bangladesh the whole pesticides market is for Tk. 2,000.00 crore. From the among the dominant players are Syngenta, Bayer Crop Science, ACI Limited, Auto Crop Care, Hakem, Square, Padma Agro.

Table: Market Size of different companies . Figure in CroreTk.

Name of the CompanyYearly sales
Syngenta220
Bayer Crop Science165
Auto Crop Care105
Shetu, SEMCO65
ACI Limited135
Square Agriculture65
Mc Donald85
Raven Agro Chemicals15

 

Distribution Channels of Raven Agro Chemicals Limited:

Raven Agro Chemicals Limited trying to be the product leader in the pesticides market. They supplied their product allover the Bangladesh. Firstly they segmented the market in 7 zones on the basis of geography.

A) Jhenidah Depot

B) Barisal Depot

C) Dhaka Depot

D) Rangpur Depot

E) Comilla Depot

F) Mymensingh Depot

G) Bogra Depot

In every zone Rave Agro assigned individual Regional Sales Manager for controlling the distribution process.

In addition to zone they have appointed 12 (twelve) nos of Regional Sales Manager who has their personal commanding area of and 98 nos of  Sales Officer are working their supervision all over the county. They have some contractual basis very locally appointed sales person who are working directly supervision of the Sales Officer.

Every zone contains several distributors for distributing the products. The 307 nos. of dealer are the main agent of the company. As the agricultural product is sold out very local area so, they are dependent on the advice of such types dealer. So, considering quality factor they are the main person to advertise the product.

 

Dealer selection process:

Raven Agro Chemicals evaluate the distributors on the basis of the distributors business.

Raven Agro Chemicals concerned with:

  • First time the dealers must purchase at least the product of Tk. 2,00,000/-
  • The dealers to be involved business at least 02 (two) years of this business.
  • The dealers needs the ability to regular transaction with Raven Agro Chemicals Limited.

 

 

Working Procedure of the dealers:

In every distribution point there is a Sales Officer are available for helping the distributors. Every distributor has their individual root plan for distributing the product. The distributors as usual work 6 days in a week. The distributor and the SO cover one or more root in a working day. There are lot of outlets exist in a root. The distribution process of distributors requires at least 2 days. First day the SO collect order (or some times the cash) from the outlets and in the evening they submit the orders to the depot/HO. And in the next day, the depot/HO delivered the products by using their own delivery.

Duties of the SO :

These people are working as promoter of the product. They performed dual activities one  for convincing the dealer and another for motivating the farmers. They are mainly concerned about the activities of the dealer about the product. The SO are daily monitoring the sales point. They help the dealer to taking decision about giving order for the product. The people also collect order from the dealer. The SO has a main duty to giving report about the whole working day to the  Zoanl Sales Manager & Country Sales Manager. It will mainly cover the quantity of the product in distributor house and the activities of the distributors towards the products.

 

Findings and Analysis of the Survey:

My main target of this report to study the supply chain strategy of Raven Agro Chemicals Limited. I have thoroughly study the marketing procedure, channels and the product wise market size in addition to competitors market and over all market size of the pesticides in our county.

Analysis and Findings of data that are collected from Dealer:

Statement 1. How the farmer collect the product?

Table: Collection of pesticides from dealer to farmer.

StatusNo. Of Dealer
Own4
Influenced by others6
Total10

I made survey over the 10 dealers of surroundings of Dhaka City. Four (04) of them agree that Farmers buy pesticides from own decision but six (6) told that they are influenced by others farmer or decision maker farmer or by them.

Statement 2. . Do you penetrate any product to full fill your target?

Table:Market Penetration through dealer

StatusNo. Of Dealer
Yes3
No7
Total10

 

Statement 3: Which factor you consider more for doing business with Raven Agro Chemicals Limited?

Table:Suggest purchasing product

StatusNo. Of Dealer
Brand Name3
Consumer Preference4
Retailer Suggestion2
Other1
Total10

From the above survey 45% dealers told that farmers prefer the product from his previous experience or any other influential reasons. 33% told about the brand and only 22% purchased by dealer suggestion.

Statement : 4 Which brand’s sold by you more?

Table:Product wize sale performance

StatusNo. Of Dealer
Basudeb5
Ratna Tara3
Run Tup1
Rav Furan1
Total10

From the above question it has been found that 50% dealer sold Basudeb more and 30% are next than 30%.

 

Statement: Why  do you like to Raven Agro Chemicals Limited compared to others?

Table: Sale performance.

StatusNo. Of Dealer
Due to low price2
For  getting more benefit from the company2
Due to customer preference4
For credit facilities2
Total10

From the above 40% dealer sold due to customer preference but 20% each also sold due to getting more facilities, customer preference, and credit facilities from the client.

Statement : What is your opinion about size of your distribution area?

Table: Distribution area:

StatusNo. Of Dealer
Small6
Perfect4
Large0
Total10

From the above survey 60% dealer informed that they have more ability to expand their business and 40% told that the area is reasonable.

 

Statement: Have you got the product in due time?

Table: Goods received time from the dealer

StatusNo. Of Dealer
Yes7
No3
Total10

70% of the client has agreed that they got goods in due time, 30% are raised complained that it is delayed in some times which hampered their business.

 

Statement : Have you faced any problems to contact with the Sales Officer?

80% dealers showed satisfaction to work with the sales officer but 20% has some objection. But the objection may be raised not to give undue facilities to the dealer.

Table: Dealers satisfaction to contact with Marketing Officer.

StatusNo. Of Dealer
Yes8
No2
Total10

 

Statement: Do you get available supply after getting order?

80% dealers showed satisfaction to get available supply but 20% has some objection. But the objection may be raised not to give undue facilities to the dealer.

Table : Supply Efficiency with the dealer

StatusNo. Of Dealer
Yes8
No2
Total10

 

Statement: Are you satisfied to do business with the company?

70% dealers showed satisfaction to get available supply but 30% has some objection. But the objection may be raised not to give undue facilities to the dealer.

Table: Business man satisfaction

StatusNo. Of Dealer
Yes7
No3
Total10

 

Analysis and Findings of data that are collected from Sales Officer:

Statement: What is the over all position of your market?

Table: Company status

StatusNo. Of  SO
Market leader2
Market Challenger8
Market Follower0
Market Nicher0
Total10

80% of their officer thing that their company position as market challenger and 20% of them thing that they are the market leader . No data support in comment of 20 %.

 

Statement: Do you think the quality of your product is good?

Table: Quality of the product

StatusNo. Of  SO
Yes10
NO0
Total10

It is 100% but this is not possible, probably this is a over valuation by the employee of the company or some times may be strategic answer. As a market has another dominant player.

 

Statement: Is it over price or reasonable price?

Table: Price status product

StatusNo. Of  SO
Over price 11
Resonable price9
Total10

Most of the sales officer informed that their product sold under reasonable price, among 10 only 01 sales officer told that some product price is over than compared to others.

 

Statement: About how many dealer take products regularly?

Table:Dealers status

StatusNo. Of  SO
Less than 50
Less than 107
Less than 152
More than 201
Total10

70 % of the dealers are taking delivery of goods from the sales  officer and another are not stopped but taking after a certain reasons.

Statement: Is it possible to visit the entire dealer outlets of rote in a working day?

Table: Dealer’s communication by the sales officer

StatusNo. Of  SO
Yes8
No2
Total10

Most of the sales officer told that they can somehow communicate with the dealer but 20% shows argument that this is not necessary so, they didn’t do it.

 

Statement: Have any faced any problem to manage the dealer?

Table: Dealers Handing by the sales officer

StatusNo. Of  SO
Yes6
No4
Total10

75% of the sales officer shows their problem or mismatch to work with the dealer. So, a major portion had to work under pressure due to credit sale.

 

Statement: why your product considered you the best or high sale with reasons?

Table: Reason for best selling

StatusNo. Of  Customers
Brand name1
Price1
Availability2
Incentives6
Total10

Among 100%, 65% things that this is possible due to getting more incentive facilities from the company, Product quality and commitment of the company.

 

Data Analysis that are collected from Customer:

Statement: How do you know about the company product?

Table:How customer about the product

StatusNo. Of  Customers
Others Farmer15
Dealer10
Total25

I have taken inteview of 25 nos. of customer where 60% percent are informed us that they have been informed about the company from others farmer and remaining by dealer.

 

Statement: Do you used this product earlier?

Table:Information about the product

StatusNo. Of  Customers
Yes15
No10
Total25

From the above survey we would like to know that the farmer is early known about the product or newly introduced. From the above survey it may be clear that how the marketing force work.

 

Statement: what is your comment about overall quality of the Raven Product?

Table: Customer satisfaction

StatusNo. Of  Customers
Average2
Good7
Excellent15
Highly Satisfied.1
Total25

From the above data it has been observed that 60% are comment as excellent.

 

Statement : Which factor you considered to purchase the product?

Table: Purchase preference

StatusNo. Of  Customers
Brand Name2
Retailer Suggestion7
Consumer Preference15
Others1
Total25

Most of the custormer comments that they buy this product from their own choice. But this choice may be due to previous used of the product and some times may be influenced by others.

 

Statement: Which product would you choose more?

Table:Product performance

StatusNo. Of  Customers
Basudeb10
Ratna Tara7
Run tup3
Ravfuran5
Total25

From the above survey we have got that Basudeb is the most popular than to Ratnatara. But this may be varied from place to place. As some crop are dominant is some region.

 

Statement: Why do you like to Raven Agro Chemicals Limited compared to others more?

Table:using product by the customer

StatusNo. Of  Customers
More active than others product2
Low price rate5
Get available in local market10
Due to communication of various media8
Total25

40% farmer comment their opinion than that they are using the product due do availability in local market and remaining most due to the communication of various persons they may be dealers, sales officer, Regional Sales Manager, Country Sales Manager.

 

Promotional Tools:

Raven using very common & conventional tools for the promotional purpose. The difference items are :

Marketing forces are named as Sales Officer trained by different procedure for their knowledge level as well as their sales man ship activities. Some of their training procedure are a technical and very professional. The following is a slide of motivation activities mentioned here for a sample.

A figure of How to motivate:

Everyone makes buying decisions to satisfy one of the six motivations. The sales call would be much easier if specific motivation is identified prior.

The additional items such as brochure and different advertisement in local area is their additional items. They also use local cable to advertisement of the product.

Dealer:

Dealer are the main agent of such business. They are work just the farmer and farmer also keep trust on them. As they are the very known person of the farmer so, it is easy to motivate by them. They give dealer the cash back facilities for a certain sale up to 15%. In every year they made only one dealer for foreign visit with their marketing team. A national get together also made to a inspiration combindly.

 

Recommendations for Raven Agro Chemicals Ltd.:

After completing the survey and data analysis I have concluded the results. Almost the distribution process and channel of Raven Agro Chemicals Limited is good but the process sometimes creates misunderstanding with the distributor and the farmer. II like to recommend some actions for Raven Agro Chemicals Ltd.

These are:

  • Country Sales Manager and his marketing team should be more responsible to achieve their goals.
  • Credit should be allowed only for a limited no of dealer who didn’t failed to commitment.
  • Own production to be increased to profit maximization.
  • Sales Officer  should be more communicated behavior with Government agricultural officer and different NGO’s who are working directly to the poor farmer.
  • Reasonable price allow the farmer to procure their product to maximum market occupied and ultimate sales growth.
  • Management and Marketing should be an invisible isolation to meetup the target as well as market structure development.
  • Raven Agro Chemicals Limited needs to arrange a quarterly meeting with the distributors and SO’s together. So, the gap between them will minimize.
  • Use credit as a tool to play in a competitive environment to achieve company objective
  • Maintain relationship with distributor, retailer, farmer and external influencers as a company representative and build up company image.
  • Immediate  report  on  disease  out  breaking  or  epidemic situation caused by infestation of insects in crops to take at once measure to   overcome the situation by using our products.
  • Maintain liaison with Agricultural Extension Department personnel and with other external influencers at thana and district level.
  • Develop a corporate culture among the company with increasing of company volume.

 

Conclusion of the Report:

This report on the basis of the data which has been collected during my internship period with Raven Agro Chemicals Limited. I was working in Head Office and factory at Narayangonj with the distribution of some places of Narayangonj and Gazipur. There are 7 (seven) depot with 307 nos. of dealer.

Primary and secondary data both used for the study of this report. The nature of my research is explorative and also descriptive. The study is in fact both qualitative and quantitative in nature. In this report open-end and close-end questionnaires for gathering data.

Raven Agro Chemicals Limited has already reached a position with a very shortest time through their existing plan of marketing. The whole market size is more than 2000 crore but Raven sales is Tk. 15.00 crore in the last year by rapid competition over foreign brand like Syngenta, Byer Crop Science even dominant product of Bangladesh such as SEMCO, Shetu Pesticides, ACI Agro, Square Agro. There are some problems has been found in distribution channels which may be treated as a weak side of the company or other hand it may be said that the identified things to be made attention of the company. Delay of distribution, Manging Director should make a strategic plan to control over Marketing, Accounting and Factory management. This three are the most important department of  a company, a mutual combination of three may be expedite the business of the company. In addition it to be added that Managing Director should depend on marketing department to avoid huge credit sale and should appointed dependable employee for such operation. The distributor and SR/SOs said if they overcome the product delivering delay they would take the Market Leader position within a short period. It may be happened that credit sale made them bound to delay delivery, so a team of distribution also develop as part of business strategies.

This report was made the sample survey in some places of Narayangonj and Gazipur only; so it may not be the whole picture of the whole country. I’ve used my maximum effort for complete the project successfully.

This project work not only as a part of my course work, but also to learn the research work. This project improved my knowledge about real distribution channel, marketing concepts, Project handling, questionnaire development, data collection, documentation and many other concepts & terms which was related to my study.