A STUDY

ON

“CUSTOMER SATISFACTION”

WITH REFERENCE TO

KPR AGROCHEM LIMITED, BICCAVOLU

(A Report Submitted to the Department of Management Studies in Partial

Fulfilment of the Requirements for the Award of the Degree of)

BACHELOR OF BUSINESS ADMINISTRATION

Submitted By
PENDYALA SURESH
Regd.No: 160378300141
Under the Esteemed guidance of

SRI G.ABRAHAM
M.B.A., M.COM.,(Ph.D).,NET.,SET.,

Associate Professor

ADITYA DEGREE COLLEGE

AFFLIATED TO ADIKAVI NANNAYA UNIVERSITY, RAJAMAHENDRAVARAM

(ACCREDITED BY NAAC WITH B++ GRADE)

KAKINADA

(2016-2019)
 ADITYA DEGREE COLLEGE
(AFFILIATED TO ADIKAVI NANNAYA UNIVERSITY))
KAKINADA

(B.B.A. Programme)
CERTIFICATE

This is to certify that this REPORT is entitled ………………………..

……………………………………………………………………….
is a bonafide work of ………………………………………………..
Submitted in Partial Fulfilment of the Requirement For the Award of
The Degree of Bachelor of Business Administration From ADIKAVI
NANNAYA UNIVERSITY, RAJAHMENDRAVARAM.

PROJECT GUIDE HEAD OF THE DEPTARTMENT

External Guide
 CERTIFICATE

This is to certify the project work entitled A Study on “CUSTOMER

SATISFACTION” with reference to KPR AGROCHEM LIMITED,

BICCAVOLU Submitted by PENDYALA SURESH in partial fulfilment for the

award of B.B.A Degree is bonafide work carried out by his under my guidance and
supervision.

Place:
Date:
GUIDE
 DECLARATION

I, PENDYALA SURESH student of Department of Management Studies, AKNU hereby declare

that the project report entitled “CUSTOMER SATISFACTION” With reference to KPR

AGROCHEM LIMITED; BICCAVOLU, has been submitted by me in partial fulfilment of

the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION by Adikavi

Nannaya University, Rajamundry.

This project work is original and done by me and has not been submitted to any other

university for the award of any degree or diploma.

PLACE: KAKINADA

DATE:

(PENDYALA SURESH)
 ACKNOWLEDGEMENT

I express my deep sense of gratitude with profound happiness to the following personalities who

lend the esteemed encouragement in completing project successfully.

It’s my privilege to thank Mr. N.SHESHA REDDY, Chairman, Aditya Group of Educational

Institutions for providing state of the art facilities, experienced and talented faculty members.

I thank Mr.B.E.V.L.NAIDU, Principal, Aditya Degree College, Kakinada and Mrs. K.

KARUNA, Principal, Aditya Degree College for Women, Kakinada for their continuous support

and encouragement in my endeavour.

I thank DR.G.SRINIVASA RAO, Principal, Aditya MBA college, Kakinada, for his continuous
support and encouragement in my endeavour

I would like to express my sincere thanks to Mrs. S.SUMA, Head of the Department of
Commerce and Management Studies for giving me the opportunity to take up this project.

I would like to express my sincere thanks to SRI ABRAHAM, under whose guidance i could

make a thorough and complete copy of my project work.

I wish to express my special thanks to Mr. KALIDASU GARU, HR - manager of KPR

AGROCHEM LIMITED, BICCAVOLU Who extended his kind support for the successful

completion of the project.

Finally I would like to express my heartfelt and sincere gratitude to my beloved parents and

friends without their support and encouragement I would not have finished this work. I also

express my sincere thanks to my well-wishers, who helped me in preparing the project work and

made me to present with in time.

(K.P.S.ADITYA REDDY)
 CONTENTS PAGE NO.

CHAPTER-1 1-7
 INTRODUCTION
 NEED FOR THE STUDY
 SCOPE OF THE STUDY
 OBJECTIVES OF THE STUDY
 METHODOLOGY
 LIMITATIONS OF THE STUDY
CHAPTER-2 8-19
 INDUSTRY PROFILE
CHAPTER-3 20-41
 COMPANY PROFILE
CHAPTER-4 42-53
 THEORETICAL FRAME WORK
CHAPTER-5 54-67
 DATA ANALYSIS AND INTERPRETATION
CHAPTER-6 68-70
 FINDINGS
 SUGGESTIONS
 CONCLUSION
ANNEXURE 71-73
 BIBLIOGRAPHY
 QUESTIONNAIRE
 CHAPTER 1

INTRODUCTION

1
 INTRODUCTION

Marketing occupies an important place in the organization of a business unit. Marketing is

the purpose of business activities in the direct flow of goods and services from producer to
consumer. Philip Kotler defines “Marketing is analysis, organizing, planning and
controlling of the firms customer impinging resources, policies, activities with a view to
satisfying the needs and wants of chosen customer groups at a profit.” The prime objective
of modern marketing is the satisfaction of customer needs. The marketing functions are not
only limited to the functions by buying and selling but also include all functions which
satisfies the customers such as financing, storing, rich bearing, after sale services etc.
marketing is related to the needs of buyers.

According to Cundiff and Still “Marketing is the business by which products are matched
with markets and through which transfers of ownership are affected.” Marketing activities
are concerned with the demand fulfilling efforts of the enterprise. Marketing is the unique
of the business.

Marketing has a special significance in both developed and under developed economies. In
the underdeveloped countries rapid development of the company is possible only by
adopting modern methods of marketing. In the developed countries due to high update
technology the volume of production is more than the demand. In order to balance both
demand and supply marketing is very important. Marketing helps to improve standard of
living of the people. Marketing provides wide employment opportunities. Marketing is
considered as yesterday’s luxury but today it is a necessity. Marketing converts latent
demand in to effective demand.

The marketing mix consists of 4p’s of which place is very important. In the modern concept
it is called as distribution. Distribution of anything is done through channels. Distribution is
based by the producer after production.The production is meant for satisfying the needs of
consumer and it much reach to the ultimate consumer for which it is made.

2
DEFINITION OF MARKETING:

According to PHILIP KOTLER “Marketing is defined as a societal process by

which individuals and groups obtain what they need and want through creating, offering and
freely exchanging products and services of value with others ”.

CUSTOMER SATISFACTION:

Customer satisfaction is a term frequently used in marketing. It is a measure of how

products and services supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as “the number of customers, or percentage of total
customers, whose reported experience with a firm, its products, or its services (rating)
exceeds specified goals.” In a survey of 200 senior marketing managers, 71% responded
that they found a customer satisfaction metric very useful in managing and monitoring
their businesses.

Satisfaction is a personal feeling of pleasure or disappointment resulting from comparing

products perceived performance (or outcome) in relation to his or her expectation.

-Philip Kotler

“A service is an act or performance that one party cannot offer to another that is
essentially intangible and does not rest in the ownership of anything”

I have done my project in KPR Agrochem Limited, Balabarapuram. The study

was an overwhelming experience which helped to gain an insight into a number of new

things. The main intention to do this project is to know about the level of satisfaction of

the customers (famers) and also the changes and additional requirements the customers

want in the products of the KPR Agrochem Limited.

3
 NEED FOR THE STUDY

Customer satisfaction is seen as more important concept in the

marketing. Every marketing aspect aim to deliver its products to the
customers.

Customer satisfaction is seen as a big concern in the marketing

became it is a difficult task to retain the existing customers and develop new
customers.

The need for the study is to identify the satisfaction level of the
customers using KPR products. It helps me to understand the various
strategies used by the company in terms of price, quality or quantity which
gives more satisfaction and ultimately retain the customer for long time.

4
 SCOPE OF THE STUDY

The scope of the study is limited to Marketing domain where I have taken KPR

AGROCHEM LIMITED for my study. I have restricted my scope to the topic

customer satisfaction. The study was conducted on 50 customers on random basis

who were visiting the plant.

5
 OBJECTIVES OF THE STUDY

 To study industrial profile and company profile of KPR AGROCHEM LIMITED.

 To find the satisfaction levels of customers using KPR products.

 To study various services provided by KPR AGROCHEM LIMITED.

 To understand quality assurance provide by the KPR to its customers.

 To give suggestions, if required to the customers using KPR products.

6
 METHODOLOGY OF THE STUDY

Collection of data plays a key role in the researcher. The accuracy of the collected data is

of great significance for drawing correct and valid conclusion from the investigation.

1.Primary data

2. Secondary data

SOURCES OF DATA COLLECTION:

PRIMARY DATA:

It is the first hand information and data collected directly from the employees in the

organization. My source of collecting primary data is through interacting with marketing

department. I have also gathered information by the help of finalized questionnaire,

which includes first hand information. It can be viewed as survey..

SECONDARY DATA:

Secondary data is called as second hand information or processed information. My source

of secondary data is through the company websites, magazines, and pamphlets of KPR

Agochem Limited.

SAMPLE SIZE: 50

7
 LIMITATIONS OF THE STUDY

 The time span for the project is limited to 6 weeks

 The procedure and polices of the company do not allow disclosing confidential

information.

 All the farmers could not able to spare their time for answering the questionnaire.

 The study is confined to only areas in East Godavari District.

 The scale plan is tentative and is subjected to vary due to seasonal changes.

8
 CHAPTER 2
INDUSTRY PROFILE

9
 INDUSTRY PROFILE

Fertilizer

Fertilizer is a substance added to soil to improve plants' growth and yield. First used by
ancient farmers, fertilizer technology developed significantly as the chemical needs of
growing plants were discovered. Modern synthetic fertilizers are composed mainly of
nitrogen, phosphorous, and potassium compounds with secondary nutrients added. The
use of synthetic fertilizers has significantly improved the quality and quantity of the food
available today, although their long-term use is debated by environmentalists.

Like all living organisms, plants are made up of cells. Within these cells occur numerous
metabolic chemical reactions that are responsible for growth and reproduction. Since
plants do not eat food like animals, they depend on nutrients in the soil to provide the
basic chemicals for these metabolic reactions. The supply of these components in soil is
limited, however, and as plants are harvested, it dwindles, causing a reduction in the
quality and yield of plants.

Fertilizers replace the chemical components that are taken from the soil by growing
plants. However, they are also designed to improve the growing potential of soil, and
fertilizers can create a better growing environment than natural soil. They can also be
tailored to suit the type of crop that is being grown. Typically, fertilizers are composed of
nitrogen, phosphorus, and potassium compounds. They also contain trace elements that
improve the growth of plants.

The primary components in fertilizers are nutrients which are vital for plant growth.
Plants use nitrogen in the synthesis of proteins, nucleic acids, and hormones. When plants
are nitrogen deficient, they are marked by reduced growth and yellowing of leaves. Plants
also need phosphorus, a component of nucleic acids, phospholipids, and several proteins.
It is also necessary to provide the energy to drive metabolic chemical reactions. Without
enough phosphorus, plant growth is reduced. Potassium is another major substance that
plants get from the soil. It is used in protein synthesis and other key plant processes.
Yellowing, spots of dead tissue, and weak stems and roots are all indicative of plants that
lack enough potassium.

10
Calcium, magnesium, and sulfur are also important materials in plant growth. They are
only included in fertilizers in small amounts, however, since most soils naturally contain
enough of these components. Other materials are needed in relatively small amounts for
plant growth. These micronutrients include iron, chlorine, copper, manganese, zinc,
molybdenum, and boron, which primarily function as cofactors in enzymatic reactions.
While they may be present in small amounts, these compounds are no less important to
growth, and without them plants can die.

Many different substances are used to provide the essential nutrients needed for an
effective fertilizer. These compounds can be mined or isolated from naturally occurring
sources. Examples include sodium nitrate, seaweed, bones, guano, potash, and phosphate
rock. Compounds can also be chemically synthesized from basic raw materials. These
would include such things as ammonia, urea, nitric acid, and ammonium phosphate.
Since these compounds exist in a number of physical states, fertilizers can be sold as
solids, liquids, or slurries.

HISTORY OF FERTILIZERS

The process of adding substances to soil to improve its growing capacity was developed
in the early days of agriculture. Ancient farmers knew that the first yields on a plot of
land were much better than those of subsequent years. This caused them to move to new,
uncultivated areas, which again showed the same pattern of reduced yields over time.
Eventually it was discovered that plant growth on a plot of land could be improved by
spreading animal manure throughout the soil.

Over time, fertilizer technology became more refined. New substances that improved the
growth of plants were discovered. The Egyptians are known to have added ashes from
burned weeds to soil. Ancient Greek and Roman writings indicate that various animal
excrements were used, depending on the type of soil or plant grown. It was also known
by this time that growing leguminous plants on plots prior to growing wheat was
beneficial. Other types of materials added include sea-shells, clay, vegetable waste, waste
from different manufacturing processes, and other assorted trash.

Organized research into fertilizer technology began in the early seventeenth century.

11
Early scientists such as Francis Bacon and Johann Glauber describe the beneficial effects
of the addition of saltpeter to soil. Glauber developed the first complete mineral fertilizer,
which was a mixture of saltpeter, lime, phosphoric acid, nitrogen, and potash. As
scientific chemical theories developed, the chemical needs of plants were discovered,
which led to improved fertilizer compositions. Organic chemist Justus von Liebig
demonstrated that plants need mineral elements such as nitrogen and phosphorous in
order to grow. The chemical fertilizer industry could be said to have its beginnings with a
patent issued to Sir John Lawes, which outlined a method for producing a form of
phosphate that was an effective fertilizer. The synthetic fertilizer industry experienced
significant growth after the First World War, when facilities that had produced ammonia
and synthetic nitrates for explosives were converted to the production of nitrogen-based
fertilizers.

Management of soil fertility has been the preoccupation of farmers for thousands of
years. Egyptians, Romans, Babylonians, and early Germans all are recorded as using
minerals and or manure to enhance the productivity of their farms. The modern science of
plant nutrition started in the 19th century and the work of German chemist Justus von
Liebig, among others.

John Bennet Lawes, an English entrepreneur, began to experiment on the effects of

various manures on plants growing in pots in 1837, and a year or two later the
experiments were extended to crops in the field. One immediate consequence was that in
1842 he patented a manure formed by treating phosphates with sulphuric acid, and thus
was the first to create the artificial manure industry. In the succeeding year he enlisted the
services of Joseph Henry Gilbert, with whom he carried on for more than half a century
on experiments in raising crops at the Institute of Arable Crops Research.

The Birkeland–Eyde process was one of the competing industrial processes in the
beginning of nitrogen based fertilizer production. This process was used to fix
atmospheric nitrogen (N2) into nitric acid (HNO3), one of several chemical processes
generally referred to as nitrogen fixation. The resultant nitric acid was then used as a

12
source of nitrate (NO3-). A factory based on the process was built in Rjukan and
Notodden in Norway, combined with the building of large hydroelectric power facilities.

The 1910s and 1920s witness the rise of the Haber process and the Ostwald process. The
Haber process produces ammonia (NH3) from methane (CH4) gas and molecular nitrogen
(N2). The ammonia from the Haber process is then converted into nitric acid (HNO3) in
the Ostwald process. The development of synthetic fertilizer has significantly supported
global population growth — it has been estimated that almost half the people on the Earth
are currently fed as a result of synthetic nitrogen fertilizer use.

The use of commercial fertilizers has increased steadily in the last 50 years, rising almost
20-fold to the current rate of 100 million tons of nitrogen per year. Without commercial
fertilizers it is estimated that about one-third of the food produced now could not be
produced.

A maize crop yielding 6–9 tons of grain per hectare requires 31–50 kg of phosphate
fertilizer to be applied, soybean requires 20–25 kg per hectare. Yara International is the
world's largest producer of nitrogen based fertilizers.

Controlled-nitrogen-release technologies based on polymers derived from combining

urea and formaldehyde were first produced in 1936 and commercialized in 1955. The
early product had 60 percent of the total nitrogen cold-water-insoluble, and the unreacted
(quick release) less than 15%. Methylene ureas were commercialized in the 1960s and
1970s, having 25 and 60% of the nitrogen cold-water-insoluble, and unreacted urea
nitrogen in the range of 15 to 30%.

In the 1960s, the National Fertilizer Development Centre began developing Sulfur-coated
urea sulfur was used as the principle coating material because of its low cost and its value
as a secondary nutrient. Usually there is another wax or polymer which seals the sulfur;
the slow release properties depend on the degradation of the secondary sealant by soil
microbes as well as mechanical imperfections (cracks, etc.) in the sulfur. They typically
provide 6 to 16 weeks of delayed release in turf applications. When a hard polymer is

13
used as the secondary coating, the properties are a cross between diffusion-controlled
particles and traditional sulfur-coated.

Raw Materials

The fertilizers outlined here are compound fertilizers composed of primary fertilizers and
secondary nutrients. These represent only one type of fertilizer, and other single nutrient
types are also made. The raw materials, in solid form, can be supplied to fertilizer
manufacturers in bulk quantities of thousands of tons, drum quantities, or in metal drums
and bag containers.

Primary fertilizers include substances derived from nitrogen, phosphorus, and potassium.
Various raw materials are used to produce these compounds. When ammonia is used as
the nitrogen source in a fertilizer, one method of synthetic production requires the use of
natural gas and air. The phosphorus component is made using sulfur, coal, and phosphate
rock. The potassium source comes from potassium chloride, a primary component of
potash.

Secondary nutrients are added to some fertilizers to help make them more effective.
Calcium is obtained from limestone, which contains calcium carbonate, calcium sulphate,
and calcium magnesium carbonate. The magnesium source in fertilizers is derived from
dolomite. Sulfur is another material that is mined and added to fertilizers. Other mined
materials include iron from ferrous sulfate, copper, and molybdenum from molybdenum
oxide.

The Manufacturing Process

Fully integrated factories have been designed to produce compound fertilizers.

Depending on the actual composition of the end product, the production process will
differ from manufacturer to manufacturer.

Nitrogen fertilizer component

Ammonia is one nitrogen fertilizer component that can be synthesized from in-expensive
raw materials. Since nitrogen makes up a significant portion of the earth's atmosphere, a

14
process was developed to produce ammonia from air. In this process, natural gas and
steam are pumped into a large vessel. Next, air is pumped into the system, and oxygen is
removed by the burning of natural gas and steam. This leaves primarily nitrogen,
hydrogen, and carbon dioxide. The carbon dioxide is removed and ammonia is produced
by introducing an electric current into the system. Catalysts such as magnetite (Fe3O4)
have been used to improve the speed and efficiency of ammonia synthesis. Any
impurities are removed from the ammonia, and it is stored in tanks until it is further
processed.

While ammonia itself is sometimes used as a fertilizer, it is often converted to other

substances for ease of handling. Nitric acid is produced by first mixing ammonia and air
in a tank. In the presence of a catalyst, a reaction occurs which converts the ammonia to
nitric oxide. The nitric oxide is further reacted in the presence of water to produce nitric
acid.

Nitric acid and ammonia are used to make ammonium nitrate. This material is a good
fertilizer component because it has a high concentration of nitrogen. The two materials
are mixed together in a tank and a neutralization reaction occurs, producing ammonium
nitrate. This material can then be stored until it is ready to be granulated and blended with
the other fertilizer components.

Phosphorous fertilizer component

To isolate phosphorus from phosphate rock, it is treated with sulfuric acid, producing
phosphoric acid. Some of this material is reacted further with sulfuric acid and nitric acid
to produce a triple superphosphate, an excellent source of phosphorous in solid form.

Some of the phosphoric acid is also reacted with ammonia in a separate tank. This
reaction results in ammonium phosphate, another good primary fertilizer.

Potassium fertilizer component

Potassium chloride is typically supplied to fertilizer manufacturers in bulk. The

manufacturer converts it into a more usable form by granulating it. This makes it easier to
mix with other fertilizer components in the next step.

15
Granulating and blending

To produce fertilizer in the most usable form, each of the different compounds,
ammonium nitrate, potassium chloride, ammonium phosphate, and triple superphosphate
are granulated and blended together. One method of granulation involves putting the
solid materials into a rotating drum which has an inclined axis. As the drum rotates,
pieces of the solid fertilizer take on small spherical shapes. They are passed through a
screen that separates out adequately sized particles. A coating of inert dust is then applied
to the particles, keeping each one discrete and inhibiting moisture retention. Finally, the
particles are dried, completing the granulation process.

The different types of particles are blended together in appropriate proportions to

produce a composite fertilizer. The blending is done in a large mixing drum that rotates a
specific number of turns to produce the best mixture possible. After mixing, the fertilizer
is emptied onto a conveyor belt, which transports it to the bagging machine.

Bagging

Fertilizers are typically supplied to farmers in large bags. To fill these bags the fertilizer
is first delivered into a large hopper. An appropriate amount is released from the hopper
into a bag that is held open by a clamping device. The bag is on a vibrating surface,
which allows better packing. When filling is complete, the bag is transported upright to a
machine that seals it closed. The bag is then conveyored to a palletizer, which stacks
multiple bags, readying them for shipment to distributors and eventually to farmers.

Quality Control

To ensure the quality of the fertilizer that is produced, manufacturers monitor the product
at each stage of production. The raw materials and the finished products are all subjected
to a battery of physical and chemical tests to show that they meet the specifications
previously developed. Some of the characteristics that are tested include pH, appearance,
density, and melting point. Since fertilizer production is governmentally regulated,
composition analysis tests are run on samples to determine total nitrogen content,
phosphate content, and other elements affecting the chemical composition.

16
Byproducts/Waste

A relatively small amount of the nitrogen contained in fertilizers applied to the soil is
actually assimilated into the plants. Much is washed into surrounding bodies of water or
filters into the groundwater. This has added significant amounts of nitrates to the water
that is consumed by the public. Some medical studies have suggested that certain
disorders of the urinary and kidney systems are a result of excessive nitrates in drinking
water. It is also thought that this is particularly harmful for babies and could even be
potentially carcinogenic.

The nitrates that are contained in fertilizers are not thought to be harmful in themselves.
However, certain bacteria in the soil convert nitrates into nitrite ions. Research has shown
that when nitrite ions are ingested, they can get into the bloodstream. There, they bond
with hemoglobin, a protein that is responsible for storing oxygen. When a nitrite ion
binds with hemoglobin, it loses its ability to store oxygen, resulting in serious health
problems.

Nitrosamines are another potential byproduct of the nitrates in fertilizer. They are the
result of a natural chemical reaction of nitrates. Nitrosamines have been shown to cause
tumors in laboratory animals, feeding the fear that the same could happen in humans.
There has, however, been no study that shows a link between fertilizer use and human
tumors.

The Future

Fertilizer research is currently focusing on reducing the harnful environmental impacts of

fertilizer use and finding new, less expensive sources of fertilizers. Such things that are
being investigated to make fertilizers more environmentally friendly are improved
methods of application, supplying fertilizer in a form which is less susceptible to runoff,
and making more concentrated mixtures. New sources of fertilizers are also being
investigated. It has been found that sewage sludge contains many of the nutrients that are
needed for a good fertilizer. Unfortunately, it also contains certain substances such as

17
lead, cadmium, and mercury in concentrations which would be harmful to plants. Efforts
are underway to remove the unwanted elements, making this material a viable fertilizer.
Another source that is being developed is manures. The first fertilizers were manures,
however, they are not utilized on a large scale because their handling has proven too
expensive. When technology improves and costs are reduced, this material will be a
viable new fertilizer.

TYPES OF FERTILIZERS

Nitrogen fertilizers

All nitrogen fertilizers are made from ammonia (NH3), which is sometimes injected into
the ground directly. The ammonia is produced by the Haber-Bosch process. In this
energy-intensive process, natural gas (CH4) supplies the hydrogen and the nitrogen (N2)
is derived from the air. This ammonia is used as a feedstock for all other nitrogen
fertilizers, such as anhydrous ammonium nitrate (NH4NO3) and urea (CO(NH2)2).
Deposits of sodium nitrate (NaNO3) (Chilean saltpeter) are also found in the Atacama
desert in Chile and was one of the original (1830) nitrogen-rich fertilizers used. It is still
mined for fertilizer.

Phosphate fertilizers

All phosphate fertilizers are obtained by extraction from minerals containing the anion
PO43-. In rare cases, fields are treated with the crushed mineral, but most often more
soluble salts are produced by chemical treatment of phosphate minerals. The most
popular phosphate-containing minerals are referred to collectively as phosphate rock. The
main minerals are fluorapatite Ca5(PO4)3F (CFA) and hydroxyapatite Ca5(PO4)3OH.
These minerals are converted to water-soluble phosphate salts by treatment with sulfuric
or phosphoric acids. The large production of sulfuric acid as an industrial chemical is
primarily due to its use as cheap acid in processing phosphate rock into phosphate
fertilizer. The global primary uses for both sulfur and phosphorus compounds relate to
this basic process.

18
In the nitro phosphate process or Odda process (invented in 1927), phosphate rock with
up to a 20% phosphorus (P) content is dissolved with nitric acid (HNO3) to produce a
mixture of phosphoric acid (H3PO4) and calcium nitrate (Ca(NO3)2). This mixture can be
combined with a potassium fertilizer to produce a compound fertilizer with the three
macronutrients N, P and K in easily dissolved form.

Potassium fertilizers

Potash is a mixture of potassium minerals used to make potassium (chemical symbol: K)

fertilizers. Potash is soluble in water, so the main effort in producing this nutrient from
the ore involves some purification steps; e.g. to remove sodium chloride (NaCl), i.e.
common salt. Sometimes potash is referred to as K2O, as a matter of convenience to those
describing the potassium content. In fact potash fertilizers are usually potassium chloride,
potassium sulfate, potassium carbonate, or potassium nitrate.

Compound fertilizers

Compound fertilizers, which contain N, P, and K, can often be produced by mixing

straight fertilizers. In some cases, chemical reactions occur between the two or more
components. For example monoammonium and diammonium phosphates, which provide
plants with both N and P, are produced by neutralizing phosphoric acid (from phosphate
rock) and ammonia (from a Haber facility):

Application

Fertilizers are commonly used for growing all crops, with application rates depending on
the soil fertility, usually as measured by a soil test and according to the particular crop.
Legumes, for example, fix nitrogen from the atmosphere and generally do not require
nitrogen fertilizer.

Liquid vs. Solid

Fertilizers are applied to crops both as solids and as liquid. About 90% of fertilizers are
applied as solids. Solid fertilizer is typically granulated or powdered. Often solids are

19
available as prills, a solid globule. Liquid fertilizers comprise anhydrous ammonia,
aqueous solutions of ammonia, aqueous solutions of ammonium nitrate and or urea.
These concentrated products may be diluted with water to form a concentrated liquid
fertilizer (e.g. UAN). Advantages of liquid fertilizer are its more rapid effect and easier
coverage. The addition of fertilizer to irrigation water is called fertigation

Slow- and controlled-release fertilizers

Slow- and controlled-release involve only 0.15% (562,000 tons) of the fertilizer market
(1995). Their utility stems from the fact that fertilizers are subject to antagonistic
processes. In addition to their providing the nutrition to plants, excess fertilizers can be
poisonous to the same plant. Competitive with the uptake by plants is the degradation or
loss of the fertilizer. Microbes degrade many fertilizers, e.g. by immobilization or
oxidation. Furthermore fertilizers are lost by evaporation or leaching. Most slow-release
fertilizers are derivatives of urea, a straight fertilizer providing nitrogen.
Isobutylidenediurea ("IBDU") and urea-formaldehyde slowly convert in the soil to free
urea, which is rapidly uptaken by plants. IBDU is a single compound with the formula
(CH3)2CHCH(NHC(O)NH2)2 whereas the urea-formaldehydes consist of mixtures of the
approximate formula (HOCH2NHC(O)NH)nCH2.

Besides being more efficient in the utilization of the applied nutrients, slow-release
technologies also reduce the impact on the environment and the contamination of the
subsurface water.[18] Slow-release fertilizers (various forms including fertilizer spikes,
tabs, etc.) which reduce the problem of "burning" the plants due to excess nitrogen.
Polymer coating of fertilizer ingredients gives tablets and spikes a 'true time-release' or
'staged nutrient release' (SNR) of fertilizer nutrients.Controlled release fertilizers are
traditional fertilizers encapsulated in a shell that degrades at a specified rate. Sulfur is a
typical encapsulation material. Other coated products use thermoplastics (and sometimes
ethylene-vinyl acetate and surfactants, etc.) to produce diffusion-controlled release of
urea or other fertilizers. "Reactive Layer Coating" can produce thinner, hence cheaper,
membrane coatings by applying reactive monomers simultaneously to the soluble

20
particles. "Multicote" is a process applying layers of low-cost fatty acid salts with a
paraffin topcoat.

Foliar application

Foliar fertilizers are applied directly to leaves. The method is almost invariably used to
apply water- soluble straight nitrogen fertilizers and used especially for high value crops
such as fruits.

Fertilizer burn

Various chemicals are used to enhance the efficiency of nitrogen-based fertilizers. In this
way farmers can limit the polluting effects of nitrogen run-off. Nitrification inhibitors
(also known as nitrogen stabilizers) suppress the conversion of ammonia into nitrate, an
anion that is more prone to leaching. 1-Carbamoyl-3-methylpyrazole (CMP),
dicyandiamide, and nitrapyrin (2-chloro-6-trichloromethylpyridine) are popular. Urease
inhibitors are used to slow the hydrolytic conversion of urea into ammonia, which is
prone to evaporation as well as nitrification. The conversion of urea to ammonia
catalyzed by enzymes called ureases. A popular inhibitor of ureases is N-(n-butyl)
thiophosphoric triamide (NBPT).

21
 CHAPTER 3
COMPANY PROFILE

22
 COMPANY PROFILE

INTRODUCTION:

KPR AGROCHEM LIMITED, a subsidiary of KPR groups place is one of the

leading players in the fertilizers industry in India along with its sibling KPR Chemicals.
Headquartered in the KOPPAL (Karnataka) and with operations based in the AP, the new
company is one of the industry leaders.

KPR Agrochem Limited was incorporated on 02 and January 2001 with the main
object of carrying on the activity of manufacturing of pesticides and fertilizers the annual
turnover in 2007 reached to USD 20 millions among which the domestic business
occupied 70% and the 30% we report to Middle East, and gulf countries. We have
poultries and rice mills unit in south India market. We can able to supply Rice, Eggs and
Eggs powder. We are in agriculture filed since 35 years.

KPR Group is founded by Sri KOVVURI PAPA REDDY in 1970 K.P.R. Group
is diversified large-scale group company mainly focusing on manufacturing activity and
currently its business has to the fields of manufacturing of Fertilizers ,Pesticides, Animal
health- Nutrition-feed and Pharma, Chemicals , Seeds: Power Mill. Rice Mills, Solvent
Extraction Unit, Poultries and etc. KPR will provide you a wider choice in n
agrochemical products and detailed service. Product and services are the visible elements
we provide. These can be sourced from many companies.

KPR Agrochem LTD is a group of industries having number of units in AP and

Karnataka. Its head office is situated at Balabhadrapuram in Biccavolumandal of East
Godavari District, AP

In Balabhadrapuram a pesticides manufacturing unit has been set up to produce

various kinds of pesticides. The group has subsequently started a fertilizer manufacturing
industry in Biccavolu. In other words mixing plant preparing DCP(declaim phosphate)
SSP(single super phosphate) NPK, DCP forma etc. This product is mainly for farmers as
fertilizer to produce good yield in their harvesting crops.

23
 The KPR Group has also expanded its units and recently started the fertilizer
mixing plant near Koppal district in Karnataka State which is similar to Biccavolu plant.

The KPR Group has also expanded its business in producing other product i.e,
sulphuric acid(chemical plant in the becenity of Biccavolu unit).In Biccavolu plant the
KPR group has started 2 megawatts power generation plant also which is for captive
consumption. The power is getting generated by way of utilizing steam i.e, emanated
from sulphuric acid plant. The power which is produced from the power plant is again
diverted to sulphuric acid plant as well as other fertilizers unit situated in the same
vicinity of the factory. So by consuming self-generated power KPR group is running all
its units.

The similar industry which has recently been started in Karnataka also producing
various fertilizer products and supplying to ryots in Karnataka state as well.

The KPR group has also started a seed manufacturing industry near Warangal in
AP which is providing good quality of seeds to the ryots(farmers).

So in TOTO the group is providing fertilizers products, seeds etc to various farmers and
helping them to get more yield of different crop.

The KPR group by having various kinds of manufacturing units providing good
marketing facilities of its own products. The KPR group has developed its marketing
network throughout the country by setting up of depos (stock yard) in major cities of
India to supply the product to the needy farmers.

The company has provided number of employment facilities (technical &non-

technical)by having recruited various candidates into their group. The employees
working in the units of said group are working contributing their share of work to make
the business success.

Though the industry is now in the manufacturing field of fertilizers and

pesticides, proposing to enter in field of chemicals manufacturing for which spade work
is work going on.

24
 Accordingly the KPR group is contributing its service to the nation by providing
good employment facility, providing fertilizers and pesticides product to the ryots and
also contributing good revenue to the government by way of taxes.

The KPR group has now focused on implementation on procedures systems

which will be for ISO CERTIFICATION (Industrial Standardization for Organization).

As part of the certification program the administration and other departments are
now focusing to prepare systems and procedures which are already in force in the
organization.

However, at KPR ,our actively working attitude, reflected by our fast and reliable
responses to problem solving and our honesty and integrity in all aspects of our dealing
with customers has, we believe, set as apart. We care about our customers and their
success and seek to ensure that all of our relationships are along term and not opportunity
sales.

Now a days the world is governed by the principle of “SURVIVAL FOR THE
FITTEST”.

KPR VISION:

To be a leader in the phosphatic industry, producing high quality fertilizers at low

cost and giving satisfaction to all state holders.

KPR MISSION:

“TOPPER IN SUPPLY, PROPER IN QUALITY ,HONOUR IN TRUST”.

To enhance the prosperity of the ryot through supply of quality farm inputs and related to
ensure value for money. Ryots while promoting the economic interest of shareholders in
line with the national priorities.

In consideration of the promotional role played by IFFCO, so long as IFFCO’s the

legal and beneficial owner of not less than 79,70,000 issued and fully paid by equity
shares of KPR Agrochem.

25
BASIC INFORMATION:

Company Name: KPR AGROCHEM LTD.

Business Type: Manufacturer.

Single super Phosphate (SSP),NPK,Dicalciumphosphate,Sulphuric Acid,

Pesticides,Eggs,Rice,Dorb,SoyaDOC,Eggpowder,Rockphosphate,sulphur,DAP,Urea,MO
P,Sulphuric acid.

Monocrotophos Technicals, Methyl Parathion Technicals,Hexaconazoletechnicals

,CYpermetrinTechnicals,AcephateTechnicals,ButachlorTechnicals,CartaphydrochlorideT
echnicals,LambdacyhalothrinTechnicals,PhosphamidionTechnicals,AtrazineTechnic,Imid
acloprideTechnicals,carbendazimtechnicals,MancozebTechnical,Tricyclozole 75% Wp.

KPR.

26
KPR INTENT:

“WE WANT TO BECOME THE UNDISPUTABLE LEADER IN OUR INDUSTRY”.

COMPANY AT GLANCE:

Company : KPR AGROCHEM LIMITED

Year of incorporation : 2nd January 2001

Promoter : Government of Andhra Pradesh, IFFCO

Fertilizer Trade : 18:46:0

Annual production of DAP : 30000MMT

Capital Cost : 80

Means of Finance : 40% Equity,60% Borrowed

Major Raw Materials : Phosphoric Acid, Ammonia Sulphuric

Marketing Territories : Andhra Pradesh, Karnataka.

Transportation : Rail 30%, Road 70%.

Fertilizers : DAP, SSP, Sulphuric Acid.

Pesticides : Monochrotophos, Qunolphos

Edhosulphon, Carbonadoing.

Registered office : Halavarthy, KoppalTaluk, Karnataka.

Bankers : Andhra Bank.

27
 BOARD OF DIRECTORS:

Hierarchy

Chairman : Sri Kovvuri Papa Reddy.

Directors : Sri Karri Venkata Mukunda Reddy.

Executive Director : Sri Kovvuri Rajasekhar Reddy.

PRODUCT PROFILE:

Fertilizers:

In our technology –leading NPK mixing and granulating plant 540 MTPD in AP & 200
MTPD in Karnataka and

Single Super Phosphate (SSP) 600 MTPD in AP &300 MTPD in Karnataka KPR, we are
manufacturing a series of high quality NPK mixtures granular for quality crop protection
cum growth.

SINGLE SUPER PHOSPHATE:

 Crops: Cotton, Vegetables, Paddy, Sugarcane

 Used to: Overcome phosphate &sulphuric deficiency Root development
 Dosage: Acre: 50-100 Kgs
 Formulation: In our unique designed formulation plant, we can do the following
formulation WG,SG,WS,WP,SP,FS,SL,EW,UL,OL etc., we are pursuing not only the
constant improvement of quality and packing, but also the innovation of formulation
technology.

28
 CHEMICALS:

In our Sulphuric Acid Plant 200 MTPD along with 2 MW power cogeneration by waste
heat steam recovery, advanced technology superior quality acid for mainly batteries,
treatment, technical grade, ore production, Industrial uses and fertilizer creation.

Specification of Sulphuric Acid

The chemical industry in India is well established and has recorded a steady growth in the
overall Indian industrial scenario. The chemical and allied industries have been amongst
the faster growing segments of the Indian Industry. The Sulphuric acid is considered the
barometer of growth in the chemical industry, the per capita consumption is only about
5kg per annum in India as compared to 40kg in industrially developed countries. In our
seed to plant at Warangal, AP, we are processing the paddy, Maize and Sun flower seeds
with 130 MTPD capacity of each to produce the KPR brands standard Quality for the
farmers to get the excess yield.

HYBRID SUNFLOWER:

 2 G Seed for Acre

 Crop Duration 95-120 days
 Plants Distance 2 Feet
 Row Distance 2 Feet
 Fertilizers N-P-K 32-36-12

PADDY SEEDS:

 25-30 Kgs seed per Acre

 Crop Duration Khariff 150 Days
 Rabi 120 Days
 MTU 1010,1001,1061,7029,3626
 BPT 5204,JJL 1798,IR 64 etc.

29
 FEED & PHARMA:

In our Feed and Pharma Plant, we produce the Di Calcium Phosphate50 MTPD Feed
grade and Pharma/Dentifrice grade 30 MTPD. We also produce the Mineral Mixtures for
Poultry and cattle feed ingredient from our in house Di calcium Phosphate.

KPR’DCP – FEED & PHARMA DIVISION:

Calcium and Phosphorous are the two vital nutrients for healthy body. Di –calcium
phosphate and Mono calcium phosphate considered being good source of calcium and
phosphorus subjected the toxic element and heavy metal/ fluorine should be within
permissible prescribed limit. Our state of art plant maintaining the optimum level of
production procedures to produces highest Bio-available DCP.

Key Features of our Feed & Pharma Division:

We India we are the only one DCP manufactures having our own sulphur melting plant
hence use virgin quality of sulphuric acid for our Feed & Pharma product. Our products
does not manufactured by any spent/effluent acid of other plant which in general content
hazardous chemical/unidentified toxic element/pesticide residues etc. We use very safe
and pure quality of input raw material to provide safe product to customer. We also keep
heavy metals/fluorine under prescribed BIS limit. Our product does not contain any
undigested rock phosphate. Our product does not contain any organic/microbes impurity.
We have ISI mark for DCP- Animal feed grade and mineral Mixture for cattle.

PESTICIDES:

Cypermethrin 25% E.C.

 Crops: Cotton, Groundnut, Brinjal, Citrus, Bhendi.

 Insects: Leaf Folder, Lucern, Caterpillar, Leaf Miner
 Dosage/Acre:150-200 ml(1ml/1li water)

Triazophos 40% E.C.

 Crops: Paddy, Cotton, Vegetable, Flowering plants, Coconut

30
 Insects:LeafRoller,Borer,Aphid,Jassid,Thrips,Whitefly,Bollworm,Fruit borers.
 Dosage/Acre:400-500ml(2.5ml/1lt water)

Indoxacorb14.5%S.C.

 Crops: Cotton, cabbage.

 Insects: Red cotton bug, Dusky cotton bug
 Dosage/Acre:200-250ml(1ml/1lt water)

ACTIVITY

The main activity of the company is manufacturing of pesticides and fertilizers which
have huge market potential both in domestic and overseas markets. The company mainly
deals in the manufacturing of the following products.

WIND POWER

In the 1970s oil shortages pushed the development of alternative energy sources. In 1990s
the push came from a renewed concern for the environment in response to scientific
studies indicating potential changes to the global climate if use of fossil fuels continues to
increase. Wind energy is an economical power resource in many areas of the country.

Wind is a clean fuel wind power plants (also called wind farms) produce no air or
water pollution because no fuel is burned to generate electricity. Growing concern about
emissions from fossil fuel generation, increased government support and higher costs for
fossil fuels(especially natural gas and coal)have helped wind power capacity in the
United States grow substantially over the past 10 years.

Today, wind energy is mainly used to generate electricity. Wind is a renewable

energy source because the wind will blow as long as the sun shine.

The Sankaneri K.P.R Wind Unit, Tamil Nadu, India’s southern peninsular region
in Tamil Nadu is blessed with more than 650MW of installed capacity. This Wind farm
comprises of Suzlom’s time tested wind turbines of 350KW,600KW,1250KW and
1500KW.

31
 The one of the best wind power potential . Thanks to its unique topography that
exposes it to two monsoon seasons in a year the windy season extends over a longer
period. Suzlon’sSankaneri wind farm hosts.

The K.P.R Wind Unit is generating 3 MW power and fully grid to the Tamil Nadu
Electricity Board, Tamil Nadu Government of India.

Distribution of Wind Speed:

The strength of wind varies and an average value for a given location does not
alone indicate the amount of energy a wind turbine could produce there. To assess the
frequency of wind speeds at a particular location, a probability distribution function is
often fit to the observed data. Different locations will have different wind speed
distributions.

GRID MANAGEMENT:

Induction generators, often used for wind power projects, require reactive power
for excitation so substations used in wind –power collection systems include substantial
capacitor banks for power factor correction. Different types of wind turbine generators
behave differently during transmission grid disturbances, so extensive modeling of the
dynamic electromechanical characteristics of a new wind farm is required by
transmission system operators to ensure predictable stable behavior during system faults
(Low voltage ride through).In particular, induction generators cannot support the system
voltage during faults, unlike steam or hydro turbine-driven synchronous generators.
Doubly-fed machines wind turbines with solid state converters between the turbine
generator and the collector system generally have more desirable properties for grid
interconnection. Transmission systems operators will supply a wind farm developer with
a grid code to specify the requirements for interconnection to the transmission grid. This
will include power factor, constancy of frequency and dynamic behavior of the wind farm
turbines during a system fault.

32
 KPR SPIRIT:

We undertake our quest with enthusiasm of entrepreneurs, excited by the constant search
for innovation. We value performance achieved with effort. We will attain success as a
World class leader with each and every one of the people contributing with passion and
unmatched sense of urgency.

 Innovation and Entrepreneurship

 Competitive advantage through well executed ingenuity
 Sense of urgency
 A nimble, focused resilient and fast learning organization.
 Every one committed and everyone contributing.
 All employees have opportunity to make meaningful contribution and to succeed based
on merit.
 Performance with Integrity
 Delivering on promised with organizational and individual trust.
 People with passion.
 People are enabled and motivated to do their best work.
 Accountability for achievement.
 Clear expectations, focus on critical few performance matters and will be rewarded.
 Alignment with GSK interest.
 One team, in a single –minded pursuit of our mission, reflecting a common spirit and
integrated strategies.
 Develop self and others.
 A norm of career long learning ability across the organization.

KPR DRIVERS:

“We face a highly competitive market place, populated by other excellent

companies, with their own gifted people and their own determination to succeed. How
does we, as a company, expect to focus our energies to stay ahead of the competition by
achieving excellence in five areas that are primary drivers for our business”?

33
 STRATEGY AND OUTLOOK:

Our company aims to Quality- Innovation-Commitment. We focus on quality products

and best service. Sincerely welcome all friends to our company for business talks. We
employ lots of famous experts and have a group of personnel with abundant theoretical
and practical experience. With wide specialty and advanced equipment, our company has
set up good relationships of technical coordination with dozens of scientific research
units and universities which gives us powerful support and guarantee for keeping our
products quality at leading levels. Our products have won a good reputation at home for
stable quality. With the concern and support from government & Customers, we will
keep on progressing to create a brilliant future.

QUALITY POLICY:

“We at K.P.R agrochem limited ,as a supplier of fertilizers, pesticides, seeds,

chemicals and Animal nutrients with a focus on changing market needs strive to
continually improve the efficiency and effectiveness of our resources and working
systems to give most efficient and cost effective products to ensure customer
satisfaction.”

The success of the business in an increasingly competitive environment depends

on the quality of the product and service.

Quality policy of the company:

 To ensure that it consistently delivers to the customer, both internal and external alike
products in services which totally meet their requirements in terms of society, efficiency
and quality?
 To meet these requirements first time, on time and every time.
 To adopt quality as a priority in all over the business processes.
 To continuously seek improvements in the quality, cost and level of service provided.
 To protect the environment they work in and to conserve resources wherever and
whenever possible.

34
 To attain the commitment of all employees in the organization to quality as a collective
responsibility.
 To provide a safe working environment for all employees.

In a true embodiment of “total quality management”, they are proactively involved in

process up gradation, improving general hygiene and imparting quality training. They are
quality have continuously raised their own bar with regard to performance indicators like
product and non product, right from first time, customer’s complaint rate in an effort to
provide customer delight. Quality is most essential requirement in all the business
process and they stand committed to meet the requirements first time, on time and every
time.

SAFETY POLICY:

KPR agrochem has a worldwide commitment to operate in a fashion which ensures

protection. We believe that safety ranks in importance with other key business objectives
and that the

 Injuries can be prevented.

 Management and employees are responsible for injury prevention.
 Accident prevention is good business.
 Working safely is condition of employment.
 The company is committed to continual improvement in health and safety performance.
 Prevention of injuries and illness.
 Compliance with all applicable safety legislation and safety standards.
 Operating facility in a safe and responsible fashion based on a comprehensive assessment
of risks.
 The company will pursue excellence in occupational safety and hygiene as an essential
element in their plan for business success.

35
 OBJECTIVES OF THE COMPANY:

 Providing a product with good quality.

 Satisfying needs of consumers.
 Following policies i.e, Quality policies and safety policies.

KPR Agochem limited is a subsidiary of KPR group one of the largest and leading
manufactures of agrochemical products in India with a wide range of advanced,
environmentally friendly products. Our company has six manufacturing units in south
Indian market.

Our range of products –NPK fertilizers, Single Super Phosphate, Sulphuric Acid,
Feed & Pharma, Seeds, and Pesticides Unit includes Insecticides, Fungicides Herbicides.

The company has stick to the rule of providing high quality chemicals product to
domestic and overseas market, supported by our experienced technical team, strong
manufacturing capability, and flexible devoted personal.

Sulphuric acid was an instant success in India and the product was always in short
su00pply. To meet the growing demand of the product the management foresaw the need
of another factory in India, in a lots of surveys were carried out to find a suitable location.

 The wide availability of sulphur one of the important raw materials for the production of
sulphuric acid.
 Cost of labor being cheap.
 Wide availability of water a natural resource
 The proximity to the biggest market south
 The enthusiastic and co-operative government.

36
 ORGANISATION CHART

HIERARCHY:

The factory is headed over by Site Director who reports to vice-president, operations at
head office. Under Site Director are departmental heads, which looks after different
functions of the factory.

PRODUCTION:

 Koppal plant produces broadly three products in its unit.

 Single Super Phosphate,
 NPK,
 Dicalcium Phosphate,
 Sulphuric Acid,
 Horlicks manufacturing section consist of five production lines.

PRODUCTION LINES:

The plant has five lines of production of which two are dedicated to sulphuric acid
production and the other three are used to produce Single super phosphate, NPK,
Dicalcium Phosphate per the demand and production schedule. The plant runs three
shifts 365 days a year. The rated plant capacity is 56 batches per day, but the actual
production varies between 40 to 45 batches. Each batch corresponds to 1275kgs of
Sulphuric acid or 1000kgs of Single Super Phosphate, NPK, Dicalcium Phosphate.

THE PROCESS:

 Finished goods are transported to the packing stations

 From the packing station products are taken to each one of the canteen stores departments
(CSD) outlets.
 The work of Regional Sales Officers (RSO) located in the four metropolitan cities after
the production process is complete. In other words they ensure that the products are
distributed from the depots to wholesaler and retailers.

37
 Present Business Activities of Fertilizers Division:

KPR Agochem Private Limited has been set up with a capital expenditure of
Rs.101.38 cores availing a term loan of Rs 75.70 cores and has working capital facilities
with Andhra Bank. The Company has two units, one in Andhra Pradesh and the other
unit is in Karnataka State.

THE AGGREGATE MANUFACTURING CAPACITIES OF THE COMPANY, PRODUCT

WISE ARE:

PRODUCTS LICENCE INSTALLE PRESENT

D D OPERATIN
G
Pesticides - - -
Single Super - 600 TPD 65%
Phosphate(SSP)powd
er
NPK - 540 TPD 65%
DCP - 50 TPD 65%
Sulphuric Acid - 200 TPD 70%
DMS 30 TPD 65%
Alum 30 TPD 65%
CSA 30 TPD 65%
Power plant 20 MW 20MW 80%
Units in Karnataka
SSP - 150 TPD 60%
NPK Mixtures - 300 TPD 60%
DCP - 30 TPD 65%
Sulphuric Acid 200 TPD 70%
DMS 30 TPD 65%
Alum 30 TPD 65%

38
Expansion Plan OF KPR FERTILISERS PRIVATE LIMITED:

The KPR Company has drawn business plans for the next two year which include
capacity expansion at Andhra Pradesh and Karnataka Divisions and product
diversification in a big way. The business plan is proposed as under

PRODUCT CAPACITY
ANDHRA PRADESH
Di methyl sulphate 30 TPD
Alum 30 TPD
ChloroSulphonic Acid 30 TPD
Power generation (Gas based) 20 TPD
KARNATAKA

Di methyl Sulphate 30 TPD

Alum 30 TPD
Sulphuric Acid 200 TPD
DCP 30 TPD

HEALTH:

The reference doctors are: PothuRaju hospital at Biccavolu for Biccavolu fertilizers unit
and also KVR hospital at Rayavaram.

The KPR Group has its own Ambulance for medical care.

CUSTOMER FOCUS:

In recognition that business is based on quality and integrity, KPR Group aim to have the
most satisfied customer base by enhancing farmer productivity through forward
integration, it shall

 Produce good quality products that give value for money.

39
 Innovate to satisfy the needs of customers
 Engage in fair, open and ethical practices.

WELFARE MEASURES IN KPR:

The KPR group has taken several welfare measures to improve the general working
conditions. They are given below:

 Drinking Water Facilities.

 First Aid Boxes at several locations.
 Protective wear like Helmets.
 Transport facilities.
 Canteen Facilities.
 Uniform to all Employees.

 STRATEGIES

KPR Agochem is focused on capturing the significant growth opportunities in the

marketing services market and its strategy is driven by the following key principles

Client Referral Programs: Client referrals are the most reliable and most cost-effective
source of new clients. We help firms maximize their success by creating process and
tools that make generating client a referrals a natural and systematic part of the practice.

Client Retention Programs: Maintaining and leveraging existing client relationships is

far less expensive and more productive than trying to acquire new clients. We help
organizations develop effective client communication programs that build stronger client
relationships, encourage referrals, and produce incremental business.

New Client Acquisition Programs: A diverse mix of campaigns including events,

public relations, advertising and direct marketing can be an effective means of acquiring
new clients. We help firms create and implement integrated marketing strategies to reach
their goals.

PARTNERSHIP STRATEGY

40
 Focused Approach to

Volumes – By means of

Deferred Partners

Referral Partners

Associate Referral Partners

 System

System consists of all formal and informal procedures that allow the organization to
function including

Risk Management System Risk management logic built into Portfolio Management and
Internet Trading Application.

Back office support for centralized control and risk management for non-internet
transactions.

Order Execution System The telecaller is provided with database and is required to
make call to numbers provided by relationship manager and fix an appointment with
them.

The relationship manager then goes and meets the client at the fixed location and time
and tries to convince the client to buy his product and close the deal.

If the deal is successful, the relationship manger gets the required documents from the
client and had over them to the backend operations people.

Management information system.

A management information system (MIS) is a subset of the overall internal controls of

a business covering the application of people, documents, technologies, and procedures

41
 by management to solve business problems such as costing a product, service or a
business-wide strategy.

Merit rating system

Based on the sales and performance appraisal will be done.

Depending on the products which are sold by particular team, appraisal is done.

 Style

Top-Down Decision Making Top-down" approach is one where an executive, decision

maker, or other person or body makes a decision. This approach is disseminated under
their authority to lower levels in the hierarchy, who are, to a greater or lesser extent,
bound by them.

The management style followed by Allegro is “TOP-DOWN” style of decision making.

The decisions are made by the higher authority and are followed by the employees. The
employees

are not given the right to make decisions but amend on the decisions made by the
decision making heads.

 Staff

There are the following three types of groups of staff:

 There are about 300+ professionals working at KPR Agochem Ltd

 Every employee is effectively trained to execute their work.
 There are different groups of staff such as management support team, sales groups and
workers group.

 Skills

42
 Board Of Directors: The skills of BOD are somewhat similar to the qualities to be
possessed by the CEO. They should be capable of handling and controlling all the
managers under them.

Regional Manager:In order to become the regional manager of Angel Broking,

a person must be competent enough to manage the whole region under him/her.

He/she should also be able to motivate the employees under him from time to time.

He/she should know when he/she is required to boost the morale of the employees.

He/she should also know how to work with other regions in country.

Area Manager: The area manager needs to be capable enough of managing whole area
under him/her. He/she should also know how to control and handle all cluster managers
under them.

Cluster Manager: The cluster manager should be capable enough to manage and control
his/her cluster efficiently and effectively.

Relationship Manager: The relationship manager should have

Good communication skill in order to pitch the consumers.

He/she should have full information about the market and competitors offerings.

 Shared Values

Angel Broking Ltd constantly strives to share its experience in order to serve its
customers better. Its research reports are made available to the investor. The investors are
educated by organising investor’s camps to share the information regarding the trends in
the market.

SWOT Analysis of the company

43
 Strengths:

 Angel provides better service

 Angel has wide range of distribution network
 The marketing team is proficient enough to cover various segments
 Angel has better products to serve the customers

Weakness:

 Angel still could not meet the fuller customer satisfaction

 Branding is the concern
 There is a stiff competition from banks

Opportunities:

 Ever increasing market in investment field

 Improving technology
 Unfulfilled needs of the customer
 Education level

Threats

 New competitors
 Technology based business

44
 CHAPTER 4
THEORITICAL FRAMEWORK

45
 THEORITICAL FRAMEWORK

“The best advertisement is done by customers “

PHLIP KOTLER

“It is not employer who pays the wages .employees handle only money .it is the customer
who pays the wages”

HENRY FORD

Customer satisfaction is a term frequently used in marketing. It is a measure of how

products and services supplied by a company meet or surpass customer expectation.
Customer satisfaction is defined as "the number of customers, or percentage of total
customers, whose reported experience with a firm, its products, or its services (ratings)
exceed specified satisfaction goals.

It is seen as a key performance indicator within business and is often part of a Balanced
Scorecard. In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become a key
element of business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects. They
focus employees on the importance of fulfilling customers' expectations. Furthermore,
when these ratings dip, they warn of problems that can affect sales and profitability....
These metrics quantify an important dynamic. When a brand has loyal customers, it gains
positive word-of-mouth marketing, which is both free and highly effective." Therefore, it
is essential for businesses to effectively manage customer satisfaction. To be able do this,
firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or
service has met or exceeded expectations. Thus, expectations are a key factor behind
satisfaction. When customers have high expectations and the reality falls short, they will
be disappointed and will likely rate their experience as less than satisfying. For this

46
reason, a luxury resort, for example, might receive a lower satisfaction rating than a
budget motel—even though its facilities and service would be deemed superior in
'absolute' terms."

The importance of customer satisfaction diminishes when a firm has increased bargaining
power. For example, cell phone plan providers, such as AT&T and Verizon, participate in
an industry that is an oligopoly, where only a few suppliers of a certain product or service
exist. As such, many cell phone plan contracts have a lot of fine print with provisions that
they would never get away if there were, say, 100 cell phone plan providers, because
customer satisfaction would be far too low, and customers would easily have the option
of leaving for a better contract offer. There is a substantial body of empirical literature
that establishes the benefits of customer satisfaction for firms.

PURPOSE: A business ideally is continually seeking feedback to improve customer

satisfaction."Customer satisfaction provides a leading indicator of consumer purchase
intentions and loyalty." "Customer satisfaction data are among the most frequently
collected indicators of market perceptions. Their principal use is twofold:"

"Within organizations, the collection, analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have a
positive experience with the company's goods and services."

Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firm’s customers will
make further purchases in the future. Much research has focused on the relationship
between customer satisfaction and retention. Studies indicate that the ramifications of
satisfaction are most strongly realized at the extremes."

On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to
become return customers and might even evangelize for the firm. (A second important
metric related to satisfaction is willingness to recommend. This metric is defined as

47
"The percentage of surveyed customers who indicate that they would recommend a brand
to friends." When a customer is satisfied with a product, he or she might recommend it to
friends, relatives and colleagues. This can be a powerful marketing advantage.)
"Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return.
Further, they can hurt the firm by making negative comments about it to prospective
customers. Willingness to recommend is a key metric relating to customer satisfaction."

"In literature antecedents of satisfaction are studied from different aspects. The
considerations extend from psychological to physical and from normative to positive
aspects. However, in most of the cases the consideration is focused on two basic
constructs as customer’s expectations prior to purchase or use of a product and his
relative perception of the performance of that product after using it.

Expectations of a customer on a product tell us his anticipated performance for that

product. As it is suggested in the literature, consumers may have various "types" of
expectations when forming opinions about a product's anticipated performance. For
example, four types of expectations are identified by Miller (1977): ideal, expected,
minimum tolerable, and desirable. While, Day (1977) indicated among expectations, the
ones that are about the costs, the product nature, the efforts in obtaining benefits and
lastly expectations of social values. Perceived product performance is considered as an
important construct due to its ability to allow making comparisons with the expectations.

It is considered that customers judge products on a limited set of norms and attributes.
Olshavsky and Miller (1972) and Olson and Dover (1976) designed their researches as to
manipulate actual product performance, and their aim was to find out how perceived
performance ratings were influenced by expectations. These studies took out the
discussions about explaining the differences between expectations and perceived
performance."

The Disconfirmation Model

"The Disconfirmation Model is based on the comparison of customers’ [expectations]

and their [perceived performance] ratings. Specifically, an individual’s expectations are

48
confirmed when a product performs as expected. It is negatively confirmed when a
product performs more poorly than expected. The disconfirmation is positive when a
product performs over the expectations(Churchill & Suprenant 1982). There are four
constructs to describe the traditional disconfirmation paradigm mentioned as
expectations, performance, disconfirmation and satisfaction." "Satisfaction is considered
as an outcome of purchase and use, resulting from the buyers’ comparison of expected
rewards and incurred costs of the purchase in relation to the anticipated consequences. In
operation, satisfaction is somehow similar to attitude as it can be evaluated as the sum of
satisfactions with some features of product." "In the literature, cognitive and affective
models of satisfaction are also developed and considered as Alternatives (Pfaff, 1977).
Churchill and Suprenant in 1982, evaluated various studies in the literature and formed an
overview of Disconfirmation process in the following figure:"

Construction

Organizations need to retain existing customers while targeting non-customers.

Measuring customer satisfaction provides an indication of how successful the
organization is at providing products and/or services to the marketplace.

Customer satisfaction is measured at the individual level, but it is almost always reported
at an aggregate level. It can be, and often is, measured along various dimensions. A hotel,
for example, might ask customers to rate their experience with its front desk and check-in
service, with the room, with the amenities in the room, with the restaurants, and so on.
Additionally, in a holistic sense, the hotel might ask about overall satisfaction 'with your
stay.'"

As research on consumption experiences grows, evidence suggests that consumers

purchase goods and services for a combination of two types of benefits: hedonic and
utilitarian. Hedonic benefits are associated with the sensory and experiential attributes of
the product. Utilitarian benefits of a product are associated with the more instrumental
and functional attributes of the product (Batra and Athola 1990).

49
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation
of the state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and
recommend rate. The level of satisfaction can also vary depending on other options the
customer may have and other products against which the customer can compare the
organization's products.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988
provides the basis for the measurement of customer satisfaction with a service by using
the gap between the customer's expectation of performance and their perceived
experience of performance. This provides the measurer with a satisfaction "gap" which is
objective and quantitative in nature. Work done by Cronin and Taylor propose the
"confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman,
Zeithaml and Berry as two different measures (perception and expectation of
performance) into a single measurement of performance according to expectation.

The usual measures of customer satisfaction involve a survey from software providers
such as Confirmit, Medallia, Opinionmeter and Satmetrix with a set of statements using a
Likert Technique or scale. The customer is asked to evaluate each statement and in term
of their perception and expectation of performance of the organization being measured.
Their satisfaction is generally measured on a five-point scale.

Very Somewhat Neither Somewhat Very satisfied

dissatisfied dissatisfied satisfied nor satisfied
dissatisfied
1 2 3 4 5

"Customer satisfaction data can also be collected on a 10-point scale." "Regardless of the
scale used, the objective is to measure customers’ perceived satisfaction with their

50
experience of a firm’s offerings." It is essential for firms to effectively manage customer
satisfaction. To be able do this, we need accurate measurement of satisfaction.

Good quality measures need to have high satisfaction loadings, good reliability, and low
error variances. In an empirical study comparing commonly used satisfaction measures it
was found that two multi-item semantic differential scales performed best across both
hedonic and utilitarian service consumption contexts. According to studies by Wirtz &
Lee (2003), they identified a six-item 7-point semantic differential scale (for example,
Oliver and Swan 1983), which is a six-item 7-point bipolar scale, that consistently
performed best across both hedonic and utilitarian services. It loaded most highly on
satisfaction, had the highest item reliability, and had by far the lowest error variance
across both studies. In the study, the six items asked respondents’ evaluation of their most
recent experience with ATM services and ice cream restaurant, along seven points within
these six items: “pleased me to displeased me”, “contented with to disgusted with”, “very
satisfied with to very dissatisfied with”, “did a good job for me to did a poor job for me”,
“wise choice to poor choice” and “happy with to unhappy with”.

A semantic differential (4 items) scale (e.g., Eroglu and Machleit 1990), which is a four-
item 7-point bipolar scale, was the second best performing measure, which was again
consistent across both contexts. In the study, respondents were asked to evaluate their
experience with both products, along seven points within these four items: “satisfied to
dissatisfied”, “favorable to unfavorable”, “pleasant to unpleasant” and “I like it very
much to I didn’t like it at all”.

The third best scale was single-item percentage measure, a one-item 7-point bipolar scale
(e.g., Westbrook 1980). Again, the respondents were asked to evaluate their experience
on both ATM services and ice cream restaurants, along seven points within “delighted to
terrible”.

It seems that dependent on a trade-off between length of the questionnaire and quality of
satisfaction measure, these scales seem to be good options for measuring customer
satisfaction in academic and applied studies research alike. All other measures tested

51
consistently performed worse than the top three measures, and/or their performance
varied significantly across the two service contexts in their study. These results suggest
that more careful pretesting would be prudent should these measures be used.

Finally, all measures captured both affective and cognitive aspects of satisfaction,
independent of their scale anchors. Affective measures capture a consumer’s attitude
(liking/disliking) towards a product, which can result from any product information or
experience. On the other hand, cognitive element is defined as an appraisal or conclusion
on how the product’s performance compared against expectations (or exceeded or fell
short of expectations), was useful (or not useful), fit the situation (or did not fit),
exceeded the requirements of the situation (or did not exceed).

Methodologies

American Customer Satisfaction Index (ACSI) is a scientific standard of customer

satisfaction. Academic research has shown that the national ACSI score is a strong
predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor of
Personal Consumption Expenditure (PCE) growth. On the microeconomic level,
academic studies have shown that ACSI data is related to a firm's financial performance
in terms of return on investment (ROI), sales, long-term firm value (Tobin's q), cash
flow, cash flow volatility, human capital performance, portfolio returns, debt financing,
risk, and consumer spending. Increasing ACSI scores has been shown to predict loyalty,
word-of-mouth recommendations, and purchase behavior. The ACSI measures customer
satisfaction annually for more than 200 companies in 43 industries and 10 economic
sectors. In addition to quarterly reports, the ACSI methodology can be applied to private
sector companies and government agencies in order to improve loyalty and purchase
intent. ASCI scores have also been calculated by independent researchers, for example,
for the mobile phones sector, higher education, and electronic mail.

The Kano model is a theory of product development and customer satisfaction developed
in the 1980s by Professor Noriaki Kano that classifies customer preferences into five
categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model

52
 offers some insight into the product attributes which are perceived to be important to
customers.

SERVQUAL or RATER is a service-quality framework that has been incorporated into

customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction
Barometer) to indicate the gap between customer expectations and experience.

J.D. Power and Associates provides another measure of customer satisfaction, known for
its top-box approach and automotive industry rankings. J.D. Power and Associates'
marketing research consists primarily of consumer surveys and is publicly known for the
value of its product awards.

Other research and consulting firms have customer satisfaction solutions as well. These
include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the
Stages of Excellence framework and which helps define a company’s status against eight
critically identified dimensions.

For B2B customer satisfaction surveys, where there is a small customer base, a high
response rate to the survey is desirable. The American Customer Satisfaction Index
(2012) found that response rates for paper-based surveys were around 10% and the
response rates for e-surveys (web, wap and e-mail) were averaging between 5% and 15%
- which can only provide a straw poll of the customers' opinions.

In the European Union member states, many methods for measuring impact and
satisfaction of e-government services are in use, which the eGovMoNet project sought to
compare and harmonize

These customer satisfaction methodologies have not been independently audited by the
Marketing Accountability Standards Board (MASB) according to MMAP (Marketing
Metric Audit Protocol).

IMPORTANCE OF CUSTOMER SATISFACTION

 It’s a leading indicator of consumer repurchase intentions and loyalty

53
 It’s a point of differentiation

 It reduces customer churn

 It increases customer lifetime value

 It reduces negative word of mouth

 It’s cheaper to retain customers than acquire new ones.

1) IT’S A LEADING INDICATOR OF CONSUMER REPURCHASE INTENTIONS

AND LOYALTY

Customer satisfaction is the best indicator of how likely a customer will make a purchase
in the future. Asking customers to rate their satisfaction on a scale of 1-10 is a good way
to see if they will become repeat customers or even advocates.

Any customers that give you a rating of 7 and above, can be considered satisfied, and you
can safely expect them to come back and make repeat purchases. Customers who give
you a rating of 9 or 10 are your potential customer advocates who you can leverage to
become evangelists for your company.

Scores of 6 and below are warning signs that a customer is unhappy and at risk of
leaving. These customers need to be put on a customer watch list and followed up so you
can determine why their satisfaction is low. See how satisfaction provides so much
insight into your customers? That’s why it’s one of the leading metrics businesses use to
measure consumer repurchase and customer loyalty.

2) IT’S A POINT OF DIFFERENTIATION

In a competitive marketplace where businesses compete for customers; customer

satisfaction is seen as a key differentiator. Businesses who succeed in these cut-throat
environments are the ones that make customer satisfaction a key element of their business
strategy.

54
 Picture two businesses that offer the exact same product. What will make you choose one
over the other?

If you had a recommendation for one business would that sway your opinion? Probably.
So how does that recommendation originally start? More than likely it’s on the back of a
good customer experience. Companies who offer amazing customer experiences create
environments where satisfaction is high and customer advocates are plenty.

This is an example of where customer satisfaction goes full circle. Not only can customer
satisfaction help you keep a finger on the pulse of your existing customers, it can also act
as a point of differentiation for new customers.

3) IT REDUCES CUSTOMER CHURN

An Accenture global customer satisfaction report (2008) found that price is not the main
reason for customer churn; it is actually due to the overall poor quality of customer
service.

Customer satisfaction is the metric you can use to reduce customer churn. By measuring
and tracking customer satisfaction you can put new processes in place to increase the
overall quality of your customer service.

I recommend you put an emphasis on exceeding customer expectations and ‘wowing’

customers at every opportunity. Do that for six months, than measure customer
satisfaction again. See whether your new initiatives have had a positive or negative
impact on satisfaction.

4) IT INCREASES CUSTOMER LIFETIME VALUE

A study by Info Quest found that a ‘totally satisfied customer’ contributes 2.6 times more
revenue than a ‘somewhat satisfied customer’. Furthermore, a ‘totally satisfied customer’
contributes 14 times more revenue than a ‘somewhat dissatisfied customer’.

55
 Satisfaction plays a significant role in how much revenue a customer generates for your
business.

Successful businesses understand the importance of customer lifetime value (CLV). If

you increase CLV, you increase the returns on your marketing dollar.

For example, you might have a cost per acquisition of $500 dollars and a CLV of $750.
That’s a 50% ROI from the marketing efforts. Now imagine if CLV was $1,000. That’s a
100% ROI!

Customer lifetime value is a beneficiary of high customer satisfaction and good customer
retention. What are you doing to keep customers coming back and spending more?

5) IT REDUCES NEGATIVE WORD OF MOUTH

McKinsey found that an unhappy customer tells between 9-15 people about their
experience. In fact, 13% of unhappy customers tell over 20 people about their experience.
That’s a lot of negative word of mouth. How much will that affect your business and its
reputation in your industry? Customer satisfaction is tightly linked to revenue and repeat
purchases. What often gets forgotten is how customer satisfaction negatively impacts
your business. It’s one thing to lose a customer because they were unhappy. It’s another
thing completely to lose 20 customers because of some bad word of mouth.

To eliminate bad word of mouth you need to measure customer satisfaction on an

ongoing basis. Tracking changes in satisfaction will help you identify if customers are
actually happy with your product or service.

6) IT’S CHEAPER TO RETAIN CUSTOMERS THAN ACQUIRE NEW ONES

This is probably the most publicized customer satisfaction statistic out there. It costs six
to seven times more to acquire new customers than it does to retain existing customers.

56
 If that stat does not strike accord with you then there’s not much else I can do to
demonstrate why customer satisfaction is important.

Customers cost a lot of money to acquire. You and your marketing team spend thousands
of dollars getting the attention of prospects, nurturing them into leads and closing them
into sales.

Why is it that you then spend little or no money on customer retention?

Imagine if you allocated one sixth of your marketing budget towards customer retention.
How do you think that will help you with improving customer satisfaction and retaining
customers?

Here are some customer retention strategies to get you thinking:

 Use blogs to educate customers

 Use email to send special promotions

 Use customer satisfaction surveys to listen

 Delight customers by offering personalized experiences

57
 CHAPTER 5
DATA ANALYSIS
AND
INTERPRETATION

58
 DATA ANALYSIS AND INTERPREATAION

This project is based on the data collected from farmers and dealers, as directed by the

company, during this project, areas in and around Balabadrapuram are covered and

approximately 50 customers are being interviewed. The results is based on the personal

interview is classified in this chapter.

59
1. From how many years you are the customer of KPR Products?

Particulars No. Of. Respondents % of the

Respondents
3 years 5 10%
5 years 15 30%
8 years 30 60%
Total 50 100%

70%

60%
60%

50%

40%

30%
30%

20%

10%
10%

0%
3 Years 5 Years 8 Years

INTERPRETATION:

It is clear from the above table of 50 respondents, 60% of the respondents

expressed that they are the customers of KPR Products from 8years. 30% of the
respondents expressed that they are the customers of KPR Products from 5years.10% of
the respondents expressed that they are the customers of KPR Products from 3 years.

60
2. Is the yield of your field improved after using KPR Products?

Particulars No. Of. Respondents % of the Respondents

Improved 45 90%
Not Improved 5 10%
Total 50 100%

100%
90%
90%

80%

70%

60%

50%

40%

30%

20%
10%
10%

0%
Improved Not Improved

INTERPRETATION:

It is clear from the above table of 50 respondents,90% of the respondents said that
their yield improved after using KPR Products.10% of the respondents said that their
yield was not improved after using KPR Products.

61
3. Do you know about the kissan seva Kendra of KPR Company?

Particulars No. Of. Respondents % of the Respondents

Yes 50 100%
No 0 0%

Total 50 100%

120%

100%
100%

80%

60%

40%

20%

0%
0%
Yes No

INTERPRETATION:

It is clear from the above table of 50 respondents, 100% of the respondents are
aware of Kisan Seva Kendra of KPR, 0% of the respondents are unaware of Kisan Seva
Kendra of KPR.

62
4. Are you satisfied with the services of kissan seva Kendra?

Particulars No. Of. Respondents % of the Respondents

Highly Satisfied 34 68%
Satisfied 10 20%
Average 6 12%
Total 50 100%

80%

70% 68%

60%

50%

40%

30%
20%
20%
12%
10%

0%
Highly Satisfied Satisfied Average

INTERPRETATION:

It is clear from the above table of 50 respondents, 68% of the respondents are
highly satisfied with the services of Kisan Seva Kendra, 20% of the respondents are
satisfied with the services of Kisan Seva Kendra,12% of the respondents are averagely
satisfied with the services of Kisan Seva Kendra.

63
5. Which factor influences you to buy the KPR Products?

Particulars No. Of. Respondents % of the Respondents

Quality 25 50%
Price 10 20%
Availability 10 20%
All The Above 5 10%
Total 50 100%

60%

50%
50%

40%

30%

20% 20%
20%

10%
10%

0%
Quality Price Availability All The Above

INTERPRETATION:

It is clear from the above table of 50 respondents, 50% of the respondents

expressed that quality of KPR Products influences them to buy, 20% of the respondents
expressed that price of KPR Products influence them to buy, 20% of the respondents
expressed that availability of KPR Products influence them to buy, 10% of the
respondents expressed that all the above factors of KPR Products influence them to buy.

64
6. Who told you about KPR Products?

Particulars No. Of. Respondents % of the Respondents

KPR Salesman 20 40%
Other Farmers/Users 25 50%
Your Interest 5 10%
Total 50 100%

60%

50%
50%

40%
40%

30%

20%

10%
10%

0%
KPR Salesman Other Farmers/Users Your Interest

INTERPRETATION:

It is clear from the above table of 50 respondents, 40% of the respondents said that
KPR Salesmam told them about KPR Products, 50% of the respondents said that other
farmers/ users told them about KPR Products, 10% of the respondents said that they
know KPR Products by their interest.

65
7. Do you like to recommend other farmers to purchase KPR Products?

Particulars No. Of. Respondents % of the Respondents

Yes 49 98%
No 1 2%
Total 50 100%

120%

98%
100%

80%

60%

40%

20%

2%
0%
Yes No

INTERPRETATION:

It is clear from the above table of 50 respondents, 98% of the respondents said that
they will recommend other farmers to purchase KPR Products, 2% of the respondents
said that they will not recommend other farmers to purchase KPR Products.

66
8. Do you expect any additional services from KPR Company?

Particulars No. Of. Respondents % of the Respondents

Yes 47 94%
No 3 6%
Total 50 100%

100% 94%
90%

80%

70%

60%

50%

40%

30%

20%

10% 6%

0%
Yes No

INTERPRETATION:

It is clear from the above table of 50 respondents, 94% of the respondents are
expecting additional services from KPR Company, 6% of the respondents are not
expecting additional services from KPR Company.

67
9. How would you compare the price of KPR Products with other companies?

Particulars No. Of. Respondents % of the Respondents

High 10 20%
Normal 15 30%
Low 25 50%
Total 50 100%

60%

50%
50%

40%

30%
30%

20%
20%

10%

0%
High Normal Low

INTERPRETATION:

It is clear from the above table of 50 respondents, 50% of the respondents

expressed that the price of KPR Products is low, 30% of the respondents expressed that
the price of KPR Products is normal, 20% of the respondents expressed that the price of
KPR Products is high.

68
10. Have you find any difference regarding quality and quantity while comparing KPR
Products with other company products?

Particulars No. Of. Respondents % of the Respondents

Yes 42 84%
No 8 16%
Total 50 100%

90% 84%
80%

70%

60%

50%

40%

30%

20% 16%

10%

0%
Yes No

INTERPRETATION:

It is clear from the above table of respondents 50 respondents, 85% of the

respondents expressed that they find difference regarding quality and quantity while
comparing KPR Products with other company products, 16% of the respondents
expressed that they did not find any difference regarding quality and quantity while
comparing KPR Products with other company products.

69
11. Do you like to suggest any promotional activities?

Particulars No. Of. Respondents % of the Respondents

Hoardings 12 24%
Pamphlets 10 20%
Advertisements 18 36%
All The Above 10 20%
Total 50 100%

40%
36%
35%

30%

25% 24%

20% 20%
20%

15%

10%

5%

0%
Hoardings Pamphlets Advertisements All The Above

INTERPRETATION:

It is clear from the above table of 50 respondents, 24% of the respondents

suggested Hoardings as best promotional activity of KPR, 20% of the respondents
suggested pamphlets as best promotional activity of KPR, 36% of the respondents
suggested Advertisements as best promotional activity of KPR, 20% of the respondents
suggested all the above as best promotional activities of KPR.

70
12. Which of these given below increase the sales of KPR Products?

Particulars No. Of. Respondents % of the Respondents

Quality 30 60%
Price 10 20%
Availability 5 10%
All The Above 5 10%
Total 50 100%

70%

60%
60%

50%

40%

30%

20%
20%

10% 10%
10%

0%
Quality Price Availability All the Above

INTERPRETATION:

It is clear from the above table of 50 respondents, 60% of the respondents opinion
was that quality of the products of KPR will increase its sales, 20% of the respondents
opinion was price of the products of KPR will increase its sales, 10% of the respondents
opinion was availability of products of KPR will increase its sales, 10% of the
respondents opinion was all the above factors of products of KPR will increase its sales.

71
13. How would you rate the KPR Products used by you?

Particulars No. Of. Respondents % of the Respondents

Extremely Satisfied 14 28%
Satisfied 20 40%
Average 16 32%
Total 50 100%

45%
40%
40%

35% 32%
30% 28%

25%

20%

15%

10%

5%

0%
Extremely Satisfied Satisfied Average

INTERPRETATION:

It is clear from the above table of 50 respondents, 28% of the respondents rated that
they are extremely satisfied with KPR Products, 40% of the respondents rated that they
are satisfied with KPR Products, 32% of the respondents rated that they are averagely
satisfied with KPR Products.

72
CHAPTER-6
FINDINGS
SUGGESTIONS
AND
CONCLUSION

73
 FINDINGS

 60% of the respondents expressed that they are the customers of KPR products

since 8years.

 Majority of the farmers expressed that they are highly satisfied with the quality of

the KPR Products.

 Majority of the customers expressed that the yield of their field improve after

using KPR Products.

 Majority of the respondents expressed that they are aware of Kissan Seva Kendrs

of KPR Agochem.

 Majority of the respondents expressed that other farmers / users told them about

KPR Products.

 Majority of the customers expressed that the price of KPR Products is low

compared to other Fertilizers.

 Majority of the respondents rated that they are extremely satisfied with Kpr

Products.

74
 SUGGESTIONS

 KPR products may aggressively promote other products also apart from pesticides and

fertilizers to increase their market share and to increase its product line.

 In the current market most of the distributors are selling KPR products because of greater

profit margins. KPR may also be able to make efforts to build brand image as it will help

the company in the long run.

 Promotional activities such as ads and print media may be more prominently used to

improve sales. They can use different methods like television radio etc.,

 Field campaigns may be carried out to enhance customer awareness.

 Sales team could be thoroughly trained and may be imparted with sales expertise as they

act as an interface between the company and the dealers.

75
 CONCLUSION

Within organizations, customer satisfaction ratings can have powerful effects. They focus
employees on the importance of fulfilling customers' expectations. Furthermore, when
these ratings dip, they warn of problems that can affect sales and profitability.... These
metrics quantify an important dynamic. When a brand has loyal customers, it gains
positive word-of-mouth marketing, which is both free and highly effective." Therefore, it
is essential for businesses to effectively manage customer satisfaction. To be able do this,
firms need reliable and representative measures of satisfaction.

After a detailed study on the topic, it is found that, Farmers perceive KPR as local
brand compared to its competitor who has a good brand image. KPR can balance its low
cost strategy with its efforts to creating a strong brand image. The perception of farmers
towards KPR products can be changed, for this KPR should build a strong distribution
network. In the process of understanding the perception of dealers towards KPR products
it is observed that the quality and packing has to be improved.

76
ANNEXURE
BIBLIOGRAPHY
QUESTIONNAIRE

77
BIBLIOGRAPHY

Books referred:

Marketing Management: Philip Kotler

Marketing Management: Peter Drucker

Websites:

www.marketing.org

www.estrategicmarketing.com

www.marketingprofs.com

www.fertilizers@kprgroup.in

www.marketingstudies.net

78
 QUESTIONARRIE

Dear Respondent,

I,SURESH PENDYALA pursuing BBA from Aditya Degree College,

Kakinada, as a part of our curriculum we need to undergo on project.

In this context, a project work titled KPR Agrochem has been undertaken by
me. You are requested to fill this questionnaire.

Questionnaire on KPR Agrochem:

Name: Age:

Education Qualification: Gender:

Are you customer of KPR?

(a)Yes (b)No

1. From how many years you are the customer of KPR Products?
a.3 years b.5 years c. 8 years
2. Is the yield improved after using KPR Products?
a. Improved b. Not improved
3. Do you know about the kissan seva Kendra of KPR Company?
a. Yes b. No
4. Are you satisfied with the services of kissan seva Kendra?
a. Extremely satisfied b. Satisfied c. Average
5. Which factor influences you to buy the KPR Products?
a. Quality b. Price c. Availability
d. All the above
6. Who told you about KPR Products?

a. KPR salesman b. Other farmers\users c. Your interest

7. Do you like to recommend other farmers to purchase KPR Products?

a. Yes b. No

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8. Do you expect any additional services from KPR Company?
a. Yes b. No

9. How would you compare the price of KPR Products with other companies?
a. High b. Normal c. Low
10. Have you find any difference regarding quality and quantity while comparing KPR
Products with other company products?
a. Yes b. No
11. Do you like to suggest any promotional activities?
a. Jeep companion b. Holdings c. Pamphlets
d. Advertisements e. All the above
12. Which of these given below increase the sales of KPR Products?
a. Advertisements b. Trust of people c. Quality
d. All the above
13. How would you rate the KPR Products used by you?

a. Extermely satisfied b. Satisfied c. Average

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