International Research Journal of Social Sciences___________________________________ _ _ _ ISSN 2319 – 3565 Vol. 4 ( 1 1 ), 30 - 36 , November (2015) I nt. Res. J. Social Sci. International Science Congress Association 30 Impact of Marketing Practices followed by Agro - Based Units on Consumer Consumption: with Special Reference to Varanasi District , UP, India Anuj Gupta Faculty of Commerce, B.H.U. INDIA Available online at: www.isca.in Received 7 th October 201 5 , revised 3 th November 201 5 , accepted 13 th November 2015 Abstract In the agrarian economy, the agro - based units are facing problems in their expansion from the very existence. The problem is not new in India; it has been found that from our independence we are struggling in this path. The processing of agricultural product has become a chaos in the economy. Quality, price, distribution, promotion, finance, health , government policies, managerial inefficiencies, etc. are found a big cause for the same. In this paper the researcher has targeted 200 agricultural processed products dwelling in Varanasi. This sample gives a clear cut emphasis on the thrust areas of imp rovement. In the paper the consumers targeted are representing both rural and urban area. 32% of respondents were of rural sector and 68% were of urban area. All the respondents are approached using one of the survey method of primary data collection, i.e. , questionnaire and schedule method. These responses are classified using tables that help in clear vision of the study. This study helps in knowing the reason of poor performance of agro - based units in Varanasi. It also suggests certain aspects that help in overcoming these problems. Keywords: Agrarian economy, struggling, improvement, primary data collection . Introduction Presence of marketing in various sectors is highly identifiable. It is not such that one couldn’t trace the path of marketing practices. The transparency of marketing is seen from the very stage of planning for production and is on - going and never ending too. The processing of agricultural product has become a chaos in the economy. Quality, price, distributi on, promotion, finance, health, government policies, managerial inefficiencies, etc. are found a big cause for the same 1 . In agro - based units, marketing practices are being followed with the changing need of hour 2 . Previously, it was not adopted at large r pace, but nowadays it is highly used, even in non - durable goods also. If we take an example of bread manufacturing unit; the product is non - durable that sustain up to 2 - 3 days only. These products are so manage and marketed from the very starting point t o the end consumers, that the wastage becomes negligible 3 . Revolutionary steps in the marketing of such products are still to be tested. Kiosk marketing has boosted these non - durable goods as a boon. It has contributed towards employment generation and c onsumer satisfaction. The positive essence of consumer behavior is highly useful for every marketer as well as entrepreneur. Positive consumer behavior enhances the market as well as market share, vice - versa. It is upon the marketer, who could analyze the consumer behavior and change the same, parallel to their products. A good marketer could also fail in analyzing the consumer behavior due to various uncertain and sophisticated factors. But, if success of positive interpretation of consumer’s consuming pat tern is once achieved; it harvest huge market and its share 4 . In the present paper, the impact of marketing practices followed by agro - based units upon the consumers of Varanasi district is analyzed. It will help in knowing whether the marketing practices prevailing is up to the mark of consumer’s demand and expectation or not. The consumer behavior of people of Varanasi is targeted in the present study. Objective of Study : The chief objective of this research paper is to examine the marketing practices f ollowed by the agro - based units in Varanasi market, to examine the consuming pattern of consumers living in Varanasi towards such good, to analyze the reason for such pattern and to find out the measures to overcome the problems faced by agro - based units. Literature Review : Various books, e - journals, newspapers, thesis, etc. is used to make this paper. This helped in enhancing the knowledge about the topic and related study already done. Some of them are as follows: In his book, P.Kotler 5 , the base of mar keting management is explained thoroughly, with the context of South Asia. Elements of marketing are elaborated in detail, which has helped in understanding the topic. Schiffman 6 , in his book has explained various forms of consumer behavior and has helped in knowing something extra about the consumer behavior. The relevance of consumer behavior to the business has been explained in the book. International Research Journal of Social Sciences__ ______________ ________________________ ____________ ISSN 2319 – 3565 Vol. 4 ( 1 1 ), 30 - 36 , November (201 5 ) Int. Res. J. Social Sci. International Science Congress Association 31 R.P. Kachru 7 in his research paper had explained the status, growth and prospects of agro - processing industries in I ndia. The study was highly backed by secondary data and gains massive popularity. B.A.Iqbal 8 , in his study the performance and prospects of the agro - based industries was covered. It has given various suggestions to improve the condition of these units in I ndia. P.Gite 9 , in her research thesis, detailed information about the marketing practices of agro - processing industries, their problems, prospects and other related things were mentioned. The data was taken for 15 years and information was processed there by. A.Singh 10 , in her thesis had used the primary as well as secondary data. Primary data was used in bulk which was collected from the various sources especially 99 SSIs present in Varanasi. The thesis was submitted in 2010 hence data collected up to that year interprets the condition of SSIs. B.Banerjee 11 , in his thesis the problems of industrial sickness faced by the industries in Varanasi was focused. The study was highly backed by primary data. The study gives reason behind the industrial sickness; among them marketing was one. A.Upadhyaya’s 12 thesis has given a base for studying the concept of industries engaged in agro - processing activities. This has helped in knowing the ways to carry on the paper. Methodology The study is highly based upon the p rimary data, as the consumer consumption pattern is highly dynamic. The study is concentrated upon the agro - consumers of Varanasi. In total 200 agro - consumers are approached and data are taken from them. Secondary data was received from MSME - DI and DIC, v arious research works already done by the researchers and other published data. The data collected is properly categorized and classified with the help of various tables, line - graphs, pie - charts, etc. The data will be collected by schedule method by the re searcher. Various statistical tools like mean, percentage, etc. are used as per need . Status of Agro - based units in Varanasi Table - 1 Recent status of registered agro - based units in Varanasi 13 Code no. of NIC Nature of Industry Number of units Registered Invested Amount (Crore rs.) Employed Persons 20 Agro based units 237(3.37) # 22.30(3.2) 906(2.41) - Others 6796(96.63) 675.28(96.8) 36621(97.59) Total 7033(100) 697.58(100) 37527(100) Source: MSME - DI #Amounts in brackets shows % of total Data up to 2013 - 14 Figure - 1 Status of agro - based units in comparison to total registered units 0 1000 2000 3000 4000 5000 6000 7000 8000 Agro based units Total Units International Research Journal of Social Sciences__ ______________ ________________________ ____________ ISSN 2319 – 3565 Vol. 4 ( 1 1 ), 30 - 36 , November (201 5 ) Int. Res. J. Social Sci. International Science Congress Association 32 The table - 1 and figure - 1 shows status of agro - based units located in Varanasi district up to 2013 - 14. It also shows the investment and employment given by these units. It is seen that the units accounts for only 3.37% of total industrial units present in Varanasi. While only 2.41% of employment is generated by these units with investment of nearly 3.2% of the total investment. Informatio n gathered from the respondents : It is said that the collection of primary data is a tedious job, but what we get from these data are true, latest and fresh. The data is collected via schedule method by the researcher. Following are the status of the data: Number of respondents = 200 , Age limit = 18 to 24 , Agricultural consumers = 200(all) Table - 2 Status of living areas n=200 Respondents Rural Urban Agricultural consumers 32 # 68 # Numbers are showing percentage , Source : Primary Data As per figure 2, out of 200 respondents, 32% were belonging to rural area while 68% were from urban area. Hence views of both types of consumers are received. In the table - 3, various responses are recorded from the agricultural consumers. It is found that such consumer s are fonder of branded (74) and advertised (66) agricultural products. Quality consciousness (74) is more important than its availability. This is due to more awareness and easy transportation facilities. Both price and quality of product is considered (8 2) while purchasing these products. They also consult with others (50) while purchasing these goods. Figure - 2 Status of living areas Table - 3 Pattern of Agricultural Consumers’ consumption n=200 Categories Yes No Prefer branded agricultural products 74 # 26 Purchase product by consulting others 50 50 Price and product both are considered while purchasing 82 18 Quality of product is preferred over its availability 74 26 Prefer advertised product 66 34 Source: Primary Data , Note: Multiple responses possible. # Numbers are showing percentage Table - 4 Status of consumer satisfaction from marketing practices n=200 Satisfaction level Percentage of respondents Fully satisfied 4 Average 92 Not satisfied 4 Source: Primary Data Rural 32% Urban 68% International Research Journal of Social Sciences__ ______________ ________________________ ____________ ISSN 2319 – 3565 Vol. 4 ( 1 1 ), 30 - 36 , November (201 5 ) Int. Res. J. Social Sci. International Science Congress Association 33 In the table 4 and figure 3, the satisfaction level of consumers is shown. It is found that 96% of consumers are not fully satisfied from the marketing practices followed by agro - based units in Varanasi market. Hence, an alarming stage is there to improve the present status of the units. Table - 5 Promotional tools preference n=200 Promotional tools Percentage of respondents Advertisement 56 Sales promotion 12 Direct selling 10 Publicity 22 Source: Primary Data In the table 5 and figure 4, it is shown that from various promotional tools advertisement (56) is preferred more by these consumers. Publicity (22) is also favored by these consumers to some extent. Table - 6 Status of consumer satisfaction from agro - base d products produced locally n=100 Satisfaction status Percentage of Respondents Fully satisfied 32 Average 62 Not satisfied 06 Source: Primary Data Figure - 3 Satisfaction status from marketing practices Figure - 4 Promotional tools preferred Fully satisfied 4% Average 92% Not satisfied 4% Advertisement 56% Sales Promotion 12% Direct Selling 10% Publicity 22% International Research Journal of Social Sciences__ ______________ ________________________ ____________ ISSN 2319 – 3565 Vol. 4 ( 1 1 ), 30 - 36 , November (201 5 ) Int. Res. J. Social Sci. International Science Congress Association 34 Figure - 5 Satisfaction Status from local agro - products In the table - 6 and figure - 5, it is shown that the people are not fully satisfied (68) from the agro - processed products produced at local level. Only 32% of respondent s are satisfied from the products produced by the agro - based units locally. Hence, remedial measures are necessary for improvement. Results and Discussion Findings and Suggestions : Following are the findings and suggestions which the researcher has found in the study: Poor product quality 14 : It has been found that the product quality of the agro - processed products is very poor. The consumers are facing problems when they are using such products, generally, produced locally. There must be a quality contro l committee in every such unit, so that the quality of the product is uniformly produced and sold. Inappropriate price setting scheme: It has been found that the pricing schemes of these units are not up to mark. They keep on changing the schedule of the pricing. It differs from area to area. Even the manner of pricing is also not fair, they are discriminative in nature. Hence, the price set up must be set following the non - discriminative policy and revision of the same must also be done timely. Distributional policies: The distributional policies followed by the units are somehow imbalanced. Emphasis is more upon the urban customers rather than the rural one. The remote areas face with poor distribution policies. Hence, distribution channels must be shortened and appropriate dimension of rural and urban areas must be made. Officials and products must be assigned accordingly. Promotional policies: The promotional policies relating to advertisement, sales promotion, salesmanship and publicity are n ot guided appropriately for the rural areas. Certain policies are framed which are complicated and misleading, that further deals with cheating and frauds. Hence, the promotional panels must be established for setting appropriate promotional policies and pilot testing must be done for each promotional strategies. Financial problem 15 : The major problem found in the research is lack of financial soundness of the agro - based units located locally. These units are traditionally financed and lacks adequate amou nt of finance too. Hence, the institutional bodies for financial assistance must ensure quick loan disbursement to these units, so that they may flourish easily. Technology up gradation: The technique of production and distribution followed by these indu strial units are old and obsolete. They use those machines which were used in various developed nations many years ago. Fully satisfied 32% Average 62% Not satisfied 6% International Research Journal of Social Sciences__ ______________ ________________________ ____________ ISSN 2319 – 3565 Vol. 4 ( 1 1 ), 30 - 36 , November (201 5 ) Int. Res. J. Social Sci. International Science Congress Association 35 Hence, the use of advanced technology and the up gradation of the remaining one is necessary for the all point of views. Health issues 16 : The consumers are more conscious about their health related issues. These units must be free from adulteration and other hazardous health related issues. Hence the consumers are not attracted due to these facts. Due to this, a controlling measure must be the establishment of health and laboratory test department, which check health and nutrition value of the product must be maintained. Government support 17 : It is found that the agro - based units are not properly supported by the government in their wor king. The financial, technological, managerial, legal, etc. support is not received from the government to these units. Consumers are of view that the government must ensure that the schemes of development formulated for the same must reach the units time ly. Easier contact with the government officials must be made for other related aspects. Online marketing: It is found that the customers are of opinion that the option for online marketing must be enacted in the area of agro - based products too. 44% of co nsumers were of the same view. The support of online marketing must be done timely, by using the concept of e - marketing in the business. Technical assistance must be given to these units so that they may flourish around the internet. Ethical application of business policies: It is being found that the application of ethical application is very necessary in the day to day activity of these units. Hence, a code of conduct is very necessary for the purpose of proper ethical activities in the production activities. Limitation of Study: The products which are related to agro - based units and consumed by people of Varanasi, only those products are considered and their marketing impact on consumers is centralized. The present study is a uniqu e one and was not done in the past. Hence, it would be fruitful for all. But there may be certain areas which are not covered in the study. It is mainly due to individual researcher’s constraint and resource limitation. The study is highly depending upon the responses of the consumers and other secondary data which is received. Conclusion The study is concentrated only on the impact of marketing practices followed by agro - based units upon consumer consumption. The people of Varanasi only are taken as samp le and their pattern is analyzed. Agricultural consumers here refer to the consumers who consume agro - processed good such as confectionaries, flour, and other such goods. Agro - based units refer to the units engaged in processing the agricultural output for the consumers and produces agro - processed goods. In the present study, the main objective was to analyze the impact of marketing practices followed by agro - based units on the consumer consumption. This was further divided into certain segments such as pr actices followed by the industrial units, consumption pattern of consumers, reason for such consumption and remedial measures. It has been found that nearly 96 % of the Varanasi consumers are not fully satisfied from the marketing practices of such product s. The reason is chiefly for product quality, pricing, distributional and promotional strategies. The problems could be overrun by following these practices in the recommended manner mentioned above. Therefore, the units must emphasize on the research wor k to overcome the riddles faced in their day to day operations. References 1. Sharma A.P., Marketing problems of small - scale industries; Quoted in Neelmegham, S. (ed.); Marketing in India – Cases and Readings, Vikash Publishing House Pvt. Ltd., New Delhi, 240 (1996) 2. Chengappa P.G., Emerging Trends in Agro - processing in India; India n Journal of Agricultural Economics, 59, (2004) 3. Alagh Y.K., Agro - based Industrialisation in India, in Harish Nayyar and P. Ramaswami (eds) GAM ( 1995) 4. Desai B.M. and N.V. Nambuoodiri, Development of Food – Processing Industries: EPW, 26, (1992) 5. 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