The fertiliser industry is passing through a bad patch. Enquiries and investigations are on. Rate of subsidy for new year is still undecided. There is delay in payments. Spectre of doubt about industry's commitment and honesty has been created. This may spread and increase.This is the right time for the industry to plungs itself with renewed vigour into market activity. This way its relationship with customers and farmers will acuire a better image which in turn would help in reestablishing its glory and popularity. It would also silence critics of fertiliser use and contain the organic lobby.
Dealer development is one aspect which needs to be sustained at high tempo on continuous basis. Many programmes are already being operated by manufacturers as well as FAI to train dealers. This particularly refers to operation of FCO, its scope and limitations, compliance of FCO by dealers, agronomic package of practices of major crops grown in an area, fertiliser use in them, business ethics for a dealer, development of business skills, even helath of a dealer particularly ability to cope with day to day stress, etc. This is being implemented in group meetings of dealers with half a day or full day programme. Apart from senior managers of the company, the govt officials and the subject matter specialists of the department and the agri-university are involved. These programmes are good and yield desired results. Dealer visits are also being arranged to expose them to new areas, provide recreation and welcome change.
However, there is no escape from the fact that individual meetings and discussions yield more results in terms of dealer motivation. The state level marketing managers of big companies and head of marketing of small companies must spare 80 per cent or more time only for dealer motivation.
The field workers meet dealers to book orders, collect money and render other services. Their must be backed up by marketing managers by constant touch with customers, preferably in their own environment with a view to understanding dealers' mind, their feelings, their makret feedback of competitors' activity and general agricultural scene including fertiliser lifting, their expectations from the company, their problems of supply, packing, availability, storage, etc. Individual discussions establish and enhance understanding between the company and the customerand the customer feels elated by the visit of the senior manager. Group meetings then become more meaningful but group meetings can not substitute individualmeetings.
Another important area is the relationship between wholesaler and his various customers. A good wholesaler commands 10 to 30 retailers who buy through him. It is necessary to understand this relationship, help in improving it so that business can grow. By constant contact, it is possible to spot the talent in a customer and help him to grow further either by increasing counter sale or by acquiring bigger clientale. There are many fine examples of a retailer becoming a big wholesaler in eight, 10 years due to company encouragement. Still his commitment on continuous basis has to be ensured by constant dialogue, resolving his problems and offering him further encouragement. Due to competition, dealer loyalty is at stake. There is no room for complacency. Also, ultimate customer being farmer, dealers' relationship with them also must be minutely observed and wherever possible, encouraged. Another area is relationship of dealers with local Govt. officials. Due to subsidy and its myriad requirements, thisrelationship is getting strained. Customer ultimately gets discouraged and business suffers.
The Marketing managers are ideally placed to play a positive role and improve this relationship. It can not be left to dealers, particularly honest dealers who deserve this support. Resolving dealer accounts on seasonal basis is another important service which improves image of the company. Now a days computer help is available and it is possible to provide computers to enterprising field staff, so that daily feedback of supply, quantity, billing, realisation is provided and dealer gets the information immediately. This would minimise accounts problems and make terms of sale very clear. In turn, visits of Markting Managers possible to provide financial help to needy dealers by a tie up with bank. This will increase dealers' ability to buy and sale. Timely supply of sound material in peak season will also go a long way in motivating dealer and encourage him to buy more in off season. Providing incentive for achieving targets in kind is another area to develop. Kind incentive could be medical insurance forself and family, enlargement of territory of operation, public recognition, meeting educational expenses of children, etc.
Dealer selection process has been greatly developed by fertiliser companies who have drawn good talent into this business in last 30 years. Financial status, standing and reputation of a potential customer, willingness to pay in time, ability to buy a specific tonnage, establishment and storage availble, etc., are all studied before appointing a dealer. However, with high mortality of 10 to 15 per cent per year and changing social environment, greater care has to be exercised in selecting a dealer.
Applications are invited and interviews are taken as per procedure but this must be preceded by a comprehensive on-the-spot assessment of a potential customer.
There are many establishments in India which on the face of it seem automatic choice as a fertiliser dealer because of show, largeness of operation, good financial back up, etc., but many times such selections prove shortlived or wrong because commitment is missing. On the other hand, there are also establishments which are small, lacklustre or both the man over there is sincere, committed and eager. One never regrets selecting such a dealer because he works hard to establish himself in the eyes of the company and in the process develops company's business and reputation. Therefore, the last word in dealer selection must be that personal judgement for which we must go to the market and spot the man.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.