Dealer s Role in Carrying Out Promotional Practices of Agricultural Equipment - An analysis

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1 Dealer s Role in Carrying Out Promotional Practices of Agricultural Equipment - An analysis Dr. V.Sivakumar Asst. Professor, Alagappa Institute of Management Alagappa University, Karaikudi Tamilnadu, South India Dr.S.Kaliyamoorthy Professor & Director, Alagappa Institute of Management Alagappa University, Karaikudi Tamilnadu, South India ABSTRACT: The purpose of this study is to examine the role of dealers in carrying out the promotional practices of agricultural equipment manufacturer s and to analyze the problems faced by the dealers in promoting agricultural equipments. The F-value of is significant at one per cent level indicating that there is a significant difference in role of dealers in carrying out the promotional practices for agricultural equipments. The exploratory factor analysis indicates that information provider, advertising, social interaction, outdoor promotion, service provider, demonstration, incentives provider and value addition are the factors determining the role of dealers in carrying out the promotional practices of agricultural equipments. The manufacturers should formulate the promotional measures not only attract the farmers and also dealers in order to increase the dealership and also sales. The manufacturers should create demand for their equipments through proper promotion mix strategies in order to make stakeholders familiar with their equipments and also keep their reputations. Key Words: Agricultural Equipment, Exploratory or Analysis, Promotional Practices, Regression INTRODUCTION The technological improvements in Indian agriculture since mid sixties have brought about revolutionary increase in agricultural production. Interestingly, the growth rate of food grain production particularly in case of wheat and rice was much higher than the growth rate of population. The country was facing acute food shortages till eighties has now become not only self sufficient but also a net exporter of food grains. Farm mechanization has been helpful to bring about a significant improvement in agricultural productivity. Thus, there is strong need for mechanization of agricultural operations. The factors that justify the strengthening of farm mechanization in the country can be numerous. The timeliness of operations has assumed greater significant in obtaining optimal yields from different crops, which has been possible by way of mechanization. IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 43

2 Mechanisation refers to interjection of machinery between men and materials handled by them. In agriculture materials are soil, water, environment, seed, fertilizer, pesticides, growth regulators, irrigation, agricultural produce and by-products such as food grains, oilseeds, fruits and vegetables, cotton, sugarcane, jute and kenaf and other cash crops, milk, meat, eggs and fish. There is scope of mechanisation in every unit operation of production agriculture, post-harvest and agro-processing, and rural living. Mechanisation has varied connotations. While in the developed world it tends to be synonymous to automation but in developing countries, like India, mechanisation means any improved tool, implement, machinery or structure that assists in enhancement of workers output, multiplies the human effort, supplements or substitutes human labour that is enabling and removing, avoids drudgery or stresses that adversely affect human mental faculties leading to errors, imprecision and hazards and eventually loss of efficiency. It also means automation and controls that assure quality, hygiene. Agricultural mechanisation in a limited sense relates to production agriculture. Farm mechanisation has been helpful to bring about a significant improvement in agricultural productivity. Thus, there is strong need for mechanisation of agricultural operations. The factors that justify the strengthening of farm mechanisation in the country can be numerous. The timeliness of operations has assumed greater significant in obtaining optimal yields from different crops, which has been possible by way of mechanisation. The large and medium scale manufacturers have well organised distributors and dealers throughout the country to undertake advertising and product promotion in their respective territories, conduct product awareness training programmes for the prospective customers, provide after-sales-service to the customers including free services, repair and maintenance and supply of parts. Therefore, this organised sector has the whole of the country as their market due to which their production volumes are large, and their information feedback about their product performance, improvements required in design, production processing or quality, and the new requirements of the farmers to undertake product developments. With this background, the present research is attempted to examine the role of dealers in carrying out the promotional practices of agricultural equipment manufacturer s and to analyze the problems faced by the dealers in promoting agricultural equipment in Tamilnadu. METHODOLOGY Among the different states in India, Tamil Nadu has been purposively selected for the present study. The dealers of agricultural equipments have been selected by adopting random sampling technique through pre-tested and structured questionnaire. The questions are measured by using Likert five point scale (1 represents strongly disagree and 5 represents strongly agree. The data and information is collected from the dealers of agricultural equipments and pertain to the year To accomplish the objective of the present study, the descriptive statistics, exploratory factor analysis and multiple regressions have been employed RESULTS AND DISCUSSION 1. ROLE OF DEALERS IN CARRYING OUT THE PROMOTIONAL PRACTICES FOR AGRICULTURAL EQUIPMENT IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 44

3 The role of dealers in carrying out the promotional practices for agricultural equipments was analysed and the results are presented in Table 1. Table1. Role of Dealers in Carrying Out the Promotional Practices for Agricultural Equipment Role of Dealers Strongly Agree Agree Neutral Disagree Strongly Disagree Total The dealers proved training to the customers about the usage of equipments. 156 ( ( ( ( (12.50 The dealers carry the field trails on equipments and machineries. 170 ( ( ( ( (10.00 The dealers advertise in local newspapers about the equipments 115 ( ( ( ( (8.75 The dealers advertise in local television networks. 14 ( ( ( ( (32.50 The dealers advertise on walls and buildings. 170 ( ( ( ( (5.75 The dealers prepare and stick the posters in important places. 105 ( ( ( ( (11.75 The dealers display the equipments in their show rooms. 100 ( ( ( ( (3.50 The dealers distribute phamlets and brouchers about equipments. 110 ( ( ( ( (10.00 The dealers provide sponsorships for local and IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 45

4 religious festivals. (11.00 (8.50 (19.25 (38.25 (23.00 The dealers deliver the equipments at free of cost. 120 ( ( ( ( (9.50 The dealers provides the installation services at free of cost. 104 ( ( ( ( (7.75 The dealers provide the price discounts. 100 ( ( ( ( (16.00 The dealers give promotional gifts. 118 ( ( ( ( (12.25 The dealers participate in trade fairs. 34 ( ( ( ( (30.50 The dealers arrange field demonstrations. 100 ( ( ( ( (13.50 The dealers offer trips and visits (6.75 (8.50 (19.00 (35.00 (30.75 The dealers disseminate the information to the customers about the equipments. 157 ( ( ( ( (7.50 The dealers offer the after sales services. 142 ( ( ( ( (7.50 The dealers proved the feedback of farmers to the manufacturers. 180 ( ( ( ( (9.75 Source: Primary Data Note: The figures in the parentheses are per cent to total IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 46

5 The results show that about per cent of the dealers of agricultural equipments are strongly agreed with the dealers provide training to the customers about the usage of equipments followed by agree (23.50 per cent, neutral (15.00 per cent, strongly disagree (12.50 per cent and disagree (10.00 per cent. The results indicate that about per cent of the dealers of agricultural equipments are strongly agreed with the dealers carry the field trials on equipments and machineries followed by agree (25.50 per cent, neutral (14.50 per cent, strongly disagree (10.00 per cent and disagree (7.50 per cent. It is very clear that about per cent of the dealers of agricultural equipments are strongly agreed with the dealers advertise in local newspapers about the equipments followed by agree and neutral (25.00 per cent, disagree (12.50 per cent and strongly disagree (8.75 per cent. It is observed that about per cent of the dealers of agricultural equipments are neutral with the dealers advertise in local television networks followed by strongly disagree (32.50 per cent, agree(13.00 per cent, disagree(11.00 per cent and strongly agree(3.50 per cent. It is apparent that about per cent of the dealers of agricultural equipments are strongly agreed with the dealers advertise on walls and buildings followed by agree (26.00 per cent, neutral (18.25 per cent, disagree (7.50 per cent and strongly disagree (5.75 per cent.the results show that about per cent of the dealers of agricultural equipments are agreed with the dealers prepare and stick the posters in important places followed by strongly agree (26.25 per cent, neutral (16.50 per cent, strongly disagree (11.75 per cent and disagree (8.00 per cent. The results indicate that about per cent of the dealers of agricultural equipments are agreed with the dealers display the equipments in their show rooms followed by strongly agree (25.00 per cent, neutral(19.50 per cent, disagree(19.25 per cent and strongly disagree(3.50 per cent. It is very clear that about per cent of the dealers of agricultural equipments are agreed with the dealers distribute pamphlets and brouchers about equipments followed by strongly agree (27.50 per cent, neutral (15.00 per cent, strongly disagree (10.00 per cent and disagree (8.50 per cent. It is observed that about per cent of the dealers of agricultural equipments are disagreed with the dealers provide sponsorships for local and religious festivals followed by strongly disagree (23.00 per cent, neutral (19.25 per cent, strongly agree (11.00 per cent and agree (8.50 per cent. It is apparent that about per cent of the dealers of agricultural equipments are agreed with the dealers deliver the equipments at free of cost followed by strongly agree (30.00 per cent, neutral (12.50 per cent, disagree (10.50 per cent and strongly disagree (9.50 per cent. The results show that about per cent of the dealers of agricultural equipments are agreed with the dealers provides the installation services at free of cost followed by neutral (29.25 per cent, agree (26.00 per cent, strongly disagree (7.75 per cent and disagree (6.25 per cent. The results indicate that about per cent of the dealers of agricultural equipments are strongly agreed with the dealers provide the price discounts followed by agree (22.75 per cent, neutral (18.75 per cent, disagree (17.50 per cent and strongly disagree (16.00 per cent. It is very clear that about per cent of the dealers of agricultural equipments are strongly agreed with the dealers give promotional gifts followed by agree (25.50 per cent, IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 47

6 neutral (20.25 per cent, disagree (12.50 per cent and strongly disagree (12.25 per cent. It is observed that about per cent of the dealers of agricultural equipments are strongly disagreed with the dealers participate in trade fairs followed by disagree (25.25 per cent, neutral (25.00 per cent, agree (10.75 per cent and strongly agree (8.50 per cent. The results indicate that about per cent of the dealers of agricultural equipments are strongly agreed with the dealers disseminate the information to the customers about the equipments followed by agree (30.75 per cent, neutral (12.50 per cent, disagree (10.00 per cent and strongly disagree (7.50 per cent. It is very clear that about per cent of the dealers of agricultural equipments are strongly agreed with the dealers offer the after sales services followed by agree (33.25 per cent, neutral (14.25 per cent, disagree (9.50 per cent and strongly disagree (7.50 per cent. It is observed that about per cent of the dealers of agricultural equipments are strongly disagreed with the dealers proved the feedback of farmers to the manufacturers followed by agree (28.75 per cent, neutral (10.00 per cent, strongly disagree (9.75 per cent and disagree (6.00 per cent. In order to examine the difference in role of dealers in carrying out the sales promotional practices for agricultural equipments, the Analysis of Variance is applied and the results are presented in Table.2. Table 2. Difference in Role of Dealers in Carrying Out the Promotional Practices for Agricultural Equipment. Source Degrees of Freedom SS MS F-Value Sig Between Groups Within Groups Total 7599 Source: Primary & Computed Data The F-value of is significant at one per cent level indicating that there is a significant difference in role of dealers in carrying out the promotional practices for agricultural equipments. Hence, the null hypothesis of there is no significant difference in role of dealers in carrying out the sales promotional practices for agricultural equipments is rejected. 3. FACTOR ANALYSIS FOR ROLE OF DEALERS IN CARRYING OUT THE PROMOTIONAL PRACTICES FOR AGRICULTURAL EQUIPMENTS In order to identify the factors determining the role of dealers in carrying out the promotional practices of agricultural equipments, the exploratory factor analysis has been employed. The principal component method of factor analysis was carried out with Eigen values greater than one through varimax rotation and the results obtained through rotated component matrix are presented in Table 3. IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 48

7 There are eight independent groups which are extracted accounting for a total of per cent of variations on 19 roles. The each of the eight factors contributes to per cent, 9.78 per cent, and 9.52 per cent, 9.33 per cent, 8.21 per cent, 8.13 per cent, 7.40 per cent and 7.19 per cent respectively. or-i: From the table, it is inferred that out of 19 roles, three roles have their high, relatively tightly grouped factor loadings on factor-i. This factor consists of: The dealers prepare and stick the posters in important places. (-0.71 The dealers display the equipments in their show rooms. (0.84 The dealers disseminate the information to the customers about the equipments.( Hence, this factor is named as INFORMATIN PROVIDER. or-ii: is formed with: The dealers advertise in local newspapers about the equipments(0.83 The dealers advertise in local television networks. (0.64 The dealers arrange field demonstrations. (0.79 These variables are named as ADVERTISING IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 49

8 Table3. or Analysis for the Choice of Promotional Practices of Agricultural Equipments by the Manufacturers Role of Dealers Rotated ors Loadings on or-i or-ii or- III or- IV or-v or- VI or- VII or- VIII The dealers proved training to the customers about the usage of equipments. The dealers carry the field trails on equipments and machineries The dealers advertise in local newspapers about the equipments The dealers advertise in local television networks The dealers advertise on walls and buildings..90 The dealers prepare and stick the posters in important places. The dealers display the equipments in their show rooms The dealers distribute phamlets and brouchers about equipments..58 The dealers provide sponsorships for local and religious festivals..78 The dealers deliver the equipments at free of cost..92 The dealers provides the installation services at free of cost..68 The dealers provide the price discounts The dealers give promotional gifts..78 IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 50

9 The dealers participate in trade fairs The dealers arrange field demonstrations..79 The dealers offer trips and visits The dealers disseminate the information to the customers about the equipments The dealers offer the after sales services. The dealers proved the feedback of farmers to the manufacturers Eigen Value % of Variance Cumulative % of Variance Cronbach s Alpha 0.79 Source: Primary & Computed Data Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. Rotation converged in 17 iterations. or-iii: This factor includes: The dealers distribute phamlets and brouchers about equipments.(0.58 The dealers provide sponsorships for local and religious festivals. (0.78 The dealers participate in trade fairs. (-0.66 These three variables are named as SOCIAL INTERACTION or-iv: This factor is formed with: The dealers advertise on walls and buildings. (0.90 The dealers offer trips and visits. (-0.60 This factor is named as OUTDOOR PROMOTION or-v: is formed with: The dealers offer the after sales services. (-0.60 The dealers proved the feedback of farmers to the manufacturers.(0.62 IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 51

10 These variables are named as SERVICE PROVIDER or-vi: This factor includes: The dealers proved training to the customers about the usage of equipments. (0.64 The dealers carry the field trails on equipments and machineries. (0.80 These two variables are named as DEMOSTRATION or-vii: This factor is formed with: The dealers deliver the equipments at free of cost. (0.92 The dealers provide the price discounts. (-0.58 This factor is named as INCENTIVES PROVIDER or-viii: This factor includes: The dealers provides the installation services at free of cost. (0.68 The dealers give promotional gifts. (0.78 These three variables are named as VALUE ADDITION The Cronbach s alpha of the scale was 0.79 indicating that each measure demonstrated acceptable internal consistency. It is inferred that information provider, advertising, social interaction, outdoor promotion, service provider, demonstration, incentives provider and value addition are the factors determining the role of dealers in carrying out the promotional practices of agricultural equipments. 4.INFLUENCE OF FACTORS DETERMINING THE ROLE OF DEALERS IN CARRYING OUT THE PROMOTIONAL PRACTICES OF AGRICULTURAL EQUIPMENTS ON ANNUAL SALES In order to study the influence of factors determining the role of dealers in carrying out the promotional practices of agricultural equipments on annual sales, the multiple regression has employed and the results are presented in Table 4. The factors derived through factor analysis are considered as independent variable and the annual sales of agricultural equipments are considered as dependent variable. The results indicate that the coefficient of multiple determination (R 2 is 0.68 and adjusted R 2 is 0.65 indicating the regression model is moderately fit. It is inferred that about per cent of the variation in dependent variable (Annual Sales is explained by the independent variables (ors Determining the Role of Dealers in Carrying Out the Promotional Practices of Agricultural Equipments. The F-value of is significant at one per cent level indicating that the regression model is good fit. IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 52

11 Table 4. Influence of ors Determining the Role of Dealers in Carrying Out the Promotional Practices of Agricultural Equipments on Annual Sales -Multiple Regression ors Affecting Loyalty Programmes Regression Coefficients t-value Sig Intercept ** Information Provider(X Advertising (X ** Social Interaction(X ** Outdoor Promotion (X Service Provider (X ** Demonstration(X ** Incentives Provider (X Value Addition(X ** R Adjusted R F N Source: Primary & Computed Data Note: ** Significance at one per cent level The results show that advertising, social interaction, service provider, demonstration and value addition are positively influencing the annual sales of agricultural equipments at one per cent level of significance. Therefore, the null hypothesis of there is no significant influence of factors determining the role of dealers in carrying out the promotional practices of agricultural equipments on annual sales is rejected. 5. PROBLEMS FACED BY THE DEALERS IN PROMOTING AGRICULTURAL EQUIPMENTS The problems faced by the dealers in promoting agricultural equipments were analysed and the results are presented in Table 5. IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 53

12 Table 5. Problems Faced By the Dealers in Promoting Agricultural Equipments Problems Total Score Mean Score Rank Low Size of Operational Holding VII More Number of Small Farmers IX Decreasing Importance of Agriculture X Non Availability of Credit Facilities VI Rural Illiteracy VIII Labour Density IV Inefficient Diffusion of Technology V Diversified Soil Types II Seasonal Usage of Equipments III Insufficient Irrigation I Source: Calculated from Primary Data The results show that insufficient irrigation, diversified soil types, seasonal usage of equipments, labour density, inefficient diffusion of technology, non availability of credit facilities, low size of operational holding, rural illiteracy, more number of small farmers and decreasing importance of agriculture are the problems faced by the dealers in promoting agricultural equipments in the order of importance. CONCLUSION The F-value of is significant at one per cent level indicating that there is a significant difference in role of dealers in carrying out the promotional practices for agricultural equipments. The exploratory factor analysis indicates that information provider, advertising, social interaction, outdoor promotion, service provider, demonstration, incentives provider and value addition are the factors determining the role of dealers in carrying out the promotional practices of agricultural equipments. The multiple regression analysis shows that advertising, social interaction, service provider, demonstration and value addition are positively influencing the annual sales of agricultural equipments at one per cent level of significance. The insufficient irrigation, diversified soil types, seasonal usage of equipments, labour density, inefficient diffusion of technology, non availability of credit facilities, low size of operational holding, rural illiteracy, more number of small farmers and decreasing importance of agriculture are the problems faced by the dealers in promoting agricultural equipments in the order of importance. The manufacturers have to join hands with the dealers in undertaking programmes to popularize the usage of agricultural equipments among farming community. The manufacturers have to provide hands on training to the dealers about technical details of the IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 54

13 equipment, sales training and also about after sales service of equipments. The after sales service is not given importance by the dealers and hence the manufacturers have to support the dealer in this regard financially and also technically. REFERENCES [1] Bridges, Eileen, Briesch, R.A., and Yim, C.K., (2006. Effects of Prior Brand Usage and Promotion on Consumer Promotional Response, Journal of Retailing, 82(4: [2] Low, G.S., and Mohr, J.J., (2000. Advertising vs. sales promotion: a brand management perspective, Journal of Product & BrandManagement, 9 (6: [3] Nowlis, S.M., and Simonson, I., (2000. Sales Promotions and the Choice Context as Competing Influences on Consumer Decision Making, Journal of Consumer Psychology, 9(1:1-16. [4] Shahriar Ansari Chaharsoughi(2011. The Affect of Sales Promotion on Consumer Interest to Purchase in IKCO Automotive Company, Journal of Knowledge Management, Economics and Information Technology, 4(1:1-17. [5] Singh, Gyanendra and D. De. (1999. Quantification of a Mechanization Indicator for Indian Agriculture, Applied Engineering in Agriculture, ASAE, 5(3: [6] Singh, Gyanendra. (2000. Modernization of Agricultural in India Part I Farm Mechanization, Agricultural Situation in India, 65(1: ] Singh, Gyanendra. (2002. Modernization of Agriculture in India (Part II Agro- Processing and Agribusiness, Agricultural Situation in India, 67(2: [8] Srinivasan, S. S. and Anderson, R. E., (2010. Concepts and Strategy Guidelines for Designing Value Enhancing Sales Promotions, Journal of Product & Brand Management, 7(5: [9] Sukhmani, Shaveta Gupta and Neha Kalra, (2012. Role of Promotion Mix in Mounting the Sales of Various FMCG Companies in Rural Markets, International Journal of Marketing, Financial Services and Management Research, 1(3: (10 Sivakumar. V. and Kaliyamoorthy. S.,(2013. ors Influencing the Choice of Promotional Practices Agricultural Equipment Manufacturers, IOSR Journal of Business and Management, Volume 12, Issue 5 (Jul. - Aug. 2013, PP IRJBM ( February Volume No II Global Wisdom Research Publications All Rights Reserved. 55