5.1 Marketing details of SHGs

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1 Marketing Problems of Self-Help Groups in Kerala Chapter 5 MARKETING PROBLEMS OF SELF-HELP GROUPS IN KERALA Contents 5.1 Marketing details of SHGs 5.2 Marketing problems of SHGs 5.3 Evaluation of agencies promoting marketing of the products of SHGs in Kerala 5.4 Conclusion This chapter analyses the marketing details of Self Help Group and marketing problems of SHGs in Kerala. 5.1 Marketing details of SHGs The marketing details analyse the marketing channels, sales promotion practices and pricing details of Self-Help groups in the following variables: 1) Nature of market 2) Channels of distribution opted in the domestic market 3) Methods of transportation used 4) Nature of problems in transportation 5) Nature of tasks assigned to sales people 6) Pricing method followed 7) Source of information about product District-wise Nature of Market The nature of market analyses the mode of demand for the products produced by the SHGs either continuously over the whole period without any 173

2 Chapter 5 interruptions or on a seasonal basis. The district-wise cross-tabulation of results obtained for the nature of market is presented below. District Table 5.1 District-wise nature of market Nature of market Seasonal Permanent Total Malappuram 11 (7.4) 138 (92.6) 149 Kottayam 0 (.0) 134 (100.0) 134 Kollam 4 (6.0) 63 (94.0) 67 Total 15 (4.3) 335 (95.7) 350 (Source: Field survey) Note: Figures in parenthesis represent percentage to total of respective rows. Table 5.1 reveals that, among the 350 respondents selected for the purpose of the study, 15 SHG members have a seasonal market, while the majority of the respondents have a permanent market. A district-wise analysis of the results suggests that in Malappuram district, 92.6 per cent of the respondents have a permanent market, while 7.4 per cent have only a seasonal market. In Kottayam district, all the respondents are found to have permanent market. In Kollam district, 94 per cent of the samples have a permanent market, while 6 per cent of them have a seasonal market Cross-Tabulation of Place of residence-wise nature of market Table 5.2 Place of residence-wise nature of market Place of residence Nature of market Seasonal Permanent Total Urban 13 (9.4) 125 (90.6) 138 Rural 2 (.9) 210 (99.1) 212 Total 15 (10.3) 335 (89.7) 350 (Source: Field survey) Note: Figures in parenthesis represent percentage to total of respective rows. 174

3 Marketing Problems of Self-Help Groups in Kerala Place of residence-wise analysis of the results as per table 5.2 suggests that in rural areas, 99.1 per cent of the respondents reported that they have a permanent market; while 0.9 per cent considered it as a seasonal market. Among the respondents in urban areas, 90.6 per cent of the respondents considered the market as permanent, while 9.4 per cent considered it a seasonal market Where they Sell the Products (Place of residence-wise) This enquiry is concerned with the markets where the products produced by Self-Help Groups are sold out. Based on this, the markets were divided into three categories: domestic market, foreign market and foreign and domestic market. Table 5.3 Where sell the products (Place of residence-wise) Place of residence Urban Rural Total Domestic market Where the products are sold Foreign market Domestic and foreign market (95.7) (.0) (4.3) (89.2) (.9) (9.9) (91.7) (.6) (7.7) Total (Source: Field survey) Note: Figures in parenthesis represent percentage to total of respective rows. The Place of residence-wise tabulation of the results reveals that among the 138 SHGs in urban areas, 95.7 per cent sold their products in the domestic market and, the rest 4.3 per cent, in domestic and foreign market. In the rural areas, 89.2 per cent sold their products in the domestic market, and 9.9 per cent in the domestic and foreign market. 175

4 Chapter Channels of Distribution opted in the domestic market (Place of residence-wise) consumer. The Place of residence-wise cross-tabulation of results obtained for the channels of distribution opted in the domestic market is presented below. Table 5.4 Channels of distribution opted in the domestic market (Place of residence-wise) Channels of distribution opted in the domestic market Place of residence Directly to consumer The channels of distribution opted in the domestic market are classified into four categories. They are: 1. Directly to consumers, 2. Wholesaler- Retailer-Consumer, 3. Retailer to consumer, and 4. Government agency to Wholesalerretailer to consumer Retailer to consumer Government agency to consumer Total Urban (81.9) (8.0) (3.6) (6.5) Rural (77.4) (3.3) (10.8) (8.5) 212 Total (79.1) (5.1) (8.0) (7.7) 350 (Source: Field survey) Note: Figures in parenthesis represent percentage to total of respective rows. It is seen from the Table that, among the samples considered from urban area for the purpose of the study, 81.9 per cent of channels of distribution in the domestic market were directly to the consumer; 8 per cent were from wholesalerretailer-consumer; 3.6 per cent were from the retailer to the consumer, and 6.5 per cent were from the government agency to the consumer. Among the samples considered from rural areas for the purpose of the study, 77.4 per cent of the respondents directly sell their products to the consumer; 3.3 per cent followed 176

5 Marketing Problems of Self-Help Groups in Kerala the wholesaler-retailer-consumer channel; 10.8 per cent followed the retailer to consumer channel and 8.5 per cent opted for government agency to consumer channel of distribution in the domestic market. It is observed that most of the Self- Help Groups are concentrated on direct marketing Cross-Tabulation of District-wise Methods of Transportation Used for Distribution of Products Proper storage and transportation to the market ensure quality and increase the sales volume. Here, an attempt is made to analyse the method of transportation opted by the SHGs for transporting products to the respective markets. Three items were given to them to express their opinion about the methods of transportation used to distribute the products, viz., Motor cycle, tractor and other vehicles. The majority of the respondents were of the opinion that transportation cost was the main cost which influenced the price of the product. The following Table shows the district-wise classification of SHG members based on the methods used for transportation of products. Table 5.5 District-wise methods of transportation used District Malappuram Kottayam Kollam Total Methods of transportation used for distribution of products Motor cycle Tractor Others (17.4) (.0) (82.6) (58.2) (.0) (41.8) (3.0) (4.5) (92.5) (30.3) (.9) (68.9) Total (Source: Field survey) Note: Figures in parenthesis represent percentage to total of respective rows. 177

6 Chapter 5 From the Table it is evident that the majority of the SHGs use other vehicles like auto rickshaw, jeep and mini vans as a means of transportation for marketing their products. Out of the 106 SHGs using motor cycles, 24.5 per cent were from Malappuram district, per cent from Kottayam district, and the rest 1.92 per cent from Kollam district. Out of the 241 SHGs using other vehicles, per cent were from Malappuram district, per cent from Kottayam district, and the rest per cent from Kollam district. Table 5.6 Place of residence-wise Methods of transportation used for the distribution of products Methods of transportation used for the Place of residence distribution of products Motor cycle Tractor Others Urban (38.4) (2.2) (59.4) Rural (25.0) (.0) (75.0) Total (30.3) (.9) (68.9) (Source: Field survey) Note: Figures in parenthesis represent percentage to total of respective rows. Total From the above Table it is clear that, among the 138 SHGs from urban areas, 59.4 per cent used other vehicles for transporting the products and 38.4 per cent used motor cycles for distribution of products. In the rural area, 75 per cent used other vehicles for transporting the products and 25 per cent used motor cycles for distribution of products Transportation problems All the sample respondents under survey were asked to describe the nature of problems in the transportation of the raw material and finished 178

7 Marketing Problems of Self-Help Groups in Kerala products. Four major problems were identified, viz., 1. No proper road to reach the market, 2. High cost of transportation, 3. Means of transportation not readily available, and 4. Lack of skilled drivers. The following Table gives the summary of the mean ranks obtained for the different transportation problems of SHGs as given by the sample. The mean ranks obtained from the survey data are presented below. Table 5.7 Mean Ranks Obtained for Nature of Problems in Transportation Transportation problems No proper road to reach the market High cost of transportation Means of transport not readily available Food processing Animal husbandry Dress material Agriculture Hotel & catering Furniture and other products Lack of skilled drivers To make the problem more clear, Friedman test was used to test the difference in preferences given by the SHGs. The hypotheses are: H0: There is no difference across the various SHGs for the four problems of transportation. H1: There is difference across the various SHGs for the four problems of transportation. 179

8 Chapter 5 The result of the test statistics is given below. Table 5.8 Test statistics (Friedman s Test) Food processing Animal husbandry Dress material Agriculture Hotel & catering Furniture and other products N Chi-Square df Asymp. Sig..000*.000*.000*.000*.000*.000* (Friedman s test) *Significant at 5 per cent level of significance As per this Table, the least mean in the mean rank matrix of food processing goes to high cost of transportation (mean rank 1.12). The selected respondents are asked to identify their transportation problems and the first ranked preferences should have the least mean. Therefore, high cost of transportation is the main transportation problem faced by the food processing SHGs. The mean rank matrix of animal husbandry goes to no proper road to reach the market and high cost of transportation (mean rank 1.91 and 1.95). Therefore the high cost of transportation and absence of proper road to reach the market are the main transportation problems faced by the animal husbandry SHGs. In the case of dress material, agriculture, hotel and catering, and furniture product making SHGs, high cost is seen to be the main transportation problem. Moreover, the mean rank variation among all the variables is statistically significant at 5 per cent level of significance, as the Friedman s 180

9 Marketing Problems of Self-Help Groups in Kerala Chi-square in all the cases is P=.000<.05, Hence the null hypothesis, that is, there is no difference among the various SHGs for the four problems of transportation, is rejected Agency undertaking the marketing of the products (Place of residence-wise) State and Central Government agencies and Non-Government agencies are providing technical, production as well as marketing support to Self-Help Group Members. The agencies undertaking marketing of products were broadly classified into three categories. They are 1. Government agencies, 2. NGOs, and 3. The group itself. The Place of residence-wise cross-tabulation of results obtained for the agencies undertaking marketing of the products is presented below. Table 5.9 Agency undertaking the marketing of the products (Place of residence-wise) Place of residence Who undertake the marketing of the products Government agency NGO Group itself Any others Total Urban Rural (19.6) (1.4) (79.0) (.0) (31.6) (2.4) (65.1) (.9) Total (26.9) (2.0) (70.6) (.6) (Source: Field survey) Note: Figures in parenthesis represent percentage to total of respective rows A place of residence-wise cross tabulation of agencies undertaking marketing of the products reveals that in urban areas, 79 per cent were of the view that the group itself undertook the marketing of the products and 19.6 per cent opined that the government agency helped to market the 181

10 Chapter 5 products; In rural areas, 65.1 per cent were of the view that the group itself undertook the marketing of the products, and 31.6 per cent opined that the government agency helped to market the products Cross-Tabulation of Place of residence-wise Number of sales people employed The analysis of sales people employed discusses the number of sales people employed from outside by the Self-Help Groups, in addition to other than the Group members. Table 5.10 Place of residence-wise No of sales people employed Place of residence Urban Rural No sales people No of sales people One Two Three Four or more (62.3) (14.5) (19.6) (.0) (3.6) (70.3) (15.6) (4.2) (3.8) (6.1) Total (67.1) (15.1) (10.3) (2.3) (5.1) (Source: Field survey) Note: Figures in parenthesis represent percentage to total of respective rows. Total The place of residence-wise details of the number of sales people employed reveal that in urban areas, 62.3 per cent had no sales people employed; 19.6 per cent viewed that the group employed two sales people; 14.5 per cent of the respondents revealed that they employed one sales person and 3.6 per cent employed more than four sales people. In rural areas, 70.3 per cent had no sales people employed in the Group; 15.6 per cent viewed that the group employed one sales person; 6.1 per cent of the respondents revealed that they employed more than four sales people and 4.2 per cent opined that they employed two sales people in order to sell the products. 182

11 5.1.9 Nature of Tasks assigned to Sales people Marketing Problems of Self-Help Groups in Kerala All the sample SHGs under survey were asked to describe the nature of tasks assigned to the sales people, because the sales people s performance is essential for increasing the sales volume of SHGs. Eight different tasks were identified, viz., sampling, grading, negotiation with the purchase staff, handling objections, locating prospects, display of products, fixation of price, and collection of sales proceeds. The following Table gives the summary of the mean ranks obtained for the different activities of SHGs as given by the sample. The mean ranks obtained from the survey data are presented below. Table 5.11 Mean Ranks Obtained for tasks assigned to sales people Task assigned Food processing Animal husbandry Dress materials Agriculture Hotel and catering Furniture and wood processing Sampling Grading Negotiation with the purchase staff Handling objections Locating prospects Display of products Fixation of price Collection of sales proceeds (Source: Primary data) 183

12 Chapter 5 The following Table gives the result of the test statistic. Table 5.12 Test Statistic (Friedman s Test) Food processing Animal husbandry Dress materials Agriculture Hotel/ catering Furniture/ wood processing N Chi-Square df Asymp. Sig..000*.000* *.000*.000* (Source: Primary data) *Significant at 5 per cent level of significance As per this Table, the least means in the mean rank matrix of food processing goes to locating prospects (mean rank 3.92) and display of products (mean rank 3.92). The selected respondents were asked to identify the tasks assigned to sales people, providing that the first-ranked preferences should have the least mean. The locating prospects and the display of products are found to be the main tasks assigned to the sales people by the food processing SHGs. Moreover, the mean rank variation among the variables is statistically significant at 5 per cent level of significance, as the Friedman s Chi-square is P=.000<.05; In the case of animal husbandry, display of products (3.66) and collection of sales proceeds (3.78) were the two important tasks assigned to sales people. Further, it is also observed that the mean rank variation among the variables is statistically valid with the significant value of Friedman s Chi-square at 5 per cent level of significance (Friedman s Chi-square is with P=.000<.05). 184

13 Marketing Problems of Self-Help Groups in Kerala Negotiation with the purchase staff (4.20), locating prospects (4.20), display of products (4.20) and collection of sales proceeds (4.20), are the equally important tasks assigned to sales people in Dress material units. The mean rank variation is tested with Friedman s Chi-square and it is found that the value of Friedman s Chi-square is statistically not significant at 5 per cent level of significance (Value of Friedman s Chi-square is with P=.051>.05) The mean score obtained by the samples reveals that locating prospects (2.50) is the important task assigned to sales people, in agriculture. The mean rank variation among the variables is statistically significant at 5 per cent level of significance, as the Friedman s Chi-square is with P=.000<.05; It reveals that locating prospects (3.40) and handling objections (3.91) are the two important tasks assigned to sales people, in the case of hotel and catering units. Further, it is also observed that the mean rank variation among the variables is statistically valid with the significant value of Friedman s Chi-square at 5 per cent level of significance (Friedman s Chi-square is with P=.000<.05). In the case of furniture and wood processing units, negotiation with the purchase staff (4.06), handling objections (4.06), locating prospects (4.06) and fixation of price (4.06) are the main tasks assigned to sales people. The mean rank variation is tested with Friedman s Chi-square and it is found that the value of Friedman s Chi-square is statistically not significant at 5 per cent level of significance (Value of Friedman s Chi-square is with P=.000<.05) Promotion Practices followed by SHGs All the sample SHGs under survey were asked to describe the promotion practices followed by the SHGs. Six broad categories of reasons were 185

14 Chapter 5 identified, viz., trade fair, exhibition, special events, stalls, souvenirs, and advertisement. The following Table gives the summary of frequency obtained by the different activities as given by the sample. The mean ranks obtained from the survey data are presented below. Table 5.13 Mean Ranks Obtained for Promotion Practices Followed by SHGs Promotion practices Food processing Animal husbandry Dress materials Agriculture Hotel/ catering Trade fair Exhibition Special events Stalls/Open market display Souvenir Advertisement The result of the test statistics is given below. Table 5.14 Test statistics (Friedman s Test) Food processing Animal husbandry Dress materials Agriculture Hotel/ catering N Chi-Square df Asymp. Sig..000*.000*.001*.000*.000* *Significant at 5 per cent level of significance As per this Table, the least means in the mean rank matrix of all the activities undertaken by the Self Help Groups, i.e., Food processing, Animal Husbandry, Dress material, Agriculture and Hotel/catering, is seen to be 186

15 Marketing Problems of Self-Help Groups in Kerala advertisement and souvenir. The selected respondents were asked to identify the promotional practices followed by their Self-Help Group and the first-ranked preferences should have the least mean. Therefore, the advertisement and souvenir are the main promotional activities followed by the entire sample SHGs. Moreover the mean rank variation of all the variables is statistically significant at 5 per cent level of significance, as the Friedman s Chi-square in the case of Food processing, Animal Husbandry, Dress material, Agriculture and Hotel/catering is , , , , and respectively, with P=.000<.05; Pricing method followed by Self-Help Groups The pricing methods followed may fall into three categories, viz., Fixed amount per unit, Variable cost on production cost, and Variable cost on marketing condition. The following Table gives the summary of activity-wise classification of pricing methods followed by the Self-Help Groups. Table 5.15 Activity-wise Pricing method followed by SHGs Activity undertaken Fixed amount per unit Pricing method followed Variable on production cost Variable on market condition Total Food processing 33 (31.4) 57 (54.3) 15 (14.3) 105 Animal husbandry 24 (36.9) 18 (27.7) 23 (35.4) 65 Fisheries 4 (40.0) 1 (10.0) 5 (50.0) 10 Agriculture 0 (.0) 2 (13.3) 13 (86.7) 15 Hotel/catering 6 (8.6) 64 (91.4) 0 (.0) 70 Furniture/wood processing 10 (62.5) 6 (37.5) 0 (.0) 16 Other products 34 (49.3) 35 (50.7) 0 (.0) 69 Total 111 (31.7) 183 (52.3) 56 (16.0) 350 (Source: Primary data) Note: Figures in parenthesis represent percentage to total of respective rows. 187

16 Chapter 5 It is seen from the Table that, from among the 350 samples considered for the purpose of the study, 52.3 per cent of the SHGs followed the price variable on production cost as the method of pricing; 31.7 per cent of the SHGs followed fixed amount per unit, and the rest 16 per cent followed price variable on market condition as the method of pricing. The activity-wise analysis reveals that most of the food processing, hotel & catering and other product making SHGs followed price variable on production as the method of pricing; fisheries and agricultural units followed pricing variable on market condition; animal husbandry and furniture & wood processing units followed fixed amount per unit as the method of pricing Factors influencing Pricing of the products The market factors influenced by pricing of the products are classified into three broad categories, viz., quality of the product, demand and supply condition, and middlemen influence. The following Table gives the summary of frequency obtained by the different activities as given by the sample. The mean ranks obtained from the survey data are presented below. Table 5.16 Mean ranks for the Market factors influencing the price of products Food processing Animal husbandry Dress materials Agriculture Hotel/ catering Furniture & wooden products Quality of the produce Demand and supply condition Middlemen influence Others

17 Marketing Problems of Self-Help Groups in Kerala Table 5.17 Test Statistic (Friedman s Test) Food processing Animal husbandry Dress materials Agriculture Hotel/ catering Furniture & wooden products N Chi Square df Asymp. Sig..000*.000*.000*.000*.000*.000* *Significant at 5 per cent level of significance As per this Table, the least mean in the mean rank matrix of all the activities undertaken by the Self-Help Groups, i.e. Animal Husbandry, Dress material, Hotel/catering and furniture and wooden products, is seen to be that of the demand and supply condition, except in the case of food processing and agricultural units. The least mean rank matrix of food processing is quality of the product and in the case of agriculture, it is middlemen influence. The selected respondents were asked to identify the market factors that influenced the price of the product and the first ranked preferences should have the least mean. Therefore, demand and supply condition is the main market factor that influences the price of the products of most of the Self-Help Group units. Moreover the mean rank variation among all the variables is statistically significant at 5 per cent level of significance, as the Friedman s Chi-square in the case of Food processing, Animal Husbandry, Dress material, Agriculture, Hotel/catering and furniture and wooden products is , , , , and respectively, with P=.000<.05; 189

18 Chapter Opinion on current Price of the products The opinions of respondents on current price of the products were categorized into four, viz., better than earlier, bad, no response, and good. The activity-wise cross-tabulation of results obtained is presented below. Table 5.18 Activity-wise distribution of current price of the products Opinion on current price of products Better than earlier Bad No response Good Total Activity undertaken Food processing 45 (42.9) 33 (31.4) 7 (6.7) 20 (19.0) 105 Animal husbandry 9 (13.8) 54 (83.1) 2 (3.1) 0 (.0) 65 Fisheries 0 (.0) 7 (70.0) 3 (30.0) 0 (.0) 10 Agriculture 0 (.0) 8 (53.3) 5 (33.3) 2 (13.3) 15 Hotel/catering 24 (34.3) 43 (61.4) 3 (4.3) 0 (.0) 70 Furniture/wood processing 5 (31.3) 7 (43.8) 4 (25.0) 0 (.0) 16 Other products 23 (33.3) 14 (20.3) 12 (17.4) 20 (29.0) 69 Total 106 (30.3) 166 (47.4) 36 (10.3) 42 (12.0) 350 (Source: Primary data) Note: Figures in parenthesis represent percentage to total of respective rows. The above Table reveals that the majority of the respondents (47.4 per cent) viewed the current price of the product was bad. In the case of all the categories of activities undertaken by the Self-Help Groups, the majority opined that the current price of the product was bad except in the case of food processing units, where the current price followed by the food processing unit was reported better than the earlier Source of Information about prices Five broad categories of sources of information about prices were identified, viz., information received from customers, middlemen and agents, 190

19 Marketing Problems of Self-Help Groups in Kerala other entrepreneurs, related periodicals and government publications and agencies. The following Table gives the summary of frequency obtained by the different activities as given by the sample. Table 5.19 Mean Ranks for the source of information about the prices Food processing Animal husbandry Dress materials Agriculture Hotel/ catering Furniture & wooden products Customers Middlemen and agents Other entrepreneurs Related periodicals Govt. publications/ agencies Table 5.20 Test Statistics (Friedman s Test) Food processing Animal husbandry Dress materials Agriculture Hotel/ catering Furniture & wooden products N Chi-Square df Asymp. Sig..000*.000*.000*.000*.000*.000* (Friedman Test) *Significant at 5 per cent level of significance Table 5.20 reveals that the least means in the mean rank matrix of food processing goes to information from the customers (mean rank 2.04). Here, the first ranked preference should have the least mean. Therefore, the information from customers is the main source of information about the price in the case of 191

20 Chapter 5 food processing Self-Help Groups. Moreover the mean rank variation among the variables is statistically significant at 5 per cent level of significance, as the Friedman s Chi-square is with P=.000<.05; The mean scores of all other units, viz., animal husbandry (1.46), dress materials (1.50), agriculture (1.43), hotel and catering (1.34), furniture and wooden products (1.13), other entrepreneurs is the main source of information about the price of products. The mean rank variation is tested with Friedman s Chi-square and it is found that the value of Friedman s Chi-square is statistically significant at 5 per cent level of significance (Value of Friedman s Chi-square is , , , , with P=.051>.05). 5.2 Marketing problems of SHGs The marketing problems of Self-Help Groups in Kerala are analysed with regard to five aspects, viz., price, advertising, transportation, storage and grading, and export. These problems were identified through preliminary discussions with selected officials and experts in this field. In marketing SHG products, the common problem is advertisement. The cost of advertisement is so high that the poor Self-Help Group members can t advertise their products. Thus, marketing becomes a major problem for SHGs. Lack of own transportation is a major hindrance to widening of physical flows. The SHGs are also ignorant about the technologies in processing. Lack of storage facility is yet another problem in marketing SHG products. The problems were stated through relevant statements under the five major heads considered. The members were asked to indicate their responses on a five-point scale, ranging from 1 for strongly disagree to 5 for strongly agree. The higher the score, the higher will be the problem in practice. 192

21 Marketing Problems of Self-Help Groups in Kerala Analysis of Marketing Problems The three districts and activities undertaken by SHG members considered for the study provide the following summarized information on the five variables considered for the analysis of marketing problems of SHGs. Table 5.21 District-wise distribution of mean scores obtained for the various problems in Marketing Dependent Variable Price Advertising Transportation Storage and grading Export District Mean Std. Error 95% Confidence Interval Lower Bound Upper Bound Malappuram Kottayam Kollam Malappuram Kottayam Kollam Malappuram Kottayam Kollam Malappuram Kottayam Kollam Malappuram Kottayam Kollam

22 Chapter 5 Table 5.22 Distribution of means based on various activities undertaken Dependent Variable Price Advertising Transportation Storage and Grading Export Activity undertaken Mean 95% Confidence Std. Interval Error Lower Upper Bound Bound Food processing Animal husbandry Fisheries Agriculture Hotel/catering Furniture/wood processing Other products Food processing Animal husbandry Fisheries Agriculture Hotel/catering Furniture/wood processing Other products Food processing Animal husbandry Fisheries Agriculture Hotel/catering Furniture/wood processing Other products Food processing Animal husbandry Fisheries Agriculture Hotel/catering Furniture/wood processing Other products Food processing Animal husbandry Fisheries Agriculture Hotel/catering Furniture/wood processing Other products

23 Marketing Problems of Self-Help Groups in Kerala As per the estimated Marginal Mean Table, it is observed that the marketing problems of SHGs related to Price, transportation and export problems are very high in Kollam district; advertising problems of SHG are high in Malappuram district; storage and grading problems of SHGs are high in Kottayam district. Similarly, problems related to pricing, advertising and transportation are very high among Furniture and wood processing Self-Help Groups; Storage and grading problems are crucial among agricultural units; export-related problems are very high among other units. The mean score variations of the responses towards these problems are statistically significant among the different activities undertaken. However, these variables are related among themselves. Possibly, when the five related variables are taken as a bundle, there may be difference in their mean values among the different activities. The MANOVA model is applied for testing the mean score variation for these five problems taken as a bundle among the classes considered. The hypotheses to be considered will be: H0: There is no variation in the means of the sets of variables describing marketing problems across the three districts. H1: There is variation in the means of the sets of variables describing marketing problems across the three districts. H0: There is no variation in the means of the sets of variables describing marketing problems across the different activities undertaken by the SHGs. H1: There is variation in the means of the sets of variables describing marketing problems across the different activities undertaken by the SHGs. 195

24 Chapter 5 The output derived from MANOVA provides the results of both multivariate and univariate analyses of variance as given below. Table 5.23 Multivariate Tests based on Districts and activities undertaken Intercept Activity undertaken Districts Effect Value F Hypothesis df Error df Sig. Pillai's Trace * Wilks' Lambda * Hotelling's Trace * Roy's Largest Root * Pillai's Trace * Wilks' Lambda * Hotelling's Trace * Roy's Largest Root * Pillai's Trace * Wilks' Lambda * Hotelling's Trace * Roy's Largest Root * 196

25 Marketing Problems of Self-Help Groups in Kerala Table 5.24 Tests of Between-Subjects Effects on the basis of district and activities Source Dependent Variable Type I Sum of Squares df Mean Square Price * Advertising * Activity Transportation * undertaken Storage and grading * export * Price * Advertising * District Transportation * Storage and grading * export * Price Advertising Error Transportation Storage and grading export Price Advertising Total Transportation Storage and grading export *Significant at 5 per cent level of significance In the MANOVA model, Pillai s Trace is statistically significant at 5 per cent level of significance. Therefore, it may be concluded that these marketing problems are very high among the SHGs in Kollam district, especially among the SHGs who undertake the activity of food processing and wooden product making; these can be validated statistically by the F values in the MANOVA model. F Sig. 197

26 Chapter 5 Table 5.25 Group Statistics for Marketing Problems Activity undertaken Price Advertising Transportation Storage and grading Export Food processing Animal husbandry Fisheries Dress material Mean N Std.Deviation Mean N Std.Deviation Mean N Std.Deviation Agriculture Mean N Hotel/ Catering Furniture/ wood processing Other products Std.Deviation Mean N Std.Deviation Mean N Std.Deviation Mean N Std.Deviation Total Mean N (Source: Primary data) Std.Deviation

27 Marketing Problems of Self-Help Groups in Kerala From the Table, it is clear that furniture and wood processing units have more of price-related, advertising and transport-related issues; storage and grading issues are seen to be high in agriculture and hotel/catering units. Export-related problems are high in dress material and other products. From this, it may seen that furniture and wood processing has more marketing problems. Price* Activity undertaken The results of the One-way ANOVA are depicted in the following Table. Advertising* activity undertaken Transportation* activity undertaken Storage and grading* activity undertaken Export* activity undertaken Table 5.26 Results of One-way ANOVA Sum of Squares df Mean Square Between Groups F Sig. Within Groups * Total Between Groups Within Groups Total Between Groups Within Groups * Total Between Groups Within Groups Total Between Groups Within Groups * Total (Source; Primary data) *Significant at 5 per cent level of significance 199

28 Chapter 5 To test the statistical significance of difference in the mean scores for the marketing-related problems, One-way ANOVA was used to test the hypotheses: 1. Pricing Problems H 0 : There is no difference in the mean scores obtained for problems related to pricing. H 1 : There is difference in the mean scores obtained for problems related to pricing. Based on the mean scores of the responses of selected SHGs, on pricerelated problems, SHGs that produce and market the products of furniture and wood processing faced their problems more seriously than any other category of SHGs. The mean score variation of furniture and wood processing ( ) is statistically significant at 5 per cent level of significance. (Value of F with P=0.000<.05). Hence, the null hypothesis is rejected. Thus, it can be concluded that there is difference in the mean scores obtained for technology-related production problems. 2. Advertising Problems H0: There is no difference in the mean scores obtained for problems related to advertising. H1: There is difference in the mean scores obtained for problems related to advertising. The SHGs that produce and market the products of furniture and wood processing and food processing faced their advertising-related marketing problems more seriously than any other category of SHGs, based on the mean scores of SGHs. It is also observed that the mean variations of furniture and 200

29 Marketing Problems of Self-Help Groups in Kerala wood processing ( ) and food processing ( ) are statistically not significant at 5 per cent level of significance. (Value of F with P=0.075>.05). Hence, the null hypothesis is accepted. This implies that there is no difference in the mean scores obtained for the advertising-related marketing problems, which means that the advertising problem has equal importance in the different types of activities undertaken by the SHGs. 3. Transportation Problems H0: There is no difference in the mean scores obtained for problems related to transportation. H1: There is difference in the mean scores obtained for problems related to transportation. Regarding transporting-related problems, SHGs that produce and market the products of furniture and wood processing and animal husbandry faced their problems more seriously, than any other category of SHGs. The mean rank variation is tested with one way ANOVA and it is found that the value of F is statistically significant at 5 per cent level of significance. (Value of F with P=0.001<.05). Hence, the null hypothesis is rejected. Thus, it can be concluded that there is difference in the mean scores obtained for transportation-related marketing problems. 4. Storage and Grading Problems H0: There is no difference in the mean scores obtained for problems related to storage and grading. H1: There is difference in the mean scores obtained for problems related to storage and grading. 201

30 Chapter 5 The mean scores of the responses of selected SHGs, on storage and grading-related problems reveal that the SHGs that produce and marketed the products of agriculture and hotel and catering faced their problems more seriously than any other category of SHGs. The highest mean scores were obtained for agriculture ( ) and hotel and catering ( ) and the mean score variation was found statistically not significant at 5 per cent level of significance. (Value of F with P=0.173>.005). Hence, the null hypothesis is accepted. This implies that there is no difference in the mean scores obtained for the storage and grading problems, which means that the storage and grading problems had equal importance in the different types of activities undertaken by the SHGs. 5. Export Related Problems H0: There is no difference in the mean scores obtained for problems related to export. H1: There is difference in the mean scores obtained for problems related to export. Based on the mean scores of the responses of selected SHGs, on export-related problems, the SHGs that produced and marketed the other products and fisheries faced their problems more seriously than any other category of SHGs. Further, it is also observed that the mean score variation for other products and fisheries are valid with the significant value of F at 5 per cent level of significance. (Value of F with P=0.000<.005). Hence, the null hypothesis is rejected. Thus, it can be concluded that there is difference in the mean scores obtained for export-related marketing problems. 202

31 Marketing Problems of Self-Help Groups in Kerala Discriminant Analysis In order to identify the most dominant problem, by place of residence selected, a Discriminant Analysis was attempted by considering urban and rural areas at a time. Hence, it was decided to discriminate between urban and rural area to locate the most important discriminating variable in each place of residence compared to the others. The results of the tests of equality of group means are given below. Table 5.27 Tests of Equality of Group Means Based on the Problems in Marketing Problems of Wilks' Lambda F df1 df2 Sig. Price Advertising * Transportation Storage and grading Export * (Source: Primary data) *Significant at 5 per cent level of significance The Table is interpreted based on two tests, Wilk s Lambda and F- test. The smaller the Wilk s Lambda, the more important the variable to the Discriminant function. The significance of Wilk s Lambda is tested through F-test. Here, the Wilk s Lambda is found to be significant only for the variables Advertising and Export. The more important variable for this Discriminant Function is Advertisement, which has the lowest Wilk s Lambda value. 203

32 Chapter Discriminant Analysis between urban and rural areas The results of the Discriminant Analysis between rural and urban areas are given below. The first step in Discriminant Analysis is to check the validity of the Discriminant Function between rural and urban areas. The hypotheses to check the validity are: H0: The Discriminant function for the problems of marketing between rural and urban areas is not valid. H1: The Discriminant function for the problems of marketing between rural and urban areas is valid. The following Tables show the results to check the validity of this Discriminant Function. Table 5.28 Table Showing Eigen Values Explained by the Function Function Eigenvalue % of Variance Cumulative % Canonical Correlation (Source: Primary data) Table 5.29 Table showing Wilk s Lambda to Test the Discriminant Function Test of Function(s) Wilks' Lambda Chi-square df Sig * (Source: Primary data) *Significant at 5 per cent level of significance From the above Tables, it is evident that the Discriminant function between rural and urban areas is valid at 5 per cent level with a canonical correlation of 0.285, providing a χ2 value of with p=.000<0.05. The classification results of the Discriminant function provide the following values as given below in the Table. 204

33 Marketing Problems of Self-Help Groups in Kerala Urban Rural Total Table 5.30 Classification Results of the Discriminant Function Place of Residence Mean Std. Deviation Valid N (listwise) Unweighted Weighted Price Advertising Transportation Storage and grading Export Price Advertising Transportation Storage and grading Export Price Advertising Transportation Storage and grading Export Table 5.31 Functions at Group Centroids Place of residence Function 1 Urban Rural.239 Unstandardized canonical discriminant functions evaluated at group means From the Table it is seen that, the urban area is placed to the left of the rural area with a centroid value of The centroid for the rural area is Thus the variables with negative coefficients are expected to be dominant in the urban area, and variables with positive coefficients are related to the rural area. Standardized canonical Discriminant function coefficients are used to compare the relative importance of the variables for the two groups. 205

34 Chapter 5 The following Table gives the results of standardized canonical Discriminant function coefficients. Table 5.32 Standardised Canonical Discriminant Function Coefficients Function 1 Price Advertising.851 Transportation Storage and grading Export.438 From the Table, it can be seen that the variables with negative coefficients are price-related, transportation related and storage and grading-related problems. So, the variables considered to be important for rural areas are price-related, transportation-related and storage and grading-related problems. The other variables are important for rural areas. Further, from the structure matrix that contains the structure coefficients to show the relative importance of the discriminating variables by total correlation, the important variable that discriminate between urban and rural areas can be ascertained. Table 5.33 Structure Matrix Function 1 Advertising.668 Export.395 Transportation Price Storage and grading From the Table, the most important variable with the highest degree of positive correlation is Advertising and the variable with negative correlation 206

35 Marketing Problems of Self-Help Groups in Kerala is Transportation. Thus, it can be concluded that advertising-related problems is the variable that discriminates between rural areas from urban areas; transportation-related problems is the important variable discriminating urban areas from rural areas. 5.3 Evaluation of agencies promoting marketing of the products of SHGs in Kerala This area analyzes the functioning of agencies supporting marketing of the products of Self-Help Groups in Kerala. Fifteen items representing the marketing support provided by agencies were given to respondents to assess their opinions on the statements on a seven-point scale. The following Table shows the distribution of SHG members based on their ratings about the functioning of agencies supporting marketing Factor Analysis Here, the Factor Analysis is performed on the 15 variables to reduce the variables into correlated components or factors. The analysis output is viewed after validating the variables using the communalities. 207

36 Chapter 5 Table 5.34 Communalities Extracted for the Evaluation of Agencies in Connection with Marketing Initial Extraction Support during market initialization Regulation of prices Monitoring and periodic assessment by agencies Helps in finding markets Popularizing the products Help in export trade Help in transportation Constitution of markets/stalls Helps to create value-added products Checking exploitation by middlemen Marketing through co-operatives Training given to develop marketing strategy Financial support through subsidies Intervention of agencies during diseases Solution to common marketing problems Extraction Method: Principal Component Analysis. Since all communalities are fairly large (greater than.580), it is supposed to be a good set of variables. The Principal Components Extraction followed by varimax rotation is reported in the following Table. Table 5.35 Total Variance Explained on the Variables for the Evaluation of Agencies in Connection with Marketing Component 208 Total Initial Eigen values % of Variance Cumulative % Extraction Sums of Squared Loadings % of Cumulative Total Variance % Extraction Method: Principal Component Analysis.