Marketing Management: A Project Report

MARKETING MANAGEMENT
A Project Report
Commodity: - Mango
Submitted by: -
Umar Faruque
Roll: - 11
MBA II Sem
Deptt. Of Business Administration
Gauhati University
INTRODUCTION & SUMARY
Mango is most important tropical fruit crop in the country and so also in the eastern region.
Planted area under mango has the national total of 24074 ha , and the area concentration is
mainly in the Tarai districts. Siraha and Saptari districts, on west of the Koshi river, are the main
commercial mango production districts in the country. The other three Tarai districts are on the
east of the Koshi river, viz., Sunsari, Morang and Jhapa, are the major commercial banana
growing area in the country.
OBJECTIVE
The main objective of the study is to study and understand the distribution channels of the
commodity, right from its inception to the end result when it is supplied to the consumers.
Area & Production
India ranks first among world’s mango producing countries accounting for about 50% of the
world’s mango production. Other major mango producing countries include China, Thailand,
Mexico, Pakistan, Philippines, Indonesia, Brazil, Nigeria and Egypt. India’s share is around 52%
of world production i.e. 12 million tonnes as against world’s production of 23 million tonnes
(2002-03).

An increasing trend has been observed in world mango production averaging 22 million metric
tonnes per year. Worldwide production is mostly concentrated in Asia, accounting for 75%
followed by South and Northern America with about 10% share.
State-wise Area, Production & Productivity

of Mangoes during 2001-02

State Area Production
(‘000 Ha.) (‘000 MT)
Andhra Pradesh 341.2 2445.8
Uttar Pradesh 253.0 1950.0
Maharashtra 164.4 559.0
Bihar 139.3 1253.5
Karnataka 115.4 1130.6
Tamil Nadu 110.8 438.7
Orissa 107.3 402.4
West Bengal 65.4 585.0
Gujarat 65.3 457.6
Others 213.7 797.6
TOTAL 1575.8 10020.2
Source : Database of National Horticulture Board, Ministry of Agriculture , Govt. of India.
Varieties Grown,
The choice of a commercial grower is mostly to Bombay green (earliest among the commercial
types, taste and flavor excellent), Malda (high demand in market, fruit quality excellent) and
Kalkatiya (late season harvest, good fruit yield, but low priced). In terms of taste and price of the
fruit, Bombay, Malda and Krishnabhog are varieties preferred for plantation by the farmers. The
major collection points for mango for supply to the distant consumption markets are Lahan and
Mirchaiya in Siraha, and Rupnagar and Shripur in Saptari. Lahan is by far the most important
collection market in the area; it receives mango collection from Siraha, Saptari and Udaypur
(Gaighat area) districts. Mirchaiya is amother important collection market receiving mango
supplies from Siraha, Udaypur (Katari area) and Sindhuli districts.
Economic Importance
The fruit is very popular with the masses due to its wide range of adaptability, high nutritive
value, richness in variety, delicious taste and excellent flavour. It is a rich source of vitamin A
and C. The fruit is consumed raw or ripe. Good mango varieties contain 20% of total soluble
sugars. The acid content of ripe desert fruit varies from 0.2 to 0.5 % and protein content is about
1 %.

Raw fruits of local varieties of mango trees are used for preparing various traditional products
like raw slices in brine, amchur, pickle, murabba, chutney, panhe (sharabat) etc. Presently, the
raw fruit of local varieties of mango are used for preparing pickle and raw slices in brine on
commercial scale while fruits of Alphonso variety are used for squash in coastal western zone.

The wood is used as timber, and dried twigs are used for religious purposes. The mango kernel
also contains about 8-10% good quality fat which can be used for saponification. Its starch is
used in confectionery industry.

Mango also has medicinal uses. The ripe fruit has fattening, diuretic and laxative properties. It
helps to increase digestive capacity.
Economics of Mango Cultivation

The orchard establishment of one Bigha (0.67 ha) in the very first year is estimated to cost the
farmer about Rs 19,000. Considering the common practice in the area, the only annual expense
of farmers on the established mango orchards is spay of insecticides to protect the fruits from
insect and pests. Even though inputs use in mango orchard is minimum, the return from the
orchard after 20 years of plantation averages Rs 65,000 per Bigha, much higher (reported by
farmers to be 5 times) compared to return from food grain crops. Besides, the shortage of labor
and unavailability of irrigation facility means that mango cultivation in the area is the best choice
for the farmers.
Marketing System & Distribution Channels
The functional organization of the value chain is sapling production by nursery farms, mango
production in orchards by the farmers, collection and transport of mango by the pre-harvest
contractors, and distribution in the consumption markets by the wholesale commission traders
and retailers. The main marketing channel for supply of mango from production area to the
consumption markets is:
orchard farmer – pre-harvest contractor – wholesale commission trader – retailer – consumer.
Harvesting and Assembly

Like in any other fruits, the pre-harvest contractors are the main assembling agents in the case
of mango. These traders conduct visits to the mango orchards of individual farmers, just after
the flowering season, and enter into contract by fixing lump-sum amount for purchase of all or
some of the trees (as per agreement) in the orchard, and pay some advancing money. The pre-
harvest contractors usually have their fixed trading partners, the wholesale commission traders,
in the consuming market centers (Kathmandu, Biratnagar, Pokhara, etc). The wholesale
commission traders finance the pre-harvest contractors for expenses in contracting the
orchards, including payment of advance money to the orchard owners. It is observed that the
financing by the wholesale trader is for booking of the supplies and that the financing is free of
interest.
Functions performed by the pre-harvest orchard contractors are:
 Negotiating and contracting of orchards from farmers

 Spraying of chemicals (insecticides) on the orchards, if farmers have not done so
 Post people to watch and ward the crop till maturity
 Harvest the fruit
 Arrange for wooden box and bamboo baskets, and other packing materials
 Packaging in wooden box, bamboo baskets
 Arrange tractor for transporting mango packings to the road-head load points, in case of
transport on bus top
 Arrange bus or truck for transportation to the consumption markets
Packaging
The most popular containers used for packing mangoes are wooden box and bamboo baskets.
Newspapers are used as lining material in the packages. Ventilated wooden boxes with paper
shavings in alternate layers as cushioning material have been reported to be ideal for long
distance transportation of mangoes.
Grading
Once the pre-harvest contractors collect mangoes from orchard and from the weekly haat, the
mangoes are graded according to size and variety before the consignments are booked to the
consuming centers. The fruits are shorted (selection of good ones) for packaging according to
variety. It was also reported that the poor grade fruits are packed separately, and marked as
KILL; these are to be sold at cheaper price.
Marketing Costs and Margins

Production of mango from the area is supplied to the distant consuming markets on bus top and
on truck load, and to the nearby market centers on bus top, on pick-up and on mini-Tata. Due to
excessive local tax and other payments on truck transportation, the pre-harvest contractors
prefer to use the bus tops or transportation of supplies to the consumption markets.
Orchard contract amount is usually only 50 percent of the mango collection cost at the orchard
level. Given that there is no system of group marketing, the orchard farmers are left with no
option but to accept the best bargain he can make with the pre-harvest contractors.
Processing
Mango is perhaps one of the most important fruit, which can be utilized by processing industry
during the different stages of its growth, development, maturity and ripening. Various processed
products can be prepared from both raw and ripe mangoes. Products from raw mango are:
dried mango slices (Aamil or Khatai), salted mango pickle, sweet mango chatney, etc. Similarly,
ripe mangoes can be utilized for preparation of slices, pulp, jam, squash, nectar, juice, mango
leather, etc.
At the household level, raw mangoes (in particular, the fallings from the seasonal storm) are
being traditionally utilized in the production of dried mango slices (aamil or khatai), salted pickle
and sweet-sour chatney (khatmithhi). About 50% of the fallen raw mangoes are utilized by the
villagers for preparing dried mango slices (locally called aamil), and only the rest 50% could be
collected by the orchard contractors which they sale locally or supply to distant consumption
markets. The dried mango slices prepared by the villager are sold in the local market (Rs 25 per
kg), or exchanged with salt (4 kg salt for 1 kg aamil). The salted pickles and sweet-sour chutney
prepared at the household level are for home consumption and distribution to the relatives as
gift.
At the Industrial level mango is processed into various end products. Some of the processed
products are mango pickles, fruit juice, Aamchur and the likes.
Fig: - A supply and distribution channel diagram of the fruit mango.
CONCLUSION
Thus we can observe from this report the various aspects of distribution channel of mango and
its marketing process.
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MARKETING MANAGEMENT

Deptt. Of Business Administration

Area & Production

State-wise Area, Production & Productivity

Economics of Mango Cultivation

orchard farmer – pre-harvest contractor – wholesale commission trader – retailer – consumer.

Harvesting and Assembly

Functions performed by the pre-harvest orchard contractors are:

 Negotiating and contracting of orchards from farmers

Marketing Costs and Margins

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