Marketing Arrangements Research Articles

K-means clustering for profiling the rural women entrepreneurs in India

Women entrepreneur has been recognised during the last decade as an important untapped source of economic growth. Challenges in the path of women entrepreneurs are lack of skills and training, lack of confidence, problems of long term and short term finance, socio-cultural barriers, production problems and inefficient marketing arrangements. There are many women running successfully irrespective of the above said problem. So this research helps to identify the various types of Indian rural women entrepreneurs based the business success attributes. After reviewing the literature of women entrepreneurs, we performed a segmentation analysis of rural women entrepreneurs in India. First, a hierarchical cluster analysis was carried out, and then K-means cluster analysis identified three meaningfully differentiated rural women entrepreneurs' groups. Further, a classification tree analysis was performed to identify the attributes that differentiated the clustered groups. Finally, three clusters of Indian rural women entrepreneurs namely: relationship oriented entrepreneurs, multitalented entrepreneurs and experienced entrepreneurs are identified.

Bundling and Joint Marketing by Rival Firms

We study joint marketing arrangements by competing firms who engage in price discrimination between consumers who patronize only one firm (single purchasing) and those who purchase from both competitors (bundle purchasers). Two types of joint marketing are considered. Firms either commit to a component-price that applies to bundle-purchasers and then firms set stand-alone prices for single purchasers; or firms commit to a rebate off their stand alone price that will be applied to bundle-purchasers, and then firms set their stand alone prices. Both methods allow firms to raise prices and earn higher profits. However, the effect of price discrimination on social welfare depends on how prices are chosen. The rebate joint marketing scheme increases joint purchasing, whereas bundle pricing diminishes bundle purchases. If the marginal social value of a bundle over a single purchase is large, the former increases total welfare. However, welfare can also increase with bundle pricing compared to non-discriminatory pricing.

Analysis of Local Rice Marketing: A Case Study of Tono Irrigation Project

This study investigated the marketing arrangements, the marketing strategies and the marketing constraints on rice production in Tono Irrigation Project. The key findings of this study revealed that farmers in practice do not have a comprehensive marketing strategies with regards to the timing of sales even though they are much aware of price movement and sales are made purely based on cash needs of farmers. The major key players within the market chain in the area are rice traders, processors, market retailers and Tono Processing Plant. The principal constraints identified by farmers in the area are low prices during glut, inadequate milling facilities, lack of credit/funds to support farmers during storage in anticipation of high prices, and lack of tarpaulins to be used for threshing. Low prices during glut were ranked first; lack of credit/funds to support farmers during storage in anticipation of high prices second; lack of tarpaulins to be used for threshing third; inadequate milling facilities fourth in order of importance. The Kendall’s Coefficient of Concordance, w was employed to assess the degree of agreement of rankings by the farmers and it was found out to be 0.57 which is significant at 1%.

Committed Procurement in Privately Negotiated Markets: Evidence from Laboratory Markets

AbstractPrevious research suggests an increase in committed procurement can result in lower cash market prices for livestock. There is a paucity of research that ascertains prices received by market agents trading in a prior bargaining session via alternative marketing arrangements versus those who have not. We use laboratory market experiments to analyze the potential impacts of committed procurement on privately negotiated transactions when some traders have two windows of negotiation and others have one. Results illustrate that those who do not engage in prior trading are at a bargaining disadvantage due to matching and inventory loss risks.

A Comparative Value Chain Analysis of Smallholder Burley Tobacco Production in Malawi - 2003/4 and 2009/10

Smallholders grow the majority of M alawi's main export crop – burley tobacco. We analyse this value chain segment for the 2003/4 and 2009/10 seasons. The comparison shows smallholder profits in 2003/4 were limited by two main factors: a cartel of leaf merchants at auction and inefficient marketing arrangements. In 2009/10, there was greater competition at auction, improvements in marketing, tighter state regulation (including minimum prices) and much more contract farming. The paper concludes by reflecting on aspects of the political economy of the tobacco industry at national and global levels.

Competition in the US Meatpacking Industry

This article reviews and evaluates the recent literature on competition in the US meatpacking industry. Studies on market power in meatpacking indicate that concentration in procurement of livestock (cattle or hogs) has not adversely affected prices received by producers or prices paid by consumers. Indeed, there is evidence that producers may be better off because of lower processing costs due to the concentration and introduction of new technical innovations. Policies to restrict alternative marketing arrangements such as those proposed by GIPSA would make producers and consumers worse off. The beef and pork industries are quite complex and contain both spatial and temporal dimensions that can affect the level of competition. Fringe producers because of locational shift of industry and thin markets may be worse off. Establishment of niche enterprises may benefit these producers. In the future, incentives are to maintain steady long-run supplies of livestock to fully operate slaughtering and processing facilities.

Re-Building a Damaged Corporate Reputation: How the Australian Wheat Board (AWB) Overcame the Damage of the UN ‘Oil For Food’ Scandal to Successfully Reintegrate into the Australian Wheat Marketing Regulatory Regime

Purpose: The focus of much of the crisis communication and reputation management research is on the impact of a crisis and how organizations immediately respond. There has been less work in the area of post-crisis responses and, in particular, how organizations can successfully recover from the damage of a scandal. Design/Methodology: As the Government Relations and Trade Advocacy Manager and then National Regulatory Affairs Manager, the author was a member of the new management team that successfully reformed the governance of Australian Wheat Board (AWB) Limited to rebuild credibility with key stakeholders so that AWB could continue trading and successfully reintegrate into the regulatory regime. Findings: After initially mismanaging its response, AWB was ultimately able to rebuild trust with the regulator and be accredited with a licence as an approved exporter, only 2 years after the damaging findings of a Royal Commission. This was because the company undertook genuine reform and successfully changed its culture, systems, structure and governance. Research: Building on the initial analysis of AWB and the United Nations ‘Oil-for-food’ scandal and the research on crisis communication, the paper examines the post-scandal response by the company and re-examines the steps taken to transform the company through change and reform. Practical implications: The AWB case study provides a useful example of how a company damaged by a scandal was able to regain lost credibility and rebuild its reputation to the extent that it was able to reintegrate itself with key stakeholders, including those who were themselves damaged by the AWB scandal. Original value of the paper: The AWB case has been researched as a clear example of governance failure but most of the literature covers the period up until the new wheat marketing arrangements were introduced and there has been little analysis of what the company was required to do in response to those changes, and the results of those actions.

Indian Vegetables: Production Trends, Marketing Efficiency and Export Competitiveness

India is the second largest producer of fruits and vegetables in the world next only to China. Horticulture de-velopment is currently constrained by poor marketing arrangements. The gap between prices received by the farmers and those paid by urban consumers is large, reflecting inefficient marketing arrangements. The huge production base offers India immense opportunities for export.This study estimates production trends, market efficiency and export competitiveness of vegetables in India and suggest measures to improve production, marketing and exports of Indian vegetables. The study was conducted India as whole for production and export competitiveness and for marketing efficiency in the 8 states of Indiacovering 20 crops. The study found that area under total vegetables cultivation is grown at the rate of 4.12% and production growth rates was 6.48%. Indian vegetables production depicted glorious past and expected promising future. The most common marketing channel for majority of the crops is that Producer-Wholesaler-Retailer-Consumer. The resultsfurther showed that the producer share in consumer rupee was highest in Punjab, Tamil Nadu and Manipur compared to Andhra Pradesh, West Bengal and Rajasthan. It varies from 46% to 74% in Andhra Pradesh, 26% to 60% in West Bengal, 33% to 60% in Rajasthan, 85% to 88% in Manipur 91% to 95% in Tamil Nadu and 100% in Punjab. The study clearly shows that majority of the horticultural commodity markets are operating efficiently. The highest marketing efficiency found to be producer to consumer channel. Hence, government policies should promote direct marketing models for efficient horticultural marketing. The results showed that in most of the commodity cases marketing cost, marketing margin, transport cost, labour charges are adversely affecting marketing efficiency and open market price, volume of the produce handled and net price received are increasing marketing efficiency.The trends of fresh vegetables show that its export quantity increased 18.3% and 22.2% during two periods respectively. The results show that Indian vegetables are huge potential for exports.The results show that for all vegetables the Nominal Protection Coefficient is lessthan 1 indicating they are competitive in the international markets. The study suggests that Indian government should give priority to vegetable production, processing and exports.

Marketing Efficiency of India's Horticultural Commodities under Different Supply Chains

India's horticulture sector is growing and playing a vital role in the continent's agricultural economy. India is the second largest producer of fruit and vegetables globally, but horticultural development is currently constrained by poor marketing. The gap between prices received by farmers and those paid by consumers is large, reflecting inefficient marketing arrangements. This study estimates the market costs, market margins, price spread, the producer's share of the consumer's rupee and the market efficiency of horticultural commodities under different supply chains, and suggests measures to improve marketing efficiency. The study was conducted in the states of Andhra Pradesh, Karnataka, Tamil Nadu, Punjab, Rajasthan, West Bengal, Manipur and Mizoram, covering 29 crop types. The results show that, in the case of most commodities, marketing costs, marketing margins, transport costs and labour charges adversely affect marketing efficiency, and open market price, volume of produce handled and net price received increase market efficiency or have a positive effect. The highest marketing efficiency was found in the producer-to-consumer channel. Government policies should promote direct marketing models for more efficient horticultural marketing.

The institutional framework for doing sports business: principles of EU competition policy in sports markets

The competition rules and policy framework of the European Union represents an important institutional restriction for doing sports business. Driven by the courts, the 2007 overhaul of the approach and methodology has increased the scope of competition policy towards sports associations and clubs. Nowadays, virtually all activities of sports associations that govern and organize a sports discipline with business elements are subject to antitrust rules. This includes genuine sporting rules that are essential for a league, championship or tournament to come into existence. Of course, 'real' business or commercial activities like ticket selling, marketing of broadcasting rights, etc. also have to comply with competition rules. Regulatory activities of sports associations comply with European competition rules if they pursuit a legitimate objective, its restrictive effects are inherent to that objective and proportionate to it. This new approach offers important orientation for the strategy choice of sports associations, clubs and related enterprises. Since this assessment is done following a case-by-case approach, however, neither a blacklist of anticompetitive nor a whitelist of procompetitive sporting rules can be derived. Instead, conclusions can be drawn only from the existing case decisions - but, unfortunately, this leaves many aspects open. With respect to business activities, the focus of European competition policy is on centralized marketing arrangements bundling media rights. These constitute cartels and are viewed to be anticompetitive in nature. However, they may be exempted from the cartel prohibition on efficiency and consumer benefits considerations. Here, a detailed list of conditions exists that centralized marketing arrangements must comply with in order to be legal. Although this policy seems to be well-developed at first sight, a closer look at the decision practice reveals several open problems. Other areas of the buying and selling behavior of sports associations and related enterprises are considerably less well-developed and do not provide much orientation for business.

EXPERIENCES IN LINKING SMALLHOLDER VEGETABLE FARMERS TO THE EMERGING INSTITUTIONAL MARKET IN THE PHILIPPINES

ISHS XXVIII International Horticultural Congress on Science and Horticulture for People (IHC2010): International Symposium on Horticulture for Development EXPERIENCES IN LINKING SMALLHOLDER VEGETABLE FARMERS TO THE EMERGING INSTITUTIONAL MARKET IN THE PHILIPPINES

Export Marketing Arrangements in Four New Zealand Agriculture Industries: An Institutional Perspective

The article examines the effectiveness of export marketing arrangements in 4 of New Zealand's agricultural industries within an institutional perspective. The coordination tasks and economic return from the export were investigated in each industry. Safeguarding problems within a deregulated marketing arrangement might explain reluctance to engage in joint marketing efforts. The gain from setting up new arrangements that foster profitability must be perceived as larger than the setup costs and perceived future costs of mounting down existing arrangements. A framework for design of export marketing arrangements in agriculture industries is proposed. Suggestions for future research are outlined.

Explaining contract choice: vertical coordination, sharecropping, and wine in Europe, 1850–19501

Recent literature on sharecropping has emphasized its importance in reducing problems associated with moral hazard in cultivation (in Tuscany), or providing a crucial ‘rung’ on the farm ladder (in the US south). Yet despite these and other important features, sharecropping was surprisingly absent in most regions. Using case studies associated with French wine production, this article argues that a number of factors have often been overlooked in the literature, the first of which is the need for landowners to be able to offer farms that were sufficiently large both to employ the sharecropper's family on a full‐time basis, and to allow them to produce a variety of products to minimize risk. Second, measurement problems exist with the division of the harvest, especially when quality was an important factor in determining price. Finally, the nature of vertical cooperation and integration associated with the production and marketing arrangements of individual crops suggests that landowners were not indifferent to receiving payment in cash or kind, and this affected contract choice. This article incorporates these ideas to explain not just the presence and absence of sharecropping in different geographical localities, but also the wide variety of different forms of the contract that existed in France.

Carteret Catch™: Raising Awareness of Local Seafood through Community and Business Partnerships

This paper describes two applied research projects that are ongoing. Specifically, we provide the background for establishing a seafood brand and consumer education program, known as Carteret Catch™ and for creating Community Supported Fisheries (CSFs), a direct marketing arrangement for seafood, first piloted in Carteret County, North Carolina. A social marketing approach was used to facilitate the partnerships and the behavioral changes among fishermen, seafood retailers, restaurant chefs, and the public. These projects have the potential to sustain local fishing communities and the commercial fishing industry and serve as models for other fishing communities in the United States and abroad.

Metal Neutrality and the Nation-Bound Airline Industry

The system of trade in international aviation services is a product of post-World War II economic nationalism. It has resulted in an international airline industry in which international airlines are effectively 'nation-bound', because their operations all must begin and end in their home countries. The growth of branded global alliances and the evolution of US and European aviation policies are accelerating rapidly. As part of its deregulation policy, the US has used the possibility for antitrust immunity (ATI) for cooperative marketing arrangements with national carriers that accept Open Skies liberalization. Recent developments in US policy now require airlines seeking such immunity to commit to operate joint ventures that are 'metal neutral'. A metal neutral joint venture is structured so that partners in the venture are indifferent as to which operates the 'metal' (aircraft) when they jointly market services. The metal neutral requirement is a work in progress but holds the potential to diminish economic nationalism and alter the nation-bound nature of aviation operations.

Pricing Linkages Between Added Value Levels Of The Beef Industry: A Systems Approach

Agricultural commodities, and in particular the livestock industry, experiences cycles in prices, demand, and supply conditions. Large variations can result from a variety of factors which influence the regularity, magnitude, and the severity of the cycles. In the last few years the U.S. Livestock industry has suffered through hard financial times. Grass roots organizations such as WORC have accused the packers for using their economic power gained from concentration and the use of captive supplies for low prices at the slaughter and cow-calf levels. To compound the issue IBP, the largest beef packer, with 33 percent of the beef kill is for sale and has been bid on by other packers, potentially concentrating the industry more and reducing the number of bidders for slaughter cattle. The article found that the inefficiencies and price distortion in the value system were not at the packer level, but rather the retail level and between the feedlot level and the cow-calf levels. Because of changing marketing arrangements, price discovery issues in the concentrated markets needs to be resolved before suspicion will disappear.

The Institutional Framework for Doing Sports Business: Principles of EU Competition Policy in Sports Markets

The competition rules and policy framework of the European Union represents an important institutional restriction for doing sports business. Driven by the courts, the 2007 overhaul of the approach and methodology has increased the scope of competition policy towards sports associations and clubs. Nowadays, virtually all activities of sports associations that govern and organize a sports discipline with business elements are subject to antitrust rules. This includes genuine sporting rules that are essential for a league, championship or tournament to come into existence. Of course, ‘real’ business or commercial activities like ticket selling, marketing of broadcasting rights, etc. also have to comply with competition rules.Regulatory activities of sports associations comply with European competition rules if they pursuit a legitimate objective, its restrictive effects are inherent to that objective and proportionate to it. This new approach offers important orientation for the strategy choice of sports associations, clubs and related enterprises. Since this assessment is done following a case-by-case approach, however, neither a blacklist of anticompetitive nor a whitelist of procompetitive sporting rules can be derived. Instead, conclusions can be drawn only from the existing case decisions – but, unfortunately, this leaves many aspects open. With respect to business activities, the focus of European competition policy is on centralized marketing arrangements bundling media rights. These constitute cartels and are viewed to be anticompetitive in nature. However, they may be exempted from the cartel prohibition on efficiency and consumer benefits considerations. Here, a detailed list of conditions exists that centralized marketing arrangements must comply with in order to be legal. Although this policy seems to be well-developed at first sight, a closer look at the decision practice reveals several open problems. Other areas of the buying and selling behavior of sports associations and related enterprises are considerably less well-developed and do not provide much orientation for business.

Fed Cattle Marketing in the South-Eastern of Mato Grosso (Brazil): An Analysis of Beef Producers' Profile and Transactions Coordination

The research aims to relate Mato Grosso’s south-eastern beef producers to cattle marketing arrangements. The sample was based on interviews with fifty-nine cattle producers that live in Rondonopolis (MT). It ranked ranchers in three categories: (N1) producers that only sell animals for cash and/or for installment (thirty days), (N2) producers that do (N1), but also operate through NPR–Notas Promissorias Rurais and/or CPR–Cedulas de Produto Rural, and (N3) producers that do (N2) and also enroll on forward contracts and/or futures contracts. Based on the analysis of the data, the study estimated an Ordered Logit Model in which were found the following relevant variables: Property area, SISBOV/ERAS certification, crossbreeding, and beef exports. In synthesis, the engagement on more demanding marketing arrangements (N3) and (N2) has positive relationship with the size of the land area, the use of cross-breeding on the cattle, and to beef exports. On the other hand, it was found that SISBOV/ERAS certification has an opposite effect. The hypothesis is that to have that certification enable producers to increase price arbitrage among packers in cash or installment transactions.

Economic assessment of the performance of private sector marketing of fertilizer in Delta state – Nigeria

This paper critically attempts to assess the performance of the private sector participants in the marketing of fertilizer in Delta State — Nigeria. A total of 100 respondent fertilizer marketers were randomly selected from four Local Government Areas and studied under the deregulated fertilizer marketing arrangements in 1999. Primary data used for the study were collected with structured questionnaire and analyzed using descriptive statistics of the conventional parameters for assessing market performance and student t-test. The results that the performance of fertilizer marketers was rated ‘fair” based on the opinion of the public and the values of major market performance indices viz: marketing margin (36.04%) and (28.7%) of total revenue, marketing cost 8.75% and 5.46%) of total cost, net return (29.9% and 24.6%) of total revenue, market, efficiency value (1.4 and 1.3), at wholesales and retail level respectively. The performance of the private marketers was mainly constrained by inadequate finance, high procurement cost of fertilizer at source, market access condition and poor market information systems. The paper thus recommended that high performance of private sector marketing of fertilizer would require improved market infrastructures and effective information system as policy instruments.KEYWORDS: Economic assessment1 performance, private sector, deregulated fertilizer marketing.

Revenue maximising combination of rice monocrop and cassava-based farm enterprises in the Central Niger Delta: A linear programming solution

The study focuses on empirical analysis of the optimum combination of rice monocrop and cassavabased cropping systems consistent with revenue maximisation, and the identification of limiting resources in the target cropping systems in the Central Niger Delta of Nigeria. It was based on a cost-route study of 100 small-holder crop farmers throughout an entire farming season spanning 15 months. A linear programming model, with five crop production activities and 10 resources constraints, was employed in analysing the data obtained from the field survey. Results indicate that, of the five crop production activities, only the mixed cropping enterprise, cassava/maize, entered the feasible plan at an hectarage of 2 with a programme value of N124,000.00. Crop production activities not included in the feasible plan are cassava, yam, swamp rice, and cocoyam. The shadow price of land indicates that it is the only limiting resource to surveyed crop farmers in the area. It has been argued that rice cassava-based farmers in the area should cultivate about 2 ha of cassava/maize in order to maximise farm revenue. To ensure that cassava-based farmers are encouraged to adopt the optimal farm plan, it has been suggested that government evolves appropriate farm credit policy to enable them have easier access to finance with which to acquire more farm land for cultivation. Land consolidation and reform policies and programmes on the part of government have also been advocated, as well as the evolution of an effective marketing arrangement to forestall anticipated price risks associated with increased production and supply of cassava and maize. Also advocated is the boosting by government of its rural development activities so as to encourage non-farm activities to which the quarterly excess family labour of cassava-based farmers in the area could be profitably re-deployed.