Micro (Marketing Environment) Analysis and Trends

The micro environmental factors will now be analyzed. Unlike the macro factors just
talked about the micro factors have a much more direct impact on the firms that makeup the fruit
and vegetable industry in India. It must also be noted that some micro factors can be controlled
to some extent by firms in the industry while the macro factors in most cases are uncontrollable.
The micro factors that will be analyzed consist of employees, suppliers, and customers. After the
micro factors are analyzed trends will also be discussed in short.

Employees
When thinking about the great population of India it would only seem logical that firms
in the fruit and vegetable industry have an abundance of people to select from when looking for
employees. However, that is hardly the case and in actuality there is an extreme shortage of
workers qualified to work in the food processing industry. An online source states,
There is a wide gap between skills needed and skill available. If India is to make its
presence in the world market, then there is a need to bridge this gap as soon as possible.
There is a huge gap in demand and supply market. According to a survey done by NSDC,
there is a huge demand for skilled workers at all the stages in food processing industry,
especially for person with short-term course training, having education level below 10 th/12

th

standard (omicsonline.org).
This quote reinforces another reason as to why India has such a low market share globally even
though they produce so much. It is also noteworthy that of the top five challenges identified in the
food processing industry in India availability of trained man power comes in at number five.

Top Five Challenges Identified

Weightage of challenges
Inadequate Infrastructural Facilities 44.25
Comprehensive national policy on food processing sector 34.46
Food safety laws 28.51
Inconsistency in central and state policies 28.08
Availability of trained manpower 25.53
Table 13: Top five challenges of food processing industry and their weighted response [15].

Suppliers
In the Indian fruit and vegetable industry one of the biggest problems that arises for firms
is getting the product from the suppliers (farmers) before it begins to rot. According to the
farmers this problem occurs for several reasons. These reasons include the rising cost of fuel
which makes it extremely expensive for farmers to use the best machinery, the lack of poor
electric supply, lack of irrigation facilities, and deficiency of micronutrients
(ageconsearch.umn.edu). All of these issues make it extremely difficult for the suppliers to get
their products out in a sufficient time and therefore reiterates another reason for why India wastes
such a large amount of fruit and vegetables per year. A drastic change in the relationship
between the supplier and the firms must be made in order to get these issues solved.
Customers
The consumption of fruits and vegetables and edible oil grew rapidly as the diet became
more modernized and westernized. The demand for high-value food products is expected to grow
further with sustained economic growth, rising per capita income, strengthening urbanization
trends and increasing awareness about the nutritive value of food products
(ageconsearch.umn.edu). The quote speaks on the increasing demand in India for high-value
fruits and vegetables. This demand for high-value food can be assumed for all developed
countries that firms in India would be exporting to. Therefore, it would seem that Indian firms in
the fruit and vegetable industries biggest market is now people looking for high-value products.
Once again Indian firms are going to have to find a way to produce more processed fruits and
vegetables of high quality.

Trends
Overall, it is apparent that in India and around the world people are demanding more
fruits and vegetables at a higher quality. You would think that this bodes incredibly well for
Indian firms in the industry due to the upward trends in India such as increasing urbanization,
growing GDP per capita, and a booming population. However, what limits the firms in this
industry are things such as their suppliers and employees. In order to take advantage of the
upward trends in the fruit and vegetable industries Indian firms must find a way to improve the
skill level of employees and find a way to bridge the gap between the suppliers and themselves.

Here are my two sources

http://ageconsearch.umn.edu/bitstream/47881/2/2-J-Ali.pdf
http://omicsonline.org/food-processing-industry-in-india-s-and-t-capability-skills-andemployment-opportunities-2157-7110.1000260.pdf