7.

1 Introduction:
Bangladesh has made significant strides in its economic sector since its independence in 1971. Bangladeshi garments industry is one of the largest and comprehensive industry in the world. Before 1980, Bangladesh's economy and foreign exchange earnings were driven by the jute industry. However, this industry started to fall dramatically from 1970, when polypropylene products gained popularity over the jute products. Bangladesh has also made major strides to meet the food needs of its increasing population, through increased domestic production. Currently, Bangladesh is the third largest rice producing country in the world. The land is devoted mainly to rice and jute cultivation, although wheat production has increased in recent years; the country is largely self-sufficient in rice production. Nonetheless, an estimated 10% to 15% of the population faces serious nutritional risk. Bangladesh's predominantly agricultural economy depends heavily on an erratic monsoonal cycle, with periodic flooding and drought. Although improving, infrastructure to support transportation, communications, and power supply is poorly developed. The country has large reserves of natural gas and limited reserves of coal and oil. While Bangladesh's industrial base is weak, unskilled labor is inexpensive and plentiful. Rural market has an impact in the economy of Bangladesh. Because there are huge number of products comes from village such as paddy, maize, vegetables etc. So it creates a positive impact in the national economy. Basilcally its a linkege between rural people as well as urban people. Here our assign village is Dhonokundi East Para and our assign haat is Chandaikona. In chandaikona bazar all sort of parties involved such as buyer, seller and middlemen. But at haat period major parties are seller and middlemen. Al the paries are inter related to each other.

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Chandaikona is famous haat for its surrouding villages as well as Bogra. Its well structured and organized. Total haat is divided into two parts. One is retail section thats the main raod another one is wholesale section which is situated in school field. This haat held in twice a week (Saturday and Tuesday) The infrastructure facility is good in this haat. Electricity is available and the haat is situated beside the Asian Highway. So the transportation facilities of that particular haat is good. Basic reason of conducting the analysis to understand the market structure of rural haat, the products as well as distribution channels. Its gives us a n idea about the total communication procedure with the urban market and their contribution in the national economy.

7.1.1 Objectives:
Idea about economic activities of the villagers. Products and service available in the market. Market structure Distribution channel Inflow and outflow of products. Difference between rural market and urban market.

7.1.2 Procedure:
The total procedure is conducted by PRA methods. (Performance Rural Appraisal)

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7.1.3 Market System:

Communication Capital Industry A collection of Sellers Househol d Products Money Information Haat A collection of Buyers

FIELD SURVEY WINTER 2005

7.2 Market:
Market is a place where all sort of commodities are buy and sell. Total transection is being held in market. Basically, the set of all actual and potential buyers of a product and service.( Philip Kotler, Gary Armstrong) Marketing means satisfying customer needs and wants by selling the products. It is a social and managerial process by which individuals and groups obtain what they need and word through creating and exchanging products and value with others. (Philip Kotler, Gary Armstrong)

7.2.1 Villege Haat:

Haat is baiscally temporary market. It sits once or twice a week. All sort of buyers and sellers join there for transecting goods and services throughout the week. At haat period all producers join there to sell their products to buyers which comes from different places. There is another term known as bazaar. Its a permanent market. Its sits throughout the year. Daily and retail activites done in bazaar. So there are some distinction between Haat and Bazaar which are given below-

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HAAT It is temporary market It sits once or twice a week seller. thoughout the nation

BAZAAR It is permanent market It sits throughout the year bazaar. location.

Its a combination of both buyer and All kind of entrepreneur are in Products are send from haat to Product are import from different

7.2.2 About Haat:

Chandaikona is a very famous haat for villegers like Dhonokundi, Garoi, Boraidaho, Ghoga, Kaliya Kor etc. Its started form British period. Most of the villeges are situated with 2-5 km area. There is a Bonik Shomity who takes lease the haat area by 14,00,000 TK per year. Large number or customers are come to buy and sell their product. N

7.2.3 Position of Chandaikona:

w GHOGA, BETKUN KALIYA KOR S SHIMLA ZAPRA GHASHURIA E

SHIMABARI SHATURIA BORAIDAHO DHONOKUNDI GAROI

CHANDAI KONA

KODLA, VUIYAGATI, SHERPUR, MECHOPUR,

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7.2.4 Location of Retail market and Wholesale market:

ASIAN HIGHWAY
Retail Mkt

GUR P A D D Y

SPICES VEGETABLE FISH

Road BARBAR SHOP C A T VEGETABLE T L Wholesale Mkt E

WOODEN FURNITURE & ACCESSARIES

SPICES SCHOOL FIELD

Wholesale Mkt

7.3 Product/Service classification:

PRODUCT: Anything that can be offered to a market for attention, acquisation, use or comsumption that might satisfy a want or need its known as product.. It includes physical objects, services, persons, places, organizations and ideas. ( Philip Kotler,
Gary Armstrong)

SERVICE: Any acitivity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything is known as service. (Philip Kotler, Gary Armstrong)

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Products are divided into two parts. 1. Consumer products; 2. Industrial products. Consumer products: Products bought by final consumer for personal consumption. Industrial products: Products bought by individuals and organizations for future processing or for use in conducting a business.
CONVENINENCE

CONSUMER PRODUCTS
SHOPPING

PRODUCT
SPECIALTY

INDUSTRIAL PRODUCTS

UNSOUGHT

7.3.1 Products and Service (available) List: CATEGORY GOODS

CONSUMER # CONVENIENCE RICE, SALT, VEGETABLES, DAL, OIL, SPICES, BIRI, CIGARETTE, SOAP, RED CHILI. # SHOPPING CLOTHING, SHARI, LUNGI, GAMCHA, SHOE, SOFT DRINKS, PASTE, POWDER, BRUSH. HERBAL MEDICINE, C.D PLAYER, FURNITURE, COW, GOAT. CLOTHES FOR KAFON FERTILIZER, PADDY, PLOUGH, SEEDS PESTICIDES BARBER SHOP, VEHICLE RENT SERVICE

# SPECIALTY

# UNSOUGHT INDUSTRIAL SERVICES

7.3.2 Inward and Outward products of the village:

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Inward products Paddy Vegetable Maize Fish Bettle Leaf Shawl Ginger Wood Fertilizer Clothes Paste Soap Medicine Cigarette Pesticides Cosmetics

Outward products Rice Paddy Vegetable Maize Gur Curd Fish Green Chili Plough Wooden Furniture

CHANDA I KONA

7.3.3 Value Chain Analysis:

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Value chain of Cauli Flower Raw Material: Seeds, Fertilizer, Pesticides Sources of Fund: Self; Krishi Bank

Spending Pattern: Clothing, Food, Education Savings: Purchase land, Loan Payment

Cost of Labor: Season: Male 80-100 TK Female 60-75 TK Work In process:

Preparation of Seed Bed Irrigation Harvest

Earning from Traders: NI= Selling-Cost = (520-400) Tk/40 Kg = 120 Tk/40Kg

Output: CAULI FLOWER

Distribution channel: ProducerMohajonW.sel lerRetailerConsumer

For Cauli Flower, necessary raw materials are seeds, fertilizer and pesticides. The farmers collect the money by their own. If the money does not fulfil the requirement then they have to borrow money from Krishi Bank. In season the cost of labor is higher than off season. In season male get 80-100 TK per day where as female get 60-75 TK per day. In off season male get 50-70 TK per day where as female get 30-40 Tk per day. Before producing the Cauli Flower they have to prepare the seed beds first, then they go for irrigation and harvest the Cauli Flower. After producing the Cauli flower they send it to haat for sale. Through Mohajon it sends to wholeseller in dhaka. Then wholeseller sends it in different outlets by which consumer gets the Cauli Flower. From the farmers point of view they earn 120 TK/40 KG. After earning they spend most of money for clothing, food and education. If they have enough money in hand then they purchase land and pay the loan. Its a total value chain of Cauli Flower.

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7.4 Price:
price is the one element of the marketing mix that produces revenue; the other elements produce cost. Prices are the easiest marketing mix element to adjust product features, channels and even promotion take more time. Price also communicates to the market the companys intended value positioning of its product or brand. (Philip Kotler, Gary Armstrong)

7.4.1 Pricing Set:

After producing the products, producers set the price according to market. They is a Bonik Shomiti who basically sets the price according to dhaka wholesalers. They add some profit and tax with the cost of the products. By which they sell their products. Analyzing Competitor cost, prices and other offers like Deciding the price by Bonik Shomiti

Estimation of Costs

Selecting the final price

7.4.2 List of pricing of different product and service:

Product Name Total Cost Selling Price Profit

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(TK) IRRI (per Kg) Gur (700 gm) Herbal Medicine Rice (per Kg) Seeds (per Kg) CauliFlower (per Kg) Plough (Large) Window (per piece) Door (per piece) Table (per piece) Cattle 11-13 15 9 12 6 10 185 180 1050 105 4300-4500

(TK) 16 18 12 15 9-10 13-14 200 190-200 1200 115-120 5500

(Approx) (TK) 3-5 3 3 3 3-4 3-4 15 10-20 150 10-15 1000-1200

7.5 Selection of place:

Asian highway is near to Haat. Number of surrounding villages beside Chandaikona Haat. Financial Condition & Buying Capacity of the surrounding villages.

7.5.1 Distribution Channel:

Channel-1 (Rice): Produce r

Mohajon

Wholesale r (Dhaka)

Retailer Consume r

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Here producer produce rice and send it to the mohajon of Chandaikona haat. Then Mohajon sell it to wholesaler of dhaka(Kawran Bazar & Jatra Bari). Wholesaler carried it away by their hired or own transportation. Wholesaler send it to different bazaars of dhaka which finally reach to ultimate consumer. Channel-2 (Vegetable):

Producer

Mohajon

Wholesale r (Dhaka)

Retailer Consume r

Here producer produce vegetable and send it to Chandaikona haat where mohajon collect it from producers. Then they send it to wholesaler of dhaka (Kawran Bazaar). From there vegetable are send to different outlets of different bazaar where consumer gets the vegetable. Channel-3 (Consumer Goods):
Manufacturer

Agents

Retailer Consume r

Here manufacturer produce the product and they distribute it through their agents. Agents send it to different retailer in different outlets where consumer gets their required product.

7.6 Promotional activities:

In Chandaikona haat, most of them use miking to aware about their products. Some of them give coupon by which people can know about the different brands of the product. Chain agents give gifts to the retailer to sell their products.

7.7 Finding of Chandaikona Haat:

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Major Finding:
Nakshi Katha: Basically female of Dhonokundi produce Nakshi Katha. Major customer of this Nakshi Katha are some reknown retailer such as Arong, Key Kraft etc. The wholesale price is around 1400-1600 Tk(8 3)

Important Findings:
Fishing Project: There are some fishing projects in Dhonokundi village where produced fish are send directly to Chandaikona haat. Vegetables: Different kind of vegetables are send to the different part of the country. Some important vegetables are Cauli Flower, Brinjle, Green chili etc. Post Office: In Chandaikona haat there is a post office which helps the middlemen to communicate with the wholesalers of Dhaka. Poor Quality Medicine: There are some harbal medicine found in Chandaikona haat which is poor in quality. It is not only harmful but also causes serious damage human body. Inflow is more than Outflow: In Chandaikona haat rate of inflow is greater than rate of outflow. Huge amount of products are enter in Chandaikona haat where as small amount of products go out from haat.

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7.8 Problems of Chandaikona Haat:

There are some problems in Chandaikona haat which are given below

Space problem:
The total area of Chandaikona haat is not enough for both sellers and buyers. In Haat time the place is overcrowed and it makes a huge chaos at that particular time.

Monopoly of middlemen:
In haat there are large number of producers available to sell their product. Middlemen basically collect the products and sell it to Dhaka wholesaler. They purchase the product at a minimal amount and sell it in huge amount. So, Producer could not get the money whatever they deserve producers become demotivated to produce products. For this reason

Security problem:
Security is the another concerning factor for the producer. Every now and then they have to pay some sort of tax to different parties. Otherwise they do not even run the business.

7.9 Recommendation:
The Bonik Shomity should take whole place including school field. It can easily decrease the load and increase the number of buyers and sellers. Bonik Shomity should take some sort of action by which producers can directly sell their preoducts. Its not only minimize their cost but also increase their profit margin.

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 Bonik Shomity should keep some securities in haat area to control all kinds ofproblems done by differnet parties. They might hire some policemen for their protection.

7.10 Observation of Case Study:

There are case study of five farmers and five traders. This are given below

Farmers: F-01
Name: Golzar Hossain Age: 40 years; Village: South Kodla Profession: Farmer. 1. What kind of product you cultivate? Ans: Rice (IRRI) 2. How many years are you in farming? Ans: Almost 12 years. 3. After cultivating IRRI do you do any other kind of job in off season? Ans: No 4. Do you have your own land? Ans: Yes (5 Bighas) 5. Do you invest by our own? Ans: No. 6. If you collect loan then From where you collect your money? Ans: Local Mohajon and Krishi Bank 7.Do you get the proper money what you deserve? Ans: No. Because I sell my crop through middlemen who earns lots of money but they give us very little amount from it. 8. What sort of problem you face while selling your crop?

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Ans: Not much. Basically I found one major problem and that is middlemens power. They buy the crops at a lower price and they sell it in Dhaka at higher rate. For this reason we couldnt get appropriate amount of money. 9. What kind of fertilizer do you use? Ans: I use cowdung, Uria, Pothashiam etc. as fertilizer. 10. Do you use pesticides? Ans: Yes. 11. Do you get enough amount of labor in season? Ans: Yes. 12. Do you think Labor rate is higher or lower? Ans: higher.

F-02
Name: Iqbal Hossain Age: 25 years; Village: Shathiya digor Profession: Famer 1. What kind of product you cultivate? Ans: Seeds like Masturd, Rice, Soya Bean etc. 2. How many years are you in farming? Ans: 6 years. 3. After cultivating Seeds do you do any other kind of job in off season? Ans: No 4. Do you have your own land? Ans: Yes (7 Bighas) 5. Do you invest by our own? Ans: Yes. Through family resources. 6. If you collect loan then From where you collect your money? Ans: Not Applicable. 7.Do you get the proper money what you deserve?

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Ans: No. Mohajon get maximum profit. I have no other option to sell my seeds. Thats why I have to sell my seeds to them though I get less amount what I deserved. 8. What sort of problem you face while selling your seeds? Ans: No problem. 9. What kind of fertilizer do you use? Ans: Cowdung, Uria, Pothasiam, Zypsum etc. 10. Do you use pesticides? Ans: Yes. 11. Do you get enough amount of labor in season? Ans: Yes. 12. Do you think Labor rate is higher or lower? Ans: Lower.

F-03
Name: Kala Chad Vush Age: 48 years; Village: Shaturia Profession: Farmer. 1. What kind of product you cultivate? Ans: Rice (IRRI) 2. How many years are you in farming? Ans: 18 years. 3. After cultivating IRRI do you do any other kind of job in off season? Ans: Van driving. 4. Do you have your own land? Ans: No. I take Borga from other people. 5. Do you invest by our own? Ans: Yes. By myself. 6. If you collect loan then From where you collect your money? Ans: Not Applicable. 7.Do you get the proper money what you deserve?

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Ans: No. 8. What sort of problem you face while selling your crop? Ans: Bargaining power of buyer. 9. What kind of fertilizer do you use? Ans: Cowdung, Uria, Pothasiam etc. 10. Do you use pesticides? Ans: Yes 11. Do you get enough amount of labor in season? Ans: Yes. 12. Do you think Labor rate is higher or lower? Ans: Higher.

F-04
Name: Zahirul Age: 40 years; Village: ShimaBari Profession: Farmer 1. What kind of product you cultivate? Ans: Cauli Flower 2. How many years are you in farming? Ans: 15 years. 3. After cultivation do you do any other kind of job in off season? Ans: No. 4. Do you have your own land? Ans: Yes. (5 Bighas) 5. Do you invest by our own? Ans: No. 6. From which source you collect your money? Ans: Brac Bank and Krishi Bank. 7.Do you get the proper money what you deserve? Ans: Almost. 8. What sort of problem you face while selling your crop?

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Ans: Transportation problem. 9. What kind of fertilizer do you use? Ans: Cowdung, Uria etc. 10. Do you use pesticides? Ans: Not required. 11. Do you get enough amount of labor in season? Ans: Yes. 12. Do you think Labor rate is higher or lower? Ans: Higher.

F-05
Name: MD. Zamal Uddin Age: 52 years; Village: Kaliya Kor Profession: Farmer.

1. What kind of product you cultivate? Ans: Green Chili. 2. How many years are you in cultivation? Ans: Almost 17 18 years. 3. After cultivation do you do any other kind of job in off season? Ans: No. 4. Do you have your own land? Ans: Yes (8-9 Bighas) 5. Do you invest by our own? Ans: Yes. By myself. 6. From which source you collect your money? Ans: Not Applicable. 7.Do you get the proper money what you deserve? Ans: No. Middlemen sucks most of the revenue which we deserve 8. What sort of problem you face while selling your crop? Ans: Bargaining power of buyer and transportation problem.

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9. What kind of fertilizer do you use? Ans: Cowdung, Uria, Pothasiam, Zypsum etc. 10. Do you use pesticides? Ans: Yes. 11. Do you get enough amount of labor in season? Ans: Yes. Most of the time. 12. Do you think Labor rate is higher or lower? Ans: Higher then before.

Traders: T-01
Name: MD. Sorhab Ali Age: 45 years; Village: Boraidaho Profession: Trader (Gur) 1. How do you collect the Gur? Ans: I collect Gur from different people. At haat period there are huge number of seller available in Chandaikona Haat. From them I collect Gur. 2. What is the amount of Gur you sell in a day? Ans: Near 3 to 4 Kg. But at haat period its almost 7-8 Kg. 3. What is the price of Gur? Ans: 18-19 Tk per 700 gm 4. What sort of problem you faced while collecting the Gur?

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Ans: Basically quality of product. Because Gur vary from producer to producer. For that reason quality differ at a high rate. 5. What do you think about the demand of Gur?(increasing/decreasing) Ans: Increasing.

T-02
Name: Sholeman Sheikh Age: 55 years; Village: Roroa Profession: Trader (Cloths) 1. How do you collect the cloths? Ans: I collect the cloths from different places such as shimabari, dhonokundi, Bogra town etc. 2. what is the amount of money you earn in a day? Ans: near about 175-250 Tk. 3. What are the highest selling cloths in your shop? Ans: Basically Lungi, Gamcha, Shari and Nokshi Katha etc. 4. What sort of problem do you face while collecting the cloths? Ans: Transportation Problem. 5. What do you think which items selling demand is increasing? Ans: Nokshi Katha.

T-03
Name:Bipul Kumar Das Age: 43 years; village: Shimabari Profession: Trader (Herbal Medicine)

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1. How do you collect the medicine? Ans: I collect the medicine from Bogra town. 2. What is the amount of money you earn in a day? Ans: Near about 70-80 Tk. 3. What are the highest selling medicine in your shop? Ans: Dater Majon, Molom, Cream etc. 4. What sort of problem do you face while collecting the medicine? Ans: Quality of medicine is not same all the time. 5. What do you think that which items demand is increasing? Ans: Dater Majon and Molom.

T-04
Name: MD. Ali Age: 57 years; Village: Shimla Profession: Trader (Wooden Furniture)

1. How do you collect the wooden furniture? Ans: From Shimabari, Boraidaho, Dhonokundi, Sherpur, Shimla, kaliya kor and Bogra town. 2. What is the amount of money you earn in a day? Ans: Its around 350-500 taka (at Bazaar time) and 1150-2000 taka (at Haat period). 3. What are the highest selling products in your store? Ans: Plough, Khaat, Door and window. 4. What sort of problem do you face while collecting the instruments and furniture? Ans: Major problem is transportation. 5. What do you think that which items demand is high? Ans: Plough.

T-05
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Name: Robiul Awal Age: 42 years; Village: Dhonokundi Profession: Trader (Grosery) 1. How do you collect your grosery products? Ans: Basically I collect the food items from Bogra town. And other provided by different distributor. 2. What is the amount of money you earn in a day? Ans: Almost 1800-2200 Tk. 3. What are the highest selling products in your store? Ans: Basically all sorts of mini item such as mini shampoo, mini toothpaste, mini detergent etc.In cold drinks Virgin and Pran are the highest selling cold drinks. 4. What sort of problem do you face while collecting the products? Ans: No Problem. 5. What do you think that which items demand is high? Ans: Many things such as Virgin, Pran, Tibbat, Keya soap, Molla salt, Eliphant King Coil etc.

7.11 Concluding Part:

Dhonokundi village is one of the developing village in Bogra. The Market structure of ChadaiKona Haat is also developing. If the government and private sectors entrepreneur can take proper steps then the market can become vital role in the economy. Government should take initiative to help farmer as well as traders. After analysis the situation of Chandaikona haat basically

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traders playing leading role in market. They are rolling over farmer and skimming out the maximum profit with the invest of minimum amount. For that reason farmer does not get appropriate money and remain poor.

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