ACKNOWLEDGEMENT

I extend my sincere thanks to all those people who have helped me in the successful

execution of this project with their valuable suggestions.

I am deeply indebted to all those people whose work I have referred to this project. I

must owe a deep sense of gratitude towards my teachers for their kindness and encouragement

in various stages of the project.

This moment of the thesis is one of the prides that I opportunity in this stand of my

career to express my sincere efforts within this limited time. Finally I would like to pay regards

to my family without whose inspiration and monetary aid this project was impossible.

1

SELF DECLARATION

I hereby declare that the project report entitled MAHINDRA TRACTORS. is done by

me is an authentic work carried out for the partial fulfillment of the requirement for the award

of the degree of Master in Business administration under the guidance of Mr. Diyal Bhatnagar.

The matter embodied in the project work has not been submitted for the award of any other

degree, diploma or any other similar title or prizes to the best of my knowledge and belief. 

                                                                                          

(Signature)

 (Jagjeet singh)                                         

2

 

PREFACE

This project report pertains to the making of a project SUMMER TRAINING of

M.B.A. curriculum.

The PURPOSE of this project is to make the students have thorough knowledge of the

topics given to them. I learned a lot from the hard work I put in to collect information regarding

the same, which would be of great use in my near future as a professional.

Justification cannot be done to whatever I have learn t within a few pages but I have still

tried my best to cover as much as possible about “Consumer Perception Towards Agriculture

Tractors (60 HP Class): A Comparative Study of Mahindra & Mahindra with others” in this

report.

Being students of Master in Business Administration, we need to be aware of the

organization internal environment. Summer training helps us to understand these

concepts related to the organization.

3

INDEX

Sr no. Particulars Page No. THE EXECUTIVE SUMMARY

6 

1 CHAPTER 1:

INTRODUCTION 7

2 CHAPTER 2:

TRACTOR INDUSTRY OF INDIA 9

3 CHAPTER 3:

COMPANY PROFILE 13

ORIGIN OF THE COMPANY 14

INDIAN INDUSTRIAL ENVIRONMENT 16

BUSINESS OF MAHINDRA GROUP 19

4 CHAPTER 4:

COMPARISON 22

5 CHAPTER 5:

OBJECTS OF PROJECT 34

6 CHAPTER 6:

RESEARCH METHODOLOGY 35

7 CHAPTER 7:

INTERPRETATION AND ANALYSIS 38

8 CHAPTER 8:

PRODUCT LIFE CYCLE OF MAHINDRA TRACTOR 48

    SEGMENTATION & TARGETING 49 

4

9 CHAPTER 9:

FINDINGS 50

SUGGESTIONS 51

SUMMARISATION 52

CONCLUSION 53

SWOT ANALYSIS 54

LIMITATIONS 55

BIBLIOGRAPHY 56

QUESTIONNAIRE 57-59

THE EXECUTIVE SUMMARY5

PROJECT UNDERTAKEN BY ME

The project studied by me in Indian Tractor Company, Bathinda was “Consumer

Perception towards Agriculture Tractors (60 HP Class): “A Comparative Study of Mahindra

& Mahindra and Escort” It helps to make aware company regarding the various aspects of

brand preference performed at regular basis to cement.

SCOPE OF THE STUDY

1. The study has been done for the tractors so more or less it helps in understanding the

consumer perception towards the tractors market.

2. The study can help in analyzing certain weak point, improving on which a company can

overcome the low sales of its tractors in Bathinda region.

HOW IT WAS UNDERTAKEN

A survey was conducted by me among the consumers of tractors in bathinda. During the

survey I tried my best that more and more questionnaire to be filled from the consumers so that

to conclude the results gracefully.

I was also appreciated by the support of the project guide and Managing Director of

Indian Tractor Company, Bathinda, who guided me the basic fundamentals of Tractor

marketing performed by the company.

6

CHAPTER 1: INTRODUCTION

India is poised to become a major Auto hub in the near future. Indian tractor industry is

changing rapidly, so is the mindset of Indian Consumers. We, at the Great Lakes Institute of

Management, took an initiative to find out that whether the changing ground realities have also

changed the India Auto Consumer’s mindset vis-a-vis their perception of the abilities of various

Indian and foreign Auto manufacture to deliver the much sought after attributes in a tractors

With the latest numbers showing U.S. vehicle sales slumping to a 15-year low,

automakers are wondering where their next buyer is coming from. Clearly, winning new

customers was required them to develop more reliable, exciting, and fuel-efficient vehicles, a

task that could take years. But a recent survey suggests that automakers have opportunities to

improve their business performance in the short term by focusing more on the customers they

already have. Especially in these tough times for the industry, one of the most powerful

techniques for converting buyers into die-hard fans is providing exceptional after-sales service.

Bain & Co. surveyed more than 1,800 customers who had purchased all the automotive

brands sold in the U.S., to better understand their ownership and sales experience and to assess

their brand loyalty. We asked owners to rate, on a scale of zero to 10, how likely they were to

recommend their vehicle to a friend or colleague. By subtracting the percentage of "detractors"

who gave scores between zero and 6, from the percentage of "promoters" who gave a score of 9

or 10, we can calculate a "Net Promoter Score" (NPS). NPS is already used in dozens of

industries to determine how deep loyalty to a particular company runs among its customers, and

how it stacks up against its competitors when it comes to customer loyalty.

The NPS survey for automakers revealed two important findings. First, promoters are

nearly 10 times more likely than detractors to repurchase or lease a vehicle of the same make or

brand as their current one. Second, promoters are far more likely to recommend their vehicle

brand to a friend. Each promoter provides nearly five purchase referrals, while each detractor

dissuades two prospective buyers

7

High among the factors that create promoters—and help sustain their loyalty—is a strong

after-sales service experience. The reason is simple: Dealer service is the key point of contact

with customers at the critical time when most people are weighing their next vehicle purchase.

Owners' brand enthusiasm tends to erode as the vehicle ages and the warranty expires. But it is

precisely at this point—about four years after the initial sale—that the leaders capitalize on their

loyalty advantage by using maintenance visits as opportunities to reinforce their ties with

promoters and win over detractors.

Excellent service not only reinforces relationships with customers who already feel loyal

to a brand. It can also defuse ill will that causes disaffected customers to bad-mouth the brand.

Indeed, the brand leaders excel especially at turning unplanned repair visits—those critical

moments of truth on which a customer relationship can hinge—into opportunities to strengthen

customer bonds. While most carmakers aim to ensure that the service experience does as little

harm as possible, the leaders set out to surprise customers with ease and convenience when they

expect it least and value it most.

The power of nurturing promoters shows up dramatically in data showing how severe the

damage can be when a repair experience doesn't go well. Overall, the NPS of loyalty leaders

whose vehicles have not needed a repair is a stellar 85. It falls off to a respectable 77 when the

vehicle needs a mechanic's attention. But among loyalty laggards, an unscheduled stop in the

shop resulted in scores plummeting 29 points to a dismal 19. Owners of those vehicles are

angry, and they are going to tell their friends and colleagues about it.

Ultimately, the biggest influence on customer loyalty and affinity for the nameplate is the

quality of the vehicle itself. But a bad after-sales experience can erode it just as quickly. In the

economy they face today, automakers need to rethink how they win and retain every customer

they have.

Tractor owners are in for an enjoyable ride this summer. The cut throat competition in the

auto industry has forced major players to focus on the after sales services, an important part of

owning a tractor. No wonder, the Motown is full of service offers this summer.

8

CHAPTER 2: TRACTOR INDUSTRY OF INDIA

Now a days , people prefer tractor with good features and of good quality.a person who

are going to purchase a tractor wants that tractor should be of well known brand, it should has

good looks, better driving on road and on field , it should be very powerfull and fuel efficient.

So , tractor industry in these days has many players. These are.

(Escort, Powertrac and Farmtrac)

Escorts Ltd began local manufacture of Ford tractors in1971 in collaboration with ford,

UK and total production climbed steadily to 33,000 in 1975reaching 71,000 by 1980. Ford

(Ford - New Holland) was sold in 1992. Ford Motor Company proper quit the tractors business,

but the name was allowed to continue as per agreement until 2000, when Escorts relabeled its

Ford models under the Escort brand. Escort manufactures produces tractors in the 27-75 HP

range and has already sold over 6 lac tractors. Its tractors are marketed under three brand

names, Escort, Powertrac and Farmtrac.

9

HMT Tractors

HMT is a large public sector unit and began manufacturing Agricultural Tractors in 1972

under the HMT brand name with technology acquired from Zetor of the Czech Republic. It

manufactures its tractors in Pinjore, Mohali in a large factory that also manufactures machine-

tools, and Hyderabad It has a capacity of 20,000 tractors per annum. In the Machine-tool

company is a large foundry. It produces tractors in a range from 25 HP to 75 HP. For a short

time, HMT exported tractors to the USA under the Zebra brand, which were marketed by Zetor

distributors and dealers there. The company is controlled by the Ministry of Heavy industry that

provides, on a monthly basis to the public its financial performance.

John Deere

In 2000, John Deere set up production in a joint venture with Larsen & Toubro Ltd in

Sanaswadi, in a rural area near Pune, Maharashtra. It was known as L&T John Deere Private

Ltd, and manufactured tractors under the L&T - John Deere name for sale in India, and under

the John Deere name for worldwide sales

In 2005, Deere & Company acquired nearly all the remaining shares in this joint venture.

The new enterprise, is known as John Deere Equipment Private Limited. The factory currently

produces tractors in of 35, 40, 42, 47, 50, 55 and 70 HP capacities for domestic markets and for

export to the USA, Mexico, Turkey, North and South Africa, and South East Asia. Pune factory

started to produce new 55 to 75 Hp 5003 series tractors for European market in 2008.

10

Sonalika (International Tractors Ltd.)

International Tractors Limited was incorporated on October 17, 1995 and began

manufacturing tractors designed by Central Mechanical Engineering Research Institute

(CMERI). ITL currently is manufacturing Sonalika tractors between 30 HP to 90 HP, and the

CERES brand between 60HP to 90HP. ITL went into collaboration with Renault Agricultural

of France in July 2000. Renault Agriculture is a subsidiary of the Renault Group. Renault

Agriculture was bought by CLAAS of Germany in 2003. Incidentally CLAAS already has a

strong presence in India market producing its Crop Tiger range of Combine Harvesters in a

plant in Faridabad (near New Delhi) since 1992. CLASS has opened a new plant in Punjab at

Morinda in 2006.

TAFE

Tractors and Farm Equipment Limited (TAFE) was established in 1961 to

manufacture and market Massey Ferguson tractors and related farm equipment in India. AGCO,

the owner of Massey Ferguson, now owns 24% of TAFE. Tractors are built and sold in India

under both the TAFE and Massey Ferguson brands, and exported under both brands as well. In

2005, TAFE bought the Eicher Motors tractor and engine division.

11

New Holland

New Holland Ag's entry into India was facilitated by FIAT's acquisition of Ford-New

Holland in 1991. By 1998 New Holland Ag. (India) completed the construction of a new plant

in Noida, near New Delhi, with a capacity of 5000 tractors in the 35 - 75 hp range. In 1999,

New Holland Ag.'s parent company FIAT bought 70% of holdings of Case Corporation and

created Case New Holland Global (CNH one of the top three tractor/agricultural/construction

machinery manufacturers in the world), the new holding company New Holland Ag. (India). In

2000, the capacity of the Noida plant rose to 12,000 tractors per year and in 2007 the company

manufactured 24,000 tractors for the domestic and export markets.New Holland India exports

fully-built tractors to 51 countries in Africa, Australia, South-East Asia, West Asia, North

America and Latin America.The India plant of New Holland was originally built in 1998 to

cater only to India domestic market. However due to slow down of economy by year 2001-2002

and slump in domestic demand, it became a challenge to utilize the installed capacity of the

factory.Hence the company started looking its market beyond India borders. Its then CEO

Mario Gasparri guided the vision and handed over the task of overseas business to its dynamic

manager Bhanu Sharma. The efforts paid off well. Bhanu Sharma in capacity of Head-

International Business Operations, took op the export volumes from the level of almost nil in

2003 to 8000 units in year 2007. The export business last year in 2007 contributed over 50% of

the company business of total USD 250 millions.This also made New Holland the second

largest tractor exporter from India after John Deer. In year 2007, India exported around 32,000

tractors of which 25% share was of New Holland

CHAPTER 3: COMPANY PROFILE (MAHINDRA & MAHINDRA)12

The company took birth just before Indian independence therefore it has been deeply

impacted by the transformation the Indian industrial environment has taken after independence.

The development of Mahindra and Mahindra has been described in three phases:

• First phase (from birth to pre 'License Raj' era)

• Second phase (the 'License Raj')

• Third phase (Post 'License Raj' till today)

The post license Raj period has been a boom for M&M. Despite challenges from inside

and outside environment, M&M has overcome its weakness and leveraged its competency with

innovation in its business processes. Now we can see M&M as one of the top 10 business

houses in India and among top 200 in the world.

Founders

Mr. J.C. & K.C. Mahindra, the founders of the Mahindra Group, had the same ambition:

to prove to themselves and the world that Indians were capable of being the best at whatever

they chose to do. Accordingly, they gave up their professional careers at TISCO and Martin

Burn respectively, and risked becoming entrepreneurs by setting up their own company:

Mahindra & Mahindra.

It was under their inspiring leadership that Mahindra & Mahindra made the first

indigenous Jeep in the country in 1949. Their innovative spirit also showed during the days

when the Company was the leading importer of steel in the country. J.C. & K.C. Mahindra had

to persuade the Indian Government to buy French rails for the fledgling Indian Railways

because they felt that the British specifications were obsolete and not the best suited. To

convince government officials of the superiority of the French product, they laid down a short

length of rail line with French rails and invited the government authorities for a ride. During the

journey, chilled champagne was served in glasses filled to the brim. Legend has it that the train

raced along, but not a single drop of champagne was spilled, so smooth were the French rails.

Needless to say, they made their point.

13

Interestingly, J.C. & K.C. Mahindra believed in globalization decades before it had

become a buzzword. Even in the fifties, the Company had British and German engineers on its

rolls, and international tie-ups with Mitsubishi, Willys, Perrine and Chrysler. Every venture

they set up delivered satisfactory financial results and their company, Mahindra & Mahindra,

has grown into one of India's largest corporate groups. Even today the Group is driven by the

same vision that drove them then.

ORIGIN OF THE COMPANY

The emergence of Mahindra was entirely a post war phenomenon. The scions of a

landholding Khatri family of Ludhiana in Punjab, Kailash Chandra Mahindra and his brother

Jagdish Chandra Mahindra, after completing their education, worked for some time with two

large steel houses. In 1930, however, they left the corporate world to join high positions in the

government. As war was coming close, they also started to think more openly and decided t

launch their own company which would be one of the helping hand to develop the new India.

They believed in the Nehruvian vision—with an infusion of engineering education and

technology, Indians could be second to none.

On October 2nd, 1945, with that vision in their mind, Mahindra brothers set up a company

in Ludhiana as Mahindra & Mohammed in partnership with a close friend Ghulam Mohammed.

Company was engaged in import of steel, although it also promoted and acted as managing

agents of Machinery Manufacturer Organization (MMC) registered in Bombay in 1946. A large

part of the share capital to MMC was provided by Rana of Nepal with whom Mahindra brothers

had established close contacts.

In August 1946, after getting independence from British rule, the wave of partition

disrupted the plans of brothers. Ghulam Muhammad migrated to Pakistan after breaking up the

partnership. Only two brothers held the ownership and the name of the company changed to

'Mahindra and Mahindra'.

Evolving to become an automobile manufacturer14

Invention of the 'Jeep'

The first jeep prototype was built for the United States Army Quartermaster Corps

(QMC) by American Bantam in Butler, Pennsylvania, followed by two other competing

prototypes produced by the Ford Motor Company and Willys-Overland.

Production of the Willys MB began in 1941 with 359,851 units were produced before

production stopped at the conclusion of World War II. The origin of the name "Jeep" has been

debated for many years. Some people believe "Jeep" is a phonetic pronunciation of the

abbreviation GP, from "General Purpose", that was used as part of the official Army

nomenclature. The first documented use of the word "Jeep" was as the name of a character in

the Popeye cartoon, known for his supernatural abilities (e.g., to walk up walls). It was also the

name of a small tractor made by Modine before WW2.

Whatever the source, the name stuck and, after the war, Willys filed a trademark claim

for the name.

After war, Willys struggled to find a market for the unusual vehicle, and made an effort

to sell it as an alternative to the farm tractor. Tractors were in short supply having been out of

production during the war. Despite this, sales of the "agri-Jeep" never took off, mainly because

it was too light to provide adequate draft.

However, the CJ-2A was among the first vehicles of any kind to be equipped with four

wheel drive from the factory. It gained popularity among farmers, ranchers, hunters, and others

who needed a lightweight vehicle for use on unimproved roads and trails. In 1946, a year after

the introduction of the CJ-2A, Willys produced the Willys "Jeep" Utility Wagon based on the

same engine and transmission, with clear styling influence from the CJ-2A Jeep. The next year

came a "Jeep" Utility Truck with four wheel drive. In 1948, the Wagon was available in four

wheel drive, making it the ancestor of all Sport Utility Vehicles.

Jeep - Indian Connection

15

The term Multi-Utility Vehicles owes its origin to the 'General Purpose vehicles' used by

American armies during the World War II. The Willy's Jeep was India's first Multi-Utility

Vehicle was launched by Mahindra and Mahindra in 1944 as a franchisee.

Mahindra brothers saw the opportunity at that time. Good infrastructure for transportation

was limited to only metros and majority of areas were served by Kutcha roads (makeshift,

somewhere made of sand, bricks and dust). This was a big challenge in front of government as

well as the industrialists to reach into smaller towns and cities. It was the invention General

Purpose Vehicles by Willys to be used by American Armies during World War II, which gave

the solution. These vehicles were also seen as alternative to farm tractors which proved its

efficiency. Multi-Utility Vehicles are now seen as ideal for the rural roads, and are highly

favored in hilly regions of the country where the terrains tend to be on the rougher side.

INDIAN INDUSTRIAL ENVIRONMENT (Post 1947)

After independence, there were many problems facing the Indian government. Poverty,

education and unemployment were result of poor and absence of systematic and coordinated

industrial growth and inequality in wealth distribution.

Industrial Policy Resolution

It was the first major step taken by the Indian government for setting directions for the

industrial development of the nation. Government adopted socialistic pattern of governing and

held control of the basic industries. Automobiles were treated as a luxury product and therefore

Mahindra and Mahindra business survived as one of the three automobile makers in the country.

License Raj (Second Phase for development of Mahindra Empire)

This marks the period between 1960 and 1980 of the industrial development which was

governed by the Permit raj or commonly known License Raj. Government controls and scarcity

of economic development lead to death of innovation in Mahindra business.

The License Raj was a result of government's decision to have a planned economy where

all aspects of the economy are controlled by the state and licenses are given to a select few. The

main purpose of the policy was to make sure that industrial

16

For existing players, several restrictions were imposed like regulation of number of units

to be manufactured and price of selling. It also restricted companies to develop and expand.

Mahindra and Mahindra was changed dramatically due to enforcement of some of these

restrictions. For example, applications for licenses to make scooters and passenger cars were all

turned down following some regulatory objections raised by the government. In another case,

Mahindra & Mahindra like many Indian companies was forced to expand into other businesses,

which lead to the creation of a tractor division in 1982 and a tech division (which is now Tech

Mahindra) in 1986.

Post License Raj (Third Phase)

After the liberalization in 1991, India's overall automobile Industry grew in leaps and

bounds. With the growth in the Indian economy, big international car manufacturers like

General Motors, Ford, Toyota, Honda, Hyundai, Rolls Royce, Bentley and Maybach have

entered the Indian market.

Due to opening of the economy and entry of foreign companies, the early '90s was a

period of turmoil at M&M. Company ran into troubles due to international competition. The

company had to deal with more than one takeover attempt and a major recession and violent

labor unrest. Adding to the situation was the fact that the country's auto sector was opened up to

global manufacturers. This looked as the decline of the industry as most expected that Indian

companies would have to sell out or wind up. That was the environment in which Anand

Mahindra, a Harward graduate was appointed as deputy managing director of M&M.

Under the leadership of Anand Mahindra, M&M kicked off the business process re-

engineering (BPR) initiative that sought to transform the entire company—from manufacturing

to marketing to research. Massive changes were initiated. Many of these did not go down well

with unions and led to major unrest. It was a make or break for the company. But eventually,

the BPR worked. Now, it is viewed as a watershed event.

A few years later, the BPR exercise led to a surprise outcome—the Scorpio. BPR was

implemented in product development and a 13-seater new vehicle project was initiated. But as

the development team followed the new business processes and started talking to customers,

they stumbled upon the market need for a sports utility vehicle.

17

Another example of managerial innovation was Mahindra Finance. At a dealer meet,

Bharat Doshi, now the executive director finance and corporate affairs, felt the need for a

lending outfit for the company. His proposal to start a finance company was cleared. Mahindra

Finance, formed in 1991, is now a listed company with a market capitalization of around Rs

2,300 crore.

This shows that post liberalization, innovation into business activities started to happen at

M&M which is a very important strategic tool for success in international competitive market.

This has lead to the success of M&M even today.

M&M TODAY

The US$ 6.3 billion Mahindra Group is among the top 10 industrial houses in India.

Mahindra & Mahindra is the only Indian company among the top three tractor manufacturers in

the world.. Mahindra is the market leader in multi-utility vehicles in India. It made a milestone

entry into the passenger car segment after having international collaborations. Now M&M has

made an entry in two wheeler segment after acquiring Kinetic Engineering.

The Group has a leading presence in key sectors of the Indian economy, including the

financial services, trade and logistics, automotive components, information technology,

infrastructure development and After-Market.

With over 65 years of manufacturing experience, the Mahindra Group has built a strong

base in technology, engineering, marketing and distribution which are keys to its evolution as a

customer-centric organization. The Group has several state-of-the-art facilities in India and

overseas.

M&M has entered into partnerships with international companies like Renault SA,

France, and International Truck and Engine Corporation, USA. Forbes has ranked the Mahindra

Group in its Top 200 list of the World's Most Reputable Companies and in the Top 10 list of

Most Reputable Indian companies. Mahindra has recently been honored with the Bombay

Chamber Good Corporate Citizen Award for 2006-07.

18

Business of Mahindra Group

Automotive Sector

Mahindra Group is the market leader in utility vehicles in India since inception.

Mahindra also manufactures and markets utility vehicles and light commercial vehicles,

including three-wheelers. Some of the famous automobile brands of Mahindra are: Scorpio and

Bolero. Recently, Mahindra joined hands with French automobile major Renault to enter

passenger car segment. It has launched a car called Mahindra Renault Logan and Mahindra

Group's foray into the two-wheeler segment began with the acquisition of the business assets of

Kinetic Motor Company Ltd. (KMCL) extending Mahindra's heritage and pedigree into the two

wheeler space. The Two Wheeler Sector of Mahindra will design and market a full range of

scooters and motorcycles for the Indian market, establishing a robust and end-to-end two-

wheeler business in every segment of the industry. The company has a state-of-the-art

manufacturing facility at Pithampur, near Indore in Madhya Pradesh.

Its subsidiary companies engaged in automotive sectors are:

• Mahindra Renault Private Limited (MRPL)

• Mahindra Navistar Automotives Limited (MNAL)

• Mahindra Navistar Engines Private Limited (MNEPL)

Farm Equipment Sector

19

Mahindra is the largest producer of tractors in India and is among the top five tractor

brands in the world. It has its own state-of-the-art plants in India, USA, China and Australia,

and capacity to produce 1,50,000 tractors a year.

• Mahindra Gujarat Tractor

• Mahindra Agribusiness

• Mahindra Powerol

• Mahindra USA

• Mahindra Australia

• Mahindra China Tractors

Trade & Financial Services

Mahindra Intertrade Limited and its subsidiaries have specialized domain knowledge in

imports and exports of commodities, domestic trading, marketing and distribution services.

Mahindra Finance is one of the largest Non Banking Finance Companies in India with an asset

base of about Rs. 5000 crores. Mahindra Insurance Brokers offer Life and Non-life Insurance

plans to retail and corporate customers. Mahindra Steel Service Centre is the first steel service

centre in the organized sector in India.

• Mahindra & Mahindra Financial Services Ltd (Mahindra Finance)

• Mahindra Insurance Brokers Ltd.

• Mahindra Rural Housing Finance Ltd(MRHFL)

Infrastructure Development

Mahindra Group has interests in real estate, special economic zones, hospitality industry,

infrastructure development, project engineering consultancy and design. Mahindra Holidays &

Resorts is the leader in the lifetime holiday market in India. Mahindra Gesco is fastest growing

Construction Company in India. Mahindra World City is developing and promoting India's first

Integrated Business City. Mahindra Acres Consulting Engineers is a multidisciplinary

engineering consultancy organization.

20

• Mahindra Holidays & Resorts

• Mahindra Lifespaces Developers Limited

• Mahindra World City

• Mahindra Infrastructure Developers

• Acres Consulting Engineers

Information Technology

Mahindra Group entered into IT sector in 1986 when it formed a joint venture with

British Telecommunications plc. The company was called Mahindra-British Telecom. The

Company has recently changed its name to Tech Mahindra. Tech Mahindra is a leading

provider of telecommunication solution and service industry world-wide. It is India's 8th largest

software exporter.

• Tech Mahindra

• Bristlecone

Specialty Businesses

Mahindra Group companies such as Mahindra AshTech, Mahindra Defence, Spares

Business Unit and Mahindra Logistics are into Speciality Businesses. Mahindra AshTech

undertakes turnkey contract execution for Ash Slurry System and Travelling Water Screens.

Mahindra Defense Systems looks after the requirements of India's defence and security forces.

Mahindra Logistics provide complete logistics solutions to complex transportation needs of

clients across the world.

• Mumbai Mantra

• Mahindra Defense System

After Market Segment

21

The After-Market Sector focuses on the vast untapped potential in the after-market space

covering multi-brand pre-owned vehicles, servicing, spares and the financial instruments and

exchange platforms, which support this business ecosystem. This will create in the Organized

Sector a business ecosystem which mirrors the existing ecosystem for new vehicles.

• Mahindra Spares Business

• Mahindra First Choice

• Mahindra First Choice Wheels Ltd.

CHAPTER 4: COMPARISON

In the training I compare the major competitors with Mahindra ARJUN 605 DI.

1. Mahindra ARJUN 605 DI:-

Specifications

Make and Model Mahindra NE 457

Horse Power 60 H.P. Category

Bore and Stroke 94 x 115 mm

No of Cylinders 4

Cubic Capacity 3192 cc

Rated Speed 2100 rpm

22

Air CleanerDry type Air Cleaner to ensure completely dust free air supply to the engine.

With Choke indicator

Cooling System Water Cooled.

ClutchHeavy duty Duaphragm type "Makhhan Clutch" with Cerametallic liner

Optional : 11" x 11" Cerametallic Dual clutch (with Rev CRPTO)

Transmission

Fully Constant Mesh Gearbox for smooth "On the Go" shifting. 8 forward, 2

reverse speeds with high and low selector lever. Foot operated differential Lock.

Neutral safety switch.

Steering Mechanical Steering. Optional : Powersteering

Electrical Starting

and Lighting

12V / 88 AHBattery, Starter motor, Alternator with built in Regulator, Halogen

Head Lights, Rear Brake Lights, Parking Lights, Turning Lights, Plough Lamp,

Fuse box, Registration Lamp, Tail Lamp and Hazard warning lamp.

Brakes

Foot-operated, totally enclosed, self energizing, 7.5" mechanical dry disk

brakes. Latch provided for joining brake pedals together for road work. A hand

operated toggle lock type parking brake.

Hydraulic SystemHyTEC Hydraulics. Independent fully live, 2 lever control, Heavy duty Cat II

type, Three Point Linkage with Stabilizer Bars. Lift Capacity 1800 Kgs.

Power Take Off

Standard 6 Spline P.T.O.

540 PTO rpm

Optional : Reverse CRPTO with dual clutch

Instrumentation

"Car like" Dash board with well illuminated instrument panel. With Electronic Oil

pressure gauge, Electronic RPM / Hour meter, Battery charce Indicator, Water

temperature gauge, Turning, Park brake indicator, Air cleaner choke indicator.

Ergonomically placed controls & levers.

Tractor Weight Standard weight of the tractor : 2320 kgs. (approx)

Tyres and WheelsFront - 7.5 x 16 8PR

Rear - 16.9 x 28 12PR

2. Escort:-

Farmtrac 60 DX :-

Farmtrac 60 DX

23

World Class Tractor…

For First Class Farming

Specification

Performance data Powerful Engine Comfort

Rated engine

Power60 HP category

No. of cylinders 3

Bore x Stroke

(m.m)111.76x106.68

Transmission

Type of Gear

Box

Constant mesh

gears (8+2)

Road Speed

(At 2000 engine

R.P.M. with rear

tyre size

13.6x28)

Maximum speed 29.48 k.m./Hr.

Minimum speed 2.76 k.m./Hr.

P.T.O.

Speed

540 RPM (on

1600 engine

RPM) (Single

clutch

transmission)

Speed

(Optional)

540 RPM (on

1800 engine

RPM) (Duel

Hydraulics

Fully automatic depth & draft

control 1500 k.g.

weighing capacity at horizontal

linkage

Tyres

Front 6.00x16-8 PR

Rear 13.6x28-8PR

Best in 60 H.P. category.

It takes less time for more

ploughing.

Unbeatable pulling power

makes haulage of trolleys

easy.

Powerful hydraulic capacity

helps lift more goods and

plough deeper with higher

speed.

Comfortable deluxe seat

adjustable as per driver's height

and weigh.

Constant mesh gear box makes

gear shifting easy and

comfortable as in a car.

Tilted / rectangular foot platform

for comfortable driving.

Specially designed steering does

not make you tired even after

long hours of work.

Properly mounted halogen

headlight for maximum visibility

at night.

Smoke-less engine eliminates

the problem of smoke on

driver's face while driving.

Bigger fuel tank that last longer

after refueling.

24

Brakes

Fully sealed, water proof, dry disc

brakes.

World Class ADI*

World class tractor exported to

America, Europe, Asia, Africa,

Australia and New Zealand.

Fully sealed disc brake and front

axle for total safety and freedom

from recurring expenses.

Side opening bonnet for easy

servicing.

Heavy front axle ensures safety

by stopping the tractor- front from

lifting up.

Specially deigned adjustable front

axle facilities ease of use in every

situation.

Tractor starts only in Neutral. This

unique feature ensures extra

safety and prevents accidents.

For long lasting shine, special

coating using C.E.D. paint

technology.

High engine life due to

helical air passage to

engine which reduces

pressure on engine parts.

Re-entrant type piston

combustion chamber burns

diesel completely and

reduces consumption.

Ring carrier and side drain

pistons" help piston to be

re-used after first overhaul.

Side drain piston also

reduces oil consumption.

Cross-flow design blows

out burnt gases completely

and low temperature near

valves enhances durability.

Mechanical governor in

diesel pump saves fuel and

gives power with every

drop of diesel.

3. HMT:-

HMT 6522:-

25

SPECIFICATION

ENGINE

Make HMT AVL design

Type Direct Fuel Injection, Four stroke water cooled diesel engine

No. OF Cylinders 4

H.P. Range 60 H.P

Bore/Stroke 102mm/110 mm

Displacement Volume 3597 CC

Compression Ratio 17.4:1

Rated RPM 2200 RPM

Air Cleaner Dry type double stage

Cooling SystemForced water circulation with thermostat. Suction type steel Fan with

6 blades

Clutch Dual purpose having two dry friction plates, 1st for tractor travel, 2nd

for P.T.O. Shaft independent operation

TRANSMISSION

No. of Speeds 10 forward + 2 reverse with tyre size 16.9/14-28

High: Low:

H1 : 7.56 km/hr L1 : 1.99 km/hr

H2 : 11.17 km/hr L2 : 3.22 km/hr

H3 : 15.80 km/hr L3 : 5.43 km/hr

H4 : 19.65 km/hr L4 : 8.45 km/hr

H5 : 32.90 km/hr L5 : 9.70 km/hr

R : 13.20 km/hr R : 3.90 km/hr

STEERING Recirculating Ball type

BRAKES

Foot BrakeHydraulic, shoe type, operated by two pedals to break the wheels

simulataneously & independently. Latch lock provided

Hand Brake Band type mechanical control

P.T.O. Shaft Operation P.T.O. standard rpm 540 at 2000 engine rpm. Ground P.T.O.rpm 273.2

to 1331.6available through gearbox

HYDRAULIC POWERLIFT SYSTEM

26

Zetormatic hydraulic system with Automatic Draft, Position and Mixed Control. Provision for internal

and external circuit operation. Gear pump output 22 litres/minute at 120 kg/cm2 pressure. Lift

working pressure 160+20 kg/cm2. Lifting capacity at link ends 1700 kg

ELECTIRCAL SYSTEM

One no. Storage Battery of 12 Volt. 120 Ah.2.2 Kw self-starter motor, 12V, 36 Amp alternator

CAPACITIES

Fuel Tank 70 Litres

Engine Sump 12 Litres

Cooling System 13 Litres

Each Portal 1.9 liters

Steering 2.5 litres

F.I. Pump0.6 Litre

GEAR BOX

With lift operation in

plains25 litres

With lift operation in hilly

terrain

32 litres

TYRES

Front 6.5-20

Rear 16.9/14-28

DIMENSIONS

Length 3655 mm

Width 1910 mm

Wheel Base 2250 mm

Max. Height upto Top

exhaust

2340 mm

Height upto upper rim of

Steering wheel

1761 mm

Height of Drawbar 460 mm

Ground clearance 470 mm

27

Min. Turning radius With

breaking one wheel

3400 + 250 mm

WEIGHT

Without ballast 2785 kg

With full ballast 3525 kg

STANDARD ACCESSORIES

Set of Service Tools, Top Link, Fixed Drawbar, Tool Box, Front Toe Hook, Trailer Coupling, Deluxe

Seat, Blinkers, Plaugh lamp, Rear View Mirror

OPTIONAL ACCESSORIES

Rear Wheel Ballast Weight, Canopy, Front Bumper & Front Mudguard, Seven Point Socket for Trolley

Light

SPECIAL FEATURES:

Powerful AVL Engine

Floor type gear shifting lever

Heavy duty dual dutch with lining dia 295 mm

Hydrostatic Power Steering.(Optional)

4. Sonalika:-

DI 60 Senior:-

ENGINE SPECIFICATION

MODEL 4100 F

HP CATEGORY 60SAE

TYPE 4 Stroke, Direct Injection, OHV Diesel Engine

NO. OF CYLINDER 4

BORE & STROKE (mm) 100/110

DISPLACEMENT (CC) 3456 cc

COMPRESSION RATIO 17.4:1

28

RATED ENGINE RPM 2100 RPM

AIR CLEANER Oil Bath With Pre-cleaner And Glass Dust Collector

COOLING SYSTEM Water Cooled

FUEL INJECTION PUMP Mico Bosch

CLUTCH

TYPE Heavy Duty, Single Dry Plate, Dry

DIAMETER 280 MM

TRANSMISSION8 Forward, 2 Reverse Speeds With High And Low

Selector Levers.

GEAR SPEEDS (KM/HR) KM/H With Rear Tyre Size 16.9-28

1-L 2.84

2-L 3.74

3-L 6.22

4-L 9.16

1-H 11.19

2-H 14.73

3-H 24.50

4-H 36.07

R-L 3.68

R-H 15.67

PTO

TYPE 21 Spline Involute

RPM 1000 RPM Standard

BRAKES

Heavy Duty Self Energising, Water Sealed Disc

Brakes With Parking Brake For Additional Safety &

Screw

STEERING Heavy Duty Single Drop Arm Steering For High

Efficiency End Comfortable Drive

HYDRAULIC2 Lever, Automatic Position And Draft With Mix

Control

A. POSITION CONTROL To Hold Lower Links At Desired Heights

B. AUTOMATIC DRAFT CONTROL To Maintain Uniform Draft

C. MIX CONTROL For Simultaneous Use Of Position And Draft Controls

For Optimum Field Output

HYDRAULIC PUMPPlunger Type Pump Delivering 18.5 L/Min 163 Kg/-

cm2 At 1025 RPM

LINKAGE 3 Point Linkage Category - I Suitable For Category  -II

Type Pins.

LIFTING CAPACITY 1200Kg At End Of Lower Links

ELECTRICALS 12 Volt 88 AH, Battery, Starter Motor, Alternator

29

TYRES Front 6.50x20, 8 Ply Rating Standard

Rear 16.9x28, 12 Ply Rating Standard

INSTRUMENTS Hours Meter, Ammeter, Water Temp. Gauge & Oil

Pressure Gauge

DIMENSIONS

OVERALL LENGTH 3763 MM

OVERALL WIDTH 1840 MM

OVERALL HEIGHT 2360 MM

WHEEL BASE 2200 MM

MIN. GROUND CLEARANCE 410 MM

WEIGHT OF TRACTOR 2350

5. Tafe:-

Gajraj 5900 G4:-

T A F E G A J R A J 5 9 0 0 G 4

A G G R E G A T E S S P E C I F I C A T I O N S

Engine  

Make & Model S-433

HP Range 60

Type 4 stroke water cooled, Direct Injection Diesel

Cylinders 4

Cubic Capacity(cc) 3333

Rated RPM 2300

Air Cleaner 4 Stage cleaner

Bore/Stock (mm) In Line91.4/127

Clutch  

Type Dual Clutch (with Valeo F410 lining)

Size (mm) Primary 305, Secondary 254

30

Transmission  

Gear Box 8 forward and 2 Reverse

Max Road Speeds with 16.9 ×

28

size tyres (kmph)

 

Forward Speed 34

Reverse Speed 17.25

Final Reduction Epicyclic reduction at the rear axle end

Hydraulics  

Model & Type Mark III, 4 cylinder piston pump with SS

Max. Lifting Capacity (kgf) 2050

3 Point Linkage Cat II replaceable type

Controls Position, Draft and Response

Power Take off  

No. of splines 6

PTO Speed 540 @1790Engine rpm

Brakes  

Type High speed multi disc wet brakes.

  Hand operated parking brake

Steering  

Type Power steering

Wheels and Tyres  

Front 7.5x16

Rear 16.9x28

Electricals  

Battery 81 AMP 12 V maintenance free battery

Alternator 37 AMP

Starter Motor 2.2 KW solenoid

Plough Lamp Halogen Head light plough lamp

Dimensions and weight  

Overall length (mm) 3590

Overall width (mm) 2000

Overall Height (mm) 2450

Wheelbase (mm) 2050

31

Min Ground Clearance (mm) 420

Turning Circle Radius (mm)  

With Brakes 3270

without brakes 3630

Total Weight (Kg) 2235

Track Width (mm)  

Front 1422 to 1730 (adjutable in steps of 102 mm)

Rear 1422 to 2080 (adjustible from in steps of 102 mm)

Capacities  

Fuel Tank 70 litres

Engine Sump 8.5

Transmission cum Hydraulics 70 litres45

FAB FOR GAJRAJ 5900 G4

F E A T U R E S B E N E F I T S

Engine

Higher pulling power for haulage (>30tons) More

savings in Diesel consumption Ideal for all Heavy Duty

operations

4 stage air cleaner

Most efficient Air cleaning system Longer Engine Life

Easy Maintenance Better combustion, hence more

Engine power

Hydraulics

World famous Massey Ferguson Hydraulic System

Finger tip control Durable and Trouble-free operations.

Instrument Cluster

Alerts the operator against accidents/mistakes

Avoids possible damage to critical parts

High Speed Multi Disc Wet Brakes

Enhaced Braking efficiency

Most Suitable for wet land cultivation

safety in operations

Lest expenses on maintenance

Heavy Duty

Epicyclic Final Reduction at rear

axle

Load at the crown wheel & pinion is reduced

Longer life of gear box and crown wheel & pinion

Extremely low maintenance cost

Noiseless and trouble free operations

High Torque at wheels and heavy field operations

32

CHAPTER 5: OBJECTIVE

Objective of the Projected Study:-

1. To study the Agri Market.

2. To study the tractors market.

3. Study of customer perception of tractors.

4. To ascertain the existing marketing strategies of mahindra tractors.

5. To structure the company profile for mahindra tractors.

6. To understand various products and services offered by mahindra tractor.

7. To ascertain the customer expectation regarding the mahindra tractors.

33

CHAPTER 6: RESEARCH METHODOLOGY

The Research Methodology used by me for the purpose of this project is as follows:-

Research Design:-

The research design used here for this project is a combination of Exploratory &

Explanatory designs. First a general know about of the various tractors and their market

structure. Then a personal interaction with the people concerned is made to figure out the

results.

Data Collection Method:-

According to the needed research of the project; I pursued both primary & secondary data

collection methods. I have used Agri web sites related to tractors, some publications on the

net, & tractor information broacher for secondary data collection. To ensure the accuracy of the

results the primary data collection method used is the structured interview method.

Sampling:-

34

The sampling units in my project are Consumers. The sample size was small by

following the convenience sampling method. There were queries for the persons interacted &

the questionnaire has been attached at last.

SAMPLING SIZE

The sample size of my research is 100 consumers. Large samples give more reliable

results that is why I tried my best to cover more users (consumers) in Bathinda.

Sample Size — 100

Sample Unit – users (consumer)

Area of Survey — Bathinda.

Data Availability: Data has been collected from the Users (Consumer) and Dealer of Indian

Tractor Company.

Primary data:-

Preparing questionnaire which was distributed among consumers to get feedback.

In this survey the more importance has been given to primary data than secondary data

because it is more reliable.

Secondary data:-

The various sources for secondary data like books, pamphlets and small note sheets

from the company. The secondary data was collected after choosing the topic, which is very

practical to the research. It was collected from the company brochures and documents. This

has been used in the profile of the organization. These types of Surveys are expensive and

labour-intensive.

Training Organisation: Indian Tractor Company, Bathinda

Project Guide: Mr. Vijay Kumar, Sales Manager

The Research stands for:-

35

1. To know how of the actual phenomenon occurring & exploring the new ideas

with a clear & precise insight.

2. To test the hypothesis with being variables to be compared within their

relationship.

Data Analysis & Interpretation:-

The statistical tools used by me are mainly average, Percentage, & comparisons etc. I

would like to give brief points about

1. Questionnaire: - The questionnaires are given to respondent with no

pressurization at all, i.e. he/she is free to provide the information whatever the concern is.

One thing to be kept in mind those personal questions apart from name, address etc.

should not be included.

2. Direct Interviews: - The direct interviews are one up against all the data

collection tools just because one can judge that what a person is telling to the surveyor.

Although it is time consuming but the information gathered is of much more weightage

than others.

3. Sampling design, Procedure & Sample size:-A sample is always a part of the

desired universe & it should represent each & every aspect of the study being conducted.

The only thing is that the sample being chosen is of relevance & accurate source of

information. My sampling design is based on random sampling because each element

gets probability to be included & all choices made are independent of each other.

Need for study:

1. To get a practical outlook about theories learnt during the academic year.

2. To get knowledge of the present on going in consumer behavior.

36

CHAPTER 7: INTERPRETATION AND ANALYSIS

1. Age Group

20-30 Years 26

30-40 Years 42

40-50 Year 21

50 Above 11

37

Age

No.

of

Respondents

0

10

20

30

40

50

20-30Years

30-40Years

40-50Year

50Above

20-30 Years

30-40 Years

40-50 Year

50 Above

With the results of the analysis, it is clear that most of the tractor users are from

the age 30-40.

2. Income Group

10000-20000 26

20000-30000 42

30000-40000 21

40000 Above 11

0

10

20

30

40

50

No. of Persons

10000-20000

20000-30000

30000-40000

40000Above

Income

10000-20000

20000-30000

30000-40000

40000 Above

The main group is the one who has the salary between 20000 and 30000.

3. You belong to the following category of the society?

Professional (Farmer) 39

Student 18

Govt. Service 21

Businessman 22

38

05

10152025303540

No. of Persons

Professional Student Govt. Service Businessman

Category of Society

Professional

Student

Govt. Service

Businessman

Tractor is the need of the farmers and businessman too, thereby this category has maximum

ownership of tractor alongwith Govt. Service man also.

39

4. . Your Educational Background

Table 4:

Matric 44

Higher Secondary 42

Graduate 12

Post Graduate 2

Graph4:

Interpretation: Maximum respondents are matric and higher secondary ones i.e, 44% and 42 %

40

5. Which company tractor you have in 60 HP segment

Table 5:

MAHINDRA 39

SWARAJ 26

ESCORT 11

FORD 17

JOHN DEERE 4

SONALIKA 3

Graph 5:

41

From the analysis it has been clear that most of the Indian People Segment like to purchase Mahindra tractors. We have concluded the survey and asked the question from 100 candidates and 39 responded that they have Mahindra tractors.

6. Which tractor of your mentioned company do you have?

Arjun 605 di 32

Farmtrac 60 DX 16

HMT 6522 23

Sonalika DI 60 Senior 13

Tafe Gajraj 5900 g4 16

Mahindra Arjun has topped the list, people are now changing their trends and started

opting for HMT and Farmtrac. Alongwith this Sonalika 60 is also in the list making good

market with its style and elegancy.

42

7. How long you have been operating this tractor?

0-1 Yrs 39

1-3 Yra 32

3-5 Yrs 18

More than 5 Yrs 11

0-1 Yrs39%

1-3 Yra32%

3-5 Yrs18%

More than 5 Yrs

11%

0-1 Yrs

1-3 Yra

3-5 Yrs

More than 5 Yrs

Interpretation: Out of 100 respondents, 11% of the respondents are operating this tractor for

more than 5 years, 18 % are for 3-5 years, 32% for 1-3 years and the rest 39 % for 1 years.

8. What is the purpose of using this tractor?

Table 8:

Business 12

Heavy Works 23

farming 62

Family Purpose 3

43

Graph 8:

Interpretation: Most of the respondents use the tractors for farming purpose that is 62 % ,for

heavy works 23 % and least for family purpose.

9. Are you aware of all the models of tractors (60 HP) made available to

people of this company?

Yes 94

No 6

Yes94%

No6%

Yes

No

Respondents have better knowledge of all the models of tractor of 60 HP segment made

available to people of this company.

44

10. How do you rate your tractor as compared to tractor of other company?

(a) Very Good (b) Good (c) Poor

Please mark the reason for you response

1. Fuel Efficiency

2. Price

3. Brand image

4. Pick-Up

5. Spare parts availability

6. Any other

V.Good69%

Good23%

Poor8%

V.Good

Good

Poor

Fuel Eff iciency14%

Price18%

Any Other4%

Spare Parts Availibility

21%

Pick Up15% Brand Image

28%

Fuel Efficiency

Price

Brand Image

Pick Up

Spare Parts Availibility

Any Other

Every respondent have better and positive views about the models they have.

45

11. Have you ever been recommended your company’s tractor to any one?

(a) Yes (b) No

If yes then to whom 1. Friends

2. Relatives

3. Colleagues

4. Any other

Yes76%

No24%

Yes

No

Friends31%

Relatives23%

Colleagues27%

Any Other19%

Friends

Relatives

Colleagues

Any Other

Many of the respondents have recommended their tractor to the one they are in

relation to like their friends mostly other than relative and colleagues.

46

12. Have you ever heard any complaint of the make of this company or ever

has faced any of the problems with your tractor?

Yes28%

No72%

Yes

No

If yes what kind

Mileage 29

Price 18

Pick-Up 14

Shockers 20

Any Other 19

Pick-Up14%

Shockers20%

Any Other19%

Mileage29%

Price18%

Mileage

Price

Pick-Up

Shockers

Any Other

Problems are there with every product, nothing is 100 %, thereby it variate the choices

related to the buying decision and other offers. 47

PRODUCT LIFE CYCLE OF MAHINDRA TRACTOR

Product life cycle of tractor is of 3 years. To say that a product has a life cycle asserts

four things. Products have a limited life. Product sales pass through distance stages, each posing

different challenges, opportunities and problems to the seller. Profits rise and fall at different

stages of the product life cycle. Product requires different marketing, financial, manufacturing,

purchasing and human resource strategies in each life cycle stage.

INTRODUCTION STAGE

In tractor business name plays very important role till that time the name is not known or

not have place in market, tractor will not sale. In the introduction stage focus is given on sales

rather than profit. For the purpose of name people are made much aware about launching of the

product so as to get maximum number of customers. Marketing strategies is based on the

features of tractors. In this stage mahindra tries to expand its market share.

GROWTH STAGE

In growth stage focus is given on improving the product quality and adds new product

features and new policies so that it can enter new market segment. Which will be CENTRAL

(Madhya Pradesh & Rajasthan) EAST (Bihar, West Bengal, Orissa & Assam) SOUTH

(Andhra Pradesh, Tamil Nadu, Karnataka & Kerala)

Focus is also given on increasing distribution coverage and entering a new distribution

channels. Then advertising strategies will shift from product awareness advertising to product-

preference advertising.

MATURITY STAGE

In this stage focus is given to expand number of brands users by

Converting non-users into users.

Entering new market segments.

48

Winning competitors customers.

Convince current users to increase use of life insurance and also other types of

insurance so as to minimize their risks.

Market mix of product is also modified in this stage such as Price, Distribution,

Advertising, Sales promotion, Personal selling, Services.

SEGMENTATION & TARGETING

HP SEGMENTATION TARGETED CUSTOMER

BELOW 30 NORTH UTTAR PRADESH

WEST GUJARAT

ABOVE 30 NORTH PUNJAB

NORTH HARYANA

WEST MAHARASHTRA

FACTORS CONSIDERING SEGEMENTATION AND TARGETING

• Agriculture Income

• Income Level

• Soil (Fertility)

• Population

• Competitors

• Climate

• Infrastructure

49

FINDINGS

With the results of the analysis, it is clear that most of the tractor users are from the

age 30-40. The main group is the one who has the salary between 20000 and 30000. Tractor is

the need of the farmers and businessman too, thereby this category has maximum ownership

of tractors alongwith Govt. Service man also. Maximum respondents are matric and higher

secondary i.e, 42 % and 44 % .

Mahindra has topped the list, escort also doing the fine, right now the market is of

Mahindra, they are launchin good models with good features and performances.

Sonalika also trying its best to capture the market of tractor of 60 HP with their latest

models.Mahindra Arjun has topped the list, people are now changing their trends and started

opting for HMT and Farmtrac. Alongwith this Sonalika is also in the list making good market

with its style and elegancy. The trend of using tractors of 60 HP have now started thereby most

of the users are from the last 2-3 years. The tractor market has started taking its shape and

people now looking for big heavy vehicles for their solid performance and style.

Most of the respondents use the tractors’s for Business purpose that is 12 % and more in

case of farming that is62 %, for heavy works 23 % and least for family purpose. Respondents

have better knowledge of all the models of tractors made available to people of this company.

Every respondents have better and positive views about the models they have. Many of

the respondents have recommended their tractor to the one they are in relation to like their

friends mostly other than relative and colleagues. Problems are there with every product,

nothing is 100 %, thereby it variate the choices related to the buying decision and other offers.

50

SUGGESTIONS

Companies have to come with an idea to launch low cost tractors so that it can reach to

each and every class of the society.

Average or mileage of the tractor is the main criteria for the sale of tractor, petrol and

Diesel prices are hiking like anything, companies have to provide a technology for better

mileage and less fuel consumption.

Mostly operating by the farmers and businessman.

Company should have to adopt well knowledge marketing executives so that they can

explain and provide comparison of tractor’s with other company’s.

Company should have to install Test Drive Camps so that they experience their vehicles

and like to buy. Company should have to arrange meals for the demonstration of power.

51

SUMMARISATION

For over two decades, Mahindra Tractors is the undisputed leader of the Indian tractor

market, which is the largest tractor market in the world. A division of a US$ 6 billion

conglomerate, Mahindra & Mahindra, we began as a joint venture with International Harvester.

And with that began a new era in power, control and reliability in farm equipment

manufacturing. Today, with the largest manufacturing set up in India, Mahindra Tractors is

among the top three players in the global market. And as we step into the 25th year of

excellence, we continue on our journey of cultivating golden harvests across the globe.

In the year 2003, Mahindra Tractors bagged the Deming Prize, a global honor for quality

practices. Three years later, the company was eligible to qualify for the Japan Quality Medal,

the highest honor for excellence in Total Quality Management practices. In 2007, Mahindra

Tractors became one of the 20 companies worldwide to receive this rare honor. Till date, we are

the only tractor company in the world to bag this prestigious award.

M&M has one tractor manufacturing plant in China, three assembly plants in the United

States and one at Brisbane, Australia. It has made strategic acquisitions across the globe

including Stokes Forgings (UK), Jeco Holding AG (Germany) and Schoneweiss & Co GmbH

(Germany). Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA

Inc. and Mahindra South Africa.

In the US market, Mahindra USA, a subsidiary company of Mahindra tractors, sells more

than 10,000 tractors annually. A nationwide network of over 300 dealers, total product support

and prompt after sales service ensure that every tractor functions for years without any hassles.

Mahindra Tractors, the 3rd largest tractor manufacturer in the world, notched up yet

another first in the tractor industry by delivering 1232 tractors on Independence Day - August

15, 2007

CONCLUSION

52

Companies have to provide better facilities like free testing camps and gifts so as to raise

the sales and promotion of the tractor models.

Companies are launching their new models of tractors to make the consumer feel free

from the choices.

Being in the market of hype competition motorbike companies making brand

positioning of their models. They used to put free test camps and use actors and

actresses.

Checking complaints have now become the first priority of the company, for that they

install call centers to rectify those problems.

At present Mahindra Arjun sales are high due to their better service providing factor and

rectifying problems.

Other companies like Escort and Sonalika have to look forward and to follow the above

all suggestions for making better market for their tractors.

53

SWOT ANALYSIS

STRENGTH:

Over the years the company has emerged as one of the top players in the world in terms of

number of tractors sold. This gives a clear indication that the company's market share is one

of its biggest strengths.

The company's ability to introduce new products in the market and to generate sales from

those new products is a major strength. The reason being that this is very essential for any

company, for its survival in the long run.

The company has established its brand name in other countries of the world as well.

WEAKNESS:

Tough Competition

Expensive

OPPORTUNITIES:

By introducing the benefits and importance of the tractor to every group, companies can

evolve more.

THREATS:

The company has a history of having invested in unrelated diversifications such as telecom,

holiday and resort inns, financial services, etc. which it has hived off as subsidiaries from

time to time when these turned unmanageable. This is a cause for concern as such

diversifications could divert the company's attention from its core business. It is a dangerous

tendency as it leads to destruction of shareholders value.

With effect of the competition the market may not get shrunk.

54

LIMITATIONS

Nothing is perfect in this mandate world and this study is no exception. Given below are

the limitations of the study so that the findings of the study may be understood in their right

perspective.

1. The result of this research cannot be termed as making a fair representation of the

perception of the population.

2. Study was confined to the city of Bathinda.

3. Sample size taken was 100 respondents, the result might have varied had there been a

larger sample size.

4. It is very much possible that some of the respondents may have given the incorrect

information.

5. The last but the most important point to that survey was carried through Questionnaire

and the Questions were based on perception. Most important is positioning. But there

may be certain aspects not taken into consideration.

55

BIBLIOGRAPHY

BOOKS AND JOURNALS

Amsden, A. H. (1989), Asia's Next Giant, South Korea and Late Industrialization (New

York, Oxford University Press).

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Internet Resources

http://www.sonalikaindia.com

http://www.tafe.com

http://www.escortindia.com

http://www.automobileindiamahindra-&-mahindra/

http://www.mahindra.com/OurBusinesses/automobile-manufacturer.html

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QUESTIONNAIRE

1. Age Group

A) 20-30 B) 30-40 C) 40-50 D) 40 Above

2. Income Group

A) 10000-20000 B) 20000-30000 C) 30000-40000

D) 40000 Above

3. You belong to the following category of the society?

(a) Farmer (b) Student (c) Govt. Service

(d) Businessman

4. Your Educational Background

(a) Matric (b) Higher Secondary (c) Graduate

(d) Post Graduate

5. Which company tractor you have in large tractor segment?

Mahindra Swaraj

Escort Ford

John deere Sonalika

6. Which tractor of your mentioned company do you have?

(a) Arjun (b) escort (c) tafe

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(d) sonalika (e)HMT

7. How long you have been operating this tractor?

(a) 0-1 Yrs (b) 1-3 (c) 3-5 (d) More than 5 Yrs

8. What is the purpose of using this tractor?

(a) Business (b) Heavy Works

(c) farming (d) Family Purpose

9. Are you aware of all the models of tractor of 60 HP made available to people of this

company?

(a) Yes (b) No

10. How do you rate your tractor as compared to tractor of other company?

(a) Very Good (b) Good (c) Poor

Please mark the reason for you response

7. Fuel Efficiency

8. Price

9. Brand image

10. Pick-Up

11. Spare parts availability

12. Any other

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11. Have you ever been recommended your company’s tractor to any one?

(a) Yes (b) No

If yes then to whom 1. Friends

2. Relatives

3. Colleagues

4. Any other

12. Have you ever heard any complaint of the make of this company or ever has faced any

of the problems with your tractor?

(a) Yes (b) No

If yes what kind

1. Mileage

2. Price

3. Pick-up

4. Shockers

5. Any other

59