vanraj tractors
TRANSCRIPT
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VANRAJ MINI-TRACTORSIS SMALL BEAUTIFUL?
PRESENTED BY;
SURYA PRAKASH (12)
SAURABH SRIVASTAVA (16)
VIKAS KUMAR (39)
IRFAN SHAHID (48)
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Case Situation
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Company
The Company named M/s Pramal Farmatics Pvt. Ltd owned by
three technopreneurs Jagdip Trivedi, Jayanti Bhai Patel andPragnesh Patel, manufacturing facilities situated near Anand
Gujarat
Initially it was a material handling company
Which is now ready to manufacture and market the small 10HP tractor under the brand name of Vanraj.
Company got the certification of Central Motor Vehicle Rules(CMVR) from Central Farm Machinery Testing and Training
Institute (Budhni, MP).
Company had good technical and professional experience
before entering in this business.
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Competition
Company is entering in the new segment and this segment
was not catered by any company
There was not any direct competition but it was in the very
competitive Industry where various major players like
Mahindra & Mahindra, TAFE, Punjab Tractors, Escortsand Sonalika were there.
There were three mini tractor manufacturer but they were
not the refined product that is why they are not direct
competition.
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Customers
They are going to enter in the new segment which was not
catered by any company as such that is why there is no
clear defined customers
Usage and the design of the tractor has some implicationabout the customers they may be the Small and marginal
farmers, horticulture farmers, material handling customers
They have also identified the large farmers as segments.
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PEST ANALYSIS
This case is not too much influenced with politics
Economical the company was the small scale industry and thecustomers identified were small and marginal, large andhorticulturist etc.
Company got funding from the government wing for thetechnological refinement
Sociological factors - product was focused to cater small usagewhich was not tackled by the big tractors.
Most of the consumers were small and marginal farmers. For thebuying the tractor they consider the HP as the main factor butbeside this there are other factors like it is a status symbol also itis the sign of prosperity also tractor purchase also has lot ofother social significance.
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CONT.. Technological aspect
The marginal farmers are still dependent on the bullocks and
other manual systems.
Farm mechanisation has lot of value in terms of the upliftment of
the poor and increasing the productivity
In tractor industry HP is the main criteria and most of the
technological aspects are covered in this case
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MARKET SEGMENTATIONDemographicsegmentation
Geographical/Segmentation based on
Topography of soil
Product segmentation(Engine horse power)
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Demographic segmentation
On the basis of land holdings:
Small & marginal farmers: In this category the level of
mechanisation is low and they used bullocks for tilling andagricultural operations. Moreover they had small land for
farming and the Vanraj tractor was focussing this segment
as its target.
Large farmers: This section was catered by all the big
players as they have large area for farming and the farms
were highly mechanised. They usually preferred tractors
having HP more than 20.
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CONT.
On the basis of type of occupation:
Industry: Industry wise they are divided into small scale
firm, national, and multinational players.
Horticulture: This segment of cultivation requires specificdesign which would facilitate the cultivation process. It
requires intercultural operations like removing weeds and
creation of soil. These functions could be well performed
by tractors having three wheel convertible features
which is observed in Vanraj tractors.
hi l/ i
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Geographical/ Segmentation
based on Topography of soil
North India: The regions like Punjab, UttarPradesh, and Haryana were dominant in tractor
sales. As the soil is alluvial they require tractors
with less HP.
South and West India: In the regions like Gujarat,Maharashtra and Madhya Pradesh the soil is
harder type- Laterite and black soil where more HP
tractors are required
d i
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Product segmentation
(Engine horse power)
Mini tractor: The tractors which are having less than 20 HP
are considered to be the mini tractors and Vanraj being one ofthem.
Small tractor: Tractors having horsepower between 21 and 30
HP are considered as small tractors.
Medium tractor: Tractors having horse power between 31 and40 HP were included in this section.
Large tractor: Tractors having horse power more than 50 HPwere included in this section.
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The segmentation on the basis of
land holdings is important as
This segment is not served by big players, as they are
interested in more margins.
In this segment about 82% of the people do not have
tractors, thus having more scope for future.
Land holdings are smaller, for small farmers it is 0.4 hac &
for marginal farmers it is 1.4 hac. Thus they need a tractor
which is not bigger in size.
The Vanraj tractors are of 10 HP and hence it would be bestsuitable for small and marginal farmers due to its low cost
and lesser fuel consumption with more utility and less
maintenance.