Mahindra Tractors

A PROJECT REPORT ONMAHINDRA TRACTORS

Project report submitted in partial fulfillment of requirements for the award of the degree of Bachelor in Business Management of MATS University, Raipur.

Under the guidance of: Submitted By:

Mr. Dinesh Kumar Soni Gaurav Shukla

Coordinator Roll No.

School of Management Studies 5th sem

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 Bachelor in Business Management under the guidance of Mr. DINESH KUMAR SONI. 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)

Name: Gaurav Shukla

Roll no.

BBM 5th sem

EXAMINER CERTIFICATION

The project report of

Gaurav Shukla

MAHINDRA TRACTORS

Is approved and is acceptable in quality and form.

Internal Examiner. External Examiner

COLLEGE CERTIFICATIONThis is to certify that project report entitled MAHINDRA TRACTORS is submitted in partial fulfillment of the requirement for the degree of Bachelor in Business Management of MATS University, Raipur. Gaurav Shukla has worked under my supervision and guidance and that no part of this report has been submitted for the award of any other degree , diploma, fellowship or other similar titles or prizes and that the work has not been published in any journal or magazine.

Certified

Mr. Dinesh Kumar Soni

MBA, M.com, M Phil,

SET, ICWAI (In).

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 parents without whose inspiration and monetary aid this project was impossible.

CONTENTS

PART – I

• COMPANY PROFILE

• BRIEF INTRODUCTION OF MAHINDRA GROUP

• HISTORY OF COMPANY

PART – II

• INTRODUCTION TO FARM EQUIPMENT SECTOR

• MAHINDRA TRACTOR’S

• OBJECTS OF STUDY

• LIMITATION OF STUDY

• RESEARCH AND METHODOLOGY

• INTRODUCTION TO MARKETING STRATEGY

• MARKETING STRATEGY OF MAHINDRA TRACTOR

• SUMMARISATION

• CONCLUSION PART – III

• BIBILOGRAPHY

• ANNEXURES

MAHINDRA GROUP

INTRODUCTION

The US $6 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’s Farm Equipment Sector has recently won the Japan Quality Medal, the only tractor company worldwide to be bestowed this honor. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. Mahindra is the market leader in multi-utility vehicles in India. It made a milestone entry into the passenger car segment with Logan. The Group has a leading presence in key sectors of the Indian economy, including the financial services, trade and logistics, automotive components, information technology, and infrastructure development.

With over 62 years of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution which are key to its evolution as a customer-centric organization. The Group employs over 50,000 people and has several state-of-the-art facilities in India and overseas. The Mahindra Group has ambitious global aspirations and has a presence on five continents. Mahindra products are today available on every continent except Antarctica

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 honoured with the Bombay Chamber Good Corporate Citizen Award for 2006-07.

BRIEF INTRO OF MAHINDRA GROUP

MAHINDRA FAMILY

J.C. & K.C. Mahindra

K.C.Mahindra J.C.Mahindra

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.

J.C. 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.

K.C. Mahindra 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.

Mr. Keshub Mahindra - Chairman of Mahindra & Mahindra Ltd.

Mr. Keshub Mahindra, Chairman of Mahindra & Mahindra Ltd., is a graduate from Wharton, University of Pennsylvania, USA. After joining the Company in 1947, he became the Chairman in 1963. Over five decades, his continuous involvement has enabled the Mahindra Group to reach where it is today.

He is a well-known philanthropist who redefined corporate governance by effectively channelising funds into the social sector. He has contributed immensely to the cause of building ethical corporations in India and is currently a part of numerous prestigious

Organizations and committees. He was also appointed by the Government of India to serve on a number of Committees including the Sachar Commission on Company Law & MRTP; Central Advisory Council of Industries etc. Today, he is an icon, an inspiring business leader and a distinguished corporate citizen that everyone looks up to. Mr. Keshub Mahindra is on the Board of Directors of the following organizations:

• Chairman of Mahindra Holdings & Finance Limited, Mahindra Ugine Steel Company Limited

• Chairman of the Board of Governors of Mahindra United World College of India

• Vice-Chairman of Housing Development Finance Corp. Ltd.

• Chairman of Kema Services (International) Private Ltd.

• Chairman, Tech Mahindra Foundation

• Chairman, Mahindra Holdings Limited

Mr. Anand G. Mahindra

Mr. Anand G. Mahindra, Vice Chairman and Managing Director of Mahindra & Mahindra Ltd. – one of India’s largest and most respected business houses - graduated from Harvard College, Cambridge, Massachusetts, and Magna cum Laude. In 1981 he secured an MBA degree from the Harvard Business School, Boston, Massachusetts. He returned to India that year and joined Mahindra Ugine Steel Company Ltd (MUSCO), the country’s foremost producer of specialty steels, as Executive Assistant to the Finance Director. In 1989 he was appointed President and Deputy Managing Director of the company.

Group Overview

The US $6.7 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra is the market leader in multi-utility vehicles in India It made a milestone entry into the passenger car segment with the Logan. Mahindra & Mahindra is the only Indian company among the top tractor brands in the world. The Group has a leading presence in key sectors of the Indian economy, including the financial services, trade, retail and logistics, automotive components, after-market, information technology and infrastructure development. Mahindra has recently made an entry in the two-wheeler segment which will see the company emerge as a full-range player with a presence in almost every segment of the automobile industry.Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the only tractor company worldwide to be bestowed this honour. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its Global 200: The World's Best Corporate Reputations list.

Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08.

• Core Purpose

Mr. Anand G. Mahindra SAYS

‘We don't have a group-wide mission statement. Our Core Purpose is what makes all of us want to get up and come to work in the morning.'

The Founders of our nation and of our Company passionately believed this. We will prove them right by believing in ourselves and by making Mahindra & Mahindra Limited known world-wide for the quality of its products and services.

• Core Values

Core Values are influenced by past, tempered by present, and will shape future. They are an amalgam of what they have been, what they are and what they want to be.

Mahindra group explains their core value in following terms:

• Good Corporate Citizenship

As in the past, we will continue to seek long term success, which is in alignment with our country's needs. We will do this without compromising ethical business standards.

• Professionalism

We have always sought the best people for the job and given them the freedom and the opportunity to grow. We will continue to do so. We will support innovation and well reasoned risk taking, but will demand performance.

• Customer First

We exist and prosper only because of the customer. We will respond to the changing needs and expectations of our customers speedily, courteously and effectively.

• Quality Focus

Quality is the key to delivering value for money to our customers. We will make quality a driving value in our work, in our products and in our interactions with others. We will do it 'First Time Right'.

• Dignity of the Individual

We will value individual dignity, uphold the right to express disagreement and respect the time and efforts of others. Through our actions, we will nurture fairness, trust and transparency. These values are the compass that will guide our actions, both personal and corporate.

• Corporate Governance

The goal of any system of governance is to achieve the best performance within the overall context of the prevalent economic environment, so as to secure maximum benefit for all the stakeholders. For this to be achieved, governance cannot only be systems, processes and metrics. It also has to integrate within itself the beliefs, values, culture and ethics of an organization, ultimately

Leading to the cornerstones of transparency and accountability, which is what good governance, is all about.

In the recent past, corporate India has been flooded with several prescriptive principles of governance. Ironically, the corporate failures in developed countries regulated by highly disciplined capital markets have only brought home the stark reality that good governance can never be the Result only of legislation. It must have real commitment from the management.

Shareholders are aware that the Mahindra Companies have been associated with good governance even before corporate were faced with legislation and a set of regulations. The Company has formally enunciated its own governance practices by way of a Code of Corporate Governance. This Code seeks to serve as a reminder of the underlying principles governing the conduct of our businesses. They have a code of conduct that acts as a guide to everyone in the organization.

Code of conduct is different for directors, management, employees.

• CODE OF CONDUCT FOR DIRECTORS

• CODE FOR SENIOR MANAGEMENT AND EMPLOYEES

The Group at a Glance Automotive Domestic Operations International Operations Mahindra Renault Pvt. Ltd. Mahindra International

After-Market Sector Mahindra Spares Business Mahindra First Choice Mahindra First Choice Wheels Ltd.

Farm Equipment Sector Domestic Operations International Operations Mahindra Gujarat Tractor Mahindra Agribusiness Mahindra Powerol Mahindra USA Mahindra Australia Mahindra China Tractors Financial Services Sector

Mahindra & Mahindra Financial Services Ltd Mahindra Insurance Brokers Ltd. Mahindra Rural Housing Finance Ltd (MRHFL) Infrastructure Development Sector Mahindra Holidays & Resorts Mahindra Life spaces Developers Limited Mahindra World City Mahindra Infrastructure Developers Acres Consulting Engineers Information Technology Sector Tech Mahindra Bristlecone Mahindra Logisoft Mahindra 2 Wheelers Mahindra Systech Forgings • Mahindra Forgings Limited - India • Mahindra Forgings Europe - Ag - GSA - Schonoweiss & Co GMBH - JECO - Stokes UK - Falkenroth

Engineering Services • Mahindra Enfineering • Engines Engineering Italy • Mahindra Aerospace Stampings Steel Ferrites Contract Sourcing Telematics Composites Castings Gears

• Mahindra Sar Transmissions • Metalcastello Italy Specialty Businesses Mahindra Odyssey Mumbai Mantra Mahindra Defence System Mahindra Special Services Group

Trade, Retail & Logistics

Mahindra Intertrade Mahindra Steel Service Center Mahindra Middle East Electrical Steel Service Centre Mahindra Logistics Ltd. Mahindra Retail

The Management

• Board of Directors The Board of Directors of the Company has, as its members, eminent persons from Industry, Finance, Investment and other branches of business, who bring diverse experience and expertise to the Board. The Company's current Board of Directors is as follows:

NAME DESIGNATION 1. Mr. Keshub Mahindra Chairman

2. Mr. Anand G. Mahindra Vice Chairman and Managing Director 3. Deepak Shantilal Parekh Director 4. Nadir Burjorji Godrej Director

5. M. M. Murugappan Director

6. Bharat Narotam Doshi Executive Director & Group Chief Financial Officer (Group CFO)

7. Arun Kumar Nanda Executive Director & Secretary

8. Narayanan Vaghul Director

9. Dr. Ashok Sekhar Ganguly Director 10. R. K. Kulkarni Director 11. Anupam Pradip Puri Director 12. Thomas Mathew T. Nominee of LIC

• Committees of Board

The Board of Directors as the governing body of the Company meets on an average of six times in a year depending on the exigencies to decide on crucial matters of policy and business. In order to facilitate operational independence, timely direction and supervision within the framework of the general policy of the Company, certain Committees of the Board have been constituted. Currently, the Board has the following Committees:

A. Remuneration/Compensation CommitteeB Audit CommitteeC Share Transfer and Shareholders/Investors Grievance CommitteeD Research & Development CommitteeE Loans & Investment Committee

Apart from the Share Transfer and Shareholders/Investors Grievance Committee and the Loans & Investment Committee, the rest of the Committees are chaired by Independent Directors.

A. Remuneration/Compensation Committee

The role of the Remuneration/Compensation Committee is to review market practices and to decide on remuneration packages applicable to the Vice Chairman & Managing Director, the Executive Directors and Senior Executives of the Company. During the course of its review, the Committee also decides on the commission and/or other incentives payable, taking into account the individual's performance as well as that of the Company. The Committee has formulated and administers the Mahindra & Mahindra Limited Employees Stock Option Scheme and also attends to such other matters as may be prescribed from time to time.

The Remuneration/Compensation Committee consists of the following Directors:

• Narayanan Vaghul (Chairman)• Mr. Keshub Mahindra• Nadir B. Godrej• M. M. Murugappan

B. Audit Committee

This Committee consists solely of Independent Directors. The terms of reference of this Committee are very wide. Besides having access to all the required information from within the Company, the Committee can obtain external professional advice whenever required. The Committee acts as a link between the

Statutory and the Internal Auditors and the Board of Directors of the Company. It is authorized to select and establish accounting policies, review reports of the Statutory and the Internal Auditors and meet with them to discuss their findings, suggestions and other related matters. The Committee is empowered to review the remuneration payable to the Statutory Auditors and to recommend a change in Auditors, if felt necessary.

It is also empowered to review Financial Statements and Investments of unlisted subsidiary companies, management discussion & analysis, material individual transactions with related parties not in the normal course of business or which are not on an arm’s length basis. Generally all items listed in Clause 49 II D of the Listing Agreement are covered in the terms of reference. The Audit Committee has been granted powers as prescribed under Clause 49 II C.

The Audit Committee consists of the following Directors:

• Deepak S. Parekh (Chairman)• Nadir B. Godrej• M. M. Murugappan• R. K. Kulkarni

C.Share Transfer and Shareholders/Investors Grievance Committee

The Company's Share Transfer and Shareholders/Investors Grievance Committee functions under the Chairmanship ofMr. Keshub Mahindra, Chairman of the Board and a Non-Executive Director.

The Committee meets as and when required, to deal with matters relating to transfers/ transmissions of shares and monitors redressal of complaints from shareholders relating to transfers, non-receipt of balance-sheet, non-receipt of dividends declared etc. With a view to expediting the process of share transfers, the Executive Director & Secretary is authorized to approve of transfers of shares below 5,000 in number.

The Share Transfer and Shareholders/ Investors Grievance Committee consist of the following Directors:

• Mr. Keshub Mahindra (Chairman)• Mr. Anand G. Mahindra• Bharat Doshi• A. K. Nanda• R. K. Kulkarni

Mr. Narayan Shankar, Head - Secretarial & Assistant Company Secretary, is the Compliance

Officer of the Company

D. Research & Development Committee (a voluntary initiative of the Company)

The Research & Development (R&D) Committee, which was constituted by the Board in 1998, provides direction on the Research & Development mission and strategy, and key Research & Development and Technology issues. The Committee also reviews and makes recommendations on skills and competencies required and the structure and the process needed to ensure that the Research & Development initiatives result in products that are in keeping with the business needs.

The Research & Development Committee consists of the following Directors:

• A. S. Ganguly [Chairman]• Mr. Anand G. Mahindra• Nadir B. Godrej• M.M. Murugappan• Bharat Doshi

E. Loans and Investment Committee (a voluntary initiative of the Company)

The Committee approves of the making of loans and investments, borrowing moneys and related aspects of fund management in accordance with the guidelines prescribed by the Board.

The Loans and Investment Committee consists of the following Directors:

• Mr. Keshub Mahindra [Chairman]• Mr. Anand G. Mahindra• Bharat Doshi• A. K. Nanda• R. K. Kulkarni

• Group Management Board The Group Management Board comprises the Vice Chairman & Managing Director, Presidents of the Business Sectors as well as heads of certain key corporate functions. The Board provides strategic direction and enterprise leadership, facilitates synergistic and symbiotic relationships and creates a shared vision and value-system, across the various Business Units and Companies that make up the Mahindra Group. The membership of the Group Management Board is as follows:

Anand G. MahindraVice Chairman & Managing Director

Mr. Anand G. Mahindra, Vice Chairman and Managing Director of Mahindra Group

Bharat DoshiExecutive Director & Group Chief Financial Officer (Group CFO)

Bharat Doshi joined the Company in 1973 As an Executive

A. K. NandaExecutive Director

Arun K. Nanda,Executive Director & President of the Infrastructure Development Sector, Mahindra & Mahindra Limited

Mr. Anjanikumar ChoudhariPresident - Farm Equipment Sector

Rajeev DubeyPresident (HR, After-Market & Corporate Services) Board & Member of the Group Management Board

Dr. Pawan GoenkaPresident (Automotive Sector) and Member of the Group Management Board

Dr. Pawan Goenka joined Mahindra & Mahindra in October 1993As General Manager Research & Development

Hemant LuthraPresident Systech Sector and Member of the Group Management Board

Hemant Luthra joined Mahindra & Mahindra As Executive Vice President....

Mr. Uday PhadkePresident - Finance, Legal and Financial Services Sector and Member of the Group Management Board

Uday Phadke joined the Company in 1973.He is a member of the Institute of Chartered Accountants of India....

Mr. Ulhas N. YargopPresident - IT Sector and Member of the Group Management Board

Mr. Yargop joined the Mahindra Group in 1992 As General Manager - Corporate Planning

Milestones to success

Major Milestones:

Yearwise 1940 1950 1960 1970 1980 1990 20001941 1951 1961 1971 1981 1991 20011942 1952 1962 1972 1982 1992 20021943 1953 1963 1973 1983 1993 20031944 1954 1964 1974 1984 1994 20041945 1955 1965 1975 1985 1995 20051946 1956 1966 1976 1986 1996 20061947 1957 1967 1977 1987 1997 20071948 1958 1968 1978 1988 1998 20081949 1959 1969 1979 1989 1999 2009

HISTORY

Few groups can identify as closely with India's destiny and industrial progress as the Mahindra Group. In fact, Mahindra is like a microcosm of India. Both were born around the same time, had the same aspirations and both experienced the inevitable troughs and crests in the journey towards their goals. And both continue to march on the path to progress and global recognition.

The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United States of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a vehicle that had proved its invincibility on the battlefields of World War II be ideal for India's rugged terrain.

Swift action followed thought. The Mahindra brothers joined hands with a distinguished gentleman called Ghulam Mohammed. And, on October 2nd, 1945, Mahindra & Mohammed was set up as a franchise for assembling jeeps from Willys, USA. Two years later, India became an independent nation and Mahindra & Mohammed changed its name to Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan post-partition and became the first Finance Minister of Pakistan. Since then, Mahindra & Mahindra has grown steadily in size and stature and evolved into a Group that occupies a premier position in almost all key sectors of the economy. The Group's history is studded with milestones. Each one taking the Group forward. In fact, today, its total turnover is about 6.7 billion dollars. Mahindra is a group in a hurry, engaged in an ambitious, sustained and prolonged penetration into the global arena. Its spirit can be encapsulated in the

words of the poet Robert Frost, a favorite of India's first Prime Minister, Pandit Jawaharlal Nehru:

"The woods are lovely, dark and deep,But I have promises to keep,And miles to go before I sleep,And miles to go before I sleep."

For Mahindra & Mahindra, this translates into many more milestones to be set up before it rests If ever.

PART – II

Farm Equipment Sector (FES)

INTRODUCTION

Farm Equipment Sector (FES) is a part of US $6.7 billion Mahindra group, which is amongst the top 10 industrial houses in India. The group has a leading presence in key sectors of the Indian economy, including the financial services, trade, retail and logistics, automotive components, after-market, information technology and infrastructure development. Mahindra has recently made an entry in the two-wheeler segment.

The Mahindra group's Farm Equipment Sector (FES) is amongst the top three tractor brands in the world. It has won the Japan Quality Medal in 2007. It also holds the distinction of being the first tractor company globally to win the Deming Application Prize in 2003. FES is the first tractor company worldwide to win these honors. This shows the strong focus of FES on Quality and Customer Satisfaction. Today, the domestic market share of FES is around 42%. (Mahindra brand: 30% and Swaraj brand: 12%).

FES has a Sustainability Committee in place to take care of the implementation of GRI requirements.

Domestic Operations

Farm Equipment Sector (FES) is the no. 1 tractor brand in India, since 1983. Brand Mahindra sells a range of tractors that include Bhoomiputra, Shaan, Sarpanch and Arjun Ultra-1, with each (except Shaan) having range of variants based on the horse power (hp) and other attributes. Mahindra tractors are known for high fuel efficiency and reliability. FES sells its 15 HP to 75 HP category tractors in the domestic market.

FES has a large customer base of more than 13, 00,000 customers. The sector has time and again topped the customer satisfaction chart. FES also has the deepest distribution reach with more than 680 dealers along with widest service network across India. The sector has four manufacturing facilities in India, located in Mumbai and Nagpur in Maharashtra, Rudrapur in Uttaranchal and Jaipur in Rajasthan.

Mahindra Farm Tractors The Farm Equipment Sector is a process driven organisation with a strong focus on quality systems. All FES Plants are ISO 14001 (Environment Management System), OHSAS 18001 (Occupational Health and Safety Management System) and ISO/TS 16949 (Quality

Management System) certified.There is a strong commitment on part of the top management to make the production system even more efficient through proactively following world-class methodologies like QC story and QC tools, Six Sigma, DOE (Design of Experiments) and TPM (Total Productive Maintenance).

Mahindra & Mahindra had acquired a majority stake in Punjab Tractors Limited (PTL) in early 2007. PTL is a good strategic fit to the company, as it comes with its strength of efficient design (strong R&D abilities) and the Brand Swaraj, which enjoys a strong customer loyalty for being sturdy and reliable. Benefits of this acquisition include advantages of economies of scale, sourcing benefits and vendor rationalization. Post Mahindra – PTL merger in February 2009, PTL is now a part of Mahindra FES. It is known as Swaraj Division.

International Operations

The international operations of the Farm Equipment Sector are spread across six continents and in around 25 countries. FES has state-of-the-art manufacturing plants in India and China with a combined capacity to produce more than 1, 70, 000 tractors a year. Besides, these plants there are assembly plants USA and Australia. FES has more than 1000 dealers world-wide. Currently, the tractors for international market range between 25 to 85 HP.

FES has footprints in many countries in the world. Some of the major markets are in Africa (Major countries: Nigeria, Mali, Chaad, Gambia, Angola, Sudan, Ghana, Morocco), Latin America (Chile, Brazil), South Asian countries (Srilanka, Bangladesh, Nepal), Middle East (Iran, Syria etc) and East Europe (Serbia and Macedonia; FES has entered the Turkey market in 2008).

TRACTORS

Tractors are heavy vehicles serving the purpose of hauling at an extremely low speed. India being one of the major agricultural country makes the use of tractors on a large scale. It is one of the heaviest vehicles basically used for carrying out the agricultural tasks in an effective way.

Modern tractors usually employ diesel engines which delivers 18 to 575 horsepower. The major producers of tractors in India are Ashok Leyland, Escorts, Force Motors and Swaraj Enterprise.

Browse Tractors by CompanyEscorts Ltd. Force Motors Swaraj Enterprise Sonalika TractorsMahindra Kisanmitra HMT tractors

MAHINDRA TRACTORS

Mahindra Tractors, the farm equipment division of Mahindra & Mahindra, builds and sources tractors that are sold worldwide across six continents.[1] Mahindra builds more tractors in India than any other manufacturer,[2] And has the capacity to build 150,000 tractors a year.[3] The Tractor manufacturing plant was originally set up as a joint venture with the American company, International Harvester, in 1965.[4] In addition to building their own tractors, Mahindra also sources tractors from other manufacturers. For the USA market, Mahindra \has bought tractors from Mitsubishi and Tong Yang Moolsan to cover selected product ranges

SERVICE AND SUPPORT

1) AFTER SALE SERVICE

CUSTOMER CAREWe at M&M, Customer care put in efforts to make Customer’s Mahindra tractor ownership – a a memorable experience. A number of programs and practices are incorporated to enhance this experience and are practiced by our Dealerships and M&M employees. Key parameters which are of prime importance to Customers like Good quality service in minimum time are taken care by increasing Network and Doorstep service. This network also takes care of Genuine Mahindra Parts availability. Dealerships are geared up with equipped workshops and skilled manpower to handle the product.

Various innovative programs like Swasth Tractor Swasth Chalak, Padyatra, Installation – Mahindra way are also run to build emotional bond and further improve Company – Customer relationship. The idea is to give the best experience every time Customer visits the dealership or interacts with the company. Regular feedback is taken from the customers on product and services offered and changes in systems are made to take up Customer experience to the next levels.

NETWORK M&M has geared up its network to satisfy and delight the customer by providing Timely and Quality service near to the customer. * Home * Site Map * News & Events * Awards * Press Releases * Disclaimer

2) Nearest Service Centre

Service Centers in IndiaAhmedabad

BangaloreBhopalBikanerBhubaneshwarChennai

3) Spare Parts

Spare parts are an integral part for providing after sales service, routine & periodic maintenance to our tractors. The usage of genuine parts gives longer life to tractors & gives trouble free performance to the satisfaction of our valued customers. The parts are available with our vast network of 650+ dealerships, their 413 branches, 68 MASPs, 480 NSPs and 95 exclusive spare parts stockiest spread all over the country. We have main ware house at Pune & 11 satellite ware houses at different locations which stock & supply the parts to dealers & stockists as per market requirement.

Engine Oil & Gear Oils.

We recommend usage of Castrol CRB Prima for our regular range of tractors & Castrol CRB Prima Plus for our Arjun range of tractors. Their PSM (Perma Stick Modules) technology offers triple P advantage i.e. Protection, Power & Performance. We also recommend usage of Castrol Protector Series 90 EP transmission oil for non wet land H1 range of non oil immersed brake type tractors & Castrol Protector Sereies 140 EP transmission oil for wet land range of non OIB type tractors. These oils are available in 20 Liters; 50 liters pack sizes & 210 litre barrels.

We recommend use of TRACTELFMM transmission oil from M/s Totalfinaelf Ltd. for tractors with oil immersed brakes. This is available in 20 liters pack & 210 liters barrel. These oils have undergone rigorous test by our research & development team. They have been specially blended & developed for long life of brakes & other parts of transmission. The oil is available with all our dealers & also with the dealers of respective oil companies through out the country.

Risk Management (Executive )

Responsibilities: * To do system implementation and decentralization.

* Analyze various risk factors involved in the Process and suggest Improvements in the existing monitoring system.

* Be part of a team for other new Projects.

Requirements: * Candidate must CA with 6 months – 2yrs of Post qualification Experience from any Industry.

* Should have done auditing of well known corporate and also some exposure to risk management.

* Preferably Senior Executives specializing in Clerical/Administrative Support or equivalent.

* Job role in Administrative Executive or equivalent.

* Required to do system implementation and decentralization.

* Analyze various risk factors involved in the Process and suggest Improvements in the existing monitoring system.

India's first turbo tractor

Mahindra & Mahindra Ltd, India's No I tractor manufacturer, launched in Chennai its latest offering, the first Indian tractor with turbo technology the 'Mahindra Sarpanch 595 Di Super Turbo'. Developed specifically to meet the needs of the progressive Indian farmer, this superior technology brings with it a whole host of advantages, which together represent a quantum leap in new-age tractor technology, said K J Davasia, executive director & president, farm equipment sector, Mahindra & Mahindra Ltd.

"Mahindra Tractors has always been in the forefront of introducing the most advanced technologies for the benefit of its consumers. We are proud to present India's first turbo-tractor -the Mahindra Sarpanch 595 or Super Turbo. The Super Turbo represents a quantum leap in tractor technology; the same technology that is used for jet planes and ships is now in the Mahindra tractor."

Equipped with the superior turbo engine, the Mahindra Sarpanch 595 DI Super Turbo offers 25 per cent more power and operational speed, enabling the farmer to complete a larger amount of work in a relatively short period of time leading to higher productivity.

In addition to these, the turbo technology also offers superior fuel Efficiency and is environment-friendly with Iow emissions.

Avinash Patankar, general manager - sales, farm equipment sector, Mahindra & Mahindra Ltd, echoed this sentiment.

"The launch of the Mahindra Sarpanch 595 Di Super Turbo reinforces our leading position in the state of Tamil Nadu. This product is most suitable for advanced applications, like combined harvester and heavy duty applications like hard soil tilling and heavy haulage."

Recently, Mahindra Tractors was awarded the prestigious Japanese award - the Deming Prize for Quality Excellence. Regarded as the Oscar in the world of manufacturing, it is given to companies that have established total quality management in their entire business operations, ranging from human resource, product development, sales and marketing processes, vendors to its commitment to corporate citizenship.

"With plants in Mumbai and Nagpur and satellite plants in Jaipur and Rudrapur, the farm equipment sector of Mahindra and Mahindra Ltd manufactures tractors, which are state-of-the-art and technologically one of the most advanced. A leader in the Indian market for 20 consecutive years, Mahindra Tractors has over 9.5 lakh satisfied customers across India. Mahindra Tractors also boasts of being the fourth largest in the world in terms of units sold. Mahindra tractors are exported to the United States, South Africa, Sri Lanka, Bangladesh, Nepal, Zimbabwe and several European countries"

OBJECTIVE OF THE STUDY

• To ascertain the existing marketing strategies of mahindra tractors.• To structure the company profile for mahindra tractors.• To understand various products and services offered by mahindra

tractor.• To ascertain the customer expectation regarding the mahindra tractors.• To analyse the customer attitude and perception towards mahindra

tractors and marketing strategies for mahindra tractors.• To suggest suitable marketing strategies for mahindra strategies for

mahindra tractors.

Research and methodology

Methodology can be defined as:

1. The analysis of the principles of methods, rules, and postulates employed by a discipline. 2. The systematic study of methods that are, can be, or have been applied within a discipline. 3. A particular procedure or set of procedures

Research includes:

• Field of study

The field of study has been restricted. The focus is to conduct market survey on mahindra tractors.

• Specification purpose

The main purpose of this survey is to find the consumer opinion towards mahindra tractors. Total emphasis is laid on general perception of consumers and the products, their purchase intention, awareness and buying behavior.

Sources of data

There are two types of data-

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.

Sampling plan:-

The sample consisted of 50 consumers. The convenience sampling method was adopted. The sampling plan includes-

1. Project Goals 2. Parameters to be measured 3. Sampling Locations 4. Sampling Timing and Frequency 5. Methods

Data collection instruments:- The research instrument in this study to avail information needed was the questionnaire. Questionnaire was prepared for consumers.

Questionnaire includes both general information and specific information as framed according to the objectives set in the required order.

Scope of study:-

The study is based on primary and secondary data collected from the consumers. It brings out attitude, perception towards the mahindra tractors.

Need for study:-

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

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

Limitations of the study:-

• Due to time constraints an extensive research could not be undertaken therefore the sample size was restricted to few peoples only.

• Analysis of the data obtained from questionnaire was done on the assumption that the respondents gave the correct information. The data provided by the respondents is basically from their memory recall. Bias tends to creep due to recall errors. However, enough care has been taken to reduce the bias by adopting a cross checking method. This seeks information from respondents.

• Time has been the major constraint while performing the market study.

INTRODUCTION TO MARKETING STRATEGY

Definition of marketing:

According to Philip kotler “marketing as the set of human activities directed at facilitating and consummating exchanges.

American marketing association “marketing as performance of business activities that direct the flow of goods and activities from producers to consumers or user”

Meaning of marketing:

The term market is derived from the Latin word ‘mercatur’ meaning “to trade”. It also means merchandise, traffic or a place of business the common usage market refers to a place where goods or services are bought or sold. In its strict sense, market need not necessarily refers to a place of exchange. The concept of market is very important in marketing. According to American marketing association, “a market is the aggregate demand of the potential buyers for a product/service”.

According to Philip kottler, “a market is an area for potential exchanges”. Thus, a market is a group of buyers and sellers interested in negotiating the terms of purchase/sale and goods/services. The negotiation work may be conducted face to face at a certain place.

A market consists of the forces of supply and demand facilitating exchange process between sellers and buyers. Exchange is the art of commerce or marketing. Exchange is possible when there are two or more parties who have something very desired exchange for something else. Exchange may take place with or without money. As a medium of exchange, money speeds handling. It may also be effected through middlemen in commerce, ex: trader or agent. Middlemen also facilitate marketing operations.

MARKETING STRATEGY Marketing strategy is the heart of a marketing plan. Marketing strategy is related to marketing as one functional area of business. Philip kotller designs marketing strategy as a consistent, appropriate and feasible set of principles through which a particular company hopes to achieve its long-term customer satisfaction and profitability objectives in a particular competitive environment. It is based on corporate marketing objectives and co-ordinate marketing action programs implement it viz, marketing mix. The ideal marketing strategy would achieve optimum utilizations of all resources of the firm.

A successful marketing strategy must have a marketing mix. It is the combination of 4 p’s of marketing – product mix, price mix, distribution and promotion mix. These are controllable factors. Producer should also be aware of un-controllable factors i.e. consumer behavior, govt policy.

For each component of marketing mix, we have a distinctive strategy.Ex: product strategy, price strategy, distribution strategy, promotion strategy.

• Product strategy:-

Product strategy is a company’s plan for marketing its products. It starts with product objective. Product strategy must be fitted into overall marketing plan and integrated with other elements of marketing mix.

The physical product is only a part of the product image. It could not stand alone, before the potential buyer. There are four elements they surround the product to give us a complete product concept. These are branding, packing and labeling. Product guarantee, warranty and service.

Brand strategies and policy Branding strategies indicates how the firm chooses to use branding as an integral part of its overall marketing strategy. A brand is a name, term, symbol or

design or a combination of them which is intended to identify the goods or services of one seller or a group of sellers and differentiate them from those of competitors.

Packing and labeling

A package is a wrapper or container in which a product is enclosed, encased or sealed. Packing therefore, May be defined as an act of designing and protecting the package for a product.

A label is anything, a price of a paper, printed statement etc. forming a post and / or matched to a product and giving some verbal information to the Consumer about the product. Say the place of production, the name of the producer, contents of the product, value of the product, price etc. The art of attaching or tagging the label to the product for grade identification is called labeling.

Product Warranty

A warranty is a stipulation collateral to the main purposes of the contract. A breach of warranty by the seller enables the buyers to claim for damage. But he cannot avoid the contract. A warranty is an obligation of the producer and seller to stand behind the product and assure the buyer that he will drive certain services and satisfaction from the product. The product warranty must be clear, unambiguous and meaningful. It has become an important selling point and a means of product differentiation in a competitive market.

Warranty is also considered as promotional devices. Full disclosure of warranty information will ensure the consumer “right to know”.

After sale service

It refers to servicing the product after it has been sold, if there is any disorder in it. It repairs, spare parts and maintenance. After sales service is an important selling point helping the customer to take a quick decision to purchase durable and costly

goods. Such facilities prevent dissatisfaction, frustration and ill will among customers.

• Pricing strategies

Price may be defined as the value of product attribute expressed in monetary terms which a consumer pays or is expected to pay in exchange and anticipation of the expected or offered utility. Money (price) = bundle of expectation or satisfactions. Bundle of expectations may include physical product plus other attributes such as delivery installation, credit privileges, after sales servicing and so on.

Pricing decisions interconnect marketing actions with the financial objectives of the enterprise. Among the most important marketing variable influenced by pricing decision are sales volume, profit margins, rate of investment, trade margins, advertising and sales promotion, product image and new product development. There for pricing decision plays a very important role in the design of the marketing mix. Pricing strategy determines the firm’s position in the market rivals. Marketing effectiveness of pricing policy and strategy should not suffer merely on account of cost and financial criteria.

Pricing policies

• Market penetration policy : Some companies set a relatively low price in order to stimulate the growth of the market and to capture a large share of it.

• Market skimming policy : Some firms seek to take advantage of the some buyers always ready to pay a much higher price than others because the product for one reason or another has high present value to them.

The objective of skimming pricing is to gain a premium from these buyers and only gradually reduce the price to draw in the more price elastic segment of the market.

• Early cash recovery policy : Some firms seek to set a price that will lead to a rapid recovery of cash. They may either be strapped for funds regard the future as too uncertain to justify product market cultivation.

• Satisfy price policy : Some companies describe their pricing objectives as the achievement of a satisfactory rate of returns. The implication is that although another price might produce even larger returns over the long run. The firm is satisfied with a return that is conventional for the given level of investment and risk.

• Distribution mix / Channels of distribution

Channels of distribution refers to the pathway, path or route taken by goods as they flow or move from the point of production to point of consumption or user.

In short it is the route through which the title to the product passes from the producer, the first owner to the ultimate consumer or users, to the owner.

Channel decision and physical distribution plan are the components of distribution strategy. These decisions should be evaluated against the rest of the marketing mix and fitted into over all marketing plan.

The most common routes used for bringing the products are the marketing from producer to consumer are as follows:-

• Manufacturer – consumer (direct channel)• Manufacturer – retailer – ultimate customer• Manufacturer – whole seller – retailer – consumer• Manufacturer – agent – whole seller – retailer – consumer• Manufacturer – whole seller – consumer

• Promotion strategy

Promotion strategy aims at communicating, convening and competing against rivals. It is evaluated against company objectives, promotion objective and the rest of the marketing mix. Promotion strategy deals with the following decisions.

• The blend of promotional activities (advertising, publicity, personnel selling and sells promotion.)

• The amount allocated for the various forms of promotion particularly to the advertising media such as press, radio, television etc.

• The kind of promotion to be used.

• Sales promotion:-

It is an important instrument in marketing to lubricate the marketing efforts. Today sales promotion is a necessity and not merely luxury or fashion. It is not expenditure. It is an investment, which can pay rich dividends. Sales promotion refers to activities other than personal salesmanship, advertising and publicity which stimulate consumer purchasing and dealer effectiveness.

E.g. displays, exhibition and showrooms, demonstrations, free samples,

coupons, premiums and various other non recurrent selling efforts not in the ordinary routine.

B. Publicity:-

It is also called marketing public relations. Publicity is not paid for by the organization. It comes to the receiver as the truth rather than as a commercial. Every firm tries to create good public relation so as to give publicity. Under the social marketing concept, publicity and public relations are assuming unique importance in the firms promotion mix. Defective products, unfair trade practices, anti-social activities often results in unfavorable publicity. The firm having a poor public image will have lower sales and lower profit.

C. Advertising:-

It means informing the people of the availability of a particular product or service or idea sponsored by a person (i.e. the advertiser) at his expense to create demands for their goods.

Advertising helps to create demand for the new product introduced in the market helps the producers in maintaining the existing market for their goods and to expand the market for their goods. It popularized a product and builds reputation and goodwill for the producers.

D. Personal selling:-

It refers to oral presentation in conversation (by a sales representative) with one or more prospective customer for the purpose of making sales.

Personal selling is highly distinctive and the only form of promotion

involving face to face relationship or interpersonal inter action or communication between a salesperson and one or more prospective customer.

MARKETING STRATEGY OF MAHINDRA TRACTORS

The tractor is one of the most important and easily recognizable technological components of modern agriculture. Its development in the first half of the twentieth century fundamentally changed the nature farm work, significantly altered the structure of agriculture, and freed up millions of people to be absorbed into the rapidly growing manufacturing and sectors of the country.

A tractor is basically a machine that provides machine power for performing agricultural tasks. Tractors can be used to pull a variety of farm implements for plowing, planting, cultivating, fertilizing and harvesting crops and can also be used for hauling materials and personal transportation. In the provision of motive power, tractors were a replacement for human effort and that of draft animals, both of which are still used extensively in other parts of the world.

The tractor proved to be an excellent replacement for the cattle in plowing, soil preparation, planting and cultivating tasks for a wide variety of field crops. In addition, the tractor was fully capable of providing power for harvesting of wheat and other small grains.

TRACTOR

India has only about 8 tractors per thousand hectares, versus the Asian average of 14. The potential demand for tractor is, consequently, large, depending on growth in agriculture output and productivity. Tractor demand is likely to increase

with increased government investment in irrigation, increased multiple cropping and the spread of scientific cultivation. The increase in irrigated area, as a result of Plan investments, will also increase the demand for tractors.

Since approximately 90% of the tractors are bought using agriculture credit from commercial, co-operative and regional rural banks, the quantum of credit and the interest rate are, perhaps, the most crucial determination of tractor demand. The presence of a country wide distribution system is also important in insulating companies from monsoon failures in some parts of the country. Upward revision in support prices of agriculture crops which have been sizeable since 1991, increased farm incomes and hence demand for tractors. Good monsoons, even though important, do not affect tractors sales significantly, since tractor demand is generally concentrated in areas with developed irrigation facilities.

Two or more successive bad monsoons however affect farm sentiments and hence sales. Different manufactures adapt their products to the farm practices and soil conditions of the regions that they service. Brand concentration in regions is therefore common.

INDUSTRY STRUCTURE

From a small beginning in the 1960s, when a few thousand tractors were produced, India is now one of the largest producers of tractors in the world, also with the US. The Green revolution of the late 1960s and increasing recourse to scientific cultivation have resulted in a substantial increase in the demand for tractors.

From a production of 2000 tractors in FY1971, the volume sales of the industry reached 266073 units in FY2000.The tractor industry’s growth has dropped to a low of 2-3% in 1998-99, as well as in 1999-2000. Product losses and unremunerative prices in a few states, in the past few seasons, have added to the downtrend, but the biggest adverse impact has been overproduction and billing by

some of the leading players.

COMPETITORS

Six main players – Mahindra $ Mahindra Ltd (M$M), Tractors and Farm Equipment Ltd (TAFE), Escorts Ltd, Punjab Tractors Ltd (PTL), Eicher Ltd, and Hindustan Machine Tools ltd (HMT) – control most of the market, while a couple of players in the unorganized sector specialize in used tractors.

Mahindra $ Mahindra is the leader in the industry, with a market share of 27%. There multinationals, new ford Holland, john Deere and greaves, have entered the market in the past two years, but their combined sales have been below 6000 units. All Indian brands, except Punjab tractors ltd, have had overseas tie-ups and support since the beginning. BRAND NAME

“MAJBUTI AUR SHAAN KE SANG – BAJRANG”

The power points of the tractors are STRENGH $ PRIDE on these basis name BAJRANG is given to tractors as BAJRANG is the name of powerful God in the universe BAJRANGBALI ( HANUMAN ) and the name of any god in any thing bring pride in it.

It was also noted the rural consumers are more regional and great believers of god. On this basis the tractors were named as BAJRANG TRACTORS.

FEATURES

• Design simplicity • Improved performance with reduced cost• High maneuverability due to small size and small wheelbase• The fuel consumption, which is comparatively low and low maintenance

cost, adds to the economy• Adjustable wheel base to meet the requirement of inter culturing

operation in different crops• Ergonomically designed• Better traction, greater control, stability and safety• Durable, strong, reliable

DESIGN

TECHNICAL DESCRIPTION

The heart of a tractor is a powerful internal combustion engine that drives the wheels to provide forward motion. Direct ignition (diesel) and spark driven engines are both found on tractors, just as with cars and light trucks. Power from the engine can be transmitted to the implement being used through a power take-off (PTO) shaft or belt pulley. The engine also provides energy for the electrical system, including the ignition system and lights, etc.

In tractor the machine is little more than an engine on wheels, with a seat for the operator and a hitch for pulling implements centered in the rear. Later models would feature an enclosed cab to keep the operator out of the weather; it features simple control and the metal seat. The drawing shows a wheel-tractor, which comprised more than 95% of machines sold for farm use. Tracked units also called crawler tractors.

UNIQUE SELLING PROPOSITION

• Superior performing tractors at competitive prices.

• High flexibility to farmers to perform all types of agricultural operations in any terrain.

MARKETING STRATEGYP’s

PRODUCT

The tractor is used for pulling or pushing agriculture machinery or trailer, for plowing, tilling, disking, harrowing, planting and similar tasks. In 1892, John Froelich built the first gasoline powered tractor in Clayton Country, lowa.

The tractor in a simple open vehicle with two very large driving wheels on an axle below and slightly behind a single seat (the seat and steering wheel consequently are in the center) and the engine compartment. This basic design has remained unchanged for a number of years, but enclosed cabs are fitted on almost all modern models, for reasons of operator safety and comfort.

Tractors used belts wrapped around pulleys to power stationary equipment. Modern tractors use a power take-off shaft to provide rotary power to machinery that may be stationary or pulled.

PLACE

Of India’s total geographical area of 329 million-hectares (MHA), as much as 166 MHA is arable (2nd highest in the world). While the net sown area stands around 140-142 MHA, with increased cropping intensity, the gross cropped area is higher at 180-189 MHA.

Tractors remain the crucial linkage in the commercialization of agricultural products. For farming activities, there is no substitute to tractors. Increasing rural prosperity and education levels plus spreading awareness of the benefits from mechanization would also help speed up tractorisation. It is equally true even when power or transportation needs of the farm are considered.

For BAJRANG TRACTOR the place in which the company will start its business is North (Punjab, Haryana & Uttar Pradesh) West (Gujarat & Maharashtra)

PRICE

PRODUCT NAME

SEGMENT PRICE

HC 2521 25 Horse Power

425000/-


440000/-


725000/-

HC 3444 37 Horse 740000/-

Power

The above prices include 20% profit, which is due to increase the sales of company, than it will be increased as per the marketing strategy.

PROMOTION

As the promotion part is considered, along with the huge advertising campaign that the company is carrying out it will also carry out the basic promotional activities necessary for boosting the sales of the product like keeping stalls in Melas (Fairs) which will expose the companies whole range to all type of customers and promotion can also be done by providing seasonal schemes to get the focus of the customers in every season.

DISTRIBUTION

BAJRANG COMPANY

↓ DEALERS

↓ CUSTOMERS

Initially BAJRANG TRACTORS will have the 150 dealers in the places of sale than it will increase its dealer’s distribution network. If need arise the company will also appoint some retail outlet in the village for penetration in market.

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.• 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

ADVERTISING

For advertising main focus is on the National language to be used in advertising tractor. As it is acceptable in rural area so preference is given also to the use of regional languages. That means the local languages of the territory is used along with the National language, as it will be easy for the people to accept it.

As for the rural markets the advertisements are basically done by local as well as other major resources like T.V. & Radio. But mahindra enforce much on the local resources available for the promotion of the product along with major ones like T.V. Radio.

LOCAL RESOURCES OF ADVERTISING

HOARDINGS

Hoardings are very common resource of advertising as they are very flexible to be used at anywhere. Therefore mahindra like to place the company’s hoardings on the areas like main roads, chowks, entrance of the shop etc and on special occasions like

Melas, fairs, exhibitions the banners can be used as effective media of advertising.

SHUTTER PAINTINGS

Mahindra focus on product and brand through using the shutters of the dealers and retailers to be painted with the companies name and featuring the product. So that the product is focused to each one passing by.

WALL PAINTINGS

Mahindra also use Wall Painting as, through wall paintings in main areas of the villages or the territory. This will have an impact on the people about the presence of the brand in the village.

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

1) Mahindra Tractors have reached all four corners of the world. And they proved themselves nothing less than the best. That explains the great demand for Mahindra tractors across the United States, Australia, Chile, Serbia, Sri Lanka, Nepal, Bangladesh, Iran, Syria and a major part of the African continent among many more.

2) Majorities of respondents were aware of mahindra tractor.

3) Customers have to invest less on maintenance. The company introduced their fuel-efficient machines into new models of tractor and transformed the way Africans used tractors. Now with a single machine they could cultivate, plough, harrow, haul and do a million other things at a low running cost and without spending much on maintenance.

4) Many of the respondents used mahindra tractors.

5) Customers are satisfied with the after sales service of mahindra. Every mahindra tractor is available with a spares package to take care of the initial fast moving spare parts requirement.

6) It can be concluded from this study, that the marketing strategy adopted by the mahindra tractors is good.

RECOMMENDATION

• They should improve there manpower so that it will help in fast servicing.

• They should provide some festival offer.

• They should make good installment facility so that every person can afford.

• They should make separate desk for giving information about their services.

PART - III BIBILIOGRAPHY

Marketing Management- PHILIP KOTLER.

Marketing Management- J.C. GANDHI.

Principles of marketing – P.N. REDDY.

Company books and brochures

Website: www. MAHINDRA.COM www.GOOGLE.COM

ANNEXURES

Dear Sir / Madam,

I am a student of business management course, under taking a study of the marketing strategy of the mahindra tractors. The questionnaire is a part of my project towards fulfilling the requirement of my study. I would be obliged, if you could provide me some of your valuable time to answer the following question.

• Name:

• Address:

• Occupation

• Do you know about mahindra tractors?Yes

No

5. Do you have any tractor? Yes No

6. Which tractor you have? Tractor Name:

7. Purpose of using tractor?

8. For how many years you are associated with mahindra tractors?0 – 6 months6 – 12 month

1 – 2 years Above 2 years

9. Which brand of tractor you prefer Mahindra Eicher HMT Sonalika Others

10. Do you know the competitive brand of mahindra tractor?Yes No

11. Are you happy with the service of mahindra tractors?YesNo

12. If not, then what are the factors you are not happy?

13. What are your suggestions for mahindra tractors to improve the services?

14. Are you planning to buy any new tractor?

YesNo

15. Which model of tractor you like most?

16. How would you rate the mahindra tractor to its customers?GoodNiceVery goodExcellent

17. What are you’re over all opinion about mahindra tractors?

Thank you,

Signature

Mahindra Tractors

Documents

Transcript of Mahindra Tractors