mahindra report 2014 final sudarshan

National Academy of Agricultural Research Management

“Evaluating Brand Awareness and Sales Funnel Analysis

for Mahindra Tractors in Andhra Pradesh”

Under the Supervision of

Dr. S.K. Nanda Mr. Geetansh Sardana

Area Manager-Hyderabad

Principal Scientist Mahindra Tractors Limited

NAARM-Hyderabad

Submitted by -

Sudarshan Kumar Patel Post Graduate Diploma in Management - Agriculture National Academy of Agricultural Research Management

(Indian Council of Agricultural Research)

Summer Internship Report, 2014


DECLARATION

This is to declare that I, Sudarshan Kumar Patel student of Post Graduate

Diploma of Management in Agriculture(2013-2015), NAARM, Hyderabad have

given original and authentic data, information and maintained full

confidentiality to the best of my knowledge in the project report titled

“Evaluating Brand Awareness and Sales Funnel Analysis for Mahindra

Tractors in Andhra Pradesh ” and that, no part of this information has been

used for any other assignment but for the partial fulfillment of the

requirements towards the completion of the said course.

Sudarshan Kumar Patel

PGDMA-1320

NAARM, Hyderabad


CERTIFICATE This is to certify that Mr. Sudarshan Kumar Patel is bonafide student of Post

Graduate Diploma in Management (Agriculture) (2013-2015), NAARM,

Hyderabad and worked as summer trainee in Mahindra Tractors Limited

for a period of two months from April-June. He has successfully completed his

summer project titled “Evaluating Brand Awareness and Sales Funnel

Analysis for Mahindra Tractors in Andhra Pradesh” towards the partial

fulfillment of his requirements for the course.

Dated:

Project Guide

Dr. S.K. Nanda

Principal Scientist

NAARM- Hyderabad


ACKNOWLEDGEMENT Before I embark upon acknowledging those who assisted me in accomplishing

this present summer project, I must thank MAHINDRA for giving me the

opportunity to work upon a challenging project which gave me a real time

field experience. I should thank my mentor Mr. Geetansh Sardana, Area

Manager – Hyderabad, Mahindra Tractors Limited, he with great

benevolence and generosity has always assisted me whenever I have

approached him with any doubts or questions.

I also take this opportunity to thank the faculty members of NAARM who have

toiled hard in paving a solid foundation in me which is indeed of great

importance in carrying out the research work. My sincere thanks to Dr. S.K.

Nanda who supported me throughout my project.

My special thanks to Mr. Prasanna Kumar (Territory Manager –

Karimnagar, Mahindra Tractors Limited), Mr. Raju (Territory Manager –

Nizamabad, Mahindra Tractors Limited), Mr. Aditya Dharmadikari

(Senior Territory Manager, Mahindra Tractors Limited) without whose

constant support, I wouldn’t have been able to execute this project. I also

thank farmers and dealers who though used to be quite busy yet were able to

spare sometime for me.

I would like to thank my family, seniors and friends who are always there to

support and encourage us. I also thank all the respondents who have given

their valuable time, views and authentic information for this project.


Executive Summary

Mechanization is one of the critical inputs in agricultural operations. Mechanization of agriculture has assumed greater significance in enhancing crop production and productivity by ensuring timely agriculture operations more effectively and reducing human drudgery. It also gives relief from increased labour costs and labour unrest at crucial hours which hampers timely operations.

The States with higher level of mechanization have triggered increased agricultural production and productivity. Andhra Pradesh is one such state. Mechanization of agriculture is generally associated with use of tractors, power tillers; harvestor combines threshers and such other implements. Adoption of modern methods of farm mechanization has not progressed effectively in Andhra Pradesh. However there is a rising trend as it saves time and increased productivity by better management of costly inputs, timely operations etc., and the tractor density in 1992 was 5.42 tractors per 1000 hect, and was at eight places amongst all the states of India. It is expected that the density of tractors by 5005 AD will be 12 per thousand hectares. This is again very low when compared to the tractor density of Punjab and Haryana which is at 45.8 and 45.6 per thousand hectares respectively in 1992 itself. With the thrust for development of dry land farming, the need for farm mechanization has gained all the more importance. The National Commission on Agriculture recommended the use of power tillers in rice growing areas and tractors for other crops. At present the population of tractors in the State is mainly concentrated in the coastal districts viz., East Godavari, West Godavari and Krishna. However, there is a considerable increase in the demand for tractors in the district of Rangareddy, Nizamabad, Karimnagar, Warangal, Khammam, Nalgonda, Mahaboobnagar, Kurnool, Anantapur, Chittoor, Cuddapah, Nellore, Prakasham and Srikakulam.


SI.

No.

Content Page

No.

1 Introduction 10

2 Research Question 11

3 Research Design

3.1 Purpose 11

4 Methodology

4.1 Selection of study area 12

4.2 Nature and Source of Data 13

4.3 Sampling procedure 13

4.4 Data Collection 15

4.5 Data Analysis 15

5 Limitations of the Study 15

6 Indian Tractor Scenario 16

7 Sales of Tractors in India 17

8 Findings Based on Questionnaires

8.1 Average landholding pattern in Nizamabad

district

18


8.2 Crop Profile 19

8.3 Tractor Market Scenario in Nizamabad

District

19

8.4 Tractor Brands in Different Mandals of

Nizamabad

20

8.5 Leading Tractor Brands 22

8.6 Conclusion 22

8.7 Superior Model in All Samples 23

8.8 Market Key Players 24-25

8.9 Demand of Tractors based on HP Range 26

9 Brand Awareness

9.1 Brand Awareness of Mahindra Tractors 27

9.2 Brand Awareness of Mahindra 605 Model 27

9.3 Brand Awareness of Mahindra Finance 28

10 Company Approach

10.1 Approached by Mahindra Salesman 29

10.2 Approached by Mahindra Dealer/

Showroom

29

10.3 Salesman Approach 30

11 Lost Customers of Different Tractor Brands 30


11.1 Lost Customers of all Tractor Brands in

Surveyed Mandal

30

12 Price Comparison

12.1 Price of Mahindra Tractor 31

12.2 Price Compare with existing Tractor 31

13 Type of Purchase 31

14 Farmer preference for selecting a Tractor 32

15 Consideration for Buying Mahindra Tractors

15.1 Key Reasons for buying Mahindra 33

15.2 Key Reasons for not buying Mahindra 33

16 Customer Perception regarding different attributes of Tractor’s features

16.1 Engine & Fuel Efficiency 34

16.2 Hydraulic Power and After Sales Service 45

17 Product Features 36

18 Approach 36

19 Key Findings 37

20 Suggestions 39

21 Market strategy 40

23 Comparison between different Brands of 41


Tractors and its unique feature

24 Porter 5 Forces Analysis 40

25 Maintenance cost 45

26 Market potential of different tractor brands

through road show

46

27 Gallery 46

28 SWOT Analysis 49

29 References 50

30 Questionnaire 51-53

http://en.wikipedia.org/wiki/Questionnaire


Introduction

The tractor industry in India has developed over the years to become one of the

largest tractor markets in the world. From just about 50,000 units in early eighties

the size of tractor market in the country has grown up to over 200,000 units. Today

industry comprises of 14 players, including 3 MNCs. The opportunities still are

huge considering the low farm mechanization levels in the country, when

compared to other developed economies across the world. Key concern for the

industry is its dependence on agricultural income in hands of farmers and the state

of monsoon. The key players are Sonalika, John Deer, Mahindra, New Holland,

TAFE etc.

Mahindra and Mahindra Limited was incorporated on October 2, 1945 as a private

limited company under the Indian Companies Act of 1913 by two brothers, Mr.

J.C. Mahindra and Mr. K.C. Mahindra. It was converted into a public limited

company on June 15, 1955. Mahindra & Mahindra Ltd, one of the largest private

sector company in India, is the flagship company of the Mahindra Group. The

company commenced operations in 1945 to manufacture General Purpose Utility

Vehicles and later on entered into manufacturing of Tractors and Light

Commercial Vehicles (LCVs). Over the years, the company has expanded its

operations from automobiles and tractors to steel, trading and manufacturing of

Ash Handling Plants & Traveling Water Screens. The company is focused to

become a world giant in the tractor business. It has already made its presence felt

in countries in Europe, Latin America, Africa and United States of America.


1. Research Question

What are the reasons on which M&M Tractor lost hot and new perspective

customers in the district of Nizamabad?

2. Research Design

2(a) Purpose-

The purpose of the study (Sales Funnel Analysis) is to find out the top three

reasons for losing hot and prospective customers by Mahindra Tractors. As it

is a well-known fact that Mahindra Tractors has been the No. 1 tractor of the

country in terms of sales volume for more than three decades and No. 1 in the

world for the last three years but now the competition in the market is a neck

throat one. So it is in the benefit of the company to know the lacunas in its

products which has become a reason of rejection by prospective customers

and will give the chance to serve the customers better by working on the

lacunas.

3. Methodology

The Methodology followed was -

Selection of the study area

Nature and source of data

Sampling procedure

Data Collection

Analysis of data


3.1. Selection of study area: The study area was Nizamabad and Karimnagar districts of Andhra Pradesh.

Fig: 1. Study area map:


1) Nizamabad:

Nizamabad district was once considered as agriculturally well developed. The district’s economy is mostly depended on agricultural sector and more particularly on various crops. It has 36 Mandalas and 922 villages.

2) Karimnagar :

Karimnagar, the administrative headquarters of the Karimnagar District, is situated 160 km north east of Hyderabad in Andhra Pradesh now Telangana. It has 57 Mandals.

3.2 Nature and Source of Data:

Both primary and secondary data were collected and used for fulfilling the objectives.

Primary data was collected from the farmers with personal interviews. Secondary source of data was collected from Department of Agriculture and Websites of Tractor Manufactures Association, Dealer of Sri Sri Tractors and others.

3.3. Sampling procedure:

Purposive / Judgmental sampling procedure was followed at two levels, selection of district as first unit and then selection of farmers using Tractors as second unit. Among all Tractors using Farmers 168 Farmers Randomly selected through Simple Random Sampling. Hence a total of 168 farmers are selected from Nizamabad district. The respondents were interviewed and data was collected fulfilling the objectives, thus a total sample of 168 farmers was covered.

Farmers-168

Sampling Method- Judgmental and Simple Random Sampling


Base- 168

Base-168

Nizamabad Nandipet Makloor Navipet Dharpally Dichpally Sirkonda

Large 8 29 5 4 3 4 9

Medium 19 16 14 14 3 8 11

Semi Medium 7 3 0 2 1 1

Marginal 1 1 1 1 1 1 1

0102030405060

Distribution of Sample Size

4% 8%

51%

37%

Distribution of Sample Size

Marginal Semi Medium Medium Large

n=168


3.4. Data Collection:

Data has been collected from the farmers using pre tested questionnaire. The questions were both closed ended and open ended in nature and framed in simple language and care was taken to develop good rapport between investigator and respondent. In addition, information on Tractor Growth and Market Share is collected from secondary sources.

3.5. Data Analysis: The data collected is properly decoded and used for analysis. The data was analyzed in MS Excel.

4. Limitations of the Study: 1) Although all care was taken during selection of respondents there may be bias in response due to several reasons such as social prestige, prejudices, suspicion, apprehension etc.

2) There may be bias in response since the technology is still not at farmer’s field and not enough data available on part of farmers responding on benefit emerging from the technology.

3) A small amount of bias may exist on researcher side. Given all these constraints, an effort was made to minimize all the biasness & limitations and make this study report more meaningful and objective.


5. Indian Tractor Scenario:

Market Share Trend of Major Tractor Players in India

Source- Agricoop.nic.in & TMA

Among all Tractor Brands Mahindra and Mahindra captured high market share followed by TAFE and Eicher

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Trac

tor

Bra

nd

s

YEAR

Others

Escorts

Ford New Holland

John Deere

Sonalika

Tafe+EIC

Mahindra


Sales of MM Tractors gradually

increased from 2007 to 2011 but

dropped in 2012 due to entrance of

new competitors with advanced

technology and overall CAGR

calculated 22%.

Sales of Tractors in India-

Source-agricoop.nic.in

From 2004-05 to 2011-12 CAGR was 11% and it has dropped from 2011-12 to 2013-14 and calculated 9%. Nizamabad District MM Tractor Sales

0

100000

200000

300000

400000

500000

600000

700000

Sales in No

Sales in No

CAGR-9%

13

61

111

226237

143

238

65

0

50

100

150

200

250

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Total Sales

Total Sales

Linear

(Total Sales)

CAGR- 22%


Findings Based on Questionnaires

Average landholding pattern in Nizamabad district-

0 10 20 30 40 50 60 70 80 90

Marginal(<1ha)

Small(1-2ha)

Semi Med(2-4ha)

Med(4-10ha)

Large(10&above ha)

1

0

13

90

64

No. of Farmers

Distribution of landholdings

1% 0% 8%

53%

38%

Distribution of landholdings

Marginal(<1ha)

Small(1-2ha)

Semi Med(2-4ha)

Med(4-10ha)

Large(10&above

ha)

In Nizamabad district no. of

medium farmers are highest in

numbers , so here opportunity of

selling tractors is high.


In Nizamabad district major crop

grown by farmers is paddy followed

by Maize and Sugarcane.

Crop Profile-(Nizamabad District)

Tractor Market Scenario in Nizamabad District

From total samples we found that in Nizamabad District Mahindra & Mahindra is Market Leader followed by John Deere, TAFE and Swaraj respectively

42%

13%8%5%

10%

7%

2%2%

11%

Crop Grown %

Rice

Maize

Cotton

Sunflower

Sugarcane

Jowar

Green Gram

Black Gram

Soybean

3

4

39

29

24

82

0 20 40 60 80 100

New Holland

Sonalika

John Deere

TAFE

Swaraj

Mahindra & Mahindra

No of Tractors

Trac

tor

bra

nd

s

Distribution of Tractors New Holland

2%

Sonalika2%

John Deere22%

TAFE16%

Swaraj13%

Mahindra &

Mahindr

a 45%


Leading Tractor Brands in Different Mandals of Nizamabad District Surveyed-

16%4%

2%

53%

25%

Nandipet Mandal

TAFE

Swaraj

New Holland

Mahindra &

Mahindra

John Deere

13%

9%

9%

26%

39%

4%

Sirkonda Mandal

TAFE

Swaraj

Sonalika

Mahindra &

Mahindra

John Deere

20%

50%2%

15%

13%

Nizamabad

TAFE

Swaraj

Sonalika

Mahindra &

Mahindra

John Deere

31%

46%

23%

Navipet Mandal

TAFE

Mahindra &

Mahindra

John Deere


8%

61%

31%

Dharpally Mandal

Sonalika

Mahindra &

Mahindra

John Deere

0%

7%

0%

77%

8%8%

Dichpally Mandal

TAFE

Swaraj

Sonalika

Mahindra &

Mahindra

John Deere

11%6%

0%

72%

11%

0%

Makloor Mandal

TAFE

Swaraj

Sonalika

Mahindra & Mahindra

John Deere

New Holland


Leading Tractor Brands in Different Mandals

Conclusion-

Among all 7 Mandals, Mahindra Tractors is key leader in 4 Mandals. John Deere and Swaraj in 1 mandal respectively

9

8

4

3

0

2

0

2

20

0

1

0

1

1

1

0

0

1

0

0

1

29

6

7

6

8

13

10

14

5

4

10

4

2

1

0

1

1

2

1

0

0

0 10 20 30 40 50 60

Nandipet

Nizamabad

Navipet

Sirkonda

Dharpally

Makloor

Dichpally

No of Tractors

Man

dal

s

TAFE

Swaraj

New Holland

Mahindra & Mahindra

John Deere

Sonalika


Superior Model in All Samples

18%

78%

4%Model

5245

Model

241

Model

1035

33%

54%

5% 8%

5310

Model

5045

Model

5038

Model

9%

64%

19%

2%4% 2% 605 Model

475 Model

575 Model

295 Model

275 Model

265 Model

92%

8%

735 Model

744 Model


Market Key Players

JOHN DEERE 5038 JOHN DEERE 5042

JOHN DEERE 5045 JOHN DEERE 5055

T AFE 241 TAFE 5245


MAHINDRA 475 MAHINDRA 575

MAHINDRA 605 SWARAJ 735

SWARAJ 744 SONALIKA RX42


Demand of Tractors based on HP Range

Different Tractor Brands offer wide HP range of Tractors from 15HP to 75 HP

in Indian Market. Above picture shows that in Nizamabad District Farmers use

15 HP to 60 HP Tractors, but among all 30HP-45HP range is dominating

followed by 45-60 HP.

0

20

40

60

80

100

120

15-

30

30-

45

45-

60

60-

75

Demand 1 113 52 7

1

113

52

7

Demand1%

65%

30%

4%

15-30

30-45

45-60

60-75


Among all samples

near to 100% know

about the Brand

Mahindra Tractors as

compare to other

brand of tractors.

Brand Awareness-

Brand Awareness of Mahindra Tractors-

Brand Awareness of Mahindra 605 Model-

97%

3%

Awareness of Mahindra Tractors

YES NO

64%

36%

YES NO

Most of the farmers

know about Mahindra

475,575 models but

most of the farmers

don’t know about

605(Arjun) Model.


Brand Awareness of Mahindra Finance-

Sources of Finance- Mode of Payment-(Installment)

76%

24%

Awareness

YES

NO

0

20

40

60

80

100

Finace Cash Bank

No

. o

f Fa

rme

rs

Source of Finace

10%

85%

5%

Installment Duration

12 Monthes

6 Monthes

3 Monthes


Above Chart described that

Mahindra loses its sales

due to less approached by

dealer but competitors’

dealer network is so

strong.

Customers influenced more

by dealer rather than

salesman.

Company Approach-

Approached by—

Mahindra Salesman Mahindra Dealer/Mahindra Showroom

Salesman Approach

81%

19%

Approached by Salesman

YES

NO73%

27%

Approached by Dealer/Mahindra Showroom

YES

NO

83%

5%12%

Knowledgeabl

e

Not

Knowledgeabl

e

Very

Knowledgeabl

e


Lost Customers of Different Tractor Brands

(Total Sample Size)-

“Among all tractor brands Mahindra Tractors has lost highest number of customers.”

Lost Customers of all Tractor Brands in Surveyed Mandal

“Nizamabad is more competitive mandal because Mahindra has lost his maximum no. of customers here.”

0 5 10 15 20

Mahindra & Mahindra

TAFE

John Deere

Swaraj

Sonalika

New Holland

50%

7%7%

25%8% 3%

Mahindra

&

Mahindra

TAFE

John

Deere

Swaraj

Sonalika

0

5

10

15

20

New Holland

Sonalika

Swaraj

TAFE

John Deere

Mahindra & Mahindra


FTB- First time

Buyer

RB- Repeat

Buyer

Price Comparison

Price of Mahindra Tractor Price Compare with existing Tractor

Type of Purchase

9%

81%

10%

Price of Mahindra Tractors

High

OK

Low

14%

12%

74%

Mahindra Price compare with your

Tractor

High

Low

Ok

FTB53%

RB47%


Farmer preference for selecting a Tractor

Farmers for choosing a Tractor first takes into consideration Product features

and after that to price, after sale process, finance options ,and dealer approach.

Consideration for Buying Mahindra Tractors

0

20

40

60

80

100

120

140 Price

Product Features

Distribution Network

Dealer Approach

Finance Options

After Sales Process

5%

34%

61%

Consideration for Buying Mahindra

Yes If Problem

Solved

Yes

No

Above Chart

described that most of

the customers don’t

want to buy Mahindra

because a lot of

problems and 5% of

customer will buy if

these problems

solved.


Key Reasons for buying Mahindra

Due to better mileage most of the farmers prefer Mahindra followed by easy availability of spare parts and its fewer prices.

Key Reasons for not buying Mahindra

0

5

10

15

20

25

30

35Better Mileage

Spare Parts Availability

Long Engine Life

Old Brand

Low Price of Spare Parts

Low Price of Tractors

0

5

10

15

20Minor Repair Problems

Gear Box Problem

Motion DownClutch Plate Problem

Skilled Mechanic

Unavailability


Customer Perception regarding different attributes of Tractor’s features

1. Engine & Fuel Efficiency

MM- Mahindra & Mahindra JD- John Deere SW- Swaraj TF-TAFE

NH- New Holland SN-Sonalika

Above Graph shows the perception map according to Rank (1-5) given by the

customers regarding fuel efficiency and Engine of different Brand of tractors.

The size of the bubble shows the market share of tractors i.e. big bubble size

has high market share following by others. X-axis shows the engine and Y axis

shows the fuel efficiency. Example- MM (Mahindra & Mahindra) shows high

market share among all and above bubble graph shows according to customer

perception Mahindra is good in fuel efficiency but not good in engine.

TF

SWSN

MM

JDNH

Engine

Fuel Efficiency


2. Hydraulic Power and After Sales Service-

MM- Mahindra & Mahindra JD- John Deere SW-Swaraj SN-Sonalika

TF- TAFE NH-New Holland

TF

SW

SN

MM

JD

NH

Hydraulic Power

After Sales Service

TF

SW

SN

MM

JDNH

Comfort & Safety

Aesthetics & Looks


Product Features

Above graph shows Mahindra is good in Aesthetics & looks, oil

consumption, fuel efficiency but bad in pulling power, Lifting capacity

and Hydraulic power according to the customer.

Approach

0%20%40%60%80%

100%

Product Features

Mahindra & Mahindra My Tractor Similar

020406080

100120140160180200

E1 E2 E3 E4 E5(a) E5(b) E5© E6 E7 E8 E9 E10 E11 E12 E13

No 46 8 48 58 28 46 12 68 99 58 92 98 88 8 13

Yes 122 160 120 110 140 122 156 100 99 110 76 70 80 160 155

No

. o

f R

esp

on

de

nts

Approach


Above Graph shows that in E6 Attribute the respondents who says no is high

.Salesman tell about only the product price and sometime product feature but

don’t tell about the farmer’s specific requirements and applications. The

highest respondents who says no is in E9 & E10 & E11.Salesman don’t tell

about the annual saving for purchasing a Mahindra Tractor. In most of villages

test drive and product demonstration has not been done.

Key Findings

No Approach by Mahindra Representatives/No coverage

After analyzing all the data it was found that M&M lost maximum of Hot and

New prospective customers in the Nizamabad district just because that M&M

Tractor dealer does not have sufficient salesman to take care of that vast

geographical area. 40% of the lost sales is because dealer’s salesman did not

contact those prospective customers. In other words we can say that inability

of salesman to reach to those prospective customers has turned up a

major reason of lost sales.

Bad Product Quality

50% of the lost sales is due to the bad product quality. The respondents also

elaborated on this issue that M&M tractors has many technical problems like-

the pressure of the FIP get down after every three years of usage, Gear box

makes noise in some specific model (275 & 475), Front Lifting, difficulty in

shifting gears, Low ground clearance, overhauling of engines after every 2-4

years, Large turning radius and bad experience with previous Mahindra

Tractors. Arjun 605 Heats earlier in field during harvesting. Leakage is also a

major problem in 475 sarpanch model.


Bad Quality of Approach

We lost 8% of the prospective customers because of bad quality of

approach and follow ups. Follow up has always been a big problem in

Nizamabad. The no of footfalls at the dealership is very high but follow up of

those enquiries is not done properly and those customers are convinced by

our competitors. Moreover most of the salesman at the Nizamabad dealership

is not seasoned and they need training on when and how to follow up. The

quality of approach has to be improved so that from next year onwards we do

not lose even a single customer because of the bad quality of approach.

Observations

It has been observed that farmers believe in tried and tested brands and

products. It means that they usually buy all those brands which they have

found performing well in the locality and this is the reason why some villages

are Mahindra dominated some John dominated and some TAFE dominated

etc. Any news related product/service related defect of a particular brand

spreads very quickly among the nearby farmers and this reduces the

reliability level on that particular brand.

In the Nizamabad district the brokers are playing a major role in

selling/ un-selling a particular brand. These brokers are mostly the local

people who can easily be believed by every prospective tractor customers

because of the social relationship. Now managing these brokers has become a

very big challenge because the brokerage which they ask is a hefty amount

and only those dealers can pay this brokerage which has sufficient cushion in

their profit margins.


Suggestions

1. Number of salesmen has to be increased. This will increase our coverage

area.

2. There is lack of seasoned and experienced salesman in the dealership and

most of them have joined recently, so they need quality training by our

channel care team.

3. There is an urgent need of designing some incentive programmers which

can make all the brokers loyal towards Mahindra brand and those brokers can

be managed easily. Incentives may not be necessarily in terms of cash but can

be in terms of kind, trips or assisting their children for getting good quality

education etc.

4. Most of the farmers said that there is scarcity of skilled tractor mechanic in

show room, so dealer should keep enough no of skilled mechanic for quick

solution of technical problems.


Market strategy

From the product point of view company should assure against quality and features of the Tractors. By improving the production and distribution efficiency company can eliminate the entry of competitors in to the market and meet the demand in appropriate time which finally brings profit through increasing the sales volume. From the market view customer awareness in compulsory which can be

achieved through conducting awareness programs like farmer meetings, field

demonstrations, field trails, sample distribution to farmers and campaigns.

Also if the awareness level is good the lag phase of adoption will be reduced.

By doing this, company can achieve profits through customer satisfaction by

increasing the sales as well as market share.


Comparison between different Brands of Tractors and

its unique feature

Brand Mahindra 575DI JOHN DEERE 5045D Price 680000 734600

HP 44 45

Engine No of cylinders 4 3

RPM 1900 2300

Cooling system Water coolant system, Forced Liquid cooled cooling system

Air filter Oil bath filter single element Dual element Dry type Air Cleaner

Clutch Single Single/Dual Clutch

No of gears 8F+2R 8F+4R, Collar shift

Transmission Sliding mesh (Partial constant optional )

Constant mesh/Forward Reverse Synchro

Side-shift gear No Yes

Lifting Capacity(Kg)

1485 1400

PTO HP 40 41

Driver space Low space Raised Platform more space for operator.

Power steering cylinder

2 1 with setting rod

Mahindra: More number of Cylinders available is 4 as compare to John Deere

it is 3.

John Deere: The Air filter contains Dual element & in Mahindra single element. There are 4R gears which provide good reverse power while puddling. It has side-shift gear system which is preferred by most of the farmers. It is having Dual clutch option.


Brand Arjun 605 JOHN DEERE 5055E Price 790000 795000

HP 60 55


RPM 2100 2400

Cooling system Forced Liquid cooled cooling system

Air filter Dual element Dry type Air Cleaner

Clutch Dual Clutch Dual Clutch

No of gears 8F+8R 9F+3R collar shift

Transmission Synchromesh Synchromesh

Side-shift gear No Yes

Lifting Capacity(Kg) 1600kg 1800 kg

PTO HP 57HP 52 HP

Brake Oil Immersed disk brakes Oil Immersed Multi Disc Brakes

Mahindra: Having more HP so more power as compare to JD 5055 and the

number of cylinders are also more.

More number of reverse gears so easy for handling.

John Deere: Good lifting capacity as compare to Arjun 605.

Side shift gear facility available.


Brand JD5042 Mahindra 475 Price 642500 640000

HP 42 42


RPM 2300 1200-1400

Cooling system Forced Liquid cooled cooling system

water cooled cooling system

Air filter Dual element Dry type Air Cleaner

Clutch Single/Dual Clutch Single

No of gears 8F+4R 8F+2R

Transmission Constant mesh Partially Constant mesh

Side-shift gear Yes no

Lifting Capacity(Kg) 1400 kg 1200 kg

PTO HP 39 38.5

Brake Oil immersed multi disc brakes

Mechanical dry disk brakes

Brand TAFE 241 Swaraj 735FE Price 650000 550000

HP 39 39


RPM 1650

Cooling system Water cooled

Air filter

Clutch single single

No of gears 8F+2R 8F+2R

Transmission

Side-shift gear Yes

Lifting Capacity(Kg) 1100 Kg 1000 kg

PTO HP

Driver space

Power stering cylinder

Brake Dry disc brakes (Dura Brakes)

Oil immersed disc brakes (Optional)


Mahindra: More number of cylinders as compared to JD5042.

John Deere: Side shift gear facility available which is preferred by farmers.

Good lifting capacity as compared to Mahindra 475.

Good brakes with oil immersed multi disc brakes.

Porter 5 Forces Analysis

BARGAINING POWER OF BUYER

LOW

THREAT OF SUBSTITUTE

LOW

THREAT OF ENTRY

MODERATE

BARGAINING POWER OF SUPPLIERS

LOW

RIVALARY

HIGH


Maintenance cost:-

Mahindra Tractors John Deere Tractors Parts Changing

Duration Cost Rs/unit

Parts Changing Duration

Cost

Dry Air Cleaner

300 hrs. 110 Dry Air Cleaner

1000 hrs. 900

Clutch Plate(Single)

Frequently changed

2680 Clutch plate(Set)

Not frequently changed

3800

Power Break (Plate) Size 6’

Frequently changed

Power Break (Plate) Size 6’


Power Steering

1000 hrs. 2000 Power steering

1500-1800 hrs.

2800

Hitch Nut Size 19

Frequently changed

25 Hitch Nut Size 21


45-60

Engine Oil 250 hrs. 2500 Engine oil 250 hrs. 2600 Gear Oil 1000 hrs. 10000 Gear oil 1000 hrs. 10800 Synchrokit 1 year 10000 Synchrokit Not

frequently changed

25000


Market potential of different tractor brands through

road show in Karimnagar(A.P.)

Purpose:-

To understand the market potential of all tractor brands in each mandal as

well as villages in Karimnagar district and find the three major problems that

causes the sales of different tractors.


Why Others Why not Mahindra

Strong Hydraulic Power, No Minor Repair Problems

Hydraulic Problem & Oil Leakage

Low Maintainace , High Exchange Rate Clutch Plate Problems & Motion Down

Better Mileage, Good After Sale Service Engine Heating & Power Steering Problems

High Lifting Capacity, Comfort & Safety Low Exchange Rate & Minor Repair Problems

Mileage and Low Price Sounding in Gear box & Bad Dealership Approach

Strong Hydraulic Power, No Minor Repair Problems

Gear Box Problems & Oil Leakage

Brand & Mileage

Mileage and Low Price Low Exchange Rate & Minor Repair Problems

S.No. 1 2 3 4 5 6 7 8 9 10 11

Vi l lage Name

Rajanapet

Almaspur

Virnapally

Nizamabad

Kanajarthy

Sangalapal ly

Sarampal ly

Wadloor

Kallepal ly

Mallampal ly

Mudimanikkayam

TOTAL

Mandal

Yel lareddypet

Bejjanki

Husnabad

Mahindra & Mahindra

12 1 20 3 1 5 2 1 2 15 3 65

John Deere

4 8 2 8 0 4 4 0 4 3 3 40

TAFE 1 2 4 0 0 1 0 0 2 0 0 10

Swara

j

2 1 1 6 2 10 0 10 3 3 20 58

Eicher 0 0 0 8 2 7 0 0 0 0 0 17

HMT 0 0 0 0 0 0 1 1 0 0 0 2

New Holland

0 0 0 0 5 0 0 0 0 0 0 5

Power

trac

0 0 0 0 0 0 3 0 0 0 0 3

Tota l 19 12 27 25 10 27 10 12 11 21 26 200

Leader

M&M JD M&M JD & EICHER

New Hol lan

d

Swaraj JD Swara j

JD M&M Swaraj


Gallery


SWOT ANALYSIS

Strengths

1. Top players in the world in terms of number of tractors sold.

2. High Market Share

3. New Product Development

Weakness

The company is highly dependent on the rural sector,and the rural sector in

turn is highly dependent on the monsoons. As a result, if there happen to be

bad monsoons (less of rains) for two consecutive years it could have an

adverse impact on the demand of tractors for the company.

Opportunity

The government has been trying to strengthen the exports of agricultural

products. As a result, the quality of agricultural products necessarily has to be

very high. In India, the penetration of tractors is 10 tractors per 1000

hectares of cropped area, which is much below the world average of 19

tractors for the same. Thus there is scope for the demand to increase.

Threats

The entry of foreign players in the tractors segment could pose a threat to the

company as these foreign players are technically more competitive than M &

M.


References: 1) Agricoop.nic.in

2) Tractor Manufacturers Association of India

3) IACR journals

4) Research Papers


ANNEXURE – I

Mahindra & Mahindra Ltd

SALES FUNNEL ANALYSIS QUESTIONANARE

NAME OF THE CUSTOMER:-________________________________________

ADDRESS:-___________________ DEALERSHIP:-________________________

TRACTOR MODEL OWNED:-________________ DATE OF PURCHASE:-___________

A What are three most important factors which influenced

your decision to purchase the tractor?

A1 Price

A2 Product features A3 Distribution network

A4 Dealers approach A5 Finance options

A6 After sale process

A7 Any other please specify

B Awareness

B1 Are you aware of Mahindra Tractors Yes( )/ No( )

B2 Are you aware about the Mahindra _____________ model Yes( )/ No( )

C Consideration

C1 Did you consider buying a Mahindra Tractor Yes( )/ No( ) C2 If yes ask why

C3 If no ask why

D Contact

D1 Were you approached by a Mahindra Representative/ Salesman Yes( )/ No( )

D2 Did you approach the Mahindra Dealer of Mahindra Showroom Yes( )/ No( )

E Approach

E1 Were you given any explanation about the company? Yes( )/ No( ) E2 Were you given any explanation about the Dealership? Yes( )/ No( )

E3 Were you invited to Dealership? Yes( )/ No( ) E4 Were you given any explanation about the product features and

quality? Yes( )/ No( )

E5 Were you told about the following benefits of the Mahindra tractors?

E5(a) Fuel Efficiency Yes( )/ No( )

E5(b) Hi-tech hydraulics Yes( )/ No( ) E5(c) No one company for last 20 years Yes( )/ No( )


E6 Were you asked about your specific requirement and applications?

Yes( )/ No( )

E7 Were model features vis-à-vis your requirement explained to you?

Yes( )/ No( )

E8 Were you suggested a suitable model based on your requirements?

Yes( )/ No( )

E9 Were you given any explanation on the annual savings from purchasing a Mahindra tractor

Yes( )/ No( )

E10 Were you offered a test drive on a Mahindra tractor? Yes( )/ No( ) E11 Was any product demonstration conducted for your benefit? Yes( )/ No( )

E12 Were you given any explanation on the finance option available? Yes( )/ No( ) E13 Were you given any referral of satisfied customers and/ or

opinion leaders Yes( )/ No( )

E14 How do you rate the Dealers/ Salesman’s approach? Very knowledgeable() Knowledgeable( ) Not knowledgeable( )

E15 Any other factor

F Product

How do you compare the Mahindra Tractor with your existing Tractor in terms of F1 Engine Similar( )My tractor is

better( )MM tractor is better( )

F1 a Fuel efficiency Similar( )My tractor is better( )MM tractor is better( )

F1 b Oil consumption Similar( )My tractor is better( )MM tractor is better( )

F1 c Pulling power Similar( )My tractor is better( )MM tractor is better( )

F1 d Life of engine Similar( )My tractor is better( )MM tractor is better( )

F2 Hydraulics

F2 a Jerking Similar( )My tractor is better( )MM tractor is better( )

F2 b Lifting capacity Similar( )My tractor is better( )MM tractor is better( )

F3 Transmission F3 a Ease of operation Similar( )My tractor is


F4 Your specific usage application Similar( )My tractor is



F5 Comfort and safety Similar( )My tractor is better( )MM tractor is better( )

F6 Aesthetics & looks Similar( )My tractor is better( )MM tractor is better( )

F7 After sales service Similar( )My tractor is better( )MM tractor is better( )

G Commercial

G1 The price of Mahindra tractor is High( ); Ok( ); Low( )

G2 How does the Mahindra price compare with your existing tractor?

High( ); Ok( ); Low( )

G3 Are you aware that Mahindra offers finance from its company Mahindra Finance Service Ltd.

Yes( )/ No( )

G4 What are the payment terms of tractor?

H What are the factors influenced you to buy your existing tractor

Name of the Interviewer: - _________________________________ Date:-______________

Type of purchase: - FTB/ RB

If RB Details of earlier tractor: - ______________ Brand, ____________Model__________Purchased

Source of Finance: - Bank/Cash/Pvt.Finance: - ______________

If Bank: - ________________________Bank, _________________ Branch, __________________

Land Details: - _________________ Acre

Price of Tractor: -_________________

Thank you very much for your time and support. . .

mahindra report 2014 final sudarshan

Data & Analytics