Lauching of TRACTOR in Rural Marketing

PREFACE 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 of farm work, significantly altered the structure of agriculture, and freed up millions of people to be absorbed into the rapidly growing manufacturing and service 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 mowing hay and for harvesting of wheat and other small grains.

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TRACTOR India has only about eight tractors per thousand hectares, versus the Asian average of 14. The potential demand for tractors 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 determinants of tractor demand. The refinance of bank credit to agriculture by NABARD is also a strong influence. The presence of a countrywide distribution system is also important in insulating companies from monsoon failures in some parts of the country. Upward revisions 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 tractor 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 manufacturers adapt their products to the farm practices and soil conditions of the regions that they service. Brand concentration in regions is, therefore, common. The availability of irrigation facilities determines the degree of farm mechanization and, consequently, affects the demand for tractors in any particular region. States with a higher irrigated area have a greater penetration level of tractors. Tractor sales in India were earlier concentrated in the northern states of Punjab, Haryana and Uttar Pradesh (which accounted for nearly 50% of total sales), owing to the developed irrigation facilities in these States. However, the south and the west have emerged as potential markets as well. Increasing sales in the southern and western States come from an improvement in irrigation facilities and increasing mechanization of agriculture. The eastern, southern and western States of Gujarat, Maharashtra and Rajasthan are likely to be the most attractive markets for tractors in the future.

INDUSTRY STRUCTURE (2)

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, along 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 2,000 tractors in FY1971, the volume sales of the industry reached 2,66,073 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 un remunerative 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%. Three multinationals, New Ford Holland, John Deere and Greaves, have entered the market in the past two years, but their combined sales have been below 6,000 units. All Indian brands, except Punjab Tractors Ltd, have had overseas tie-ups and support since the beginning.

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BRAND NAME “MAJBUTI AUR SHAAN KE SANG – BAJRANG”

The power points of the tractor are STRENGH & PRIDE on these basis name BAJRANG is given to Tractors as BAJRANG is the name of Powerful God in the Universe BAJRANGBALE [HANUMAN] and the name of any God in anything bring the Pride in it. It was also noted the rural consumers are more regional and great believers of God. On these basis the tractors were name 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

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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 sparkdriven 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 controls 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.

MODELS

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[BELOW 30 HP [HORSE POWER] HC 2521 • • • • •

HC 2522

25 Horse Power Category Direct Injection Engine More Speed Hydraulic Brakes Automatic Hydraulic Control System

29 Horse Power Category Efficient Direct Injection More Speed Mechanical Disc Brakes Complete Water Sealing Air Compressor Automatic Hydraulic System

[30 – 40 HP [HORSE POWER] HC 3221

HC 3444

35 Horse Power Category Powerful AVL Designed Engine More Speed Mechanical Disc Brakes Complete Water Sealing Air Compressor Automatic Hydraulic System

37Horse Power Category 4 - Stroke, Direct Injection, Diesel Engine Powerful Engine, Direct Injection Engine Mechanical Disc Brakes Complete Water Sealing Air Compressor Automatic Hydraulic System New Strengthened Bonnet

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UNIQUE SELLING PROPOSITION

Superior Performing Tractors at Competitive Prices High flexibility to farmers to perform all types of agricultural operations in any terrain.

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P’s PRODUCT The tractor is used for pulling or pushing agricultural machinery or trailers, for plowing, tilling, disking, harrowing, planting, and similar tasks. In 1892, John Froelich built the first gasoline powered tractor in Clayton County, Iowa. The tractor is 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 in front of the driver with two steerable wheels below 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 commercialisation 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 which in which the company will start its business is North (Punjab, Haryana & Uttar Pradesh) West (Gujarat & Maharashtra)

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PRICE

PRODUCT NAME HC 2521 HC 2522 HC 3221 HC 3444

SEGMEMT 25 Horse Power 29 Horse Power 35 Horse Power 37Horse Power

PRICE 4,25,000/4,40,000/7,25,000/7,40,000/-

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

Promotion As the promotion part is considered, along with the huge advertising compaign that the company is carrying out I 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 customer in every season.

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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 villages for penetration in market.

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PRODUCT LIFE CYCLE OF MY PRODUCT 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. Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage. 1) INTRODUCTION STAGE: In Tractor business name place very important role till that time the name is not know or not have place in market tractor will not sale. In the introduction stage I will focus of sales rather than profit for the purpose of name I will try to make people more aware about launching of my product so as to get maximum number of customers. My marketing strategies will be based on the features of my product. Here I will try to expand my market share. 2) GROWTH STAGE: In the growth stage my focus will be on improving the product quality and add new product features and Add new policies, enter new market segments. Which will be CENTRAL (Madhya Pradesh & Rajasthan) EAST (Bihar, West Bengal, Orissa & Assam) SOUTH (Andhra Pradesh, Tamil Nadu, Karnataka & Kerala. I will also focus on increasing distribution coverage and enter new distribution channels. Then my advertising strategies will Shift from productawareness advertising to product-preference advertising. 3) MATURITY STAGE: Here I will try to Expand number of brand 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.

I will also modify marketing mix of my products. Prices Distribution, Advertising, Sales promotion, Personal selling, Services

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SEGMENTATION & TARGETING:

HP

SEGMENTATION

BELOW 30

NORTH WEST NORTH NORTH WEST

ABOVE 30

TARGETED CUSTOMER UTTAR PRADESH GUJARAT PUNJAB HARYANA MAHARASHTRA

FACTORS CONSIDERING SEGEMENTATION AND TARGETING:  AGRICULTURE INCOME  INCOME LEVEL  SOIL [FERTILITY]  POPULATION  COMPETITORS  CLIMATE  INFRASTUCTURE

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ADVERTISING For Advertising I will mainly focus on the National language to be used in my Advertisements. As it is acceptable in the Rural Area & I would also prefer the use of Regional languages. That means the local language 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 I will 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 I will like to place the Company’s hoardings on the areas like Main Roads, Chowks, Entrance of the shop etc. & on special occasions like Melas, Fairs, Exhibitions the Banners can be used as effective media of Advertising. SHUTTER PAINTINGS I will focus my Product & Brand through using the Shutters of the Dealers & Retailers to be painted with the Companies name & featuring the product. So that the product is focused to each one passing by. WALL PAINTINGS I will also use Wall Painting as, Through Wall Paintings in main, main areas of the villages or the territory will have a impact on the people about the presence of the Brand in the village.

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