Mahindra Tractors

SUMMER TRAINING REPORT ON “Promotion of new product Mahindra Yuvraj-215 In Lucknow district” SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF MASTER 0F BUSINESS ADMINISTRATION BY G.B. TECHNICAL UNIVERSITY

SESSION: 2011-2012

Submitted to:

Submitted by:

Mr. Ravi Karan Singh

Azhar siddeeq

Asst. Professor

Roll No. 1044270033

SBS-CTM, Lucknow

MBA III sem

Under the guidance of Mr. Ashish saraswat

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Declaration I hereby declare that this report on “Promotion of new product

Yuvraj-215 In Lucknow district ” has been written and prepared by me during the academic year 2011-2012.This project was done under the able guidance and supervision of Ekta mam , Faculty, SBS CTM and Ashish Saraswat Sir & Aknsha Mam ., Mahindra tractors , Company Ltd., Lucknow in partial fulfillment of the requirement for the Master Of Business Administration Degree course of the SBS CTM. I also declare that this project is the result of my own effort and has not been submitted to any other institution for the award of any Degree or Diploma.

Place: Lucknow Azhar Siddeeq

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Acknowledgements If words are considered to be signs of gratitude then let these words convey the very same My sincere gratitude to Mahindra & Mahindra co. ltd for providing me with an opportunity to work with Mahindra tractors and giving necessary directions on doing this project to the best of my abilities. I am highly indebted to Akansha mam , Channel development manager of Mahindra tractor & Ashish saraswat sir Area manager of Mahindra tractor. , who has provided me with the necessary information and also for the support extended out to me in the completion of this report and his valuable suggestion and comments on bringing out this report in the best way possible. I also thankEkta mam, SBS CTM , Lucknow , who has sincerely supported me with the valuable insights into the completion of this project. I am grateful to all faculty members of SBS CTM , Lucknow and my friends who have helped me in the successful completion of this project.

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Table of contents

Pages

Sr. No.

Particulars

1

Introduction

1.1

Introduction to the project

7

1.2

Scope of the project

8

1.3 1.4 1.5 1.6

Importance of the study Objectives of the study Research Methodology Limitations of the study

9 10 11-16 17

2

Industrial profile of farm equipment sector

2.1

INDUSTRY SCENARIOS

19

2.2 2.3 2.4

19 20 21

2.5

History of the Tractor Uses of Tractors Role of Tractors in Indian Agriculture The Indian Tractor Market

3

Company Profile

3.1

Profile of Mahindra & Mahindra Tractors Mahindra Tractor Histories

3.2

6 - 17

4

17 - 23

22-23

24 - 46 24-25 26-28

3.3

About Mahindra Group

29-42

3.4

Product Profile

43-46

4

THEORETICAL FRAMEWORK

4.1

Definition of PROMOTION

48

4.2

COMPONANTS OF

49

47 - 54

PROMOTION 1. ADVERTISING:

49-50

2. SALES PROMOTION:

50-52

3. PERSONAL SELLING:

52

4. DIRECT MARKETING:

53

5. PUBLIC RELATIONS:

54

5

Plans & Actions

55 - 64

6

Data analysis

65 - 82

7

Recommendations & Findings

83 - 84

8

Conclusion

85

9

Bibliography

86

5

CHAPTER – I Introduction Scope of the project Importance of the study Objectives of the Study Research Methodology Limitations of the Study

6

INTRODUCTION TO THE PROJECT This chapter explains about the background and states the objectives of the project. The purpose of the study is to create the awareness of Yuvraj-215 and increase the penetration of the product in district Lucknow. Promotion is comprehensive terms, and covers the entire gamut of advertising, publicity, public relations, personal selling and sales promotion. Sales promotion is thus a part of promotion and is restricted to direct inducement on a short-term basis services. The same promotional strategy was applied by Mahindra to promote their products and boost up its sales. Mahindra performed promotional activities like canopy, live demonstration displaying the product in Ek Mahindra outlets, testimonial, brusher distribution & one to one product pitching to mango orchard owners, farm owners, contractors & traders etc. In the present competitive world if any business organization has to survive, it needs to keep an eye on various forces operating in the market. More over competitors constantly try to win over others. In this scenario, every business organization needs to monitor the changes taking place in the market so that they are not caught. Market research is an efficiency tool in the hands of a marketer that helps him to take changes taking place in the market.

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SCOPE OF THE PROJECT •

The scope of the study is limited only to the Lucknow city.

•

The main purpose of survey is to create the awareness of Yuvraj215 to Boost up its sales.

•

The promotional activity was restricted only for Lucknow.

•

The activities were carried out only at specified locations.

8

IMPORTANCE OF THE STUDY This study is important in the sense as we can measure the position of the product after analyzing the data that we have with us. This study also gives an experience to the management student who is doing the research, as it is the base of marketing.

9

Objectives of the study 1. To create awareness of Yuvraj 215 and increase the penetration of Product in Lucknow district. 1

2. To identify & explore new market for Yuvraj215.

2 3. To find out the measures to boost up sales. 1

4. To analyze the awareness among public about the Mahindra

1

Tractors. 5. To analyze the awareness among the public about Yuvraj 215.

2

6. To find out the reasons for low sales of Yuvraj215.

1

7. To conduct promotional activity to boost sales of Mahindra

0

Yuvraj215.

1

8. To conduct promotional activity in various places like Cattle

2

market, Ek Mahindra outlet etc. 3 9. To increase the prescription rate among the respondents by using promotional tools.

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RESEARCH METHODOLOGY DEFINITION:

Research refers to „a search for knowledge‟. It can be defined as a scientific and systematic search for pertinent information on a specific topic. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deduction and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis – Clifford Wood.

RESEARCH METHODOLOGY It is a way to systematically solve the research problem. It may be understood as science of studying how research is done scientifically. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with the logic behind them. In general, methodology is an optional framework within which the facts are placed so that the meaning may be seen more clearly. The sources of data shown that designing of a research plan calls for decision on the data sources are research approaches (primary and secondary data) research instruments (observation survey experiment) sampling plan and contact methods (personal interviews).

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RESEARCH DESIGN A research design is the determination and statement of the general research approach or strategy adopted for the particular project. It is the heart of the planning. If the design adheres to the research objectives, it will ensure that the client need will be served. Research design is a plan structured and strategies of investigation. It is the arrangement of condition and analysis of data in a manner to combine relevance to the research purpose with economy in procedure. •

In order to achieve the objective it was necessary to talk to the customers and public to draws the conclusions regarding the objective.

•

For visiting the customers and publics to collect the relevant information; a questionnaire has to be designed. The questionnaire was designed in such a manner to achieve the objective of the research.

•

The sample size taken is 100 customers and publics.

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TYPE OF RESEARCH In this project, Descriptive Research has been used.

Descriptive Research: This is kind of research structure which is concerned with describing the characteristics of the problem. In this way the main purpose of such a research design is to present a descriptive picture about the marketing problem on the basis of actual facts. For this it is important to obtain the complete and actual information about the subjects.

NATURE OF RESEARCH Quantitative type of research has been used. As all the data was based on numerical figures obtained in the survey.

TYPE OF QUESTIONS The questions were self-administered, with a view to obtain maximum information from the respondent that is why the questions were straightforward.

TYPE OF QUESTIONNAIRE The entire questionnaire was standardized and formalized.

TYPE OF ANALYSIS As all the data found in the survey is totally numerically so the type of analysis was statistical.

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SOURCE OF DATA •

PRIMARY DATA

The data which is collected fresh and for the first time and thus happen to be the original one characteristic is called as the primary data. 1

• SECONDARY DATA The data which is already collected by someone else and which have been passed through the statistical process is known as the secondary data.

METHODS OF COLLECTING PRIMARY DATA Interview Method In this project I have taken the questionnaire method for collecting necessary information. In this method a questionnaire is given to the person concerned with question to answers the question and return the questionnaire. A questionnaire consists of number of question printed in a definite order on a form or a set of form.

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SELECTION OF THE SAMPLE/SAMPLING PLAN This is one of the most important steps of a research design procedure. Generally, in most of the marketing studies on sample or most of the sub group of the total population pertaining to the subject is included on the place of the universe. The following things are primarily considered in the sample:-

• Sample size The sample size of the population was 100 respondents.

• Sample Population A survey of people who either own or plan to purchase tractor and on located in Lucknow city only.

1 2 3 4 5 6 7

• Sample extent Mohan lalganj Gosai ganj Malihabad Maal Bakshi ka talab Itaonja

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• Sampling Methods The sampling method for the survey was random sampling. Random sampling suggest away of sample selection where in any item of the population is likely to be selected in a sample as any other item it means that all items of the population have equal probability of being selected in the sample.

SECONDARY DATA COLLECTION The report mainly consists of a data from the primary source gathered the schedule of questions. Questionnaire is the formal tool of asking questions directly from respondents by which questions are asked. Information about the product is taken from various sources such as websites, newspapers etc

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Limitations of the Study 

Time constraint has prohibited from going deep into the subject.



The information obtained or the collection of data is limited.



The study is purely academic.



Due to time, constraints the study is restrict to Lucknow city only.



Only the customers of Lucknow district were considered as Respondents.



The survey was conducted in this rural sector of respondents.



The information provided by respondents could be biased.

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Chapter-2

INDUSTRY SCENARIOS History of the Tractor Uses of Tractors Role of Tractors in Indian Agriculture The Indian Tractor Market

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INDUSTRY SCENARIOS 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 etc.

History of the Tractor The word tractor was derived from the combining parts of the word tractor and motor and was first noted in a patent issued in USA in 1890. A self-profiled power unit used to pull 100 to carry and operate till age cultivation harvesting, machinery to provide power take of or other, power out let a drive stationary and down implements, machinery as distinguish from tractor to pro puller steam engine tractors. Tractor was first used during the 1870's these tractors ‘called tractors engine were large four wheeled machine driven by steam. They provided enough power to pall as money as 40 plough they were too awkward to be practical. The first tractors in the since of powered traction vehicles, grew out of the stationary and portable steam engine operated on farms in 19 the century and used to hour plows by 1890's.

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Uses of Tractors

Following are the uses of tractor. 1. In the field of agriculture tractor have on important role to play in rising productivity. 2. Tractor is used in the field of transportation. The fertilizers can be carried to the field & the produce to the market with the help of tractors. It is also for the purpose of transportation goods from one place to another. 3. Through the use of tractor farm practices were revolutionized & agriculture crops were increased per hectare. Mechanized farming becomes possible through the use of tractors. 4. In stone crushers before the blasting of rocks drilling machines are used to drill the rocks with the help of tractors. 5.

Not only has animal power been displaced & human effort reduced

through the use of tractors.

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Role of Tractors in Indian Agriculture India has always been heavily dependent on agriculture for its economic growth. It follows that mechanized farming would increase agriculture output in the given the huge trucks of land which cultivated are would assume that tractors are sold in a big way in our country. Indian agriculture is as old as civilization itself & the Indian farmer has the benefit of a vast past experience the yield of crops in India are very low when compared to even some of the south east when compared to even some of the south east Asian countries. Agriculture forms the backbone of the Indian economy & despite concerted industrialization in the last four decades; agriculture occupies a place of pride. Being the largest industry in India, it is the source of livelihood for over 70% of the national income. Its importance in industrial development in the supply of raw-materials to leading industries like jute, textile, sugar etc, is very high. Agriculture increase national income & it helps in industrial development, agriculture helps for the promotion of international trade & the development of agriculture is essential for economic growth, the significance of agriculture in India arises also from the fact that the development in agriculture is an essential for the development of the national economics. Though the experience of Indian farmer the yields crops in India very low when compare to other countries. For this reasons are quite obviously mono cropping & repeated use of land without rest is one problem is the efficient use of good fertilizers expect domestic fertilizers also primitive & traditional, besides the wooden plough, hoe, sickle & other old method of practicing agriculture no any mechanical or other devices are used. By mechanization of agriculture, we mean the replacement of animal & human power by machinery & pouching done by tractors. Sowing & putting of fertilizers by the drill & reaping & thrashing by the combined harvester & so on. The tractors

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will so be used in transporting crops to markets. By using tractors, crops can be easily taken.

The Indian Tractor Market The Indian tractor industry, dominated since time immemorial by a few known brands, is in the process of a change. A look at the average growth rate recorded by the tractor industry point towards a general slowdown. The growth rate for the eight month period April- November 1996 has dropped to 13% from 16% recoded during the previous year. Among the 3 Indian majors, Mahindra & Mahindra Tractor &Farm Equipment (TAFE) & Punjab tractors, only M&M has recorded a marginal drop in market share. Overall all of them have witnessed increased sales in terms of volume. As for the others which include the links of Eicher, HMT, ESCORTS etc., there has been steady Eros the market share. A begin state policy, which provides the buyer subsidies & soft loans has seen the tractors become a popular substitute for the LCV as utility vehicle in rural areas. Due to the general slowdown in the growth rate of the Economy, the industry expects to slow down. The growth rate in tractor declined from 18.5% in 1994-95 to 17.3% in 1995-96 & 1996-97 (April-Nov). But there is one company which has defined this entire ‗slowdown‘pattern & is growing at a steady pace. The co. is Punjab Tractors Ltd. The market share of Punjab tractors has increased from 11% to 14.9% in 1996-97 (April- December). It overtook Eicher in 93-94& Farm Equipment (TAPE). The future of the tractor industry will see a shakeout of sorts. The small players will either have to survive. According to experts, ten years from now, the market will stagnate. If at all there is a market that will grow, it will be one for replacements. Till then Tractor players will continue to trudge along slowly maintaining a 5-6 percent growth rate. Hence the performance of the companies, from the automobile industry that have featured in this year's top50 reveals that though the industry is in the grip of recession players with very good fundamentals will always continue to reward the investors. The Indian tractor industry sold approximately 2.2 lakh tractors between, April 1996&March 1997. On an average the tractor market gas grown by 6% to 7% each year

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since 1993. When the industry was of around 1.4 lakh tractors in all these years some of the companies had limited production capacities & the customer had to wait for most popular models. These problems were more acute in the season & often aggravated by the Short supply of premium models. However, since October 1996, a distinct change has been observed in the tractor market. All tractors models, including the so called premium products, are readily available in the show room. The main reason for this phenomenon is that all tractor manufacturers have been gradually increasing their production volume in the last few years and presently the total production capacity of all the tractor manufacturers has reached approximately 2.7 lakh units. This will ease the supply position of tractors and in times to come the customer will not have any waiting period for a tractor.

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Profile of Mahindra & Mahindra Tractors

Mahindra and Mahindra Limited were 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 companies 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. Mahindra and Mahindra began operations, with assembly of jeeps imported in semi knocked down (SKD) condition form wills, USA Mahindra and Mahindra started manufacturing jeep in collaboration with wily overland corporation and American motor cooperation (now parts of the Chrysler group) in 1954 and LCVs in 1965.

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Tractor production started in 1965 in a joint venture company with technical collaboration of international harvester company Chicago, USA. This company was merged with M and M in 1977. M and M is originally a principal supplier to the government for defense and Other departments. M and M has restructured its operations. While the focus is an automotive and tractor divisions most of the other business including IT, Infrastructure and financial services have been hired off into new ventures. Mr. Anand Mahindra is a member of the class of 1977 Harvard College, Cambridge; mustache sets form where he graduated manger cum laude (high honors). In 1981 he secured on MBA from the Harvard business school in Boston after returning the India he joined Mahindra urine steel company ltd. In 1989 he was appointed president and deputy-managing director of MUSCO. In April 1997, he moved over to M and M as the deputy- managing director. In April 1997, he was appointed as the managing director by the board of M and M. Mr. Mahindra was also the co promoter and is the chairman of total Mahindra finance ltd. Mr. Mahindra writes frequently on business and general economic subject is leading business and writes frequently on business and general economic subject is leading business and Business magazines.

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Mahindra Tractor Histories

From army vehicles to farm tractors to major automobile manufacturing, Mahindra's relationship with American industry goes back quite a few years. American GI's who served in India during World War II recognize our parent company, Mahindra & Mahindra, which in l945 was selected to assemble the famous Willis Jeep. Following Indian independence in 1947, Mahindra & Mahindra charted a course of product expansion and globalization. The philosophy led to the company’s entrance into the worldwide tractor. In 1962, M&M formed a joint venture with International Harvester to make tractors carrying the name Mahindra name-plate for the Indian market. Armed with engineering, tooling and manufacturing know-how gained from this relationship, M&M-a major auto maker- developed its first tractor, the B-275. This successor to International Harvester's incredibly popular B-414 is still the basis for some current Mahindra models.

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Mahindra & Mahindra began manufacturing tractors in the early 1960s for the Indian market. Nearly 50 years later, Mahindra has become one of the top three tractor companies in the world with annual sales above 150,000 and over 1.6 million tractors sold to date. Mahindra products are making farms more prosperous in more than forty countries on six continents. Following the vision of farm-tech prosperity, it has also expanded into farm-support services, including agri-mechanization solutions under Mahindra AppliTrac; seeds, crop protection, and market linkages and distribution through Mahindra ShubhLabh; and agri-support information and counseling through the Samriddhi Initiative. Through this network of services, it aims to empower the rural farmer and transform rural productivity, income, and living standards. It wants to improve farm lifestyles by making hard work easier, increasing yields, and increasing returns. All Mahindra tractor brands, ranging from the 15 HP engine to 75 HP, have been designed in close communication with farmers about their day-to-day tractor usage and farming practices. Mahindra farm equipment and services provide a comprehensive support system to help farmers prosper. Mahindra see a tremendous latent demand for tractors in India. Less than 10 percent of all farmers own tractors, and 93 million of 116 million farm plots smaller than five acres. Mahindra’s small, low-cost tractors have the potential to revolutionize these farmers’ productivity and work experience by mechanizing small farms for the first time, and their larger tractors help farmers continue to grow. Mahindra has been the market leader in India for nearly three decades with a market share above 40 percent. This close relationship to Indian agricultural development has given Mahindra extensive expertise in designing and manufacturing farm equipment in response to local conditions, enabling them to enter foreign markets across the world. Today, Mahindra has footprints in the United States, China, Australia, New Zealand, Africa (Nigeria, Mali, Chad, Gambia, Angola, Sudan, Ghana, Morocco), Latin America (Chile, Argentina, Brazil, Venezuela, Central America and the Caribbean), South Asia (Sri Lanka, Bangladesh, Nepal), the Middle East (Iran, Syria) and Eastern Europe (Serbia, Turkey, Macedonia). It has a customer base of 1.45 million—and growing.

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About Mahindra Group

Founded in 1945 as a steel trading company, it entered automotive manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, it has diversified into many new businesses in order to better meet the needs of its customers. It follows a unique business model of creating empowered companies that enjoy the best of entrepreneurial independence and Group-wide synergies. This principle has led its growth into a US $12.5 billion multinational group with more than 119,900 employees in over 100 countries across the globe. Today, its operations span 18 key industries that form the foundation of every modern economy: aerospace, aftermarket, agribusiness, automotive, components, construction equipment, consulting services, defense, energy, farm equipment, finance and insurance, industrial equipment, information technology, leisure and hospitality, logistics, real estate, retail, and two wheelers.

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31

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Leadership

The company has always believed that ethics and good governance coupled with vision and grit are fundamental to being a successful business, and its leadership team embodies these beliefs.

Keshub Mahindra

Chairman-Mahindra & Mahindra For over five decades, Keshub Mahindra has enabled Mahindra and its people to rise.

He joined Mahindra & Mahindra in 1947 and became

Chairman in 1963. He continues to be involved with the day-to-day activities of the company today and has literally been the backbone of the company.

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Anand Mahindra

Vice chairman& Managing Director –M & M

Anand Mahindra started off at Mahindra in 1981 when he joined Mahindra Ugine Steel Co (MUSCO), a major producer of specialty steels, as Executive Assistant to the Finance Director. In 1989, he was appointed President and Deputy Managing Director of the company. While at MUSCO, Anand spearheaded Mahindra’s growth and diversification into new business areas like real estate and hospitality management. In 1991, he was appointed Deputy Managing Director of Mahindra & Mahindra, the country’s leading producer of tractors and off-road vehicles. He initiated a comprehensive change program to make the company an efficient and aggressive competitor in the new liberalized economic environment in India. In 1997, he was promoted to Managing Director, and in 2003 he also became Vice Chairman.

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The group executive board (GEB)

The Group Executive Board (GEB) Made up of people from all segments of industry, the GEB explores synergies between all its businesses to unite its goals and forge strategic plans. Anita Arjundas CEO – Real Estate Sector and Managing Director, Mahindra Lifespace Developers

Zhooben Bhiwandiwala Executive Vice President & Managing Partner – Mahindra Partners Division

Bharat Doshi Executive Director & Group CFO

Rajeev Dubey President – Group HR & Aftermarket Sector, Mahindra & Mahindra

Pawan Goenka President – Automotive & Farm Equipment Sectors

C.P. Gurnani Chief Executive Officer – Mahindra Satyam

Ruzbeh Irani Executive Vice President – Corporate Strategy & Chief Brand Officer, Mahindra Group

Ramesh Iyer Managing Director – Mahindra & Mahindra Financial Services

Rajesh Jejurikar Chief Executive – Automotive Division

Romesh Kaul Global CEO – Gears Business, Systech Sector

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Harsh Kumar Managing Director – Mahindra Intertrade & Mahindra Steel Service Centre

Hemant Luthra President – Systech Sector

Anand Mahindra Vice Chairman & Managing Director – Mahindra & Mahindra

Anoop Mathur President – Two Wheeler Sector

Bishwambhar Mishra Chief Executive - Tractor & Farm Mechanization, Farm Equipment Sector

V.S. Parthasarathy Group CIO, Executive Vice President Finance, M&A

Uday Phadke President – Finance, Legal & Financial Services Sector

Rajiv Sawhney CEO, Mahindra Holidays & Resorts India Ltd.

Pravin Shah Chief Executive – International Operations, Automotive & Farm Equipment Sectors

S.P. Shukla Special Group Projects, Member of the Group Executive Board

Rajan Wadhera Chief Executive —Technology, Product Development and Sourcing, Automotive & Farm Equipment Sectors

Ulhas Yargop President — Information Technology Sector & CTO, Mahindra Group

GUIDING PRINCIPLE 36

BRAND

Since 1945, The Company has been built around the core idea that

people

will

succeed

if

they

are

just

given

the

opportunity. Employees across the Group constantly challenge conventional thinking to create solutions that make a significant difference in the lives of customers. That is why everything Company build—be it a tractor, financial service, solar-powered lamp, or software—is designed to empower you to reach your potential.

Internally, Company follow three basic tenets—accepting no limits,

thinking alternatively , and driving positive change in everything it does. These brand pillars guide all actions of company and business decisions from deciding whether to enter a new field or planning a portfolio of services.

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Accepting No Limits-

Company accept no limits, and ask the same of everyone else. In return, it works relentlessly to provide the tools, information, and inspiration to push past limitations and comfort zones. This challenger spirit galvanized it to meet the oil crisis in the 1970s by reengineering its fuel-efficient tractor engines for utility vehicles. It led the company to take on the challenge of designing the Scorpio utility vehicle at a cost that many industry experts thought was impossibly low. Company has created completely new business models to enter areas others had written off or ignored, like its leading hospitality business and its rural financial services. And company just registered its highest ever profits despite the worst global recession since the Great Depression. This determination influences every aspect of its culture and its employees. As a result, each Mahindra business constantly pushes the envelope and raises the bar as it strive to deliver better value to its customers.

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Alternative Thinking-

Alternative thinking means solving problems in ways no one has thought of before, by using fewer resources and entering markets thought to be unreachable. Take the Scorpio for example—Company developed its best-in-class utility vehicle from the ground up using a process that put drivers’ needs first. its Energy Solutions help businesses keep going when everyone else’s lights go out. Company builds two wheelers that provide affordable mobility solutions to more people. And its extensive array of innovative IT services are increasing productivity at some of the world’s leading companies. Thinking alternatively isn’t always easy, but it’s always worth it.

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Driving positive change-

Mahindra is a business with a conscience. Every product Mahindra make and each market Mahindra explore must make sound economic sense, but it just so happens that smart business decisions are often good for people and communities as well. Mahindra strive to spread positive impact through its products and services by greening its manufacturing process and by being a good employer. Mahindra want to be counted among the global companies that make incredible products and services, but it also wishes to be recognized for creating a better world. From building green homes with the most eco-friendly materials to providing loans to rural entrepreneurs, from designing goods carriers that run on compressed natural gas (CNG) to offering educational programs and supporting Indian theater, Mahindra strive to make a positive impact on all the lives it touches.

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Purpose & Values

Motivation

to

give

best

every

day comes

from

its

core

purpose: Mahindra will challenge conventional thinking and innovatively use its all resources to drive positive change in the lives of its stakeholders and communities across the world—to enable them to Rise. Its products and services support its customers’ ambitions to improve their living standards; its responsible business practices positively engage the communities it joins through employment, education, and outreach; and its commitment to sustainable business is bringing green technology and awareness into the mainstream through its products, services, and lightfootprint manufacturing processes. This commitment to sustainability—social, economic, and environmental— rests upon a set of core values. They are an amalgamation of what it has been, what it is, and what it wants to be. These values are the compass that guides its actions, both personal and corporate. They are:

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Good corporate citizenship Mahindra will continue to seek long-term success in alignment with the needs of the communities it serves. It will do this without compromising on ethical business standards.

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

Customer first Mahindra exist and prosper only because of the customer. It will respond to the changing needs and expectations of it customers speedily, courteously and effectively.

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

Dignity of the individual Mahindra will value individual dignity, uphold the right to express disagreement and respect the time and efforts of others. Through its actions, it will nurture fairness, trust, and transparency.

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Mahindra Yuvraj 215 43

Mahindra & Mahindra recently launched its 15HP tractor called Yuvraj 215 priced at Rs 185215. Targeting the small and marginal farmer with an average landholding of two to five acres of land.

ENGINE: Engine Hp

15HP

No. of cylinder

1 cylinder

Power (Displacement)

863.4 CC

Rated RPM

2300 rpm

Air cleaner

wet type

Cooling

Water-cooled

Emission

BS iii

Transmission: Types No. of speed Maximum speed

Sliding mash 6 Forward, 3 rivers 25.62 Km / Hr

Maximum reverse speed

5.51 Km / Hr

Brakes

Dry Disk brakes

Clutch Type

Single plate dry type

Hydraulics:

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Types

Live Addc

Hydraulic on standard frame

450 Kg

Pump Type

Gear Pump

Power: Transmission oil

15-letter common with hydraulics

Fuel tank capacity

23 Letter

Cooling system

2.5 letter

Engine pump

1.5letter / 2.5 letter

Steering box

0.325 letter

Tractor Details: Size of front wheel

5.20 X 14.8 pr

Size of back wheel

8.00 X 18.6 pr

Wheel base

1485 mm

Front wheel track

903 mm

Back wheel track

1003 mm

Weight of Tractor

780 kg

Turning radios with brake

2.4 mm

Turning radios without brake

2.6 mm

Ground clearance

260 mm

Electrics:

45

Start Motor

pre engorging

Alternate

12 V, 43 AMP-inbuilt railulater

Battery Power

12 v, 50 Ah, 20 Hours on discharge rate

Speed chart:

Gear

Speed In Km / Hr

LT

2.04

L2

3.9

L3

5.79

H1

9.05

H2

17.24

H3

25.62

R1

1.95

R2

3.71

R3

5.51

46

Chapter-3

Definition of PROMOTION COMPONANTS OF PROMOTION ADVERTISING: SALES PROMOTION: PERSONAL SELLING DIRECT MARKETING: PUBLIC RELATIONS:

THEORETICAL FRAMEWORK

47

PROMOTION Promotion is an attempt to influence. More specifically, PROMOTION is the element in an organization’s marketing mix that serves to inform, persuade and remind the market of a product and/or the organization selling it, in hopes of influencing the recipient’s feelings, beliefs, or behavior. Out of 4 Ps of marketing i.e. product, price, place, and promotion, the most important role is of 4th P i.e. promotion .

ROLE OF PROMOTION IN MARKETING •

Promotions help marketers to communicate information to potential customers. This information could be about the product’s Existence (Awareness), value and benefits offered by products.

•

A well designed promotion mix is extremely crucial for brand building and positioning. In fact communication or promotional mix is at the centre stage in brand positioning and Brand building activities.

•

The promotional mix or marketing communication helps marketers to attract, persuade, urge and remind customers of the company’s brand.

•

Effective promotions prove helpful in product differentiation and also help to counter competition.

48

COMPONANTS OF PROMOTION There are five components of promotions: Advertising, Sale promotion, Personal selling, direct marketing, Public relations. Each has distinct features that determine in what situation it will be most effective.

1 2 3

1. ADVERTISING:

“It is any paid form of non-personal presentation and promotion of ideas, goods, and services by an identified sponsor”. The most familiar forms of advertisements are found in the broadcast (TV and RADIO) and print (Newspaper and Magazines) media. However, there are many other advertising alternatives, from direct mail to billboards and the telephone directory to yellow pages. Advertising is often termed as pull strategy. In pull strategy the goal is to get consumers to pull the product in the supply chain by demanding it.

MAJOR ADVERTISING DECISIONS While setting up an advertising plan, following decisions are required to be taken. •

Identify the target audience

•

Set the advertising objectives

•

Determine the advertising budget

•

Design the message

•

Evaluate and select media

•

Create an advertisement

•

Measure the impact.

49

TYPES OF ADVERTISEMENT

MEDIUMS OF ADVERTISING

1

•

Newspapers

•

Television

•

Radio

•

Magazines

•

Direct mail

•

Outdoor advertisings.

2. SALES PROMOTION:

Just as Advertising is known as „Pull‟ strategy, Sales Promotion is known as „Push‟ strategy. This promotional technique can be defined as “short-time incentive to the customer to buy a product”. According to Philip kotler; “Sales Promotion consists of a diverse collection of incentives tools, mostly short term designed to stimulate quicker or greater purchase of a particular product or services by consumers or the trade”. The free gifts-offers, discounts, coupons, lucky draws, etc., are some of the ways used in sales promotion.

50

SALES PROMOTION TOOLS

Consumer promotion:

1

The consumer promotion directed at Consumers. It includes Samples, Price off, free gifts, Cash refund offers, premiums, prizes, warranties, cross promotion, point of purchase. Consumer’s promotion is to create Consumer pool for the brand. The objective behind the several Consumer promotion programs of different organizations is: •

To generate consumer interest, this should lead to trial.

•

Increase the rate of purchase.

•

Generate inquires from the target, consumer group etc.

Trade promotion:

1

The trade promotions directed to the members of distribution channel. It includes advertising, Display Allowances. The Prime objective is to push the product through the marketing, intermediates and to get them to market the product aggressively. Other objectives are: •

Encouraging trade to invest built inventory.

51

•

Getting trade’s co-operation in production.

Business and sales promotion:

1

It includes trades shows and conventions, contents for sales promotion representatives and for special advertising. Although sales promotion tools are highly divers but they all offer three distinctive benefits: •

Communication

•

Incentive

•

Invitation.

1 2 3

3. PERSONAL SELLING:

The importance of personal selling is pretty evident as this is the only marketing activity that directly results into Revenue earning as its outcome. The simplest definition of personal selling is-“selling that involves face- to-face interaction between the sales person and prospective customer.”

52

There are certain products, which need demonstration or explanations. Personal selling is most effective in promoting such products. Advantages of personal selling: •

There is a personal touch and with trained salesman, the customer can feel important and gives full attention to the product detailing.

•

Demonstration of the product features and product working helps in better product awareness and acceptance by consumers.

•

Consumer’s queries and apprehensions can be effectively answered.

•

Follow–up action and persuasion are possible.

1 2 3

4. DIRECT MARKETING:

The Direct Marketing association defines Direct Marketing as follows: “Direct Marketing is an interactive marketing system that uses one or more advertising media to affect a measurable response and or transaction at any location”. This definition makes it clear that direct marketing is directly from the company to the customer and there is no intermediary (retailer, whole seller etc.) involved in between. Various forms of direct marketing: •

Direct mail

•

Telemarketing

•

Email Marketing

53

•

Couponing

•

Direct response television marketing

•

Direct selling.

54

1

5. PUBLIC RELATIONS:

Public relations are defined as deserving, acquiring and retaining a favorable reputation in the market place. Public relations function aims at creating maintaining favorable public opinion about company’s products, people, policies and plans. Public relations are defined as “any group that has an actual or potential interest or impact on company’s ability to achieve its objectives”. The public relations do not directly help promoting the product but can make product or policy acceptance by the public easy by generating a favorable image about the company.

PUBLIC RELATIONS IS USEFUL IN •

Acceptance of a company’s as a specialist in a product group.

•

Acceptance of company’s policies regarding its employees, dealers, consumers etc.

•

Attracting capital and man-power.

•

Acceptance of new product and new brand.

Chapter - 5

Target & Task Basic objective of the project is to create awareness about Yuvraj215 & and increase the penetration of product In Lucknow district.

Profile of Lucknow district: Lucknow district comprises of 4 tehsil 8 blocks.

Tehsil

Block

Lucknow

Kakori

Lucknow

Sarojninagar

Bakshi ka Talab

BKT

Bakshi ka Talab

Cinhat

Malihabad

Malihabad

Malihabad

Mal

Mohanlalganj

Gosaiganj

Mohanlalganj

Mohanlalganj

Tractor users: Tractor using customers can be broadly classified into farmers, contractors, brick kiln owners, small manufacturers & traders etc

Actions Planned:

Project is planned for 46 days in Lucknow district. For 3 Tehsil specific actions have been planned to achieve the end result.

Places

No. of days Allocated

Actions PlannedAwareness

Mohanlalganj

15

Malihabad

15

Bakshi ka Talab

10

Awareness creation and enquiry generation through displaying the product Yuvraj215 in cattle market and weekly Bazaars identified (Ek Mahindra outlets) One to one customer meet Meeting prdhans to identify potential customer for Yuvraj215 One to one product pitching to mango orchard owners Product pitching to farm house owners One to one product pitching to Traders through presentation & demo of Yuvraj215

Amausi industrial area , Chinhat & other loacations

6

Our Tasks at a glance Camping

Visiting various resorts , industries & Mils to explore new market for Yuvraj 215

The basic idea to promote the Yuvraj 215 in rural market is camping at cattle market and weekly Bazaars identified (Ek Mahindra outlets), because this is one of the best & cheapest way to promote the product. we performed camping at cattle market ,where people get together to buy bullock for faming . the selection of the location was best to promote Yuvraj 215 . when people saw the tractor they got attracted by it’s small size but it also created a lot of question in their mind.

Commonly asked question by customers Basic product specification? Is it suitable for farming? Does it can really work with Rotavator? Size of cultivator? Fuel consumption?

Task of campaigning Performed in Mohanlal Ganj Date 24 / 6 / 2011 26 / 6 / 2011 27 / 6 / 2011

Time 9:30 to 5:30 pm 9:30 to 5:30 pm 9:30 to 5:30 pm

Place Khajoli (weekly market) Telibagh (weekly bazzar) Gosaiganj (cattle market)

Task of campaigning Performed in Malihabad Date 12 / 7 / 2011 14 / 7 / 2011 19 / 7 / 2011

Time 9:30 to 5:30 pm 9:30 to 5:30 pm 9:30 to 5:30 pm

Place Maal Malihabad Munshiganj

Task of campaigning Performed in Bakhshi ka talab Date 22 / 7 / 2011 23 / 7 / 2011 28 / 7 / 2011

Time 9:30 to 5:30 pm 9:30 to 5:30 pm 9:30 to 5:30 pm

Place Bkt Itaonja Ahmadpur Kheda

One to one customer meet Personal selling is another form of promotional method most commonly used by salespersons. This form of selling requires personal contact therefore it is usually carried out through face to face meetings, telephone, video conferencing, etc. Personal selling has a key advantage over other promotional method as it relies on a two-way

communication. Here the sales person is getting an immediate feedback from his customer. He is getting the opportunity to clarify his client's doubts or concerns regarding the product. A promotional offer on radio or T.V may leave many questions unanswered. A sales person's common task is to make his potential customers aware of the new product.

List of farmers we met Name

Contact No.

Village

District

Grija Shankar Reena singh Desh Raj Rawat Bal Govind Munna Prdhan Akram Mohd Rafi Rawat Nasri Hasnain Ali Susheel Kumar Yadav Haroon Shbana Ram Naraish Sharma Jai devi verma Parbhu Dayal Rajaram Verma Ram gopal Harish cahndra Vijay singh Abdul qadir Kuldeep singh Kunwar Bhupendr singh

9935390924 9794008715 9936476857 9670603064 9935432819 -------------

Gaura Nadauli Purhiya Gadiyana Mujasa Mujasa Mujasa

Lucknow Lucknow Lucknow Lucknow Lucknow Lucknow Lucknow

Munshiganj Munshiganj

Lucknow Lucknow

Sahila mau Dhirwan Raipur Raja Chandpur Hariharpur Shair pur lawal Dhirwan Dhirwan Gopra mau Munshiganj

Lucknow Lucknow Lucknow Lucknow Lucknow Lucknow Lucknow Lucknow Lucknow Lucknow

Maal

Lucknow

9956844356 9918941987 9935575024 9838819284 9935298835 9956620961 9651116100 9936191948 9450451082 9721102460 8808598479 9935856445

List of traders

Name

Contact No.

Address

Yadav traders

9005145854

Near sms college Gosaiganj Lucknow

Tushar traders Jaimamtadevi traders Uttam traders Singh Traders Verma Traders Virendr traders Anjani traders Yadav traders Vijay traders Agrwaal iron Yadav traders Jaya traders Chaurasiya traders Jyoti traders Kamla hardware Jaima kushmanda traders co. Kuldeep Traders Munna pardhan Rawat nasri Ram chandra Abdullah traders Zaid Timbers Zam Zam traders

9795711848 9935517810 9695595309

Mueed trders

9919876863

Amina traders

9534833717

Sultanpur Road Gosaiganj Lucknow Sultan pur road Lucknow Sultan pur road Lucknow Sitapur road Lucknow Sitapur road Lucknow Sitapur road Lucknow Arjunpur Itonja Lucknow Sitapur road Lucknow Bkt Sitapur road Lucknow Muhibullahpur Sitapur road Lucknow Kanpur road Sarojni Nagar Lucknow Kanpur road Sarojni Nagar Lucknow Kanpur road Sarojni Nagar Lucknow Kanpur road Sarojni Nagar Lucknow Kanpur road Sarojni Nagar Lucknow Kanpur road Near Amausi airport Lucknow Gehtaun Malihabad Lucknow Mujasa Malihabad Lucknow Tikna Kheda Mal Lucknow Chaurasi gosaiganj Lucknow Paikra mau Kursi road Lucknow Paikra mau Kursi road Lucknow Near Behta bazaar Sitapur road Lucknow Near Behta bazaar Sitapur road Lucknow Paikra Mau Sitapur road Lucknow

9415515641 9005229920 9956943201 9415579200 9335917281 9935364554 9839911255 8009276172 9415541736 9935482890 9956702216 9935037796 9935432819 9956844356 8853766017 9838781645 9565331951 9839402080

List of Industries & Resorts

Industry Name

Name

Address

Contact No.

Awadh Rubber

Rohit shrivastav

2436219

Telecom infrastructure

Raajeev Kumar

Daal mil

D.N.

Amausi industrial area Nadarganj LKO Amausi industrial area Nadarganj LKO Amausi

9559993746 27436033

Agrwaal Dal mi United Steel Pioneer Trans energy ltd Malook chand textile Blue bird Chinmay Resort Jalsa Resort Jaypee cement dealer Saxena catters Khanna tent house

industrial area Nadarganj LKO Anil singh Amausi industrial area Nadarganj LKO Arjun singh Amausi industrial area Nadarganj LKO Dileep Amausi industrial area Nadarganj LKO Akhilesh Amausi industrial area Nadarganj LKO Garg Mohan laganj Uttam Sultanpur road singh Sunil singh Sultanpur road Birjesh Kanpur road lko kumar Atul singh Aminabad near Rajdhani hotel Deepak Lal kuan guru jaiswal govind singh marg

9415403794 9795349863 9336747586 -------------------------------------------------------------8004512233 9721264513 9415795550

Do you own a tractor?

Respondent reviews

Yes 17%

No 83%

Interpretation: According to the survey 83 %, respondents do not own the tractor while 17 % respondents own the tractor.

If yes, which tractor do you own?

Respondent's Reviews

12%

7% 37%

20%

Mahindra Eicher Swaraj Escort Others

24%

Interpretation: According to the survey of the project I studied that 37 % of the peoples Own Mahindra Tractors , 24 % of peoples own Eicher ,20 % of peoples own Swaraj , 12 % own Escort & only 7 % of the peoples own others .

How much land do you own?

Respondent's Reviews 40%

34%

35%

37%

30% 25% 20%

16%

13%

15% 10% 5% 0%

0 - 5 Acres 5 - 10 Acres

10 - 15 Acres

15 & Above

Interpretation: According to the survey of the project I studied that the 37 % of the respondents have 10-15 acres of land, 34 % of the respondent have 5-10 acres of land , 16 % of the respondent have 0 – 5 acres of land & 13 % of the respondent have 15acres & above of land .

What do you use for farming?

Interpretation: According to the survey of the project, I studied that 58% of respondent use tractor on rent for farming, 18% of respondent use bullock, 17 % of respondent use their own tractor & 7 % use other conventional method

How much cost do you incur on that?

Interpretation: According to the survey of the project I studied that 34 % of respondent Have to incur

(20 – 40 ) Thousand rupees on farming, 28 % of respondent have to incur (0 –

20 ) thousand rupees,18 % of the respondent have to incur ( 40 – 60 ) thousand rupees while 9 % of respondent have to spend 60 & more than 60 thousand rupees

Are you planning to buy a new tractor?

Respondent's Reviews

No 45% Yes 55%

Yes No

Interpretation: According to the survey of the project, I studied that 55 % of respondent would like to buy a new tractor while others were not interested in buying new tractor

If yes, which tractor would you like to buy?

Respondent's Reviews

Escort 12%

Other 5%

Mahindra 47%

Swaraj 14%

Mahindra Eicher Swaraj Escort Other

Eicher 22%

Interpretation: According to the survey of the project, I studied that 47 % of the respondents said that they would like to buy Mahindra tractor, 22 % of respondent would like to buy Eicher, 14% of respondent would like to buy Swaraj, 12 % of respondent say that they would buy Escort & 5 % of respondent are interested in buying other.

What are the most important attributes you consider while purchasing the tractor?

Interpretation: According to the survey and the data collected 35% of respondent give the preference to performance while buying tractor, 28 % give preference to fuel efficiency, 13% consider initial price , 12 % financial facility & 4 % of respondent give preference to other features.

Do you know about Mahindra tractor?

Respondent's Reviews

No 2%

Yes No

Yes 98%

Interpretation: According to the data, collected most of the respondent says that they know about Mahindra tractors.

Do you know about Mahindra YuVraj-215?

Interpretation: According to the survey of the project, I studied that 77 % of respondent do not know about Yuvraj-215 while 23 % of respondent have knowledge about Yuvraj-215.

If No, Would you like to know about it?

Interpretation: According to the survey of the project, I studied that 86 % of respondent show their interest in the product.

Does the Promotion help in better product awareness?

INTERPRETATION: According to the survey of the project I studied that most of the respondents said that the promotion is helpful in better product awareness.94% of the respondents are agree with this and 6% don’t think so.

Whether Promotional activity Profitable/ beneficial to you?

INTERPRETATION: According to the survey and the data collected, it is seen that most of the respondents think that the promotional activity is profitable/beneficial to them.96 % of the respondents are agreeing with that and 4% are not thinking so.

Have you ever purchased anything during or after the promotion?

INTERPRETATION: According to the survey and the data collected, it is seen that most of the respondents are not always but sometime purchased during and after the promotion. Only 17% of the respondents purchase always during or after the promotion, and 74% sometime purchased and 9% never purchased.

What type of promotional activity attracts you more & required by company?

INTERPRETATION: According to the survey and the data collected it is seen that most of the respondent thinks that, the discounts and advertisements attract them more and required by company. 42% discounts, Advertisement (paper, TV) 39%, gifts/lucky draws 24%,canopy& road shows 16% and broacher distribution 7%.

Have you ever ignored the promotional activity?

INTERPRETATION: According to the survey and the data collected it is seen that the most of the respondents never ignore the promotional activities, 48% never ignored, 34% ignored sometime because of not time or in hurry and 17% always ignored.

What is your opinion towards “less promotion more discount?”

INTERPRETATION: According to the survey and the data collected, it is seen that most of the respondents agree with “less promotion and more discount”.54% agree with that, 24% are strongly agree, 16% are disagree and 6% strongly disagree.

FINDINGS

Through this project, I got the knowledge about tractor industry & major player of this industry, I also come to know about the rural market of Lucknow , Sales Promotion, Consumer behavior, making of new customers and handling of old customers and Selling & marketing Concepts at Lucknow city.

•

Mahindra & Mahindra is number tractor company in India from 28 Years.

•

Mahindra Tractor is well-settled brand in the mind of customer.

•

Mahindra Yuvraj-215 is first 15 HP tractors in the market.

•

Mahindra Yuvraj-215 has no competitor in the tractor market.

•

Mahindra Yuvraj-215 is available at cheapest price of 1, 85,215.

•

Before the use of promotional tools, the publics did not know the product Mahindra Yuvraj-215 but after the use of promotional tools, the products got good exposure in the market.

•

The reason for low sales of the products was lack of promotional activities due to this

•

Most of the public was not aware of Yuvraj-215

•

After using promotional tools, I found that the prescription rate of Yuvraj-215 was increased to a considerable extent.

•

Maximum customers first see the Performance, fuel efficiency & affordable price of the product

•

Camping is one of the best & cheapest promotional tool to promote the product in rural market.

CONCLUSION  The sample size of my survey was 100. I have tried my best to get the maximum out of survey. After analyzing the result of my questionnaire, I have arrived to the conclusion, which is as follows:

 Mahindra & Mahindra has successfully achieved their objective of getting the potential customers of Yuvraj-215 through promotional activities and also to boost the sale..  The promotional activity was helpful to know the customer’s perception towards Yuvraj-215 by getting information from promotion.  Regular use of promotional tools is necessary for giving more exposure to the product in the market.  The customers came to know about Mahindra yuvraj-215 & its application and its benefits through promotional activities which seemed to be the key factor to achieve the prospective customers.  The company also should try to give live demonstration of Yuvraj-215 for getting more publicity and positive response.

 According to Survey, I found that the position of Mahindra tractor is number one in the market.  According to the survey, most of the customer has doubt about the working of Yuvraj-215 because of its small size

 The company should also provide more incentives to sales person to boost up it’s sales

Chapter 8

BIBLIOGRAPHY

MARKETING MANAGEMENT ----PHILIP KOTLER MARKETING RESEARCH-----------DILIP SARWATE

WEBLIOGRAPHY 1 2 3 4

www.google. com www.mahindra .com www.mahindra tractors.com. www.wikipedia .com.

Company booklets, pamphlet, Brochures.