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This is the summer project report of Mahindra Tractors in Nijamabad District Telangana State.
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National Academy of Agricultural Research Management Page 1
“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
National Academy of Agricultural Research Management Page 2
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
National Academy of Agricultural Research Management Page 3
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
National Academy of Agricultural Research Management Page 4
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.
National Academy of Agricultural Research Management Page 5
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.
National Academy of Agricultural Research Management Page 6
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
National Academy of Agricultural Research Management Page 7
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
National Academy of Agricultural Research Management Page 8
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
National Academy of Agricultural Research Management Page 9
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
National Academy of Agricultural Research Management Page 10
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.
National Academy of Agricultural Research Management Page 11
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
National Academy of Agricultural Research Management Page 12
3.1. Selection of study area: The study area was Nizamabad and Karimnagar districts of Andhra Pradesh.
Fig: 1. Study area map:
National Academy of Agricultural Research Management Page 13
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
National Academy of Agricultural Research Management Page 14
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
National Academy of Agricultural Research Management Page 15
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.
National Academy of Agricultural Research Management Page 16
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
National Academy of Agricultural Research Management Page 17
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%
National Academy of Agricultural Research Management Page 18
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.
National Academy of Agricultural Research Management Page 19
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%
National Academy of Agricultural Research Management Page 20
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
National Academy of Agricultural Research Management Page 21
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
National Academy of Agricultural Research Management Page 22
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
National Academy of Agricultural Research Management Page 23
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
National Academy of Agricultural Research Management Page 24
Market Key Players
JOHN DEERE 5038 JOHN DEERE 5042
JOHN DEERE 5045 JOHN DEERE 5055
T AFE 241 TAFE 5245
National Academy of Agricultural Research Management Page 25
MAHINDRA 475 MAHINDRA 575
MAHINDRA 605 SWARAJ 735
SWARAJ 744 SONALIKA RX42
National Academy of Agricultural Research Management Page 26
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
National Academy of Agricultural Research Management Page 27
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.
National Academy of Agricultural Research Management Page 28
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
National Academy of Agricultural Research Management Page 29
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
National Academy of Agricultural Research Management Page 30
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
National Academy of Agricultural Research Management Page 31
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%
National Academy of Agricultural Research Management Page 32
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.
National Academy of Agricultural Research Management Page 33
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
National Academy of Agricultural Research Management Page 34
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
National Academy of Agricultural Research Management Page 35
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
National Academy of Agricultural Research Management Page 36
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
National Academy of Agricultural Research Management Page 37
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.
National Academy of Agricultural Research Management Page 38
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.
National Academy of Agricultural Research Management Page 39
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.
National Academy of Agricultural Research Management Page 40
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.
National Academy of Agricultural Research Management Page 41
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.
National Academy of Agricultural Research Management Page 42
Brand Arjun 605 JOHN DEERE 5055E Price 790000 795000
HP 60 55
Engine No of cylinders 4 3
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.
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Brand JD5042 Mahindra 475 Price 642500 640000
HP 42 42
Engine No of cylinders 3 4
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
Engine No of cylinders 3 3
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)
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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
National Academy of Agricultural Research Management Page 45
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’
Not frequently changed
Power Steering
1000 hrs. 2000 Power steering
1500-1800 hrs.
2800
Hitch Nut Size 19
Frequently changed
25 Hitch Nut Size 21
Not frequently changed
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
National Academy of Agricultural Research Management Page 46
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.
National Academy of Agricultural Research Management Page 47
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
National Academy of Agricultural Research Management Page 48
Gallery
National Academy of Agricultural Research Management Page 49
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.
National Academy of Agricultural Research Management Page 50
References: 1) Agricoop.nic.in
2) Tractor Manufacturers Association of India
3) IACR journals
4) Research Papers
National Academy of Agricultural Research Management Page 51
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( )
National Academy of Agricultural Research Management Page 52
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
better( )MM tractor is better( )
F4 Your specific usage application Similar( )My tractor is
National Academy of Agricultural Research Management Page 53
better( )MM tractor is better( )
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. . .
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