Designing a Brand Plan to Increase the Sales of Tata Agrico

Guided by Submitted by

Yoginder Kataria YOGESH KUMARENROLLMENT NO.

ICFAI, GURGAON 7NBGG050

1

ACKNOWLEDGEMENT

The Internship Project at TATA STEEL, Jamshedpur is an outcome of total support

and encouragement provided by a number of people at TATA STEEL, a company that

embodies the best practices of the Indian Corporate World. During the tenure of this

project, we were fortunate to have interacted with people who in their own capacities

have encouraged and guided me to make this into a learning experience.

We would like to express our sincere gratitude to our project guide Mr. Yoginder

Kataria , Manager-EPA (PS), Agrico for his constant and keen support at every step

without which the project would not have seen the light of the day.

We would also like to thank Mr. N R Saifi Manager TMDC for his all round support

during the completion of the project.

We also thank each and everyone, who shared their valuable information, for us to

have better understanding of the system, subject and concepts which contributed

immensely in the completion of this project.

We solemnly express our high regards and profound sense of gratitude to our faculty

guides for granting their invaluable time and energy throughout the completion of this

project.

We also express sincere thanks and deep gratitude to our revered institutes.

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Student declaration

We, hereby declare that this project report title as “Designing a Brand Plan to

increase the sales of Tata Agrico products” has been compiled by us as part of our

education curriculum.

We have not submitted this project in any other organisation or institution for any

purpose whatsoever.

Jamshedpur YOGESH KUMAR

3

Table of contents

1. Company profile Page Number

1.1 Background 5 1.2 Vision 6 1.3 Mission statement 7 1.4 Policies 9 1.5 Core values 10 1.6 Products 11 1.7 Strategic business units 12

2. Tata Agrico

2.1 Introduction 13 2.2 Product 14 2.3 Product development process 20 2.4 Quality 21 2.5 Collaborations & Distributors 23 2.6 Environmental awareness programme 24

3. Executive summary 25

4. Aim 26

5. Market analysis

5.1 Research objectives 27 5.2 Methodology 27 5.3 Methods 27 5.4 Sample size 28 5.5 Limitations 28 5.6 Analysis of consumer’s survey 29 5.7 Analysis of dealer’s survey 39 5.8 Findings 47

6. SWOT analysis 48

7. Recommendations 50

8. Conclusion 51

9. Appendix

9 A Questionnaires for consumers 54 9 B Questionnaires for dealers 59

10. Bibliography 63

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COMPANY PROFILE

1.1 Background

TATA STEEL, formerly known as Tata Iron and Steel Company Ltd (TISCO), the

company around which the entire township of Jamshedpur was built, was registered in

Bombay (now Mumbai) on August 26, 1907. It had an initial capacity of 160,000

tonnes of pig iron, 100,000 tonnes of ingot steel, 70,000 tonnes of rails, beams and

shapes and 20,000 tonnes of bars, hoops and rods. It also had a powerhouse, auxiliary

facilities anda laboratory. In 1917, the company increased its steel production

capacity to 500,000 tonnes and introduced the Modern Duplex process of making

steel. Since then the company has continued to add new units and increase capacity.

Beginning in the 1980s, the company undertook in various phases an ambitious

Modernization Programme. The fist phase, between 1981 and 1985, involved a total

project cost of Rs 223 crores. This phase, among other things, saw the installation of

two 130 tonne LD converters, two 250 tonne a day Oxygen Plants, a bar forging

machine, two vertical twin shaft lime kilns and a tar-dolo brick plant. Significantly, a

six strand billet caster and a 130 tonne vacuum arc refining unit were installed, that

too in the integrated steel plant.

The Second Phase (1985-1992), involving a project cost of Rs. 780 crores, saw for the

first time in India coal injection in blast furnaces and coke oven battery with 54 ovens

using stamp-charging technology. Apart from this, a 0.3 mtpa (million tonne per

annum) wire rod mill, a 2.5 mtpa sinter plant, a bedding and blending plant and a

waste recycling plant of 1 mtpa were installed.

The company recently commissioned its 1.2 mt (million tonne) capacity Cold Rolling

Mill Complex at a project cost of Rs. 1600 crores. This Four Phase Modernization

Programme has enabled Tata Steel to be equipped with the most modern steel making

facilities in the world. As of today, the Tata Steel facility has a Hot Metal capacity of

3.8mtpa and a Crude Steel capacity of 3.5 mtpa, corresponding to a salable steel

capacity of 3.4 mtpa.

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It is Tata Steel’s constant endeavour to consolidate its position in the international

market. World Steel Dynamics and now called as “World Class Steel Makers”.

The Fifth Phase lays stress on the utilisation of the intellectual capabilities of the

employees to generate sustainable value for the stakeholders. Rather than create new

physical assets, the focus has now shifted to how best to use those assets to get

optimum value. The human resource management division of Tata Steel has

developed what is called the “mindset programme”, which is designed to bring

change among the employees. The programme seeks to inculcate in the employees

self awareness and a positive outlook.

In order to improve its performance further the company engaged the internationally

reputed consultants Mckinsey & Co, who suggested the Total Operational

Performance (TOP) Enhancement Programme. A structured, time bound, team based

programme, it uses the creativity and energy of the employees to increase output with

minimum investment and in the shortest possible time.

Tata Steel today is rapidly expanding capacity and plans to produce 15 Mt of steel

annually by 2010. Tata Steel is currently ranked the world's 6th largest steel company

and some of its future projects are:

India:

12 MTPA* plant in Jharkhand

6 MTPA plant in Orissa

5 MTPA plant in Chattisgarh

Jamshedpur Steel Works will become a 10 MTPA unit by 2010.

*MTPA = million tonnes per annum

Overseas:

Development of a source of low ash coal from Queensland, Australia

Ferro Chrome production in Richards Bay, South Africa

Coking Coal project in Mozambique

Development of iron ore deposits in Ivory Coast (West Africa)

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Limestone mining project in Oman

1.2 Vision

To be the global steel industry benchmark for Value Creation and Corporate

Citizenship and to seize the opportunities of tomorrow and create a future that will

make the organization an EVA (economic value added) positive competition. To

continue to improve the quality of life of our employees and the communities we

serve.

Vision Production 2010

The company intends to be a 15 million ton company by the year 2010 through

organic growth an acquisitions both in the country and overseas.

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1.3 Mission Statement

Consistent with the vision and values of the founder Jamshetji Tata, TATA STEEL

strives to strengthen India’s industrial base through the effective utilization of men

and materials. The means envisaged to achieve this are high technology and

productivity consistent with modern management and practices.

TATA STEEL recognizes that while honesty and integrity are essential ingredients of

a strong and stable organization, profitability provides the main spark for economic

activity.

Overall the company seeks to scale the heights of excellence in all that it does in an

atmosphere free from fear and one that encourages innovativeness and creativity.

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1.4 Policies

Quality Policy

Tata Steel is committed to creating value for all our stakeholders by continually

improving our systems and processes through innovation, involving all our

employees. This policy shall form the basis of establishing and reviewing the Quality

Objectives and shall be communicated across the organization. The policy will be

reviewed to align with business direction and to comply with all the requirements of

the Quality Management Standard.

Corporate Social Responsibility Policy

Tata Steel believes that the primary purpose of a business is to improve the quality of

life of people. So it is committed to improve the quality of the life of the people in the

areas where it operates.

Environmental, Occupational Health & Safety Policy

Tata Steel reaffirms its commitment to provide safe working place and clean

environment to its employees and other stakeholders as an integral part of its business

philosophy and values under which it will continually enhance its Environmental,

Occupational Health & Safety (EHS) performance in its activities, products and

services through a structured EHS management framework.

Research Policy

Tata Steel nurtures and encourages innovative research in a creative ambience to

ensure that the competitive advantage in its overall business is retained and surpassed.

Towards this goal, the Company commits itself to providing all necessary resources

and facilities for use by motivated researchers of the highest caliber.

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1.5 Core Values

The TATA Group has always sought to be a value – driven organization. These

values continue to direct the Group’s growth and businesses. The five core TATA

values underpinning the way we do business are:

Integrity: We must conduct our business fairly, with honesty and

transparency. Everything we do must stand the test of public scrutiny.

Understanding: We must be caring, show respect, compassion and humanity

for our colleagues and customers around the world, and always work for the

benefit of the communities we serve.

Excellence: We must constantly strive to achieve the highest possible

standards in our day to day work and in the quality of the goods and services

we provide.

Unity: We must work cohesively with our colleagues across the group and

with our customers and partners around the world, building strong relationship

based on tolerance, understanding and mutual cooperation.

Responsibility: We must continue to be responsible, sensitive to the countries,

communities and environments in which we work, always ensuring that what

comes from people goes back to the people many times over.

Striving For Excellence

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1.6 P roducts

Tata Steel is a global player with a balanced presence in developed European and fast

growing Asian markets and with a strong position in the construction, automotive and

packaging markets. Its Jamshedpur steel works produces hot and cold rolled coils and

sheets, galvanised sheets, tubes, wire rods, construction rebars, rings and bearings. In

an attempt to 'decommoditise' steel, the Company has introduced several branded

steel products, including Tata Steelium (the world's first branded Cold Rolled Steel),

Tata Shaktee (Galvanised Corrugated Sheets), Tata Tiscon (rebars), Tata Pipes, Tata

Bearings, Tata Structura, Tata Agrico (hand tools and implements) and Tata Wiron

(galvanised wire products). In the financial year 2006-07 revenue from the sale of

these branded steel products was 26% of the company's sales revenues.

Corus' main operating divisions comprise Strip Products, Long Products and

Distribution & Building Systems Division. Combining international expertise with

local customer service, the company supplies a range of long and strip products to

demanding customers worldwide in markets including the construction, automotive,

packaging and engineering sectors. The NatSteel group produces construction grade

steel such as rebars, cut-and-bend, mesh, precage bore pile, PC wires and PC strand.

Tata Steel Thailand produces round bars and deformed bars for the construction

industry.

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1.7 Strategic Business Units

Apart from the main Steel Division, Tata Steel's operations are grouped under the

following Strategic Business Units:

Bearings Division: Manufactures ball bearings, double row self-aligning bearings,

magneto bearings, clutch release bearings and tapered roller bearings for two

wheelers, fans, water pumps, etc.

Ferro Alloys and Minerals Division: Operates chrome mines and has units for

making ferro chrome and ferro manganese. It is one of the largest players in the global

ferro chrome market.

Agrico Division: Tata Agrico is the first organized manufacturer in India of hand

tools and implements for application in agriculture.

Tata Growth Shop (TGS): Has designed, developed, manufactured, erected and

commissioned thousands of tonnes of equipment ranging from overhead cranes to

high precision components, including a rocket launch pad for the Indian Space and

Research Organization.

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Tubes Division: The biggest steel tube manufacturer with the largest market share in

India, it aspires to strengthen its market presence by expanding and modernizing its

commercial and precision tube manufacturing capacity.

Wire Division: A pioneer in the manufacture of steel wires in India, it produces

coated and uncoated wires, branded as Tata Wiron. The division also operates a

wholly owned subsidiary in Sri Lanka.

TATA AGRICO

2.1 Introduction

TATA Agrico, a division of Tata Steel is the pioneer manufacturer of superior quality

agricultural implements in the country. Since 1925, it has been the leading

manufacturer of Shovels, Powrahs, Crowbars, Kudalies, Pickaxe and Hammers. These

implements cater to the needs of Agricultural, Horticulture Industry, Maintenance of

Roads, Dams, Railway- Tracks, Collieries, etc., in India and abroad.

The Division is the first manufacturer of agricultural implements (Hand tools) in India

to achieve ISO: 9002 Certification in 1994. This ensures world class systems in its

operations. TATA Agrico implements are manufactured in one piece from Tata High

Carbon Steel by forging. The skill and knowledge acquired over half a century,

modem methods of manufacture such as forging, and heat treatment and strict

supervision at every stage of manufacture, guarantee consistently good quality and

durability of Agrico products. The high quality of TATA Agrico implements makes

them the first choice of Agriculturists, Government Agricultural Departments, The

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Railways, Defence Services, Collieries and Central and State Government

Departments.

All TATA Agrico implements are guaranteed against manufacturing defects and are

distributed all over the country through a network of consignment agents and

distributors.

2.2 Products

Hoes (Powrah) (Resists deformation lasts longer)

Forged in one piece from Tata High Carbon Steel and given a protective

coating of paint

The eyes or sockets of the Hoes are round in shape and are slightly tapered to

a nominal diameter of 45 mm at the narrow end to grip the handle firmly.

Agri type, Bombay type, West India, Tanged Hoe (1.6), Mysore Hoe (1.6),

Swan Neck Hoe (1.8), East India type Hoes are certified as per Indian

Standard Specification IS-1759.

Types of   Hoes:

Agri Hoe East India Hoe West India Hoe North India Hoe

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Tanged Hoe Mysore Hoe Bombay Hoe Lanka Hoe

Swan Neck Hoe Fork Hoe

Sickles (Greater output with lesser effort)

Increases the efficiency of cutting

Durable and longlasting

Heat treated for proper hardness

Sharp cutting edge for effortless cutting

Uniformly maintained width for perfect balance

Perfectly seasoned hard wood handle for proper grip

Can be re-sharpened

Pick-Axes (Kudalis) (Both ends hardened for extra longevity)

Pick-Axes are made in five varieties. Beater in one among the five varieties.

The working ends of all Pick-Axes and Beaters are heat treated. Chisel ends

and point ends are sharpened.

Pick-Axes and Beaters are supplied without handles.

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The eyes or sockets of Pick-Axes and Beaters are oval in shape and are

slightly tapered to about 65 mm × 40 mm at narrow end to grip the handles

firmly.

High strength : unbeatable resistance to deformation and bending

Pick-Axes, Chisel (Wide) & Point Ends

Beater, Point & Tee Ends

Crowbars (Chisel point perfectly hardened needs no re-sharpening)

All Crowbars are forged in one piece from Tata High Carbon Steel octagons

and are given a protective coating of double-boiled linseed oil.

Crowbars are manufactured in four sizes : 22 mm, 25 mm, 29 mm and 32

mm.Short length Crowbars are made in the length of 1220 mm and 915 mm.

The chisel ends of Crowbars are ground and heat treated and need no re-

sharpening

Unbeatable strength - highly resistant to deformation and bending

Designed for better gripping

Shovels (Improved curvature for better lifiting)

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Square Nose & Round Nose Shovel

blades are formed in one piece from 14

gauge (2 mm approximately) Tata High

Carbon Steel, which ensures longer life.

Shovels are available in two varieties -

square nose, round nose. Square Nose &

Round Nose Shovel are manufactured in

two sizes, round nose in one.

Square Nose & Round Nose Shovel are fitted with strong, steel crutched

wooden handles.

All Square Nose & Round Nose Shovel blades are certified as per Bureau of

Indian Standards Specification : IS 274 Part-1

Ensure better material handling due to improved curvature

Highly wear resistant, durable and retain their shape even after rugged use

Hammers (Strength that resists high impact shock)

All hammers are forged in one piece from Tata High Carbon Steel and

supplied without handles

The striking faces of all hammers are heat treated and chamfered

Hammers differentially hardened and tempered thoroughly, to achieve

strength that withstands high impact shock

The eyes of all hammers are tapered at both ends to form a ‘waist’ at the

middle to ensure firm grip

Properly balanced to make work easier

DOUBLE-FACE SLEDGE HAMMERS S. B. HAMMER

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TP Series Hoe (Powrah) –( Lessens fatigue, Improves output)

Unique, scientific design that reduces fatigue, while increasing output

Ideal curvature of blade that ensures optimum material lifting

Unbeatable Durability

Longer lasting cutting edge

TP2 Hoe TP4 (Jaipur) Hoe TP5 (NI) Hoe TP7 Hoe (Ahemdabad)

Garden Tools:

Hard working tools for beautiful gardens.

Pruning Secateurs (self-locking)

Fully hardened and tempered steel blade for lasting sharpness

Excellent, all-round secateurs for medium and large hands

Robust, comfortable, easy-grip handles in bright yellow for maximum visibility in

the garden

Cuts up to 20 mm diameter

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Garden Cultivator

Width: 9 cm, Overall Length: 25 cm

Excellent for weeding and cultivating garden soil

Three bright, chrome-plated, spot-welded steel tines

Ergonomically designed anti-slip poly handle

Garden Trowel:

Width: 8 cm, Overall Length: 28 cm

Wide, deep dish for maximum load

Excellent for digging holes to plant flowers and seeds

Bright, chrome-plated steel blade

Ergonomically designed anti-slip poly handle

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2.3 Product development process at Tata Agrico

Stage 1 - Identify the "Require ment / Bright Idea"

Stage 2 - Define the Requirements

Stage 3 - Gather product Information

Stage 4 – Business case preparation

Stage 5 - The Design Phase

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Stage 6 – Prototyping

Stage 6 – Pilot Production

Stage 7 – Marketing Trial & Feedback

Stage 8 – Commercial Launch

2.4 Quality

Customers are cautioned against spurious implements (bearing imitations of AGRICO

trademark and/or hologram) that may be offered for sale. When in doubt, kindly write

to any of our offices.

1. Look carefully for the Tata Agrico Trademark engraved on the implement.

2. The year of manufacture and item code given below the circle changes every

year.

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3. The TATA mark appears on the holograms of all Shovels, Powrahs,

Mamooties, Kudalis, Sickles and Hammers.The eagle insignia can be seen in

the hologram.

4. The word TATA is embossed on Powrahs, Kudalis, Beaters, Sickles and

Shovels.

5. Weight stamp appears on all items

6. The words ‘TATA CHISEL STEEL’ 22/25/29/32 are engraved on Crowbars.

Note:

The weights and dimensions of implements given in this catalogue are

nominal and are governed by the respective Indian Standards Specification.

2.5 Collaboration & Distributors

Tie up with Tata Kisan Sansar of Tata Chemicals Ltd

Tie up with Godrej Agrovet Limited (AADHAR)

Tie up ITC's e-choupal network and Tie up with Hariyali Kisaan Bazaaar

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the Choupal Sagar network

Tata Agrico has entered into a distribution alliance with ITC to market its agricultural

implements in rural India through ITC's e-choupal network and the Choupal Sagar

network. This will help rural consumers get genuine Tata Agrico implements at the

right price. Tata Agrico is a division of Tata Steel. While the e-choupal is billed as

India's largest network, choupal sagar is the rural hypermarket which provides

multiple services under a single roof. It gives farmers a platform to buy and sell

products, according to a release.

Tata Agrico, the agriculture implement division of Tata Steel Ltd, has recently entered

into a business venture with Godrej Agrovet Ltd.

Under this venture, Tata Agrico's products would be made available in all 22 Aadhaar

outlets across the country with products such as powrah and sickle for the farmer

community.

"The main objective of this business venture of Tata Agrico is to reach out to the

farmer community with its wide variety of products in the rural interiors of the

country. Farmers will now have the easy availability of Tata Agrico products at

reasonable prices," a press release said.

Tata Agrico manufacturers’ agricultural implements such as powrah, kudali, shovel,

crowbar, hammer and sickle.

Tata Agrico will be conducting demonstrations among farmers at the Aaadhar outlets

on the use of its products and would take suggestions for future designing of these

products.

All India distributors

Tata Agrico is having distribution network all over the country. In north India, it

covers the regions like Kanpur, Delhi, Jaipur, Nainital, Karnal, Jammu and Himachal

Pradesh. In the eastern part, it is having network in Kolkata, Siliguri, Berhampur,

Bhubaneshwar and also covers Guwahati in North-East India. In the west, it covers

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Indore, Rajkot, Surat, Raipur, Nagpur, Aurangabad, Ahmednagar and other parts of

Maharashtra also. In southern part, it covers Hyderabad, Vijaywada, Madurai,

Bangalore,Trichy, Shimoga, Cochin, Chennai and also many more places.

2.6 Environmental awareness programmes by Tata Agrico

TATA Agrico is participating in environment awareness program under the

banner of "My Green World" in prominent english medium schools at Kolkata.

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EXECUTIVE SUMMARY

It is my great pleasure to work on this project and to develop the brand equity of the

existing product of the Tata Agrico. It gives me lot of learning experience as well as

the thought how to build a brand and what are the step require for it.

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Today the world of business is place where changes are constant and innovation the

key to success. Branding is one kind of innovation which if implemented, the

customer are never short of further knowledge and information bout the product.

Brands are the powerful asset that must be carefully developed and managed. Brands

are the hearts of any business. It is through branding, companies maintains customer

loyalty, attracts and nurture new market segment, gets price stability and satisfies

customer profitably and managers to earn high revenue.

So related to it, my project topic was “to develop the brand equity for the existing

product of Tata Agrico”, a division of Tata Steel. In this way I did the survey that

answered brand awareness, dealer perception and consumer perception about the

product of Tata Agrico. The survey was done in Jamshedpur.

To be a brand lots of suggestion and recommendation has been given in this project

that if implemented will surely be help out Tata Agrico to become a brand leader.

AIM

The aim of my project at Tata Agrico (A Division of Tata Steel)

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To study the existing products in the market at Jamshedpur and analyse the

current situation of the market.

Design a Brand plan to increase the sales of Tata Agrico products.

Provide suggestion to improve the sales.

Market Analysis

5.1 Research Objectives

1. To study how customers perceive about the Tata Agrico products.

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2. To identify the factors that influence the buyers to buy and non- buyers not to

buy the Tata Agrico products.

3. To examine the effectiveness of various promotional activities on sales.

4. To study how dealers perceive about the Tata Agrico products.

5.2 Methodology

Sources of data

The data is basically primary in nature.

It is obtained from the dealers and consumers (farmers, labourers, contractors

and gardeners) of Jamshedpur and Dhanbad.

5.3 Methods

Our communication approach was basically structured questioning, that is

personal interview with the aid of printed questionnaires.

To serve our purposes, we designed two separate questionnaires for the

consumers and the dealers. Each questionnaire was designed in a manner so as

to gain the maximum relevant information from the respondent taking

minimum of their time.

5.4 Sample size

Convenience sampling: No sampling technique was employed in arriving at a

sample size; it is a convenience sampling suiting our use.

Consumer sample size – 40

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Dealer sample size – 25

5.5 Limitations

1. This being a convenience sample, the analysis may not be a true picture of the

target population.

2. Prejudice of some of the respondents.

3. Low sample size of the dealers- that is, we could not find more than 15 who

were able to answer our questions in the areas surveyed.

4. Not much of the importance was attached to this task by some of he

households. In some cases, we were given contradictory answers, which

seemed to show that they are trying to get over with the interview as soon as

possible.

5.6 Analysis of consumer survey

1. Tools which are mostly in use

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11

11

7

34

7

35

24

12

5

14

12

7

4

3

14

17

10

9

1

7

18

1

6

11

5

17

1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Rank0

Rank1

Rank2

Rank3

Rank4

Rank5

Rank6

Gardener tools

Crowbars

Sickles

Hammer

Pick-axes

Shovels

Hoes

Fig 1: Showing the rank wise distribution of different tools

It is clear from the graph that people are using Hoes and Shovels in maximum

numbers. Both are used in construction, farming and in many places. So they are

highly in demand in the market. Gardener tools are not having that much share of the

market as they are least in use.

2. Awareness of Tata Agrico product

Sample size- 40

Frequency Percent

Valid Yes 32 80.0

No 8 20.0

Total 40 100.0

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Aware/Not-Aware

80%

20%

Yes

No

Figure 2 – Graph showing the aware and not aware percentage

80% of the respondents are aware of Tata agrico products while 20% of them are

not.

3. Users of the Tata Agrico product

Sample size - 40

Frequency Percent

Valid Yes 21 52.5

No 19 47.5

Total 40 100.0

User/Not-user

52%

48%Yes

No

Figure 3 – Graph showing percentage of consumers which are user

52% of the respondents are users of Tata Agrico product and 48% of them are non-

users.

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4. Tata Agrico product which are mostly in use

Frequency Percent

Valid Tata hoes 9 22.5

Tata shovel 2 5.0

Tata Pick-axes 1 2.5

Tata Hammer 7 17.5

Tata Garden Tools 2 5.0

None 19 47.5

Total 40 100.0

Figure 4 – Bar chart showing frequencies of uses of different products.

It is clear from the chart that the people are mostly using the hoes and the hammers.

As Tata is the only manufacturer of hammer, so it is having an edge over others in this

category.

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5. Competitors of Tata Agrico

Frequency Percent

Valid SRG India 24 60.0

Kinger 5 12.5

Hurkut 4 10.0

Others 7 17.5

Total 40 100.0

From the table and graph it can be clearly inferred that SRG India is the toughest

competitor to Tata Agrico products according to consumer’s perception.

Figure 5 - Competitors present in the market.

6. Satisfaction level with the Tata Agrico products ( For users only)

From the survey we can clearly say that the consumers are satisfied by the

products as all the 21 users of the products mentioned satisfaction in the survey.

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7. Influencing factors in buying the tools

0

1

2

3

4

5

6

7

8

9

User

Non-user

Figure 6 – Influencing factor for the user and non-user

It is found that the non-users have not purchased Tata Agrico products because of

dissatisfaction and prejudice about the quality of the product after the outsourcing of

the manufacturing of the product.

For users, quality, durability and brand image are the factors that influenced the

purchase of the Tata Agrico products.

8. Promotional activities and various schemes associated with Tata Agrico products

Promotional Awareness

Frequency Percent

Valid Yes 10 25.0

No 30 75.0

Total40 100.0

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Figure 7 – Promotional awareness about the product

75% consumers were not known about any of the promotional activities by the Tata

Agrico, only 25% said yes and they have seen some hoardings and banners but they

have seen it in very small amount and in very few places.

About schemes all the respondents are not known about any of the schemes provided

by the Tata Agrico product.

9. Suggestions by the consumers to improve the sales.

Suggestions given by consumers

Frequency Percent

Valid Availability 6 15.0

Schemes for consumers 18 45.0

Price 16 40.0

Total 40 100.0

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Figure 8 – Suggestions given by the consumers

According to the table and graph it can be clearly inferred that respondents want some

schemes for them and after that slight decrease in price so that the product will be in

the reach of the consumers.

10. Frequency and quantity of purchasing tools

Frequency of purchasing tools

Frequency Percent

Valid Quarterly 8 20.0

Half-yearly 20 50.0

Yearly 12 30.0

Total 40 100.0

Quantity Purchased at single time

Frequency Percent

Valid 1-5 28 70.0

6-10 10 25.0

11-15 1 2.5

15> 1 2.5

Total 40 100.0

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From the graph you can easily interpret that the respondents are purchasing the tools

Half-yearly and the quantity should be (1-5) according to the survey done.

37

Demographics:

Age

Age Group of consumer

Frequency Percent

Valid <25 4 10.0

25-34 16 40.0

35-44 14 35.0

45> 6 15.0

Total 40 100.0

4

16

14

6

0

2

4

6

8

10

12

14

16

<25 26-34 35-44 >44

Age Group

Age Group

Occupation

Consumers contacted

Frequency Percent

Valid Farmers 8 20.0

Labours 8 20.0

Contractors 19 47.5

Gardeners 5 12.5

Total 40 100.0

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Occupation

8 8

19

5

0

2

4

6

8

10

12

14

16

18

20

Farmers Labourous Contractors Gardeners

Occupation

Monthly Income

Income of consumer

Frequency Percent

Valid <5000 12 30.0

5001-10000 20 50.0

10001-15000

6 15.0

15000> 2 5.0

Total 40 100.0

Income Group

12

20

6

2

0 5 10 15 20 25

<5000

5001-10000

10001-15000

>15000

Income Group

39

5.7 Analysis of Dealer survey

The survey is done in Jamshedpur and Dhanbad cities. The area is divided into four

parts for the sample of the dealers. The four areas are Sakchi, Mango, Bistupur and

Golmuri. Dhanbad accounts for 40% of the sample and the remaining 60% is covered

by Jamshedpur region.

Share of different region in sample

12%

24%

4%

20%

40%Golmuri

Sakchi

Mango

Bistupur

Dhanbad

1. Factors influencing customer’s purchase decision according to the dealers.

Rank 1 Rank 2 Rank 3 Rank 4Brand 14 6 5 0Reliability 2 2 6 15Performance 3 7 10 5Durability 6 10 4 5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Rank 1 Rank 2 Rank 3 Rank 4

Durability

Performance

Reliability

Brand

40

We can say by looking at the table and the chart that the maximum no of dealers staed

that they are giving preference to the brand image after that durability, performance

and than reliability.

2. Ranking of the products in order of demand from customers.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6

Crowbars

Sickles

Hammers

Pick axes

Shovels

Hoes

According to survey the Shovels are highly in demand than follows by the Hoes. It is

clear from the above bar chart which is showing the ranking of the products.

3. Customers of the products

Customers of product

68%

23%

9%

Contractors

Labourous

Farmers

According to the dealers almost 70% of the sales are made by the contractor,

which is followed by the labourers, farmers having 23% and 9% share

respectively.

41

4. Percentage of Tata Agrico in total sales of tools.

Sales of Tata Agrico

Frequency Percent

Valid 0-25 15 60.0

25-50 10 40.0

Total 25 100.0

80% of the respondents said that Tata Agrico has 0-25 percent share of the sales in

heir total sales in a year And 405 said it is between 25-50%.

6 Aware of any promotional activity.

Almost every respondents said that they are not aware any promotional activity by

the Tata Agrico.

7 The effect of promotional activities on sales according to dealers

Commercial effect on sales

Frequency Percent

Valid Increase in sales 18 72

No change in sales

7 28

Total 25 100.0

42

Effect of promotional activity

72%

28%

Increase in sales

No change in sales

72% of the respondents feel that the promotional activity will increase the sales

and 28% stated that it will not affect the sales.

7. The preferring media for advertisement according to dealers

Medias for advertisement

Frequency Percent

Valid Newspaper 5 20

Radio 8 32

Hoarding 12 48

Total 25 100.0

Striking media for promotional activity

0 2 4 6 8 10 12 14

Newspaper

Radio

Hoarding

Series1

Series1 5 8 12

Newspaper Radio Hoarding

43

After the survey it is clear from the graph that the Hoarding is the striking media

for the promotional activity in villages and semi urban areas followed by the

Radio and Newspaper.

8. Tata Agrico as a brand.

About brand

Frequency Percent

Valid Successful 18 72

Un-Successful 7 28

Total 25 100.0

Percantage

72%

28%

Successful

Un-Successful

87% of the respondents feel that Tata Agrico is a successful brand. Rest 13% find it to

be unsuccessful.

9. Factors behind the Tata Agrico being a successful brand/unsuccessful brand

Successful frequency Percentage

Brand name 10 55.5

Range of product 2 11.1

Quality 6 33.3

44

Reason for success

56%

11%

33%

Brand name

Range of product

Quality

As far as the reasons for Tata Agrico being a successful brand is concern, 56% of

the consumers feel that the success is due to the Brand name of Tata, 32% feel its

due to the quality of the product and the rest 12% feel that its due to the range of

the product.

Unsuccessful Frequency Percentage

Promotional Activity 2 28.5

Price 5 71.4

Reason for non-success

29%

71%

Promotional Activity

Price

Among the people ,who feel that the Tata Agrico is an unsuccessful brand, they

are not satisfied in the promotional activity and in the price term.

45

10. Toughest competitor to Tata Agrio product.

Toughest Competitor for Tata Agrico

Frequency Percent

SRG India 15 60

Kinger 3 12

Hurkut 1 4

Others 6 24

SRG India is found to be the toughest competitor to Tata Agrico covering almost 60%

of the graph area.

Toughest competitor for Tata Agrico

60%

12%

4%

24%

SRG India

Kinger

Hurkut

Others

11. Satisfaction level of the service provided by the distributor.

Frequency Percent

Valid Satisfied 10 40.0

Not-Satisfied 15 60.0

Total 25 100.0

46

Almost 60% are not satisfied by the service provided by the distributor.

47

5.8 Findings

1. During our research process we found that majority of the

Consumers find the brand to be successful they have not actually bought it ,

because of the following reasons:

At the time of their purchase either the other brands had come out with

better promotional schemes and in reasonable price.

Some times they are not able to find the product so what ever is present

at that moment they buy that.

Dealers even find the brand to be successful but because of some reasons

they are not promoting that.

o Price is very high as compared to the other competitors.

o Service provided by the distributor is not good.

o Dealer’s incentive is very less.

2. As discussed above there are many factors which are taken into consideration

while making a decision to purchase the product like:

Quality

Price

Brand image

Durability and performance

3. As there are no promotional activities are present in the market so the

company have to work on that.

48

SWOT Analysis

6.1 Strength

A. Tata’s Brand image: It is a big strength of Tata Agrico that it is a branch of Tata

Steel which has been successfully doing business for a century.

B. Quality: Tata Agrico has maintained a reputation in market for its quality as

compared to its competitive brands.

C. Raw materials: Raw materials for Tata Agrico products are produced by Tata Steel

and thus they have an edge over any problems related to raw material handling.

6.2 Weakness

A. High price: The prices of the products are high as compared to those of

competitive products because of which the customers easily shift to the competitive

products whose prices are relatively low.

B. Distribution problem: As there is only one distributor in the whole Jamshedpur

city, the dealers are facing some problems in getting the products and receiving bills

and challans and even the service provided by the dealers not up to that mark.

C. Outsourcing of manufacturing: The dealers are facing problems in convincing the

consumers about the quality of the products when the customers know that the

production of Tata Agrico is outsourced. The customers get doubt about the quality of

the products as these are not produced by Tata itself.

6.3 Opportunities

A. National Brand: Tata Agrico can be made a national brand as this has been the

oldest brand available in the market as well as there is no other competitive national

brand available. Creating awareness nationally about the brand can increase the sales.

B. Boom in real estate sector: In current business scenario in India, Real Estate sector

is booming and thus the demand of the products dealt by Tata Agrico is getting more

and more and will continue

C. Agricultural Sector: In the current budget 2008, Indian Government has sanctioned

a huge amount of rupees which will be provided to the farmers as loan for agriculture

and hence the demand of the agricultural tools will be more.

49

6.4 Threats

A. Financially weak consumers: The Indian farmers and labours are not financially

strong enough to buy branded and bit costly products.

B. Competitors: The number of Tata Agrico is increasing day by day and thus they

are providing a real challenge it in the market. According to the dealers, the swing

with which Tata Agrico’s competitor SRG group is doing business, it may lead in the

market leaving behind Tata Agrico.

50

Recommendations

The Tata Agrico product is a brand itself in the market and obviously got a wide edge

on the competitors in the market, being a Tata product but now days it has been

perceived while visiting in the market that the quality of the agriculture product has

been gone down day by day. So the following suggestion is given for the development

of the brand equity for the Tata Agrico product.

7.1 Switching intermediaries

Changing the pattern of distribution can further enhance the agriculture product

market by bringing the firm closer to its customer. It is seen for Tata Agrico product

that only one distributor exist in the entire state for the avaibility of the product and

dealers are facing lots of problems for delivering of the product like they have to pay

full advance before the delivery of product, instead of full ordered product dealers

loose some number of product etc.

This can be diminished by adding company-owned or franchised retail outlet in the

market and can give customer a better place for purchasing the agriculture product. In

this way the firm can switch to direct marketing from indirect marketing.

Tata Agrico may use both strategies to penetrate the market. The may use

conventional channel of distributor-dealer network along with they may create a chain

of exclusive boutiques like company owned or franchised retail outlets across the

Jharkhand state.In this way it can motivate the prime customer group like contractors,

builders or to some extent the affluent farmers (usually major credit cards holders) to

visit them and shop for tan exclusive ranges of agriculture product at a special price.

Finding new outlets to distribute the product is the key to deeper penetration. Lots of

brand succeeded in this way.

In other words following the customer and making the product available at all

possible places of customer congregation can ensure Tata Agrico competitive fit with

the market. In this way it can also improve the brand equity of the product.

51

7.2 Vehicles as a medium for advertising

Transport vehicles also helps reinforce brand image,for example we may see this

strategy is being used by many soft drinks company like Pepsi,Coca-Cola,Mineral

water producers and other consumer product companies like G.E etc.This strategies

could be used by Tata Agrico to communicate its brand image and values ,the name

written of Tata Agrico on the vehicles that could be run in the rural area to attract the

attention of the farmers and also in urban areas to attract the attention of contractors

and builders. In this way the brand of Tata Agrico could be repositioned in the mind

of target customers.

7.3 Event management and sponsorship

In an environment of highly fragmented media audience, an effective way of ensuring

a captive audience is event management and sponsorship.Tata Agrico can be a

sponsor of the Programme like Krishi-Darshan which is telecasted for the benefits of

the farmers. In this way the brand could be positioned in the mind of the customers.

7.4 Understanding consumer needs

Tata Agrico being a brand name talks with maximum target customers every year.

The company can use variety of approaches; from In-home rural area visits for lower

class segment like farmers and its product testing via internet for high segment liken

contractors. In this way it would be able to discover new, unmet and often

unarticulated consumer needs.

7.5 Others

Tata Agrico should go for a new restructuring process by which it can keep

itself very competitive in the market. The company should arrange its

manufacturing units across India to decrease its transport costs so that it can

bring down its total manufacturing costs easily and can tap Indian market

efficiently.

Tata Agrico should initiate its marketing activities across all over India to

increase the visibility of Tata Agrico brand.

52

While delivering its product to consumer Tata Agrico can give such gift like

pen, key rings, diaries, letter- pad etc with the name Tata Agrico engraved on

it to promote customer loyalty.

To launch lucrative dealer incentives scheme so that dealers should be

motivated.

To educate the consumers about the genuine Tata Agrico product through

product communication campaign.

To protect the brand and differentiate it from spurious product.

To concentrate on rural marketing through wall painting and effective

measures.

To create awareness about the brand across the country through regional

advertisements in agricultural programmes through Radio, TV, Newspapers.

To launch customer incentive programmes to build brand loyalty.

To be a strong customer focus the organization needs to promote internal as

well as external campaigns so that its make its employee more customer

focused as well as the customer more aware about the organization .For this

Tata Agrico can go for the campaigns with tag line such as – “we know

customer knows us better than us”, Tata Agrico: - The name which must be

trusted. These campaigns will surely reinforce the company focus on the

customer.

CONCLUSION

53

In t he conc lu s ion o f t he p ro j ec t , I wou ld l i ke t o s t a t e t ha t

b r and ing ha s become the mos t impor t an t e l emen t o f t he ma rke t i ng

func t i on i n a lmos t a l l i ndus t r i e s . B rand managemen t i s t he

p roce s s , by wh ich Ta t a Agr i co can make d i f f e r en t i a t i on f rom

o the r compe t i t o r s , c an c r ea t e cus tomer l oya l t y and adds co rpo ra t e

va lue on b r and . I n t he cu r r en t compe t i t i ve ma rke t s , b r ands have

become to be i den t i f i ed a s an i n t ang ib l e a s se t t ha t c an be r evenue

gene ra t i ng i n t he l ong t e rm .

Be ing t he o lde s t p l aye r dea l i ng w i th ag r i co p roduc t s i n t he ma rke t

a s we l l a s be ing a bus ine s s un i t o f t he succe s s fu l l y runn ing Ta t a

S t ee l , Ta t a Agr i co ha s ga ined b r and image i n t he ma rke t . Bu t a s

t he bus ine s s s cena r io i s chang ing w i th i nc lu s ion o f more number

o f compe t i t o r s , Ta t a ag r i co ha s t o upg rade t he b r and managemen t

con t i nuous ly . I t ha s ma in t a ined an app rec i ab l e qua l i t y o f t he

p roduc t , bu t i t h a s t o g ive more a t t en t i on on d i s t r i bu t i on

channe l s , p romot ions l i ke dea l e r s and cus tomer s i ncen t i ve ,

adve r t i s i ng , r u r a l ma rke t i ng and e spec i a l l y on p r i c i ng .

I f Ta t a Agr i co manages i t s b r and image i n t he ma rke t and

r ep re sen t s i t s e l f a s a na t i ona l b r and by fu l f i l l i ng a l l t he f a c to r s

d i s cus sed above , i t c an run i t s bus ine s s succe s s fu l l y and t hus c an

be t he number one p l aye r i n t he ma rke t i n compa r i son t o i t s

compe t i t o r s .

54

Appendix

9 A. Questionnaires for consumer’s perception about agricultural tools

1) Which agricultural tools you are using?

Hoes

Shovels

Pick-axes

Hammers

Sickles

Crowbars

Garden Tools

2). Are you aware of Tata Agrico products?

Yes

No

3) Are you a user of Tata Agrico product?

Yes

No

(If no then go to Q.No.11.)

4) In Tata Agrico brand which sub-brand do you use?

Tata Hoes

Tata Shovels

Tata Pick-axes

Tata Hammers

Tata Sickles

Tata Crowbars

55

Tata Garden Tools

5) What do you think is the toughest competitor to Tata Agrico?

SRG group

Kinger

Hurkut

Any other

Please specify why? .........................................

6) Are you satisfied with the Tata agrico products?

Yes

No

If No, why? ............................................

7) What influence your decision while buying Tata Agrico Product?

Brand image

Reliability

Durability

Quality

Appearance

Price

Any other? Please specify……………………………..

8) Have you seen any promotional campaign of Tata Agrico?

Yes

No

If yes which one you have seen mostly?

TV advertisement

Outdoor hoardings

Road show

Media interview

56

Any other? Please specify………….

9) Do the various schemes associated with Tata Agrico affect your purchase?

Yes

No

10) Would you suggest any changes for Tata Agrico product in the following field?

Availability

Style of packaging

More schemes to be associated with the brand

Pricing

Quality

Any other? Please specify …………………….

11) Why not Tata Agrico?

Price

Quality

Packaging

Fewer schemes as compared to other brand

Any other, please specify? ...................................

12) Which Brand do you prefer to buy?

SRG Group

Kinger Group

Hurkut Group

Any Other? Please Specify? .................................

13) What influence you to buy your preferred brand?

Your colleague

Advertisement

Price

57

Quality

Self-experience

Any Other? Please Specify……………………

14) If your preferred Brand is not available then you go for…..

First choice ……………………………

Second choice ………………………...

15) How frequently are you purchasing these tools?

Monthly

Quarterly

Half-yearly

Yearly.

16) . What is the quantity of purchasing at a single time?

(1-5)

(6-10)

(11-15)

More than 15.

17) Most preferred brand among people you know?

SRG group

Hurkut Group

Kinger Group

Tata Agrico

Any Other? Please Specify………………….

18) Do you agree with the punch line of Tata Agrico – A Bond of Trust?

………………………………………………………………………..

58

Something about you.

Name: - Mr./Mrs./Ms…………………………..

Age Group: - kindly tick whichever is applicable

< 25

25-34

35-44

45 and above

Occupation:-

Income Group:-

< 5,000

5,001-10,000

10,001-15,000

15,001 and above

Thank you for your co-operation and patience.

59

9 B DEALER’S OPINION SURVEY

1. What influence your customer’s decision to purchase a Tata Agriculture Brand

like Hoes, Shovels etc? (rank the following in the order of performance)

Best, 2- Next best, etc.

Brand

Reliability

Performance

Durability

2. Rank the products in order of demand from customers

Most demanded, 2- Next most demanded etc.

Hoes

Sickles

Crowbars

Shovels

Pick Axes

Hammers

Roll-cut Secateurs

Pruning Secateurs

Garden Cultivator

Garden Trowel

3. Rank the customers in order of purchasing demand

Highest purchasing demand, 2- Next purchasing demand etc.

Farmers

Labourors

Contactors

Industries (e.g. Railways)

60

4. Among the total sales of agricultural tools, what percentage is carried by TATA

AGRICO products?

Less than 25%

(25-50)%

(50-75)%

More than 75%

5. Are you aware of any promotional activities/advertisements by Tata Agrico?

Yes

No

6. How commercials can affect the sales?

Increased sales

Decreased sales

No change in sales

7. If No, which do you think is the most striking media for Tata Agrico to

advertise?

Newspaper

TV

Radio

Hoarding

8. Do you think the quality of Tata Agrico product has been able to attract the

customer?

Yes

No

61

9. Which do you think is the toughest competitor to Tata Agrico?

SRG Group

Kinger

Hurkut

Any others

Please specify why?

10. Where do you rank the following Agriculture product company in terms of

(Rank the top 3 for each).

Tata Agrico SRG group Hurkut Kinger

Brand Name

Ranges of

product

Performance

Dealer

Promotional

Activities

Consumer

Promotional

Activities

11. Do you think Tata Agrico is a

Successful brand

Unsuccessful brand

62

12. Why do you think Tata Agrico has been a successful/unsuccessful brand?

Range of products

Quality

Distribution network

Promotional activities

13. Are you satisfied by selling Tata Agrico products?

Yes

No

If No, why?

14. Are you satisfied with the dealer incentive scheme provided to you by Tata

Agrico?

Yes

No

15. Are you satisfied with the service provided by the distributor?

Yes

No

If No, why?

A word about yourself

Name:

Shop Address:

How long have you been in this business?

Total sales in agricultural tools (in Rs.) :

Suggestions to increase the sales of Tata Agrico products.

63

BIBLIOGRAPHY

All the information’s were collected from internet site, books, journals and data’s

provided to me.

Internet site

www.tatasteel.com

www.google.com

www.tataagrico.com

www.thehindubusinessline.com

www.hinduonnet.com

www.expressindia.com

Books

Marketing Research by Rajendra Nargundkar (IInd edition)

Marketing Management by Philip Kotler (Eleventh edition)

Research Methodology by C R Kothari (Second edition)

Global Brands by Senthil Ganesan

Business Research methods by Donald R Cooper (Sixth edition)

Journals

ICFAI case studies in Brand management

Financial Express (June edition)

Library

Shavak Nanavati Technical institute (SNTI) library

Tata Management Development Centre (TMDC) library

64