IMPACT OF MECHANICS ON THESALE OF TRACTORS

PRESENTED BY Mani Mahesh Dhiman

Roll No. 5758MBA 3rd Semester

INTRODUCTION

An auto mechanic is a mechanic who specializes in automobile maintenance, repair, and sometimes modification and design.

Education is usually post-secondary or secondary vocational education, although apprenticeship under a master mechanic is also an accepted method of learning the trade.

Auto 'mechanics' are today professionally referred to as 'technicians', due to the level of technological competency now required to diagnose and perform needed repairs.

INDIAN TRACTOR INDUSTRY

Tractor industry plays an important part as agriculture sector has a major contribution to India’s GDP.

Tractors are part of agricultural machinery industry.

Tractors came to India through imports and later on were indigenously manufactured with the help of foreign collaborations.

FOREIGN COLLABORATION

Tractor industry along with others benefited from this policy which allowed free inflow of foreign technology .

The establishment and present status of tractor industry owes a great deal to the support received by the Indian entrepreneurs from foreign collaboration during the initial phase of manufacture

INDIAN TRACTOR INDUSTRY

Tractor industry plays an important part as agriculture sector has a major contribution to India’s GDP.

Tractors are part of agricultural machinery industry.

Tractors came to India through imports and later on were indigenously manufactured with the help of foreign collaborations.

Indian tractor industry, comparatively young by world standards have expanded at a spectacular pace during last four decades.

FOREIGN COLLABORATION

Tractor industry along with others benefited from this policy which allowed free inflow of foreign technology

The establishment and present status of tractor industry owes a great deal to the support received by the Indian entrepreneurs from foreign collaboration during the initial phase of manufacture

INDIAN TRACTOR MARKET OVERVIEW The tractor penetration level in India is very low

as compared to the world standards. Also the penetration levels are also not uniform throughout the country

The medium horse power category tractors, 31-40 HP are the most popular in the country and fastest growing segment.

INDUSTRY TRENDS BY REGIONS

INDUSTRY TRENDS BY STATE

The key factors enabling the demand growth of 2009-10 were,1. Strong rural liquidity2. Higher Minimum Support Price (MSP) for crops3. Greater ability of farmers to make cash purchases4. Enhanced employment opportunities\

5. Improved Credit environment6. Continuance of replacement demand7. Non-agricultural use of tractors8. Change in product mix

REGION-WISE MARKET SHARE OF MAJOR PLAYERS

MARKET CONCENTRATION

i) MARKET CAPITALISATION IN TERMS OF VOLUME

ii) MARKET CAPITALISATION IN TERMS OF SALES

COMPANY PROFILE

MAHINDRA & MAHINDRA LTD., SWARAJ DIVISION, MOHALI

Punjab Tractors Limited (PTL) a joint sector company of the Punjab Government, which went into commercial promotion in the early seventies, is a unique example of technological self reliance in a high technology area like the automotive sector in the country.

BACKGROUND

Punjab Tractors Limited (PTL) was promoted by PSIDC to commercialize the indigenous tractor developed by the Central Mechanical Engineering Research Institute (CMERI).

The Company's plant is situated at S.A.S. Nagar (Mohali) where production commenced in the year 1974.

The company's product line also includes Combine Harvesters and Forklifts.

The production capacity of tractors has increased to 60000 nos., from the level of 5000 nos.

ASSOCIATE UNITS OF PTL

SWARAJ FOUNDARY DIVISION:

SWARAJ COMBINE DIVISION (SCD):

SWARAJ AUTOMOTIVES LITD.

SWARAJ MAZDA LTD.

SWARAJ ENGINES LTD. (SEL).

PUNJAB TRACTORS LTD EQUITY SHAREHOLDING PATTERNAS ON 31ST MARCH, 2010

SWOT ANALYSIS

STRENGTHS: Due to strong consumer preference and the potential for expansion,

the industry in bound to record growth. Being a cash rich company, PTL should have no obstacle for further

expansions. The management of PTL is very efficient and effective. The company mainly has medium horse power tractor in its product

portfolio, which hold a good growth potential thereby leading to an increase in the market share.

The company has an excellent distribution network along with established brand equity of the company can capitalized upon.

Strong Research and development set up.

WEAKNESSES: The company has a weak presence in southern and eastern India as

compared to northern India. The company is addressing this problem by going in for capacity

expansion and increasing dealer network. The company has not leveraged its brand and product varies in the

exports market. Being agro-based product , company’s fortune depends on the vagaries

of the monsoon. Major market share in Punjab & Haryana could stagnate as the market

mature.

OPPORTUNITIES: By launching high horse power tractors , the company can

enjoy more high growth rate . The core rural market is untapped and lots of opportunity

exists there any finance companies,. Largest second market of Gujarat and Madhya Pradesh with

low cost economy tractors. Good brand name, product quality and cost advantage to

increase exports in low value markets of Sri Lanka, Bangladesh and African countries.

THREATS: The entry of international and new domestic players would

intensify competition significantly. This could put pressure on the sale growth and the merging of the company.

The contained increase in price of inputs relative to price of final product could effect badly.

Number of technically superior new models likely to be launched in the market in the next two years.

The evitable increase in petroleum prices including diesel, will naturally bring down the spirit of a prospective tractor purchasers

OBJECTIVES OF THE STUDY

To analyze the market performance of the PTL.

To evaluate the factors which influence the decision to buy the tractor.

To find out the awareness, consideration and approach towards Swaraj tractors.

To study the demonstration and explanation of Swaraj tractors to consumers.

RATIONALE OF STUDY

Role of Mechanics advantage in sales and distribution channels.

The moment when they seek advice at the point-of-purchase.

Most have a good idea of what they need, but are uncertain of which brand will provide it.

Incidentally, tractor mechanics provide the vital information.

Most customers seeking word-of-mouth advice, follow it.

OBJECTIVES

To study the various products of Mahindra & Mahindra Ltd., Swaraj Division, Mohali Tractors.

To study the market strategy and promotion sales of Mahindra & Mahindra Ltd., Swaraj Division, Mohali .

To study the various aspects about the Mahindra & Mahindra Ltd., Swaraj Division, Mohali .

To study the role of consumer in the sale of tractors.

To study the comparative analysis of all brands of tractors in relation to the price, quality.

RESEARCH METHODOLOGY

RESERCH DESIGN Designing a research plan includes decisions on data sources,

research approaches, research instrument & sampling plan.

SAMPLING UNIT In this research report the sampling unit is the tractor mechanics of

Ludhiana. Sample Size — 100

Sample Unit – Tractor Mechanics

Area of Survey — Ludhiana

INTERPRETATION AND

ANALYSIS

10-15 Years 0

15-20 Years 4

20-30 Years 11

30 or above 85

Agegroup of Mechanics

30 or above85%

10-15 Years0%

20-30 Years11%

15-20 Years4%

10-15 Years

15-20 Years

20-30 Years

30 or above

AGE:

FOR HOW MANY YEARS, YOU ARE IN MECHANIC LINE?

1-5 Years 3

5-10 Years 17

More than 10 Years 80

Years Experience

5-10 Years17%

1-5 Years3%

More than 10 Years

80%1-5 Years

5-10 Years

More than 10 Years

ARE YOU AN AUTHORIZED MECHANICS?

Yes 3No 97

Authorised Dealership

No97%

Yes3%

WHAT IS YOUR QUALIFICATION REGARDING YOUR WORK?

Diploma in Mechanical 2

Motor Mechanic Course 11

Work Experience only 87

Qualification Regarding Work

Diploma in Mechanical

2%

Work Experience

only87%

Motor Mechanic Course

11%

Diploma in Mechanical

Motor Mechanic Course

Work Experience only

ARE YOU AWARE OF ALL THE MODELS OF TRACTORS AVAILABLE IN THE MARKET?

Awareness Regarding Tractor Models

Yes100%

No0%

ACCORDING TO YOU, WHICH GROUP IS THE MAIN BUYER OF THE TRACTORS?

Main Buyers of Tractors

Farmers, 25

Commercial Users, 5

ACCORDING TO YOU, DO THEY HAVE ENOUGH KNOWLEDGE REGARDING BUYING TRACTOR?

Knowledge Regarding Buying Tractor

Yes100%

No0%

PRIORITIZES THE FOLLOWING ASPECTS WHEN CUSTOMER LOOKS TO BUY NEW TRACTOR.

Customers Priority

Any other, 1After Sale

Service, 11

Performance, 22

Distribution Network, 0

Brand Image, 1

Dealer Response, 0

Cost, 30

Cost

Distribution Network

Brand Image

Dealer Response

Performance

After Sale Service

Any other

WHICH BRAND OF TRACTOR COMES MOSTLY FOR REPAIR?

WHICH BRAND OF TRACTOR YOU RECOMMEND?

WHICH BRAND OF TRACTOR DO YOU SUCCEED TO SELL THE MOST?

What is the %age sale of Mahindra & Mahindra Ltd., Swaraj Division through You? (%Age of total customers consulting

Mechanic)

Mahindra & Mahindra Ltd., Swaraj

RATE THE FOLLOWING ASPECTS FROM 1 TO 6 ACCORDING TO PRIORITY ON THE BASIS OF WHICH YOU RECOMMEND

A BRAND?

0

5

10

15

20

25

30

1 2 3 4 5 6

Ranking

Res

po

nse

s o

f M

ech

anic

s

Cost

Distribution

Brand Image

Performance and Looks

After Sale Service

Help by delare or company Overall Performance of Aspects

36

151 143

57

88

155

020406080

100120140160180

Cost

Dist

ribut

ion

Bran

d Im

age

Perfo

rman

cean

d Lo

oks

Afte

r Sal

eSe

rvic

e

Help

by

Deal

er o

rCo

mpa

ny

Aspects

Ratin

g Po

ints

ACCORDING TO YOU, WHO INFLUENCED BUYING DECISION OF THE USER?

Influencing Buying Decision

Relative, 11

Friend, 11

Opinion Leader, 0

Mechanic, 29

Family Member, 2

Friend

Relative

Family Member

Mechanic

Opinion Leader

WHAT %AGE OF PEOPLE ARE SATISFIED WITH YOUR ADVICE?Satisfaction with Advice

25-50 %, 20-25 %, 0

75-100 %, 3

50-75 %, 25

WHAT %AGE OF PEOPLE DO NOT SEEK SECOND ADVICE AFTER CONSULTING YOU TO BUY A

TRACTOR?People not seek second Advice

25-50 %, 2

0-25 %, 26

75-100 %, 050-75 %, 2

0-25 %

25-50 %

50-75 %

75-100 %

WHAT %AGE OF PEOPLE SEND OTHER PEOPLE TO YOU FOR ADVICE TO BUY A TRACTOR?

Advice with Reference

25-50 %, 17

0-25 %, 12

75-100 %, 050-75 %, 1

0-25 %

25-50 %

50-75 %

75-100 %

HOW MANY TRACTORS DO YOU HELP TO SELL IN A MONTH?Helping Tractors to Sell

15-30 Tractors, 0 30-50 Tractors,

050-80 Tractors, 0

10-15 Tractors, 30

10-15 Tractors

15-30 Tractors

30-50 Tractors

50-80 Tractors

DO YOU RECOMMEND MAHINDRA & MAHINDRA LTD., SWARAJ DIVISION ALSO? IF YES, TO WHAT %AGE OF

CUSTOMERS WHO VISIT YOU FOR ADVICE? Recommendation for Sonalika

25-50 %, 10

0-25 %, 19

75-100 %, 050-75 %, 1

0-25 %

25-50 %

50-75 %

75-100 %

HOW WOULD YOU MAHINDRA & MAHINDRA LTD., SWARAJ DIVISION RATE ON 5-POINT SCALE?

0

5

10

15

20

25

30

Aspects

Res

po

nse

s o

f M

ech

anic

s

1 (poor)

2(Satisfactory)

3(Average)

4(More than Average)

5(Excellent)

Summated Rating Of aspects

91108

8972

4968

10288

111112

020406080

100120

Aspects

Rati

ng

po

ints

DO YOU WANT ANY TYPE OF HELP FROM THE TRACTOR COMPANIES?

Help from Tractor Companies

Yes, 19

No, 11

Yes

No

Only Training, 1

Only Commission, 12

Gifts, 0Any Other, 0

Both Commission & training, 6

Gifts

Only Commission

Only Training

Both Commission &training

Any Other

SUGGESTIONS BY THE MECHANICS FOR MAHINDRA & MAHINDRA LTD., SWARAJ

DIVISION, MOHALI

The main problem is with the spare parts of the tractors, company should have to take care of the availability of the spare parts of tractors in the market so that consumers do not face problem. Spare parts should be standardized.

Tractor models shouldn’t have to change frequently for the improvised classification of the product. Time to time company is changing the products and making confusion in the minds of consumer and mechanics as well.

Lift Pump Pipe provided by the company manufacturers is too long and causing leakage problems time to time. Mechanics have already mentioned these kind of problems to the sales persons and company officials but no step yet been taken.

Heavy bearing system should be used in steering to make it lighter.

Hydraulic problem of lift is being faced. Dry brakes when used for haulage purpose not work properly and make noise.

CONCLUSION

Tractor Mechanics has the vital role in the sale promotion of the Mahindra & Mahindra Ltd., Swaraj Division, Mohali.

The sale promotion of Mahindra & Mahindra Ltd., Swaraj Division, Mohali, they have to take care of the commission and training in the benefit of the mechanics so that more and more mechanics recommend Mahindra & Mahindra Ltd.,

Swaraj Division as their favourite brand, that helps the company to make a good share in the market.

Company must have to enlist all the tractor mechanics of the Patiala District and have to make plan sheet in accordance to provide benefits to them.

LIMITATIONS

The size of the research may not be substantial.

There was lack of time on the part of mechanics.

There may be some bias information provide by tractor mechanics.

As only a single city are surveyed or covered. It does not represent the overall view of Tractor Market.

It is very much possible that some of the mechanics may have given the incorrect information.

The last but the most important point to that survey was carried through Questionnaire and the Questions were based on perception.

THANKYOU