Vanraj Tractors

8/4/2019 Vanraj Tractors

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VANRAJ MINI-TRACTORSIS SMALL BEAUTIFUL?

PRESENTED BY;

SURYA PRAKASH (12)

SAURABH SRIVASTAVA (16)

VIKAS KUMAR (39)

IRFAN SHAHID (48)


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Case Situation


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Company

The Company named M/s Pramal Farmatics Pvt. Ltd owned by

three technopreneurs Jagdip Trivedi, Jayanti Bhai Patel andPragnesh Patel, manufacturing facilities situated near Anand

Gujarat

Initially it was a material handling company

Which is now ready to manufacture and market the small 10HP tractor under the brand name of Vanraj.

Company got the certification of Central Motor Vehicle Rules(CMVR) from Central Farm Machinery Testing and Training

Institute (Budhni, MP).

Company had good technical and professional experience

before entering in this business.


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Competition

Company is entering in the new segment and this segment

was not catered by any company

There was not any direct competition but it was in the very

competitive Industry where various major players like

Mahindra & Mahindra, TAFE, Punjab Tractors, Escortsand Sonalika were there.

There were three mini tractor manufacturer but they were

not the refined product that is why they are not direct

competition.


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Customers

They are going to enter in the new segment which was not

catered by any company as such that is why there is no

clear defined customers

Usage and the design of the tractor has some implicationabout the customers they may be the Small and marginal

farmers, horticulture farmers, material handling customers

They have also identified the large farmers as segments.


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PEST ANALYSIS

This case is not too much influenced with politics

Economical the company was the small scale industry and thecustomers identified were small and marginal, large andhorticulturist etc.

Company got funding from the government wing for thetechnological refinement

Sociological factors - product was focused to cater small usagewhich was not tackled by the big tractors.

Most of the consumers were small and marginal farmers. For thebuying the tractor they consider the HP as the main factor butbeside this there are other factors like it is a status symbol also itis the sign of prosperity also tractor purchase also has lot ofother social significance.


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CONT.. Technological aspect

The marginal farmers are still dependent on the bullocks and

other manual systems.

Farm mechanisation has lot of value in terms of the upliftment of

the poor and increasing the productivity

In tractor industry HP is the main criteria and most of the

technological aspects are covered in this case


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MARKET SEGMENTATIONDemographicsegmentation

Geographical/Segmentation based on

Topography of soil

Product segmentation(Engine horse power)


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Demographic segmentation

On the basis of land holdings:

Small & marginal farmers: In this category the level of

mechanisation is low and they used bullocks for tilling andagricultural operations. Moreover they had small land for

farming and the Vanraj tractor was focussing this segment

as its target.

Large farmers: This section was catered by all the big

players as they have large area for farming and the farms

were highly mechanised. They usually preferred tractors

having HP more than 20.


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CONT.

On the basis of type of occupation:

Industry: Industry wise they are divided into small scale

firm, national, and multinational players.

Horticulture: This segment of cultivation requires specificdesign which would facilitate the cultivation process. It

requires intercultural operations like removing weeds and

creation of soil. These functions could be well performed

by tractors having three wheel convertible features

which is observed in Vanraj tractors.

hi l/ i


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Geographical/ Segmentation

based on Topography of soil

North India: The regions like Punjab, UttarPradesh, and Haryana were dominant in tractor

sales. As the soil is alluvial they require tractors

with less HP.

South and West India: In the regions like Gujarat,Maharashtra and Madhya Pradesh the soil is

harder type- Laterite and black soil where more HP

tractors are required

d i


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Product segmentation

(Engine horse power)

Mini tractor: The tractors which are having less than 20 HP

are considered to be the mini tractors and Vanraj being one ofthem.

Small tractor: Tractors having horsepower between 21 and 30

HP are considered as small tractors.

Medium tractor: Tractors having horse power between 31 and40 HP were included in this section.

Large tractor: Tractors having horse power more than 50 HPwere included in this section.


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The segmentation on the basis of

land holdings is important as

This segment is not served by big players, as they are

interested in more margins.

In this segment about 82% of the people do not have

tractors, thus having more scope for future.

Land holdings are smaller, for small farmers it is 0.4 hac &

for marginal farmers it is 1.4 hac. Thus they need a tractor

which is not bigger in size.

The Vanraj tractors are of 10 HP and hence it would be bestsuitable for small and marginal farmers due to its low cost

and lesser fuel consumption with more utility and less

maintenance.

Documents

Vanraj Tractors