AResearch Report
ON
“Consumer Behavior of Rural Customers Regarding Tractors : A Descriptive Study
of Sirsa District”
(Submitted in partial fulfillment of the requirement of Master of Business Administration, distance Education
Guru Jambheshwar University of Science &
Technology , Hisar
Under guidance of: Submitted by: Ms. Sandra Kalra Sunil Kumar Lecturer Enrol. No. 07061128040SGIIT, Sirsa MBA IV (Marketing)
DIRECTORATE OF DISTANCE EDUCATIONGURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY,
HISAR-125001
CERTIFICATE
This is to certify that Mr. Sunil Kumar, Enrolment No.
07061128040 has proceeded under by supervision her
Research Project Report on "Consumer Behavior of Rural
Customers Regarding Tractors : A Descriptive Study of
Sirsa District" in the specialization area Marketing”
The work embodied in this report is original and is of the
standard expected of an MBA student and has not been
submitted in part or full to this or any other university for the
award of any degree or diploma. He has completed all
requirements of guidelines for Research Project Report and the
work is fit for evaluation.
Signature of Supervisor/Guide (with SEAL)
NAME : Sandra Kalra
DESIGNATION : Lecturer
ORGANIATION : SGIIT, Sirsa
Forwarded by Head/Director of Study Centre
(with signature, Name & SEAL)
DECLARATION
This is to certify that the project Report entitled " Consumer
Behavior of Rural Customers Regarding Tractors : A
Descriptive Study of Sirsa District " is an original work
and has not been submitted is part or full to this or any other
university/ institution the award of any degree or diploma.
Signature of candidate
NAME : Sunil Kumar
ENROLMENT NO.: 07061128040
SPECILIZATION : Marketing
SESSION : 2007-09
Contents
Sr. Description
1. Introduction
2. Review of Literature
3. Research Methodology
4. Data Analysis & Interpretation
5. Findings & Suggestions
References
Questionnaire
CHAPTER-1INTRODUCTION
CHAPTER-1
INTRODUCTI
ON
CHAPTER-1
INTRODUCTI
ON
Consumer behavior involves the psychological processes
that consumers go through in recognizing needs, finding ways
to solve these needs, making purchase decisions (e.g.,
whether or not to purchase a product and, if so, which brand
and where), interpret information, make plans, and implement
these plans (e.g., by engaging in comparison shopping or
actually purchasing a product).
The psychology of how consumers think, feel, reason,
and select between different alternatives (e.g., brands,
products);
The psychology of how the consumer is influenced by his
or her environment (e.g., culture, family, signs, media);
The behavior of consumers while shopping or making
other marketing decisions;
Limitations in consumer knowledge or information
processing abilities influence decisions and marketing
outcome;
How consumer motivation and decision strategies differ
between products that differ in their level of importance
or interest that they entail for the consumer; and
How marketers can adapt and improve their marketing
campaigns and marketing strategies to more effectively
reach the consumer.
One "official" definition of consumer behavior is "The study of
individuals, groups, or organizations and the processes they
use to select, secure, use, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that
these processes have on the consumer and society." Although
it is not necessary to memorize this definition, it brings up
some useful points:
Behavior occurs either for the individual, or in the context
of a group (e.g., friends influence what kinds of clothes a
person wears) or an organization (people on the job make
decisions as to which products the firm should use).
Consumer behavior involves the use and disposal of
products as well as the study of how they are purchased.
Product use is often of great interest to the marketer,
because this may influence how a product is best
positioned or how we can encourage increased
consumption. Since many environmental problems result
from product disposal (e.g., motor oil being sent into
sewage systems to save the recycling fee, or garbage
piling up at landfills) this is also an area of interest.
Consumer behavior involves services and ideas as well as
tangible products.
The impact of consumer behavior on society is also of
relevance. For example, aggressive marketing of high fat
foods, or aggressive marketing of easy credit, may have
serious repercussions for the national health and
economy.
There are four main applications of consumer behavior:
The most obvious is for marketing strategy—i.e., for
making better marketing campaigns. For example, by
understanding that consumers are more receptive to food
advertising when they are hungry, we learn to schedule
snack advertisements late in the afternoon. By
understanding that new products are usually initially
adopted by a few consumers and only spread later, and
then only gradually, to the rest of the population, we
learn that (1) companies that introduce new products
must be well financed so that they can stay afloat until
their products become a commercial success and (2) it is
important to please initial customers, since they will in
turn influence many subsequent customers’ brand
choices.
A second application is public policy. In the 1980s,
Accutane, a near miracle cure for acne, was introduced.
Unfortunately, Accutane resulted in severe birth defects if
taken by pregnant women. Although physicians were
instructed to warn their female patients of this, a number
still became pregnant while taking the drug. To get
consumers’ attention, the Federal Drug Administration
(FDA) took the step of requiring that very graphic
pictures of deformed babies be shown on the medicine
containers.
Social marketing involves getting ideas across to
consumers rather than selling something. Marty Fishbein,
a marketing professor, went on sabbatical to work for the
Centers for Disease Control trying to reduce the
incidence of transmission of diseases through illegal drug
use. The best solution, obviously, would be if we could
get illegal drug users to stop. This, however, was deemed
to be infeasible. It was also determined that the practice
of sharing needles was too ingrained in the drug culture
to be stopped. As a result, using knowledge of consumer
attitudes, Dr. Fishbein created a campaign that
encouraged the cleaning of needles in bleach before
sharing them, a goal that was believed to be more
realistic.
As a final benefit, studying consumer behavior should
make us better consumers. Common sense suggests, for
example, that if you buy a 64 liquid ounce bottle of
laundry detergent, you should pay less per ounce than if
you bought two 32 ounce bottles. In practice, however,
you often pay a size premium by buying the larger
quantity. In other words, in this case, knowing this fact
will sensitize you to the need to check the unit cost labels
to determine if you are really getting a bargain.
There are several units in the market that can be analyzed.
Our main thrust in this course is the consumer. However, we
will also need to analyze our own firm’s strengths and
weaknesses and those of competing firms. Suppose, for
example, that we make a product aimed at older consumers, a
growing segment. A competing firm that targets babies, a
shrinking market, is likely to consider repositioning toward our
market. To assess a competing firm’s potential threat, we need
to examine its assets (e.g., technology, patents, market
knowledge, awareness of its brands) against pressures it faces
from the market. Finally, we need to assess conditions (the
marketing environment). For example, although we may have
developed a product that offers great appeal for consumers, a
recession may cut demand dramatically.
India is basically an agricultural country. Agriculture
occupies the most important place in her economy. India is
known as land of farmers as it provides livelihood to above
65% of its population. When India attained independence, the
country did not manufacture any tractor or any farm
equipment. Indian farmers relied largely upon human and
animal equipment such as hand tools, wooden ploughs, bullock
carts etc for agriculture production. With the population boom,
the pressure on agriculture land increases; thus, on increasing
crop yield. Green revolution was the first step in this direction.
This growing emphasis on increase in production lead the
Indian farmer to adopt mechanization to prepare the land for
cultivation. This started a trend to adopt the TRACTOR.
The word “TRACTOR” derives its origin form the word
TRACTION MOTOR. It is a self propelled machine, used either
for pulling or pushing loads or for stationary belt work. It is a
versatile machine that can be used for not only seed bed
preparation, inter culture operation, pre-harvest and post-
harvest operations like plowing, leveling, spraying, threshing,
winnowing and transportation etc. but also for such diverse
operations as irrigation, running generator sets, compressors
and light earth moving machines.
Tractors are mainly used in the following fields of application:
Farming
Transportation
Material handling
A tractor is a critical tool in farm application. A 20 HP tractor
can be replace about 2000 labourers. Tractor has a critical
role in increasing agricultural productivity. The vehicle is also
used for material handeling in large factories and a tractor –
tailor combination is also used as a passenger/commercial
vehicle in rural and semi urban area.
Indian tractor market is dominated by low price, no frills,
rugged, versatile and low to medium powered tractors.
Tractor prices in India are aboiut 1/4th of the international
prices for similar powered tractors. Currently there are seven
majors players controlling 97% of the market. Mahindra and
Mahindra emerged as the leader during the last 4-5 years. A
few international players like New Holland, John Deere and
Same have also set up facilities in India but these players
pose little treat to the existing players who enjoy advantages
of established distribution/service network and string brand
equity.
CRITICAL PARAMETER FOR GROWTH OF TRACTORS
INDUSTRY
Agriculture Credit
Nearly 90-95% tractors are purchased with the help of bank
credit. It plays an important role in determining the demand
for tractors.
Pricing of Tractors
The financial inability of the Indian farmers makes the pricing
a critical parameter. Companies that managed to keep their
cost low are the ones that managed to survive during the
recession period.
Monsoon and Crop Price
The farmer has to pay say 15% of the total price of tractor, in
cash, at the booking stage, consequently, of the farmer is
faced with bad monsoon and low crop price,he will not in the
position to make the initial payments.
Government Policies
To enable farmer to purchase a tractor against these oods,
the government introduced subsidies in this sector.during the
union budget 1994-95 the government exempted excise on
small HP tractors i.e 1800cc.
Soil Conditions
Small tractors are used in areas with soft soil and large
tractors in areas with hard soil. For instance, where the soil is
sandy, blackor alluvial, the tractors will ideally be over 30 HP.
In areas where soil is caly, redor silt, the tractors are likely to
be below 30 HP. Hence in states such as Rajasthan, Gujrat,
Maharastra and West Bengal there is more demand for
tractors of over 30 HP.
Land Holding Size
The size of land holding influences the size of tractors used.
There is a distinct shift towards medium-sized farms which
suggests that demand will be stronger for medium sized
tractors. In future, a shift towards largers land holdings is
envisaged, which also signals a partial shift towards higher
HP tractors (>45 HP).
Imports
The industry has managed to reduce its dependence on
imports as many players have in degenized their inputs,
which were earlier inputs, which were earlier imports.
REGIONAL SALES TRENDS
Tractor sales have traditionally been skewed in favour of
certain states, arising largely from their earlier adoption of
modernized agricultural practices. During the 1970’s tractor
sales in Punjab, Haryana and UP were driven by the green
revolution and the use HYV seeds. By the early 1980’s these
three states, with only 21% of India’s GCA, accounted for 2/3
of national tractor sales. The current penetration level of 25
tractors per thousand hectares of GCA in these states
compares favourably with the world average.
The high penetration levels in the traditionally high growth
states has meant that future growth prospects are limited.
Over the last four years, the contribution of these states to
total tractor sales has fallen from 53% in 1996 to 41% in
2000. At the same time, new states such as MP, Gujrat,
Maharashtra and TN have recorded strong growth and
spurred tractors sales. The contribution of these four states to
total tractor sales has increased from 24% in 1998 to 35% in
2002.
COSTS AND MARGINS
Raw materials typically constitute about 72% of the tractors
selling price according to the level of outsourcing. Wages
account for 6%. Capital expenditure required on a recurring
basis is low because of the simple technology needed for
tractor engines, straightforward assembly lines and limited
technological developments. The machinery required remains
simple.
No major technological changes are foreseen on the
equipment side and we expect the cost structure to remain.
Increases in the cost of raw materials are expected to be
passed on to the end user, ensuring margins are maintained.
Economics of scale and cost control will remain the keys to
continued profitability and growth, as price hikes have always
been marginally lower than the increase in grain procurement
prices. The industry has to grant to the dealers with
exception of PTL, which collects payment on delivery.
Exports
Exports have strong potential and several Indian tractors are
sold in the US, Europe and Africa. The large export potential
can be cater to only when the more lucrative domestic
markets demands have been satisfied. However, the exports
are very small percentage of the output.
DEMAND-SUPPLY OUTLOOK
It is estimated that potential tractor demand at 4.9 million
tractors is three times the current tractor population. This
leads to the belief that tractor sales in India have long way to
go before reaching saturation. Tractor demand will grow at a
steady 8-10% through to 2007, driven by the low penetration
levels, adoption of modern farming techniques, shift to cash
crops. Favourable govt. policies and emerging replacement
demand as the previous demand surge tool place about 15
years ago, the average life span of tractor.
ENTRY BARRIERS
As Indian tractor market is one of the fastest growing markets
in world, global tractor companies are targeting this market
to fuel their future growth plans. These global major will face
formidable entry barriers. These include:
1. Lower cost of capital for Indian Companies.
2. Extensive distribution and after sales services network
of Indian manufacturers.
3. Brand loyalty.
4. Wide range of models is needed in Indian market.
TECHNOLOGY
The tractor industry in India has acquired modern technology
as per the report on perspective for tractor industry prepared
by the Ministry of Industry “The technology gap between India
and International tractors is relatively smaller than that
existing in four wheeler automobile sector. This is largely due
to the greater competition and relatively newer foreign
collaboration in the industry”.
The establishment of in house R & D facilities in the tractor
industry has greatly helped in this direction.
Most of the manufacturers have entered into technical
collaboration with world renowned companies in the field. The
absorption of foreign technology in gew of the Indian models is
more or less complete.
Important elements of a tractor upon which the efficiency and
utility depends are:
(1) Engine
(2) Transmission system (consisting of clutch, gear box, rear
axle).
(3) Hydraulic system and linkage for control of implements.
(4) Power take off (PTO), shaft and draw bar.
Design, manufacture, assembly and testing of these element /
system form the core of tractors technology. Since these are
critical to the performance of tractors, all tractor
manufacturers provide facilities for their indigenous
production.
EICHER TRACTOR LIMITED
In 1960, Eicher Tractors was promoted by Eicher Goodearth, a
pioneer in the manufacture of agricultural tractors.
Incorporated as Eicher Diesels Pvt. Ltd., it connected
operations in 1983.
In Jan’86, the company name was changed to Eicher Tractors.
Initially manufacturing tractors in the 25HP range only, it later
went on to produce 35-HP tractors (investing Rs. 30.28 cr.) and
50 HP tractors (through a group company).
Under a re-organisation plan, two wholly-owned subsidiaries of
Eicher Goodearth – Eicher Farm Machinery and Continental
Auto Ancillary (manufacturing tractors and diesel engines)—
were merged with the company effectively from 1 July, 85,
when the marketing division of Eicher Goodearth, too, was
transferred to the company.
The company acquired a gear manufacturing unit in 1992 with
the amalgamation of Ramon & Demm, a BIFR company.
Copol Farm Equipment, an associate company, has been
proposed to be merged with the company.
Other companies promoted by Eicher Tractors jointly with
associate companies are Eicher Span Financial Services, Eicher
Consultancy Services and Eicher Agrotech.
Eicher Tractors, in a bid to shore up its bottom line further, has
introduced two new specific tractors. The company also
launched the upgraded version of 30 HP Super-DI (direct
injection) for the South Indian markets.
Eicher also has increased the warranty period of the multi-
cyelinder tractors for two years of 2500 hours. The above
moves are aimed to exploit the present growing trend in the
markets, a senior official told THE FINANCIAL EXPRESS
The company has introduced a 30HP peddling special with
extra heavy clutch, heavy duty gear box specifically for coastal
districts and 42 hp three-cyelinder, 120 kg lift capacity tractor
for heavy duty purpose, the official said.
This is the first time the company is targeting coastal areas in
southern states with a pedding special, which is being
dominated by Mahindra & Mahindra and others, the official
said.
ESCORTS TRACTORS LTD.
Tractors (ETL) commenced manufacture on ford 3000 tractors
in technical and financial collaboration with Ford. ETL, so far,
has been manufacturing tractors of higher HP.
ETL’s market share in the 41-50 hp tractor segment is more
than 50% and it commands about 11% of the total industry
volume.
In Feb.’ 91, ETL came out with a public-cum-rights issue of
PCDs aggregating Rs. 40.84 cr., to finance the expansion of its
capacity from 11000 to 21500.
The company tapped the capital market again in No. ’93 with a
rights issue of NCDs with detachable warrants to finance its Rs.
70.75 cr. Modernization and Rs. 15.3 cr. Expansion, as well as
to meet working capital requirements )Rs. 17.95 cr.).
The company, now, hopes to expand its capacity from 15500
to 21500 tractors by the end of 1997.
ETL was merged with Escorts with effect from 1 April, 95
subject to approval and confirmation of the Delhi High Court.
The company earned Rs. 1.49 cr. Foreign exchange in 1994-
95. It is the first Indian tractor company to be accredited with
the ISO 9001 certification.
PUNJAB TRACTORS
Punjab tractors (PTL), the third-largest tractor
manufacturer in India, is based in Chandigarh. Central
Mechanical Engineering Research Institute (CMERI) jointly with
Punjab Industrial Development Corporation set up PTL to
commercialise indigenous technology.
The company’s factory in Ropar, Punjab, manufacturers
agricultural tractors, power tillers, agricultural machinery and
implements, forklifts, trucks, and sophisticated engineering
equipment.
The tractors, marketed under the Swaraj brand name,
enjoy a good demand and the company exhibited growth
despite recessionary conditions in the tractor industry between
1992 and 1994.
In 1983-84, PTL entered into a technical collaboration
with Kamatsu Forklifts Company, Japan, to manufacture diesel
and electrical forklifts. It has also entered into a joint venture
agreement with Swaraj Mazda Motor Sumitomo, Japan.
The company has installed capacity totaling 25000 for
tractors , harvesters combines and rice transplanters. PTL has
constantly been setting standards of excellence. PTL share of
the tractor market grew from 15.9 % in 1998-99 to 18.4 % in
1999-2000, while net sale went up by 22.3 % to Rs.981.7 crore
in 2000.
Product design and commercialization have been the two
pillars of strength for Punjab Tractors. The engineering
background of its managers, location advantages and the
company’s vendor programmed enable PTL to contain costs.
The company also outsources 72 % of its components.
PTL, however, faces challenges from new entrants like
New Holland of the UK, John Deere of US and SAME of Italy.
Worse, these new players are attacking PTL’s bastion- the 31-
40 hp segment- that accounts for about 61 % of the market.
Nevertheless, PTL seems undaunted by these developments
and challenges, and ploughs on the ahead stolidly.
TRACTOR INDUSTRY
History:
India is the world’s third largest user/manufacturer of
tractors. The Indian tractor industry is the population of 2.7
million. At seven tractors per thousand hectares of gross
cropped area (GCA), India’s tractor density is low as
compared with the international average of 28 tractors per
thousand hectares of GCA. Further, the average power of
Indian tractor of 20-40 HP is far lower then the global
standard of 80-100 HP. While India has 12% of the world’s
arable land, its tractor forms only 3% of the world tractor
population. While the global tractor industry matured a
couple of decades back, the Indian tractor industry has been
recording healthy growth on the back of adoption of modern
agriculture practices and favourable government policies.
This is reflected in high p[roportion of annual sales to the
total outstanding tractor population.
Evolution:
India’s tractor industry growth came in three distinct phases:
The First Phase
The decade of 60’s India saw green revolution resulting in
increase in both Production and productivity. With the parallel
emphasis on industrialization, the birth of Indian tractor
industry tool place in 1950-60 when the imports were
restricted and 5 tractor manufacturing units set up in the
private sector, all with foreign collaboration. Total indigenous
production of tractors by 1965 was just 6000.
With the successful introduction and acceptance of the high
yielding seeds, however there was a sudden up surage in the
demand for tractors after 1967 and demand started
multiplying at an annual rate of nearly 50% (1967: 18,000,
1970: 33,000). A natural consequent of this sharp upsurge
and consequent shortage was heavy pricing premium on
tractor? Recognizing the situation, import of tractor. Into the
country was liberalized and over and above the domestic
production of 20,000 in 1970, 13,000 tractors were imported
THE SECOND PHASE
Since the phase of indigenousisation of the five tractors
manufacturing units already set up was far below
expectation, the government decides to diligence the tractors
industry in 1968 and invited new entrepreneurs. Seeing the
sharply growing demand. Tractor industry became the most
sought after industry in the country and as many as 18 fresh
entrants approached the government for setting up
manufacture. The interest of large majority, however, lay in
quick profit through sale of imported tractor. Never the less 6
new manufactures did enter the tractor industry, four in
private sector and two in the government. Combined output
of 11untis has risen to 32,000 by 1976.
THE MATURE YEARS:
With the entry of new units in 1970 and increasing
government pressure towards indigenousisation picked up
substantially after 1970 and by 1978 almost all the tractors
manufactured were indigenous. A fillip to indigenousisation
was also given by the overall industrialization of the country.
When a large number of Ancillary manufacturers had also
established themselves themselves and were in apposition to
supply a wide variety of components to the tractor industry.
The sharp liberalization of imports in 1970 and had given the
nascent Indian tractors industry a substantial setback in
1970-73, when low cost import particularly from east
European countries far more attractive.
Recognizing that such was not intention, the government
decided to ban imports in 1973. Banning of imports and
increased competition let now only growth of local production
but also spread pace of indigenousation. While domestic
demand was growing sharply from 1975 onwards (compound
growth rate of 18%), tractor industry suffered another major
setback in 1982 when due to severe credit restriction by the
government. Bank credit for retail purchase of tractors by
farmer were drastically curtailed and demand fell sharply. But
after the 1987 the situation again changed and the demand
of tractors picked pace because of the priority given to the
agriculture side.
While there is little doubt over the potential of the sector in
the country, government agencies and policymakers are also
trying their best to convert this potential demand into an
actual one. On the financing front, the interest rates have
come down from 12%-16% range to a much more affordable
11.5%. Also, apart from district co-operative banks,
commercial banks and private sector banks have started
offering credit to this sector.
On account of the above factors, it is being felt that barring a
few short-term blips, the long term prospects of the industry
look good and the annual demand for tractors is expected to
touch the 2.7-2.9 lakh per year mark by FY07 from the
current 1.7 lakh per year levels. But not all tractor stocks are
attractive for retail investors even with a three-year
perspective. To that extent, caution has to be exercised.
Tractor sales in India surged 49.7 percent in the first quarter
of 2004-05 (April-March) due to good rabi crop production
and availability of cheap loans. Sales rose to 58,449 units
during April-June from 39,045 units a year ago, according to
data released by Tractor Manufacturers Association.
Tractor sales in 204-05 are projected to grow by 16% to
220,000 units from 190,000 units last year.
The base was also low last year due to bad sentiments as
there was a poor kharif and rabi crop after the drought in
2002. In April-June, sales of market leader Mahindra and
Mahindra Ltd. jumped 60% to 16,052 units, while that of
Escorts Ltd. grew 35% to 8,313 units.
Sales of Punjab Tractors Ltd. rose 40% to 7,419 units and that
Eicher Ltd. climbed 46% to 4,190 units. Tractors and Farm
Equipment Ltd. clocked a 53% growth to 8,245 units, while
that of Bajaj Tempo Ltd. rose 42% to 910 units.
HMT Ltd. and L&T-John Deere Pvt. Ltd. recorded a 28.4% and
80% rise to 1,541 and 3,274 units, respectively. The growth
in the July-September quarter should be around 15% as the
second quarter is never great.
In the second half (October-March) of this fiscal, we expect
sales to be 8% more than the previous year, as the monsoons
had got delayed and there was a good growth last year which
had increased the base.
India is the world’s largest tractor market, followed by the US
and China. The local market comprise 12 manufacturers,
including foreign players like John Deere, New Holland
Tractors and SAME DEUTZ FAHR-INDIA.
CHAPTER-2
REVIEW OF LITERATURE AND PROBLEM STATEMENT
K.K. Jain1, A.K. Shrivastava and C.R. Mehta (2006)
Tractor seat is one of the important component / assembly as
far as the human machine system and comfort of tractor
operator are concerned .With this in view, a field survey and
laboratory study were conducted of selected popular tractors
and tractor seats, respectively, with particular reference to
seating dimensions. Dimensions for seat pan and backrest
were measured and analyzed, according to BIS
recommendations. The results highlighted that seat pan width
was found 10.9% less, seat height was found 15.3% in excess,
no vertical adjustments and backrest width was also found
20.4% less. This may cause discomfort for smaller as well as
higher percentile tractor operators. Based upon the design of
mounting arrangement of different tractor seats – a common
device i.e. seat base plate was developed. This plate may
serve as a base for providing isolators for vibration
attenuation. Also, this arrangement may be quite useful in
testing of different tractor seats, under the constraints in
availability of different makes of tractors at a time for
experimental study or testing work. The study also highlighted
that present tractor seats need minor modifications /
improvements in seating dimensions as per BIS
recommendations. The development of a common seat base
plate may prove to be a step forward in the direction of long
awaited tractor standardization. The information thus obtained
can be utilized in seat design, work place lay out as well as
adapted by agriculture engineers for better work environment.
Rajesh Patel, Adarsh Kumar and Dinesh Mohan (2000)
The design of tractors manufactured in low-income countries
like India has not changed much in the past two decades,
especially from an ergonomic point of view. Moreover, in these
countries tractors are used for transportation purposes in
addition to farming operations. Therefore, the design criteria
for these tractors need to be different from those in high-
income countries. This paper describes the development of an
ergonomic facility for improvement of tractor design. An
ergonomic evaluation facility has been developed consisting of
a work place envelope for the Indian population, a layout
measuring device and an ergonomic rig. This facility can be
used for comparative evaluation of the display and control
layouts of different tractors in order to develop an optimum
layout. The ergonomic rig has the facility to simulate the
improved layout for subjective evaluation.
M.R. Dinodia (2007) Concluded of the study that out of 100
people most people have Mahindra Tractor and they believe on
it. This study concludes that most people want to purchase
new tractor. They basically purchase tractor for their farming
work. Out of 100 respondents most of them want to purchase
tractor their own decision. This study show that fuel efficiency
is the major factor that influence the customer to purchase the
tractor.
Problem Statement
India is an Agriculture based country. Most of the
businesses in India depend on agricultural performance in India
and Tractor Industry is playing a major role in assisting
agricultural activities of the farmers. Which company is
providing good services and which one is better for the
farmers. Through which method farmers purchase tractors,
shall be emphasized.
CHAPTER-3RESEARCH METHODOLOGY
The market in search is broken up in the following
categories:
Research Design
Sampling Plan
Research Instrument
Data Collection Method
Analysis and Interpretation
Research Design :
Research design is a specification of method and
procedures for acquiring the information needed. It is a frame
of study that is used as a guideline in collecting and analyzing
data. It help the researcher to conduct the study by ensuring
the economical procedure are employed and probing relevant
problems.
Research design has been divided into the three
following parts :
(ii) Exploratory Research Design
(iii) Descriptive Research Design
(iv) Casual Research Design
(i) Exploratory Research :
Data can be gathered by observation and focus group
research. There are best-suited steps for exploratory
research.
(ii) Descriptive Research:
Descriptive research is done through survey method.
Research companies conduct survey to learn about people
knowledge, beliefs, attitude satisfaction and so on to measure
these magnitude in a general population.
(iii) Casual Research:
Here the judgment are mostly based upon scientific
method and an experimental research. The facts are
examined in laboratory under different scientific methods
and statistical techniques. This is also called the
experimental research.
In the present studies Descriptive research approach
has been adopted. The data has been collected through
survey method.
Research Instrument :
Marketing researcher have choice or have two main
research instruments for collecting Primary Data as
Questionnaire and Mechanical devices.
Questionnaires :
A questionnaire consist a set of question presented to
respon-dents for their answer because of it’s flexibility the
questionnaire is by far the most common instrument used to
collect primary data . Questionnaire needed to be carefully
developed, tested and debugged before these are
administered on a large scale.
Mechanical Instruments :
Mechanical device are used less frequently in research.
These instruments are galvanometers, eye-camera,
audiometer etc. In the present study questionnaire with open
ended questions is selected as a research instrument.
SAMPLE PLAN :
After deciding on the research approach and
instruments the researchers must prepare a sample design.
This calls for three decisions:
(i) Sampling Unit :
Who is to be surveyed (Sampling Unit )? The Sampling
unit define the target population that will be sampled in this
study, we concentrated on farmers at Sirsa. A sample frame
was developed. Under which every one in the target population
has an equal chance of being sampled.
(ii) Sample Size :
How many people should be surveyed ? Here a sample
size of 100 has been considered, which is the best
representative of the total population.
(iii) Sampling Procedure :
How should the respondends be chosen ? (Sampling
Design).To obtain a representative sample, a probability
sample of the population should be drawn. In this survey both
probability and non probability sampling has been adopted.
The consumers are selected by the following method :
Simple Random Sampling
This is the part of probability sampling. In this each
member of population has an equal chance to be get
selected.
Convenience Sampling :
The researcher select the most accessible population
member from which to obtain information
Judgment Sampling :
The researcher uses judgment to select population
members who are good prospects for accurate information.
Cluster Sampling :
The population is divided into mutually exclusive
group(such as city zone) and the researcher draws a sample
of the group for interview.
SOURCES OF DATA :
After identifying and defining research problem,
determining specific information required to solve the
problem, the researcher look for the type & sources of data
which may yield the desired result for the stated objectives.
The sources of data are varied, which depend upon the
nature of study. Data can be distinguished into :-
(i) Primary Data
(ii) Secondary Data
Primary Data :
Primary data are those which are collected afresh and
for the first time and thus happens to be original in
characters. Primary data refer to information that is
generated to meet specific requirements of investigation at
hand. The primary data are classified as :
- Observation
- Interview
One of the most popular and widely used techniques of
data collection used in field survey in the questionnaire of
schedule.
A questionnaire is a form containing a series of question
and providing space for their replies to be filled in by the
respondent himself.
There are two type of questionnaire viz.
Structured Questionnaire
Unstructured Questionnaire
Structured Questionnaire are those, in which the
question to be asked from the respondents and the
instructions to be followed during the interviews are very
precisely stated in advance.
Unstructured Questionnaire are those, which specify
only the broad areas of subject and not the form or sequence
of questions.
Schedule is the name given to a set of questions,
which are asked & filled in by an interviewer in a face to face
situation with another person. A schedule is therefore just the
same as questionnaire as far as the set of questions is
concerned. Since the investigator himself fills schedule
himself it is more convenient in field handling. In the present
research the data is collected through Schedule consisting
structured questionnaire.
In this the target responds are farmers at Sirsa district.
Secondary Data :
The secondary data relate to the information obtained
from various sources which have already taken efforts of
gathering, assimilating, classifying and presenting them.Such
data may provide some kind sparks, fillers and supportive
evidences to the study on hand. The likely source of
secondary information may be Company Record, Competition
Files, Research Agency Reports, Trade Journals,
Newspapers / General Magazines, Latest books and Research
papers, Trade Association and in house Publications,
Government Publication & Departmental Statistical.
All the records that have been used for the present
study have been acknowledged in the Bibliography section of
the report.
Objective of Study
For the purpose of completion of the project Sirsa area was
chosen in the state of Haryana. This district is rich in terms of
economic growth, rural income and human development. So
generalization based on the study can be made for whole of
population of the state. The objectives of the study are as
follows:-
To know about the important factors which affect the
tractor purchase.
To know the effectiveness of advertisement in tractor
purchase.
Effect of reference group on tractor purchase.
To analyze the consumer behavior of farmers towards the
tractor buying
Limitations of the study
1. The sample size is not the representative of the
population under consideration.
2. The time to go for such type of complete study was not
enough.
3. The information provided by the respondents may be
biased and the communication related problem and
avoidance towards filling of questionnaire might affect
the results.
4. The money related resources are always not enough.
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
1. Which tractor do you have?
Eicher 32
Hindustan 11
HTM 34
Any other 23
Interpretation :
Out of the 100 respondents 34 respondents were having
HTM tractor, followed by 11 respondents having Hindustan
and 32 respondents with Eicher Tractor however, 23
respondents were having other companies tractors.
2. Which factor compels you to buy this tractor?
Advertisement 44
Fame 25
Quality 19
Any other 12
Interpretation:
Out of the 100 respondents 44 respondents were
influenced by HTM advertisement, followed by 25
respondents by fame and 19 respondents by quality
however, 12 respondents were influenced by other factors.
3. From how many years you are using tractor?
Less than one year 32
1 to 3 years 44
More than three years 24
Interpretation:
Out of the 100 respondents 44 respondents were having
tractor between 1 to 3 years, followed by 32 respondents by
having less than 1 years and 24 respondents more than 3
years
4. Have you purchased the brand new or the second hand?
Cash 28
By Loan 72
Interpretation:
Out of the 100 respondents 72 respondents admitted that
they purchased their tractor with loan from the bank, on the
other hand rest of the respondents purchased with their
own funds.
5. What is the main purpose of its purchase?
Farming 71
Transportation 24
Other purpose 5
Interpretation:
Out of the 100 respondents 71 respondents admitted that
they purchased their tractor for farming purpose, followed
by 24 respondents who purchased for transportation
purpose, however, only 5 respondents had their own
reasons for this purchase.
7. Which source of loan you use?
Private loan 3
Bank loan 61
Co-operative loan 8
Interpretation:
Out of the 72 respondents who purchased the tractor
with loan 61 respondents obtyained loan from the bank
however, 8 respondetns purchased their tractor through
loan from cooperative societies and 3 respondents have
arranged private lending of money.
8. Who influence you to buy this tractor?
Dealer 6
Family/Friend 22
Own 70
Any other 2
Interpretation:
Out of the 100 respondents who purchased the tractor
admitted that they purchase tractor with their own idea,
however, 22 were motivated by their family/friend, 6 were
motivated by dealer and 2 from other sources.
9. Do you received any complaint regarding your brand?
Yes 14
No 86
Interpretation:
Out of the 100 respondents who purchased the tractor 14
admitted that they received some complaint in their brand,
however, 86 respondents did not receive any complaint
10. Whether your complaint was resolved?
Yes 8
No 6
Interpretation:
Out of the 14 respondents who received any complaint in
their brand, 8 admitted that their complaint was resolved by
the company, however, 6 respondents did not get their
complaint rectified.
11. Are you satisfied with the services of your dealer ?
Yes 82
No 18
Interpretation:
Out of the 100 respondents 82 respondents were
satisfied with the services rendered by their dealer,
however, 18 respondents were not satisfied with the
seirvices of their dealer and were having complaint for
them.
12. Which factor do you consider while purchase of this
tractor?
Price 29
Fuel efficiency 24
Company goodwill 35
Any other 12
Interpretation:
Out of the 100 respondents 35 respondents were
bewitched by the company's goodwill, 29 respondents go
for price, 24 respondents look fuel efficiency and 12
respondents see other characteristics.
13. If exchange offer is provided, would you change
tractor with new one?
Yes 17
No 83
Interpretation:
Out of the 100 respondents 83 respondents flatly
declined the idea of exchange offer if being offered to them,
however 17 respondents were happy if such scheme is
provided to them.
14. Where you consider your tractor in monetary
terms?
Too expensive 11
Expensive 44
Economical 45
Interpretation:
Out of the 100 respondents 45 respondents consider
their tractor economical; however 44 respondents consider
their tractor expensive. On the other hand 11 respondents
consider it too expensive.
15. Any suggestion for your company
The company should go for more power by keeping the
fuel efficiency in mind.
Power braking and power handling should be there in the
new models of the tractor for better control.
Companies tractor should concentrate on balance of front
wheel
CHAPTER-5
FINDINGS AND SUGGESTIONS
Findings
Out of the 100 respondents 34 respondents were having
HTM tractor, followed by 11 respondents having Hindustan
and 32 respondents with Eicher Tractor however, 23
respondents were having other companies tractors.
Out of the 100 respondents 44 respondents were influenced
by HTM advertisement, followed by 25 respondents by fame
and 19 respondents by quality however, 12 respondents
were influenced by other factors.
Out of the 100 respondents 44 respondents were having
tractor between 1 to 3 years, followed by 32 respondents by
having less than 1 years and 24 respondents more than 3
years
Out of the 100 respondents 72 respondents admitted that
they purchased their tractor with loan from the bank, on the
other hand rest of the respondents purchased with their
own funds.
Out of the 72 respondents who purchased the tractor with
loan 61 respondents obtyained loan from the bank however,
8 respondetns purchased their tractor through loan from
cooperative societies and 3 respondents have arranged
private lending of money.
Out of the 100 respondents who purchased the tractor
admitted that they purchase tractor with their own idea,
however, 22 were motivated by their family/friend, 6 were
motivated by dealer and 2 from other sources.
Out of the 100 respondents who purchased the tractor 14
admitted that they received some complaint in their brand,
however, 86 respondents did not receive any complaint
Out of the 14 respondents who received any complaint in
their brand, 8 admitted that their complaint was resolved by
the company, however, 6 respondents did not get their
complaint rectified.
Out of the 100 respondents 35 respondents were bewitched
by the company's goodwill, 29 respondents go for price, 24
respondents look fuel efficiency and 12 respondents see
other characteristics.
Out of the 100 respondents 45 respondents consider their
tractor economical; however 44 respondents consider their
tractor expensive. On the other hand 11 respondents
consider it too expensive.
Suggestions
The company should go for more power by keeping the
fuel efficiency in mind.
Power braking and power handling should be there in the
new models of the tractor for better control.
More and effective advertisement should be given
especially in TV and News Paper
Companies tractor should concentrate on balance of front
wheel
Bibliography
Kotlar & Armstrong, Philip & Gary (March 2001),
Principles of Marketing, 9th edition, Prentice Hall of
India Pvt. Ltd. , New Delhi.
Kothari C.R. (2002), Research Methodology, 2nd
edition Wishwa Prakashan, New Delhi.
www.google.com
www.agroequips.com
Analysis of buying Behavior of Rural Customers
Regarding Tractors
Questionnaire
1. Which tractor do you have?
2. Which factor compels you to buy this tractor?
3. From how many you are using tractor?
___________________________________________________________
4. Have you purchased the brand new or the second hand?
___________________________________________________________
5. What is the main purpose of its purchase?
Farming [ ]
Transportation [ ]
Other Business Purpose (Please specify)
6. What is the mode of purchase?
Cash [ ] Loan [ ]
Both [ ]
.7. Which source of loan you use?
Private loan [ ] Bank loan [ ]
Co-operative loan [ ] Any other
[ ]
7. Who influence you to buy this tractor?
Dealer [ ] Friend [ ]
Family [ ] Own [ ]
Relative [ ] Any other [ ]
8. Which media are you most exposed?
Magazine [ ] News Paper [ ]
Radio [ ] TV [ ]
Any other [ ]
9. Do you see advertisement?
Yes [ ] No [ ]
10. From where you got the information about the tractor?
Magazine [ ] News paper [ ]
Radio [ ] TV [ ]
Any other [ ]
11. Which factor do you consider while purchase of this
tractor?
Price [ ] Power [ ]
Fuel efficiency [ ] Handling [ ]
Company goodwill [ ] Finance Schemes [ ]
Relationship with dealer [ ]
12 Rank your dealer’s service (out of five)
_________________________________________________________
13 If exchange offer is provided, would you change tractor
with new one?
Yes [ ] No [ ]
14. Where you consider your tractor in monetary terms?
Too expensive [ ] Expensive [ ] Economical [ ]
15. Any Suggestions
. …………………………