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PROJECT REPORT

ONRURAL CONSUMER BEHAVIOUR TOWARDS THE

FARMTRAC TRACTORS, BATHINDA(PUNJAB)

SUBMITTED BY:

Lakhdeep Singh

MBA (IC) 8TH

SEM

Roll No. 418

PUNJABI UNIVERSITY SCHOOL OF BUSINESS STUDIES

GURU KASHI CAMPUS

TALWANDI SABO (BATHINDA)

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PREFACE

The thrust of this research report is to evaluate the marketing of FARMTRAC Tractors in

rural areas.

To embark on this task, the research focused on rural consumer and its satisfaction

regarding Tractors.

A total of 100 consumers from rural areas of Bathinda surveyed using structured

questionnaire. The results show the respected results associated with product. Details of the

findings and their implications were discussed.

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EXECUTIVE SUMMARY

As commercialization of agriculture grew in intensity in the mid to late 1800s the British Raj and

the local legislatures and provinces began investing in agricultural development through support

and establishment agricultural research farms and colleges and large scale irrigation schemes yet

the level of mechanization was low at the time of independence in 1947. The socialist oriented

five year plans of the 1950s and 60s aggressively promoted rural mechanization via joint

ventures and tie-ups between local industrialists and international tractor manufacturers. Despite

this aggressiveness the first three decades after independence local production of 4-wheel

tractors grew slowly. Yet, by the late 1980s tractor production was nearly 140,000 units per year

and by the late 1990s with production approaching 270,000 per year, India over-took the United

States as the world's largest producer of four-wheel tractors with over 16 national and 4 multi-

national corporations producing tractors today. Despite these impressive numbers FAO statistics

estimate that of total agricultural area in India, less than 50% is under mechanized land

preparation, indicating large opportunities still exist for agricultural mechanization

1945 to 1960

War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid

1940's. In 1947 central and state tractor organizations were set up to develop and promote the

supply and use of tractors in agriculture and up to 1960, the demand was met entirely through

imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.

1971 to 1980

Six new manufacturers were established during this period although three companies (Kirloskar

Tractors, Harsha Tractors and Pittie Tractors) did not survive. Escorts Ltd. began local

manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production

climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Credit facilities for farmers

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continued to improve and the tractor market expanded rapidly with the total in use passing the

half million mark by 1980.

1981 to 1990

A further five manufacturers began production during this period but only one of these survived

in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985

and reached 140,000 in 1990 when the total in use was about 1.2 million. Then India - a net

importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa.

1991 to 1997

Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in

India. By 1997 annual production exceeded 255,000 units and the national tractor population hadpassed the two million mark. India now emerged as one of the world leaders in wheeled tractor

production.

1999 to Present

Facing market saturation in the traditional markets of the north west (Punjab, Haryana, eastern

Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000.

Manufacturers scrambled to push into eastern and southern India markets in an attempt to reverse

the decline, and began exploring the potential for overseas markets. Sales remained in a slump,

and added to the market saturation problems also came increased problems of "prestige" loan

defaults, where farmers who were not financially able took tractors in moves to increase their

families prestige. There are also reported increased misuse of these loans for buying either

lifestyle goods, or for social functions. Government and private banks have both tightened their

lending for this sector adding to the industry and farmers woes. By 2004 a slight up tick in sales

once again due to stronger and national and to some extent international markets. But by 2006

sales once again were down to 216,000 and now in 2007-08 have slid further to just over

200,000.

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PROJECT UNDERTAKEN BY ME

The project studied by me in Indian Tractor Company, Bathinda was Rural

Consumers Behaviour Towards Farmtrac Tractors commenced at Indian Tractor Company,

Bathinda It helps to make aware company regarding the various aspects of brand preference

performed at regular basis to cement.

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HOW IT WAS UNDERTAKEN

A survey was conducted by me among the Rural Consumers of Tractors in Bathinda.

During the survey I tried my best that more and more questionnaire to be filled from the

consumers so that to conclude the results gracefully.

I was also appreciated by the support of the project guide and Managing Director of

I ndian Tractor Company, Bathinda, who guided me the basic fundamentals of Tractors

marketing performed by the company.

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INTRODUCTION

It is common knowledge that FY09 was a difficult year for Indian agriculture industry. The

spectacular growth phase from FY03 to FY08 slowed down and the global agriculture markets

witnessed one of the worst slumps ever. But there have been several lessons and learnings from

this slowdown, which are worth analysing.

Although, majority of these lessons have been on the efficiency and cost management front, one

of the most important learnings on revenue generation has been the need to diversify, both

customers and products, and the growing importance of focus on niche markets.

Rural India is one such niche agriculture market which is generating opportunities and has

helped to insulate players from the recent slowdown. This has been possible because of the

difference between urban and rural lifestyles and consumption patterns.

While agriculture has dominated the Indian rural sector for decades, lately, there has been a shift

towards agricultural services and other sectors. OEMs like Maruti Suzuki and Hero Honda have

performed relatively better than their peers, and a part of this success is attributed to their

successful penetration of the rural market.

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COMPANY HISTORY

1947 - After partition the Registered office of the Company was shifted

from Lahore to New Delhi. The name of the Company was changed from

Escorts (Agents) Pvt. Ltd., to Escorts Ltd. upon its conversion into a

Public company.

1959 - The Company was Incorporated on 21st December, at Lahore. The

Company manufactures motor cycles, tractors, automotive parts,

Railway shock absorbers, agricultural implements, X-rays equipment, heating

elements, etc.

- The Company has been functioning as a representative of well-known

foreign manufacturers like M.A.N. Company of the United States,

Massey Ferguson of the United Kingdom and Canada and several others.

- The Company has an all-round sales and service organisation and

has put up in conjunction with Garden Reach Workshops, Calcutta, a

marine service base for servicing ocean going vessels equipped with M.A.N.

promulsion and auxiliary engines. The Company has a network of

all-India dealers for sale of products manufactured by itself and by

its subsidiaries.

- Capital structure reorganised. Equity and `A' Equity shares

converted into one class of Rs 10 each. 200 Prefshares were

subscribed for. 2,000 Pref. and 17,500 No. of Equity sharesallotted to M/s. Mahle Komm-Ges, West Germany, against supply of machinery

and technical know-how. The remaining shares issued as rights. The new

pref. shares redeemable after 5 years from the date of issue at the Company's option.

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1960 - The Company commenced the manufacture of pistons and established

At Bahadurgarh, near Patiala, in collaboration with Mahle Komm-Ges Bad

Constatt, West Germany.

- The Company undertook a phased expansion of the installed capacity

of pistons from 7,21,000 to 10,80,000 numbers per annum and the

installed capacity of piston pins from 6,60,000 to 9,90,000 numbers per annum.

1962 - The Company commenced commercial production of X-ray equipment,

railway shock absorbers and heating equipments in technical

collaboration with the Westinghouse Trading Co. (Asia) Ltd., New

York, Eheimmetall GmbH, West Germany and Eltra K. G., West Germany

respectively.

1968 - 1,229 Pref. shares in 1968 and 336 Pref. shares in 1969 subscribed

for. In Dec. 1969, 580,608 Bonus Equity shares issued in prop. 1:4.

25,000 9.5% `A' Pref. shares offered to public in Aug.1969

(redeemable on 15-8-1981).

1970 - 580,608 Right Equity shares issued at a premium of Rs 4 per share

in the proportion 1:5.

1973 - The Company undertook to set up a 100% export oriented unit for

the production of X-ray equipment in the Santacruz project area, in

collaboration with Compagnie General de Radiologie who brought over

Westinghouse Manufacturing Company, under the name CGR India Ltd.,

Was incorporated

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1974 - 17,41,824 Bonus Equity shares issued in the proportion 1:2.

1977 - 31,35,283 Bonus Equity shares issued on 31-12-1977 in prop. 3:5.

1978

- The following contracts were secured for execution (i) Farm

implements manufacturing plant, (ii) Bicycle assembly plant and

(iii) Raw material sold to support PVC plant.

1979 - The Company concluded an agreement with Andhra Pradesh Scooters

Ltd., to produce Rajdoot motorcycles in their plants at Hyderabad for

distribution in Southern States. The Company was to undertake, in

due course, production of scooters for Andhra Pradesh Scooters Ltd., for

distribution in Northern States.

1980 - A new tractor model Escort-345 was introduced in the first quarter

of the year.

1990 - The Company privately placed with financial institutions

35,00,000-14% secured redeemable non-convertible debentures of Rs

100 each. The debentures are redeemable in three equal instalments on

the expiry of the 6th, 7th and 8th years from the date of allotment of

the debentures.

1994 - The new products i.e., 3 cylinder engine tractor and a 50cc Moped

were launched.

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1995 - Escorts 40 H.P. and two models of Farmtrac, VIZ 50 and 60 H.P.

tractors were introduced. The Company combined all synagestic

product activities in Escorts group of companies into independent and

autonomous entities.

- Escorts Tractors Ltd. was merged with the company effective 1st

April. The shareholders issued 3 equity shares of the company for

every two equity shares of erstwhile Escorts Tractors Ltd.

Accordingly 227,75,452 No. of equity shares of the company was allotted.

- Escorts JCB Ltd., Escorts Class Ltd., Escorts Automotive Ltd.,

Escorts Herion Ltd., Escorts Communications Ltd., Escorts

1996

- The Company proposed to set up a joint venture company with equity

participation from Mahle GmbH (Germany). Piston manufacturing

activity of the company was proposed to be transferred to the said joint

venture company.

- The Company has decided to form a joint venture to manufacture

shock absorbers. Company is at advanced stage of negotiations with M/s.

COFAP of Brazil.

- Company has decided to Spun off Escorts Hospital & Research Centre

into a seperate corporate entity.

- The Escorts Employees Ancillaries Ltd. manufactures carburettors

presently catering to the needs of Rajdoot motorcycles. More

components like nipples, spokes, etc., were being added with

technical know-how from Japanese manufacturers.

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- 56,56,381 No. of equity shares allotted on conversion of warrants

at a price of Rs 35 per share. 1,24,059 No. of equity shares allotted

on conversion of warrants issued to the shareholders of erstwhile

Escorts Tractors Ltd. at a price of Rs 33.33 per share.

1999 - Escorts Ltd, the second largest tractor manufacturer in the

country, is set to launch its new tractor, Farmtrack 45, in the US next month

after a silent entry in the domestic markets in August last.

- The fall in profits is mainly due to the labour strike which

lasted for 70 days and resulted in production loss.

2000 - The Company has approved the proposal to divest 24 per cent equity

in Escorts Yahmaha Motor Ltd (EYML), a joint venture between Escorts

Ltd and Yamaha Motor Co. (YMC), Japan, manufacturing a wide range of

motorcycles in India for the domestic market and exports.

- The Company has launched Esconet Services Limited. This company is

a 100% subsidiary of Escorts Limited.

- The Company has launched its wheel type crop harvestor.

- ICRA has downgraded the rating assigned to the Rs 75-crore NCD

programme of Escorts Ltd. from `MAA' to `MAA+'. ICRA has retained

the`A1+' assigned to the Rs 75-crore commercial paper programme of EL.

- Yamaha Motor Escorts Ltd. the joint venture between Yamaha Motor

Co. Ltd. of Japan and the Delhi-based Escorts group, has launched a new

100cc four stroke motorcycle (Crux).

- The Company will be launching tractors with higher horse power in

the range of 60hp - Farmtrac 70 - by end of December, in a bid to push

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its market share to over 22 per cent. 2001

- On June 13th Escort withdraws from Yamaha JV. Yamaha set to buy

Out Escorts share in their Indian joint venture, by June 30, Yamaha

India becomes the first 100% subsidiary in Asia for the Japanese

motorcycle company.

- The Rs 3,200-crore, Delhi-based Escorts Group has launched iServ

India Solutions Pvt Ltd, a wholly-owned subsidiary with services to

address the demand for information technology (IT) infrastructure

related corporate solutions.

2002

-Escorts Ltd on July 12, 2002 announced the divestment of its equity

in Escorts JCB Ltd & Escorts Class Ltd in favour of its joint venture

partners, J C Bamford UK and Claas (Germany) respectively.

-Escorts Ltd has entered into an agreement to sell its entire 60%

equity holding in Escorts Class Ltd for a consideration of 13.2

million Euros (approx. Rs.63 crs as per the current exchange rates).

-Escorts Ltd has informed BSE that Mr Mantosh Sondhi, Director of the

Company has expired on October 29, 2002.

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2003 -Mr Jahar Sengupta, Director of the company expires.

-Punjab Agro Industries Corporation signs a Memorandum with Escorts

Ltd to undertake contract farming.

-Escorts successfully implements Oracle e-biz suite to increase the

effeciency.

-The company entered into an agreement with UCO Bank, to provide 100

per cent finance to farmers buying tractors.

-Escorts Ltd sells off its stake in Escorts JCB

2004

-Escorts Boards decides to sell holdings in mobile telecom

subsidiaries to Idea Cellular

-Escorts Ltd has informed that Mr. Anil Nanda has ceased to be

Managing Director of the Company. He will, however, continue to be a

Director and Vice Chairman of the Company.

-Escorts Ltd has tied up with Bank of Baroda, Indo Farm Tractors &

Motors Ltd to beef up agriculture lending

- Anil Nanda, vice-chairman of Escorts and chairman of Goetze, makes

foray into real estate business in which he is investing in his

personal capacity.

2005- NOW

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-Escorts wins .5-m tractor order from Ghana

-Escorts Ltd has acquired its Polish joint venture partner, Farmtrac

Tractors Europe

-Escorts' US subsidiary teams up with SAME Deutz-Fahr Italia

-Escort India is set to manufacture tractors in Bangladesh through a

joint venture with the Nitol-Niloy group.

incorrect information.

The last but the most important point to that survey was carried through Questionnaire and the

Questions were based on perception. Most important is positioning. But there may be certain

aspects not taken into consideration.

are the limitations of the study so that the findings of the study may be understood in their

right perspective.

The result of this research cannot be termed as making a fair representation of the

perception of the population.

Study was confined to the Bathinda city.

Language problem was there as some of the respondents facing problem while filling the

questionnaire in English.

Sample size taken was 100 respondents, the result might have varied had there been a

larger sample size.

It is very much possible

4. COMPANY PROFILE ESCORT ( FARMTRAC)

Farmtrac series from Escorts Ltd. has been the revolution in the Indian farming and

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agriculture sector since its development. The series is a new definition for power and

status which are also the values of this series.

The tractors in this series are featured

with a powerful engine,transmissionchoices,

powerful PTO, effective

braking system, quick response hydraulics and

excellent ergonomics besides many other features.

The Farmtrac brand was created by the Escort Group of India for their tractors. Prior to the

use of the Farmtrac brand, Escorts built tractors for Ford. In 1998, Escorts purchased Long

Agribusiness in the United States and used it to import the Farmtrac line. Farmtrac North

America entered bankruptcy in 2008 and was purchased by Montana Tractors.

http://c/Documents%20and%20Settings/jasvir/Desktop/New%20Folder/Escorts%20Farmtrac,Farmtrac%20Tractor,Farmtrac%2045%20model,Farmtrac%2050.htmhttp://c/Documents%20and%20Settings/jasvir/Desktop/New%20Folder/Escorts%20Farmtrac,Farmtrac%20Tractor,Farmtrac%2045%20model,Farmtrac%2050.htmhttp://c/Documents%20and%20Settings/jasvir/Desktop/New%20Folder/Escorts%20Farmtrac,Farmtrac%20Tractor,Farmtrac%2045%20model,Farmtrac%2050.htmhttp://c/Documents%20and%20Settings/jasvir/Desktop/New%20Folder/Escorts%20Farmtrac,Farmtrac%20Tractor,Farmtrac%2045%20model,Farmtrac%2050.htm

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RURAL VS URBAN MARKETS

Lets look at the various factors which differentiate the rural market from a typical urban market.

First and foremost is the lower level of average income. If one were to segment the entire

population in five equal parts based on average annual income, the highest income strata in rural

earns only half as much as the highest income strata in urban areas. Further, the ratio of earning-

members-to-dependants is comparatively lower in rural areas, which translates into a reduced

disposable income per household.

Rural is characterised by a different-than-urban purchasing pattern.

Maximum expenditure is done around the harvesting season when the farm produce is sold. Onaccount of this seasonal nature of agricultural earnings, the ability of rural consumers to pay back

loans is lower; therefore rural customers would typically prefer to buy without using credit in the

rural market.

Owing to the lower income and even lower disposable surplus, customers prefer products at the

lower spectrum of the portfolio. The need for value-for-money offerings is intense and the brand

does not get any significant premium in contrast with the current urban market where customers

are more brand conscious.

There is also a historical preference towards domestic brands since the current level of awareness

of global products and information pertaining to them is relatively low. Haats and melas, mandis

and word-of-mouth publicity are the usual channels of communication for product promotion in

rural areas, whereas television and the print media are the primary means of advertising in the

urban market.

Rural markets have continued to grow in the last two years when the traditional urban

markets were under the pressure of liquidity crunch, higher finance cost and a weak income

outlook leading to weakening of demand.

But in urban areas tractors are use only commercial purposes not for the agriculture . So , it is

very rare in urban areas that a person purchase a tractor for personal motives.

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RURAL INDIA: AN ATTRACTIVE DESTINATION

Having outlined the differences between urban and rural, some of the reasons why rural segmentis gaining prominence include:

Market Size: The strongest point about the rural market is its huge size. A total population base

of more than 750 million demonstrates its sheer potential.

Growing income levels: In addition to the size, there has been a considerable improvement in the

income levels in rural market. According to estimates, the percentage of households earning less

than $1 was as high as 96 percent in 1985, which is estimated to come down to 29 percent by

2025. Similarly, the percentage of households earning within $2-5 is expected to increase from

one percent in 1985 to 20 percent by 2025.

Among various reasons leading to this increase in the income levels in rural areas, the increase in

Minimum Support Price by the Government has been a major contributor. For instance, price of

wheat has risen to Rs 1,000 per kg in 2007-08 from Rs 630 in 2003-04.

In addition to this, National Rural Employment Guarantee Scheme has also helped uplift the

living standards of people. The scheme guarantees 100 days of employment (in a financial year)

to every rural household that volunteers to participate and has resulted in a rise in minimum

wages in many States, with the average wage rise being around 32 percent.

Credit availability: Among the structural reasons, availability of finance has been an important

contributor for the growing rural demand. Over the years, the Government has taken various

steps to provide rural areas with a strong credit structure. Regional Rural Banks (RRBs) have

become a crucial part of the rural credit structure in India. India currently has around 190 RRBswith more than 14,000 branches. In addition, schemes such as the Kisan Credit Card (KCC) aim

to provide credit support to farmers in rural

areas.

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Infrastructure development: Infrastructure development needs a special mention and is the key to

narrow the urban-rural divide in the country. Currently, 60 percent of the villages are connected

with road networks. As a part of the Eleventh Five Year Plan, the Government plans to construct

130,000 kilometres of new rural roads and has earmarked around 30 percent of the total public

investment for rural infrastructure development. The Pradhan Mantri Gram Sadak Yojana

(PMGSY) aims to connect all villages with a population of 500 and above (250 in the case of

hilly and desert areas) with all-weather roads. The target is to construct 146,000 kilometres of

rural roads and upgrade another 196,000 kilometres.

SUCCESS STORIES

The opportunity is big but so are its challenges. Achieving success in this segment requires

intense research coupled with smart marketing and distribution and of course the right pricing

strategy. Several players are already on the right road to market success.

John Deere has been the most effective player in the industry in tapping the opportunity. It

started with creating a separate marketing division for this market and has launched a special

scheme, called Panchayat scheme, to cover the village Sarpanch (head of local governing body),

teachers in Government institutions, etc. The idea was to make additional sales but moreimportantly, to secure an opinion-maker in its favour, which would henceforth become a brand

ambassador of John Deere for other potential tractors buyers in the villages.

In order to communicate to and attract potential customers, various types of melas (mass events)

were organised. While some events such as the Gramin Mahotsava are conducted round the year,

others are organised near the harvesting season to utilise the cash generated from farm sales.

To maximise the coverage in a cost-effective measure, a full-fledged dealership was not viable.

There was a need to open smaller offices which could have been connected with the primary

dealership and could have channelised the sales leads. John Deere has been able to cover more

than 200 additional cities using such smaller enquiry counters. In addition to above, there have

been initiatives like tying up with ITCs agri-business division, e-Choupal, to market its products

wherein products are being displayed at these counters.

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Escort recently launched a marketing initiative, Escort Utsav, in rural areas of Punjab and

Andhra Pradesh. The initiative is aimed at building Escorts brand visibi lity and creating

awareness about the loans and schemes offered by the company.

WAY FORWARD

While there is clearly a significant market opportunity over the long run, considerable risk

appetite and effort are needed to realise the potential. In conclusion, it takes a lot of effort to put

in place various enablers that are required to convert the challenges in rural markets into

opportunities.

So far, the players have been marketing their lowest-cost product in this market but not one is arural-only product.

Dependency on the monsoon is also very high and the current rainfall deficit may dampen the

rural market demand.

The first five months of FY10 have been very encouraging in terms of sales volume and growth.

There has been a revival of demand in metros and urban area and there is a sense of growing

optimism across all segments. In addition, there are predictions by National Council of Applied

Economic Research (NCAER) according to which growth in agriculture sales in rural markets is

expected to exceed the growth in urban areas in FY10 and that makes it big enough a reason for

players to sharpen their focus on this niche market.

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RURAL CONSUMERS BEHAVIOUR TOWARDS

AGRICULTURE TRACTORS: A STUDY OF BATHINDA

SIGNIFICANCE OF THE STUDY

Significance of the study is to analyse the popularity of large tractors in the Rural areas. Various

large tractors are their in the market like swaraj 855, john deere 5310, farm trac 60, sonalika

750,Mahindra arjun 605 di etc.

We have examine their potential and usage with the views from the consumers.

LIMITATIONS

Nothing is perfect in this mandate world and this study is no exception. Given below are the

limitations of the study so that the findings of the study may be understood in their right

perspective.

The result of this research cannot be termed as making a fair representation of the

perception of the population.

Study was confined to the Bathinda city.

Language problem was there as some of the respondents facing problem while filling the

questionnaire in English.

Sample size taken was 100 respondents, the result might have varied had there been a

larger sample size.

It is very much possible that some of the respondents may Farmtrac series from Escorts Ltd. has

been the revolution in the Indian farming and

agriculture sector since its development. The series is a new definition for power and

status which are also the values of this series.

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5. RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can also

define research as a scientific and systematic search for pertinent information on aspecific topic.

The word research has been derived from French word Researcher means to search.

FRANCIES RUMMER defined Research: It is a careful inquiry or examination to

discover new information or relationship and to expand or verify existing knowledge.

Research is the solution of the problem, whether created or already generated. When

research is done, some new out come, so that the problem (created or generated) to be

solved.

OBJECTIVE

To study the Agriculture Tractors market

To study the Large Tractor market

To study the reason for switching to different model of tractors and the features of large

tractors in rural areas.

RESEARCH DESIGN:

Research Design is the conceptual structure within which research is conducted. It

constitutes the blueprint for collection, measurement and analysis of data. The design

used for carrying out this research is Exploratory, Descriptive and Diagnostic.

DATA TYPE: In this research the type of data collection is

Primary data

Secondary data

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DATA SOURCE: The sources of collection of secondary data are:

Questionnaire

Books

Websites

Magazine

SAMPLING PLAN:

It is very difficult to collect information from every member of a population .As time and

costs are the major limitation that the researcher faces.

A sample of100 was taken the sample size of 100 Rural consumers were selected on the

basis of convenient sampling technique. The individuals were selected in the random

manner to form sample and data were collected from them for the research study.

SAMPLE UNIT: 100 Rural Consumers (FARMTRAC Consumers)

SAMPLE AREA: Bathinda

ANALYSIS AND INTERPRETATION:

Data collection through questionnaire and personnel interview resulted in availability of

the desired information but these were useless until there were analyzed. Various steps

required for this purpose were editing, coding and tabulating. Tabulating refers to

bringing together similar data and compiling them in an accurate and meaningful

manner. The data collected by questionnaire was analyzed, interpreted with the help of

table, bar chart and pie chart.

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6. DATA INTERPRETATION AND ANALYSIS

1. Age Group

Table 1:

20-30 Years 26

30-40 Years 43

40-50 Year 21

50 Above 10

Graph 1:

Interpretation: With the results of the analysis, it is clear that most of the tractor users are from

the age 30-40.

20-30 Years

26%

30-40 Years

43%

40-50 Year

21%

50 Above

10%

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2. Income Group

Table 2:

10000-20000 26

20000-30000 42

30000-40000 21

40000 Above 11

Graph 2:

Interpretation: The main group is the one who has the salary between 20000 and 30000.

10000-20000

26%

20000-30000

42%

30000-40000

21%

40000 Above

11%

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4. Your Educational Background

Table 4:

Matric 44

Higher Secondary 42

Graduate 12

Post Graduate 2

Graph4:

Interpretation: Maximum respondents are matric and higher secondary ones i.e, 44% and 42 %

matric

44%highersecondary

42%

graduate

12%

post

graduate

2%

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5. Which company tractor you have in large tractor segment

Table 5:

MAHINDRA 39

SWARAJ 26

ESCORT 11

FORD 17

JOHN DEERE 4

SONALIKA 3

Graph 5:

MAHINDRA

39%

SWARAJ

26%

ESCORT

11%

FORD

17%

JOHN DEERE

4%

SONALIKA

3%

From the analysis it has been clear that most of the Indian People Segment like

to purchase Mahindra tractors. We have concluded the survey and asked the

question from 100 candidates and 39 responded that they have Mahindra

tractors.

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6. What according to you are the main leader of large tractors?

Table 6:

Mahindra 41

SWARAJ 34

ESCORT 10

FORD 15

Graph 6:

MAHINDRA

41%

SWARAJ

34%

ESCORT

10%

FORD

15%

The main leader of the large tractor segment are Mahindra & Swaraj.

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7. How long you have been operating this tractor?

Table 7:

0-1 Yrs 39

1-3 Yra 32

3-5 Yrs 18

More than 5 Yrs 11

Graph 7:

Interpretation: Out of 100 respondents, 11%of the respondents are operating this tractor for

more than 5 years, 18 % are for 3-5 years, 32% for 1-3 years and the rest 39 % for 1 years.

0-1 Yrs

39%

1-3 Yra

32%

3-5 Yrs

18%

More than 5

Yrs

11%

0-1 Yrs

1-3 Yra

3-5 Yrs

More than 5 Yrs

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8. What is the purpose of using this tractor?

Table 8:

Business 12

Heavy Works 23

farming 62

Family Purpose 3

Graph 8:

Interpretation: Most of the respondents use the tractors for farming purpose that is 62 % ,for

heavy works 23 % and least for family purpose.

Business

12%

Heavy Works

23%Farming

62%

Family Purpose

3%

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9. What are the main information services for choosing the tractors exploring their

features?

`Table 9:

Manufacturer 39

Dealer Website 21

Family and friends 47

Information Website 15

T.V Advertising 49

Print Advertising 22

Tractor Dealers 19

Financial Service Broker. 3

Interpretation:- Most of customers are make their decision through advertisements or

friendsuggestions.

0

10

20

30

40

50Manufacturer

Dealer Website

Family and friends

Information Website

T.V Advertising

Print Advertising

Tractor Dealers

Financial Service Broker.

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CONCLUSION

Large tractor Segment have to provide better facilities like free testing camps and gifts so

as to raise the sales and promotion for rural consumers

Large tractor Segment are launching their new models with variant colours to make the

consumer feel free from the choices of rural consumers.

Being in the market of hype competition tractor companies making brand positioning of

their models. They used to put free test camps and use actors and actresses.

Checking complaints have now become the first priority of the company, for that they

install call centers to rectify those problems of rural consumers.

At present Large tractor Segment sales are high due to their better service providing

factor and rectifying problems.

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SUGGESTIONS

Farmtrac tractors have to come with an idea to launch a low cost large tractors segment

with style and elegant features for rural consumers so that it can reach to each and every

class of the society.

Average or mileage of the Farmtrac tractors is the main criteria for the sale of Diesel

prices are hiking like anything, companies have to provide a technology for better

mileage and less fuel consumption.

The complaints of the Farmtrac tractors should have to be rectified by the companies for

better CRM (Customer Relationship Management).

Farmtrac tractors have to arrange free testing camps in rural consumers to rectify the

problems and efficiency of the large tractor Segment.

If given better facilities and services, the consumer do recommend it to the nears and

dears, so in return it will raise the sale of the FarmtracS tractors.

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BIBLIOGRAPHY

Books and Journals

Batra, S, K & Kazmi, S,H,H ( 2004), Consumer Behaviour- Text and Cases, New

Delhi: Excel Books

Engel, J, F, Blackwell, R, D & Miniard, P, W, (1990), Consumer Behaviour London:

Dryden Press

Papers For You (2006) "E/M/68. To what extent does Advertising affect Consumer

Behaviour?", Available from http://www.coursework4you.co.uk/sprtmrk38.htm

[19/06/2006]

Papers For You (2006) "P/M/551. What influences consumer behaviour?", Available

fromhttp://www.coursework4you.co.uk/sprtmrk38.htm[19/06/2006]

Schiffman , L, G & Kanuk, L, l, (2004), Consumer Behaviour New Jersey: Prentice-

Hall Inc

L ibrary Resources

MSN Encarta

Auto India

AdEx India

AutoExpo, 2009

IndiaInfoline Journals, February, 2009

http://www.coursework4you.co.uk/sprtmrk38.htmhttp://www.coursework4you.co.uk/sprtmrk38.htmhttp://www.coursework4you.co.uk/sprtmrk38.htmhttp://www.coursework4you.co.uk/sprtmrk38.htm

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I nternet Resources

http://auto.indiamart.com/

http://specials.rediff.com/money/2009/mar

http://www.agribusiness.com/Features

http://www.businessworld.in/index.php/Automobile

http://www.businessworld.in/index.php/Automobiles

http://www.business-standard.com/india/news

http://www.merinews.com/catFull.jsp?articleID=141571

http://autos.maxabout.com

http://auto.indiamart.com/http://auto.indiamart.com/http://specials.rediff.com/money/2009/marhttp://specials.rediff.com/money/2009/marhttp://www.agribusiness.com/Featureshttp://www.agribusiness.com/Featureshttp://www.businessworld.in/index.php/Automobilehttp://www.businessworld.in/index.php/Automobilehttp://www.businessworld.in/index.php/Automobileshttp://www.businessworld.in/index.php/Automobileshttp://www.business-standard.com/india/newshttp://www.business-standard.com/india/newshttp://www.merinews.com/catFull.jsp?articleID=141571http://www.merinews.com/catFull.jsp?articleID=141571http://autos.maxabout.com/http://autos.maxabout.com/http://autos.maxabout.com/http://www.merinews.com/catFull.jsp?articleID=141571http://www.business-standard.com/india/newshttp://www.businessworld.in/index.php/Automobileshttp://www.businessworld.in/index.php/Automobilehttp://www.agribusiness.com/Featureshttp://specials.rediff.com/money/2009/marhttp://auto.indiamart.com/

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6. What according to you are the main leader of large tractor segment?

Mahindra Swaraj

Escort Ford

John deere Sonalika

7. How long you have been operating this tractor?

0-1 Yrs 1-3 Yra

3-5 Yrs More than 5 Yrs

8. What is the purpose of using this tractor?

Business Heavy Works

Farming Family Purpose

9. What are the main information services for choosing the large tractors exploring their

features?

Manufacturer Dealer Website

Family and friends Information Website

T.V Advertising Print Advertising

Tractor Dealers Financial Service Broker.

10. What according to you are the main features of large tractor segment?

Design Performance

Safety Features Variants & Colour

Fuel Efficient

THANK YOU