Market Analysis of Tractor Industry in India

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SUMMER TRAINING
REPORT
On
“A Study on Market Analysis of Tractor Industry”
(Escorts)
In partial fulfillment for the Degree of
BACHELOR OF BUSINESS ADMINISTRATION
Under MDU, Rohtak
Session (2023-24)
Under the Guidance of: - Submitted By: -
MRS. CHETNA TUSHAR
Lecturer of BBA Department Class Roll No:-1211271010049
University Roll No: -
Pt.Neki Ram Sharma Government College,
Rohtak

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DECLARATION
I hereby declare that, the project entitled “CONSUMER BUYING
PREFERENCE” assigned to me for the partial fulfillment of BBA degree from
Maharshi Dayanand University, Rohtak. The work is originally completed by me and the
information provided in the study is authentic to the best of my knowledge. This study
has not been submitted to any other institution or university for the award of any other
degree.
(Signature of the candidate)
Tushar

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ACKNOWLEDGEMENT
Gratitude is the hardest of emotions to express and one often does not find adequate
words to convey what one feels and trying to express it"
I am immensely indebted to my project Guide Mrs. Meenakshi (Lecturer) NRS Govt.
College, ROHTAK (Haryana), for her illumining observation, encouraging suggestions
and constructive criticisms, which have helped me in completing this project
successfully.
There are several other people who also deserve much more than a mere
acknowledgement at their exemplary help. I also acknowledge with deep sense of
gratitude and wholehearted help and cooperation intended to me by them.
Tushar

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PREFACE
The project work entitled “MARKET ANALYSIS” is the favorableness
or un- favorableness with which the market views his work. It expresses
the amount of agreement between one’s expectation of the job and the
rewards that the job provides. MARKET ANALYSIS is a part of
Marketing. The nature of one’s environment of job is an important part of
life as MARKET ANALYSIS influences one’s marketing.
MARKET ANALYSIS thus, is the result of various attitudes possessed
by an market. In a narrow sense, these attitudes are related to the job
under condition with such specific factors such as sales, market analysis,
conditions of product, social relation on the job, prompt settlement of
grievances and fair treatment by employer.
However, more comprehensive approach requires that many factors are to
be included before a complete understanding of MARKET ANALYSIS
can be obtained. Such factors as market analysis, competitors, desire and
level of aspiration should be considered.

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TABLE OF CONTENTS
 SUPERVISOR’s CERTIFICATE
 DECLARATION
 ACKNOWLEDEMENT
 PREFACE
Sr.No PARTICULARS Page no.
1. CHAPTER 1
 INTRODUCTION TO THE TOPIC
 COMPANY PROFILE
 OBJECTIVES OF THE STUDY
2. CHAPTER 2
 REVIEW OF LITERATURE
3.
CHAPTER -3
 RESEARCH METHODOLOGY
3. CHAPTER 4
 DATA ANALYSIS AND
INTERPRETATION
4. CHAPTER 5
 FINDING
 CONCLUSION
 SUGGESTION
 LIMITATION
ANNEXURE
 BIBLIOGRAPHY
 QUESTIONAIRE

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Overview of tractor industry
India is the second largest manufacturer of tractors in the world. The Indian tractor
industry closed Financial Year ’05 on a very positive note with 250,000 units registering
a growth of over 30% over previous year. The government’s focus on the agricultural
economy with increased rural Lending ensuring availability of cheap finance led to the
growth. Exports stood at 27,700units in Financial Year ’05.
Tractor industry is categorized on the basis of power delivered by the engine Horse
Power (hp). 30-40 hp tractors primarily used in southern and western regions due to hard
soil conditions dominate Indian market. It is followed by range of 21-30 hp, which finds
its market in soft conditions and well-irrigated northern states. The tractors industry
comprises 14 players, including three MNCs and is led by MAHINDRA&MAHINDRA
Ltd, Tractor and Farm Equipment Ltd and Punjab tractors Ltd. Riding on the back of
normal monsoons and strong rural credit growth, during April-November’05, overall
tractor sales has grown by about 13% over the corresponding period last year, to 186,000
units. Backed by Government’s initiative on rural roads and better connectivity with
major town and cities, increase in area under irrigation, improved agricultural
performance and factors like increment in minimum support price coupled with more
emphasis on agricultural financing (total outlay for agricultural financing, which was Rs
108,500 crore in FY’05, has been increased by 30% FY’06) will keep up the momentum
and industry is likely to achieve 10% growth in the current financial year

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Major players
TAFE
Tractor and Farm Equipment Limited (TAFE),is a unit company of the Amalgamations
Group, one of India’s largest Light Engineering Groups with diverse interests in Diesel
Engines, Automobiles components, Tractors and related farm machinery, Lubricants,
Panel instruments, Hydraulic pumps, Engineering Tools, Storage Batteries, Paints,
Engineering Plastics, Automobiles franchises and Printing apart from interests in
Agribusiness, book selling and publishing. The group’s leadership technology, built on
forgien know how has bee nurtured through indigenous efforts.
TAFE was established in 1961 to manufacture and market a range of Massey Ferguson
tractor and related farm equipment in India. One of the largest tractor manufacturers in
India, TAFE’s vision is to be the first choice of customers in India and to also move
towards a growing presence in the international markers. TAFE has collaboration with
AGCO Corporation, headquartered in Duluth, Georgia which is one of the largest
manufacturers, designers and disbutors of agricultural equipment in the largest world. Its
products are sold in more than 140 countries.

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MAHINDRA & MAHINDRA
FARM EQUIPMENT SECTOR
One of the progressive and dynamic divisions of Mahindra &
Mahindra Ltd., is the Farm Equipment Sector, which was started way back in 1963. The
late 1960's witnessed the beginning of "The Green Revolution" in India. Mahindra &
Mahindra took the lead and responded with launching their new "INTERNATIONAL"
range of modern high performance tractors. In technical and financial collaboration with
International Harvester Co. Ltd., UK, M&M and Voltas set up International Tractor Co.
of India Ltd. in 1963. In 1978, International Tractor Co. of India Ltd. merged with M&M
to be re-christened as Mahindra & Mahindra - Tractor Division, which is renamed as
Mahindra & Mahindra - Farm Equipment Sector after the restructuring in 1994. Farm
Equipment Sector is involved in manufacturing of wide range of tractors & farm
implements to suit the varied needs of Indian as well as overseas farmers.
The Farm Equipment Sector has manufacturing facilities at Kandivli
and Nagpur with the capacity to produce 85,000 tractors per annum. It consists of modern
machine shops, assembly lines and engine manufacturing facilities. The manufacturing
facility at Kandivli is the world's single largest unit of manufacturing tractors under one
roof. The Kandivli plant of Farm Equipment Sector possesses the prestigious
international quality certification ISO-9001, since February 1996. The plant at Nagpur
produces hydraulics units and a wide array of agricultural implements to suit every soil
type and farm operation. In September 1996, production of tractors has started at Nagpur

10
plant and has reached the operational level of 2,000 tractors per month within a period of
two year.
The Nagpur plant has received coveted QS-9000 award in July 1999. Mahindra &
Mahindra Ltd. currently is the market leader in the Indian tractor industry and the fourth
largest in the world in terms of units sold. It has been the market leader for last 16 years
consecutively in a highly competitive Indian market. Farm Equipment Sector has
continuously increased its market share from 5.2 % in F-1977 to 27.2% in F-1999.
Today, Mahindra & Mahindra carries the goodwill and the trust of over six lakh farmers.
M&M has the widest range of tractors amongst Indian companies.
SONALIKA
Sonalika Group is contributing to green revolution in India Since 1969. Initially it started
with Farm Equipments and Machinery. Brand name of the group products is
"SONALIKA". Market share in Farm Equipments is 80 % in India. Group turnover is
220 Million USD (INR 1000 Crores). Sonalika Group is one of the top five tractor

11
manufacturers in India. Apart from tractors its product line includes multi utility vehicles,
three wheelers, engines, Hydraulic Systems, Casting, Forging, Brake System,
Automotive components manufacturing and various farm equipments and implements.
Sonalika group since the inception has tried to understand customers need to be able to
facilitate them with its value for money products. The company has a state of art
manufacturing facilities, spread in acres, located in the pollution free suburbs of Punjab
and Himachal Pradesh.
Sonalika is also an environmentally responsible corporate citizen and has developed in-
house, the vehicle engines that confirm to Bharat II Norms. It is now in the process of
developing the Bharat III engines for its advanced products. No wonder Sonalika
products have created a niche for themselves not only in India but also in foreign markets
including France, Zimbabwe and many of the South-Asian countries.
ESCORT 335
E
SPECIFICATIONS ESCORT 335 JOSH
FARMTRAC

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50-60 HP
POWERTRAC
40-46 HP Category

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COMPANY PROFILE
ESCORTS LIMITED is among the pioneers of farm mechanization in the country with
its 19 manufacturing plants spread over 6 locations, 24000 employees and a large
network of dealers and distributors. ESCORT LTD. Today rank among the top
engineering organizations in the country.
ESCORTS LTD. Was incorporated on October 17, 1944 at LAHORE (now in Pakistan)
by MR.YUDI NANDA and MR.H.P. NANDA. . After the partition of the country in
1947, the company shifted to and resumed its operations in NEW DELHI. It was
converted into a public limited company on December 21, 1959.
Till 1959, the company principal activities were trading and respecting several leading
overseas manufacturing for the sale of their product in INDIA. The company
progressively entered the field of manufacturing by establishing a series of manufacturing
plants. The ESCORTS group today headed by MR. RAJAN NANDA, ranks among the
country’s leading multi products industrial conglomerates having collaborations with
several global majors. It has a strong presence in the core area of AGRI MACHINERY,
CONSTRUCTIONS, MATERIAL HANDLING EQUIPMENTS, AUTO AND
RAILWAY ANCILLARIES, and TELECOMMUNICATIONS AND FINANCE.
Now with the country’s most modern tractor manufacturing plants and turnover
exceeding $500 MIL, ESCORTS rank among the top conglomerates in the country. The
group manufacturer’s equipment for the core sectors of Agriculture, Transportation and
Construction and has achieved market leadership in each of the product categories. Our
group has earned the trust over the six decades of our existence.

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The Agriculture Machinery Group commenced its manufacturing operations in 1964 in
collaboration with URSUS (Poland). Subsequent collaboration with FORD, UK (1971-
1996) and Class, Germany placed us among the leading manufacturers of Agriculture
Tractors. With a population of over 1 MIL and production capacity unto 72,000 tractors
per annum, Escorts Tractors are among the largest selling tractors in India where every
third tractor is an Escorts brand.
ESCORT LTD. Was among the first companies to set up tractor manufacturing in
INDIA. It had commended the ESCORTS range of tractors in 1964.ESCORTS LTD then
set up a 2- manufacturing unit in 1969-70 to manufacture FORD range of tractor in
INDIA. So far ESCORTS LTD. has sold over 7, 00,000 tractors and every 4 tractor on
the INDIAN road is an ESCORT product.
ESCORT LTD. today has in the stable three very popular brands by the brand name of
ESCORTS, FARMTRAC and POWERTRAC cater to the value added higher horse
power (H.P.) segment of the industry and enjoys a unique position in industry. ESCORTS
brand have a representation in all the H.P. segments. ESCORTS LTD is ranked number
4th
in industry in with 18% share of the market.
The industry is showing a perceptible shifts towards a higher H.P. segment where
ESCORTS has traditionally enjoyed and over whelming presence with a nearly 50%
share of market. ESCORTS is now in the process of consolidating it’s presence in this
segment.
An ESCORT has recently signed a M.O.U. with M/S CARARRO of ITALY for making
transmission, axles and clutches.
The business of ESCORTS LTD. is a complex but the vision is simple. Giving the best to
customer, being respected by the contemporaries and reaching for the performance par
excellence. ESCORTS LTD. firmly believe that it’s best is yet to come and with that
vision it plans to take on the future.

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FIVE DECADES OF
ENGINEERING CHANGES
THE DECADES OF CREATION: 1944-1959
Launch of Escorts Agents Pvt. In Lahore and setting it all up again in Delhi after the
country’s partition. The beginning of and industry legend, with a tractor franchise
followed by India’s first institute of farm mechanization and the company’s first the
industrial venture, Goetze (India) ltd at Patiala, in equity collaboration with Goetze of
Germany.
THE DECADES OF AUTOMATION: 1959-1964
Escorts public full edged manufacturing orientation takes roots with the
commencement of Escorts own brands of tractors and the next major fields of
operation. Motorcycles the company joins with Mahle to produce India’s most
advanced pistons.
THE DECADE OF CONSLIDATION: 1965-1974
The foundation of Ford Escorts alliance for India’s finest tractors, soon to make the group
the largest tractor manufacturer. Escorts employee’s ancillaries Ltd. A unique venture in
industrial democracy
comes in to being Escorts receive FICCI award for outstanding contribution to Indian
Agriculture. The company crosses national boundaries with its first export of 400 tractors

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to Afghanistan won in global tender a triumph of Escort quality and competitiveness.
This was the world’s largest ever commercial airlift of its kind.
THE DECADE OF DIVERSIFICATION: 1975-1984
An Epoch Mabink alliance with JCB for India’s first excavator loader is followed by one
with knows Bremse for Railways brakes. With the Yamaha collaboration, Escorts
become the country’s largest motorcycles manufacturers. Acknowledged leadership in
automotive ancillaries-Mahle piston and Goetze ring.
THE DECADE OF GLOBLIZATION:1985-1995
Escorts in joint ventures with buy back arrangements with class (Harvester Combines)
and Herion (hydraulic values) providing an entry to world market. A tie-up with faur,
powers the company to supremacy in hydraulic mobile cranes escorts flights and IPIC
battle against a corporate raid, the ultimate victory providing the unshakeable confidence
of the company’s small shareholders countrywide.
Escorts Heart Institute commissioned hailed as among Asia’s most advanced. Escorts
turnover crosses Rs.15 Billion. In the sunrise telecom sector alliance with J.S. Telecom a
sosch company, and Hughes Network systems, world leader in Vsat networks.

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THE DECADES AHEAD:1996 ONWORDS
The mission is globalization and the emphasis will be on core sector
investment. Escorts are going in for a global network and for mega projects in the
21st
century.

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MISSION OF THE ESCORTS LIMITED
We must strive to be the strongest and most respected Engineering
Company in the country. We will achieve this by clearly positioning ourselves in
an environment; enhance our brand equity through international quality products,
market leadership, enlarged customer base, better cost controls and pricing
opportunities.
We feel responsible to our employees. We must respect their dignity and
recognize their merit. Each of must uphold the core values of professionalism,
commitment and integrity in keeping with the highest traditions of the company.
As responsible corporate citizen, we must not only encourage civil
improvements, better health and education, but also protect our environment and
natural resources.
Our final responsibility is towards our stockholders. Business must make a
sound profit and thus be investor attractive. We must experiment with new ideas,
new facilities and new products, when we operate on these principles; the
stockholder should realize a fair return.

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SALES / SERVICES / OUTLETS
To ensure the Escorts Shock Absorbers are available in every
corner of the country, they are being distributed through strong and
large dealer network of over 1000 stockiest / dealer with a separate
branch office in four metros of the country & also 10 depots to
monitor the equitable distribution.
To ensure that Escorts Shock Absorbers are available in every part
of country, these are being distributed through large & strong dealer
network of nearly 1000 stockiest / dealer with a separable branch office
in four metros of the country to monitor the equitable distribution.

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ESCORTS IN QUALITY
Escort’s shock absorbers reach the customer through number of
intermediaries whose all effort is to make the quality product which
would give a smooth ride. The inbuilt quality through control gives a
consistent quality.
Supporting this control is the computerized inventory / financial
control. Quality is synonymous with Escorts shock absorbers. The extent
of quality control can be understood from the fact that starting from
component stage till the shock absorber reaches to the customer, it has to
pass through a number of quality control gate point. Escorts shock
absorbers do not believe in short cut.

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ESCORT TODAY
1. It has 19 plants and over 25,000 employees.
2. Largest manufacturer of tractor in the range of 25 HP.
3. It manufacturer a large range of pistons and rings from 38 mm to 228 mm in
collaboration with Mahle and Gautee of West Germany.
4. It manufacturer a large range by industrial material handling in road construction
equipment.
5. Escorts also manufacturer shafts automatic by draulics and a wide range of
heating elements for domestic and industrial application.
6. Escorts manufacturer the countries widest range of shock absorbers.
7. A turnover of Rs. 4,500 million makes Escorts the 5th
largest Engineering
Company in India.
8. Escort uses a high technology and took equipment and a modern R & D facility.
9. Escort’s products reach the country’s remotest markets through over 500 tractors
dealers, 700 motorcycle dealers and 2000 wholesalers and retailers for automatic
components and spare parts.
10. Escort’s commitment to community is reflected in the various plants and
programmers for health care, Education,

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11. Drinking Water facilities and forest plantations.
12. Escort has established a medial center at Faridabad. Which has all modern and
sophisticated facilities? It has also in Delhi Escorts Heart Institute & Research Center.

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ESCORTS TOWARDS TOMMARROW
No company can be content to exit merely in the company. A scène of
tomorrow must be contained in the activities of today. Escorts has always
planned for future, has anticipated needs- economical & technical.
At Escorts R & D is a continuous process.
Besides developing new and wider range of products. Escorts scientific
research center carrying out project aimed at the development in rural and
other less privileged sectors optimizing on the indigenous resources of
materials and human skills.

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FUTURE PLANS
 PROPER DIVRSIFICATION INTO NEWER MARKETS.
 OPTIMUM UTILISATION OF RESOURCES.
 ENHANCED CORE SECTOR INVESTMENT.
 POWER ALLIANCE.
 GLOBAL THRUST.
 FULLY COMPUTERISED OPERATIONS.
 TURNOVER TO CROSS 5000 CRORE BY 2000 A.D.
 INFRASTRUCTUREAL RENEWAL.
 REENGINEERING PLANT PRODUCTION AND SUPPORT
SYSTEM FACILITIES.
 SYNERGIC EFFORTS TO DEVELOP HUMAN RESOURCES
AND MAKE IT MORE DYNAMIC.

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LIST OF SUBSIDIARIES
1. ESCORTS AUTOMOTIVES LTD.
2. ESCORTS CONSTRUCTIONS EQUIPMENT LTD.
3. ESCORTS AGRIMACHINERY INC.
4. ESCORTS HEART INSTITUTE AND RESEARCH CENTER
5. ESCOSOFT TECHNOLOGIES LTD.
6. ESCOSOFT TECHNOLOGIES (USA) LTD.
7. ESCOSOFT TECHNOLOGIES (UK) PVT. LTD.
8. ESCOSOFT SINGAPORE PTE. LTD.
9. E- SOFT (MAURITIUS) HOLDING LTD.
10. IFS SOLUTIONS INDIA PVT. LTD.
11. ESCONET SERVICES LTD.
12. CELLNEXT SOLUTIONS LTD.
13. ISERV INDIA SOLUTIONS PVT. LTD.
14. ESCORTS SECURITIES LTD.
15. ESCORTS ASSET MANAGEMENT LTD.
16. ESCORTS TELECOM SERVICES LTD. (FORMERLY ESCOTEL
TELECOMMUNICATIONS LTD).

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17 ESCORTS HEALTH CARE SERVICES LTD. (FORMERLY
ESCORTS RESEARCH DEVELOPMENT LTD) .
18. AUTOMATRIX INDIA PVT. LTD.
19. ESCORTS HEART AND SUPER SPECIALITY INSTITUTE LTD.
20. ESCORTS HEART CENTER LTD.
21. ESCTEL MOBILE COMMUNICATIONS LTD.
22. ESCORTS HOSPITAL AND RESEARCH CENTER LTD.
23. ESCORTS TELECOMMUNICATIONS LTD.
24. ESCORTS CLASS LTD. (UPTO 13TH
AUGUST, 2002).

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LIST OF ASSOCIATES
1. ESCORTS AUTO COMPONENT LTD.
2. ESCORTS FINANCE LTD.
3. GOETZE INDIA LTD. (UPTO 10TH
FEB. 2003).
4. ESCOLIFE IT SERVICES PVT LTD. (FORMERELY RITU NANDA
INFORMATION TECHNOLOGY SERVICES PVT. LTD).
5. ESCORTS CONSUMER CREDIT LTD.
6. CA ESCOSOFT LTD.
7. POL- MOT ESCORTS SPOLKA ZOO.
8. LONG AGRI BUSINESS LLC, USA.
9. ESCOTRAC FINANCE INVESTMENT & LEASING PVT. LTD.
10. ESCORTS FINANCE INVESTMENT& LEASING PVT. LTD.

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LIST OF JOINT VENTURES
1. ESCORTS JCB LTD. (UPTO 21ST
JAN. 2003)
2. CARRARO INDIA LTD.
3. ESCORTS MOTORS LTD.
4. HUGHES ESCORTS COMMUNICATIONS LTD.
5. ESCORTS MAHLE LTD. (UPTO 8TH
OCT. 2002).

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Major Customers
 Telco
 Ashok Leyland
 Maruti
 Hindustan Motors
 Bajaj Auto
 LML
 TVS Suzuki
 Kinetic Engineering
 Rajdoot

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CHAPTER -2
REVIEW OF LITERATURE

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REVIEW OF LITERATURE
Introduction
The chapter gives an overall view of the researches conducted at international and
national level to facilitate identification and understanding the areas covered so far in the
area of insurance marketing, customers‘ perception and satisfaction. It also paves the way
for future research. An extensive review of literature was undertaken to ascertain research
gap and to identify the relevant issues for the study. This chapter provides a bird‘s-eye
view of available relevant studies arranged logically in chronological order that were
carried in the previous years. Anna Rita Bacinello and Fulvio Ortu (1996)1in their study
had proposed a pricing model for the insurance policies, which the authors believe to
benefit in measuring the performance of an interest rate sensitive assets (reference fund),
and a minimum guarantee in present. The model is cast in the celebrated term structure
framework depended by Cox, Ingersoll and Ross (1985). As for the behaviour of the
investment sequent, the study analysed two polar cases. In the first one the payments due
on the fund when the contract is still alive are not reinvested, while in the second the
study proposes a reinvestment policy. The study explains how to obtain solution for the
single premium in the no-reinvestment case, and how to implement a solution approach
to calculate numerically the single premium in the reinvestment. The authors illustrate
their analysis with numerical results that help in understanding the static properties of the
models proposed.
Gupta Swati (1996)2 says that insurance sector reforms are a part of the government‘s
priorities. A package of reforms is very much in the offing. There is an immediate need
of a regulatory framework to open up the insurance industry. Basu Dev Sanyal (1997)3 in

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his article titled "Marketing Management in Insurance" had proposed a model of
Managerial Life Cycle (MLC). This model is closely associated with the Product Life
Cycle (PLC) theory of modern management. Based on the marketing scenario in the
Indian insurance industry, the MLC model included six phases-introductions, growth,
maturity, stagnation and decay. The study concluded that the pace of the future growth of
industry will be based on the versatility and innovative capacity of its marketing
managers. Khanna (1997)4 categorically mentioned that life insurance policy requires
servicing and the importance of agent to render service. The author emphasis the fact that
only insurance agents can penetrate rural areas and serve the poor class clients. Further
he stressed that the need of professionalism in the entire approach of insurance marketing
which included: continued focus on the customers‘ quality of performance, technological
up gradation and minimized paper work.

33
CHAPTER-3
RESEARCH METHODOLOGY

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RESEARCH DESIGN
The design of research project is the plan that ties the data collected to questions or
hypothesis posed, thereby linking the data to the conclusions to be drawn.
Marketing research projects are either exploratory or conclusive in nature depending on
the objectives.
Research Design
Data Collection sources
Gathering the data from primary as well as secondary sources has completed the data
collection process.
PRIMARY SOURCES
Primary data collection process was carried through personal interviewing.
SECONDARY SOURCES
The collection of secondary data from the magazine and Internet.
Collection of
Data Organization
of Data
Analysis
of Data
Interpretatio
n of Data
Presentation
of Data

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DATA COLLECTION METHOD
Data collection has been done through a very useful & popular survey method.
The survey was conducted through personal interviews to record the consumer’s
perception, attitude towards tractor brands.
To understand each individual response, the personal interview method is better
than other methods like telephonic interviews,. Because this method gives the
researcher enough flexibility to ask any other question which is relevant for
research.
DATA COLLECTION INSTRUMENT
The survey method was used for the research; the personal interviews were conducted
with the help of a structured questionnaire.
SAMPLING PLAN
Place: Rewari, Panipat (Haryana)
Target Respondents: Consumers
Sampling Procedure: Convenient sampling
Sample Size: 100 Consumers
ASSUMPTIONS OF THE PROJECT
1. The sample size of 100 is for representative of the population.
2. Respondents have no bias.

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Objective of Study
 To Study the recent trends in Tractor Industries.
 To study the market shares of ESCORT Ltd.
 To study the market strategies of ESCORT Ltd.
 To study customers perception towards ESCORT Tractors.

37
CHAPTER-4
DATA ANALYSIS & INTERPRETATION

38
ANALYSIS AND INTERPRETATIONS.
1. Classification of data.
2. Which brand’s tractor do you own?
Tractors Percentage
Mahindra 31
Escort 20
Eicher 18
Sonalika 13
Others 18
Percentage
Mahindra
Escort
Eicher
Sonalika
Others
Analysis
It is clear from the diagram that mostly people have Mahindra & Mahindra and ESCORT
is on the second position.

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3. On what basis you are motivated to buy this particular brand?
Factors Percentage
Friends 8
Financial Scheme 16
Advertisement 18
Quality 48
Others 10
Percentage
Friends
Financial
Scheme
Advertisement
Quality
Others
Analysis
Mostly people prefer tractor on the base of quality.

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4. Rank the following features of ESCORT tractors?
(A). Fuel Efficiency.
Fuel Efficiency Percentage
Excellent 50
Good 35
Average 10
Poor 5
Percentage
Excellent
Good
Average
Poor
Analysis
It is clear in above diagram that 50% people said that fuel efficiency of ESCORT is
excellent.

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(B). Engine.
Engine Percentage
Excellent 40
Good 30
Average 18
Poor 12
Percentage
Excellent
Good
Average
Poor
Analysis
It is clear in above diagram that engine capacity of ESCORT is excellent. 40% customers
satisfied to this.

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©. Load Carrying Capacity.
Load Carrying Capacity Percentage
Excellent 20
Good 42
Average 28
Poor 10
Percentage
Excellent
Good
Average
Poor
Analysis
It is clear from above diagram that 20%customers said that loading carrying capacity is
excellent and 42% said that it is good.

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(D). Design.
Design Percentage
Excellent 60
Good 30
Average 8
Poor 2
Percentage
Excellent
Good
Average
Poor
Analysis
Design of the ESCORT tractor is excellent given answer by the customers.
60%customers are satisfied with it.

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(E). Cooling System.
Cooling System Percentage
Excellent 52
Good 34
Average 8
Poor 6
Percentage
Excellent
Good
Average
Poor
Analysis
52% customers said that cooling system is excellent

45
(F). After Sales Service.
After Sale Service Percentage
Excellent 38
Good 32
Average 16
Poor 14
Percentage
Excellent
Good
Average
Poor
Analysis
38% customers said that after sale service is excellent of the ESCORT.

46
(G). Tyres.
Tyres Percentage
Excellent 38
Good 32
Average 16
Poor 14
Percentage
Excellent
Good
Average
Poor
Analysis
38% customers said that tyres of the ESCORT tractors are excellent.

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(H). Overall.
Overall Percentage
Excellent 30
Good 48
Average 18
Poor 4
Percentage
Excellent
Good
Average
Poor
Analysis
Overall performance of the ESCORT tractors, 30% customers said that it is excellent.
And 48% said that it is good.

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5. If you have to purchase another tractor, which brand will you prefer?
Tractor Percentage
Sonalika 13
Escort 30
Mahindra 16
Same 14
Others 27
Percentage
Sonalika
Escort
Mahindra
Same
Others
Analysis
It is clear that 30% customers wants to purchase the ESCORT.

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6. For what purpose you are using your tractor.
Purpose Percentage
Agriculture 70
Construction 17
Industry 8
Others 5
Percentage
Agriculture
Construction
Industry
Others
Analysis
70% customers purchased their tractor for agriculture purpose.

50
7. Rank the tractor brand on the basis of overall performance.
Purpose Percentage
Escort 29
M&M 14
Same 17
Sonalika 20
Others 20
Percentage
Escort
M&M
Same
Sonalika
Others
Analysis
ESCORT is on the first position in the tractor industry on the base of my survey.

51
FINDING, SUGGESTIONS
&
CONCLUSION

52
CONCLUSION
Tractor industry is very large industry. 70% peoples are earning their livelihood from
agriculture in our country. It can clearly be said on the basis of the study conducted so far
that advertisements play a major role in promoting among the customers. After having a
complete analysis of the market it is concluded that although the Escort captures a big
share of the tractor industry but still there is a need to focus on competitive practices due
to growing competition. The customers are satisfied with the quality provided but some
other competitors are also trying to provide the same quality at lesser price. So there is a
need to review the technological advancement, and other aspects like customer dealing,
lesser gap between manufacturer and consumer so that they can share their complaints
and suggestions time to time.
The escort is mainly competing in the market only on the basis of its quality and
customer reach. The main competitors of the Escort are Mahindra and Mahindra and
Sonalika tractors.

53
FINDINGS
 It was found that the customers are brand loyal to ESCORT, only because of after
sale services and less maintenance required.
 Most of the people are using the tractor for Agriculture purpose.
 The fuel efficiency, design and HP of a tractor mostly influence the buying
decision of tractor buyer.

54
RECOMMENDATIONS
WHAT SHOULD COMPANY DO TO
INCREASE THEIR SALES?
This was direct open ended questions asked at the mid of the questionnaire.
The result will help to get deep in a customer psyche & analyze what and
where does the customer want to see.

55
FEATURES NO. % age
ADVERTISEMENT 25 10.78
AGRI MELA 10 4.31
BETTER AFTER SALES SERVICES 6 2.59
BREAKING EFFICIENCY 1 0.43
CREDITS 13 5.6
DEMOS 33 14.22
DISCOUNTS 11 4.74
EDUCATION ABOUT TRACTORS 2 0.86
EXCHANGE OFFICE 9 3.86
FREE GIFTS 4 1.72
FUEL EFFICIENCY 4 1.72
LOW MAINTAINANCE COST 1 0.43
MORE POWER 14 6.03
MORE STYLISH 11 4.74
PERSONAL SELLING 6 2.59
POWER STEERINGS 1 0.43
PRICE CUT 68 29.31
ROAD SHOWS 7 3.02
TRAILS 5 2.16
WARRANTY 1 0.43
TOTAL 232 100

56
DISCOUNTS
DEMOS
FREE GIFTS
FUEL EFFICIENCY
LOW MAINTAINANCE COST
MORE POWER
EXCHANGE OFFICE
EDUCATION ABOUT
TRACTORS
CREDITS
AGRI MELA
BREAKING EFFICIENCY
ADVERTISEMENT
BETTER AFTER SALES
SERVICES
MORE STYLISH
PERSONAL SELLING
POWER STEERINGS
PRICE CUT
ROAD SHOWS
TRAILS
WARRANTY
TOTAL
WHAT SHOULD COMPANYDOTOINCRESE SALE
Out of 100 most of the respondent gave their valuable suggestion for the increase the sale
of Farmtrac. Most of the respondents said that if the company reduces their price and
focusing more on advertisement it can easily improves their sale in comparison to others.

57
REASONS FOR CHANGE OF PREVIOUS
TRACTOR
Reason for change % age
Accident 3
Financial Problem 1
Fuel consumption 5
Gear Box Problem 3
Engine Trouble 6
High Maintenance Cost 10
Excellent Trade In Offer 7
Technology Become Old 64
More Power Requirement 32

58
REASONS FOR CHANGE OF PREVIOUS
TRACTOR
REASONFORCHANGE OF PREVIOUS TRACTOR
Accident
2%
Financial Problem
1%
More Power
Requirement
24%
Fuel consumption
4%
Gear Box Problem
2%
Engine Trouble
5%
High Maintainence
Cost
8%
Excellent Trade In
Offer
5%
IT Become Old
49%

59
THE VARIOUS REASON FOR PURCHASE
THE TRACTOR
REASON Score % age
Brand Loyalty 3 9.090909
Company Reputation 2 6.060606
Fuel Efficiency 3 9.090909
FT 70 was not available 1 3.030303
Brand Shift 2 6.060606
High Resale Value 1 3.030303
Less Maintance cost 1 3.030303
Power 8 24.24242
High Sale 1 3.030303
Good Brand Image 1 3.030303
Previous Relation 5 15.15152
Strong Body 1 3.030303
Word of Mouth 3 9.090909
Price 1 3.030303

60
THE VARIOUS REASONS FOR PURCHASE
THE TRACTOR SHOWN BY THE PIE
DIAGRAM
REASONFORPURCHASE Score
Brand Loyalty,3
Price,1
High Sale,1
Good Brand
Image,1
Previous Relation,
5
Strong Body,1
Word of Mouth ,3
Less Maintance
cost,1
Brand Shift,2
High Resale
Value,1
FT 70 was not
avilable,1
FuelEfficency,3
Company
Reputation ,2
Power,8
Brand Loyalty
CompanyReputation
FuelEfficency
FT70 was notavilable
Brand Shift
HighResale Value
Less Maintance cost
Power
HighSale
Good Brand Image
Previous Relation
Strong Body
Word ofMouth
Price

61
MARKET SHARE OF THE VARIOUS OTHER
COMPANIE
MARKET SHARE OF THE VARIOUS OTHER
COMPANIES
Escorts
36%
Eicher
16%
M & M
33%
Swaraj
15%
Escorts Eicher M & M Swaraj
Market Share % age
Escorts 26.66
Eicher 12
M & M 24.44
Swaraj 11.11

62
Having pioneered farm mechanization in the country, Escorts has
played a pivotal role in the agricultural growth of India for over five
decades. One of the leading tractor manufacturers of the country,
Escorts produces tractors in the 27-75 HP range and has already sold
over 6 lac tractors. Its tractors are marketed under three brand names,
viz. Escort, Powertrac and Farmtrac. Escort brand of tractors are
symbolic of reliability and trust and enjoy the confidence of the
farming community for the last 40 years. Powertrac brand of tractors
are the most fuel-efficient tractors in their respective categories that
offer excellent value for money and have helped the farmers improve
their quality of life.

63
Farmtrac brand are the most powerful premium range of tractors
that give maximum productivity to the farmers. Spanning these three
brands, the company has a full range of tractors to cater to the
domestic as well as overseas markets.
The company is developing state-of-the-art highly fuel efficient
engines with the assistance of AVL of Austria and have also entered into
a joint venture with Carraro SpA of Italy for the manufacturing of
transmissions and axles.
To sustain the present momentum and to realize the future goals,
Escorts has invested Rs. 60 crore towards strengthening new product
development programmers and enhancement of R&D capabilities.
Additionally, Rs. 400 crore has been invested towards modernization of
its manufacturing facilities bringing them to international standards. The
company has one of the most comprehensive distribution networks
comprising of over 500 dealerships / outlets and 30 area offices spread
across the country. It has a manufacturing capacity of 75,000 tractors per
annum. Escorts Agri Machinery Group is looking at forward and
backward integration through food processing, food chains and genetic
engineering. It will be expanding its product range by launching highly
specialized tractors and draft implements.
In line to our vision for becoming a major player in sub 100 HP segment
by 2005 in the global markets, we have increased our reach from a major
regional player to major global markets which stretch from North
America to Australia covering all the continents. Despite the strict
competition by other major tractor manufacturers we have been able to

64
gain constant volumes in the global market. Our target for this year is to
export 15% of the volumes of our total production volumes.
Our products are marketed mainly in USA, Central and Easter
Europe through Poland, Ghana, Tanzania, Malaysia, Australia, Tunisia,
Chile, Turkey, Sri Lanka, Kenya, Bangladesh, South Africa and many
other countries..
To consolidate its presence in the overseas markets, the company
has ventures in the USA and Europe (Poland). It has recently acquired a
majority stake in Long Agribusiness LLC, a tractor distributing company
in the USA and Pol-Mot Escorts Spolka Z.O.O., Poland. Besides the
USA and Poland, Escorts has strong presence in Turkey, Australia,
Bangladesh, Sri Lanka, Nepal, Kenya, Tanzania, and South Africa etc.
through its dealers network in these countries. Escorts have very
ambitious plans to expand the dealers network in other potential
countries in the coming year. By the end of the next year, the Company
hopes to be the largest exporter of tractors in the Indian Tractor Industry.
Besides tractors, the RR6 riding type paddy transplanted, in association
with Yanmar of Japan, is the first offering of Escorts to the rice planters
of India
We can test engine emissions for meeting the Bharat TREM norms, US
Environmental Protection Agency (EPA) norms and European (Euro) norms.
Additional capabilities of the engine lab. are engine performance, durability,
reliability, tribology and fluid dynamics studies. An advanced vehicle-testing
laboratory includes fatigue testing, dynamometer testing for chassis and power-
take-off, and smooth as well as torture test tracks. Other facilities include Noise

65
Vibration and Harshness (NVH) Lab., Metrology Lab., and Materials Engineering
Lab. Product styling is carried out in a computerized virtual environment, which
is supported by a model-making shop for physical prototypes
 The findings of our project indicate that price plays a
substantial role in the purchase decision of tractors. Respondents
thought that Farmtrac is too highly priced comparative to its features.
Our secondary data also indicates the ESCORT (Farmtrac) is the most
expensive tractor in the category. Initiatives should be taken to alter
the pricing strategies for the brand.
We suggest that the actual price for a Farmtrac 60 should be in the
range of (Rs. 4-4.15 lakhs). The farmer should get this price even if
they are buying it through a loan because more than 80% of the
farmers avail a loan to buy a tractor.
 To improve the sales of tractors, the Farmtrac dealers need to be
much more aggressive.
 Mere formality basis as was observed in villages. The promotional
campaigns should be more directed towards showcasing tangible.
 Benefits to the customer. Road shows and competitions should be
organized thorough which farmers should be made aware of the
benefits of a ESCORT over other tractors Although it is selling
more on the basis on trade in offers, but the perception of the
features of the Sonalika tractor is improving. Steps need to be
initiated to stop Sonalika from becoming a potential threat to the
sales of ESCORT.

66
 During the survey we found, unlike urban markets, the lower price
of a tractor doesn’t harm its brand image or perception. M&M has
got a very good perception about itself although being the
cheapest offering in the category.
 In many of the dealerships and sub dealerships, the number of
salesmen was too low.

67
SWOT ANALYSIS
S- Agrarian economy a growing market, government policy of low interest
findings for farmers. Trend of modernization and mechanization.
W- Poor financial condition of the farmers.
OPP. - Increasing domestic demand growing demand for Indian tractors
in developing countries, globalization and liberalization.
Threats- Credit squeezes fragmentation of holdings, excise policy of the
government reluctance of Indian farmer to use modern technique.

68
LIMITATIONS OF THE PROJECT
1. A large number of samples could not be covered due to lack of other resources.
2. Shortage of time for this project.
3. Sufficient secondary data is not available.
4. Financial were big constraints.

69
BIBLIOGRPHY
 http://www.google.com
 http://www.tractorindustry.com.
 Kothari. C.R. Research Methodology- Methods and
techniques, New Delhi, WileyInernational Ltd.,2005
 Aswathappa.. K. Organizational Behaviour, New Delhi, Himalaya Publishing
House, 2002.
 Raom V.S.P Human Resource Management – Text & Cases, New
Delhi, Excel Books,2003.
 Deshpande, Milind V,. TQM & ISO, Pune, Symbiosis Centre for
Distance Learning, April,2002.
 Stephan P. Robbinson, Organizational
 Essential of human resource management and industrial relations, subbarao
Mumbai, Himalaya publishing house, 1996.
 Achieving Excellence in Human Resources Management: An Assessment of Human
Resource Functions Edward E. Lawler Iii; John W. Boudreau. Stanford Business
Books, 2009
 Strategic Human Resource Management: A Three-Stage Process Model and Its
Influencing Factors Krishnan, Sandeep K.; Singh, Manjari. South Asian Journal of
Management, Vol. 18, No. 1, January-March 2011
 Strategic Human Resource Management in Small and Growing Firms: Aligning
Valuable Resources Hargis, Michael B.; Bradley, Don B.,, III. Academy of Strategic
Management Journal, Vol. 10, No. 2, July 2011
 Implementing Human Resource Management Successfully: A First-Line
Management Challenge** Nehles, Anna C.; van Riemsdijk, Maarten; Kok, Irene;
Looise, Jan Kees. Management Revue, Vol. 17, No. 3, July 1, 2006

70
QUESTIONNAIRE
Q1. Classification Data.
Name
Age
Income
Education
Q2. Which brand’s tractor do you own?
Q3. On what basis you are motivated to buy this particular brand?
(1). Friends (2). Financial Scheme
(3). Advertisement (4). Availability.
(5). Quality (6). Any Others
Q4. Rate the following features in your brand.
(a). Fuel efficiency
(1). Excellent (2). Good (3). Average (4). Poor
(b). Engine.
(c). Load carrying capacity

71
(d). Design
(e). cooling System
(f). after sale Services
(g). Tyres
(h). Overall
5. If you have to purchase another tractor, which brand will you
prefer?
(a). If yes why
(b). If no why.
Q6. For what purposes you are using your tractor.
(1). Agriculture (2). Constructor
(3).Industry (4). Any Others

72
7. Rank the tractor brand on the basis of overall performance.
(1). Escort (2). Eicher
(3). M&M (4). Same
(5). Tafe (6). Sonalika.

Market Analysis of Tractor Industry in India

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