5. • Agricultural Machinery industry plays an important role in the Indian economy as
the agriculture sector still contributes majorly to the country’s GDP.
•Share of the sector in overall GDP is declining. However, the sector remains
significant as it employs more than 50 percent of the country’s population.
•The agricultural equipment sector is a key sector that contributes to agricultural
growth and productivity.
12
13
14
15
16
17
2007-08 2008-09 2009-10 2010-11
Share of Agriculture sector in India’s GDP
(%)
GD…
6. Inception Phase (1945 to 1965)
Development Phase(1980 to 1992)
Regulatory Phase (1965 to 1980)
Liberalization Phase(1992 to 2002)
Growth Phase(2002 onwards)
7. Chronology of Farm Mechanization in India
Pre-Green
Revolution
Era(1947-
1965)
Green
Revolution
Era(1965-1975)
Post-Green
Revolution Era
(1975 onwards)
1. Farming by traditional
methods
2. Low productivity (0.58
t/ha/yr)
3. Increase in production
was attributed to
increase in cultivated
area
4. Farm power availability
was about 0.27 kW/ha
5. Share of animal power
sources was 98 to 88%
1. High yielding variety
,fertilizer , chemical inputs
2. Productivity increased (1.14
t/ha/yr)
3. Need for timeliness in farm
operations realized
4. Introduction of improved
farm machinery
5. Farm power availability was
about 0.47 kW/ha
6. Share of animal power
sources decreased from 88%
in 1965 to 62% in 1975
1. Use of scientific methods in
cultivation of crops
2. Raise in the productivity level
2.14 t/ha/yr
3. Increase in the availability of
farm power to 1.2 kW/ha
4. Reduction in the share of
animal power from 62% in
1975 to 24% in 1997
5. More implement/equipment
and machinery put to use for
all the farm operations
8. 1. Tractors
2. Levellers
3. Ploughs
4. Dozers
5. Scrapers
1. Seed Drills
2. Seed cum
fertilizer Drill
3. Zero till drills
4. Transplanter
1. Shovel
/Plough
2. Harrow
3. Tiller
4. Sprayer
5. Duster
1. Harvester
2. Thresher
3. Digger
4. Reaper
5. Sheller
6. Sickle/
Dao
1. Seed
extractor
2. Dehusker
3. Huller/
Dehuller
4. Cleaner
5. Grader
6. Mill
7. Dryer
Land
development,
tillage, seed
bed
preparation
Sowing and
planting
Weeding,
inter
cultivation,
plant
protection
Harvesting
and
threshing
Post
harvest and
agro
processing
India’s agricultural equipment industry has a diverse product portfolio
21. POSITIONING
ID
• To be identified as total productive maintenance service provider.
• Achieve highest levels of customer satisfaction.
MESSAGE
• Timely delivery of parts & service.
• High tech with high touch “the tech savvy”
TOOLS
• Promotional campaigns. Eg. “Drones”.
• Distribution strategy.
23. Pricing
• Objective: product quality leadership
• Pricing method: markup
• Product mix pricing: two part pricing fixed(service fee based on
AMC)+variable(other services and spare parts)
• Pricing policy on returns:
incase of replacement only variable price
incase of refund: 100% refund (48 hrs. from detection of
problem)
25. Credit policy
• At the time service :20-30% of the total fee
• Remaining to be paid in a period of 45-60 days
• EMIs to be provided on spare parts amounting to
more than 10k
27. Objectives
• To reach grass root level with our services.
• Reduce the transportation cost of farmer.
• Reduce time consumption.
• JIT access to service.
• Poka Yoke-Ready Set Go
37. Challenges in Branding
• Intangibility
• Commoditization
• Complexity
• Inconsistency
• Real time consumer interaction
38. Strategies for branding
• Incorporating proactive strategy related to the unique
elements in service marketing
• Emphasize the aspects of service process that
benefits the customers
• Provide physical evidence to validate the brand
• Proofs regarding consistent delivery
e.g: testimonials, word of mouth.
40. Objectives of promotion
create awareness
create the need
Gain a competitive edge.
change farmers mind-set
Retain The existing customers
41. Selection of media/ channel-
• Radio
• Television
• Newspaper
• Word of mouth(Youth clubs)
• Wall paintings
• POP Displays
42. Strategies to build brand-
• Common nut bolt are packaged with a distributor
label and parts of the equipment.
• Recruiting the local dealers and mechanics.
• First two services will be free of cost.
• Distribution of pamphlets.
• Demonstrations.
• Push and pull strategy.
43. Packaging and labelling decisions-
• Once a service is rendered the technical personnel will stick a
sticker of the company on the tools and equipment.
• Hologram of the agency on the package of the spare parts.
• Different colour codes on the package to identify product
category
• Water proof, all weather, and fragile proof packaging
• All packaging standards fulfilled as per industry requirements
• Bar code scanning.
47. Benefits of Direct Marketing
• DM can Measure response for the campaign to decide
which has been most profitable.
• DM makes the marketer’s offer & strategy less visible to
competitors.
• The moment they want a solicitation it can be reached.
49. Objectives of Customer Relationship
Marketing
• SMS
• CUSTOMER CALLS
• NEWSLETTERS
(REGIONAL LANGUAGE)
• KIOSK CENTER
• RIGHT TO INFORMATION
• SERVICE CATALOUGE
• LOYALTY REWARDS CARD
• COMMUNITY CENTERS
• SKILL DEVELOPMENT
CENTER
• BUYING/SELLING OF USED
MACHINERY.