A2Z of Tractor Industry. Tractors have revolutionised Farm Productivity and continue to do so. Long 130 yrs with new dimensions added for Retail, Exchange, PMG, market Development etc...

1. of Tractor Industry
Presenter : Vivek Bohra
28th May’ 2020

2. FarmerA
2
A : Advance :
When a delivered New Tractor is awaiting balance
payment from Customer thru
1. Partial Payment by KCC (Credit Card) or Cash
2. Payment by Financer
3. Liquidation of Old Tractor
Dealership

3. 3
B
B : Billing :
When a New Tractor is Invoiced from Company to a
Dealership/ Distributor
Additional Info :
GST on Tractors in India is 12% (6% CST & 6% State Tax).
DealershipCompany

4. Dealership
4
C
C : Collection :
When the Dealer/ Distributor repays the invoiced New
Tractor Invoice thru RTGS/ Channel Funding/ Letter of
Credit to Company.
Additional Info :
A Sale is completed when the company receives its payment back from market.
₹
Company

5. 5
D
D : Delivery :
When a New Tractor is handed over to the Prospective
Customer on receipt of cash/ exchange of Old Tractor
etc.
Additional Info :
There are 2 types of Customers : a) First Time Buyer & b) Repeat Buyer
Dealership Farmer

6. Old Tractor
6
E
E : Exchange :
When a Repeat Customer trades off his Old Tractor for
a New Tractor at Dealership.
Exchange % = Repeat Sales/ Total Sales %
Additional Info :
Exchange business is being promoted thru Digital Platforms by Manufacturers.
Dealership New Tractor

7. 7
F
F : Farmer :
A farmer (also called an Agriculturer) is a person engaged
in agriculture OR applies to people who do some
combination of raising field crops, orchards, vineyards,
poultry or other livestock.
Additional Info :
A Farmer is also a Good Planner who packs, stores, markets and repairs machinery too..

8. 8
G
G : Gross Working Capital :
Gross Working Capital refers to the amount of Funds
invested in current assets employed by a business.
GWC = Stocks + Advances + Exchange Trs + Cash in Hand

9. 9
H
H : Haulage Point :
Haulage is the business of transporting goods by road.
In Tractor Business Haulage Points are Brick Kiln,
Timber, Sand Mining, Dharamkanta etc.
Additional Info :
As per Porters 5 Forces : Tractor is substitute to Commercial Vehicles

10. 10
I
I : Institutional Business :
When a Company sells tractors to Govt/ Semi Govt/ Pvt
Institutes like Municipality, Forest Deptt., Private
Contractors, Agri University, Aviation, Defence etc..
Additional Info :
Indian Govt. does Insti business on GeM Portal thru Bid, Direct Purchase or Reverse
Auction.

11. 11
J
J : Job Card :
A card in a Dealership Workshop system on which the
detailed costs of Tractor Service order are
accumulated. It has Repair Estimate, Problem faced
and Parts to be consumed

12. 12
K
K : Key Productivity Ratios :
 Marketshare (M/s) : Volume/ Total Industry %
 Win Ratio (WR) : Win / (Win+Loss) %
 Coverage Ratio (CR) : (Win+Loss)/ Total Industry %
Also, Mkt Share = WR x CR
Additional Info :
Eg. If a Dealer, sell 5 Trs & Sale Lost is 3 Trs out of 10 Trs sold in his territory in a month.
His Mkt share will be M/s : 5/10 = 50%
Win Ratio (WR) : 5/8 =62.5% & Coverage Ratio : 8/10 = 80%

13. 13
L
L : Loyalty Ratio :
Customer loyalty is positively related to customer
Satisfaction as happy customers consistently favor the
brands that meet their needs. They are purchasing a firm’s
products or services exclusively, and are not willing to switch
their preferences over a competitive firm.
Additional Info :
LR = Repeat Buyers (Same Brand)/ Total Repeat Buyers in a month %

14. 14
M
M : Market Development :
Introduction of Existing Products in different markets
to extract full benefit of a successful Product. This
helps in increasing the “Coverage”
Additional Info :
Ansoff Matrix explains Market vs Product Strategy.

15. 15
N
N : NBFC’s (Non Bank Financial Companies) :
NBFC are financial institutions that offer various banking
services but do not have a banking license. Tractors are
now majorly funded by NBFC like Magma, Sriram, Chola etc
Additional Info :
In India where 70% of the population lives in rural areas, incorporation of a non-banking
financial firm is essential as they have better reach wrt commercial / Nationalized Banks.

16. 16
O
O : Operational Economics (OPECO) :
When a customer invests for a Tractor, He expects the
it to bring Prosperity in Family. OPECO helps to
understand Cost of Ownership (Fixed -Vehicle Cost,
Registration, Insurance, Implements & Variable -Fuel,
Driver etc) vs Productivity & Value it brings..
Additional Info :
Value maybe Tangible or Intangible (Pride etc.).

17. 17
P
P : Prospect :
A Farmer/ Customer who is buying something or Intends
to buy it.
Prospect can be categorised as Hot, Warm and Cold as per
Time based assessment.
Additional Info :
A Hot Prospect is a person who intends to purchase the tractor in less than 30 Days.

18. 18
Q
Q : Quadra PTO :
4-in-1 PTO, It is proficient in covering wide range of
applications from Stationary viz Water Pump to Dynamic
Application like Seed Drill & Rotary Tiller
QPTO includes : 1.Live PTO, 2. GSPTO (Ground Speed), 3.
RPTO (Reverse) & 4. MSPTO (Multi Speed)

19. 19
R
R : Retail :
When the Dealer/ Distributor receives the Full Invoice
value of the purchased Tractor from the Customer, The
sale is completed and process is called Retail.
Additional Info :
RCT (Retail Cycle Time) is the difference between Date of Delivery & Final Payment
receipt date.
Dealership

20. 20
S
S : Satisfaction (Customer/ Dealer/ Employee) :
Satisfaction is a function of the difference between the Perceived
Performance and Expectations.
Customer satisfaction measures customer’s perceived satisfaction
with their experience of a company offerings/loyalty.
Additional Info :
CSI/ DSI & ESI are measured by Survey, CSAT, NPS(Net Promoter Score), CES (Customer Effort
Score), Social Media or Things gone wrong (Six Sigma)

21. 21
T
T : Tractor :
The word "tractor" is related to word "traction" from
the Latin word "tractus" meaning drawing (pulling).
A tractor is essentially a machine designed to pull
things along, usually very slowly and surely.
Additional Info :
In India Tractor Industry is ~7Lacs in majorly 5 HP Segments from <20 to >50HP.

22. 22
U U : Upgradation (Product) :
1892 : John Froelich & Blacksmith credited for first tractor made -Waterloo Gasoline Traction Engine Co.
1897 : Charles Hart and Charles Parr found Hart-Parr Gasoline Engine Co.
1901 : Ivel Agricultural Motor, built by Dan Albone, was the first commercially successful light-weight petrol-
powered general purpose tractor
1904 : Holt Manufacturing Co. produces its first gas-powered tractor; International with PTO shaft appeared
1917 : FORD INTRODUCES THE MASS-PRODUCED TRACTOR
1925-1930 : HARRY FERGUSON INVENTS THE THREE-POINT HITCH
Product Variants Type 1 Type 2 Type 3 Type 4 Type 5
Clutch Single Dual Split Torque
Hydraulic Clutch
Fluid Coupling
Gear Speed 6+2 8+2 10+2 PCM 12F+12R (Syncro)
Gear Box Sliding Constant SynchroMesh Power Shift Hydrostatic
PTO Type 540 &540E
Live PTO
540/1000
RPTO Quadra PTO
IPTO
(non RPTO)
Rear Axle Redn Direct Bull Drive Inbound Planetary Drive Outbound Planetary Drive
Brakes Drum Dry Disc Brakes Oil Immersed Brakes
Steering Mechanical Power

23. 23
V
V : Village Category :
Villages are categorised basis Tractor population in
High, Medium, Low and Zero. Industry in village
depends on key drivers like Cash Crop, Water source,
Livestock's, Road connectivity etc.
Additional Info :
As of 2018, 649,481 census villages in India. Tractor Ind in FY20 : 7.09 Lac; 1.1 Tr/ Village

24. 24
W
W : Win–Loose Deal Analysis :
If we deliver our Product – It’s a “WIN”
If Competition Delivers the Product – It’s a “Loss”
Win Loose Deal Analysis helps us introspect our
Manpower Capability, Efficacy, Commercial reasons &
Conversion Ratio too. It’s a Deep diving tool.

25. 25
X
X : Xchange Liquidation :
Exchange is Trading a New Tractor for an Old one, while
Liquidation of Old Tractor to a Broker/ Direct Customer
is called Exchange Liquidation.
Additional Info :
Liquidation is done thru 2 Channels – Direct Customer OR Brokers. Second one is faster
but hits Deal profits. In Tractors scrapping is still very rare..

26. 26
Y
Y : You-Tube (Digital Platform) :
is any Web based, Electronic or Virtual platform for presenting
content like You-Tube, Facebook, Twitter, Blogs, Websites.
This is in contrast to an Analog platform like Billboards, Direct
mail, Telemarketing or word-of-mouth.
Additional Info :
5 Main Digital Platforms – Search Engine, Social Media, Video, Blogs & Emails.
Esp in Corona challenging times, Digital Marketing has transformed the Business process,
Culture and Customer Experiences…

27. 27
Z
Z : Zero Downtime (Service) :
Term used in Service for Zero Loss of Productivity for
Farmer, In case a tractor is off road for more than
24Hrs, an alternate arrangement is done for that
period.

28. Thankyou
28
Sincere Thanks to my Colleagues @ TAFE Limited
M/s Sachin, Deepak Dubey, Danveer, Arpan, Narendra & Aashish
~ Vivek Bohra