The document discusses the farm equipment market in India. It notes that agriculture contributes 13.7% to India's GDP and that good monsoons and government support programs have increased demand for farm equipment. Mechanization is increasing as farm labor becomes scarce and land holdings shrink. The walk behind rice planter addressed in the document helps small farmers mechanize while addressing needs like precision and efficiency. Distribution channels for farm equipment include direct sales and sales through industrial distributors and dealers. The document presents a hybrid grid analysis of demand generation tasks and how they are fulfilled through various marketing channels for the rice planter.

1. Industrial Marketing
Channel –
Walk Behind Rice
Planter
Group B7

2. Our Sector–Farm Equipments
 Agriculture is the major occupation in Indian economy and
contributes to 13.7% in India’s GDP (2012-13)
 India has experienced normal monsoons this fiscal year
 Besides this there has been increased growth in agricredit in the
Union Budget, interest subvention, rural development focus by the
government and various other farmer friendly schemes(support
prices for crops, commodity price increase etc)
 Additionally, growing shortage of farm hands and smaller land
holdings are forcing many farmers to mechanize their farms
thereby increasing demand
 All these have contributed to an increased demand for the farm
equipments in the country
 Indian farm equipment market also contributes to around 10% to
global equipment market priced around $7.2 Billion

3. Value Chain
The value chain consists of all important farm related activities and
the farm
equipments that would be required at each stage of farming:

4. Major Contributors to Farm Sector Equipments

5. Distribution Channels in Farm Equipment sector
 Here two types of channels are commonly employed
Manufacturer
Manufacturer
Manufacturer’s
Sales Branch
Manufacturer’s
Sales Branch
Farmers
Industrial
Distributor
Farmers

6. Choice of Distribution Channels:
 In the past only direct distribution channel was used due to the
existence of oligopolistic market structure. However this scenario
has changed with increased competition
 The sales potential, market potentials and type of equipment
influences the manufacturers choice of the type of distribution
channel as well as the number of intermediaries used
 Now companies no longer rely on a single marketing channel they
add many new channels to existing ones in order to cut costs and
increase market coverage. This results in creation of a hybrid
marketing system
 We use the hybrid grid to map the elements of a hybrid marketing
system
6

7. Hybrid Marketing Grid
 It’s a grid of demand generation tasks mapped against the
marketing channels and methods.
 In order to properly manage these hybrid systems we need to
realise that tasks and not various marketing channels are the
building blocks of marketing systems.
 Since the farm equipment category is exhaustive, we chose a
walk behind rice planter to do hybrid mapping
 India is one of the world's largest producers of white rice and
brown rice, accounting for 20% of all world rice production
 However mostly traditional methods are still in use for harvesting
rice

8. Walk behind rice planter – Product Features
 Easy to operate and gives high level of precision and cost savings
 Plant population in each row can be controlled through adjusting the seed
feed
 Distance between hills can be adjusted with the hill spacing adjustment
 Light rubber lug wheels give the machine better traction
 The product costs approximately INR 1lac
 Self-adjusting float mechanism to take pressure off the wheels, thereby
minimizing compression of the top soil
 Four-stroke petrol engine and two-speed transmission make rice planter
both fuel and time efficient
 The product addresses need states of farmers who have small land
holdings and want to mechanize their farms and who can’t use or can’t

9. Hybrid Grid

10. Hybrid Grid - Analysis

11. Hybrid Grid - Analysis
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12. Path Ahead
 Farm equipments sector as a whole is still in nascent stage in
India as majority of farmers use traditional farming
techniques, so this sector poses huge future potential
 Since India is geographically massive, it’s difficult for
manufacturers to reach length and breadth of nation. As a
result, they depend a lot on their channel partners which
hampers information flow
 There is much scope of value addition in regards to after
sales services and providing insurances
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July 22, 2012
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July 22, 2012
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14. Demand-generation tasks
Gather
relevant
informati
on
Internet
Disseminat Reach
e
price
communica agreem
tion
ents
Plac Acquire Assu
e
funds
me
order for
risks
s
inventori
es
Direct
sales
15
20
Retail
stores
5
40
30
Dealers
40
and value-
30
15
Total
Resour
ce
Allocati
on
2
15
23
5
Distributor
s
20
Facilita
te
payme
nt
5
5
Facilitat
e
product
storage
&
movem
ent
5
40
50
30
35
50
37
30
26