Vanraj Tractors is launching a new 10 HP tractor called Vanraj-New to target small and medium farmers in India. India has a large tractor market but it is highly fragmented with many farmers unable to afford larger tractors. Vanraj aims to fill this need with an affordable yet versatile mini-tractor. It faces challenges in positioning against competitors and converting farmers accustomed to larger tractors, but can capitalize on the government support for farm mechanization and untapped market potential for smaller tractors.

1. VANRAJ TRACTORS CASE ANALYSIS
PRESENTED BY;
• OLIVIA DUTTA(08)
• PRATYUSH MANI TRIPATHI(43)
• SANDEEP SINGH(52)

2. introduction
• M/s Pramal Farmatics Pvt. Ltd comp.
• VANRAJ-NEW 10 HP TRACTOR.
• Central motor vehicle rule (CMVR)
• Bhanjibhai Nanjibhai Mathukia of Gujarat.
• Target market

3. Tractor industry in India
• Third largest gross cropped area but highly fragmented.
• High growth rate-World’s largest market.
• Farm mechanization- total agricultural production.
• Tractorization - a requirement not a substitute.
• Non-availability of right kind of tractors to match farmer’s
needs.
• Northern part of the country requires lower horsepower
tractors.

4. Drivers of the tractor demand
• Commercialization of agriculture.
• Heavy dependence on monsoon.
• High level of govt. support.
• Obligations for financial institutions.
• Multipurpose.
• A symbol of prosperity.
• Commercial usage.

5. CRITICAL ISSUES
• Dilemma of targeting and positioning.
• Acute segmentation requirement.
• Sales and revenue growth….accurate???
• Small is beautiful..is it???

8. SEGMENTATION
• DEMOGRAPHIC SEGMENTATION
- VANRAJ focused on small and medium farmers. ( large no. of
farmers in this segment doesn’t own a tractor AND ARE
POTENTIALS FOR MINI-TRACTOR SEGMENT )
- niche in horticulture segment ( farmers have large land holdings.)
• BENEFIT SEGMENTATION
- single piece casting tractor(three wheel convertibility, spraying
pesticides, power take-off point, transportation need, compatible
with farming instruments)
- cost benefit (fuel efficient, low maintenance cost, higher
longevity, less fuel consumption, low initial cost)
• PRODUCT SEGMENTATION
• GEOGRAPHIC SEGMENTATION.

9. TARGETING
MULTI- SEGMENT
TARGETING

10. POSITIONING
• Benefit or attribute
(A “Single piece casting
tractor” )
• Quality and price
(versatile technology,
affordable price)
• Competition ( Vanraj
could perform all
functions of big tractors,
durable than Chinese
tractors)

11. strength weakness
.
opportunity threat

12. STRENGTH
• Huge potential market.
• Low on fuel consumption-cost advantage.
• Economical.
• Simplified design and low maintenance
requirement.
• Small in size but high on power.
• Supports multi functions.
• First mini tractor with POWER TAKE-OFF.
• High on convenience.

13. weakness
•Research and development.
•New product in the market
•Increase in price of steel.
•General perception-high power tractor preference.
•Low on ground clearance.

14. opportunity
• No big players in “mini tractor segment”.
• India has only 8 tractors per thousand hectares
of land.
• Government support for carrying various
operations in agriculture.
• Small farmers still not served with technological
advancements.

15. threats
• Huge competition from local players.
• Existing players have a good market capture.
• Failure of proper positioning may arise.
• Already existing Mahindra Yuvraj-15 HP.

16. RECCOMENDATION
• Small farmers-perfect target but keep the soil type
segmentation in mind.
• Position carefully-not as cheap brand but
economical and cost effective brand.
• Educate customers through extensive promotion
thorough various channels.
• Increase in ground clearance & speed.
• Make it more cost effective if plan to fight with new
strong entrant in this category-HMT.
• Target horticulture farms more than acute
agricultural crops.