Mahindra report 2014 final sudarshan

Summer Internship Report, 2014
“Evaluating Brand Awareness and Sales Funnel Analysis
for Mahindra Tractors in Andhra Pradesh”
Under the Supervision of
Dr. S.K. Nanda Mr. Geetansh Sardana
Area Manager-Hyderabad
Principal Scientist Mahindra Tractors Limited
NAARM-Hyderabad
Submitted by -
Sudarshan Kumar Patel
Post Graduate Diploma in Management - Agriculture
National Academy of Agricultural Research Management
(Indian Council of Agricultural Research)
National Academy of Agricultural Research Management Page 1

DECLARATION
This is to declare that I, Sudarshan Kumar Patel student of Post Graduate
Diploma of Management in Agriculture(2013-2015), NAARM, Hyderabad have
given original and authentic data, information and maintained full
confidentiality to the best of my knowledge in the project report titled
“Evaluating Brand Awareness and Sales Funnel Analysis for Mahindra
Tractors in Andhra Pradesh ” and that, no part of this information has been
used for any other assignment but for the partial fulfillment of the
requirements towards the completion of the said course.
Sudarshan Kumar Patel
PGDMA-1320
NAARM, Hyderabad

CERTIFICATE
This is to certify that Mr. Sudarshan Kumar Patel is bonafide student of Post
Graduate Diploma in Management (Agriculture) (2013-2015), NAARM,
Hyderabad and worked as summer trainee in Mahindra Tractors Limited
for a period of two months from April-June. He has successfully completed his
summer project titled “Evaluating Brand Awareness and Sales Funnel
Analysis for Mahindra Tractors in Andhra Pradesh” towards the partial
fulfillment of his requirements for the course.
Dated:
Project Guide
Dr. S.K. Nanda
Principal Scientist
NAARM- Hyderabad

ACKNOWLEDGEMENT
Before I embark upon acknowledging those who assisted me in accomplishing
this present summer project, I must thank MAHINDRA for giving me the
opportunity to work upon a challenging project which gave me a real time
field experience. I should thank my mentor Mr. Geetansh Sardana, Area
Manager – Hyderabad, Mahindra Tractors Limited, he with great
benevolence and generosity has always assisted me whenever I have
approached him with any doubts or questions.
I also take this opportunity to thank the faculty members of NAARM who have
toiled hard in paving a solid foundation in me which is indeed of great
importance in carrying out the research work. My sincere thanks to Dr. S.K.
Nanda who supported me throughout my project.
My special thanks to Mr. Prasanna Kumar (Territory Manager –
Karimnagar, Mahindra Tractors Limited), Mr. Raju (Territory Manager –
Nizamabad, Mahindra Tractors Limited), Mr. Aditya Dharmadikari
(Senior Territory Manager, Mahindra Tractors Limited) without whose
constant support, I wouldn’t have been able to execute this project. I also
thank farmers and dealers who though used to be quite busy yet were able to
spare sometime for me.
I would like to thank my family, seniors and friends who are always there to
support and encourage us. I also thank all the respondents who have given
their valuable time, views and authentic information for this project.

Executive Summary
Mechanization is one of the critical inputs in agricultural operations.
Mechanization of agriculture has assumed greater significance in enhancing
crop production and productivity by ensuring timely agriculture operations
more effectively and reducing human drudgery. It also gives relief from
increased labour costs and labour unrest at crucial hours which hampers
timely operations.
The States with higher level of mechanization have triggered increased
agricultural production and productivity. Andhra Pradesh is one such state.
Mechanization of agriculture is generally associated with use of tractors,
power tillers; harvestor combines threshers and such other implements.
Adoption of modern methods of farm mechanization has not progressed
effectively in Andhra Pradesh. However there is a rising trend as it saves time
and increased productivity by better management of costly inputs, timely
operations etc., and the tractor density in 1992 was 5.42 tractors per 1000
hect, and was at eight places amongst all the states of India. It is expected that
the density of tractors by 5005 AD will be 12 per thousand hectares. This is
again very low when compared to the tractor density of Punjab and Haryana
which is at 45.8 and 45.6 per thousand hectares respectively in 1992 itself.
With the thrust for development of dry land farming, the need for farm
mechanization has gained all the more importance. The National Commission
on Agriculture recommended the use of power tillers in rice growing areas
and tractors for other crops. At present the population of tractors in the State
is mainly concentrated in the coastal districts viz., East Godavari, West
Godavari and Krishna. However, there is a considerable increase in the
demand for tractors in the district of Rangareddy, Nizamabad, Karimnagar,
Warangal, Khammam, Nalgonda, Mahaboobnagar, Kurnool, Anantapur,
Chittoor, Cuddapah, Nellore, Prakasham and Srikakulam.

SI.
No.
Content Page
No.
1 Introduction 10
2 Research Question 11
3 Research Design
3.1 Purpose 11
4 Methodology
4.1 Selection of study area 12
4.2 Nature and Source of Data 13
4.3 Sampling procedure 13
4.4 Data Collection 15
4.5 Data Analysis 15
5 Limitations of the Study 15
6 Indian Tractor Scenario 16
7 Sales of Tractors in India 17
8 Findings Based on Questionnaires
8.1 Average landholding pattern in Nizamabad
district
18

8.2 Crop Profile 19
8.3 Tractor Market Scenario in Nizamabad
District
19
8.4 Tractor Brands in Different Mandals of
Nizamabad
20
8.5 Leading Tractor Brands 22
8.6 Conclusion 22
8.7 Superior Model in All Samples 23
8.8 Market Key Players 24-25
8.9 Demand of Tractors based on HP Range 26
9 Brand Awareness
9.1 Brand Awareness of Mahindra Tractors 27
9.2 Brand Awareness of Mahindra 605 Model 27
9.3 Brand Awareness of Mahindra Finance 28
10 Company Approach
10.1 Approached by Mahindra Salesman 29
10.2 Approached by Mahindra Dealer/
Showroom
29
10.3 Salesman Approach 30
11 Lost Customers of Different Tractor Brands 30

11.1 Lost Customers of all Tractor Brands in
Surveyed Mandal
30
12 Price Comparison
12.1 Price of Mahindra Tractor 31
12.2 Price Compare with existing Tractor 31
13 Type of Purchase 31
14 Farmer preference for selecting a Tractor 32
15 Consideration for Buying Mahindra Tractors
15.1 Key Reasons for buying Mahindra 33
15.2 Key Reasons for not buying Mahindra 33
16 Customer Perception regarding different
attributes of Tractor’s features
16.1 Engine & Fuel Efficiency 34
16.2 Hydraulic Power and After Sales Service 45
17 Product Features 36
18 Approach 36
19 Key Findings 37
20 Suggestions 39
21 Market strategy 40
23 Comparison between different Brands of 41

Tractors and its unique feature
24 Porter 5 Forces Analysis 40
25 Maintenance cost 45
26 Market potential of different tractor brands
through road show
46
27 Gallery 46
28 SWOT Analysis 49
29 References 50
30 Questionnaire 5 1 - 5 3

Introduction
The tractor industry in India has developed over the years to become one of the
largest tractor markets in the world. From just about 50,000 units in early eighties
the size of tractor market in the country has grown up to over 200,000 units. Today
industry comprises of 14 players, including 3 MNCs. The opportunities still are
huge considering the low farm mechanization levels in the country, when
compared to other developed economies across the world. Key concern for the
industry is its dependence on agricultural income in hands of farmers and the state
of monsoon. The key players are Sonalika, John Deer, Mahindra, New Holland,
TAFE etc.
Mahindra and Mahindra Limited was incorporated on October 2, 1945 as a private
limited company under the Indian Companies Act of 1913 by two brothers, Mr.
J.C. Mahindra and Mr. K.C. Mahindra. It was converted into a public limited
company on June 15, 1955. Mahindra & Mahindra Ltd, one of the largest private
sector company in India, is the flagship company of the Mahindra Group. The
company commenced operations in 1945 to manufacture General Purpose Utility
Vehicles and later on entered into manufacturing of Tractors and Light
Commercial Vehicles (LCVs). Over the years, the company has expanded its
operations from automobiles and tractors to steel, trading and manufacturing of
Ash Handling Plants & Traveling Water Screens. The company is focused to
become a world giant in the tractor business. It has already made its presence felt
in countries in Europe, Latin America, Africa and United States of America.

1. Research Question
What are the reasons on which M&M Tractor lost hot and new perspective
customers in the district of Nizamabad?
2. Research Design
2(a) Purpose-
The purpose of the study (Sales Funnel Analysis) is to find out the top three
reasons for losing hot and prospective customers by Mahindra Tractors. As it
is a well-known fact that Mahindra Tractors has been the No. 1 tractor of the
country in terms of sales volume for more than three decades and No. 1 in the
world for the last three years but now the competition in the market is a neck
throat one. So it is in the benefit of the company to know the lacunas in its
products which has become a reason of rejection by prospective customers
and will give the chance to serve the customers better by working on the
lacunas.
3. Methodology
The Methodology followed was -
Selection of the study area
Nature and source of data
Sampling procedure
Data Collection
Analysis of data

3.1. Selection of study area:
The study area was Nizamabad and Karimnagar districts of Andhra Pradesh.
Fig: 1. Study area map:

1) Nizamabad:
Nizamabad district was once considered as agriculturally well developed. The
district’s economy is mostly depended on agricultural sector and more
particularly on various crops. It has 36 Mandalas and 922 villages.
2) Karimnagar :
Karimnagar, the administrative headquarters of the Karimnagar District, is
situated 160 km north east of Hyderabad in Andhra Pradesh now Telangana.
It has 57 Mandals.
3.2 Nature and Source of Data:
Both primary and secondary data were collected and used for fulfilling the
objectives.
Primary data was collected from the farmers with personal interviews.
Secondary source of data was collected from Department of Agriculture and
Websites of Tractor Manufactures Association, Dealer of Sri Sri Tractors and
others.
3.3. Sampling procedure:
Purposive / Judgmental sampling procedure was followed at two levels, selection
of district as first unit and then selection of farmers using Tractors as second unit.
Among all Tractors using Farmers 168 Farmers Randomly selected through Simple
Random Sampling. Hence a total of 168 farmers are selected from Nizamabad
district. The respondents were interviewed and data was collected fulfilling the
objectives, thus a total sample of 168 farmers was covered.
Farmers-168
Sampling Method- Judgmental and Simple Random Sampling

Distribution of Sample Size
Nizamabad Nandipet Makloor Navipet Dharpally Dichpally Sirkonda
60
50
40
30
20
10
0
Large 8 29 5 4 3 4 9
Medium 19 16 14 14 3 8 11
Semi Medium 7 3 0 2 1 1
Marginal 1 1 1 1 1 1 1
Base- 168
Base-168
Distribution of Sample Size
Marginal Semi Medium Medium Large
4% 8%
51%
37%
n=168

3.4. Data Collection:
Data has been collected from the farmers using pre tested questionnaire. The
questions were both closed ended and open ended in nature and framed in
simple language and care was taken to develop good rapport between
investigator and respondent.
In addition, information on Tractor Growth and Market Share is collected
from secondary sources.
3.5. Data Analysis:
The data collected is properly decoded and used for analysis. The data was
analyzed in MS Excel.
4. Limitations of the Study:
1) Although all care was taken during selection of respondents there may be
bias in response due to several reasons such as social prestige, prejudices,
suspicion, apprehension etc.
2) There may be bias in response since the technology is still not at farmer’s
field and not enough data available on part of farmers responding on benefit
emerging from the technology.
3) A small amount of bias may exist on researcher side.
Given all these constraints, an effort was made to minimize all the biasness &
limitations and make this study report more meaningful and objective.

5. Indian Tractor Scenario:
Market Share Trend of Major Tractor Players in India
YEAR
Source- Agricoop.nic.in & TMA
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Tractor Brands
Others
Escorts
Ford New Holland
John Deere
Sonalika
Tafe+EIC
Mahindra
Among all Tractor Brands Mahindra and Mahindra captured high market
share followed by TAFE and Eicher

CAGR-9%
700000
600000
500000
400000
300000
200000
100000
0
Sales in No
Sales in No
From 2004-05 to 2011-12 CAGR was 11% and it has dropped from 2011-12 to
2013-14 and calculated 9%.
Nizamabad District MM Tractor Sales
Sales of MM Tractors gradually
increased from 2007 to 2011 but
dropped in 2012 due to entrance of
new competitors with advanced
technology and overall CAGR
calculated 22%.
Sales of Tractors in India-
Source-agricoop.nic.in
13
Total Sales
226237
111
61
238
143
65
250
200
150
100
50
0
2007
2008
2009
2010
2011
2012
2013
2014
CAGR- 22%
Total Sales
Linear
(Total Sales)

Findings Based on Questionnaires
Average landholding pattern in Nizamabad district-
0
1
Distribution of landholdings
13
64
0 10 20 30 40 50 60 70 80 90
Large(10&above ha)
Med(4-10ha)
Semi Med(2-4ha)
Small(1-2ha)
Marginal(<1ha)
90
No. of Farmers
Distribution of landholdings
1% 0% 8%
53%
38%
Marginal(<1ha)
Small(1-2ha)
Semi Med(2-4ha)
Med(4-10ha)
Large(10&above
ha)
In Nizamabad district no. of
medium farmers are highest in
numbers , so here opportunity of
selling tractors is high.

Crop Profile-(Nizamabad District)
In Nizamabad district major crop
grown by farmers is paddy followed
by Maize and Sugarcane.
Crop Grown %
42%
2%
11%
8% 13%
Rice
Maize
Cotton
Sunflower
Sugarcane
Jowar
Green Gram
Black Gram
Soybean
Tractor Market Scenario in Nizamabad District
2%
7%
10%
5%
Distribution of Tractors New
4
3
24
29
39
82
0 20 40 60 80 100
Mahindra & Mahindra
Swaraj
TAFE
John Deere
Sonalika
New Holland
No of Tractors
Tractor brands
Holland
2%
Sonalika
2%
John
Deere
22%
TAFE
16%
Swaraj
13%
Mahindr
a &
Mahindr
a
45%
From total samples we found that in Nizamabad District Mahindra &
Mahindra is Market Leader followed by John Deere, TAFE and Swaraj
respectively

Leading Tractor Brands in Different Mandals of
Nizamabad District Surveyed-
Nandipet Mandal
16%
4%
2%
53%
25%
TAFE
Swaraj
New Holland
Mahindra &
Mahindra
John Deere
Sirkonda Mandal
13%
9%
9%
26%
39%
4%
TAFE
Swaraj
Sonalika
Mahindra &
Mahindra
John Deere
Nizamabad
20%
50%
15%
2%
13%
TAFE
Swaraj
Sonalika
Mahindra &
Mahindra
John Deere
Navipet Mandal
31%
46%
23%
TAFE
Mahindra &
Mahindra
John Deere

Dharpally Mandal
8%
61%
31%
Sonalika
Mahindra &
Mahindra
John Deere
Dichpally Mandal
0%
7%
0%
77%
8%
8%
TAFE
Swaraj
Sonalika
Mahindra &
Mahindra
John Deere
Makloor Mandal
11%
6%
0%
11%
72%
0%
TAFE
Swaraj
Sonalika
Mahindra & Mahindra
John Deere
New Holland

1
1
0
8
1
1
0
8
9
0
1
2
3
4
13
4
2
2
10
0
20
1
0
1
1
0
29
6
10
6
7
14
5
4
0
1
1
2
0 10 20 30 40 50 60
No of Tractors
TAFE
Swaraj
New Holland
Mahindra & Mahindra
John Deere
Sonalika
Leading Tractor Brands in Different Mandals
0
Dichpally
Makloor
Dharpally
Sirkonda
Navipet
Nizamabad
Nandipet
Mandals
Conclusion-
Among all 7 Mandals, Mahindra Tractors is key leader in 4 Mandals.
John Deere and Swaraj in 1 mandal respectively

Superior Model in All Samples
18%
4%
78%
Model
5245
Model
241
Model
1035
33%
5% 8%
54%
5310
Model
5045
Model
5038
Model
4% 2% 9%
605 Model
64%
2%
19%
475 Model
575 Model
295 Model
275 Model
265 Model
92%
8%
735 Model
744 Model

Market Key Players
JOHN DEERE 5038 JOHN DEERE 5042
JOHN DEERE 5045 JOHN DEERE 5055
T AFE 241 TAFE 5245

MAHINDRA 475 MAHINDRA 575
MAHINDRA 605 SWARAJ 735
SWARAJ 744 SONALIKA RX42

Demand of Tractors based on HP Range
120
100
80
60
40
20
0
Demand
1
15-
30
113
30-
45
52
45-
60
7
60-
75
Demand 1 113 52 7
1%
65%
30%
4%
15-30
30-45
45-60
60-75
Different Tractor Brands offer wide HP range of Tractors from 15HP to 75 HP
in Indian Market. Above picture shows that in Nizamabad District Farmers use
15 HP to 60 HP Tractors, but among all 30HP-45HP range is dominating
followed by 45-60 HP.

Among all samples
near to 100% know
about the Brand
Mahindra Tractors as
compare to other
brand of tractors.
Brand Awareness-
Brand Awareness of Mahindra Tractors-
Awareness of Mahindra
Tractors
YES NO
3%
97%
Brand Awareness of Mahindra 605 Model-
64%
36%
YES NO
Most of the farmers
know about Mahindra
475,575 models but
most of the farmers
don’t know about
605(Arjun) Model.

Brand Awareness of Mahindra Finance-
76%
24%
Awareness
YES
NO
Sources of Finance- Mode of Payment-(Installment)
Source of Finace
100
80
60
40
20
0
Finace Cash Bank
No. of Farmers
Installment
Duration
10%
5%
85%
12 Monthes
6 Monthes
3 Monthes

Company Approach-
Approached by—
Mahindra Salesman Mahindra Dealer/Mahindra Showroom
Approached by
Salesman
81%
19%
YES
NO
Above Chart described that
Mahindra loses its sales
due to less approached by
dealer but competitors’
dealer network is so
strong.
Customers influenced more
by dealer rather than
salesman.
Approached by
Dealer/Mahindra Showroom
73%
27%
Salesman Approach
YES
NO
83%
5%
12%
Knowledgeabl
e
Not
Knowledgeabl
e
Very
Knowledgeabl
e

Lost Customers of Different Tractor Brands
(Total Sample Size)-
0 5 10 15 20
New Holland
Sonalika
Swaraj
John Deere
TAFE
Mahindra & Mahindra
50%
25%
8% 3%
7% 7%
Mahindra
&
Mahindra
TAFE
John
Deere
Swaraj
Sonalika
“Among all tractor brands Mahindra Tractors has lost highest number of
customers.”
Lost Customers of all Tractor Brands in Surveyed Mandal
20
15
10
5
0
New Holland
Sonalika
Swaraj
TAFE
John Deere
Mahindra & Mahindra
“Nizamabad is more competitive mandal because Mahindra has lost his
maximum no. of customers here.”

Price of Mahindra Tractor Price Compare with existing Tractor
Mahindra Price
compare with your
Tractor
14%
12%
High
Low
Ok
FTB- First time
Buyer
RB- Repeat
Buyer
Price Comparison
Price of Mahindra
High
OK
Low
74%
Type of Purchase
Tractors
9%
10%
81%
FTB
53%
RB
47%

Farmer preference for selecting a Tractor
140
120
100
80
60
40
20
0
Price
Product Features
Distribution Network
Dealer Approach
After Sales Process
Finance Options
Farmers for choosing a Tractor first takes into consideration Product features
and after that to price, after sale process, finance options ,and dealer approach.
Consideration for Buying Mahindra Tractors
Consideration for Buying
Mahindra
5%
34%
61%
Yes If Problem
Solved
Yes
No
Above Chart
described that most of
the customers don’t
want to buy Mahindra
because a lot of
problems and 5% of
customer will buy if
these problems
solved.

Key Reasons for buying Mahindra
Better Mileage
35
30
25
20
15
10
5
0
Spare Parts Availability
Long Engine Life
Old Brand
Low Price of Tractors
Low Price of Spare Parts
Due to better mileage most of the farmers prefer Mahindra followed by
easy availability of spare parts and its fewer prices.
Key Reasons for not buying Mahindra
Minor Repair Problems
20
15
10
5
0
Gear Box Problem
Skilled Mechanic
Unavailability
Clutch Plate Problem Motion Down

Customer Perception regarding different
attributes of Tractor’s features
1. Engine & Fuel Efficiency
Fuel Efficiency
TF
MM
SN SW
NH JD
Engine
MM- Mahindra & Mahindra JD- John Deere SW- Swaraj TF-TAFE
NH- New Holland SN-Sonalika
Above Graph shows the perception map according to Rank (1-5) given by the
customers regarding fuel efficiency and Engine of different Brand of tractors.
The size of the bubble shows the market share of tractors i.e. big bubble size
has high market share following by others. X-axis shows the engine and Y axis
shows the fuel efficiency. Example- MM (Mahindra & Mahindra) shows high
market share among all and above bubble graph shows according to customer
perception Mahindra is good in fuel efficiency but not good in engine.

2. Hydraulic Power and After Sales Service-
After Sales Service
TF
SW
SN
MM
JD
NH
Hydraulic Power
MM- Mahindra & Mahindra JD- John Deere SW-Swaraj SN-Sonalika
TF- TAFE NH-New Holland
TF
Aesthetics& Looks
NH JD
SW
MM
SN
Comfort & Safety

Product Features
100%
80%
60%
40%
20%
0%
Product Features
Mahindra & Mahindra My Tractor Similar
Above graph shows Mahindra is good in Aesthetics & looks, oil
consumption, fuel efficiency but bad in pulling power, Lifting capacity
and Hydraulic power according to the customer.
Approach
200
180
160
140
120
100
80
60
40
20
0
Approach
E1 E2 E3 E4 E5(a) E5(b) E5© E6 E7 E8 E9 E10 E11 E12 E13
No 46 8 48 58 28 46 12 68 99 58 92 98 88 8 13
Yes 122 160 120 110 140 122 156 100 99 110 76 70 80 160 155
No. of Respondents

Above Graph shows that in E6 Attribute the respondents who says no is high
.Salesman tell about only the product price and sometime product feature but
don’t tell about the farmer’s specific requirements and applications. The
highest respondents who says no is in E9 & E10 & E11.Salesman don’t tell
about the annual saving for purchasing a Mahindra Tractor. In most of villages
test drive and product demonstration has not been done.
Key Findings
No Approach by Mahindra Representatives/No coverage
After analyzing all the data it was found that M&M lost maximum of Hot and
New prospective customers in the Nizamabad district just because that M&M
Tractor dealer does not have sufficient salesman to take care of that vast
geographical area. 40% of the lost sales is because dealer’s salesman did not
contact those prospective customers. In other words we can say that inability
of salesman to reach to those prospective customers has turned up a
major reason of lost sales.
Bad Product Quality
50% of the lost sales is due to the bad product quality. The respondents also
elaborated on this issue that M&M tractors has many technical problems like-the
pressure of the FIP get down after every three years of usage, Gear box
makes noise in some specific model (275 & 475), Front Lifting, difficulty in
shifting gears, Low ground clearance, overhauling of engines after every 2-4
years, Large turning radius and bad experience with previous Mahindra
Tractors. Arjun 605 Heats earlier in field during harvesting. Leakage is also a
major problem in 475 sarpanch model.

Bad Quality of Approach
We lost 8% of the prospective customers because of bad quality of
approach and follow ups. Follow up has always been a big problem in
Nizamabad. The no of footfalls at the dealership is very high but follow up of
those enquiries is not done properly and those customers are convinced by
our competitors. Moreover most of the salesman at the Nizamabad dealership
is not seasoned and they need training on when and how to follow up. The
quality of approach has to be improved so that from next year onwards we do
not lose even a single customer because of the bad quality of approach.
Observations
It has been observed that farmers believe in tried and tested brands and
products. It means that they usually buy all those brands which they have
found performing well in the locality and this is the reason why some villages
are Mahindra dominated some John dominated and some TAFE dominated
etc. Any news related product/service related defect of a particular brand
spreads very quickly among the nearby farmers and this reduces the
reliability level on that particular brand.
In the Nizamabad district the brokers are playing a major role in
selling/ un-selling a particular brand. These brokers are mostly the local
people who can easily be believed by every prospective tractor customers
because of the social relationship. Now managing these brokers has become a
very big challenge because the brokerage which they ask is a hefty amount
and only those dealers can pay this brokerage which has sufficient cushion in
their profit margins.

Suggestions
1. Number of salesmen has to be increased. This will increase our coverage
area.
2. There is lack of seasoned and experienced salesman in the dealership and
most of them have joined recently, so they need quality training by our
channel care team.
3. There is an urgent need of designing some incentive programmers which
can make all the brokers loyal towards Mahindra brand and those brokers can
be managed easily. Incentives may not be necessarily in terms of cash but can
be in terms of kind, trips or assisting their children for getting good quality
education etc.
4. Most of the farmers said that there is scarcity of skilled tractor mechanic in
show room, so dealer should keep enough no of skilled mechanic for quick
solution of technical problems.

Market strategy
From the product point of view company should assure against quality and
features of the Tractors. By improving the production and distribution
efficiency company can eliminate the entry of competitors in to the market
and meet the demand in appropriate time which finally brings profit through
increasing the sales volume.
From the market view customer awareness in compulsory which can be
achieved through conducting awareness programs like farmer meetings, field
demonstrations, field trails, sample distribution to farmers and campaigns.
Also if the awareness level is good the lag phase of adoption will be reduced.
By doing this, company can achieve profits through customer satisfaction by
increasing the sales as well as market share.

Comparison between different Brands of Tractors and
its unique feature
Brand Mahindra 575DI JOHN DEERE 5045D
Price 680000 734600
HP 44 45
Engine No of cylinders 4 3
RPM 1900 2300
Cooling system Water coolant system, Forced Liquid cooled cooling
system
Air filter Oil bath filter single element Dual element Dry type Air Cleaner
Clutch Single Single/Dual Clutch
No of gears 8F+2R 8F+4R, Collar shift
Transmission Sliding mesh (Partial constant
optional )
Constant mesh/Forward Reverse
Synchro
Side-shift gear No Yes
Lifting
Capacity(Kg)
1485 1400
PTO HP 40 41
Driver space Low space Raised Platform more space for
operator.
Power steering
cylinder
2 1 with setting rod
Mahindra: More number of Cylinders available is 4 as compare to John Deere
it is 3.
John Deere: The Air filter contains Dual element & in Mahindra single
element. There are 4R gears which provide good reverse power while
puddling. It has side-shift gear system which is preferred by most of the
farmers. It is having Dual clutch option.

Brand Arjun 605 JOHN DEERE 5055E
Price 790000 795000
HP 60 55
RPM 2100 2400
Cooling system Forced Liquid cooled cooling
system
Air filter Dual element Dry type Air Cleaner
Clutch Dual Clutch Dual Clutch
No of gears 8F+8R 9F+3R collar shift
Transmission Synchromesh Synchromesh
Side-shift gear No Yes
Lifting Capacity(Kg) 1600kg 1800 kg
PTO HP 57HP 52 HP
Brake Oil Immersed disk brakes Oil Immersed Multi Disc Brakes
Mahindra: Having more HP so more power as compare to JD 5055 and the
number of cylinders are also more.
More number of reverse gears so easy for handling.
John Deere: Good lifting capacity as compare to Arjun 605.
Side shift gear facility available.

Brand TAFE 241 Swaraj 735FE
Price 650000 550000
HP 39 39
RPM 1650
Cooling system Water cooled
Air filter
Clutch single single
No of gears 8F+2R 8F+2R
Transmission
Side-shift gear Yes
Lifting Capacity(Kg) 1100 Kg 1000 kg
PTO HP
Driver space
Power stering cylinder
Brake Dry disc brakes (Dura
Brakes)
Oil immersed disc brakes (Optional)
Brand JD5042 Mahindra 475
Price 642500 640000
HP 42 42
RPM 2300 1200-1400
Cooling system Forced Liquid cooled
cooling system
water cooled cooling system
Air filter Dual element Dry type
Air Cleaner
Clutch Single/Dual Clutch Single
No of gears 8F+4R 8F+2R
Transmission Constant mesh Partially Constant mesh
Side-shift gear Yes no
Lifting Capacity(Kg) 1400 kg 1200 kg
PTO HP 39 38.5
Brake Oil immersed multi disc
brakes
Mechanical dry disk brakes

Mahindra: More number of cylinders as compared to JD5042.
John Deere: Side shift gear facility available which is preferred by farmers.
Good lifting capacity as compared to Mahindra 475.
Good brakes with oil immersed multi disc brakes.
Porter 5 Forces Analysis
BARGAINING POWER
OF BUYER
LOW
THREAT OF SUBSTITUTE
LOW
RIVALARY
HIGH
THREAT OF ENTRY
MODERATE
BARGAINING POWER OF
SUPPLIERS
LOW

Maintenance cost:-
Mahindra Tractors John Deere Tractors
Parts Changing
Duration
Cost
Rs/unit
Parts Changing
Duration
Cost
Dry Air
Cleaner
300 hrs. 110 Dry Air
Cleaner
1000 hrs. 900
Clutch
Plate(Single)
Frequently
changed
2680 Clutch
plate(Set)
Not
frequently
changed
3800
Power
Break
(Plate) Size
6’
Frequently
changed
Power
Break
(Plate)
Size 6’
Not
frequently
changed
Power
Steering
1000 hrs. 2000 Power
steering
1500-
1800 hrs.
2800
Hitch Nut
Size 19
Frequently
changed
25 Hitch Nut
Size 21
Not
frequently
changed
45-60
Engine Oil 250 hrs. 2500 Engine oil 250 hrs. 2600
Gear Oil 1000 hrs. 10000 Gear oil 1000 hrs. 10800
Synchrokit 1 year 10000 Synchrokit Not
frequently
changed
25000

Market potential of different tractor brands through
road show in Karimnagar(A.P.)
Purpose:-
To understand the market potential of all tractor brands in each mandal as
well as villages in Karimnagar district and find the three major problems that
causes the sales of different tractors.

S.No. 1 2 3 4 5 6 7 8 9 10 11
Vi l lag
Rajan
Almas
Vi rnapall
Ni zam
Kanaja
Sangala
Saram
Wadl
Kallep
e
apet
pur
y
abad
rthy
pal ly
pal ly
oor
al ly
Name
Mand
al
Yel lared
dypet
Bejja
nki
Mahin
dra &
Mahin
dra
12 1 20 3 1 5 2 1 2 15 3 65
John
Deere
4 8 2 8 0 4 4 0 4 3 3 40
TAFE 1 2 4 0 0 1 0 0 2 0 0 10
Swara
2 1 1 6 2 10 0 10 3 3 20 58
j
Eicher 0 0 0 8 2 7 0 0 0 0 0 17
HMT 0 0 0 0 0 0 1 1 0 0 0 2
New
0 0 0 0 5 0 0 0 0 0 0 5
Hollan
d
Power
trac
0 0 0 0 0 0 3 0 0 0 0 3
Tota l 19 12 27 25 10 27 10 12 11 21 26 200
Leade
M&M JD M&M JD &
r
EICHER
New
Hol lan
d
Swaraj JD Swar
aj
JD M&M Swaraj
Why Others Why not Mahindra
Strong Hydraulic Power, No Minor Repair
Problems
Mallam
pal ly
Mudimanik
kayam
Husnab
ad
Hydraulic Problem & Oil Leakage
Low Maintainace , High Exchange Rate Clutch Plate Problems & Motion Down
TOT
AL
Better Mileage, Good After Sale Service Engine Heating & Power Steering Problems
High Lifting Capacity, Comfort & Safety Low Exchange Rate & Minor Repair
Problems
Mileage and Low Price Sounding in Gear box & Bad Dealership
Approach
Strong Hydraulic Power, No Minor Repair
Problems
Gear Box Problems & Oil Leakage
Brand & Mileage
Mileage and Low Price Low Exchange Rate & Minor Repair
Problems

Gallery

SWOT ANALYSIS
Strengths
1. Top players in the world in terms of number of tractors sold.
2. High Market Share
3. New Product Development
Weakness
The company is highly dependent on the rural sector,and the rural sector in
turn is highly dependent on the monsoons. As a result, if there happen to be
bad monsoons (less of rains) for two consecutive years it could have an
adverse impact on the demand of tractors for the company.
Opportunity
The government has been trying to strengthen the exports of agricultural
products. As a result, the quality of agricultural products necessarily has to be
very high. In India, the penetration of tractors is 10 tractors per 1000
hectares of cropped area, which is much below the world average of 19
tractors for the same. Thus there is scope for the demand to increase.
Threats
The entry of foreign players in the tractors segment could pose a threat to the
company as these foreign players are technically more competitive than M &
M.

References:
1) Agricoop.nic.in
2) Tractor Manufacturers Association of India
3) IACR journals
4) Research Papers

ANNEXURE – I
Mahindra & Mahindra Ltd
SALES FUNNEL ANALYSIS QUESTIONANARE
NAME OF THE CUSTOMER:-________________________________________
ADDRESS:-___________________ DEALERSHIP:-________________________
TRACTOR MODEL OWNED:-________________ DATE OF PURCHASE:-___________
A What are three most important factors which influenced
your decision to purchase the tractor?
A1 Price
A2 Product features
A3 Distribution network
A4 Dealers approach
A5 Finance options
A6 After sale process
A7 Any other please specify
B Awareness
B1 Are you aware of Mahindra Tractors Yes( )/ No( )
B2 Are you aware about the Mahindra _____________ model Yes( )/ No( )
C Consideration
C1 Did you consider buying a Mahindra Tractor Yes( )/ No( )
C2 If yes ask why
C3 If no ask why
D Contact
D1 Were you approached by a Mahindra Representative/ Salesman Yes( )/ No( )
D2 Did you approach the Mahindra Dealer of Mahindra Showroom Yes( )/ No( )
E Approach
E1 Were you given any explanation about the company? Yes( )/ No( )
E2 Were you given any explanation about the Dealership? Yes( )/ No( )
E3 Were you invited to Dealership? Yes( )/ No( )
E4 Were you given any explanation about the product features and
quality?
Yes( )/ No( )
E5 Were you told about the following benefits of the Mahindra
tractors?
E5(a) Fuel Efficiency Yes( )/ No( )
E5(b) Hi-tech hydraulics Yes( )/ No( )
E5(c) No one company for last 20 years Yes( )/ No( )

E6 Were you asked about your specific requirement and
applications?
Yes( )/ No( )
E7 Were model features vis-à-vis your requirement explained to
you?
Yes( )/ No( )
E8 Were you suggested a suitable model based on your
requirements?
Yes( )/ No( )
E9 Were you given any explanation on the annual savings from
purchasing a Mahindra tractor
Yes( )/ No( )
E10 Were you offered a test drive on a Mahindra tractor? Yes( )/ No( )
E11 Was any product demonstration conducted for your benefit? Yes( )/ No( )
E12 Were you given any explanation on the finance option available? Yes( )/ No( )
E13 Were you given any referral of satisfied customers and/ or
opinion leaders
Yes( )/ No( )
E14 How do you rate the Dealers/ Salesman’s approach? Very knowledgeable()
Knowledgeable( )
Not knowledgeable( )
E15 Any other factor
F Product
How do you compare the Mahindra Tractor with your existing Tractor in terms of
F1 Engine Similar( )My tractor is
better( )MM tractor
is better( )
F1 a Fuel efficiency Similar( )My tractor is
better( )MM tractor
is better( )
F1 b Oil consumption Similar( )My tractor is
better( )MM tractor
is better( )
F1 c Pulling power Similar( )My tractor is
better( )MM tractor
is better( )
F1 d Life of engine Similar( )My tractor is
better( )MM tractor
is better( )
F2 Hydraulics
F2 a Jerking Similar( )My tractor is
better( )MM tractor
is better( )
F2 b Lifting capacity Similar( )My tractor is
better( )MM tractor
is better( )
F3 Transmission
F3 a Ease of operation Similar( )My tractor is
better( )MM tractor
is better( )
F4 Your specific usage application Similar( )My tractor is

better( )MM tractor
is better( )
F5 Comfort and safety Similar( )My tractor is
better( )MM tractor
is better( )
F6 Aesthetics & looks Similar( )My tractor is
better( )MM tractor
is better( )
F7 After sales service Similar( )My tractor is
better( )MM tractor
is better( )
G Commercial
G1 The price of Mahindra tractor is High( ); Ok( ); Low( )
G2 How does the Mahindra price compare with your existing
tractor?
High( ); Ok( ); Low( )
G3 Are you aware that Mahindra offers finance from its company
Mahindra Finance Service Ltd.
Yes( )/ No( )
G4 What are the payment terms of tractor?
H What are the factors influenced you to buy your existing tractor
Name of the Interviewer: - _________________________________ Date:-______________
Type of purchase: - FTB/ RB
If RB Details of earlier tractor: - ______________ Brand, ____________Model__________Purchased
Source of Finance: - Bank/Cash/Pvt.Finance: - ______________
If Bank: - ________________________Bank, _________________ Branch, __________________
Land Details: - _________________ Acre
Price of Tractor: -_________________
Thank you very much for your time and support. . .

Mahindra report 2014 final sudarshan

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