A PROJECT REPORT ON

MAHINDRA TRACTORS

Project report submitted in partial fulfillment of requirements for the award of the
degree of Bachelor in Business Management of MATS University, Raipur. 

Under the guidance of:                Submitted By:

Mr. Dinesh Kumar Soni                 Gaurav Shukla
Coordinator                                   Roll No.
School of Management Studies      5th sem

SELF DECLARATION

I hereby declare that the project report entitled MAHINDRA TRACTORS. is done
by me is an authentic work carried out for the partial fulfillment of the requirement
for the award of the degree of Bachelor in Business Management under the
guidance of Mr. DINESH KUMAR SONI. The matter embodied in the project
work has not been submitted for the award of any other degree, diploma or any
other similar title or prizes to the best of my knowledge and belief. 
                                                                                          
(Signature)
                                                          Name: Gaurav Shukla
                                                          Roll no.
                                                            BBM 5th sem
                                                  
 EXAMINER CERTIFICATION

The project report of

Gaurav Shukla
MAHINDRA TRACTORS
Is approved and is acceptable in quality and form. 
 

Internal Examiner.                                External Examiner

                                                                       
 
                                                   

COLLEGE CERTIFICATION
This is to certify that project report entitled MAHINDRA TRACTORS is submitted in
partial fulfillment of the requirement for the degree of Bachelor in Business
Management of MATS University, Raipur. Gaurav Shukla has worked under my
supervision and guidance and that no part of this report has been submitted for the
award of any other degree , diploma, fellowship or other similar titles or prizes and
that the work has not been published in any journal or magazine.

Certified

                                                        Mr. Dinesh Kumar Soni

                                                      MBA, M.com, M Phil,    
                                                   SET, ICWAI (In).     
 ACKNOWLEDGEMENT

I extend my sincere thanks to all those people who have helped me in

the successful execution of this project with their valuable suggestions.

I am deeply indebted to all those people whose work I have

referred to this project. I must owe a deep sense of gratitude towards my
teachers for their kindness and encouragement in various stages of the
project.

This moment of the thesis is one of the prides that I

opportunity in this stand of my career to express my sincere efforts
within this limited time. Finally I would like to pay regards to my
parents without whose inspiration and monetary aid this project was
impossible.

CONTENTS

PART – I

• COMPANY PROFILE

• BRIEF INTRODUCTION OF MAHINDRA

GROUP

• HISTORY OF COMPANY

PART – II
 • INTRODUCTION TO FARM EQUIPMENT SECTOR

• MAHINDRA TRACTOR’S

• OBJECTS OF STUDY

• LIMITATION OF STUDY

• RESEARCH AND METHODOLOGY

• INTRODUCTION TO MARKETING STRATEGY

• MARKETING STRATEGY OF MAHINDRA TRACTOR

• SUMMARISATION

• CONCLUSION

PART – III

• BIBILOGRAPHY

• ANNEXURES

MAHINDRA GROUP

INTRODUCTION

The US $6 billion Mahindra Group is among the top 10 industrial houses in India.
Mahindra & Mahindra is the only Indian company among the top three tractor
manufacturers in the world. Mahindra’s Farm Equipment Sector has recently won
the Japan Quality Medal, the only tractor company worldwide to be bestowed this
honor. It also holds the distinction of being the only tractor company worldwide to
win the Deming Prize. Mahindra is the market leader in multi-utility vehicles in
India. It made a milestone entry into the passenger car segment with Logan. The
Group has a leading presence in key sectors of the Indian economy, including the
financial services, trade and logistics, automotive components, information
technology, and infrastructure development.

With over 62 years of manufacturing experience,

the Mahindra Group has built a strong base in technology, engineering, marketing
and distribution which are key to its evolution as a customer-centric organization.
The Group employs over 50,000 people and has several state-of-the-art facilities in
India and overseas.

The Mahindra Group has ambitious global aspirations and has a presence
on five continents. Mahindra products are today available on every continent
except Antarctica

M&M has entered into partnerships with international companies like

Renault SA, France, and International Truck and Engine Corporation, USA. Forbes
has ranked the Mahindra Group in its Top 200 list of the World’s Most Reputable
Companies and in the Top 10 list of Most Reputable Indian companies. Mahindra
has recently been honoured with the Bombay Chamber Good Corporate Citizen
Award for 2006-07.

BRIEF INTRO OF MAHINDRA GROUP

MAHINDRA FAMILY

J.C. & K.C. Mahindra

 K.C.Mahindra J.C.Mahindra

J.C. & K.C. Mahindra, the founders of the Mahindra Group, had the same
ambition: to prove to themselves and the world that Indians were capable of being
the best at whatever they chose to do. Accordingly, they gave up their professional
careers at TISCO and Martin Burn respectively, and risked becoming entrepreneurs
by setting up their own company: Mahindra & Mahindra.

J.C. Mahindra
It was under their inspiring leadership that Mahindra & Mahindra made the
first indigenous Jeep in the country in 1949. Their innovative spirit also showed
during the days when the Company was the leading importer of steel in the
country.

J.C. & K.C. Mahindra had to persuade the Indian Government to buy French
rails for the fledgling Indian Railways because they felt that the British
specifications were obsolete and not the best suited. To convince government
officials of the superiority of the French product, they laid down a short length of
rail line with French rails and invited the government authorities for a ride. During
the journey, chilled champagne was served in glasses filled to the brim. Legend has
it that the train raced along, but not a single drop of champagne was spilled, so
smooth were the French rails. Needless to say, they made their point.

K.C. Mahindra
Interestingly, J.C. & K.C. Mahindra believed in globalization decades
before it had become a buzzword.

Even in the fifties, the Company had British and German engineers on its
rolls, and international tie-ups with Mitsubishi, Willys, Perrine and Chrysler.
 Every venture they set up delivered satisfactory financial results and their
company, Mahindra & Mahindra, has grown into one of India's largest corporate
groups. Even today the Group is driven by the same vision that drove them then.

Mr. Keshub Mahindra - Chairman of Mahindra & Mahindra Ltd.

Mr. Keshub Mahindra, Chairman of Mahindra & Mahindra Ltd., is a graduate from
Wharton, University of Pennsylvania, USA. After joining the Company in 1947, he
became the Chairman in 1963. Over five decades, his continuous involvement has
enabled the Mahindra Group to reach where it is today.

He is a well-known philanthropist who redefined corporate governance by

effectively channelising funds into the social sector. He has contributed immensely
to the cause of building ethical corporations in India and is currently a part of
numerous prestigious

Organizations and committees. He was also appointed by the Government of India

to serve on a number of Committees including the Sachar Commission on
Company Law & MRTP; Central Advisory Council of Industries etc. Today, he is
an icon, an inspiring business leader and a distinguished corporate citizen that
everyone looks up to.

Mr. Keshub Mahindra is on the Board of Directors of the following

organizations:

• Chairman of Mahindra Holdings & Finance Limited, Mahindra Ugine

Steel Company Limited

• Chairman of the Board of Governors of Mahindra United World College

of India
 • Vice-Chairman of Housing Development Finance Corp. Ltd.

• Chairman of Kema Services (International) Private Ltd.

• Chairman, Tech Mahindra Foundation

• Chairman, Mahindra Holdings Limited

Mr. Anand G. Mahindra

Mr. Anand G. Mahindra, Vice Chairman and Managing Director of Mahindra &
Mahindra Ltd. – one of India’s largest and most respected business houses -
graduated from Harvard College, Cambridge, Massachusetts, and Magna cum
Laude. In 1981 he secured an MBA degree from the Harvard Business School,
Boston, Massachusetts. He returned to India that year and joined Mahindra Ugine
Steel Company Ltd (MUSCO), the country’s foremost producer of specialty steels,
as Executive Assistant to the Finance Director. In 1989 he was appointed President
and Deputy Managing Director of the company.

Group Overview

The US $6.7 billion Mahindra Group is among the top 10 industrial houses in
India. Mahindra is the market leader in multi-utility vehicles in India It made a
milestone entry into the passenger car segment with the Logan. Mahindra &
Mahindra is the only Indian company among the top tractor brands in the world.

The Group has a leading presence in key sectors of the Indian economy,
including the financial services, trade, retail and logistics, automotive components,
after-market, information technology and infrastructure development. Mahindra
has recently made an entry in the two-wheeler segment which will see the
company emerge as a full-range player with a presence in almost every segment of
the automobile industry.
Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality
Medal, the only tractor company worldwide to be bestowed this honour. It also
holds the distinction of being the only tractor company worldwide to win the
Deming Prize.

The US based Reputation Institute recently ranked Mahindra among

the top 10 Indian companies in its Global 200: The World's Best Corporate
Reputations list.

Mahindra is also one of the few Indian companies to receive an A+ GRI

checked rating for its first Sustainability Report for the year 2007-08.

• Core Purpose

Mr. Anand G. Mahindra SAYS

‘We don't have a group-wide mission statement. Our Core

Purpose is what makes all of us want to get up and come to work in the morning.'

The Founders of our nation and of our Company passionately believed this.
We will prove them right by believing in ourselves and by making Mahindra &
Mahindra Limited known world-wide for the quality of its products and services.

• Core Values
 Core Values are influenced by past, tempered by present, and
will shape future. They are an amalgam of what they have been, what they are and
what they want to be.

Mahindra group explains their core value in following terms:

• Good Corporate Citizenship

As in the past, we will continue to seek long term success, which is in alignment
with our country's needs. We will do this without compromising ethical business
standards.

• Professionalism

We have always sought the best people for the job and given them the freedom and
the opportunity to grow. We will continue to do so. We will support innovation and
well reasoned risk taking, but will demand performance.

• Customer First

We exist and prosper only because of the customer. We will respond to the
changing needs and expectations of our customers speedily, courteously and
effectively.

• Quality Focus

Quality is the key to delivering value for money to our customers. We will make
quality a driving value in our work, in our products and in our interactions with
others. We will do it 'First Time Right'.

• Dignity of the Individual

We will value individual dignity, uphold the right to express disagreement and
respect the time and efforts of others. Through our actions, we will nurture
fairness, trust and transparency.
These values are the compass that will guide our actions, both personal and
corporate.

• Corporate Governance

The goal of any system of governance is to achieve the best

performance within the overall context of the prevalent economic environment, so
as to secure maximum benefit for all the stakeholders. For this to be achieved,
governance cannot only be systems, processes and metrics. It also has to integrate
within itself the beliefs, values, culture and ethics of an organization, ultimately

Leading to the cornerstones of transparency and accountability, which is what good

governance, is all about.

In the recent past, corporate India has been flooded with several
prescriptive principles of governance. Ironically, the corporate failures in
developed countries regulated by highly disciplined capital markets have only
brought home the stark reality that good governance can never be the Result only
of legislation. It must have real commitment from the management.

Shareholders are aware that the Mahindra Companies have been

associated with good governance even before corporate were faced with legislation
and a set of regulations. The Company has formally enunciated its own governance
practices by way of a Code of Corporate Governance. This Code seeks to serve as
a reminder of the underlying principles governing the conduct of our businesses.

They have a code of conduct that acts as a guide to everyone in the organization.

Code of conduct is different for directors, management, employees.

 • CODE OF CONDUCT FOR DIRECTORS

• CODE FOR SENIOR MANAGEMENT AND EMPLOYEES

The Group at a Glance

Automotive
Domestic Operations
International Operations
Mahindra Renault Pvt. Ltd.
Mahindra International

After-Market Sector

Mahindra Spares Business

Mahindra First Choice
Mahindra First Choice Wheels Ltd.

Farm Equipment Sector

Domestic Operations
International Operations
Mahindra Gujarat Tractor
Mahindra Agribusiness
Mahindra Powerol
Mahindra USA
Mahindra Australia

Mahindra China Tractors

Financial Services Sector

Mahindra & Mahindra Financial Services Ltd

 Mahindra Insurance Brokers Ltd.
Mahindra Rural Housing Finance Ltd (MRHFL)

Infrastructure Development Sector

Mahindra Holidays & Resorts

Mahindra Life spaces Developers Limited
Mahindra World City
Mahindra Infrastructure Developers
Acres Consulting Engineers

Information Technology Sector

Tech Mahindra
Bristlecone
Mahindra Logisoft

Mahindra 2 Wheelers

Mahindra Systech

Forgings

• Mahindra Forgings Limited - India

• Mahindra Forgings Europe - Ag

- GSA
- Schonoweiss & Co GMBH
- JECO
- Stokes UK
- Falkenroth

Engineering Services
 • Mahindra Enfineering
• Engines Engineering Italy
• Mahindra Aerospace

Stampings

Steel

Ferrites

Contract Sourcing

Telematics

Composites

Castings

Gears

• Mahindra Sar Transmissions

• Metalcastello Italy

Specialty Businesses

Mahindra Odyssey
Mumbai Mantra
Mahindra Defence System
Mahindra Special Services Group

Trade, Retail & Logistics

Mahindra Intertrade
 Mahindra Steel Service Center
Mahindra Middle East Electrical Steel Service Centre
Mahindra Logistics Ltd.
Mahindra Retail

The Management

• Board of Directors

The Board of Directors of the Company has, as its members, eminent persons
from Industry, Finance, Investment and other branches of business, who bring
diverse experience and expertise to the Board.

The Company's current Board of Directors is as follows:

NAME DESIGNATION

1. Mr. Keshub Mahindra Chairman

2. Mr. Anand G. Mahindra Vice Chairman and Managing

Director

3. Deepak Shantilal Parekh Director

4. Nadir Burjorji Godrej Director

5. M. M. Murugappan Director
6. Bharat Narotam Doshi Executive Director & Group Chief
Financial Officer (Group CFO)

7. Arun Kumar Nanda Executive Director & Secretary

8. Narayanan Vaghul Director

9. Dr. Ashok Sekhar Ganguly Director

10. R. K. Kulkarni Director

11. Anupam Pradip Puri Director

12. Thomas Mathew T. Nominee of LIC

• Committees of Board
The Board of Directors as the governing body of the Company meets on an
average of six times in a year depending on the exigencies to decide on crucial
matters of policy and business. In order to facilitate operational independence,
timely direction and supervision within the framework of the general policy of the
Company, certain Committees of the Board have been constituted. Currently, the
Board has the following Committees:
A. Remuneration/Compensation Committee
B Audit Committee
C Share Transfer and Shareholders/Investors Grievance Committee
D Research & Development Committee
E Loans & Investment Committee
Apart from the Share Transfer and Shareholders/Investors Grievance
Committee and the Loans & Investment Committee, the rest of the Committees are
chaired by Independent Directors.
 

A. Remuneration/Compensation Committee
The role of the Remuneration/Compensation Committee is to review market
practices and to decide on remuneration packages applicable to the Vice Chairman
& Managing Director, the Executive Directors and Senior Executives of the
Company. During the course of its review, the Committee also decides on the
commission and/or other incentives payable, taking into account the individual's
performance as well as that of the Company. The Committee has formulated and
administers the Mahindra & Mahindra Limited Employees Stock Option Scheme
and also attends to such other matters as may be prescribed from time to time.

The Remuneration/Compensation Committee consists of the following Directors:

• Narayanan Vaghul (Chairman)
• Mr. Keshub Mahindra
• Nadir B. Godrej
• M. M. Murugappan

B. Audit Committee
This Committee consists solely of Independent Directors. The terms of
reference of this Committee are very wide. Besides having access to all the
required information from within the Company, the Committee can obtain external
professional advice whenever required. The Committee acts as a link between the
Statutory and the Internal Auditors and the Board of Directors of the Company. It
is authorized to select and establish accounting policies, review reports of the
Statutory and the Internal Auditors and meet with them to discuss their findings,
suggestions and other related matters. The Committee is empowered to review the
remuneration payable to the Statutory Auditors and to recommend a change in
Auditors, if felt necessary.
  It is also empowered to review Financial Statements and Investments of unlisted
subsidiary companies, management discussion & analysis, material individual
transactions with related parties not in the normal course of business or which are
not on an arm’s length basis. Generally all items listed in Clause 49 II D of the
Listing Agreement are covered in the terms of reference. The Audit Committee has
been granted powers as prescribed under Clause 49 II C.

The Audit Committee consists of the following Directors:

• Deepak S. Parekh (Chairman)

• Nadir B. Godrej
• M. M. Murugappan
• R. K. Kulkarni

C.Share Transfer and Shareholders/Investors Grievance Committee

The Company's Share Transfer and Shareholders/Investors Grievance Committee
functions under the Chairmanship of
Mr. Keshub Mahindra, Chairman of the Board and a Non-Executive Director.
  The Committee meets as and when required, to deal with matters relating to
transfers/ transmissions of shares and monitors redressal of complaints from
shareholders relating to transfers, non-receipt of balance-sheet, non-receipt of
dividends declared etc. With a view to expediting the process of share transfers, the
Executive Director & Secretary is authorized to approve of transfers of shares
below 5,000 in number.

The Share Transfer and Shareholders/ Investors Grievance Committee consist of

the following Directors:

• Mr. Keshub Mahindra (Chairman)

• Mr. Anand G. Mahindra
• Bharat Doshi
• A. K. Nanda
• R. K. Kulkarni
Mr. Narayan Shankar, Head - Secretarial & Assistant Company Secretary, is the Compliance
Officer of the Company

D. Research & Development Committee (a voluntary initiative of the

Company)
The Research & Development (R&D) Committee, which was constituted by the
Board in 1998, provides direction on the Research & Development mission and
strategy, and key Research & Development and Technology issues. The Committee
also reviews and makes recommendations on skills and competencies required and
the structure and the process needed to ensure that the Research & Development
initiatives result in products that are in keeping with the business needs.

The Research & Development Committee consists of the following Directors:

• A. S. Ganguly [Chairman]
• Mr. Anand G. Mahindra
• Nadir B. Godrej
• M.M. Murugappan
• Bharat Doshi

E. Loans and Investment Committee (a voluntary initiative of the Company)

The Committee approves of the making of loans and investments, borrowing
moneys and related aspects of fund management in accordance with the guidelines
prescribed by the Board.

The Loans and Investment Committee consists of the following Directors:

• Mr. Keshub Mahindra [Chairman]
• Mr. Anand G. Mahindra
• Bharat Doshi
• A. K. Nanda
• R. K. Kulkarni

• Group Management Board

The Group Management Board comprises the Vice Chairman &

Managing Director, Presidents of the Business Sectors as well as heads of certain
key corporate functions. The Board provides strategic direction and enterprise
leadership, facilitates synergistic and symbiotic relationships and creates a shared
vision and value-system, across the various Business Units and Companies that
make up the Mahindra Group. The membership of the Group Management Board
is as follows:

Anand G. Mahindra
Vice Chairman & Managing Director

Mr. Anand G. Mahindra,

Vice Chairman and Managing Director of Mahindra Group

Bharat Doshi
Executive Director & Group Chief Financial Officer (Group CFO)

Bharat Doshi joined the Company in 1973

As an Executive

A. K. Nanda
Executive Director

Arun K. Nanda,
Executive Director & President of the Infrastructure Development Sector,
Mahindra & Mahindra Limited
Mr. Anjanikumar Choudhari
President - Farm Equipment Sector

Rajeev Dubey
President (HR, After-Market & Corporate Services) Board & Member of the Group
Management Board

Dr. Pawan Goenka

President (Automotive Sector) and Member of the Group Management Board

Dr. Pawan Goenka joined Mahindra & Mahindra in October 1993

As General Manager Research & Development

Hemant Luthra
President Systech Sector and Member of the Group Management Board

Hemant Luthra joined Mahindra & Mahindra

As Executive Vice President....

Mr. Uday Phadke

President - Finance, Legal and Financial Services Sector and Member of the Group
Management Board

Uday Phadke joined the Company in 1973.

He is a member of the Institute of Chartered Accountants of India....

Mr. Ulhas N. Yargop

President - IT Sector and Member of the Group Management Board

Mr. Yargop joined the Mahindra Group in 1992

As General Manager - Corporate Planning
Milestones to success

Major Milestones:  

Yearwise
 
1940 1950 1960 1970 1980 1990 2000
1941 1951 1961 1971 1981 1991 2001
1942 1952 1962 1972 1982 1992 2002
1943 1953 1963 1973 1983 1993 2003
1944 1954 1964 1974 1984 1994 2004
1945 1955 1965 1975 1985 1995 2005
1946 1956 1966 1976 1986 1996 2006
1947 1957 1967 1977 1987 1997 2007
1948 1958 1968 1978 1988 1998 2008
1949 1959 1969 1979 1989 1999 2009

HISTORY
 Few groups can identify as closely with India's destiny and industrial progress
as the Mahindra Group. In fact, Mahindra is like a microcosm of India. Both were
born around the same time, had the same aspirations and both experienced the
inevitable troughs and crests in the journey towards their goals. And both continue
to march
on the path to progress and global recognition.

The birth of Mahindra & Mahindra began when K.C. Mahindra visited the
United States of America as Chairman of the India Supply Mission. He met Barney
Roos, inventor of the rugged 'general purpose vehicle' or Jeep and had a flash of
inspiration: wouldn't a vehicle that had proved its invincibility on the battlefields of
World War II be ideal for India's rugged terrain.

Swift action followed thought. The Mahindra brothers joined hands with a
distinguished gentleman called Ghulam Mohammed. And, on October 2nd, 1945,
Mahindra & Mohammed was set up as a franchise for assembling jeeps from
Willys, USA.

Two years later, India became an independent nation and Mahindra &
Mohammed changed its name to Mahindra & Mahindra. Ghulam Mohammed
migrated to Pakistan post-partition and became the first Finance Minister of
Pakistan.

Since then, Mahindra & Mahindra has grown steadily in size and stature and
evolved into a Group that occupies a premier position in almost all key sectors of
the economy. The Group's history is studded with milestones. Each one taking the
Group forward. In fact, today, its total turnover is about 6.7 billion dollars.

Mahindra is a group in a hurry, engaged in an ambitious, sustained and

prolonged penetration into the global arena. Its spirit can be encapsulated in the
words of the poet Robert Frost, a favorite of India's first Prime Minister, Pandit
Jawaharlal Nehru:

"The woods are lovely, dark and deep,

But I have promises to keep,
And miles to go before I sleep,
And miles to go before I sleep."

For Mahindra & Mahindra, this translates into many more milestones to be
set up before it rests If ever.

PART – II

Farm Equipment Sector (FES)

INTRODUCTION

Farm Equipment Sector (FES) is a part of US $6.7 billion Mahindra group,

which is amongst the top 10 industrial houses in India. The group has a leading
presence in key sectors of the Indian economy, including the financial services,
trade, retail and logistics, automotive components, after-market, information
technology and infrastructure development. Mahindra has recently made an entry
in the two-wheeler segment.
 The Mahindra group's Farm Equipment Sector (FES) is amongst the top
three tractor brands in the world. It has won the Japan Quality Medal in 2007. It
also holds the distinction of being the first tractor company globally to win the
Deming Application Prize in 2003. FES is the first tractor company worldwide to
win these honors. This shows the strong focus of FES on Quality and Customer
Satisfaction. Today, the domestic market share of FES is around 42%. (Mahindra
brand: 30% and Swaraj brand: 12%).

FES has a Sustainability Committee in place to take care of the

implementation of GRI requirements.

Domestic Operations

Farm Equipment Sector (FES) is the no. 1 tractor brand in India, since 1983.
Brand Mahindra sells a range of tractors that include Bhoomiputra, Shaan,
Sarpanch and Arjun Ultra-1, with each (except Shaan) having range of variants
based on the horse power (hp) and other attributes. Mahindra tractors are known
for high fuel efficiency and reliability. FES sells its 15 HP to 75 HP category
tractors in the domestic market.

FES has a large customer base of more than 13, 00,000 customers. The sector
has time and again topped the customer satisfaction chart. FES also has the deepest
distribution reach with more than 680 dealers along with widest service network
across India. The sector has four manufacturing facilities in India, located in
Mumbai and Nagpur in Maharashtra, Rudrapur in Uttaranchal and Jaipur in
Rajasthan.

Mahindra Farm Tractors The Farm Equipment Sector is a process driven

organisation with a strong focus on quality systems. All FES
Plants are ISO 14001 (Environment Management System), OHSAS 18001
(Occupational Health and Safety Management System) and ISO/TS 16949 (Quality
Management System) certified.
There is a strong commitment on part of the top management to make the
production system even more efficient through proactively following world-class
methodologies like QC story and QC tools, Six Sigma, DOE (Design of
Experiments) and TPM (Total Productive Maintenance).

Mahindra & Mahindra had acquired a majority stake in Punjab Tractors

Limited (PTL) in early 2007. PTL is a good strategic fit to the company, as it
comes with its strength of efficient design (strong R&D abilities) and the Brand
Swaraj, which enjoys a strong customer loyalty for being sturdy and reliable.
Benefits of this acquisition include advantages of economies of scale, sourcing
benefits and vendor rationalization. Post Mahindra – PTL merger in February
2009, PTL is now a part of Mahindra FES. It is known as Swaraj Division.

International Operations

The international operations of the Farm Equipment Sector are spread across six
continents and in around 25 countries. FES has state-of-the-art manufacturing
plants in India and China with a combined capacity to produce more than 1, 70,
000 tractors a year. Besides, these plants there are assembly plants USA and
Australia. FES has more than 1000 dealers world-wide. Currently, the tractors for
international market range between 25 to 85 HP.

FES has footprints in many countries in the world. Some of the major
markets are in Africa (Major countries: Nigeria, Mali, Chaad, Gambia, Angola,
Sudan, Ghana, Morocco), Latin America (Chile, Brazil), South Asian countries
(Srilanka, Bangladesh, Nepal), Middle East (Iran, Syria etc) and East Europe
(Serbia and Macedonia; FES has entered the Turkey market in 2008).

TRACTORS
 Tractors are heavy vehicles serving the purpose of hauling at an extremely
low speed. India being one of the major agricultural country makes the use of
tractors on a large scale. It is one of the heaviest vehicles basically used for
carrying out the agricultural tasks in an effective way.

Modern tractors usually employ diesel engines which delivers 18 to 575

horsepower. The major producers of tractors in India are Ashok Leyland, Escorts,
Force Motors and Swaraj Enterprise.

Browse Tractors by Company

Escorts Ltd. Force Motors
Swaraj Enterprise
Sonalika Tractors
Mahindra Kisanmitra
HMT tractors

MAHINDRA TRACTORS

Mahindra Tractors, the farm equipment division of Mahindra & Mahindra, builds
and sources tractors that are sold worldwide across six continents.
[1] Mahindra builds more tractors in India than any other manufacturer,
[2] And has the capacity to build 150,000 tractors a year.
[3] The Tractor manufacturing plant was originally set up as a joint venture with
the American company, International Harvester, in 1965.
[4] In addition to building their own tractors, Mahindra also sources tractors from
other manufacturers. For the USA market, Mahindra \has bought tractors from
Mitsubishi and Tong Yang Moolsan to cover selected product ranges

SERVICE AND SUPPORT

1) AFTER SALE SERVICE

CUSTOMER CARE
We at M&M, Customer care put in efforts to make Customer’s Mahindra tractor
ownership – a a memorable experience. A number of programs and practices are
incorporated to enhance this experience and are practiced by our Dealerships and
M&M employees. Key parameters which are of prime importance to Customers
like Good quality service in minimum time are taken care by increasing Network
and Doorstep service. This network also takes care of Genuine Mahindra Parts
availability. Dealerships are geared up with equipped workshops and skilled
manpower to handle the product.

Various innovative programs like Swasth Tractor Swasth Chalak, Padyatra,

Installation – Mahindra way are also run to build emotional bond and further
improve Company – Customer relationship. The idea is to give the best experience
every time Customer visits the dealership or interacts with the company. Regular
feedback is taken from the customers on product and services offered and changes
in systems are made to take up Customer experience to the next levels.

NETWORK
M&M has geared up its network to satisfy and delight the customer by providing
Timely and Quality service near to the customer.
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2) Nearest Service Centre

Service Centers in India

Ahmedabad
Bangalore
Bhopal
Bikaner
Bhubaneshwar
Chennai

3) Spare Parts

Spare parts are an integral part for providing after sales service, routine &
periodic maintenance to our tractors. The usage of genuine parts gives longer life
to tractors & gives trouble free performance to the satisfaction of our valued
customers. The parts are available with our vast network of 650+ dealerships, their
413 branches, 68 MASPs, 480 NSPs and 95 exclusive spare parts stockiest spread
all over the country. We have main ware house at Pune & 11 satellite ware houses
at different locations which stock & supply the parts to dealers & stockists as per
market requirement.

Engine Oil & Gear Oils.

We recommend usage of Castrol CRB Prima for our regular range of tractors
& Castrol CRB Prima Plus for our Arjun range of tractors. Their PSM (Perma
Stick Modules) technology offers triple P advantage i.e. Protection, Power &
Performance. We also recommend usage of Castrol Protector Series 90 EP
transmission oil for non wet land H1 range of non oil immersed brake type tractors
& Castrol Protector Sereies 140 EP transmission oil for wet land range of non OIB
type tractors. These oils are available in 20 Liters; 50 liters pack sizes & 210 litre
barrels.

We recommend use of TRACTELFMM transmission oil from M/s Totalfinaelf

Ltd. for tractors with oil immersed brakes. This is available in 20 liters pack & 210
liters barrel. These oils have undergone rigorous test by our research &
development team. They have been specially blended & developed for long life of
brakes & other parts of transmission. The oil is available with all our dealers &
also with the dealers of respective oil companies through out the country.

Risk Management (Executive)

Responsibilities:
* To do system implementation and decentralization.

* Analyze various risk factors involved in the Process and suggest

Improvements in the existing monitoring system.

* Be part of a team for other new Projects.

Requirements:
* Candidate must CA with 6 months – 2yrs of Post qualification
Experience from any Industry.

* Should have done auditing of well known corporate and also some
exposure to risk management.

* Preferably Senior Executives specializing in Clerical/Administrative Support or

equivalent.

* Job role in Administrative Executive or equivalent.

* Required to do system implementation and decentralization.

* Analyze various risk factors involved in the Process and suggest

Improvements in the existing monitoring system.
India's first turbo tractor

Mahindra & Mahindra Ltd, India's No I tractor manufacturer, launched in Chennai

its latest offering, the first Indian tractor with turbo technology the 'Mahindra
Sarpanch 595 Di Super Turbo'. Developed specifically to meet the needs of the
progressive Indian farmer, this superior technology brings with it a whole host of
advantages, which together represent a quantum leap in new-age tractor
technology, said K J Davasia, executive director & president, farm equipment
sector, Mahindra & Mahindra Ltd.

"Mahindra Tractors has always been in the forefront of introducing the most
advanced technologies for the benefit of its consumers. We are proud to present
India's first turbo-tractor -the Mahindra Sarpanch 595 or Super Turbo. The Super
Turbo represents a quantum leap in tractor technology; the same technology that is
used for jet planes and ships is now in the Mahindra tractor."

Equipped with the superior turbo engine, the Mahindra Sarpanch 595 DI Super
Turbo offers 25 per cent more power and operational speed, enabling the farmer to
complete a larger amount of work in a relatively short period of time leading to
higher productivity.

In addition to these, the turbo technology also offers superior fuel

Efficiency and is environment-friendly with Iow emissions.

Avinash Patankar, general manager - sales, farm equipment sector, Mahindra

& Mahindra Ltd, echoed this sentiment.

"The launch of the Mahindra Sarpanch 595 Di Super Turbo reinforces our
leading position in the state of Tamil Nadu. This product is most suitable for
advanced applications, like combined harvester and heavy duty applications like
hard soil tilling and heavy haulage."
 Recently, Mahindra Tractors was awarded the prestigious Japanese award -
the Deming Prize for Quality Excellence. Regarded as the Oscar in the world of
manufacturing, it is given to companies that have established total quality
management in their entire business operations, ranging from human resource,
product development, sales and marketing processes, vendors to its commitment to
corporate citizenship.

"With plants in Mumbai and Nagpur and satellite plants in Jaipur and Rudrapur,
the farm equipment sector of Mahindra and Mahindra Ltd manufactures tractors,
which are state-of-the-art and technologically
one of the most advanced. A leader in the Indian market for 20 consecutive years,
Mahindra Tractors has over 9.5 lakh satisfied customers across India. Mahindra
Tractors also boasts of being the fourth largest in the world in terms of units sold.
Mahindra tractors are exported to the United States, South Africa, Sri Lanka,
Bangladesh, Nepal, Zimbabwe and several European countries"

OBJECTIVE OF THE STUDY

• To ascertain the existing marketing strategies of mahindra tractors.

• To structure the company profile for mahindra tractors.
• To understand various products and services offered by mahindra
tractor.
• To ascertain the customer expectation regarding the mahindra tractors.
• To analyse the customer attitude and perception towards mahindra
tractors and marketing strategies for mahindra tractors.
• To suggest suitable marketing strategies for mahindra strategies for
mahindra tractors.
Research and methodology

Methodology can be defined as:

1. The analysis of the principles of methods, rules, and postulates employed by a

discipline.

2. The systematic study of methods that are, can be, or have been applied within a
discipline.

3. A particular procedure or set of procedures

Research includes:

• Field of study

The field of study has been restricted. The focus is to conduct market survey on
mahindra tractors.

• Specification purpose

The main purpose of this survey is to find the consumer opinion towards
mahindra tractors.

Total emphasis is laid on general perception of consumers and the products,

their purchase intention, awareness and buying behavior.

Sources of data
 There are two types of data-

Primary data:-

Preparing questionnaire which was distributed among consumers to get

feedback. In this survey the more importance has been given to primary data
than secondary data because it is more reliable.

Secondary data:-

The various sources for secondary data like books, pamphlets and small note
sheets from the company. The secondary data was collected after choosing the
topic, which is very practical to the research. It was collected from the company
brochures and

documents. This has been used in the profile of the organization. These types of
Surveys are expensive and labour-intensive.

Sampling plan:-

The sample consisted of 50 consumers. The convenience sampling method was

adopted.

The sampling plan includes-

1. Project Goals
2. Parameters to be measured
3. Sampling Locations
4. Sampling Timing and Frequency
5. Methods
 Data collection instruments:-

The research instrument in this study to avail information needed was the
questionnaire. Questionnaire was prepared for consumers.

Questionnaire includes both general information and specific information as

framed according to the objectives set in the required order.

Scope of study:-

The study is based on primary and secondary data collected from the
consumers.
It brings out attitude, perception towards the mahindra tractors.

Need for study:-

1. To get a practical out look about theories learnt during the academic year.

2. To get knowledge of the present on going in consumer behavior.

Limitations of the study:-

• Due to time constraints an extensive research could not be undertaken

therefore the sample size was restricted to few peoples only.

• Analysis of the data obtained from questionnaire was done on the

assumption that the respondents gave the correct information. The data
provided by the respondents is basically from their memory recall. Bias
tends to creep due to recall errors. However, enough care has been taken to
reduce the bias by adopting a cross checking method. This seeks information
from respondents.

• Time has been the major constraint while performing the market study.

INTRODUCTION TO MARKETING STRATEGY

Definition of marketing:
 According to Philip kotler “marketing as the set of human activities directed
at facilitating and consummating exchanges.

American marketing association “marketing as performance of business

activities that direct the flow of goods and activities from producers to consumers
or user”

Meaning of marketing:

The term market is derived from the Latin word ‘mercatur’ meaning “to trade”. It
also means merchandise, traffic or a place of business the common usage market
refers to a place where goods or services are bought or sold. In its strict sense,
market need not necessarily refers to a place of exchange.

The concept of market is very important in marketing. According to

American marketing association, “a market is the aggregate demand of the
potential buyers for a product/service”.

According to Philip kottler, “a market is an area for potential exchanges”.

Thus, a market is a group of buyers and sellers interested in negotiating the

terms of purchase/sale and goods/services. The negotiation work may be conducted
face to face at a certain place.

A market consists of the forces of supply and demand facilitating exchange

process between sellers and buyers. Exchange is the art of commerce or marketing.
Exchange is possible when there are two or more parties who have something very
desired exchange for something else. Exchange may take place with or without
money. As a medium of exchange, money speeds handling. It may also be effected
through middlemen in commerce, ex: trader or agent. Middlemen also facilitate
marketing operations.
MARKETING STRATEGY

Marketing strategy is the heart of a marketing plan. Marketing strategy is

related to marketing as one functional area of business. Philip kotller designs
marketing strategy as a consistent, appropriate and feasible set of principles
through which a particular company hopes to achieve its long-term customer
satisfaction and profitability objectives in a particular competitive environment. It
is based on corporate marketing objectives and co-ordinate marketing action
programs implement it viz, marketing mix. The ideal marketing strategy would
achieve optimum utilizations of all resources of the firm.

A successful marketing strategy must have a marketing mix. It is the

combination of 4 p’s of marketing – product mix, price mix, distribution and
promotion mix. These are controllable factors. Producer should also be aware of
un-controllable factors i.e. consumer behavior, govt policy.

For each component of marketing mix, we have a distinctive strategy.

Ex: product strategy, price strategy, distribution strategy, promotion strategy.

• Product strategy:-

Product strategy is a company’s plan for marketing its products. It starts with
product objective. Product strategy must be fitted into overall marketing plan and
integrated with other elements of marketing mix.

The physical product is only a part of the product image. It could not stand
alone, before the potential buyer. There are four elements they surround the
product to give us a complete product concept. These are branding, packing and
labeling. Product guarantee, warranty and service.

Brand strategies and policy

Branding strategies indicates how the firm chooses to use branding as an

integral part of its overall marketing strategy. A brand is a name, term, symbol or
design or a combination of them which is intended to identify the goods or services
of one seller or a group of sellers and differentiate them from those of competitors.

Packing and labeling

A package is a wrapper or container in which a product is enclosed, encased

or sealed. Packing therefore, May be defined as an act of designing and protecting
the package for a product.

A label is anything, a price of a paper, printed statement etc. forming a post

and / or matched to a product and giving some verbal information to the Consumer
about the product. Say the place of production, the name of the producer, contents
of the product, value of the product, price etc. The art of attaching or tagging the
label to the product for grade identification is called labeling.

Product Warranty

A warranty is a stipulation collateral to the main purposes of the contract. A breach

of warranty by the seller enables the buyers to claim for damage. But he cannot
avoid the contract. A warranty is an obligation of the producer and seller to stand
behind the product and assure the buyer that he will drive certain services and
satisfaction from the product. The product warranty must be clear, unambiguous
and meaningful. It has become an important selling point and a means of product
differentiation in a competitive market.

Warranty is also considered as promotional devices. Full disclosure of warranty

information will ensure the consumer “right to know”.

After sale service

It refers to servicing the product after it has been sold, if there is any disorder in it.
It repairs, spare parts and maintenance. After sales service is an important selling
point helping the customer to take a quick decision to purchase durable and costly
goods. Such facilities prevent dissatisfaction, frustration and ill will among
customers.

• Pricing strategies

Price may be defined as the value of product attribute expressed in monetary

terms which a consumer pays or is expected to pay in exchange and
anticipation of the expected or offered utility. Money (price) = bundle of
expectation or satisfactions. Bundle of expectations may include physical
product plus other attributes such as delivery installation, credit privileges,
after sales servicing and so on.

Pricing decisions interconnect marketing actions with the financial

objectives of the enterprise. Among the most important marketing variable
influenced by pricing decision are sales volume, profit margins, rate of
investment, trade margins, advertising and sales promotion, product image
and new product development. There for pricing decision plays a very
important role in the design of the marketing mix. Pricing strategy determines
the firm’s position in the market rivals. Marketing effectiveness of pricing
policy and strategy should not suffer merely on account of cost and financial
criteria.

Pricing policies

• Market penetration policy :

Some companies set a relatively low price in order to stimulate the
growth of the market and to capture a large share of it.

• Market skimming policy :

Some firms seek to take advantage of the some buyers always ready
to pay a much higher price than others because the product for one reason or
another has high present value to them.
 The objective of skimming pricing is to gain a premium from these buyers and
only gradually reduce the price to draw in the more price elastic segment of the
market.

• Early cash recovery policy :

Some firms seek to set a price that will lead to a rapid recovery of
cash. They may either be strapped for funds regard the future as too uncertain to
justify product market cultivation.

• Satisfy price policy :

Some companies describe their pricing objectives as the
achievement of a satisfactory rate of returns. The implication is that although
another price might produce even larger returns over the long run. The firm is
satisfied with a return that is conventional for the given level of investment and
risk.

• Distribution mix / Channels of distribution

Channels of distribution refers to the pathway, path or route taken by goods as

they flow or move from the point of production to point of consumption or
user.

In short it is the route through which the title to the product passes from the
producer, the first owner to the ultimate consumer or users, to the owner.

Channel decision and physical distribution plan are the

components of distribution strategy. These decisions should be evaluated
against the rest of the marketing mix and fitted into over all marketing plan.
 The most common routes used for bringing the products are the
marketing from producer to consumer are as follows:-

• Manufacturer – consumer (direct channel)

• Manufacturer – retailer – ultimate customer
• Manufacturer – whole seller – retailer – consumer
• Manufacturer – agent – whole seller – retailer – consumer
• Manufacturer – whole seller – consumer

• Promotion strategy

Promotion strategy aims at communicating, convening and competing against

rivals. It is evaluated against company objectives, promotion objective and the
rest of the marketing mix. Promotion strategy deals with the following decisions.

• The blend of promotional activities (advertising, publicity, personnel selling

and sells promotion.)
• The amount allocated for the various forms of promotion particularly to the
advertising media such as press, radio, television etc.
• The kind of promotion to be used.

• Sales promotion:-

It is an important instrument in marketing to lubricate the marketing efforts.

Today sales promotion is a necessity and not merely luxury or fashion. It is
not expenditure. It is an investment, which can pay rich dividends. Sales
promotion refers to activities other than personal salesmanship, advertising
and publicity which stimulate consumer purchasing and dealer effectiveness.

E.g. displays, exhibition and showrooms, demonstrations, free samples,

coupons, premiums and various other non recurrent selling efforts not in the
 ordinary routine.

B. Publicity:-

It is also called marketing public relations. Publicity is not paid for by the
organization. It comes to the receiver as the truth rather than as a commercial.
Every firm tries to create good public relation so as to give publicity. Under
the social marketing concept, publicity and public relations are assuming
unique importance in the firms promotion mix. Defective products, unfair
trade practices, anti-social activities often results in unfavorable publicity. The
firm having a poor public image will have lower sales and lower profit.

C. Advertising:-

It means informing the people of the availability of a particular product or

service or idea sponsored by a person (i.e. the advertiser) at his expense to
create demands for their goods.

Advertising helps to create demand for the new product introduced

in the market helps the producers in maintaining the existing market for their
goods and to expand the market for their goods. It popularized a product and
builds reputation and goodwill for the producers.

D. Personal selling:-

It refers to oral presentation in conversation (by a sales representative) with

one or more prospective customer for the purpose of making sales.

Personal selling is highly distinctive and the only form of promotion

involving face to face relationship or interpersonal inter action or
 communication between a salesperson and one or more prospective customer.

MARKETING STRATEGY OF MAHINDRA TRACTORS

The tractor is one of the most important and easily recognizable technological
components of modern agriculture. Its development in the first half of the twentieth
century fundamentally changed the nature farm work, significantly altered the
structure of agriculture, and freed up millions of people to be absorbed into the
rapidly growing manufacturing and sectors of the country.

A tractor is basically a machine that provides machine power for

performing agricultural tasks. Tractors can be used to pull a variety of farm
implements for plowing, planting, cultivating, fertilizing and harvesting crops and
can also be used for hauling materials and personal transportation. In the provision
of motive power, tractors were a replacement for human effort and that of draft
animals, both of which are still used extensively in other parts of the world.

The tractor proved to be an excellent replacement for the cattle in plowing,

soil preparation, planting and cultivating tasks for a wide variety of field crops. In
addition, the tractor was fully capable of providing power for harvesting of wheat
and other small grains.

TRACTOR

India has only about 8 tractors per thousand hectares, versus the Asian average
of 14. The potential demand for tractor is, consequently, large, depending on
growth in agriculture output and productivity. Tractor demand is likely to increase
with increased government investment in irrigation, increased multiple cropping
and the spread of scientific cultivation. The increase in irrigated area, as a result of
Plan investments, will also increase the demand for tractors.

Since approximately 90% of the tractors are bought using

agriculture credit from commercial, co-operative and regional rural banks, the
quantum of credit and the interest rate are, perhaps, the most crucial determination
of tractor demand. The presence of a country wide distribution system is also
important in insulating companies from monsoon failures in some parts of the
country.

Upward revision in support prices of agriculture crops which have been

sizeable since 1991, increased farm incomes and hence demand for tractors. Good
monsoons, even though important, do not affect tractors sales significantly, since
tractor demand is generally concentrated in areas with developed irrigation
facilities.

Two or more successive bad monsoons however affect farm sentiments and hence
sales. Different manufactures adapt their products to the farm practices and soil
conditions of the regions that they service. Brand concentration in regions is
therefore common.

INDUSTRY STRUCTURE

From a small beginning in the 1960s, when a few thousand tractors were
produced, India is now one of the largest producers of tractors in the world, also
with the US. The Green revolution of the late 1960s and increasing recourse to
scientific cultivation have resulted in a substantial increase in the demand for
tractors.

From a production of 2000 tractors in FY1971, the volume sales

of the industry reached 266073 units in FY2000.The tractor industry’s growth has
dropped to a low of 2-3% in 1998-99, as well as in 1999-2000. Product losses and
unremunerative prices in a few states, in the past few seasons, have added to the
downtrend, but the biggest adverse impact has been overproduction and billing by
some of the leading players.
COMPETITORS

Six main players – Mahindra $ Mahindra Ltd (M$M), Tractors and Farm
Equipment Ltd (TAFE), Escorts Ltd, Punjab Tractors Ltd (PTL), Eicher Ltd, and
Hindustan Machine Tools ltd (HMT) – control most of the market, while a couple
of players in the unorganized sector specialize in used tractors.

Mahindra $ Mahindra is the leader in the industry, with a market share of

27%. There multinationals, new ford Holland, john Deere and greaves, have
entered the market in the past two years, but their combined sales have been below
6000 units. All Indian brands, except Punjab tractors ltd, have had overseas tie-ups
and support since the beginning.

BRAND NAME

“MAJBUTI AUR SHAAN KE SANG – BAJRANG”

The power points of the tractors are STRENGH $ PRIDE on these basis name
BAJRANG is given to tractors as BAJRANG is the name of powerful God in the
universe BAJRANGBALI ( HANUMAN ) and the name of any god in any thing
bring pride in it.

It was also noted the rural consumers are more regional and great believers of god.
On this basis the tractors were named as BAJRANG TRACTORS.

FEATURES

• Design simplicity
• Improved performance with reduced cost
• High maneuverability due to small size and small wheelbase
• The fuel consumption, which is comparatively low and low maintenance
cost, adds to the economy
 • Adjustable wheel base to meet the requirement of inter culturing
operation in different crops
• Ergonomically designed
• Better traction, greater control, stability and safety
• Durable, strong, reliable

DESIGN
TECHNICAL DESCRIPTION

The heart of a tractor is a powerful internal combustion engine that drives the
wheels to provide forward motion. Direct ignition (diesel) and spark driven
engines are both found on tractors, just as with cars and light trucks. Power from
the engine can be transmitted to the implement being used through a power take-
off (PTO) shaft or belt pulley. The engine also provides energy for the electrical
system, including the ignition system and lights, etc.

In tractor the machine is little more than an engine on wheels, with a seat for
the operator and a hitch for pulling implements centered in the rear. Later models
would feature an enclosed cab to keep the operator out of the weather; it features
simple control and the metal seat. The drawing shows a wheel-tractor, which
comprised more than 95% of machines sold for farm use. Tracked units also called
crawler tractors.

UNIQUE SELLING PROPOSITION

• Superior performing tractors at competitive prices.

• High flexibility to farmers to perform all types of agricultural operations in

any terrain.
MARKETING STRATEGY
P’s

PRODUCT

The tractor is used for pulling or pushing agriculture machinery or trailer, for
plowing, tilling, disking, harrowing, planting and similar tasks. In 1892, John
Froelich built the first gasoline powered tractor in Clayton Country, lowa.

The tractor in a simple open vehicle with two very large driving wheels on an
axle below and slightly behind a single seat (the seat and steering wheel
consequently are in the center) and the engine compartment. This basic design has
remained unchanged for a number of years, but enclosed cabs are fitted on almost
all modern models, for reasons of operator safety and comfort.

Tractors used belts wrapped around pulleys to power stationary equipment.

Modern tractors use a power take-off shaft to provide rotary power to machinery
that may be stationary or pulled.

PLACE
 Of India’s total geographical area of 329 million-hectares (MHA), as much as 166
MHA is arable (2nd highest in the world). While the net sown area stands around
140-142 MHA, with increased cropping intensity, the gross cropped area is higher
at 180-189 MHA.

Tractors remain the crucial linkage in the commercialization of agricultural

products. For farming activities, there is no substitute to tractors. Increasing rural
prosperity and education levels plus spreading awareness of the benefits from
mechanization would also help speed up tractorisation. It is equally true even when
power or transportation needs of the farm are considered.

For BAJRANG TRACTOR the place in which the company will start its
business is
North
(Punjab, Haryana & Uttar Pradesh)
West
(Gujarat & Maharashtra)

PRICE

PRODUCT SEGMENT PRICE

NAME
HC 2521 25 Horse 425000/-
Power
HC 2522 29 Horse 440000/-
Power
HC 3221 35 Horse 725000/-
Power
HC 3444 37 Horse 740000/-
Power
 The above prices include 20% profit, which is due to increase the
sales of company, than it will be increased as per the marketing strategy.

PROMOTION

As the promotion part is considered, along with the huge advertising campaign that
the company is carrying out it will also carry out the basic promotional activities
necessary for boosting the sales of the product like keeping stalls in Melas (Fairs)
which will expose the companies whole range to all type of customers and
promotion can also be done by providing seasonal schemes to get the focus of the
customers in every season.

DISTRIBUTION

BAJRANG
COMPANY
↓
DEALERS
↓
CUSTOMERS

Initially BAJRANG TRACTORS will have the 150 dealers in the places of
sale than it will increase its dealer’s distribution network. If need arise the
company will also appoint some retail outlet in the village for penetration in
market.

PRODUCT LIFE CYCLE OF MAHINDRA TRACTOR

Product life cycle of tractor is of 3 years. To say that a product has a life
cycle asserts four things. Products have a limited life. Product sales pass through
distance stages, each posing different challenges, opportunities and problems to the
seller. Profits rise and fall at different stages of the product life cycle. Product
requires different marketing, financial, manufacturing, purchasing and human
resource strategies in each life cycle stage.

• INTRODUCTION STAGE

In tractor business name plays very important role till that time the name is not
known or not have place in market, tractor will not sale. In the introduction stage
focus is given on sales rather than profit. For the purpose of name people are made
much aware about launching of the product so as to get maximum number of
customers. Marketing strategies is based on the features of tractors. In this stage
mahindra tries to expand its market share.

• GROWTH STAGE

In growth stage focus is given on improving the product quality and adds new
product features and new policies so that it can enter new market segment. Which
will be CENTRAL (Madhya Pradesh & Rajasthan) EAST (Bihar, West Bengal,
Orissa & Assam) SOUTH (Andhra Pradesh, Tamil Nadu, Karnataka & Kerala)

Focus is also given on increasing distribution coverage and entering a new

distribution channels. Then advertising strategies will shift from product awareness
advertising to product-preference advertising.

• MATURITY STAGE

In this stage focus is given to expand number of brands users by

• Converting non-users into users.

• Entering new market segments.
 • Winning competitors customers.
• Convince current users to increase use of life insurance and also other types
of insurance so as to minimize their risks.

Market mix of product is also modified in this stage such as Price,

Distribution, Advertising, Sales promotion, Personal selling, Services.

SEGMENTATION & TARGETING

HP SEGMENTATION TARGETED
CUSTOMER
BELOW 30 NORTH UTTAR PRADESH
WEST GUJARAT
ABOVE 30 NORTH PUNJAB
NORTH HARYANA
WEST MAHARASHTRA

FACTORS CONSIDERING SEGEMENTATION AND TARGETING

 • Agriculture Income
• Income Level
• Soil (Fertility)
• Population
• Competitors
• Climate
• Infrastructure

ADVERTISING

For advertising main focus is on the National language to be used in advertising

tractor. As it is acceptable in rural area so preference is given also to the use of
regional languages. That means the local languages of the territory is used along
with the National language, as it will be easy for the people to accept it.

As for the rural markets the advertisements are basically done

by local as well as other major resources like T.V. & Radio. But mahindra
enforce much on the local resources available for the promotion of the product
along with major ones like T.V. Radio.

LOCAL RESOURCES OF ADVERTISING

 HOARDINGS

Hoardings are very common resource of advertising as they are very

flexible to be used at anywhere. Therefore mahindra like to place the company’s
hoardings on the areas like main roads, chowks, entrance of the shop etc and on
special occasions like

Melas, fairs, exhibitions the banners can be used as effective media of

advertising.

SHUTTER PAINTINGS

Mahindra focus on product and brand through using the shutters of the
dealers and retailers to be painted with the companies name and featuring the
product. So that the product is focused to each one passing by.

WALL PAINTINGS

Mahindra also use Wall Painting as, through wall paintings in main areas of
the villages or the territory. This will have an impact on the people about the
presence of the brand in the village.

SUMMARISATION

For over two decades, Mahindra Tractors is the undisputed leader of the Indian
tractor market, which is the largest tractor market in the world. A division of a US$
6 billion conglomerate, Mahindra & Mahindra, we began as a joint venture with
International Harvester. And with that began a new era in power, control and
reliability in farm equipment manufacturing. Today, with the largest manufacturing
set up in India, Mahindra Tractors is among the top three players in the global
market. And as we step into the 25th year of excellence, we continue on our
journey of cultivating golden harvests across the globe.

In the year 2003, Mahindra Tractors bagged the Deming Prize, a global honor
for quality practices. Three years later, the company was eligible to qualify for the
Japan Quality Medal, the highest honor for excellence in Total Quality
Management practices. In 2007, Mahindra Tractors became one of the 20
companies worldwide to receive this rare honor. Till date, we are the only tractor
company in the world to bag this prestigious award.

M&M has one tractor manufacturing plant in China, three assembly plants in the
United States and one at Brisbane, Australia. It has made strategic acquisitions
across the globe including Stokes Forgings (UK), Jeco Holding AG (Germany) and
Schoneweiss & Co GmbH (Germany). Its global subsidiaries include Mahindra
Europe Srl. based in Italy, Mahindra USA Inc. and Mahindra South Africa.

In the US market, Mahindra USA, a subsidiary company of Mahindra

tractors, sells more than 10,000 tractors annually. A nationwide network of over
300 dealers, total product support and prompt after sales service ensure that every
tractor functions for years without any hassles.

Mahindra Tractors, the 3rd largest tractor manufacturer in the world,

notched up yet another first in the tractor industry by delivering 1232 tractors on
Independence Day - August 15, 2007

CONCLUSION
 1) Mahindra Tractors have reached all four corners of the world. And they proved
themselves nothing less than the best. That explains the great demand for Mahindra
tractors across the United States, Australia, Chile, Serbia, Sri Lanka, Nepal,
Bangladesh, Iran, Syria and a major part of the African continent among many
more.

2) Majorities of respondents were aware of mahindra tractor.

3) Customers have to invest less on maintenance. The company introduced their

fuel-efficient machines into new models of tractor and transformed the way
Africans used tractors. Now with a single machine they could cultivate, plough,
harrow, haul and do a million other things at a low running cost and without
spending much on maintenance.

4) Many of the respondents used mahindra tractors.

5) Customers are satisfied with the after sales service of mahindra. Every mahindra
tractor is available with a spares package to take care of the initial fast moving
spare parts requirement.

6) It can be concluded from this study, that the marketing strategy adopted by the
mahindra tractors is good.

RECOMMENDATION
 • They should improve there manpower so that it will help in fast
servicing.

• They should provide some festival offer.

• They should make good installment facility so that every person can
afford.

• They should make separate desk for giving information about their
services.

PART - III

BIBILIOGRAPHY

Marketing Management- PHILIP KOTLER.

Marketing Management- J.C. GANDHI.

Principles of marketing – P.N. REDDY.

Company books and brochures

Website: www. MAHINDRA.COM

www.GOOGLE.COM

ANNEXURES

Dear Sir / Madam,

I am a student of business management course, under taking a study of the

marketing strategy of the mahindra tractors. The questionnaire is a part of my
project towards fulfilling the requirement of my study. I would be obliged, if you
could provide me some of your valuable time to answer the following question.

• Name:

• Address:

• Occupation

• Do you know about mahindra tractors?

Yes
No

5. Do you have any tractor?

Yes
No
 6. Which tractor you have?
Tractor Name:

7. Purpose of using tractor?

8. For how many years you are associated with mahindra tractors?
0 – 6 months
6 – 12 month
1 – 2 years
Above 2 years

9. Which brand of tractor you prefer

Mahindra
Eicher
HMT
Sonalika
Others

10. Do you know the competitive brand of mahindra tractor?

Yes
No

11. Are you happy with the service of mahindra tractors?

Yes
No

12. If not, then what are the factors you are not happy?

13. What are your suggestions for mahindra tractors to improve the services?

14. Are you planning to buy any new tractor?

Yes
No

15. Which model of tractor you like most?

16. How would you rate the mahindra tractor to its customers?
Good
Nice
Very good
Excellent

17. What are you’re over all opinion about mahindra tractors?

Thank you,

Signature