A PROJECT REPORT ON

MAHINDRA TRACTORS

Project report submitted in partial fulfillment of

requirements for the award of the degree of BACHELOR
OF BUSINESS ADMINISTRAION of Pt. Ravi Shankar
Shukla University, Raipur.

Under the guidance of: Submitted By:

Mr. Dinesh Kumar Soni Jagriti Soni

Coordinator Roll No. 722519

School of Management Studies 6th

Sem

1
 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 of
business Administration 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:Jagriti Soni

Roll no. 722519

BBA 6th Sem

2
 EXAMINER CERTIFICATION

The project report of

JAGRITI SONI

MAHINDRA TRACTORS

Is approved and is acceptable in quality and form.

Internal Examiner. External Examiner

3
 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 of Business
administration of Pt. Ravishankar Shukla University,
Raipur. JAGRITI SONI 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).

4
 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.

5
 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

6
 • LIMITATION OF STUDY

• RESEARCH AND METHODOLOGY

• INTRODUCTION TO MARKETING
STRATEGY

• MARKETING STRATEGY OF
MAHINDRA TRACTOR

• SUMMARISATION

• CONCLUSION

PART – III

• BIBILOGRAPHY

• ANNEXURES

7
 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,

8
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

9
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
10
& 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.
11
 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
12
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.

13
 • Chairman of Kema Services (International)
Private Ltd.

• Chairman, Tech Mahindra Foundation

• Chairman, Mahindra Holdings Limited

Mr. Anand G. Mahindra

14
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

15
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.

1) Core Purpose

Mr. Anand G. Mahindra SAYS

16
 ‘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.

2) 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

17
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

18
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.

3) 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

19
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.

20
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
21
 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

22
 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
23
 - Falkenroth

Engineering Services

• Mahindra Enfineering
• Engines Engineering Italy
• Mahindra Aerospace

Stampings

Steel

Ferrites

Contract Sourcing

Telematics

Composites

Castings
24
 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

25
The Management

1 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

26
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

27
 1 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
28
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.

29
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

30
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

31
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

32
• 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
33
• 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

1 Group Management Board

The Group Management Board comprises the

Vice Chairman & Managing Director, Presidents of the

34
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
35
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
36
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

37
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

38
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.

39
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
40
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

41
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%).

42
 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.

43
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
44
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).

45
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

46
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

47
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.

48
NETWORK
M&M has geared up its network to satisfy and delight
the customer by providing Timely and Quality service
near to the customer.
* Home
* Site Map
* News & Events
* Awards
* Press Releases
* Disclaimer

2) Nearest Service Centre

Service Centers in India

Ahmedabad
Bangalore
Bhopal
Bikaner
Bhubaneshwar
Chennai

49
50
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
51
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.

52
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.

53
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
54
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,
55
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

56
 1) To ascertain the existing marketing
strategies of mahindra tractors.
2) To structure the company profile for
mahindra tractors.
3) To understand various products and services
offered by mahindra tractor.
4) To ascertain the customer expectation
regarding the mahindra tractors.
5) To analyse the customer attitude and
perception towards mahindra tractors and
marketing strategies for mahindra tractors.
6) To suggest suitable marketing strategies for
mahindra strategies for mahindra tractors.

Research and methodology

Methodology can be defined as:

57
 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:

1) Field of study

The field of study has been restricted. The focus is to

conduct market survey on mahindra tractors.

2) 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.

58
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.

59
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.
60
 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
61
 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:-

1. Due to time constraints an extensive research

could not be undertaken therefore the sample size
was restricted to few peoples only.
62
 2. 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.

3. 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.

63
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

64
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
65
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.

I. Product strategy:-

Product strategy is a company’s plan for marketing its

products. It starts with product objective. Product

66
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

67
 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

68
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.

II. 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
69
 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

1. Market penetration policy :

70
 Some companies set a relatively low price
in order to stimulate the growth of the market and to
capture a large share of it.

2. 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.

3. 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.

4. Satisfy price policy :

Some companies describe their pricing
objectives as the achievement of a satisfactory rate of
71
 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.

III. 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
72
 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:-

1. Manufacturer – consumer (direct channel)

2. Manufacturer – retailer – ultimate customer
3. Manufacturer – whole seller – retailer –
consumer
4. Manufacturer – agent – whole seller – retailer

– consumer
5. Manufacturer – whole seller – consumer

IV. Promotion strategy

Promotion strategy aims at communicating, convening

and competing against rivals. It is evaluated against
73
company objectives, promotion objective and the rest of
the marketing mix. Promotion strategy deals with the
following decisions.

1. The blend of promotional activities (advertising,

publicity, personnel selling and sells promotion.)

2. The amount allocated for the various forms of

promotion particularly to the advertising media such

as press, radio, television etc.
3. The kind of promotion to be used.

A. 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

74
 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
75
 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.

76
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
77
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
78
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
79
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.
80
 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
BAJRANGBALE ( 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.

81
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

82
DESIGN

83
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.

84
UNIQUE SELLING PROPOSITION

 Superior performing tractors at competitive prices.

 High flexibility to farmers to perform all types of

agricultural operations in any terrain.

85
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.
86
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
87
 (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

88
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.

89
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.

1) 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.

90
Marketing strategies is based on the features of tractors.
In this stage mahindra tries to expand its market share.

2) 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.

3) MATURITY STAGE

91
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 SEGMENTATIO TARGETED
N CUSTOMER
BELOW 30 NORTH UTTAR PRADESH
WEST GUJARAT
ABOVE 30 NORTH PUNJAB
NORTH HARYANA
WEST MAHARASHTRA

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FACTORS CONSIDERING SEGEMENTATION
AND TARGETING

 Agriculture Income
 Income Level
 Soil (Fertility)
 Population
 Competitors
 Climate
 Infrastructure
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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.

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 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

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 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
96
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,

97
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

98
 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.

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

RECOMMENDATION

1. They should improve there manpower so

that it will help in fast servicing.

2. They should provide some festival offer.

3. They should make good installment facility

so that every person can afford.

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 4. 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.

101
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.

1. Name:
102
2. Address:

3. Occupation

4. 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
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 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?
104
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?

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Thank you,

Signature

106