TRACTOR LTD

Marketing Plan for Tractor

12/6/2012

Presented by Group 2
Ankush Rawat A 06 Arpit Khurana A 07 Asish Senapati A 08 Divyansh Bakshi A 09 Bala Madanu A 10

Table of Contents 1. 2. Executive Summary ...................................................................................................................... 4 Situational Analysis ...................................................................................................................... 4 Customers ................................................................................................................................................. 4 Competitors .............................................................................................................................................. 5 Company ................................................................................................................................................... 5 Context ...................................................................................................................................................... 6 3. Market Opportunity and Issues .................................................................................................... 6 Indian agricultural sector .......................................................................................................................... 6 Indian Tractor Industry - Key Highlights.................................................................................................... 6 Tractor Market .......................................................................................................................................... 7 Indian tractor market: Segment-wise sales .............................................................................................. 7 Utilization of Tractors in Indian Farming .................................................................................................. 7 Division of Farming land in India ............................................................................................................... 8 4. Company Objectives ..................................................................................................................... 8 Sales Objective .......................................................................................................................................... 8 Dealer Network Objective......................................................................................................................... 9 Demand Forecast .................................................................................................................................... 10 Outlook for the year FY12-14.................................................................................................................. 10 Tractor Sales in various segments........................................................................................................... 11 Industry Sales forecast ............................................................................................................................ 11 Break even Analysis ................................................................................................................................ 12 5. 6. 7. 8. Marketing Strategy..................................................................................................................... 12 Target Markets ........................................................................................................................... 13 Positioning ................................................................................................................................. 13 Marketing Mix 4 P Analysis ...................................................................................................... 13 Product .................................................................................................................................................... 13 Price ........................................................................................................................................................ 14 Place: ....................................................................................................................................................... 14 Promotion ............................................................................................................................................... 15 EXHIBITS ............................................................................................................................................ 16

Exhibit 1: Interaction with Dealer ........................................................................................................... 16 Exhibit 2: Interaction with Dealer ........................................................................................................... 17 Exhibit 3: Interaction with Dealer ........................................................................................................... 18 Exhibit 4: Interaction with Dealer ........................................................................................................... 19 Exhibit 5: Interaction with Dealer ........................................................................................................... 20 Exhibit 6: Product and Price analysis of competition ............................................................................. 21 Exhibit 7: Estimation of Investment in Manufacturing Plant .................................................................. 23 Exhibit 8: Prospective Locations to establish Dealer network in South Zone......................................... 24

1. Executive Summary
Tractors Ltd. aims to capture the Indian tractor market which has huge potential but very low penetration levels. The potential demand for tractors 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 availability of irrigation facilities determines the degree of farm mechanization and, consequently, affects the demand for tractors in any particular region. States with a higher irrigated area have a greater penetration level of tractors. The potential in southern and western States comes from an improvement in irrigation facilities and increasing mechanization of agriculture. The southern and western States of Gujarat, Maharashtra and Madhya Pradesh are likely to be the most attractive markets for tractors in the future. Tractors Ltd. will initially establish itself in the Southern Region. This is due to the below factors 1. 2. 3. 4. 5. Low levels of penetration of Tractors in Farming Healthy expected demand Stable monsoon outlook Increase in area under irrigation and Irrigation Facilities Increasing availability of financing options

Tractors ltd. will tie with major dealers in Southern region. We plan to set up the Corporate office and manufacturing plant in Chennais SEZ. Our tractors will be marketed under the brand name Dabaang. Tractors Ltd. aims to become one of the leading tractor company in volumes in the >40 HP tractors and <20 HP segments in the next 10 years. We will be launching three different models in the >40 HP segment during the first year and then extend our product line in this segment in the 2nd and 3rd years. In our 4th year of operations, we will tap into the vast potential available in marginal farmers category by introducing <20 HP segment tractors.

2. Situational Analysis
Customers
We are planning to launch variants of >40 hp tractors and focus on the South Indian market. We would be targeting the farmers in the states of Tamil Nadu, AP and Maharashtra because these states are more or less untapped by our major competitors. We believe there is a huge scope for tractors as farm equipments as well as construction equipment in these states because of the following factors: More farmers are opting for multiple cropping over last decade. Country's net cropped area had remained virtually stagnant while gross cropped area increased by about 4.7%. This indicates the increased popularity of multiple cropping. Multiple cropping requires deeper tilling and that is where our higher hp tractors would be needed.

95% of tractor sales are on credit. Credit is extended by commercial banks, state land development banks, regional rural banks and micro-financing bodies. Irrigation facilities reduce reliance on the monsoon and allow for quick yielding varieties of food -grain .This reduces the cropping cycle to 3-4 months from the traditional 5-6 months. Cost of tractors in India is the cheapest in world .The cost of a finished tractor here is as much as the cost of gear box in developed countries. Hence there exists tremendous scope for exports. Lately it is visualized that higher hp segment has the maximum growth potential Higher horse powered tractors will be the future requirement with the government intention to encourage contract farming through the leasing in and leasing out of farm lands

Competitors
Mahindra holds the largest share in the tractor market. Other major competitors are FORCE, TAFE, John Deere, HMT and Eicher in 40 to 50 HP segment. After a detailed analysis we have found that our major competitive advantage lies in the features which we provide in our product which is in three models with different HP, higher capacity to lift from lower hitch point, higher fuel tank capacity and oil immersed disk brakes. Our Unique selling proposition for the >40 HP segment will be improved performance with reduced cost. With some established players already in the market and brand loyalty in the rural segment we will face some tough challenges in the initial years to get the market share and efforts are to be made to market the product properly in the rural segment.

Company
We are planning to set up a plant in the outskirts of Chennai with a total investment of 20-25 crores. The total capacity which the plant can produce is 12000 units. The location of Chennai was selected keeping in mind two factors. The Tamil Nadu govt. is keen on making the state the automobile hub and has agreed to allocate land at a low cost. It has also agreed to give us an initial tax exemption for the first 5 years. The close vicinity to the port will give us a strategic advantage in the long run when we start to export since there is huge scope for export of tractors.

The capacity of 12000 units is decided keeping the long run in mind. We intend to produce around 4000 units in the first year at 44.4% capacity and 7000 units in the second year at 77.78% capacity. We intend to improve on our operation and expand our production to 10000 units in the third year at 83.33% capacity. We intend to tap 3 to 4% of market share by the end of the first year and extend it to 6-7% by the end of second year and subsequently 9-10% by the end of the third year. The tractor market is highly fragmented expect for M & M which has around 45% Market share and Tafe which has 25% market share. The rest 30% market share is divided among various players. Hence, a market share of 10% by the end of 3rd year will make us one of the leading player in tractors market. We have also identified the distributor network and will be dealing with 350 dealers during the first year. These dealers will be

dealing with the dealer network which will be distributed evenly across the states we plan to operate. We plan to bolster our distributor network to 550 by the second year and 700 by the third year.

Context
India's gross cropped area is next only to United States of America and Russia and along with fragmented land holdings has helped India to become the largest tractor market in the world. But it drops to eight position in terms of total tractor in use in the country when compared to international figures, only 3% of total tractors used all over the world . It is to be noted that while the overall automobile industry is facing recession the tractor industry is growing at 11%.About 20% of world tractor production is carried out in our country only. In terms of volume, India is one of the largest tractor markets in the world, besides China and the USA. The prospects of the domestic industry are highly linked to monsoon rains, which remain a key factor in determining agricultural production. Better irrigated States like Punjab and Haryana have a high tractor density (over 100 per 1,000 hectares), while States like Rajasthan, Gujarat, Himachal, Tamil Nadu, Maharashtra, AndhraPradesh, MP and West Bengal have low levels of tractor penetrationa pointer to the substantial growth potential that the latter set offers.

3. Market Opportunity and Issues

Indian agricultural sector
Agricultures contributes to Indias total GDP is declining in recent years and is currently at ~18%. Agriculture in India is currently growing at an average rate of 2.8%. But, Agriculture has always the key sector of Indias economy, and will continue to be the critical sector for the growth of Indian Economy. 68% Indian live in villages & are highly dependent on agriculture & allied activities. Agriculture accounts for ~10% of Indias exports.

Indian Tractor Industry - Key Highlights

The Indian Tractor Industry has developed over the years to become the largest in the world. Starting in 1960 s it had reached just about 50,000 units in the early 1980s, but today the size Indian Tractor market has grown to over 600,000 units. Increasing Tractors are being used for haulage and non-agricultural applications as well. The opportunities are still huge considering the low farm mechanization levels in the country, when compared to other developed economies across the world. After a splendid performance during the last two to three years, the Indian tractor industry is believed to head for a slowdown, which we believe is a myth. Increasing focus on Farm mechanization

Tractor Market
Tractor market has grown at a CAGR of 12.8%, in the last five years Sales, steady since FY07, should increase even more (as witnessed in FY12) due to rising farm income and rural growth. Demand outlook for FY12-14 remains positive. We expect the industry to grow ~11-12% YoY Tractor financing continues to enjoy priority lending status, thus attracting lower interest rates and higher participation by banks. The greater participation by NBFCs and private banks will further boost sales

Indian tractor market: Segment-wise sales

India has been predominantly a 31-40 HP market, ~42% of the industry. However, during the last 5 years, there has been a shift to higher hp tractors. The share of 40+ HP tractors has gone up from 29% in FY05 to 44% in FY11, clearly indicating the multi-use of tractors. Combined share of tractors above 40 hp has more than doubled over the last ten years

Utilization of Tractors in Indian Farming

Agricultural use of tractors has been steadily increasing over the past few decades owing to green revolution and its focus in Five Year Plans by Govt. of India. Percentage share of Tractors use in Indian Agriculture Year 1971-72 1981-82 1991-92 2001-02 2005-06 2009-10 Tractors 8.45% 18.46% 26.14% 36.77% 38.45% 41.67%

With modernization of agricultural equipment, better irrigation facitlities, reduced agricultural labour and due to urbanization, there will be an increased utilization of agricultural equipment, especially tractors.

Division of Farming land in India

As we can clearly see, the marginal and small farmers undertake more than 80% of the agricultural activity in India.

Large Farmers
> 20 acres

Medium Farmers 5 - 20 acres 17% Small Farmers 2.5 - 5 acres 19% Marginal Farmers < 2.5 acres 63%
Figure: Classification of farmers based on the agricultural land they hold The penetration levels are as follows: 1. Large Farmers 46.2 % 2. Medium Farmers 21.9% 3. Small & Marginal Farmers 1.2% This shows that a lot of market is still untapped and this provides a huge potential for the tractor industry.

1%

4. Company Objectives
The companys objectives are outlined below based on the demand and sales forecast.

Sales Objective
FY 13 Total Units (>40 HP) 4000 FY 14 7000 FY 15 10000

Note: The sales objective has been arrived on based on the industry growth rate (sales volume), tractors ltd. targeted market share and the plant capacity. During the fourth year of operations, we plan to enter the <20 HP market segment as it offers huge untapped potential. The majority of Indian farmers i.e. 63% are marginal farmers (own <2.5 acres of land). These tractors will be primarily be targeted at providing value for money. The delay in entering this segment during our first three years of operations is because of the below reasons: Intense competition and Tractors Ltd being a new entrant in tractors market

Although <20 HP segment offers high potential, it is a segment where most of the top brands have been very keen to enter Major contributing factor to purchasing tractors (based on our survey, Exhibits 1-5) is the word of mouth and dealers preference of brand. We plan to build a brand for ourselves in the initial 3 years and then this will provide a platform for Tractors Ltd to enter this niche market segment.

Dealer Network Objective

FY 13 Dealer (No of dealers) 350 FY 14 550 FY 15 700

Note: The above dealer networks objective have been set based on the below data: No of dealers(tractors) of M & M in India 1800 + No of dealers(tractors) of Tafe in India 1200 + The below map indicates the tentative location identified to achieve the dealer network objectives. The detailed list of prospective locations identified in mentioned in Exhibit 8.

Demand Forecast
The demand-side economics in the tractor industry however continue to find favor from structural and long-term drivers such as Support from the Government of India (GOI) towards rural development and agri-mechanisation, Scarcity of farm labor especially during the sowing season Increase in credit flow to agriculture Growth in high and low power segments, low to moderate penetration, shortening replacement cycle; besides healthy exports. Improvement in Tractor Financing due to higher farm incomes, govt. schemes like NAREGA

Note: The above graphs show the spending pattern and increasing credits flows to agriculture sector.

Outlook for the year FY12-14

Demand outlook for FY12-14 remains positive. We expect the industry to grow at atleast CAGR of 9% to 10% Farm income growth continues to be strong and acts as a strong catalyst for demand Tractor financing continues to enjoy priority lending status, thus attracting lower interest rates and higher participation by banks The greater participation by NBFCs and private banks will further boost sales The meteorological department has predicted a regular monsoon for this year. Although rainfall does not directly affect tractor sales, availability of water will definitely lead to higher productivity, which will boost tractor sales Successful implementation of government schemes (NREGA) and higher minimum support prices will put more money directly in the farmers hands, driving tractor demand

Tractor Sales in various segments

Sales in Yr 2000
19%1% 26% HP < 20 HP 21 - 30 HP 31 - 40 55% HP > 40

Sales in Yr 2005
29% 1% 20% HP < 20 HP 21 - 30 HP 31 - 40 51% HP > 40

Sales in Yr 2010
1% 13% 44% 42% HP < 20 HP 21 - 30 HP 31 - 40 HP > 40

*Sales in Yr 2015
2% 8% 55% 35% HP < 20 HP 21 - 30 HP 31 - 40 HP > 40

* Projected Sales Figures in various segments based on trend analysis and other parameters.

Industry Sales forecast

Tractor Sales Data over the past few years
FY 06 South East West Total 73813 26655 76449 FY 07 90324 31754 92088 FY 08 78464 27568 79978 FY 09 66712 33813 78288 FY 10 74881 55557 FY 11 94046 61733 FY 12 100398 62816 CAGR (7 yrs) 8.00% 4.49% 13.03% 12.81% 9.04% CAGR ( 4 yrs) 11.95% 10.76% 16.75% 22.75% 15.22% FY 13 FY 14 FY 15

North 113062 137250 115423 123372 167878 168800 193816

209328 226082 244177 104908 109621 114545 70999 80249 90703 200468 226140 255101 585430 638363 696083

101854 155778 177709

292908 352827 302948 304622 402586 482286 536886

Break even Analysis

December 6, 2012 Fixed Costs Manufacturing Plant Set Up Production costs: Direct materials Direct labor Indirect production costs Selling expenses: Sales salaries & commissions Advertising Miscellaneous selling expense General expenses: Office salaries Supplies Miscellaneous general expense Totals Sales and Income data: Avg Selling price per unit Target operating income for the period Results Contribution margin per unit Unit sales at break-even point 200000000 200000.00 1000000.00 50000.00 5000000.00 Variable Costs

150000.00 20000000.00 40000000.00 2500000.00 5000000.00 1000000.00 150000.00 268800000.00

50.00 6250050.00

506670.00 10000000

56670.00 4566

Based on the above analysis, we expect to break even during our 2nd year of operations. Note: The above data is taken from analyzing various investments of companies in setting up tractor manufacturing factories (Exhibit 7) and also from analysis the Balance Sheet of M & M.

5. Marketing Strategy
Maintaining Customer focus while providing value for money Increasing operational efficiency by reducing costs and increasing distribution network

6. Target Markets
The target segment chosen by Tractors Ltd, is > 40 HP segment due increasing trend in sales in tractors >40 HP segment. The following factors have been considered while selecting the target market. Historical growth and future potential Geographical factors like irrigation facilities, nature of soil etc. Supply and demand forecasts Economical factors like availability of skilled labour, urbanization, farm incomes etc.

During the fourth year of operations, we plan to enter the < 20 HP market segment as it offers huge untapped potential. The majority of Indian farmers i.e. 63% are marginal farmers (own <2.5 acres of land). These tractors will be primarily be targeted at providing value for money.

7. Positioning
Tractors Ltd. will position itself as a brand which stands for strength and pride of rural India.

8. Marketing Mix 4 P Analysis

Product
A tractor is a simple open vehicle with two very large driving wheels on an axle below and the engine in front of the driver with two steerable wheels below the engine compartment. It is used for pulling or pushing agricultural machinery or trailers for plowing, tilling, disking, harrowing, planting and similar tasks. We are offering three models of tractors in 42, 45 and 50 HP segment. After analyzing the features offered in these segments we are offering better features in all the three segments which are as shown below :Model name 1 HP Engine Type Gears Capacity to lift from lower hitch point 1400 Brakes Fuel tank capacity 60

42

45

50

4- stroke, 3 cylinder direct injection 4- stroke, 3 cylinder direct injection 4- stroke, 3 cylinder direct injection

8 forward 2 reverse 8 forward 2 reverse 8 forward 4 reverse

Oil immersed disk brakes Oil immersed disk brakes Oil immersed disk brakes

1500

60

1700

60

Our larger fuel tank capacity will enable the users to use the tractor for a longer duration without the problem of refueling it at shorter spans. We understand that some villages are very remote and the nearest

fuel station is miles away. A higher fuel tank will help these customers of ours. The effective design of our tractors will make sure that the fuel consumption is relatively low and maintenance cost is also low adding to the cost savings over and above the savings that we offer through the lower price. We are offering higher capacity to lift from the lower hitch point which is a very important attribute of a tractor. The above features along with higher HP this capacity makes our tractor a very efficient and powerful vehicle.

Price
The detailed price analysis of competition is mentioned in the Exhibit 6. The summary is as below: Price for Price for Price for Price for Model HP Engine Type Mahindra Our Price Range name Tafe Eicher Sonalika Swaraj
1 42 4- stroke, 3 cylinder direct injection 4- stroke, 3 cylinder direct injection 4- stroke, 3 cylinder direct injection
` 475000 ` 400000 ` 415000 ` 410000 ` 415000

45

` 500000

` 425000

` 500000

` 450000

` 490000

50

` 590000

` 600000

` 630000

` 625000

` 610000

Place:
The company will follow a distributor/dealer centered model to reach its customers but will also maintain a constructive relationship with the end customers to ensure that the sales are driven more efficiently during the initial few years to counter competition. This is because most of the competitors strictly a distributor centered model with a push strategy. This will help the company to understand the customer requirements in larger detail and help in word of mouth marketing of the tractors. The dealers locations identified in Exhibit 8 are chosen based on the below 1. 2. 3. 4. Proximity to farming communities Existing dealers Well connected distribution networks and Urbanization levels

Company

Distributors

Customers

Promotion
Tractor sales in India is hugely influenced and promoted by word of mouth publicity. Due to less penetration of internet and lower literacy levels among the target market, promotion of tractor as a product can be tricky. As a new player entering the market, a major tool in promoting the product can be to incentivize the dealers. Most of consumers, buy the product after the recommendation of the distributor. Based on our interaction with various dealers (Exhibits 1-5) we propose the below activities Incentivizing the distributor can hence help the company in creating a dent in the market and forming a customer base Television and Radio, where local celebrities can endorse the product and help in connecting with the local customer Advertisements in the regional newspaper and magazines can also help in the promotion of the product in a substantial way Besides this, a major technique used in the promotion can be the stalls presented in Local Village fairs (mela) where the potential customer can get a first-hand experience of the product. Setting up stalls in these fairs will also expose the entire product range to all type of customers A tug of war of tractors can be used to display the strength and robustness of the tractor Promotion can also be done by providing seasonal schemes to get the focus of the customer in every season

EXHIBITS
Exhibit 1: Interaction with Dealer

Questionnaire for Data Collection

Name Company Contact No Email id Person Interacted Sno 1 2 3 4 5 6 7 8 9 Mr. Parameshvaram SRI PADMAVATHI AUTOMOTIVE 0863-2239247 padmavathiautomotives_guntur@yahoo.com Bala Madanu Questions Which all tractor brands you deal with How are the sales prospects What parameters you look into when partnering with a company No of units sold in a quarter(Approx) What margins do you get on each sale Any incentive schemes by current OEMs Which parameter drives your decision while partnering Demography of customer Product knowledge of customer Response Tafe, Eicher, MASSEY FERGUSON [MF] Medium Brand, Margin, Payment terms, sales & promotional activities 10 - 15 2 - 3 % Net profit No Profit Margin, Payment terms, stocking schemes Mid size farmers very basic knowledge. Usually from kin reference & my suggestions quality, life of the vehicle, HP,price, capacity, fuel efficiency,warranty & service suport, brand, discount schemes quality, life of the vehicle,warranty & service suport, dealer's choice village fairs,word of mouth NIL

10 11 12 13

Parameters evaluated by customer while buying Major decision making parameter Promotional activities Other aspects which were discussed

Exhibit 2: Interaction with Dealer

Questionnaire for Data Collection

Name Company Contact No Email id Person Interacted Sno 1 2 Mr. Ram Kishore Damyanthi AUTOMOTIVE 9716147923 ramkishore@yahoo.com Ankush Rawat Questions Which all tractor brands you deal with How are the sales prospects What parameters you look into when partnering with a company No of units sold in a quarter(Approx) What margins do you get on each sale Any incentive schemes by current OEMs Which parameter drives your decision while partnering Demography of customer Product knowledge of customer Parameters evaluated by customer while buying Major decision making parameter Promotional activities Other aspects which were discussed Answer / Response Swaraj, Eicher, MASSEY FERGUSON [MF] Low

3 4 5 6

Margin, sales & promotional activities 08-10 3 % Net profit No

7 8 9 10 11 12 13

Profit Margin, Payment terms, large Scale Extensive Knowledge. kin reference & my suggestions quality, life of the vehicle, HP, ,warranty & service suport, brand quality, life of the vehicle,warranty & service support, dealer's choice TV,word of mouth

Exhibit 3: Interaction with Dealer

Questionnaire for Data Collection

Name Company Contact No Email id Person Interacted Sno 1 2 Mr. Rangarajan Ananya AUTOMOTIVE 080-2258164 ananyaautomotives@gmail.com Ankush Rawat Questions Which all tractor brands you deal with How are the sales prospects What parameters you look into when partnering with a company No of units sold in a quarter(Approx) What margins do you get on each sale Any incentive schemes by current OEMs Which parameter drives your decision while partnering Demography of customer Product knowledge of customer Parameters evaluated by customer while buying Major decision making parameter Promotional activities Other aspects which were discussed Answer / Response Tafe, Eicher, Swaraj Medium Brand, Margin, Support, sales & promotional activities, Spare services 12 - 15 2 - 3 % Net profit No

3 4 5 6

7 8 9

Profit Margin, Payment terms, brand Mid size-high farmers basic-medium knowledge. Dealers suggestion matters quality, HP,price, capacity, fuel efficiency,warranty & service suport, brand quality, life of the vehicle,warranty & service suport word of mouth, news papers,Tv

10 11 12 13

Exhibit 4: Interaction with Dealer

Questionnaire for Data Collection

Name Company Contact No Email id Person Interacted Sno 1 2 Mr. Jayashankaran Jayalakshmi Tractors 080-2119547 jayalakshmitractors@yahoo.com Ankush Rawat Questions Which all tractor brands you deal with How are the sales prospects What parameters you look into when partnering with a company No of units sold in a quarter(Approx) What margins do you get on each sale Any incentive schemes by current OEMs Which parameter drives your decision while partnering Demography of customer Product knowledge of customer Parameters evaluated by customer while buying Answer / Response Tafe, Eicher Medium-Low Brand, Margin, Payment terms, sales & promotional activities,After sales 9-11 2 % Net profit No Profit Margin, Payment terms, stocking schemes Small-Mid size farmers Good knowledge. Quality, HP,price, fuel efficiency,warranty & service suport, discount schemes quality, life of the vehicle,warranty & service suport, dealer's choice word of mouth,Brochures They do not provide services to feeder towns

3 4 5 6

7 8 9

10

11 12

Major decision making parameter Promotional activities

13

Other aspects which were discussed

Exhibit 5: Interaction with Dealer

Questionnaire for Data Collection

Name Company Contact No Email id Person Interacted Sno 1 2 3 4 5 6 7 8 Mr. SHYAM M/S SHYAMBABA MOTORS AND TRACTORS 07109-278389 shyambabamotorsandtractors@gmail.com Bala Madanu Questions Which all tractor brands you deal with How are the sales prospects What parameters you look into when partnering with a company No of units sold in a quarter(Approx) What margins do you get on each sale Any incentive schemes by current OEMs Which parameter drives your decision while partnering Demography of customer Answer / Response Tafe, M & M Good. Both Agricultural and Industrial Customers Margin, Payment terms 20-25 3% Net Yes. Better margins if target exceed 150% Profit Margin, Payment terms, stocking schemes Mid size farmers, Infrastructure companies Farmers have very basic knowledge while company personnel usually negotiate to a larger extent quality, life of the vehicle, HP,price, capacity, fuel efficiency,warranty & service suport, brand, discount schemes quality, life of the vehicle,warranty & service suport, dealer's choice village fairs,relationship selling, word of mouth, seasonal discounts NIL

Product knowledge of customer Parameters evaluated by customer while buying Major decision making parameter Promotional activities Other aspects which were discussed

10 11 12 13

Exhibit 6: Product and Price analysis of competition

S.n o.
1

Company/ Brand
Tafe

Tractor Model
MF 7250 DI (Power Drive)

Horse Power (HP)

47 HP

Other Imp features

Tractor

Price Range/ MRP

EngineSimpson S 325 Engine TIII A Cylinders3 Cubic Capacity2500 cc Fuel Injection PumpRotary EngineSimpson S325 Engine TIII A Cylinders3 Cubic Capacity2500 cc Fuel Injection PumpRotary EngineS 325.1 Simpson engine TIII A Cylinders3 Cubic Capacity2500 cc Fuel Injection PumpInline EngineSimpson S325 Engine TIII A Cylinders3 Cubic Capacity2500 cc Fuel Injection PumpRotary EngineSimpson SJ327 Engine TIII A Cylinders3 Cubic Capacity2700 cc Fuel Injection PumpInline Cylinders 4 Cubic capacity 2500 cc radial tires and Side shift gears Cylinders 4 forward speed of up to 30 kmph unique surge tank fuel efficient

RS 535000

MF 245 DI Mahashakti

49HP

RS 565000

F 241 DI Mahashakti

42HP

Rs475000

MF 5245 DI Planetary Drive

47HP

Rs 525000

MF 5245 DI Maha Mahaa

50HP

Rs 590000

Mahindra swaraj

Arjun 445 DI

40HP

Rs 400000

Bhoomiputra 475DI

45HP

Rs 425000

Sarpanch 575

50HP

Tubo charged Cylinder 3 mesh transmission multi-disc brakes

Rs 600000

Eicher

Eicher 380 Super DI

40HP

Four stroke, water cooled, direct injection diesel engine Cylinder 3 Cubic capacity 2500 Four stroke, water cooled, direct injection diesel engine Cylinder 3 Cubic capacity 2500 Four stroke, air cooled, direct injection diesel engine Cylinder 3 Cubic capacity 2945

RS 415000

Eicher 480 Super DI

45HP

Rs 500000

Eicher 485 Super DI

45HP

Rs 587000

Eicher 5150 Super Di

50HP

Four stroke, water cooled, direct injection diesel engine Cylinder 3 Cubic capacity 2500

Rs 630000

Exhibit 7: Estimation of Investment in Manufacturing Plant

Exhibit 8: Prospective Locations to establish Dealer network in South Zone

Sno
1 2 3 4 5 6 7 8 9 10 11 12 13 13 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

Location
Viluppuram Vadalur, Cuddalore Theni Tiruchirappalli Thanjavur Pudukkottai Pollachi, Coimbatore Karaikkudi, Sivaganga Mayiladuthurai Kumbakonam, Thanjavur Madurai Vellore Kanchipuram Erode Harur, Dharmapuri Dindigul Cuddalore Coimbatore Chennai Ariyalur, Perambalur Hosur, Krisnagiri Shikrapur, Pune Satara Sangli Washim Wani, Yavatmal Palus, Sangli Pahur, Jalgaon Kolhapur, Ombare, Solapur Osmanabad Solapur Baramati Koregaon Karmala Beed Shrirampur, Ahmednagar

State

Sno
76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112

Location
Rayagada Nuapada Nayagarh Jeypore Khordha Bilaspur Ganjam Bhubaneshwar Bhadrak Baripada, Mayurbhanj Balangir Bargarh Balasore, Baleswar Angul Vizianagaram Bobbili, Vizianagaram Bhadrachalam Srisailam Doranala Macherla Suryapet, Nalgonda Jangaon, Warangal Sircilla, Karimnagar Bhongir, Nalgonda Mancherial, Adilabad Kaghaznagar, Adilabad Adoni Rayadurg, Anantapur Kavali Nellore Gudur Chittoor Tirupati Proddutur, Kadapa Narasaraopet Chirala, Prakasam Tenali, Guntur

State

Orissa

Tamil Nadu

AP

Maharastra

38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75

Manmad, Nashik Shevgaon Kalwan, Nashik Sakri, Dhule Dhule Malegaon Nanded Jalgaon Thane Wardha Akola Amravati Nashik Aurangabad Ahmednagar Tumkur Tiptur Shimoga Kolar Kadur Raichur Mysore Manvi Hubli Hospet Haveri Hassan Gokak Gulbarga Gangawati Davanagere Chitradurga Chikballapu Chikmagalur Bijapur Bidar, Bellary Belgaum

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146

Eluru, West Godavari Nuzividu, Krishna Tuni, East Godavari Nagpur, Maharashtra Adilabad, AP Nirmal, Adilabad, AP Kamareddy, Nizamabad, AP Sangareddy, Medak, AP Miryalaguda, Nalgonda, AP Nandyal Kadapa Kurnool Guntakal, Anantapur Mahbubnaga Mumbai, Maharashtra Pune, Maharashtra Anantapur Ongole, Prakasam Rajahmundry AP Kakinada, AP Khammam Nalgonda Siddipet Nizamabad, Hyderabad Warangal Karimnagar Vijayawada Guntur Srikakulam Vishakhapatnam Ranga Reddy Anakapalle Vizianagaram

Karnataka