A STUDY ON RURAL PURCHASE BEHAVIOR

TOWARDS TRACTORS IN JALANDHAR

Submitted to: Dr. Anand thakur
SUNNY KUMAR PANDEY
Registration no: 11004178
Roll no: RQ1002B24

CERTIFICATE
This is to certify that SUNNY KUMAR PANDEY bearing
Registration no. 11004178, have completed dissertation / capstone project
titled A STUDY ON RURAL PURCHASE BEHAVIOR TOWARDS
TRACTORS IN JALANDHAR under my guidance and supervision. To the
best of my knowledge, the present work is the result of their original
investigation and study. No part of the dissertation has ever been
submitted for any other degree at any University.
The dissertation is fit for submission and the partial fulfillment of the
Conditions for the award of.........................

Signature and Name of the Research Supervisor

Designation
School
Lovely Professional University
Phagwara, Punjab.

Date :

ACKNOWLEDGEMENT

I feel immense pleasure to give the credit of my project work not only to one individual as
this work is integrated effort of all those who concerned with it. I want to owe my thanks to
all those individuals who guided me to move on the track.

This report entitled A STUDY ON RURAL PURCHASE BEHAVIOR TOWARDS

TRACTORS IN JALANDHAR is the outcome of my CAPSTONE PROJECT at
JALANDHAR.

I sincerely express my gratitude and lot of thanks to Dr. ANAND THAKUR and to the other
faculties for helping me in completing my project work and making it a great success.

Last but not least, I would thank all my friends, faculty members and all respondents who
rendered their precious time for contributing their skills and to fill the questionnaire, which
made my project more appealing and attractive.

SUNNY PANDEY

PREFACE
As MBA degree require equal attention practical as well as theoretical aspect of the business,
various problems are to be dealt with in these courses, that is why research programs are
there to give deep as well as thorough knowledge of the subjects. The way to aware the
people is marketing.

During my project work I observed all the aspects of tractor and gathered all the necessary
information regarding it. I was given thorough knowledge about each and every aspect of the
Tractors.

My project entitled A STUDY ON RURAL PURCHASE BEHAVIOR TOWARDS

TRACTORS IN JALANDHAR sincere effort has been made to bring about the lucid facts
it is hoped that this report meets the given expectations and various requirements of the
research.

In the first phase introduction to the topic is given. After that a market research is performed
with a sample size of 100 people. The research study was limited to Jalandhar city. Here, in
my survey, I have contacted the respondents through personal interviews only.

The objective of the research is to study the customer awareness regarding Tractors and to
know the different parameters that influence the customer in purchasing the tractor.

In the last phase of the report findings, suggestions and conclusions have been drawn. The
Rs 7,000-crore Indian tractor industry has been growing sluggishly at two per cent per annum
for some years now, and the trend is likely to continue this year. Industry sources attribute
this to several factors. But the most important is the general slowdown of the rural economy.

INDEX
CHAPTER

TOPIC

PAGE NUMBER

1.1 INTRODUCTION

1.1.1 THE BLACK BOX MODEL

1.1.2 UNDERSTANDING THE RURAL CUSTOMER

1.2 TRACTOR INDUSTRY IN INDIA

REVIEW OF LITERATURE

OBJECTIVE

12

NEED AND SCOPE OF THE STUDY

13

RESEARCH METHODOLOGY

14

DISCRIPTION OF QUESTIONNAIRE

17

DATA ANALYSIS AND INTERPRETATION

18

FINDINGS OF THE STUDY

34

SUGGESTIONS

36

10

LIMITATIONS OF THE STUDY

37

11

CONCLUSION

38

12

REFERENCES

42

13

APPENDIX

44

CHAPTER 1
1.1 INTRODUCTION
Consumer behavior is the study of when, why, how, and where people do or do not buy
a product.

It

blends

elements

from psychology, sociology, social

anthropology and economics. It attempts to understand the buyer decision making process,
both individually and in groups. It studies characteristics of individual consumers such
as demographics and behavioral variables in an attempt to understand people's wants. It
also tries to assess influences on the consumer from groups such as family, friends,
reference groups, and society in general.

Customer behavior study is based on consumer buying behavior, with the customer playing
the three distinct roles of user, payer and buyer. Relationship marketing is an influential
asset for customer behavior analysis as it has a keen interest in the re-discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or
buyer. A greater importance is also placed on consumer retention, customer relationship
management, personalization, customization and one-to-one marketing. Social functions
can be categorized into social choice and welfare functions.

Each method for vote counting is assumed as social function but if Arrows possibility
theorem is used for a social function, social welfare function is achieved. Some
specifications

of

the

social

function,

decisiveness, neutrality, anonymity, monotonicity, unanimity, homogeneity and weak and

strong Pareto optimality, no social choice functions meet these requirements in an ordinal
scale simultaneously. The most important characteristic of a social function is identification
of the interactive effect of alternatives and creating a logical relation with the ranks.
Marketing provides services in order to satisfy customers. With that in mind, the productive
system is considered from its beginning at the production level, to the end of the cycle, the
consumer.

1.1.1 THE BLACK BOX MODEL

The black box model shows the interaction of stimuli, consumer characteristics, and decision
process
and
consumer
responses.
It
can
be
distinguished
between
interpersonal stimuli (between people) or intrapersonal stimuli (within people). The black box
model is related to the black box theory of behaviorism,, where the focus is not set on the
processes inside a consumer, but the relation between the stimuli and the response of the
consumer. The marketing stimuli are planned and processed by the companies, whereas the
environmental stimuli are given by social factors, based on the economical, political and
cultural circumstances of a society. The buyers black box contains the buyer
bu
characteristics
and the decision process, which determines the buyers response.
The black box model considers the buyers response as a result of a conscious, rational
decision process, in which it is assumed that the buyer has recognized the problem. However,
in reality many decisions are not made in awareness of a determined problem by the
consumer.

1.1.2 UNDERSTANDING THE RURAL CUSTOMER

In the initial years the focus was on the easily accessible well developed urban market. Soon
there was proliferation
ration of brands and intense competition resulting in the near saturation of
the urban market. This forced companies to go for greener a pasture that is new markets. All
eyes turned to the world most promising potential market of 742 million rural consumers,
consumer
who had yet to taste the fruit of modernity. A promise that seem ready to be fulfilled because
of explosion in the buying capacity in the rural sector.

1.2 TRACTOR INDUSTRY IN INDIA

7

Tractor industry plays an important part as agriculture sector has a major contribution to
Indias GDP. Tractors are part of agricultural machinery industry. Tractors came to India
through imports and later on were indigenously manufactured with the help of foreign
collaborations. The manufacturing process started in 1961-62. Indian tractor industry is
relatively young but now has become the largest market worldwide.
There are currently 14 players in the industry. Mahindra & Mahindra is the leading player in
the industry. Monsoon season is a key driver for sales of tractors. A series of good or bad
monsoon can affect the sales. In recent years the industry has registered a good growth in
sales, both domestic as well as exports. This is also partly because of the initiative of the
government to boost up agriculture and agricultural machinery industry.
The tractor penetration level in India is very low as compared to the world standards. Also
the penetration levels are also not uniform throughout the country. While the northern region
is now almost saturated in terms of new tractor sales, the southern region is still under
penetrated. The medium horse power category tractors, 31-40 HP, are the most popular in the
country and fastest growing segment.
This report gives an insight into the tractor industry in India, discussing its inception and
growth. It analyzes the current scenario of tractors in India, industry size, domestic and
exports trends and Indias share in global market. Lastly, it discusses the players in the
industry and profiles the top players.

CHAPTER 2
REVIEW OF LITERATURE
8

Srivastava et al (2011) surveyed the market to know the difference between rural and urban
consumer approach towards buying a product. He finally got that possible to capitalize on the
similarities among the rural markets. The most important difference between rural and urban
is in the degree of sophistications of the consumers. Urban consumers are generally familiar
with such products, their attitude and value related to purchase and consumption will be
different. Here the marketer may have to work harder to sell their goods in rural area because
of diversity of values and attitudes present in these regions.

Subhadra et al (2010) attempted to find out the important features which a customer considers
while going for the purchase of a new car. The study covers the owners of passenger cars
living in the major cities of the State of Punjab and the Union Territory of Chandigarh. The
respondents perceive that safety and comfort are the most important features of the passenger
car followed by luxuriousness. So the manufacturers must design the product giving
maximum weightage to these factors.

dhumal naresh et al (2010) surveyed to know the difference in purchasing behavior of rural
and urban consumer. He found out that rural consumer is discerning in the rural market is
vibrant. at the current rate of growth it will soon outstrip the urban market. The rural market
is not sleeping anymore.

Singh et al (2009) tries to find out 1. Personal socio-economic characteristics of the farmers.
2. And the association of socio-economic status with economic motivation of the farmers and
discovered that except education, age, land holding and socio-economic status have been
found to have significant association with economic motivation.

Malik (2009) wanted to find out the factor effect the purchase decision in durable goods. He
found that due to increased income and living standard, the growth rate of the industry is in
the peak position and it will rise in the future.

Feng jianying et al (2009) tries to find out that what is the farmers brand perception towards
farm machinery in china. Finally he found out that farmers have different perception toward
domestic and foreign brands of agricultural machinery. The information channels of brand
are mainly from friends, relatives and neighbors, so word of mouth spreading is very
important for a brand.

Pathak SV et al (2009) tries to find the impact of buyers perception of product quality in
India found that the quality perception, brand recognition, store reputation and price play an
important role in buyers perception

Agarwal et al (2009) tries to know the role of children in purchasing decision. he found that
Children of different demographics have a good knowledge of the product and the influence
is very prominent in making a purchase decision. They even have the ability to judge the
product on different parameters.

Parimal et al (2009) wanted to know the Shopping behavior of rural consumer migrated to
urban areas where what factors purchases influence urban retail shopping environment. The
study has identified seven factors such as: Recreational and Shopping Conscious,
Favorable attitude towards urban shopping environment, Enjoy shopping, Price
Conscious, Comparison shopping/ complainer, Perfectionist, High quality conscious which
effect the shopping behavior.

Dhumal et al (2008) tried to find that buying decision different demographics in rural and
urban areas. The different aspect of the demographics was age, occupation, economic
situation, lifestyle and others. He finally found that the buying decision of the consumer of
different demographics differ from rural to urban area. The rural area is more bounded by the
tradition, custom and values which bring a gigantic change in the life style and personality of
the consumers of the rural areas where people are more attached towards the western culture.
Low capita income of the consumers in the rural areas restricts them for low consumption
pattern as compared to the urban population where the consumer are more brand conscious
and are very ready to pay high.

Dhumal M et al (2008) wanted to find what influences purchasing decision of the rural
market population. He finds that the communication mix, brands, peer pressure and other
motivational factors affect most in the purchasing decision.

Zacharias S et al (2008) wanted to find the impact of the opinion leaders in purchase decision
of color TV in rural market. He found that the effect of opinion leaders, word of mouth and
differential effect of friends and family are the important factor in TV purchasing decision.

10

Dhumal M et al (2008) wanted to find what influences purchasing decision of the rural
market population. He found that the communication mix, brands, peer pressure and other
motivational factors affect most in the purchasing decision.

Bajaj S (2007) researched to investigate the impact of global and local brand in making a
purchase of the product. He finds that the global brands are more influential in nature then
local brand. Consumers perceive global brands to be of superior quality.

Singh gyanendra (2004) Tries to find out the impact of farm mechanization in india and he
find that the status of agricultural mechanization in India, including the aspects of production
of implements and equipment, after- sales- services, level of their adoption and the role of
different public and private Institutions in supporting and promoting this critical input for
making Indian agriculture to meet the international challenges of productivity and cost of
production.

Singh et al (2004) surveyed to know the practical application of rural consumer behavior
findings in Indian markets has often posed a problem for marketers for two reasons. First,
most consumer researches in rural market has used a piecemeal approach. Second, there has
been no comprehensive framework to integrate the findings in a meaningful manner. The
paradigm is an attempt which provides a comprehensive framework that will enable
marketers to understand, integrate and apply consumer behavior in the rural market.

11

CHAPTER 3
OBJECTIVE

1
2
3

To study the customer awareness regarding tractors.

To study the different parameters that influence the

customer in purchasing the tractor.

To study the major market leader among various

market payers.

To study consumers satisfaction towards purchased

tractors

To study the various problems faced by customers in

their tractor.

To study the satisfaction level of the customers with

their existing tractor.

12

CHAPTER 4
NEED AND SCOPE OF THE STUDY

NEED: There is an immense need in finding out the behavior in purchase pattern of the
consumer to know the changes that occurred in the market. It is required to know about the
purchasing pattern as it will reveal the answer that
1. Why users of tractor has declined this days.
2. What could be the possible reason that can enhance the purchasing rate of tractors?
3. How different attitude, motivation, personality, perception, lifestyle and knowledge
effect in the sales?
4. Which factors have dominated in the saturation of the market, since the market is
growing?
5. Does the condition of this buying pattern can be changed or will it be more prominent
in the future.

SCOPE: the study will help me to know the scope that can be helpful in knowing the
purchasing pattern of the consumer. It will also elaborate about
1.
2.
3.
4.
5.

The future of tractors in villages near Jalandhar.

Consumer (in rural areas) what they need?
How different companies need to enhance their product accordingly
What could be the new areas that will be benefitted after the change?
What will be the future customer?

13

CHAPTER 5
RESEARCH METHODOLOGY
Research means a search for knowledge or gain some new knowledge and methodology can
properly refer to the theoretical analysis of the methods appropriate to a field of study or to
the body of methods and principles particular to a branch of knowledge.

A Research

methodology has a specified framework for collecting the data in an effective manner.
Research methodology means a "defining a problem, defining the research objectives,
developing the research plan, collecting the information, analyzing the information and
presentation of findings." Such framework is called "Research Design". The research process
that was followed by me consisting following steps;
A) Defining the problem and research objectives
B) Developing the research plan
C) Collection of information
D) Analyzing the information
E) Presentation of findings

A) Defining the problem and research objectives

The definition of problem includes the study of RURAL PURCHASE BEHAVIOR
TOWARDS TRACTORS IN JALANDHAR
B) Developing the Research Plan
The development of research plan has following steps:
1.

Data source

2.

Research approach

3.

Research instrument

4.

Sampling plan
i) Sample unit
ii) Sample size
iii) Contact methods

1. Data Source: The researcher can get two types of data:

a)

Primary Data

b) Secondary Data
14

2.

Research Approach

Survey is best suited for descriptive and analytical research. Survey are undertaken to learn
about people's knowledge, beliefs, preferences, satisfaction and so on and to measure these
magnitudes in the general public. Therefore, I have done this survey for Descriptive and
analytical research process.
Descriptive research includes surveys and fact finding enquiries of different kinds. The main
purpose is description of the state of affairs is noted down and analytical research used to
analyze the material and facts.

3. Research instrument

Questionnaire: Questionnaire (also known as self-administered survey) is a type of

statistical survey handed out in paper form usually to a specific demographic to gather
information in order to provide better service or goods. A document that contains a set of
questions that has been specially formulated as a means of collecting information and
surveying opinions, etc on a specified subject or theme, etc .
A questionnaire was constructed for my survey.

4. Sampling plan
Sample is a group of few items which represents the population or universe from where it has
been taken. The sampling plan calls for three decisions;
a)

Sample unit

b) Sample size
c)

Contact methods

a) Sample unit who is to be surveyed?

The target population must be defined that has to be sampled. It is necessary so as to develop
a sample frame so that everyone in the target population has an equal chance of being
sampled. I have completed my survey in Jalandhar.
b) Sample size - how many people have to be surveyed?
Generally, large sample size gives more reliable results than small samples. The sample
consisted of 100 respondents. The sample was drawn from people having different

15

educational qualification, age group, occupation and income. The selection of the respondents
was done on the basis of Simple Random Sampling.
Simple random sampling is the technique in which every item in the universe and population
has an equal chance of being selected in the sample. Researcher has no role to play or he
cannot influence the selection process there is no possibility of biasness. It can easily assess
the accuracy of estimate.

c) Contact methods
Once the sampling plan has been determined the Questionnaire is how the subject should be
contracted i.e. by telephone interview, personal interview, observation, mail etc. here, in my
survey, I have contacted the respondents through personal interviews.

D) Collecting the information

After this, I have collected the information from the respondents with the help of
Questionnaire.

D) Analyze the information

E) Presentations of findings

16

CHAPTER 6
DISCRIPTION OF QUESTIONNAIRE
Q1.

This question wanted to know the consumer awareness towards the different brands of
tractor that they know.

Q2.

The question will find out the major players in the market and what is the common
power requirement of the tractors in the market.

Q3.

What is the purpose of buying the tractor will be described in this question.

Q4.

This question will find out what a consumer expect from their tractor and in what
order.

Q5.

Does season influence their behavior of buying?

Q6.

How different financial sector have their influence on the buying behavior.

Q7.

Which factor among the option (given) influence the consumer most while purchasing
tractor?

Q8.

What are the various sources that effect purchasing of tractor?

Q9.

What different problem they face after purchasing tractor (can be utilized by the
different companies)

Q10.

This question tends to find out the satisfaction level of the consumer.

Q11.

What is consumer perception about their tractor is described in the question.

Q12.

What modification they wanted in the future for their tractor.

Q13.

Does any tractor company influence them advertisement.

Q14.

Does newspaper advertisement effect purchasing. Which one is described here?

Q15.

Does the consumer want to be in contact with company for any queries?

17

CHAPTER 7
DATA ANALYSIS AND INTERPRETATION
NTERPRETATION
Q1. How many tractor
ractor companies do you know about?

Companies

No. of Respondents

Tafe

100

Farmtrac

75

Mahindra

100

Sonalika

100

Swaraj

90

John Deer

50

Indofarm

35

New Holland

100

No. of Respondents
100
90
80
70
60
50
40
30
20
10
0

No. of Respondents

18

Interpretation:
From the above graph it is clear that all the 100 respondents are aware of Tafe, Mahindra,
Sonalika, New Holland Tractors, 90 respondents are aware of Swaraj, 75 respondents are
aware about Farmtrac, 50 respondents are aware of John Deer and 35 respondents have
shown their awareness regarding Indofarm Tractor.

Q2. Which tractor do you own and what is its HP?

(a) Tractor

Companies

%age of Respondents

Tafe

11%

Farmtrac

9%

Mahindra

28%

Sonalika

17%

Swaraj

22%

John Deer

6%

Indofarm

3%

New Holland

11%

19

%age of Respondents
30%
25%
20%
15%
10%

%age of Respondents

5%
0%

(b) Segment wise HP Range

HP Range

%age of Respondents

Below 30

15%

31-40

65%

More than 40

20%

%age of Respondents
70%
60%
50%
40%
30%

%age of Respondents

20%
10%
0%
Below 30

31-40

More than
40

20

Interpretation :
From the above data it is clear that majority (27%) of the respondents have Mahindra
Tractors. 23% of the respondents have Swaraj and 16% respondents have Sonalika Tractors
followed by Tafe, New Holland, Farmtrac, John Der and Indofarm.
It is also revealed from the data of Segmetwise HP Range that majority of the respondents
have 31-40 HP range of tractors, 15% respondents have below than 30 HP and remaining
20% respondents have more than 40 HP ranges of tractors.

Q3. What work you generally take from a tractor?

Type of Work

%age of Respondents

Agriculture

80%

Haulage

20%

Interpretation:
From the above graph it is clear that majority (80%) of the respondents use tractors for the
agriculture purpose and remaining 20% respondents use the tractors for haulage purpose.

21

Q4. What do you expect from a Tractor? Please allocate 100 points among the options.
Type of Work

No. of points

Road Speed

10

Ground Clearance

Backup Torque

Fuel Efficiency

50

Good Looks

Less Maintenance

10

Availability of workshops/mechanics

10

Good Resale Value

Turning Radius

Size of Tractor

50
50
45
40
35
30
25
20
15
10
5
0

10

10

No. of points

22

10

Interpretation:
There are many factors on which the success of tractor depends i.e. Fuel Efficiency,
Maintenance, and After Sale Services etc.
The above question is asked to the respondents with the objective to know the expectation
of the customer. From the above graph it is clear that majority of the respondents have
h
given 50 points to Fuel Efficiency. 10 points each are given to Less Maintenance and
Availability of workshops /mechanics and road speed. 5 points each are given to ground
clearance, good looks, good resale value and size of tractor.
Q5. In which season
son do you prefer to buy a tractor?
Season

%age of Respondents

Spring

65%

Summer

15%

Autumn

5%

Rainy

10%

Winter

5%

%age of Respondents
70%
60%
50%
40%
30%

%age of Respondents

20%
10%
0%
Spring

Summer Autumn

Rainy

23

Winter

Interpretation:
As the spring season is the season of farmers in India so most of the respondents would like
to buy a tractor in Spring Season. From the above graph it is clear that majority (65%) of the
respondents would like to buy a tractor in spring season. 15% respondents would like to buy
tractor in summer, 10% in rainy season and remaining 5% each in autumn and winter season
sea
respectively.
Q6. Which financial sector influences you most while buying a tractor? (Rank the order).

Particulars

Ranking

Loan Facility

Price

Discounts

Buy Back Scheme

Personal Selling

Ranking
6
5
4
3
Ranking

2
1
0
Loan Facility

Price

Discounts

24

Buy Back
Scheme

Personal
Selling

Interpretation:
With the majority of our
ur countrys population engaged in farming and agriculture, our Farm
Equipment Loans help rural India surge ahead in a big way. So majority of the respondents
have given first rank to Loan Facility,
Faci
second to Price, third to Discounts,, fourth to Buy Back
Scheme and fifth to Personal Selling.
Selling

Q7. To what extent does these factors affect to the choice of a tractor? (Rate on 1-10
scale).
Factors
Brand Name
After Sale Services
Availability of spare parts
Kind of work to be taken from the tractor
Coverage area
Fuel Efficiency
Warranty

Scale
9
8
8
9
8
9
8

Scale
9
8.8
8.6
8.4
8.2
8
7.8
7.6
7.4
Scale

Interpretation:
There are many factors which affects the buying behavior of the customers like brand name,
after sale services, availability of spare parts etc. From the above data it is clear that
majority of the respondents have given 9 point scale each to Brand name, kind of work and
Fuel Efficiency. 8 points each are given to after sale services, availably of spare parts,
coverage area and warranty of the tractor.
25

Q8. How much do these sources influence the purchase of a particular brand of tractor?

Source

Strongly

Disagree

Neutral

Agree

Disagree

Strongly
Agree

Relatives

10

10

40

20

20

Neighbors
/Villagers

10

15

65

Mechanics

20

75

part 0

10

15

70

10

10

80

Spare
shops

Old Customers

90
80
70
60

Relatives

50

Neighbors /Villagers

40

Mechanics

30

Spare part shops

20

Old Customers

10
0
Strongly Disagree Neutral
Disagree

Agree

Strongly
Agree

Interpretation:
From the above graph it is clear that majority of the respondents are influenced by
mechanics spare parts shops and old customers during purchase of a particular brand of
tractor.
26

Q9. What are the problems faced by you

yo in your tractor? (Rate on 1-10
10 scale)
Problems Faced

Rating

Oil Leakage

Differential Noise

Non Availability of spare parts

Slow Speed

Not Good for Trolley

Clutch Plate Problem

Gear Box Noise

Less Backup Torque

Heating of engine

Not Fuel Efficient

Frequent maintenance required

Heavy drop in RPM

Front Lifting

Rating
8
7
6
5
4
3
2
1
0

Rating

27

Interpretation:
From the above graph it is clear that majority of the respondents have rated Front Lifting as
the major problem which is faced by the customers followed by other problems like Oil
Leakage, Differential Noise, Non Availability of spare parts, Slow Speed etc.

10. What satisfaction level you have from your tractor?

Highly

Not Not Satisfied

Neutral

Satisfied

Highly Satisfied
Satis

10%

75%

10%

Satisfied
0%

5%

Highly Satisfied

Satisfied

Neutral
Series1
Not Satisfied

Highly Not Satisfied

0%

20%

40%

60%

80%

Interpretation:
From the above graph it is clear that majority (75%) of the respondents are satisfied with
their tractor, 10% feels highly satisfied, 10% says neutral and 5% are not satisfied with their
present tractor.
28

Q11. How do you describe your tractor on following attributes?

High Quality

Expensive

A Brand I trust

Well Built

Good Value for money

6
5
4
3
Series1
2
1
0
High Quality Expensive

A Brand I
trust

Well Built

Good Value
for money

Interpretation:
From the above graph is clear that majority of the respondents are brand loyal so majority
majo
of the respondents said that Sonalika is brand that they can trust. Second rank goes to well
built, third to quality, fourth to good value for money and fifth rank goes to expensive.

29

12. What are the new features you expect from tractor manufacturers?

High Fuel Efficiency

60%

Heavy Front Alignment

15%

Break System

10%

Gear Shifting

10%

Others

5%

Others

Gear Shifting

Break System
Series1
Heavy Front Alignment

High Fuel Efficiency

0% 10% 20% 30% 40% 50% 60% 70%

Interpretation:
From the above graph it is clear that majority (60%) of the respondents want high fuel
efficiency, 15% want heavy front alignment, 10% want change in break system, other 10%
respondents want soft gear shifting and remaining 5% respondents want other new features
in their tractor.

30

Q13. Have you seen tractor advertisements?

(a) Response
Response

No. of Respondents

Yes

120

No

80

No. of Respondents
No
No. of Respondents
Yes
0

50

100

150

(b) Sources of advertisement

Sources of advertisement

No. of Respondents

Newspaper /journals

50

Through Reference

10

Wall Paintings

15

Hoardings

10

Exhibition /Trade Shows

Through Supplier Visit

15

Radio FM

20

Others

10

31

No. of Respondents

8%
Newspaper /journals
Through Reference

15%
38%

Wall Paintings
Hoardings
Exhibition /Trade Shows

12%
Through Supplier Visit
Radio FM
0%

8%
11%

Others

8%

Interpretation:
From the above data it is clear that out of 100 respondents 60 respondents have seen
tractor advertisements.
23 respondents have seen advertisement of tractor in newspapers and journals, 19
respondents have heard the advertisement of tractor in Radio FM. 8 respondents have
tractor ad in wall paintings and other 7 respondents have come to know about tractor
advertisement through supplier visit. 5 respondents have come to know about tractor Ad
through hoardings, references and remaining 5 respondents through other sources.

32

Q14. What is your favorite newspaper or magazine?

Punjab Kesari

20%

Dainik Bhaskar

10%

Ajit

40%

Jagbani

20%

Dainik Jagran

10%

Chart Title
10%
20%

Punjab Kesari
Dainik Bhaskar

20%
10%

Ajit
Jagbani
Dainik Jagran

40%

Interpretation:
As we know that tractors are mostly used in villages and farmers are in the villages of Punjab
are familiar to Punjabi as compare to Hindi languages. So the majority of the respondents
said that Ajit is their favorite newspaper followed by Jagbani, Punjab Kesari, Dainik Bhaskar
and Dainik Jagran.

33

CHAPTER 8
FINDINGS OF THE STUDY
From the above study it is clear that majority (80%) of the respondents use tractors for
the agriculture purpose and remaining 20% respondents use the tractors for haulage
purpose.
There are many factors on which the success of tractor depends i.e. Fuel Efficiency,
Maintenance, and After Sale Services etc. From the study it is clear that majority of the
respondents have given 50 points to Fuel Efficiency. 10 points each are given to Less
Maintenance and Availability of workshops /mechanics and road speed. 5 points each
are given to ground clearance, good looks, good resale value and size of tractor.
As the spring season is the season of farmers in India so most of the respondents would
like to buy a tractor in Spring Season. From the above study it is clear that majority
(65%) of the respondents would like to buy a tractor in spring season. 15% respondents
would like to buy tractor in summer, 10% in rainy season and remaining 5% each in
autumn and winter season respectively.
With the majority of our countrys population engaged in farming and agriculture, our
Farm Equipment Loans help rural India surge ahead in a big way. So majority of the
respondents have given first rank to Loan Facility, second to Price, third to Discounts,
fourth to Buy Back Scheme and fifth to Personal Selling.
There are many factors which affects the buying behavior of the customers like brand
name, after sale services, availability of spare parts etc. From the above data it is clear
that majority of the respondents have given 9 point scale each to Brand name, kind of
work and Fuel Efficiency. 8 points each are given to after sale services, availably of spare
parts, coverage area and warranty of the tractor.
From the above research it is clear that majority of the respondents are influenced by
mechanics, spare parts shops and old customers during purchase of a particular brand of
tractor.

34

Majority of the respondents have rated Front Lifting as the major problem which is faced
by the customers followed by other problems like Oil Leakage, Differential Noise, Non
Availability of spare parts, Slow Speed etc.
Most of the respondents are satisfied with their tractor i.e. 75%, 10% feels highly
satisfied, 10% says neutral and 5% are not satisfied with their present tractor.
From the above study is clear that majority of the respondents are brand loyal so
majority of the respondents said that Sonalika is brand that they can trust. Second rank
goes to well built, third to quality, fourth to good value for money and fifth rank goes to
expensive.
It is also revealed from the study that majority (60%) of the respondents want high fuel
efficiency, 15% want heavy front alignment, 10% want change in break system, other
10% respondents want soft gear shifting and remaining 5% respondents want other new
features in their tractor.
From the above study it is clear that out of 100 respondents 60 respondents have seen
Tractors advertisements. So tractor should put more emphasis on TV advertisements.
As we know that tractors are mostly used in villages and farmers are in the villages of
Punjab are familiar to Punjabi as compare to Hindi languages. So the majority of the
respondents said that Ajit is their favourite newspaper followed by Jagbani, Punjab
Kesari, Dainik Bhaskar and Dainik Jagran.

35

CHAPTER 9
C SUGGESTIONS
H A P T E R - V I
Dealers recommend the company to use following source of ads.
Organization of full service camps and demos will be more effective other media's.
Direct contact program will yield more promising results the co should make these as
regular feature.
Participation in rural prestigious & famous fairs & melas would be the best media to
convey messages.
Keeping in view the increasing competition, the company should increase its warranty
period from one year to two years at least. This would attract more customers.
ITL's tractors are generally used in Punjab only and to little extent in Haryana, Rajasthan,
and Himachal. It should make every possible effort to improve its sales in other states
also like Andhra Pradesh. Gujarat, Madhya Pradesh, J & K. U.P., etc... This can be
achieved by:

Conducting demonstration by organizing exhibition of the different models of the

tractors.

Giving dealer high Incentive, particularly in these States.

There is less emphasis on advertisement of Tractors. By increasing the advertisement

expenditure company can create more awareness among the people.
Training should be given to the salesmen on how to make more sales through building
better relationships and handling promotion material efficiently.
Sales executives of the company should try to solve the grievances of dealers as early as
possible which will reduce the risk that dealers will shift to other brands.
Provide more benefits to dealers in comparison to its competitors.
Higher official of the company must also visit the different outlets at least once a month
to get the feedback about the companys salesman and supervisor, because at times
supervisor can be biased.

36

In order to make branches like Combines, Thrashers, Maize reaper and three wheeler
etc. more popular, the company needs to develop new promotional strategies.

CHAPTER 10
LIMITATIONS OF THE STUDY
Although I have done sincere efforts to collect authentic and relevant information, the study
may have the following limitations:

It was very difficult for me to get fulfill the forms because of respondents busy
schedule and not providing me sufficient time to fill the form seriously.
Scope of study is limited to Jalandhar only because of limited time and money. So
results of study may not be generalized.
This study is based on the assumption that responses are true and factual
although at times that may not be the case.
Though every care has been taken to eliminate such biases, but considering the
human factor the possibility of small bias having come up cannot be ruled out
altogether.

37

CHAPTER 11
CONCLUSION
The Rs 7,000-crore Indian tractor industry has been growing sluggishly at two per cent per
annum for some years now, and the trend is likely to continue this year. Industry sources
attribute this to several factors. But the most important is the general slowdown of the rural
economy.

In the rural areas, tractors are used not just for farm operations, but also as a means of
transport for both men and materials. By doing the survey of 100 respondents I have
concluded that:

From the above study it is clear that majority (80%) of the respondents use tractors for
the agriculture purpose and remaining 20% respondents use the tractors for haulage
purpose.
All the dealers are using latest advertising skills like Demo in Fairs, giving ads on cable
network etc. to enhance their sales.
Tractor Industry is in the growth stage and new policies are to be made to develop the
growth.
As the spring season is the season of farmers in India so most of the respondents would
like to buy a tractor in Spring Season. From the above study it is clear that majority
(65%) of the respondents would like to buy a tractor in spring season. 15% respondents
would like to buy tractor in summer, 10% in rainy season and remaining 5% each in
autumn and winter season respectively.
Since the district has been developing in the literacy rate. Some dealers of the company
are improving the image and position of their respective companies.

The banks are also providing attractive loan schemes to motivate the farmers to
buy tractors

38

Sale of tractor has increased in each year. This shows the company is doing well
in market and giving tough competition to its competitors

However, India is the worlds second largest maker of tractors, which form one of the most
important agriculture equipments. The New Industrial Policy has de-licensed the
manufacture of tractors in India and since 1970 the production of tractors has been
witnessing steady growth. Tractor manufacture is now firmly established in India and is
highly competitive with rapid advances being made in technical design and quality with
increasing attention to export markets. The growth in the sales of tractor touched an all
time high in the last five years to about 30% in 2004-05 at 249,000 units, inclusive of
exports. This is in comparison to 191,000 units in the previous year.
There is a need of some improvement in fuel efficiency: Improving fuel efficiency, of the
tractor engines, is a matter of national importance, as any saving effected in fuel
consumption would reduce the drain on foreign exchange and therefore should receive
utmost priority from all concerned Reducing the specific fuel consumption is an expensive
and time consuming
Exercise and requires a specialized expertise and knowledge, which is not readily available
with the industry. It is suggested that assistance from organizations like ARAI, Ricardo GK
and AVL Austria, which conduct research, of this type would be desirable, to get the desired
results, quickly. Studies covering suitability and optimum utilization or of tractors, of
different HPs, for different sizes of land holdings, different soils or different crops should be
sponsored such studies could be the base for incentives for encouraging, technoeconomically efficient, tractor models

Improvement in quality of tractor implements: All the benefits that one can expect, from a
fuel efficient engine, can be nullified if matching implements are not used with the tractor.
If, properly designed implements, matched to the tractors are used 20% to 30%
improvement, in performance efficiency and proportional fuel economy can be achieved
Production, of tractor implements, is reserved by the Govt, for the small scale sector, which,

39

in many cases, need up gradation, in respect of design and materials used. To achieve this, it
is suggested, that each tractor manufacturer, should design implements properly matched
to their tractors and, of standardized quality and make the knowhow for the same, available
to the implement manufacturers and adopt a system, of quality audit and monitoring, to
ensure production of desired quality implements

Incentives for innovation: Because of, the expensive and time consuming, steps required
for developing original design of tractors and, introducing them in the markets,
entrepreneurs choose the easier option of importing the designs. Suitable incentives, for
indigenous development, of new tractor model, should be provided.

40

CHAPTER 12
CREFERENCES
H A P T E R - V I I
1. Global journal of management and business research Volume 11, issue 5 on
April 2011 By SINGH JAGWINDER (national institute of technology,
Jalandhar, Punjab, India)
http://globaljournals.org/GJMBR_Volume11/10-A-Comparison-Of-Rural-And-UrbanBuying-Of-Consumer-Durables.pdf

2. India innovation in rural market BY PROF. ARORA PANKAJ

http://www.brandchannel.com/images/papers/522_2011-03_India_Rural_Marketing.pdf

3. Consumer behavior in rural marketing-a new paradigm

BY: DR. SRIVASTAVA SATYA PRAKASH & KUMAR MANISH
http://www.google.co.in/url?sa=t&rct=j&q=Consumer+behavior+in+the+rural+market+is+even+mor
e+perplexing+because+of+a+singular++lack+of+consistency+in+groups+which+are+homogeneous+i
n+parameters+of+demographics++Age%2C+occupation%2C+education+and+income.+&source=web&cd=1&ved=0CB0QFjAA&url=htt
p%3A%2F%2Fajtmr.com%2Fpapers%2Fvol1issue1%2FCONSUMER-BEHAVIORIN-RURALMARKETING.pdf&ei=Td3JTtC0OYmzrAe1w4XmDQ&usg=AFQjCNEzEwG9ZBJTogmK7PDNdkvcs2L-4g

4. By:SINGH G (Asian Inst. Technology Bangkok, Thailand) & DOHAREY R S

(Joint Commissioner) (machinery), Ministry Of Agriculture, New Delhi, India
http://www.indianjournals.com/ijor.aspx?target=ijor:aet&volume=23&issue=1and2&article=001

5. Scope, Progress and Constraints of Farm Mechanization in India

BY:JOGINDER SINGH (Professor-cum-Head, Department of Economics, Punjab Agricultural
University,
Ludhiana)
http://www.google.co.in/url?sa=t&rct=j&q=In+the+context+of+increasing+commercialization+of+ag
riculture%2C+mechanization+is+very+important.+There+has+been+increase+in+the+use+of+farm+
machinery+in+Indian+Agriculture+as+it+contributed+to+the+increase+in+output+due+to+timeliness
+of+operations+and+increasing+precision+in+input+application.&source=web&cd=1&ved=0CB0QFj

41

AA&url=http%3A%2F%2Fagricoop.nic.in%2FFarm%2520Mech.%2520PDF%2F0502403.pdf&ei=8d7JTsbrLIvRrQehq_mWDg&usg=AFQjCNE3d8ijgotl0WA0FQKxaybfcqJ-mQ

6. http://www.researchandmarkets.com/info/terms.asp
Government of India.Singh, G. 1997. Agricultural Mechanization and Agro-Processing after
independence. Central Institute of Agricultural Engineering, Bhopal.
Singh, G. and Bharadwaj, K.C. 1985. Directory of Agricultural Machinery and Manufacturers, Central
Institute of Agricultural Engineering, Bhopal.
Singh, Gajendra; Singh, Gyanendra and Nachiket Kotwaliwale. 1999. Agricultural Production and
processing technology for women in Indian agriculture. International Journal of Gender, Technology
and Development, Asian Institute of Technology, May-August
Singh, Gyanendra. 1998. An analytical approach to farm mechanization in India-agricultural
machinery development and promotion. Journal of Rural Development
Singh, Gyanendra. 1994. Weight matrix of Indian cattle and their draught power. Indian Journal of
Agricultural

Other references
1. Saini, D.R,Stretegy of Rural Mrketing,
2. Pradeep kashyap & sidharta Raut :"Rural Marketing
3. Schiffman,L & L Knauk. Consumer behavior.7th ed. prentice hall
4. Survey of Indian Industry, 2003, the Hindu.
5. Kotler.P Principals of marketing.13e south Indian context.
6. Business Line,,Big Brands innovate to tap the rural market July 03 (2002)
(www.exchange4media.com)

42

CHAPTER 13
APPENDIX
QUESTIONNAIRE
Q1.

Q2.

How many tractor companies do you know about?

Tafe

Farmtrac

Mahindra

Sonalika

Swaraj

John Deer

Indofarm

New Holland

Which tractor do you own and what is its HP?

________________________________________________________

Q3.

What work you generally take from a tractor?

Haulage

Agriculture

Q4.

What do you expect from a Tractor? Please allocate 100 points among the options.
Road Speed

Ground Clearance

Backup Torque

Fuel Efficiency

Good Looks

less Maintenance

Availability of

Good Resale Value

Workshops/mechanics

43

Turning Radius

Q5.

Size of Tractor

In which season do you prefer to buy a tractor?

Spring

summer

Autumn

Rainy

Winter
Q6.

Which financial sector influences you most while buying a tractor? (Rank the order).
Loan Facility

Price

Discounts

Buy Back Scheme

Personal Selling

Q7.

To what extent does these factors affect to the choice of a tractor? (Rate on 1-10
scale)
Brand Name
After Sale Services
Availability of spare parts
Kind of work to be taken from the tractor
Coverage area
Fuel Efficiency
Warranty

Q8.

How much does this source influence the purchase of a particular brand of tractor?
Strongly

Agree

44

Neutral

Disagree

Strongly

Agree

Disagree

Relatives
Neighbors /Villagers
Mechanics
Old Customers
Spare part shops

Q9.

What are the problems faced by you in your tractor? (Rate on 1-10 scale)
Oil Leakage

Differential Noise

Slow Speed

Not Good for Trolley

Clutch Plate Problem

Gear Box Noise

Less Backup Torque

Heating of engine

Not Fuel Efficient

Heavy drop in RPM

Front Lifting
Non Availability of spare parts
Frequent maintenance required

Q10.

What satisfaction level you have from your tractor?

Highly Not Satisfied

Not Satisfied

Neutral

Satisfied

Highly Satisfied

Q11.

How do you describe your tractor on following attributes?

45

High Quality

Expensive

A Brand I trust

well Built

Good Value for money

Q12.

What are the new features you expect from tractor manufacturers?
High Fuel Efficiency

Heavy Front Alignment

Break System

Gear Shifting

Others

Q13.

Have you seen any tractor advertisements?

Yes

Q14.

No

What is your favorite newspaper or magazine?

Punjab Kesari

Dainik Bhaskar

Ajit

Jagbani

Dainik Jagran

Q15.

Do you want someone from Tractor Company to get in touch with you?
Yes

No

Name

: __________________________________________________

Village

: __________________________________________________

Phone No

: __________________________________________________

Engine No.

:__________________________________________________

46

Chassis

: __________________________________________________

Tractor Model: _________________________________________________

Year & Month of Purchase: ______________________________________

47