SUMMER INTERNSHIP REPORT

Establish a Farm Influencer Model in Maharashtra

Successfully stabilize and establish a scalable Farm
Influencer Model through on-ground promoters, thereby
setting up a cluster network of influencers/sub-dealers

Acknowledgement
Project Domain
Marketing
Company

------------------

Sales and

-----------------Submitted by

Ambarish Sarangi
UM15315
MBA Business Management
Xavier Institute of Management
Bhubaneswar

Project Guide
Mr. Manik Singh
Senior Product Manager
Farm and LM
CEAT ltd.

CEAT ltd.

"I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and CEAT ltd. I would like to extend my sincere thanks to all of
them.
I am highly indebted to Mr. Manik Singh for his guidance and constant supervision as well as for
providing necessary information regarding the project & also for his support in completing the
project.
I would like to express my gratitude towards promoters Mr. Digambar Kumbhar and Mr. Dilip
Malekar & other employees of CEAT ltd. for their kind co-operation and encouragement which
helped me in completion of this project.
I would like to express my special gratitude and thanks to industry persons for giving me such
attention and time.
My thanks and appreciations also go to my college for giving me an opportunity to get involved in
this project and people who have willingly helped me out with their abilities."

TABLE

OF

CONTENTS

INDUSTRY TRENDS: DOMESTIC SALES...........................................................5

EMERGING CONSUMER TREND......................................................................6
SEASONALITY IN FARM TYRES......................................................................7
PRODUCTS OFFERED...................................................................................7
POTENTIAL PROSPECTS IDENTIFIED:.............................................................9
TALUKAS IDENTIFIED:..................................................................................9
ON GROUND STATUS: (AS ON 04.06.2016).....................................................9
BRANDING OPTIONS:.................................................................................10
PROPOSED INCENTIVE STRUCTURE FOR INFLUENCERS:................................12
PROPOSED AGENDA FOR CUSTOMER MEETS:...............................................12
PROPOSED STRUCTURE FOR TRACKING SALE:.............................................12
CHALLENGES FACED:..................................................................................12
RECOMMENDATIONS:.................................................................................13

Introduction
The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber Limited set up the
first tyre company in West Bengal. MRF followed suit in 1946. Since then, the Indian tyre industry
has grown rapidly.
Transportation industry and tyre industry go hand in hand as the two are interdependent.
Transportation industry has experienced 10% growth rate year after year with an absolute level of
870 billion ton freight. With an extensive road network of 3.2 million km, road accounts for over
85% of all freight movement in India.

How Tyre Industry works

CEATs Channel Structure

Objective
Successfully stabilize and establish a scalable Farm Influencer Model through on-ground promoters,
thereby setting up a cluster network of influencers/sub-dealers
Geographies selected:
AUR Nasik, Jalgaon districts
KLP Kolhapur, Sangli districts

The current channel base in these geographies was poor, and this had a direct bearing on sales. The
primary objective of my project was to establish a micro-distribution network which would be
capable of selling CEAT farm tyres. The end result expected wass a clustered network of farm selling
sub-dealers. The entities that I focussed on were local seeds/pesticide retailers, pipe/irrigation
system retailers, farm implement dealers, etc. These were retailers who already had a big exposure
with farmers and could be leveraged to become CEAT Influencers, who would not only sell CEAT
farm tyres but also bring together the farmers for meets, engagements, etc. For the same he should
be incentivised/supported. The structure/ideas for incentivisation is something which I additionally
worked on. Typically, for a cluster of 3-4 small villages there was generally one such retailer/dealer
who cateeds to the needs of farmers from these villages. Such guys were on our target list.
For the sake of focus and clarity, I shortlisedt 2/3 talukas wherein the promoters worked in the market
and aimed for conversion of these influencers. The duration of the project was 8 weeks.

Industry Trends: Domestic Sales

The tractor industry has grown by a CAGR of 16% over the last 5 years
The projected CAGR till 2018-19 is 8-10%
12.4-28 (31-40 HP segment) will continue to degrow at -6% with farmers converting to 13.6-28
segment (41-50 HP segment)
Small tractor segment used for interculturing operations will grow at 7% CAGR

Current Scenario

With a share of business of 14% and presence across all major OEMs, Farm has become a strategic
category for CEAT

Emerging Consumer Trend

Seasonality in Farm tyres

TRRR1 sales in REP are impacted by poor monsoon & seasonality. We shall plan
activation and make dealer wise plan keeping this in mind
TRFR2 however remains flat throughout the year with a peak showing in Q1
TRLR3 sales starts in Sept just before the HARVEST Season/Diwali

Products Offered
Premium Tyres
TRRR Aayushmaan
TRFR Aayushmaan
Tractor trailer 9.00 -16 Samraat & BHL
Harvester Aayushmaan
Economy Tyres
TRFR Samraat
ADV (Animal driven vehicle) Bulaand/Samraat

Goals and Deliverables

Goal 1: Establish a grass-roots model for appointment and sustenance
of Farm Influencer / Ambassador
Deliverables:Action Plan
Devise SOP for
prospecting and
appointment of Farm
influencer

Expected Deliverables
Identification of possible
retailers for prospecting
Setting guidelines for
geography of operations

Milestone
April end
April end

Goal 2: Business Impact

Deliverables:Action Plan
Establishing network of
influencers for village
clusters
Sale of Tractor Front
and Tractor rear
through influencers
Incentive structure for
influencer

Expected Deliverables
3 influencers each in KLP and
AUR regions
TRFR 8 tyres, TRRR- 2 tyres
from each influencer
Devise inventive structure for
influencer to boost sale

Milestone
May 4th week
Apr + May
May 1st week

Goal 3: Establish and document model for Customer Engagement

through promoters
Deliverables:Action Plan
Expected Deliverables
Milestone
Establishing customer
Generate list of executable
engagement model via ideas of customer engagement May 2nd week
influencer
through influencer
Customer engagement
Carry out 2 customer
By May 4th week
- execution
engagement activities

10

Project Status
Potential Prospects Identified:
Local seeds/pesticides retailers
Pipe/irrigation system retailers
Farm implement dealers
Tractor mechanics
Tyre remoulders
Tractor reselling agents

Talukas Identified:
Panhala
Hatkanangale
Niphad
Dindori
Satana

Kolhapur RO

Aurangabad RO

Villages selected based on tractor potential and population

Data obtained from RO and local CEAT dealers
Top 20 villages from each taluka were selected

On Ground Status: (As on 04.06.2016)

Prospects

Kolhapur

Nashik

Converted

Sub-dealer - 1
Influencers - 2

Sub-dealer 2
Influencer - 1

In Pipeline

Sub-dealer 5

Sub-dealer 3
Influencers - 1

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12

Branding Options:
For Subdealers:
Name: KRISHI VIKAS KENDRA

Creative ordered:
Fascia/Sub dealer board
Authorization certificate
Poster
Pitch document
Fascia Option 1:

Fascia Option 2:

13

Poster Option 1:

Poster Option 2:

14

Proposed Incentive structure for Influencers:

Based on sales/volume

Set a target for monthly/quarterly sales for TRFR and TRRR

Commission till target
Bonus on hitting target straight cash credit
Commission beyond target

Based on customer engagement

Target of more than 80-100 customers per meet

Target of 50-60 customers per meet
Minimum of 2 customer meets per month straight cash bonus

Proposed agenda for customer meets:

Presentation
Street play / skit / nukad natak for promoting features of brand Aayushman
Distribution of brochures/leaflets and gifts

15

Acceptance of enquiries from interested customers

Snacks and hospitality

Proposed structure for tracking sale:

Coupons to be distributed through the influencers containing 3 sides each

One side to be retained by the sub-dealer, other sides to be stamped and submitted to
influencer and company respectively.
Each coupon would have a unique serial no. and tagged to the influencer

Challenges Faced:

Seasonal behavior of market

Reluctance of prospect to enter into new business
Superior brand image of competitors in farm segment
Operational inefficiency in terms of conversion

16

Recommendations and Conclusion

Recommendations:

Conversion of current sub dealers into KVK

Introduction of new sizes 5.00-12, 7.00-12
Special discounts/Gifts for customers during festivities/post-harvest season
Need maximum OE fitment boost brand awareness
Prompt service to customers
Improve distributor efficiency

Conclusion:

Current channel base in the selected geographies is poor

Farm Influencer model will have direct bearing on sales
Customer engagement events will promote brand value in farm segment
Incentive structure should remain competitive in future

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