PREFACE

The tractor is one of the most important and easily recognizable

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

A tractor is basically a machine that provides machine power for

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

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

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

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 TRACTOR

India has only about eight tractors per thousand hectares, versus
the Asian average of 14. 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 increase in irrigated
area, as a result of Plan investments, will also increase the demand for tractors.

Since approximately 90% of the tractors are bought using

agriculture credit from commercial, co-operative and regional rural banks, the
quantum of credit and the interest rate are, perhaps, the most crucial
determinants of tractor demand. The refinance of bank credit to agriculture by
NABARD is also a strong influence. The presence of a countrywide distribution
system is also important in insulating companies from monsoon failures in some
parts of the country.

Upward revisions in support prices of agriculture crops, which have

been sizeable since 1991, increased farm incomes and, hence, demand for
tractors. Good monsoons, even though important, do not affect tractor sales
significantly, since tractor demand is generally concentrated in areas with
developed irrigation facilities. Two or more successive bad monsoons, however,
affect farm sentiments and, hence, sales. Different manufacturers adapt their
products to the farm practices and soil conditions of the regions that they service.
Brand concentration in regions is, therefore, common.

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. Tractor sales in India were earlier concentrated in the northern
states of Punjab, Haryana and Uttar Pradesh (which accounted for nearly 50% of
total sales), owing to the developed irrigation facilities in these States.

However, the south and the west have emerged as potential

markets as well. Increasing sales in the southern and western States come from
an improvement in irrigation facilities and increasing mechanization of agriculture.
The eastern, southern and western States of Gujarat, Maharashtra and Rajasthan
are likely to be the most attractive markets for tractors in the future.

INDUSTRY STRUCTURE

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

From a production of 2,000 tractors in FY1971, the volume sales of

the industry reached 2,66,073 units in FY2000. The tractor industry’s growth has
dropped to a low of 2-3% in 1998-99, as well as in 1999-2000. Product losses
and un remunerative prices in a few States, in the past few seasons, have
added to the downtrend, but the biggest adverse impact has been overproduction
and billing by some of the leading players

COMPETITORS

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

Mahindra & Mahindra is the leader in the industry, with a market

share of 27%. Three multinationals, New Ford Holland, John Deere and Greaves,
have entered the market in the past two years, but their combined sales have
been below 6,000 units. All Indian brands, except Punjab Tractors Ltd, have had
overseas tie-ups and support since the beginning.

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 BRAND NAME

“MAJBUTI AUR SHAAN KE SANG – BAJRANG”

The power points of the tractor are STRENGH &

PRIDE on these basis name BAJRANG is given to Tractors as
BAJRANG is the name of Powerful God in the Universe
BAJRANGBALE [HANUMAN] and the name of any God in
anything bring the Pride in it. It was also noted the rural
consumers are more regional and great believers of God. On
these basis the tractors were name as BAJRANG TRACTORS

FEATURES

 Design simplicity

 Improved performance with reduced cost

 High maneuverability due to small size and small wheelbase.

 The fuel consumption, which is comparatively low and low maintenance

cost, adds to the economy.

 Adjustable wheel base to meet the requirement of inter culturing operation

in different crops

 Ergonomically Designed

 Better traction, greater control, stability and safety

 Durable, strong, reliable

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 DESIGN

TECHNICAL DESCRIPTION

The heart of a tractor is a powerful internal combustion engine that

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

In Tractor the machine is little more than an engine on wheels, with

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

MODELS

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 [BELOW 30 HP [HORSE POWER]
HC 2521 HC 2522
25 Horse Power Category 29 Horse Power Category
• Direct Injection Engine Efficient Direct Injection
More Speed More Speed
• Hydraulic Brakes Mechanical Disc Brakes
• Automatic Hydraulic Control System Complete Water Sealing
• Air Compressor
• Automatic Hydraulic System

[30 – 40 HP [HORSE POWER]

HC 3221
35 Horse Power Category
Powerful AVL Designed Engine
More Speed
Mechanical Disc Brakes
Complete Water Sealing
Air Compressor
Automatic Hydraulic System
HC 3444
37Horse Power Category
4 - Stroke, Direct Injection, Diesel Engine
Powerful Engine, Direct Injection Engine
Mechanical Disc Brakes
Complete Water Sealing
Air Compressor
Automatic Hydraulic System
New Strengthened Bonnet

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UNIQUE SELLING PROPOSITION

Superior Performing Tractors at Competitive Prices

High flexibility to farmers to perform all types of agricultural

operations in any terrain.

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 P’s

PRODUCT

The tractor is used for pulling or pushing agricultural machinery or

trailers, for plowing, tilling, disking, harrowing, planting, and similar tasks. In 1892,
John Froelich built the first gasoline powered tractor in Clayton County, Iowa.

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

Tractors used belts wrapped around pulleys to power stationary

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

PLACE

Of India’s total geographical area of 329 million-hectares (MHA), as

much as 166 MHA is arable (2nd highest in the world). While the net sown area
stands around 140-142 MHA, with increased cropping intensity, the gross
cropped area is higher at 180-189 MHA.

Tractors remain the crucial linkage in the commercialisation of

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

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

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 PRICE

PRODUCT NAME SEGMEMT PRICE

HC 2521 25 Horse Power 4,25,000/-
HC 2522 29 Horse Power 4,40,000/-
HC 3221 35 Horse Power 7,25,000/-
HC 3444 37Horse Power 7,40,000/-

The above prices include 20% profit, which is due to incres the
sales of company, than it will be increased as per the marketing stratergy.

Promotion

As the promotion part is considered, along with the huge advertising

compaign that the company is carrying out I will also carry out the basic
promotional activities necessary for boosting the sales of the product like keeping
stalls in Melas (Fairs) which will expose the companies whole range to all type of
customers and promotion can also be done by providing seasonal schemes to get
the focus of the customer in every season.

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 DISTRIBUTION

BAJRANG
COMPANY

DEALERS

CUSTOMERS

Initially BAJRANG TRACTORS will have the 150 dealers in the

places of sale than it will increase its dealer’s distribution network. If need
arise the company will also appoint some retail outlet in the villages for
penetration in market.

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 PRODUCT LIFE CYCLE OF MY PRODUCT

Product life Cycle of Tractor is of 3 years. To say that a product has

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

1) INTRODUCTION STAGE:

In Tractor business name place very important role till that time the name
is not know or not have place in market tractor will not sale. In the introduction
stage I will focus of sales rather than profit for the purpose of name I will try to
make people more aware about launching of my product so as to get maximum
number of customers. My marketing strategies will be based on the features of
my product. Here I will try to expand my market share.

2) GROWTH STAGE:

In the growth stage my focus will be on improving the product quality and add
new product features and Add new policies, enter new market segments. Which will be
CENTRAL (Madhya Pradesh & Rajasthan) EAST (Bihar, West Bengal, Orissa & Assam)
SOUTH (Andhra Pradesh, Tamil Nadu, Karnataka & Kerala.
I will also focus on increasing distribution coverage and enter new
distribution channels. Then my advertising strategies will Shift from product-
awareness advertising to product-preference advertising.

3) MATURITY STAGE:

Here I will try to Expand number of brand users by:

 Converting non-users into users.

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

I will also modify marketing mix of my products. Prices

Distribution, Advertising, Sales promotion, Personal selling, Services

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 SEGMENTATION & TARGETING:

HP SEGMENTATION TARGETED CUSTOMER

BELOW 30 NORTH UTTAR PRADESH
WEST GUJARAT
ABOVE 30 NORTH PUNJAB
NORTH HARYANA
WEST MAHARASHTRA

FACTORS CONSIDERING SEGEMENTATION AND TARGETING:

 AGRICULTURE INCOME
 INCOME LEVEL
 SOIL [FERTILITY]
 POPULATION
 COMPETITORS
 CLIMATE
 INFRASTUCTURE

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 ADVERTISING

For Advertising I will mainly focus on the National language to be

used in my Advertisements. As it is acceptable in the Rural Area & I would also
prefer the use of Regional languages. That means the local language of the
territory is used along with the National language, as it will be easy for the people
to accept it.

As for the Rural Markets the Advertisements are basically done by

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

 LOCAL RESOURCES OF ADVERTISING

HOARDINGS
Hoardings are very common resource of Advertising as they are
very flexible to be used at anywhere. Therefore I will like to place the Company’s
hoardings on the areas like Main Roads, Chowks, Entrance of the shop etc. & on
special occasions like Melas, Fairs, Exhibitions the Banners can be used as
effective media of Advertising.

SHUTTER PAINTINGS
I will focus my Product & Brand through using the Shutters of the
Dealers & Retailers to be painted with the Companies name & featuring the
product. So that the product is focused to each one passing by.

WALL PAINTINGS
I will also use Wall Painting as, Through Wall Paintings in main,
main areas of the villages or the territory will have a impact on the people about
the presence of the Brand in the village.

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