5.

1 SCENARIO OF RURAL MARKET

The Indian rural market with its vast size and demand base offers great opportunities to marketers. Two-thirds of countrys consumers live in rural areas and almost half of the national income is generated here. It is only natural that rural markets form an important part of the total market of India. Our nation is classified in around 450 districts, and approximately 630000 villages which can be sorted in different parameters such as literacy levels, accessibility, income levels, penetration, distances from nearest towns (proximity to cities), etc. Rural market is characterized by low per capita income, low literacy, average agriculture productivity and low level of industrialization. Rural India accounts for over 70 per cent of the countrys population. 50% of the rural population cultivate their land, 27% work as labourers for cultivators, 10% are petty shopkeepers and businessmen, 9% are non agriculture labourers, 2% are salary earners and 2% are not well employed Income generation in rural areas entirely depend on how land is used, what crops are cultivated, how much is marketed, how much is consumed and marketing arrangements for production. . ( Gopalaswami T. P. Rural Marketing environment, problems and strategies 1st edition, Wheeler Publishers.) the market bristles with variety of problems. The main challenges in rural marketing are:

Physical Distribution Channel Management Promotion and Marketing Communication Poor Infrastructure

(http://www.ficci.com/ficci/media-room/speechespresentations/2004/oct/pradeep _%20kashyap.ppt#24)

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The problems of physical distribution and channel management adversely affect the service as well as the cost aspect. The existent market structure consists of primary rural market and retail sales outlet. The structure involves stock points in feeder towns to service these retail outlets at the village levels. But it becomes difficult maintaining the required service level in the delivery of the product at retail level.

Deterrents of rural marketing are:

Rural population is not concentrated i.e it is scattered in a very large area Location of population Location of village Size of population in each village

( Gopalaswami T. P. Rural Marketing environment, problems and strategies 1st edition, Wheeler Publishers.)

5.2 RURAL MARKET SEGMENTS

Since income is the deciding factor of the level of consumption, an income-based segmentation will be appropriate for rural market also. Where nearly 75 per cent of the income generation is from land in rural areas, the landholding pattern or size of holdings can be used as a basis for segmentation as a proxy. ( Gopalaswami T. P. Rural Marketing environment, problems and strategies pg 105 1st edition, Wheeler Publishers.) On sociological basis, rural market is segmented into six parts. These are: 1) Proprietors of land -which includes feudal tribute gatherers like zamindars, rich money lenders and traders, who acquired large tracts of land and companies, or persons who own large plantations. 2) Rich farmers who belong to the dominant caste of the area. 3) Small peasants or marginal farmers owning uneconomic land holding.
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4) Tenant farmers operating on rented lands belonging to the large land holders and working on small uneconomic land holdings. 5) Agricultural labourers who work on the lands of landlords and rich farmers. 6) Artisans and others including unemployed as well. The proprietors of land have no real roots in the village. They are rich and lease out their land to other farmers in the village and have connections with nearby cities and towns. Their consumption behaviour closely resemble that of the urban upper class. Rich farmers mostly belong to the dominant castes in the region, live in villages and have strong roots therein. Their wield is considerable. They are big and influencial farmers. They are much above the general rural population in terms of economic, social and education status. They adopt mechanised and progressive cultivation practices on their farms and always aspire for better living conditions and have greater interaction with urban centres. Their consumption behaviour much resembles urbanites. Others include small and marginal farmers, agricultural labourers and artisans. They constitute almost two-third of the rural population and their monthly expenditure is very low and limited. Most of them are generally poor and live below subsistence level. Their needs are for the very basic essentials like food and clothing. This group forms the largest segment in rural market. (Gaikwad V.R. 'A Search for the Rural Consumer' in New Opportunities in Indian Agriculture, Indian Institute of Management, Ahmedabad, January 1973, pp 159172.) The sociological basis of segmentation of rural market may be appropriate for marketing of consumable and durable items. The first two segments, proprietors of land and rich farmers are affluent and close to the urban style of living. They constitute about one third of the rural market. Others, who constitute two thirds of the total rural population, the preference will be for low value items.
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The Rural Market Index developed by Hindustan Thompson Associates can also be used for segmentation. But this index adopts an area approach and presents the potential district-wise. This index can profitably be used for evolving strategies for marketing agricultural inputs and consumable and durable items.

5.2.1 SEGMENTATION AND MARKETING STRATEGIES

An appropriate segmentation of the highly heterogeneous rural market and identification of the needs and wants of different segments will form the very basis for rural marketing strategies. For the rural market, it will be ideal to think of strategies from the marketing mix point of view i.e. Product, Price, Place and Promotion.

Social marketing
In addition to the strategies of marketing mix element wise, the recent concept of social marketing is also very appropriate for the Indian rural market, since the standard of living is very low and any effort to educate the rural consumers would result in the expansion and growth of the rural market in a generic sense. Due to the low level of literacy, a buying decision in rural areas not only takes a longer time, but also involves outside influences. Word of mouth is an important message carrier in rural areas and 'Opinion leaders' do play a significant role in influencing the prospective rural consumers about accepting or rejecting a product or a brand. Social marketing also plays an important role in promoting the image of a company.

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5.3 OLD TRACTOR MARKET AND INDIAN FARMER:

India is the farmers dominated country in the World. Mostly population of India is doing farming to fulfill their daily requirements and as a business. Near by 75% peoples doing farming in India. Agriculture aspect in India comes through different types of resources. Tractor is the main resource to fulfill the different requirements of agriculture and others works. In earlier period poor farmers fulfill farming requirements through their pet animals But these animals have taken more time to complete any type of work at definite time Period and doesnt work properly because they were not machine and have human nature. but tractor doing all these work properly without any type of mistake and never tried to work. At this time a large part of economically weak farmers have interest to buy old tractor for their farming work. Mostly farmers buy and sale old tractor according the seasons. The sugar cane Season is most important season of the farmers in the area because sugar cane business has an important place in west U.P. So, before and after the sugar cane season they have sale and buy old tractor according their requirements. Segmentation of old tractor Customers: In Western Uttar Pradesh and mostly people Of Greater Noida are involving in farming like sugar cane, gain and rice are main essential parts agriculture. There are different types of farmers live here like Upper class, Middle class and Lower class.
UPPER CLASS FARMERS:

Upper class farmers who have the agriculture land about 200 500 Bigha and more. They have money to bear the agriculture expenses easily without any problem and upper class customers have taken less interest to buy old tractor for

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their agriculture work because they have sufficient money to buy a new tractor easily without any difficulty.
MIDDLE CLASS FARMERS:

On other hand the middle class farmers who have agriculture land about 100-50 Bigha. They have bear the agriculture expenses through own money and loan money and fulfill thier requirement. Middle class farmer have taken more interest to buy a old tractor in comparison of upper class farmers because they have not sufficient money to buy a new tractor easily.

LOWER CLASS FARMERS:

Lower class farmer who have only 20-15 Bigh agriculture land. They have not sufficient money to bear the agriculture expenses. Lower Class farmers have much more interest to buy an old tractor for their agriculture work in comparison of upper class and middle class farmers because they have not sufficient money to buy a new tractor. So, the old tractor market mostly depends on middle class and lower class farmers in the district Greater Noida because mostly middle class and lower class farmers majority live in the area. In Western Uttar Pradesh there are different Companies old tractor running but customer of old tractors choose it through with the combination of their economical condition and tractor condition. Old Tractors Sequential list on the Basis of Customer Preference in the area: 1: Mahindra 2: Tafe
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3: Ford 4: Swaraj 5: Escort 6: Eicher 7: Hmt Customer Prefer These Old Tractors Through Different Reasons : 1: Availability of there spare parts easily. 2: Local Mechanic easily repairs. 3: Low Maintenance 4: Resale easily with reasonable price value. After the buying the old tractor farmer used it for different types of work according to their requirements and working power of old tractor. Mostly owner of old tractor Prefer following Companies old tractors for different types of work . 1: Loading Mahindra,Swaraj, Ford and Sonalika. 2: Harvesting Mahindra , Swaraj,Ford,Sonalika, Eicher ,Tafe and Escort. 3: Irrigation - Mahindra,Swaraj,Ford,Sonalika,Eicher,Tafe and Escort. 4: Generate Electricity Eicher
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There are Different reasons behind the Sale of Tractors:

To Buy a New Tractor

A Farmers Sale his tractor to buy a new tractor because they have seem that his tractors does not work according to their requirements.
Bad Condition of Tractor

Some times farmer of tractor sale his tractor because he seems that his tractors works in bad condition and want more money for maintenance for proper working condition. Then he has decided to sale or changes his tractors and buys new tractors.
Family Dispute on Tractor:

When a new tractor buy on two names of a family and after some time one of family member whose name taken on buying time of tractor create dispute on tractor and finally decide to sale that tractor.
Poor Economical Condition of Tractor Owner:

Sometimes owner of the tractor his tractor because he feel that he cant able to bear the different types of expenses of tractor likes fuel and maintenance. So, he finally decides to sale his tractor.

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5.4 Contribution of Different Tractors Companies in Old Tractor Market:

There are various companies tractors models running in the western uttar pradesh for agricultures works and others. Every company would like to increase their tractors sales but tractors sales can be increases according the customers needs and wants .who first fulfill the customer needs and wants according to their requirement get benefit and brand goodwill in the tractor market. Through brand goodwill an old tractor also preferred by the customers. Sequential List of Old Tractors on the Basis of their Contribution in the market: 1: Mahindra 2: Tafe 3: Swaraj 4: Ford 5: Eicher 6: Sonalika 7: Escort 8: Hmt
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Mahindras Policy About Mahindra Vishwas Old Tractor Outlet: Farm equipment maker Mahindra & Mahindra (M&M) is going full throttle with its expansion plan for the tractor segment. The company is expecting to double its used-tractor outlets, Mahindra Vishwas from the current 150 by March 2005. Bouyed by the recovery in the domestic tractor market that set in post-October 2003, M&M sees a big opportunity in the pre-used tractor segment too. Mahindra Vishwas which is a Rs 30-45 crore unit in itself sold around 3,000 tractors last year. We will double our Mahindra Vishwas business to 300 outlets by the end of this fiscal. Mahindras farm equipment sector has been working on a number of things like lowering our outstandings, reducing dealer stocks, product developemnt etc. It is now lean and fit ready for great growth in future, said Gautam Nagvekar, executive vice president, farm equipment sector. Mahindra Vishwas started with nine outlets in 2002, then went up to 45 in 2003 and ended the 2004 fiscal with 150 outlets. (http://www.magindia.com/manarch/news/man20651.html)

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5.5 OLD TRACTOR DEALERSHIP POTENTIAL FOR NEW TRACTOR SALE:

If a Old Tractors Dealership is created by tractors companies then it will be specially favorable for the existing new tractors sale because a new or fresh market get through This scheme and new tractors dealers works for new tractors business without any tension about old tractors .So, this Scheme is mostly favorable for the new tractors dealers. Sellers of old tractors also have facilities to get the true value of his tractors in a proper manner without any cheating and fraud. Customers also have get a reliable and permanent point of old tractors Sale, Service and Spare like new tractors. Old tractors dealers should works as a new tractors dealers and get response like new tractors dealers .Old tractors dealers can get profit through repair and refurbishing the old tractors and sale it at margin able price. Old Tractors Dealership Effect on New Tractors Sale: At Present Tractors Market there are many competitors use different types of strategies to increase their sales. So, the old tractors dealership should be essential part of those strategies that are uses for increase the new tractors sale with old tractors exchange scheme. Through old tractors dealership, new tractors dealership can get full concentration over new tractors market and also get more time to dedicate their self for new tractors market without old tractors business worries. The new tractors dealers have not worry about how would exchange old tractor with new tractor? How would estimate the value of old tractor? And how would resale the old tractors without taken lose. The salesmans of the new tractors dealers also get convinces about old tractors exchange because this scheme reduce their burden and tension about old tractors market. So, the old tractors dealership increases the new tractors sales without any types of problem.
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its essential for make the relationship between existing new tractor dealer and old tractor dealer remain happier forever for the prosperity of both side business. Old Tractor Dealership Raises Through: Old tractors business would be raises through company proper Support to old tractor dealers and mutually understanding between both dealers new and old tractors dealers. There are three important pillars for successful old tractors business running are Company Existing New Tractor Dealer Old Tractor Dealer

The equal understanding between these three pillars is essentially for increase the old tractors market. Availability of facilities from Company Side to Old Tractor Dealers: Company should provide facilities to the old tractors dealers like new

tractors dealers and make concentration on old tractors business. Company cant provide commission to the old tractor dealers but offers

some incentive and reward according their work. Company should permit the old tractor dealers to keep spare-part of other

company models. Old tractor dealer dont have old tractor according to the customer

requirement. So, at that time Company should manage immediate delivery of that

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old tractor from other old tractor dealer who have and distribute the profit between both dealers. Company should appoint a separate sales-manager for old tractor business

that works like new tractor business. Company should also provide the training to the old tractor dealers

mechanics. Company should make a pact with government and private bank for old

tractors loan at reasonable interest rate to increase the old tractor Business.The People whose interested to buy a old tractor are mostly economically weak and have not sufficient money to buy easily without any problem. So, the loan facility on old tractors increases the old tractors business and people have taken more interest to buy old tractors.

Rules and Regulation for Old Tractor Dealership: Some rules and regulations necessary for maintain the old tractor dealership are If an old tractor dealer sale his tractor at other old tractor dealer territory then, he is bond to give some part of profit to that dealer. If an old tractor dealer buy an old tractor directly then he is bond to sale a new tractor of existing new tractor dealer.

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5.6 Company Separate Market Strategies for Old Tractor Business:

To Influence the old tractor Business Company creates separate market strategies for old tractor business as well as new tractor market strategies to increase the new tractors business. MARKETING STRATEGIES: Separate marketing strategies necessary for old tractors business like new tractor business because marketing starts with the discovery of customer needs and it ends with the satisfaction of these needs. SALES AND PROMOTION STRATIGIES: Sales and Promotion is a key ingredient in marketing campaigns. To use effective tool of sales and promotion for increasing the old tractors business like new tractor business. Uses of Sales Promotion: Introduction of old tractor dealership Retrieving lost account To overcoming a unique competitive situation Support and supplement to the advertising effort To overcome Seasonal slumps
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ADVERTISING STRATEGIES: To Inform the People of the area about old tractor dealership through proper advertising. Advertisement is necessary because its turn the attention of the people through various banners. Medium like newspapers, pamphlets, brochure and

Old Tractor Dealers run their Business through: Old Tractor Dealers can frequently sale his tractors through different medium that increase their sale and reduce burden about engage money in the Old Tractor Business through Effective direct sale of Old Tractors by himself through different types of sales strategies. Brokers have most important part in old tractors business. When a dealer sale his tractor through the broker decide to take his commission on the basis of percentage in the tractor sales price. Mostly professional broker of the tractors have take 2% of the tractor sale. Some time nonprofessional broker like local village middleman also works as a broker at a reasonable commission about Rs.500Rs.1000 on a old tractor sale.

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5.7 Understanding Between Existing New Tractor Dealers And Old Tractor Dealers: To establish the old tractor business perfectly in the market, its necessary that both tractors dealers mutually understand themselves .If one of them have not take part truly Or honestly then old tractor business not run long .So, these following point are necessary for old tractor business Understanding between both dealers on old tractor exchange with new tractor. Understanding between both dealers on old tractor transactions. Understanding between both dealers on old tractors market. When a new tractor customer come to the existing new tractor dealer to exchange his old tractor with old tractor then existing new tractor dealer should inform the old tractor dealer about it. Then old tractor dealer come to the new tractor dealer and estimate the true of old tractor and take it on self responsibility and give the tractor price to the new tractor dealer. If old tractor dealer directly takes an old tractor then he should try about that seller of old tractor buy new tractor from the existing new tractor dealer.

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Relationship between Old Tractor Dealer and Tractors Broker: Its necessary for Old Tractor Dealer to make Healthy relation with tractors brokers to maintain the old tractors sale because old tractors doesnt sale easily. In this situation dealers money engages in these old tractors that they have through exchange with new tractors. To get the solution of this problems through make healthy relationships with tractors brokers because they have spend their time mostly with the different types of old tractors users and keep full information about the old tractors and their customers. So, Its necessary for tractor dealers to make prosperous relationship with tractor brokers. Old tractors Dealers should also maintain the relationship with local tractors mechanics for old tractor business because mostly customers of old tractors buy it through the local mechanics suggestion that which old tractor is right or wrong for you. Thinking of old tractors customers is that a mechanics know well about old tractors condition and price in comparison of self. Its true that a mechanics known well about old tractors condition and estimate true price with any type of mistakes that create problem in future for customers of old tractors.

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