VANRAJ TRACTORS CASE ANALYSIS

PRESENTED BY;• OLIVIA DUTTA(08)• PRATYUSH MANI TRIPATHI(43)• SANDEEP SINGH(52)

introduction

• M/s Pramal Farmatics Pvt. Ltd comp.• VANRAJ-NEW 10 HP TRACTOR.• Central motor vehicle rule (CMVR)• Bhanjibhai Nanjibhai Mathukia of Gujarat. • Target market

Tractor industry in India

• Third largest gross cropped area but highly fragmented.• High growth rate-World’s largest market.• Farm mechanization- total agricultural production.• Tractorization - a requirement not a substitute.• Non-availability of right kind of tractors to match farmer’s

needs.• Northern part of the country requires lower horsepower

tractors.

Drivers of the tractor demand

• Commercialization of agriculture.• Heavy dependence on monsoon.• High level of govt. support. • Obligations for financial institutions.• Multipurpose.• A symbol of prosperity.• Commercial usage.

CRITICAL ISSUES

• Dilemma of targeting and positioning.• Acute segmentation requirement.• Sales and revenue growth….accurate???• Small is beautiful..is it???

POLITICAL

ECONOMICAL

SOCIAL

PEST ANALYSIS

SEGMENTATION• DEMOGRAPHIC SEGMENTATION

- VANRAJ focused on small and medium farmers. ( large no. of farmers in this segment doesn’t own a tractor AND ARE POTENTIALS FOR MINI-TRACTOR SEGMENT )

- niche in horticulture segment ( farmers have large land holdings.)• BENEFIT SEGMENTATION

- single piece casting tractor(three wheel convertibility, spraying pesticides, power take-off point, transportation need, compatible with farming instruments)

- cost benefit (fuel efficient, low maintenance cost, higher longevity, less fuel consumption, low initial cost)

• PRODUCT SEGMENTATION• GEOGRAPHIC SEGMENTATION.

TARGETING

MULTI- SEGMENT TARGETING

POSITIONING• Benefit or attribute (A “Single piece casting tractor” )

• Quality and price (versatile technology, affordable price)

• Competition ( Vanraj could perform all functions of big tractors, durable than Chinese tractors)

.

strength weakness

opportunity threat

• Huge potential market.• Low on fuel consumption-cost advantage.• Economical.• Simplified design and low maintenance

requirement.• Small in size but high on power.• Supports multi functions.• First mini tractor with POWER TAKE-OFF.• High on convenience.

STRENGTH

•Research and development.

•New product in the market

•Increase in price of steel.

•General perception-high power tractor preference.•Low on ground clearance.

weakness

• No big players in “mini tractor segment”.• India has only 8 tractors per thousand hectares

of land.• Government support for carrying various

operations in agriculture.• Small farmers still not served with technological

advancements.

opportunity

• Huge competition from local players.• Existing players have a good market capture.

• Failure of proper positioning may arise.• Already existing Mahindra Yuvraj-15 HP.

threats

RECCOMENDATION

• Small farmers-perfect target but keep the soil type segmentation in mind.

• Position carefully-not as cheap brand but economical and cost effective brand.

• Educate customers through extensive promotion thorough various channels.

• Increase in ground clearance & speed.• Make it more cost effective if plan to fight with new

strong entrant in this category-HMT.• Target horticulture farms more than acute

agricultural crops.