Internship in Tata agrico 2009

Xavier Institute – XIDAS, Jabalpur, Madhya Pradesh

A REPORT

on

Sales of TATA AGRICO Product in Jamshedpur RegionSubmitted in the partial fulfillment of the Post Graduate Diploma in Management

Submitted to

Xavier Institute – XIDAS,

Jabalpur,Madhya Pradesh

Under the Guideline of

Mr Apoorva Nema

Submitted by

Bivash Singh

PGDM (Batch-2008-10)

XAVIER INSTITUTE OF DEVELOPMENT ACTION AND STUDIES(XIDAS)

4th Mile, Mandla Road, Tilhari, Jabalpur- 482020 (M.P.)

0


Chapter – 1 Introduction

1.1 Background of study

1.2 Need of study

1.3 Objective

1.4 Chapterization

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Chapter – 2 Market research methodology

2.1 Research Objective

2.2 Methodology

2.3 Sample size & Sampling units

2.4 Limitations

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Chapter – 3 Organizational profile

3.1 Company profile

3.2 Vision

3.3 Mission

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Chapter – 4 Area profile 14

Chapter – 5 Analysis and discussion

5.1 Customer analysis

5.2 Dealer analysis

5.3 Finding

5.4 SWOT analysis

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Chapter – 6 Summary and conclusion

6.1 Conclusion

6.2 Recommendation

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Chapter – 7

Annexure

References

I. Dealer questionnaire

II. Customer questionnaire

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35

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S. No. Particular Page No Page No.

CONTENTS


Declaration by the student

I hereby declare that this project report titled “Market Study of Sales of TATA AGRICO Products in Jamshedpur region” has been submitted by me for the award of post graduate diploma in management, as partial fulfillment of the requirement for this course.

This is the result of the original work carried out by me. This report has not been submitted anywhere else for the award of any other degree/diploma.

Bivash Kumar Singh

[PGDM-2008-10]

Signature of the student:

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Certificate by the Guide

This is to certify that “Mr. Bivash Kumar Singh” has carried out Project report titled “A Detail

Market Study of Sales of TATA AGRICO Products in Jamshedpur region” as partial

fulfillment of the requirements for the Post Graduate Diploma in Management, under my

guidance during the academic session 2008-10.

It is also certified that the report presented embodies the original work of the student. The

present report can be forwarded for evaluation.

Mr. Apoorva Nema

Signature

Date:

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Acknowledgement

It is difficult to express adequately my gratitude to those who have shared their expertise and

knowledge and without whom the completion of the project report would have not been

impossible.

We would like to add a heartfelt sense of gratitude to all those who helped me during the

completion of this project. This project bears the imprint of many people. First of all, I would

like to thank Respected Mr. S.N SAFI, ( HR) for providing us the encouragement to work on

this project.

We are grateful to Respected Mr. Kamlesh Kumar (Manager, Mkt.) for giving me an opportunity

to work on this project. Without his cooperation this project would not have been a success.

I also extend our heartfelt thanks to respected Mr. Apoorva Nema (Faculty Guide) for giving me

their valuable guidance during the research and for the support and the facilities provided to

execute the project.

This summer project is written by encouragement and prodding of all the people who have

devoted their valuable time and help in completion of this project.

Thanking You,

Bivash Kumar Singh

List of Tables Page No.

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Customer’s & dealer's

Customer’s

Table 1- Aware and not aware percentage……………………………………..

Table 2- Percentage of user or not user………………………………………..

Table 3- Competitors present in the market …………………………….

Table 4 -Suggestions given by the customers…………………………………

Table 5 -Frequency of purchasing tools………………………………………..

Table 6 -Quantity of purchasing tools………………………………………….

Table 7 -Age group of customer……………………………………………….

Table 8 -Customers contacted ……………………………………………….

Dealer's

Table 9 -Sales of Tata Agrico…………………………………………………

Table 10-Commercial advertisement effect on sales……………………………

Table 11 -Media for advertisement……………………………………………

Table 12 -Tata Agrico brand…………………………………………………...

Table 13 -Reason for success…………………………………………………..

Table 14- Reason for unsuccessful……………………………………………..

Table 15 -Competitor…………………………………………………………..

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17

19

19

20

20

21

22

23

23

24

25

25

26

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FIGURE

Figure 1- Map of India and Jamshedpur 14

CHART

Chart 1 Aware and not aware percentage…………………………………..

Chart 2 Customers which are user or not user……………………………

Chart 3 Frequencies of uses of different products………………………….

Chart 4 Competitors present in the market………………………………….

Chart 5 Influencing factor for the user and non-user……………………….

Chart 6 Promotional awareness about the product…………………………

Chart 7 Suggestions given by the customers………………………………

Chart 8 Frequency of purchasing tools……………………………………...

Chart 9 Quantity of purchasing tools…………………………………………

Chart 10 Age group of customer……………………………………………

Chart 11 Customers contacted …………………………………………….

Chart 12 Distribution of the customer………………………………………

Chart 13 Customers of the products…………………………………………

Dealer's

Chart14 Sales of Tata Agrico……………………………………………….

Chart 15 Commercial effect on sales………………………………………..

Chart 16 Media for advertisement…………………………………………

Chart 17 Tata Agrico brand…………………………………………………

Chart 18 Reason for success………………………………………………….

Chart 19 Reason for unsuccessful……………………………………………

Chart 20 Competitor…………………………………………………………

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16

17

17

18

18

19

19

20

20

21

21

22

22

23

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24

24

25

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List of Figures and Charts Page No.


Executive Summary

It was my great pleasure, to work on this project and to know, the Sales of TATA AGRICO

Products in Jamshedpur city. The Project gave me immense learning experience and exposure to

know:-

Sales of the products,

Ways to increase the sales,

Customers and Dealers problem and how to satisfy them,

Market dynamics of agriculture implement industry.

It is no wonder that in today’s aggressive business environment, the challenges of sustaining in

these competitive surroundings, preoccupies the minds of many Business leaders. Corporate

customers and individual customers have many options to choose commodities from competitive

market. Furthermore, they often perceive that what they are purchasing is, for all practical

purposes, a commodity that can be easily obtained from other companies, if need be. So, how

does a corporation distinguish itself in a highly commoditized and competitive market? Today’s

business is more dependent, than ever before, on their top performing product to be innovate and

provide services that differentiate a company from its fierce competitors. In other words,

corporations rely upon their product and human assets to survive and thrive.

TATA Steel is the leading manufacturer of agricultural implements, catering to the needs of the

country since 1925. The company has become a pioneer in the field of manufacturing superior

quality of agricultural implements and tools. Manufactured with world class technological

expertise, these implements are stronger and long lasting than any other ordinary agricultural

implements. The average number of products supplied yearly is about 50-55 lakhs. It was

revealed that our country needs various agricultural implements and hand tools, approximately

300 lakhs per year. The small players as well as some percentage of import products meet the

short falls on the consumption. However, Tata Agrico feels that customer insight remained an

area of improvement. Hence the following project is taken up with an expectation that it will

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help Tata Agrico officials to plan their product promotion activities more effectively keeping in

mind the needs of end users.

To begin with the project, firstly, the researcher made an area study of Jamshedpur region. Then

the researcher met dealers and various customers of Tata Agrico in respective areas the city.

After studying the market it can be said that there is tough competition between Tata-Agrico

products and other local agricultural implements available at lower costs. At the end some

suggestions have been given to improve the sales of Tata Agrico Products in agricultural

implement market and boost the market share.

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Chapter - 1: Introduction

1.1 Background

Sales are the final activity involved in marketing of products or services in return for money or

other compensation. It is an act of completion of a commercial activity.

A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to

an acquisition or appropriation or request followed by the passing of title (property or ownership)

in the item and the application and due settlement of a price, the obligation for which arises due

to the seller's requirement to pass ownership, being a price the seller is happy to part with

ownership of or any claim upon the item. The purchaser, though a party to the sale does not

execute the sale, only the seller does that. To be precise the sale completes prior to the payment

and gives rise to the obligation of payment. If the seller completes the first two above stages

(consent and passing ownership) of the sale prior to settlement of the price the sale is still valid

and gives rise to an obligation to pay.

1.2 Need of the study

The purpose of this study was to know the facts about other competitors of Tata Agrico in

agriculture implement. Tata Agrico products are the leading and demanded products by

customers but today numbers of other competitors have made the environment tough far Tata

Agrico products. There were other reasons too to know and analyses the response of customers

and in awareness which in turn can increase the sales of TATA Agrico product.

1.3 Objective of the study

The summer internship of seven weeks at Tata Steel was with the purpose of unearthing a few

facts about the TATA AGRICO. This was done to find the ground level reality associated with

TATA AGRICO and impact of branding the product. The main objectives are:-

1. Whether the branding of the products has affected its sale in the market?

2. What are the main determinants effecting the buying decision process of the customer?

3. Who all are the market challengers and followers and what are the strategies being

implemented by them to gain market share?

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4. To ascertain the level of brand awareness and the quality provide by various brands

among different customer groups?

5. What will be scope of branded product like billet and sheets in near future?

1.4 Chapterization

First Chapter gives an overview of the company and the blue print of research report, including

chapterization and need of the study.

Second Chapter includes the research methodology adopted, sampling design, methodology

used for data analysis and limitations of the study.

Third chapter describes the organization profile including vision and mission of the

organization.

Fourth chapter is concern with the area profile of Jamshedpur region and also describes the

physical and geographical boundaries of the region under study.

Fifth chapter provides detail from the respondent, analyses using graphs and charts and finding.

Sixth chapter includes the summary and conclusion based on the survey

.

Seventh chapter provides the references used during the project.

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Chapter-2: Market Research Methodology

2.1 Research Objectives

1. To study customers perception about Tata Agrico products.

2. To identify the factors that influence the buyers to buy and non- buyers not to buy the

Tata Agrico products.

3. To examine the effectiveness of various promotional activities on sales.

4. To study dealers perception about Tata Agrico products.

2.2 Methodology

Sources of data

The data is basically primary in nature.

It is obtained from the dealers and customers (farmers, labourers, contractors, etc).

Method

Communication approach was basically structured questioning, that is personal interview

with the aid of printed questionnaires.

To serve the purposes, two separate questionnaires were designed for dealers and the end

customers so as to gain the maximum relevant information taking minimum time.

2.3 Sample Size:

Convenience sampling: it is a convenience sampling suiting the project requirement

Customer sample size – 40 and Dealer sample size – 15

Sample Units:

Sampling units were personnel from different dealers of Jamshedpur.

2.4 Limitations of Study

Prejudice of some of the respondents.

This being a convenience sample, the analysis may not be a true picture of the target

population.

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Chapter – 3: Organizational Profile

TATA STEEL, formerly known as Tata Iron and Steel Company Ltd (TISCO),

the company around which the entire township of Jamshedpur was built, was

registered in Bombay (now Mumbai) on August 26, 1907. It had an initial

capacity of 160,000 tonnes of pig iron, 100,000 tonnes of ingot steel, 70,000 tonnes of rails,

beams and shapes and 20,000 tonnes of bars, hoops and rods. It also had a powerhouse, auxiliary

facilities anda laboratory. In 1917, the company increased its steel production capacity to

500,000 tonnes and introduced the Modern Duplex process of making steel. Since then the

company has continued to add new units and increase capacity

3.1 Company Profile

TATA Agrico, a division of Tata Steel is the pioneer manufacturer of superior quality

agricultural implements in the country. Since 1925 to 2003, it had been the leading manufacturer

of agricultural implement. Now these days it has been providing raw material for manufacturing,

and take care of marketing. The division’s product mix comprise of

Shovels,

Powrahs,

Crowbars,

Pick-Axes (Kudalis),

Stickles,

Hammers, and

Garden Tools

These cater to the diverse need of agriculture, horticulture, maintenance of roads, dams, railway

–track and collieries, both in India and abroad.

The TATA AGRICO was first manufacturer of agricultural implements (Hand tools) in India to

achieve ISO 9002 Certification in 1994, which was further upgraded to ISO 9001. This ensures

world class systems in its operations. TATA Agrico implements are manufactured in one piece

from Tata High Carbon Steel by forging. The skill and knowledge acquired since 1927, modem

methods of manufacture such as forging, and heat treatment and strict supervision at every stage

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of manufacture, guarantee consistently good quality and durability of Agrico products. The high

quality of TATA Agrico implements makes them the first choice of Agriculturists, Government

Agricultural Departments, The Railways, Defence Services, Collieries and Central and State

Government Departments.

3.2 Vision -2012

Value Creation: increase our ROIC to 30% from the current 16%.

Safety: Reduce LTIF to 0.4 compared to the current 1.7

Environment: Reduce CO2 emissions to 1-5tons/ton of liquid steel compared to the current 1-

8T/Tls.

Employer of choice: Across all industries-top quartile

TATA steel has outlined its vision for 2012 which entails, among other things, -doubling of

returns on investments (ROI) from around 16% at present to 32% by that year. By 2012, the

group hopes to be the global steel industry benchmark for value creation and corporate

citizenship.

3.3 Mission

Consistent with the vision and values of the founder Jamshedji Tata, TATA steel strives to

strengthen India’s industrial base through the effective utilization of men and materials. The

means envisaged to achieve this are high technology and productivity, consistent with modern

management practices.

TATA steel recognizes that while honesty and integrity is essential ingredient of a strong and

stable enterprise, profitability provides the main spark for economic activity

Overall, the company seeks to scale heights of excellence in all that does in an atmosphere free

from fear and one which encourages innovativeness and creativity.

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Chapter – 4: Area Profile

4.1 Physical boundaries/ Geographical boundaries

Jamshedpur is located at 22.8°N 86.18°E. It has an

average elevation of 135 meters (442 ft).

Jamshedpur is located in a hilly region, and its

terrain is quite uneven. . Jamshedpur occupies

about 2.03% of the total area of Jharkhand. Total

geographical area of Jamshedpur is 230.59 km

square. It receives about 1200 mm of rainfall

annually.

Jamshedpur is the largest city and urban

conglomeration in the state

of Jharkhand (formerly in the state

of Bihar) with a population of 1.1million

(as per 2001 census). Jamshedpur is the

first well-planned industrial city of India,

founded by the late Jamshedji

Nusserwanji Tata and ranks 28th among

the 35 million-plus cities and is also the 32nd urban agglomeration in India according to the

census 2001. Located in the East Singhbhum district of Jharkhand on the Chota Nagpur plateau,

it is the district headquarters and is surrounded by the beautiful alma. The

rivers Subarnarekha and Kharkai border the North and West of the city, respectively.

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Figure 1 – Map of India and Jamshedpur

http://stable.toolserver.org/geohack/geohack.php?pagename=Jamshedpur&params=22.8_N_86.18_E_

http://en.wikipedia.org/wiki/Subarnarekha_River

http://en.wikipedia.org/wiki/Plateau

http://en.wikipedia.org/wiki/Chota_Nagpur_Plateau

http://en.wikipedia.org/wiki/Jharkhand

http://en.wikipedia.org/wiki/East_Singhbhum

http://en.wikipedia.org/wiki/Jamsetji_Tata

http://en.wikipedia.org/wiki/Jamsetji_Tata

http://en.wikipedia.org/wiki/Bihar

http://en.wikipedia.org/wiki/Jharkhand


4.2 Basic demographic profile of the people residing in the area

As of 2001 India census, Jamshedpur had a population of 1,134,788 and ranks 28th among the

35 million-plus cities in India according to the census 2001. Males constitute 53% of the

population and females 47%. Jamshedpur has an average literacy rate of 82%, higher than the

national average of 59.5%. In Jamshedpur, 11% of the population is under 6 years of age.

The conversational language is Hindi. However tribal languages like Santhali and Ho are also

spoken in some parts of the city. The population is cosmopolitan in nature owing to migration of

people from all over the country to work in the numerous industries present in the city. The main

religious groups are Bengalis, Biharis, Punjabis, Oriyas, Gujaratis, Marwaris and Muslims apart

from the native tribal population. There is a small but significant number of South Indians as

well, principally from Andhra Pradesh; Tamil Nadu & Kerala.

Major festivals celebrated include Makar Sakranti, Durga Puja, Deepavali, Holi, Christmas, Id-

ul-Fitr and Chhath.

15

http://en.wikipedia.org/wiki/Kerala

http://en.wikipedia.org/wiki/Tamil_Nadu

http://en.wikipedia.org/wiki/Andhra_Pradesh

http://en.wikipedia.org/wiki/South_Indian

http://en.wikipedia.org/wiki/Muslim

http://en.wikipedia.org/wiki/Marwari

http://en.wikipedia.org/wiki/Gujarati

http://en.wikipedia.org/wiki/Oriya

http://en.wikipedia.org/wiki/Punjabi

http://en.wikipedia.org/wiki/Bihari

http://en.wikipedia.org/wiki/Bengali

http://en.wikipedia.org/wiki/Ho_language

http://en.wikipedia.org/wiki/Santhali

http://en.wikipedia.org/wiki/Hindi

http://en.wikipedia.org/wiki/Census


Chapter – 5: Analysis and Discussion

Analysis of Customer Survey

1. Awareness of Tata Agrico product

2. Users of the Tata Agrico product

Table and chart-2 illustrate that 52% of the respondents who are the users of Tata Agrico

products and 48% of the respondents are non-users. It is because the products of Tata Agrico are

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53%48%

Chart 2- User/Not-user

Yes

No

Table: 1

Table: 2

80%

20%

Chart 1- Aware /Not Aware

Yes

No

Frequency Percent

yes 32 80.0

No 8 20.0

Total 40 100.0

Frequency Percent

yes 21 52.5

No 19 47.5

Total 40 100.0


unavailable at the time when it was required and also it is observed that its’ price are very high

comparative to other local brands which are easily available at low price.

3. Satisfaction level with the Tata Agrico products (For users only)

It is observed from table and chart-2 that there are 21 users of Tata Agrico Products who felt that

they are satisfied with the Tata Agrico products.

4. Tata Agrico product which are mostly in use

Chart-3 shows that there are only 9

respondents who accepted that they use

the Tata hoes most and 7 of them

responded that they use hammers most

whereas there are 19 respondents who

expressed that they use none of these

Agrico Products in their daily life.

5. Competitors of Tata Agrico

Table-3 and chart-4 illustrate that there are 24 respondents

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0%20%40%60%80%

100%

9 2 1 7 2 19

Chart 3-Tata Agrico product used by consumer

Tata Agrico product used by co...

16%

26%

21%

37%

Chart 4- Competitors of Tata Agrico

SRG India

Kinger

Hurkut

Others

Table: 3

Frequency Percent

SRG India 24 60.0

Kinger 5 12.5

Hurkut 4 10

Others 7 17.5

Total 40 100.0


Table and Chart-4 shows that there are 24 respondents who said that SRG India is the toughest

competitor of Tata Agrico products according to end customers’ perception. SRG is the local

brand which is sold at cheaper price. It is observed that because of low price customers are

motivated to purchase the local brand of SRG India.

6. Influencing factors in buying the tools

Chart-5 depicts the intensity of users how

they are influenced by brand, performance,

durability and quality which play a major

factor in deciding the Tata Agrico products

to purchase the products whereas for non-

users all these factors do not affect them

much. They are unsatisfied because they

feel that the products are outsourced from

other companies.

6. Promotional activities and various schemes

Chart-6 states that there are 76% of end

customers who said that they are not aware

of any promotional activities done by the

Tata Agrico. While only 24% respondents

said that they have seen hoardings, banners

and other promotional activities at very rare

times.

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Brand Im

age

Reliab

ility

Perfoman

ce

Durabilit

y

Quality

Appearan

cePric

e0

2

4

6

8

Chart 5- Influencing factor for the user / non user

user non-user

76%

24%

Chart 6- Promotional awareness

YesNo


7. Suggestions by the customers to improve the sales.

According to the table-4 and chart-7 it is observed that there are 45% of respondents who

suggested that “Promotional schemes for customers” are the central factor to improve the sales,

whereas 40% of them said that it is the decrease in price can improve which in turn will improve

the sales of the product.

8. Frequency of purchasing tools

Table-5 and chart-8 illustrate that 50% end customers

purchasing tools half-yearly, rest 30% and 20%

purchase yearly and quarterly respectively.

9. Quantity of purchasing tools

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15%

45%

40%

Chart 7- Suggestions given by consumers

Availability

Schemes for consumers

Price

Table: 4

Table: 5

Table: 6

Frequency Percent

Availability 6 15.0

Customers

schemes

18 45.0

Price 16 40.0

Total 40 100.0

Frequency Percent

Quarterly8 20.0

Half-

yearly20 50.0

Yearly12 30.0

Total40 100.0


70%

25%

3%3%

Chart 9- Quantity of purchasing tools

1-5.6-10.11-15.15>

Table-6 and chart-9 depicts that there are 70% customer preferred small quantity to purchase

because they are mostly farmer. Contractor are bulk buyers.

10. Demographics:

<25 25-34 35-44 45>

05

1015202530

28

1614

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Chart 10- Age Group of consumer

Age Group of consumer

Table-7 and chart-10 illustrate different age group of people purchasing implements, among

these group 25-34 age of end customers mostly are purchaser.

11. Occupation

20

Table: 7

Table: 8

Frequency Percent

1-5 28 70.0

6-10 10 25.0

11-15 1 2.5

15> 1 2.5

Total 40 100.0

Frequency Percent

<254 10.0

25-3416 40.0

35-4414 35.0

45>6 15.0

Total40 100.0


Table-8 and chart-11 reveals that the majority (47.5%) of Tata Agrico implements purchaser are

contractor and farmers, labours, gardeners contribute just 20% or less.

4.2. Analysis of dealer’s survey

Number of dealers

21

Chart-12 shows the number of dealers

active in the research areas. There are

40% of dealers in Jugsalai, in Bistupur

12%, Mango 8%, Sakchi 24%, parsudih

10% and in Burmami 6% who are active

in the distribution of the of Tata Agrico

products.

Frequency Percent

Farmers8 20.0

Labours8 20.0

Contractors19 47.5

Gardeners5 12.5

Total40 100.0

Sakchi,24%

Mango8%

Bistupur12%

Jugsalai40%

Bur-mamines

6%

Parsudih10%

Chart12- Distribution of the customer


.

2. Customer of the product

3. Percentage of Tata Agrico products in total sales of Dealers

22

Sakchi,24%

Mango8%

Bistupur12%

Jugsalai40%

Bur-mamines

6%

Parsudih10%

Chart12- Distribution of the customer

Chart-12 shows the number of dealers

active in the research areas. There are

40% of dealers in Jugsalai, in Bistupur

12%, Mango 8%, Sakchi 24%, parsudih

10% and in Burmami 6% who are active

in the distribution of the of Tata Agrico

products.

9%

23%

68%

Chart 13- Customers of the products

FarmersLaboursContractors

Chart-13 illustrates number of

customers of the products. There are

almost 68% of the sales comes from

by the contractors, 23% from labours

and 9% from farmers’.

Table: 9


Table-9 and chart-14 portray that 60% of the respondents said that Tata Agrico has 0-25 percent

share of the sales in their total sales in a year and 40% said it is between 25-50%.The Agrico

product market is limited. The customer only purchase few product of their product line and also

in few quantity which is not enough to make it sale share more then 25-50%.

4. Awareness of any promotion activity

Almost all respondents said that they are not aware of any promotional activity done by Tata

Agrico.

5. The effect of promotional activities on sales

23

60%

40%

Chart 14 - Sales of Tata Agrico

0-25

25-50

Frequency Percent

0-259 60.0

25-506 40.0

Total15 100.0


Table-10 and chart-15 depict the effect of promotional activities on sales. Thus it was found that

there are 73% of the respondents who felt that the promotional activity will increase the sales and

only 27% of them stated that it will not affect the sales. It was found that if company works on

promotional activities there will be surely tremendous change on the sale.

6 The preferring media for advertisement according to dealers

24

Table: 10

Table: 11

73%

27%

Chart 15- Commercial effect on Sales

Increase in sale

No change in sales

Table: 10

Frequency Percent

Increase

in sales 11 73

No

change

in sales

4 27

Total15 100.0


20%

33%

47%

Chart 16 - Striking media for promotion activi-ties

NewspaperRadioHoarding

Table-11 and chart-16 explain that according to dealers promotional activities (advertisement)

are done through media and that too hoarding is mostly preferred by customers. There are 47%

of the respondents who said that hoarding is the best ways of advertisement which is mostly

observed by people. Hoarding is the most successful media for promotional activities because

customers mostly look at the hoardings . If hoarding put on the choraha of village or semi village

it can increase the visibility/ awareness of TATA Agrico product.

7. Tata Agrico as brand

6.

25

Table: 12

87%

13%

Chart 17 - Tata Agrico brand

successful

un-successful

Frequency Percent

Newspaper3 20

Radio 5 33

Hoarding 7 47

Total15 100.0

Frequency Percent

Successfu

l13 87

Un-

Successfu

l

2 13

Total15 100.0


8. Factor behind the Tata Agrico being a successful brand

40%

13%

47%

Chart 18 - Reason for success products

Brand name

Range of product

Quality

Table-13 and chart-18 state that the reasons for success of the Tata Agrico products are because

of quality which 47% of the respondents accepted whereas 40% of them said that it is because of

brand name of Tata and the rest 12% of them felt that it’s due to the product range.

Unsuccessful brand

26

Table: 13

Table: 14

87%

13%

Chart 17 - Tata Agrico brand

successful

un-successful

27%

73%

Chart 19 - Reason for unsuccessful products

Promotional activ-ity

Price

Frequency Percent

Brand

name

6 40

Range of

product

2 13

Quality 7 47

Frequency Percent

Promotiona

l Activity

4 28.5

Price 11 71.4


Table-14 and chart-19 show the reasons for unsuccessful. There are 73.4% of respondents who

said that price is the main cause of being unsuccessful as well 27% of them mentioned that

promotional activity is the main reason to be unsuccessful as a brand is negativily. It is observed

that the prices of the Tata Agrico products are very high which cannot be easily impact the

overall sales of TATA Agrico product.

9. Toughest competitor to Tata Agrico product

27

Table: 15


60%13%

7%

20%

Chart 20 - Competitor

SRG India Kinger Hurkut Others

Table-15 and chart-20 depict that SRG India is the toughest competitor of Tata Agrico. There are

60% of respondents who accepted that SRG India is the closest competitor of Tata Agrico.

Findings

28

Frequency Percent

SRG

India 9 60

Kinger 2 13

Hurkut 1 7

Others 3 20


During the research process it was found that majority of the customers expressed that the brand

of Tata Agrico products are successful but in reality the product brand of Tata Agrico has not

influenced enough to the customers for the following reasons.:

It was found that at the time of their purchase the other brands had dominated

much more with better promotional schemes and in affordable as compare to the

Tata Agrico products.

Unavailability of products of Tata Agrico in normal shop is another reason so they

purchase whatever is present at that moment. Improving the distribution channel

can positive the impact the sales Tata Agrico product.

Dealers even find the brand to be successful but because of some reasons:

Tata Agrico is not promoting the products.

Price is very high as compared to the other competitors.

Service provided by the distributors is not good in the Jamshedpur region.

Dealer’s incentive is very less.

As discussed above there are many factors which are taken into consideration while making a

decision to purchase the product like:

Quality

Price

Brand image

Durability and performance

Above these factors are disturbing the sales, but in the case of Tata Agrico they have better

concert in all above thing excluding the price, the price of implements is more than the

competitor .

In competitive market scenario promotional activities is an important part of the management

strategic but Tata Agrico is lacking in this activity. They are not engaged as like according to the

market demand so it has to work on this.

SWOT Analysis of the company

Strength

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Best distribution channel in India,

2500 retail outlets,

Cash business,

Wide range of products,

Outsource business,

Brand loyalty,

Quality assurance,

Never comprise with quality and weight

Weakness

Billing problem

Delay in goods supply in some region,

High price as compared to competitors

Opportunity

Export in all over country

Grabbing African market

Increase basket of product

Educate customers for best uses of Agrico products

Now these day’s people are becoming more aware as far as brand value is concerned, so it’s a

good time to create awareness of Tata brand among them.

Threats

Direct marketing (competitor provide direct marketing facility to dealers )

Competitor products are more attractive with good finishing and packaging

Competitor product are available at much lower price than Tata Agrico product

The biggest threat for Tata Agrico is the tendency of retailers to advocate the

customer to switch over to the brand due to lower price of the brand and great margin

in them.

Chapter - 6: Summary and conclusion

From the field survey it has been assessed that branding has become the most important element

of the marketing function in almost all industries. Brand management is the process, by which

30


Tata Agrico can outshine its competitors, can create customer loyalty and add corporate value on

brand. In the current competitive markets, brands have become to be identified as an intangible

asset that can be revenue generating in the long term.

Being the oldest player dealing with Agrico products in the market as well as being a business

unit of the successfully running Tata group, Tata Agrico has gained brand image in the market.

But as the business scenario is changing with inclusion of more number of competitors, Tata

Agrico has to upgrade the brand management continuously. It has maintained an appreciable

quality of the product, but it has to give more attention on distribution channels, promotions like

dealers and customers incentive, advertising, rural marketing and especially on pricing.

If Tata Agrico manages its brand image in the market and represents itself as a national brand by

fulfilling all the factors that discussed above, it can run its business successfully and thus can be

a leading agricultural implement player in market.

In order to maintain the quality of the product TATA Steel has signed an agreement with their

EPA’S(External Processing Agents), giving them full support to standardize their processes,

methodology of inspection, and quality system, by giving them regular training.

Recommendations

Tata Agrico should initiate its marketing activities across all over India to increase the

visibility of Tata Agrico brand.

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While delivering its product to customer Tata Agrico can give gifts like pen, key rings,

diaries, letter- pad etc with the name Tata Agrico engraved on it to promote customer

loyalty.

Launch lucrative and incentives scheme which can motivate dealers.

Educate the customers about the genuine Tata Agrico product through product

communication campaign.

Protect the brand and differentiate it from spurious product.

Concentrate on rural marketing through wall painting and hoarding.

Create awareness about the brand across the country through regional advertisements in

agricultural programmes through Radio, TV, and Newspapers.

Tata Agrico should work for a new restructuring process by which it can keep itself very

competitive in the market. The company should arrange its manufacturing units across

India to decrease its transport costs so that it can bring down its total manufacturing costs

easily and can tap Indian market efficiently.

References

Information’s were collected from internet site, books and library for primary data collection.

Books

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Philip Kotler & Kevin Lane Keller, (2009), Marketing Management (13th Edition), PHI

Learning private Limited, New Delhi.

C R Kothari, (2004), Research Methodology, (Second edition), New Age International

Publisher Limited, New Delhi.

Donald R Cooper, (2003), Business Research methods, (Sixth edition),pub.place

Internet site

< http://www.tatasteel.com/company/default.asp>, Retrieved on 28/6/2009,7:00 P.M

<www.google.com>, Retrieved on 3/07/2009,6:00 P.M

<http://www.tataagrico.com/about.shtm & products.shtm>, Retrieved on 4/07/2009,7:00

P.M

<www.expressindia.com>, Retrieved on 7/07/2009,2:00 P.M

Library

Shavak Nanavati Technical Institute (SNTI) Library

Tata Management Development Centre (TMDC) Library

Annexure

I. Questionnaires for customer’s perception about agricultural tools

33

Title of study: - Detail Market Study of Sales of TATA AGRICO Product in JAMSHEDPUR.

Customer’s name: Occupation:

Address:


1) Which agricultural tools you are using?

Hoes Shovels

Pick-axes Hammers

Sickles Crowbars

Garden Tools

2). Are you aware of Tata Agrico products?

Yes

No

3) Are you a user of Tata Agrico product?

Yes

No

(If no then go to Q.No.11.)

4) In Tata Agrico brand which sub-brand do you use?

Tata Hoes Tata Shovels

Tata Pick-axes Tata Hammers

Tata Sickles Tata Crowbars

Tata Garden Tools

5) What do you think is the toughest competitor to Tata Agrico?

SRG group

Kinger

Hurkut

Any other

Please specify why? .........................................

6) Are you satisfied with the Tata agrico products?

Yes

No

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If No, why? ............................................

7) What influence your decision while buying Tata Agrico Product?

Brand image Reliability

Durability Quality

Appearance Price

Any other? Please specify……………………………..

8) Have you seen any promotional campaign of Tata Agrico?

Yes

No

If yes which one you have seen mostly?

TV advertisement

Outdoor hoardings

Road show

Media interview

Any other? Please specify………….

9) Do the various schemes associated with Tata Agrico affect your purchase?

Yes

No

10) Would you suggest any changes for Tata Agrico product in the following field?

Availability

Style of packaging

More schemes to be associated with the brand

Pricing

Quality

Any other? Please specify …………………….

11) Why not Tata Agrico?

Price

Quality

Packaging

Fewer schemes as compared to other brand

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Any other, please specify? ...................................

12) Which Brand do you prefer to buy?

SRG Group

Kinger Group

Hurkut Group

Any Other? Please Specify? .................................

13) What influence you to buy your preferred brand?

Your colleague Advertisement

Price Quality

Self-experience Any Other? Please Specify……………………..

14) If your preferred Brand is not available then you go for…..

First choice ……………………………

Second choice ………………………...

15) How frequently are you purchasing these tools?

Monthly

Quarterly

Half-yearly

Yearly.

16). what is the quantity of purchasing at a single time?

(1-5)

(6-10)

(11-15)

More than 15.

17) Most preferred brand among people you know?

SRG group

Hurkut Group

Kinger Group

Tata Agrico

Any Other? Please Specify………………….

18) Do you agree with the punch line of Tata Agrico – A Bond of Trust?

36


II.Questionnaires for Dealer’s perception about agricultural tools

Title of study: - Detail Market Study of Sales of TATA AGRICO Product in JAMSHEDPUR.

Shop’s name:

Dealer’s name:

Address:

1. Relationship with company since…………year.

2. Purchase monthly/half yearly/yearly

3. Sales turnover (Rs): monthly……………. / half yearly……………/

yearly……………….

4. Which of the following TATA AGRICO products do you have?

a. Sickles

b. Hoes (Powrah) - West India, East India, others………..

c. Crowbars- (22 mm , 25 mm , 29 mm, 32 mm )

d. Shovels- (Square Nose No. 4, Square Nose No. 6, Round Nose No. 4)

e. Pick-Axes(Kudalis)- (14 CP/DP, 13 CP, 12 CP, 11 CP)

f. Hammers- (Double-Face ,Sledge Hammers)

g. Garden tools

h. Khurpa

i. Tiller shoe

j. Steel files

k. Bill hook

5. In which season, which product sales the more?

……………………..

6. How do you purchase these products?

a. By company directly

b. By distribution channel

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c. Other

7. Name of the distributor?

……………………………………………………

8. Are you satisfied from current distribution services or behavior?

a. _____ Yes _____ No

9. If not then what you want?

10. What is customer’s primary reason for buying or wanting to use TATA AGRICO

product?

____ Price ____ quality____ brand ____ qult.&brand ____ guarantee ____ other

11. What improvements can company make to their offering to better meet customer needs?

12. Do you face any demand & supply shortage problem? _____ Yes _____ No

13. In which product you find the most defects?…………………………………………..

14. Do/did you face any difficulties in replacing the defective goods/product?

15. Do you want any showroom /Depo of TATA Agrico products?

16. Do you require any promotional activity of TATA Agrico?

17. Which companies pose the greatest threat?

18. How do they differentiate themselves?

19. Do you believe that our competitors’ prices are high? _____ Yes _____ No

20. Are there any other services you would like to have offered?

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Documents

Internship in Tata agrico 2009