SYBMS Roll No -57 Rural Marketing The tractor is one of the most important 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. From the given case study it can be observed that the demand for tractors is growing as it has spread from the states of Punjab, Haryana and Western Uttar Pradesh the beneficiaries of green revolution to the west and south states of India. This is because of the irrigation facilities available. Mahindra and Mahindra is the leader in Tractor manufacturing. It has a market share of 38%.However looking at the potential market new players have entered the market. In order to retain its market leadership and increase its market share M&M can improve its rural marketing strategy as follows: A. Innovations in Product The new tractors developed should be more compact to maneuver and provide higher efficiency at reduced cost than the other competitors product. The fuel consumption should be reduced to reduce usage cost. Low maintenance cost. Higher safety, durability, control and stability should be provided. The use of tractors for transportation is a new utility derived by villagers from the product. Keeping this in mind the new tractor should be designed in such a way that its use as a Family Car is also achieved. B. Modifications Adjustable wheel size and distance between wheels for adaptation to various terrains. Attachment for the various agricultural machinery should be designed keeping in mind the different types of soil and crops that it will be used to cultivate in different terrains as the current demand is from all over India. C. Pricing The rural India demands value for its product so a product delivering high value at reasonable price is always opted for by them. The tractor is considered as a symbol of status so it is normally owned by rich farmers. However credit facility schemes with the help of Microfinance Institutions can be made available to the other farmers willing to buy it. A provision where a group of 5 or more farmers coming together and purchasing the tractor can be made.

Also through value engineering the cost of production of tractors can be minimized, to reduce selling price. Also a tractor on higher service through locals can be made available to those who cannot afford even the one with the 25 horse power for the lower segment.

D. Distribution Distribution channels used by them in the North involve dealership. With expansion they need to use more distribution channels such as : Rural retailing in which they can setup retail outlets displaying various models for sale near wholesale market of a taluka and district. Syndicate Distribution in which they can display models of tractors at petrol pumps and tractors can also be ordered. Haats, Melas and Bazzars can also be used to take orders . Tie-up with Gram Panchayat and Cooperative societies to receive orders. E. After Sale Service Service stations at taluka and district level. Service van will visit remote villages every 3 months.

F. Promotion The tractor should be given a name with which the rural people can associate like Balwan or Vardan The strategy should aim at making the word tractor synonymous with Mahindra. Melas, haats, mandis and vans can be used to increase awareness about the product. Wall paintings and posters should be used to capture peoples imagination of the best tractor. Local opinion leaders should be made as models and ambassadors for promoting the product. Demonstration fields should be set up for test drives of the tractor and its test usage. Free training for farmers in efficient agricultural techniques using tractors should be setup.

Short films showing how the use of tractors is better than traditional agricultural methods can be shown.