1. 2. introduction An idea evolved in the mind of a small farmer, turned into a mini tractor.

Innovation was done at the grass root level. Mini tractor was made in view of the small
& individual farming need. It was made to eliminate the problems created by the usage
of bullockcarts in the fields. Mini tractors reduced the working hours of the farmers.
2. 3. The dilemma Targeting will be successful or not. The estimated sales and revenue
growth will be achieved or not. This market segment will be according to the company
goals and objectives or not.
3. 4. Benefits of mini- tractor Affordable price. Gear selection facility. Lower operating
cost. Limited liability. Low maintenance & easy Useful for material handling repairs.
in small industries, warehouses, & airports. Smaller wheel base & turning radius. Best
for interculture operations. Accessibility to smaller areas. Reduces man hours.
Multitasking. Three wheeler convertibility. Having a tested power take Single piece
casting. off point.
4. 5. Weaknesses Lack of experience. Lack of market research Lack of concept testing
Higher price compare to other mini tractors. Conservative estimate of sale & revenue
growth.
5. 6. Opportunities Highly potential market (world largest market for tractors) Third largest
gross cropped area High number of marginal & small farmers Less tractors per 1000
hectare of land Increase in total irrigation area. Increase in horticulture land Increase
in intercultural farming Easy financing to small farmers. Lack of big players
6. 7. Threats Chinese tractors dumping in Indian market Indirect completion from
assembled tractors manufactures Govt. restrictions Unexpected climatic condition
Customers drive towards earning potential in custom hiring of hire horse power tractors.
7. 8. Drivers of tractor demandCommercialization of agriculture.High level of govt.
support.Easy financing.Increased agricultural land & cropped area.Increased
technology need.
8. 9. Competition Company is entering in the new segment and this segment was not
catered by any big company. There is a indirect competition from some assembled
tractor companies, like- trishul, field marshal, captain. These are not the refined product.
Competition from Chinese dumped tractors. Different promotional offers are introduced
by competitors like Exchange of old tractors. Longer credit period. Credit sales.
9. 10. PEST ANALYSIS This case is not too much influenced with politics Economical the
company was the small scale industry and the customers identified were small and
marginal, large and horticulturist etc. Company got funding from the government wing
for the technological refinement Sociological factors - product was focused to cater
small usage which was not tackled by the big tractors. Most of the consumers were
small and marginal farmers. For the buying the tractor they consider the HP as the main
factor but beside this there are other factors like it is a status symbol also it is the sign of
prosperity also tractor purchase also has lot of other social significance.
10. 11. CONT.. Technological aspect The marginal farmers are still dependent on the
bullocks and other manual systems. Farm mechanisation has lot of value in terms of the
upliftment of the poor and increasing the productivity In tractor industry HP is the main
criteria and most of the technological aspects are covered in this case
11. 12. MARKET SEGMENTATION Demographic segmentation Geographical/
Segmentation based on Topography of soil Product segmentation (Engine horse power)
12. 13. Demographic segmentation On the basis of land holdings: Small & marginal
farmers: In this category the level of mechanisation is low and they used bullocks for
tilling and agricultural operations. Moreover they had small land for farming and the
Vanraj tractor was focussing this segment as its target. Large farmers: This section was
catered by all the big players as they have large area for farming and the farms were
highly mechanised. They usually preferred tractors having HP more than 20.
13. 14. CONT.On the basis of type of occupation: Industry: Industry wise they are
divided into small scale firm, national, and multinational players. Horticulture: This
segment of cultivation requires specific design which would facilitate the cultivation
process. It requires intercultural operations like removing weeds and creation of soil.
 These functions could be well performed by tractors having three wheel convertible
features which is observed in Vanraj tractors.
14. 15. Geographical/ Segmentationbased on Topography of soil North India: The regions
like Punjab, Uttar Pradesh, and Haryana were dominant in tractor sales. As the soil is
alluvial they require tractors with less HP. South and West India: In the regions like
Gujarat, Maharashtra and Madhya Pradesh the soil is harder type- Laterite and black soil
where more HP tractors are required
15. 16. Product segmentation (Engine horse power) Mini tractor: The tractors which are
having less than 20 HP are considered to be the mini tractors and Vanraj being one of
them. Small tractor: Tractors having horsepower between 21 and 30 HP are considered
as small tractors. Medium tractor: Tractors having horse power between 31 and 40 HP
were included in this section. Large tractor: Tractors having horse power more than 50
HP were included in this section.
16. 17. The segmentation on the basis ofland holdings is important as This segment is not
served by big players, as they are interested in more margins. In this segment about
82% of the people do not have tractors, thus having more scope for future. Land
holdings are smaller, for small farmers it is 0.4 hac & for marginal farmers it is 1.4 hac.
Thus they need a tractor which is not bigger in size. The Vanraj tractors are of 10 HP
and hence it would be best suitable for small and marginal farmers due to its low cost
and lesser fuel consumption with more utility and less maintenance.
17. 18. Recommendations Company should go for a market research. Company should
refine its marketing strategy to make it more B2C focused. Company should do a
concept testing. Sales and revenue estimation should be according to the research
outcomes. Market should be analyzed to know the customer buying pattern & their
actual needs.
18. 19. Conclusion Small is beautiful and the bigger the better ButBig things look small
from outside and come in small packaging