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COMPARATIVE STUDY ON TRACTOR INDUSTRY

With special reference to Sri Durgaparameshwari Tractors

CONTENTS

Chapter 1
INTRODUCTION
 Introduction
 Objectives of the study
 Scope of the study
 Methodology
 Limitations

Chapter 2
COMPANY PROFILE
 Introduction
 History of Sonalika group
 Mission & vision
 Details of top executives
 Sonalika group -milestone
 Sonalika group units

Chapter 3
PRODUCT PROFILE
 Introduction
 Types of tractors
 Tractors Industry
 Spares parts of tractors
 Modern market concept
 Marketing strategy

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Chapter 4
FIRM PROFILE
 Introduction
 History
 Capital structure
 Infrastructure facilities
 Marketing strategies of firm

Chapter 5: DATA ANALYSIS AND INTERPRETATION


Chapter 6: SUGGESTIONS AND CONCLUSION
Annexure
 Questionnaire
 Bibliography

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Chapter 1
INTRODUCTION

 Introduction

 Objectives of the study

 Scope of the study

 Methodology

 Limitations

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INTRODUCTION

Marketing is a comprehensive term and it includes all resources

and a set of activities necessary to direct and facilitate the flow of goods

and services from producers to consumers. In the process of distribution,

business refers marketing process as distribution process. Human efforts

and management constitute the primary resources in marketing.

Due to rapid globalisation as well as the growth of the Indian

economy, the quality and quantity of purchasing power of the middle

class group kept increasing. This increasing in the purchasing power is

affecting the marketing segment in a large way. In the past, due to

various socio economic and exposure reasons the Indian market was

more of sellers market than the buyers market, due to lack of awareness,

the companies produced and sold what they wanted to sell rather than

what the customer wanted to buy.

Research and development was mere product oriented rather than

consumer oriented. But, due to globalisation and growth of the economy,

the Indian market is slowly becoming a buyer market. Marketing, the

backbone of any economy is also under going a major revamps, because

of slow steady quantitative and qualitative development of consumers

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behaviour. Marketing is a process right from the product planning.

Marketing research setting up infrastructure facilities by acquiring

technical knowledge, the production, setting up of sales point and

ultimate development. The business process requires proper planning

strategy to meet the present situation of the customer requirements and

also to face stiff competition in present market as well as in future.

Competition is hitting up in the four-wheeler segment with each

player trying to acquire the others market share. Innovation and change

have become the trend in the four wheelers market and also they are

doing market research to study present market condition right now to

minimize the uncertainties and to maximize the profitability. This can be

achieved through sales forecasting market plans and programs through

information system.

In the modern world four wheelers have become very popular. It

can be considered as one of the best means of transportation. In fact it

can be said that it has become a fashion to ride a four-wheeler.

Therefore, it has become very popular. It can also become necessary to

have a deep study a four-wheeler market segment.

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Farm tractors has led to large scale production huge plots of land

can be ploughed in short time large crops can be harvested huge amounts

of products can be transported to market. All these can be done by

machinery without any loss of time. Output for acre as well as per man

can be increased thereby his financial status will be improved. The cost

of production is reduced. If the farmer finds time he can worked with

his tractor in some others field thereby he can earn money and no scope

for idling by that our country will be uplifted.

Marketing covers all business activities necessary for ascertaining

market demand, planning product, availability effecting transfer of

ownership of products providing for their physical distribution in the

entire marketing process.

Tractor is a self propelled power unit to pull to carry and operate

tillage, cultivation and harvesting machinery and to provide power

through a suitable belt pulley, power take off, or other power outlet to

drive stationary and drawn implements and machines. At the end it is

clearly states that the tractors are playing an important role in the

development of Indian agriculture and also the Indian economy.

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Objectives of the study:

The following are the important objectives of that I completed in

this study:

 To study the customer awareness regarding sonalika tractors.

 To study the different parameters influence the customers in

purchasing of the tractor.

 To study major market leader among various market payers.

 To study the satisfaction level of the customers with their existing

tractors

 To know what is the exact market at present for the product.

 To study the competitive environment while marketing the

tractors.

 To examine the sales performance of Sonalika tractors in

Shivamogga

 To point out and analyze the problem faced by Sri

Durgaparameshwari Tractors, Shivamogga.

 To discover possible avenues for selling all items by Sri

Durgaparameshwari Tractors, Shivamogga

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Scope of the study:

As the agriculture is the backbone of the country. So, the tractors

are used in all parts of the country and this study confined to users of

tractors in Shivamogga district. This has been specifically chosen, as it is

believed that demand for the tractors in rural and urban area.

And also as the shortage of labour is facing i.e. man power, many

of middle class and higher classes family in the rural area who are

majority of land holders are willing to purchase the tractors for their own

purpose, the demand of the tractors in market is increasing day to day.

And this report also envisages about the customer buying decision

and influencing factors which act upon them. And finally this project

report includes the relationship between the price features influencing

customer-buying decision of the Sonalika tractors.

Methodology:

Marketing research is a means of understanding the environment.

The marketing research process involves identifying research objectives,

research design, choice of research method, and selection of the

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sampling procedure data collection, data analysis, writing the report and

follow-up.

Research objectives:

The objective of marketing research is to help in decision-making.

It has to provide options and appropriate criteria for decision-making.

Research design:

A framework is to develop to answer a specific problem/

opportunity. The first decision or casual in case the management knows

the relation side of the problem, then a descriptive research is under

taken which answers who, what, when, where, and how questions.

Dependent Variables is predicted on the basis of an independent variable.

Methods adopted

Questionnaire is prepared. It contains 16 questions, which are

asked to individuals from their response primary data has been prepared.

Sample size:

An important decision that has to be taken while adopting a

sampling technique is about the size of the sample. The sample size is

taken as 50.

Sample design:

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It is simple random sampling, which refers to the sampling

technique in which each and every item of the population is given an

equal chance of being included in the sample. The selection is thus free

from personal bias because the investigator does not exercise his

direction of preferences in the choice of items.

Collection of data

Both the primary data and secondary data’s have been collected to

bring out this project report.

Primary data:

Primary data are measurements of observed and recorded as part

of an original study. When the data required for a particular study can be

found neither in the internal records of the enterprise, nor in the

published resource it may become necessary to collect original data i.e.,

to conduct first hand investigation.

There are two basic method of obtaining primary data are:

 Questioning and

 Observation

Secondary data:

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Like all scientific pursuits, in statistics also the investigator need

not begin from the very beginning; he may use and must take into

account what has already been discovered by others. In the report the

data collected from.

 Journals

 Showroom broachers

 Company broachers and

 Through website of the company.

Limitations:

It is quit obvious in every project report presentation that our report

activities will be curtailed owing one or the other factors. I did also

found same of the limitations in my project report. The following are the

limitations that which happened in my survey.

 Many of the respondents may give biased information.

 The area, which I covered, may not be adequate.

 The number of respondents limited to only 50, it is one of the main

limitation in my survey.

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 The firm cannot disclose the extra information, which is necessary to

this report.

 The survey is limited only to Shivamogga.

 As the sample size is small compared to the total population the

outcome cannot be generalized.

 The study was done for a short period of time, which might not hold

true over a long period of time.

 The area is too vast to research and the entire picture may be vary if

sample should be increase.

 Respondents are basically villagers they usually not take more

emphasis on these questions.

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Chapter 2

COMPANY PROFILE

 Introduction
 History of Sonalika group
 Mission & vision
 Details of top executives
 Sonalika group -milestone
 Sonalika group units

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HISTORY OF SONALIKA GROUP

FOUNDER – Mr. L.D.Mittal

Sonalika Group - Sonalika group is one of the top automobile and

agriculture machinery manufacturers in India. Apart from tractors its

product line includes multi utility vehicles, three wheelers, engines and

various farm equipments and implements. Established in 1969, Sonalika

group since the has tried to understand customer need to be facilitating

them with its value for money products. The Company has a state of art

manufacturing facilities, spread in acres, located in the free shrubs of

Punjab and Himachal Pradesh.

Sonalika is the one of the top 3 tractor manufacturing companies in

India, other products include of, Multi utility vehicles, engines and

various farm equipments. Today the group stands tall with an

approximate turnover of 5000 Crore INR. An average growth of 30%

makes it one of the fastest growing corporate in India. It is also one of

the few debt free companies. Group has strength of about 2000

employee technocrats. The company works on the maxims of low

production cost and clean and safe environment. Such efforts have

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fetched the company the accreditation like ISO 9001 and ISO 14001.

History reveals that innovation is the key to continued progress and

when applied to technology that touches human life, it can unfold a

whole new economic phenomenon that has the power to change the

world. With unique initiatives like the Thought leadership Forum, we

have been able to create a unique platform for learning through success

stories of industry leaders. The success Sonalika Group a business

conglomerate having prime interest in agricultural & auto machinery

goes back to nearly 5 decades. The corporate philosophy embedded in

trust, quality and commitment has helped the group to carve out a niche

for itself in the highly competitive world of Machinery. Sonalika is the

fastest growing tractor company registering growth over growth since its

inception has crossed 1.80 lac merely in 10 years & has attained one of

the position in top three in India

Sonalika group’s products exist in various international markets.

Company’s product exported to Algeria, Angola, Armenia, Australia,

Bangladesh, Cameroon, Ethiopia, Ghana, Ivory Coast, Malawi,

Malaysia, Mauritius, Mozambique, Nepal, Oman, Republic of Benin,

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Senegal, South Africa, Srilanka, Sudan, Canada, Zambia, Syria, Togo,

Tunisia, Ukraine, and Zimbabwe.

MISSION & VISION

VISION STATEMENT

The dream Project of Sonalika group is to cater the agricultural and auto

industry with quality abrasive products through untiring dedication and

leadership.

MISSION STATEMENT

we pay personal attention to customers so that, we can build products

they need, and not merely sell the products we build.

CORE VALUES

To accomplish our mission, the ownership, staff, and management go to

great lengths to treat each customer like a member of the family and

provide them with the best choice of products and highest quality of

service in the industry.

ETHO STATEMENT OR LOGO RATIONALE

Red symbolizes the strength, power, determination, and desire of

company.

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Yellow surrounding the Sonalika produces a warming effect, arouses

cheerfulness, stimulates mental activity, and generates the same.

Green Leaf in the center symbolizes growth, harmony, freshness, and

fertility. Black underlining the logo associates with power, elegance, and

formality.

Orange surroundings the complete logo represents enthusiasm,

fascination, happiness, creativity, encouragement, and stimulation. All

this permutation of persona represents the Sonalika group as an asset in

the industry.

Details of top executives

1. Chairman- Mr. L.D. Mittal

2. vice Chairman- Mr. A.S. Mittal

3. Managing Director- Mr. Deepak Mittal

4. Finance Head- Mr.Rajnesh Jain

5. Production Head- Mr. Ashok Kapoor

6. Marketing Head- Mr.L.R.Yadav (CEO)

7. R&D Head- Mr. Ashwani Malik

Turnover

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The total turnover of the group stands for 3200crore INR. An average

growth of 30% makes it one of the fastest growing corporate in India. It

is also one of the few debt free companies.

SONALIKA GROUP -MILESTONE

 1969, Modest beginning into farm equipment and machine

manufacture and earning name and fame over all these year.
 1995 Diversification into manufacture of tractor over whelming

response from the market.


 1996 Roll out of first tractor from ITL.
 2000 Enter into joint venture with Renault Agriculture France for

tractor manufacture in India.


 2000 Started in house manuf. Of engine for tractor application.
 2002 Started export of tractor to Africa, Asian sub continental.
 2004 Started Roll out of 100000 Tractors
 2004 Started establishment of ICML.
 2005 Become the fourth largest tractor manuf. In India.
 2005, Roll out of first vehicle from ICML facility.
 2005 Joint venture with Yanmar Agriculture of Japan.
 2006 Successfully developed 4 wheels drive front Axles and

transmission of tractors for Yanmar.


 2010 Rollout of 100000th tractor engine.
 2012 Become 3rd largest manufacture of tractor in India.
 2013 Market launch of Rhino (MUV) and establish dealer’s

network.

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SONALIKA GROUP UNITS

Sonalika group divided into four companies’ .Sonalika group units is as

follow:

INTERNATIONAL TRACTORS LIMITED

International Tractors Limited was incorporate on October 17, 1995 for

the manufacture of Tractors and has since then built a distinct position

for itself in the Tractor industry. ITL is manufacturing various Tractors

of Sonalika brand between 30 H.P to 90 H.P, and CLASS brand between

70 hp to 90hp. The tractors manufactured by company have secured a

reputation of performance, quality and reliability in the market because

of their maximum pulling power, minimum fuel consumption and low

emission. All this makes ITL one of the top five tractor selling

companies in India. These tractors are also exported to various countries

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including South Africa, Australia, Zimbabwe, Sri Lanka, Canada,

Bangladesh, Algeria, Zambia, Senegal, Ghana etc.

ITL has entered into strategic alliance with YANMAR of Japan for joint

manufacturing tractors in India. ITL has a marketing arrangement with

TATA International for development of selected South American and

African market. The company’s marketing efforts are promoted by

dealer network of 600, and 450 sub dealers. Such a networking has

enabled the company to grow like a well-knit family whose roots lie in

its customers, who have providing constant feedback and support to

allow the company to turn their dreams into products.

They are also manufacturing tractors, meeting norms of Smoke & Mass

Emission, Tested and certified by ARAI, Pune. United States

Environmental Norms Agency, Washington DC has also certified our

Engines. These certifications enabled SONALIKA Tractors to enter into

world Market. All the Models of Tractors and Combines Harvesters

manufactured by us are tested & approved by central Farm Machinery

and Tractors Training & Testing Institute, Bundi (MP) India, (the

Government of India Institute authorized for issuing test reports).

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Address- International Tractors Limited Jalandhar Road, Hoshiarpur

(Pb.) Pin-146022 (India)

INTERNATIONAL CARS AND MOTOR LIMITED

International Cars & Motors Limited (ICML) is a Group Company of the

Rs 1200 Crores SONALIKA Group. The Company is promoted by Mr.

L.D.Mittal (Chairman), Mr. A.S.Mittal(Vice Chairman) & Mr. Deepak

Mittal, Managing Director, who are having vast experience in

manufacturing of tractors, Farm machines & Automobiles.

ICML is a project of its kind and is the ‘Pride of Himachal Pradesh’. The

Company is having its state-of-the-art production facility, with centrally

air-conditioned, dust & pollution free environment, to manufacture

multi-utility vehicles / sports – utility vehicles, in Amb, Himachal

Pradesh.

The Company is a ‘Mother Unit’ as its establishment shall attract many

other ancillary & small units for meeting the raw material requirements

yielding manifold employment avenues, revenue & industrialization in

the state.

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The Company has entered into Technical Collaboration Agreement with

MG Rover of UK, with the technical know – how from MG Rover, UK.

The Company has manufactured MUV with the name of RHINO RX &

the same MUV boasts of Rover engines. The company is in-process of

developing its own Common Rail Direct injection (CRDi) engines.

The company has the installed capacity to manufacture 2000 MUVs in a

month i.e., 24000 MUVs in a year. In the first full year of production in

2006-2007, ICML is aiming to churn out about 5000 MUVs & expects

to achieve a turnover of 250 Crores. The Company, besides catering to

the domestic market, also has an eye on exports & exports to Malaysia,

Nepal, Bangladesh & Indonesia are also in an advanced stage. It will

also offload the product in African continent soon.

The Company is eligible for the Central & State Govt. Tax sops,

exemption from the excise duty & income tax for 10 years, which shall

add to its viability & future expansion.

Sonalika Group intends to inject Rs. 1000 Crores in Himachal Pradesh

over the next 2 -3 years in the upcoming ICML plant & ICML has an

ambitious plan to play a major role in the Indian Automobile Industry.

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International cars & motors ltd, car plant is located in foothills of

Shivalik Range and surrounded by natural greenery of Himalayas at

AMB (HP) a tax-free zone. The total area of plant is 93,000 Sq. M. out

of which 42,000 Sq. M. is covered area. Plant capacity to produce 24000

cars in a year.

Address:-Amb Distt., Himachal Pradesh.{Tax Free Zone}

INTERNATIONAL AUTOTRAC FINANCE LIMITED


International Autotrac Finance Limited is a non banking finance
company approved by RBI.
IAFL provide finance to customers of International cars & motors
limited in rural & semi urban areas across India through customer
friendly schemes.
Its parent company Sonalika Group ranks among the largest tractor &
farm equipment manufacturer in India

Business Plans of IAFL


First Phase: In the first phase, the area of operations will be in the state
of Punjab, Haryana, Jammu, H.P (Done).
Second Phase: In the second phase, the area of operations will be
extended to other parts of Northern India.
Third Phase: In the third phase, the area of operations will be extended
to whole India.

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SONALIKA AGRO INDUSTRIES CORPORATION
Sonalika Agro was established in 1971 to support the Indian farmers
with mechanization technology to facilitate persistence of green
revolution. Sonalika Agro Industries Corporation, the group’s maiden
venture is one of the foremost Farm equipments and implements
manufacturing companies in India with 80% share in threshers alone. Its
product line includes Combine Harvesters, Tractor/Self Driven straw
reapers, Potato Planters, Maize seller –cum-Dehuskers, Seed –Cum-
Fertilizers Drills, various kinds of threshers, etc.; Sonalika Agro is a
pioneer in manufacturing tractors mounted combine harvester, which is
not popular in India, but also in various others countries across the
globe. Today, the company is supporting the farmers with world class
farming equipment to ease the process of making the Green Revolution
II, a dream come true. In the light of the company's mission, highly
qualified and experienced staff is working as a family in the
manufacturing facility at Hoshiarpur (Pb).

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Product and Services of All Group Units

International Tractors Limited


This company mainly deals with tractors brands and these tractors also
exported to different markets in foreign countries. These brands are as
follow:-
TABLE - PRODUCT CATEGORIES
TRACTOR NAME HORSE POWER LIFTING CAPACITY
DI-750III 50 1600Kg
DI-730II 30 1200 Kg
DI-735 35 1200 Kg at lower links
DI-55 55 1200 Kg at end of lower links
DI-750II 50 1200 Kg
DI-90 90 1600 Kg at end of lower links
DI-75 2WD 75 1600 Kg
DI-750 50 1200 Kg at end of lower links
DI-60 SENIOR 60 1200 Kg at end of lower links
DI-75 4WD 75 1600Kg
DI-740III 40 1200Kg
DI-60 2WD 60 1600Kg
DI-740 40 1200 Kg at end of lower links
DI-398X(north speeds) 39 1200Kg
DI-60 4WD 60 1600Kg
DI-745III 45 1200Kg
DI-35 35 1200Kg
DI-340S 40 1600 Kg at end of lower links
Rx42 45 1200Kg
DI-47Rx 50 1200Kg
DI-730III 30 1200Kg at ends of lower links
DI-732III 34 1200Kg at ends of lower links
DI-60Rx 60 1600Kg

Sonalika Agro Industries Corporation

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This company mainly deals with agricultural equipments and
implements. That are helpful to the farmers in agriculture The product
line of the sonalika agro industries corporation is as follow:-
 Combine Harvestors
 Threshers
 Potato Planters
 Maize Sheller-cum
 Seed-cum-Fertilizer Drills
 Straw Reapers
 Ploughs
 Harrows
 Tillers
International Autotrac Finance Limited
This company basically deals with services which are provided to
farmers, salaried for finanace the tractors and other agricultural
equipments and implements. Provide financial assistance to them.

International Cars And Motor Limited


At present this company produces one car model Rhino Rx a MUV by
this group and also working on the new car model INSPIRE and this
will launch within this year.
Market
No wonder Sonalika products have created a niche for themselves not
only in India but also in foreign markets including France, Africa
,Bangladesh , Srilanka, Senegal, Mali, South Africa, Canada, Syria and

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many of the South Asian countries. Some of the international clients are
as follow:
MG Rover, Power Train, Renault, Yanmar
In domestic market sonalika products are popular in all across the India.
In Punjab, there are 45dealers of sonalika tractors.
There are 70 dealers of International cars and motor products all over the
India.

INTERNATIONAL TRACTORS LIMITED


As per the training concern my training is in the sonalika tractors that is
International Tractors limited. This company mainly deals with tractor
manufactures and also some other like Generators etc.ITL was
established in 1995-96 with a covered area of 25 acres. It is situated at
distance of 7 km from Hoshiarpur on Hoshiarpur-Jalandhar road. It is
specialist in manufacturing of producing three cylinder diesel engines of
tractors. The first tractor manufactured by the company on 14 th Oct,
1996. In Oct, 96 the capacity of the company was one tractor in two
days. It has sold 400 tractors in the first year of launching tractor & now
the production rate is 1200-1250 tractors per month but installed
capacity of company is 100 tractors per day. It has developed its own
60HP diesel engine.
ITL’s Hosiarpur situated plant is spread across 50,000sq.meter, which is
having fully computerized and high level modern machines. Presently,
the production capacity of plant is 100 tractors per day. Near about 3000
people engaged in the plant including workers, technicians, and

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engineers on regular basis and around 3000 people work on contract
basis.
Competitors of Sonalika tractors are as Escorts, Eicher, Hmt, Mahindra
and Mahindra, Swaraj/PTL, Tafe/Massey, New Holland ford,
ACHIEVEMENTS
-Company has produced smoke free diesel engine
-Company has increased its production of diesel engines up to 60
engines per day
-International Tractor Limited has a network of network of more
than 1000 dealers
-Computerized tractor plant
-First Indian tractor engine750III conforming to Euro II norms
-Pride of country awarded to Sh L.D MIttal, Chariman.
-Gold medal awarded to Sh. A.S Mittal, Vice Chairman
-Udyog Bhushan awarded to Sh. Deepak Mittal, MD

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DISTRIBUTION NETWORK
Followed by Sonalika:

COMPANY

DEALER OR STOCKIST

CUSTOMER

Followed by other firms:

COMPANY

STOCKYARD

DEALER

DIRECT & SUBDEALER

CUSTOMER

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ORGANISATION CHART FOLLOWED BY ITL

Chairman
|
Vice-Chairman
|
Managing Director
|
Chief Operating Officer
|
Joint Chief Operating Officer
|
HOD of Every Dept.
|
Managerial Staff
|
Executives
|
Support Staff
|
Workers

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CERTIFICATIONS
A) ISO – 9001
ITL has got ISO-9001 quality system certified by International
Certification Ltd. It is for use when conformance to specified
requirements is to be assured by supplier during several stages which
may include design, development, production, installation & servicing.
Sonalika has arranged collaboration with French Renaults for technical
know-how and marketing. With the help of this collaboration
SONALIKA will develop its own DI-740 Tractor engine which will help
it to reduce its cost.

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B) ISO 14001:2004 Environment Management System

Study of functioning of departments

Production:-

ITL has fully integrated and state of the art assembly facilitation for

producing world class tractors. Several productivity improvements in

assembly line over the years have made it possible to manufacture nearly

37000 tractors per Year. Atomization of assembly line not only increased

production capacity, but also provided a quantum jump to the quality of

assembled tractors. ITL assembly line producing tractors in broad range

from 30HP to 90HP with effective planning of resources.

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Highlights of Assembly Facilitations:

Automated conveyors (Toe-in conveyors, slat conveyor and overhead

conveyors.) for sub-assemblies as well as for major assemblies and final

product.

Quality, Assembly & Testing Tools:

 Hydraulic Test Rig Up to 1600Kg Lifting Capacity

 Millipore Testing Equipment. Torque calibrator

 Hydraulic presses

 A unique 3-Stage oil filtration system having modern facility of

centrifuge filtration

 Batch type Special purpose machines (SPM) at various locations

for washing of heavy castings, components & subassemblies

 Pipe flushing machine for proper cleaning of hoses & pipes

 Induction Heaters for controlled heating of bearings

Standard testing procedures for final product

 Roller testing Field Testing

 Road testing

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Research & Development:-

Brief of R & D :

 ITL R & D center is recognized by government of INDIA

 ITL R&D is a complete dep’t in itself starting from designing

upto development, implementation

Capabilities:

 Highly qualified team of engineers for designing of

transmission & vehicle areas

 Vendor development is capable for the development of new

projects components of R&D through vendors & commercial

settlement

 Vendor quality control is capable for ensuring quality

requirements of components through verification at vendor end

 High skilled workers are capable for making any types of

prototypes

Facilities:

 High configuration workstations are used for design

activities

 Teamcenter is used for PLM concepts

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 I-Deas, Solid-Edge & AutoCad is used for 3D & 2D

design activities

 Two transmission test rigs.

 Circular test track (mgr) & Roll over protection test rig.

 Hydraulic system test rig.

 Endurance test rig for operator seat & fenders.

 Pto test bed & Endurance test rig for MUV gearbox

under commissioning.

 Proto machine shop with HMC, radial drilling & turning

centre.

Engine R&D Center:

Sonalika have In House Design Engine R&D department with up-to-date

technology. Having a team of exceedingly competent & remarkable

squad of engineer’s proficient of designing most excellent Engines in

technology.

Engines developed so far available in rating of 28-90 HP. Sonalika has

started spreading roots in MUV manufacturing with own R&D team and

designed two exclusive engines with latest technology.

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Engines are designed with Rotary FIE from BOSCH & (CRDi) Common

Rail Diesel that gives variable geometry turbocharger for superior engine

response .The in house R&D has all supplies required for complete

design of engine from structural parts to emission development. Use of

CAD and FEA is made to design robust parts. While Emission test cell is

also being commissioned using equipment imported from AVL Austria

world leader in emission measurement for conducting in house emission.

New Tractor Engine under G1 Series MUV Engine (Rover) Proto-type

stage

This center is capable of designing new technologically advanced

Engines & its various components. It can also carry out DFEMA for its

own design or any other components.

In-house R&D capabilities:

The in house Engine R&D department of Sonalika is one of the finest.

Possessing a team of highly qualified team of engineers capable of

designing complete engine from ground up. Engines developed so far

include tractor engines from Hp rating of 28-90 Hp.With entry of

Sonalika group into MUV segment two engines have been developed by

the in house R&D exclusively for the MUV application.

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The engines have been developed using latest technology. One engine

uses Rotary FIE from BOSCH while the other engine is a Common Rail

Diesel Engine (CRDi) with variable geometry turbocharger for improved

engine response at all points during engine operation. The in house R&D

has all tools required for complete design of engine from structural parts

to emission development. Use of CAD and FEA is made to design robust

parts. While Emission test cell is also being commissioned using

equipment imported from AVL Austria world leader in emission

measurement for conducting in house emission measurement.

Quality Assurance:-

The entire evolution of Quality is classified into 4 phases

 Inspection Phase

 Quality Control Phase

 Quality Assurance Phase

 Total Quality Management Phase

Equipments used for Quality Assurance,

 Profile Projector used for inspection of Critical Parameters e.g.

Thread, Gear profiles etc.

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 3D Co-ordinate Measuring Machine(CMM)

 Software Used For Measurement(CMM)-(Geometrical 3D

measuring software) In this software,we can calculate & store co-

ordinate of component as per drawing specification as well as

Geometrical tolerances (Flatness, Concentricity, Parallelism &

Positioning) with Graphical Presentation. With help of Geopak –Win

generate a program of each component & run in CNC mode, safe a

time, generate presentable report as per requirement. Scanning is the

option in GEOPAK – WIN,with that you record contours and

surfaces, realize nominal actual comparisons with contours, calculate

geometrical elements at the contour after scanning & import contours

from external systems, respectively export them to systems (Auto

cad, Ideas for modeling purpose).

 STANDARD ROOM

 GEOPAK-WIN: - Scanning is the option in GEOPAK – WIN, with

that you record contours and surfaces, realize nominal actual

comparisons with contours, calculate geometrical elements at the

contour after scanning & import contours from external systems,

GFGC, Shimoga 38
respectively export them to systems (Auto cad, Ideas for modeling

purpose).

SWOT Analysis:-
STRENGTH:-
 Human Resource
 Research & Development
 Physical Resources:- SAP, own IT dept.
 Availability of finance
 Investors Relationship
WEAKNESS:-
 Import of tractor implements
 Unsuccessful Rhino car
 Lack of advertisement regarding their products
OPPORTUNITIES:-
 Unexplored Markets for Exports :-Mexican & Brazilian
markets
THREATS:-
 Competitors
 Mahindra & Mahindra
 New Holland
 John Deere
 TAFE

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Chapter 3
Product Profile

 Introduction
 Types of tractors
 Tractors Industry
 Spares parts of tractors
 Modern market concept
 Marketing strategy

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PRODUCT HISTORY

Introduction

The word ‘Tractor’ is derived by combining parts of the word

“Traction” and “Motor” was first noted in a patent issued in United

States in 1890.

In 1889 “Charter Gas Engine Company’ built six wheel type

tractors by mounting single cylinder horizontal gasoline engines on

Rumely steam powered ration engine running gears. All were shipped to

farm in the northwest due to largely cold weather these tractors never

operated successfully.

The first successful gasoline tractor of record was built in1872 by

‘John Froehlich’ a Lowe farmer and Black smith. It was powered by a 20

HP single cylinder vertical gasoline engine built by ‘Van Dozer’ gas and

Gasoline Engine Company of Cincinotio.

During the following decades, not less than 18 separate attempts

are known to have been made to design and build from tractors

powered with Gasoline Engines. In 1897 English tractors with oil

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burning engines were being produced. In 1901 ‘Hart and Pan’ built the

first tractors for draw bar rather than belt work. This tractor for which

was powered with a twin cylinder horizontal Gasoline Engine 9 inch

bore * 13 inch stroke and it developed 30 HP at 250 RPM.

In 1902 a second and improved model was built and the ‘J.I’ case

threshing machine company built their first tractor using a horizontal

two cylinder opposite type engine. In 1903, 15 more were produced

many of which were operating 20 years later. In 1904 ‘AN’ calking

electric company designed and built the first tractor on record to

employ a four cylinder vertical engine and automobile type of starting.

In 1905, Hart and Pan established the first factory in United States,

devoted exclusively to tractor manufacture which later became the

tractor plant of the Oliver Corporation.

In 1910, the M. Rumelly co. started to manufacture the first

successful oil cooled kerosene and distillate burning tractor. In 1917 the

Electronic wheel Company produced the first tractor engine designed to

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burn kerosene other low cost fuels without the use of water introduced

into the fuel air mixture to control detonation.

In the same year the company under took the manufacture of the

Ford son tractor, which was the first to employ a cost iron “Unit” frame

that enclosed working parts of the engine transmission gears, and the

warm final drive, with all gears running in oil. This tractor introduce the

wet air cleaner so, that all air was water washed aside from the use of

the worm final drive.

Types Of Tractors

Tractors are classified according to whether wheels or tracks are

used to provide traction.

Two Wheel Drive Tractors

 General purpose Tractors (GPT)

 Standard Trade Tractors (STT)

Tracking Laying Tractors

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These tractors are used to obtain better adhesion or lower ground

pressure chain would be possible with an ordinary wheeled tractors.

Four Wheel Drive Tractors:-

These are able to work under many soil conditions both two-

wheel drive tractors and track layer.

Those in most general use are of the two-wheel drive type too

large driving wheels at the rear and too smaller steering wheels at the

front. Tractors may classify according to the purpose for which they are

used such as farm tractors, industrial tractors, highway tractors etc.

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Tractor Industry

The tractor industry was severely hit by the recession in demand

following stringent credit policy of the government in 1982. This led to

reduced sales, heavy stocks and large unutilized capacity.

The tractor production went up by 25% to 37% in 1994 as

compared in1982, better agricultural production by way of bumper

crops and increased bank credit have been responsible for the improved

working of tractor companies.

The purpose for the industry, government is launching a scheme

for setting up agro service centre on a national scale in the overall

strategy for servicing agricultural tractors implements and machinery.

Today the production of the tractors is growing day by day. It went up

50% to 67% in 2010 compared to the 2007, due to because of the

impact of tractorization on farm employment and productivity. These

have indicated the positive results are as fallows.

1. Farm employment has increased considerably on tractors farms with

a notable decline in family labour.

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2. Tractors contribute to non-farm employment for repairs service and

maintenance of tractors.

3. Tractors owners have the large recorded higher outputs from their

land, the percentages varying state to state.

4. Tractors contribute to change in cropping patterns enabling tractors

owners to switch to more profitable crops, thus increasing the value

of farm products.

5. Analysis of operational costs indicates that the cost per hectare of

tractor is very much less than that of bullock.

6. Due to more mileage and good performance of a new model tractor,

farmers are happy to buy the products of farms.

Over the past 3 decades the industry has made rapid strides in its

bid for mechanizing agricultural over 50 models of tractors are available

in the country today incorporating international standard features. The

research and development wings of most tractors companies are

increasing their efficiency and efforts to improve the existing products,

make them the more fuel consistence and thereby contribute to

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improving farm productivity. Indian tractor industry is well equipped to

meet the nation’s requirements fully.

FARMERS CHOICE

In India 76% of the population are working under in the field of

agriculture. These farmers wants to buy the tractors for a various

purpose in the agricultural field like cultivating, ploughing,

transportation of soil from one land to another land with the help of

tralley. So, agriculture is a continuous working process in a year. For

these reason farmers needs a huge man power resources, but it is not

sufficient still also they need tractors.

The JOHN DEERE had helped the farmers by satisfying their needs

and wants in the field of agriculture from last 5 decades. So, the farmers

are fully satisfied with the JOHN DEERE tractor. Farmers are very much

impressed about this tractor and choose this tractor as a one of their

family members.

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SPARES PARTS OF TRACTORS

Spare parts are the most important in manufacturing of every

product. The important spare parts manufactured in the tractor

industries are as fallows:-

 Intake manifold and venture related parts.


 Oil pump and oil pan.
 Oil filters and related parts.
 Crank shaft, flywheel and related parts.
 Camshaft, rock arms and related parts.
 Dual range and speed transmission.
 Clutch assembly.
 Power takes off assembly.
 Clutch control.
 Water pumps parts.
 Radiator and related parts.
 Fuel systems.
 Injector assembly.
 Fuel filters assembly.
 Air cleaner assembly.
 Gearboxes cover and related parts.
 Fuel injection pumps.

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 Injection pumps governor.
 8 speed transmission gear shaft levers and related parts.
 Hydraulic lift cover.
 Hydraulic cylinder.
 Hydraulic shaft and related parts.
 Hydraulic systems.
 Flow control value assembly.
 Hydraulic lift linkage and related parts.
 Centre housing and related parts.
 Differential lock linkage.
 Rare axel differential and related parts.
 Steering box assembly.
 Fuel feed pump and pan filters.
 Electrical systems RH and LH.
 Battery and battery supports.
 Voltage regulator.
 Starting motor, drive and relay assembly.
 Side mounted headlamps.
 Instrument clusters and related parts.
 Deluxe seat assembly.
 Steel pan seat and related parts.
 Front axel.
 Front wheel assembly.

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 Standard rear wheels.
 Front wheel weight gauge.
 Rear wheel weight gauge.
 Break and break controls.
 Front axel steering and related parts.
 Front wheel bearing.
 Rear wheel inner bearing.
 Wheel bolt and nuts.
 Inner and outer front wheel bearing.
 Check nut.

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Chapter 4
Firm Profile

(SRI DURGAPARAMESHWARI TRACTORS, SHIMOGA)

 INTRODUCTION

 HISTORY

 CAPITAL STRUCTURE

 INFRASTRUCTURE FACILITIES

 MARKETING STRATEGIES OF FIRM

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INTRODUCTION

SRI DURGAPARAMESHWARI TRACTORS name itself is sufficient for

“Quality of Product”. Sonalika Tractors is the brand and trade setter in

the marketing of agricultural equipments.

Agricultural is the backbone of the India, but nobody can support,

contact to consumers directly. Entire our economical, social structure of

system is not directly useful of rural farmers, but in case of Shimoga

district since last 12 years there is a direct contact between farmers to

dealers in SRI DURGAPARAMESHWARI TRACTORS. They are trend setter

in manufacturing of tractors, trailers and agricultural equipments and

implements.

HISTORY

SRI DURGAPARAMESHWARI TRACTORS, which deals with Sonalika

Tractors. Sri Durgaparameshwari Tractors is authorized dealer for

Shimoga bearing to sales, service and spares. Since 1990 the showroom

and service garage is new established in Shimoga.

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First they provides only services then establish firm by name “Sri

Durgaparameshwari Tractors ” in Shimoga their after step by step it go

through hill” keeping the idea of tractors. Now-a-days tractors are one

of the maximum market share in India, of course to serve the farmers,

they starts the marketing field in the name of “Sri Durgaparameshwari

Tractors” in Shimoga.

CAPITAL STRUCTURE:

Capital is the life blood of the every business like this the owner of

Sri Durgaparameshwari Tractors they invested initial capital of Rs.

30,00,000 which was borrowed from “state bank” branch in Shimoga in

the year of 1999.

The profit of the firm is the bases for the further investments and

contribution was made by the owner recently are used to further

extension of showroom. Now the building is under construction process

to shift the office room from the place of service centre to new building.

INFRASTRUCTURIAL FACILITIES:

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For each and every business organization there must be a need of

infrastructural facilities for a smooth flow of working process and for

the marketing of the product, which they had in the business.

1. Land and building:

The firm having its own land area of the distance of one acre. This

Land was situated in the Shimoga. This land is very valuable in the

market today, although they invested 30,00,000 Rs for the construction

of the building. The building was established in Garden Area , Shimoga.

2. Power:-

The electricity power plays an important role in this firm for the

smooth flow of machinery work. The firm is fully equipped with the

machinery in the service centre i.e. in the tractor garage section. But in

the office section also the power is very important for the computers

work. All the office work is done through the computer like sales entries

purchase entries, spare parts entries and some related vouchers.

3. Machinery:-

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The firm is well equipped with machinery and hand tools. These

tools are used in service section where the tractors are repaired,

serviced and checked. Without machinery equipment the work is not

possible in any organization like this firm also that facilities acquired.

The firm having special facilities like air compressor, tractor

washes set and many related machinery.

The almost of all the work in the showroom are gone through

with the help of machines. In case of machines or requirement break

down they take rapid action and call experts of that machine to repair

it. As soon as possible they can give quick service to the customers.

4. Transportation:-

Transportation in any sector has an important role to play. So, in

this showroom it plays an important role in attracting customers. This

organization attracts the customers towards the showroom by providing

free home delivery. The delivery is made on the exact time as ordered

by the customer. Thus, the transportation plays an important role in the

marketing of this showroom product (tractor).

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5. Man power:-

The firm has sufficient managerial staff and mechanics. There are

more than 14 workers including the management staff for workers in

the workshops. This firm had a sufficient man power resources; it helps

to the firm for the smooth flow of the working condition. The working

hours lasts from 9AM to 1PM and afternoon that 2PM to 8PM.

SOCIAL SERVICES:-

Business is not only the aim of the firm, but also they are giving

importance to the social service. The firm is participating in many social

service activities.

 Bigger hands is shown in charity and donation as and when

individuals and the society approach it

 Provided leadership for people and communal harmony,

particularly during festival belongs to every region.

 This firm played a major role in donation of funds during period T-

tsunami effects and other national calamities.

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 This firm is supporting donor and actively participating in the
following services:-
 Pulse polio.
 Government minimum education.
 Emission and pollution scheme.

MARKETING STRATEGIES OF THE FIRM:-

Marketing strategies plays a very important role in each and

every organization to enhance its sales and its reputation. Likewise in

this showroom to attract the customers they are giving some benefits to

its customers are as fallows.

1. They help the customers by providing the down payment of 30% to

bank loan.

2. Compared to other firms, this firm is providing more numbers of free

services of around 4services.

3. They provide discounts on the purchase of spare parts, which are

related to the tractor or any related equipment.

GFGC, Shimoga 57
4. They are giving some additional accessories in the free of cost at the

time of the product delivery.

Ex:-

a. Trailer hooks attached to the engine

b. Robber rod.

c. Hydraulic pipe to lift the trailer.

5. Apart from the warranty given by the company this firm is providing

additional three more months of warranty to their customers.

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Chapter 5

DATA ANALYSIS AND INTERPRETATION

GFGC, Shimoga 59
DATA ANAYSIS AND INTERPRETATION

Data analysis is an important part in any of the research as it fulfills the

purpose for which research is made. In this chapter analysis of every

question asked from consumer through the questionnaire is done. In this

part of my study the analysis of data is done from the basis of

information collected through the questionnaire with the help of table

and graphs.

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TABLE 4.1: Brand owned by the targeted consumers of tractors

Brand percentage
Sonalika 6
Escort 30
Mahindra & Mahindra 28
Tafe 20
Swaraj 14
John deere 2
Total 100

FIGURE -4.1

INTERPRETATION

From our research on the tractor users we find that mostly people owned

the Escort tractors and Mahindra & Mahindra tractors.

TABLE 4.2: PURPOSE OF USING THE TRACTOR

Agriculture % Industrial % Loading/unloading

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%
84 6 10

FIGURE 4.2

INTERPRETATION

In our study on comparative analysis, we find that most of the people

using tractors for agricultural purposes and some of the users using

tractor as loading and unloading of sands, bricks etc like thing and some

small entrepreneurs using for industrial purposes.

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TABLE -4.3: MAIN COSIDERATION WHILE PURCHASING
TRACTORS
Consideration Percentage
Price 4
Performance 90
Quality 0
Brand image 6
Total 100%

FIGURE – 4.3

INTERPRETATION

The main consideration of buying the tractors is performance they not


bother about the price as shown above on the figures and same in case of
brand image and quality because performance automatically deals with
quality.

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TABLE 4.4: HORSE POWER OF TRACTORS

30-40 40-50 50-60


28 40 32

FIGURE 4.4

INTERPRETATION

Generally people uses the tractors between 40-50 horse power range due

to less cost of these tractors and less expenses on maintenance near

about 32% respondents uses more than these limits but about 40% using

between above said limits.

TABLE4. 5: COST INCURRED ON TRACTORS

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Cost Percentage
2-4 lacs 28
4.6lacs 64
>6 lacs 8

FIGURE 4.5

INTERPRETATION

Around 54% respondents using the tractor costing 4 to 6 lacs and 28 %

respondents using 2 to 4 lacs range tractors. Very few from our sample

space using tractor costing more than 6 lacs

TABLE 4.6 : AWARENESS LEVEL OF SONALIKA TRACTORS

Awareness level Percentage


Yes 90
No 10

GFGC, Shimoga 65
Total 100 %

FIGURE 4.6

INTERPRETATION

Almost all the respondents are aware of the Sonalika tractors. They

know about the brand of these tractors they basically like DI 740 III.

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TABLE 4.7 : SOURCE OF INFORMATION ABOUT SONALIKA
TRACTORS
Source of information Percentage
Newspaper 0
Television 4
Displays 42
Social network 32
Dealers 22

FIGURE 4.7

INTERPRTATION

The respondents basically know from the displays and their social

network like relatives and friends. Respondents are less aware about the

ads in newspapers.

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TABLE 4.8 : FACTOR OF DISTINCTION AT THE TIME OF THE

PURCHASE OF THE TRACTORS

Factor Of Distinction Percentage


Price 4
Promotional scheme 6
Engine performance 70
Technical advancement 20

FIGURE 4.8

INTERPRETATION

Basically the respondents like the engine performance at the time of the

purchase of tractors only 4 % people go for the prices.

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TABLE 4.9: BRAND PREFERANCES BY THE RESPONDENTS

PREFERENCE Percentage
Good 24
Excellent 40
Bad 20
Satisfied 2

FIGURE 4.9

INTERPRETATION

Around 40% people preferred farmtrac/escorts tractors and 24%

preferred sonalika and 20 % Mahindra and Mahindra

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TABLE 4.10: SATISFACTION LEVEL OF THE TRACTOR USERS WITH THEIR PRESENT

TRACTORS

excellent satisfactory good poor Very poor


52 42 6 - -

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SPECIFICATION %age
GEAR SYSTEM 14
ENGINE EFFI. 26
ACESSORIES 16
HYDRAULICS LIFTMENT 10
MILEAGE 34
TABLE 4.11
FUTHER EXPECTATION IN NEW TRACTOR’S MODEL

FIGURE 4.11

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INTERPRETATION

Basically people want new modification in engine efficiency and mostly


people go for developments in mileage.

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Chapter 6

SUGGESTIONS AND CONCLUSION

GFGC, Shimoga 73
SUGGESTIONS

Through tractor market is highly competitive in India and Sonalika is

relatively new brand. Hence Sonalika need a strong positioning. As

sonalika tractor is capable of pulling more load and unbeatable and

unchallengeable features. Sonalika must be positioned as a tractor, which

is most economical and ideal for heavy load work.

Product awareness:

For promotion of a new product awareness is most important factor. As

all the farmers contacted are aware of sonalika tractors and their features

and specifications. This can be done through organizing kisan melas,

exhibitions and effective demonstration at village level.

Here opinion leaders can play a vital role. Opinion leader is a person

whose opinion is given high weight age by common people like

sarpanchs. Company should also concentrate on this factor.

 Besides these points we would like to suggest few more things:

 More & more emphasis on R & D must be given

GFGC, Shimoga 74
 Spare parts must be easily available for different models of

tractors

 Become a cost leader in field of tractors

 Provide better after sale service to develop better relation with

dealers

CONCLUSION

Sonalika has various advantages over its competitors such as low initial

cost, low fuel consumption, high speed, low maintenance cost, & easy

availability

As tractor is meant for pulling load, sonalika has all these qualities to

pull maximum load due to high backup torque. People prefer farmtrac /

ford tractors as per our research study and people like engine

performance as the main consideration of purchasing tractors.

They basically affected by the displays in providing information

regarding new products so company should create some awareness

regarding this and make some hording on roads to attract tractor users

with new features mention on it.

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Respondents are basically from village sides so they are not affected by

the newspapers, because in their daily life they never spent time on

newspaper and their purchasing decision followed by dealers, social

network and hoardings.

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QUESTIONNAIRE

Dear sir/madam,

I am Kiran S.C a Student of GFGC, SHIMOGA. As part of the


curriculum of BBM degree, I am conducting a survey to prepare project
report on COMPARATIVE STUDY ON TRACTOR INDUSTRY with
Special Reference to Sri Durgaparameshwari Tractors.

Therefore I kindly request you to spare some of the precious time


to answer the following question.

Thanking you

You’re faithfully

Kiran S.C

1. Name :

2. Address :

3. Are you using tractor


Yes ( ) NO ( )
If yes you go to 4 questions

4. Which brand of tractor you are currently using?

a) Sonalika

b) Escorts

c) Mahindra & Mahindra

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d) Tafe

e) Swaraj

f) John Deere

g) Others …………………………….

5. For which purpose you are using tractor?

a) Agriculture

b) Industrial purpose

c) Loading Unloading

6. Which factor will influence you to purchases?

a) Price

b) Performance

c) Quality

d) Brand Image

e) After Sale Services

f) Mileage

g) HP

7. How much horse power is it?

Mention………………

8. What cost did you incurred to procure it?

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a) 2-4lac

b) 4-6lac

c) More than 6lac

9. Are you satisfied with the features provided by sonalika tractor?

a) Yes b) No

If no then reason is ………………………………

10.If yes, How did you come to know about Sonalika tractors?

a) Newspapers

b) Television

c) Displays

d) Friends/Relatives

e) Dealers

11.Is after sale service of this product is easily available to you in near

market?

a) Yes b) No

12. Are you satisfied with after sale service provide by company?

a) Yes b) No

13.From which factor you feel that this company’s tractor is different

from another company’s tractors?

GFGC, Shimoga 79
a) Price

b) Promotional schemes
c) Engine performance
d) Technical advancement
e) Any other specifies ………..
14.Rate your preferences among the different brands of tractors?
a) good
b) excellent
c) satisfied
d) bad
15.How has been the performance of your tractor?
a) Excellent
b) Satisfactory
c) Good
d) Poor

16.What kind of development you want to have in new model?


a) Gear System
b) Engine Efficiency
c) Availability of Accessories
d) Hydraulic Liftment Efficiency
e) Mileage
f) Any Other
17.Any suggestions

Signature

GFGC, Shimoga 80
BIBLIOGRAPHY

 Marketing Management - Sherlekar, Philip Kotler


 Marketing Research - Majumdar
 Principal Of Marketing - Phillip Kotler & Amstrong
 Marketing management - C.B. Gupta
 Research Methodology - R.C.Kothari

1. WWW.SONALIKA.COM

2. SEARCH ENGINE (GOOGLE AND YAHOO)

3. SONALIKA LIBRARY

GFGC, Shimoga 81