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MUENCHEN INTERNATIONAL
BUSINESS SCHOOL
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  ccProf. T.K.Ghosh
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Rahul Banwani - 35

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c Tractor industry plays an important part as agriculture sector has a major contribution to India's GDP.
Tractors are part of agricultural machinery industry. Tractors came to India through imports and later on
were indigenously manufactured with the help of foreign collaborations. The manufacturing process
started in 1961-62. Indian tractor industry is relatively young but now has become the largest market
worldwide.

c Overall tractor industry grows by 18.1% from 3.02 lacs tractors in 2008 to 3.57 tractors in 2009. Good
Monsoon, better crop prices played positive role, whereas Farm credits & Tougher norms for Loan are still
major problems from tractor industry

c In Volume M&M remains the market leader with over 1.5 lacs tractor sales, while John dare shown

c Incredible growth from 15500 tractors in 2008 to 24767 tractors in 2009, translates to 59.4% growth.

c In traditionally strong tractor markets, UP tops the position wit h 34% growth in 2009 from last fiscal.

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c High growth continues from traditionally low markets for tractors. Bihar, Orissa, Assam and West Bengal
grow by 56%, 48%, 96% & 36% respectively.
c M&M is a leading Market player in tractor industry followed by TAFE with 22.4% and Escorts with 13.2% JD
is the player which gained a highest Market share in 2009.
c The medium horse power category tractors, 31-40 HP, are the most popular in the country and fastest
growing segment.

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c The Indian tractor industry is the largest in the world and accounts for one third of the global production.
Having grown at a rapid pace over the past few years, the industry has stabilized and is expected to grow at a
much more modest rate in the future. Structural growth factors like irrigation potential, credit quality,
penetration levels, and demand for farm power per hectare are not significant enough to support a double
digit growth rate in the future. Hence, for a player like TAFE which is highly dependent on farm equipments
for its total turnover, several alternative strategies need to be explored to beat the competition and register
a satisfactory growth rate in the near future.

c The tractor penetration level in India is very low as compared to the world standards. Also the penetration
levels are also not uniform throughout the country. While the northern region is now almost saturated in
terms of new tractor sales, the southern region is still under penetrated. c

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c Despite being a 2 largest producer in India Eicher has almost zero share in southern part of India.

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As market of south India for tractor is increasing rapidly a huge potential can be seen there is a need
to prepare a roadmap to capture that market &:-
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c To increase the popularity and individuality of the brand.
c To make the TG aware about the product and features.
c To create the interest of TG in company͛s offerings.
c To increase the inquiry at the dealer͚s floor.
c To increase the sale and market share of Eicher in the southern market.

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1.c To create the brand awareness among TGs

2.c Strengthen the dealer networkccccccc
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c A big bang which makes the TG aware about the brand.
c To keep the effect alive in the minds of the audience by applying brand recall strategy.
c To understand the buying behavior of TG and to find out the influencing factors which drives
their purchase decisions
c To find the ways to strengthen the distribution channel.
c To change the desire into action so that to boost up the sales.
c To apply the CRM strategy by keeping in mind that it is not so important that how much units you
sell but how many smiles you bring so as to take an advantage of word of mouth technique of
advertisement.
Strategy to Achieve the Target:-

Breaking the target into small packets:-

Awareness Campaign To create the hype among the TGs

To generate sales
Lead Generations

To reinforce the product for a long period

Retention / Recall
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c In this phase the maximum focus will be upon making the TGs aware about the brand Eicher and its
offerings to the market.
c This phase will be helpful to break the stereotype image associated with the brand name Eicher.
c This phase will help the company in getting suspects in a large number.
c The findings from this stage will describe the next plan of action.
c The aim of this phase will be to touch the large number of potential customers in one shot.

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1.c Pre-publicity
2.c Demonstration of the product

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It͛s time to͙͙

c Create the desire among TG for our product.

c Then desire can be converted into sales easily as it would be supported by ability to pay
which will come from the easy finance facility from the bank as͙..
 c TAFE is having a Tie-up with CUB to provide the finance facility which is having a strong
presence in the delta areas of Tamil Nadu, Andhra Pradesh and Karnataka.


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c A canopy activity will be done at the potential villages which are identified in awareness
campaign.
c The promoters in the canopy will educate the potential customer about the Eicher tractor
and Finance facility.
c Same day he will get back to the dealers point and share the booking documents with
dealer.

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For recall extension at retail outlet.

1.c A Dummy Eicher tractor place outside the store for brand visibility

2.c LCD Screen inside the retail outlet to showcase the product features and corporate
presentation

3.c Merchandising at the Centre with :

c Drop Down flex

c Banners
c Hoardings
c Standees

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Time to time participation in:-

c Mela
c Sports Events
c Exhibitions

Other fold of the Marketing Strategy i.e. ccc c'c

c Finding the influential parties in the area that is already in the automotive business.
c Finding the new but interested parties to wants to be a distributor.
c To find the distributors for spare parts.

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A. Pre-Market Development Phase

1. Since Eicher is in totally new but potential market, it is not popularized as the awareness phase
of marketing concept is running.

2. Also the Dealer network is not strengthening enough to support the demand of the products and
spare parts.

3. So it is obvious that EICHER in this new market with more of marketing than the sales
prospective

4. Since the market activation will be at total 1500 location in 3 states the target would be to sell 1
or 2 tractors at a location depending upon the potential market the total target would be to sell
1000 tractors in a year

B. Post Market Development Phase

1. Now the Eicher is enjoying the good brand popularity with the defined dealer network, it will
have sales to search upon the bottom line.

2. Sales Budget will depend upon the southern Market with the overall market sale of the EICHER
in the Indian tractor Market.

3. Since now the market is totally developed the target would be to sell 10000 tractors in a year as
the market growth of the tractor industry was recorded at 18.1% last year with respect to the total
sales that was 3.5 lakhs , from which sales in the south was recorded 25% from the total sales.