Project Eicher

CERTIFICATE
This is to certify that RAMESH KUMAR, PGDM (Second Year) of Institute of

Management Education, Sahibabad, Ghaziabad has done his Summer Project –
GAUGING THE SALES POTENTIAL OF DIESEL ENGINE SETS IN
RAJASTAHN WITH SPECIFIC REFERENCE TO 15-40HP ENGINES – in
EICHER TRACTORS, FARIDABAD under my guidance. The duration of the
project work was two months i.e. from 1st May 2003 to 30th June 2003.
Date: (RAMESH KINI)

Dy. Marketing Manager
Eicher Tractors
59, NIT, Faridabad
1
ACKNOWLEDGEMENT
The project “Gauging the sales potential of 15-40 HP Diesel Engine sets in Rajasthan”,
has been undertaken, in partial fulfillment of the requirements of Post Graduate
Diploma in Management (PGDM) offered by Institute of Management Education,
Ghaziabad. The project has been done at Eicher Tractors, a unit of Eicher Limited,
Faridabad. I take this opportunity to thank Prof. H.P. Gupta, Director, IME for
providing me an opportunity to take this project work. I would also like to thank Mr.
Srikant Kapoor, Faculty, IME, for providing guidance during the project. And, above
all I would like to thank Mr. Ramesh Kini, Deputy Marketing Manager, Eicher
Tractors, who was my project guide and was closely associated with the project right
from the beginning and under whose supervision and guidance whole of the project has
been completed. My sincere thanks also goes to those dealers who participated in the
survey work, and people of Rajasthan, who selflessly revealed several information,
without which I would not have been able to unravel several mysteries of the engine
world, which is now part of this report.
2
SYNOPSIS
 The aim of the project is to gauge the sales potential of 15-40 HP engines in
Rajasthan.
 Research work is based upon the response of questionnaire containing open and
closed ended questions, alongwith statements to be rated on Likert scale.
 Business cycle of 10 years has been detected which can predict phases of growth
in number of dealers in Rajasthan.
 Market estimate with per annum sales figure in 12 districts of Rajasthan found
out.
 Market segments in engine sale were identified.
 Customer behaviour in purchase of engine gauged.
 Warranty / service policy of different companies are examined.
 Relative competition ratio among 3 segments of engine sales viz.

0-14 : 15-40 : >40 is found to be 1 : 4 : 2.
 Brand equity in Rajasthan has been found out Kirloskar > Field Marshal >
Topland > Eicher ………..
 Extent of territorial infringement and several policies to combat infringement viz.

Kirloskar’s, Topland’s etc.
 In sufficient availability of finance for purchase of engines from various banks.
3
INTRODUCTION
“Gauging the sales potential of 15-40HP diesel engine sets in Rajasthan”, is a

comprehensive analysis of the engine world, compiling most of information, about
growth in number of dealers over year, completion of brands, incentives to dealers,
buying and selling strategies, brand USPs, sales potential of different regions, business
market of dealership and relative completion and sales potential of different segments of
engine sales. The project report is based upon a comprehensive survey work done in
Rajasthan during a period of about 45 days’ stay in Rajasthan. Areas visited were, Jaipur,
Sikar, Dausa, Kota, Baran, Bundi, Jodhpur, Pali, Jalore, Dhorimanna, Sanchore and
Alwar. A separate survey of customers has been done to reveal the consumers’ buying
behavour. Analysis is based on a questionnaires response. Accordingly the brand order,
extent of infringement, sales potential of regions has been gauged. All the figures are
arrived at using scientifically approved statistical tools, on which inference of each
question is also based. Limitations and errors if any, are inherent to these statistical tools.
All the conclusions arrived at are honestly based on this methodology and does not
include any bias with respect to brand and region.
4
COMPANY PROFILE OF
EICHER
5
AN OVERVIEW
Eicher began its business operations in 1959 with the roll out of India's first
tractor. Today the Eicher Group is a significant player in the Indian automobile
industry with a gross sales turnover of over Rs. 13,700 million in the year 2002-
03.
The Eicher Group has diversified business interests in manufacturing & marketing of Tractors,
Commercial Vehicles, Automotive Gears, Motorcycles, and exports of vehicles, aggregates and
components. Eicher has also invested in the potential growth areas of Management Consultancy
Services. The activities of the Group are divided into the following business units covering all the
business interests.
EICHER LIMITED
- EICHER TRACTORS - Tractors
- ROYAL ENFIELD - Motorcycles
- EICHER DEMM - Gears
EICHER MOTORS LIMITED - Commercial Vehicles
EICHER INTERNATIONAL LTD - Exports
ECS LTD. - Management Consultancy
Eicher has over 5000 employees located in 10 manufacturing facilities and 24 marketing offices all
around the country. The Group has around 950 vendors supplying components and sub-assemblies
which testifies to the strength of the vendor base. The Group's products are brought to the customer
through its network of around 800 dealers distributed across the length and breadth of the country.
6
EICHER TRACTORS
The Eicher Group started in 1948 when the Goodearth Company was set up to sell
and service imported tractors in India. Perceiving an urgent need to mechanise
Indian agriculture, the Company set up a tractor manufacturing facility, Eicher
Tractors Limited in 1959 in collaboration with Gebr. Eicher, Germany in India. The
first Indian tractor rolled out of Eicher's factory at Faridabad in India, in 1960.
Today, there are over 4,00,000 Eicher tractors that contribute to the nation's
agricultural development. Eicher's manufacturing and marketing facilities located
at Faridabad have been awarded ISO 9001 certification.
Eicher Tractors has a technology transfer tieup with Valtra, Inc of Finland. It has an
extensive network of over 400 tractor dealers and around 56 engine dealers across
India with 15 regional offices and 12 depots.
Committed to providing high quality products, Eicher invests significantly in

technology resources and infrastructure. Our manufacturing facilities are spread
across three states :
Area (sq.Annual Production

Location Address
mtrs) Capacity
59 NIT Faridabad
Faridabad Haryana - 121 00112500 30000 tractors
India
Itarana Road, Alwar
Alwar Rajasthan - 301 00111400 42000 engines
India
Plot No. 1, Sector D,
Industrial Area,
Bhopal Mandideep - 462 046 63640 18000 tractors
District: Raisen (MP)
India
Highlights
• Wide range of tractors, from 61 HP to 24 HP offering the best value for

money.
• Product range includes air cooled and water cooled engines.
• Highly fuel efficient machines, with low maintenance costs.
• Conforming to international emission norms.
• Product range also includes engines in the 22 HP to 32 HP and gensets in

the 15 KVA to 30 KVA categories.
7
EICHER MOTORS
Eicher Motors Limited (EML) was incorporated in 1982 and introduced its first
product, the Canter, a 6 ton GVW truck manufactured at its state of the art plant at
Pithampur, Indore in collaboration with Mitsubishi Motors Corporation, Japan, in
1986. The maiden offering soon created a strong customer base for itself.
From a single 6 Ton GVW truck in 1986, our range today extends from 5T to 16T
GVW trucks and the Skyline and Voila range of Buses. All our products can be
offered in BS II compatible options. We also have arguably the best CNG technology
in the world in our CNG Buses. Pioneering the concept of Built Up vehicles in the
country, we make products that consistently deliver high value to our customers and
are increasingly becoming the preferred option for all CV users, not only in India but
overseas too. Eicher CVs today have significant presence in more than 20 countries
across the world.
In India, Eicher Motors has consistently outperformed the industry in terms of

growth and currently holds over 30% market share in the 6T-11T GVW segments. In
the 9T GVW segment, Eicher Motors continues to be the leader with more than 50%
market share. Our well-equipped workshops result in faster turnaround of service. A
network of more than 4500 Eicher trained private mechanics, over 133 authorized
sales and service centres, and easy availability of genuine parts across more than 300
authorized spares outlets means less downtime and increased opportunities for our
customers to earn.
Eicher Motors is now poised to further consolidate its position in the CV industry by
entering into the Medium & Heavy Commercial Vehicle segments. Strategic plans
are in place to ensure necessary investments in technology and training to constantly
sharpen our development and manufacturing edge. EML is totally committed to
fulfilling the vision of being one of the top 3 CV manufacturers in the country by
giving customers what they want: vehicles that are safe, fuel efficient, easy to
maintain, enhance driver comfort and in turn productivity. Vehicles that deliver value
by providing low cost of ownership and increased profitability to our customers.
THE EML ADVANTAGE
Technological Expertise
Extensive Network
Customized Applications
Efficient cost of ownership
Exports
Vehicle Financing
8
9
EICHER DEMM
Eicher Demm (formerly Ramon & Demm) was set up in 1964, in technical collaboration
with Fratelli Daldi and Mattueucci of Italy - the makers of the famed Demm gears. In
1992, the Eicher Gear Business expanded with the takeover of the Ramon & Demm plant
at Thane, Mumbai.
At present the Gear Business has two plants - at Thane, and Parwanoo in Himachal
Pradesh - which collectively manufacture a spectrum of gear solutions which include:
• Spiral and Hypoid Gears (Crown Wheel and Pinion)

• Straight Bevel Gears
• Spur and Helical Gears
• Cam Shafts
• Precision Machined Components
• Machined Housings
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Royal Enfield
Classic Bikes with power for leisure riding is what a Royal Enfield bike stands for, and Royal
Enfield leads this segment of the market in India by leaps and bounds. Its exquisite range of
motorcycles combines distinctive styles with power, riding comfort and ruggedness to deliver a
unique motorcycling experience.
The Beginning
Royal Enfield India was set up in 1955 when it started receiving 350cc bikes in kits from the UK
and assembling them in Chennai, India. But, eventually the entire bike was manufactured in India
and a couple of years later the Company started manufacturing the 500cc Bullet. By its sheer
power, unmatched stability, superior riding comfort and rugged good looks, the Bullet dominated
and continues to dominate the Indian roads. It is the dream choice of every motorcyclist in India
with even the Indian Army and Police endorsing the Bike.
The Eicher Chapter
In 1990, Royal Enfield entered into a strategic alliance with the Eicher Group, and later
merged with Eicher Group in 1994. The Eicher Group, is one of India's leading automotive
group with diversified interests in the manufacture of Tractors, Commercial Vehicles,
Automotive Gears, Exports, Garments, Management Consultancy and Motorcycles.
Since then, the Company has made considerable investments in modernizing its
manufacturing technology and systems and in 1996, when the Government decided to impose
stringent norms for emission Royal Enfield was the first motorcycle manufacturer to comply.
Royal Enfield is amongst the first few Indian companies to obtain the WVTA (Whole Vehicle
Type Approval) for meeting the European Community norms.
Royal Enfield - revving up
With the finest and brightest of teams in the country, comprising of management professionals
and a skillful, committed workforce, the Company has a unique and open culture, making Royal
Enfield a vibrant and responsive company. To its customers in India and elsewhere in the world,
Royal Enfield means more than just motorcycles… it is a sense of belonging to an exclusive
community with unfading passion, emotion and interest. The Company, is all set to augment its
leadership position, be it in the power and leisure bike segment in India or the classic bike
segment elsewhere in the world, by introducing distinctively styled and higher-powered
motorcycles, strengthening existing communities around its products, expanding its network, and
delivering a unique motorcycling experience.
Maps & Travel Guides
11
Good Earth Publications specializes in the publication of world-class travel guides and
maps. These publications reflect excellence in editorial content and high production
value, and are benchmarked against the best available publications in the world. A highly
professional team of editors, cartographers, designers and production personnel have got
together to bring out these world class travel guides and maps.
Good Earth Publications is the only Indian publishing house which publishes highly
visual guidebooks based on research both on historical and architectural details as well as
hands-on collection of all data relating to travellers' needs.
12
GIS SERVICES & SOLUTIONS
GIS division was formalised in Dec 2000, with the Ministry of Defence, Government of
India , according approval to Eicher for licencing our digital maps of Delhi and satellite
towns.
Eicher now offer GIS products and services that cater to a wide spectrum of applications
in the corporate, and in the infrastructure development segments.
Its services in Digital Cartography include turnkey projects involving the entire gambit of
activities from surveying and mapping to creation of a GIS, and setting up a enterprise
GIS facility for applications in Transportation, Municipal, Electric, Water and Gas
utilities.
EICHER ENGINEERING SOLUTIONS
Eicher has been delivering engineering solutions to our clients for over 5 years. The
focus of our operations is to enable our customers to bring their quality products to
market in the shortest possible time. We achieve this through a pool of highly qualified
professionals who have honed their skills with live implementation experience in Concept
to Prototype Delivery with Product Design and Development, Engineering Analysis and
Software Services.
Eicher is uniquely poised with experience in the automotive area to ideate, design and
deliver virtual and physical prototypes and products. Highly driven by customer
requirements it deliver turnkey projects on design and development, providing high
quality, rapid time-to-market solutions.
Its Delivery Process is built to translate the customer requirements into delivery
specifications with quality checks. Project teams handle the customer orders with strong
adherence to schedules in a professional manner ensuring complete confidentiality. Its
networked locations ensure optimum use of specialised systems and resources.
13
RESEARCH METHODOLOGY
This project work is based on response of a questionnaire which included a variety of

questions both open ended and closed. A separate questionnaire on likert scale had also
been made. The response was taken during one to one interview with dealers of
Rajasthan. The response has been statistically analysed, to make out the conclusions of
the findings. Consumer behaviour has been gauged by surveying the real users of the
diesel engine sets in villages and quarrying about their preferences and constraints while
purchasing a diesel engine set.
Size of Sample = 51
To know about the financing of engines survey work in banks has also been done. The
banks visited are:
Jodhpur Central Cooperative Bank

Rural Bank (Gramin Bank)
Thar Aanchalik Bank
UCO Bank
14
QUESTIONNAIRE
Name:
Address:
Telephone No.:
E-mail:
Fax:
1.For how many years you are in this business
------------------
2.Please indicate the range of engines you are dealing in
a)0-14HP b)15-40HP c)>40HP
3.Rank in order , the range of engines contributing to your sale during last three years.
a)0-14HP b)15-40HP c)>40HP
Vol . vol . vol .
Please answer the following questions with specific reference to the range of 15-40hp engines
only
4.Which type of engines are available with you in this range.

a)air cooled b)water cooled c)both
5.Please indicate the price range in which 15-40 hp engines are available.
Rs--------------- RS--------------- Rs---------------
15
6.Is there any other dealer in your territory?
Yes / no
If yes, then please name them,
1______________________
2______________________
3____________________
7.1Please rank in order the name of competitors in your territory.
1……………………………………
2…………………………………..
3…………………………………..
4…………………………………..
5…………………………………..
7.2 Why people prefer the brand you are dealing in against other brands available in the market
7.3 why do people buy the No. 1 brand
8.Please explain the kind of strategy adopted by you to sell i.e., competitive pricing
,infringement,borrowed from the company's policy.
e.g.:-credited / market support by the company / field activities
16
9.Please explain how do you manage infringement.
10.Please , explain how do you perceive future of your product in market.
11.What are the warranty / after sales service contract available with you ?
12 . What are the terms for financing available with you ? ( banks / financial instn./ private )
17
QUESTIONNAIRE
ON
SURVEY OF ENGINE SALES
NAME
ADDRESS
CONTACT PERSON
Please react to the following statements on the given scale , about the brand you are dealing
in.Here,
1=strongly disagree
2=moderately disagree
3=neither agree nor disagree
4=moderately agree
5=strongly agree
1)People buy water cooled models because they are ignorant about merits of air cooled models.
(_) (_) (_) (_) (_)

1 2 3 4 5
2) People ask for most advertised/publicized / visible models
(_) (_) (_) (_) (_)

1 2 3 4 5
3)People buy because of price rather than anything else.
(_) (_) (_) (_) (_)

1 2 3 4 5
4)Customers come with predetermined model and brand to buy.
(_) (_) (_) (_) (_)

1 2 3 4 5
5)You most of the times change the decision of the customers.
(_) (_) (_) (_) (_)

1 2 3 4 5
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6)You get sufficient dealership margin in sale.
(_) (_) (_) (_) (_)

1 2 3 4 5
7)You get adequate incentives and non monetary benefits, like travelling opportunities, to promote the
brand you are dealing in.
(_) (_) (_) (_) (_)

1 2 3 4 5
8)You are brand loyal and will stick to the brand you are dealing in.
(_) (_) (_) (_) (_)

1 2 3 4 5
9)You will change the brand , for higher margin , with similar sales potential.
(_) (_) (_) (_) (_)

1 2 3 4 5
THANK YOU VERY MUCH FOR ANSWERING ALL THE QUESTIONS WITH
PATIENCE.
19
PHASES IN GROWTH OF NO. OF DEALERS
Watch the product life cycle, but more important, watch the market life cycle –
Kotler
Based on how many years old the dealers are in this business a frequency
distribution table has been made.
Table No. 1
Years old No. of Dealers Cumulative No. of Dealers

starting from the oldest
0-5 8 51
5-10 4 43
10-15 8 39
15-20 9 31
20-25 5 22
25-30 5 17
30-35 6 12
35-40 4 6
40-45 2 2
20
PLOT OF NO. OF DEALERS AGAINST YEARS OLD THEY ARE
NO. OF DLRS.
10
8
6
NO. OF DLRS.
4
2
0
5
5
0-
-3
-1
-2
-4
10
20
30
40
Fig. 1
Smoothened version of the above drawn curve.
NO. OF DLRS.
10
8
6
NO. OF DLRS.
4
2
0
0 5 10
Fig. 2
21
PLOT OF CUMULATIVE NUMBER OF DEALERS AGAINST YEARS OLD
THEY ARE
no. of dealers
60
50
40
30 no. of dealers
20
10
0
40- 35- 30- 25- 20- 15- 10- 5- 0-5
45 40 35 30 25 20 15 10
Fig. 3
Smoothened version of the above drawn curve.
no. of dealers
60
50
40
30 no. of dealers
20
10
0
0 5 10
Fig. 4
22
Drawing the Curve for no. of dealers against years old they are, one can see there are
two phases of growth alternating each other.
 One is the phase of fast growth.

 And another is the phase of slow growth.
 Each phase continues for 10 Years alternating each other.
One can easily see from the no. of dealers curve that the phase of fast growth has
already been round the corner for previous 2-3 years and will continue for 7-8 more
years to come when the curve will go down and a period of slow growth will take
effect.
23
MARKET SHARE & RELATIVE COMPETITION IN
THREE SEGMENTS OF ENGINE SALE
Poor firms ignore their competitor; average firms copy their competitors; winning firms
lead their competitors.
Table No. 2
Range of engines in HP No. of Dealers %of Dealers

0-14 46 90.19
15-40 31 61.78
>40 10 19.6
No. of Dealers
50
40
30
No. of Dealers
20
10
0
0-14 15-40 >40
Fig. 5
24
Table No. 3
Range of engines in HP Total Volume of sales % Share

0-14 5572 74.89
15-40 1088 14.62
>40 780 10.48
=7440
Total Volume of sales

>40
10%
15-40
15%
0-14
75%
Fig. 6
Hence rank order of sale of engines of each segment is
1. 0-14HP.
2. 15-40HP
3. >40HP
Now putting the just arrived figures. Under the light of percentages of dealers
dealing in each segment.
Table No. 4
25
0-14 HP 15-40 HP >40 HP
% of Dealers 90% 61% 20%
Market Share 75% 15% 10%
Assuming,
The total no. of Dealers in Rajasthan = P
The volume of sales in Rajasthan = Q
The above scenario can be depicted like this.
Table No. 5
0-14 HP 15-40 HP >40 HP

No. of Dealers (90/100)P (61/100)P (20/100)P
No. of Customers (75/100)Q (15/100)Q (10/100)Q
26
Since,
Competition is directly proportional to no. of dealers,

and inversely proportional to no. of Customers.
Therefore,
Competition = K X No of Dealers
No. of Customers
(K= Proportionality constant)
Hence Dealer Customer ratio in each case is
Table No. 6
0-14 HP 15-40HP >40 HP

(90/75) P/Q (61/15) P/Q (20/10) P/Q
=1.2 P/Q =4.07 P/Q =2 P/Q
=P/Q Approx. =4 P/Q Approx. =2 P/Q Approx.
Hence relative competition in the three segments is
P/Q:4 P/Q:2P/Q
=1:4:2
Therefore 15-40 HP engine Market is four times more competitive than 0-14
HP Market and it is two times more competitive than >40 HP engine Market
Hence the rule for line extension can be shown as.
0-14 HP 15-40 HP >40 HP
While it is advisable to extend in >40 HP engines area. It is twice so in 0-14 HP

engines area.
AIR COOLED vs WATER COOLED
27
Table No. 7
No. of Dealers No. of Dealers Both Air cooled Water

Dealing only water cooled
dealing only air
cooled
cooled
2 32 17 19 49
3.92% 62.75% 33.33% 37.25% 96.08%
No. of
Dealers
dealing only
air cooled
4%
Both No. of
33% Dealers
Dealing
only water
cooled
63%
Fig. 7
Since, 96.08% of Dealers keep water cooled sets, its immense popularity is
evident against those of the aircooled sets kept by 37.25%.
It was also found out during the survey that air cooled models are popular in
industries, and urban sector while water cooled models are popular in rural &
agricultural sector.
28
AVAILABILITY OF DEALERS IN DIFFERENT PRICE
SITUATION (DEALERS PRICE PREFERENCE)
The best way to get and keep customers is to constantly figure out how to given them
more for less –
Kotler
Based on responses following table has been prepared
Table No. 8
Price Range (15-40HP) (Rs.) No. of Dealers

5000-10000 1
10000-15000 1
15000-20000 5
20000-25000 9
25000-30000 9
30000-35000 8
35000-40000 7
40000-45000 7
45000-50000 8
50000-55000 7
55000-60000 5
60000-65000 6
65000-70000 7
70000-75000 7
75000-80000 6
80000-85000 6
85000-90000 6
90000-95000 5
95000-100000 5
100000-105000 5
105000-110000 4
110000-115000 5
115000-120000 5
120000-125000 5
125000-130000 5
130000-135000 5
135000-140000 5
29
140000-145000 5
145000-150000 5
150000-155000 3
155000-160000 3
160000-165000 3
165000-170000 3
170000-175000 3
175000-180000 3
180000-185000 3
185000-190000 2
190000-195000 1
195000-200000 1
No. of Dealers
10
8
6
4 No. of Dealers
2
0
105000-
155000-
180000-
130000-
30000-
55000-
80000-
500-
Fig. 8
SMOOTHENED VERSION OF THE PREVIOUS GRAPH
30
No. of Dealers
10
8
6
No. of Dealers
4
2
0
0 20 40 60
Fig. 9
A hypothetical chart has been prepared to take note of every change in the of no. of
Dealers against rise in price.
Table No. 9
31
PRICE (Rs.) AVAILABLE NO. OF
DEALERS
32
8000-12000 1
33
13000-14000 2
15000 2
16000 2
17000 4
18000 5
19000 6
20000 5
21000 7
22000 7
23000 8
24000 7
25000 10
26000-30000 9
31000 12
32000 10
34500 9
35000 9
36000-39000 9
40000 11
41000-42000 10
43000-45000 10
46000-50000 8
51000-58000 7
59000-60000 7
61000-62000 7
63000-80000 6
81000-93000 5
94000-105000 5
106000-109000 5
101000-150000 5
151000-185000 2
185000-200000 1
34
AVAILABLE NO. OF DEALERS (15-40HP)
14
12
10
8
6
4
2
0
Fig. 10
Smoothened version of the previous curve
AVAILABLE NO. OF DEALERS (15-40HP)
15
10
0
0 10 20 30 40
35
Fig. 11
TOP DEALERS OF RAJASTHAN
From the response of different dealers of different territories in Rajasthan the

dealers of different regions has been ranked in order according to the dealers’
perception
JAIPUR
1. Jackson Traders 7
2. Industrial Sales and manufacturing 6
3. Arjun Metals 4
4. Bhaskar Power Projects 4
5. Sudhir Gen Sets 3
6. Esen Engineers 3
7. Laxmi Agencies 3
8. Capital Engineers 2
9. Atlantic 2
10. Pratap Diesels Private Ltd. 1
11. Auto Diesel Spare and Services 1
12. Supreme Engineers 1
13. Laxmi Aircon 1
14. Eicher Agencies 1
15. Allied Agencies 1
36
16. Vikash Agro engineers 1
8
7
7
6
6
5
4 4
4
3 3 3
3
2 2
2
1 1 1 1 1 1 1
1
Fig. 12
37
SIKAR
1. Arjun Metals
2. Laxmi Agro Agencies
3. New Chaudhary Enterprises
4. Chaudhary Machinery
5. Chaudhary Auto Centre
6. Chaudhary Auto Enterprise
7. Chaudhary Trading
DAUSA
1. Vijayvargia Sales Co.
2. Rajesh Agencies
3. Rajesh Automobiles
4. Khandelwal Engine Co.
38
KOTA
1. Fatehpuria Bros.
2. Bombay Machinery
3. Govind Agencies
4. Maharashtra Engg. & Machinery
5. Jainsons Enterprises
6. M. M. Sales
7. Maheswari Mill Store
8. Hindustan Machinery Mart
9. Delhi Machinery
10. Sanjay Agro Agencies
11. Nimish Enterprises
12. Dasmesh Enterprises
13. Ambika Krishi Kendra
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BARAN
1. Ganesh Machinery
2. Garg Traders
3. Banshal Machinery Stores
4. Jain Traders
5. Delhi Machinery
6. Nagar Machinery
7. Soni Enterprises
8. Nakoda Industries
9. Manoj Traders
BUNDI
1. Rashmi Traders
2. Shanti Traders
3. Mahajan Mill Store
4. Jhanwar Traders
5. Sharma & Co.
6. Usha Co.
7. Sharma Agencies
8. Vijay Agencies
9. Pradeep Electronics
10. Ashoka Traders
40
JODHPUR
1. Mahesh Engg. Centre
2. Bhagwanti Machinery
3. Jain Machinery Shop
4. Kisan Bros.
5. Azad Enterprises
6. Harsh Trading Co.
7. Shree Kisan Bros.
8. Generators International.
9. Kushal Traders
PALI
1. Om Machinery Stores
2. Kisan Bros.
3. Mohan Machinery
SANCHORE
1. G. M. Agencies
2. Gehlot Machinery
3. Jambheshwar Machinery
4. Barmer Machinery Stores
5. Gayatri Machinery
6. Choudhary Sales Co.
41
DHORIMANNA
1. Ashapuri Traders
2. B. R. Chaudhary Machinery Stores
3. Jangid Krishi Kendra
4. Gehlot Machinery
5. Kishan Machinery Store
6. Malaxmi Machinery
7. Godara Machinery Stores
8. Gopal Diesel Engines
9. Ganpati Traders
10. Vishwakarma Machinery
11. Jagdish Selection Machine Stores
12. Sarvodaya Electricals
BARMER
1. Barmer Enterprises
2. Marudhar Enterprises
3. Barmer Machinery Parts
ALWAR
1. Khandelwal Krishi Kendra
2. Agriculture Associates
3. Laxminarain Narendra Kumar
4. Subham Agency
5. Indrajit
42
COMPETITION OF BRANDS & BRAND EQUITY
No of Respondents = 51
According to the responses from these dealers of different brands, rank in order of
competitors of different brands has been worked out, based on the following
formula.
No of Points = (No. of Brands ranked+1) (No. of

respondents of the concerned brand) –
sumtotal of ranks assigned
Based on the points gathered the different brands has been ranked in descending
order
43
RANK IN ORDER OF COMPETITORS OF KIRLOSKAR
Table No. 10
RANK BRAND POINTS

1 Field Marshal 117
2 Eicher 57
3 Ashok leyland 34
4 Cummins 33
5 Vishal Bharat 24
6 Prakash 22
7 Topland 16
8 Crown 12
9 Atul 11
9 Ajit 11
9 Usha 11
12 Mercury 9
Perception of extent of competition given by other brands to Kirloskar.
POINTS
Crown Ajit
Usha Mercury
3%Atul 3% Field Marshal
Topland 3% 3%
3% 33%
4%
Prakash
6%
Vishal Bharat
7%
Eicher
Cummins 16%
Ashok leyland
9%
10%
Fig. 13
Perception of extent of competition given by other brands to Field Marshal

Table No. 11
RANK BRANDS POINTS
1 Kirloskar 82
2 Topland 61
44
3 Satyajit 22
4 Anil 15
5 Indrajit 8
6 Mercury 7
7 Sonnet 6
7 Progressive 6
9 Bharat 5
Perception of extent of competition given by other brands to Field Marshal.
Sonnet
3% Progressive Kirloskar
3% Bharat
Mercury 39%
2%
Indrajit
3%
4%
Anil
7%
Satyajit
10%
Topland
29%
Fig. 14
Perception of extent of competition given by other brands to Topland
Table No. 12
RANK BRANDS POINTS

1 Kirloskar 8
2 Field Marshal 6
3 Mercury 3
45
3 Prakash 3
Perception of extent of competition given by other brands to Topland.
Prakash
Mercury 15%
15% Kirloskar
40%
Field Marshal
30%
Fig. 15
Perception of extent of competition given by other brands to Eicher
Table No. 13
RANK BRANDS POINTS

1 Kirloskar 10
1 Field Marshal 10
3 Topland 8
4 Anil 4
5 Sonnet 3
6 Satyajit 2
46
Perception of extent of competition given by other brands to Eicher
Satyajit
Sonnet Kirloskar
5%
8% 27%
Anil
11%
Topland
22%
Field Marshal
27%
Fig. 16
Perception of extent of competition given by other brands to

Usha
Table No. 14
RANK BRANDS POINTS

1 Kirloskar 24
2 Field Marshal 12
3 Bharat 5
4 Topland 4
5 Prakash 3
6 Sonnet 2
Perception of extent of competition given by other brands to Usha
47
Topland Prakash
Sonnet
8% 6%
4%
Bharat
10% Kirloskar
48%
Field Marshal
24%
Fig. 17
Perception of extent of competition given by other brands to Ashok Leyland

Table No. 15
RANK BRANDS POINTS

1 Kirloskar 3
2 Tata 2
3 Cummins 1
Cummins
17%
Tata Kirloskar
33% 50%
48
Fig. 18
Perception of extent of competition given by other brands to Cummins
Table No. 16
RANK BRANDS POINTS

1 Kirloskar 3
2 Ashok Leyland 2
Tata 1
Tata
17%
Ashok Kirloskar
Leyland 50%
33%
Fig. 19
49
Perception of extent of competition given by other brands to remaining brands
Table No. 17
RANK BRANDS POINTS

1 Kirloskar 26
2 Field Marshal 20
3 Topland 19
4 Prakash 10
4 Satyajit 10
4 S.A Tiger 10
7 Harvest 9
7 Progressive 9
9 Sonnet 8
9 Varun 8
Sonnet Varun Kirloskar

Progressive 6% 6% 19%
7%
Harvest
7% Field
Marshal
S.A Tiger 16%
8%
Satyajit Prakash Topland
8% 8% 15%
50
Fig. 20
Measure of Brand power of each brand

Assuming each dealer rates his brand as number one in the territory the brand power of
individual brands has been calculated based on the same previous formula.
Table No. 18
Brands Points gained by own Points given by Brand power
dealers other dealers (A+B)
(A) (B)
Kirloskar 430 156 586
Field Marshal 279 165 444
Eicher 54 57 111
Usha 78 11 89
Topland 32 108 140
Ashok leyland 9 36 45
Cummins 9 34 43
Others 232 186 418
Fig. 21
700 Brand order in Rajasthan
600
156 Marshal 3.Topland 4.Eicher 5.Usha 6.Ashok Leyland 7. Cummins.
500 2.Field
1. Kirloskar
400 165
PERCEPTIONS,
300 SELLING PROPOSITIONS AND BRAND 186
200 430 11
279 57 108 232
100 54 USPs
78 32 36
9 34
9
0
d
l
a
s
r
n
d
in
a
rs
er
a
la
n
h
k
rs
e
h
la
y
s
os
From these two questions several selling propositions and perceptions about the
th
a
ic
le
U
m
op
M
E
irl
O
u
k
T
K
different brands has been charted. They appear in the order of frequency they are
C
ho
ld
ie
s
F
heard in the market.
KIRLOSKAR
 Faith in name (Brand Power)
 Powerful
51
 Availability of service
 Genuine parts
 Engine is o.k.
 Quality
 Cheap
 Requires overhauling after three years
FIELD MARSHAL
 Good quality
 Oldest name in the market
 Good service
 Free service camp in two years
 Fuel economy
 Availability of spares
 Availability on credit
 Reasonable price
TOPLAND
 Heavy wheel
 Less complaints
 0% accident rate in 12 HP (Safe)
 Good strengths
 Availability of service
 Fuel economy
52
 Cheap
EICHER
 Aircooled
 Fuel economy
 Maintenance free
 Good quality
 Engine gets derated at high temperature
Based on the information about different brands in question numbers 7.1 & 7.2
unique selling propositions (U.S.P.) of different brands has been worked out.
Table No. 19
NAME OF BRANDS U.S.P.

Kirloskar Brand power
Field Marshal Ready availability of service & spares.
53
Topland Accident free
Eicher Fuel economy
Kisan Synonym of Topland
President Synonym of Topland
Satyajit Better piston position
Annapurna Availability of spares
Ashok leyland Heavy duty
Cummins Quality
54
SELLING STRATEGIES
Based on the response from 51 dealers a frequency distribution table of different

strategies for selling has been made.
Table No. 20
SELLING STRATEGIES NO. OF DEALERS

Advertisement 25 (50%)
Field activities 16 (32%)
Credit sale 11 (22%)
Discount 8 (16%)
After sales service 4 (8%)
no effort 6 (12%)
Series 1 denotes the strategies adopted by the dealers while.
60
50
40 26
30 35 40 43 45
47
20
10 25 16 11 8 4 6
0
.
rt
t
t..
.
un
..
. ..
fo
t. .
al
ac
co
ef
er
it
rs
d
dv
no
is
re
f te
el
D
A
C
Fi
Series 2 shows dealers not adopting the corresponding strategies.
Fig. 22
Hence selling strategies in the order of popularity among dealers are as follows.
55
1. Advertisement 2.Discount and credit 3.Field activities 4.No effort
5. After sales service.
56
TERRITORIAL INFRINGEMENT
Established channels for different markets and aim for efficiency control and
adaptability.
Successful “go to market” strategies require integrating retailers, wholesalers
and logistical organizations –
Kotler
Based on the response from 51 Dealers it was learnt that infringement is
happening at a sizeable level. Few dealers claimed that 30 to 40 percent of sale is
through infringement. It was also known that few brands are prone to
infringement for example, infringement is rampant among Kirloskar dealers. Few
dealers of Topland and Field Marshal also confided that infringement is
happening in every brand including theirs but not at a noticeable level. Few
dealers also confided that company instigates infringement. Infact Kirloskar has
made “infringement” its defacto policy. A total of 13 dealers out of 51 said that
there is no check to infringement and they counterinfringed in others territory.
However there was a general feeling that infringement acts as disincentive for
field work and brand building exercises.
infringement
57%
no
infringement
43%
57
Fig. 23
Infringement is rampant in engine market because of following reasons:

• Overall shrinkage in the sale of engine
• Shrinkage in the sale of big brands, like Kirloskars, because of drought on the one
hand ,and tough competition on the other hand
• Infringement is the indicator of shrinkage in sale, and degree of infringement is

directly proportional it.
MANAGING INFRINGEMENT
KIRLOSKAR'S STRATEGY:
(De facto policy)
Kirloskar uses infringement to its advantage by compelling dealers to cut down their
margin & being able to clear inventory at the cost of dealers
(De Jure policy).
• The commission of the infringing party goes to the dealer of the territory
TOPLAND'S STRATEGY
• Make as many dealers in the same territory but give brand name to only one and
change the brand name like Kisan Topland or President Topland etc.
FIELD MARSHAL'S STRATEGY

• Outright cancellation of dealership of the infringing party.
INFRINGEMENT IS FACED BY THE BIG BRANDS AT THE NOTICEABLE LEVEL
BECAUSE OF LARGE NO. OF DEALERS VYING FOR CONSISTENT MARKET
SHARE IN THE PERIOD OF DECLINING OVERALL SALES VOLUME.FURTHER
IT IS ACCENTUATED BY INCREASING COMPETITION BY OTHER BRANDS
58
WHICH ARE EATING A CHUNK OF THEIR PIE BELIEING THEIR PROJECTED
SALES FIGURE.
FUTURE PERCEPTIONS
The response of dealers has been divided into three categories

(i) Good – number of dealers perceiving future of engine industry as
good.
(ii) Bleak – number of dealers perceiving future of engine industry as
bleak or dark.
(iii) Uncertain – number of dealers perceiving future of engine industry as
Uncertain or based on factors like rain supply of electricity etc.
Table No. 21
Good 19
Bleak 12
Uncertain 18
Good
Uncertain
39%
37%
Bleak
24%
Fig. 24
Market Buzz about engines’ future
• Demand for high speed engines will increase
• Good rainfall will boost engine sale
• Future of water pumps is bleak
59
• Future of Gensets is bright
WARRANTY & SERVICE CONTRACTS
Based on response from dealers following information has been gathered

regarding warranty and service policy of the companies.
• Field Marshal Policy
Field Marshal has warranty policy of 1Year, which covers:-

1. Body 2.Block 3.Head 4.Crank & 5. Wheel
However, it does not give warranty on

1. Nozzle 2. Plenzer & 3.Silencer
The company gives Rs.25/- per set for service to the dealers.
The company also arranges free service camp annually or biannually

• Kirloskar Policy
Kirloskar gives 1Year warranty and has service engineerevery 14000 sets.
(Rajasthan has only one service engineer).
• Eicher Policy
Eicher gives warranty for 1Year or 1000 running hours whichever is earlier.
• Topland Policy
Top land gives 6 months warranty an each set.
• Ashok Leyland & Cummins Policy
60
Ashok Leyland & Cummins offers 1Year warranty
(Dealers of Kota region have curtailed the warranty period to 6 months only,
for all the brands, irrespective of what is promised by the company.)
Every dealer has their own trained mechanic, and barring few exceptions all
of them bear the cost of servicing within warranty period.
Some Kirloskar dealers told that replacement is problematic and sometimes it

takes even a whole year.
Some minor brands like Swaraj, offers guarantee (Which in engine market
means replacement of whole set in case of any fault) of 1year.
61
FINANCING OF ENGINES
From the response of dealers following things has been learnt about financing
of engine. Financing of engine is available through banks. These banks
are:-
• Thar Anchalik Bank.
• Gramin Bank.
• Co-operative Bank
• Land Mortgage Bank.
To get loan from any of these banks, membership is required, which is available
on producing evidence of being native of the region where the Bank is located,
and payment of membership fees. Banks don’t give loan for engines if the
resident is in dark zone (notified by NABARD as regions where water level is
below 50 feets). For non dark Zone, loan is granted for upto 10HP engines, which
should necessarily be ISI marked. There is no list of preferred brand. Whereas Co-
operative Bank requires margin money on quoted amount, Land Mortgage Bank
does not require any margin money. Rate of interest is 11.5%.
In addition to all these Banks several other Banks grant loan as personal loan.
62
ANALYSIS OF
RESPONSE TO STATEMENTS ON
LIKERT SCALE
63
S.1 People buy water cooled models because they are ignorant about merits of air
cooled models.
No. of Respondents = 50
Table No. 22
Strongly agree (5) 13

Moderately agree (4) 7
Neither agree nor disagree (3) 6
Moderately disagree (2) 6
Strongly disagree (1) 18
Strongly Strongly
disagree (1) agree (5)
36% 26%
Moderately
agree (4)
Moderately Neither
14%
disagree (2) agree nor
12% disagree (3)
12%
Fig. 25
Mean likert rating =2.78
64
Inference:
Likert rating of 2.73 and option wise break up of the Response, both shows
general disagreement to the proposed statement.
According to dealers perception about the customer buying water cooled sets,
amidst availability of good air-cooled sets, ignorance, is not the reason behind it
rather, it was learnt there are many barriers behind it. The most prominent are:-
Psychological Barrier and Perceived technological deficiency. People feel
aircooled sets create problems in the long run, like oil spillage, over-heating,
diminishing performance etc. Further water- cooled sets do have some inherent
problems with it but people are accustomed to it and consider it as safe bet
against air-cooled ones.
But it was also found out that air-cooled sets are fairly popular among industries
and corporate for they require little care from the operators.
65
S.2. People ask for most advertised/publicized /visible models.
Table No. 23

Strongly
Moderately
disagree (1)
disagree (2)
14%
2%
Strongly
Neither agree (5)
agree nor 56%
disagree (3)
Moderately
8%
agree (4)
20%
Fig. 26
Mean likert rating =4.02
Inference:
66
Likert rating of 4.2 and only 16% of moderate and strong disagreement against
the statement suggests overwhelming acceptance of the proposed statement.
However during the survey it was learnt that visibility creates the most powerful
impact in the engine market, rather than advertising and publicity. People have
herd mentality and prefer to buy brand and model visible in the vicinity. Rural
folks have conservative mindset and they want a ‘secure’ buy rather than
venturing with an unknown brand in the market.
S.3. People buy because of price rather than anything else.
67
Table No. 24

Fig. 27
Mean likert rating = 2.3 Strongly
agree (5) Moderately
Inference:
6%to the agree (4)
Likert rating of 2.3 and only 32% people agreeing statement shows,
26%
majority of people don’t buy because of price. However, there is a niche of
Neither
people in every Strongly
region who buy purely for price. There are around 6-7%
agree nor
customers in adisagree (1) purely for price while 25-26% people keep price
region buying disagree (3)
high on the priority50%
of factors influencing their buying decision. 10%
Moderately
S.4. Customers come with predetermined model and brand disagree
to buy.(2)
8%
Table No. 25

Moderately disagree (2)Moderately Strongly 3
5
disagree (2) disagree (1)
6%Fig. 28 10%
Neither
agree nor
Meandisagree
likert rating (3) = 4
10% Strongly
Inference: agree (5)
Moderately 52%
agree (4) 68
22%
Likert rating of 4 and 74% of people moderately and strongly agreeing to it,
shows that people come with predetermined brands and models to buy.
S.5. You most of the times change the decision of the customer.
Table No. 26

Moderately Strongly
Strongly
4% 8%
agree (5)
Neither 28%
agree nor
disagree (3)
8%
Moderately
agree (4)
52%
Fig. 29
Mean likert rating = 3.88
69
Inference:
Likert rating of 3.88 and moderate agreement of 52% of dealers shows that they
are in partial agreement of the statement. Hence , it may be inferred that dealers
does not change the buyers’ decision most of the times but many times they do so.
70
S.6. you get sufficient margin in sale.
Table No. 27

Fig. 30
Strongly Strongly
Mean likert rating = disagree (1)
2.6 agree (5)
36% 18%
Moderately
agree (4)
16%
Inference Moderately Neither
disagree
Likert rating of 2.6 of people clearly not agreeingagree
with 56%(2) to the nor
statement,
20% amongst dealers, regarding thedisagree
shows widespread resentment (3)get in
margin they
10% get 4-5%
sales. It was also revealed during the survey that Kirloskar dealers
margin, Field Marshal dealers get 3-4% margin, Topland dealers get 8-9%
margin, Eicher dealers get 6-7% margin, Kisan & president dealers get 5%
margin. General expectation of dealers is that they should get 10-12 % margin in
sale, so that they could bear the cost of field activities and servicing.
71
S.7. you get adequate incentives and non monetary benefits, like 72raveling
opportunities, to promote the brand you are dealing in.
Table No. 28

72
Fig. 31
Strongly
Strongly
agree (5)
disagree (1)
14%
50%
Moderately
agree (4)
28%
Neither
Moderately agree nor
6% 2%
Inference:
Likert rating of 2.48 with 50% dealers strongly disagreeing and 56% moderately
& strongly disagreeing, while 42% strongly and moderately agreeing to the
statements, denotes, different expectation of dealers from concerned brand
owners. Whereas Kirloskar dealers get target incentive, Topland dealers get target
discount and Field Marshal distributor get gifts like, T.V., V.C.P., Refrigerators
etc, on target fulfillment.
Many dealers get travelling opportunities, once or twice a year. However this is
not the point of contention and many felt they would be happy if such tours are
organized once in two years, so that they too may save their precious time.
73
74
S.8. You are brand loyal and will stick to the brand you are dealing in.
Table No. 29

Strongly Strongly
Moderately
18% 44%
disagree (2)
6%
Neither
agree nor Moderately
18% 14%
Inference
Likert rating of 3.5 suggest reservations of dealers in admitting their brand
loyalty. Thus, dealers are not sure if they would stick to the brand they are
dealing in. this shows the extent of uncertainties in this segment of sale.
75
S.9. you will change the brand, for higher margin, with similar sales potential.
Table No. 30

Strongly
disagree (1) Strongly
Moderately
22% agree (5)
disagree (2)
34%
6%
Neither
agree nor Moderately
8% 30%
Fig. 32
Inference
76
Likert rating of 3.68, with 64% of dealers moderately & strongly agreeing to it
shows impact of margin on brand loyalty among dealers. Thus, agreement to
this extent suggests that margin plays a major role in shaping brand loyalty
among dealers. dealers who moderately agree prefer to add the incumbent brand
to the list without loosing the previously existing brand.
77
Table No. 31
S. STATEMENTS LIKERT INFERENCE

NO. RATING
1 People buy water- cooled Models because 2.78 Disagree
they are ignorant about merits of air cooled
models.
2. People ask for most advertised/publicized 4.02 Agree

/visible models.
3. People buy because of price rather than 2.3 Disagree

anything else.
4. Customers come with predetermined model 4 Agree
and brand to buy.
5. Customers come with predetermined model 3.88 Agree
and brand to buy.
6. You get sufficient margin in sale. 2.6 Disagree
7. You get adequate incentives and non 2.48 Disagree
monetary benefits, to promote the brand you
are dealing in.
8. You are brand loyal and will stick to the 3.5 Agree
brand you are dealing in.
9. You will change the brand, for higher 3.68 Agree
margin, with similar sales potential.
78
GAUGING THE SALES POTENTIAL OF 15-40HP
ENGINES IN RAJASTHAN
Calculated total sales of 38 dealers = 1088 sets

Since 99 dealers are listed and assuming 10% dealers remained
Unscanned.
Estimated No. of dealers = 99X(1+10%)=109

Therefore, total estimated sales = 109X1088 = 3120 sets
38
Likewise, projecting the sales figure all over the surveyed area we get the market
estimate of each region.
79
Table No. 32
NAME OF REGION ESTIMATED SALES (15-40HP)
Jaipur 487
Sikar 200
Dausa 115
Kota 372
Barmer 86
Sanchore 172
Dhorimanna 344
Pali 86
Jodhpur 258
Bundi 286
Baran 258
Alwar 143
Rank in order of market sales of regions.
Alwar Jaipur
Baran
5% 18% Sikar
9%
Bundi 7%
10%
Dausa
Jodhpur 4%
9%
Kota
Pali
Barmer 14%
3% Dhorimanna Sanchore
3%
12% 6%
Fig. 33
Jaipur > Kota> Dhorimanna> Bundi> Jodhpur, Baran> Sikar> Sanchore> Alwar>
Dausa> Barmer, Pali
CUSTOMER BEHAVIOUR
The most important think is to forecast where customers are moving, and to be in front of
them –
80
Kotler
A separate customer’ survey was done to gauge the customers’ buying behaviour. In this
survey it was found out that there is an order in which people choose a brand and model
to buy. This order can be shown as :-
 Choice of dealer.
 Availability of services & spares.
 Quality of the set.
 Price of the set.
Dealers have their area of influence and they get their customers from that area only.
Customers choose the dealer based on the performance of sets in his neighborhood or
one previously owned by him. Hence, dealers play the most important role in selling
an engine set. Some of the dealers are even known for assisting the customers in
getting loan, e.g., one Field Marshal dealers, who earlier dealt in ‘Rocket’ brand
engine, was successful in selling bulk of them because of this policy only. Several
people in Hemaguda village of Sanchore Tehsil has bought ‘Rocket’ brand because
of this only. However, customer behaviour has changed by then and few people talk
of buying on credit, even dealers don’t want to sell on credit nowadays (Kota is an
exception, where credit sale in maximum). Nonetheless, dealers still come on top of
their mind while buying an engine.
After having chosen the dealer they know, customers look for whether services and
spares are readily available or not. People are ready to buy a mediocre set which can
be repaired easily by themselves or any readily available mechanic, rather than going
for sophisticated ones with complex engineering and which requires expert handling
in case of fault. An anecdote from an incident may prove useful in this case. While in
Pali, I encountered a villager who told me that he consider Massey Fergusson tractors
better than Ford or Eicher, because Ford or Eicher will not work in case of even miner
81
fault but Massey will work even if there is a fault in its engine. Same principle
applies in the case of diesel engine sets too.
After having ascertained dealer and availability of services and spares, the customers
looks for the quality of the set. Quality of the set is Judged on following parameters.
 Expected life of the set

 Time period after which servicing is required
 Fuel efficiency.
Nowadays people considers buying an engine as a long time investment. Hence

people don’t’ care, if they spend extra for better quality. Quality comes above price in
customers’ mind.
82
WHY DEALERS ARE SO IMPORTANT
Many businesses are wisely turning their suppliers and distributors into valued partners–
Kotler
Types of Customers Dealer’s Offer
Credit Hunter Credit
Discount Hunter Discount
Utility Hunter Extra Service & Spares
Brand Hunter Advertisement / Visibility
Information Barrier
On the left side of the above drawn diagram are the types of customers available in the
market and boxes on the right hand side shows the strategies adopted by dealers to lure
these customers. The broken vertical line shows a semi permeable barrier which can be
passed through the acquaintance with the dealer offering these customers their desired
bargain. Because, credit and discount are offered in the engine market in hidden way,
therefore, customers choose the one based on information floating in his surrounding.
That is why we find dealers commanding influence in pockets. Further, servicing of
engine is also promised by few dealers beyond warranty period. Since, much of the
pricing and servicing contract is being done in confidential manner between customer and
dealer, choice of dealer becomes of paramount importance to the customers.
83
Returning back to the diagram, if the customer is not able to pass through the semi
permeable barrier, he falls into the next lower category just below him and so on. Since,
customers try their best to remain in higher order, therefore, they cling on to the dealer
known to him rather than venturing and scanning the market.
84
EXPLOITING CUSTOMERS’ BEHAVIOUR TO BOOST
SALES POTENTIAL
Since the order of preference in buying a diesel engine set in known which reads
as
Dealer> Services & Spares> Quality> Price.
And the factor which makes 15-40HP segment most competitive (Relative
competition ratio of 3 segments is 1:4:2) is the overabundance of dealers over
customer. Both the facts suggests, brands should spread themselves all across the
dealers in the targeted territory. The brand like Kirloskar has wide presence
among dealers and hence it is better propositioned in the market. Field Marshals
strategy of distributors driven network will not work in this segment. In fact Field
Marshal is a new entrant in this segment and shall have to learn the hard fact that
it is a segment of very high competition, where competition among dealers can be
combated only by spreading the brand across the dealers.
Eicher is very vulnerable to this competition among dealers because there are very
few number of dealers of Eicher in this segment. In fact brands will find that sales
is directly proportional to the number of dealers in this segment.
A good service policy may be the next target to boost the sales. Ready availability
of spares and service centers across the targeted territory may boost sales. Infact,
anamoly is that dealers play more on advertising and credit and discount, and
services comes last in their preferred tool for sales promotion techniques. Here,
Field Marshal scores over everyone by arranging annual free services camp. Little
to wonder is has acquired an envious aura in the engine market and customers
mindset.
85
Quality of the set is of importance only when the set has passed through two
previous stages in selling process. If the sale is decided on the previous two
parameters then even an O.K. quality will do. Infact, this behaviour is due to the
fact that people buy an engine sets to get return. They want it to work in required
time period. Hence services and spares are above quality in consumers preference.
Nevertheless, there is a section of quality conscious consumer who skips the

previous two stages and go for a better quality. These are the customers from
industries and corporates. They are the people who prefer aircooled over water
cooled, less bothered about complexity of engineering and services and spares.
Among majority of customers price is the last thing they look for in an engine set.
These days pricing is no more a barrier for good quality infact there are few
customers who buy purely an price basis.
Now looking at all the parameters that customers keep in mind while purchasing
an engine set. Kirloskar is the overall winner which plays an all the four fronts
while other brands are playing upon few of them only. Hence, Kirloskars’
Marketing strategy with enormous brand power (shown earlier) is suitably poised
in 15-40HP diesel engine market.
86
MARKET SEGMENT IN 15-40HP, ENGINE SALES
15-40 HP engine market may be segmented on following basis-
1. Based on electric supply in the region:-
(a) About 12 hours of electric supply:- people buy to supplement the electric
supply from electric lines and use less of engines infact market size is meager
in this segment Sanchore, Jalore & Pali are such type of regions.
(b) About 6hours of electric supply:- people depends fully on diesel engine sets
for irrigation and other applications. Dhorimanna & Barmer are such region.
In fact these are the real market for 15-40HP engines.
2. Based on credit sale:-
(1) High credit sale:- People here prefer credit, which has given rise to a
distinet marketing environment. Kota, Baran & Bundi are such regions.
(2) Moderate credit sale:- Jaipur, Sikar and Dausa.
(3) Low credit sale Jodhpur, Alwar, Dhorimaama, Pali
Sanchore
3. Based on ease of maintenance & convenience of use:-

(i) Seeking convenient and easy to handle sets:- Urban people who prefer
aircooled over water cooled, light weight over heavy weight, portable against non
portable sets and low-noise against high noise making sets.
87
(ii) Seeking heavy duty high utility sets:- rural people, who use sets for
irrigation and related agricultural purposes, seeks water cooled and are not
bothered about weight, portability and noise level.
EICHER PERSPECTIVE
Eicher tractors manufacture engines starting from 22HP to upto 45HP, that means it is
placed in the most difficult segment of engine industry i. e, 15-40HP. Further, engine
sales in this segment is proportion to the number of dealers. with very low number of
dealers in this segment, Eicher can’t expect to boost its sale. The first most important
thing is to increase the number of dealers. Good news is that growth in number of
dealers is passing through the stage of high rate of growth which is expected to be
maintained for coming 7-8 years. The company should try to make maximum number of
dealers within this period. Further, all dealers are not alike. Average sale per dealer
calculated during survey is 29 sets per annum. The company should set a realistic target
and reward the dealers who sell above this level. The realistic target, keeping in view the
brand power of Eicher (rated as No. 4 in industry) is 25 sets. Any dealer who sells above
25 sets in an year should be given target incentive on target discount. Looking at the
rated competitors of Kirloskar (the market leader in this segment), Eicher figures at
number 2 after Field Marshal. But, Field Marshal is new in this segment and unknown in
more than 20HP segment. This elevates Eicher from, ‘Trailer’ to ‘Runner’ status, thus
allowing it to make concentrated frontal attack on Kirloskar. Weak points of Kirloskar
enumerated during survey are:-
1. Frustrated Dealers become of high level of territorial infringement and unrealistic

target.
2. Poor conformance quality
3. Short expected life of set.
4. Delayed availability of services
88
Eicher may attack on Kirloskar based on following points.
1. Treat dealers as business partners by giving them adequate incentive, realistic target
and other fringe benefits like travelling opportunities, gifts etc.
2. Maintain high level of conformance standard in its set and frame some policy to
remove consumer dissatisfaction in case some of its sets are not meeting the
required standards.
3. Frame a good servicing policy. And annual on biannual service camp, as organized
by Field Marshal, may be ideal for this purpose. Infact a time frame should be
given within which a fault must get corrected.
4. Burst the Myth of aircooled sets being problematic. It should spread awareness
among masses by ‘showing’ the effectiveness and ease of operation of aircooled
engines in mass gathering, exhibition etc, because visibility creates great impact
among masses.
5. Aircooled sets combined with fuel economy as USP and good servicing policy, it
can make a frontal attack on Kirloskar by means of comparative advertisement in
media or wall paintings or public gatherings.
89
ANNEXURE
90
CALCULATION OF MARKET ESTIMATES
Gauging the sales potential of 15-40 HP engines in Rajasthan.

Calculated total sales of 38 dealers = 1088 sets
Since 99 dealers are listed and assuming 10% dealers remained unscanned.
 10 
99 1 +  = 109
 100 
Total estimated sale = 3120 sets
Market estimate of
17
Jaipur = × 3120 = 486.6
109
7
Sikar = × 3120 = 200.367
109
4
Dausa = × 3120 = 114.5
109
13
Kota = × 3120 = 372.11
109
3
Barmer = × 3120 = 85.87
109
6
Sanchore = × 3120 = 171.74
109
12
Dhorimanna = × 3120 = 343.5
109
91
3
Pali = × 3120 = 85.87
109
9
Jodhpur = × 3120 = 257.61
109
10
Bundi = × 3120 = 286.239
109
9
Baran = × 3120 = 257.615
109
5
Alwar = × 3120 = 143.12
109
92
LIST OF DEALERS
JAIPUR
Name of Address Phone & Fax Contact Person
Dealership
Auto Diesel Spare M.I. Road 2378137 (o) Vijay Kumar Uppal
& Services
Esen Engineers 13, Motilal Atal 368661 (o) 378911, Ravi Malhotra
Road 408833
378911 (Fax)
Pratap Diesels Pvt. 453, Sanjay Nagar, 2344351, 2346361 P.S. Sekhawar &
Ltd. ‘D’ Kalwar Road, 0141-23441551 D.S. Sekhawar
Ajmer Sikar Bypass, (Fax)
Jhotwara
Jackson Traders 141 ‘B’ Ganpati 2365120, 2365159 Manju Sharma &
Plaza, M.I. Road 0141-5108538 Mahendra Sharma
(Fax)
Arjun Metals Pvt. 102, City Centre, 2369213, 2375499 Arjun Choudhary
Ltd. S.C.Road 0141-2375498
(Fax)
Supreme Engineers Radhika Complex, 2365811, Ramniwas

Loha Mandi, S.C. 9829053265 Choudhary
Road (Mobile)
Sudhir Gensets Ltd. 403, shalimar 2371045, 5104045 P.K. Kochhar
Complex, Church 0141-2371045
Road (Fax)
Eicher Agencies 7, Transport Nagar, 2340661 432759 Mahendra
Agra Road Choudhary
Laxmi agencies Shiv Bhawan, 2365691 Dinesh Bhati
Station Road 2366990 (Fax)
Vikash Agro Vanasthali Marg 2361936 Santosh Kumar
Engineers Sharma
93
Capital Engineers 165-166, Ganpati 5102333 Rajendra Sharma
Plaza 2388658 (Fax)
Industrial Sales & Katewa Bhawan, 2375371, 5108059 Shashank Bhargava
Manufacture Co. M.I. Road 0141-2366329
(Fax)
Atlantic Agencies M.I. Road, Purohit 2367465 G.R. Nahar
Ji Ka Bagh 0141-2366879
(Fax)
Bhaskar Power Anukampa Tower, 0141-375165 Manish Pareek
Projects (Pvt.) Ltd. Church Road 9829058011
(Mobile)
94
SIKAR
Dealership
Laxmi Agro Kalyani Circle, 01572-251207 (o) Mahavir Prasad
Agencies Silver Jublee Road 255037 (R) Sharma
Arjun Metals Kalyani Circle 255548 Mukanda Ram
New Choudhary Kalyani circle, 51475 (O) 43100 Bhanwar Choudhary
Enterprises Silver Jublee Road (G) 58991 ®
DAUSA
Dealership
Rajesh Agencies Lalsot Road 231754 Ramesh Kumar
Gupta
Rajech Automobile Lalsot Road 230854 Brijmohan Gupta
Khandelwal Engine Lalsot road 230290 D.P. Gupta
Co.
Vijaya Vargia Sales Man Ganj 230139 (O) Nawal vijay
Corp. 230406 ®
PALI
Dealership
Om Machinery Mandia Road 230006 Om Prakash Solanki
& Yogesh Solanki
95
KOTA
Dealership
Gobind Agencies Opp. Allahabad 2450181 Gulab chand
Bank, Shopping 2450181 (Fax)
Centre
Nimish Enterprises Near Payal Hotel, 2333808 (S) Rajendr Tyagi
Nayapura 2430468 (R)
Jainsons Enterprises Nayapura, Near 2340941 S.K. Jain & Hemant
Thana 2451041 (O) Jain
2380598 ®
94141-89091
(Mobile)
Sanjay Agro Nayapura, Near 2322823 Bhanwar Singh
Agencies & Delhi Petrol Pump 2323824
Machinery
Hindustan Nayapura 2322756 Jitendra Kumar
Machinery Mart Dhal
BARAN
Dealership
Manoj Traders Deendayal Park, 230957 Manoj Garg
Sahabad Road
Soni Enterprises Mangrol Road 234488 (O) Jagdish Soni
230232 ®
Bansal Machinery Deendayal Park 230302 Hemant Bansal &
Store 230267 Pramod Bansal
Ganesh Machinery Deendayal Park 230293 (O) Ganesh Lal
Store 231049 ®
232001 ®
Garg Traders Hospital road 231000 Anand Garg &
230372 Bharat Garg
BUNDI
Dealership
Rashmi Traders Lankagate Road 2442125 Bhagwan Totla
96
Sharma Agency Lankagate Road 2447716 Sohanlal Sharma
Sharma & Co. Lankagate Road 2443461 R.C. sharma
Jhanwar Traders Lankagate Tehsil Parmeshwar
Road Jhanwar
Mahajan Mill Store Lankagate road 2443145 Murli Manohar
Lakhotia &
Shelandra Lakhotia
JODHPUR
Dealership
Generators 170, Clock Tower 540085 (O) Lokesh Bhandari &
International 511291 ® Kamal Bhandari
Azad Engine Spares Inside Sojati Gate 2615327 (O) Purushottam
Centre 2622091 (O) Lalwani
2430291 ®
2626542 ®
Bhagwanti Inside Sojati Gate 2639217 (O) Yashwant
Machinery Store 2611807 (O) Bhagchandani
2513559 ®
2513559 ®
Mahesh Engineering Jalori Gate 2435755 Kamal Bhawnani
Centre 2643755
Shree Kishan Bros. Opp. Kankariya 640244, 245 L.N. Bhati
Bldg. Jalori Gate, 640244 (Fax)
Choupasani Road
BARMER
Dealership
Barmer Enterprises Subhash Chowk 222826, 221744 Inder Paliwal
Barmer Machinery Chohtan Road 20050 (P.P) Misrimal Jain &
Parts 224922 (R) Pawan Jain
DHORIMANNA
97
Dealership
B.R Chaudhary N.H-15 Sanchore 02986-221318 Bhiyaram
Machinery Store Road Chaudhary
Gopal Diesel Sanchore Road 221293,221603,221 Ramshwar Lal
Engines 046 Swami
Gehlot Machinery Sanchore Road 02986-221734 Ruparamji Gehlot
Ashapuri Traders Sanchore Road 221532 Khuman Singh
SANCHORE

Dealership
Barmer Machinery Raniwara Road, 222090 N.M. Jain &
Store Sanchore Narendra Gupta
G.M. Agencies Raniwara Road 222039, 222102 M.L Parmar
Gehlot Machinery Raniwara Road 222106 (O), Ruparam Gehlot &
Store 223048 (R) Mafatlal Parmar
ALWAR

Dealership
Laxmi Narain Station Road 2336186 K.K. Gupta
Narandra Kumar 0144-2337399
(Fax)
Agriculture 1,Tej Mandi Station 2337340, Subhash Joshi &
Associates Road 5100882, Rajnish Joshi
2700882
Khandelwal Krishi 2,Tej Mandi Station 2344581(O), Deepak Khandelwal
98
Kendra Road 2345752 (R) & Neeraj
Khandelwal
99
BIBLIOGRAPHY
 Marketing Management
- Philip Kotler
 Marketing Research
- G.C. Beri
 Statistics
- S.C. Gupta
100
“GAUGING THE SALES POTENTIAL OF DIESEL
ENGINE SETS IN RAJASTHAN WITH SPECIFIC
REFERENCE TO 15-40HP ENGINES”
PROJECT REPORT
2003
Submitted in partial fulfillment of the requirement

of
POST GRADUATE DIPLOMA IN MANAGEMENT

(2002-2004)
Submitted by:
RAMESH KUMAR
UNDER THE GUIDANCE OF:
INTERNAL GUIDE : Mr. SRIKANT KAPOOR
EXTERNAL GUIDE: Mr. RAMESH KINI
INSTITUTE OF MANAGEMENT EDUCATION

SAHIBABAD
101
CONTENTS
S.No. Particulars Page No.
1. Certificate 1
2. Acknowledgement 2
3. Synopsis 3
4. Introduction 4
5. Company Profile 5-15
6. Research Methodology 16
7. Sample Questionnaire 17-21
8. Phases in Growth of No. of Dealers 22-25
9. Market Share & Relative Competition in three segments
of Engine sale 26-29
10. Air Cooled Vs. Water Cooled 30
11. Availability of Dealers in different price situations 31-35
12. Top Dealers of Rajasthan 36-42
13. Competition of Brands & Brand Equity 43-52
14. Perceptions, Selling propositions & Brand USPs 53-55
15. Selling Strategies 56-57
16. Territorial Infringement 58-59
17. Future Perceptions 60
18. Warranty & Service Contracts 61-62
102
19. Financing of Engines 63
20. Analysis of Statements on Likert Scale 64-80
21. Gauging the Sales potential of 15-40HP engines in
Rajasthan 81-82
22. Customer Behaviour 83-84
23. Why Dealers are so important 85-86
24. Exploiting Customer’s behaviour to Boost sales
potential 87-88
25. Market Segment in 15-40HP Engines sales 89
26. Eicher Perspectives 90-91
27. Annexure 92-101
Calculation of Market Estimate 93-94
List of Dealers visited 95-101
28. Bibliography 102
103
INDEX OF TABLES
Table No. Description Page No.
1. Years old – Number of Dealers 22

2. Range – Number of Dealers 26
3. Range, Volume, % Share 27
4. Range, Market Share 28
5. Number of Dealers, Number of Customers,
Range of Engines 28
6. Competition in three segments 29
7. Air Cooled, Water Cooled 30
8. Price – Number of Dealers 31
9. Price – Available Number of Dealers 34
10. Competitors of Kirloskar 44
11. Competitors of Field Marshal 45
12. Competitors of Topland 46
13. Competitors of Eicher 47
14. Competitors of Usha 48
15. Competitors of Ashok Leyland 49
16. Competitors of Cummins 50
17. Competitors of Remaining Brands 51
18. Brand Power of Different Brands 52
19. Brand USPs 55
104
20. Selling Strategies 56
22. Response of Statement 1 65
31. Inference of Likert Rating 80
32. Estimated Sales (15-40 HP) 82
105
INDEX OF FIGURES
Figure No. Description Page No.
1. Dealers – Years old they are 23

2. Smoothened version of dealers – years
old they are 23
3. Cumulative Number of Dealers against
years old they are 24
4. Smoothened version of previous curve 24
5. Range of Engines – Number of Dealers 26
6. Range of Engines – Sales % 27
7. Air Cooled, Water Cooled 30
8. Price – Availability of Dealers 33
9. Smoothened version of
Price – Availability of Dealers 33
10. Price – Available Number of Dealers 35
11. Smoothened version of previous curve 35
12. Top Dealers of Jaipur 37
13. Competition given to Kirloskar 44
14. Competition given to Field Marshal 45
15. Competition given to Topland 46
16. Competition given to Eicher 47
17. Competition given to Usha 48
106
18. Competition given to Ashok Leyland 49
19. Competition given to Cummins 50
20. Competition given to Other Brands 51
21. Brand Power of different brands 52
22. Selling Strategies 56
23. Extent of Infringement 58
25. Response of Statement-1 65
Response of Statement-8 77
33. Market Share of different Regions in 15-40HP
Engine Sales 82
107

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CERTIFICATE

This is to certify that RAMESH KUMAR, PGDM (Second Year) of Institute of

Date: (RAMESH KINI)

 Market segments in engine sale were identified.

 Customer behaviour in purchase of engine gauged.

 Warranty / service policy of different companies are examined.

 Relative competition ratio among 3 segments of engine sales viz.

 Extent of territorial infringement and several policies to combat infringement viz.

 In sufficient availability of finance for purchase of engines from various banks.

“Gauging the sales potential of 15-40HP diesel engine sets in Rajasthan”, is a

Committed to providing high quality products, Eicher invests significantly in

Area (sq.Annual Production

• Wide range of tractors, from 61 HP to 24 HP offering the best value for

• Product range also includes engines in the 22 HP to 32 HP and gensets in

In India, Eicher Motors has consistently outperformed the industry in terms of

THE EML ADVANTAGE

• Spiral and Hypoid Gears (Crown Wheel and Pinion)

Royal Enfield - revving up

Maps & Travel Guides

EICHER ENGINEERING SOLUTIONS

This project work is based on response of a questionnaire which included a variety of

Jodhpur Central Cooperative Bank

1.For how many years you are in this business

a)0-14HP b)15-40HP c)>40HP

a)0-14HP b)15-40HP c)>40HP

Vol . vol . vol .

4.Which type of engines are available with you in this range.

Rs--------------- RS--------------- Rs---------------

If yes, then please name them,

7.1Please rank in order the name of competitors in your territory.

7.3 why do people buy the No. 1 brand

10.Please , explain how do you perceive future of your product in market.

(_) (_) (_) (_) (_)

2) People ask for most advertised/publicized / visible models

(_) (_) (_) (_) (_)

3)People buy because of price rather than anything else.

(_) (_) (_) (_) (_)

4)Customers come with predetermined model and brand to buy.

(_) (_) (_) (_) (_)

5)You most of the times change the decision of the customers.

(_) (_) (_) (_) (_)

(_) (_) (_) (_) (_)

(_) (_) (_) (_) (_)

(_) (_) (_) (_) (_)

(_) (_) (_) (_) (_)

Years old No. of Dealers Cumulative No. of Dealers

Smoothened version of the above drawn curve.

Smoothened version of the above drawn curve.

 One is the phase of fast growth.

Range of engines in HP No. of Dealers %of Dealers

Range of engines in HP Total Volume of sales % Share

Total Volume of sales

The above scenario can be depicted like this.

0-14 HP 15-40 HP >40 HP

Competition is directly proportional to no. of dealers,

(K= Proportionality constant)

Hence Dealer Customer ratio in each case is

0-14 HP 15-40HP >40 HP

Hence relative competition in the three segments is

Hence the rule for line extension can be shown as.

0-14 HP 15-40 HP >40 HP

While it is advisable to extend in >40 HP engines area. It is twice so in 0-14 HP

AIR COOLED vs WATER COOLED

No. of Dealers No. of Dealers Both Air cooled Water