GSMC 2014

Global Summit on
Management Cases

SONALIKA ROTAVATOR THE ROAD AHEAD*

ABSTRACT
Agriculture continues to be the backbone of the economy of the Punjab State also known as
Food Basket of the country. The future growth of the sector and state will largely depend
upon public policies supported by the developments and use of technology including farm
machinery. To facilitate persistence of green revolution and support the Indian farmers with
mechanization technology, Sonalika Group (Sonalika) a renowned name and one of the top
three tractor selling companies in India, established Sonalika Agro Industries Corporation to
diversify into farm equipment manufacturing.
In year 2008, Sonalika extended the brand name to rotavators and today has a wide range of
products in terms of price and sizes of the rotavators. The sale of rotavator depends heavily on
external environment factors such as season, government subsidies, agricultural scenario, migrant
labors, etc.
As a part of Sonalikas expansion plan and also due to intense competition from other established
players recently the company decided to extend its capacity of rotavator production and is in
the process of setting up of a new plant. The case study focuses on the expansion and diversification
strategies of Sonalika and will also highlight the challenges of rural Marketing in terms of 4As
(Awareness, Availability, Acceptability & Affordability).
The case study has been prepared with the help of extensive interviewing and observation of
officials of Sonalika, Agricultural department officials, Rotavator dealers and Farmers.

Pedagogical Objectives

To assess the effective use of 4As of rural marketing to penetrate in rural market

To discuss Sonalikas product diversification strategy for competitive advantage in agricultural

equipment market

To discuss the new product development and brand extension strategies adopted by Sonalika

Case Positioning and Setting

The case study can be effectively taught to Post Graduate courses or executives at levels such as
Introductory Marketing, Rural Marketing and Strategic Marketing.
* GSMC 2014, IIM Raipur

www.etcases.com