You are on page 1of 10

1|Page

Final Report
RURAL MARKETING
Company: Mahindra Agri Business

By
Group 16
Section A
MAHENDRA SINGH TARAGI
SHAKTI PRASAD BADAJENA
ARUN PRAKASH M
NISWARTH SINHA

2015PGP192
2015PGP335
2015PGP056
2012IPM070

Under the supervision of


Prof. S Bhavani Shankar
Indian Institute of Management Indore
November 2016

2|Page

INTRODUCTION
MAHINDRA & MAHINDRA LIMITED
M&M drives major economic growth by enjoying a domestic leadership position in key
industries such as tractors, utility vehicles, information technology and vacation ownership.
The company also has its presence within the automotive industry, agribusiness, aerospace,
components, consulting services, defense, energy, financial services, industrial equipment,
logistics, real estate, retail, steel and two wheelers.
A USD 15.4 billion multinational group based in Mumbai, India, Mahindra employs more
than 144,000 people in over 100 countries.
M&M remarkable achievement includes being featured on the Forbes Global 2000 list in
2011 Dun & Bradstreet also ranked Mahindra at No. 1 in the automobile sector in its list of
India's Top 500 Companies. In 2010, Mahindra was featured in the Credit Suisse Great
Brands of Tomorrow.
FARM EQUIPMENT SECTOR, A STORY OF SUSTAINED LEADERSHIP
They own the world's top tractor brand by volumes, and with almost 30 year old domestic
market leadership, they enjoy the loyalty of over 22 Lakhs satisfied customers. Their tractors
are sold across 35 countries, with 14 manufacturing plants in India, USA, China and
Australia.
The product ranges from 15HP to 125HP, making their tractors capable to meet the diverse
needs of farmers across geographies. The tractors bring agri solutions that go beyond just
mechanization.
Mahindra has been impacting farmer's lives by closely working with them. A deep
understanding of farming practices provide them with an opportunity to offer products &
services that drives prosperity amongst farmers.
SAMRIDDHI BY MAHINDRA, DELIVERING FARM TECH PROSPERITY
India is best known for being an agrarian economy with 70% of the Indian population
residing in the rural heartland depending mainly on agriculture.
It still employs 65% of rural workforce in agri & agri related jobs. India is the largest
producer of milk, fruits, cashew nuts, coconuts and tea in the world. Using an arable land of
184 million hectors, Indian produces 204 Million tons of food grains, which is third largest in
the
world.
India
is
the
second
largest
producer
of
wheat,
vegetables (150 Million tons), sugar and fish and the third largest producer of tobacco and
rice.
Agriculture has always been a backbone of Indian economy. Still the contribution of Indian
Agricultural to the overall Gross Domestic Product (GDP) of the country has been on the
decrease and has fallen from 50% in 1947 to less than 15 percent in 2011-12
The key factors contributing to this decline are continued usage of traditional low technology
farming methods, low quality inputs like seeds, fertilizers etc. and decrease in soil quality due
to improper nourishment.

3|Page

Mahindra being closely associated with agriculture sector since last 60 years understand the
situation quite well & appreciate the need for better farming products & solutions. As an
efficient, trustworthy, value for money tractor brand; they have been working with 22 lakh
farmers to enhance their farm productivity. This association has been carried down through
generations with the ownership of Mahindra Tractor.
They being closely associated with agriculture sector since last 60 years understand the
situation quite well & appreciate the need for better farming products & solutions. As an
efficient, trustworthy, value for money tractor brand; they have been working with 22 lakh
farmers to enhance their farm productivity. This association has been carried down through
generations with the ownership of Mahindra Tractor.
They are poised to impact the farmer lives positively with a network that covers entire
country. With an objective to usher in enhanced productivity in Indian agriculture and drive
prosperity in farmer's life, they are enlarging our value promise to consumers.
The brand 'Mahindra Tractors' has been transforming from a leading, trustworthy, value for
money heritage 'Tractor' brand into an end to end 'Agri Products & Solutions' brand focused
on delivering 'Farm Tech Prosperity'
The need was to provide a complete end to end Agri solutions right from mechanized farming
techniques i.e. Tractor & mechanization to the quality seeds, crop protection, irrigation
solutions, agri knowledge dissemination & complete agronomy support in order to deliver
"Samriddhi".
As a first step towards this, a soil and irrigation water testing laboratory was established in
F07. Mobile soil testing laboratories were set up in suicide prone areas like Vidharbha in
Maharashtra, Coastal Andhra in Andhra Pradesh and backward states like Uttar Pradesh.
After realizing the need for a direct interface with the farmers, Mahindra started involving it's
channel partners to set to 155 Samriddhi Centers across India to provide all agri inputs such
as tractors, implements, seeds, crop care products, irrigation solutions & agri knowledge
dissemination services like Soil Testing, Agri Counselling, Result and Method
Demonstration, Agri Institution's Visit and Custom Hiring for farm implements for increased
productivity.
Mahindra & Mahindra also started working closely towards grape farmers across Nasik &
Sangli districts of Maharashtra to grow quality grapes which qualify European Food Safety
Standards making itself as one of the leading exporters from India. Subsequently, Mahindra
started rewarding & recognizing the farmers at the national level who has been able to drive
the positive change in their farming techniques and shown the rise behaviour in increasing
their productivity through "Mahindra Samriddhi India Agri Awards". MSIAA in its third year
of operation has rewarded 60 farmers across India for their breakthrough contribution in
agriculture.

4|Page

OFFERINGS OF THE COMPANY


1. Crop Care Solution:
Mahindra in its endeavor to deliver farmtech prosperity has been continuously upgrading its
product portfolio and bringing products which are relatively safe, easily degradable and safe
for the environment.
Today they have 21 brands for the insecticides category, 10 brands in the fungicide category,
11 brands in the herbicide category, 7 products in the biological category and 2 products
within the nutrient segment.
Their products are manufactured under strictest of quality, and are value for money to the
farmers. Their development team carries out regular evaluation of the product to evaluate the
result in actual field conditions. Mahindra take care to take up demonstration and solve
farmers problem through careful analysis of the crop specific environment, through their
highly qualified and experienced sales and development team.
It has been found that in most of the cases the farmers using their products have been able to
increase their yield or save total crop failure through judicious use of their chemical based
crop protection, advised by the technical team.
There are numerous examples where their people and products have made an enormous
difference in the lives of the customer, through the three pillars of Rise which they stand for
in Mahindra Accepting no limit, Alternative thinking and Driving positive change.
Today they can proudly claim that they are following right use of technology to maximize the
returns from the field. In this quest of excellence they are strongly driven value based
company which has a high rating on the sustainability front where their concern on people,
planet and profit gets manifested through their range of products, services and knowledge.
2. Mahindra Seeds
Samriddhi Seeds by Mahindra offers hybrids, which help improve farmer productivity &
prosperity to the Indian farmer a wide range of field and vegetable seeds, mainly Hybrid
varieties.
The portfolio includes seeds for Corn, Bajra, Paddy, Sunflower & Mustard in field crops.
The vegetable seeds portfolio includes Tomato, Hot Pepper, Melons, Gourds, Cabbage,
Corriander & Okra.
Consistently superior product performance is ensured through a robust system of quality
certification.
3. Samriddhi Center
With a network of around 350 distributors & growing, Mahindra Seeds is available to farmers
in the states of UP, Bihar, Rajasthan, Punjab, Maharashtra, Karnataka, Andhra Pradesh &
Tamil Nadu.

5|Page
They do the following servies:
Soil Testing
Agri Counseling
Agri Clinics
Agri Institution Visit
Advisory Services
Mechanized Solutions
Irrigation Solutions
4. Mahindra EPC
EPC is a Mahindra group company, popularly known as EPC Irrigation. And is a pioneer of
micro-irrigation in India.
Mahindra and Mahindra Ltd. (M&M) has acquired majority stake in EPC Industri Ltd
through preferential issuance of equity shares. This transaction has enabled M&M to enter
Micro-Irrigation Sector.
Started in 1986 with the initial French Technology support, EPC had developed the capability
to design and develop the irrigation products of international standard, satisfying every need
of Indian Farmers.
EPC provides complete solution for agriculture with a focus on Micro-Irrigation, Pumps &
inter-related requirements of fertigation & agronomic support. EPC is also planning to enter
another allied business activities in future. The company is registered in all major states under
subsidy program in India. EPC has a strong & widely spread network of large number of
channel partners & is supported by offices at strategic locations.
EPC has also launched first of its kind one stop shop for agro products & solutions (Agri
Showroom) in Buldhana district of Maharashtra, wherein farmers can find all agri input
products & services under a single roof.

5. Samriddhi Potato Tubers


Few quality seeds producers within the organized sector has made bringing substantial
benefits to farmers, possible. Our commitment is to supply the benefit of improved yield
along with stable distribution and buying relationship to farmers.

6|Page

Marketing Mix
In a broader sense, the marketing of any product by a company must have a right marketing
mix which can be ensured only if the product gets placed at the right place along with an
appropriate price and promotion.
Marketing mix comprises 4 Ps. The 4 Cs relating to customers are taken care by 4Ps.
4Ps:

Product
Price
Place
Promotion

4Cs:

Value to customer
Solution to Customer
Information to Customer
Access to Customer
Product:

The company has repositioned all its dealerships as Mahindra Samriddhi centres.

Besides selling tractors and farming implements, these centres will also present
relevant information to farmers to keep them abreast of world-class solutions.

The Samriddhi Centres offer farmers a wide range of agri-related services under
one roof. These include insurance products, sales and service of tractors and
implements, productivity demo farms, soil and water testing facilities, knowledge
updates on the weather, crops, eradication of pests and diseases, mandi prices,
etc.

A pioneering customer centric initiative for the farming community.

Price:

The pricing policy of Mahindra and Mahindra is dependent upon various factors
that determine the sales price of the vehicles when it comes to the automobile
sales.

The company follows the policy of both the premium pricing and the flexible
pricing to grasp the maximum consumer value.

7|Page

The rates of all its products are very competitive, as it has taken a lot of market
research as well as the cost factors and the competitors rates to arrive at a
particular sales price.

In order to cater to the whims of every section of the masses they have launched
products with different prices that are suitable for different sections. These
noticeable changes are consciously taken decisions with appropriate prices to
balance their portfolio and garner more customers.

Place:

In August 2008, the first Samriddhi Centre in Gujarat was inaugurated in


Jamnagar. At present, there are a total of 30 Samriddhi Centres across India.

It has opened various showrooms all over the country that have experienced and
qualified salesperson with a distinctive market knowledge. The offices are wellfurnished and spare parts, equipment, services are available to the customers at
one go.

A promotional event MAHINDRA SAMRIDDHI SAMMAN, the First ever Kisan No.
1 - Mahindra Samriddhi Samman was held in Jamnagar, Gujarat on May 2009.

Promotion:

Each Samriddhi Centre identifies 25 farmers in the region where it is located,


after taking into account the farmers productivity in the last Rabi season. The 25
selected farmers become members of the Mahindra Samriddhi Club, which
entitles them to a discount of 10 per cent on all spares purchased from any of
the Mahindra Samriddhi Centres.

It has used the visual media and the print media fully so that the people become
aware of its potential and products. Advertisements featuring attractive models
with its products have been handled gracefully so that Mahindra and Mahindra
becomes a household name.

Under additional activities for sales promotion, it has organized exhibition where
catalogues are distributed and contests are held.

The event MAHINDRA SAMRIDDHI SAMMAN seeked to felicitate farmers who


work together with Mahindra's Samriddhi centers to achieve an increase in
productivity through the use of innovative farming technologies.
Over 1,000 farmers attended the function. The Kisan No.1 - Mahindra
Samriddhi Samman was initially held at 10 Samriddhi Centres all across India.

8|Page

Problems & Suggestions


Mahindra can improve their product mix to rope in even more customers. Due to growth in
rural population, the land owned by ancestors families is also decreasing. Just a generation
back these undivided families could buy tractors or at least have a few pairs of bullocks to
do farming in their land. But after division of the land, the new generation later cannot
afford to buy even a pair of bullocks or a tractor.
These families make use of tractors available on rent to practice farming on their lands.
There is also this problem of finding labour to work in fields. They are not as easily available
and also charge high which was very unlikely in the past. In some rural areas where Naxalite
movement is strong, land has not been farmed for years because labourers are not willing to
work. Some agriculture work like sowing paddy is so intensive that these crops cannot be
grown if labourers are not available.
There is a huge opportunity for Mahindra in these type of areas for farm mechanization to
design equipment that can practically work for all farming work like sowing and harvesting,
which was being done manually. They can create small equipment and make them available
on rent or lease for certain periods of time at low prices. This will not burn a hole in the
pockets of the farmers and will allow the farmers and their families to do all the farming
works by themselves.
There is also a Lack of power physical communication facilities in majority of India. Nearly 50
percent of the villages in India do not have all weather roads, physical communication to the
villages is highly expensive. Especially during the 4 months of monsoon, these villages
become complete inaccessible. Theres inadequate media coverage for ruralcommunication.
Though a large number of rural families own radio and TV sets and there are also
community radio and TV sets. These have been used to diffuse agricultural technology to
rural areas. However, the coverage relating to marketing is inadequate. A large part of the
rural population is still illiterate and needs demonstrations to learn about new products. The
above mentioned problems make it very hard for Mahindra to reach a lot of places and
consumers that they could have reached.
What Mahindra can do is that they can reach some of these places through pre-existing
cooperatives if they exist in the villages. This will reduce their costs by a lot. A number of
cooperatives and NGOs work for rural welfare in areas which are not easily accessible by
both the companies and the government. They can collaborate with such NGOs to market
their products and give demonstrations to the farmers in such places.

9|Page

Inefficiency in the wholesale markets result in a long chain of intermediaries, multiple


handling, loss of quality and increase in the gap between the producer and consumer prices.
A large number of small retailers, each handling small quantities, create high overheads
leading to a high marketing margin on the produce.
The purpose of regulation of agricultural markets was to protect farmers from the
exploitation of intermediaries and traders and also to ensure better prices and timely
payment for the produce. However, due to lack of development of an appropriate market
infrastructure in tandem with changes in production, intermediation has tended to continue
resulting in post-harvest losses at every stage thereby reducing the farmers share in
consumers price.
There is a strong need for providing an appropriate backward and forward integration to
producers for ensuring primary value additions to the produce and enhance quality.
Mahindra can provide outlets to the farmers where they can go and sell their produce at fair
prices.
This will make sure that the middle men stay completely out of the picture and will ensure
that the farmers are not cheated in any way.
The following are also a few areas where Mahindra can invest and improve their product
mix for the rural customers:
Production of high-quality planting material, including use of tissue culture methods of
micro-propagation
Nurseries, including hardening nurseries
Organic farming
Production of microbial cultures and vermicomposting
Fruit and vegetable processing, including dehydration, canning, aseptic packaging,
processing of underutilized fruits, and processing for other products like grape raisin, osmo
air-dried fruits, fruit toffee, bleached dry ginger and spices powders
Processing of maize for starch and feed through improved mini/ small mills and dry milling
plants
Processing of millets for various purposes, including malt from finger millets and RTE
(Ready-to-Eat) products
Processing of sugarcane for various jaggery products like spiced jaggery, powdered
jaggery, and jaggery cubes
Processing of herbal and medicinal plants
Cool chain infrastructure, including cold stores
Storage and warehousing

10 | P a g e
Specialized transport services
Packaging infrastructure, including pack houses
Procurement through contract arrangements
Supply chain management
Capacity building, including human resource development in agribusiness.
Agriculture is an important sector in contributing more revenue to the Indian Economy.
With the greater importance agriculturist should have good marketing facilities as economy
adopt new policies. Challenges and opportunities that the global markets offer in the
liberalized trade regime are also to be addressed.
For the farming community to benefit from the new global market access opportunities, the
internal agricultural marketing system in the country needs to be integrated and
strengthened. There is a need to expand all the services that will develop agricultural
marketing, relating to marketing system improvement, strengthening of marketing
infrastructure, investment needs, possible sources of funds including that from the private
sector, improvement in marketing information system, human resource development in
agricultural marketing, and measures needed for promotion of exports.
Mahindra with their Samriddhi centres and all of their offerings for the farmers are making a
huge difference and making an effort to make sure that many of these problems are being
solved.

**************************THANK YOU*****************************