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Introduction:-

M&M motors
Mahindra & Mahindra Limited is part of the Indian Industrial Conglomerate Mahindra
Group based in Mumbai. The company was set up in 1945 inLudhiana as Mahindra &
Mohammed by brothers K.C. Mahindra and J.C. Mahindra along with Malik Ghulam
Mohammed.[3] After India gained independence and Pakistan was formed; Malik Ghulam
Mohammed moved to Pakistan where he became the nation's firstfinance minister. Now, with the
Mahindra brothers as the whole sole of the company, its name was changed to Mahindra &
Mahindra in 1948.
M&M is one of the leading tractor brands in the world. It is also the largest manufacturer of
tractors in India [15] with sustained market leadership of over 25 years. It designs, develops,
manufactures and markets tractors as well as farm implements. Mahindra Tractors(China) Co.
Ltd. manufactures tractors for the growing Chinese market and is a hub for tractor exports to the
USA and other nations. M&M has a 100% subsidiary, Mahindra USA, which assembles products
for the American market.
Products

? Mahindra Bolero
? Mahindra Bolero Camper
? Mahindra Bolero Inspira
? Mahindra Bolero Stinger Concept
? Mahindra Scorpio
? Mahindra Scorpio Getaway
? Mahindra Scorpio First
? Mahindra Xylo
? Mahindra Legend
? Mahindra MM550 XD
? Mahindra-Renault a
 (in cooperation with Renault)[31]
? Mahindra Axe
? Mahindra Major
? Mahindra Souvenir Concept
? Mahindra Commander
? Mahindra DI
? Mahindra Cab Chassis[32]
Y
ain how the characteristics of rura buyers infuence the
urchase of
roducts assigned
to you.
Mahindra motors makes tracters,ma and various agricuture equi
ments.

These product Mahindra most focused in rural areas also bolero or maxx for loading or as use as
a carrier or transportation.
„irsty we cassify the customers in rura areas:-

Cassification of rura consumers

The rural consumers are classified into the following groups based on their economic status:

· The Affuent Grou
: They are cash rich farmers and a very few in number. They have
affordability but not form a demand base large enough for marketing firms to depend on. Wheat
farmers in Punjab and rice merchants of Andhra Pradesh fall in this group.

· The Midde Cass: This is one of the largest segments for manufactured goods and is fast
expanding. Farmers cultivating sugar cane in UP and Karnataka fall in this category.

· The Poor: This constitutes a huge segment. Purchasing power is less, but strength is more.
They receive the grants from government and reap the benefits of many such schemes and may
move towards the middleclass. The farmers of Bihar and Orissa fall under this category

Rura Buyers behavior in
urchase decision of Mahindra motors:

³The spirit of India lives in its villages´ has been rightly said by Mahatma Gandhi. Two-third of
India¶s consumers live in rural areas and almost half of the national income is generated here.
Our country is classified around 450 districts and approximately 6,40,000 villages, which can be
sorted in different parameters such as, literacy levels, accessibility, income levels, penetration,
distances from nearest towns, etc.
According to the NCAER study, there are twice as many µlower middle income¶ households in
rural areas as in the urban areas.

‡? At the highest income level there are 2.3 million urban households as against 1.6 million
household in rural areas.
‡? Middle and high-income households in rural India are expected to grow from 80 million to
111 million by 2007.
‡? In urban India, the middle and high-income households is expected to grow from 46 million
to 59 million by 2007. Thus, the absolute size of rural India is expected to be double that of
urban India.
If we talk about the general perspective the customer¶s decision mainly depend upon various
factors. It is very difficult being a marketer to position you as a Mahindra motors brand because
of the unawareness of the brand in the rural market.
The Conce
t of Rura Marketing for Mahindra -
V? Rural customers have always have had a fascination for automobiles, particularly utility
vehicles (UVs). The UVs have been sought either for personal use or for commercial
purpose (making the vehicle available on hire to others) and in some cases both.

‘ome of the key insights or other reevant facts that are to be noted here are:
V? The rural consumer usually travels in a group. He is used to wide open spaces. Therefore,
he seeks the same in his vehicle. Also seeks space for luggage.
V? Rural consumer needs a vehicle that is rough and rugged, yet comfortable.
V? Personal vehicles are also hired out when ³not being used´ or ³in demand´. Incidence of
hiring out of vehicles is greater than ownership.
V? City and urban is inspirational. The villager shouldn¶t look like he has come from one.
Optimization is a way of life but image and show is very critical to the villager.

The idea behind the conce
t:

Analyzing these insights, the rural needs were found and the Mahindra MAXX was
launched as a product with more space; a vehicle that is more rugged and tough; least
cost of ownership, more value and a more aspirational image. Quite clearly, the
leveragable difference, which stands out, is ³more´ or as relevant to the rural customer is
Zyaada. And Zyaada = MaXX.
This was the core concept in the development of MaXX, and Mahindra & Mahindra
launched the product in the commercial segment in February 2001. MaXX leveraged the
benefit of Zyaada space, comfort and economy and the brand created a relatable
aspirational value.

What did it convey?

The MaXX brand promise was defined on two planks ± rational and emotional terms.

V? The rational plank was that the vehicle was big on size, which meant more space. The
MaXX length and width was more than that of competing vehicles. The engine is high on
fuel economy and low on maintenance, fulfilling the need for more value. The MaXX
fuel consumption is 14-15 kmpl compared with the competitors¶ 10-12 kmpl.

V? On the emotional plank, MaXX positioned it as a travel companion

Advertisement.
Characteristics of the rura consumer which affects their
urchase behavior:

V? Peo
e in rura areas have
oor job o

ortunities than urban: Being the manager of
Mahindra motors we should take this thing into consideration and I think we should go
for that class of rural areas who either are employed or having some other source of
income like land farming on large scale
V? Re understands symbos and coors better, and ooks for endorsement by oca
eaders or icons: We know that rural people buying process is mainly based on opinion
leaders so being Mahindra motors they should focus on those opinion leaders to influence
the purchase behavior of rural people. Moreover rural people are mainly bothered of
symbols and colors so in order to position Mahindra motors in the minds of rural people
to have the distinct image of their brand.

V? The rura consumer is very conscious about getting vaue for money: Pricing plays a
very important role in the buying process of rural people. They want value for their
money so Mahindra motors should take pricing into consideration and they should
revising their pricing strategy in the rural areas.

V? The rura consumers are marked by a conservative and tradition-bound ifestye:

We know that rural people are not very fashion conscious so positioning plays a very
important role in this matter. I think more than TV hoardings play a good role in the
communication of the brand.?
?
V? Re has a very high invovement in any
roduct
urchased: As I said earlier that rural
people want value for their money and they take a lot of time in the purchase of any
product so they the human resource in rural areas plays a very important role. Rural
people are emotional also so they need to be attacked emotionally.

V? Rura ife is generay ess e citing than urban ife: Very rightly said that rural people
are not very exciting so in order to create excitement in their minds do something so that
feel excitement in their lives. Mahindra motors are meant for excitement so focus on that
only.

Consumer Behavior in Rura Areas: Purchase-decision processes and preferences also show
certain characteristics that implication for marketers. Exhibitions and road shows act as some of
the key triggers for information-search behavior. Opinion leaders and people who are perceived
to be knowledgeable play an important role as information providers and advisors. Word of
mouth has more significance in purchase decisions of rural consumers. Family members,
relatives, and friends are consulted before making purchase decisions of higher-value products.
Compared to the urban counterparts, rural consumers have different interpretations of colors,
symbols, and social activities. Rural consumers show a preference for bold, primary colors; red
color connotes happiness and auspiciousness, and green color prosperity. Ownership of a large
tractor, large house, telephone and other higher-value consumer durables, and education of
children in cities are considered as status symbols. However, as the exposure to mass media and
information technology is increasing, rural consumers are becoming more informed about
products and services, and their dependence on traditional reference groups is gradually waning.
Rural consumers also tend to be more loyal as brand switching has greater perceived risk.
For Mahindra motors it will not be implemented as such because of less brand awareness
in the rural areas but somehow these factors are very important in the brand positioning of
Mahindra motors in rural areas.

Characteristics of rura market:-

1.? Large number of consumers:

According to the 1991 census, the rural population constitutes about 74% of the total
population in our country. While the population went from 55 crores (1971) to 85 crores (1991),
There are states like U.P, M.P, Bihar, Rajasthan and Orissa where rural population varies from
80 to 90 percent.
2.? Vccu
ation
attern:
Land is the major source of income for about 77% of the population. Others are engaged
in business (10%), non-agriculture labour (9%), salary earners (2%) and not gainfully employed
(2%)..
3.? Literacy eve:
It has been estimated that the rural literacy level is 36% compared to 62% in urban areas.
Literacy is one of the important factors in developing awareness and knowledge about
technological changes. As many as 16 major languages are spoken adding to the complexities in
rural communication.
4.? Low standard of iving:
Low income, low purchasing power, overall social and economic backwardness lead to
low standard of living. In general a rural consumer spends less on non-food items.
5.? Media reach:
The media reach in rural household is low. Statistics indicates that the reach of Print
media is 10%, followed by TV 31%, Radio 32% and Cinema 36%. Therefore the marketer has to
consider rural specific promotion media and methods to reach the villagers.
6.? Communication faciities:
About 20% of the six lakh villages are without telephone facility even today. This
includes Rajasthan (17600 villages), MP (14200 villages), Maharashtra (12000 villages), Gujarat
(7000 villages), and AP, Assam, Orissa about 6000 villages each. (Source: The Indian Express
dated 30.3.2003).

7.? Trans
ortation faciities:

 About 50% of the markets are not connected by road. Most of the roads are kachha and
become unusable during rainy season. Many farmers use bullock cart for transporting their
produce from village to the market. This means of transport is time consuming.
8.? @istance:
Village nearer to towns has elements of the urban life. Interior villages are more
traditional.

Promotion strategies
Through the rural markets offer big attractions to the marketers, one of the most
important questions frequently asked is ³How do we reach the large rural population through
different media and methods?

„orma media
V? Newspapers and magazines:
V? Television:
V? Radio:
V? Cinema:
V? Outdoor advertisements:
V? Point of purchase:
V? Direct mail advertising:
V? Wall paintings:
V? Tree boards:

? InformaRura s
ecific media

V? Farm-to-Farm/House-to-House
V? Group meeting
V? Opinion leaders
V? The Melas
V? The Haats
V? Audio Visual Publicity Vans (AVP Vans)
V? Product display contests
V? Field demonstration
V? Field days

@istribution Channe ‘trategies

The channel members consist of wholesalers and retailers who are middlemen in
distribution and they perform all marketing functions. These middlemen facilitate the process of
exchange of goods; create time, place and possession utilities. Therefore channels are useful to
producers as well as consumers. Even if a company has a product that meets the requirements of
 rural consumers, it will succeed only if it is made available at the right place as and when
required by the consumer.

V? @irect saes to consumers:

V? Manufacturer-whoesaer-retaier-consumer:
V? Manufacturer-retaier-utimate consumer:

b) ‘tudy the
urchase
rocess with res
ect to assigned
roduct.

M&M Motors
BUYING @YCI‘IVN PRVCY‘‘.
The BDP follows a logical sequence of five steps
ã? Need Recognition
ã? Information search
ã? Evaluation of alternatives
ã? Purchase
ã? Decision
ã? Post-purchase behaviour

Need Recognition:
When the buyer recognizes a gap between his desired state and the actual state, buying process
starts. Such recognition maybe caused by stimuli either internal (self) or external (by
environment or marketer). At this stage, marketer should help consumers identify their current
and future problems and felt or latent needs. To do this, marketers have to research on consumer
problems and needs. In case of Mahindra motors they should try to create a stimulus in the rural
buyers so that they can understand them well.Customers are more demanding because there is a
need of more production in less time, numbers of bulls for ploughing is decreasing and they can
use the tractor for transportation purpose also. Good financial support for agricultural
equipments.

Information search:
Generally,a rural peoples get information through they directly visit to the agencies and also get
suggestion for their friends. Consumers try to find information pertaining to their want satisfying
products to make the right choices. The amount of information required depends upon:
ã? Type of the product : In our case product is an affluent one so Mahindra motors need to make the
marketing strategies accordingly. They should take care of the target market aswell.
ã? Nature of the product :In this case Mahindra motors is a complex and hi-tech brand
ã? Availability of sources --- the consumer may obtain information from one or more of the
following sources
ã? Personal : family, friends, neighbors
ã? Commercial :advertising, sale people, displays
ã? Public : TV, radio, and print media
ã? Experiential :handling, examining, using the product Search expands with the availability of
time. Mahindra motors have to take into cognizance this aspect and design offers to induce
immediate buying. Keeping in mind the information needs of consumers, they should design
communication programmes to reach the consumers and provide adequate and relevant
information.

Ëc) Yvauation of aternatives: The evaluation process may be done more carefully and
logically in Mahindra motors¶s cases, for example,tracters maxx pick up. In case of convenience
goods, which are purchased for one-shot consumption, the evaluation may be very less.
Occasionally, it maybe impulse buying too. In this case a rural people indentify the various
alternatives of the tracters and choose a best out of that like:-
ã? Eicher
ã? Mahindera
ã? Ford
ã? Farmatrac
ã? And various others.
The buyers get decision according to our need.

(d) Purchase decision: All the existing brands in the market make a total set. Through
information search consumer will become aware of some brands in the total set. Awareness set
consists for brands which the consumer is aware of the brands, which meet initial, buying
criteria, will be considered for further evaluation. They make up the consideration set. Through
application of final criteria, the consumer evolves his choice set. All the brands in this set are
acceptable to the consumer. However, the final choice will be made in favour of one brand. The
choice is dependent upon factors influencing the mind of consumer at this final state
(e) Post-
urchase behaviour: In Mahindra motors¶s case a buyer feels satisfied when the
perceived product performance is close to his/her expectations, if it exceeds expectation, the
customer is delighted. If it falls short of expectations, the customer is disappointed.

Concusion
Consumer is the basic foundation of every business. What consumer sees, thinks
prefers and buys is of great importance to marketers to fine tune their marketing offers and
achieve high level of consumer acceptance and satisfaction. The emergence of rural market as a
viable proposition has sparked a new interest among marketers to explore and understand them.
Bibiogra
hy
www.mahindramotors.com
www.ncaer.com
http://www.articlesbase.com/marketing-articles/consumer-behaviour-in-rural-marketing-
897655.html
http://www.ehow.com/how-does_5463332_purchasing-process-rural-consumers.html
http://www.scribd.com/doc/35656778/Rural-Marketing
http://www.citeman.com/2777-buying-behavior-of-rural-consumers/
http://dspace.iimk.ac.in/bitstream/2259/426/1/RM53.pdf
http://consumereducation.in/consumer_market_eng.pdf

Books
R .krishnamoorthy himaya
ubication house edition 2008
R.v Badi ,N.v Badi himaya
ubishing house edition 2007