Marketing Management

Prof. Joffi Thomas.

Rhea Pradhan
PGP/23/412

Q1) Evaluate the attractiveness of different market segments for Vanraj.

Vanraj is a mini-tractor priced at about 0.19 million rupees. The market can be segmented on basis of
various criteria:

A) Type of Consumers

On basis of consumers, the market for tractor purchase is divided into four segments - Small and
Marginal Farmers; Large Farmers; Industries; Horticulture.

1) Small and Marginal Farmers –

These farmers currently use bullocks for tending to the farm and other transportation purposes. The
level of mechanization is relatively low, as the farmers prefer traditional methods.

The number of farmers in this segment is very large, and there is no major player currently curating to
this segment, thus making it an open field to conquer especially for a new, small scale industry to begin.

The lands owned by these farmers are also smaller, wherein the features possessed by the Vanraj could
be extremely useful. To elaborate, the Vanraj has an adjustable wheelbase, changeable gears, and can
reach corners inaccessible to big tractors.

2) Large Farmers –

Though they are smaller in number, they already have a higher level of farm mechanization. These
farmers have the money to buy tractors as well as the need to cover larger lands in shorter times with
ease. Major players of the tractor industry focus on this segment, thus the competition here is already
high. However, the features of Vanraj could be beneficial to these farmers, as it has convertible feature
for cash crops, better accessibility (can reach corners due to adjustable wheelbase), has a tested power
take off point so the engine can be used for other purposes, etc..

3) Industries –

Industries majorly need tractors due to their capacity to carry larger loads and maintain stability. In
order to enter this segment, modifications would need to be made to the tractor. It could then be easily
used in material handling operations. However, for a small scale industry, it would be better to focus on
its primary uses in farming than modified uses.

4) Horticulture –

Horticulture deals with the gardening in domestic or commercial spaces. It involves cultivation of fruits
and vegetables as well as ornamental plants and flowers.
Marketing Management
Prof. Joffi Thomas.

Rhea Pradhan
PGP/23/412
With an increase in area under horticulture farming, especially in the regions of Gujarat and
Maharashtra(both places where Pramal Farmatics is licensed to sell), this could be a good option to
target. Horticulture farmers tend to have larger landholdings too, thus they would need a tractor which
has easy accessibility and small size, to help in maneuvering the landscaped plantation. Horticulture also
requires the removal of weeds and creation of soil, which could be easily facilitated by the three wheel
convertible feature of the Vanraj, meant especially for cash crops.

B) Region wise:

There are four main regions on basis of geography – Gujarat, Madhya Pradesh, Maharashtra, Uttar
Pradesh. Uttar Pradesh. The variety of soil present in these regions affects the horsepower needed.

Region Soil Type Horsepower Registration to Can Vanraj target

needed manufacture and this region?
market
Gujarat Laterite & Black Soil Higher Yes No
Madhya Pradesh Laterite & Black Soil Higher Yes No
Maharashtra Laterite & Black Soil Higher Yes No
Uttar Pradesh Alluvial Lower Yes Yes
Punjab Alluvial Lower No No
Haryana Alluvial Lower No No

States Marginal Farmers Small Farmers Large Farmers

Gujarat
(percentages of
27.33% 27.96% 44.71%
total state farmer
population)
Madhya Pradesh 40.38% 24.08% 35.54%

Maharashtra 40.05% 29.81% 30.14%

Uttar Pradesh 75.42% 14.56% 10.01%

Hence, on basis of this data, we observe that marginal farmers form the largest percentage of farmers in
each state except for Gujarat. Also, according to soil types and Vanraj’s license to manufacture and
market, Uttar Pradesh seems to be the most suited market for selling unmodified Vanraj tractors.

C) On basis of Horse Power:

Contribution to tractor
HP Segment sales Segment growth rate in %
Marketing Management
Prof. Joffi Thomas.

Rhea Pradhan
PGP/23/412
<20 mini tractor 0.50% -0.37%
21-30 small sized tractor 25% 15.22%
31-40 medium sized tractor 55% -2.90%
41-50 Large sized tractor 15% -5.88%

>50 high end market 4.50% 17.88%

We observe that so far, small size and medium sized tractors have captured the market, contributing
over time.

Q2) Which market segment would you target? Why?

The market segment I would choose would be that of the small and marginal farmers. In order to sell a
product, one needs consumers who need your product. We observe in the case of small and marginal
farmers, that they need tractors for various purposes, like tilling land, transportation etc. As on now,
most of these farmers either use bullocks or rent tractors from bigger farmers for agricultural purposes.
Thus a cheaper, smaller tractor like Vanraj will be beneficial to these farmers. It would ease lives,
especially with the myriad of features that it possesses like an adjustable wheelbase suitable to
interculture operations, to grow variety of cash crops, tested power take off point so that the engine can
be used as a power generator, to run rotavator, water pump etc…

Moreover, I believe M/s Pramal Farmatics Pvt. Ltd. should target the state of Uttar Pradesh, at least to
start with, before expanding to Madhya Pradesh, Gujarat and Maharashtra. This is because the soil
condition of Uttar Pradesh, with its soft, alluvial soil, is most favored to the use of a low horsepower
tractor. Also, Uttar Pradesh contains the largest amount of marginal farmers(number wise and
percentage out of total farmers in UP). Thus, Vanraj could easily make its place in the hearts and farms
of these farmers and then expanding outside will be easier too.