Vanraj Tractors

CASE ANALYSIS

Submitted by:
Hemang Chauhan (P40015)
Mohit Pandit (P40024)
Suman (P40043)
Sunil Mittal (P40044)
Yash Mevasi (P40053)
About the Case
An idea evolved in the mind of a small farmer as working with bullock carts for farming was
creating a lot of problems and was increasing the time spent in growing a crop by multi fold
while compromise the quality of the produce. An idea of mini tractor was evolved keeping in
mind the needs of small and individual farmers need. The innovation was done at a grass root
level to eliminate the problems created by the usage of bullock carts and decrease the time
being spend in ploughing the field. It was going to decrease the time being spend by the farmer
on the field.
Problem Statement
The Market segment that the company is targeting will give the required revenue and sales
growth or not? Also, is the segment aligning with the company goals or not?
Analysis
Market segmentation
Demographic Segmentation: -
▪ Small and marginal farmers – Mechanisation in low and are currently using bullock
carts. This is the segment which is majorly targeted by Vanraj Tractors.
▪ Large farmers – These farmers using highly mechanized machinery and generally
prefer Tractor over 20 HP.
▪ Industry – divided into small firm, national and multinational players.
▪ Horticulture – specific design of tractors is required which have three-wheel
convertible feature which are found in Vanraj tractors.
Geographical Segmentation: -
▪ North India – regions like Punjab, Uttar Pradesh and Haryana are dominating states
in the sales of Tractor. They generally require tractor with less than 20HP as the
soil are easy to plough.
▪ South and West India – Regions like Gujarat, MP and Maharashtra are covered and
requires tractor of less HP.
Product Segmentation: -
▪ Mini tractor – Less than 20 HP which are made by Vanraj.
▪ Small Tractors – 21 to 30 HP.
▪ Medium Tractor – 31 to 40 HP
▪ Large Farmers – HP more than 50 HP was included

Segmentation done on the basis of land holding or demographic segmentation is important here
as: -
✓ This segmentation is done by other big players as they focus on large farmers who
provide better margin than the small farmers.
✓ This segment has huge growth potential as more than 82% farmers don’t have tractors.
✓ Big tractors cannot be used in small (0.4 hec) and medium (1.4 hec) farm so it will kind
of create monopoly of Vanraj Tractors.
 ✓ Low cost and lesser fuel consumption will be an attractive differentiation for the
company as these farmers are very price sensitive.

Recommendations
Company should go for intensive market research and start focusing more on B2C segment as
the Tractors they are selling are more useful for individual and small farmers. Company should
do concept testing to estimate the future prospects. The sales and revenue estimates should be
based on the market research for more practical targets. Market should be intensely analysed
to know the customer needs and their buying pattern.