Professional Documents
Culture Documents
CHAPTER – 1
INTRODUCTION
and dynamism of tractor manufacturers and also the policies adopted by the
government to enable it to effectively meet the demand. The tractor industry in India
has made a significant progress in terms of production and capacity as well as
indigenization of technology. It is a typical sector where both imported technology
and indigenous developed technology have developed towards meeting the overall
national requirements. The global spotlight on tractors manufacturers certainly in
terms of volume seems to be swinging away from the USA, UK and Western and
Eastern Europe towards India where growth in the number of producers and the total
volume in recent years have been impressive. In India tractor industry has played a
vital role in the development.
India's gross cropped area is next only to United States of America and Russia
and along with fragmented land holdings has helped India to become the largest
tractor market in the world. But it drops to eight position in terms of total tractor in
use in the country when compared to international figures, only 3% of total tractors
used all over the world . It is to be noted that while the overall automobile industry is
facing recession the tractor industry is growing at 9%.About 20% of world tractor
production is carried out in our country only. The arable land in India is high as 12%
of the total arable land in the world. Tractor market in India is about Rs 6000 crore.
On an average around 400000 tractors are produced and their sale is 260000.Uttar
Pradesh is the largest tractor market in our country. One out of every four tractor is
being purchased here.
What customers are looking for today is for utility, fuel, economy, reliability,
maintenance affordable and available spare parts, looks, status, safety, comfort to
work. It is technically impossible for any single tractor to be best in all the above
parameters. They may lack some of the parameters.
There is no technology in the world today, which can be “all things to all
people”. Based on above aspects, following distinct Niches can be identified, viz.
This situation of today’s tractors markets made me to take this topic to the
consumer attitude towards the John Deere tractors of tough competition.
An attitude explains a person’s relatively consistent evaluations, feelings and
tendencies towards an object or idea. Allport defines an attitude as “A mental or a
The consumer attitude can through their satisfaction know towards the
product. For the purpose of study, the area selected is HAVERI Talluqe one of the
developing district of Karnataka in all respect comprising of more than 9 lakh
populations.
This project report attempts to analyze the present marketing activities that are
carried out by “BALAJI TRACTORS”, P.B. Road, Haveri. Certain suggestions
have been given by the improvement of the marketing activities of Balaji Tractors.
I hope this study and the suggestions might help in changing or modifying
their marketing strategy.
SELECTION OF RESPONDENTS
The respondents are selected in the following manner-
Farmers:
The farmer’s users have been selected by visiting the villages in Haveri Taluk to
get the information.
10 10
DEVI HOSUR
10 10
KARJAGI
10 10
IJARI LAKMAPUR
10 10
KALLAPUR
10 10
KERIMATTIHALLI
50 50
Total
Contractors:
Contractors are being interviewed at their residence and work place to gather the
information.
CHAPTER -2
This contains the insight of Tractor Industry growth and its present trend and
company profile of "John Deere Group" and "John Deere Tractor company Ltd”
contains the information relation relating to its origin and growth.
CHAPTER-3
"Product Profile" contains the details relating to the evaluation, features and
Technical specification of John Deere Tractors, which is the leading Tractors in
Haveri district and “Marketing Strategy" the researcher intend to deal with the
marketing mix, steps to involving in marketing and marketing plan, and planning
process.
CHAPTER-4
"Analysis and Interpretation" chapter contains the analysis of the data collected during
survey and the interpretation.
CHAPTER-5
This chapter contains the survey findings, suggestions and conclusion.
CHAPTER – 2
CONCEPTUAL FRAMEWORK
Indian Agricultural market is growing very rapidly with five very passing year
new models are introduced by practically all manufacturers in a bid to induce buyer to
purchase their product the consumer too have become more knowledgeable and
selective. He wants good quality product as he in prying a large sum of money for the
personal transportation.
Automatic single piece hood opening : The daily inspection & routine
maintenance of your tractor now made easy
Mobile Charging Point : No matter where you are, always be in touch
Deluxe Seat with armrest: Attractive and comfortable seat with armrest which
can be adjusted to suit your body weight. A single lever facilitates lateral and
vertical adjustment to suit your comfort
Electrical Quick Raise and Lower (EQRL): Easy hitching and usage of
implement through EQRL switches
Multi Function Display
- LCD Panel – Hour Meter, Ground Speed KMPH, Service Reminder, Trip Meter,
Battery Volt Meter
- Clutch over Riding Indicator
- Reverse PTO Indicator
- Mobile Charging Point
Tilt Steering: For operator comfort. Adjustable up to 25° tilt, with lock latch
Turbo charged Engine with Rotary pump: John Deere’s New Powerful 3029 H
Turbo charged engine with Rotary Fuel injection pump.
Car like facility now in your tractor. Rotary pump facilitates switching off the
engine through the ignition key instead of conventional lever pull mechanism
US-based farm equipment major, John Deere, announced plans to invest $80
million to set up a second factory in India.
The factory at Dewas in Madhya Pradesh will make small tractors to be sold
locally and overseas, the company said. John Deere has sold equipment in India for
about 60 years and its other tractor factory is in Pune, Maharashtra.
The company also has a joint venture with Indian commercial vehicle maker
Ashok Leyland Limited to make construction equipment at a factory in Chennai.
Chairman and CEO Samuel Allen said in a statement: “John Deere products
have been well accepted by customers in India and our investment in this new factory
is a direct result of that success.”
The new tractor factory in Dewas will eventually employ around 1,000
workers.
John Deere, however, stressed that M&M’s “proclamation” was “based solely
on individual judgment”. The company, which supplies high-margin tractors to the
North American market, said it was the largest manufacturer of agricultural
equipment based on revenues.
The marketing mix refers to the maximum efforts. The combinations of the
designing and integration of the elements of marketing in to a program of mix which
on the basis of appraisal of the market forces will best achieve the objectives of an
enterprise.
Before dealing with the above concept, it is necessary to deal with the terms like,
Demand and supply, on the market of a product stands.
Demand:
It is one of the most important concepts to be dealt with while marketing any
product. Law of demand "the greater the amount to be sold, the smaller must be the
price at which it is offered in order that it may find purchase".
Supply:
This term determines the rating of a product in market with related demand
therefore it is an important term to be dealt.
1. Idea Generation
The first vital step is to generate ideas, for new products are from new ideas,
product idea generation means fusion of perceived need with the recognition of
technical opportunity. However, when a technical opportunity is recognized to satisfy
to this need, a product idea is generated.
2. Screening
Screening is the second stage of product development that eliminates the
greatest number of ideas from further consideration. It is the critical part of
development activity. That is even though the concept may be considered very
marketable, it may be viewed as in appreciate for a firm that is looking specific
resources needed to produce and market it successfully.
3. Business analysis
The third major step in the process of new product development is that of
business analysis. It is a depth study of the estimated economic feasibility of new
ideas. It is attempted to predict the economic consequence of the product for the
company as a whole. It is assessing profitability of new product, idea that helps
management in deciding whether to introduce the new product. continue the
development and the evaluation further or to drop the idea. It is the evaluation the
product idea in depth to determine its financial, competitive manufacturing and
marketing viability in a accepted business environment.
4. Product Development
During the development stage, the product idea is converted into tangible
physical product. This involved design and formulation of the product and
development of a technically, and commercially method of manufacture. Product
development is a scientific and engineering task leading to the design and building of
prototype working model on one and hand functional texting on the other.
5. Test marketing
Test marketing is the stage where the entire product and marketing program is
tried out for the first time in a small number of even chosen an automatic sales
environment. Test marketing is normally the last step in the development process
before a new product is launched either or regional as on national level. Obviously,
test marketing is a means of minimizing risk of national or regional launched.
6. Commercialization
Commercialization is the actual introduction of the product in to the market
price, with all of the related decisions and resource commitments. Commercialization
is to implement the decision taken for earlier stage and committing to the resources to
implement new product strategy. In other words raw materials and components parts
contacts are to be made with the suppliers, channels of distribution are to be selected,
manufacturing facilities, equipment process must be set in operation, sales people to
be hired and trained, advertising program is to be okayed. Thus, It is a commitment
in terms of finance and people.
a. Marketing requirements
Successful innovators pay attentions to the requirements of the market. They
under take extensive and intensive market research.
b. Marketing needs
Successful innovators pay close attentions to all fact and practice of marketing
such as advertising, promotion, and selling, packaging, branding, technical literature
and so on.
c. Top management support
Successful innovators have the whole hearted support of the people at the top
in the corporate hierarchy.
d. Good external communication
Successful innovators have an open mind and good external communication,
That is, keep in good and constant with institutions in science and technology.
e. Diligent development work
Successful innovations tend to perform their development work diligently and
efficiently rather than more quickly.
Variables:
a. Product line and range
Product line is group of closely related products, which above to satisfy a class
of need, to be used together, to be sold to the same consumer group to be moved
through same distribution channels or fall within a given price ranges each firm has its
own product lines.
A) Transportation
A selection is to be made of the most efficient, economical, rapid and
dependable mode of the firm's product taking into account rail loads, motor trucks,
inland-water ways and railways and railways express.
It is known fact that transport is creating place utility that widens market
ability for the product of the firm.
B) Ware Housing
Ware Housing has its own place in distribution of goods that crated time
utility by supply and demand, preserving or conditioning the product and obtaining
more favorable demand and market price. Today, storage involves 4 function in
distribution the goods viz, receiving, actually receiving and checking, unloaded
include goods transfer to warehouse, selecting.
C) Inventory Levels
Merchandizing is responsible not only for what to make available but also to
know how much to produce. In determining amount of merchandize, to make for
inventory past and current sales and the anticipated future sales poor the product lines
are to be considered. It is dependent on economic condition.
D) Channel of Distribution
Every manufacture of producer is faced with the problem of developing plans
and policies involving the choice of channels or channel of distribution for his
products. These plants and policies are related with the determine of the number of
middlemen to be used, distribution and dealers to be compiled on one hand franchise
agreement stipulating the obligations of manufactures and intermediaries and the legal
implication involved in their relationship on the other.
John Deere tractor's adopts good distribution policy to reach its Customer. At
the light in the process the product move from manufacturing unit to branch office ,
from branch office to dealers and finally from dealers to the ultimate users, i.e.,
customers.
The price is fixed by the management of John Deere Tractor Company’s the
dealer does not have authority to fix up the price of the product; he has to sell for that
price which is fixed by the management. The dealer only gets the commission on
certain profit from the per agreement.
A) Advertising
Advertising is a popular method of impersonal communication using its wide
verity of media and media vehicles. In planning advertising decisions must be on the
objectives to be achieved the audience to be reached etc.
C) Public Relations
It involves the installation and maintenance of mutual understanding between
a firm and all that are likely to come in contract with it. These sections of society are
customers, shareholders, administration staff and general public; it attempts to portray
the image and personality of organization. It is an impression of developing reciprocal
understanding and good will.
CHAPTER – 3
COMPANY PROFILE
Haveri Branch
William Paterson
J.I. Case's first pioneering efforts at producing a gas traction engine date to
1894, or maybe earlier, when William Paterson of Stockton, California, came to
Racine to make an experimental engine for Case. Case ads in the 1940s, harking back
to the firm's history in the gas tractor field, claimed 1892 as the date for Paterson's gas
traction engine: patent dates suggest 1894. The early machine ran, but not well
enough to be produced.
Ford Tractors
Henry Ford produced his first experimental gasoline powered tractor in 1907,
under the direction of chief engineer Joseph Galamb. It was referred to as an
"automobile plow" and the name tractor was not used. After 1910, gasoline powered
tractors were used extensively in farming.
Frick Tractors
The Frick Company was located in Waynesboro, Pennsylvania. George Frick
started his business in 1853 and built steam engines into the 1940's. The Frick
Company was also well known for sawmills and refrigeration units.
The Indian Tractor Industry has developed over the years to become the
largest in the world.
Starting in 1960′s it had reached just about 50,000 units in the early 1980′s,
but today the size Indian Tractor market has grown to over 600,000 units.
Increasing Tractors are being used for haulage and non-agricultural
applications as well.
The opportunities are still huge considering the low farm mechanization levels
in the country, when compared to other developed economies across the
world.
After a splendid performance during the last two to three years, the Indian
tractor industry is believed to head for a slowdown, which we believe is a
myth.
Tractor Market
Tractor market has grown at a CAGR of 12.8%, in the last five years
Sales, steady since FY07, should increase even more (as witnessed in FY12)
due to rising farm income and rural growth.
Tractor sales have always been better in the second half of the year than the
first half. The exception to this was FY09, when 2HFY09 sales were 8% lower
than in 1HFY09.
There are currently 14 players in the industry. Mahindra & Mahindra is the
leading player in the industry. Monsoon season is a key driver for sales of tractors. A
series of good or bad monsoon can affect the sales. In recent years the industry has
registered a good growth in sales, both domestic as well as exports. This is also partly
because of the initiative of the government to boost up agriculture and agricultural
machinery industry.
The tractor penetration level in India is very low as compared to the world
standards. Also the penetration levels are also not uniform throughout the country.
While the northern region is now almost saturated in terms of new tractor sales, the
southern region is still under penetrated. The medium horse power category tractors,
31-40 HP, are the most popular in the country and fastest growing segment.
Indian Tractor Industry developed in 1945 to 1960 because of the War surplus
tractors and bulldozers were imported for land reclamation and cultivation in mid
1940's. In 1947 Central and State Tractor Organizations were set up to develop and
promote the supply and use of tractors in agriculture and up to 1960, the demand was
met entirely through imports. In 1951 there were 8,500 tractors in use, 20,000 in 1955
and 37,000 by 1960. Local production began with five manufacturers in 1961
producing a total of 880 units per year. Eicher, Gujarat Tractors, TAFE, Escorts,
M&M are the major tractor manufacturers.
In the last few decades would be remembered as a year, where was a major
turning point in the tractor industry. Nowadays it is very necessary because of lack of
labor availability, time saving fast work done by these tractors and heavy growth in
the tractor industry.
Due to this reason, many of competitive brand of tractors existed. They can be
called, as major players in the tractor industry. They included
John Deere India Private Limited
Tractors and farm equipment Ltd (TAFE)
Escorts
Sonalika
New Holland
Balwan tractors (Force Motor Ltd)
Indofarm Tractors
Mahindra
Goal
Our goal is to be the best managed agri-business in Swaziland and to be a
"World Class" John Deere Dealer. By accomplishing our goal, we believe that we are
positively contributing to the wealth and success of Swaziland and thereby helping to
make this an attractive country for our families to live and grow in.
CORE VALUES
We are driven by competition, but will not sacrifice our honesty or integrity
while competing in the marketplace.
We recognize the importance of our customers; therefore we will treat them
with courtesy, friendliness and fairness at all times.
We strive to make intelligent commitments to our customers and to deliver on
them with urgency.
We believe that by respecting our customers and employees we will in turn
gain respect from them.
We hold employees accountable for their performance. We will not accept
substandard salesmanship or workmanship.
We encourage every employee to be a team player, to continue to develop
their skills and to grow with the company.
We will recognize and reward employees who deliver positive results and we
will review every employee’s remuneration annually.
We expect that a clear solution be a prerequisite to a constructive criticism.
We will work hard, but we will not forget that life is also fun.
“I will never put my name on a product that does not have in it the best
that is in me," - John Deere (1804 - 1886)
2010 John Deere Cylinder Division hits 15 years – 7,951,752 hours – without
a lost-time injury.
3.2 (D) Brief Profile of John Deere Tractor
Deere & Company (John Deere), incorporated in April 25, 1958, along with its
subsidiaries, operates in three segments: agriculture and turf, construction and forestry
and financial services. The John Deere agriculture and turf segment manufactures and
distributes a line of agricultural and turf equipment and related service parts. John
Deere construction, earthmoving, material handling and forestry equipment includes a
broad range of backhoe loaders, crawler dozers and loaders, four-wheel-drive loaders,
excavators, motor graders, articulated dump trucks, landscape loaders, skid-steer
loaders, log skidders, log feller bunchers, log loaders, log forwarders, log harvesters
and a range of attachments. The financial services segment primarily finances sales
and leases by John Deere dealers of new and used agriculture and turf equipment and
construction and forestry equipment.
Financial Services
The financial services segment provides wholesale financing to dealers of the
foregoing equipment, finances retail revolving charge accounts and operating loans
and offers crop risk mitigation products and extended equipment warranties. The
Company and John Deere Construction & Forestry Company (a wholly-owned
subsidiary of the Company) are referred to as the sales companies. The financial
services segment also finances and services revolving charge accounts, in most cases
acquired
from and offered through merchants in the agriculture and turf and construction
and forestry markets (revolving charge accounts). The financial services operations
offer retail leases to equipment users in the United States.
The Company competes with AGCO Corporation, CLAAS KGaA mbH, CNH
Global N.V., Kubota Tractor Corporation, The Toro Company, Caterpillar Inc.,
CHAPTER -4
ANALYSIS OF DATA &
INTERPRETATION
40
35
30
25 24 No. of Users
No. of Users in %
20 18
15 14
10
5
0
18 to 25 26 to 35 36 to 45 46 and Above
Interpretation
The above table exhibits that out of the total 50 respondents, 14% of the
respondents are belongs to the age group between 18 to 25. 18% of the respondents
belongs to the age group of 26 to 35. 44% of the respondents are belongs to the age
group of 36 to 45. remaining 24% of the respondents belongs to the age group of
Above 46 year.
majority of the respondents belongs to the age group of 36 to 45.
50
40 40
20 20
14
6 7
3
Interpretation
The above table showing the out of 50 respondent, 34%
respondents whose qualification is bellow SSLC. 30% respondents
whose qualification is SSLC. 20% respondents whose qualification is
PUC. 6% respondents whose qualification is Graduation and 10%
respondents whose qualification is other category like ITI, Diploma etc.
Bellow 100000
33%
100000 to 200000
67%
Interpretation
The above table shows that out of 50 respondents,78% respondents are the
Formers and 22% respondents who are contractors.
200000 to 300000 14 28
300000 & Above 18 36
Total 50 100
Source : Field Survey
12%
36%
24%
28%
Interpretation
Out of 50 total number of respondents, 12% respondents yearly income is below
100000. 24% respondents whose yearly income is between 100000 to 200000. 28%
respondents whose yearly income is between 200000 to 300000 and 36% respondents
whose income is above 300000.
4.3 Buying pattern of Tractors
82
90
80
70
60 41
50
40
30 8
20 2 4 3 6 4
10
0
ice ag
e ce ign
Pr im an es
d r m d
an rfo ok
Br Pe utlo
& O
wer
Po
Interpretation
60 The
54
above table
50
showing
40 out of 50
30 27 No. of Users
No. of Users in %
20 18
14
10 9 8
6 7
3 4
0
Advertisement Friends News Papers Dealers Others
respondents, 4% of respondents are considers the price factor while purchasing John
Deere Tractors, 6% respondents are considers the brand image, 82% respondents are
considers power and performance and the 8% respondents who considers the outlook
design of the tractors.
4.3.2 The classification of respondents on the basis of awareness
about John Deere Tractors.
Attributes No. of Users No. of Users in %
Advertisement 9 18
Friends 27 54
News Papers 3 6
Dealers 7 14
Others 4 8
Total 50 100
Source : Field Survey
Interpretation
The above table exhibits out of 50 respondents, 18% of the users are known
the John Deere tractors through the advertisement, 54% of customers are know
through their friends, 6% of the respondents are known through the news papers, 14%
of the customers known through the dealers and 8% of customers known through the
other ways, like window advertise and in the road etc.
Interpretation
The above table exhibits out of 50 respondents, 32% of the respondents
feeling the price is High and remaining 68% of the respondents are feeling the price
is reasonable.
100
90
80
70
60
50 No. of Users
No. of Users in %
40
30
20
10
0
Own amount Loan amount Total
Interpretation
The above table shows that only 30% of the users are purchase John Deere
tractor by their own amount and remaining 70% of the respondents are purchase
through the loan from banks and other financial assistance.
100
100
90
80
60 No. of Users
50 No. of Users in %
45
40
20
10
5
0
Easy available Not available Total
Interpretation
The above table shows the out of 50 respondents, 45% of respondents are
opinion that the spare parts of tractor is easily available in the market and 10% of the
respondents are opinion that are spare parts of tractor is not available in the market.
Interpretation
The above table shows the out of 50 respondents, the 40% of the users are
opinion that fuel consumption is good and fair, the 14% of respondents are opinion
that excellent and remaining 6% of users are feel bad.
100
80
60
40
20
0
Satisfied Not satisfied Total
Interpretation
The above table shows out of 50 respondents, 88% of the respondents are
satisfied with John Deere tractor and remaining 12% of the respondents are not
satisfied with John Deere tractors.
80
64
60
40
16 No. of Users
20 8 12 No. of Users in %
0
e ce l
ice ag ign ta
Pr im an es To
d r m d
an rfo ok
Br pe
utlo
& O
wer
Po
Interpretation
The above table exhibits the out of 50 respondents, the 8% of the
respondents are satisfied with price of tractor, 16% of the respondents are satisfied
with brand image, 64% of the respondents are satisfied the power and performance
of the tractor and 12% of the respondents are satisfied with the outlook design of
the tractor.
4.4.3 Classification on the basis of suggestion give to others to
purchase John Deere Tractor.
100
100 96
80
60 No. of Users
48 50 No. of Users in %
40
20
2 4
0
Yes No Total
Interpretation
The above table shows the out of 50 respondents, 96% of the respondents
are ready to suggest purchase a John Deere Tractors to others, but 4% of the
respondents are not interested to suggest to others purchase a John Deere Tractors.
Total 50 100
Source : Field Survey
90 100
100
90
80
70
60 45
50 50
40 10
30
20
10 5
0
Satisfied
Not satisfied
Total
Interpretation
The above table exhibits total 50 respondents, 90% of the
respondents are satisfied with the service of dealer and 10% of the
respondents are not satisfied with service of Balaji Tractors.
CHAPTER – 5
FINDINGS, SUGGESTION &
CONCLUSION
FINDINGS:-
It is observed that most of the people who preparred are John Deere pleaser
are 15-20 years below 15 years.
It is observed that from the study that maximum percentage of John Deere
tractors pleasure is high demand among the formers and traders
The quelity of affer sales service rendered by the dealer of John Deere
Tractors is satisfied.
SUGGESTIONS
Since there is an Sucreasing demand for John Deere Tractors in the market
I suggested that,
I suggested that John Deere Tractors should provide excellent sales service to
customers which will add to Company Brand image.
The milage given by the John Deere Tractors is Good compare to other
Tractors. Therfore I Suggest that the company should increase Mileage of the John
Deere Tractors by adopting the latest Technology in order to increase the sales
volume.
CONCLUSION
BIBLIOGRAPHY:
QUESTIONNARIE
1. Referred Books
Sharpiro
Philip kotler
2. Magazines
Motor India
Business standards.
Journals
Company Circulars.
4. Internet: www.google.com
QUESTIONNARIE
Dear Respondent,
I am PRAKASH H LAMANI student of Govt. First Grade Collage, Final year
BBA, RANEBENNUR. I have undertaken “A Study on consumer attitude towards
John Deere tractors: A case study of BALAJI TRACTORS”
Thanking you,
PRAKASH H LAMANI
1. Name: ___________________________
2. Address:_________________________
Place:
Date:
Signature