DECISION SHEET

VANRAJ MINI-TRACTORS: IS SMALL BEAUTIFUL

Statement of the Decision Situation:

To identify the most appropriate target segment for Vanraj as small/ marginal or large-scale
farmers?

Alternatives:

 To launch Vanraj Tractor in small/ marginal farmers’ segment.

 To launch   Vanraj Tractor in a larger farmers’ segment.
 To launch Vanraj Tractor for industries.

Criteria:
 Accessibility
 Need of customers 

Solution:

To launch Vanraj Tractors in the small/marginal farmers’ segment

From the cost-benefit analysis of farmers’ perspective, Vanraj Tractors is the best option
compared to rented tractors and bullocks. For Vanraj Tractors, the small/marginal farmers’
segment has fewer competitors than large tractors.  Of the total landholdings, a
small/marginal segment of farmers holds 82% of the land. But these farmers have a low level
of mechanization in their fields as these small/marginal farmers cannot afford the cost of any
machinery along with other production costs. Unlike other countries, India has major crop
areas as fragmented lands in which big tractors cannot be employed for cultivation.  In the
case of the large tractor market, horticulture is a niche market, whereas in the small tractor
market there is no such niche market.

ANNEXURE:

COST

Particulars Bullock Vanraj Rented Tractor

Cost 27500 25600 237500
Fuel/Fodder 17500 57000 0
Maintenance 0 2795 0
Life Span 9 Years 8.5 0
Cost for inter 11200 0 0
cultivation
Total 56200 85395 237500

BENEFIT

Group No: 11 – Anandu, Gollu, Juliet, Nachiketan, Nimisha, Pratik

Bullock Vanraj Rented Tractor
 Dung as fertilizer  PTO • No liabilities
 Eco friendly  Multipurpose
 Versatile
 Saves time & labor
 Easy to maintain
 Functional
superiority

Group No: 11 – Anandu, Gollu, Juliet, Nachiketan, Nimisha, Pratik