Professional Documents
Culture Documents
Segment Analysis
Industrial Large Farmers Small & Marginal Horticulture
There is a need of small vehicle which can move through rough and congested streets
Higher Demand There is a shift from 20-30 HP towards the higher segments(50-60HP) Higher HP segments give better overall fuel efficiency for large farmers Average size of land being higher Large tractors are more cost effective Segment catered by all big players
Our product will become industry ready only after modifications so its not profitable presently
Industrial
Large Farmers
Horticulture
They purchase big tractors by taking credit from banks but are unable to meet break even hours
This will increase their social status; provide emotional benefits along with ensuring timely agriculture operations
OPPORTUNITIES Highly potential market (world largest market for tractors) Third largest gross cropped area High number of marginal & small farmers Increase in horticulture
THREATS Chinese tractors dumping. Indirect completion from assembled tractors manufactures Govt. restriction Unexpected climatic condition Fragmented lands
This segment is not served by big players, as they are interested in more margins.
Industrial
Large Farmers
Horticulture
Mr. Vikas Gupta Dealer: FarmTrack Tractors Alwar, Rajasthan
Mr. Mohit Raghuvanshi Mr. Pranshul Lashkari, Dealer: New Holland Tractors Farmer, Vidisha Vidisha, Madhya Pradesh (Madhya Pradesh) Interview Excerpts
zaroori hai ki tractor zameen ko gahra jot sake Dealer kisaan rent pe jada horse power k tractor ka istemaal karna pasand karte, hai bajaay kam horse power ka khareedne se
Focused States
Uttar Pradesh Madhya Pradesh Gujarat
Maharashtra
Lower HP Tractor
ACCEPTABILITY
Acceptability
Affordability
Availability
Awareness
AVAILABILITY
Small Farmers are Scattered Challenging to set up a distribution channel
AFFORDABILITY
Bank Loans Conditions minimum 4 acres of irrigated land and 8 acres of dry land Fragmented land holdings majority of farmers own less than 2 hectares Defaulter rate high
THREAT OF COMPETITORS
Cheaper Chinese products available Price Sensitivity High Bargaining Power of Buyer High Rented Tractors from Companies (eg. Eicher) Rented tractors from larger farmers
Excerpts: Farmer 10-15 beega zameen k liye salaana 1-2 baar tractor rent pe lene mein kya harz hai
Conclusion from Secondary ResearchFrom companys point of view, its a risky proposition
Market Forecast
a. Sales (given region): 45%/2812000 units* b. Less than 20 HP : 1 % of total sales c. Demand Forecast : 2812 Units for FY 01 d. CAGR : 5-7 % ( ~ 6 %)
Horticulture Growth
Indias horticulture Production is growing at 30 per cent CAGR India is 2nd in World in Terms of Horticulture Production Major Horticulture States being Gujarat , Maharshtra have evolved as new Export Hubs for Horticulture
Competitor Analysis
In under 20 HP segment only Big Player is mahindra with 15 Hp tractors & other Players like Field Marshal , Trishul & captain are not targeting Horticulture Sonalika has also launched a tractor targeted towards Horticulture farmers but in north so we can tap western region as growth rate is high in these states
Acceptability
Affordability
Availability
Awareness
Customer Need
Customer Need
Identification after Primary Research Mr Agyaram Kumar Mango Plants owner (Madhya Pradesh) Nina Patil Fruits Entrapreneur Pune Vegetable Farmers Dattadevrao Kale Bhausahab Jagdale Village : Ratanjar , Karjat, Dist. Ahmednagar, Maharashtra Consultancy Vanashreeagrotech Central institute of subtropical horticulture, Lucknow
Big Tractors have Big wheels , So with farming of fruits & vegetable Big Tractors cant be used
Use :- Farmers use tractors as a LMV, They use it to commute & also to go to market to sell their fruits & vegetables . So mileage & handling is very important concern for them
Vanraj consumed only 1.5 litres of diesel per hour there by resulting in huge savings
Very Compact fields for ex For mango 8*8 Fields require very high control & control & maneurverability
3 wheel convertability & turning radius offers better maneurverability & Control. Especially in Mango Clusters of Gujarat & Maharashtra
Maintenance is one of the major concern for farmers as they look for low Cost of maintenance
Acceptability
Affordability
Availability
Awareness
KEY INSIGHTS
As our operating capacity is 300 units, so we will target only major horticulture clusters of Gujarat , MP, Maharashtra& UP in 1st year. In the subsequent years we will target other Places as well.
Ratnagiri to target the Konkan Cluster which is major mango producing belt in Maharashtra Maharashtr In Marathwada cluster , target Aurangabad , as Aurangabad is proposed major Horticulture cluster a Farmers
Banaskantha Banaskantha
Madhya Pradesh
Anand Anand
Uttar Pradesh
Target Lucknow as major distribution centre as Central institute of subtropical horticulture is there & its near to kannauj which is proposed Horticulture hub
Acceptability
Affordability
Availability
Awareness
Price Sensitivity is very Low in Horticulture Farmers. So we can have high profitability
There are various schemes under National Horticulture Mission under which financial help is provided to horticulture farmers
With high technology & more Knowledge , they are less averse to crop failure & hence less financial risk & risk of default
Information Search Banners, Posters , Awareness Financial point of view Showcase in National & International Horticulture Expo Presence at Information Centres Field Demonstrations
Evaluation Of Alternative Demo Tractors in Weekly Haats and Melas Reference from Opinion Leaders Word Of Mouth Sponsoring Radio and Regional Television
Good After-Sale Service CRM through Mobile Messages Horticulture Technology Knowledge delivery
POSITIONING
Appendix