Vanraj Mini-

Tractors: Is Small
Beautiful?

Subject – Marketing Management

Submitted by –
 Question 1
Q: Evaluate the attractiveness of different market segments for Vanraj?
*Market consist of buyers & buyers differ with one or more perspective, where market Segmentation is –
• Dividing the market into distinct groups of buyers
• Segment are made of groups of people with different needs and characteristics.
Ans: The segmentation can be done on the basis of the farmer’s land holding, the type of soil and by the type of the crop
cultivated or other geographical factors.
For the time focus states for Vanraj Mini Tractors are MP, UP, Gujarat and Maharashtra. Field test conducted to check its
functionality in black and laterite soils have provided satisfactory results so segmentation on type of soil (geographical)
doesn’t seem necessary.
To understand and to solve the problem of choosing the right segment for Vanraj we have focused on the cost benefit
analysis from the perspective of small farmers having average land holding (as per the report) size of 1.4 hectare.
It is also noted that majority of the tractors are bought on credit availed from banks. Due to restriction in credit from banks
to marginal farmers as their land holdings are less than 3 acres; Vanraj may not be viable for them. Thus marginal farmers
are not part of the target segment.
But As per case to target small farmers they need to make them switch from use of bullocks or from the use of rented
tractors to Vanraj.
From the cost benefit analysis it would be possible for us to conclude that using Vanraj tractor provides clear advantage over
using services of rented tractor by a small farmer. When we compare it with the use of Bullocks the initial cost of Vanraj may
be higher but it has many added advantage like possibilities of alternative uses of Vanraj adding to revenue generation and
better results. It would also increase efficiency in agriculture operations. Thus for a small farmer it is a better option to
switch to Vanraj from bullocks as well as from the use of service from a rented tractor.
 Question 2
Q: Which market segment would you target? Why?
Ans: I will advice to target the small and marginal farmers segment.
As this an untouched segment with hardly any interest shown by the big players, I think this will be a game changer
for Vanraj. They have an affordable machine with low fuel consumption, easy to maintain and repair design, and can
be modified for various other purposes like material handling, transportation or other operational tasks. This will
provide an image of independence for the farmer and encourage them to replace their bullocks. Due to its multi
utility, low competition and untouched audience, this will be their best bet for Vanraj. Other markets will have a high
competition and vanraj will face a tougher time to get recognition. They should wait for some time before they
strategies for those segment