Case Situation

 The Company named M/s Pramal Farmatics Pvt. Ltd owned by three technopreneurs Jagdip Trivedi, Jayanti Bhai Patel and Pragnesh Patel, manufacturing facilities situated near Anand Gujarat  Initially it was a material handling company

 Which is now ready to manufacture and market the small 10 HP tractor under the brand name of „Vanraj‟.
 Company got the certification of Central Motor Vehicle Rules (CMVR) from Central Farm Machinery Testing and Training Institute (Budhni, MP).  Company had good technical and professional experience before entering in this business.

 Company is entering in the new segment and this segment was not catered by any company  There was not any direct competition but it was in the very competitive Industry where various major players like Mahindra & Mahindra, TAFE, Punjab Tractors, Escorts and Sonalika were there.  There were three mini tractor manufacturer but they were not the refined product that is why they are not direct competition.

 They are going to enter in the new segment which was not catered by any company as such that is why there is no clear defined customers  Usage and the design of the tractor has some implication about the customers they may be the Small and marginal farmers, horticulture farmers, material handling customers  They have also identified the large farmers as segments.

 This case is not too much influenced with politics

 Economical the company was the small scale industry and the customers identified were small and marginal, large and horticulturist etc.
 Company got funding from the government wing for the technological refinement  Sociological factors - product was focused to cater small usage which was not tackled by the big tractors.  Most of the consumers were small and marginal farmers. For the buying the tractor they consider the HP as the main factor but beside this there are other factors like it is a status symbol also it is the sign of prosperity also tractor purchase also has lot of other social significance.

 Technological aspect
 The marginal farmers are still dependent on the bullocks and other manual systems.  Farm mechanisation has lot of value in terms of the upliftment of the poor and increasing the productivity  In tractor industry HP is the main criteria and most of the technological aspects are covered in this case

Demographic segmentation

Geographical/ Segmentation based on Topography of soil

Product segmentation (Engine horse power)

Demographic segmentation
 On the basis of land holdings:
 Small & marginal farmers: In this category the level of mechanisation is low and they used bullocks for tilling and agricultural operations. Moreover they had small land for farming and the Vanraj tractor was focussing this segment as its target.  Large farmers: This section was catered by all the big players as they have large area for farming and the farms were highly mechanised. They usually preferred tractors having HP more than 20.

On the basis of type of occupation:
 Industry: Industry wise they are divided into small scale firm, national, and multinational players.
 Horticulture: This segment of cultivation requires specific design which would facilitate the cultivation process. It requires intercultural operations like removing weeds and creation of soil. These functions could be well performed by tractors having “three wheel convertible features” which is observed in Vanraj tractors.

Geographical/ Segmentation based on Topography of soil
 North India: The regions like Punjab, Uttar Pradesh, and Haryana were dominant in tractor sales. As the soil is alluvial they require tractors with less HP.  South and West India: In the regions like Gujarat, Maharashtra and Madhya Pradesh the soil is harder type- Laterite and black soil where more HP tractors are required

Product segmentation (Engine horse power)
 Mini tractor: The tractors which are having less than 20 HP are considered to be the mini tractors and Vanraj being one of them.  Small tractor: Tractors having horsepower between 21 and 30 HP are considered as small tractors.

 Medium tractor: Tractors having horse power between 31 and 40 HP were included in this section.
 Large tractor: Tractors having horse power more than 50 HP were included in this section.

The segmentation on the basis of land holdings is important as’
 This segment is not served by big players, as they are interested in more margins.  In this segment about 82% of the people do not have tractors, thus having more scope for future.  Land holdings are smaller, for small farmers it is 0.4 hac & for marginal farmers it is 1.4 hac. Thus they need a tractor which is not bigger in size.  The Vanraj tractors are of 10 HP and hence it would be best suitable for small and marginal farmers due to its low cost and lesser fuel consumption with more utility and less maintenance.

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