Marketing Strategies (Prince Report
Marketing Strategies (Prince Report
Marketing Strategies (Prince Report
AT
I express my sincere gratitude to my industry guide Mr. Gurvinder Singh for his able
guidance. I would like to thank the entire team of International Tractors Ltd. for their
continuous support and co-operation throughout my project, without which the present
project would not have been possible.
Prince Sharda
Preface
The project report is the result of working on a live project with International Tractors
Ltd., which served as an integral part of my curriculum. It provided me the experience of
the Tractor industry before coming into the corporate world. It helped me to view the
world of business closely.
I was really fortunate for getting an opportunity to work on a live project in a reputed,
well established, fast growing and professionally managed organization like International
Tractors Ltd.
INTRODUCTION:-
Business Portfolio
Government Policy
Promotion policy
ABOUT PROJECT :-
Marketing Strategy
Marketing Concept
Sales Organization
REVIEW OF LITERATURE
Research
Sample
Tool
Administration of the tool
QUESTIONNAIRE
BIBLIOGRAPHY
INTRODUCTION
Punjab, breadbasket of India, the land of 50376 sq. kms is situated in the northern part of
India and is agriculturally India’s most advanced and most prosperous state. To ensure
rapid industrialization, the Punjab government set up the Punjab State Industrial
Development Corporation (PSIDC) in 1966, for promoting new projects. PSIDC firstly
promoted Punjab Tractors Ltd. in 1970’s.After that there took a revolution of launch of
new tractor companies (All these I have discussed earlier).
These tractors are also exported to various other countries also including
France, South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Nepal, and Bangladesh
etc. The network of 600 Dealers, 400 Sub dealers, promotes the company’s marketing
efforts and 50Stockiest supervised by various regional sales offices. Such a networking
has enabled the company to grow like a well-knit family whose roots lie in its customers,
who have been providing constant feedback and support to allow the company to turn
their dreams into products.
5. Associates:
Create and sustain bonds with business associates, evoking a strong sense of loyalty for
the enterprise.
6. Shareholders:
Strive for consistently superior returns to shareholders and other financial stakeholders.
7. Society:
The Company has distribution network in 22 countries for Tractors and Agricultural
implements. The countries like Western Europe, North America, South Africa, Srilanka,
Bangladesh, South East Asia and many others.
9. Human Excellence:
The Company has established an Excellency Center with a view to develop human
excellence. The center focuses on three types of training and development activities.
Every new entrant is supposed to induction/orientation training from two to four days. It
includes detailed plant visit and CD on manufacturing processes.
Apart from functional programs, old employees are exposed to program like:
• Leadership skills
• Team Building
18000
16000
Sales of Tractors
14000
12000
10000
8000
6000
4000
2000
0
1999- 2000- 2001- 2002- 4-Mar 5-Apr
00 01 02 03
Years
The sales of the sonalika tractor went on increasing as it is shown in the graph. The sales
in the year 1999-00 was 2770 it increased to 6211 in year 1999-00 and then in 2000-2001
–recorded sales were 8773 .In the year 2001-02 the sale increased to 13516 much
showing the name and the better quality ,customer satisfaction . The increased technology
of Sonalika
Tractors proved to be the most like tractor for every farmer .the recorded sales in year
2002-2003 was 17113.Sales for the year 2003-2004 were 21002 . The latest figures
received for the year 2004-05may not be accurate as due to some secrets of the
35000
30000
25000
20000
15000
10000
5000
0
1999- 2000- 2001- 2002- 4-Mar 5-Apr
00 01 02 03
Years
The number of agriculture machinery used by the farmers in 1998-99 was 4500 then after
due to the coming modern stage many of the farmers adopted the machinery and the
number was increased to 7400 in the year 1999-00. Better machinery used resulted in the
good crops and henced the number of farmers using machinery went to 12500 then after
it went on increasing to 17500 in the yr 2000-2002 .In the year 2002-03 the number of
machinery used was 24316 .In the year 2003-04 the number of machinery used in bye the
farmers was 33000 .Then almost all the farmers were using the modern technology for
cultivating their crops in the year 2004-05 the figure recorded was 46000.
ORGANIZATIONAL STRUCTURE
CHAIRMAN
MD
J.M.D Marketing
Deputy Territory
Manager Manager
Purchase
`
Production
Tractor Consumer
R&D
Marketing
Purchase
Joint Managing Director : Sh. D.K. Mitta
Yet another feather was added to the cap of Sonalika when company's chairman, Vice
Chairman, and Managing Director were publicly honored in hotel Taj Man Singh in
recognition of their rich contribution to the tractor industry. Sh L.D. Mittal Chairman was
given Pride of Country award at the gracious hands of Chaudhary Prem Singh Speaker
Delhi Vidhan Sabha.
several stages which may include design, development, production, installation and
servicing.
Sonalika has arranged collaboration with French Renaults for technical know how and
marketing, with the help of this collaboration Sonalika will develop its own Dl-740
tractor engine which will help to reduce its cost. After the collaboration, Sonalika will be
French Company will have 20% shares in Sonalika International Tractors Ltd. And will
also have one director in Board of Directors and 90% share part manufactured by the
company.
environmental management system ITI has been awarded ISO 14001 certifications.
SUCCESS STORIES
CMERI Govt. of India Transfers Design and Technology to Sonalika under the
stewardship to Shri L.D. Mittal, Chairman, International Tractors Ltd., has made rapid
strides within a short span of 6 years. It has not only made its presence felt in the Tractor
Industry but has made in-roads into the market share of popular brands. Its valued and
satisfied customers are multiplying and have crossed 63,000 marks.
According to Shri Mittal, this phenomenal growth is the result of hard work coupled with
dedication at all levels. On the top of it, company has never compromised on quality.
This is precisely the secret of success of the company.
Shri Mittal further states "We have been after a class technology so that Indian farmers
get the best value for their hard earned money."
CMERI (Central Mechanical Engineering Research Institute) Govt. of India, which has
many firet to its credit in many fields, has been helping Sonalika a lot in enriching the
Company with technological advancements based on their strenuous efforts and Research
a function was held at the Vigayan Bhavan in New Delhi and Shri Mittal was applauded
for his great contribution in farm mechanization. Shri R.A. Masheikar F.R.S. Director
General, CSIR & Secretary-Govt. of India, Deptt. Of Scientific & Industrial Research
stated that if there were a few more “Mr. L.D. Mittal " the country's face would be
different. Shri Mittal in his short speech thanked the CMERI for the good words attribute
to him and suggested that CMERI should come forward for facilitating air spraying of
inaecticide, improved combine Harvester and mini Tractor. These suggestions are
receiving the attention of scientists across Durgapur and Ludhiana under the supervision
of CMERI. On this occasion, CMERI transferred technology for Sonalika Tractors for all
models ranging from 32 HP to 60.
Sonalika Tractor is marching ahead on the path of success in which CSIR's contribution
is very crucial. Sonalika is the only Tractor in which technology of CSIR, Govt. of India
has been used and which is produced at the ultra-modern plant of global Tractor
Company Sonalika. Resultantly, Sonalika has become the first choice of Indian farmers.
On close observation of the features of Sonalika, one will find that at one hand it is fuel-
efficient; on other hand it has got special position in pulling power. The number of
satisfied and proud customers is increasing day by day and has crossed the figure of
63,000. After all, there is something exclusive and unique so much of prestige in just 7
Years.
Recently, Shri L.D. Mittal, Chairman-International Tractors Ltd. was invited to the
world's biggest farm equipment and tractors exhibition arranged in SIMA fair, France.
This helped the Chairman of Indian Tractor Co. to know and understand about the new
innovations & developments in farm mechanization, which have taken place in the most
advanced countries of Europe. Shri Mittal had also the opportunity to meet and interact
with Experts on farm equipments which facilitated to exchange views and knowledge for
mutual benefits. The new changes and developments which have come off in the Europe
will help technological advancements in Sonalika Tractors in a phased manner.
In this exhibition, sonalika and its global partners Renault Agriculture jointly participated
and put up a grand show by displaying tractors and farm equipment with world-class
features. There was visible enthusiasm in European farmers who developed fancy for
Sonalika as quality product from India with open heart. There were a number of business
be followed up by Sonalika and Renault Agriculture later on.
Kumari Savitri Kunadi H.H. Ambassador of India in France visited the Sonalika- Renault
stall and expressed her happiness with the progress made by the Indian company
Sonalika both in domestic and foreign markets and wished its joint venture with Renault
Agriculture, France a grand success.
The SIMA fair was held in Paris and was part of International Agriculture Week. The
unique thing about SIMA fair is that it highlights all types of farm equipments all types of
farm equipments including Tractors, which are useful for European farmers with latest
technological advancements. SIMA fair has been able to bring together Tractor and
Agriculture Machinery Manufacturing Union and Union of International Agriculture
Machinery Training companies.
This was one of the biggest show and as many as 1500 companies participated from more
than 30 different countries representing 2500 brands. It is expected that more than 2,
00,000 entrepreneurs visited this fair.
On this occasion, India Day was celebrated with all fun and frolic and a programme
highlighting the achievements of India was arranged. This function was presided over by
Kumari Savitri Kunadi HH Ambassador of India was arranged. This function was
arranged. This function was presided over by kumari Savitri kunadi HH Ambassador of
India in France. Shri L.D. Mittal, Chairmen addressed the audience and won repeated
applause from the select people from all around the globe representing agriuclute field.
Shri Mittal said that Sonalika has made name and fame in domestic market of India
within short span of 6 Years and now we are concentrating on world market. He thanked
the authorities for giving him an opportunity to interact with European farmers and
opinion builders.
Others, who were present on the occasion, were Shri G. Povie, President Renault
Agriculture France, Sh. P. Faguer, M.D., RSI and other officials from France and India
including Dy. Director Engg. Export Promotion Council, govt. of India.
Sonalika, the Indian company is destined to do fairly well globally and enquiries/orders
for export have started pouring in.
GOVERNMENT POLICIES
All the agriculture related industries in India have been highly controlled by the
government and the tractors are not an exception to this. The important government
Excise duty
In the past, government has used excise duty as effective tool for controlling the demand
for various types of tractors. The main objective has been to keep the price of small
tractors purchased by marginal/small farmers, at affordable level. But this seems to have
changed now.
than 1800 cc tractors was recovered from higher from higher horsepower segments by
levy of higher excise duty. The lower HP tractors (uptol800cc) and components for them
were totally exempt from excise duty till 1994-95 the introduction of duty on components
and subsequent change in several of MODVAT credit for lower HP tractors adversely
affected the market of the segment in FY96. But this anomaly has been overcome in
1997-98 budget by increasing the excise duty on higher HP tractors from 10% to 13%.
In 1998-99 budget, less than 1800 cc tractor were charged an 8% excise duty so as to
address the industry's long standing demand to claim MODVAT credit on inputted. The
rationalization of excise duty structure in 1999-2000 budge led to an increase, in excise
duty on above 1800 cc tractors (above 30 HP) from 13% to 16%. However,
the 2000-2001 budget has raised the excise duty on the less than 1800 cc tractors from
8% to 16%.
LICENSING
The liberalization process started in 1991 has brought relief to the tractor industry, by
providing free hand in setting up of additional capacities to the existing players and
allowing new players to set up plants. This has resulted in entry of few new players who
were given to commence their operations by mid 1999 with their manufacturing base in
India.
The tractor implements sector, which is very important for effective usage of tractors,
was reserved for Small Scale Industries (SSI). The sector was deserved from SSI list in
1998-99 budget so that the implements can be produced with better design and
technology that can help in farm mechanization. This will help in enhancement of
Bank lending for acquiring tractors is part of the priority sector lending. Any change in
limits for priority sector lending from the current minimum requirement of 40% and 32%
of the net bank credit for domestic and foreign banks respectively will effect the demand
for tractors as nearly 95% of the tractor sales is through credit taken from banks.
The loans given, for tractors by banks is refinanced by NABARD under the head "farm
mechanization". This includes power tillers, harvesters, engines, pumps etc. besides
tractors. But, tractor credit constitutes a major components of the total refinance provided
for farm mechanization. The refinancing policy of NABARD is' laid down on a you
basis and the credit support to tractors is based on the total availability of resources and
SUPPLIERS
The industry is controlled by six major players. The major players are M&F TAFE,
Punjab Tractors, Escorts, Eicher and HMT. The supply of tractors was in tune with
demand leading to a capacity utilization of above 95% in the second half of eighties and
early nineties.
The capacity of tractors industry has increased from 150,300 tractors in FY92 to 337,000
tractors in FY99. The increase in capacity in nineties was brought about by expansion
projects of M&M, PTL and TAFE, which together accounted for 73% of the expanded
In the past few years, the tractor market has moved from sellers market to a buyers
market as competition, from both existing and new manufactures intensified and fresh
capacity was created. This has created a scenario where dealers have been maintaining
higher inventories so as to provide wider choice and immediate delivery to the farmer.
Tractor prices in India are about a quarter of the similar powered tractors, in international
Increased at a pace lower than procurement price of major crops like wheat paddy. For
the corresponding period, farmers are also benefited from improvement in yield per
hectare.
Due to sharp jump in tractor demand in last few years, almost all the players have been
expanding their capacities. The industry is also witnessing entry of international majors
The industry entry barriers like high capital cost, extensive rural distribution network,
suitable tractor technology to meet local conditions, brand awareness and familiarity of
international majors at least for the next three years. For example, the capital cost of a
Greenfield unit with capacity of 20,000tractors per annum is about Rs.2.5 bn. This is
more than twice the capital cost of Rs. 6.2 bn for expanding the capacity by 18,000
New Holland tractors, a 100% subsidiary of New Holland Trqactors started sales of 70
tractor in March 1999, from it recently started plant at greater Noida. The company plans
to release 35HP tractor 1999 .all these models's come with superior technology like oil
immersed disc brakes, synchromesh transmission, support through hydraulic system etc.
the company plans to control costs by increasing indigestions levels from 50%to90%by
end of 1999.
To tackle over capacity problem and to keep the pace of growth, major players are
implementing BPR to control processes and cost of production, PTL is expanding into
south India appointing new dealers, Eicher is entering higher HP segment through a
collaboration etc.
ADVERTISEMENT AND SALES PROMOTION
Advertisement pre-disposals a person favourably for the product / service idea. Making
him to its purchase. Sales promotion takes over at this point. It makes customer take a
favourable purchase discussion by providing one of another kind direct inducement e.g.
discount, price, gift and coupon etc. mostly advertisement is directly concern with sale. It
either inform a pursuit remind about the product service most of time, it is indirect in its
approach has long term perspective for e.g. building -company image, brand image.
Sales promotion is short term product direct approach to an expert and imitates response
more frequent and reporting then sales promotion. Sales promotion is non-recurrent
selling effort. These supplement the advertisement and personal selling display are
Objectives of Advertisement
as to gain its acceptance and approval. Promotion is any communicative activity where
1. Persuasive communication.
2. Tools of competition.
2. Publicity
ITL use following media’s and methods for the purpose of advertising and publicity of its
product.
FILMS
Short advertisements, film-prints in all regional language are available with the company.
These can be' borrowed by the dealers (free of cost) for a specific period of time and
screened in theatres at their own cost. The cost of print (if damaged or lost) will be
PUBLICITY TAPES
Publicity tapes incorporating the message with popular regional film songs, are available
with ITL. If the dealer wants to buy the tapes, the cost will be debited on the cost basis.
HOARDINGS
The company puts up hoardings on behalf of the dealers, every year for which 50%
amount is recovered from the dealers. However, if any dealer want additional hoardings
to be installed, full amount of the hoarding will be debited to the dealers. The dealer gets
WALL PAINTING
The company gets specific number of walls painted for each dealer ever year and 50%
amount is recovered for the dealer. However, for any additional requirement, full amount
of the hoarding will be debited to the dealers. The dealer gets the benefit of name and
BUS PANELS
The company puts up panels on buses on certain routes according to the requirements, the
bears the full cost of these participations for which indirect benefit occurs to the dealers,
however, for participation at regional level exhibition, the dealer has to take sanction
from the Head Marketing, who also sets the upper sanction from the Head Marketing,
who also sets the upper limit of extent of expense. 50% of the total amount (upto the
upper limit) contributed by ITL. Any extra expenditure beyond the upper limit is borne
by the dealers.
POSTERS
10 Nos. each models, colour posters will be supplied to the dealer at the time of his
appointment, free of cost. For any further requirement, the amour will be debited on cost
basis.
LEAFLETS
200 Nos. coloured leaflets of each model are given to the dealer, free of cost at the time
of appointment. Also 50 Nos. coloured leaflets in each models are given free of cost once
a year. Additional quantity as per requirement will be on chargeable basis. Black and
FLAGBS/BLI·NTINGS/BLOCKS/TIN-PLATES/BANN
5 Nos. Flags, 50 Nos. Buntings, 1 -No. Block in each model, 10 Nos each. in Tin-plates.,
2. Nos. Banners are given free of cost, at the time of appointment of dealers. Additional
At the time of appointment of dealer, ITL gives the following items, free of cost:
Marketing department of the company has been divided into four zones Every is being
looked after by a Marketing Manager and every zone has its separate selling staff which
includes senior Marketing Officers and sates men.The organisation of each zone of the
1. ZONE “A”
Marketing Manager
Assistant Manager
-------------------------------------------------------------------------------------
M.O. M.O.
From the above diagram, we can see that Zone “A” has one Marketing Manager, one
Asst. Marketing Manager, four Senior Marketing Officers. Every SMO has two
Marketing Officers (MO) and every MO has some sales men working under him.
2. ZONE "B"
Marketing Manager
Assistant Manager
------------------------------------------------------------------------------------------------
A.M.O. A.M.O
--------------------------------------------------------------------------------------------------
Marketing Manager
Assistant Manager
------------------------------------------------------------
SMO SMO SMO SMO
------------------------------------------------------------
M.O M.O
------------------------------------------------------------
We see that Zone "C" & "D" have same organisation. One Marketing Manager, two Asst.
Marketing Managers, four Senior Marketing Officers Every SMO has two Marketing
Officers and every MO has a few sales men working under him.
DUTIES OF SALES MAN
To help customers in getting loan from the banks for buying the tractor.
1.DEALER'S AID:
In setting season, when dealers are asked to launch sales promotion schemes, if he sells
more than his fixed quota, he is given Rs.500/- as an incentive or award for selling every
marginal unit.
2. CUSTOMER AID
Servicing Camps are organized where old and new tractors are serviced at very nominal
charges by the company's servicing staff. Customers are taught how to keep the tractor in
perfect conditions.
ABOUT PROJECT
This project aims at studying of the marketing habits of the rural people (farmers) to own
tractors (Customer of tractors). It also aims and analyzing the effect of this media habits
MARKETING
Marketing is a social and managerial process by which individuals and group obtain what
they need and want through creating and exchanging products and value with others.
and basic approach to the business problems. Marketing itself is of course a specific
function in the enterprise as far as finances and accounting but the marketing concept is a
opportunity analysis.
programming and implementation and control scanning the Broader environment and
environment and the organization market in turn, provide a basic for developing effective
marketing strategies. The specified target markets are defined, marketing objectives
delineated for each target market and the numerous marketing programmes decision
and controlled. Marketing is being applied in all type of manufacturing and non-
manufacturing organization. On the ground that all organization have marketing
problems that can be solved by application of market theory and practice. Marketing is
designed to render to specify benefits to its implement first, marketing place and great
emphasizes on measuring the needs and desires to target market. Second marketing
industrialized. Since person specializes in producing a particular item he does not supply
directly to himself with many other goods and services that he needs to sustain life.
This is the point where marketing functions enters the economic process. As the
production efficiency increases it may also indicate that marketing is urgently need to
find ways efficiently and effectively for distribution and selling the output.
MARKETING STRATEGY
Marketing strategy defines the broad principals by which the business units expect to
achieve its marketing objective in a target market. It consists of basic decisions on total
marketing expenditure. Marketing mix and marketing allocation. The development and
use of marketing strategy can be relevant for non profitable organizations as well. For
them the objective may be to increase influence, prestige or popularity. The story of the
two universities outlined in the accompanying box is an example of how marketing
achieve its marketing objectives. Companies typically established their marketing budget
at some conventional percentage of sales goals. Companies entering a market try to learn
Ultimately the company should be analyze the work required to attain a given sales
volume or market share and then cost out this work, the result is the required marketing
budget.
Marketing mix is one of the key concepts in modern market theory. It is the set of
marketing tool that the firm uses to pursuer its marketing objectives in the target market.
The most popularized four factor classification of marketing mix tool called the four ps:
These four elements are assumed to be controllable variables that are the marketer
decides what they should be. Such things as budget limitation, industry customs and
Market efforts apart of marketing strategy, has been defined as "the total amount of
company input into the marketing process to suitable sales". A rupee value can be
assigned to this effort by determining the investment made in each of four factors of the
marketing mix. The combined rupee value represents the level of marketing effort at a
given time. The effectiveness of that part is harder to measure usually, it is judged by the
comparison with competitors negatively, by the success of a similar program that spent
less money.
The state of Punjab has the unique distinction of having maximum number of tractors in
the country. Almost all the large Manufacturer of tractor in the state, which results in
tough competition. It is therefore in the fitness of things to study various Aspects of the
There is a mad sample among the companies to increase capacities. Tafe raced ahead it
were churning out 4100 tractors almost, doubled its production in on year. Pti, which was
producing a measly 1800 25 hp tractors in 1985 - 1986, touched 3900 marks next year.
And above all competition has also been accompanied by aggressive marketing.
The tractor industry, down in the dumps only four years ago has patiently moved ahead
and come on top during the Financial year 1990 - 1991 with a growth in sales of 15%.
The dozen old tractors manufacturers have successfully churned out Increased profit
despites the bloating costs of lyres and steels, adding to the overall price of tractor, which
At the rate of 20% per annum. The most important factor in the growth of the tractor
industry has been the money disbursed by banks towards purchase of tractor.
determining the needs and wants to target markets and delivering the desired satisfaction
more effectively and efficiently than competitors. The market has been expressed in
Make what you can sell instead of trying to sell what you can make.
To do all with in our power to pack the customer’s dollar full to value, quality and
satisfaction.
STAGES OF MARKETING
4 .5
4
3 .5
3 S ales
M anag ement
2 .5
2
C us to mer
1 .5 O rientatio n
S ales
1 O rientatio n
P ro d uc t
0 .5
O rientat io n
0
1
CUSTOMER ORIENTATION (MARKETING CONCEPT)
Marketing Concept
I II III IV
Publicity Sales Distribution Sales Office
Manager Personnel Manager Manager
Manager
1 2 3 4 5
Advertising Merchandising Storage & Despatch Transport
through Aids (Sales Packing
various media Promotion)
1 2
Orders Sales
Correspondence records
filling etc. & statistics
Co-ordination of
Physical distribution
problems
Review of literature
The review of literature comprises various studies conducted in the field to marketing in
general and tractor marketing in particular. A few of these have been reviewed here
under.
Brown (1974) said that the good manufacturing companies, which tried to integrate
segments of their market they were affecting, would continue to Ineffectively allocate
and spend their budgets. Money spend on promotions always yielded higher results for a
period extending.
Kapoor and Singh (1975) conducted a pilot study of the marketing planning practices of
Indian companies it was found the marketing concept had not only gained recognition but
were also being practiced in a sophisticated manner. Be old and new concepts and
techniques of marking were in use currently for solving their marketing problems.
Godrej (1976) in his article, marketing of consumer durables has emphasized that
consumer durable marketing is a subject that has not received the attention it deserves.
The article focuses at the various aspects of marketing mix with the respect to consumer
Hanan (1976) suggested that large organizations should be learn from small organization
the small business strategy. He emphasized that marketing consultative selling and
Singh (1983) conducted a survey on the marketing practices of tractors and come to
conclusion that vertical. Diversification helped the tractors manufactures the design the
tractor model according to the customer preferences about the Color, modal and type etc,
as also to segments their market depending on the end use of tractors into two distinct
classed farmers and industry buyers. The manufactures started the low horsepower tractor
to meet the requirement of marginal Farmers and medium horse power tractors to meet
Buckingham (1984) says that the electronic control of diesel fuel injection has become a
hot topic for the tractor Engines and many within the diesel industry predict it will show
up vehicles from tractors to cars. Engineers manufacturers are currently testing electronic
injection systems and research into such system is going on in the companies and
universities.
The market potential depends on population characteristics and economic conditions. The
grouping of these two parameters into permutation and combination results in different
market segments which Could be more meaningful than the traditional method of market
Scott (1986) says that the marketing of equipment like tractors should also emphasize
salvage. The two are related. This is an arena that may not appeal to many dealers, but he
feels that it is very important And can yield positive results for the farmers as well as for
the firm it is a marketing strategy that has worked well for certain organization.
Singh (1986) conducted a survey on nonprime marketing strategies. He maintains that
With increasing availability of similar and non differentiable products at similar slightly
differentiated prices, an otherwise trusted variable like price is Losing its importance to
Forgarty (1989) conducted a survey of tractor imports and came to the conclusion that
Non - multinational companies are picking up steam. South Korea for instance moved for
supplying A few dozen units in 1979 to over a thousand till 1988 and Yugoslavia went
from zero to 1600 in the same period. It is said that in the marketing strategy for the
tractors the old tractors never die, but in may he that the cost of keeping some of them
running has become expensive enough that the alternative of a competitively priced new
unit provided by an independent importer is compelling. Many of the dealers were taking
about have a major franchise, but they are also looking up for a back to basics type that
Bayard (1991) says that tractor manufacturers jealously guard their development
machines and with good reasons. Any major break though in tractor machine assures a
corresponding Leap in market share so it is in their own interest to play their cards close
Gilletal (1993) reported that the annual use of tractor in the state of Punjab is less than
four hundred Hours by a study by Singh and Dhawan (1992). With the expectations of
paddy, and wheat for other crops the tractor use is less than 20 hours per year. This can
be attributed among other factor to non-availability of suitable farm equipment for many
operations for crops production and horticulture. It will therefore, be in the fitness of the
things to accelerate the pace of research of development as well as manufacture an
introduction of need based farm equipment. Important promising farm machine from
Dhawan and Singh (1994) reported that the tractor on an average in India did not find
adequate work fro its rational use and was hardly covering the costs. In spite of it. An
important economy consideration for the purchase of tractor by the farmer was that of the
even increasing price of tractor. The cost of operation was influenced by tractor make,
Horse power, type of operation, now a days people want good spares, brand name, high
The above research studies basically to market strategies and practices, researches in the
area of tractor use, especially relating to the opinion survey of the tractor users are few
and far between. This indicates the existing Research gap in this important area. Hence
The purpose of research is to throw the answers to questions through the application of
scientific procedure. The main aim of research is to find out the truth which is hidden and
which has not yet been discovered as yet. Through each research study has its own
Research Methodology includes the various method and techniques for conducting a
Research. "Research is the systematic design, collection, analysis and reporting of data
Research is, thus, an original contribution to the existing stock of knowledge making for
through the application of scientific procedures. The project must have a specified
Sample Plan
Sampling can be defined as the section of some part of an aggregate or totality on the
Data Collection
Primary data are those, which are collected afresh and for the first time, and thus happen
Secondary sources
Secondary Data are those which have already been collected by someone else and which
already had been passed through the statistical process. The data collected is secondary
This project involved study of various media used for advertisement directly linked with
mainly multiple choice and closed ended with few open ended questions forgetting
maximum information about tractor owner and media, habits and then the satisfaction
level. The sample size was 50 customers. After the collection of data the second step was
analysis of the data. To drop proper influences. The sample chosen by the study of farmer
Sample
is selected for the purpose of representing the population by observing the characteristics
of the sample one can make certain inferences about the characteristics of the population
Tool
A self made questionnaire is consisting of multiple choice, close ended and open ended
questions.
The tool was personally administered to randomly selected 50 farmers who own tractors.
DATA ANALYSIS AND INTERPRETATION OF DATA
0-10 15 30
10-20 20 40
20-30 11 22
Total 50 100
45
40
35
30
25
20
15
10
5
0
0 Acres 0-10 20-Oct 20-30
(Lease)
INTERPRETATION:-
Land owned by the people with max hold over 20-30 acres were 22%, 40% of the people
hold 10-20 acres. 30% of the respondents hold 1 to 10 acres 4% used the land hired by
them.
No 5 10
Total 50 100
Yes
No
INTERPRETATION:-
Out of the same of 50, 90% of the respondents owned the tractor while 10% were not the
No 1 20
Total 5 100
Yes
No
INTERPRETATION:-
Out of 5 non-owner of the tractor 4 of them were planning to buy a tractor while others
did not show any response for the purchase of tractors in near future.
Q 2. B). Which tractor brand you have owned?
ESCORT 4 8.9
TAFE 5 11.11
EICHER 2 4.4
SONALIKA 23 51
FARMTEC 9` 20
TOTAL 45 100
60
50
40
30
20
10
0
HM T ESCORT TAFE EICHER SONALIKA FARM TEC
INTERPRETATION:-
Out of the 45 respondents who owned the max 51% showed the preference for Sonalika
tractors. HMT was by 4.44% while 8.9% preferred Escort tractor. TAFE was owned by
5 % farmers while 4.4% were having EICHER. Another 20% showed preference or had
farmtec tractor.
Ad. 11 22
Price 7 14
All 10 20
Total 50 100
INTERPRETATION:-
Quality/Power of the tractor was attributed as the strength factor for influencing product
contributed a lot the factor of the buy decision according to the sample study. As 44% of
the respondents are affected by the quality of the product. 22 % are affected by
Advertisement alone. 14 % were those whose buying behavior was affected by price and
No 6 12
Total 50 100
Yes
No
INTERPRETATION:-
Out of the sample of 50 respondents, 88% have seen the ad. of Sonalika tractors medias
and there are only 12% who have not seen ad. of Sonalika tractor.
Q 3. A)Through which source are you aware of sonalika’s tractor?
Hoardings 8 16
Dealers 10 20
45
40
35
30
25
20
15
10
5
0
Advertisement Hoardings Dealers Friends /
(Mass Media) Relatives (Word
of Mouth)
INTERPRETATION:-
According to the sample study, maximum number i.e. 40% of the respondents came to
know about Sonalika. Tractor through mass media and 24% from the relatives and friends
20% of them were by the dealers and 16% through hoardings . So advertisements on
Magazine 2 4
Newspaper 22 44
50
40
30
20
10
0
T.V Magazine Newspaper Outside
INTERPRETATION:-
This is the multiple answer question. One had seen the advertisement of Sonalika of the
recollection was from the newspaper i.e. 44% which produced to be the most effective
one. Outside hoarding, banners, tinplates, fairs or melas, advertisement on wheels were
viewed by 24 5 of the respondents. The ads on T.E were viewed by 28% while magazine
DD Metro 2 14.29
LASHKARA 2 14.29
60
50
40
30
20
10
0
DDI DD Metro LASHKARA ETC (Punjab)
INTERPRETATION:-
The survey revealed that 57% of the respondents matched advertisement on DD-I and a
very small percentage of respondents are using other channels i.e. DD Metro, Lashkara,
Desh 1 50
Sarita 0 0
A&M 0 0
India Today 0 0
Total 2 100
60
50
40
30
20
10
0
Kisan Desh Sarita A&M India
Patrika Today
INTERPRETATION:-
This was revealed during the survey that 50% of the respondents source of knowledge for
gathered it from the Desh Advertisements of appearing in A & M and Auto India were
50
40
30
20
10
0
Punjab Danik Tribune Times of Ajit
Kesri Jagran India
INTERPRETATION:-
Newspaper as a source for advertising tractors is widely used in Punjab. It was revealed
during the study that out of the 22 newspaper reader 11 of them has seen the Ad. in
Punjab Kesri, 18% in Danik Jagran, 27.80% of them had seen in Ajit . Only 4.16% of the
reader has seen the advertisement in Tribune. The survey has also revealed that
advertisement regarding tractors appearing in the Newspapers such as Punjab Kesir,
Danik Jagran and Ajit has widely reached and influenced the tractor customer.
Newspaper a advertising media is an important source of advertising for the customer of
tractor in Punjab.
ad ?
Attributes No. of Respondents Percentage
Picturisation 12 24
Slogan 7 14
Models 6 12
Clarity of message 5 10
Truth fullness 10 20
Personality 3 6
Image building 2 6
Total 50 100
30
25
20
15
10
0
Picturisation Slogan M odels Clarity of Truth fullness Personality Image
message building
INTERPRETATION:-
Out of 7 attributes and out of the respondents, 24% of the responses was for picturisation
which was the highest response. Than is for the truth fullness i.e. 20. The response for the
clarity of message is 10% and slogon for 14%. The attribute of models and clarity of
message were closely followed. Models got 12% of the total response. Personality image
Average 46 23
Below average 8 4
50
40
30
20
10
0
Good Average Below average
INTERPRETATION:-
46 percent of the respondents rated their liking for advertisement regarding tractors as
good. Similar percentage of respondents rated its average. But 4% of the respondents
Magazine 2 4
Newspaper 22 44
Radio 12 24
Total 50 100
50
40
30
20
10
0
T.V Magazine Newspaper Radio
INTERPRETATION:-
The survey has revealed that 28 percent of the respondents devoted their maximum time
for watching television, 44 percent of the respondents have maximum taste for
newspaper, and 4 percent of the respondents devoted most of their time for reading
magazine and 24 percent of the respondents devote maximum time for radio.
1) On the basis of survey it was found that most of the farmers have their on land for
farming. Most of them fall in the range of 10-20 acres of their own land i.e. 40 %
of farmers.
2) It was found that maximum no. of farmers have their own tractors i.e.
90 %.
3) And out of these 51 % has owned sonalika’s tractor that shows the good customer
base of sonalika.
4) It was observed that Tractors’ quality and advertisement has a lot of affect on the
buying decision of farmers.
5) Most of farmers were aware of the sonalika tractors and mass media act as a main
source for this i.e. 40 % of respondents got aware of tractors through mass media.
7) It was found that the picturisation and truthfulness of the ads that attracts people
to see the ads. And sonalika’s ads are effective on this basis that 46 % of
respondents liked it.
8) On the basis of survey it was found that sonalika’s ads are effective to attract
customers but not up to that extent.
9) On the basis of survey it was found that Newspaper, T.V., and radio are the
sources that represent media habits of the farmers.
Suggestions:
Organization of full service camps and demos will be more effective other
media's. Direct contact program will yield more promising results the co should
Participation in rural prestigious & famous fairs & melas would be the best media
to convey messages.
Along with this one important program can be through sponsorship of rural
Keeping in view the increasing competition, the company should increase its
warranty period from one year to two years at least. This would attract more
customers.
iTL's tractors are generally used in Punjab only and to little extent in Haryana,
Rajasthan, Himachal. It should make every possible effort to improve its sales in
other states also like Andhra Pradesh. Gujarat, Madhya Pradesh, J & K. U.P., etc..
progress of the company. For the market needs for further progress of the
company. For the market division, the importance of the computer is even greater
and aggregates.
iii) Sales tax returns and product vise income, contribution analysis by
iv) With the help of computer, time wastage will be less. The management
would be able to take decision in the shortest possible time with more efficiency.
v) Power staff will be beaded to keep the record so that expenditure will
It was observed that sonalika has used various marketing strategies (or promotional
strategies) like films, Publicity tapes, hoardings, wall paintings, bus panels, posters,
leaflets, mass media, etc. Though all the promotional strategies of sonalika are effective
to some extent but lot of work yet to be done to attract a large customer base.
Presently media source like newspaper, T.V., radio, magazine, etc. attracts consumers but
to attract large consumer base sonalika requires more competitive efforts. As sonalika’s
consumers are mainly farmers or villagers those are not much literate company needs that
much efforts to attracts these by its strong personal interaction. For this fairs, exhibitions,
personal dealings, etc can be effective.
QUESTIONAIRE
To check the Advertisement-effectiveness of Sonalika Tractors
Name : __________________________________
Address : ________________________________
Age : ___________________________________
Education : Below matric
Matric
Graduate
Income Rs. 0-60,000
Rs. 60,000-150,000
Rs. 150.000 and above
Ques.1. How many acres of land do you have for farming?
0 Acres (on lease) 0-10 10-20
20-30
(2) Do you have your own tractor?
Yes No
(a) Are you interested to buy tractor in near future?
Yes No
(b) Which tractor brand you have owned?
HMT ESCORT TAFE
EICHER SONALIKA FARMTEC
(c) Which factor affects your tractor buying decisions?
Quality/ Power Ad
Price All
Q3. . Are you aware of the advertisement of Sonalika tractors?
Yes No
(a) lf yes. Through which source are you aware of sonalika’s tractor?
TV Magazines
Newspapers Outside
(c) On which TV channels have you seen the Ad?
DDI DD Metro
Kisanpatrika Desh
ad ?
Picturisation Slogan
Truthfulness Personality
Image building.
Good Average
Below Avg.
Q6. What are your media Habits
Radio
Q7. What are the suggestions regarding advertisement for improving the
product / company's Images?
BIBLIOGRAPHY
References:
2. Kotler Philip, Keith Kohn Cox, Marketing Management & Strategy, Prentice Hall,
Delhi, 1980.
3. Parry. Mark Edward, Strategic Marketing Management, McGraw Hills, US, 2001
1. www.sonalika.com
2. www.cii.org
3. www.punjabdirectory.com
4. www.fotosearch.com
5. www.wikipedia.com
6. www.bsnlpunjab.co.in