vanraj tractors(08,43,52)
Post on 19-Jan-2015
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VANRAJ TRACTORS CASE ANALYSIS
PRESENTED BY;• OLIVIA DUTTA(08)• PRATYUSH MANI TRIPATHI(43)• SANDEEP SINGH(52)
introduction
• M/s Pramal Farmatics Pvt. Ltd comp.• VANRAJ-NEW 10 HP TRACTOR.• Central motor vehicle rule (CMVR)• Bhanjibhai Nanjibhai Mathukia of Gujarat. • Target market
Tractor industry in India
• Third largest gross cropped area but highly fragmented.• High growth rate-World’s largest market.• Farm mechanization- total agricultural production.• Tractorization - a requirement not a substitute.• Non-availability of right kind of tractors to match farmer’s
needs.• Northern part of the country requires lower horsepower
tractors.
Drivers of the tractor demand
• Commercialization of agriculture.• Heavy dependence on monsoon.• High level of govt. support. • Obligations for financial institutions.• Multipurpose.• A symbol of prosperity.• Commercial usage.
CRITICAL ISSUES
• Dilemma of targeting and positioning.• Acute segmentation requirement.• Sales and revenue growth….accurate???• Small is beautiful..is it???
POLITICAL
ECONOMICAL
SOCIAL
PEST ANALYSIS
SEGMENTATION• DEMOGRAPHIC SEGMENTATION
- VANRAJ focused on small and medium farmers. ( large no. of farmers in this segment doesn’t own a tractor AND ARE POTENTIALS FOR MINI-TRACTOR SEGMENT )
- niche in horticulture segment ( farmers have large land holdings.)• BENEFIT SEGMENTATION
- single piece casting tractor(three wheel convertibility, spraying pesticides, power take-off point, transportation need, compatible with farming instruments)
- cost benefit (fuel efficient, low maintenance cost, higher longevity, less fuel consumption, low initial cost)
• PRODUCT SEGMENTATION• GEOGRAPHIC SEGMENTATION.
TARGETING
MULTI- SEGMENT TARGETING
POSITIONING• Benefit or attribute (A “Single piece casting tractor” )
• Quality and price (versatile technology, affordable price)
• Competition ( Vanraj could perform all functions of big tractors, durable than Chinese tractors)
.
strength weakness
opportunity threat
• Huge potential market.• Low on fuel consumption-cost advantage.• Economical.• Simplified design and low maintenance
requirement.• Small in size but high on power.• Supports multi functions.• First mini tractor with POWER TAKE-OFF.• High on convenience.
STRENGTH
•Research and development.
•New product in the market
•Increase in price of steel.
•General perception-high power tractor preference.•Low on ground clearance.
weakness
• No big players in “mini tractor segment”.• India has only 8 tractors per thousand hectares
of land.• Government support for carrying various
operations in agriculture.• Small farmers still not served with technological
advancements.
opportunity
• Huge competition from local players.• Existing players have a good market capture.
• Failure of proper positioning may arise.• Already existing Mahindra Yuvraj-15 HP.
threats
RECCOMENDATION
• Small farmers-perfect target but keep the soil type segmentation in mind.
• Position carefully-not as cheap brand but economical and cost effective brand.
• Educate customers through extensive promotion thorough various channels.
• Increase in ground clearance & speed.• Make it more cost effective if plan to fight with new
strong entrant in this category-HMT.• Target horticulture farms more than acute
agricultural crops.
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