Mahindra Tractorrura l s t ra tegy &

exper ienceSAMBIT MISHRA

PGDM-ABPM-43

• Bulldozers were imported for land reclamation and cultivation in mid-1940s.

• In 1947 central and state tractor organizations were set up to develop and promote the supply and use of tractors in agriculture.

• Local production began in 1961 with five manufacturers (Eicher, Gujarat Tractors, TAFE, Escorts, M&M) producing a total of 880 units per year.

And by now one third of the world’s Tractor production is in India.

There are currently 14 players in the industry.

• Mahindra & Mahindra is the leading player in the industry. • The US $6.7 billion Mahindra Group is among the top 10 industrial houses in

India.• Mahindra & Mahindra is the only Indian company among the top tractor brands

in the world.• The US based Reputation Institute recently ranked Mahindra among the top 10

Indian companies in its Global 200: The World's Best Corporate Reputations list.• 42% of Indian Farmers using tractor prefer M&M.

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SALES PROMOTION Good communication system and customer relations service. Gifts to loyal customers. Offering gift with the product (LIVE). Participation in marketing fair in rural areas. Free service coupon warranty. Fuel check up camp.

ADVERTISEMENT TOOLS

Banners and Posters. Printing and calendars. Catalogue advertising. Window display. Pamphlets advertising.

Construction of circles. Gift bags/ carry bags. Anniversary functions. News Papers. Wall Paintings.

SOURCES OF AWARENESS

T.V.Adds 4%

wall painting36%

Magazines6%

Others54%

MARKETING STRATEGY• Company mechanics go around to villages twice a week to

provide after-sales service, an important factor in the decision to purchase consumer durables.

• It was clear that the availability of spare parts was very easy.• The engine was an instant hit because rural mechanics found it easier

to service, since locals were very familiar with the Mahindra Jeep engine.

• Claiming itself India's No. 1 Tractor manufacturer.• Excellent mileage leaving others far behind,

• Farmer's choice, of tractor size, is a compromise, between, the utility of the tractor, for multiple uses, including, haulage and, its price.

• M&M regularly organize service camps in rural areas. They invite tyre, battery, fuel injection and other component suppliers to participate.

• Tractor Finance for Agricultural Purposes by Kotak Mahindra.

• Model names and tags suiting rural India.

CONCLUSIONFrom the above it is clearly found that the performance of Mahindra and Mahindra tractor in this tractor market is very encouraging. And the business strategy is very highly competitive and innovative.

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