PROJECT REPORT ON

RURAL CONSUMER BEHAVIOUR TOWARDS THE

FARMTRAC TRACTORS, BATHINDA (PUNJAB)

SUBMITTED BY: Lakhdeep Singh MBA (IC) 8TH SEM Roll No. 418

PUNJABI UNIVERSITY SCHOOL OF BUSINESS STUDIES GURU KASHI CAMPUS TALWANDI SABO (BATHINDA)

PREFACE
The thrust of this research report is to evaluate the marketing of FARMTRAC Tractors in rural areas. To embark on this task, the research focused on rural consumer and its satisfaction regarding Tractors. A total of 100 consumers from rural areas of Bathinda surveyed using structured questionnaire. The results show the respected results associated with product. Details of the findings and their implications were discussed.

EXECUTIVE SUMMARY
As commercialization of agriculture grew in intensity in the mid to late 1800s the British Raj and the local legislatures and provinces began investing in agricultural development through support and establishment agricultural research farms and colleges and large scale irrigation schemes yet the level of mechanization was low at the time of independence in 1947. The socialist oriented five year plans of the 1950s and 60s aggressively promoted rural mechanization via joint ventures and tie-ups between local industrialists and international tractor manufacturers. Despite this aggressiveness the first three decades after independence local production of 4-wheel tractors grew slowly. Yet, by the late 1980s tractor production was nearly 140,000 units per year and by the late 1990s with production approaching 270,000 per year, India over-took the United States as the world's largest producer of four-wheel tractors with over 16 national and 4 multinational corporations producing tractors today. Despite these impressive numbers FAO statistics estimate that of total agricultural area in India, less than 50% is under mechanized land preparation, indicating large opportunities still exist for agricultural mechanization

1945 to 1960
War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid 1940's. In 1947 central and state tractor organizations were set up to develop and promote the supply and use of tractors in agriculture and up to 1960, the demand was met entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.

1971 to 1980
Six new manufacturers were established during this period although three companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. Escorts Ltd. began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Credit facilities for farmers

continued to improve and the tractor market expanded rapidly with the total in use passing the half million mark by 1980.

1981 to 1990
A further five manufacturers began production during this period but only one of these survived in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2 million. Then India - a net importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa.

1991 to 1997
Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in India. By 1997 annual production exceeded 255,000 units and the national tractor population had passed the two million mark. India now emerged as one of the world leaders in wheeled tractor production.

1999 to Present
Facing market saturation in the traditional markets of the north west (Punjab, Haryana, eastern Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000. Manufacturers scrambled to push into eastern and southern India markets in an attempt to reverse the decline, and began exploring the potential for overseas markets. Sales remained in a slump, and added to the market saturation problems also came increased problems of "prestige" loan defaults, where farmers who were not financially able took tractors in moves to increase their families prestige. There are also reported increased misuse of these loans for buying either lifestyle goods, or for social functions. Government and private banks have both tightened their lending for this sector adding to the industry and farmers woes. By 2004 a slight up tick in sales once again due to stronger and national and to some extent international markets. But by 2006 sales once again were down to 216,000 and now in 2007-08 have slid further to just over 200,000.

PROJECT UNDERTAKEN BY ME
The project studied by me in Indian Tractor Company, Bathinda was Rural Consumers Behaviour Towards Farmtrac Tractors commenced at Indian Tractor Company, Bathinda It helps to make aware company regarding the various aspects of brand preference performed at regular basis to cement.

HOW IT WAS UNDERTAKEN

A survey was conducted by me among the Rural Consumers of Tractors in Bathinda. During the survey I tried my best that more and more questionnaire to be filled from the consumers so that to conclude the results gracefully. I was also appreciated by the support of the project guide and Managing Director of Indian Tractor Company, Bathinda, who guided me the basic fundamentals of Tractors marketing performed by the company.

INTRODUCTION
It is common knowledge that FY09 was a difficult year for Indian agriculture industry. The spectacular growth phase from FY03 to FY08 slowed down and the global agriculture markets witnessed one of the worst slumps ever. But there have been several lessons and learnings from this slowdown, which are worth analysing. Although, majority of these lessons have been on the efficiency and cost management front, one of the most important learnings on revenue generation has been the need to diversify, both customers and products, and the growing importance of focus on niche markets.

Rural India is one such niche agriculture market which is generating opportunities and has helped to insulate players from the recent slowdown. This has been possible because of the difference between urban and rural lifestyles and consumption patterns.

While agriculture has dominated the Indian rural sector for decades, lately, there has been a shift towards agricultural services and other sectors. OEMs like Maruti Suzuki and Hero Honda have performed relatively better than their peers, and a part of this success is attributed to their successful penetration of the rural market.

COMPANY HISTORY
1947 - After partition the Registered office of the Company was shifted from Lahore to New Delhi. The name of the Company was changed from Escorts (Agents) Pvt. Ltd., to Escorts Ltd. upon its conversion into a Public company.

1959 - The Company was Incorporated on 21st December, at Lahore. The Company manufactures motor cycles, tractors, automotive parts, Railway shock absorbers, agricultural implements, X-rays equipment, heating elements, etc.

- The Company has been functioning as a representative of well-known foreign manufacturers like M.A.N. Company of the United States, Massey Ferguson of the United Kingdom and Canada and several others.

- The Company has an all-round sales and service organisation and has put up in conjunction with Garden Reach Workshops, Calcutta, a marine service base for servicing ocean going vessels equipped with M.A.N. promulsion and auxiliary engines. The Company has a network of all-India dealers for sale of products manufactured by itself and by its subsidiaries.

- Capital structure reorganised. Equity and `A' Equity shares converted into one class of Rs 10 each. 200 Prefshares were subscribed for. 2,000 Pref. and 17,500 No. of Equity shares allotted to M/s. Mahle Komm-Ges, West Germany, against supply of machinery and technical know-how. The remaining shares issued as rights. The new pref. shares redeemable after 5 years from the date of issue at the Company's option.

1960 - The Company commenced the manufacture of pistons and established At Bahadurgarh, near Patiala, in collaboration with Mahle Komm-Ges Bad Constatt, West Germany.

- The Company undertook a phased expansion of the installed capacity of pistons from 7,21,000 to 10,80,000 numbers per annum and the installed capacity of piston pins from 6,60,000 to 9,90,000 numbers per annum.

1962 - The Company commenced commercial production of X-ray equipment, railway shock absorbers and heating equipments in technical collaboration with the Westinghouse Trading Co. (Asia) Ltd., New York, Eheimmetall GmbH, West Germany and Eltra K. G., West Germany respectively.

1968 - 1,229 Pref. shares in 1968 and 336 Pref. shares in 1969 subscribed for. In Dec. 1969, 580,608 Bonus Equity shares issued in prop. 1:4. 25,000 9.5% `A' Pref. shares offered to public in Aug.1969 (redeemable on 15-8-1981).

1970 - 580,608 Right Equity shares issued at a premium of Rs 4 per share in the proportion 1:5.

1973 - The Company undertook to set up a 100% export oriented unit for the production of X-ray equipment in the Santacruz project area, in collaboration with Compagnie General de Radiologie who brought over Westinghouse Manufacturing Company, under the name CGR India Ltd., Was incorporated

1974 - 17,41,824 Bonus Equity shares issued in the proportion 1:2.

1977 - 31,35,283 Bonus Equity shares issued on 31-12-1977 in prop. 3:5.

1978 - The following contracts were secured for execution (i) Farm implements manufacturing plant, (ii) Bicycle assembly plant and (iii) Raw material sold to support PVC plant.

1979 - The Company concluded an agreement with Andhra Pradesh Scooters Ltd., to produce Rajdoot motorcycles in their plants at Hyderabad for distribution in Southern States. The Company was to undertake, in due course, production of scooters for Andhra Pradesh Scooters Ltd., for distribution in Northern States.

1980 - A new tractor model Escort-345 was introduced in the first quarter of the year.

1990 - The Company privately placed with financial institutions 35,00,000-14% secured redeemable non-convertible debentures of Rs 100 each. The debentures are redeemable in three equal instalments on the expiry of the 6th, 7th and 8th years from the date of allotment of the debentures.

1994 - The new products i.e., 3 cylinder engine tractor and a 50cc Moped were launched.

1995 - Escorts 40 H.P. and two models of Farmtrac, VIZ 50 and 60 H.P. tractors were introduced. The Company combined all synagestic product activities in Escorts group of companies into independent and autonomous entities.

- Escorts Tractors Ltd. was merged with the company effective 1st April. The shareholders issued 3 equity shares of the company for every two equity shares of erstwhile Escorts Tractors Ltd. Accordingly 227,75,452 No. of equity shares of the company was allotted.

- Escorts JCB Ltd., Escorts Class Ltd., Escorts Automotive Ltd., Escorts Herion Ltd., Escorts Communications Ltd., Escorts

1996 - The Company proposed to set up a joint venture company with equity participation from Mahle GmbH (Germany). Piston manufacturing activity of the company was proposed to be transferred to the said joint venture company.

- The Company has decided to form a joint venture to manufacture shock absorbers. Company is at advanced stage of negotiations with M/s. COFAP of Brazil.

- Company has decided to Spun off Escorts Hospital & Research Centre into a seperate corporate entity.

- The Escorts Employees Ancillaries Ltd. manufactures carburettors presently catering to the needs of Rajdoot motorcycles. More components like nipples, spokes, etc., were being added with technical know-how from Japanese manufacturers.

- 56,56,381 No. of equity shares allotted on conversion of warrants at a price of Rs 35 per share. 1,24,059 No. of equity shares allotted on conversion of warrants issued to the shareholders of erstwhile Escorts Tractors Ltd. at a price of Rs 33.33 per share.

1999 - Escorts Ltd, the second largest tractor manufacturer in the country, is set to launch its new tractor, Farmtrack 45, in the US next month after a silent entry in the domestic markets in August last. - The fall in profits is mainly due to the labour strike which lasted for 70 days and resulted in production loss.

2000 - The Company has approved the proposal to divest 24 per cent equity in Escorts Yahmaha Motor Ltd (EYML), a joint venture between Escorts Ltd and Yamaha Motor Co. (YMC), Japan, manufacturing a wide range of motorcycles in India for the domestic market and exports.

- The Company has launched Esconet Services Limited. This company is a 100% subsidiary of Escorts Limited.

- The Company has launched its wheel type crop harvestor.

- ICRA has downgraded the rating assigned to the Rs 75-crore NCD programme of Escorts Ltd. from `MAA' to `MAA+'. ICRA has retained the`A1+' assigned to the Rs 75-crore commercial paper programme of EL.

- Yamaha Motor Escorts Ltd. the joint venture between Yamaha Motor Co. Ltd. of Japan and the Delhi-based Escorts group, has launched a new 100cc four stroke motorcycle (Crux).

- The Company will be launching tractors with higher horse power in the range of 60hp - Farmtrac 70 - by end of December, in a bid to push

its market share to over 22 per cent. 2001

- On June 13th Escort withdraws from Yamaha JV. Yamaha set to buy Out Escorts share in their Indian joint venture, by June 30, Yamaha India becomes the first 100% subsidiary in Asia for the Japanese motorcycle company.

- The Rs 3,200-crore, Delhi-based Escorts Group has launched iServ India Solutions Pvt Ltd, a wholly-owned subsidiary with services to address the demand for information technology (IT) infrastructure related corporate solutions.

2002 -Escorts Ltd on July 12, 2002 announced the divestment of its equity in Escorts JCB Ltd & Escorts Class Ltd in favour of its joint venture partners, J C Bamford UK and Claas (Germany) respectively.

-Escorts Ltd has entered into an agreement to sell its entire 60% equity holding in Escorts Class Ltd for a consideration of 13.2 million Euros (approx. Rs.63 crs as per the current exchange rates).

-Escorts Ltd has informed BSE that Mr Mantosh Sondhi, Director of the Company has expired on October 29, 2002.

2003 -Mr Jahar Sengupta, Director of the company expires.

-Punjab Agro Industries Corporation signs a Memorandum with Escorts Ltd to undertake contract farming.

-Escorts successfully implements Oracle e-biz suite to increase the effeciency.

-The company entered into an agreement with UCO Bank, to provide 100 per cent finance to farmers buying tractors.

-Escorts Ltd sells off its stake in Escorts JCB

2004 -Escorts Boards decides to sell holdings in mobile telecom subsidiaries to Idea Cellular

-Escorts Ltd has informed that Mr. Anil Nanda has ceased to be Managing Director of the Company. He will, however, continue to be a Director and Vice Chairman of the Company.

-Escorts Ltd has tied up with Bank of Baroda, Indo Farm Tractors & Motors Ltd to beef up agriculture lending

- Anil Nanda, vice-chairman of Escorts and chairman of Goetze, makes foray into real estate business in which he is investing in his personal capacity.

2005- NOW

-Escorts wins .5-m tractor order from Ghana

-Escorts Ltd has acquired its Polish joint venture partner, Farmtrac Tractors Europe

-Escorts' US subsidiary teams up with SAME Deutz-Fahr Italia

-Escort India is set to manufacture tractors in Bangladesh through a joint venture with the Nitol-Niloy group. incorrect information.

The last but the most important point to that survey was carried through Questionnaire and the Questions were based on perception. Most important is positioning. But there may be certain aspects not taken into consideration. are the limitations of the study so that the findings of the study may be understood in their right perspective. The result of this research cannot be termed as making a fair representation of the perception of the population. Study was confined to the Bathinda city. Language problem was there as some of the respondents facing problem while filling the questionnaire in English. Sample size taken was 100 respondents, the result might have varied had there been a larger sample size. 4. COMPANY PROFILE ESCORT ( FARMTRAC) Farmtrac series from Escorts Ltd. has been the revolution in the Indian farming and It is very much possible

agriculture sector since its development. The series is a new definition for power and status which are also the values of this series.

The tractors in this series are featured with a powerful engine,transmission choices, powerful PTO, effective braking system, quick response hydraulics and excellent ergonomics besides many other features.

The Farmtrac brand was created by the Escort Group of India for their tractors. Prior to the use of the Farmtrac brand, Escorts built tractors for Ford. In 1998, Escorts purchased Long Agribusiness in the United States and used it to import the Farmtrac line. Farmtrac North America entered bankruptcy in 2008 and was purchased by Montana Tractors.

RURAL VS URBAN MARKETS

Lets look at the various factors which differentiate the rural market from a typical urban market. First and foremost is the lower level of average income. If one were to segment the entire population in five equal parts based on average annual income, the highest income strata in rural earns only half as much as the highest income strata in urban areas. Further, the ratio of earningmembers-to-dependants is comparatively lower in rural areas, which translates into a reduced disposable income per household. Rural is characterised by a different-than-urban purchasing pattern.

Maximum expenditure is done around the harvesting season when the farm produce is sold. On account of this seasonal nature of agricultural earnings, the ability of rural consumers to pay back loans is lower; therefore rural customers would typically prefer to buy without using credit in the rural market.

Owing to the lower income and even lower disposable surplus, customers prefer products at the lower spectrum of the portfolio. The need for value-for-money offerings is intense and the brand does not get any significant premium in contrast with the current urban market where customers are more brand conscious. There is also a historical preference towards domestic brands since the current level of awareness of global products and information pertaining to them is relatively low. Haats and melas, mandis and word-of-mouth publicity are the usual channels of communication for product promotion in rural areas, whereas television and the print media are the primary means of advertising in the urban market.

Rural markets have continued to grow in the last two years when the traditional urban markets were under the pressure of liquidity crunch, higher finance cost and a weak income outlook leading to weakening of demand. But in urban areas tractors are use only commercial purposes not for the agriculture . So , it is very rare in urban areas that a person purchase a tractor for personal motives.

RURAL INDIA: AN ATTRACTIVE DESTINATION

Having outlined the differences between urban and rural, some of the reasons why rural segment is gaining prominence include: Market Size: The strongest point about the rural market is its huge size. A total population base of more than 750 million demonstrates its sheer potential. Growing income levels: In addition to the size, there has been a considerable improvement in the income levels in rural market. According to estimates, the percentage of households earning less than $1 was as high as 96 percent in 1985, which is estimated to come down to 29 percent by 2025. Similarly, the percentage of households earning within $2-5 is expected to increase from one percent in 1985 to 20 percent by 2025.

Among various reasons leading to this increase in the income levels in rural areas, the increase in Minimum Support Price by the Government has been a major contributor. For instance, price of wheat has risen to Rs 1,000 per kg in 2007-08 from Rs 630 in 2003-04.

In addition to this, National Rural Employment Guarantee Scheme has also helped uplift the living standards of people. The scheme guarantees 100 days of employment (in a financial year) to every rural household that volunteers to participate and has resulted in a rise in minimum wages in many States, with the average wage rise being around 32 percent.

Credit availability: Among the structural reasons, availability of finance has been an important contributor for the growing rural demand. Over the years, the Government has taken various steps to provide rural areas with a strong credit structure. Regional Rural Banks (RRBs) have become a crucial part of the rural credit structure in India. India currently has around 190 RRBs with more than 14,000 branches. In addition, schemes such as the Kisan Credit Card (KCC) aim to provide credit support to farmers in rural areas.

Infrastructure development: Infrastructure development needs a special mention and is the key to narrow the urban-rural divide in the country. Currently, 60 percent of the villages are connected with road networks. As a part of the Eleventh Five Year Plan, the Government plans to construct 130,000 kilometres of new rural roads and has earmarked around 30 percent of the total public investment for rural infrastructure development. The Pradhan Mantri Gram Sadak Yojana (PMGSY) aims to connect all villages with a population of 500 and above (250 in the case of hilly and desert areas) with all-weather roads. The target is to construct 146,000 kilometres of rural roads and upgrade another 196,000 kilometres.

SUCCESS STORIES
The opportunity is big but so are its challenges. Achieving success in this segment requires intense research coupled with smart marketing and distribution and of course the right pricing strategy. Several players are already on the right road to market success.

John Deere has been the most effective player in the industry in tapping the opportunity. It started with creating a separate marketing division for this market and has launched a special scheme, called Panchayat scheme, to cover the village Sarpanch (head of local governing body), teachers in Government institutions, etc. The idea was to make additional sales but more importantly, to secure an opinion-maker in its favour, which would henceforth become a brand ambassador of John Deere for other potential tractors buyers in the villages.

In order to communicate to and attract potential customers, various types of melas (mass events) were organised. While some events such as the Gramin Mahotsava are conducted round the year, others are organised near the harvesting season to utilise the cash generated from farm sales. To maximise the coverage in a cost-effective measure, a full-fledged dealership was not viable. There was a need to open smaller offices which could have been connected with the primary dealership and could have channelised the sales leads. John Deere has been able to cover more than 200 additional cities using such smaller enquiry counters. In addition to above, there have been initiatives like tying up with ITCs agri-business division, e-Choupal, to market its products wherein products are being displayed at these counters.

Escort recently launched a marketing initiative, Escort Utsav, in rural areas of Punjab and Andhra Pradesh. The initiative is aimed at building Escorts brand visibility and creating awareness about the loans and schemes offered by the company.

WAY FORWARD
While there is clearly a significant market opportunity over the long run, considerable risk appetite and effort are needed to realise the potential. In conclusion, it takes a lot of effort to put in place various enablers that are required to convert the challenges in rural markets into opportunities.

So far, the players have been marketing their lowest-cost product in this market but not one is a rural-only product.

Dependency on the monsoon is also very high and the current rainfall deficit may dampen the rural market demand.

The first five months of FY10 have been very encouraging in terms of sales volume and growth. There has been a revival of demand in metros and urban area and there is a sense of growing optimism across all segments. In addition, there are predictions by National Council of Applied Economic Research (NCAER) according to which growth in agriculture sales in rural markets is expected to exceed the growth in urban areas in FY10 and that makes it big enough a reason for players to sharpen their focus on this niche market.

RURAL CONSUMERS BEHAVIOUR TOWARDS AGRICULTURE TRACTORS: A STUDY OF BATHINDA

SIGNIFICANCE OF THE STUDY

Significance of the study is to analyse the popularity of large tractors in the Rural areas. Various large tractors are their in the market like swaraj 855, john deere 5310, farm trac 60, sonalika 750,Mahindra arjun 605 di etc. We have examine their potential and usage with the views from the consumers.

LIMITATIONS
Nothing is perfect in this mandate world and this study is no exception. Given below are the limitations of the study so that the findings of the study may be understood in their right perspective. The result of this research cannot be termed as making a fair representation of the perception of the population. Study was confined to the Bathinda city. Language problem was there as some of the respondents facing problem while filling the questionnaire in English. Sample size taken was 100 respondents, the result might have varied had there been a larger sample size. It is very much possible that some of the respondents may Farmtrac series from Escorts Ltd. has been the revolution in the Indian farming and agriculture sector since its development. The series is a new definition for power and status which are also the values of this series.

5. RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. The word research has been derived from French word Researcher means to search. FRANCIES RUMMER defined Research: It is a careful inquiry or examination to discover new information or relationship and to expand or verify existing knowledge. Research is the solution of the problem, whether created or already generated. When research is done, some new out come, so that the problem (created or generated) to be solved.

OBJECTIVE
To study the Agriculture Tractors market To study the Large Tractor market To study the reason for switching to different model of tractors and the features of large tractors in rural areas.

RESEARCH DESIGN: Research Design is the conceptual structure within which research is conducted. It constitutes the blueprint for collection, measurement and analysis of data. The design used for carrying out this research is Exploratory, Descriptive and Diagnostic. DATA TYPE: In this research the type of data collection is Primary data Secondary data

DATA SOURCE: The sources of collection of secondary data are: Questionnaire Books Websites Magazine

SAMPLING PLAN: It is very difficult to collect information from every member of a population .As time and costs are the major limitation that the researcher faces. A sample of 100 was taken the sample size of 100 Rural consumers were selected on the basis of convenient sampling technique. The individuals were selected in the random manner to form sample and data were collected from them for the research study.

SAMPLE UNIT: SAMPLE AREA:

100 Rural Consumers (FARMTRAC Consumers) Bathinda

ANALYSIS AND INTERPRETATION: Data collection through questionnaire and personnel interview resulted in availability of the desired information but these were useless until there were analyzed. Various steps required for this purpose were editing, coding and tabulating. Tabulating refers to bringing together similar data and compiling them in an accurate and meaningful manner. The data collected by questionnaire was analyzed, interpreted with the help of table, bar chart and pie chart.

6. DATA INTERPRETATION AND ANALYSIS

1. Age Group Table 1: 20-30 Years 30-40 Years 40-50 Year 50 Above 26 43 21 10

Graph 1:

50 Above 10% 40-50 Year 21%

20-30 Years 26%

30-40 Years 43%

Interpretation: With the results of the analysis, it is clear that most of the tractor users are from the age 30-40.

2. Income Group Table 2: 10000-20000 20000-30000 30000-40000 40000 Above 26 42 21 11

Graph 2:

40000 Above 11% 30000-40000 21%

10000-20000 26%

20000-30000 42%

Interpretation: The main group is the one who has the salary between 20000 and 30000.

3. You belong to the following category of the society?

Table 3: Professional Student Govt. Service Businessman 39 18 21 22

Graph 3:

Interpretation: Tractor is the need of the professional(farmers) ones and businessman too, thereby this category has maximum ownership of tractor alongwith Govt. Service man also.

4. Your Educational Background

Table 4: Matric Higher Secondary Graduate Post Graduate 44 42 12 2

Graph4:

graduate 12% higher secondary 42%

post graduate 2% matric 44%

Interpretation: Maximum respondents are matric and higher secondary ones i.e, 44% and 42 %

5. Which company tractor you have in large tractor segment Table 5: MAHINDRA SWARAJ ESCORT FORD JOHN DEERE SONALIKA 39 26 11 17 4 3

Graph 5:

FORD 17% ESCORT 11%

JOHN DEERE 4%

SONALIKA 3%

MAHINDRA 39%

SWARAJ 26%

From the analysis it has been clear that most of the Indian People Segment like to purchase Mahindra tractors. We have concluded the survey and asked the question from 100 candidates and 39 responded that they have Mahindra tractors.

6. What according to you are the main leader of large tractors? Table 6: Mahindra SWARAJ ESCORT FORD 41 34 10 15

Graph 6:

ESCORT 10%

FORD 15%

MAHINDRA 41%

SWARAJ 34%

The main leader of the large tractor segment are Mahindra & Swaraj.

7. How long you have been operating this tractor? Table 7: 0-1 Yrs 1-3 Yra 3-5 Yrs More than 5 Yrs 39 32 18 11

Graph 7:

More than 5 Yrs 11% 3-5 Yrs 18%

0-1 Yrs 39%

1-3 Yra 32%

0-1 Yrs 1-3 Yra 3-5 Yrs More than 5 Yrs

Interpretation: Out of 100 respondents, 11% of the respondents are operating this tractor for more than 5 years, 18 % are for 3-5 years, 32% for 1-3 years and the rest 39 % for 1 years.

8. What is the purpose of using this tractor? Table 8: Business Heavy Works farming Family Purpose 12 23 62 3

Graph 8:

Family Purpose 3% Farming 62%

Business 12%

Heavy Works 23%

Interpretation: Most of the respondents use the tractors for farming purpose that is 62 % ,for heavy works 23 % and least for family purpose.

9. What are the main information services for choosing the tractors exploring their features? `Table 9: Manufacturer Dealer Website Family and friends Information Website T.V Advertising Print Advertising Tractor Dealers Financial Service Broker.
39 21 47 15 49 22 19 3

50 40 30 20 10 0

Manufacturer Dealer Website Family and friends Information Website T.V Advertising Print Advertising Tractor Dealers Financial Service Broker.

Interpretation:- Most of customers are make their decision through advertisements or friendsuggestions.

10. What according to you are the main features of large tractors? Table 12:

Design Performance Safety Features Variants & Colour Fuel Efficient

56 41 39 47 43

Graph 12:

60 40 20 0

56 41 39 47 43

Design

Performance

Safety Features

Variants & Colour

Fuel Efficient

Main features of large tractors are design, performance, safety features, variants and colours and also main feature is fuel efficient.

CONCLUSION

Large tractor Segment have to provide better facilities like free testing camps and gifts so as to raise the sales and promotion for rural consumers

Large tractor Segment are launching their new models with variant colours to make the consumer feel free from the choices of rural consumers.

Being in the market of hype competition tractor companies making brand positioning of their models. They used to put free test camps and use actors and actresses.

Checking complaints have now become the first priority of the company, for that they install call centers to rectify those problems of rural consumers.

At present Large tractor Segment sales are high due to their better service providing factor and rectifying problems.

SUGGESTIONS
Farmtrac tractors have to come with an idea to launch a low cost large tractors segment with style and elegant features for rural consumers so that it can reach to each and every class of the society. Average or mileage of the Farmtrac tractors is the main criteria for the sale of Diesel prices are hiking like anything, companies have to provide a technology for better mileage and less fuel consumption. The complaints of the Farmtrac tractors should have to be rectified by the companies for better CRM (Customer Relationship Management). Farmtrac tractors have to arrange free testing camps in rural consumers to rectify the problems and efficiency of the large tractor Segment. If given better facilities and services, the consumer do recommend it to the nears and dears, so in return it will raise the sale of the FarmtracS tractors.

BIBLIOGRAPHY
Books and Journals
Batra, S, K & Kazmi, S,H,H ( 2004), Consumer Behaviour- Text and Cases, New Delhi: Excel Books Engel, J, F, Blackwell, R, D & Miniard, P, W, (1990), Consumer Behaviour London: Dryden Press Papers For You (2006) "E/M/68. To what extent does Advertising affect Consumer Behaviour?", [19/06/2006] Papers For You (2006) "P/M/551. What influences consumer behaviour?", Available from http://www.coursework4you.co.uk/sprtmrk38.htm [19/06/2006] Schiffman , L, G & Kanuk, L, l, (2004), Consumer Behaviour New Jersey: PrenticeHall Inc Available from http://www.coursework4you.co.uk/sprtmrk38.htm

Library Resources
MSN Encarta Auto India AdEx India AutoExpo, 2009 IndiaInfoline Journals, February, 2009

Internet Resources
http://auto.indiamart.com/ http://specials.rediff.com/money/2009/mar http://www.agribusiness.com/Features http://www.businessworld.in/index.php/Automobile http://www.businessworld.in/index.php/Automobiles http://www.business-standard.com/india/news http://www.merinews.com/catFull.jsp?articleID=141571 http://autos.maxabout.com

QUESTIONNAIRE

Name: _______________________________ Contact: ______________________________

1. Age Group A) 20-30 B) 30-40 C) 40-50 D) 40 Above

2. Income Group A) 10000-20000 D) 40000 Above B) 20000-30000 C) 30000-40000

3. You belong to the following category of the society? (a) Professional (d) Businessman (b) Student (c) Govt. Service

4. Your Educational Background (a) Matric (d) Post Graduate (b) Higher Secondary (c) Graduate

5. Which company tractor you have in large tractor segment? Mahindra Escort John deere Swaraj Ford Sonalika

6. What according to you are the main leader of large tractor segment? Mahindra Escort John deere Swaraj Ford Sonalika

7. How long you have been operating this tractor? 0-1 Yrs 3-5 Yrs 1-3 Yra More than 5 Yrs

8. What is the purpose of using this tractor? Business Farming Heavy Works Family Purpose

9. What are the main information services for choosing the large tractors exploring their features? Manufacturer Family and friends T.V Advertising Tractor Dealers Dealer Website Information Website Print Advertising Financial Service Broker.

10. What according to you are the main features of large tractor segment? Design Safety Features Fuel Efficient THANK YOU Performance Variants & Colour