Gone are the days when people used to take a lot of trouble to meet their loved
ones, travelling on foot or using bull carts. The automobile industry has evolved as
a savior for everyone. The growth of automobile industry has shrunk the world and
made everything easily accessible.
Present day scenario of business
In the last two decades the world of business has undergone rapid transformation
which has led to the advent of newer and newer technologies in the bike industry.
As a result , the domestic companies have to strive through a long way to find a
place in the market. Every company has its own strengths and weakness and a
proper balance has to be struck between them in order to carry on their activities
without any hindrance. Every competitor is a major threat to every manufacturer.
Therefore, domestic companies cannot ignore competitors and market if they to
find a safe place in todays market. In order to stay afloat in the market, the
marketers of consumer goods have to adopt more for less policy, satisfaction
guaranteed policy. Another important factor in todays business climate is the trust
on safeguarding the environment in order to prevent pollution or any other
hazardous effect
Todays consumer
Consumers of today have varying needs and unlimited wants. As a result, the
consumer value and satisfaction have become the focus of every marketer.
Consumer behavior is the study of how and why the consumer behaves in a
particular way. Another important feature of todays consumer is the want for a
multipurpose product at a reasonable price.
The marketers have to understand the psychology of consumers and adopt the
value chain concept as a company tool for identifying ways to create consumer
value and satisfaction.
Data sources
: primary data
: 50 members
Chapter 2
Introduction to the Industry
+Tractors in India
As commercialization of agriculture grew in intensity in the mid-to-late 19th
century 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
1971 to 1980
Six new manufacturers were established during this period although three
companies (Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not
survive.HMT, a large public sector unit, began manufacturing Agricultural Tractors
in 1972 under the HMT brand name with technology acquired from Zetor of the
Czech Republic. 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.
1997 to 1999
Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo,
already well established in the motor industry, began tractor production in Pune. In
April of the same year New Holland Tractor (India) Ltd launched production of
70 hp tractors with matching equipment. The company is making a $US 75 million
initial investment in a state of the art plant at Greater Noida in Uttar Pradesh state
with an initial capacity of 35000 units per year. Larsen and Toubro have
established a joint venture with John Deere, USA for the manufacture of 35-65 hp
tractors at a plant in Pune, Maharashtra and Greeves Ltd will produce Same
tractors under similar arrangements with Same Deutz-Fahr of Italy. Looking to
South American export markets Mahindra and Mahindra are also developing a
joint venture with Case for tractors in the 60-200 hp range. Total annual production
was forecast to reach 300,000 during the following year.
1999 to Present
Facing market saturation in the traditional markets of the north west (Punjab,
Haryana, Western 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.
Tractor Manufacturers Association
The Tractor Manufacturers' Association of India (TMA) is housed under The
Confederation of Indian Industry (CII), New Delhi. Though not all manufacturers
are members TMA is recognized as the main trade group representing the
agricultural tractor industry in India. Rohtash Mal, Executive Director & Chief
Executive Officer of Escorts Ltd (Agri Machinery Group) is the current President
of TMA.
5 Plants in India.
2 Plants in China.
3 Assembly plants in USA.
1 Assembly plants in Australia.
The sector also as a subsidiary Agricultural tractors
manufacturing company in India known as Mahindra
Gujarat Tractor Ltd [MGTL].
Houston tax as based Mahindra USA is only owned
subsidiary of M&M Ltd.
3 distribution units in USA.
Designation.
CEO
Chairman
Vice-Chair and MD
Deepak Shantilal
Director
MM Murugappa
Director
Finance
Arun Kumar Nanda
Director
Narayanan vaghul
Director
Director
R K Kulkarni
Director
Director
Thomas Mathew
Director.
Chapter 2.2
Profile of region under study
INTRODUCTION
THE ROCKS
BELLARY FORT
The Bellary Fort is built on top of the Bellary Gudda or the fort hill.
The fort was built round the hill during Vijayanagara times by Hanumappa
Nayaka. The fort is divided as Upper Fort and Lower Fort.
GEOGRAPHY
Bellary is located at 15.15 degree north, 76.93 degree east. It has an
average elevation of 445metres (1459 feet). The summer temperature can reach a
scorching 48 degree and the winter as low as 11 degrees.
BRITISH COLONIAL BUILDINGS
The following is a list of buildings built during the British Colonial
period, despite many of them having been partially modified, they retain the
typical colonial British style architecture.
Bellary Central Jail.
Wardlaw High School Complex
St. Josephs School Complex
St. Johns School Complex
St. Philomenas School Complex
The District Chief Judges residence and many more.
Chapter 2.3
Company profile
Mahindra & Mahindra Limited (BSE: 500520) is the flagship company of the
Mahindra Group, a multinational conglomerate based in Mumbai, India. The
company was set up in 1945 in Ludhiana as Mahindra & Mohammed by brothers
K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed.[3] After India
gained independence and Pakistan was formed, Mohammed emigrated to Pakistan
where he became the nation's first finance minister. The company changed its
name to Mahindra & Mahindra in 1948.
History
Mahindra & Mahindra was set up as a steel trading company in 1945. It soon
expanded into manufacturing general-purpose utility vehicles, starting with
assembly under licence of the iconic Willys Jeep in India. Soon established as the
Jeep manufacturers of India, M&M later branched out into the manufacture of light
commercial vehicles (LCVs) and agricultural tractors. Today, M&M is the leader in
the utility vehicle segment in India with its flagship UV Scorpio and enjoys a
growing global market presence in both the automotive and tractor businesses.
Over the past few years, M&M has expanded into new industries and geographies.
They entered into the two-wheeler segment by taking over Kinetic Motors in India.
[5]
M&M also has controlling stake in REVA Electric Car Company[6] and acquired
South Korea's SsangYong Motor Company in 2011.[7]
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
From army vehicles to farm tractors to major automobile manufacturing,
Mahindra's relationship with American industry goes back quite a few years.
American GI's who served in India during World War II recognize our parent
company, Mahindra & Mahindra, which in l945 was selected to assemble the
famous Willis Jeep.
Following Indian independence in 1947, Mahindra & Mahindra charted a course of
product expansion and globalization. The philosophy led to the company's entrance
into the worldwide tractor market.
In 1962, M&M formed a joint venture with International Harvester to make
tractors carrying the name Mahindra name-plate for the Indian market. Armed with
engineering, tooling and manufacturing know-how gained from this relationship,
M&M-a major auto maker- developed its first tractor, the B-275. This successor to
International Harvester's incredibly popular B-414 is still the basis for some current
Mahindra models. Today, Mahindra is the third largest tractor manufacturer in the
world with sales of nearly 85,000 units annually in 10 countries. This places them
ahead of John Deere & Kubota. In India, Mahindra has been the number one
selling brand since 1983.
The various types of tractors model and its prices.
Tractors Models
275 DI New BP
4, 76,595
275 DI Old BP
4, 82,595
275 DI NST
4, 91,595
295 DI Turbo
4, 91,595
475 DI New BP
5, 01,595
475 DI Old BP
5, 01,595
475 DI MKM
5, 02,595
5, 30,595
5, 40,595
575 DI New BP
5, 40,595
575 DI Old BP
5, 33,595
575 DI NST
595 DI Turbo
5, 42,595
5, 62,595
5, 84,595
6, 32,595
6, 51,595
Financial Assistance,
Increments
Incentives
Bonus etc.
They have made an investment of RS 40, 00,000 with financial
assistance from APMC and State Bank of Mysore. They are giving
a very good demonstrations of the tractors to their customers
visiting frequently is more in between the timing of 10.00 Am to
1.00Pm the annual sales turnover is Rs 3 Crores.
CHAPTER-3
Some
marketers believe that the buyer of the product is the best prospect others believe it
is the user of the product, will still others play it safe directing their promotional
efforts to both buyers and users.
Consumer behavior was a relatively, new fields of study in the mid to late
1960s. with no history or body of research of its own, the discipline borrowed
MEANING OF MARKET
Market plays a very important role in management field. Where
buyers and sellers come at one point and make their business transactions all the
activity and business transaction will be done at one particular place. That place is
called market.
Importance of the market:
Market plays a very crucial role and make their purchase and sale decision.
A market is a dynamic world. A market is a place where buyer and seller meet
together is place where consumer can satisfy their needs and wants.
Definition/meaning of market:
Although the description of the marketing has around some semantic controversies,
which has retained thematic similarity emphasis variations notwithstanding.
According to Philip kiotler The process of planning and
execution the conception pricing promotion and distribution of ideas goods
services to create exchange that satisfy individual and organization goals,
According to America,: marketing association(AMA):
Marketing is concerned with the people and activities involved in the flow
of goods and service from the producer to consumers.
Who is Consumer?
Consumer is one who is an actual user of the goods and services, who
express his feelings after actual use, whether the goods and services are up to his
satisfaction of not.
In other words consumer are persons who act in the capacity of consumers,
whether they consume on their own behalf (final consumer) or consumers a
necessary part of these employments in institutions or industry
Initiator: a person who first suggest the idea of buying the product or service.
Influencer: a person whose view or advice influences the decision.
Decider: a person who decides on any component of a buying decision-whether to
by, what to buy, or where to buy.
Buyer: the person who makes the actual purchase.
User:- a person who consumes or uses the product or service.
Buying behavior:
Consumer decision-making varies with the type buying decision. Complex and
expensive purchases are likely to involve more buyer deliberation and more
participants. Assael distinguished four types of consumer buying behavior based on
the degree of buyer involvement and the degree of differences among brands.
Psychological factors
Motivation
Perception.
Learning
BUYER CHARACTERISTICS:-
INFLUENCING CONSUMER:
Social
Personal
Reference
Age
&
Groups
Life
Occupatio
Family
n
Economic
Role
&
s
Strategies
Circumsta
nce
Cultural
Life style
Personalit
Culture
y
Sub culture
Social
class
Philip kottler
Marketing management
Psycholog
B
ical
U
Y
Motivation
E
Perception
R
Leading
Attitude &
Beliefs
CULTURAL CHARACTERISTICS
The broadest influence on the buyer is the buyer cultural characteristics,
particularly the buyers culture, sub-culture and social class identification.
CULTURE:
It is the most fundamental determinant of wants and behavior whereas of
lower creatures is largely by instinct, human behavior is largely learned. The new
baby as it grows up in a society will earn a basic of socialization involving the
family and other Key institutions.
SUB-CULTURE:
Each culture contains similar groups or sub-groups and each of those
provides more specific identification and socialization for its members.
SOCIAL CLASS:
Virtually all-human societies exhibit social satisfaction. Satisfaction may
take the form of a cast system where the numbers of different castes are reared for
certain roles and cannot change their caste membership.
Several features:
Persons within given class tends to behave more alike.
Persons as ranked as occupying inferior or superior position.
It is measured as weighted function of ones occupation, income,
wealth, education, value orientation etc..
It is continues rather than discrete, with individuals able to move into
a higher social class or drop into a lower one.
SOCIAL CHARACTERISTICS:
The buyers age and life cycle occupation, economic circumstances, life style &
personality also influence a buyer decision.
1. AGE AND LIFE CYCLE
The concept of family life cycles has been developed to help identity possible
changing wants, attitudes & values, as people grow older. Seven stages of the
family life cycle have been distinguished.
The bachelor stage
: young no children.
The fullness I
The fullness II
The emptiness
2.OCCUPATION
Persons occupation will lead to needs and wants for goods services. A blue
cooler worker will buy work clothiers & work shoes.
president buys expensive goods.
3. ECONOMICS CIRCUMSTANCES
Peoples economic circumstances will greatly affects the goods & services
they consider & buy. Their circumstances consist of their income saving & asset,
borrowing power & attitude towards spending versus saving.
4. LIFE STYLE
People coming from some sub-culture, social class, and even occupational
group can choose to lead quite different life styles. Marketers believe that persons
products and brand choices are a key indicator of his of her life style.
5. PERSONALITY
Personality describes the organization of the individuals distinguishing
character trait attitudes and habits. Each person has a distinct personality marketed
by such traits as their degree of extraversion versus introversion impulsiveness
versus deliberativeness, creativity versus conventionality and activeness versus
passiveness.
IV. PSYCHOLOGICAL CHARACTERISTICS
Four major Psychological process motivation, perception learning & beliefs
& attitudes also influence a persons buying choice.
A.MOTIVATION
A person will recognize himself or herself as having all kinds of needs at any
point in time. Some needs are, Biogenic need for food, drink, sex and bodily
comfort.
YEARS
No. of Respondents
Percentage
BELOW-20
20%
20-30
10
25%
30-40
27
40%
40-50
10%
ABOVE-50
5%
Total
50
100%
Age chart
45
40
35
30
25
20
15
10
5
0
Below-20
20-30
30-40
40-50
above-50
INTERPRETATION
It is obvious from the table that the respondent who is in the age group of 30-40
years has preferred the Mahindra Tractor when to other groups. The second place
goes to the respondent whose age group is in between 20 to 30 and their
percentage is 25%
Particulars
No. of Respondents
Percentage
Cash
10
20%
Credit
40
80%
TOTAL
50
100%
sales
15%
cash
credit
85%
INTERPRETATION
Among the 50 mumbers 80% respondents were purchase by credit and remaining
were by cash.
Particulars
Showroom
Friends
Relatives
total
No. of Respondents
40
Nil
10
50
Percentage
80%
Nil
20%
100%
purchase
showroom
INTERPRETATION
friends
reletives
From the above table, it was explained that among 50 respondent 80% of
them were purchased in the show room, 16% of them from other source, of them
from relatives.
Table4:models of tractors
SL.NO
PARTICULARS (NO
OFBRANDS)
PERCENTAGE
Mahindra-275
NO OF
RESPODENT
S
20
1
2
3
4
5
Mahindra-575
Mahindra-585
Mahindra-475
Mahindra-arujn
15
8
5
2
30 %
16%
10%
4%
TOTAL
50
100%
40%
satiasfaction
mahindra275
mahindra 575
4%
16%
40%
10%
mahindra475
mahindra585
mahindra arjun
30%
INTERPRETATION
It has been further obsereved from the table that 40% of the share is given to
Mahindra 275 in the market is 40%, Mahindra - 575 is 30%,Mahindra - 585 is
16%,Mahindra - 475 is 10% and rest to Mahindra arjun .
Education
No. of Respondents
Percentage
Below&SSLC
30
60%
PUC
15
30%
DEGREE
10%
50
100%
Total
INTERPRETATION
The field survey indicats that the blue color is more prefer by respondents
that is 60%. Red is preferred by 30% respondents and other 10% of respondents
prefer diversification of color.
Percentage
Very High
10%
High
15
30%
Reasonable
30
60%
TOTAL
50
100%
30
30
25
20
15
15
10
5
5
0
Very High
High
Reasonable
Pricing policy
INTERPRETATION
Above diagram indicats that the price polcy followed by this company for its
tractors quite attractive and very low when compared to other competitors.
No. of Respondents
16
24
10
50
Percentage
33%
49%
18%
100%
mileage
60
50
40
30
20
10
0-5km/ltr
5-10km/ltr
above 10 km/ltr
INTERPRETATION
The above table clearly reveals that the majority of the respondents,
i.e. 20% tune of have preferred this Mahindra tractor as it gives more mileage i.e.
above 10 km/Ltr.
SUGGESTIONS
Since there is an increasing demand for Mahindra tractors in the market I
suggested that,
CONCLUSION
To conclude the summer project on "consumer satisfaction towards
Mahindra tractors Bellary. I have received both favourable and unfavourable
responses from the respondents. I have met 50 customers of different places and
accommodated at bellary automotives and findings were enlightened to me. The
project work has helped in studying and understanding the practicalities of
organisation.
The study of consumer satisfaction towards Mahindra tractors Bellary" The
data was collected from various sources and also through the tools like
questionnaire and relevant interaction with Manager bellary automotives Bellary
and relevant interaction with concerned persons. The need was identified in the
form of findings and suitable suggestions were put forth. in the form of
suggestions.
BIBLIOGRAPHY
BOOKS
1. Marketing Management
- Philip Khotler
2. Principles of Marketing
- T.N Chaabra
MAGZINES:
INTERNET BROWSING:
Website:
www.kisanmitr.com
www.mahindratractors.com