ON
In
ESCORTS LIMITED
Submitted To:
1
DECLARATION
I hereby declare that this Minor Project Report titled Sales & Distribution
Management In Escorts Limited Agri Machine ry Group submitted by me to
Banarsidas Chandiwala Institute of Professional Studies, Dwarka is a bonafide work
undertaken during the period from____ to____ by me has not been submitted to any
other University or Institution for the award of any Degree diploma / certificate or
published any time before.
Date: 12 /08/2014
2
BONAFIDE CERTIFICATE
This is to certify that as per best of my belief the project entitled Sales &
Distribution Management In Escorts Limited Agri Machine ry Group is the
bonafide research work carried out by Anirudh Mehta student of BBA, BCIPS,
Dwarka, New Delhi, in partial fulfillment of the requirements for the Minor Project
Report of the Degree of Bachelor of Business Administration.
3
Figure Table
1 Chapter 2- Introduction
Figure 2.1
Figure 4.2
Figure 4.3
Figure 4.4
Figure 4.5
Figure 4.6
Figure 4.7
Figure 4.8
4
TABLE OF CONTENT
S.NO Content
2 Chapter 2- Introduction
2.1-About the Organization
2.2-Form of Ownership
2.3-Nature of Business
2.4-Geographic Area
3.1-Organization Structure
3.2-Vision and Mission
3.3-Product and Service offered
3.4- Distribution Network
3.5-SWOT Analysis
3.6-Competitor Information
3.7-Market share and Growth Rate
3.8-Key Challenges
4 Chapter 4- Relation with the Organization
6 Bibliography
5
6
Chapter 1 – Purpose of the study
7
1.1 Objective of the Project
The Objective of study is to find out the Sales and Distribution o f Escorts Limited
Agri Machinery Group.
8
Chapter 2 – Introduction
2.1. About the organization
2.2. Form of ownership
2.3 Nature of Business
2.4 Geographic Area
9
2.1 About the Company
The Escorts Group, with Escorts Limited as its flagship company, is among India’s
leading corporations operating in the diverse field of agri machinery, construction &
material handling equipment, automotive & railway ancillaries information
technology and financial services. The group has 15 modern manufacturing facilities
& an extensive marketing network spread across the country. The genesis of Escorts
goes back to 1944 when two brothers, Mr. H.P. Nanda and Mr. Yudi Nanda,
launched a small agency house, Escorts Agents Ltd., in Lahore. The company’s
principal activities were trading and representing leading overseas manufacturers for
the sale of their products in India. One of its dealerships was for the “Massey
Ferguson” brand of tractors.
EL promoted Escorts Tractors Limited in 1969 as joint venture with Ford Motor
Company of USA for the manufacturing of ‘Ford’ series of tractors. The tractors
manufactured were in the 45-50 HP range and ETL became the market leader in this
segment with a share of above 50%. Consequent to FMC’s disposal of tractors
operations to Ford New Holland, USA, Ford new Holland acquired the shares of
FMC in ETL. Following an agreement in 1995 to end the joint venture association,
EL acquired the entire stake of ford new Holland in August 1995, making escorts
tractors ltd. a subsidiary of Escorts Ltd. Over the years, Escorts has sured ahead and
evolved into one of India’s largest co nglomerates. Till 1993-94, all these activities
were being carried out in various divisions of EL. EL undertook a major
restructuring exercise between 94-98 spinning off the divisions into separate
companies. The restructuring exercise-comprised consolidation of the agri-
machinery business by merger of ETL with EL and having off various divisions into
separate companies. Bi wheeler division was spun off to Escorts Yamaha Motors
Ltd., construction equipment division to Escorts construction equipment Ltd.,
telecommunication equipment division to Escorts communication Ltd., EL booked
gains of Rs. 2091 million over the four year period 1994-95 to 1997-98 though the
sale of these the sale of these divisions. The main products of Escorts group
currently comprise of agri- machinery, information technology, health care, financial
10
services, railway components, auto components, construction and material handling
equipment.
11
1998 Introduction of powertrac.
Agri-Machinery Group
Escorts Limited (EL) is the flagship company of one of India’s leading business
groups, the Escorts Group. The company was incorporated in 1944 and is today, a
leading manufacturer of Agri Machinery Products, Auto Suspension and Ancillary
Products, Railway Equipment and Material Handling and Construction Equipment.
The company is widely acknowledged as one of the pioneering agents of farm
mechanization in the country and has been playing a pivotal role in the socio-
economic progress of the country for more than five d ecades. Escorts is known to be
an ‘Indian multinational’ and has established technological and business
collaborations with leading companies across the globe. Escorts AGRI
MACHINERY GROUP (AMG) was set up in 1960 and they rolled out their batch
of tractors in 1965 under the brand name of Escorts. Today its tractors are marketed
under three brand names, viz. Escort, Powertrac and Farmtrac.
Escorts Brand of tractors is symbolic of reliability and enjoys the confidence of the
farming community for the last 40 years.
Powe rtrac Brand of tractors is the most fuel-efficient tractor in their respective
categories that offer excellent value for money and have helped the farmer improve
their quality of life.
Farmtrac Brand is the most powerful premium range of tractors that give
maximum productivity to the farmers.
As far as figures go, the company has more than 1600 sales and service units, and
footprints in over 40 countries. The management of Escorts takes great pride in their
technological expertise which has seen the company introduce more than 45
different tractor variants within the 25 to 80 HP (Horsepower) ranges, over 16000
constructions and material handling equipment and become the world’s largest
manufacturer of Pick-n-Carry cranes.
The company’s in- house R&D (Research and Development) unit is spread over
100,000sq. and has been recognized by the Department of Scientific and Industrial
12
Research, Ministry of Science & Technology, Government of India for the period of
2008-2011.
In 1944 prior to the independence Escorts started as Escorts Agency Ltd. in Lahore.
In 1965 the first batch of tractors from Escort Agri Machinery Group
came out on the field with the brand name of Escort. Today more than 6 lakhs
tractors of the company are toiling under the sun.
Not only in India, the tractors of the company are also being exported to a no. of
countries. Escorts has a wide range of tractors. The Head-Quartet of Escorts is in
Faridabad. The tractors of the Escorts Ltd. are known worldwide because of its
quality product. It has a wide range of tractors. It has three well accepted and
powerful brands Escorts, Powertrac & Farmtrac. All the three brands of Escorts
AMG have been designed in a manner that they complement each other in the
market place. The Escorts Institute of Farm Mechanization (EIFM) is located in
Bangalore (India). The main purpose of EIFM is to supply proper or needed
machinery in India for Farmer’s economics or wealth. This is known as Farm
Mechanization. Its purpose is to represent leadership of Escorts in agriculture arena
leveraging the knowledge, product & service of AMG.
Among all the agri Machinery companies Escorts become the first tractor
manufacturing company in the world to win the TS 16949 Certification for quality.
13
Contribution of Agri Machinery Group (Figure 2.1)
construction
54%
14
2.4 Geographic Area
With regional offices all over India in States of Haryana, Uttaranchal, Delhi &
Maharashtra
Tractors Manufactured by escorts Ltd. are sold not only in India but in other
countries also or over 41 countries of the GLOBAL MARKET, like
USA
CHILE
SENEGAL
TANZANIA
GHANA
SOUTH AFRICA
SRILANKA
POLAND
15
Chapter 3 – Company Profile
3.1 Organization Structure
3.2 Vision & Mission
3.3 Products & Services offered
3.4 Distribution Network
3.5 SWOT Analysis
3.6 Competitor Information
3.7 Market share & growth rate
3.8 Key challenges
16
3.1 Organization Structure (Figure 3.1)
Secretariat
Center, Faridabad
18
3.3 Product & Services by Agri-Machinery Group
Escorts is one of the largest tractors manufactures of the country. It is one of the
leading AMG & produces tractors in the 27-75 HP range. Its manufacturing capacity
is 1.2 lacs per annum & has already sold tractors more than 1 million.
Tractor:-
A tractor is a self operating machine which provides traction for itself & power to
operate tools and other agricultural & non agricultural equipments attached to it.
According to Oxford dictionary the word Tractor was first used in 1856 in England
as a synonym with engine. The term Tractor appeared in an 1880 U.S.A. patent for
track laying steam traction engine.
Traction:-
Introduction of Tractors
Predates independence humans were used in place of Bullocks for showing &
agricultural activities. After that Humans were replaced by Bullocks. With the
passage of time the first Tractor with steam engine developed. In 1961 Escorts
started manufacturing tractors in collaboration with URSUS of Poland. After that
19
with modernization & large competition in the market several ranges of tractors
were developed to fulfill the needs of farmers.
Escorts Tractors are considered as a better choice by the farmers they provide
quality assurance to the farmers. Escorts AMG worked on the or uses the world best
methodologies of BPR. Its different range of tractors has been developed from
proven reliable design. It is even upgraded to meet the demands or requirements of
the farmers for greater output & reliability. Escorts Tractors are also considered best
because they are designed keeping in mind the demand or requirements or needs of
the farmers for their welfare. Also Escorts got the award for its quality product.
PRODUCT RANGE
Escort Powertrac
A Tradition of Trust The super diesel Savers
Farmtrac
The World Champion
20
Escort (A Tradition Of Trust) -
This was the very first range of tractors introduced by Escorts. The Escort range of
tractors has a tradition of service & trust behind them as they give quality assurance.
They are the farmer’s friends.
In tractor technology, the Farmtrac range is the ultimate icon having a no. of
features. This range provides a huge no. of features for scientific farming & other
applications. It is a machine packed with powerful features for providing maximum
efficiency.
The top line of the company arises from four main verticals, namely: - the
agricultural machinery segment, the material handling and construction equipment
segment, the railway equipment segment and the auto suspension and ancillary
products segment. The company also derives a minor source of income from its
stakes in various companies located in India and abroad. Examining the historical
21
performances of all these segments, it is quite clear that the agricultural machinery
segment is the major driver of revenue. Historically that segment has contributed
around 72% of the company’s total sales (sales from FY11-FY12).
This division of Escorts commenced operations in 1964 with the manufacturing of
tractors being the key activity. Currently the manufacturing of tractors takes place in
their Faridabad plant which churns out on average, around 260 tractors a day, in two
shifts.
However this facility has a manufacturing capacity of 400 tractors a day, with that
level being reached only during peak periods.
The Escorts’ brand of tractors is immensely popular amongst the farming folk in the
country, particularly in the northern territory. This statement is best exemplified by
the fact that every third tractor in the country is an Escorts tractor. Principally
Escorts offers three tractor brands namely: - Powertrac, Farmtrac and the
eponymous Escort. The Powertrac brand is the utility and value-for-money tractors
that functions on horsepower ranging from 34 to 55. The Farmtrac brand is the
premium tractor that functions on horsepower ranging from 34 to 75 while the
Escort tractor brand is the economy tractor that has twin-cylinder engines with horse
power ranging from 25 to 35.Out of these three brands, the Farmtrac brand is the
most popular, accounting for 50% of the company’s total sales. The Powertrac brand
is not far behind, accounting for 48% of total tractor sales while the Escort brand
only accounts for 2%.
In addition to India, the company exports tractors and other farm equipment to more
than 40 countries. Construction equipments serve as the second largest contributor
of Escorts’ sales, attributing for around 15% of the company’s total turnover. As
part of this segment, the company manufactures and markets a diverse range of
construction and material handling equipment such as cranes, loaders, vibratory
rollers and forklifts. The company has managed to garner quite a reputation through
this segment as it is the world’s largest manufacturer of Pick-n- Carry cranes with
that item generating more than 60% of the company’s construction equipment sales.
It also has a strong presence in the manufacturing of compactors which contributes
another 25% of the total construction equipment sales. The remaining part of the
company’s bottom line arises from the equipment division, which is further divided
22
into the railway equipment division and the auto equipment division. Traditionally
both these segments haven’t contributed an awful lot to the company’s total turnover
(approximately around 8% over the last three years). Escorts is one of the oldest
suppliers of high-tech equipment to the Indian railways, having commenced that
relationship in 1970. The products of the railway equipment division are also
exported to over 15 countries worldwide. As far as the auto equipment division is
concerned the company has quite a strong presence in the country with an
aftermarket of 300 dealers, 1000 retailers and 20000 workshops/garages.
23
Services Offered
The company makes its every effort for continuously improving and for meeting the
ever -rising expectation of its customers at the lower cost. The company tries to
fulfill the need of its customer, both internal and external with the highest degree of
commitment thereby creating a quality organization geared to ensure total customer
satisfaction and the continuous health and prosperity of the business.
24
3.4 Distribution Network
A Channel of Distribution (sometimes called a marketing channel) is a group of
individuals and organisations that direct the flow of products from producers to
customers.
In its broadest sense this function includes transportation as well as the middlemen
who handle the goods and help to transfer title to the goods. The term channel of
distribution is used to denote the middlemen engaged in moving goods form place
of production to the used to denote the middlemen engaged in moving goods form
place of production to the place of consumption. This is risky. This is in fact is a
'channel' through which goods are made to move as smoothly as possible to the
desired places.Channels of distribution are the means employed by manufacturers
and sellers to get their products to market and into the hands of users. Channels are
management tools used to move goods form production to consumption, they are
means by which title to goods is transferred from sellers to buyers. The process of
transferring title is not so simple especially in present day markets that are
characterized by heterogeneity on both the demand and the supply sides. This means
that there is a wide variety of goods produced for sale, while on the other side, there
are highly varied and complex desires of consumers.
In addition to having a strong sales function companies should also minimise their
Selling & Distribution Overheads as these can be minimised, companies should also
have efficient distribution channels to make the products available to the end
consumer. Management of distribution channels involves efficient channel design,
conflict management and implementation of sophisticated channel information
systems which will enhance the process of making the products available to the end
consumer in a timely manner.
Thus, Sales and Distribution Management provides an overview of the sales and
distribution function. It discusses various aspects of the sales function ranging from
various sales organization structures to the role of the sales manager in improving
sales by hiring, training, motivating and leading the sales force. It also provides the
distribution function and discusses logistics and channel management.
25
IMPORTANCE OF DISTRIBUTION CHANNEL
The importance of these functions varies depending upon the nature of the goods
themselves. Thus, the company or organisation must find a correct distribution
channel for its product. It is always said that an organisation must find a right
product for its customer instead of finding a right customer for its product.
26
3.5 SWOT Analysis (figure 3.5)
STRENGTH WEAKNESS
OPPORTUNITY THREAT
27
3.6 Competitor Information
The market shares of the top four players in the Indian tractor industry did not
change much during 2009-10 in comparison with 2008-09. M&M remained the
market leader with around 41.1% market share, followed by TAFE with a market
share of around 22%, Escorts with around 12.1%, and International Tractors (ITL)
with around 8.9%.
M&M remains particularly strong in the southern region (50.4% market share
during 2009-10). However, L&T John Deere (LT-JD) was able to increase its
market share in the region by around 250 bps in 2009-10, mainly at the expense of
M&M and Escorts. In the western region too, LT-JD performed well in 2009-10,
increasing its market share by 190 bps, even as TAFE lost market share by around
90 bps there.
In the northern region, where M&M has been traditionally weak, the company
increased its market share by 140 bps during 2009-10, even as ITL and Escorts lost
market shares by around 90 bps and 60 bps respectively, there. In the eastern region,
M&M was able to raise its market share by around 140 bps in 2009-10 at the
expense of Escorts and TAFE.
28
Top 2 Competitors of Escort Agri-Machinery Group.
Tafe
Mahindra & Mahindra’s Farm Equipment Sector (FES), a part of the U.S. $14.4
billion Mahindra Group, maintained its leadership position in the tractor industry in
FY 2011 - 2012. Domestic sales in FY2011-2012 stood at 221730 units, as against
201785 units during FY2010-2011, having registered a growth of 10%. Total tractor
sales (domestic + exports) in the financial year stood at 235452 units, as against
213653 units for the same period last year. Exports for financial year ended on
March 31, 2012 stood at 13722 units, having registered a growth of 16%.
For the month of March 2012, the total sales stood at 17405 units. Exports for the
month registered an impressive growth of 33% at 1485 units the farm equipment
division of Mahindra & Mahindra, builds and sources tractors that are sold
worldwide across six continents. In 2010, Mahindra became the number one selling
tractor in the world. Mahindra has a huge consumer base in India, China and
America and a growing base in Australia. The company builds more tractors in India
than any other manufacturer, and has the capacity to build 150,000 tractors a year. In
1963, M&M formed a joint venture with International Harvester to manufacture
tractors carrying the Mahindra nameplate for the Indian market. Armed with
engineering, tooling and manufacturing know-how gained from this relationship,
M&M developed its first tractor, the B-275. Mahindra Tractors with sales of nearly
85,000 units annually is one of the largest tractor companies in the world, and is
number one in sales in India - the largest tractor market in the world.
29
Tractors and Farm Equipment Limited (TAFE)
Tractors and Farm Equipment Limited (TAFE), a US $1.6 billion tractor major
incorporated in 1960 at Chennai, India, is the third largest tractor manufacturer in
the world and the second largest in India by volumes, with a 25% market share of
the Indian tractor industry and a sale of approximately 150,000 tractors (domestic
and international) annually. TAFE's partnership with AGCO Corporation and the
Massey Ferguson brand for 52 years is an outstanding example of TAFE's
commitment to its values of building long-term relationships with its stakeholders,
through fair and ethical business practices. In the Indian market, TAFE has earned
the trust of its customers through its wide range of products that are known for high
quality and low cost of operation, backed by over 1000 strong distribution network
that effectively supports its three tractor brands of Massey Ferguson, TAFE and
Eicher. TAFE exports tractors in partnership with AGCO and independently,
powering farms in over 82 countries including developed countries in Europe and
the Americas. Besides tractors, TAFE and its subsidiaries have diverse business
interests in areas such as farm machinery, diesel engines, batteries, transmission
components, panel instruments, engineering plastics and hydraulic pumps and
cylinders. From a small beginning with just one tractor model in 1961, TAFE today
is recognized as a high quality mass manufacturer with an extensive product range
to meet every farming need, innate engineering strengths, uncompromising focus on
quality and an immense fund of experiential knowledge gained through designing,
developing, manufacturing and supporting tractors that are synonymous to reliability
and ruggedness. TAFE's R&D facilities are centers of excellence, renowned for their
innovative design and engineering expertise, and have been recognized by the
Department of Scientific & Industrial Research, Ministry of Science and
Technology, Government of India. Extensive research and testing ensures that
TAFE's products and aggregates meet its exacting performance standards.
30
3.7 Growth Rate and Market Share
On July 2004 Escort s AMG (Agri Machinery Group) recorded a strong sales
growth of 113 per cent. The Indian tractor industry, which grew 50.6 per cent during
April-May 2004 helped Escorts garner over five per cent market share.
Escorts Limited has registered a 20.80% increase in sales in the first quarter of fiscal
2009-10 ending December 31, 2009 on September, 2010.
31
Market Share (figure 3.7)
45%
40%
35%
30%
25% Series1
20% Series2
15% Series3
10%
5%
0%
M&M Tafe Escorts ITL John New others
Deere Holland
32
3.8 Key Challenges
Although every effort has been made to collect the relevant information through
the sources available, still some relevant information could not be gathered.
Time: The time duration could not provide sufficient opportunity to study every
detail of Sales and Distribution management of the company.
33
Chapter 4 – Relation with the organization
34
4.1 Industry Structure
The tractor industry of India is oligopolistic. 4 key players –Mahindra & Mahindra
Ltd. (M&M), Tractors And Farm Equipment Ltd. (TAFE), Escorts Ltd. (EL), John
Deere (JD) – rules over the market while a couple of players in the unorganized
sector, specialize in used tractors. Nine companies manufacture tractors in the
country in the product range, from less than 20 to 60 hp. Sales are, however,
concentrated in the 20-50 hp segment owing to the small size of land holdings in the
country. Mahindra and Mahindra is the leader in the industry with a market share of
27 per cent. All the nine companies have had a presence in the industry for more
than two decades and have assimilated technology from their collaborators. Product
differentiation is minimal in the industry which has resulted in market shares being
fairly evenly distributed among the nine manufacturers.
It is clear from the above that in the 21-30HP range M&M remained the market
leader accounting for 41% market share followed by Tafe with 34% market share. In
the 31-40HP range M&M is the leader with 26% market share and TAFE followed
it by 26% market share whereas in the 41-50HP range Escorts remained the leader
with 46% market share and M&M followed it by 35% share. The existing players
and the new entrants are now looking at capacity expansion in the medium and
higher HP segments since these are the ones with the highest growth potential.
35
Tractor sale across region
The biggest markets for the tractor industry include States like Uttar Pradesh (UP),
Andhra Pradesh (AP), Madhya Pradesh (MP), Rajasthan, and Maharashtra, which
together accounted for around 50% of the total tractor sales in India during 2009-
10. The tractor industry witnessed a strong y-o-y growth of 28.3% during 2009-10,
with most of the States reporting positive growth during the year.
(figure 4.1)
18000000.00%
16000000.00%
14000000.00%
12000000.00%
10000000.00%
8000000.00%
6000000.00%
4000000.00%
2000000.00%
0.00%
North South West East
% of sale of tractor 35.70% 11.90% 31.50% 53.60%
NO. of Tractor Sold 170000 77000 90000 70000
Northern Region
The northern region remains the largest tractor market in India with sales of
around1,67,000 units as of 2009-10. This region reported a growth rate of 35.7% in
volume sales in2009-10 over the previous fiscal, with the key contributors including
UP, Punjab. The northern region benefited from higher MSPs (for crops), limited
availability of labour (forcing higher mechanisation), and increasing non-
agricultural use of tractors.
Eastern Region
In the eastern region, tractor volumes continued to report strong growth in 2009-10 a
small base, and went up by 53.8% over 2008-09, being driven mainly by the higher
MSPs announced for paddy. Within the region however, many financiers remained
reluctant to finance tractor purchases in some States like Bihar. Nevertheless, in
36
Bihar, tractor volumes grew 66% over 2008-09 to around 29,000 units in 2009-10,
thereby accounting for over 50% of the total sales in the eastern region. The Bihar
market, where tractor penetration had been low historically, has shown sustained
growth over the last few years and become one of the important markets for the
tractor industry. Overall, in the eastern region, growth in tractor volumes is expected
to moderate, going forward, as the benefit of a low base get diluted gradually.
Western Region
The western region reported sales of around 92,000 tractor units during 2009-10—a
growth rate of 35.7% over the previous fiscal—benefiting particularly from the
strong performance that Maharashtra, Gujarat and MP posted during 2009-10.
Southern Region
In performance of the Southern region in terms of tractor sales was relatively modest
during 2009-10, with the growth rate being around 11.9% over the previous fiscal.
While most States in the region reported healthy growth, AP, which is the largest
tractor market in the south, de-grew by 10.4% in 2009-10.
37
State Wise sale of Tractors
Punjab, Uttar Pradesh and Haryana were the first States to benefit from the Green
Revolution and hence have traditionally accounted for most of the tractor sales.
However, given the high penetration of tractors in these Northern States, the
geographical concentration of tractor sales is gradually shifting to the Western and
Southern States of the country. States like Gujarat, Andhra Pradesh and Madhya
Pradesh have reported significant increases in tractor volumes over the past three
years. This trend is continuing in the current fiscal also, as the intensity of tractor in
North India is quite high already. Table 5depicts the d istribution of tractor sales in
the country in the first quarter of the current fiscal vis-a-vis the like period previous
year.
The biggest markets for the tractor industry include States like Uttar Pradesh (UP),
Andhra Pradesh (AP), Madhya Pradesh (MP), Rajasthan, and Maharashtra, which
together accounted for around 50% of the total tractor sales in India during 2009-10.
The tractor industry witnessed a strong growth of 28.3% during 2009-10, with most
of the states reporting positive growth during the year. The performance of the
southern region
in terms of tractor sales was relatively modest during 2009-10 with the growth rate
being around 11.9% over the previous fiscal. While most States in the region
reported healthy growth, AP, which is the largest tractor market in the south, de-
grew by 10.4% in 2009-10.The market shares of the top four players in the Indian
tractor industry did not change much during 2009-10 in comparison with 2008-09.
M&M remained the market leader with around41.1% market share, followed by
TAFE with a market share of around 22%, Escorts with around 12.1% and
International Tractors (ITL) with around 8.9%.
38
State wise sale of tractor in FY05-FY06
(figure 4.2)
40%
%sale of tractor
30%
20%
10%
0%
STATES UP AP MP RAJ MH BIH HAR OTHERS
States
25%
20%
15%
10%
5%
0%
STATES UP AP MP RAJ MH BIH HAR OTHERS
STATES
39
State wise sale of tractor in FY07-FY08
(figure 4.4)
30%
25%
20%
15%
10%
5%
0%
STATES UP AP MP RAJ MH BIH HAR OTHERS
STATES
25%
20%
15%
10%
5%
0%
STATES UP AP MP RAJ MH BIH HAR OTHERS
STATES
40
State wise sale of tractor in FY09-FY10
(figure 4.6)
25%
20%
15%
10%
5%
0%
STATES UP AP MP RAJ MH BIH HAR OTHERS
STATES
30%
25%
20%
15%
10%
5%
0%
STATES UP AP MP RAJ MH BIH HAR OTHERS
STATES
41
State wise sale of tractor in FY11-FY12
(figure 4.8)
25%
20%
15%
10%
5%
0%
STATES UP AP MP RAJ MH BIH HAR OTHERS
STATES
42
Chapter 5 – Conclusion
43
It has been found in the report that proper inventory plans should be made in order to
reduce the carrying cost.
New market strategies should be devised from time to time. This is because, even if
the tractor is of good quality, the competitors may produce the same product with
additional features and at lower prices.
Marketing network should be enhanced. Company should also produce more tractors
of higher H.P. But new developments should be made continuously in order to
survive in this competitive world.
A special team can be formulated if possible to study the market environment which
will provide the sales personnel vital information about the needs and tastes of the
customer.
The company should focus more on 21-30HP and 31-40HP range, where it lacks.
More attention must be given to market forecasts can be made and the surplus of
inventory is reduced to minimum
Company should not follow the competitors only. New products should be produced
for the farmers having low income and small holdings.
Proper market survey should be carried out. The company should explore the export
market to study the present and prospective demand.
44
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