Presentation on
Market Survey & Analysis To Know the Drawbacks of Sonalika Competitors & Consumer Preference for Sonalika
Submitted to: Mr. Hadarsh
Submitted by: Gurdev singh Mba 3rd sem
Overview of the Tractor Industry
India is the worlds third largest user/manufacturer of tractors. While India has 12% percent of the worlds available land, it tractors forms only 3% percent of the world tractor population, .
Indian tractor industry is quite young than that of world. In world first tractor was manufactured in 1928 while in India tractor was first manufactured in 1961 at Faridabad, Haryana with the production of only 880 units per year. Green revolution in 1966-1967 was a growth era of tractorization in Punjab, Haryana, and Maharashtra and UP. The growth in the tractor industry has come a long way since the time of its beginning.
Major Milestones in tractor industry
1920..by Volkart Brother introduction of Tractor was marked. 1924..Worlds first Diesel engine Tractor was manufactured. 1948..Escorts, the first Indian company who had imported & sold tractors in India. Up to 1960..Imported of tractor & assembling of tractors fulfilled the requirements of domestic market. 1961-67.. 1. First tractor of Indian manufacture soled in India Roads. 2. Imports of tractors still remain dominants.
1968..Due to Green Revolution technological changes the agriculture sector occurred such as: Improved Irrigation facilities. High yielding varieties of seeds. Use of fertilizers & Pesticides.
Major Tractor Manufacturers
Presently 16 tractors manufacturers are competing in tractor market and market has been dominated by six major players. These are as following:-
Sr. no. 1.
Company Mahindra & Mahindra Tractors Ltd.
Brand Name Mahindra
Plant Mumbai
2.
3. 4. 5. 6. 7.
International Tractors Ltd. (Sonalika)
Tractor And Farm Equipments Ltd. Escorts Tractors Ltd. Eicher Tractors Ltd. HMT Tractors Ltd. Punjab tractors Ltd. (Swaraj)
Sonalika (International)
Massey-TAFE Escorts, Powertrac, Farmtrac Eicher HMT Swaraj
Hoshiarp ur
Chennai Faridaba d Faridaba d Pinjore Mohali
Introduction
Sonalika is one of the top three tractor manufacturing companies in India. Its products include tractors, multi utility vehicles, engines, and various farm equipments. Since its inception in 1969, Sonalika group from the very beginning has tried to understand customer need so that they get better value for their money, hard earned. Sonalika has state of manufacturing, spread in acres, located at Hoshiarpur and tax free zone at AMB in Himachal Pradesh Today the group stands tall with an approximate turnover of 3200 Core INR. An average growth of 30% makes it one of the fastest growing corporate in India. It is also one of the few debt free companies. With strength of approximately 3000 employees, the company has a maximum production rate with extremely low cost value and eco-friendly environment. In the year 1996-1997, their production level was 396 and agriculture machinery produced was 36091. The company has raised its production up to 5000 and their agriculture machinery produced was 16090 in the year 2003- 2004.
History of the company
Established in 1969, Sonalika group from the very beginning has tried to understand customer need so that they get better value for their money, hard earned. Sonalika has state of manufacturing, spread in acres, located at Hoshiarpur and tax free zone at AMB in Himachal Pradesh. Sonalika is the one of the top 3 tractor manufacturing companies in India, other products include of Multi utility vehicles, engines and various farm equipments. Today the group stands tall with an approximate turnover of 3200 Core INR. An average growth of 30% makes it one of the fastest growing corporate in India. It is also one of the few debt free companies. Group has strength of about 2000 employee .
Company Profile
The Company
International Tractor limited was established in October1996. Company got ISO 9001 certificate in April 1999. Company is also running its own agriculture equipment making industry, which is producing thrasher, disc harrow, wheat harvester etc. They got collaboration with Renault Agriculture Limited France in feb 1999. Renault agriculture provided state of the art technology and latest designs. Now they are collaborated with Yanmar from Japan.
Mission
International Tractors limited offers quality products with distinctive features at reasonable price. The company ensure better than the best after sale service for the satisfaction of the customer. The firm is ranked as best in terms of its quality and production front. The company is exporting its tractors to different Asian as well as African countries.
Training & Learning
All classes of employ are trained. Non skilled are trained to become skilled workers. And skilled workers are trained to acquire multiple skills. Diploma and graduate engineer trained for one year. There are special management programmers'' and classes. In addition to the job related training all employees attends self development programs.
Work Culture
The I.T.L. seeks to create a culture where each employee, vendor and dealer feels himself responsible and integral part of the enterprises. The work culture at I.T.L. is open & participative. Learning is encouraged in the company. Every member respects 5 F formulas Fast Focused Fair Friendly Fun
Milestones
1995: Incorporation of International Tractors Limited, for production of tractors and related sub-assemblies. 1996: Production began for ITL. 1999: Joint venture with Renault Agriculture of France 1999: Sonalika Tractor (DI-740) exported for the first time 2000: Hoshiarpur tractor manufacturing plant inaugurated by the then Chief Minister of Punjab. 2001: ITL awarded ISO 9001. 2002: Exchange of assignment deed with CMERI 2002: Assembly of Solis III inaugurated 2004: 1,00,000th Tractor Rolls out of the Plant. 2005: Record growth of 50%in sales of tractors.
Achievements
Within 7 years of inception since 1997, it has sold more than 100,000 tractors (largest ever volume in the industry in the given span of time) and has achieved around 13% share in Indian tractor market ITL is an ISO 9001: 2000 & ISO 14001 accredited company for its designing, manufacturing and marketing. ITL has strong and extensive dealer network spread over 25 countries across the globe with over 600 dealers and 450 sub dealers in domestic market alone. ITL is exporting its products to various countries including USA, France, Canada, Australia, South Africa, Ivory coast, Tunisia, Zimbabwe, Uganda, Bangladesh, Sri Lanka and many more FY 2004-05, tractor sales of 26365 were achieved and the expected sales FY 2005-06 above 35000 Nos.
Tractor Plant (Overview
Objective of the study
The major objective to do this study is to know about the drawbacks of the competitors of Sonalika tractors. To study the consumer preference for Sonalikas tractors. To study the customer awareness regarding Sonalika tractors. To study the different parameters influencing the customers in purchasing the tractor. To study the consumers satisfaction towards purchased tractors To study the various problems faced by customers in their tractor. To study the satisfaction level of the customers with their existing tractor.
Research methodology
Research means a search for knowledge or gain some new knowledge and methodology can properly refer to the theoretical analysis of the methods appropriate to a field of study or to the body of methods and principal particular to a branch of knowledge. A research methodology has specified frame work for collecting the data in an effecting manner. Research methodology means a defining a problem the information, analyzing the information and presentation of findings. Such frameworks are called Research Design.
1. Data source: the researcher can get two types of data: (a) Primary data (b) Secondary data (a) Primary data Primary data is data which did not exist earlier and is being collected by the researcher first time for its specific objectives. In other words, direct collection of data from the sources of information, technology including personal interview, telephonic interviews, observations, and questionnaire and through schedules.
Secondary data
Text books Internet sites Newspaper articles Broachers
(d) Research approach
Survey is best suited for descriptive and analytical research. Descriptive research includes surveys and facts finding enquires of different kinds.
Sample size
sample size = 125 people
Findings & Its Analysis
Q no.1. How many tractor companies do they know about?
Companies
No. of respondents
Tafe Farmtrac Mahindra Sonalika Swaraj John Deere Indofarm New Holland
95 90 125 125 125 49 34 80
Interpretation This question was asked in order to know that how many respondents were aware with the tractor companies in India. From the above graph it is clear that all the 125 respondents, that is, all the respondents are aware with Mahindra, Sonalika and Swaraj tractors. 95 respondents knew about Tafe tractors and 90 persons knew about Farmtrac tractors. 80 respondents are aware of New Holland and 49 respondents have shown their awareness regarding John Deere tractors. And 34 are aware of Indofarm tractors
Q no.2. Which tractor do they own and what is its HP?
Company Tafe Farmtrac Mahindra
No. of respondents 10 10 48
Percentage 8% 8% 38.4%
Sonalika
Swaraj
22
31
17.6%
24.8%
John Deere
Indofarm
New Holland
2
0
2
1.6%
0%
1.6%
Interpretation
From the above data it is clear that majority (38.4%)of the respondents have Mahindra tractors, 24.8% of the respondents have Swaraj tractors and 17.6% respondents are having Sonalika tractors. Other than these 8% respondents have Tafe and Farmtrac tractors and 1.6% respondents are having John Deere and New Holland tractors
Q. no.3. What work they generally took from a tractor?
Type of Work Agriculture Haulage No. of Respondents 125 10 Percentage 100% 8%
Q. no. 4. What do they expect from their tractors? Allocation of 100 points among options
Type of work 20% Road speed 8 7 32%
Percentage of respondents 20.8% 6 9 11.2% 10 16%
Ground clearance
Backup torque Fuel efficiency Good looks
8
9 13 10
5
14 15 8
6
13 14 9
7
11 12 7
9
12 11 11
Less maintenance
Availability of workshop
10
12
13
11
12
13
14
10
7
14
Good resale value
Turning radius Size tractor Total
13
10 7 100
12
7 6 100
11
8 9 100
14
9 8 100
10
11 10 100
Interpretation There are many factors on which the success of tractors depends i.e. fuel efficiency, maintenances, after sale services etc. The above question is asked to the respondents with the objective to know the expectation of the customer. From the above graph it is clear that in the 125 respondents, 20% respondents have given 8 points to road speed & ground clearance, 9 points to backup torque, 13 points to fuel efficiency, 10 points to good looks, 10 points to less maintenance, 12 points to availability of workshops, 13 points to good resale value, 10 points to turning radius and 7 points to size of tractor.
Q. no. 5. In which season do they prefer to buy a tractor? Season Spring Summer No. of respondents 25 65 Percentage 20% 52%
Autumn
Rainy Winter
0
0 35
0%
0% 28%
Interpretation As the summer season is the season of farmers in India so most of the respondents would like to but a tractor in summer season. From the above graph it is clear that majority of the respondents (65 respondents) that is 52% of 125 would like to buy a tractor in summer season, 20% in spring and 28% of them in winter season.
Q.no.6. which financial sector influences them most while buying a tractor?
Ranking
Particulars
Loan facility Price Discounts Buy back scheme Personal selling 1 2 3 4 5
Interpretation With the majority of our countrys population engaged in farming and agriculture, our farm equipment loans help India surge ahead in a big way. So majority of the respondents have given first rank to Loan facility, second rank to Price, third to Discounts, fourth to Buy back scheme and fifth to Personal selling.
Q. no.7 To what extent does these factors affect the choice of tractors? Points out of 10
Factors
Percentage of respondents
24 %
Brand name After sale services 8 9 7 10
12 %
10 7
20 %
9 6
32 %
6 8
12 %
-
10 0%
Availability of spare parts
Kind of work to be done Coverage area Fuel efficiency Warranty
9 8 -
8 7 -
6 6 -
7 9 -
10 10 -
10
10 10
Interpretation There are many factors which affect the buying behavior of the customers like brand name, after sale services, warranty etc. From the above data it is clear that out of 125 respondents 24% of the respondents have given 8 points to Brand name & coverage area and 9 points to After sale services & Kind of work taken from tractors. And 12% of the respondents have given 7 points to Brand name & coverage area, 10 points to After sale services and 8 points to Kind of work to be taken from tractors.
Q.no. 8. What satisfaction level do they have from their tractor?
No. of respondents Highly satisfied Satisfied 40 75 Percentage 32% 60%
Neutral
Not satisfied Highly not satisfied
10
0 0
8%
0% 0%
Interpretation From the above graph it is clear that majority(60%) of the respondents are satisfied with their tractor, 32% feel highly satisfied and 10% are neutral. None of the respondents is dissatisfied with the performance of their tractor.
Q. no. 9. What are the new features they expect from tractor manufacturers?
Particulars
High fuel efficiency Break system
No. of respondents
125 110
Percentage
100% 88%
Good looks
Gear shifting Less maintenance Low price
90
100 75 110
72%
80% 60% 88%
Interpretation From the above given data it is clear that all the respondents wants that the tractor manufacturers should made such tractors which should highly fuel efficient. Then 88% of the respondents want better break system and low price of tractors. 80% of the respondents want good gear shifting system. 72% people want tractor with good looks and the 60% of the respondents want tractor which would not require much maintenance.
Q. no. 10. Have they seen Sonalika advertisement?
Response No. of responden ts 110 15 Percentag e 88% 12%
Yes No
Sources of advertisement
Sources of advertisement Newspapers / Journals Through reference No. of respondents 90 15
Wall paintings
Hoardings Exhibition / Trade shows Through supplier visit
40
35 05 --
Radio FM
Other
---
Interpretation
From the chart and table above we can say that 90 respondents have seen Sonalika advertisement in newspapers, 15 know about them through reference, 40 people have seen their advertisement on walls which are made by paint. 35 people have seen their hoardings and only 5 people came to know about them through exhibition.
Conclusion
The major objective for conducting this study was to know about the drawbacks of competitors of Sonalika, so here are some of the competitors and their drawbacks which I have concluded.
Mahindra
The Front lifting problem in the tractor. Although the Mahindra tractor manufacturers have given front weights to the tractor but inspite of which it gives front lifting problem. In the condition of sudden load tractors stops due to less Torque backup. Swaraj High diesel consumption even on less load. Tractor gives smoke even on less load. The tractors of Swaraj are still manufactured by old technology due to which their products lack innovation. The cost price of its spare parts is very high and the maintenance is too very costly.
suggestions
The companies should provide fuel efficiency and least average running cost per litre. As the prices of fuel are rising day by day so the consumer prefers the tractors with high fuel efficiency. So they want the manufacturers to manufacture the tractor with high fuel efficiency. There is less emphasis on advertisement of tractors. By increasing the advertisement expenditure company can create more awareness among people. The new advertisement techniques should be used apart from advertisements in newspapers, on the walls etc., they should also use the other major source of advertisement that is television. As now in villages every house is having a television so advertisements which can be aired on television should be made. Technology of the tractors should be keet up to date.
The maintenance cost should be within limits because they can cause much dissatisfaction among consumers if they are high.
The dealer network and authorized service stations should be opened up covering a wide area so as to increase the customer pool. Training should be given to the salesman on how to make sales through building better relationships and handling promotion material efficiently.
After sales service can be used as an important factor for creating differentiation
Bibliography
Reference to Webpage http://www.sonalika.com/ http://www.sonalika.com/whatdrives.aspx?id=whatdrive http://www.sonalika.com/history.aspx?id=history http://www.sonalika.com/milestones.aspx?id=milestones http://www.sonalika.com/overview.aspx?id=overview http://www.sonalika.com/itl.aspx?id=itl http://www.sonalika.com/icml.aspx?id=icml http://www.sonalika.com/agro.aspx?id=agro http://www.sonalika.com/iatl.aspx?id=iatl http://www.sonalika.com/financialPartners.aspx?IR=1
Thank you
