Mahindra Tractor (rural strategy & experience)
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Mahindra & Mahindra is the leading tractor manufacturer in India, with 42% of Indian farmers preferring M&M tractors. M&M has been successful due to their rural-focused strategy of providing accessible after-sales service through local mechanics twice a week and using familiar engine designs. Their marketing emphasizes affordability through financing options and model names suited to rural audiences. M&M regularly holds service camps with component suppliers to maintain relationships with farmers. Due to these strategies that focus on the rural customer experience, M&M has seen encouraging performance as India's number one tractor manufacturer.
Mahindra Tractor (rural strategy & experience)
- 1. Mahindra Tractor rural strategy & experience
- 2. • Bulldozers were imported for land reclamation and cultivation in mid- 1940s. • In 1947 central and state tractor organizations were set up to develop and promote the supply and use of tractors in agriculture. • Local production began in 1961 with five manufacturers (Eicher, Gujarat Tractors, TAFE, Escorts, M&M) producing a total of 880 units per year. And by now one third of the world’s Tractor production is in India. There are currently 14 players in the industry.
- 3. • Mahindra & Mahindra is the leading player in the industry. • The US $6.7 billion Mahindra Group is among the top 10 industrial houses in India. • Mahindra & Mahindra is the only Indian company among the top tractor brands in the world. • The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its Global 200: The World's Best Corporate Reputations list. • 42% of Indian Farmers using tractor prefer M&M. 0 5 10 15 20 25 30 35 Mahindra Tafe Swaraj Eicher Escort John Deere No.ofrespopondents Brands
- 5. SALES PROMOTION Good communication system and customer relations service. Gifts to loyal customers. Offering gift with the product (LIVE). Participation in marketing fair in rural areas. Free service coupon warranty. Fuel check up camp.
- 6. ADVERTISEMENT TOOLS Banners and Posters. Printing and calendars. Catalogue advertising. Window display. Pamphlets advertising. Construction of circles. Gift bags/ carry bags. Anniversary functions. News Papers. Wall Paintings.
- 7. SOURCES OF AWARENESS T.V.Adds 4% wall painting 36% Magazines 6% Others 54%
- 8. MARKETING STRATEGY • Company mechanics go around to villages twice a week to provide after-sales service, an important factor in the decision to purchase consumer durables. • It was clear that the availability of spare parts was very easy. • The engine was an instant hit because rural mechanics found it easier to service, since locals were very familiar with the Mahindra Jeep engine. • Claiming itself India's No. 1 Tractor manufacturer. • Excellent mileage leaving others far behind,
- 9. • Farmer's choice, of tractor size, is a compromise, between, the utility of the tractor, for multiple uses, including, haulage and, its price. • M&M regularly organize service camps in rural areas. They invite tyre, battery, fuel injection and other component suppliers to participate. • Tractor Finance for Agricultural Purposes by Kotak Mahindra. • Model names and tags suiting rural India.
- 10. CONCLUSION From the above it is clearly found that the performance of Mahindra and Mahindra tractor in this tractor market is very encouraging. And the business strategy is very highly competitive and innovative. Questions ???
- 11. Thank U