Description
Sales analysis examines sales reports to see what goods and services have and have not sold well. The analysis is used to determine how to stock inventory, how to measure the effectiveness of a sales force, how to set manufacturing capacity and to see how the company is performing against its goals.
SALES ANALYSIS REPORT ON MAHINDRA & MAHINDRA AND SWARAJ PRIVATE LTD. IN NAGPUR DISTRICT
CONTENTS
1. Objective Of The Project 2. Company profile 3. Executive Summary Of The Project 4. Research Methodology 5. Analysis & Interpretation Of Data
6. Conclusion 7. Suggestion 8. Bibliography
Objective Of The Project
Objective Of The Project The main objective of the project is To carry out Conquest analysis i.e. Victory Analysis of M & M Tractors in Nagpur District The other Objective of the project are as follows
1. To know about the preferences of customers while buying a tractor. 2. To know awareness of customers about other tractors & models. 3. To know the Information Sources Preferred by customers before buying tractors. 4. To know the persons who influences the final buying decision of customer & to know Performance parameters taken into consideration by customers before buying tractor. 5. To Know Likes & Dislikes of customers & to know the reasons due to which Swaraj customers did not buy M & M tractor. 6. To know the Sources of Finance used by Tractor owners. 7. To know second choice of customers while purchasing tractor. 8. To know crops grown, Land owned, Habits of tractor owner. 9. Use of tractor.
Company profile
Ma hi ndra & Ma hi ndra Company Profile Mahindra & Mahindra Limited, the flag-ship company of India's Automobile giant the Mahindra Group, was founded by two enterprising brothers K.C, Mahindra & J.C. Mahindra in 1945 just at the dawn of India's Independence with a vision to manufacture and market Jeeps. Today, Mahindra & Mahindra is one of the top ten private sector companies in India. The core business of the group of producing Utility Vehicles, Light Commercial Vehicles and Tractors has grown by leaps and bounds over these years. Mahindra & Mahindra Ltd., manufacturing facilities together cover an area of over 5,00,000 sq. meters employing over 17,000 technical and non-technical personnel. It can boast of having 8 state-of-the-art factories. One of the most progressive and dynamic divisions of Mahindra & Mahindra Ltd., is the Farm Equipment Sector (Tractor Division) which was started way back in 1963. The late 1960's witnessed the beginning of a new revolution in India. The Green Revolution". Mahindra & Mahindra took the lead and responded by launching their new
"
INTERNATIONAL" range of modem high performance tractors. In technical
Collaboration with the international Harvester Co. Ltd.,U.K., it set up international Tractor Co. of India Ltd. (LT.C.I) in 1963. The initial annual production was 3500 tractors , which gradually rose to 16,000 Tractors, in 1978. I.T.C.I merged with the parent company to be rechristened as Mahindra & Mahindra Ltd. Tractor Division, which now has a capacity of producing over 80,000 tractors The Farm Equipment Sector has manufacturing facilities at four locations i.e. Kandivil - A western suburb of Mumbai in the State of Maharashtra Nagpur, - The Orange City of Maharashtra Rudrapur - In Uttaranchal Jaipur In Rajasthan
Market Position: Mahindra & Mahindra Ltd., is the market leader consecutively for 22 years in the Indian Tractor industry, since 1983, with a market share of 31%. The Company has already produced and sold over 10,00,000 Tractors. M& M has 4 factories, 27 Area Offices, 500 Dealers, & 78 Stockiest in India. In Maharashtra it has 32 Dealers & 11 Stockiest . In addition to capturing the domestic market, M&M has also made significant progress in the intensely competitive overseas market. The company has already exported over 8500 Tractors to African Countries viz. Zimbabwe,Zambia, Malaysia,NewZealand ,Australia,Thyland,Turkey,Ghana ,Syria,Iran,Sudan,Chile,Mexico,Guyana,Uganda,Kongo,South Africa & neighboring Countries Nepal, Srilanka, Bangladesh ,China etc. M&M has also achieved a major break through in the U.S. Market.' The company has already exported over 6500 Tractors and have established a new subsidiary' in the US viz. Mahindra U.S.A.Inc., at Houston with the objective of increasing its sales in the U.S.A. Quality Sta ndards : Mahindra & Mahindra has also received ISO:9001(Kandivali Plant), & ISO 9002 QS-9000 (Nagpur Plant) the prestigious international quality certificate from RWTUV Germany for Design, Manufacture, Marketing & Servicing of Tractors. Mahindra Tractors Are at the cutting edge of the Tractor industry determined to be the 'WORLD LEADER BY THE YEAR 2005.M&M has won DEMING
ALLPICATION PRIZE in 2003 given by JUSE,JAPAN. It is the only tractor company in world to get this prize for quality Management.
Our Present Product Range
Up to 30 HP Yuvraj 265 DI Sarpanch 265 DI Bhoomiputra 30-40 HP Arjun 445 DI 275 DI Sarpanch 275 DI Bhoomiputra 475 DI Sarpanch 475 DI Bhoomiputra More than 40-HP 575 DI Sarpnch 575 DI Bhoomiputra 585 DI Sarpanch Arjun 605 DI Arjun 555 DI
Marketing Bulletin
Regarding Tractor Sales May 2010 Market Share (%) May 2009 Market Share
I
Make
Sales
Sales
(%)
I
MAHINDRA TAFE SWARAJ SONALIKA ESCORTS EICHER HMT OTHERS INDUSTRY TOTAL
6081 2835 2569 1843 1527 1361 620 2226 19062
31.9 14.9 13.5 9.7 8.0 7.1 3.3 11.6 100
4391 2589 2441 1503 2662 1305 690 1771 17352
,
25.3 14.9 14.1 8.7 15.3 7.5 4.0 10.2 100
Source: TMA
Special Features of Mahindra Tractor :
Since Mahindra Tractors have been manufactured by using advance technology & also manufactured in a factory possessing ISO-900l & QS-9000. Therefore there exist some special features.
These Special features of Mahindra Tractors are as given below: 1) Proper & effective utilisation of fuel. 2) Less - maintainance cost. 3) More deep ploughing is possible 4) Engine is having longer life. 5) Comfortable driving 6) Gar-box suitable for all kinds of works is present 7) Mahindra Tractor works excellently in all types of soils 8) 2 years or 2000 hrs. warranty 9) Safety Brakes arrangements are present 10) High load carrying capacity
Special features of Arjun model of Mahindra Tractor:
The Arjun model is a new model launched by Mahindra &.Mahindra. The special features of this Arjun model are as given below:
1) Due to Double Life P.L.F. - Engine
a) Tractor is possessing high power b) Engine Life is 8000 hrs c) Saving of fuel. 2) Due to Hy- TECH-HYDRAULICS - attachment, Tractor is having higher load carrying capacity & therefore Tractor becomes more suitable for Agricultural work & other work. 3) Due to DRY TYPE AIR CLEANER ,tractor is having longer life, less maintenance & good protection to engine.
4) Due to Power Steering tractor is easy for driving 5) Due to Constant Mesh Gear Box Attachment, shifting of gears becomes easy & tractor become more suitable for agriculture work. 6) Battery is having less maintenance. 7) Less consumption of Diesel & oil. 8) Powerful Halogen lamps become more useful in night.
Executive Summary Of The Project
Project Introduction
The project was carried out in Nagpur District. The areas to be covered were those areas where tractor population is good. The areas covered in this project are Mouda, parsheoni, Nagpur, Hingna, Kamthi, Ramtek .These areas are Taluka places & their surrounding villages.
The sample size was 90 Owners of M & M tractors & 60 owners of Swaraj tractors. The reason behind selecting Swaraj Co is that Swaraj is the main Competitor Of M & M tractors in Nagpur Region. The tractor owners contacted during the project were the owners who had bought M & M and Swaraj tractors during last 5 yrs. Majority of tractor owners are the owners who had bought tractor in last 3 years.
The reason behind taking 60 no as sample size of Swaraj owners is that even though they are main competitors of M & M, their tractor population is less as compared to M & M. The data was collected by using a Questionnaire .The Questionnaire contains five Sub topics Tractor History, Consideration &Awareness ,Buying Process , Purchase details & Profile of the Respondent.
In Tractor History all the details about tractor is taken like Make & model Registration Number etc. In Consideration & Awareness the Other tractors considered by respondent at the time of buying & are awareness about other tractor companies is tested.
In Buying Process the information sources used by tractor owners, Main influencers on final decision are traced out
In Purchase details, the financial Sources Used, Price of tractor, is traced out.
In Profile of the Respondent, The Crops grown, Land Cultivated, use of tractor for Agriculture & Non agriculture, His habits, His Financial Position is traced After filling the entire questionnaire the data collected is Analyzed, Interpreted using various techniques
After all this the conclusions are drawn .Finally on the basis of all this Suggestions are given to the Company.
Research Methodology
Re s e a rc h Me thodol og y Research Instrument: Structured Questionnaire
Sampling Plan: 1. Sample method: convenience sampling. 2. Sample size : 90 for M & M and 60 for Swaraj . 3. Total sample Size 150.
Sampling Design: Convenience Sampling There are various method of sample design are available but t conduct this Survey we select Convenience Sampling which is based on Convenience of Researcher. The respondent sample is included in it merely because of their availability on point where survey is in progress & tractor being up to 5 yr old. Types Of Data Basically there are two main types of data 1) Primary data 2) Secondary Data 1) Primary Data :The primary data are those which are collected fresh &for the first time & thus happen to be original in character. Such data are published by authorities who themselves are responsible for their collection. 2) Secondary Data :The secondary data are those which have already been collected by some other agency & which have previously been collected by some organization to satisfy its own need but it is being used by other department under reference for an entirely different reason.
Methods for collecting Primary Data: a) Interview Method of Data Collection b) Observation Method of Data Collection c) Questionnaire Method of Data Collection Method for collecting Secondary Data
d) Record Review Method of Data Collection
For Project Methods for collecting Primary Data For our Project we used following method a) Questionnaire Method of Data Collection According to this method a questionnaire is used for asking questions to respondents. A special & related question format is prepared for this. Method for collecting Secondary Data a) Record Review Method According to this method of secondary data collection manuals, magazines, brouchers, pamplets & annual reports of M & M Co have been studied to gather the necessary information.
Analysis & Interpretation Of Data
Total Samples Of Tractor Owners Taken In Nagpur District 150 nos.
Com pa n y w i se Dis tri buti on 1) Mahindra & Mahindra 2) Punjab Tractors Ltd (Swaraj Tractors) 90 no 60 no
Areas Covered In Project
Mouda, Ramtek, Parsheoni, Kamthi, Hingna, Nagpur
Area wise sample Distribution
Area Mouda Ramtek Kamthi Parsheoni Nagpur Hingna M&M 18 16 21 17 10 08 90
No 1 2 3 4 5 6 Total
Swaraj 25 10 08 06 07 04 30
Total
43 26 29 23 17 12
Mode l & Ye a r w i se di s tri buti on of M & M ow ne rs
Model
Nos .
JanDec. 2006
JanDec 2007
Jan Dec 2008
Jan Dec 2009
Jan Dec 2010
475 DI Sarpanch
20
5
4
3
6
2
475 DI Bhumiputra 6 1 1 0 3 2
575 DI Sarpanch
24
4
5
5
6
4
595 DI Superturbo 12 2 1 2 4 3
275 DI Sarpanch
9
1
1
2
2
3
275 DI Bhumiputra 6 2 2 1 0 1
Arjun 605 DI
8
1
1
2
1
3
Arjun 555 DI
5
1
1
0
1
2
Total
90
Model & Year wise distribution of Swaraj owners Jan- Dec. Model Swaraj 735 FE Nos 19 2006 6 Jan- Dec 2007 5 Jan Dec 2008 3 Jan Dec 2009 3 Jan Dec 2010 2
Swaraj 744 FE
26
6
4
6
6
4
Swraj 855
11
2
3
2
3
1
Swaraj 855 Delux
4
0
2
1
0
1
Total
60
Q. 1 a) For M & M Ow ners
M&M as 1st Total M & M Repeat buyer Choice Other tractors as 1st choice
90
30
44
16
Most Considered Model No 1 2 3 4 5 6 Model 575 DI Sarpanch 475 DI Sarpanch 275 DI Sarpanch 595 DI Super Turbo 605 DI Arjun 265 DI Sarpanch Nos 47 45 19 14 11 8 Percentage 78.33 75 31.66 23.33 18.33 13.33
Total No. Of Owners 60
Swaraj as 1st Choice 30
M & M as 1st Choice 13 2
Sonalika as 1st Choice st choice
1s
No 1 2 3 4 5
Model Swaraj 735 FE Swaraj 744 FE Swaraj 855 Swaraj 724 FE 575 DI Sarpanch 475 DI Sarpanch
Nos 19 28 28 5
Percentage 63.33 93.33 93.33 16.66
12
40
6
14
46.66
Q. 3) b) Awareness of M & M owners about M & M and other tractors
No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Model Eitcher Co. Messey Fergusson Co. Swaraj 744 FE Swaraj 855 Escorts 575 DI Sarpanch 475 DI Sarpanch M & M Co. Sonalika Co. 275 DI Sarpanch Swaraj Co. Ford New Holland L & T John deere Swaraj 735 FE Nos 39 36 30 30 37 34 33 26 28 25 30 29 26 21 Percentage 65 60 50 50 61.66 56.66 55 43.33 46.66 41.66 50 48.33 43.33 35
Awareness of Swaraj owners about M & M and other tractors
No 1 2 3 4 5 6 7 8 9 10 11 12 Model Messey Fergusson Co. Escorts Co. Swaraj 744 FE Swaraj 855 Swaraj 735 FE 575 DI Sarpanch 475 DI Sarpanch 275 DI Sarpanch Eicher Co. Sonalika Co. Ford New Holland Co. L & T Co. Nos 25 22 22 22 21 20 20 17 17 16 14 14 Percentage 83.33 73.33 73.33 73.33 70 66.66 66.66 56.66 56.66 53.33 46.66 46.66
Q. 4) Information Source / Information Sources For M & M
No 1 2 3 4 5 6 7 Source Friends/Relative Other tractor owners Mechanic Previous experience of tractor Tractor Dealers Family Members Sales Person Nos 50 56 39 Percentage 83.33 93.33 65
19 19 16 1
31.66 31.66 26.66 1.66
For S w araj O w n ers No 1 Source Other tractor owners 2 3 4 5 Friends/Relative 27 Mechanic Tractor Dealers Family Members 21 15 06 90.00 70.00 50.00 20.00 Nos 30 Percentage (%) 100.00
Q 5) Main Influences
For M & M No 1 2 3 4 5 6 7 8 Influences Family members other relatives Friends Other Tractor Owners Tractor Dealers Mechanic Television Own decision Total Nos 17 6 9 20 6 2 3 28 90 41.66 Percentage 15 1.66 8.33 28.33 5 For Swaraj Nos 9 2 5 17 5 3 4 15 60 3.33 3.33 50 Percentage 13.33
Q. 6)
Factors affecting buying decision :
For Swaraj Nos Percentage Nos 85 66.66 51.66 46.66 40 30 18.33 10 11.66 23.33 12 40 6 20 20 66.66 27 Percentage 90
For M & M No Fa ct o r s 1 2 3 4 5 6 7 8 9 Reasonable smaint/ Running cost Fuel efficiency Cheap & easy avail of spares Engine power Easy avail of service Application suitability Fase of driving Tractor styling Resale Value
51 40 31 28 24 18 11 6 7 7
10 Good Financing Option
Q.7 ) Liked Parameters to M & M owners
No Factors 1 Tractor quality 2 3 4 5 6 7 Power Fuel Efficiency Driving Comfort Styling of Model Status Spares availability Nos 43 31 39 27 25 15 4 Percentage 71.66 51.66 65 45 41.66 25 6.66
Disliked Parameters to M & M owners
Pre Post Warranty Warranty 7 7
No 1 2 3 4 5 6 7
Factors Experience at dealership Price Wear of rear tyres Size of fuel tank Hydraulic Problem Oil Leakage Sales Persons Behaviour
Nos
Percentage
14 5 5 4 4 3 3
46.66 16.66 16.66 13.33 13.33 10 10
4
1
3 3 1
1
2
Note : 30 owners have no dislike at all.
Q. 8) Main (Only) cause for not buying M & M
Previously owned M&M 2 1 1 1
No 1 2 3 4 5
Cause Relevant Financing not available Friends advice More maintenance of small type Less speed in work Plough work not good Others (Dealers advice ,want to try new tractor , dealers late approach, not good in mud ,Too costly
Nos. 6 5 4 3 2
Percent age
20 16.66 13.33 10 6.66 33.33
6
10
2
Other important reasons.
No 1 2 3 4 5 Cause Friends advice Low fuel efficiency Not enough power No tractor owner friend have it Relevent financing Nos 8 6 5 4 4
Q.9 ) a) About Discount
Company M&M No. of customers getting Discount 10 In Last 2 yrs. 9 2 Before Last 2 yrs. 1
Swaraj Total
3 13
1
11
2
Q. 9) b) About Implements
Without Percentage Implements 57 95 With implements 3 Percentage
Company M&M
5
Swaraj
26
86.66
4
13.33
Total
83
Q. 9) e) Managing Finance For Tractor
No Sources of Funds Nos 17 66 7 M&M 13 42 5 Swaraj 4 24 2
1 Complete Cash Down Payment 2 Partly from loans & Partly from savings 3 By selling old tractor
F o r M & M o wn e r s Sources of Funds
No
Nos
Within last 2 yrs
Percentage
Before last 2 yrs
Percent age
1 Complete Cash Down Payment
13
9
69
4
31
2 Partly from loans & Partly from savings 3 By selling old tractor
42
33 3
78 60
9 2
22
5
40
For Swaraj owners N o Sources of Funds Nos Within last 2 yrs Percentage Before last 2 yrs Percentage
1 Complete Cash Down Payment
4
1
25
3
75
2 Partly from loans & Partly from savings By selling old tractor
24
18
75
6
25
3
2
2
100
0
0
Q. 11) Source of Loans No 1 Source of Funds Loan & Savings M&M 42 Swaraj 24
No Company
Nationalised Cooperative Bank Bank 31 18 3 3
Pvt. Finance Companies 8 2
Pvt. Bank 0 1
Total
1 2
M&M Swaraj
42 24
No
M&M owners (Within warranty) 33
Nationalised Bank
Cooperative Bank
Pvt. Finance companies
Pvt Bank
1
22
3
8 (MM FSL-7)
0
Q. 12) Selling Old Tractor
No.
M&M 5 (M & M to M &M = 4 MF to M & M = 1)
Within 2 yrs
Before 2 yrs
1
3
2
Swaraj 1 2 MF to Swaraj 1, Ford to Swaraj =1 Q . 1 3 ) 2 n d C h o i c e o f M & M ow n e rs No 1 Swaraj 31 Company Name Nos Reason Good Power, Working speed , Low maint, success in area, good in farm & mud Previous experience, good fule efficiency, good quality, less maintenance Good power, Less maint. Good quallity, less maint, brand name Good substitute to M & M Good in farms Low maintenance 2 0
2
Messey Fergusson L & T John Deere
10 6
3
4
Sonalika Eicher Ford HMT
3 3 3 1
5 6 7
2 n d c h o i c e o f S w ar a j ow ne r s No Company Nos Reason
1 M&M 28
Less maint, Fuel efficiency, Brand name, Spare availability Low maintenance Wish to try new tractor
2 3
Sonalika L&T
1 1
No 1
Previously owned M &M 27
M & M to M&M 20
M & M to Swaraj 7
No
Previously owned Swaraj 5
Swaraj to M & M
Swaraj to Swaraj
1
0
5
No 1 2 3
Shift from - to MF to Swaraj MF to M & M Ford to Swaraj
Nos 2 2 2
Note : 4 Customers told that they will not buy any tractor other than M & M
Q. 16 : Cultivating Practices No Activities 1 2 3 4 Total 1 to 5 & 12 1 to 5 1 to 6 & 12 1 to 6 Nos 49 12 29 0 90 M&M 35 9 16 0 60 Swaraj 14 3 13 0 30
1- Breaking land, 2- levelling field, 3- Ploughing, 4- Removing grass, 5 - Cutting crops residue, 6- Sowing 12 - rent to others
Q. 17 : Non Agricultural activities of Tractor Owners No Activities 1 2 3 4 5 None Transporting Goods Transporting passengers Construction (2 & 4) Total Nos 36 45 0 1 8 90 M&M 26 27 0 1 6 60 Swaraj 10 18 0 0 2 30
Q . 1 8 ) Ha bi ts O f Tra c tor Ow ners No Items M&M 50 10 Swaraj 28 2
1 Watch TV (DD1) Watch cable
2 Listen to Radio Not listen to Radio
18 42
7 23
Reads magazine (India 3 today, Krishi vigyan, Saptahik sakal, Nyanganga
4
1
Q. 22) Margin Money paid to dealer No 1 2 3 4 5 6 7 8 9 10 11 12 Total Amount 30,000 40,000 50,000 60,000 70,000 75,000 80,000 90,000 1,00,000 1,15,000 1,20,000 1,50,000 M&M 2 2 7 12 5 12 5 1 12 1 0 1 60 Swaraj 0 1 7 8 1 3 2 2 6 0 0 0 30
Conclusion
Conclusions The main reasons for M & Ms Victory are Parameters like Reasonable maintenance ,Fuel efficiency, Cheap & Easy Availability of Spares & Service, Engine Power, Application suitability All the respondents including Swaraj Owners Knows M & M tractor& its models 56 % of the Swaraj owner's first choice was M & M & 90 % of Swaraj owners rates M & M as 2nd choice Apart from M & M other most known tractor companies are Eicher,Messey Fergusson, Escorts,Swaraj ,Sonalika In both cases i.e. M & M and Swaraj the mostly used Information sources are Other Tractor Owners, Friends/Relatives,& Mechanics resply In case of M & M the main Influencers in final buying decision are Own decision, Tractor owners, family members. But main Influencers is Owners own Decision In case of Swaraj Main Influencers in final buying decision are Other tractor owners,Own Decision resply, But main Influencer is Tractor owners. In case of M & M the parameters affecting buying decision are Reasonable maint, Fuel Efficiency, Cheap & easy avail of spares& Service,& Application suitability. In case of Swaraj the parameters affecting buying decision are Reasonable Mai nt,engine Power, Application suitability. The Most Liked Parameters to M & M owners are Tractor Quality
Power,Fuel Efficiency,Driving comfort,& Styling of model The Most Disliked parameters to M & M owners are Experience at Dealer,Price,Wear of rear tyres,Hydraulic Problem. The main reason for not buying M & M are Relevant financing sources not available, Friends advice, More maintenance. Most of the tractor owners of both M & M and Swaraj dont buy implements along with tractor. Most of the tractor owners ,of both M & M and Swaraj has taken loan for buying tractor. 75% of M & M & Swaraj owners both has taken loan from Nationalized Banks. 45% of M & M and 60% of Swaraj owners use tractor for Transporting Goods 43% of M & M and 33% of Swaraj owners dont use tractor for non-agricultural use. Not a single Tractor owner took Test Drive before buying tractor Doordarshan is most popular T.V.channel & Lokmat is the most popular Newspaper 93.33% of M & M owners have only one tractor & remaining have more than 1 tractor while in case of Swaraj 100% of Swaraj owners have only one tractor. The main Crops taken by Tractor owners are Soya bean, Paddy,Wheat,Gram,Cotton,Vegetables,
Suggestions
Dealer should provide enough time to tractor buyers for making loan proposals.
Tractor Dealers should give enough time to customers for making loan proposals The reasons for sales of Swaraj tractor are reasonable maintenance, Good Financing options, application suitability. These parameters should be taken into consideration by M & M .
Schemes like free gifts on purchase of tractor should be encouraged more Information about tractor, service, Warranty, schemes can be given to Customers in VCD as nearly 50 % of tractor owners have VCD players
The disliked parameters like experience at dealer, tyre problem, sales persons behaviour should be removed Trained mechanics should be appointed both at workshop & for field visits for attending complaints
A n n e xu re The following important annexure relevant to this study is enclosed herewith
Slide 1
Most Considered Models By M & M Ow ners
Slide 2
Most Considered Models By Swaraj Owners
Slid e 3
Sl id e 4
Main Influencers For M & M An Swaraj Owners
Slid e 5
PARAMETERS AFFECTING BUYING DECISION
Slide 6
LIKED PARAMETERS OF M & M OWNERS
Tractor quality Pow er Fuel Driving Efficiency Comfort
Styling of Model Status Spares availability
Slide 7
Slide 8
Slid e 9
Slid e 10
Slid e 11
Slid e 12
Slid e 13
Sl id e 1 4
Sl id e 1 5
doc_900342490.docx
Sales analysis examines sales reports to see what goods and services have and have not sold well. The analysis is used to determine how to stock inventory, how to measure the effectiveness of a sales force, how to set manufacturing capacity and to see how the company is performing against its goals.
SALES ANALYSIS REPORT ON MAHINDRA & MAHINDRA AND SWARAJ PRIVATE LTD. IN NAGPUR DISTRICT
CONTENTS
1. Objective Of The Project 2. Company profile 3. Executive Summary Of The Project 4. Research Methodology 5. Analysis & Interpretation Of Data
6. Conclusion 7. Suggestion 8. Bibliography
Objective Of The Project
Objective Of The Project The main objective of the project is To carry out Conquest analysis i.e. Victory Analysis of M & M Tractors in Nagpur District The other Objective of the project are as follows
1. To know about the preferences of customers while buying a tractor. 2. To know awareness of customers about other tractors & models. 3. To know the Information Sources Preferred by customers before buying tractors. 4. To know the persons who influences the final buying decision of customer & to know Performance parameters taken into consideration by customers before buying tractor. 5. To Know Likes & Dislikes of customers & to know the reasons due to which Swaraj customers did not buy M & M tractor. 6. To know the Sources of Finance used by Tractor owners. 7. To know second choice of customers while purchasing tractor. 8. To know crops grown, Land owned, Habits of tractor owner. 9. Use of tractor.
Company profile
Ma hi ndra & Ma hi ndra Company Profile Mahindra & Mahindra Limited, the flag-ship company of India's Automobile giant the Mahindra Group, was founded by two enterprising brothers K.C, Mahindra & J.C. Mahindra in 1945 just at the dawn of India's Independence with a vision to manufacture and market Jeeps. Today, Mahindra & Mahindra is one of the top ten private sector companies in India. The core business of the group of producing Utility Vehicles, Light Commercial Vehicles and Tractors has grown by leaps and bounds over these years. Mahindra & Mahindra Ltd., manufacturing facilities together cover an area of over 5,00,000 sq. meters employing over 17,000 technical and non-technical personnel. It can boast of having 8 state-of-the-art factories. One of the most progressive and dynamic divisions of Mahindra & Mahindra Ltd., is the Farm Equipment Sector (Tractor Division) which was started way back in 1963. The late 1960's witnessed the beginning of a new revolution in India. The Green Revolution". Mahindra & Mahindra took the lead and responded by launching their new
"
INTERNATIONAL" range of modem high performance tractors. In technical
Collaboration with the international Harvester Co. Ltd.,U.K., it set up international Tractor Co. of India Ltd. (LT.C.I) in 1963. The initial annual production was 3500 tractors , which gradually rose to 16,000 Tractors, in 1978. I.T.C.I merged with the parent company to be rechristened as Mahindra & Mahindra Ltd. Tractor Division, which now has a capacity of producing over 80,000 tractors The Farm Equipment Sector has manufacturing facilities at four locations i.e. Kandivil - A western suburb of Mumbai in the State of Maharashtra Nagpur, - The Orange City of Maharashtra Rudrapur - In Uttaranchal Jaipur In Rajasthan
Market Position: Mahindra & Mahindra Ltd., is the market leader consecutively for 22 years in the Indian Tractor industry, since 1983, with a market share of 31%. The Company has already produced and sold over 10,00,000 Tractors. M& M has 4 factories, 27 Area Offices, 500 Dealers, & 78 Stockiest in India. In Maharashtra it has 32 Dealers & 11 Stockiest . In addition to capturing the domestic market, M&M has also made significant progress in the intensely competitive overseas market. The company has already exported over 8500 Tractors to African Countries viz. Zimbabwe,Zambia, Malaysia,NewZealand ,Australia,Thyland,Turkey,Ghana ,Syria,Iran,Sudan,Chile,Mexico,Guyana,Uganda,Kongo,South Africa & neighboring Countries Nepal, Srilanka, Bangladesh ,China etc. M&M has also achieved a major break through in the U.S. Market.' The company has already exported over 6500 Tractors and have established a new subsidiary' in the US viz. Mahindra U.S.A.Inc., at Houston with the objective of increasing its sales in the U.S.A. Quality Sta ndards : Mahindra & Mahindra has also received ISO:9001(Kandivali Plant), & ISO 9002 QS-9000 (Nagpur Plant) the prestigious international quality certificate from RWTUV Germany for Design, Manufacture, Marketing & Servicing of Tractors. Mahindra Tractors Are at the cutting edge of the Tractor industry determined to be the 'WORLD LEADER BY THE YEAR 2005.M&M has won DEMING
ALLPICATION PRIZE in 2003 given by JUSE,JAPAN. It is the only tractor company in world to get this prize for quality Management.
Our Present Product Range
Up to 30 HP Yuvraj 265 DI Sarpanch 265 DI Bhoomiputra 30-40 HP Arjun 445 DI 275 DI Sarpanch 275 DI Bhoomiputra 475 DI Sarpanch 475 DI Bhoomiputra More than 40-HP 575 DI Sarpnch 575 DI Bhoomiputra 585 DI Sarpanch Arjun 605 DI Arjun 555 DI
Marketing Bulletin
Regarding Tractor Sales May 2010 Market Share (%) May 2009 Market Share
I
Make
Sales
Sales
(%)
I
MAHINDRA TAFE SWARAJ SONALIKA ESCORTS EICHER HMT OTHERS INDUSTRY TOTAL
6081 2835 2569 1843 1527 1361 620 2226 19062
31.9 14.9 13.5 9.7 8.0 7.1 3.3 11.6 100
4391 2589 2441 1503 2662 1305 690 1771 17352
,
25.3 14.9 14.1 8.7 15.3 7.5 4.0 10.2 100
Source: TMA
Special Features of Mahindra Tractor :
Since Mahindra Tractors have been manufactured by using advance technology & also manufactured in a factory possessing ISO-900l & QS-9000. Therefore there exist some special features.
These Special features of Mahindra Tractors are as given below: 1) Proper & effective utilisation of fuel. 2) Less - maintainance cost. 3) More deep ploughing is possible 4) Engine is having longer life. 5) Comfortable driving 6) Gar-box suitable for all kinds of works is present 7) Mahindra Tractor works excellently in all types of soils 8) 2 years or 2000 hrs. warranty 9) Safety Brakes arrangements are present 10) High load carrying capacity
Special features of Arjun model of Mahindra Tractor:
The Arjun model is a new model launched by Mahindra &.Mahindra. The special features of this Arjun model are as given below:
1) Due to Double Life P.L.F. - Engine
a) Tractor is possessing high power b) Engine Life is 8000 hrs c) Saving of fuel. 2) Due to Hy- TECH-HYDRAULICS - attachment, Tractor is having higher load carrying capacity & therefore Tractor becomes more suitable for Agricultural work & other work. 3) Due to DRY TYPE AIR CLEANER ,tractor is having longer life, less maintenance & good protection to engine.
4) Due to Power Steering tractor is easy for driving 5) Due to Constant Mesh Gear Box Attachment, shifting of gears becomes easy & tractor become more suitable for agriculture work. 6) Battery is having less maintenance. 7) Less consumption of Diesel & oil. 8) Powerful Halogen lamps become more useful in night.
Executive Summary Of The Project
Project Introduction
The project was carried out in Nagpur District. The areas to be covered were those areas where tractor population is good. The areas covered in this project are Mouda, parsheoni, Nagpur, Hingna, Kamthi, Ramtek .These areas are Taluka places & their surrounding villages.
The sample size was 90 Owners of M & M tractors & 60 owners of Swaraj tractors. The reason behind selecting Swaraj Co is that Swaraj is the main Competitor Of M & M tractors in Nagpur Region. The tractor owners contacted during the project were the owners who had bought M & M and Swaraj tractors during last 5 yrs. Majority of tractor owners are the owners who had bought tractor in last 3 years.
The reason behind taking 60 no as sample size of Swaraj owners is that even though they are main competitors of M & M, their tractor population is less as compared to M & M. The data was collected by using a Questionnaire .The Questionnaire contains five Sub topics Tractor History, Consideration &Awareness ,Buying Process , Purchase details & Profile of the Respondent.
In Tractor History all the details about tractor is taken like Make & model Registration Number etc. In Consideration & Awareness the Other tractors considered by respondent at the time of buying & are awareness about other tractor companies is tested.
In Buying Process the information sources used by tractor owners, Main influencers on final decision are traced out
In Purchase details, the financial Sources Used, Price of tractor, is traced out.
In Profile of the Respondent, The Crops grown, Land Cultivated, use of tractor for Agriculture & Non agriculture, His habits, His Financial Position is traced After filling the entire questionnaire the data collected is Analyzed, Interpreted using various techniques
After all this the conclusions are drawn .Finally on the basis of all this Suggestions are given to the Company.
Research Methodology
Re s e a rc h Me thodol og y Research Instrument: Structured Questionnaire
Sampling Plan: 1. Sample method: convenience sampling. 2. Sample size : 90 for M & M and 60 for Swaraj . 3. Total sample Size 150.
Sampling Design: Convenience Sampling There are various method of sample design are available but t conduct this Survey we select Convenience Sampling which is based on Convenience of Researcher. The respondent sample is included in it merely because of their availability on point where survey is in progress & tractor being up to 5 yr old. Types Of Data Basically there are two main types of data 1) Primary data 2) Secondary Data 1) Primary Data :The primary data are those which are collected fresh &for the first time & thus happen to be original in character. Such data are published by authorities who themselves are responsible for their collection. 2) Secondary Data :The secondary data are those which have already been collected by some other agency & which have previously been collected by some organization to satisfy its own need but it is being used by other department under reference for an entirely different reason.
Methods for collecting Primary Data: a) Interview Method of Data Collection b) Observation Method of Data Collection c) Questionnaire Method of Data Collection Method for collecting Secondary Data
d) Record Review Method of Data Collection
For Project Methods for collecting Primary Data For our Project we used following method a) Questionnaire Method of Data Collection According to this method a questionnaire is used for asking questions to respondents. A special & related question format is prepared for this. Method for collecting Secondary Data a) Record Review Method According to this method of secondary data collection manuals, magazines, brouchers, pamplets & annual reports of M & M Co have been studied to gather the necessary information.
Analysis & Interpretation Of Data
Total Samples Of Tractor Owners Taken In Nagpur District 150 nos.
Com pa n y w i se Dis tri buti on 1) Mahindra & Mahindra 2) Punjab Tractors Ltd (Swaraj Tractors) 90 no 60 no
Areas Covered In Project
Mouda, Ramtek, Parsheoni, Kamthi, Hingna, Nagpur
Area wise sample Distribution
Area Mouda Ramtek Kamthi Parsheoni Nagpur Hingna M&M 18 16 21 17 10 08 90
No 1 2 3 4 5 6 Total
Swaraj 25 10 08 06 07 04 30
Total
43 26 29 23 17 12
Mode l & Ye a r w i se di s tri buti on of M & M ow ne rs
Model
Nos .
JanDec. 2006
JanDec 2007
Jan Dec 2008
Jan Dec 2009
Jan Dec 2010
475 DI Sarpanch
20
5
4
3
6
2
475 DI Bhumiputra 6 1 1 0 3 2
575 DI Sarpanch
24
4
5
5
6
4
595 DI Superturbo 12 2 1 2 4 3
275 DI Sarpanch
9
1
1
2
2
3
275 DI Bhumiputra 6 2 2 1 0 1
Arjun 605 DI
8
1
1
2
1
3
Arjun 555 DI
5
1
1
0
1
2
Total
90
Model & Year wise distribution of Swaraj owners Jan- Dec. Model Swaraj 735 FE Nos 19 2006 6 Jan- Dec 2007 5 Jan Dec 2008 3 Jan Dec 2009 3 Jan Dec 2010 2
Swaraj 744 FE
26
6
4
6
6
4
Swraj 855
11
2
3
2
3
1
Swaraj 855 Delux
4
0
2
1
0
1
Total
60
Q. 1 a) For M & M Ow ners
M&M as 1st Total M & M Repeat buyer Choice Other tractors as 1st choice
90
30
44
16
Most Considered Model No 1 2 3 4 5 6 Model 575 DI Sarpanch 475 DI Sarpanch 275 DI Sarpanch 595 DI Super Turbo 605 DI Arjun 265 DI Sarpanch Nos 47 45 19 14 11 8 Percentage 78.33 75 31.66 23.33 18.33 13.33
Total No. Of Owners 60
Swaraj as 1st Choice 30
M & M as 1st Choice 13 2
Sonalika as 1st Choice st choice
1s
No 1 2 3 4 5
Model Swaraj 735 FE Swaraj 744 FE Swaraj 855 Swaraj 724 FE 575 DI Sarpanch 475 DI Sarpanch
Nos 19 28 28 5
Percentage 63.33 93.33 93.33 16.66
12
40
6
14
46.66
Q. 3) b) Awareness of M & M owners about M & M and other tractors
No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Model Eitcher Co. Messey Fergusson Co. Swaraj 744 FE Swaraj 855 Escorts 575 DI Sarpanch 475 DI Sarpanch M & M Co. Sonalika Co. 275 DI Sarpanch Swaraj Co. Ford New Holland L & T John deere Swaraj 735 FE Nos 39 36 30 30 37 34 33 26 28 25 30 29 26 21 Percentage 65 60 50 50 61.66 56.66 55 43.33 46.66 41.66 50 48.33 43.33 35
Awareness of Swaraj owners about M & M and other tractors
No 1 2 3 4 5 6 7 8 9 10 11 12 Model Messey Fergusson Co. Escorts Co. Swaraj 744 FE Swaraj 855 Swaraj 735 FE 575 DI Sarpanch 475 DI Sarpanch 275 DI Sarpanch Eicher Co. Sonalika Co. Ford New Holland Co. L & T Co. Nos 25 22 22 22 21 20 20 17 17 16 14 14 Percentage 83.33 73.33 73.33 73.33 70 66.66 66.66 56.66 56.66 53.33 46.66 46.66
Q. 4) Information Source / Information Sources For M & M
No 1 2 3 4 5 6 7 Source Friends/Relative Other tractor owners Mechanic Previous experience of tractor Tractor Dealers Family Members Sales Person Nos 50 56 39 Percentage 83.33 93.33 65
19 19 16 1
31.66 31.66 26.66 1.66
For S w araj O w n ers No 1 Source Other tractor owners 2 3 4 5 Friends/Relative 27 Mechanic Tractor Dealers Family Members 21 15 06 90.00 70.00 50.00 20.00 Nos 30 Percentage (%) 100.00
Q 5) Main Influences
For M & M No 1 2 3 4 5 6 7 8 Influences Family members other relatives Friends Other Tractor Owners Tractor Dealers Mechanic Television Own decision Total Nos 17 6 9 20 6 2 3 28 90 41.66 Percentage 15 1.66 8.33 28.33 5 For Swaraj Nos 9 2 5 17 5 3 4 15 60 3.33 3.33 50 Percentage 13.33
Q. 6)
Factors affecting buying decision :
For Swaraj Nos Percentage Nos 85 66.66 51.66 46.66 40 30 18.33 10 11.66 23.33 12 40 6 20 20 66.66 27 Percentage 90
For M & M No Fa ct o r s 1 2 3 4 5 6 7 8 9 Reasonable smaint/ Running cost Fuel efficiency Cheap & easy avail of spares Engine power Easy avail of service Application suitability Fase of driving Tractor styling Resale Value
51 40 31 28 24 18 11 6 7 7
10 Good Financing Option
Q.7 ) Liked Parameters to M & M owners
No Factors 1 Tractor quality 2 3 4 5 6 7 Power Fuel Efficiency Driving Comfort Styling of Model Status Spares availability Nos 43 31 39 27 25 15 4 Percentage 71.66 51.66 65 45 41.66 25 6.66
Disliked Parameters to M & M owners
Pre Post Warranty Warranty 7 7
No 1 2 3 4 5 6 7
Factors Experience at dealership Price Wear of rear tyres Size of fuel tank Hydraulic Problem Oil Leakage Sales Persons Behaviour
Nos
Percentage
14 5 5 4 4 3 3
46.66 16.66 16.66 13.33 13.33 10 10
4
1
3 3 1
1
2
Note : 30 owners have no dislike at all.
Q. 8) Main (Only) cause for not buying M & M
Previously owned M&M 2 1 1 1
No 1 2 3 4 5
Cause Relevant Financing not available Friends advice More maintenance of small type Less speed in work Plough work not good Others (Dealers advice ,want to try new tractor , dealers late approach, not good in mud ,Too costly
Nos. 6 5 4 3 2
Percent age
20 16.66 13.33 10 6.66 33.33
6
10
2
Other important reasons.
No 1 2 3 4 5 Cause Friends advice Low fuel efficiency Not enough power No tractor owner friend have it Relevent financing Nos 8 6 5 4 4
Q.9 ) a) About Discount
Company M&M No. of customers getting Discount 10 In Last 2 yrs. 9 2 Before Last 2 yrs. 1
Swaraj Total
3 13
1
11
2
Q. 9) b) About Implements
Without Percentage Implements 57 95 With implements 3 Percentage
Company M&M
5
Swaraj
26
86.66
4
13.33
Total
83
Q. 9) e) Managing Finance For Tractor
No Sources of Funds Nos 17 66 7 M&M 13 42 5 Swaraj 4 24 2
1 Complete Cash Down Payment 2 Partly from loans & Partly from savings 3 By selling old tractor
F o r M & M o wn e r s Sources of Funds
No
Nos
Within last 2 yrs
Percentage
Before last 2 yrs
Percent age
1 Complete Cash Down Payment
13
9
69
4
31
2 Partly from loans & Partly from savings 3 By selling old tractor
42
33 3
78 60
9 2
22
5
40
For Swaraj owners N o Sources of Funds Nos Within last 2 yrs Percentage Before last 2 yrs Percentage
1 Complete Cash Down Payment
4
1
25
3
75
2 Partly from loans & Partly from savings By selling old tractor
24
18
75
6
25
3
2
2
100
0
0
Q. 11) Source of Loans No 1 Source of Funds Loan & Savings M&M 42 Swaraj 24
No Company
Nationalised Cooperative Bank Bank 31 18 3 3
Pvt. Finance Companies 8 2
Pvt. Bank 0 1
Total
1 2
M&M Swaraj
42 24
No
M&M owners (Within warranty) 33
Nationalised Bank
Cooperative Bank
Pvt. Finance companies
Pvt Bank
1
22
3
8 (MM FSL-7)
0
Q. 12) Selling Old Tractor
No.
M&M 5 (M & M to M &M = 4 MF to M & M = 1)
Within 2 yrs
Before 2 yrs
1
3
2
Swaraj 1 2 MF to Swaraj 1, Ford to Swaraj =1 Q . 1 3 ) 2 n d C h o i c e o f M & M ow n e rs No 1 Swaraj 31 Company Name Nos Reason Good Power, Working speed , Low maint, success in area, good in farm & mud Previous experience, good fule efficiency, good quality, less maintenance Good power, Less maint. Good quallity, less maint, brand name Good substitute to M & M Good in farms Low maintenance 2 0
2
Messey Fergusson L & T John Deere
10 6
3
4
Sonalika Eicher Ford HMT
3 3 3 1
5 6 7
2 n d c h o i c e o f S w ar a j ow ne r s No Company Nos Reason
1 M&M 28
Less maint, Fuel efficiency, Brand name, Spare availability Low maintenance Wish to try new tractor
2 3
Sonalika L&T
1 1
No 1
Previously owned M &M 27
M & M to M&M 20
M & M to Swaraj 7
No
Previously owned Swaraj 5
Swaraj to M & M
Swaraj to Swaraj
1
0
5
No 1 2 3
Shift from - to MF to Swaraj MF to M & M Ford to Swaraj
Nos 2 2 2
Note : 4 Customers told that they will not buy any tractor other than M & M
Q. 16 : Cultivating Practices No Activities 1 2 3 4 Total 1 to 5 & 12 1 to 5 1 to 6 & 12 1 to 6 Nos 49 12 29 0 90 M&M 35 9 16 0 60 Swaraj 14 3 13 0 30
1- Breaking land, 2- levelling field, 3- Ploughing, 4- Removing grass, 5 - Cutting crops residue, 6- Sowing 12 - rent to others
Q. 17 : Non Agricultural activities of Tractor Owners No Activities 1 2 3 4 5 None Transporting Goods Transporting passengers Construction (2 & 4) Total Nos 36 45 0 1 8 90 M&M 26 27 0 1 6 60 Swaraj 10 18 0 0 2 30
Q . 1 8 ) Ha bi ts O f Tra c tor Ow ners No Items M&M 50 10 Swaraj 28 2
1 Watch TV (DD1) Watch cable
2 Listen to Radio Not listen to Radio
18 42
7 23
Reads magazine (India 3 today, Krishi vigyan, Saptahik sakal, Nyanganga
4
1
Q. 22) Margin Money paid to dealer No 1 2 3 4 5 6 7 8 9 10 11 12 Total Amount 30,000 40,000 50,000 60,000 70,000 75,000 80,000 90,000 1,00,000 1,15,000 1,20,000 1,50,000 M&M 2 2 7 12 5 12 5 1 12 1 0 1 60 Swaraj 0 1 7 8 1 3 2 2 6 0 0 0 30
Conclusion
Conclusions The main reasons for M & Ms Victory are Parameters like Reasonable maintenance ,Fuel efficiency, Cheap & Easy Availability of Spares & Service, Engine Power, Application suitability All the respondents including Swaraj Owners Knows M & M tractor& its models 56 % of the Swaraj owner's first choice was M & M & 90 % of Swaraj owners rates M & M as 2nd choice Apart from M & M other most known tractor companies are Eicher,Messey Fergusson, Escorts,Swaraj ,Sonalika In both cases i.e. M & M and Swaraj the mostly used Information sources are Other Tractor Owners, Friends/Relatives,& Mechanics resply In case of M & M the main Influencers in final buying decision are Own decision, Tractor owners, family members. But main Influencers is Owners own Decision In case of Swaraj Main Influencers in final buying decision are Other tractor owners,Own Decision resply, But main Influencer is Tractor owners. In case of M & M the parameters affecting buying decision are Reasonable maint, Fuel Efficiency, Cheap & easy avail of spares& Service,& Application suitability. In case of Swaraj the parameters affecting buying decision are Reasonable Mai nt,engine Power, Application suitability. The Most Liked Parameters to M & M owners are Tractor Quality
Power,Fuel Efficiency,Driving comfort,& Styling of model The Most Disliked parameters to M & M owners are Experience at Dealer,Price,Wear of rear tyres,Hydraulic Problem. The main reason for not buying M & M are Relevant financing sources not available, Friends advice, More maintenance. Most of the tractor owners of both M & M and Swaraj dont buy implements along with tractor. Most of the tractor owners ,of both M & M and Swaraj has taken loan for buying tractor. 75% of M & M & Swaraj owners both has taken loan from Nationalized Banks. 45% of M & M and 60% of Swaraj owners use tractor for Transporting Goods 43% of M & M and 33% of Swaraj owners dont use tractor for non-agricultural use. Not a single Tractor owner took Test Drive before buying tractor Doordarshan is most popular T.V.channel & Lokmat is the most popular Newspaper 93.33% of M & M owners have only one tractor & remaining have more than 1 tractor while in case of Swaraj 100% of Swaraj owners have only one tractor. The main Crops taken by Tractor owners are Soya bean, Paddy,Wheat,Gram,Cotton,Vegetables,
Suggestions
Dealer should provide enough time to tractor buyers for making loan proposals.
Tractor Dealers should give enough time to customers for making loan proposals The reasons for sales of Swaraj tractor are reasonable maintenance, Good Financing options, application suitability. These parameters should be taken into consideration by M & M .
Schemes like free gifts on purchase of tractor should be encouraged more Information about tractor, service, Warranty, schemes can be given to Customers in VCD as nearly 50 % of tractor owners have VCD players
The disliked parameters like experience at dealer, tyre problem, sales persons behaviour should be removed Trained mechanics should be appointed both at workshop & for field visits for attending complaints
A n n e xu re The following important annexure relevant to this study is enclosed herewith
Slide 1
Most Considered Models By M & M Ow ners
Slide 2
Most Considered Models By Swaraj Owners
Slid e 3
Sl id e 4
Main Influencers For M & M An Swaraj Owners
Slid e 5
PARAMETERS AFFECTING BUYING DECISION
Slide 6
LIKED PARAMETERS OF M & M OWNERS
Tractor quality Pow er Fuel Driving Efficiency Comfort
Styling of Model Status Spares availability
Slide 7
Slide 8
Slid e 9
Slid e 10
Slid e 11
Slid e 12
Slid e 13
Sl id e 1 4
Sl id e 1 5
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