CHAPTER 1

INTRODUCTION
1.1. Introduction
Marketing is a set of human activities directed at facilitating and consummating exchanges. - Philip Kotler Marketing strategy is a process that can allow an organization to concentrate its limited resources on the great opportunities to increase sales and achieve a sustainable competitive advantage. At the heart of any business strategy is a marketing strategy Businesses exist to deliver products that satisfy customers. A success of the firm largely depends upon how effectively and it serves the existing and prospective customers. ecause it is only the sales which bring revenue to the firm the management of the firm can be efficient when there will be proper planning and control the present and future actions of the firm. !n the present competitive scenario it is very essential to predict the needs of the customers in hand and see to it that no stone is left unturned. "ustomer satisfaction is the main things# which contribute to expansion and progress in any business. $tudy of customer%s attitude towards the product in hand is also one of the main things which contribute to the decision whether the path selected to progress and create healthy business relationship.

1.2. Need for the study

&his study is an attempt to recognize and to know what is the marketing strategy adopted by the company. 'ow they bought their product in to market and their customer preference# sales and brand awareness in their region.
1

1.3 Ob ecti!e of the "tudy

&o recognize the type of marketing strategies adopted by the company &o know how they bought their product in to market &o know the awareness of brand and customer response &o know the problems faced by company and customers &o know there sales procedures and how they approach customer &o know about their market development techni(ues &o find efficient methods of creating customers

1.# $i%it&tion of the study

).

&he study was restricted to the surrounding areas of the kanchipuram only. &herefore

*. the result of the study cannot be generalized to other parts of the country. +. ,ue to time constraints# the extensive research could not be undertaken. &herefore the analysis was confounded to a limited area of study. -. Analysis of data collected from (uestionnaire was done on the assumption. !t is a relevant data. .. Preferences / response of the customers would change over a period of time.

CHAPTER 2
CO'PAN( PRO)I$E
2.1 TRACTOR AND )AR' E*UIP'ENT $TD &ractors and 0arm 1(uipment 2imited 3&A014# a 5$ 6).7 billion tractor ma8or incorporated in )97: at "hennai# !ndia# is the third largest tractor manufacturer in the world and the second largest in !ndia by volumes# with a *.; market share of the !ndian tractor industry and a sale of approximately )-<#::: tractors 3domestic and international4 annually. &A01=s partnership with A>"? "orporation and the Massey 0erguson brand for .* years is an outstanding example of &A01=s commitment to its values of building long-term relationships with its stakeholders# through fair and ethical business practices. 2.2 HI"TOR( O) THE CO'PAN( &he Amalgamations >roup entered the tractor business in )97:. $impson / "ompany was already making Perkins ,iesel 1ngines and the founder chairman of the group# Mr. Anantharamakrishnan=s own great interest in agriculture and the >reen @evolution in making# made the group grab the opportunity to make tractors when it presented itself. $tandard Motor Products of !ndia 2imited had been assembling Massey 0erguson tractors in !ndia for Massey 0erguson !ndia# which was a angalore based company handling the entire M0 business in !ndia. Massey 0erguson was looking for a company that would# in a phased manner# manufacture its tractors in !ndia and successful negotiations with &he Amalgamations >roup lead to the group taking over the 0arm 1(uipment 2imited. angalore operations and moving it to "hennai# then Madras. &he new company was called &ractors and

?n ,ecember ).# )97:# Mr. $. Anantharamakrishnan announced at a press conference at "hennai# his plans to manufacture tractors and implements at $impson=s !ndustrial 1state in collaboration with Massey 0erguson of &oronto. At that time# the estimated demand for tractors in !ndia was )*::: tractors per year and &A01 was allocated a capacity of A::: tractors a year. !nitially .:; of the tractor was built with indigenous content but within two years this rose to <.;. 0rom these early beginnings# we are proud to have risen to a turnover of 5$ 6).7 billion and a sale of over )-<#::: tractors 3domestic and international4 in the year *:))-*:)*# apart from the distinction of being !ndia=s largest exporter of tractors consecutively for the last three years.

2.3 +I"ION
&he philosophy that drives &A01 was first enunciated by its "M, in )99*. B&o us in &A01# 1xcellence is not something that we engineer# inspect and input into our tractors. !t is an innate desire to attain the best that comes from within each of us. !t defines our lives at work and at home and ripples out into the world around usB. 3$ourceC "orporate 0ilm-)99*4. &his inspired &A01 to evolve its Dision / Dalues in )999# through a company-wide participative exercise with external facilitation from !!M# angalore. &he Dision /Dalues statement captures key elements of &A01=s culture# strengths and aspirations. $ubse(uently# Earwick Manufacturing >roup 3EM>4# 5K# facilitated each element of the D/D being linked to "$0s of the company to translate =Dision= to =@eality= through a Dision to @eality Plan 3D&@P4 that forms basis of the company=s usiness Plan.

,To &chie!e the distinction of the first choice &%on- the f&r%in- co%%unity of Indi& &nd ensurin- & -ro.in- /resence in intern&tion&0 %&r1ets throu-h settin- 0e&dershi/ st&nd&rds of /erfor%&nce &nd custo%er c&re in the &-ricu0tur&0 %&chinery business.2

2.# 'I""ION
F People involvement at all levels has improved tremendously and there is a noticeable cultural change. @enoir Processes especially $"> / MA& meetings and $hort !nterval "ontrol at $upervisory levels have resulted in the achievements for all the KP!s defined. &he !nformation 0low has clearly streamlined and ! get the consolidated reports for review on my desk daily. F G&he experience of working with the &op >ear pro8ect by @enoir was an unforgettable unlearning and learning curve in all interactions. !t gave me an insight to unearth improvement opportunities and opened myself to change thoughts and actions.F

*A$IT( PO$IC(

&A01=s thrust on total (uality is organization wide and is aimed at ensuring we as a corporate entity set the industry benchmarks for the (uality of both products and services. Hapanese (uality management systemsI tools such as .$# Kanban# Kaizen and $ix $igma find wide application in the company. &A01 pioneered the (uality circle movement in the tractor industry and has over fifty (uality circles in place. &A01 is an !$? 9::)# !$? )-::) and !$? *A::) "ertified "ompany. &he focus on &otal Juality Management# upgrading Dendor Juality and productivity and strategic tie-ups with (uality management specialists from Hapan and the change management exercise facilitated by the Earwick Management >roup has paid rich dividends in terms of more cost effective operations as well as being acknowledged by customers as manufacturers of (uality products.

2.3 PRODUCT AND "ER+ICE 'I4

PRODUCT"

') 5366

') 5666 DI P$ANETER( DRI+E

') 7236 DI

EICHER 3886

EICHER #93
7

EICHER 3136

TA)E 36 DI ORCHARD P$U"

') 1633 DI "HA:THI

EICHER 312

2.8 DEA$ER" $OCATED IN TA'I$ NADU S.NO 1 2 3 4 5 6 7 8 PLACE Coimbatore Cuddalore ! arma"uri #rode $osur &allakuric i &anc ee"uram Madurai DEALER NAME Gaayatri Mallaiyan Tracto Sivasakt i Tractors Sriram #ic er Tractors Su"reme Tractors %and ini #ic er Tractors Siva Sakt i Motors Susee Tractor Centre Geor'e (akes )imited

9 10 11 12 13 14 15

(c eri

*ayam Motors Sakt i Motors Gan'es Tractors Ms ,nd Com"any (m Sakt i Motors $arvel Tractors 0 1arm #2 C"c Motors

+,TT-&(TT,.

+ondic erry

+ollac i

T iruvannamalai

/ellore

/illu"uram

2.7 HAR+E"TIN; E*UIP'ENT

3

CRUZER 7504

ACCE""ORIE" ). 9-&ine I ))-&ine spring tiller *. ,isc Plough +. 0ront end loader - Mahaan .*-. -. 'eavy duty tiller .. Mould board plough 7. ?ffset disc harrow A. @igid tine cultivator <. @otary tiller 9. $ubs oiler ):. &errace blade )). &ipping I Kon tipping trailer )*. &ractor - 0ront mounted leveler

2.9 EN;INE"
1icher 1ngines is a unit of &A01 Motors and &ractors 2imited 3&M&24 with Alwar as the manufacturing base. &M&2 is a wholly owned subsidiary of &A01# part of "hennai based Amalgamations >roup# which is one of !ndia=s largest light engineering conglomerates having long and distinguished history of serving !ndian and global markets with a pan !ndian presence of over -: companies with highly skilled and competent workforce of over ).#::: and business built on highest standards of integrity# ethics and values.
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2.5 R< D CAPA=I$ITIE"

&eam of more than -: specialists dedicated to engine development ?nline technical support agreement with technology providers such as @icardo / AD2 Air cooled / water cooled engine technology database &urbocharged / after cooled engines with latest combustion development tools / after treatment devices for stringent emission controls

0ully networked "A,I"A1 environment +d systemIsub-system layout designs ,esign verification / optimization through 01A I in-house software Product data management 0ormulation of reliability / accelerated endurance test cycle

"O)T>ARE

P@?-1 / E!K,"'!22 P,M 2ink A"A, 3 *::A @124 P@?-1 / E!K,"'!22 P,M 2ink 'LP1@E?@K$ ?P&!$&@5"& AK$!$

DE+E$OP'ENT PROCE""

Product strategic plan with J0, Pro8ect sensitivity / risk analysis 0M1A$ 3,0M# ,&" / process control plans4 "A1 I 01A analysis for design optimization !n house proto development tools Accelerated endurance / reliability testing / duty cycle simulations 0ield validation / feedback
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2.16 ;EAR" AND TRAN"'I""ION"

&afe=s gears division is located at kelambakkam near 8farm and has a capacity to produce -:#::: crown wheels and pinions a year. &he capacity is essentially used for captive consumption by tafe%s tractors. &he plant has the necessary infrastructure to produce crown wheels and pinions to the demanding specifications of the application and is e(uipped with necessary facilities to ensure (uality products that exceed customer expectations. &mtl# tafe=s wholly owned subsidiary has a gears and transmissions plant at parwanoo that produces a range of gears and transmission products for captive consumption at tmtl and tafe for tractors apart from sale to discerning oe buyers in the automotive sector. Product r&n-e &afe product range covers following category of auto components ).&ransmission gears / shafts *.&ransmission housings +."rown wheel pinion -. "am shaft )&ci0ities Ee have well e(uipped facilities to produce transmission gears / shafts# gear box housings# crown wheel pinion / cam shaft# such as

Modular lines for hobbling# shaving# shaping 'eat treatment-gas carburizing / sealed (uench. >rinding-conventional / cnc "ombination of cnc machining centers / spm=s "nc cam grinding machine ?ur facilities to ensure reliability and consistency in (uality include in-house cutter re sharpening machine# +dcmm# cnc in volute tester# cncn cam tester.

12

2.11 EN;INEERIN; P$A"TIC"

1ngineering Plastics ,ivision 31P,4 was created with the realization that engineering design is seldom# if ever# an end unto itself. @ather# engineers embark on design with the intent of creating a manufacturable product. Ee view design as an upstream phase in the multi-stage operation of manufacturing. &he manufacturability of a design is a measure of how successfully it can be translated from concept to computer representation and finally# into a high-(uality and cost-effective physical product. A visually perfect design might be impractical to manufacture. ?r# minor changes to a design can result in significantly improved tooling and production efficiency. Ehile computer-based technologies have made significant strides in simulating tasks of design and analysis# there has been relatively less progress in validating manufacturability. Manufacture validation re(uires sound knowledge in the tooling and production domain# most of which is developed through years of experience and embedded in the minds of production floor experts# rather than within computer programs. Dalidation expertise is also specific to the exact type of manufacturing process. &oday# the 1ngineering Plastics ,ivision has a primary focus on manufacturability in in8ection molded engineering plastics and pressure die-castings. &his is enabled by a close association with the &A01-1ngineering Plastics ,ivision# a truly state-of-theart design# engineering and production facility servicing many of the leading automotive# electronics and appliance suppliers within the nation. 1P, embodies an extensive knowledge in this engineering domain# made available through years of actual production expertise.

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CHAPTER 3
THEROTICA$ )RA'E>OR:
3.1 'AR:ET ? "A$E" DEPART'ENT )UNCTION"
A success of the firm largely depends upon how effectively and it serves the existing and prospective customers. ecause it is only the sales which bring revenue to the firm the management of the firm can be efficient when there will be proper planning and control the present and future actions of the firm. !n the present competitive scenario it is very essential to predict the needs of the customers in hand and see to it that no stone is left unturned. "ustomer satisfaction is the main things# which contribute to expansion and progress in any business. $tudy of customer%s attitude towards the product in hand is also one of the main things which contribute to the decision whether the path selected to progress and create healthy business relationship. MarketI sales dept takes care of all the above. 3.1.1 "A$E" < 'AR:ETIN; DI+I"ION &his division is responsible for marketing operation in !ndia and Kepal. &he range of products sold include those manufactured by &A01 and &A2 IN"T."

3.2 "A$E" CO''ERCIA$ DEPART'ENT

&his department handlesC ?rder @egistration and !nsurance 0orecasting ,emand Planning and ,ispatch of tractors Production @e(uirement Planning
14

?peration / Management of ,epots $ales !nformation / @eporting

3.3 PRODUCT 'AR:ETIN; AND =RANDIN;

&his department provides all supporting services which the marketing and territory staff need for the department also take care of two (uarterly publications &A01 K1E$ AK, 0A@M P@?>@1$$. &he sales promotional activities may be classified as follows Advertising and randing Preparation of technical literature 1ditorial ?ther promotional activities

3.3.1 PART" DEPART'ENT &A01 spare parts department located at $embium does the function of supplying spare parts to dealers. &he main functions of this department areC &o supply spare to the market profitably &o generate orders from dealers and produce spare parts to fulfills these orders &o fulfill all dealers orders to the maximum extent possible in the minimum possible time.

3.3.2 "A$E" AND 'AR:ETIN; OPERATION" &he sales and ,istribution ?perations ,epartment is responsible for implementing &A01 sales and distribution policies. &hese policies have the basic ob8ective of
15

helping &A01%$ dealers throughout !ndia to constantly sell a large volume of e(uipment each year# while at the same time reducing selling expenses.

3.# CU"TO'ER AC*UI"ITION

"ustomer ac(uisition is the process of ac(uiring new customers for business or converting existing prospect into new customers. 3.#.1 DEA$IN; PROCEDURE O) DEA$ER" O) TA)E@ "ho.roo% "&0es@ >here Custo%ers A//ro&ch "&0es '&n&-er?"ho. Roo% $ales-mans approachC Ehere customers make direct contactI Approach to village customers in field T&fe fo00o. the %otto ,"e00 you before you se00 &nythin-2 &afe sales person has !nner self knowledge and self-belief 'as got-Ndata-Ninformation-Nknowledge 'as professional selling approach !dentifies O Gcustomers out of leadsF Knows how to talk to customer 1stablishes need "onverts customers need to desire Presents his products 'andles ob8ections without hurting feeling of customers
16

Processes negotiation skills Knows sales closing techni(ues 0ollows through after sales Kever writes off a customer Kever gives up Kever feels insulted @uns after new customers but maintains satisfaction of old ones Dalues relationship and believes in relationship selling

>e&rin- < ;roo%inLour wearing reveals what you are in terms of 1conomical level 1ducational level &rustworthiness $ocial Position 2evel of sophistication 2evel of success Moral character

3.#.2 CO''UNICATION TECHNI*UE" "/e&1in17

Lour tone can provoke customer to talk the way you want 2anguage 2ow tone 1mpathy @espect "ontrol over emotions "onviction and confidence

$istenin2istening benefits you more than customers @efrain from interrupting e observant and attentive Maintaining eye contacts ody language

3.#.3 "A$E" PROCE"" $trategic preparation !nitiating a dialogue $trategic (uestion process $elling by empathizing Preparation skills Preparation Presentation $tructure the se(uence 5nderstanding the hidden message ?b8ection handling
18

Kegotiation skills @elationship selling "losing a sale

P@?01$$!?KA2 P@?"1$$ ?0 "A22 ?P1K!K> Eish the customer !ntroduce yourself and your company "all opening )-*-+ idea ?ne minutes about your company &wo minutes about the brand &hree minutes about your product key features 3.#.# "E$$IN; PROCE"" 1. ?P1K!K> A $A21 1nthusiasm 0acial expression Manners and 0irst statement

2. ,!$"?D1@L Money Authority Keed Personality

3. P@?,5"& P@1$1K&A&!?K Product selection Pattern and power Proofs and pictures Prospect participation
13

#. ? H1"&!?K 'AK,2!K> 2isten &alk E'A& "ustomer Eants Avoid arguments diplomatically

3. "2?$!K> A $A21 Professionalism Politeness# persistency and pleasantness "losing statement Avoid statements# prompting negative response.

&he selling process is an important aspect of ever organization. $ales operations carried by &A01 tractors. &elephonic 1n(uiry. Ealk in customer. $ales experience. $howroom demonstration. &est drive. Dehicle delivery.

3.3 I'PORTANCE O) A)TER "A$E" AND "ER+ICE

"ustomer service provides one important means by which a company can tailor its offerings to the needs and desires of its customers. and high (uality image. y offering good service# a company assures consumers that it stands behind its products and pro8ects a reliable

24

"ustomer services offered after the sales transaction is completed are of crucial importance in this respect. ut making profit directly from after sales service is not only the purpose of having this service. !n many cases# after sales service is used as a competitive tool for promoting the product and creating the better image for company. !t is also realized that after sales service can be used as a factor# which# increase the sales# when the market is not good enough. &he value of after sales service is not only important for manufacturers but is serious for distributors.

3.3.1 "tren-th of the "ho.roo%@

1xperienced salesman%s with market knowledge Eell furnished office with different departments

2arge spare section with different all type of &afe spare parts Juality service for customer satisfaction Jualified employees and skilled technicians. &hey were authorized to sell class parts $eparate workshop with skilled workers with several e(uipments and different types lathes

3.8 U"P O) =RAND ')

21

).'igh resale value

0irst choice of farmers 2ong life of tractor 1ase in service 2owest repair cost

*.2ow maintenance cost

2ow parts cost 2east carbon deposition $ervice periodicity 0ill up capacities $afety neutral switch

+.'ighly fuel economic

AD2 technology $impson ,! engines 'igh compression @atio MP0! technology

-.More coverage

&urning circle Maneuverability

..comfort to operator

,eluxe ad8ustable seat 2ight steering 1A$L @1A"' ?0 "?K&@?2$ 2ow noise level 2ow vibrations 2ow heat "lear visibility of roads

7. soil friendly

0erguson system# Et transfer# traction

3.7 CU"TO'ER 'EET

22

"ustomer meet are conducted regularly by &A01 for understanding the customer needs and to increase their market share. y these meets &A01 find outs their positive negatives and also suggestions directly from their customers. "ustomer is our King. &hese meets are also promotional activities for the company. &he main ob8ective of the study is to find the positioning of tractor planetary ,rive in the market and make recommendations to &A01 3&ractors and 0arm 1(uipment%s 2td4 for increase in sales. 0rom ?ctober *:): onwards# a ma8or brand repositioning exercise has been planned by &A01 3 rand Massey 0ergusson &ractors4# in order to provide more to its customers# the company has first gone for a campaign across &amil Kadu "alled GK? &1K$!?K K?K,A&&AM G

&'1 12?E !$ &'1 $5MMA@L ?0 "5$&?M1@ M11&$ A&&1K,1, AK, DA@!?5$ $5>>1$&!?K 0?@ &'1 "?K,5"& ?0 1D1K& &? MAK1 !& M?@1 2!D12L. ARO::ONA' CU"TO'ER 'EET

PO"ITI+E &he awareness good

NE;ATI+E

AREA O) "U;;E"TION" I'PRO+E'ENT" A rally show could be conducted by having ): trailers fitted to one tractor to show the tafe event

brand shortage of banners and more banners 3 special was posters surrounding the podium banner to be hall and locality made attractive and posters re(uired to show that the event is organized by tafe

arrangements of the tractor arrangements the arrangements could '?@!P?K&A2 ?@ tractor in front of was congested and no be in a form of shape $2AK&!K> the hall was good space $'AP1 !K ). ,1>@11 AK>21 the registration was $?M1 customers didn%t normal &- shirts and bring the invitation card caps were given as an acknowledgement ). &he customers could be given refreshing drinks *. the programed A>1K,A could be given
23

). ?range 8uice more preferable than tea and snacks *. Make special seating arrangements +. give the agenda of the

programed to the invited customers the lighting and less interior decorations decorations with ). Music could be sound was good found in the hall leaflets and automatic played or any short bulbs could be done movies before the start of event *. the pro8ector should be played sideways and D!Ps to be seated in side way the spot registration the key given in a bag the form of spot the key can be given created a hype which was not delivery of tractor shape of thermo among customers impressive should be improved "ole or cardboard form which should be big enough

3.9 AD+ERTI"E'ENT TOO$"@A

anners and Posters.

Printing and calendars. "atalogue advertising. Eindow display. Pamphlets advertising. "onstruction of circles. >ift bagsI carry bags. Anniversary functions. Kews Papers. Eall Paintings.

"&0es Pro%otion
>ood communication system and customer relations service.

>ifts to loyal customers. ?ffering gift with the product 32!D14.

24

 Participation in marketing fair in kanchipurem 0ree service coupon warranty. 0uel check up camp.

CHAPTER #
)INDIN;" AND "U;;E"TION
)indin-s of the study@

25

!t was found that &A01 tractors have a brand loyalty than other tractors# because of its advanced features.

Many respondents aware of &A01 tractors and like to purchase &A01 vehicle only because of its good performance. People purchase tractors for agricultural purpose# few for business and for other purpose therefore we can say agriculture is the main reason for purchasing of tractors. !t was clear that the availability of spare parts was very easy. &hey purchases tractors by wall painting# and some were purchased by &.D. Adds and magazines. !t was found that people are influenced by company showroom during purchase# company sales man and rest of others by advertising friendsI relatives# etc. "ustomers were satisfied with the vehicle performance. "ustomers are like to purchase vehicle through credit mode and few by cash. "ustomers are fully satisfied with the dealer%s services. "ost incurred in maintenance of &afe tractors is reasonable and easily affordable. "ompared to the other brand of tractors available in !ndian market# study reveals. &hose &A01 tractors have a longer life. &A01 tractors are more economical in the matter of fuel consumption. ,ealer%s marketing strategies and sales promotion is good.
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