The document discusses Vanraj Mini-Tractors, a company that produces small tractors targeted towards small and marginal farmers. It outlines the benefits of mini-tractors, such as their affordability, lower costs, and suitability for smaller farms. However, it also notes weaknesses like a lack of market research and conservative sales estimates. The document analyzes the market segmentation opportunities around land holdings, geography, and horsepower. It recommends the company conduct market research and refine its marketing strategy to better target small farmers.

1. VANRAJ MINI-TRACTORS
IS SMALL BEAUTIFUL?
PRESENTED BY;
SURYA PRAKASH (12)
SAURABH SRIVASTAVA (16)
VIKAS KUMAR (39)
IRFAN SHAHID (48)

2. introduction
 An idea evolved in the mind of a small farmer, turned
into a mini tractor.
 Innovation was done at the grass root level.
 Mini tractor was made in view of the small &
individual farming need.
 It was made to eliminate the problems created by the
usage of bullockcarts in the fields.
 Mini tractors reduced the working hours of the
farmers.

3. The dilemma
 Targeting will be successful or not.
 The estimated sales and revenue growth
will be achieved or not.
 This market segment will be according to
the company goals and objectives or not.

4. Benefits of mini- tractor
 Affordable price.  Gear selection facility.
 Lower operating cost.  Limited liability.
 Low maintenance & easy  Useful for material handling
repairs. in small industries,
warehouses, & airports.
 Smaller wheel base & turning
radius.  Best for interculture
operations.
 Accessibility to smaller
areas.  Reduces man hours.
 Multitasking.  Three wheeler convertibility.
 Having a tested power take–  Single piece casting.
off point.

5. Weaknesses
 Lack of experience.
 Lack of market research
 Lack of concept testing
 Higher price compare to other mini tractors.
 Conservative estimate of sale & revenue growth.

6. Opportunities
 Highly potential market (world largest market for tractors)
 Third largest gross cropped area
 High number of marginal & small farmers
 Less tractors per 1000 hectare of land
 Increase in total irrigation area.
 Increase in horticulture land
 Increase in intercultural farming
 Easy financing to small farmers.
 Lack of big players

7. Threats
 Chinese tractors dumping in Indian market
 Indirect completion from assembled tractors
manufactures
 Govt. restrictions
 Unexpected climatic condition
 Customers drive towards earning potential in
custom hiring of hire horse power tractors.

8. Drivers of tractor demand
Commercialization of agriculture.
High level of govt. support.
Easy financing.
Increased agricultural land &
cropped area.
Increased technology need.

9. Competition
 Company is entering in the new segment and this
segment was not catered by any big company.
 There is a indirect competition from some assembled
tractor companies, like- trishul, field marshal, captain.
These are not the refined product.
 Competition from Chinese dumped tractors.
 Different promotional offers are introduced by
competitors like –
 Exchange of old tractors.
 Longer credit period.
 Credit sales.

10. PEST ANALYSIS
 This case is not too much influenced with politics
 Economical the company was the small scale industry and the
customers identified were small and marginal, large and
horticulturist etc.
 Company got funding from the government wing for the
technological refinement
 Sociological factors - product was focused to cater small usage
which was not tackled by the big tractors.
 Most of the consumers were small and marginal farmers. For the
buying the tractor they consider the HP as the main factor but
beside this there are other factors like it is a status symbol also it
is the sign of prosperity also tractor purchase also has lot of
other social significance.

11. CONT…..
 Technological aspect
 The marginal farmers are still dependent on the bullocks and
other manual systems.
 Farm mechanisation has lot of value in terms of the upliftment of
the poor and increasing the productivity
 In tractor industry HP is the main criteria and most of the
technological aspects are covered in this case

12. MARKET SEGMENTATION
Demographic
segmentation
Geographical/
Segmentation based on
Topography of soil
Product segmentation
(Engine horse power)

13. Demographic segmentation
 On the basis of land holdings:
 Small & marginal farmers: In this category the level of
mechanisation is low and they used bullocks for tilling and
agricultural operations. Moreover they had small land for
farming and the Vanraj tractor was focussing this segment
as its target.
 Large farmers: This section was catered by all the big
players as they have large area for farming and the farms
were highly mechanised. They usually preferred tractors
having HP more than 20.

14. CONT….
On the basis of type of occupation:
 Industry: Industry wise they are divided into small scale
firm, national, and multinational players.
 Horticulture: This segment of cultivation requires specific
design which would facilitate the cultivation process. It
requires intercultural operations like removing weeds and
creation of soil. These functions could be well performed
by tractors having “three wheel convertible features”
which is observed in Vanraj tractors.

15. Geographical/ Segmentation
based on Topography of soil
 North India: The regions like Punjab, Uttar
Pradesh, and Haryana were dominant in tractor
sales. As the soil is alluvial they require tractors
with less HP.
 South and West India: In the regions like Gujarat,
Maharashtra and Madhya Pradesh the soil is
harder type- Laterite and black soil where more HP
tractors are required

16. Product segmentation
(Engine horse power)
 Mini tractor: The tractors which are having less than 20 HP
are considered to be the mini tractors and Vanraj being one of
them.
 Small tractor: Tractors having horsepower between 21 and 30
HP are considered as small tractors.
 Medium tractor: Tractors having horse power between 31 and
40 HP were included in this section.
 Large tractor: Tractors having horse power more than 50 HP
were included in this section.

17. The segmentation on the basis of
land holdings is important as’
 This segment is not served by big players, as they are
interested in more margins.
 In this segment about 82% of the people do not have
tractors, thus having more scope for future.
 Land holdings are smaller, for small farmers it is 0.4 hac &
for marginal farmers it is 1.4 hac. Thus they need a tractor
which is not bigger in size.
 The Vanraj tractors are of 10 HP and hence it would be best
suitable for small and marginal farmers due to its low cost
and lesser fuel consumption with more utility and less
maintenance.

18. Recommendations
 Company should go for a market research.
 Company should refine its marketing strategy to
make it more B2C focused.
 Company should do a concept testing.
 Sales and revenue estimation should be according
to the research outcomes.
 Market should be analyzed to know the customer
buying pattern & their actual needs.

19. Conclusion
“Small is beautiful” and “the bigger the better”
But
“Big things look small from outside
and come in small packaging”