3themightymarketersb-120310072249-phpapp02.docx

CASE: Vanraj Mini-Tractors: Is Small Beautiful? Group: The Mighty Marketers Members: Avanita Somani (32058), Avinash Kumar (32059), Himanshu Bhardwaj (32069) Rohitash Jain (32088), Salman Haider (32089) ANALYSIS The given case is about deciding on the market segment for “Vanraj Mini-Tractors” and thus selecting the most appropriate market segment. The segmentation can be done on the basis of the land holding, the type of soil (geographical) and by the type of the crop cultivated. The focus states for Vanraj Mini- Tractors are Uttar Pradesh, Madhya Pradesh, Gujarat and Maharashtra. Field trials conducted to check its functionality in black and laterite soils have provided satisfactory results so segmentation on type of soil (geographical) doesn’t seem necessary. To solve the dilemma of choosing the right segment for Vanraj we have done cost benefit analysis from the perspective of small farmers having average land holding size of 1.4 hectare. 90% of tractors are bought on credit availed from banks. Due to restriction in credit from banks to marginal farmers as their land holdings are less than 3 acres, Vanraj may not be viable for them. Thus marginal farmers are not part of the target segment. As per case to target small farmers we need to make them switch from use of bullocks or from the use of rented tractors to Vanraj. Following table shows the cost beneﬁt analysis of different alternatives for small farmers. Table1: Per Year Bullock (in Rs.) Vanraj (in Rs.) Rent (in Rs.)

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Transcript of 3themightymarketersb-120310072249-phpapp02.docx

CASE: Vanraj Mini-Tractors: Is Small Beautiful? Group: The Mighty MarketersMembers: Avanita Somani (3!"#$% Avinas& 'umar (3!"($% )imans&u B&ar*+aj (3!,($ -o&itas& .ain (3!##$% Salman )ai*er (3!#($A/A01SIST&e 2iven case is about *eci*in2 on t&e mar3et se2ment for 4Vanraj Mini-Tractors5 an* t&usselectin2 t&e most a66ro6riate mar3et se2ment7 T&e se2mentation can be *one on t&e basis oft&e lan* &ol*in2% t&e t86e of soil (2eo2ra6&ical$ an* b8 t&e t86e of t&e cro6 cultivate*7 T&efocus states for Vanraj Mini- Tractors are9ttar :ra*es&% Ma*&8a:ra*es&% ;ujarat an*Ma&aras&tra7 e of ?7@&ectare7(!A of tractors are bou2&t on cre*it availe* from ban3s7 Bue to restriction in cre*itfrom ban3s to mar2inal farmers as t&eir lan* &ol*in2s are less t&an 3 acres% Vanraj ma8 not beviable for t&em7 T&us mar2inal farmers are not 6art of t&e tar2et se2ment7As 6er case totar2et small farmers +e nee* to ma3e t&em s+itc& from use of bulloc3s or from t&e use ofrente* tractors to Vanraj7e* for intercultural o6erations7 T&ust&e com6an8 ma8 loo3 to increase its tar2et se2ment in future to cater t&e nee*s of abovese2ments of &orticulture farmers7