Mechanic Impact

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PREFACE

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PREFACE

This project report pertains to the making of a project SUMMER TRAININGof

M.B.A. curriculum.

The PURPOSE of this project is to make the students have thorough knowledge

of the topics given to them. I learned a lot from the hard work I put in to collect

information regarding the same, which would be of great use in my near future as a

professional.

Justification cannot be done to whatever I have learnt within a few days but I have

still tried my best to cover as much as possible about Impact of Mechanics on the Sale

of Tractors in Ludhiana Districtin this report.

Being students of Masters in Business Administration, we need to be aware of the

organization internal environment. Summer training helps us to understand these

concepts related to the organization.

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EXECUTIVE

SUMMARY

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THE EXECUTIVE SUMMARY

PROJECT UNDERTAKEN BY ME

The project studied by me in MAHINDRA & MAHINDRA LTD., SWARAJ

DIVISION, MOHALI was Impact of Mechanics on the Sale of Tractors in Ludhiana

District It helps to encourages the human problems to be brought out and gives an

opportunity to the employees to understand attendance system. Management can learn

what the workers think about the policies. It is essential for every organization for their

current environment and which will remain in demand in future as it helps in maintaining

good management relations and promoting efficiency through employee attendance.

Positioning is something (perception) that happens in the minds of the target

market. It is the aggregate perception the market has of a particular company, product

or service in relation to their perceptions of the competitors in the same category. It will

happen whether or not a company's management is proactive, reactive or passive about

the on-going process of evolving a position. But a company can positively influence the

perceptions through enlightened strategic actions.

MAIN OBJECTIVE OF THE STUDY

1) To learn about the Mahindra & Mahindra Ltd., Swaraj Division, Mohali.

2) To know about the effectiveness of mechanics on the sale of tractors.

3) To learn how Mahindra & Mahindra Ltd., Swaraj Division, Mohali emphasize on

the sale of the tractors.

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HOW IT WAS UNDERTAKEN

A survey was conducted by me among the mechanics of tractors in the market.

An appointment or general meeting was fixed with the mechanics, certain questions were

asked regarding the sale of the tractors; what activities are to be included by consumer in

regard to these benefits;; to what extent iteffects the level of satisfaction and how far it is

beneficial for the consumer. There views helped me a lot to practically understand my

project.

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INTRODUCTION

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1. INTRODUCTION

An auto mechanic is amechanic who specializes in automobilemaintenance, repair, and

sometimes modification and design. Education is usually post-secondary or secondary

vocational education, although apprenticeship under a master mechanic is also an

accepted method of learning the trade. A good mechanic must be proficient in

mathematics, physics, electronics and computer science as well as logical processes used

for diagnosing problems. Most reputable mechanics are ASE certified, which is a

standardized method of testing skill level. The technology used in automobiles changes

very rapidly and the mechanic must be prepared to learn these new technologies and

systems. The auto mechanic has a physically demanding job, often exposed totemperature extremes and well as lifting heavy objects and staying in uncomfortable

positions for extended periods as well as exposure to gasoline, solvents and other toxic

chemicals. Related jobs include motorcycle repair and small engine repair.

Auto 'mechanics' are today professionally referred to as 'technicians', due to the level of

technological competency now required to diagnose and perform needed repairs. Fading

quickly is the day of the 'shadetree mechanic', who needed little knowledge of today's

computerized systems. Today's technician must have knowledge of these systems, as well

as more basic mechanical principles.

Due to the increasingly labyrinthine nature of the technology that is now incorporated

into automobiles, most automobile dealerships now provide sophisticated diagnostic

computers to each technician, without which they would be unable to diagnose or repair a

multitude of common failures.

1.1 INDIAN TRACTOR INDUSTRY

Tractor industry plays an important part as agriculture sector has a major contribution to

Indias GDP. Tractors are part of agricultural machinery industry. Tractors came to India

through imports and later on were indigenously manufactured with the help of foreign

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collaborations. The manufacturing process started in 1961-62. Indian tractor industry is

relatively young but now has become the largest market worldwide.

Higher productivity and greater output are the two major contributions in farm

mechanization. Tractors form an integral part of farm mechanization and have a crucial

role to play in increasing agricultural productivity. Tractor is a highly versatile piece of

machinery having a multitude of uses, used in agriculture both for land reclamation and

for carrying out various crop cultivation and also employed for carrying out various

operations connected with raising the crops by attaching suitable implements and to

provide the necessary energy for performing various crop production operations involved

in the production of agricultural crops. Tractors are capital intensive, labour displaying

used as a mode of transport, in electricity generation, in construction industry and for

haulage operation. It has now become an integral part of farm structure .The application

of tractor for agricultural activities which swept India during the last twenty years have

erased the problem of farmers. Farm mechanization program in India aims to integrate

the use of available human and animal farm power with mechanical sources of power for

increasing the productivity.

Indian tractor industry, comparatively young by world standards have expanded at a

spectacular pace during last four decades. Consequently it now occupies a place of ride in

India's automobile industry. U.S.A., U.S.S.R. and only a few Western European countriesexceed the current production of tractors in India, but in terms of growth India's growth is

unmatched even with countries of long history of tractor manufacturing.

The spectacular achievement reflects the maturity and dynamism of tractor manufacturers

and also the policies adopted by the government to enable it to effectively meet the

demand. The tractor industry in India has made a significant progress in terms of

production and capacity as well as indigenisation of technology. It is a typical sector

where both imported technology and indigenous developed technology have developed

towards meeting the overall national requirements. The global spotlight on tractors

manufacturers certainly in terms of volume seems to be swinging away from the USA,

UK and Western and Eastern Europe towards India where growth in the number of

producers and the total volume in recent years have been impressive. In India tractor

industry has played a vital role in the development.

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India's gross cropped area is next only to United States of America and Russia and long

with fragmented land holdings has helped India to become the largest tractor market in

the world.

But it drops to eight position in terms of total tractor in use in the country when compared

to international figures, only 3% of total tractors used all over the world . It is to be noted

that while the overall automobile industry is facing recession the tractor industry is

growing at 9%.About 20% of world tractor production is carried out in our country only.

The arable land in India is high as 12% of the total arable land in the world. Tractor

market in India is about Rs 6000 crore. On an average around 400000 tractors are

produced and their sale is 260000.Uttar Pradesh is the largest tractor market in our

country. One out of every four tractor is being Purchased here. Indian tractor market has

to be viewed considering its position in the world with respect to key parameters as given

below

FOREIGN COLLABORATION

Tractor industry along with others benefited from this policy which allowed free inflow

of foreign technology .The manufacture of tractors started in India mainly with the help

of foreign collaboration secured from internationally reputed companies from the USA,

UK, USSR, WESTGERMANY, POLAND ,CZECH SLOVAKIA . Most of the models

which were taken up for manufacture in India were developed overseas. Soon after the

decision for the manufacture of tractors was made during second plan, government

approved number of foreign collaboration agreements. The establishment and present

status of tractor industry owes a great deal to the support received by the Indian

entrepreneurs from foreign collaboration during the initial phase of manufacture

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INDIAN TRACTOR MARKET OVERVIEWThe tractor penetration level in India is very low as compared to the world standards.

Also the penetration levels are also not uniform throughout the country. While the

northern region is now almost saturated in terms of new tractor sales, the southern region

is still under penetrated. The medium horse power category tractors, 31-40 HP are the

most popular in the country and fastest growing segment.

There are currently 14 players in the industry. Mahindra & Mahindra is the leading player

in the industry. Monsoon season is a key driver for sales of tractors. A series of good or

bad monsoon can affect the sales. In recent years the industry has registered a good

growth in sales, both domestic as well as exports. This is also partly because of the

initiative of the government to boost up agriculture and agricultural machinery industry.

Tractor industry has made a steady and satisfactory progress even in drought areas.

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The tractor industry reported a strong 28.3% growth in sales volumes during 2009-10,

thereby ending the phase of cyclical correction that had pulled down tractor sales during

the preceding two years (2007-09). Significantly, the revival of 2009-10 happened

despite the drought-like conditions in many States during the kharif season dampening

sentiments.

The key factor enabling the demand growth of 2009-10 was strong rural liquidity, which

in turn was sustained by several factors, including: higher minimum support price (MSP)

for crops; greater ability of farmers to make cash purchases (including the usage of Kisan

Credit Card which are increasingly being used to part-finance tractor purchases);

enhanced employment opportunities (with rural employment schemes being implemented

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by the Government of India); an improved credit environment; and continuance of

replacement demand.

i) INDUSTRY TRENDS BY REGIONS

The biggest markets for the tractor industry include States like Uttar Pradesh (UP),

Andhra Pradesh (AP), Madhya Pradesh (MP), Rajasthan, and Maharashtra, which

together accounted for around 50% of the total tractor sales in India during 2009-10. The

tractor industry witnessed a strong y-o-y growth of 28.3% during 2009-10, with most of

the States reporting positive growth during the year.

Trend in Tractor Sales across regions

The northern region remains the largest tractor market in India with sales of around

1,67,000 units as of 2009-10. This region reported a growth rate of 35.7% in volume

sales in 2009-10 over the previous fiscal, with the key contributors including UP, Punjab,

Haryana and Rajasthan. The northern region benefited from higher MSPs (for crops),

limited availability of labour (forcing higher mechanisation), and increasing non-

agricultural use of tractors.

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Additionally, increased infrastructure development activities (especially highways) led to

appreciation in land values and use of tractors for non-agricultural purposes. In some

cases, farmers also received compensation for the Governments acquisition of select

land patches (adjoining highways), which increased the availability of cash with them.

Feedback from industry players suggests cash purchases (including purchases using

Kisan Credit Card) in some northern States increased to 35-40% of the total tractor

volumes in 2009-10 from 10- 15% in the past.

Tractor volumes in UP grew by 42.7% during 2009-10, with H2, 2009-10 reporting

particularly strong growth (around 51% y-o-y) mainly on the back of high sugarcane

prices for the kharif crop and improved irrigation facilities. In the case of Punjab, tractor

volumes remained strong for the fifth straight year in 2009-10 (y-o-y growth of 42%). In

Rajasthan however, growth in tractor volumes was relatively subdued in 2009-10 (around

24% y-o-y) as compared with the figure for the northern region as a whole. Tractor salesin Rajasthan were especially low in H2, 2009-10 versus H1, 2009-10, due to lower kharif

output on account of deficient rains and inadequate financing availability.

In the eastern region, tractor volumes continued to report strong growth in 2009-10, albeit

on a small base, and went up by 53.8% over 2008-09, being driven mainly by the higher

MSPs announced for paddy. Within the region however, many financiers remained

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reluctant to finance tractor purchases in some States like Bihar. Nevertheless, in Bihar,

tractor volumes grew 66% over 2008-09 to around 29,000 units in 2009-10, thereby

accounting for over 50% of the total sales in the eastern region. The Bihar market, where

tractor penetration had been low historically, has shown sustained growth over the last

few years and become one of the important markets for the tractor industry. Overall, in

the eastern region, growth in tractor volumes is expected to moderate, going forward, as

the benefit of a low base get diluted gradually.

The western region reported sales of around 92,000 tractor units during 2009-10a

growth rate of 35.7% over the previous fiscalbenefiting particularly from the strong

performance that Maharashtra, Gujarat and MP posted during H2, 2009-10 (55% y-o-y

growth over H2, 2008-09). The factors contributing to the strong growth in the region

during H2, 2009-10 included a benign base effect, higher crop prices (of sugarcane and

cotton in Maharashtra, and of cereals and soyabean in MP), and greater availability of

retail finance. The performance of the southern region in terms of tractor sales was

relatively modest during 2009-10, with the growth rate being around 11.9% over the

previous fiscal. While most States in the region reported healthy growth, AP, which is the

largest tractor market in the south, de-grew by 10.4% in 2009-10.

ii) INDUSTRY TRENDS BY STATEPunjab, Uttar Pradesh and Haryana were the first States to benefit from the Green

Revolution and hence have traditionally accounted for most of the tractor sales. However,

given the high penetration of tractors in these Northern States, the geographical

concentration of tractor sales is gradually shifting to the Western and Southern States of

the country. States like Gujarat, Andhra Pradesh and Madhya Pradesh have reported

significant increases in tractor volumes over the past three years. This trend is continuing

in the current fiscal also, as the intensity of tractorisation in North India is quite high

already. Table 5 depicts the distribution of tractor sales in the country in the first quarter

of the current fiscal vis-a-vis the like period previous year.

The biggest markets for the tractor industry include States like Uttar Pradesh (UP),

Andhra Pradesh (AP), Madhya Pradesh (MP), Rajasthan, and Maharashtra, which

together accounted for around 50% of the total tractor sales in India during 2009-10. The

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tractor industry witnessed a strong growth of 28.3% during 2009-10, with most of the

states reporting positive growth during the year.

The performance of the southern region in terms of tractor sales was relatively modest

during 2009-10 with the growth rate being around 11.9% over the previous fiscal. While

most States in the region reported healthy growth, AP, which is the largest tractor market

in the south, de-grew by 10.4% in 2009-10.

The market shares of the top four players in the Indian tractor industry did not change

much during 2009-10 in comparison with 2008-09. M&M remained the market leader

with around 41.1% market share, followed by TAFE with a market share of around 22%,

Escorts with around 12.1% and International Tractors (ITL) with around 8.9%.

The tractor industry reported a strong 28.3% growth in sales volumes during 2009-10,

thereby ending the phase of cyclical correction that had pulled down tractor sales during

the preceding two years (2007-09). Significantly, the revival of 2009-10 happened

despite the drought-like conditions in many States during the kharif season. The key

factors enabling the demand growth of 2009-10 were,

1. Strong rural liquidity

2. Higher Minimum Support Price (MSP) for crops

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3. Greater ability of farmers to make cash purchases

4. Enhanced employment opportunities

5. Improved Credit environment

6. Continuance of replacement demand

7. Non-agricultural use of tractors

8. Change in product mix

9. Distribution network

iii) REGION-WISE MARKET SHARE OF MAJOR PLAYERS

The market shares of the top four players in the Indian tractor industry did not change

much during 2009-10 in comparison with 2008-09. M&M remained the market leader

with around 41.1% market share, followed by TAFE with a market share of around 22%,

Escorts with around 12.1%, and International Tractors (ITL) with around 8.9%.

M&M remains particularly strong in the southern region (50.4% market share during

2009- 10). However, L&T John Deere (LT-JD) was able to increase its market share in

the region by around 250 bps in 2009-10, mainly at the expense of M&M (market share

down by 140 bps) and Escorts (down by 140 bps). In the western region too, LT-JD

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performed well in 2009-10, increasing its market share by 190 bps, even as TAFE lost

market share by around 90 bps there.

In the northern region, where M&M has been traditionally weak, the company increased

its market share by 140 bps during 2009-10, even as ITL and Escorts lost market shares

by around 90 bps and 60 bps respectively, there. In the eastern region, M&M was able to

raise its market share by around 140 bps in 2009-10 at the expense of Escorts and TAFE.

MARKET CONCENTRATION

Market concentration in tractors industry is fairly high with top two players, M&

(including Punjab Tractors) and TAFE accounting for 63 per cent of the market in 2007

Market concentration increased over the past 4 years due to the acquisition of Eicher

tractors by TAFE in 2005-06 and PTLs acquisition by M&M in 2006-07.

i) MARKET CAPITALISATION IN TERMS OF VOLUME

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As it seen from the above graph of market capitalisation, Mahindra and Mahindra has

become the giant in tractor industry over the last few years and has captured the market

upto 80% of the total segmental industry.

ii) MARKET CAPITALISATION IN TERMS OF SALES

The key success factors for the players will continue to include diversified product

portfolio, nation-wide distribution strength and cost competencies. The relative ranking

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of players based on market share will remain stable with increasing polarisation of

market position between stronger and marginal players. After the acquisition of Eicher

Motors tractor division, TAFE has emerged a strong number two in the industry with

better product portfolio and distribution network (although overlapping may cause some

loss of share). TAFEs share went up to 28 per cent after its acquisition of Eicher

Escorts and International Tractors, with a market share of 14 per cent and 10 per cent,

respectively, are expected to remain strong competitors in the medium-to-long term.

International Tractors is expected to maintain its share as it would not be able to grow at

higher than industry growth rate.

Global players like John Deere and New Holland India are likely to provide strong

competition to the other well established players in the coming years as they strengthen

their Indian product portfolio and distribution network and remain major exporters.

Smaller players like Force Motors, VST Tillers and HMT are likely to be marginalized

further in the long run due to lack of diversified product portfolio, poor nation-wide

distribution network and weakness in cost structure.

FUTURE GROWTH IN TRACTOR INDUSTRY

Tractor sales are expected to remain healthy in fiscal 2010-11, given the good rabi crop

this time around, the continuing firmness in the prices of agricultural products, and thehealthy monsoons anticipated during the coming kharif season. Moreover, improving

farm mechanisation levels (with labour availability in rural areas declining), increasing

nonagricultural use of tractors, higher credit disbursements for agriculture, and sharper

Governmental focus on the farm sector (larger budgetary allocations) are also expected to

encourage tractor sales. The industrys profitability is however expected to remain

moderate in the medium term, considering the high competitive intensity and low

capacity utilisation levels, although larger players could benefit from scale economics. As

for margins, while they have seen an improvement in 2009-10, they would remain

vulnerable to adverse changes in commodity prices.

While some States in the northern region have achieved high levels of tractor penetration

and farm mechanisation, on an all-India basis, the penetration remains low, which along

with the current shortage of farm labour and consequently rising labour costs, may be

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expected to lead to greater mechanisation and use of tractors. The long-term prospects for

the Indian tractor industry hinge on agricultural growth and Government support in areas

such as financing availability, tax exemptions, and fiscal stimulus for rural development.

Overall, ICRA expects the long-term growth rate for the Indian tractor industry to trend

around the historical average of 6-8%, supported by increasing tractor penetration.

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COMPANYPROFILE

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COMPANY PROFILE

MAHINDRA & MAHINDRA LTD., SWARAJ DIVISION, MOHALI

PROMOTION OF PTL

Punjab Tractors Limited (PTL) a joint sector company of the Punjab Government, whichwent into commercial promotion in the early seventies, is a unique example of

technological self reliance in a high technology area like the automotive sector in the

country. It is promoted by Punjab State Industrial Development Corporation (PSIDC) in

1974 which was set up by Punjab Government for setting up new projects. In 1965 when

the entire industrial growth of India relied upon foreign technology and know-how for

setting up industrial ventures in India, the Central Mechanical Engineering Research

Institute (CMERI, Durgapur), a national Laboratory of the Government of India, took the

bold step of taking up the design and development of totally Indian know how for 26.5

H.P. agricultural tractors.

LOCATION

The plant of Punjab Tractors Limited is located in Mohali Focal Point Estate near

Chandigarh on Chandigarh-Ludhiana Highway (Phase IV, Sahibzada Ajit Singh

Nagar, Mohali (Punjab) on a campus of 17 hectares. The land was allotted by Punjab

Govt. in the developing Mohali to add to the vigorous effects to make it a progressive

Industrial Centre. The location of plant is very suitable because it is quite near to thecapital of Punjab. This fact has been advantageous to the company in its initial stage

of growth. However the inadequacy of railway facilities is a serious drawback to the

location of the plant.

BACKGROUND

Punjab Tractors Limited (PTL) was promoted by PSIDC to commercialize the

indigenous tractor developed by the Central Mechanical Engineering Research Institute(CMERI). The Company's plant is situated at S.A.S. Nagar (Mohali) where production

commenced in the year 1974. Initially, PSIDC contributed 42% equity capital against the

total paid up capital of Rs.140.00 lacs. The facility was initially created to manufacture

5000 nos., tractors and the capital cost at that time was Rs.321 lacs. The company's

product line also includes Combine Harvesters and Forklifts. The production capacity of

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tractors has increased to 60000 nos., from the level of 5000 nos. The company, over the

years, has also promoted two companies, namely, Swaraj Mazda Limited (manufacture of

Light Commercial Vehicles) & Swaraj Engines Ltd. (manufacture of Diesel Engines in

collaboration with Kirloskar Ltd and it has also promoted Swaraj Automotives. The

present stake of PTL in these is 14% in Swaraj Mazda, 33% in Swaraj Engines and 24%

in Swaraj Automotives.

SWARAJ: PTLs BRAND NAME SWARAJ

The word SWARAJ in Indian language means freedom from bondage. Since PTL was

the first large scale project in India based totally on Indian know how and technology,

Swaraj was appropriately chosen as its brand name. With more than 5 Lac tractors and

harvest combines operating in Indian farms, now Swaraj is also an internationallyrecognized name in the developing world Viz. East Africa, West Africa, Middle East and

South East Asia, etc.

SWARAJ - STAGES OF GROWTH

A study of PTL history from project stage to its present position of eminence makes a

very interesting reading. It is a fascinating tale of inspiration, dedication, perseverance

and a strong to succeed against all odds and prejudice. All these years could be divided

into different phases:

CONCEPTION STAGE (1970-74)

This project for manufacture of 5000 tractors per year was set up at an outlay of

Rs. 3.70 crores during November 1972- March 1974. Despite all hurdles and constraints,

the project was completed within the estimated costs and well ahead of 24 months time

schedule. The engineers for Swaraj tractors were procured from M/s Kirloskar Oil

Engines Ltd., a pioneer in Indian Engineering Industry. PTL went into commercial

production with the introduction of its first Model Swaraj 724 in April 1974.TEETHING YEARS (1974-78)

In the intensely competitive domestic market conditions prevailing in 1974 when well

known international brands such as Ford, Massey, Ferguson, etc were available, it was

difficult to establish a new tractor. Thus to establish Swaraj against this severe

competition, the following strategy was adopted.

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Intensive and close marketing.

District - wise distribution.

Limited introduction and slow extension of distribution network.

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1. PTLs own serving group.

2. Strict uniformity of product performance and quality.

PTLs first launch SWARAJ 724 received quite favorable response and

encouraged by this response and also by taking into account the preference of large

segments of farmers for higher HP tractor, development work on a 35 HP tractor was

started in January 1975. PTL introduced its second model SWARAJ 735 in

November 1975 which is now the most popular tractor. Then a low cost tractor

SWARAJ 720 was introduced in 1978 for small farmers.

1. THE EXPANSIONS (1978-82)

PTL started growing and increased its production capacity to 12,000 tractors at a

capital outlay of Rs. 9.2 crores. During this time PTL became multi-divisional by

installing Swaraj Foundry Division for manufacturing castings at a rate of 5,000

MT/year at a capital outlay of Rs. 1.80 crores. This division started supplying castingto PTL in 1980. In 1983, PTL introduced SWARAJ 855 and became the first

manufacturing organization to have the widest product range.

2. BREAK PERIOD (1982-86)

With encouraging past records Punjab Tractors Ltd. decided to increase its

production to 24000 per annum at an additional capital outlay of Rs. 10 crores. But

the RBIs credit squeeze policy to curb inflation vehemently affected the tractor

industry, as more than 95% of the tractor sales are through banks. PTLs sale dipped

from 10000 tractors to around 5500 tractors in 1982-83. During 1982-86, PTLs

efforts were directed towards training its work force, reducing wastage, cutting down

scrap, inventory control, up gradation of quality, expanding dealer network in new

areas and widening product variants. Thus PTL worked on man rather than

machines

3. STAGE OF GROWTH SINCE 1987.

In contrast to the depressed situation that prevailed during 1982-83, market since

1987 has been showing growth trend. The demand for Swaraj in the last two decades

has increased tremendously. Now consumer prefers to wait and pay the entire amountin advance to buy a Swaraj tractor rather than buying any other tractor. Production

capacity had increased presently to 33000 tractors per year and will further increase

to 36000 tractors per year by 2000.

THE DECADE OF NINETIES - IN RETROSPECT.

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The decade of 90s has been a rewarding one for all the constituents of Swaraj

enterprise - through generation of wealth for its customers, its business associates, its

employees, its shareholders and the society.

In recognition of this performance and sharing of information, PTL has

been privileged to receive several accolades in this eventful decade, notable amongst

them being:

Nomination by the Economic Times - best company of the year 1998.

Listed by FII in the jewels of Asia category 1999.

Nomination of UTI institute of Capital Markets for excellence in corporate

governance.

Listed by Hong Kong based Asia Money among top 5 best managed

companies in India 1999.

Listed by Business Today among top 3 Economics value generators in

India.

ASSOCIATE UNITS OF PTL

1. SWARAJ FOUNDARY DIVISION:

It was established in 1980 at a capital outlay of Rs. 1.80 crores to provide grey iron

castings to PTL. Initial production was 5000 MT/year. It is situated in village Majari in

Ropar district. In FY 2007-08, production of castings was 9,600 Metric Tonnes,

representing a value of nearly Rs. 50.5 crores.

2. SWARAJ COMBINE DIVISION (SCD):

Recognizing the pioneering role of PTL, Punjab government requested PTL for the

development and manufacture of self propelled Harvester combines to curtail the

harvesting season and save the crops from natural calamities. As a result Swaraj

Combine Division was set up in 1980 at Chappercheri to produce 250 combines per

annum at an initial investment of Rs. 2.65 crores. In 1981, first SWARAJ 8100 rolled out.

In 1985, production of diesel fork lift also started in collaboration with KOMATSU Fork-

Lift Company of Japan. Over last 28 years, the company has sold nearly 3,150 combines

including 65 in 2007-08.

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3. SWARAJ AUTOMOTIVES LITD.

Earlier it was Punjab Scooters Ltd. But now it has become Swaraj Automotives Ltd. In

1979, PTL took up the rehabilitation of this terminally sick unit and adopted a radically

new technology for it. Now PTL hold 24% of the equity in Swaraj Automotives Ltd.

4. SWARAJ MAZDA LTD.

In 1984 PTL set up Swaraj Mazda Ltd. a US $ 40 million project in collaboration

with the world famous MAZDA MOTORS CORPORATION OF JAPAN for the

manufacture of light commercial vehicles. Mazda and its associate SUMI TOMO

Corporation hold 26% of the equity. The remaining equity was subscribed by the

Indian Public. Now PTL hold 14% of the Equity in Swaraj Mazda Ltd.

5. SWARAJ ENGINES LTD. (SEL).

In 1986, PTL established Swaraj Engines Ltd., a joint venture among PTL, PSIDC

and Kirloskar Oil Engines Ltd (KOEL) for the manufacture of diesel engines per year. PTL

holds 33% of the equity and KOELs share is only 18%.

PUNJAB TRACTORS LTD EQUITY SHAREHOLDING PATTERN

AS ON 31st March, 2010

Mahindra group 64.64%

LIC/GIC/IFCI/Banks 22.75%

Mutual funds 02.37%

F.I.I 00.44%

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Public & others 09.80%

AN OVERVIEW OF VARIOUS FRONTS OF PTL

I. Manufacturing: Today the product range of PTL consists of:

1. Tractors. Swaraj 722 Swaraj 834

Swaraj 939 Swaraj 733



Swaraj 978

2. Forklifts:

Swaraj Komatsu Electrical Forklifts.

(FB-15, FB-20, FB-255)

Swaraj Komatsu Diesel Forklifts.

(FD-30, FD-50)

Swaraj Diesel Forklifts.

(FD-15, FD-20, FD-25)

Swaraj Rough Terrain Diesel Forklifts.

(FS-15, RT, FD-20, RT, Fd-25 RT)

Harvester/ Combine: Swaraj 8100

Light Commercial Vehicles.Diesel Engines.

Automotive Castings.

II. TECHNOLOGY

PTL is the first manufacturer of tractors in the country. To have a conveyers assembly

line, PTL has totally indigenous technology unlike other manufacturers who have

technical collaborations with foreign manufacturers.

The relative Advantages of PTL over the other manufacturers are:

All the models can be made on single assembly where the others like M & M like

different lines for different models.

The assembly line is conveyers.

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Capacity addition will let it tap the current upsurge for the tractors. PTL has been

operating close to 80% utilization levels for the past 4 years. The unutilized capacity

will improve its production capacity to meet the strong demand.

Against the high market share in the 30-40 HP segment capacity constraints

have restricted PTLs share in 40 HP segment, PTL is expected to

gain market share in these segments once the added capacity is in the place.

II. RESEARCH AND DEVELOPENT

Ever since the beginning R & D has been the basic strength of PTL. The long list of

new products which have been introduced and established in the short time span of 34

years of PTLs existence proves the emphasis that is placed in PTL on Research and

Development.

Research, Design and development expenses include:

2008 2007

Rs. (Lacs)Rs. (Lacs)

A) Materials 1, 52.331, 55.81

Salaries &wages 5, 11.13 4, 34.88

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Contribution to

Provident fund 59.97

69.09

b) Depreciation shown in profit and loss account includes

Rs. 1, 51.45 lacs (2007- Rs. 1, 06.15lacs) in respect of

Assets for research and development activities.

III. QUALITY OF PRODUCTS

Quality is the vital area where the company refuses to compromise. By putting

Dr. Juans total quality management techniques into practice, the company has

not only managed to give the customer value for money but has managed to

reduce wastage as well. To double upon, the company has also been building long

term relationship with its vendors and dealers.

Various Departments of PTL

PRODUCTION DEPARTMENT

This department is concerned with the assembly of all finished goods and bought out

components for combine harvester and testing. There exist the staff and line division in

the production department. The staff department includes the production planning and

control which is in charges of maintaining the inventory status, of arranging a receipt and

dispatch of component and of follow up. The important classification is shown as

follows;

Production department includes following departments:

1) Light Machine Shop (LMS)

2) Heavy Machine Shop (HMS)

3) Paint Shop (PS)

4) Assembly Shop

5) Heat Treatment Shop.

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FINANCE DEPARTMENT

The vice-president assisted by chief managers, managers and assistant managers,

heads this department. The objective of this department is to meet the statutory

requirement of keeping various books of accounts and records and to exercise to control

over various financial areas through the process of budgetary control, ABC analysis, cash

and fund flow position, profitability planning and compilation of other information for

managerial decision and control. Finance department acts as nerve center for whole of the

organization, almost all other departments are directly or indirectly related to this

department.

Various important routine accounting functions involves:-

a. Sales accounting

b. Purchase accounting

c. Internal Audit

d. Expenses accounting

e. Financial accounting

f. Cost accounting

g. Excise and Sales tax

MARKETING DEPARTMENT

This department is mainly concerned with sales and after sales services, sales

planning, organizing market research, promotion policy etc. It is headed by Senior GM -

Marketing and is assisted by Chief Managers, Managers, Assistant Manager, senior

engineers and technicians.

PTL adopts a cost leadership approach to pricing and promote its product using all

major resources of promotion. Swaraj Tractors are sold through more than 500 dealers

spread all over the country.

During the FY 2007-08, the Company has made special efforts to reduce dealer

outstanding by focusing attention on increasing retain sales and reducing dealer stocks

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thereby increasing in collection from dealers. This has helped substantial reduction in

pipeline stocks and dealer outstanding.

PERSONNEL MANAGEMENT DEPARTMENT (HRD)

This department is headed by the General Manager and is assisted by the managers,

assistant manager and personnel officers. HRD remains in touch with the workers

requirement and tries to fulfill them. This department is divided into:-

1) Recruitment, Training and Placement Department

2) Time Office and Workers Well Fare Department

SWOT ANALYSISSTRENGTHS:

Due to strong consumer preference and the potential for expansion, the industry in

bound to record growth.

Being a cash rich company, PTL should have no obstacle for further expansions.

The management of PTL is very efficient and effective.

The company mainly has medium horse power tractor in its product portfolio,

which hold a good growth potential thereby leading to an increase in the market

share.

The company has an excellent distribution network along with established brand

equity of the company can capitalized upon.

Strong Research and development set up.

WEAKNESSES:

The company has a weak presence in southern and eastern India as compared tonorthern India.

The company is addressing this problem by going in for capacity expansion and

increasing dealer network.

The company has not leveraged its brand and product varies in the exports

market.

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Being agro-based product , companys fortune depends on the vagaries of the

monsoon.

Major market share in Punjab & Haryana could stagnate as the market mature.

OPPORTUNITIES:

By launching high horse power tractors , the company can enjoy more high

growth rate .

The core rural market is untapped and lots of opportunity exists there any finance

companies, along with banks have gone for innovative schemes to woo buyers.

Largest second market of Gujarat and Madhya Pradesh with low cost economy

tractors.

Good brand name, product quality and cost advantage to increase exports in lowvalue markets of Sri Lanka, Bangladesh and African countries.

THREATS:

The entry of international and new domestic players would intensify

competition significantly. This could put pressure on the sale growth and the

merging of the company.

The contained increase in price of inputs relative to price of final product

could effect badly.

Number of technically superior new models likely to be launched in the

market in the next two years.

The evitable increase in petroleum prices including diesel, will naturally bring

down the spirit of a prospective tractor purchasers.

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RATIONALE

OF

STUDY

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RATIONALE OF STUDY

Role of Mechanics advantage in sales and distribution channels.

Your sales channels touch potential customers at their most vulnerable moment in

the buying tractors -- the moment when they seek advice at the point-of-purchase. Most

have a good idea of what they need, but are uncertain of which brand will provide it.

Incidentally, tractor mechanics provide the vital information.

Most customers seeking word-of-mouth advice, follow it. If customer is not

satisfied with information provided by sales persons, mechanics fill the important void.

That is how successful brands gain an unfair advantage. Work with strategy to

take advantage of these mechanics for the sale promotion.

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OBJECTIVES

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OBJECTIVES

To study the various products of Mahindra & Mahindra Ltd., Swaraj Division,

Mohali.

To study the market strategy and promotion sales of Mahindra & Mahindra Ltd.,

Swaraj Division, Mohali.

To study the various aspects about the Mahindra & Mahindra Ltd., Swaraj

Division, Mohali.

To study the role of mechanics in the sale of tractors.

To study the comparative analysis of all brands of tractors in relation to the advice

of tractor mechanics.

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RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

Research refers to the organized method consisting of enunciating the problem

collecting facts, critically analysis of facts and arriving at conclusion based on them.

Formulation of the problem is the first & vital step in research John says that It is a

familiar & significant saying that problem well put in is half solved.

RESERCH DESIGN

After research objectives the second stage of research calls for developing the

most efficient plan for gathering the needed information. Designing a research plan

includes decisions on data sources, research approaches, research instrument & sampling

plan.

DATA COLLECTION

Collection of data regarding the problem under research is called data collection.

Two types of data can be used in research i.e. primary data & secondary data. I have used

primary data for my project report.

PRIMARY DATA

The primary data is the data gathered for a specific purpose or specific research

report. I have collected primary data with help of questionnaires.

SECONDARY DATA

The secondary data is the data, which already exists & was collected for some

other purpose. The secondary data I have used in my research report is basically collected

from the business magazines, journals & websites of trade organizations.

RESEARCH APPROACH

Primary data can be collected in four ways: Observation. Focus groups, Surveys

& Experiments. My approach to the research is survey based, as it is best suited to know

the role of mechanics in the sale of tractors

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RESERARCH INSTRUMENT

The instrument used for carrying out the research is questionnaire as it is the most

economical, flexible & easy to understand device used for collection of data. Keeping in

view the research objectives, a questionnaire is prepared which is very easy tounderstand.

SAMPLING DESIGN

The first step in developing any sample design is to clearly define the set of

objects, as my study is exploratory, the sampling design includes three decisions i.e.

sampling unit, Sample size & Sampling procedure.

SAMPLING PROCEDURE

It was a stratified sampling in which Four Strata are made from Ludhiana District

namely Ludhiana, Jagraon, Raikot and Pakhowal. And then random sampling was used

in these strata.

SAMPLING UNIT

In this research report the sampling unit is the tractor mechanics of Ludhiana.

SAMPLING SIZE

The sample size of my research is 30 tractor mechanics , Large samples give more

reliable results that is why I tried my best to cover more tractor mechanics of different

dealers in Ludhiana district.

Sample Size 100

Sample Unit Tractor Mechanics

Area of Survey Ludhiana

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INTERPRETATION

AND

ANALYSIS

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INTERPRETATION AND ANALYSIS

Age:

10-15 Years 0

15-20 Years 4

20-30 Years 11

30 or above 85

Agegroup of Mechanics

30 or above

85%

10-15 Years

0%

20-30 Years

11%

15-20 Years

4%

10-15 Years

15-20 Years

20-30 Years

30 or above

43

Mechanics in the market are experienced ones, as only 7 % are of the age group

20-30 Years and rest 93 % are of the age group more than 30 Years.


44/81

For how many years, you are in mechanic line?

1-5 Years 3

5-10 Years 17

More than 10 Years 80

Years Experience

5-10 Years17%

1-5 Years

3%

More than

10 Years

80%1-5 Years

5-10 YearsMore than 10 Years

44

13 % of the mechanics have experience of 5-10 years and rest 87 % of the

mechanics have a experience of more than 10 years .


45/81

Are you an authorized mechanics?

Yes 3

No 97

Authorised Dealership

No

97%

Yes

3%

Yes

No

45

97 % of the mechanics in the market are not the authorized ones, only 3 % are

having the authorized workshop of tractors.

Authorized Workshops


46/81

What is your qualification regarding your work?

Diploma in Mechanical 2

Motor Mechanic Course 11

Work Experience only 87

Qualification Regarding Work

Diploma in

Mechanical

2%

Work

Experience

only87%

Motor

MechanicCourse

11%

Diploma in Mechanical

Motor Mechanic Course

Work Experience only

46

All mechanics working in the market do not have any qualification background

but having a good working experience of their line.


47/81

Are you aware of all the models of tractors available in the market?

A. Yes B. No

Awareness Regarding Tractor Models

Yes

100%

No

0%

Yes

No

47

Mechanics in the market have a good knowledge regarding all the models of

the tractors available in the market.


48/81

According to you, which group is the main buyer of the tractors?

A. Farmers

B. Commercial Users

Farmers 69

Commercial Users 31

48

Farmers are the main buyers of the tractors thereby 69% responses made by

Consumers are for farmers and the rest 31% for commercial users.


49/81

According to you, do they have enough knowledge regarding buying tractor?

A. Yes

B. No

Knowledge Regarding Buying Tractor

Yes

100%

No

0%

Yes

No

49

According to all the mechanics, farmers and Commercial Users have the

knowledge of buying the tractors.


50/81

Prioritizes the following aspects when customer looks to buy new tractor.

1. Cost (Price, Resale and maintenance)

2. Distribution Network

3. Brand image

4. Dealer Response

5. Performance

6. After Sale Service

7. Any other

(Please specify): - ___________________________________________________

Customers Priority

Any other, 1After Sale

Service, 11

Performance,

22Distribution

Network, 0

Brand Image,

1

Dealer

Response, 0

Cost, 30

Cost

Distribution Network

Brand Image

Dealer Response

Performance

After Sale Service

Any other

*From the options given respondents have marked more than one option

50

Performance is the main criteria while buying the tractor. Cost & After Sale

Service hold second & third position respectively


51/81

Which brand of Tractor comes mostly for repair?

A. HMT B. Mahindra and Mahindra

C. PTL (Swaraj) D. Sonalika

E. Eicher F. New Holland

G. Escorts H. TAFE

I. John Deere J. Bajaj Tempo

K. Standard L. Mahindra & Mahindra Ltd., Swaraj

Division

M. Same

51

Tractor Repair

PTL(Swaraj), 7

Mahindra and

Mahindra, 7

HMT, 0All, 8

Mahindra & Mahindra Ltd., Swaraj Division, 0

Standarad, 0

Eicher, 3 Sonalika, 3

TAFE, 1

Escorts, 0

Bajaj Tempo, 0

New Holland, 0

John Deere, 1

HMT

Mahindra and Mahindra

PTL(Swaraj)

Sonalika

Eicher

New Holland

Escorts

TAFE

John Deere

Bajaj Tempo

Standarad

Mahindra & Mahindra Ltd., Swaraj D

All

As per mechanics more the selling of tractors and the repair is accordingly

to the selling. Thereby, PTL (Swaraj) and Mahindra and Mahindra come mostly for

repair.


52/81

Which brand of Tractor you recommend?

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D. PTL (Swaraj) E. Sonalika

F. Eicher G. New Holland

H. Escorts I. TAFE

J. John Deere K. Bajaj Tempo

L. Standard M. Mahindra & Mahindra Ltd., Swaraj

Division

N. Same


53

Tractor Repair

John Deere, 0

Standard, 0Bajaj Tempo, 0

Mahindra & Mahindra Ltd., Swaraj Division, 0

Same, 0

New Holland,20

Escorts, 0

TAFE, 1

Eicher, 1

Sonalika, 20

PTL (Swaraj), 18

Mahindra and

Mahindra, 5

HMT, 1HMT

Mahindra and Mahindra

PTL (Swaraj)

Sonalika

Eicher

New Holland

Escorts

TAFE

John Deere

Bajaj Tempo

Standard

Mahindra & Mahindra Ltd., Swaraj Div

Same

Tractor Recommendation

In case of recommendation Sonalika is the best amongst all, followed by

PTL(Swaraj) and Mahindra and Mahindra.


54/81

Which brand of Tractor do you succeed to sell the most?


C. PTL(Swaraj) D. Sonalika

E. Eicher F. New Holland

G. Escorts H. TAFE

I. John Deere J. Bajaj Tempo

K. Standard L. Mahindra & Mahindra Ltd., Swaraj

Division

M. Same


54

As per sale on behalf of tractors mechanics, PTL (Swaraj) having a good share as

13 favoured it, 11 mechanics succeed to sell Sonalika and 5 mechanics favoured

Mahindra & Mahindra Ltd., Swaraj Division, Mohali.


55/81

Rate the following Aspects From 1 to 6 according to priority on the basis of which

you recommend a brand?

A. Cost( Price, Resale and maintenance) B. Distribution Network

C. Brand image D. Performance and looksE. After Sale Service F. Help By dealer or company

0

5

10

15

20

25

30

1 2 3 4 5 6

Ranking

ResponsesofMechanic

Cost

Distribution

Brand Image

Performance and Looks

After Sale Service

Help by delare or company

vera er ormance o spec s

36

151

143

57

88

155

020

406080

100120140160

180

Cost

Distribution

BrandImage

Performance

andLooks

AfterSale

Service

Helpby

Dealeror

Company

Aspects

RatingPoints

As the ranking wise system has been deployed in the survey, the most lower numbers

given, higher the priority. According to that Cost is the most suitable aspect as the

numbers given per rank to the appropriate aspect. Then comes the performance and

looks, similarly after sale service is also valuable.

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According to you, who influenced buying decision of the user?

A. Friend B. Relative

C. Family Member D. Mechanic

E. OPINION LEADER

Influencing Buying Decision

Relative, 11

Friend, 11

Opinion

Leader, 0

Mechanic,

29Family

Member, 2

Friend

Relative

Family Member

Mechanic

Opinion Leader


56

It has been clear from the fact that there is good impact of mechanic on the sale of

tractor is more as 29 take the advice from mechanics, 11 from relatives and 2 from

family members.


57/81

What %age of people are satisfied with your advice?

A. 0-25% B. 25-50% C. 50-75%. D. 75-100%.

Satisfaction with Advice

25-50 %, 2

0-25 %, 075-100 %, 3

50-75 %, 25

0-25 %

25-50 %

50-75 %

75-100 %

57

As per 25 mechanics, 50 -75 % of the people are satisfied with their advice.


58/81

What %age of people do not seek second advice after consulting you to buy a

tractor?

A. 0-25% B. 25-50% C. 50-75%. D. 75-100%.

People not seek second Advice

25-50 %, 2

0-25 %, 26

75-100 %, 050-75 %, 2

0-25 %

25-50 %

50-75 %

75-100 %

58

According to 26 mechanics out of 30, 0-25 % of the people do not seek second

advice.


59/81

What %age of people send other people to you for advice to buy a tractor?

A. 0-25% B. 25-50% C. 50-75%. D. 75-100%.

Advice with Reference

25-50 %, 17

0-25 %, 12

75-100 %, 0

50-75 %, 1

0-25 %

25-50 %

50-75 %75-100 %

59

According to 12 mechanics out of 30, 0-25 % of the people sends other people to

them for advice and 17 says 25-50 %.


60/81

How many tractors do you help to sell in a month?

A. 10-15 B. 15-30 C. 30-50. D. 50-80

Helping Tractors to Sell

15-30 Tractors,

0 30-50 Tractors,

050-80 Tractors,

0

10-15 Tractors,

30

10-15 Tractors

15-30 Tractors

30-50 Tractors

50-80 Tractors

60

As far as the sale of the tractors is concerned 10-15 tractors are sold with

help of mechanics every month.


61/81

Do you Recommend Mahindra & Mahindra Ltd., Swaraj Division also? If yes, to what

%age of customers who visit you for advice?

A. 0-25% B. 25-50% C. 50-75%. D. 75-100%.

Recommendation for Sonalika

25-50 %, 10

0-25 %, 19

75-100 %, 0

50-75 %, 1

0-25 %

25-50 %

50-75 %

75-100 %

61

19 Mechanics recommend Sonalika to 0-25%of the Customers. 10 Mechanics

recommend Sonalika to 25-50% of the customers & 1 Mechanic says that he

recommends to 50-75% of the customers visiting him for advice.

Recommendations for Mahindra &


62/81

What is the %age sale ofMahindra & Mahindra Ltd., Swaraj Division through You?

(%Age of total customers consulting Mechanic)

A. 0-25% B. 25-50% C. 50-75%. D. 75-100%.

62

According to the 23 mechanics, % sale of Sonalika through them is 0-25% & 7 say

that it is 25-50%.


63/81

How would you Mahindra & Mahindra Ltd., Swaraj Division rate on 5-point scale?

1

(poor)

2(Satisfactory) 3(Average) 4(More

thanAverage)

5(Excellent)

a. Price 0 0 8 22 0

b. Fuel Efficiency 1 0 6 23 0

c. Brand Image 0 8 22 0 0

d. Resale Value 0 1 12 16 1

e. Distribution

Network

0 22 8 0 0

f. Spare parts

available

11 19 0 0 0

g. After sale

service

0 18 12 0 0

h. Look style 0 6 19 5 0

i. Performance 0 0 12 18 0

j Customer Care 0 2 25 3 0

0

5

10

15

20

25

30

a.Price

b.FuelE

fficien

cy

c.BrandIma

ge

d.ResaleVa

lue

e.Di

stribu

tionNe

twork

f.Spare

partsa

vailable

g.Aftersa

leservi

ce

h.Looks

tyle

i.Perfo

rmance

jCustome

rCare

Aspect

ResponsesofMechanics

1 (poor)

2(Satisfactory)

3(Average)4(More than A vera

5(Excellent)

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Summated Rating Of aspects

91108

8972

49

68

102

88

111112

0

20

40

60

80100

120

Price

FuelEfficency

BrandIm

age

Resale

Value

Distribution

Network

SparePa

rtAvailable

AfterSale

Serviec

Look

Style

Performance

Customer

Care

Aspects

Ratingpoin

ts

Rating has been done on 5-point scale, more the points, more the valuability. According

to that Price aspect is highly considerable then the Fuel Efficiency and Performance and

the other aspects respectively.

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Do you want any type of help from the tractor companies?

A. Yes B. No

If yes, what type?

A. Commission B. Gifts

C. Training. D. Any other type

Help from Tractor Companies

Yes, 19

No, 11

Yes

No

Only Training, 1

Only Commission,

12

Gifts, 0Any Other, 0

Both Commission

& training, 6

Gifts

Only Commission

Only Training

Both Commission &

training

Any Other

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FINDINGS

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FINDINGS

The trend has been showing that the impact and the role of mechanics are well in

the sale promotion of the tractors.

It has been clear from the fact that the impact of mechanic on the sale of tractor is

more as 29 responses are for mechanics, 11 for relatives and 2 for family members.

50 -75 % of the people are satisfied with the advice of the mechanics as per 25

mechanics saying. According to 26 mechanics out of 30, 0-25 % of the people do not

seek second advice. According to 12 mechanics out of 30, 0-25 % of the people send

other people on their advice and 17 says 25-50 %. As far as the sale of the tractors are

concern 10-15 tractors have been sold out with the help of mechanics every month.

According to 19 mechanics 0-25 % of the customer visit for their advice to buy Mahindra

& Mahindra Ltd., Swaraj Division, Mohali and 10 says 25 50 % go for the same cause.

According to the 100 mechanics, 0-25 % of the sale of Mahindra & Mahindra

Ltd., Swaraj Division are through them and 7 says 25 50 % of the Mahindra &

Mahindra Ltd., Swaraj Division sale through them.

Thereby, for the growth of the sale promotion of Mahindra & Mahindra Ltd.,

Swaraj Division, Mohali, they have to take care of the commission and training in the

benefit of the mechanics so that more and more mechanics recommend Mahindra &

Mahindra Ltd., Swaraj Division as their favourite brand, that helps the company to make

a good share in the market.

Standardisation should have to be maintained to avoid change of models

frequently and it will solve the problem of the availability of spare parts.

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CONCLUSION

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CONCLUSION

Tractor Mechanics has the vital role in the sale promotion of the Mahindra &

Mahindra Ltd., Swaraj Division, Mohali. Thereby, for the growth of the sale promotion

of Mahindra & Mahindra Ltd., Swaraj Division, Mohali, they have to take care of the

commission and training in the benefit of the mechanics so that more and more

mechanics recommend Mahindra & Mahindra Ltd., Swaraj Division as their favourite

brand, that helps the company to make a good share in the market.

Company must have to enlist all the tractor mechanics of the Ludhiana and

have to make plan sheet in accordance to provide benefits to them. As they help in givingadvices to the farmers, big agriculturists and commercial users regarding the brand and

their performances, cost comparison and also regarding the after sale service.

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SUGGESTIONS BY THE MECHANICS FOR MAHINDRA &

MAHINDRA LTD., SWARAJ DIVISION, MOHALI

The main problem is with the spare parts of the tractors, company should have to

take care of the availability of the spare parts of tractors in the market so that consumers

do not face problem. Spare parts should be standardized.

Tractor models shouldnt have to change frequently for the improvised

classification of the product. Time to time company is changing the products and making

confusion in the minds of consumer and mechanics as well.

Lift Pump Pipe provided by the company manufacturers is too long and causing

leakage problems time to time. Mechanics have already mentioned these kind of

problems to the sales persons and company officials but no step yet been taken.

Heavy bearing system should be used in steering to make it lighter.

Hydraulic problem of lift is being faced. Dry brakes when used for haulage

purpose not work properly and make noise.

Rear wheel bearings get muddy and as a result, seal leaks. Precautions have to be

taken so that bearings should have to be covered and properly placed to avoid seal

leakage.

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LIMITATIONS

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LIMITATIONS

The report may be beneficial to company. But there are some limitations of the study.

1. The size of the research may not be substantial.

2. There was lack of time on the part of mechanics.

3. There may be some bias information provide by tractor mechanics.

4. As only a single city are surveyed or covered. It does not represent the overall

view of Tractor Market.

5. It is very much possible that some of the mechanics may have given the incorrect

information.

6. The last but the most important point to that survey was carried through

Questionnaire and the Questions were based on perception. Most important is

positioning. But there may be certain aspects not taken into consideration.

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BIBLIOGRAPHY

73


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BIBLIOGRAPHY

Library Resources

Drucker, Peter F. (1989), "What Business Can Learn From Nonprofits,"

Harvard Business Review, Vol (July-August), 88-93.

Ensman, Richard (1987), "Market Research: A Valuable Aid To Small

Non-Profits," Fund Raising Management, 18 (September), 108.

Freeman, Laurie (1998), "Corporate Branding Gains B-To-B

Momentum," Advertising Age's Business Marketing, 83 (December), 1-2.

Keller, Kevin Lane, Strategic Brand Management: Building, Measuring,

and Managing Brand Equity, Upper Saddle River, NJ: Prentice-Hall, Inc.

Kotler, Philip and Alan R. Andreason (1996), Strategic Marketing For

Nonprofit Organizations, Upper Saddle River, NJ: Prentice Hall, Inc.

Internet Resources

www.Mahindra & Mahindra Ltd., Swaraj Division.com

http://www.naukri.com/gpw/sonalika/index.htm

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ANNEXURE

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ANNEXURE: QUESTIONNAIRE

Dear Sir,

I, Pradeep Singh Grewal, MBA 3

rd

Sem. student of LCET, Katani,Chandigarh Highway, Ludhiana,. Conducting a market survey to know the Impact of

mechanics on the sale of tractors in Ludhiana District.

1. Your Name? Please

2. Your Address and contact no.

________________________________________________________________________

________________________________________________________________________

3. Age:

A. 10-15 Yrs B. 15-20Yrs C. 20-30Yrs D. 30 or above

4. For how many years, you are in mechanic line?

A. 1-5 year

B. 5-10 years

C. More than 10 Years

5. Are you an authorized workshop?

A. Yes B. No

6. What is your qualification regarding your work?

A. Diploma in Mechanical

B. Motor Mechanic Course

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C. Work Experience Only

7. Are you aware of all the models of tractors available in the market?

A. Yes B. No

8. According to you, which group is the main buyer of the tractors?

A. Farmers

B. Commercial Users

9. According to you, do they have enough knowledge regarding buying tractor?

A. Yes

B. No

10. Prioritize the following aspects when customer looks to buy new tractor.

A Cost (Price, Resale and maintenance)

B Distribution Network

C Brand image

D Dealer Response

E Performance

F After Sale Service

G Any other

(Please specify): - ___________________________________________________

11. Which brand of Tractor comes mostly for repair?

A HMT

B Mahindra and Mahindra

C PTL (Swaraj)

D Sonalika

E Eicher

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F New Holland

G Escorts

H TAFE

I John Deere

J Bajaj Tempo

K Standard

L Mahindra & Mahindra Ltd., Swaraj Division

M Same

12. Which brand of Tractor you recommend?

A. HMT

B. Mahindra and Mahindra

C. PTL (Swaraj)

D. Sonalika

E Eicher

A. New Holland

B. Escorts

C. TAFE

D. John Deere

E. Bajaj Tempo

F. Standard

G. Mahindra & Mahindra Ltd., Swaraj Division

H. Same

13. Which brand of Tractor do you succeed to sell the most?

A HMT

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B Mahindra and Mahindra

C PTL(Swaraj)

D Sonalika

E Eicher

F New Holland

G Escorts

H TAFE

I John Deere

J Bajaj Tempo

K Standard

L Mahindra & Mahindra Ltd., Swaraj Division

M Same

14. Rate the following Aspects From 1 to 6 according to priority on the basis of which you

recommend a brand?

Cost( Price, Resale and maintenance)

Distribution Network

Brand image

Performance and looks

After Sale Service

Help By dealer or company

15. According to you, who influenced buying decision of the user?

A Friend

B Relative

C Family Member

D Mechanic

E OPINION LEADER

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16. What %age of people are satisfied with your advice?

A. 0-25% B. 25-50% C. 50-75%. D. 75-100%.

17. What %age of people do not seek second advice after consulting you to buy a tractor?

A. 0-25% B. 25-50% C. 50-75%. D. 75-100%.

18. What %age of people send other people to you for advice to buy a tractor?

A. 0-25% B. 25-50% C. 50-75%. D. 75-100%.

19. How many tractors do you help to sell in a month?

A. 10-15 B. 15-30 C. 30-50. D. 50-80

20. Do you Recommend Mahindra & Mahindra Ltd., Swaraj Division, Mohali also? If yes, to

what %age of customers who visit you for advice?

A. 0-25% B. 25-50% C. 50-75%. D. 75-100%.

21. What is the %age sale of Mahindra & Mahindra Ltd., Swaraj Division through You?

(%Age of total customers consulting Mechanic)

A. 0-25% B. 25-50% C. 50-75%. D. 75-100%.

22. How would you Mahindra & Mahindra Ltd., Swaraj Division rate on 5-point scale?

1

(poor)

2(Satisfactory) 3(Average) 4(More

than

Average)

5(Excellent)

a. Price

b. Fuel Efficiency

c. Brand Image

d. Resale Value

e. Distribution

Network

f. Spare parts

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available

g. After sale service

h. Look style

i. Performance

j Customer Care

23. Do you want any type of help from the tractor companies?

A. Yes B. No

If yes, what type?

A. Commission B. Gifts

C. Training. D. Any other type

If Any Other, Please specify ______________

24. What are your suggestions for the Mahindra & Mahindra Ltd., Swaraj Division, Mohali?

____________________________________________________________________________

____________________________________________________________________________.

Mechanic Impact

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