A PROJECT REPORT ON conquest Analysis of M&M in Burhanpur District

AT

Mahindra & Mahindra Automobiles.

UNDER GUIDANCE OF Mrs. AMreena Madam

SUBMITTED TO UNIVERSITY OF PUNE. IN THE PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION BY Hilal Ansari MBA (MARKETING) (2011-2012)

POONA INSTITUTE OF MANANAGEMENT SICENCE AND ENTERPURENERSHIP.

ACKNOWLEDGEMENT

I overwhelmed my sense of gratitude towards all those who helped and guided me during the course of this project. I feel immense pleasure in expressing my sincere and profound sense of gratitude to Mr. RISAL KHAN , of Mahindra & Mahindra Automobiles, for their inspiring guidance and constructive criticism during the course of summer project. I express my sincere thanks to Mr. WASIM HASHMI , Sales Manager and sales team of CENTRAL MOTOR BURHANPUR for their guidance, constant encouragement and constructive criticism I am very thankful to Mrs. Amireena Madam and all staff members of POONA INSTITUTE OF MANANAGEMENT SICENCE AND ENTERPURENERSHIP for

their cooperation and valuable guidance in completing the project. I express my sincere thanks to Director Dr. ANWAR SHAIKH for inspiring guidance.

CONTENTS 1. Objective Of The Project 2. Company profile 3. Executive Summary Of The Project 4. Research Methodology 5. Analysis & Interpretation Of Data 6. Conclusion 7. Suggestion 8. Bibliography

Objective Of The Project

Objective of the project

The main objective of the project is To carry out Conquest analysis i.e. Victory Analysis of M & M Tractors in Burhanpur District The other Objective of the project are as follows To know about the preferences of M & M owners & Swaraj owners while buying a tractor To know awareness Of M & M & Swaraj owners about other tractors & models To know the Information Sources Preferred by M & M & Swaraj owners before buying tractors. To Know the persons who influences the final buying decision of customer & To Know Performance parameters taken into consideration by M & M & Swaraj owners before buying tractor To Know Likes & Dislikes of M &M owners about M & M Tractor To know the reasons due to which Swaraj owners did not bought M&M tractor To know the Sources of Finance used by Tractor owners To know 2nd choice of M & M ,Swaraj owners while purchasing tractor To know crops grown , Land owned, Habits of tractor owner,Use of tractor

Company Profile

Mahindra & Mahindra Company Profile

Mahindra & Mahindra Limited, the flag-ship company of India's Automobile giant the Mahindra Group, was founded by two enterprising brothers K.C,Mahindra & J.C. Mahindra in 1945 just at the dawn of India's Independence with a vision to manufacture and market Jeeps. Today, Mahindra & Mahindra is one of the top ten private sector companies in India. The core business of the group of producing Utility Vehicles,Light Commercial Vehicles and Tractors has grown by leaps and bounds over these years .Mahindra & Mahindra Ltd., manufacturing facilities together cover an area of over 5,00,000 sq. meters employing over 17,000 technical and non-technical personnel. It can boast of having 8 state-of-the-art factories. One of the most progressive and dynamic divisions of Mahindra & Mahindra Ltd., is the Farm Equipment Sector (Tractor Division) which was started way back in 1963. The late 1960's witnessed the beginning of a new revolution in India. The Green Revolution" .Mahindra & Mahindra took the lead and responded by launching their new "INTERNATIONAL" range of modem high performance tractors. In technical Collaboration with the international Harvester Co. Ltd .U.K., it set up international Tractor Co. of India Ltd. (LT.C.I) in 1963. The initial annual production was 3500tractors , which gradually rose to 16,000 Tractors, in 1978. I.T.C.I merged with the parent company to be rechristened as Mahindra & Mahindra Ltd. Tractor Division, which now has a capacity of producing over 80,000 tractors The Farm Equipment Sector has manufacturing facilities at four locations i.e. Kandivil - A western suburb of Mumbai in the State of Maharashtra Nagpur, - The Orange City of Maharashtra Rudrapur - In Uttaranchal Jaipur - In Rajasthan

Market Position:

Mahindra & Mahindra Ltd., is the market leader consecutively for 22 years in the Indian Tractor industry, since 1983, with a market share of 31%. The Company has already produced and sold over 10,00,000 Tractors .M& M has 4 factories, 27 Area Offices, 500 Dealers, & 78 Stockiest in India. In Maharashtra it has 32 Dealers & 11 Stockiest. In addition to capturing the domestic market, M&M has also made significant progress in the intensely competitive overseas market. The company has already exported over 8500 Tractors to African Countries viz. Zimbabwe,Zambia,Malaysia,NewZealand,Australia,Thyland,Turkey,Ghana,Syria,Iran,Sudan, Chile,Mexico,Guyana,Uganda,Kongo,SouthAfrica & neighboring Countries Nepal, Sri lanka, Bangladesh ,China etc. M&M has also achieved a major break through in the U.S. Market.' The company has already exported over 6500 Tractors and have established a new subsidiary' in the US viz. Mahindra U.S.A.Inc., at Houston with the objective of increasing its sales in the U.S.A.

Quality Standards:

Mahindra & Mahindra has also received ISO:9001 (Kandivali Plant), & ISO9002 QS-9000 (Nagpur Plant) the prestigious international quality certificate from RWTUV Germany for Design, Manufacture, Marketing & Servicing of Tractors. Mahindra Tractors Are at the cutting edge of the Tractor industry determined to be the 'WORLD LEADER BY THE YEAR 2005.M&M has won DEMINGALLPICATION PRIZE in 2003 given by JUSE, JAPAN. It is the only tractor company in world to get this prize for quality Management.

Special Features of Mahindra Tractor :

Since Mahindra Tractors have been manufactured by using advance technology& also manufactured in a factory possessing ISO-900l & QS-9000. Therefore there exist some special features. These Special features of Mahindra Tractors are as given below: 1) Proper & effective utilisation of fuel. 2) Less - maintenance cost.

3) More deep ploughing is possible 4) Engine is having longer life. 5) Comfortable driving 6) Gar-box suitable for all kinds of works is present 7) Mahindra Tractor works excellently in all types of soils 8) 2 years or 2000 hrs. Warranty 9) Safety Brakes arrangements are present 10) High load carrying capacity

Special features of Arjun model of Mahindra Tractor:

The Arjun model is a new model launched by Mahindra &.Mahindra. The special features of this Arjun model are as given below: 1) Due to Double Life P.L.F. - Engine

a) Tractor is possessing high power b) Engine Life is 8000 hrs c) Saving of fuel. 2) Due to Hy- TECH-HYDRAULICS - attachment, Tractor is having higher load carrying capacity & therefore Tractor becomes more suitable for Agricultural work & other work. 3) Due to DRY TYPE AIR CLEANER ,tractor is having longer life, less maintenance & good protection to engine . 4) Due to Power Steering tractor is easy for driving 5) Due to Constant Mesh Gear Box Attachment, shifting of gears becomes easy & tractors become more suitable for agriculture work. 6) Battery is having less maintenance. 7) Less consumption of Diesel & oil. 8) Powerful Halogen lamps become more useful in night.

Executive Report of the Project

Project Introduction
The project was carried out in Burhanpur District. The areas to be covered were those areas where tractor population is good. The areas covered in this project are Khargone, Bhadwani, Burhanpur, Nimbora ,Nepanagar, Patonda .These areas are Taluka places & their surrounding villages. The sample size was 60 Owners of M & M tractors & 30 owners of Swaraj tractors.The reason behind selecting Swaraj Co is that Swaraj is the main Competitor Of M & M tractors in Burhanpur Region.

The tractor owners contacted during the project were the owners who had bought M & M and Swaraj tractors during last 5 yrs. Majority of tractor owners are the owners who had bought tractor in last 3 years. The reason behind taking 30 no as sample size of Swaraj owners is that even though they are main competitors of M & M, their tractor population is less as compared to M & M. The data was collected by using a Questionnaire .The Questionnaire contains five Sub topics Tractor History, Consideration &Awareness ,Buying Process ,Purchase details & Profile of the Respondent. In Tractor History all the details about tractor is taken like Make & model Registration No etc. In Consideration & Awareness the Other tractors considered by respondent at the time of buying & are awareness about other tractor companies is tested. In Buying Process the information sources used by tractor owners, Main influencers on final decision are traced out In Purchase details, the financial Sources Used, Price of tractor, is traced out. In Profile of the Respondent, The Crops grown, Land Cultivated, use of tractor for Agriculture & Non agriculture, His habits, His Financial Position is traced After filling the entire questionnaire the data collected is Analyzed, Interpreted using various techniques After all this the conclusions are drawn .Finally on the basis of all thisSuggestions are given to the Company.

RESEARCH METHODOLOGY

Research Methodology Research Instrument: Structured Questionnaire Sampling Plan:

1. Sample method: convenience sampling 2. Sample size : 90 for M & M and 30 for Swaraj

Sampling Design: Convenience Sampling

There are various method of sample design are available but t conduct this Survey we select Convenience Sampling which is based on Convenience of Researcher. The respondent sample is included in it merely because of their availability on point where survey is in progress & tractor being up to 5 yr old.

Types Of Data Basically there are two main types of data 1) Primary data 2) Secondary Data 1) Primary Data :The primary data are those which are collected fresh &for the first time &thus happen to be original in character. Such data are published by authorities who themselves are responsible for their collection.

2) Secondary Data :The secondary data are those which have already been collected by some other agency & which have previously been collected by some organization to satisfy it s own need but it is being used by other department under reference for an entirely different reason.

Methods for collecting Primary Data:

a) Interview Method of Data Collection b) Observation Method of Data Collection c) Questionnaire Method of Data Collection

Method for collecting Secondary Data

d) Record Review Method of Data Collection

For Project Methods for collecting Primary Data

For our Project we used following method a) Questionnaire Method of Data Collection
According to this method a questionnaire is used for asking questions to respondents. A special & related question format is prepared for this.

Method for collecting Secondary Data a) Record Review Method

According to this method of secondary data collection manuals, magazines, brouchers, pamphlets & annual reports of M & M Co have been studied to gather the necessary information.

ANALYSIS &INTERPRETATIO N OF DATA

Total Samples Of Tractor Owners Taken In Burhanpur District90 nos. Company wise Distribution 1) Mahindra & Mahindra -60 no 2) Punjab Tractors Ltd- 30 no (Swaraj Tractors) Areas Covered In Project Shahpur,Khargone,Bhadwani, Nepanagar, Patonda, Burhanpur

S.NO

AREA

M&M

SWARAJ

Total

1 2 3 4 5 6 Total

FOR M & M OWNERS

M & M Repeat M & M buyer as 1st Total Choice 20 29

Other tractors as 1st choice 11

Total

60

M&M SWARAJ FNH L&T MF ESCORTS SONALIKA TOTAL

49

60

Most Considered Model

No 1 2 3 4 5

Model 575 DI Sarpanch 475 DI Sarpanch 275 DI Sarpanch 595 DI Super Turbo 605 DI Arjun

Nos 47 45 19 14 11

Percentage 78% 75% 31% 23% 18%

265 DI Sarpanch

13%

Model & Year wise distribution of M & M owners

For Swaraj owners

Total No of owners 30

Swaraj as 1 st choice 15

M & M as 1st choice 14

Sonalika as1st choice 1

Most Considered Model

No 1 2 3 4

Model Swaraj 735 FE Swaraj 744 FE Swaraj 855 Swaraj 724 FE

Nos 19 28 28 5

Percentage 63% 93% 93% 16%

575 DI Sarpanch

12

40%

Awareness of M & M owners about M & M and other tractors

No 1 2 3 4 5 6 7 8

Models Eitchers Co. Messey Fergusson Co. Swaraj 744 FE Swaraj 855 Escorts 575 DI Sarpanch 475 DI Sarpanch M & M Co.

Nos 39 36 30 30 37 34 33 26

Percentage 83.33% 73.33% 73.33% 73.33% 70% 66.66% 66.66% 56.66%

9 10 11 12 13 14

Sonalika Co. 275 DI Sarpanch Swaraj Co. Ford New Holland L & T John deere Swaraj 735 FE

28 25 30 29 26 21

56.66% 53.33% 46.6% 46.66% 56.66% 35%

Information sources / Information source For M & M

No 1 2 3 4 5 6 7

Source Friends/Relative Other tractor owners Mechanic Previous experience of tractor Tractor Dealers Family Members Sales Person

Nos 50 56 39 19 19 16 1

Percentage 83.33 93.33 65 31.33 31.66 26.66 1.66

Main Influences For M & M owners No Inluence 1 2 3 4 5 6 7 8 Family members other relatives Friends Other Tractor Owners Tractor Dealers Mechanic Television Own decision Total For swaraj Percentage Nos Percentage 15 1.66 8.33. 28.33 5 0 30 41.66 4 0 1 15 0 0 0 10 30 3.33 3.33 50 13.33

Nos 9 1 5 17 3 0 5 25 60

Factors affecting Buying Decision For M & M No Factors 1 For Swaraj Nos Percentage 27 90

Nos

Percentage 85.56

2 3

Reasonable 51 smaintainance/ Running cost Fuel efficiency 40 Cheap & easy avail of spares Engine power Easy avail of service Application suitability False of driving 31

66 51 6 20

4 5 6 7

28 24 18 11

46 40 30 18

20

66.66

12

40

Tractor styling 6

10

Resale value

11.6

Liked Parameters to M & M owners

No 1 2 3 4 5 6 7

Factors Tractor quality Power Fuel Efficiency Driving Comfort Styling of Model Status
Spares availability

Nos 43 31 39 27 25 15 4

Percentage 71.55 51.66 65 45 41 25 6.66

Disliked Parameters to M & M owners No. 1 Factors Nos Percentage 46.66 Pre Warranty 7 Post Warranty 7

Experience at 14 dealership Price Wear of rear tyres Size of fuel tank Hydraulic Problem Oil Leakage 5 5 4 4 3

2 3 4 5 6 7

16.66 16.66 13 13.33 10 10 4 4 3 3 1 2 1 1

Sales Persons 3 Behaviour

Note : 30 owners have no dislike at all

Main (Only) cause for not buying M & M No . cause Nos. percentage Previously owned M&M 6 20 2 5 16 13 10 6 33 2 1 1 1

1 2 3 4 5 6

Relevant Financing not available Friends advice

More maintenance of small type 4 Less speed in work Plough work not good 3 2

Others (Dealers advice ,want to 10 try new tractor , dealers late approach, not good in mud ,Too costly

Other important reasons No. 1 2 3 4 5 causes Friends advice Low fuel efficiency Not enough power No tractor owner friend have it
Relevent financing

Nos. 8 6 5 4 4

About Discount Company No. of customers getting Discount In Last 2 yrs. Before Last 2 yrs.

M&M

10

Swaraj

Total

13

11

About Implements

Company

Without Percentage Implements 57 95

With Percentage implements 3 5

M&M

Swaraj

26

86.66

13.33

Total

83

Managing Finance For Tractor No 1 Sources of Funds Complete Cash Down Payment Nos 17 M& M 13 Swaraj 4

Partly from loans & Partly from savings By selling old tractor

66

42

24

For M & M owners No Sources of Funds Nos Within Percentage Before Percent last 2 last 2 age yrs yrs 13 9 69 4 31

Complete Cash Down Payment Partly from loans & Partly from savings By selling old tractor

42

33

78

22

60

40

For Swaraj owners

No Sources of Funds

Nos

Within Percentage Before Percent last 2 last 2 age yrs yrs

Complete Cash Down Payment Partly from loans & Partly from savings

25

75

24

18

75

25

By selling old 2 tractor

100

Source of Loans . No Source of Funds M&M Swaraj

Loan & Savings

42

24

No Company Nationalised Cooperative Pvt. Pvt. Total Bank Bank Finance Bank Companies 1 M&M 31 3 8 0 42

Swaraj

18

24

No Company

Nationalised Cooperative Pvt. Pvt. Bank Bank Finance Bank Companies

33

22

8 (MMFSL-7)

Selling Old Tractor

No 1

M&M 5 (M & M to M &M = 4 MF to M & M = 1)

Within 2 yrs 3

Before 2 yrs 2

Swaraj 1 2 MF to Swaraj 1, Ford to Swaraj =1 2 0

2nd Choice of M & M owners

No 1

Company Name Swaraj

Nos 31

Reason Good Power, Working speed , Low maint, success in area, good in farm & mud Previous experience, good fule efficiency, good quality, less maintenance Good power, Less maint Good quallity, less maint, brand name

Messey Fergusson

10

L & T John Deere

Sonalika

Eicher

Good substitute to M & M Good in farms

Ford

HMT

Low maintenance

Note : 4 Customers told that they will not buy any tractor other than M & M

2nd choice of Swaraj owners

No

Company Name M&M

Nos

Reason

28

Less maint, Fuel efficiency, Brand name, Spare availability Low maintenance

Sonalika

Sonalika

Wish to try new tractor

No

Previously owned M &M

M & M to M&M

M & M to Swaraj

27

20

No

Previously owned M &M 5

M & M to M&M

M & M to Swaraj

No 1 2 3

Shift from - to MF to Swaraj MF to M & M Ford to Swaraj

Nos 2 2 2

Cultivating Practices

No 1 2 3 4

Activities 1 to 5 & 12 1 to 5 1 to 6 & 12 1 to 6

Nos 49 12 29 0

M&M 35 9 16 0

Swaraj 14 3 13 0

Total

90

60

30

1- Breaking land, 2- levelling field, 3- Ploughing, 4- Removing grass,5 - Cutting crops residue, 6- Sowing 12 - rent to others

Non Agricultural activities of Tractor Owners

No 1 2 3

Activities None Transporting Goods Transporting passengers Construction (2 & 4)

Nos 36 45 0

M&M 26 27 0

Swaraj 10 18 0

4 5 Total

1 8 90

1 6 60

0 2 30

Habits Of Tractor Owners No 1 Items Watch TV (DD1) M&M 50 Swara 28

2 3

Watch cable Listen to Radio Not listen to Radio Reads magazine (India today, Krishi vigyan, Saptahik sakal, Nyanganga

10 18 42 4

2 7 23 1

Margin Money paid to dealer

No 1 2 3 4 5 6 7 8 9 10 11

Amount 30,000 40,000 50,000 60,000 70,000 75,000 80,000 90,000 1,00,000 1,15,000 1,20,000

M&M 2 2 7 12 5 12 5 1 12 1 0

Swaraj 0 1 7 8 1 3 2 2 6 0 0

12 Total

1,50,000

1 60

0 30

Conclusions

Conclusions
The main reasons for M & M s Victory are Parameters like Reasonable maintenance ,Fuel efficiency, Cheap & Easy Availability of Spares &Service, Engine Power, Application suitability All the respondents including Swaraj Owners Knows M & M tractor& its models 56 % of the Swaraj owner's first choice was M & M & 90 % of Swaraj owners rates M & M as 2nd choice Apart from M & M other most Eicher,MesseyFergusson,Escorts,Swaraj,Sonalika known tractor companies are

In both cases i.e. M & M and Swaraj the mostly used Information sources are Other Tractor Owners, Friends/Relatives,& Mechanics resply In case of M & M the main Influencers in final buying decision are Own decision, Tractor owners, family members. But main Influencers is Owners own Decision In case of Swaraj Main Influencers in final buying decision are Other tractor owners, Own Decision resply, But main Influencer is Tractorowners. In case of M & M the parameters affecting buying decision are Reasonable maint, Fuel Efficiency, Cheap & easy avail of spares &Service,& Application suitability. In case of Swaraj the parameters affecting buying decision are Reasonable Maint,engine Power, Application suitability. The Most Liked Parameters to M & M owners are Tractor Quality Power ,Fuel Efficiency ,Driving comfort,& Styling of mode lThe Most Disliked parameters to M & M owners are Experience at Dealer, Price ,Wear of rear tyres ,Hydraulic Problem .The main reason for not buying M & M are Relevant financing sources not available, Friends advice, More maintenance

. Most of the tractor owners of both M & M and Swaraj don t buy implements along with tractor.Most of the tractor owners ,of both M & M and Swaraj has taken loan for buying tractor. 75% of M & M & Swaraj owners both has taken loan from Nationalized Banks. 45% of M & M and 60% of Swaraj owners use tractor for Transporting Goods 43% of M & M and 33% of Swaraj owners don t use tractor for non agricultural use. Not a single Tractor owner took Test Drive before buying tractor Doordarshan is most popular T.V.channel & Lokmat is the most popular Newspaper 93.33% of M & M owners have only one tractor &remaining have more than 1 tractor while in case of Swaraj 100% of Swaraj owners have only one tractor.

The main Crops taken by Tractor owners are Soya bean, Paddy, Wheat, Gram, Cotton, Vegetables,

Suggestions

Suggestions to Company
Dealer Coverage should be increased i.e. No of Salesmans, Frequency of visits etc. Customer Care Executives Should be appointed at Dealer & at workshop both & should treat them with respect . Competitor Customer meets should be arranged. MMFSL services reach to be increased. Post Warranty customers should be contacted at regular interval by Sales & Service team Old Tractor exchange Mela s Should be arranged. Local Mechanics (Reddy s) at Tarsa area should be persuaded about their opinion of M & M tractors. Service reminders /Schedule should be send to all customers. Warranty Policy & procedure for O.E parts should be explained to customer by salesman & service team. .For Advertisement of Company Scheme & dealer scheme Doordarshan is the best T.V. Channel & Lokmat is the best Newspapers Tractor rallies should be held in Badhwa & surrounding areas. Dealer should provide enough time to tractor buyers for making loan proposals. Tractor Dealers should give enough time to customers for making loan proposals The reasons for sales of Swaraj tractor are reasonable maintenance, Good Financing options, application suitability. These parameters should be taken into consideration by M & M . Schemes like free gifts on purchase of tractor should be encouraged more Information about tractor, service, Warranty, schemes can be given to Customers in VCD as nearly 50 % of tractor owners have VCD players The disliked parameters like experience at dealer, tyre problem, salesperson s behaviour should be removed Trained mechanics should be appointed both at workshop & for field visits for attending complaints

Bibliography

Bibliography
1. www.mahindraworld.com (M & M Company s Web Site) 2. Philip Kotler, Marketing Management (Pearson Education Publication,11th Edition, 2001)

3. C.R.Kothari, Research Methodology Methods & Techniques (Wishwa Prakashan,2nd Edition, 1999) 4M&mCompanysPamphlets,Brouchers,Magazines,Reports.