Project Report

On
Customer Buying Behavior Regarding Spare Parts of
Tractors

With Special Reference to Escorts

(Submitted in Fulfillment for the Award of Master

Degree in Business Administration)

Under the guidance of: - Submitted by:-

Ms. Rupali Madan Manish Sharma

MBA Faculty M.B.A. 05/56

N.C. COLLEGE OF ENGG. ISRANA (PANIPAT)

(Kurukshetra University, Kurukshetra)

1
 ACKNOWLEDGEMENT

I would like to express my sincere thanks to my project guide Ms Rupali

Madan, Lecturer - MBA Dept. NCCE, Israna for her guidance. I would also
like to thank Ms. Puja Walia, HoD MBA Dept., NCCE, Israna for providing me
an opportunity to undertake the research project, Ms. Sarika Ahluwalia,
Lecturer, NCCE for her support while conducting this research project.
Working under her guidance was a learning experience. Lastly I wish to
express my heartiest gratitude to Prof. S.K Narang, who guided me for this
research.

Manish Sharma

M.B.A \05\56

2
 DECLARATION

I am, MANISH SHARMA Roll No:MBA/05/56, Class: MBA 4 th Sem from

N.C.COLLEGE Kurukshetra University, K.U. here by declare that the project
entitled " CUSTOMER BUYING BEHAVIOR REGARDING SPARE-PARTS OF
TRACTORS " is an original work and it has not been submitted to any other
institute for the award of any other degree.

Signature of the candidate

MANISH SHARMA
MBA/05/56

3
 CONTENTS

Page no.
Acknowledgement
Declaration
Executive Summery (I)
Chapter: -
Introduction of Tractors Industry 15
Swot Analysis 16
Escorts Tractor Spare Parts 17
Chapter:-
Theoretical background 28
Rural Marketing Strategy of Escorts 32
Costumer Buying Behavior 38
Chapter:-
Research Methodology 41
Objective of the study 44
Chapter:-
Analysis & Interpretation 48
Chapter:-
Conclusion 59
Limitation 61
Finding 62
Suggestion 66
Bibliography 67
Annexure 68

4
5
 Executive Summary

The research project is based upon the buying behavior regarding spare-parts of
tractors. The research studies are of great help in enhancing the knowledge of a
person. Practical knowledge is a suffix to theoretical knowledge. Then took the
data from the customers who have tractor. India is the second manufacturer of
tractors in world.
There are many manufacturers in our country of tractors spare-parts, like tractor
and farming equipment ltd. (Escorts). A survey has been conducted to find out
customers behavior regarding the purchase of spare-parts of tractors.
In this research project, rural marketing strategy has been used for solving the
problem of rural customers. Research methodology has also been used.
Marketing research projects are either exploratory or conclusive in nature
depending on the objectives. In this project has conducted a survey about
customers behavior regarding the spare-parts of tractors.
The survey has two specific Areas of Haryana State (Panipat &Sonipat). The
finding survey
Has mainly customer buying behavior about price, demand, dealers behavior
etc.

6
 India is the second manufacturer of tractors in world.

MAHINDRA & MAHINDRA is the market leader with highest market share.

TAFE ESCORTS, MAHINDRA&MAHINDRA, SONALIKA are the major

players of the tractor industry.

ESCORTS are the major competitor of M&M.

Maintenance cost of ESCORTS tractor is normal.

In the research it was found that customers are satisfied with the Spare-
Parts of ESCORTS.

In the research it was found that relatives and peer group play a major role
in the buying decision of the customer.

7
Chapter - 1

8
 Overview of tractor industry

India is the second largest manufacturer of tractors in the world. The Indian
tractor industry closed FY05 on a very positive note with 250,000 units
registering a growth of over 30% over previous year. The governments focus on
the agricultural economy with increased rural Lending ensuring availability of
cheap finance led to the growth. Exports stood at 27,700units in FY05.

Tractor industry is categorized on the basis of power delivered by the engine

Horse Power (hp). Indian market is dominated by 30-40 hp tractors primarily
used in southern and western regions due to hard soil conditions. It is followed by
range of 21-30 hp, which finds its market in soft conditions and well irrigated
northern states.

The tractors industry comprises 14 players, including three MNCs and is led by
MAHINDRA&MAHINDRA Ltd, Tractors & Farm Equipment Ltd and Punjab
tractors Ltd.
Riding on the back of normal monsoons and strong rural credit growth, during
April-November05, overall tractor sales has grown by about 13% over the
corresponding period last year, to 186,000 units.
Backed by Governments initiative on rural roads and better connectivity with
major town and cities, increase in area under irrigation, improved agricultural
performance and factors like increment in minimum support price coupled with
more emphasis on agricultural financing (total outlay for agricultural financing,
which was Rs 108,500 crore in FY05, has been increased by 30% FY06) will

9
keep up the momentum and industry is likely to achieve 10% growth in the
current financial year.

Exports have also registered growth of around 60% during the first eight months
of FY06 to 19, 300 units as compared to 12,200 units in the same period last
year. Exports are expected to be mainly driven by multinational tractor
manufacturers who have made India an export hub for outsourcing of aggregates
and tractors.

Hence, the growth in exports will depend on the level of outsourcing by

companies like L&T John Deere and New Holland Tractors and some domestic
manufacturers like Escorts and Mahindra& Mahindra, who have adopted
aggressive strategy for overseas markets.

Major players of Tractors

TAFE

10
Tractor and Farm Equipment Limited (TAFE),is a unit company of the
Amalgamations Group, one of Indias largest Light Engineering Groups with
diverse interests in Diesel Engines, Automobiles components, Tractors and
related farm machinery, Lubricants, Panel instruments, Hydraulic pumps,
Engineering Tools, Storage Batteries, Paints, Engineering Plastics, Automobiles
franchises and Printing apart from interests in Agribusiness, book selling and
publishing.
The groups leadership technology, built on foreign know how has been nurtured
through indigenous efforts.TAFE was established in 1961 to manufacture and
market a range of Massey Ferguson tractor and related farm equipment in India.
One of the largest tractor manufacturers in India, TAFEs vision is to be the first
choice of customers in India and to also move towards a growing presence in the
international markers. TAFE has collaboration with AGCO Corporation,
headquartered in Duluth, Georgia which is one of the largest manufacturers,
designers and disbutors of agricultural equipment in the largest world. Its
products are sold in more than 140 countries.

MAHINDRA & MAHINDRA

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FARM EQUIPMENT SECTOR
One of the progressive and dynamic divisions of Mahindra & Mahindra Ltd., is
the Farm Equipment Sector, which was started way back in 1963. The late
1960's witnessed the beginning of "The Green Revolution" in India. Mahindra &
Mahindra took the lead and responded with launching their new
"INTERNATIONAL" range of modern high performance tractors.
In technical and financial collaboration with International Harvester Co. Ltd., UK,
M&M and Voltas set up International Tractor Co. of India Ltd. in 1963. In 1978,
International Tractor Co. of India Ltd. merged with M&M to be re-christened as
Mahindra & Mahindra - Tractor Division, which is renamed as Mahindra &
Mahindra - Farm Equipment Sector after the restructuring in 1994. Farm
Equipment Sector is involved in manufacturing of wide range of tractors & farm
implements to suit the varied needs of Indian as well as overseas farmers.
The Farm Equipment Sector has manufacturing facilities at Kandivli and Nagpur
with the capacity to produce 85,000 tractors per annum. It consists of modern
machine shops, assembly lines and engine manufacturing facilities.
The manufacturing facility at Kandivli is the world's single largest unit of
manufacturing tractors under one roof.
The Kandivli plant of Farm Equipment Sector possesses the prestigious
international quality certification ISO-9001, since February 1996.
The plant at Nagpur produces hydraulics units and a wide array of agricultural
implements to suit every soil type and farm operation.
In September 1996, production of tractors has started at Nagpur plant and has
reached the operational level of 2,000 tractors per month within a period of two
year.

12
The Nagpur plant has received coveted QS-9000 award in July 1999. Mahindra
& Mahindra Ltd. currently is the market leader in the Indian tractor industry and
the fourth largest in the world in terms of units sold. It has been the market leader
for last 16 years consecutively in a highly competitive Indian market.

Farm Equipment Sector has continuously increased its market share from 5.2 %
in F-1977 to 27.2% in F-1999. Today, Mahindra & Mahindra carries the goodwill
and the trust of over six lakh farmers. M&M has the widest range of tractors
amongst Indian companies.
Different tractor models cover diversified market segments from 25 HP to 75 HP
tractors. Mahindra tractor has come to be recognized as a powerful symbol of
productivity and Unparalleled performance. Mahindra tractors, therefore, is the
No. 1 - at the help of the Indian Tractor Industry.
A focused approach to improve dealer performance and Channel Management
process has been taken to progress towards our vision of being the largest
tractor manufacturer in terms of volumes by year 2005.

SONALIKA

13
Sonalika Group is contributing to green revolution in India Since 1969. Initially it
started with Farm Equipments and Machinery. Brand name of the group products
is "SONALIKA". Market share in Farm Equipments is 80 % in India. Group
turnover is 220 Million USD (INR 1000 Crores). Sonalika Group is one of the top
five tractor manufacturers in India.
Apart from tractors its product line includes multi utility vehicles, three wheelers,
engines, Hydraulic Systems , Casting , Forging , Brake System , Automotive
components manufacturing and various farm equipments and implements.
Sonalika group since the inception has tried to understand customers need to be
able to facilitate them with its value for money products.

The company has a state of art manufacturing facilities, spread in acres, located
in the pollution free suburbs of Punjab and Himachal Pradesh.

14
Sonalika is also an environmentally responsible corporate citizen and has
developed in-house, the vehicle engines that confirm to Bharat II Norms.
It is now in the process of developing the Bharat III engines for its advanced
products. No wonder Sonalika products have created a niche for themselves not
only in India but also in foreign markets including France, Zimbabwe and many of
theSouth-Asiancountries.

SWOT ANALYSIS

STRENGTH-

15
Escorts have:

1. Good infrastructure
2. Good skilled manpower
3. 2-Assembly plants in aboard
4. Trust facility

Weakness-

Escorts have:

1. Old machinery
2. Old techniques

Opportunity-

Escorts have:

1. 2-Assembly plants abroad There is tremendous opportunity in Global

Market.

Threat-
Escorts has to keep itself updated with the Market and Mahindra its competitors
In order to regain its position of a Market Leader.

ESCORTS TRACTOR SPARE PARTS

16
The Escorts manufacturing of different types of Tractor Parts. . The Escorts has
very reasonable prices for our products. Escorts give the assurance of delivering
excellent quality product to the customer. The Escorts commitments to helping
our customers get the tractor spare- parts and products they need at fair and
reasonable prices to, Escorts are committed to providing high quality parts at
most reasonable prices.
It looks to achieve this by ensuring all products meet its customers high
standards.
They are committed to helping their customers to get the parts and
products they need at fair and reasonable prices.

Definition of Spare-Parts

In Supply usage, any parts component or Sub-Assembly kept in reserve for

17
 Maintaining & repair of major items of equipment.

Crown & Pinion Gears

Diesel Engines

Gears & Shafts

Utility Hook

18
Lower Link Mounting Pin

Sear Axles

Gear Shifting Level

19
ESCORT 335

20
 E

SPECIFICATIONS ESCORT 335 JOSH

ENGINE
2 Cylinder 4 stroke direct injection (D.I.) Water
Type
cooled, diesel engine
Bore x Stroke (mm) 102 X 120
Rated engine power 35 H.P. (P.S.)

TRANSMISSION
Clutch type Dry, single plate 250 mm dia
Type of gear box Mechanical, constant and sliding mesh gears
No. of speeds 6 Forward and 2 Reverse
Road Speed (Km/Hr) At 2200 engine R.P.M.
Minimum speed 2
Maximum speed 26.9
Low reverse 2.5
High reverse 10.2

BRAKES
Type Mutilate dry disc

HYDRAULICS
Type Automatic draft and depth control (ADDC)
Lifting capacity 1000 keg. at horizontal position

STANDARD SIZE AND WEIGHT

21
FARMTRAC

50-60 HP

22
SPECIFICATIONS FT 60DX

Performance Data

Maximum Torque 20.6 Kgm at 1200 rpm

Engine

Type AVL, 4 Stroke, Direct Injection (DI), Water-Cooled, Diesel

engine

No. of Cylinders 3

Bore x stroke (mm) 111.76 x 106.68

Displacement (cc) 3147

Air Cleaner Oil Bath, Centrifugal type pre-air cleaner

Transmission

Clutch Type 280 mm dia, dry single plate (Dual Clutch Optional)

Type of Gear Box Mechanical, constant mesh gears

No. of speeds 8 Forward and 2 Reverse

Road Speeds (Km/Hr) At 2000 engine rpm

(with rear tyre size 13.6 x 28)

Power Take Off

23
Type Reverse PTO

No. & Size Splines 6 splines, 36 m dia

PTO Speed 540 rpm at 1800 engine rpm

POWERTRAC

24
 40-46 HP Category

SPECIFICATIONS PT-445XL
UNIT PT-445XL
GENERAL DIMENSIONS
Height to top of Exhaust mm 2170
Ground Clearance mm 410
Rear Wheel Track (min) mm 1365
Rear Wheel Track (max) mm 1938
Overall Length mm 3500
Overall Width at Std Rear Wheel mm 1756
Wheel Base mm 2180
Turning Radius without brakes mm 3400
Turning Radius with brakes mm 3100
UNIT PT-445XL
GENERAL
DIMENSIONS
Height to top of
mm 2170
Exhaust
Ground Clearance mm 410
Rear Wheel Track
mm 1365
(min)
Rear Wheel Track
mm 1938
(max)

25
 The best way to predict the future is to create it

The Escorts Group, with Escorts Limited as its flagship company, is among
India's leading corporations operating in the diverse fields of agro machinery,

26
telecommunications, healthcare, construction & material handling equipment,
automotive & railway ancillaries, Information technology and financial services.
The Group has 15 modern manufacturing facilities & an extensive marketing
network spread across the country.
The genesis of Escorts goes back to 1944 when two brothers, Mr. H. P. Nanda
and Mr. Yudi Nanda, launched a small agency house, Escorts Agents Ltd., in
Lahore. Over the years, Escorts has surged ahead and evolved into one of
India's largest conglomerates.
On assuming the Chairmanship of the Group, in April 1994, Mr. Rajan Nanda,
undertook a major restructuring programmer to give sharper focus to the
businesses.
This involved building alliances with global players and improving market
capitalization, which resulted in each business becoming an independent entity
with defined partnerships, technology, customers and business economics.
The recent past also witnessed a major shift in Escorts' business focus when it
broke away from its traditional identity of being a purely engineering company
and made its forays into the service Sectors of cellular telephony and healthcare
delivery.
The Group has since re-evaluated its focus with thrust on areas of high growth,
namely, agro machinery, telecom and healthcare. As Escorts marches forward, it
does so with a clear vision, renewed commitment and the ability to perform. The
ultimate objective being to create value for its shareholders.

Chapter-2

Theoretical Background of Project

27
ESCORTS LIMITED is among the pioneers of farm mechanization in the country
with its 19 manufacturing plants spread over 6 locations, 24000 employees and a
large network of dealers and distributors. ESCORT LTD. Today rank among the
top engineering organizations in the country.
ESCORTS LTD. Was incorporated on October 17, 1944 at LAHORE (now in
Pakistan) by MR.YUDI NANDA and MR.H.P. NANDA. . After the partition of the
country in 1947, the company shifted to and resumed its operations in NEW
DELHI. It was converted into a public limited company on December 21, 1959.
Till 1959, the company principal activities were trading and respecting several
leading overseas manufacturing for the sale of their product in INDIA. The
company progressively entered the field of manufacturing by establishing a
series of manufacturing plants. The ESCORTS group today headed by MR.
RAJAN NANDA, ranks among the countrys leading multi products industrial
conglomerates having collaborations with several global majors.
It has a strong presence in the core area of AGRI MACHINERY,
CONSTRUCTIONS, MATERIAL HANDLING EQUIPMENTS, AUTO AND
RAILWAY ANCILLARIES, and TELECOMMUNICATIONS AND FINANCE.
Now with the countrys most modern tractor manufacturing plants and turnover
exceeding $500 MIL, ESCORTS rank among the top conglomerates in the
country.
The group manufacturers equipment for the core sectors of Agriculture,
Transportation and Construction and has achieved market leadership in each of
the product categories. Our group has earned the trust over the six decades of
our existence.

The Agriculture Machinery Group commenced its manufacturing operations in

1964 in collaboration with URSUS (Poland). Subsequent collaboration with
FORD, UK (1971-1996) and Class, Germany placed us among the leading

28
manufacturers of Agriculture Tractors. With a population of over 1 MIL and
production capacity unto 72,000 tractors per annum, Escorts Tractors are among
the largest selling tractors in India where every third tractor is an Escorts brand.
ESCORT LTD. Was among the first companies to set up tractor manufacturing in
INDIA. It had commended the ESCORTS range of tractors in 1964.ESCORTS
LTD then set up a 2- manufacturing unit in 1969-70 to manufacture FORD range
of tractor in INDIA. So far ESCORTS LTD. has sold over 7, 00,000 tractors and
every 4 tractor on the INDIAN road is an ESCORT product.
ESCORT LTD. today has in the stable three very popular brands by the brand
name of ESCORTS, FARMTRAC and POWERTRAC cater to the value added
higher horse power (H.P.) segment of the industry and enjoys a unique position
in industry. ESCORTS brand have a representation in all the H.P. segments.
ESCORTS LTD is ranked number 4th in industry in with 18% share of the market.
The industry is showing a perceptible shifts towards a higher H.P. segment where
ESCORTS has traditionally enjoyed and over whelming presence with a nearly
50% share of market. ESCORTS are now in the process of consolidating its
presence in this segment.
An ESCORT has recently signed a M.O.U. with M/S CARARRO of ITALY for
making transmission, axles and clutches. The business of ESCORTS LTD. is a
complex but the vision is simple. Giving the best to customer, being respected by
the contemporaries and reaching for the performance par excellence. ESCORTS
LTD. firmly believes that its best is yet to come and with that vision it plans to
take on the future. The Escorts manufacturing of different types of Tractor Parts.

The Escorts has very reasonable prices for our products. Escorts give the
assurance of delivering excellent quality product to the customer. The Escorts
commitments to helping our customers get the tractor spare- parts and products
they need at fair and reasonable prices to, Escorts are committed to providing
high quality parts at most reasonable prices.

29
 RURAL MARKETING STRATEGYOF ESCORTS

Rural markets, as part of any economy, have untapped potential. There are
several difficulties confronting the Effort to fully explore rural markets. The

30
concept of rural markets in India is still in evolving shape, and the sector poses a
variety of challenges. Distribution costs and non availability of retail outlets are
major problems faced by the marketers.
The success of a brand in the Indian rural market is as unpredictable as rain.
Many brands, which should have been successful, have failed miserably. This is
because, most firms try to extend marketing plans that they use in urban areas to
the rural markets. The unique consumption patterns, tastes, and needs of the
rural consumers should be analyzed at the product planning stage so that they
match the needs of the rural people.
Therefore, marketers need to understand the social dynamics and attitude
variations within each village though nationally it follows a consistent pattern.
The main problems in rural marketing are:-

Understanding the rural consumer

Poor infrastructure
Physical Distribution
Channel Management
Promotion and Marketing Communication

Dynamics of rural markets differ from other market types, and similarly rural
marketing strategies are also significantly different from the marketing strategies
aimed at an urban or industrial consumer.

Strategies to be followed:-

Marketing Strategy:-

31
Marketers need to understand the psyche of the rural consumers and then act
accordingly. Rural marketing involves more intensive personal selling efforts
compared to urban marketing.
Firms should refrain from designing goods for the urban markets and
subsequently pushing them in the rural areas. To effectively tap the rural market
a brand must associate it with the same things the rural folks do.
This can be done by utilizing the various rural folk media to reach them in their
own language and in large numbers so that the brand can be associated with the
myriad rituals, celebrations, festivals, "melas" and other activities where they

assemble.

Distribution Strategy: -

One of the ways could be using company delivery vans which can serve two
purposes- it can take the products to the customers in every nook and corner
of the market and it also enables the firm to establish direct contact with
them and thereby facilitate sales promotion.
However, only the bigwigs can adopt this channel. The companies with
relatively fewer resources can go in for syndicated distribution where a tie
-up between non-competitive marketers can be established to facilitate
Distribution.
Annual melas" organized are quite popular and provide a very good
platform for distribution because people visit them to make several
purchases. According to the India n Market Research Bureau, around 8000
such melas are held in rural India every year.

32
Rural markets have the practice of fixing specific days in a week as Market
Days (often called "Haats') when exchange of goods and services are carried
out.
This is another r potential low cost distribution channel available to the
marketers. Also, every region consisting of several villages is generally
served by one satellite town (termed as "Mandis" or Agro-markets) where
people prefer to go to buy their durable commodities. If marketing managers
use these feeder towns they will easily be able to cover a large section of the
rural population.

Promotional Strategy: -

Firms must be very careful in choosing the vehicle to be used for

communication. Only 16% of the rural population has access to a vernacular
newspaper. So, the audio visuals must be planned to convey a right message
to the rural folk.
The rich, traditional media forms like folk dances, puppet shows, etc with
which the rural consumers are familiar and comfortable, can be used for
high impact product campaigns.

Sales Strategy :-

Sale to result in post tax cash inflow of about Rs. 235 cores Escorts completes
divestment programmed in non-core areas.

33
Escorts Limited has announced the disinvestment of its equity in Escorts JCB
Limited and Escorts Claas Limited in favor of its joint venture partners, J C Bam
ford (UK) and Claas (Germany) respectively.
27 Jul 2002: The Company is also in the process of divesting its 50%
shareholding in Escorts Mahle Limited to Goetz India Limited (GIL). GIL is a joint
venture of Escorts with Federal Mogul of USA in which both partners have
27.21% and 25.47% stake respectively. The post tax cash inflow to Escorts as a
result of sale of its equity in the three companies is expected to be in the region
of Rs. 235 cores and shall be booked in this financial year.
The Board of Directors of the Escorts Ltd. in its meeting in held in Faridabad on
July 12, 2002. And approved these disinvestments, which are subject to the
requisite statutory approvals.
Making this announcement, Mr. Rajan Nanda, Chairman & Managing Director,
Escorts Limited said, "The divestment is in keeping with our focus on the core
businesses of agro-machinery, healthcare and telecom and our decision to exit
non-core businesses where the value addition by us as management in the
context of international competition cannot result in sustainable growth.
Whilst the company s investment responsibilities have continued in line with the
principles of growth of the Escorts Group, the funds inflows from disinvestments
had been delayed. The resultant liquidity tightness was further compounded by
the maturity of large old loans as well as a wide spread business recession.
The Company has since put the disinvestment efforts on a fast track." The Board
also approved the company s results for the financial year ended 31st March
2002. The company earned a post-tax profit of Rs. 8.13 cores (Rs. 107.39 cores,
2000-01) on sales and other income of Rs. 1177.30 cores (Rs. 1408.83 cores,
2000-01).
During the year, the company completed its sale of balance equity in Escorts
Yamaha Ltd. to joint venture partners Yamaha and the resultant cash profit of the
company for the year was about Rs.69 cores.
The Board also recommended a dividend of 10%, maintaining the company s
record of uninterrupted dividend. Commenting on the company s performance

34
during fiscal 2001-02, Mr. Rajan Nanda, said, "The last year was a trying time for
Industry, especially the agro-machinery industry which saw volumes in tractors
sales drop by nearly 16% over the pervious year.
However, despite the severely depressed market conditions and an extended
workers strike of about seventy days, the company was able to maintain its
market share at 19.4%." "The company took a deliberate decision to reduce the
channel inventory in the current year and has been successful in doing so in the
first quarter itself. As a result, it has been able to clear nearly 6000 tractors from
channel stocks. This will translate into better cash flows from the second quarter
and release working capital to that extent. Two new tractor models - Champion
and Josh - launched recently, have been well received.
Four more models will be introduced in the domestic and overseas markets in
the coming months. While we expect the tractor market to remain relatively flat
during the current year, we are confident of strengthening our market share with
these initiatives", Mr. Nanda added.
Elaborating on the performance of the company in the other core businesses of
healthcare and telecom, Mr. Nanda said, "In the telecom area, it is gratifying to
note the continuing strengthening of our Escorted brand.
We have already crossed the 5, 00,000 subscriber base landmark last fiscal and
continue to be market leaders in all the circles that we operate in. Roll-out of
mobile phone services in the four new circles of Punjab, U.P. (East), Rajasthan
and Himachal Pradesh is slated for later this fiscal.
As regards healthcare, the expansion for our hospitals in Delhi and Faridabad
and the company s investments in super specialty hospitals in Amritsar, Kanpur
and other cities in North India will result in doubling of our capacity to nearly 700
beds during 2002-03, with continued strong earnings."

EXPORTS Strategy :

Our target for this year is to export 15% of the volumes of our total production
volumes.

35
Our export in, Malaysia, Australia, Tunisia, Chile, Turkey, Sri Lanka, Kenya,
Bangladesh, South Africa and many other countries.
To consolidate its presence in the overseas markets, the company has ventures
in the USA and Europe (Poland).
It has recently acquired a majority stake in Long agribusiness LLC, a tractor
distributing company in the USA and Poll-Mot Escorts Polka Z.O.O., Poland.
Besides the USA and Poland, Escorts has strong presence in Turkey, Australia,
Bangladesh, Sri Lanka, Nepal, Kenya, Tanzania, South Africa etc. through its
dealers network in these countries.
An escort has very ambitious plans to expand the dealers network in other
potential countries in the coming year. By the end of the next year, the Company
hopes to be the largest exporter of tractors in the Indian Tractor Industry.
Besides tractors, the RR6 riding type paddy transplanted, in association with
Yammer of Japan, is the first offering of Escorts to the rice planters of India.
Products are marketed mainly in USA, Central and Easter Europe through
Poland, Ghana, and Tanzania etc.

Customer Buying Behavior

36
A Customer is an individuals or a set of individuals who have an actual or
potential interest in the purchase or usage of any product, ideas or a service. The
Study of the behavioral aspects of:-

A Customers purchase intention

Purchase decision

Product usage &

Product disposition is called customer behavior

Thus Customer behavior is the study of the processes involved when customer
has
Select, puchase, use or dispose off products to satisfy their needs or wants.
Earlier the emphasis was on buying behavior. This means an attempts was
made to study the behaviors of a customer at the time of purchase of:-

Right Product
Right Price
Right Place
Right Promotion etc.

Customer Buying Behavior Process

37
 There are three types of process:-

Before Purchasing

o How a customer does decide which equipment to purchase?

o From which sources does he collects information about a product

And its alternatives Brands?

During Purchasing

How a customer does acquire a producer?

What all situational factors affect his choice?

What does the purchase say about the customer?

Post Purchase Behavior

38
 Is the customer satisfied with the equipment?

Will he buy/ recommend the equipment again?

How does he use equipment?

How does he dispose off the equipment?

What are the environment consequences of

disposing?

39
40
 Chapter 3

Research Methodology
The design of research project is the plan that ties the data collected to questions
or hypothesis posed, thereby linking the data to the conclusions to be drawn.

Marketing research projects are either exploratory or conclusive in nature

depending on the objectives.

Data collection techniques have been applied on the users of spare parts of
tractors.

Random sampling
Questionnaire
Direct interview

Sources of data collection-

Existing Customers
Prospective Customers

Analysis of data-

Customers perception in terms of:

quality
price
low sale reasons
dealer behavior
problems faced

41
Data presentation-

pie chart
tables

Sample Size-

Sample size is 100.

Sample Design-

Area of the project Haryana State

Area of the survey- 2 cities of Haryana State

(1) Panipat
(2) Sonipat

Sample selection-

Questionnaire has been filled by the respondents in both

(Panipat & Sonipat) City.
Research Design-
Exploratory

42
43
 Objectives of the study

The main objectives of this research work are:

To analyze the buying behavior of customer of spare parts of tractors.

To find out the customers perception towards the cost, value, quality and
brand of spare parts.

To find out the customers satisfaction level.

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 SURVEY OF TWO AREAS
The project is based upon the buying behavior regarding spare-parts
of tractors. Then took the data from the customers who have tractor.
There are many manufacturers in our country of tractors spare-parts,
like tractor and farming equipment ltd. (Escorts). The conducted a
survey about customers behavior regarding the spare-parts of
tractors. The survey has been conducted at two areas Of Haryana
state like (Panipat & Sonipat).
PANIPAT

1 17% says that quality is a major part in buying behavior

2 13% says that customer satisfaction is a major part in buying behavior
3 12% says that cost is a major part in buying behavior
4 11% says that service is a major part in buying behavior
5 10% says that relatives/acquaintances play a major part in buying behavior
6 10% says that dealer & stk. behavior is a major part of buying behavior
7 10% says that availability of spare parts is a major part in buying behavior
8 9% says that local market is a major part in buying behavior
9 8% says the back order is a major part in buying behavior

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 SONIPAT

1 14% says that cost is a major part in buying behavior

2 13% says that service is a major part in buying behavior
3 13% says that availability is a major part in buying behavior
4 11% says that dealer & stk behavior is a major part in buying behavior
5 11% says that quality is a major part in buying behavior
6 10% says that satisfactory is a major part in buying behavior
7 10% says that local mkt is a major part in buying behavior
8 9% says that relatives is a major part in buying behavior
9 9% says that reback order is a major part in buying behavior

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Analysis & Interpretation

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 Q.1 Which Brands Of Tractors do you own?

Tractors Percentage
Escort 30
M &M 26
Sonalika 24
John Deere 20

Interpretation
Majority of the respondents i.e. 30% have Escorts tractors.

Q 2. For what purposes you are using your tractor?

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No. of response Percentage
Agriculture 45
Construction 25
Industry 20
Other 10

Interpretation
Mostly Farmers use of Tractor for purpose of Agriculture.

Q.3 which reference group affects your purchasing decision of a

spare part?

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 Reference group percentage
Friends 24
Relatives 28
Sarpanch 22
Broker 26

Interpretation
Relative and broker help farmers to purchase equipment than any other
reference group.

50
Q.4 what are the main factors affecting purchasing spare-parts
of tractors?

Factors Percentage
Quality 18
Price 22
Working condition 12
Durability 10
Service 12
Dealers behavior 10
Products feature 8
Location 8

Interpretation:
Price is the most important factor that affects the purchase of Spare-Parts of
Tractors followed by quality & service.

Q.5 Are the Spare-Parts of Tractors easily available to you?

No. of response percentage

Yes 63
No 37

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Interpretation:
Most of the respondents have agreed that they can easily find the spare parts of the
tractors.

Q.6 Does the Shop Keeper satisfies your Problems related to

spare parts?

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 No. of response Percentage
Yes 65
No 35

Interpretation
Most of the dealers understand the problems of the customer .The ratio has clearly depict
that the Dealers has satisfied the problems of the farmers.

Q.7 whether the dealers provides Right Product, Right Price,

Right Place, and Right Promotion to their customers?

No. of response Percentage

Yes 58
42
No
53
Interpretation
Most of dealers provides right product, right price, right place, and right promotion to
their customer. The ratio has defined Dealers use promotion strategies for their
customers.

Q8. Whether the Dealers provide guarantees\warrantees of

spare-parts of Tractor to their customers?

No. of response Percentage

Yes 57
No 43
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Interpretation
Most of Dealers provides guarantees\warrantees of spare-parts of Tractor their
customers.

Q.9 which reference group affects your purchasing decision of a

spare part?

Reference group percentage

Friends 24
Relatives 28
Sarpanch 55
22
Broker 26
Interpretation
Relative and broker help farmers to purchase equipment than any other
reference group.

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 Chapter-5

CONCLUSION

There are many companies operating in the market. ESCORT Ltd. Is

the famous name in tractor industries? ESCORT Ltd. Is the market
leader. It can clearly be said on the basis of the study conducted so

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far that Satisfaction plays a major role in promoting among the
customers? After the completion of market survey that would like to
say that the tractor industry is a large industry.
70% peoples are depended upon agriculture in our country. So tractor
plays a very crucial role in the activity of agriculture.
The research project is based upon the buying behavior regarding
spare-parts of tractors. The research studies are of great help in
enhancing the knowledge of a person. Practical knowledge is a suffix
to theoretical knowledge. India is the second manufacturer of tractors
in world. There are many manufacturers in our country of tractors
spare-parts, like tractor and farming equipment ltd. (Escorts & M&M).
The conducted a survey about customers behavior regarding the
spare-parts of tractors. In this research project, rural marketing
strategy has been used for solving the problem of rural customers
and provide information about Tractor like Price, horse power, quality
and spare-parts also.
Research methodology has also been used. Marketing research
projects are either exploratory or conclusive in nature depending on
the objectives. In this project has conducted a survey about
customers behavior regarding the spare-parts of tractors.
The survey has two specific Areas of Haryana State. The finding
survey has mainly customer buying behavior about price, demand,
dealers behavior etc. The availability is also play a very important
role in the purchasing spare-parts of tractor. The mainly reason that
Satisfaction has buying behavior of customer of original (Escorts)
spare parts of tractors. Escorts are committed to providing high
quality parts at most reasonable prices.

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 Limitations

This project is very time consuming and the tenure of the project is very
less.

Respondents are not interested in filling the questionnaire.

Questionnaires are not filled properly by the respondents.

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 Respondents can be biased in filling the questionnaires.

FINDINGS SURVEY OF TWO AREAS

PANIPAT
Price As per 85% customer price of spare parts is
high As per 15% customer price of spare
parts is ok in compression to competitors.

Demand 20% prefer to buy spare parts for local mkt.

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 80% of customers buy original spare parts of
Escorts.

Reason for
Low Sale Service & Delivery is not as per expectation;
High price & discrepancies are very frequent.

Behavior of Behavior of dealers & stockiest is good.

Dealers &Stk.

Purchase 85% purchase from Auto Mkt of PANIPAT.

15%prefer to purchase for Delhi.

For Part failure Water pump, Clutch plate

SONIPAT

Price As per 75% customer price of spare parts is high

As per 25% customer price of spare parts is ok in
compression to competitors.
.

Demand 30% prefer to buy spare parts for local mkt.

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 70% of customers buy original spare parts of
Escorts.

Reason for low sale Dealers behavior is not good.

Behavior Dealers behavior is not good but stockiest

behavior is good

Purchase 75% purchase from local mkt of SONIPAT.

25% purchase for Delhi.

For Part failure Reduction, Water Pump, Break

This study is based on consumer buying behavior.

Panipat
Sonipat

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Over all the analysis for these areas is same however there are deferences on
same points-

Panipat

As per 85% of customers say the price is high, a study of pricing of

parts sold to this area will be done which may lead to price
rationalization.

As the feedback on services & delivery is not good, action will be

taken to improve the same also discrepancies will be tackled.

75% of customers buy original spare parts & 25% prefer to local
spare parts. Action will be taken to minimize the same.

The frequent part failure is reported for water pump & clutch plate.
Same will be taken for improvement.

Sonipat

70% of customers are satisfied with the pricing, hence not

being a major concerned.

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 It has been found customers are not satisfied dealers behavior.
Action will be taken on same & tanning programmed on
Behavior shall be organized.

RECOMMENDATIONS

Company should provide finance facility itself so that customer who is not
able to take agricultural loan can get finance by the company for purchase
the spare parts of tractor.

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 Availability of Spare-Parts should be provided on low price and better
Quality.

Dealers executive should be aware about local language so that they can
easily convince the customer.

Company should launch some beneficial schemes for dealers so that they
take more interest to increase the sale.

Dealers should be making a good relationship to their customers.

BIBLIOGRAPHY

Escortsagri.com

65
 Tafechannel.com

Sonalika.com

Mahindra & Mahindra.com

Tafe.co.in

Annexure
Questionnaire

1) CLASSIFICATION DATA

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a) Name b) Age
c) Income d) Education

2) Which Brand of Tractors do you own?

A) Escorts b) M&M
c) Sonalika d) John Deere

3) For what Are purposes you are using tractor?

a) Agriculture b) Constructor
c) Industry d) Any Others

4) What are the main factors that affect your purchase decision
spare-parts of tractors?

a) Quality
1. Excellent 2. Good
3 .Average 4. Poor

b) Cheaper price
1. Excellent 2. Good
3. Average 4. Poor

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c) Working Condition
1. Excellent 2.Good
3. Average 4.Poor

d) Durability
1. Excellent 2.Good
3. Average 4.Poor

f) Service
1. Excellent 2.Good
3. Average 4.Poor

G) Dealers Behavior
1. Excellent 2.Good
3. Average 4.Poor

H) Products Feature
1. Excellent 2.Good
3. Average 4.Poor

I) Location
1. Excellent 2.Good
3. Average 4.Poor

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5) Are Easy Available Spare-parts of Tractor?
a) Yes
b) No

6) Does Shopper satisfy the Problem of Farmers?

a) Yes
b) No

7) Are Shopper providing Right Product, Right Price, Right Place, and
Right Promotion of their customers?
a) Yes
b) No

8) Does the Shopper has provides guarantees and warrantees of

spare-parts of Tractor?
a) Yes
b) No

9) What reference group used by farmer for purchasing equipment?

a) Friends b) Relatives
c) Sarpanch d) Broker

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