K.J.

Somaiya Institute of Management Studies and Research, Mumbai

PGDM MARKETING, TRIMESTER IV
RURAL & SOCIAL MARKETING

Case Study for Internal Assessments

Mahindra & Mahindra was founded in 1945 as a steel trading company, entered into automotive
manufacturing in 1947 to bring the iconic Willys Jeep onto Indian roads. Over the years, it
diversified into many new businesses in order to meet the needs of the customers, following a
unique business model of creating empowered companies that enjoy the best of entrepreneurial
independence and Group-wide synergies. This principle has led the growth into a US $16.9
billion multinational group with more than 180,000 employees in over 100 countries across the
globe.

Today, the operations span 18 key industries that form the foundation of every modern economy:
aerospace, agribusiness, automotive, components, construction equipment, consulting services,
defense, energy, farm equipment, finance and insurance, industrial equipment, information
technology, leisure and hospitality, logistics, real estate, retail, and two wheelers.

Mahindra & Mahindra Ltd., Farm Equipment Sector (FES), a part of the US $17.8 billion
Mahindra Group is the market leader in India for the past 30 years, FES has helped bring Farm
Tech Prosperity to the Indian farmer with technologically superior affordable solutions.
Mahindra has achieved the distinction of being the largest tractor company in the world with
tractor sales in more than 40 countries across six continents with more than 1000 dealers world-
wide.

In 2007, Farm Equipment Sector, Mahindra & Mahindra Ltd. took over Punjab Tractor Ltd. and
added Swaraj to its brand stable. FES has 8 state-of-the-art tractor manufacturing plants in India
located in Zaheerabad, Mumbai, Nagpur, Rudrapur, Jaipur, Rajkot and Mohali (Swaraj- 2
plants). FES offers services beyond tractors such as agri-mechanization solutions under
Mahindra AppliTrac, Seeds, Crop care solutions and market linkages to high value markets
through Mahindra Subhlabh and energy solutions through Mahindra Powerol.

Mahindra 415 DI is a true 40 HP tractor that has all the features which makes it the perfect kheti
ka boss. A powerful 4 cylinder naturally aspirated engine offering best-in-class power. Best-in-
segment torque and great back-up torque gives it outstanding pulling capability. Its smooth PCM
transmission system, optimum gear speeds, low fuel consumption, oil immersed brakes and 1500
kg lift capacity all come together to offer the best agri tractor @ 40 HP. Go ahead and test drives
the Kheti Ka Boss.

Fall in incomes is making people defer purchases. Devi Das Nago Rao Dhangora, of Kanori
village in Marathwada wants to replace his 10 year old tractor. However, his crop has been badly
hit and he has deferred his plans and he prefers to repay his current loans rather than buy a
tractor. In 2015-2016, the tractor sales had fallen 13.1 per cent. Mr. Rajesh Jejurikar, CEO,
Mahindra farms says while 2013/14 saw 21 per cent growth in tractor sales, 21014/15 was bad.
The tractor sales dropped to drastic 37 per cent due to defecate of rains; he says sentiment plays
an important role it is decided by the prospects of good monsoons, rise in MSPs and so on.

Mangal Singh Pawar, Managing Partner Ratnaprabha Auto Agencies, the dealer for Mahindra
Tractors in close to 1200 villages in and around Aurangabad says sales have decline over 50 per
cent in the past couple of years. Down-Trading is a dangerous phenomenon in Marketing and has
to be plugged in at the earliest because Rural Buying Patterns are different. They only buy what
they need, especially when the going isnt good.

Your group is a part of Mahindra FES and your GM Marketing has asked you to do the falling to
plug in the down-trading, especially for Mahindra 415 DI

Questions :

1. Design a communication strategy for Mahindra 415 DI, for villaages in Maharashtra,
targetting the festive season i.e. Ganesh Chaturathi and Diwali. What Communication
Strategies will be effecitve for Mahindra Tractors to convience customers to purchase the
new tractor ?

2. Do you think Mahindra should drop down the price of this tractor by 20 per cent as a
festive offer with a free 2 years after sales service to boost the sales of tractors.

3. Give any 5 ideas on how Mahindra can leverage their SBU, Mahindra Finance to provide
loans for the purchase of this tractor do you think a viable option ?

4. Do you think opionon leaders will play a significant role in pushing this tractor sales. If so
who do you think can be the KOLs (Key Opinion Leaders)

5. Desgin a distribution model to optimize for cost cutting right from Nashik where the 415
DI model of tractor is manufactured ? Illustrate & Explain

Dr.RAMKI
Faculty in Marketing
SIMSR