Rural Marketing

M&M Tractors vs TAFE Tractors

By: Sambeet Mishra;

Siddharth Setia;

Adivitya Sharma;

Empoli Jain

M&M Tractors

Strategy
Acquisition of majority stake in PTL (2007)
Brand : Swaraj Customer loyalty for being sturdy and relaible
Strong and efficient R&D abilities Benefits: Economies of scale, vendor rationalization and sourcing benefits Swaraj Division after the merger of PTL - Mahindra FES

Product Innovation:
Major plant in Kandivali, Maharashtra: converted in product development plant and The assembly units in Nagpur and satellite units Puddy Special : for the paddy farmers

Two Content Layout with Table

Size
Less than 30 HP Class 1 30 to 40 HP Class 2

Brand
Yuvraj, 265 DI Sarpanch, 265 DI Bhoomiputra Arjun 445 DI, 275 DI TU Sarpanch, 275 DI TU Bhoomiputra, 475 DI Sarpanch, 475 DI Bhoomiputra Arjun 555 DI, Arjun 605 DI, 575 DI Sarpanch, 575 DI Bhoomiputra, 585 DI Sarpanch

More than 40 HP Class 3

Two Content Layout with SmartArt

Deepest distribution network:

680 dealers with widest service network across India

M&M financial service limited : Swaraj division Swatantra Mahotsav: 60th Anniversery of countrys independence

a week long programme that presents the farmers with Zero percent interest on loans Exchange of tractors Labour free service Health check up camps

Two Content Layout with SmartArt

Jai Jawaan Jai Kisaan:
Scheme for Indian Armed Forces

Samridhi Centre:
Educates the farmers about various technological inputs

Provides: Soil and water testing facilities to farmers Producitivity demo farms Agri counselling facilities One stop finance shops Tractors and implements sales and service

Two Content Layout with SmartArt

Mahindra Shubh Labh is a rural subsidiary of the Mahindra Group, which is the largest farming equipment company in the country. Operates in 11 states Leverages the Mahindra brand and its 700000 and the 400 plus dealer network. Extends services to improve farm productivity and establishes market linkages. With 36 outlets, the network is spread over eight states. Mahindra Shubh Labh services have attracted the attention of the International Finance Corporation, the financial arm of the World Bank (27% stake in the company).

Mahindra Krishi Vihar - Renders support through banks to provide loans to farmers with minimum documentation, quick sanctions, and attractive interest rates.

Future strategies
Mahindra Satellite Manufacturing Units
To cover as much as farming belts as possible To meet the local demand according to the customization needs in the area Investments : 0.04 0.06 Billion rupees per unit Plans: To built up 10 such units Present Condition: 1 plant in Jaipur and 2nd in Rudrapur, Uttar Pradesh

TAFE

Overview
TAFE is a US$ 1.6 billion tractor major incorporated in 1960 at Chennai in India, in collaboration with Massey Ferguson (now owned by AGCO corporation, USA). Tafe bought Eicher's tractor, engine, gear businesses for Rs 310 crore in may 2005. TAFE is the 3rd largest tractor manufacturers in the world.

TAFE, first tractor company to be recognized for strong commitment to excel at (Confederation of Indian Industry ) CII -EXIM Bank Award for Excellence.
TAFE's first overseas plant in Turkey went on stream in 2010

TAFEs models
The TAFE brand is known for its application based and innovative range.

TAFEs models are: 30 hp TAFE 2750 KUBER 30 hp TAFE 30 DI HD 30 hp TAFE 30 DI ORCHARD PLUS 44 hp TAFE MAHASAMRAT 60 hp TAFE GAJRAJ G4

Strategies
lambi race ka ghoda o Parts support : 1000 dealers and 2000 sales outlets o Service support o J farm o Product training

Service support
An expert team of professionals ceaselessly coordinates with dealers and authorized service centers in order to ensure zero-breakdown To offer immediate technical support, toll free call centers are established across the nation. To meet emerging needs and improving features of the tractors, TAFE also monitor tractors in the field and thats an edge under our Service Support System. In order to ensure service at customer's door steps, a system of mobile service personnel to reach customers at their site is in place.

J Farm
500 acre farm has built a national and international reputation for adaptive research in various crops such as paddy, vegetable and mango cultivated under marginal rain fed areas It serves as an extension service to farmers advising them on appropriate and cost effective agricultural practices through media releases and through the closed community portal jfarmindia.com which covers about 82 different crops grown in the Indian sub continent

Product training
vision of TAFEs late founder chairman :If you plan for one year, plant rice; If you plan for ten years, plant trees If you plan for a hundred years, educate people Service staff play key role in educating farmers on the farm mechanization and economical use of the tractors to increase the agriculture production. Dealers and company personnel go through a rigorous training programme An online help desk called the Technowledgy Desk provides solutions to any of the territory staff for their technical problems faced in their day to day experience in the field through a panel of experts.

Other initiatives
Celebrates FARMERs day

Adopt a village
Offer free registration along with a tractor insurance cover easy payment schemes available for TAFE customers within their reach any time they wish conducts free service campaigns conduct training sessions for the students studying agriculture
Our relationship with customers goes beyond mere customer satisfaction

Suggestions for TAFE

Improving Regional Presence in Western and Southern India

The large HP segment (>40 HP) is expected to grow at a much faster pace as compared to the other segments
Optimizing Dealer Networks: A larger dealer-network than necessary underlines the need for TAFE to optimize its dealership network and reallocate dealers as per customer density Create Buzz marketing

Connect Emotionally with the customer(Vijayi Bhavaha: SUSHIL KUMAR)

Do a lot more of campaigns like M&M