Mahindra and

Mahindra Case
Marketing Low priced Mini-tractors.

Susmita Gaikwad
2020PGP179
Consumer Behavior Mid-term
 MAHINDRA AND MAHINDRA CASE

1. What are the typical benefits of tractors in rural India?

Ans 1)

With more than 75% of the population engaged in the agriculture; India has made itself a
place as the largest tractor manufacturer in the world. Tractors can be used for both
agricultural and commercial operations. Tractor have varied uses and because of lack of
norms it is used in various commercial activities also:

1. Agriculture:
Tractors are majorly used in agriculture sector with a sale of 60-65% of tractors used in
agricultural activities in the rural areas. Few of them is listed down below:
 Ploughing
 Crop Harvesting
 Watering
 Pumping for irrigation
 Seed Plantation

2. Commercial:
Tractors have various commercial uses also and 40-35%sales of tractors are for commercial
purposes only due to their durable and convenient usage.
 Transporting Crops: It is used to transport the crops from farms to warehouses to
agricultural markets.
 Transporting luggage: In places like airports tractors are used for transporting
luggage from airport to hotels, etc
 Transporting people: In rural India, tractor is suitable for transportation for the local
due to uneven rural road and smaller paths to cover the stretch.
 Infrastructural activities: As tractor is a very rugged and durable machinery it can be
used due to the mileage, field performance and maintenance costs

2. What is the traditional stereotype of a tractor owner? Contrast this

stereotype with a potential of the Yuvraj 215 NXT. Compare the social factors
affecting tractor purchases in the two segments.

Ans 2)
The traditional stereotype of an Indian Farmer is that the tractors are
- expensive to buy, purchase and run
- might not understand the usability.

Only the farmers who are affluent can actually afford buying a tractor. The market of
tractors is segmented on the basis of the Horsepower of the engine, and 30-50 HP tractors
dominated the market, and affluent farmers bought these tractors. But since more than 70%
of the farmers have land less than 2 hectare, the tractors below the 30HP range made more
sense, but due to lack of credit availability, the lack of awareness and the stigma that a

1
 MAHINDRA AND MAHINDRA CASE

tractor is meant only for the affluent farmer stopped them from buying a tractor. The Yuvraj
215 NXT would suit this segment perfectly.

Other social factors affecting tractor purchases:

- The large farmers tend to purchase tractors of engine power above 50 horsepower.
- These farmers usually owned titles like Sarpanch etc. and were comparatively richer
than the other farmers as they owned other non-agricultural businesses.
- This segment purchased tractors and agricultural assistance equipment to fulfil a
variety of functions in their business.
- The small farmers are the majority segment and look at owning a tractor as an
increase in social status. T
- The buying patterns of smaller farmers were influenced by the higher and more
successful people of the market such as doctors, established farmers, teachers et
- The villagers were also influenced by the information received from dealers,
distributors and shopkeepers.

3. Map the stages in the consumer decision-making process for a potential

customer of the Yuvraj 215 NXT.

Ans 3)

- Need Recognition: Firstly, the farmer will have to recognize the need of why he
wants a tractor for carrying out his various agricultural activities. Some of the
checkpoints could be: Higher farm productivity, ability to grow additional crops,
dependency on monsoon for irrigation, and low maintenance costs as compares to
bullocks.
- Decision spectrum: Then the decision has to be taken in order to purchase the
tractor. The farmer would look in the newspaper for getting information’s. Also,
discussions about recent trends in agriculture, ie, word of mouth. It will have
financial implications on a formers life hence we will consider the advices of multiple
individuals like successful farmers, teachers, and other village members.
- Pre-purchase information search: The farmer would then try to look for the details of
the tractor, like the company, features of the tractor like size, strength, capacity and
durability.
- Evaluation of alternatives: The farmer would not just go with the first tractor that he
comes across; he will compare various alternatives available in the market and select
a tractor according to his requirements and his financial ability
- Purchase: The farmer would then purchase the selected tractor.
- Post-purchase behaviour: Farmer would use the tractor and recommend it to others
who want to buy one.

4. Based on the information given in the case which actors could play
important roles within a decision-making unit for a tractor purchase? How
could M&M use these actors to promote its sales?

2
 MAHINDRA AND MAHINDRA CASE

Ans 4)

From the case we can say that, there are certain factors that plays a very important rle in
decision making of tractor purchase:

1) Season: Without the conducive seasonal condition, there is no reason for a farmer to
invest in another machinery which would not be in use for next 2-3 months.
2) Irrigation intensity: This plays an important role in harvesting depending on the
geographical conditions of the same.
3) Size of the farm: This is another very important factor which needs to be considered
before buying a tractor because, the use of tractor on the field varies according to
the size of the farms The large size of the farms will induce the purchase of tractor
whereas a smaller size will discourage the purchase of the tractor
4) Loan options: Major drawback here being that most of the villages in our country
lack the availability of financial services, interest rates. So, availability of credit plays
a really important role in the decision making
5) Cropping patterns: Different cropping patters are followed in India where some
farmers just believe in producing one crop whereas many of them practice multiple
cropping
6) Nature of the soil: The nature of the soil helps one to know which tractor will be
suitable for the field, for instance allow power tractor will not be efficient for a hard
soil and vice versa.

The parameters for choosing a particular brand would be

• Mileage
• Field Performance
• Repair and Maintenance Costs
• Attachment for using tractors for different purposes
• Service networks
• Spare parts availability
• Resale Value

Mahindra and Mahindra can analyse the buying behaviour of the farmers to promote their
sales in few different ways:

- Rural consumer would refer a brand they can trust in terms of durability and ease of
use. Also, including that M&M take advantage of the fact that tractors are here to
help farmers reduce time and labour by inculcating the brand value of the same.
- Resale value will be higher of the branded product.
- Financial services provided while purchasing the product
- Awareness can be done by either sponsoring the village cricket matches, beauty
contest, fairs and melas, etc
- Having a local brand ambassador for to promote the brand for local appeal
- informing locals of how this product appeals to them as it is built for multiple
applications, including rotation, cultivation, sowing, threshing, spraying, and haulage
- Creating or seeding demand for the product/service by education and awareness

3
 MAHINDRA AND MAHINDRA CASE

To promote the product in the rural segment, local language is of utmost importance while
communicating it is important to commute in the local. Language can create connectivity
and trust.

Networking in rural India is deeply rooted. Therefore, it’s important to create a good brand
value in the minds of the consumers,

Advertisement through media and posters are really fascinating in rural villages. Mahindra
can focus on the market strategies that can use the most loved local advertising mediums
such as
- TV or radios
- Print media
- Wall painting
- Mobile announcement vans

5. Suggest a promotional strategy for Yuvraj tractors, considering the large size
of, and low penetration of tractors in this segment.

Ans 5)
To spread awareness about the product, amount the target segment is the main objective to
develop a good marketing strategy. In this case, we need to educate the customer with the
availability and need of the product.

Here our main focus it to show them that the new M&M Yuvraj 215 NXT is:
- Affordable
- Will increase productivity
- Can be useful for other application
- Can be used instead of livestock (bullocks)
- is a premium product from a trustworthy brand
- ease of buying with various financial options

Keeping in mind the consumer segment (rural framers looking to investment in affordable
and durable tractors) in mind Mahindra can take up following strategy considering the large
size and low penetration:

1. To have specialized dealers to educate the importance of tractors and its application
and how it’ll benefit their income.
2. Set a direct sales team that can interact with farmers across the villages and
promote the product.
3. Emphasis on the brands loyalty and financial services offered with the tractor
purchase

For further sales promotion they can extend to:

- Providing signing offers with discounted or free farming accessories with the product
- Increase warranties
- Free maintenance and service coupons

4
 MAHINDRA AND MAHINDRA CASE

- Participate in the local events such as melas and have a stall set up to provide an
exposure and to increase a new perspective.
- Communicate the benefit s of the products
- Provide seasonal scheme to focus on farmers working in carious seasons
- Special discount for local festivals
- Lucky draws
- Scratch cards for holiday or discounts
- Upgrading models
- Buyback offers

6. Would purchasing a Yuvraj 215 NXT be a good decision for a small farmer
with one hectare of land? Why or why not?

Ans 6)

Yes, purchasing Yuvraj 215 NXT would be a good decision for small farmer. The main factors
for this are:

1) It is an affordable option for the farmers holding a small land as it is priced lower
compared to the other tractor market competitors.
2) It will help to reduce the dependency on the bullocks in general. The cost of the life
stock is higher than a long-term investment in a mechanical option due to the
additional expense of food and health of the bullocks
3) Maintenance cost of the tractors are low compared to the bullocks and other
machinery used for farming. It a one investment that can be enhanced and used for
multiple purposes.
4) Tractors can be used for sowing, spraying, watering, ploughing, threshing, etc
5) It has higher productivity than bullocks’ carts
6) Farmers can pursue renting the tractors to other people for different commercial or
agricultural purposes thus adding on to extra income
7) With M&M, there are various option for financial services to buy various
equipment/attachments for varied uses.
8) If farmer can’t afford to pay their entire cost the payments are made at the
convenient pace (as mentioned in the case) with the help of M&M.
 
 
.