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GROWTH OF TRACTOR INDUSTRY IN NORTH EAST INDIA: A CASE STUDY OF MARKETTING STRATEGIES AND FACTORS INFLUENCING SALE OF TRACTORS IN SELECTED DISTRICTS OF ASSAM

KrishiKosh

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Title GROWTH OF TRACTOR INDUSTRY IN NORTH EAST INDIA: A CASE STUDY OF MARKETTING STRATEGIES AND FACTORS INFLUENCING SALE OF TRACTORS IN SELECTED DISTRICTS OF ASSAM
 
Creator DONBOR SHISHA POHSNGAP
 
Contributor RADHIKA, P
 
Subject sampling, marketing, sales, economics, land resources, markets, productivity, biological development, area, economic systems
 
Description Agricultural machinery and implements are an important factor in agricultural production
and productivity enhancement. The Indian tractor industry is the largest in the world
accounting for approximately one third of global production but ranked 8th in terms of
tractor population. The tractor market has expanded at a spectacular pace over the last few
years where both the production and sales were increasing in the numbers of tractors
(although in a decreasing year on year growth) with 343520 tractors and 347010 tractors
respectively in 2008-09 to 639896 and 607658 in 2011-12 and overall the Indian tractor
market has grown at a compound growth rate of 15.31 per cent and 14.86 per cent in terms
of production and sales respectively over the last five years. (IASRI, 2013)
The agricultural productivity of the North Eastern states has been lower compared to
other states because of a number of reasons; chief being the low level of mechanisation in
the area. Among the North Eastern states, Assam is the only state having considerable
number of tractor sales. And in terms of year on year growth, Assam has got the highest year
on year growth nationally with 61 per cent
The study was undertaken with the following specific objectives: -
1. To study the trend in growth of tractors in North East India and also segment wise
in the selected districts of Assam.
2. To analyse the marketing strategies adopted by the top 5 players in tractor sales in
the selected districts.
3. To understand the perception of sample dealers towards distribution and marketing
strategies adopted by tractor manufacturers’ in the study area.
4. To identify and analyse the factors influencing the purchasing behaviour of the
farmers with regard to tractors in the selected districts.
A total of 240 sample farmers and 40 sample dealers were selected from the eight
districts viz., Barpeta, Bongaigaon, Darrang, Dhubri, Goalpara, Kamrup, Lakhimpur and
Nagaon for the study. For analysis of growth trend of tractors in North East India,
Compound Annual Growth Rates was used. The results of the study showed the compound
growth rate of tractors in North East India during the period of 2001-02 to 2010-11 was
26.67 per cent. Among the North Eastern states, Assam has got the highest sales of 3893
tractors (2010-2011) and also showed significant Compound Growth Rate of 28.18 per
cent.
The Mahindra tractor model 275 NBP MKM is the most popular brand model in the
study area as 61 per cent of the sample farmers listed it. In all, 43 per cent of all the sample
dealers in the study area adopt the cost plus pricing strategy, where the firm adds a certain
percentage to the costs as profit margin. The distribution network of all the companies is
very poor as each of the company has got only one dealer per district. Among the
promotional tools, demonstration was found to be the most effective tool in the study area
and Mahindra was the most effective in delivering different promotional activities in the
opinion of the sample farmers although all the companies promotional activities are more
or less the same.
About 50 per cent of the dealers invested around 16 to 30 lakhs in establishing their
tractor business and 70 per cent of the sample dealers in the study area had one to five
years’ experience in the tractor business. For tractor dealership, a dealer should be
financially sound, should have at least five years of experience, good educational
qualification and showroom should be located near its customers. Credit facility to the
dealer from the company side is very poor. Mahindra has got the highest tractor sale in a
month and district wise, Kamrup has the highest tractor sales in a month. The profit margin
on every sale of a tractor varies from 7 per cent margin for below 20 HP segment tractors to
12 per cent margin for above 60 HP segment tractors. The payment problem from the
customers was the major problem in tractor business.
About 66 per cent of the sample farmers are unaware of what HP means in a tractor.
About 58 per cent of the sample farmers bought tractors through cash, credit and subsidy
together. Fellow farmers and relatives are the most influential source of information about a
tractor. Subsidy provided by the government is the most influential factor that affects
tractor purchase.
The study suggested an overall improvement in providing more training to farmers
with regards to tractor, efficiently. Then operating the different governmental schemes for
tractors so that farmers can get subsidy, increase in the number of dealers per district for
proper distribution, more promotional activities in local language and taking proper
feedback from the dealers and maintaining good contact with the customers.
 
Date 2016-09-14T13:41:51Z
2016-09-14T13:41:51Z
2014
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/76685
 
Language en
 
Relation D9729;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY, RAJENDRANAGAR, HYDERABAD