CHAPTER-1

Executive Summary

This report is regarding the survey conducted for International Tractor Limited (Sonalika) on

the topic “Comparative Study of Sonalika Tractor with Respect to Other Brands”. The survey

was conducted in varies villages of Hoshiarpur district. For this purpose a questionnaire was

developed on the basis of discussion we had with our training supervisor Dr. Gurvinder Singh

(Deputy Manager HRD ITL). Many discussions with farmers were also conducted for

developing the questionnaire. From that discussion we got to know of the various parameters

while purchasing a tractor and these parameters were also included in the questionnaire. The

no. of respondents was hundred including the dealers. The main objective of the study was to

find out the best tractor on the basis of the various parameters such as fuel efficiency,

availability of spare parts, problems faced in a tractor etc. The data regarding the areas in

which Sonalika was lacking was also to be provided to the organization.

For this purpose the samples were collected from rural areas of Hoshiarpur district. The first

objective was to see the position of Sonalika in these areas. Secondly we were to see the kind

of problems faced by the people in terms of after sale services etc. From the survey we also

observed the post purchase behavior of the farmers.

For this task we had to go to the various villages. The problems of the people in these areas

were also seen. The kind of atmosphere they had was quite different. The major problem they

had was the non availability of original spare parts. The major problem was seen in terms of

the tractor named as John Deere whose spare parts are not easily available in the market. The

findings regarding the Sonalika were also to be taken into account. The tractor was lacking in

terms of the spare parts. The major problem people had with Sonalika is that the wear and tear

of the tractor is very high. Secondly people said the tractor’s engine is changed in a short

period of time. Thus it creates a problem when farmers go to the market and the spare parts

they have in their tractor are not found. Thus it is one of the major problems with Sonalika

tractor. The people were also having problems in terms of the price of Sonalika tractor. Most of

the respondents considered it as an expensive tractor. Sonalika is considered to be the best

tractor in terms of overloading the tractor came first in this parameter. People also like this

tractor because of the comfort it gives. The tractor came out first when it comes to the tractor

which is designed ergonomically. From all this survey the thing which comes out is that the

position of the tractor is very good but not the best. The tractor is facing stiff competition from

Swaraj ant Mahindera. The reason being that these are the old players in the market and have a

strong brand image. When we talk about Sonalika then it is placed good in the market. The

implication which we have observed is that the tractor is doing well in foreign markets. The

Sonalika tractor is having strong customer base in other countries. The reason behind this is the

collaboration with the companies like Yanmar. MG Rover etc.

The company is one of the top tractor manufacturers in India. The growth the company had

within these twelve years right from its establishment in 1996 is tremendous. Within these

twelve years the companies is placed in top three tractor manufacturer companies. Thus the

improvement the company has done from the very first day of its establishment is very good.

The company is having various projects for the future also. The company is now going to enter

into power generator manufacturing. The company has also entered into a contract with a

company named as Pininfarina. This company will now have a technical collaboration with

International Cars & Motors Limited. The companies will produce a world car which will be

available by 2010 in India & Europe. The company wants to be the leader in the industry by

the year 2010. Sonalika has also done a lot of things on terms of the quality standards. It is the

company having ISO 14001 certification. Along with that it also has ISO 9000 certification.

Thus Sonalika can be considered as a company having a great potential to prove itself in todays

market.

2

CHAPTER-2

Introduction to the Project

Introduction: I conducted a survey in Sonalika group (ITL) on the topic “Comparative

analysis of Sonalika tractor with respect to other brand of tractors”. The main objective of the

study is to find out the rank of Sonalika tractor. So, I was go for comparative analysis which

means Item by item comparison of two or more comparable alternatives, processes, products,

qualifications, sets of data, systems, etc. For this purpose I chose six brands of tractors which

are well popular in the market. These brands are:

Sonalika

Escort

Mahindra

John Deere

Sawraj

Farmtrac

A Brief Introduction to the tractor Industry in India

Sonalika (International Tractors Ltd.)

International Tractors Limited was incorporated on October 17, 1995 and began

manufacturing tractors designed by Central Mechanical Engineering Research Institute

(CMERI). ITL currently is manufacturing Sonalika tractors between 30 HP to 90 HP, and the

CERES brand between 60HP to 90HP. ITL went into collaboration with Renault Agriculture

of France in July 2000. Renault Agriculture is a subsidiary of the Renault Group. Renault

Agriculture was bought by CLAAS of Germany in 2003. Incidentally CLAAS already has a

strong presence in India market producing its Crop Tiger range of Combine Harvesters in a

plant in Faridabad (near New Delhi) since 1992.

3

Escorts (Escort, Powertrac and Farmtrac)

Escorts Ltd began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK

and total production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Ford (Ford -

New Holland) was sold in 1992. Ford Motor Company proper quit the tractors business, but

the name was allowed to continue as per agreement until 2000, when Escorts relabeled its Ford

models under the Escort brand. Escort manufactures produces tractors in the 27-75 HP range

and has already sold over 6 lac tractors. Its tractors are marketed under three brand names,

Escort, Powertrac and Farmtrac.

Mahindra & Mahindra

M&M's Farm Equipment Sector origin lie in a joint venture in 1963 between the Company,

International Harvester Inc., and Voltas Limited, and was named International Tractor

Company of India (ITCI). In 1977, ITCI merged with M&M and became its Tractor Division.

After M&M's organizational restructuring in 1994, this division was called the Farm

Equipment Sector. The Farm Equipment Sector has also ventured into manufacturing of

Industrial Engines. M&M Industrial engines are used for various applications like generator

sets, industrial, construction, marine, compressors, etc. These engines are manufactured at the

Company's engine assembly plants at Kandivli and Nagpur. M&M has two main tractor

manufacturing plants located at Mumbai and Nagpur in Maharashtra. Apart from these two

main manufacturing units, the Farm Equipment Sector has satellite plants located at Rudrapur

in Uttarachal and Jaipur in Rajasthan. The Farm Equipment Sector as reported by the Company

has a dealer network of over 450 dealers. This dealer network is managed by 28 area offices,

situated in all the major cities and covering all the principal states and M&M tractors has sold

more than 13,00,000 tractors since its inception. M&M's Farm Equipment Sector is perhaps the

largest exporter of Indian tractors to the USA and the west. And in a reversal to earlier trends

of Indian tractor manufactures with joint ventures with western tractor companies, M&M, in

2004 announced that they had bought majority stake (80%) in Jiangling Tractor Company, and

4

renamed it Mahindra Jiangling Motor Co Group (JMCG). This is the first instance of Indian

tractor industries participating in India's reverse FDI. The plant in China reportedly has a

production capacity of 12,000 tractors annually.In March 2007, M&M bought a controlling

43% stake in the Mohali-based tractor firm Punjab Tractors (Swaraj) that will reportedly

increase M&M's share in the domestic farm equipment market from just over 30% to 40%. The

43% stake includes 29% owned by private equity firm Actis and 14.2% by the Delhi-based

Burman family. In July 2007, Mahindra upped its stake to 64.6%.

Mahindra & Mahindra has entered its 25th year of Market Leadership in India in 2008. M&M

is also the only tractor company in the world to receive coveted Japan Quality Medal and

Deming Prize for Quality from Japan.

John Deere

In 2000, John Deere set up production in a joint venture with Larsen & Toubro Ltd in

Sanaswadi, in a rural area near Pune, Maharashtra. It was known as L&T John Deere Private

Ltd, and manufactured tractors under the L&T - John Deere name for sale in India, and under

the John Deere name for worldwide sales.

In 2005, Deere & Company acquired nearly all the remaining shares in this joint venture. The

new enterprise is known as John Deere Equipment Private Limited. The factory currently

produces tractors in of 35, 40, 42, 47, 50, 55 and 70 HP capacities for domestic markets and for

export to to the USA, Mexico, Turkey, North and South Africa, and South East Asia. Pune

factory started to produce new 55 to 75 Hp 5003 series tractors for European market in 2008.

Punjab Tractors Ltd (Swaraj Tractors)

In 1965, Government of India research institute Central Mechanical Engineering Research

Institute, Durgapur, WB initiated design and development of Swaraj Tractor based on

indigenous know-how. In 1970, Punjab Government acquired the Swaraj tractor's design and

established Punjab Tractors Limited (PTL). It was India's first large-scale totally indigenous

project. The company exports Tractors to various countries including USA. It manufactures

5

nine models of tractor and several models of combine harvesters. The manufacturing units are

located at Mohali District, Asron Village of Nawanshahar District and Nabha of Patiala

District, Punjab.

Swaraj also manufactures Forklifts and Combines, which are assembled in their Mohali Plant.

Actis, a private equity firm acquired 29% of Punjab Tractors in mid-2003 from the Punjab

Government. In March 2007, and currently subject to the receipt of requisite approvals, M&M

bought a controlling 43% stake in Punjab Tractors Ltd. that will reportedly increase M&M's

share in the domestic tractor market from just over 30% to nearly 40%. The 43% stake in

Punjab Tractors includes the 29% owned by Actis and 14.2% by the Delhi-based Burman

family. In July 2007, Mahindra upped its share in Punjab to 64.6%.

6

CHAPTER-2(A)

Review of the articles

Buying your first tractor: The People You Buy From

This article applies mostly to the first time buyer of the working tractor but if you have

purchased many tractors, you may find yourself reminiscing about a few of your own

experiences. If you are a first-time buyer, chances are that you are likely to take the word of the

seller on things. This is where the problems start...

You have reviewed your implement needs and determined the size of machine that will fit the

bill and even made a list of the most desirable models. You checked on the availability of a 3-

point hitch for the machines on the list and advertised in your local classified paper with

something like the following:

Wanted: Ford 8N, 500, 600, AC CA, or Farmall A. Good running condition, good tires &

priced reasonably. AC or Farmall should include Plow and Disk or 3 point hitch. No excessive

rust. Call Evelyn and Joe at 555-1212.

The calls start pouring in with everything from a fellow who restores Fords and has a beauty

for $4500 to a person that says "I think it's a AC CA" (in reality it's a Simplicity lawn tractor).

You are going to have to wade through this mine field of the wrong machines to find those that

really are contenders. Take your time and go look at the ones that sound like they are close in

price and condition but remember that no matter what was said on the phone, reality may

throw you some curves. Your dealings may just uncover some of the following:

People who unknowingly misrepresent the type and condition of their tractor

People who intentionally misrepresent the type and condition of their tractor

You will find the first category is the norm. Most people who respond to your advertisement

will be cleaning out the barn or garage and just want to get rid of Uncle Bob's old tractor. This

7

can be a good source for machines (and frequently the lowest prices) but remember that most

folks in this category have machines that may have sat for years or they had purchased the

machine recently, couldn't get it running and want to cut their losses. Since these people have

no knowledge of their tractor, they can be trusted (since you won't be relying on much that

they say). Unfortunately this means you must be the expert and do your own evaluation (In

another article we cover some of the technical evaluation criteria for previewing).

Nebraska Tractor Test Lab

The Nebraska Tractor Test Laboratory (NTTL) was established in 1920 in response to the

Nebraska Tractor Test Act of 1919, which required all agricultural tractors sold and advertised

in Nebraska to have manufacturers' performance claims verified by the Nebraska Tractor Test

Lab. The act was vigorously sponsored by W. F. Crozier (a state representative who in 1916

purchased a tractor that did not perform as advertised) and fellow senator Charles Warner.

The first tractor successfully tested in the lab was in 1920 - a John Deere Waterloo Boy. The

original tractor test lab facility was intended to be only temporary and was erected very

quickly, however, the building was used for decades. In 1980, the original tractor test lab

facility - now the Lester F. Larsen Tractor Test and Power Museum - was designated an

Historic Landmark of Agricultural Engineering by ASABE. (Larsen was the NTTL's longest

serving director, from 1946 until his retirement in 1975.)

Over the years, changes in tractor technology and increased specialization of associated

traction machinery have resulted in changes to the Tractor Test Act and corresponding

alterations to the Tractor Test Lab's role.

For example, construction tractors (steel-track crawlers and loader-backhoe tractors) were

exempted from test in 1956. In the 1960s, the first minimum power limit was established at 20

advertised horsepower, excluding riding lawn mowers and lawn and garden units from test and

8

permit requirements. In 1986, the minimum horsepower level was raised to 30 kW (40 hp), due

in part to the growth of tractor power away from lower levels and the advent of larger lawn and

garden tractors. Also at this time, the law was changed to allow the tractor test lab to conduct

tests according to the Organization for Economic Co-operation and Development (OECD) test

codes. The state of Nebraska now allows OECD tests conducted elsewhere to be accepted for

use in Nebraska.

Today, all tractors tested undergo one or more tests at the tractor test lab. Tractors have PTO

horsepower verified (Figure 1). This test is more than just a verification of power; it also

establishes a full load power and fuel curve and also includes partial power testing.

Additionally, tractors with more than 100 PTO horsepower are tested for drawbar performance.

During drawbar testing, each tractor tows a load car (Figure 2). The load car pictured on the

left has been in use since the fall of 2003 and replaced the earlier load car, shown on the right,

that had its origins in 1937. During testing (Figures 3 and 4, below and right), a number of

measurements are made in each gear at rated engine speed and maximum power engine speed.

These measurements include fuel used (which is supplied and measured from the load car),

drawbar pull, speed, travel reduction (reported as slip), distance traveled, engine and fan rpm,

as well as various temperatures. The load car applies a load using three electric retarders in

series driven through a separate transmission. Additional load units are sometimes pulled

behind the load car to provide additional loading if the tractor under test is sufficiently

powerful.

Generally, the tests for one tractor require approximately a week. Typically, it takes one full

day to conduct a PTO test, unless more time is needed for minor power adjustments. Fuel rate

adjustment is allowed to ensure that: 1) the minimum advertised power at either rated engine

speed or standard PTO speed is met or 2) the power does not exceed the maximum power

desired by the manufacturer. The manufacturer is constrained to not exceed warranty fuel

limits for the engine series in each model. Drawbar testing typically requires portions of three

days to complete. Because tractor performance varies depending upon atmospheric conditions,

tests must be.

9

Identifying Your Tractor

You may have purchased a farm with the tractor already on it, or maybe you inherited your

"new" tractor from a relative. Maybe you bought it from a friend who didn't know what kind of

tractor it was, or perhaps (and this is every tractor fanatics dream) you stumbled across it in an

abandoned field covered with weeds but intact. In any case, you have no idea what the make

and/or model is. For awhile perhaps it doesn't really matter. Especially if it runs! But pretty

soon you'll probably need to tinker with it a bit and maybe buy a part or too. Having a manual

is nice. But how does one go about determining what make and model the tractor is so you can

purchase the items you need?

The first logical step would be to ask a friend or a neighbor who is knowledgeable about

tractors. They could stop by, take a look and hopefully solve the mystery. But if none of your

friends or neighbors has a clue, then the second logical step would be to take you to the local or

regional library. You have a picture of your tractor clearly in your mind (or perhaps in your

wallet) so go compare that picture to the pictures you find in tractor books or publications at

the library.

If you already know the make of the tractor ("Farmall", or "Ford" or "Massey-Harris", etc) but

you just don't know the model ("Farmall Model A", "Ford 8N", "Massey-Harris Pony", etc)

then you may want to purchase a book covering your particular manufacturer. If you have no

idea who even made the tractor, there are more general books available such as "The

Encyclopedia of American Farm Tractors" by C.H. Wendel. This book covers hundreds of

tractor makes and models and has many pictures.

10

CHAPTER-3

An overview of the industry

History

Established in 1969, Sonalika group from the very beginning has tried to understand customer

need so that they get better value for their money, hard earned. Sonalika has state of

manufacturing, spread in acres, located at Hoshiarpur and tax free zone at AMB in Himachal

Pradesh. Sonalika is the one of the top 3 tractor manufacturing companies in India, other

products include of, Multi utility vehicles, engines and various farm equipments. Today the

group stands tall with an approximate turnover of 3200 Core INR. An average growth of 30%

makes it one of the fastest growing corporate in India. Its is also one of the few debt free

companies. Group has strength of about 2000 employee & technocrats. History reveals that

innovation is the key to continued progress and when applied to technology that touches

human life, it can unfold a whole new economic phenomenon that has the power to change the

world. With unique initiatives like the Thought leadership Forum, Leadership Forum, Sonalika

has been able to create a unique platform for learning through success stories of industry

leaders.

The industry has gradually transformed itself into a world-class player involved in building

state-of-the-art products, solutions and technologies. As an industry, Sonalika is very conscious

of her responsibility to society. Sonalika Foundation intends to become a catalyst, encouraging

our members to do more, capturing best practices for quality and harnessing a greater range of

resources, from the industry and beyond, to make a major impact on the development. It has

been the vision of Sonalika to cater to the needful agriculture and auto industry with quality

products through untiring dedication and activities. As Sonalika steps in to its fifth decade of

existence, it continues to lead the development. Tractor and car plants work in 2 to 3 shifts

depending upon volume of work for maximum production. Sonalika continues to march ahead

on road to success and glory driven by the force of initiative and determination to have a

leading position in the tractor industry in the days to come. Sonalika has ventured in to

automobile sector also with the launching of Rhino –MUV- to write another success story.

11

Vision Statement

The Dream Project of Sonalika group is to cater the agricultural and auto industry with quality

abrasive products through untiring dedication and leadership.

Mission Statement

We pay personal attention to our customers so that, we can build products they need, and not

merely sell the products we build.

Core Values

To accomplish our mission, the ownership, staff, and management go to great lengths to treat

each customer like a member of the family and provide them with the best choice of products

and highest quality of service in the industry.

ETHO STATEMENT OR LOGO RATIONALE

Red symbolizes the strength, power, determination, and desire of company. Yellow

surrounding the Sonalika produces a warming effect, arouses cheerfulness, stimulates mental

activity, and generates the same. Green Leaf in the center symbolizes growth, harmony,

freshness, and fertility. Black underlining the logo associates with power, elegance, and

12

formality. And Orange surroundings the complete logo represents enthusiasm, fascination,

happiness, creativity, encouragement, and stimulation. All this permutation of persona

represents the Sonalika group as an asset in the industry.

Group Companies:

International Tractors Limited (ITL)

International Cars & Motors Limited (ICML)

Sonalika Agro Industries Corporation (SAIC)

International Autotrac Finance Limited (IAFL)

International Tractors Limited

International Tractors Limited was incorporate on October 17, 1995 for the manufacture of

Tractors and has since then built a distinct position for itself in the Tractor industry. ITL is

manufacturing various Tractors of Sonalika brand between 30 H.P to 90 H.P, and CLASS

brand between 70 hp to 90hp. The tractors manufactured by company have secured a

reputation of performance, quality and reliability in the market because of their maximum

pulling power, minimum fuel consumption and low emission. All this makes ITL one of the

top five tractor selling companies in India. The tractors are also exported to various countries

including South Africa, Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh, Algeria,

Zambia, Senegal, Ghana etc. ITL has entered into strategic alliance with YANMAR of Japan

for joint manufacturing tractors in India. ITL has a marketing arrangement with TATA

International for development of selected South American and African market. The company’s

marketing efforts are promoted by dealer network of 600, and 450 sub dealers. Such a

networking has enabled the company to grow like a well-knit family whose roots lie in its

customers, who have providing constant feedback and support to allow the company to turn

their dreams into products.

Sonalika is also manufacturing tractors, meeting norms of Smoke & Mass Emission, Tested

and certified by ARAI, Pune. United States Environmental Norms Agency, Washington DC

13

has also certified our Engines. These certifications enabled SONALIKA Tractors to enter into

world Market. All the Models of Tractors and Combines Harvesters manufactured by us are

tested & approved by central Farm Machinery and Tractors Training & Testing Institute, Bundi

(MP) India, (the Government of India Institute authorized for issuing test reports).

Tractors from ITL offer the perfect combination of power and economy in the agriculture

utility segment. For fast efficient operation in the rows and a minimum width, which is typical

to small land holdings, the performance of ITL tractors is unparallel. Sonalika tractors are easy

to handle, with outstanding maneuverability, low center of gravity and a tight turning radius,

that combine to give fast and efficient operation in the field or yard.

We also manufacture tractors whose specifications are approved and tested dimensionally and

structurally, according to EEC and other international standard and homologations. Some of

our tractor models offer the most technically advanced features available on the market today,

including hydrostatic transmission, power steering, differential lock and advanced safety

devices.

International Cars & Motors Limited

International Cars & Motors Limited (ICML) is a Group Company of the Rs 1200 Crores

SONALIKA Group. The Company is promoted by Mr. L.D.Mittal, Chairman, Mr. A.S.Mittal,

Vice Chairman & Mr. Deepak Mittal, Managing Director, who are having vast experience in

manufacturing of tractors, Farm machines & Automobiles.

ICML is a project of its kind and is the ‘Pride of Himachal Pradesh’. The Company is having

its state-of-the-art production facility, with centrally air-conditioned, dust & pollution free

environment, to manufacture multi-utility vehicles / sports – utility vehicles, in Amb, Himachal

Pradesh. The Company is a ‘Mother Unit’ as its establishment shall attract many other

ancillary & small units for meeting the raw material requirements yielding manifold

employment avenues, revenue & industrialization in the state.

14

The Company has entered into Technical Collaboration Agreement with MG Rover of UK,

with the technical know – how from MG Rover, UK. The Company has manufactured MUV

with the name of RHINO RX & the same MUV boasts of Rover engines. The company is in-

process of developing its own Common Rail Direct injection (CRDi) engines.

The company has the installed capacity to manufacture 2000 MUVs in a month i.e., 24000

MUVs in a year. In the first full year of production in 2006-2007, ICML is aiming to churn out

about 5000 MUVs & expects to achieve a turnover of 250 Crores. The Company, besides

catering to the domestic market, also has an eye on exports & exports to Malaysia, Nepal,

Bangladesh & Indonesia are also in an advanced stage. It will also offload the product in

African continent soon,

The Company is eligible for the Central & State Govt. Tax sops, exemption from the excise

duty & income tax for 10 years, which shall add to its viability & future expansion.

Sonalika Group intends to inject Rs. 1000 Crores in Himachal Pradesh over the next 2 -3 years

in the upcoming ICML plant & ICML has an ambitious plan to play a major role in the Indian

Automobile Industry.

Sonalika Agro Industries Corporation

Sonalika Agro was established in 1971 to support the Indian farmers with mechanization

technology to facilitate persistence of green revolution. Sonalika Agro Industries Corporation,

the group’s maiden venture is one of the foremost Farm equipments and implements

manufacturing companies in India with 80% share in threshers alone. Its product line includes

Combine Harvesters, Tractor/Self Driven straw reapers, Potato Planters, Maize seller –cum-

Dehuskers, Seed –Cum- Fertilizers Drills, various kinds of threshers, etc.; Sonalika Agro is a

pioneer in manufacturing tractors mounted combine harvester, which is not popular in India,

but also in various others countries across the globe. Today, the company is supporting the

farmers with world class farming equipment to ease the process of making the Green

Revolution II, a dream come true. In the light of the company's mission, highly qualified and

experienced staff is working as a family in the manufacturing facility at Hoshiarpur (Pb).

15

This plant is equipped with advanced technology to develop, manufacture and test the modern

products for the modern farmer. The company has a wide range of farm equipments and

implements to facilitate the farmers in all kinds of farming activities. It has a large dealer

network spread all over country and have approximately 80% share in Indian market of farm

machinery. Its products are also exported to Asian & African countries through various export

promotion counsels.

International Autotrac Finance Limited

International Autotrac Finance Limited is a non banking finance company approved by

RBI.

IAFL provide finance to customers of International cars & motors limited in rural &

semi urban areas across India through customer friendly schemes.

Its parent company Sonalika Group ranks among the largest tractor & farm equipment

manufacturer in India

BUSINESS PLANS OF IAFL First Phase: In the first phase, the area of operations will be in the state of Punjab,

Haryana, Jammu, H.P (Done).

Second Phase: In the second phase, the area of operations will be extended to other

parts of Northern India.

Third Phase: In the third phase, the area of operations will be extended to whole India.

Whom to Finance Salaried

Agriculturist

Self Employed

16

Partnership

Pvt.co.,others

IAFL Schemes Scheme for salaried class

Scheme for Business class

Scheme for Taxi Purpose

Scheme for Agriculturists

An Overview of the Group

17

Market Share

The group has a strong presence in Punjab and Himachal Pradesh and its tractor manufacturing

arm, International Tractors Ltd, has a market share of 11 per cent. With plans to become the

market leader in the next 3 to 5 years, the group will double the capacity of its current facility

in Hoshiarpur to 80,000 units a year.

International Tractors Ltd or ITL as it is popularly known aims to increase its current turnover

of Rs 1,300 crore to Rs 1,500 crore by the end of 2008. The group currently exports tractors to

South Africa, Zimbabwe, France, Australia, Sri Lanka, and Bangladesh. They have begun their

foray into the American tractor market with hobby tractors, which are low-powered tractors

with 40-45 HP, used for gardening.

Milestones (Landmarks)

18

2007

Joint Venture between ITL and MAGMA, August 2007.

On Aug. 10 with a view to provide financing of tractors on less stringent conditions,

International Tractors Ltd has entered into a joint venture to set up a new company with

Magma Shrachi Finance Ltd. The initial investment in the project would be Rs 25 crore.The

joint venture company, to be known as Magma ITL Finance Ltd, would have 74 per cent stake

while ITL would have the remaining 26 per cent.

2007

New variant of RHINO RX

New variant of RHINO Rx launched with more technologically advanced engine and added

features with utmost fuel efficiency and luxurious comfort at affordable price.

2006

Market Launch of RHINO (MUV)

Market Launch of RHINO (MUV) and Dealer network is being expanded through out the

country. Our Chairman Has been Elected as President of TMA, Appointed as Ambassador of

Macedonia & a member of National Council Confederation of Indian Ministry. Successfully

Developed Four Wheel Drive front axles and Transmission of tractor for Yanmar. Became the

third largest tractor manufacturer in India.

2005

Achieved turnover of USD 235 Million for FY 2004-05.

Achieved turnover of USD 235 Million (Rs1000 Cr.)For FY 2004-05. Become the fourth

largest tractor manufacturer in India. Rollout of first vehicle from ICML facility. Joint venture

with Yanmar Agriculture of Japan for manufacturing of Tractors in India eived the ISO 9001/

ISO 14000 & TS 16949Certification for ICML and ITL. Initiated Crankshaft & Cylinder Block

19

Machining Line and other components under Lean manufacturing System Received orders

from Yanmar for Manufacturing of Front Axles and Transmission.

2004

Rollout—100000th Tractor in the year

Opening of ICML in Sonalika group

2003

Started export of tractors to Africa & Asian subcontinents.

2001

Started in house manufacturing of engine for tractor application

2000

Entered into Joint venture with Renault (Class,) from Germany agricultural

1997

Entered into Manufacturing of tractors.

1969

Modest beginning into farm equipment and machinery manufacturing

Infrastructure

20

Production

ITL has fully integrated and state of the art assembly facilitation for producing world class

tractors. Several productivity improvements in assembly line over the years have made it

possible to manufacture nearly 37000 tractors per Year.

Atomization of assembly line not only increased production capacity, but also provided a

quantum jump to the quality of assembled tractors. ITL assembly line producing tractors in

broad range from 30HP to 90HP with effective planning of resources.

Highlights of Assembly Facilitations

Automated conveyors (Toe-in conveyors, slat conveyor and overhead conveyors.) for sub-

assemblies as well as for major assemblies and final product.

Quality, Assembly & Testing Tools Hydraulic Test Rig Up to 1600Kg Lifting Capacity

Millipore Testing Equipment. Torque calibrator

Hydraulic presses

A unique 3-Stage oil filtration system having modern facility of centrifuge filtration

21

Batch type Special purpose machines (SPM) at various locations for washing of heavy

castings, components & subassemblies

Pipe flushing machine for proper cleaning of hoses & pipes

Induction Heaters for controlled heating of bearings

Standard testing procedures for final product Roller testing

Road testing

Field Testing

Research & Development

Brief of R & D:

ITL R & D center is recognized by government of INDIA

ITL R&D is a complete dep’t in itself starting from designing upto development,

implementation.

Capabilities:

Facilities

Highly qualified team of engineers for designing of transmission & vehicle areas.

Vendor development is capable for the development of new projects components of

R&D through vendors & commercial settlement.

Vendor quality control is capable for ensuring quality requirements of components

through verification at vendor end.

High skilled workers are capable for making any type of prototypes.

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Design Engines

Engines are designed with Rotary FIE from BOSCH & (CRDi) Common Rail Diesel that gives

variable geometry turbocharger for superior engine response. The in house R&D has all

supplies required for complete design of engine from structural parts to emission development.

Use of CAD and FEA is made to design robust parts. While Emission test cell is also being

commissioned using equipment imported from AVL Austria world leader in emission

measurement for conducting in house emission measurement.

In-House R&D Capabilities:

The in house Engine R&D department of Sonalika is one of the finest. Possessing a team of

highly qualified team of engineers capable of designing complete engine from ground up.

Engines developed so far include tractor engines from Hp rating of 28-90 Hp.With entry of

Sonalika group into MUV segment two engines have been developed by the in house R&D

exclusively for the MUV application.

High configuration workstations are used for design activities

Team center is used for PLM concepts

I-Deas, Solid-Edge & AutoCad is used for 3D & 2D design activities

Two transmission test rigs

Circular test track (mgr) & Roll over protection test rig

Hydraulic system test rig

Endurance test rig for operator seat & fenders

Pto test bed & Endurance test rig for MUV gearbox under commissioning

Sonalika have In House Design Engine R&D department with up-to-date technology. Having a

team of exceedingly competent & remarkable squad of engineer’s proficient of designing most

excellent Engines in technology.

Engines developed so far available in rating of 28-90 HP.Sonalika has started spreading roots

in MUV manufacturing with own R&D team and designed two exclusive engines with latest

technology.

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The engines have been developed using latest technology. One engine uses Rotary FIE from

BOSCH while the other engine is a Common Rail Diesel Engine (CRDi) with variable

geometry turbocharger for improved engine response at all points during engine operation. The

in house R&D has all tools required for complete design of engine from structural parts to

emission development. Use of CAD and FEA is made to design robust parts. While Emission

test cell is also being commissioned using equipment imported from AVL Austria world leader

in emission measurement for conducting in house emission measurement.

Quality Assurance

International Tractors Ltd, Certified as

24

Quality Management System - ISO 9001:2000 Std.

Quality Management System - ISO/TS 16949:2002 Std. (ITL Auto Division)

ISO 14001:2004 Environment Management System

The entire evolution of Quality is classified into 4 phases Inspection Phase

Quality Control Phase

Quality Assurance Phase

Total Quality Management Phase

Profile Projector

Profile Projector used for inspection of Critical Parameters e.g. Thread, Gear profiles etc.

Standard Room

GEOPAK-WIN: - Scanning is the option in GEOPAK – WIN, with that you record contours

and surfaces, realize nominal actual comparisons with contours, calculate geometrical elements

at the contour after scanning & import contours from external systems, respectively export

them to systems (Auto cad, Ideas for modeling purpose).

3D Co-ordinate Measuring Machine (CMM)

25

Software Used For Measurement (CMM)

(Geometrical 3D measuring software) In this software, we can calculate & store co-ordinate of

component as per drawing specification as well as Geometrical tolerances (Flatness,

Concentricity, Parallelism & Positioning) with Graphical Presentation. With help of Geopak –

Win generates a program of each component & run in CNC mode, safe a time, generate

presentable report as per requirement.

Scanning is the option in GEOPAK – WIN, with that you record contours and surfaces, realize

nominal actual comparisons with contours, calculate geometrical elements at the contour after

scanning & import contours from external systems, respectively export them to systems (Auto

cad, Ideas for modeling purpose).

26

Use of FEA for Component Design

Sonalika Engines are produced in air-conditioned plant with Air, Dust & Moisture controlled

for the Best Assembly Conditions to ensure a quality product to the end user. The engines are

known for being Reliable, Fuel Efficient, Lowest in noise, compact, all-weather proof and

rugged. Every engine produced is thoroughly tested on engine test beds before being passed

onto the customer. Sonalika offers one of the widest range of engines from power ratings of

28-90 Ps for tractor applications, while a host of options is also available for engines for

powering Gensets. Now with Sonalika group venturing into the MUV segment two new

engines have been developed specifically for this application. The engines manufactured at

state of art facilities world class R&D with complete expertise in diesel engines offer value for

money performance to customers.

Major Highlights

1. Sh. L.D. Mittal has got honour as entrepreneur of the year from the governor of Punjab.

2. Sh. D.K. Mittal has got honour from rural area development minister

3. Total tractor market share of ITL is 8%.

4. The company has obtained ISO 9001 and ISO 14001 certification.

5. The company manufactured its first tractor in February 1996.

6. Company has sold 1.70 lakh tractors in 10 years only. Thus it has been honoured as fast

growing company and registered itself in the top three manufacturers.

7. Sonalika has 12 models ranging 30 to75 H.P.

8. Sonalika group is contributing to the green revolution in India since 1969.

9. The group has turnover of 1000 Crores.

10. The plant is located in 40 acres.

11. ITL entered in to a joint venture with Renault Agriculture France in July 2000.

12. ITL has strategic alliance with Yanmar Japan along with equity participation of 12%.

13. SAP (System Application & Products in Data Processing) one of the most widely used

in the world has been installed in the company.

14. Metaphase (Product data base management system) has also been installed in R&D in

27

direct interface with SAP.

15. Strength of ITL is effective cost, technical capabilities and marketing capabilities.

Financial Partners

CVCI (Citigroup Venture Capital International)

Investment ITL-9.5%

Investment ICML-18%

In June 2005 the Citigroup Venture capital joined the company as financial partner, having

equity stake of 9.5%.

JM Financial Trustee Pvt Ltd

JM Financial Trustee Pvt Ltd, a company of JM Group joined the company in Jan, 2007 as

Financial Partner with the equity stake of 5%.

3i Agri-Vehicels

Investment ITL-10%

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Investment ICML-10%

3i Agri-Vehicels limited joined the company as financial partner in March, 2006 with the

equity stake of 10%.

Joint Venture

CVCI (Citigroup Venture Capital International)

Investment ITL-9.5%

Investment ICML-18%

In June 2005 the Citigroup Venture capital joined the company as financial partner, having

equity stake of 9.5%.

YANMAR, Japan

Investment -12%

Yanmar company limited, Japan joined the company in Sept, 2005 as strategic partner, having

12% equity stake in the company.

MG ROVER Group Limited

Entered into technical collaboration agreement with MG ROVER Group Limited

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Magma Shrachi Finance

The company entered into the joint venture with Magma Shrachi Finance limited on 10th

august 2007 to incorporate a new company with 74:26 (Magma-ITL) ratio of equity

participation for financing tractors of manufactured by the company.

3i Agri-Vehicels

Investment ITL-10%

Investment ICML-10%

3i Agri-Vehicels limited joined the company as financial partner in March, 2006 with the

equity stake of 10%.

International Business Information

After consolidating its market share in the domestic and being counted as top three tractor

manufacturer, ITL has now set its sight at becoming a major International Tractor

Manufacturer. Sonalika Tractors are new successfully running in over 30 countries across Asia,

Africa, North America and Australia. During last year market have been opened up in

Australia, Ethiopia, Nigeria, Mozambique, Sudan, Qatar and Yemen in addition to traditional

strong presence in market like Sri Lanka, Bangladesh, Kenya, Uganda, Egypt, Algeria, Mali

and Senegal and etc. Sonalika is already the largest exported Indian to market like Nepal,

South Africa and many others in Africa. The Focus has now shifted to concentrate on

developing high volume tractor market like USA, Australia, Italy, Iran and Turkey etc. ITL

Participated in several Agricultural shows in Canada and USA during Feb’07 and got very

good response from the farmer and has finalized the entry strategy for the North America

market. A new range of EPA complaint tractor with a modern front look has been developed

30

for the developed for the developed market like USA and Europe. Several European companies

have also shown interest in Sonalika product and new market in Spain, Italy, Slovenian and

other east European market will market will start selling ITL products shortly. Again a new

range of EURO III complaint tractors are currently undergoing European homologation.

During Last financial Year Sonalika Product also received technical homologation clearance

from Nigeria & Sudan. Showing faith in ITL quality and cost effectiveness some of the leading

European tractor brands have short listed ITL to outsource their products range from ITL.

After inspecting ITL facilities these companies have selected the tractor models to be

outsourced from ITL. This will give ITL assured annual export volume of over 5000 units per

annum along with upgrade ITL technology and production System. Further negotiation is

underway with companies from turkey, Poland and Italy for long term cooperation and joint

marketing of IT product across Europe as well offer contract manufacturing facility to these

companies. In order to strengthen the dealer effectiveness in the target overseas market during

the year. Several training programs have been conducted at ITL training center in Hoshiarpur.

These were attended by sales and services staff from Bangladesh, Sri Lanka, South Africa,

Yemen, Nigeria, Ghana, Cameramoon, Ethiopia, Algeria, & Egypt etc. The introduction of 75

HP tractor range in 2WD & 4WD has given additional boost to TL exports. Sonalika is in fact

the only company exporting 90 H .P tractor range India competing successfully with

established international brands in this range. With the increase in dealer network and product

range ITL is set to give a major boost to its export volume and build the Sonalika brand

internationally. Crossing new horizon very day.

International Clients

CNCI

MG ROVER

POWER TRAIN

RENAULT

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YANMAR

Future Projects

ICML in technical collaboration with Italy's Pininfarina for its 'World Car'

ICML’s idea to innovate world cars by 2010 in India & Europe seems to be coming to a full

circle. These world cars will now roll on Italian engineering as Pininfarina, apart from the

designing support will also provide consultancy support to the making of these cars. With the

engineering of Pininfarina, these cars would be unique in terms of safety, design and styling

which are strongly associated with Pininfarina.

The entire engineering and the designing of the car would be carried out under the keen

supervision of Mr. Pininfarina in Italy. The objective is to make cars appealing to different

markets and segments. The cars will have high standards of safety and engineering. The quality

would be at par with global products. This will be a versatile platform having a family of

vehicles that will include SUV’s, MUV’s and high end luxury cars. Designed by the world

famous design house, Pininfarina, these vehicles would comprise high-end aesthetic features

that will suit the sensibilities of a sophisticated buyer in a most suitable manner. ICML is

investing approx. Rs 700 Cr. initially on this project.

Pininfarina, the Italian auto giant, has some bigger plans in store for India. It is in the planning

to set up a global hub in India in two to five years and desires to work with some major Indian

automobile companies. Pininfarina caries the versatility to offer designs for small cars to

luxury ones. The company believes that India is soon going to be the next global auto market

which is also one of the reason for Pininfarina to venture into this auto market.”

Sonalika to set up Rs 250 crore tractor unit near Patna in Bihar

Sonalika Group, one of the top 5 tractor manufacturers in India , plans to invest Rs 250 crore to

set up a unit that will roll out 40,000 tractors and 8,000-10,000 agriculture implements a year.

32

The group aims to strengthen its presence in the eastern Indian states of Bihar, Orissa and West

Bengal. The new facility, located near Patna in Bihar, is slated to become operational in one

year.

CHAPTER-4

Objectives of Study

1) To know about the customers perception regarding purchase of tractor.

2) To analyze the factors which influences purchase of a tractor.

3) Compare the different tractors available in the market in the terms of performace and

33

Appearance

4) To highlight the considerable factors which leads to customer satisfaction.

CHAPTER-5(A)

RESEARCH METHODOLOGY

Managers need information in order to introduce products and services that create value in the

mind of the customer. But the perception of value is a subjective one, and what customer’s

value this year may be quite different from what they value next year. As such, the attributes

34

that create value cannot simply be deduced from common knowledge. Rather, data must be

collected and analyzed. The goal of marketing research is to provide the facts and direction that

managers need to make their more important marketing decisions. To maximize the benefit of

marketing research, those who use it need to understand the research process and its

limitations.

MARKETING RESEARCH Vs. MARKET REASERCH

These terms often are used interchangeably, but technically there is a difference.

Market research deals specifically wit the gathering of information about a market’s size and

trends. Marketing research covers a wider range of activities. While it may involve market

research, marketing research is a more general systematic process that can be applied to a

variety of marketing problems.

The Value of Information

In general, the value of information is determined by:

The ability and willingness to act on the information.

The accuracy of indecisiveness that would exist without the information.

The accuracy of information

The amount of variation in the possible results.

The level of risk aversion

The reaction of competitors to any decision improved by the information

The cost of the information in terms of time and money.

The Marketing Research Process

Once the need for marketing research has been established, most marketing research projects

involve these steps:

Define the problem

Determine research design

Identify data types and sources

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Design data collection forms and questionnaires

Determine sample plan and size

Collect the data

Analyze and interpret the data

Prepare the research report

Problem Definition:

The decision problem faced by management must be translated into a market research problem

in the form of questions that define the information that is required to make the decision and

how this information can be obtained. Thus, the decision problem is translated into a research

problem. For example, a decision problem may be whether to launch a new product. The

corresponding research problem might be to assess whether the market would accept the new

product.

The objective of the research should be defined clearly. To ensure that the true decision

problem is addressed, it is useful for the researcher to outline possible scenarios of the research

results and then for the decision maker to formulate plans of action under each scenario. The

use of such scenarios can ensure that the purpose of the research is agreed upon before it

commences.

Research Design

Marketing research can classified in one of three categories:

EXPLORATORY RESEARCH

DESCRIPTIVE RESEARCH

CAUSAL RESEARCH

36

These classifications are made according to the objective of the research. In some cases the

research will fall into one of these categories, but in other cases different phases of the same

research project will fall into different categories.

Exploratory Research has the goal of formulating problem more precisely, clarifying

concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming

hypotheses. Exploratory research can be performed using a literature search, surveying certain

people about their experiences, focus groups and case studies. When surveying people,

exploratory research studies would not try to acquire a representative sample, but rather, seek

to interview those are knowledgeable and who might be able to provide insight concerning the

relationship among variables. Case studies can include contrasting situations or benchmarking

against an organization known for its excellence. Exploratory research may develop

hypotheses, but it does not seek to test them. Exploratory research is characterized by its

flexibility.

Descriptive Research is more rigid than exploratory research and seeks to describes of a

product, determine the proportion of the population that uses a product, or predict future

demand for a product. As opposed to exploratory research, descriptive research should define

questions, people surveyed, and the method of analysis prior to beginning data collection. In

other words who, what, where, when. Why, and how aspects of the research should be defined.

Such preparation allows one the opportunity to make any required changes before the costly

process of data collection has begun. There are two basic types of descriptive research:

longitudinal studies and cross-sectional studies. Longitudinal studies are time series analyses

that make repeated measurements of the same individuals, thus allowing one to monitor

behavior such as brand switching. However, longitudinal studies are not necessarily

representative since many people may refuse to participate because of the commitment

required. Cross-sectional studies sample the population to make measurements at a specific

point in time. A special type of individuals who experience the same event within the same

time interval over time. Cohort analyses are useful for long-term forecasting of product

demand.

37

Causal research seeks to find cause and affect relationships between variables. It

accomplishes this goal through laboratory and field experiments.

Data Types and Sources

Secondary Data

Before going through the time and expense of collection primary data, one should check for

secondary data that previously may have been collected for other purposes but that can be used

in the immediate study. Secondary data my be internal to the firm, such as sales invoices and

warranty cards, or may be external to the firm such as published data or commercially

available data. The government census is a valuable source of secondary data.

Secondary data has the advantage of saving time and reducing data gathering costs. The

disadvantages are that the data may not fit the problem perfectly and that the accuracy may be

more difficult to verify for secondary data than for primary data.

Some secondary data is republished by organizations other than the original source. Because

errors can occur and important explanations may be missing in republished data, one should

obtain secondary data directly form its resource. One also should consider who the source is

and whether the results may be biased.

Whether the data is useful in the research study. How current the data is and whether it applies

to time period of interest.

Errors and accuracy –whether the data is dependable and can be verified.

Presence of bias in the data.

Specifications and methodologies used, including data collection method, response data rate,

quality and analysis of data, sampling size and sampling technique, and questionnaire design.

Primary Data

Often, secondary data must be supplemented by primary data originated specifically for the

study at hand. Some common types of primary data are:

Demographic and socioeconomic characteristics

38

Psychological and lifestyle characteristics

Attitude and opinions

Awareness and knowledge- for example, brand awareness

Intentions – for, example, purchase intentions. While useful, intentions are not a reliable

indication of actual future behavior.

Motivation – a person’s motives are more stable than his/her behavior, so motive is a better

predictor of future behavior than is past behavior.

Primary data can be obtained by communication or by observation. Communication involves

questioning the respondent’s either verbally or in writing. This method is versatile, since one

need only to ask for the information; however, the response may not be accurate.

Communication usually is quicker and cheaper than observation. Observation involves the

recording of actions and is performed by either a person or some mechanical or electrical

device. Observation is less versatile than communication since some attribute of a person may

not be readily observable, such as attitude awareness, knowledge, intention, and motivation.

Observation also might take longer since observes may have to wait for appropriate events to

occur, through observation using scanner data might be quicker and more cost effective.

Observation typically is more accurate than communication.

Personal interviews have an interviewer bias that mail- in questionnaires do not have. For

example, in a personal interview the respondent’s perception of the interviewer may affect the

responses.

Questionnaire Design

The questionnaire is an important tool for gathering primary data. Poorly constructed questions

can result in large errors and invalidate the research data, so questionnaire should be tested

thoroughly prior to conducting the survey.

39

Measurement Scales

Attributes can be measured on nominal, interval, ordinal and ratio scales.

Nominal Scale are simply definitions, with only permissible mathematical use being for

counting. Example: social security numbers.

Ordinal Scale are used for ranking. The interval between the numbers conveys no meaning.

Median and mode calculations can be performed on ordinal numbers. Example; class ranking

Interval Scale maintains an equal interval between numbers. These scales can be used for

ranking and for measuring the interval between two numbers. Since the zero point is arbitrary,

ratios cannot be taken between numbers on an interval scale; however, mean median, and

mode are all valid.

Example: temperature scale

Ratio Scale are referenced to an absolute zero values, so ratio between numbers on the scales

are meaningful. In addition to mean, median, and mode, geometric average also are valid.

Example: weight

Sample Plan

The sampling frame is the pool from which the interviews are chosen. The Telephone books

often are used as a sampling frame, but have some shortcomings.Telephone books exclude

those households that do not have telephones and those Households with utilized numbers.

40

Since a certain percentage of the numbers Listed in a phone book are out of service, there are

many peoples who have just moved who are not sampled. Such sampling biases can be

overcome by using Random digit dialing. Mall intercept represent another sampling frame,

through There are many people who do not shop at malls and those who shop more often will

be over- represented unless their answers are weighted in inverse proportion to their frequency

of mall shopping.

In designing the research study, one should consider the potential errors. Two Sources of errors

are random sampling errors are random sampling error and non-Sampling errors. Sampling

errors are those due to the fact that there is a non-zero Confidence interval of the results

because of the sample size being less than the Population being studied.

Non –sampling errors are those caused by faculty coding, Untruthful responses, and respondent

fatigue, etc.

There is a trade off between sample size and cost. The larger the sample size, the smaller the

sampling errors but higher the cost. After a certain point the smaller sampling error cannot be

justified by the additional cost.

While a larger sample size may reduce sampling error, it actually may increases the total error.

There are two reasons for this effect. First, a larger sample size may reduces the ability to

follow up on non-responses. Second, even if there is a sufficient number of Interviewers may

results in a less uniform interview process.

Data Collection

In addition to the intrinsic sampling error, the actual data collection process will introduce

additional errors. These errors are called non-sampling errors. Some non sampling errors may

be intentional on the part of the interviewers, who may introduce a bias by leading the

41

respondent to provide a certain response .The interviewers also may introduce uniintential

errors, for example, due to not having a clear understanding of the interview process or due to

fatigue.

Respondent also may introduce errors. A respondent may introduce intentional errors by laying

or simply by not responding to a question. A respondent may introduce uniintential errors by

not understanding the question, guessing, not paying close attention, and being fatigued or

distracted.

Such non-sampling errors can be reduced through quality control technique.

Data Analysis-Primary Steps

Before analysis can be performed, raw data must be transformed into the right format. First, it

must be edited so that errors can be corrected or omitted. The data must then be coded; this

procedure converts the edited raw data into number or symbols. A code cook is created to

document how the data was coded. Finally, the data is tabulated to count the numbers of

samples falling into various categories sample tabulations count the occurrences of each

variable independently of the other variables. Cross tabulations, also known as contingency

tables or cross tabs, treats two or more variables simultaneously. However, since the variables

are in a two dimensional table, cross tabbing more than two variables is difficult to visualize

since more than two dimensions would be required. Cross tabulation can be performed for

nominal and ordinal variables.

Cross tabulation is the most commonly utilized data analysis method in marketing

research. Many studies take the analysis no further than cross tabulation. This technique

divides the sample into sub-groups to show how the dependent variable varies from one

subgroups to another. A third variable can be introduced to uncover a relationship that

initially was not evident.

Marketing Research Report

The format of the marketing research report varies with the needs with needs of the

Organisation. The report often contains the following section:

42

1. Authorization letter for research

2. Table of contents

3. List of illustrations

4. Executive summary

5. Research objectives

6. Methodology

7. Results

8. Limitations

9. Conclusions & recommendations

10. Appendices containing copies of questionnaire, etc

Scope of Study

This earth is full of talent. Only those people can survive who believe in hard work, dedication,

determination and lots of positive thinking. When we talking about competition within two

people or within two brands only that can survive who positioned himself differently and

appropriately. Marketing is very challenging and exciting field as solving of managerial

problems requires insight, experience, and analytical ability of the Marketing Manager. There

are different strategies which are used in the market for profitability. Now it is job of

Marketing Manager to decide which strategy or combination of method, he should adopt for

increasing the sales or profitability, depending on the objective. So marketing manager of any

firm should be updated or recognized with the current happenings in the market. He has

appropriate knowledge about current business environment. I have conducted a survey in

Hoshiarpur district to find out the current position of Sonalika tractor in the light of other

brands of tractor. The main purpose of study is to find out the farmers perception regarding

tractors and which source influence the most while purchase of particular brands of tractor.

Sample Design and Size

Sample is the part of universe or population. A sample is termed as a good sample if it

represents the whole population. Sample design is determined before data are collected. On the

43

basis of the sample, we should be capable enough to predict the behavior of the elements of

universe. The sampling unit of my study was Mukerian, Hajipur and Bhangala.

Sampling size refers to the number of items to be selected from universe to constitute a sample

and an optimum sample is one, which fulfills the requirement of efficiency, Sampling size

refers to the number of items to be selected from universe to constitute a sample and an

optimum sample is one, which fulfills the requirement of efficiency.

Farmers: 100

This sample size was selected on the basis of the recommendations by my training guide.

Data Collection

Data can be collected from either primary sources or secondary sources. My study is based on

primary data.

Primary data: For the purpose of my study, I have collected primary data with help of

interviews and questionnaires. This data was collected to know about the awareness,

perception, opinion and behavior of the respondents towards different brand of tractors. I make

a questionnaire for tractor users (farmers) and visit to 100 farmers to know there views

regarding tractors. I have conducted the interviews mostly from old farmers whom have

appropriate knowledge about tractors. My questionnaire covers all the information before the

purchase of tractor and after the purchase of tractor.

I have also made use secondary data for completion of my study. Various kinds of secondary

data used: Text books, Internet sites etc.

Research Approach

Survey is best suited for descriptive and analytical research. Survey are undertaken to learn

about people's knowledge, beliefs, preferences, satisfaction and so on and to measure these

magnitudes in the general public. Therefore, I have done this survey for Descriptive and

Analytical research process. Descriptive research includes surveys and fact finding enquiries of

44

different kinds. The main purpose is description of the state of affairs is noted down and

analytical research used to analyze the material and facts

Tools of Data Analysis

Keeping in view the objectives of the research and nature of data, I have applied various

statistical tools like Chi Square test, weighted average test.

CHAPTER-5(B)

Limitations of Study

Every Market Research study suffers from few limitations and my study is also suffering from

few constraints. They are listed as under:

Time & Resource Constraints

Due to limitation of time and resources, the coverage of this study has been restricted to few

selected respondents and dealers. If the time and resources provided would have been more

then the study could have been extended to wider area, to make it more comprehensive.

Space Boundary

As the study was restricted to Hoshiarpur district only. Thus its findings/results may not be

applicable to other areas.

Consumer Dynamism

Consumer behavior, in today’s world is very dynamic. Thus, there is every possibility that over

a period of time, the findings of today might not be applicable.

CHAPTER-6

Data Interpretation and Analysis

Table 1: Tractor being used currently:-

45

Tractor name Percentage

Sonalika 10

Swaraj 24

Mahindera 16

John Deere 0

Massey Ferguson 24

Farmtrac 25

Escort 1

Interpretation: - From the survey conducted we see the leading tractor in terms usage is

Farmtrac with 25%. It is followed by Swaraj and Massey Ferguson with equal percentage of

24%. Mahindera comes third with 16% followed by Sonalika with 10%.

Table 2: What people expect from a tractor?

Factor Percentage

46

Road Speed 9

Ground Clearance 12

Less Maintenance 19

Availability of Workshops/Mechanics 25

Good Resale Value 35

Interpretation:- From the graph we see that the characteristic which people mostly think of

while purchasing a tractor is the Good Resale Value with 35% which is followed by

Availability of Workshops, Less Maintenance, Ground Clearance, Road Speed with 25%, 19%,

12%, 9% respectively.

Table 3: Tractor in case of fuel efficiency

Tractor name Percentage

47

Sonalika 12

Swaraj 16

Mahindera 36

John Deere 0

Massey Ferguson 29

Farmtrac 7

Escort 0

Interpretation: - On the basis of above data we see that in case of fuel efficiency Mahindera

comes out to be the leading tractor with 36% which is followed by Massey Ferguson, Swaraj

and Sonalika with 29%, 16% and 12% respectively.

χ² test application:

48

By applying Chi square test (χ²) we can analyze if there exists a significant difference between

Choice of factors for SONALIKA brand or not as follows:

Tractor in terms of fuel efficiency

Step 1: Set the hypothesis

Ho : Sonalika is fuel efficient.

Ha : Sonalika is not fuel efficient.

Step 2 ; Set the rejection criteria

Df= 6-1=5

At alpha 0.05 and df 5 the critical value from chi square table is 11.07

Step 3: Calculate Statistics:

Observed Expected O-E (O-E)² (O-E)² E

12 20 -8 64 3.2

16 16 0 0 0

36 16 20 400 25

0 16 -16 256 16

29 16 13 169 10.5625

7 16 -9 81 5.0625

Total 59.825

From the above table we see that the calculated value comes out to be greater then the critical

value. Thus Ho is rejected in this case. Thus Ha is accepted.

Table 4: Financial factor which influences most while purchasing a tractor:-

Influencing Factor Percentage

Price 21

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Loan Facility 70

Buy Back Scheme 6

Discount 3

Interpretation: - The data shows most of the people are attracted by the loan facility while

purchasing a tractor. The graph shows 70% of the people from the whole sample have

purchased the tractor on loan facility which is followed by the price of the particular tractor

with 21%.People are least attracted by the discounts with 3%.

Weighted Average Method

F.S Weight Respondents%age

Total weight

Price .4 21 8.4

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L.F .3 70 21

B.B.S. .1 6 0.6

Discount .2 3 0.6

From the above table we see that most of the respondents are attracted by loan facility.

Table 5: How did the customers come to know of the tractor they are currently making use of:-

Factor Percentage

Relatives 58

Wall Paintings 5

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Exhibitions 13

Supplier Visits 22

TV Advertisement 0

News Papers 2

Interpretation:-We see from the graph that most of the people came to know of the

tractor they are currently making use by their relatives with 58% followed by supplier visits,

exhibitions with 22% and 13% respectively.

Table 6: Most Affecting Factor Which Affect The Choice of A Particular Tractor: -

Factor Percentage

Brand Name 44

After Sale Services 2

Availability of Spare Parts 20

Kind of Work to Be Taken from 18

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TractorCoverage Area 11

Warrenty 5

Interpretation: - From the above graph we see that the factor which affect mostly the people

while purchasing a tractor is the Brand Name with 44% which is followed by the Availability

of Spare Parts with 20%. Kind of Work to be taken from the Tractor comes at third number

with 19% which is followed by Coverage Area with 12%.

Table 7: Problem Faced Mostly By the People in Their Tractors:-

Problem Percentage

Clutch Plate 24

Oil Leakage 18

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Front Lifting 28

Gear Box Noise 16

Slow Speed 14

Interpretation:- From the graph we see that the mostly faced problem by the people in their

tractors is Front Lifting with 28% which is followed by the problems namely Clutch Plate, Oil

Leakage, Gear Box Noise, Slow Speed with 24%, 18%, 16%, 14% respectively.

Table 8: Tractor on the basis of availability of spare parts

Tractor name Percentage

Sonalika 17

Swaraj 39

Mahindera 8

John Deere 0

Massey Ferguson 25

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Farmtrac 11

Escort 0

Interpretation: - From the graph based on the data the leading tractor in case of availability of

spare parts is Swaraj with 39% followed by Massey Ferguson and Sonalika with 25% and 17%

respectively.

Tractor in case of availability of spare parts

Step 1: Set the hypothesis

Ho : Sonalika spare parts are easily available.

Ha : Sonalika spare parts are not easily available.

Step 2: Set the rejection criteria

Degrees of freedom= 6-1=5

At alpha 0.05 and df 5 the critical value from chi square table is 11.07

Step 3: Compute Statistics

Observed Expected O-E (O-E)² (O-E)² E

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17 20 1 1 0.0625

39 16 19 361 18.05

8 16 -8 64 4

0 16 -16 256 16

25 16 9 81 5.0625

11 16 -5 25 1.5625

Total 44.74

Interpretation: - From the table we see that the calculated value is greater than the critical

value. Thus Ho is rejected and Ha accepted. Thus Sonalika spare parts are not easily available.

Table 9: Tractor in case of overloading:-

Tractor name Percentage

Sonalika 38

Swaraj 18

Mahindera 12

John Deere 1

Massey Ferguson 1

Farmtrac 30

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Escort 0

Interpretation: - According to the graph based on the data best tractor in case of overloading

is Sonalika with 38%. It is seen that the close competitor of Sonalika is Farmtrac having 30%

which is followed by Swaraj with 18%.

Tractor in case of overloading

Step 1. Set the hypothesis

Ho: Sonalika is not good in case of overloading.

Ha: Sonalika is good in case of overloading.

Step 2. Set the rejection criteria

Degrees of freedom: n-1= 6-1=5

At alpha = 0.05 and df 5 the critical value from the chi square distribution table is 11.07

Step 3: Compute the test statistics

Observed Expected O-E (O-E)² (O-E)² E

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38 16 22 484 30.25

18 16 2 4 0-25

12 20 -8 64 3.20

1 16 -15 225 14.0625

1 16 -15 225 14.0625

30 16 14 196 12.25

Total 74.075

Interpretation: - From the above table we see that the calculated value is greater than that of

the critical value. Thus the hypothesis Ho is rejected and Ha is accepted thus Sonalika is good

in case of overloading.

Table 10: Most attracting tractor in shape:-

Tractor name Percentage

Sonalika 27

Swaraj 8

Mahindera 20

John Deere 0

Massey Ferguson 5

Farmtrac 40

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Escort 0

Interpretation: - From above graph we see that the leading tractor in terms of shape is

Farmtrac with 40% followed by Sonalika with 27% which is followed by Mahindera, Swaraj,

and Massey Ferguson with 20%, 8%, 5% respectively.

Table 11: Tractor designed ergonomically

Tractor name

Percentage

Sonalika 37

Swaraj 13

Mahindera 16

John Deere 3

Massey Ferguson 16

Farmtrac 15

Escort 0

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Interpretation: - On the basis of above graph we see that leading tractor which is designed

ergonomically is Sonalika with 37% which is followed by Mahindera and Massey with equal

percentage of 16%.

Tractor designed ergonomically

Step 1 : Set the hypothesis

Ho : Sonalika is nit designed ergonomically.

Ha : Sonalika is designed ergonomically.

Step 2: set the rejection criteria

Df= 6-1=5

At alpha 0.05 and df 5 the critical value from chi square table is 11.07

Step 3: Calculate Statistics:

Observed Expected O-E (O-E)² (O-E)² E

37 16 21 441 27.5625

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13 16 -3 9 0.5625

16 20 -4 16 0.8

3 16 -13 169 10.5625

16 16 0 0 0

15 16 -1 1 0.0625

Total 39.55

Interpretation: - From the above table we see that the calculated value comes out to be greater

then the critical value. Thus Ho is rejected in this case. Thus Ha is accepted.

Table 12: How did people describe Sonalika Tractor on the following factors?

Factor Percentage

Expensive 31

High Quality 18

Well Built 45

Good Value for Money 6

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Interpretation: - It is clear from the graph that 45% of the people say that Sonalika is the Well

Built tractor which is followed by 31% of the people saying it is expensive. Remaining 18%

say it is High Quality followed by 6% of the people saying it is a Good Value for Money.

CHAPTER-7

Recommendation and Suggestion

While interacting to the farmers, I noticed that number of farmers want lock system in

tractor. They claim that there is no tractor in the market with this facility. So company

has to produce tractors with lock system facility.

Keeping in view the increase competition, the company should increase there warranty

period and sales promotion activities to built their brand image.

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Keeping in view the local manufacturing, company should position itself as most

service providing brand of tractors in the mind of farmers. So that there should be no

problem for farmers regarding the maintenance of their tractors. With this type of

facility the company can position itself differently which will be helpful in today’s

scenario.

Training should be given to the salesmen on how to increase sales through building

better relationship and handling promotion material efficiency.

Sales executives of the company should try to solve the grievances of dealers as early

as possible which will reduce the risk that dealers will shift to other brands.

To build brand image company can work on there promotional tools differently. For

example, there should be visit to the farmer’s house that uses Sonalika tractor and

consultation with them regarding the tractor. With this interaction company can

maintain their relationship and also can find current problems in there tractors.

There is less emphasis on advertisement of tractors. By increasing the advertisement

expenditure company can create more awareness among the people.

Keeping in view the requirements of the farmers Sonalika should produce tractors with

lock facility.

The resale value of the Sonalika tractor is very low. The tractor gets into bad condition after two to three years. As we have found most of the farmers purchase tractor on the basis of tractor’s resale value thus it creates problem on the part of Sonalika.

The wear and tear of the tractor is very high leads to lot more maintenance of the tractor.

The tractor is lot more noisy while operation. So Sonalika should work on it.

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CHAPTER-8

Conclusion

In the end we can say that Sonalika tractors are doing well in sub continent. This survey shows

that Farmtrac is leader among these six brands of tractors. In my area of study Farmtrac is at

top because of its durability, less maintenance and good resale value. Mahindra is in second

position followed by Sawraj and Sonalika. The main feature of M&M which is most

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considered by the farmers is most fuel efficient tractor. Sonalika is termed as good value for

money. According to some farmers Sonalika group uses different components from different

brands of tractor. They also claim that the durability of Sonalika tractor is not as well as other

brand of tractor. In my survey I come to know that John Deere is one of the emerging Brands

of tractor. Spare parts of John Deere are not easily available in the market which is major cause

of its fewer shares in the market.

CHAPTER-9

ANNEXURE

QUSTIONNAIRE

Name:

Address:

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Contact Nos. Mobile: Landline:

Tractor being used currently:

Mahindra & Mahindra Sonalika John Deere

Farmtrac Sawraj Massey Ferguson

Others

Year & Month of Purchase:

Q: 1 What do you expect from a tractor? Please allocate points out of 100 to each option.

S.No. Options Available Points Given

1. Road Speed

2. Ground Clearance

3. Less Maintenance

4. Availability of Workshops/Mechanics

5. Good Resale Value

Q: 2 What financial sector influence you most while having a tractor? Please tick any of the following option.

Price Loan Facility Buy Back Scheme

Discounts

Q: 3 How much does these sources influence the purchase of a particular brand of tractor?

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Relatives Neighbours Mechanics

Spare Parts Shops Old Customers

Q: 4 How did you come to know of the tractor you are currently making use of?

TV Advertisement Relatives Wall Paintings

Exhibitions News Papers Supplier Visits

Relatives

Q: 5 To what extent does these factors affect the choice of tractor? Rank the following factors on the scale of 1 to 6 (1 stands for most affecting factor 6 for least affecting factor) S. No. Factors Affecting Rank

1. Brand Name

2. After Sale Services

3. Availability of Spare Parts

4. Kind of work to be taken from tractor

5. Coverage Area

6. Warranty

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Q: 6 What are the problems faced while using a tractor? Please rank the following factors on the scale of 1 to 6 (1 stands for the most important problem of the following & 6 for the least important)

S. No. Problems Faced Rating

1. Clutch Plate Problem

2. Oil Leakage

3. Front Lifting

4. Gear Box Noise

5. Differential Noise

6. Slow Speed

Q: 7 According to you which tractor’s spare parts are easily available?

Sonalika Escort Mahindra & Mahindra

John Deere Sawraj Farmtrac

Q: 8 Which tractor according to you is most fuel efficient?

Sonalika Escort Mahindra & Mahindra

John Deere Sawraj Farmtrac

Q: 9 Which of the following tractors perform better in case of “Overloading”?

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Sonalika Escort Mahindra & Mahindra

John Deere Sawraj Farmtrac

Q: 10 How would you rate the following tractors on the basis of their appearance? Please rate them on the scale of 1 to 6 (1 stands for the most attracting appearance & 6 for the least attracting in appearance)

Sonalika Escort Mahindra & Mahindra

John Deere Sawraj Farmtrac

Q: 11 Which of the following tractors do you feel are designed “Ergonomically”?

Sonalika Escort Mahindra & Mahindra

John Deere Sawraj Farmtrac

Q: 12 How would you describe Sonalika tractor on the following attributes?

Expensive High Quality Well Built

Good Value for money

Q: 13 What is the level of satisfaction you have from your tractor?

Not Satisfied Average Satisfied

Highly Satisfied

Q: 14 What are the various facilities you would like to add in your tractor? Please specify in few words

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CHAPTER-10

Bibliography

References :-

Kotler Philip, Marketing Management, Pearson Publisher Ltd, New Delhi

Statistical Methods by S.P.Gupta

Concepts & practices of Research Methodology by HARPREET SINGH.

MAGAZINES:

Company pamphlets

WEBSITES:

www.sonalika.com

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www.google.co.in

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