ACKNOWLEDGEMENT I extend my

ACKNOWLEDGEMENT

I extend my sincere thanks to all those people who have helped me in the successful execution of this project with their valuable suggestions.
I am deeply indebted to all those people whose work I have referred to this project. I must owe a deep sense of gratitude towards my teachers for their kindness and encouragement in various stages of the project.
This moment of the thesis is one of the prides that I opportunity in this stand of my career to express my sincere efforts within this limited time. Finally I would like to pay regards to my family without whose inspiration and monetary aid this project was impossible.
PREFACE
This project report pertains to the making of a project SUMMER TRAINING of M.B.A. curriculum.

The PURPOSE of this project is to make the students have thorough knowledge of the topics given to them. I learned a lot from the hard work I put in to collect information regarding the same, which would be of great use in my near future as a professional.
Justification cannot be done to whatever I have learn t within a few pages but I have still tried my best to cover as much as possible about “Consumer Perception Towards Agriculture Tractors (60 HP Class): A Comparative Study of ESCORT & ESCORT with others” in this report.
Being students of Master in Business Administration, we need to be aware of the organization internal environment. Summer training helps us to understand these concepts related to the organization.
INDEX
Sr no. Particulars Page No. THE EXECUTIVE SUMMARY 1
CHAPTER 1: INTRODUCTION 2 CHAPTER 2: TRACTOR INDUSTRY OF INDIA 3 CHAPTER 3: COMPANY PROFILE ORIGIN OF THE COMPANY INDIAN INDUSTRIAL ENVIRONMENT BUSINESS OF ESCORT GROUP 4 CHAPTER 4: COMPARISON 5 CHAPTER 5: OBJECTS OF PROJECT 6 CHAPTER 6: RESEARCH METHODOLOGY 7 CHAPTER 7: INTERPRETATION AND ANALYSIS 8 CHAPTER 8: PRODUCT LIFE CYCLE OF ESCORT TRACTOR SEGMENTATION & TARGETING

9 CHAPTER 9: FINDINGS SUGGESTIONS SUMMARISATION CONCLUSION SWOT ANALYSIS LIMITATIONS BIBLIOGRAPHY QUESTIONNAIRE
THE EXECUTIVE SUMMARY
PROJECT UNDERTAKEN BY ME

The project studied by me in Indian Tractor Company, Nellore was “Consumer Perception towards Agriculture Tractors (60 HP Class): “A Comparative Study of ESCORT & ESCORT and Escort” It helps to make aware company regarding the various aspects of brand preference performed at regular basis to cement.

HOW IT WAS UNDERTAKEN

A survey was conducted by me among the consumers of tractors in Nellore. During the survey I tried my best that more and more questionnaire to be filled from the consumers so that to conclude the results gracefully.

I was also appreciated by the support of the project guide and Managing Director of Indian Tractor Company, Nellore, who guided me the basic fundamentals of Tractor marketing performed by the company.
SWOT ANALYSIS

STRENGTH:
* Over the years the company has emerged as one of the top players in the world in terms of number of tractors sold. This gives a clear indication that the company’s market share is one of its biggest strengths.
* The company’s ability to introduce new products in the market and to generate sales from those new products is a major strength. The reason being that this is very essential for any company, for its survival in the long run.
* The company has established its brand name in other countries of the world as well.

WEAKNESS:
* Tough Competition
* Expensive

OPPORTUNITIES:
* By introducing the benefits and importance of the tractor to every group, companies can evolve more.

THREATS:
* The company has a history of having invested in unrelated diversifications such as telecom, holiday and resort inns, financial services, etc. which it has hived off as subsidiaries from time to time when these turned unmanageable. This is a cause for concern as such diversifications could divert the company’s attention from its core business. It is a dangerous tendency as it leads to destruction of shareholders value.
* With effect of the competition the market may not get shrunk.
LIMITATIONS

Nothing is perfect in this mandate world and this study is no exception. Given below are the limitations of the study so that the findings of the study may be understood in their right perspective.

1. The result of this research cannot be termed as making a fair representation of the perception of the population.
2. Study was confined to the city of Nellore.
3. Sample size taken was 100 respondents, the result might have varied had there been a larger sample size.
4. It is very much possible that some of the respondents may have given the incorrect information.
5. The last but the most important point to that survey was carried through Questionnaire and the Questions were based on perception. Most important is positioning. But there may be certain aspects not taken into consideration.

CHAPTER 1: INTRODUCTION
India is poised to become a major Auto hub in the near future. Indian tractor industry is changing rapidly, so is the mindset of Indian Consumers. We, at the Great Lakes Institute of Management, took an initiative to find out that whether the changing ground realities have also changed the India Auto Consumer’s mindset vis-a-vis their perception of the abilities of various Indian and foreign Auto manufacture to deliver the much sought after attributes in a tractors
With the latest numbers showing U.S. vehicle sales slumping to a 15-year low, automakers are wondering where their next buyer is coming from. Clearly, winning new customers was required them to develop more reliable, exciting, and fuel-efficient vehicles, a task that could take years. But a recent survey suggests that automakers have opportunities to improve their business performance in the short term by focusing more on the customers they already have. Especially in these tough times for the industry, one of the most powerful techniques for converting buyers into die-hard fans is providing exceptional after-sales service.
Bain & Co. surveyed more than 1,800 customers who had purchased all the automotive brands sold in the U.S., to better understand their ownership and sales experience and to assess their brand loyalty. We asked owners to rate, on a scale of zero to 10, how likely they were to recommend their vehicle to a friend or colleague. By subtracting the percentage of “detractors” who gave scores between zero and 6, from the percentage of “promoters” who gave a score of 9 or 10, we can calculate a “Net Promoter Score” (NPS). NPS is already used in dozens of industries to determine how deep loyalty to a particular company runs among its customers, and how it stacks up against its competitors when it comes to customer loyalty.
The NPS survey for automakers revealed two important findings. First, promoters are nearly 10 times more likely than detractors to repurchase or lease a vehicle of the same make or brand as their current one. Second, promoters are far more likely to recommend their vehicle brand to a friend. Each promoter provides nearly five purchase referrals, while each detractor dissuades two prospective buyers
High among the factors that create promoters-and help sustain their loyalty-is a strong after-sales service experience. The reason is simple: Dealer service is the key point of contact with customers at the critical time when most people are weighing their next vehicle purchase. Owners’ brand enthusiasm tends to erode as the vehicle ages and the warranty expires. But it is precisely at this point-about four years after the initial sale-that the leaders capitalize on their loyalty advantage by using maintenance visits as opportunities to reinforce their ties with promoters and win over detractors.
Excellent service not only reinforces relationships with customers who already feel loyal to a brand. It can also defuse ill will that causes disaffected customers to bad-mouth the brand. Indeed, the brand leaders excel especially at turning unplanned repair visits-those critical moments of truth on which a customer relationship can hinge-into opportunities to strengthen customer bonds. While most carmakers aim to ensure that the service experience does as little harm as possible, the leaders set out to surprise customers with ease and convenience when they expect it least and value it most.
The power of nurturing promoters shows up dramatically in data showing how severe the damage can be when a repair experience doesn’t go well. Overall, the NPS of loyalty leaders whose vehicles have not needed a repair is a stellar 85. It falls off to a respectable 77 when the vehicle needs a mechanic’s attention. But among loyalty laggards, an unscheduled stop in the shop resulted in scores plummeting 29 points to a dismal 19. Owners of those vehicles are angry, and they are going to tell their friends and colleagues about it.
Ultimately, the biggest influence on customer loyalty and affinity for the nameplate is the quality of the vehicle itself. But a bad after-sales experience can erode it just as quickly. In the economy they face today, automakers need to rethink how they win and retain every customer they have.
Tractor owners are in for an enjoyable ride this summer. The cut throat competition in the auto industry has forced major players to focus on the after sales services, an important part of owning a tractor. No wonder, the Motown is full of service offers this summer.

SCOPE OF THE STUDY

1. The study has been done for the tractors so more or less it helps in understanding the consumer perception towards the tractors market.

2. The study can help in analyzing certain weak point, improving on which a company can overcome the low sales of its tractors in Nellore region.

COMPANY OVERVIEW

CHAPTER 2: TRACTOR INDUSTRY OF INDIA

Now a days , people prefer tractor with good features and of good quality.a person who are going to purchase a tractor wants that tractor should be of well known brand, it should has good looks, better driving on road and on field , it should be very powerfull and fuel efficient.
So , tractor industry in these days has many players. These are.

(Escort, Powertrac and Farmtrac)
Escorts Ltd began local manufacture of Ford tractors in1971 in collaboration with ford, UK and total production climbed steadily to 33,000 in 1975reaching 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.

HMT Tractors
HMT is a large public sector unit and began manufacturing Agricultural Tractors in 1972 under the HMT brand name with technology acquired from Zetor of the Czech Republic. It manufactures its tractors in Pinjore, Mohali in a large factory that also manufactures machine-tools, and Hyderabad It has a capacity of 20,000 tractors per annum. In the Machine-tool company is a large foundry. It produces tractors in a range from 25 HP to 75 HP. For a short time, HMT exported tractors to the USA under the Zebra brand, which were marketed by Zetor distributors and dealers there. The company is controlled by the Ministry of Heavy industry that provides, on a monthly basis to the public its financial performance.

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 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.

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 Agricultural 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. CLASS has opened a new plant in Punjab at Morinda in 2006.

TAFE
Tractors and Farm Equipment Limited (TAFE) was established in 1961 to manufacture and market Massey Ferguson tractors and related farm equipment in India. AGCO, the owner of Massey Ferguson, now owns 24% of TAFE. Tractors are built and sold in India under both the TAFE and Massey Ferguson brands, and exported under both brands as well. In 2005, TAFE bought the Eicher Motors tractor and engine division.

New Holland
New Holland Ag’s entry into India was facilitated by FIAT’s acquisition of Ford-New Holland in 1991. By 1998 New Holland Ag. (India) completed the construction of a new plant in Noida, near New Delhi, with a capacity of 5000 tractors in the 35 – 75 hp range. In 1999, New Holland Ag.’s parent company FIAT bought 70% of holdings of Case Corporation and created Case New Holland Global (CNH one of the top three tractor/agricultural/construction machinery manufacturers in the world), the new holding company New Holland Ag. (India). In 2000, the capacity of the Noida plant rose to 12,000 tractors per year and in 2007 the company manufactured 24,000 tractors for the domestic and export markets.New Holland India exports fully-built tractors to 51 countries in Africa, Australia, South-East Asia, West Asia, North America and Latin America.The India plant of New Holland was originally built in 1998 to cater only to India domestic market. However due to slow down of economy by year 2001-2002 and slump in domestic demand, it became a challenge to utilize the installed capacity of the factory.Hence the company started looking its market beyond India borders. Its then CEO Mario Gasparri guided the vision and handed over the task of overseas business to its dynamic manager Bhanu Sharma. The efforts paid off well. Bhanu Sharma in capacity of Head-International Business Operations, took op the export volumes from the level of almost nil in 2003 to 8000 units in year 2007. The export business last year in 2007 contributed over 50% of the company business of total USD 250 millions.This also made New Holland the second largest tractor exporter from India after John Deer. In year 2007, India exported around 32,000 tractors of which 25% share was of New Holland

Background
In 1960, our parent company, Escorts, set up the strategic Agri Machinery Group (AMG) to venture into tractors. In 1965, we rolled out our first batch of tractors under the brand name of Escort. In 1969 a separate company, Escorts Tractors Ltd., was established with equity participation of Ford Motor Co., Basildon, UK for the manufacture of Ford agricultural tractors in India. In the year 1996 Escorts Tractors Ltd. formally merged with the parent company, Escorts Ltd. Since inception, we have manufactured over 1 million tractors. Technologies
Escorts AMG has three recognized and well-accepted tractor brands, which are on distinct and separate technology platforms. Farmtrac: World Class Premium tractors, with single reduction and epicyclic reduction transmissions from 34 to 75 HP. Powertrac: Utility and Value-for-money tractors, offering straight-axle and hub-reduction tractors from 34 to 55 HP. India’s No.1 economy range – engineered to give spectacular diesel economy. Escort: Economy tractors having hub-reduction transmission and twin-cylinder engines from 27 to 35 HP. Pioneering brand of tractors introduced by Escorts with unbeatable advantages.

Functional Excellence
Manufacturing Quality Assurance Materials Management Sales & Marketing
Knowledge Management Finance Human Resources Information Technology
Training
EIFM
Recently we have been informed by certain members of the public that they have received appointment letters and calls for job interview in our Company through e-mails/letters wherein they are inter alia demanding cash deposit either through certain banks or otherwise before interviews or issuance of appointment letter. These recruitment agencies/individuals are not only wrongfully using our registered trademark but also names of our officials to illegally trap innocent members of the public. Please note that such communications are intended to cheat and play fraud on the public.Our Company completely disassociates itself from such fraudulent practices of recruitment and does not authorise anybody to demand payment on its behalf to be made by any candidate to our Company or to anyone in the process of recruitment. We request the general public to not be misled by communications/e-mails as mentioned herein purportedly made by our Company. Our Company is also in the process of initiating both civil and criminal proceedings against such unknown persons and agencies. We hereby solicit the support of the general public in case they come across such a wrongdoing relating to recruitment purportedly being so offered by our Company which can be mailed at escortshrd@escorts.co.in.

ESCORTS LAUNCHES INDIA’S FIRST EXECUTIVE TRACTOR

SECOND CONSECUTIVE GREENTECH GOLD ENVIRONMENT AWARD FOR ESCORTS

ESCORTS GOES FOR THE POWER TRIP
Agri Machinery
Escorts has played a pivotal role in the agricultural growth of India for over six decades. Having pioneered farm mechanization in the country, we have been developing solutions to enhance agricultural productivity and improve quality of life in rural India. Taking a step forward, the company launched the ‘Jai Kisan’ initiative, a unifying platform to empower the Indian farmer and to make him self-reliant.

The fact that the farm mechanization is the key vector for enhancement of farm productivity and in many respects the catalyst for the next wave of farm mechanization has brought about two large customer centric initiatives to the fore at Escorts – New Products and variants that are aligned with changing and emerging applications & end usages and the shift of Escorts from being a standalone tractor manufacturer to being a complete ‘Farm Solution’ provider.

Escorts is laying greater emphasis on improvement, innovation and effective execution of its offerings. We are constantly evolving and creating new products to suit market demands. We are closely monitoring the quality of our products and re-gearing our strategies which are both customer and market focused. The launch of tractors fitted with 4 – Cylinder engines that are around 15% more fuel efficient than most other tractors in the market, or the entry segment tractor (Powertrac 429) to cater to the aspirations of small farmers and first time buyers, or the ‘XTRA Torque’ series of tractors that are meant specially for the emerging trends of using ‘rotary’ implements, or India’s first-ever INVERTER TRACTOR – have been all case in points where the farmers’ ‘cost of ownership’, his overall operating economics and his need for enhancing productivity have been supreme considerations for Escorts.

Recognizing the various and hu100cc y differentiated needs of today’s Indian farmer, Escorts has further unveiled its new ‘Jai Kisan Series’ of tractors. The ‘Escorts Jai Kisan Series’ focuses on maximizing farmer productivity by providing differentiated products that are well suited to agricultural, haulage, infrastructure as well as specialized applications. The new ‘Escorts Jai Kisan Series’ is a path breaking initiative that recognizes the market order for new & varied needs of the Indian farmer, changing tractor usage for specialized applications and usage of modern and heavy-duty implements & attachments, thereby offering wider options for agricultural, infrastructure as well as specialized applications for land development activities.

The Jai Kisan Series comes in five new categories –
ValueMaxx LoadMaxx AgMaxx InfraMaxx SuperMaxx While the VALUEMAXX is the variant for basic agricultural purposes, the LOADMAXX and AGMAXX variants specialize in haulage-based applications and specialized Agri-applications respectively. The SUPERMAXX series is ideal for all types of agriculture and non-farming purposes besides offering add-on applications for dual needs whereas, the INFRAMXX variant would specialize in infrastructure-based applications. The ‘Jai Kisan Series is currently available in the FARMTRAC line of Escorts tractors.
*
Product Potfolio
TRACTORS CROP SOLUTIONS LUBRICANTS ENGINE & GENSETS * FARMTRAC
* POWERTRAC
* ESCORT * Agriculture applications
* Non-agricuture applications * Suraksha * Escorts “G” Series Engines
* Escorts Gensets
Technologies
* Escorts Agri Machinery has three recognized and well-accepted tractor brands, which are on distinct and separate technology platforms.
* Farmtrac: World Class Premium tractors, with single reduction and epicyclic reduction transmissions from 34 to 75 HP.
* Powertrac: Utility and Value-for-money tractors, offering straight-axle and hub-reduction tractors from 34 to 55 HP. India’s No.1 economy range – engineered to give spectacular diesel economy.
* Escort: Economy tractors having hub-reduction transmission and twin-cylinder engines from 27 to 35 HP. Pioneering brand of tractors introduced by Escorts with unbeatable advantages.
Fuctional Excellence
* Manufacturing
* Quality Assurance
* Materials Management
* Sales & Marketing
* Finance
* Human Resources
* Information Technology
* Knowledge Management
International Subsidiaries
* Escorts AMG has one international subsidiary.
* Farmtrac Tractors Europe Sp.z o.o.in Poland.
* We now cater to 41 countries.

Beyond manufacture, Escorts has made substantial investments towards the modernisation of farm technology. The Escorts Training & Development Centre (ETDC) at Bangalore is a unique center where training is imparted in operation, maintenance and repair of farm machinery. It is among the few institutions of its kind in the world. Its programs are aimed at encouraging customers, dealers, engineers, mechanics as well as the field staff of Escorts, towards meeting its objective of enhancing agricultural productivity and improving quality of life in rural India.

*
TRX CRANES – THE GAME CHANGER

ESCORTS COMANSA-JIE ERECT THE WORLD’S HIGHEST COOLING TOWER

ESCORTS TRAINS DELHI METRO TEAM ON SAFE USAGE OF MOBILE CRANES
Home / Businesses / Construction Equipment
Construction Equipment

Escorts manufacturers and markets a diverse range of construction and material handling equipment like cranes, loaders, vibratory rollers and forklifts. The company was a pioneer in introducing the concept of Pick ‘n’ Carry hydraulic mobile cranes in the 70s in India and continues to be the world’s largest manufacturer of these cranes.
A nationwide network of 16 Sales Offices, 50 dealership locations, over 300 company trained dealers’ service engineers, gives it the best market reach in India for the Sales & Service of material handling and construction equipment.
With over 30 years experience in Construction Equipment Industry, Escorts has a proven track record in :
* Hydraulic Mobile Cranes
* Loaders
* Forklifts
* Vibratory Compactors

Today, it not only continues to be the largest mobile crane manufacturer in the country, but also the largest Pick ‘n’ Carry Hydraulic Mobile Crane manufacturer in the world.
While recording a rapid growth in Crane Industry we’ve also been able to steadily increase our presence in the field of Vibratory, Soil & Tandem Compactors. Escorts was the first to bring the concept of Vibratory Compactors in India in a big way, back in 80’s. Subsequently more models in Tandem Vibratory Compactors and heavy duty Soil Compactor range were added in technical collaboration with HAMM Germany. Recently, we’ve further strengthened the range with a 3T Shoulder Compactor. Today our range of compaction equipments is one of the most preferred in the market, and is being viewed as the most efficient and effective compaction solutions available in the country.
Along with Cranes and Compactors, we also manufacture Frontend loaders with payload capacity of 700kgs. Suitable for narrow lanes and confined spaces, these loaders are compact in design and are ideal for garbage handling, handing of chemicals, sands, small chips, etc.

Escorts also offers other material handing solutions like Forklifts from Daewoo Doosan Infracore Ltd., Korea and Articulated boom cranes from Fassi, Italy. In LPG Forklift category, the company enjoys a market share in excess of 85%.
This single-minded pursuit of precision and customer satisfaction has made us the 3rd largest in terms of Construction Equipment Sales unit per annum.
Product Portfolio
* MATERIAL HANDLING EQUIPMENT
o Pick and Carry cranes
o Crawler cranes
o Articulated boom cranes
o Tower cranes
o Forklift trucks
o Truck & All Terrain Truck cranes
* EARTH MOVING EQUIPMENT
o ESCORTS DIGMAX (BackHoe Loader)
* ROAD CONSTRUCTION EQUIPMENT
o Tandem Vibratory Compactors
o Vibratory Soil Compactors
o Wheel Loader
o Motor Grader
* UTILITY EQUIPMENT
o Electric/ Telecommunications

*
ESCORTS AUTO PRODUCTS IS SILVER SPONSOR AT ACMA AUTOMECHANIKA, NEW DELHI

SHOCK ABSORBERS FOR LML GEARLESS SCOOTERS

SUZUKI HONOURS EAP WITH BEST SUPPLIER AWARD
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Auto Products
The leading manufacturer of auto products in India for over four decades, Escorts Auto Products exhibits quality and reliability through its products in the automobile industry worldwide. Certified with ISO/TS 16949:2002, Escorts presents a combination of integrated manufacturing facilities, in-house state-of-the-art research and development, as well as advanced production, testing and validation facilities, which have enabled us to bring new and reliable products on a global platform.
Technical collaborations with Germany-based Fichtel & Sachs (now ZF Sachs) in 1966 and Japan-based Kayaba in 1998 have laid a strong foundation for us to deliver glo100cc y-benchmarked products. Value-added engineering is our forte and we have the versatility to produce an extensive range of auto components for various applications, ranging from Scooters and Motorcycles to Railways and Tanks.
Our extensive product basket caters to OEMs and replacement market in India and several other overseas markets for all vehicle categories including motorcycles, scooters, passenger cars, commercial vehicles, and multi-utility vehicles. We also design and manufacture specialised dampers and shock absorbers for railway and defence vehicles. Our ever-expanding replacement market network is strong at 300 dealers and more than 10,000 retailers expanding all over India, South Asia, Europe and the Middle East.
Manufacturing Strengths
The Escorts Auto Products manufacturing plant in Faridabad is spread across in an area of 225,500 sq.ft., and has the capacity to produce 3.2 million Shock Absorbers and Struts and 0.3 million Front Forks per annum. The plant features an Assembly Line, Sealing Plant, Component Cleaning, Powder Coating Plant, Grinding Lines, Spot Welding, Seam Welding Machine and Robo Welding Systems.
Our manufacturing processes have been duly certified by the international Quality Management System, TS-16949. For continuous improvement of our operations, we have adopted the ‘Cluster Approach’ under ACT-CII wherein six to eight companies work together under the leadership of ACMA counsellors on a common roadmap to assure customer satisfaction and value to our shareholders. The primary objective of this cluster approach is to work towards ‘lean manufacturing’.

From piston rod grinding to the final painting, and from parts manufacturing to product assembly, our processes are under constant scrutiny to achieve best product quality, performance and economic cost base for our customers. Key critical processes are kept in-house to ensure critical performance and safety of the product. Additionally, we use Poka Yokes to prevent defects and Kaizens for continuous improvement of quality.
Research and Development
The research, development and engineering departments of Escorts are committed to delivering optimally-designed products with robust features and quality to meet the life expectancy of any application. We are fully equipped to perform any kind of durability testing with the help of high-tech test facilities. Moreover, our four-decade long experience enables us to design and develop products for different segments of automotive applications as per the design and requirements of our customers.
All our new products are developed under international quality standards and extensively validated for DV and PV at highly advanced MTS machines and test benches operating under simulated and/or real time road and rail track recordings.

INDUSTRY PROFILE
Motor vehicle and parts manufacturers also have a major influence on other industries in the economy as well. Building motor vehicles requires vast quantities of materials from, and creates many jobs in, industries that manufacture steel, rubber, plastics, glass, and other basic materials. It also spurs employment for automobile and other motor vehicle dealers; automotive repair and maintenance shops; gasoline stations; highway construction companies; and automotive parts, accessories, and tire stores.
The motor vehicles manufactured in this industry include: automobiles, sport-utility vehicles (SUVs), vans and pickup trucks, heavy duty trucks, buses, truck trailers and motor homes. It also includes the manufacturing of the parts that go into these vehicles, such as the engine, seats, brakes, and electrical systems. According to the Federal Reserve, over 11 million motor vehicles were assembled in the U.S. in 2006. Building and assembling the many different parts of a car or truck requires an amazingly complex design, manufacturing, and assembly process.
In 2006, about 9200 establishments manufactured motor vehicles and parts. These ranged from small parts plants with only a few workers to huge assembly plants that employ thousands. By far, the largest sector of this industry is motor vehicle parts manufacturing. It has the most establishments and the most workers. Table 1 shows that about 7 out of 10 establishments in the industry manufactured motor vehicle parts-including electrical and electronic equipment; engines and transmissions; brake systems; seating and interior trim; steering and susvehicles sion components; air-conditioners; and motor vehicle stampings, such as fenders, tops, body parts, trim, and molding.
The next largest sector, in terms of number of establishments, is motor vehicle body and trailer manufacturing. In 2006, nearly one-fourth of establishments were engaged in this type of manufacturing. These establishments specialized in manufacturing truck trailers; motor homes; travel trailers; campers; and car, truck, and bus bodies placed on separately purchased chassis.
Automotive and light truck assembly plants make up the third largest sector. In 2006, about 5 percent of establishments that employ 23 percent of all workers in this industry, were engaged in assembling these smaller motor vehicles. A growing number of these assembly plants are owned by foreign automobile makers, known as “domestic internationals.” These foreign automobile manufacturers ovehicles assembly plants in the United States to be closer to their market, avoid changing exchange rates, and save transportation costs.
A typical automotive assembly plant can be divided into three major sections. In the first section, exterior body panels and interior frame are assembled and welded together. This work is mostly performed by robots, but may also require some manual welding. During this stage, the body is attached to a conveyor system that will move it through the entire assembly process. Throughout the entire process, numerous inspections are performed to ensure the quality of the work.
The painting process comprises the second section of the assembly plant where bodies of cars pass through a series of carefully ventilated, sealed paint rooms. Here, the bodies are dipped into chemicals to prevent rust and seal the metal. Then the bodies are primed, painted, and sealed with a clear coat.
Assembly of the vehicle comprises the third section of the automobile manufacturing process. Here, parts such as seats, dashboard, and the powertrain (engine and transmission) are installed. While machines assist with loading heavy parts, much of the assembly work is still performed by team assemblers working with power tools.
Industry Performance in 2012-13
Production
The cumulative production data for April-March 2013 shows production growth of only 1.20 percent over the same period last year. The industry produced 1,685,355 vehicles in March 2013 as against 1,845,868 in March 2012, which declined by (-) 8.70 percent.

Domestic Sales
The overall growth in domestic sales during April-March 2013 was 2.61 percent over the same period last year. While in March 2013 overall sales fell by (-) 7.76 percent over March 2012.
Passenger Vehicles segment grew at 2.15 percent during April-March 2013 over same period last year. Passenger Cars declined by (-) 6.69 percent, Utility Vehicles grew by 52.20 percent and Vans grew only by 1.08 percent during April-March 2013 as compared to the same period last year. However, in March 2013 passenger car sales further declined by (-) 22.51 percent over March 2012. Total passenger vehicles sales also declined by (-) 13.01 percent in March 2013 over same month last year.

The overall Commercial Vehicles segment registered de-growth of (-) -2.02 percent in April-March 2013 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) declined by (-) 23.18 percent, Light Commercial Vehicles grew at 14.04 percent. In March 2013, M&HCVs sales further declined by (-) 26.16 percent over March 2012.
Three Wheelers sales grew by 4.87 percent in April-March 2013. Passenger Carriers grew by 8.58 percent during April-March 2013 and Goods Carriers registered de-growth at (-) 9.20 percent during this period.
Two Wheelers registered growth of only 2.90 percent during April-March 2013. Scooters, mopeds and motorcycles grew by 14.24 percent, 1.53 percent and 0.12 percent respectively over same period last year. However, in March 2013 all sub-segments of two wheelers, scooters, motorcycles and mopeds registered de-growth at (-) 3.18 percent, (-) 8.32 percent and (-) 4.54 percent respectively.
Exports
During April-March 2013, overall automobile exports registered de-growth of (-) 1.34 percent compared to the same period last year. Passenger Vehicles grew by 9.02 percent, while the other segments like Commercial Vehicles, Three Wheelers and Two Wheelers fell by (-)13.35 percent, (-) 16.22 percent and (-) 0.72 percent respectively. In March 2013, Passenger Vehicles, Two & Three Wheelers grew by 3.07 percent, 3.51 percent and 7.50 percent respectively. While Commercial Vehicles declined by (-) 28.33 percent.
Escort:-
Farmtrac 60 DX :-

Farmtrac 60 DX World Class Tractor…
For First Class Farming Specification Performance data Powerful Engine Comfort Rated engine Power 60 HP category No. of cylinders 3 Bore x Stroke (m.m) 111.76×106.68 Transmission Type of Gear Box Constant mesh gears (8+2) Road Speed (At 2000 engine R.P.M. with rear tyre size 13.6×28) Maximum speed 29.48 k.m./Hr. Minimum speed 2.76 k.m./Hr. P.T.O. Speed 540 RPM (on 1600 engine RPM) (Single clutch transmission) Speed (Optional) 540 RPM (on 1800 engine RPM) (Duel Hydraulics Fully automatic depth & draft control 1500 k.g.
weighing capacity at horizontal linkage Tyres Front 6.00×16-8 PR Rear 13.6×28-8PR Brakes Fully sealed, water proof, dry disc brakes. Best in 60 H.P. category. It takes less time for more ploughing. Unbeatable pulling power makes haulage of trolleys easy. Powerful hydraulic capacity helps lift more goods and plough deeper with higher speed. Comfortable deluxe seat adjustable as per driver’s height and weigh. Constant mesh gear box makes gear shifting easy and comfortable as in a car. Tilted / rectangular foot platform for comfortable driving. Specially designed steering does not make you tired even after long hours of work. Properly mounted halogen headlight for maximum visibility at night. Smoke-less engine eliminates the problem of smoke on driver’s face while driving. Bigger fuel tank that last longer after refueling. World Class ADI* World class tractor exported to America, Europe, Asia, Africa, Australia and New Zealand. Fully sealed disc brake and front axle for total safety and freedom from recurring expenses. Side opening bonnet for easy servicing. Heavy front axle ensures safety by stopping the tractor- front from lifting up. Specially deigned adjustable front axle facilities ease of use in every situation. Tractor starts only in Neutral. This unique feature ensures extra safety and prevents accidents. For long lasting shine, special coating using C.E.D. paint technology. High engine life due to helical air passage to engine which reduces pressure on engine parts. Re-entrant type piston combustion chamber burns diesel completely and reduces consumption. Ring carrier and side drain pistons” help piston to be re-used after first overhaul. Side drain piston also reduces oil consumption. Cross-flow design blows out burnt gases completely and low temperature near valves enhances durability. Mechanical governor in diesel pump saves fuel and gives power with every drop of diesel.
CHAPTER 6: RESEARCH METHODOLOGY

The Research Methodology used by me for the purpose of this project is as follows:-

Research Design:-

The research design used here for this project is a combination of Exploratory & Explanatory designs. First a general know about of the various tractors and their market structure. Then a personal interaction with the people concerned is made to figure out the results.

Data Collection Method:-

According to the needed research of the project; I pursued both primary & secondary data collection methods. I have used Agri web sites related to tractors, some publications on the net, & tractor information broacher for secondary data collection. To ensure the accuracy of the results the primary data collection method used is the structured interview method.

Sampling:-

The sampling units in my project are Consumers. The sample size was small by following the convenience sampling method. There were queries for the persons interacted & the questionnaire has been attached at last.

SAMPLING SIZE
The sample size of my research is 100 consumers. Large samples give more reliable results that is why I tried my best to cover more users (consumers) in Nellore.

Sample Size – 100
Sample Unit – users (consumer)
Area of Survey – Nellore.

Data Availability: Data has been collected from the Users (Consumer) and Dealer of Indian Tractor Company.

Primary data:-
Preparing questionnaire which was distributed among consumers to get feedback. In this survey the more importance has been given to primary data than secondary data because it is more reliable.

Secondary data:-
The various sources for secondary data like books, pamphlets and small note sheets from the company. The secondary data was collected after choosing the topic, which is very practical to the research. It was collected from the company brochures and documents. This has been used in the profile of the organization. These types of Surveys are expensive and labour-intensive.

Training Organisation: Indian Tractor Company, Nellore

Project Guide: Mr. Vijay Kumar, Sales Manager
The Research stands for:-
1. To know how of the actual phenomenon occurring & exploring the new ideas with a clear & precise insight.
2. To test the hypothesis with being variables to be compared within their relationship.

Data Analysis & Interpretation:-
The statistical tools used by me are mainly average, Percentage, & comparisons etc. I would like to give brief points about

1. Questionnaire: – The questionnaires are given to respondent with no pressurization at all, i.e. he/she is free to provide the information whatever the concern is. One thing to be kept in mind those personal questions apart from name, address etc. should not be included.
2. Direct Interviews: – The direct interviews are one up against all the data collection tools just because one can judge that what a person is telling to the surveyor. Although it is time consuming but the information gathered is of much more weightage than others.
3. Sampling design, Procedure & Sample size:-A sample is always a part of the desired universe & it should represent each & every aspect of the study being conducted. The only thing is that the sample being chosen is of relevance & accurate source of information. My sampling design is based on random sampling because each element gets probability to be included & all choices made are independent of each other.

Need for study:
1. To get a practical outlook about theories learnt during the academic year.
2. To get knowledge of the present on going in consumer behavior.

CHAPTER 7: INTERPRETATION AND ANALYSIS

1. Age Group

20-30 Years 26 30-40 Years 42 40-50 Year 21 50 Above 11

With the results of the analysis, it is clear that most of the tractor users are from
the age 30-40.

2. Income Group

10000-20000 26 20000-30000 42 30000-40000 21 40000 Above 11

The main group is the one who has the salary between 20000 and 30000.

3. You belong to the following category of the society?

Professional (Farmer) 39 Student 18 Govt. Service 21 Businessman 22

Tractor is the need of the farmers and businessman too, thereby this category has maximum ownership of tractor alongwith Govt. Service man also.
4. . Your Educational Background

Table 4:
Matric 44 Higher Secondary 42 Graduate 12 Post Graduate 2
Graph4:

Interpretation: Maximum respondents are matric and higher secondary ones i.e, 44% and 42 %
5. Which company tractor you have in 60 HP segment
Table 5:
ESCORT 39 SWARAJ 26 ESCORT 11 FORD 17 JOHN DEERE 4 SONALIKA 3 Graph 5:

6. Which tractor of your mentioned company do you have?

Arjun 605 di 32 Farmtrac 60 DX 16 HMT 6522 23 Sonalika DI 60 Senior 13 Tafe Gajraj 5900 g4 16

ESCORT Arjun has topped the list, people are now changing their trends and started opting for HMT and Farmtrac. Alongwith this Sonalika 60 is also in the list making good market with its style and elegancy.
7. How long you have been operating this tractor?

0-1 Yrs 39 1-3 Yra 32 3-5 Yrs 18 More than 5 Yrs 11

Interpretation: Out of 100 respondents, 11% of the respondents are operating this tractor for more than 5 years, 18 % are for 3-5 years, 32% for 1-3 years and the rest 39 % for 1 years.

8. What is the purpose of using this tractor?
Table 8:
Business 12 Heavy Works 23 farming 62 Family Purpose 3
Graph 8:

Interpretation: Most of the respondents use the tractors for farming purpose that is 62 % ,for heavy works 23 % and least for family purpose.

9. Are you aware of all the models of tractors (60 HP) made available to people of this company?

Yes 94 No 6

Respondents have better knowledge of all the models of tractor of 60 HP segment made available to people of this company.
10. How do you rate your tractor as compared to tractor of other company?

(a) Very Good (b) Good (c) Poor

Please mark the reason for you response
1. Fuel Efficiency
2. Price
3. Brand image
4. Pick-Up
5. Spare parts availability
6. Any other

Every respondent have better and positive views about the models they have.
11. Have you ever been recommended your company’s tractor to any one?

(a) Yes (b) No

If yes then to whom 1. Friends
2. Relatives
3. Colleagues
4. Any other

Many of the respondents have recommended their tractor to the one they are in
relation to like their friends mostly other than relative and colleagues.
12. Have you ever heard any complaint of the make of this company or ever has faced any of the problems with your tractor?
If yes what kind

Mileage 29 Price 18 Pick-Up 14 Shockers 20 Any Other 19
Problems are there with every product, nothing is 100 %, thereby it variate the choices related to the buying decision and other offers.
PRODUCT LIFE CYCLE OF ESCORT TRACTOR

Product life cycle of tractor is of 3 years. To say that a product has a life cycle asserts four things. Products have a limited life. Product sales pass through distance stages, each posing different challenges, opportunities and problems to the seller. Profits rise and fall at different stages of the product life cycle. Product requires different marketing, financial, manufacturing, purchasing and human resource strategies in each life cycle stage.

INTRODUCTION STAGE
In tractor business name plays very important role till that time the name is not known or not have place in market, tractor will not sale. In the introduction stage focus is given on sales rather than profit. For the purpose of name people are made much aware about launching of the product so as to get maximum number of customers. Marketing strategies is based on the features of tractors. In this stage ESCORT tries to expand its market share.

GROWTH STAGE
In growth stage focus is given on improving the product quality and adds new product features and new policies so that it can enter new market segment. Which will be CENTRAL (Madhya Pradesh & Rajasthan) EAST (Bihar, West Bengal, Orissa & Assam) SOUTH (Andhra Pradesh, Tamil Nadu, Karnataka & Kerala)

Focus is also given on increasing distribution coverage and entering a new distribution channels. Then advertising strategies will shift from product awareness advertising to product-preference advertising.

MATURITY STAGE
In this stage focus is given to expand number of brands users by
* Converting non-users into users.
* Entering new market segments.
* Winning competitors customers.
* Convince current users to increase use of life insurance and also other types of insurance so as to minimize their risks.

Market mix of product is also modified in this stage such as Price, Distribution, Advertising, Sales promotion, Personal selling, Services.

SEGMENTATION & TARGETING

HP SEGMENTATION TARGETED CUSTOMER BELOW 30 NORTH UTTAR PRADESH WEST GUJARAT ABOVE 30 NORTH PUNJAB NORTH HARYANA WEST MAHARASHTRA

FACTORS CONSIDERING SEGEMENTATION AND TARGETING

• Agriculture Income
• Income Level
• Soil (Fertility)
• Population
• Competitors
• Climate
• Infrastructure
FINDINGS

With the results of the analysis, it is clear that most of the tractor users are from the age 30-40. The main group is the one who has the salary between 20000 and 30000. Tractor is the need of the farmers and businessman too, thereby this category has maximum ownership of tractors alongwith Govt. Service man also. Maximum respondents are matric and higher secondary i.e, 42 % and 44 % .
ESCORT has topped the list, escort also doing the fine, right now the market is of ESCORT, they are launchin good models with good features and performances.
Sonalika also trying its best to capture the market of tractor of 60 HP with their latest models.ESCORT Arjun has topped the list, people are now changing their trends and started opting for HMT and Farmtrac. Alongwith this Sonalika is also in the list making good market with its style and elegancy. The trend of using tractors of 60 HP have now started thereby most of the users are from the last 2-3 years. The tractor market has started taking its shape and people now looking for big heavy vehicles for their solid performance and style.
Most of the respondents use the tractors’s for Business purpose that is 12 % and more in case of farming that is62 %, for heavy works 23 % and least for family purpose. Respondents have better knowledge of all the models of tractors made available to people of this company.
Every respondents have better and positive views about the models they have. Many of the respondents have recommended their tractor to the one they are in relation to like their friends mostly other than relative and colleagues. Problems are there with every product, nothing is 100 %, thereby it variate the choices related to the buying decision and other offers.

SUGGESTIONS

* Companies have to come with an idea to launch low cost tractors so that it can reach to each and every class of the society.
* Average or mileage of the tractor is the main criteria for the sale of tractor, petrol and Diesel prices are hiking like anything, companies have to provide a technology for better mileage and less fuel consumption.
* Mostly operating by the farmers and businessman.
* Company should have to adopt well knowledge marketing executives so that they can explain and provide comparison of tractor’s with other company’s.
* Company should have to install Test Drive Camps so that they experience their vehicles and like to buy. Company should have to arrange meals for the demonstration of power.
SUMMARISATION

For over two decades, ESCORT Tractors is the undisputed leader of the Indian tractor market, which is the largest tractor market in the world. A division of a US$ 6 billion conglomerate, ESCORT & ESCORT, we began as a joint venture with International Harvester. And with that began a new era in power, control and reliability in farm equipment manufacturing. Today, with the largest manufacturing set up in India, ESCORT Tractors is among the top three players in the global market. And as we step into the 25th year of excellence, we continue on our journey of cultivating golden harvests across the globe.

In the year 2003, ESCORT Tractors bagged the Deming Prize, a global honor for quality practices. Three years later, the company was eligible to qualify for the Japan Quality Medal, the highest honor for excellence in Total Quality Management practices. In 2007, ESCORT Tractors became one of the 20 companies worldwide to receive this rare honor. Till date, we are the only tractor company in the world to bag this prestigious award.

M&M has one tractor manufacturing plant in China, three assembly plants in the United States and one at Brisbane, Australia. It has made strategic acquisitions across the globe including Stokes Forgings (UK), Jeco Holding AG (Germany) and Schoneweiss & Co GmbH (Germany). Its global subsidiaries include ESCORT Europe Srl. based in Italy, ESCORT USA Inc. and ESCORT South Africa.

In the US market, ESCORT USA, a subsidiary company of ESCORT tractors, sells more than 10,000 tractors annually. A nationwide network of over 300 dealers, total product support and prompt after sales service ensure that every tractor functions for years without any hassles.

ESCORT Tractors, the 3rd largest tractor manufacturer in the world, notched up yet another first in the tractor industry by delivering 1232 tractors on Independence Day – August 15, 2007

CONCLUSION

* Companies have to provide better facilities like free testing camps and gifts so as to raise the sales and promotion of the tractor models.
* Companies are launching their new models of tractors to make the consumer feel free from the choices.
* Being in the market of hype competition motorbike companies making brand positioning of their models. They used to put free test camps and use actors and actresses.
* Checking complaints have now become the first priority of the company, for that they install call centers to rectify those problems.
* At present ESCORT Arjun sales are high due to their better service providing factor and rectifying problems.
* Other companies like Escort and Sonalika have to look forward and to follow the above all suggestions for making better market for their tractors.

BIBLIOGRAPHY
BOOKS AND JOURNALS
* Amsden, A. H. (1989), Asia’s Next Giant, South Korea and Late Industrialization (New York, Oxford University Press).
* Amsden, A. H. (2001), The Rise of “the Rest”, Challenges to the West from Late Industrializing Economies
* Balassa B. (1980), “The Process of Industrial Development and Alternative Development Strategies”, World Bank Staff Working Paper, No. 438 (Washington, D. C., World Bank).
* Bhagwati, J. (1978), Foreign Trade Regimes and Economic Development, Anatomy and Consequences of Exchange Control Regimes (Cambridge, Ballinger Publishing Company).
* Bruton, H. (1998), “A Reconsideration of Import Substitution”, Journal of Economic Literature, XXXVI, June, 903-36.
* Chang, H. (1993), “The Political Economy of Industrial Policy in Korea” Cambridge Journal of Economics, No. 17, 131-57.
* Cline, R. W. (1983), “Trade Policy in the 1980s”, Institute for International Economics (Washington, D.C.).
* Gomery, R. E. and Baumol, W. J. (2000), Global Trade and Conflicting National Interests (Massachusetts, Massachusetts Institute of Technology).
* Greenaway, D., Morgan, W. and Wright, P. (1998), “Trade Reform, Adjustment and Growth: What Does the Evidence Tell Us”, Economic Journal, No. 108, September, 1547-61.
* Krueger, A. O. (1998), “Why Trade Liberalisation is Good for Growth”, The Economic Journal, No. 108, September, 1513-22.
Internet Resources
* http://www.sonalikaindia.com
* http://www.tafe.com
* http://www.escortindia.com
* http://www.automobileindiaESCORT-&-ESCORT/
* http://www.ESCORT.com/OurBusinesses/automobile-manufacturer.html
QUESTIONNAIRE

1. Age Group
A) 20-30 B) 30-40 C) 40-50 D) 40 Above

2. Income Group
A) 10000-20000 B) 20000-30000 C) 30000-40000
D) 40000 Above

3. You belong to the following category of the society?

(a) Farmer (b) Student (c) Govt. Service

(d) Businessman

4. Your Educational Background

(a) Matric (b) Higher Secondary (c) Graduate

(d) Post Graduate

5. Which company tractor you have in large tractor segment?
ESCORT Swaraj

Escort Ford

John deere Sonalika

6. Which tractor of your mentioned company do you have?

(a) Arjun (b) escort (c) tafe

(d) sonalika (e)HMT

7. How long you have been operating this tractor?
(a) 0-1 Yrs (b) 1-3 (c) 3-5 (d) More than 5 Yrs
8. What is the purpose of using this tractor?

(a) Business (b) Heavy Works

(c) farming (d) Family Purpose

9. Are you aware of all the models of tractor of 60 HP made available to people of this company?

(a) Yes (b) No

10. How do you rate your tractor as compared to tractor of other company?

(a) Very Good (b) Good (c) Poor

Please mark the reason for you response
7. Fuel Efficiency
8. Price
9. Brand image
10. Pick-Up
11. Spare parts availability
12. Any other

11. Have you ever been recommended your company’s tractor to any one?

(a) Yes (b) No

If yes then to whom 1. Friends
2. Relatives
3. Colleagues
4. Any other

12. Have you ever heard any complaint of the make of this company or ever has faced any of the problems with your tractor?

(a) Yes (b) No

If yes what kind
1. Mileage
2. Price
3. Pick-up
4. Shockers
5. Any other
1