Vanraj Mini Tractors

Topics: Marketing, Agriculture, Economics Pages: 4 (846 words) Published: December 17, 2010
VanRAJ MINi Tractors Case Analysis and RECOMMENDATIONS
(Case analysis)

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Introduction
Vanraj Mini is a 10 HP tractor promoted by GIAN(Gujarat Grassroots Innovations Augmentation Networks) and manufactured by M/s Pramal Farmatics Pvt Ltd. is targeted towards the lowest end of the tractor market segment. Tractor market in India is divided as per the tractor’s engine horsepower- less than 20 HP engine tractors- called as mini-tractor segment is virtually untapped with only 0.5% penetration in this segment, this segment gets a government subsidy of 30K as well. The competitors in this segment are Chinese made tractors and locally assembled tractors; however those are no match for Vanraj even if those are cheaper as Vanraj is geared towards hostile Indian conditions. The tractors in other segments have higher horse power- at least twice as costly as Vanraj and half as fuel efficient. Vanraj can also be used for other farming purposes like spraying pesticides, PTO, interculture operation etc. and other non farming purposes like transportation also. Average landholding in India being 1.57 hectares and with 82% of farmers belonging to this category- this segments looked quite lucrative for a product like Vanraj.

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Problem Definition
The manufacturers were in dilemma whether to target just the small and marginal farmer segment of the tractor market.

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Analysis Summary

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Advantages for a farmer in favor of buying a small tractor-

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    • Initial purchasing cost – half of that of a big tractor, fuel consumption cost halved as well. -------------------------------------------------
    • Better than bullocks in cost and maintenance terms.     • Tractors are...
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