SUMMER TRAINING REPORT

ON

STUDY OF MARKETING MIX & COMPETITON ANALYSIS OF

ITL

IN PARTIAL FULFILLMENT OF

MASTER OF BUSINESS ADMINISTRATION

(MARKETING)

SUBMITTED TO: SUBMITTED BY:

Dilbag Singh

1814972

M.B.A

St. Soldier Institute of Engg. & Technology,

Jalandhar
 DECLARATION

I hereby declare that project entitled STUDY OF MARKETING MIX AND COMPETITIVE ANALYSIS
OF INTERNATIONAL TRACTORS LIMITED submitted for the completion of summer training to the St.
Soldier Institute of Engg. & Technology, Jalandhar is an authentic record of my work carried out under the
supervision of Mr. Rajat (Sr. Manager of sales) at OCM India Limited.

Dilbag Singh
 ACKNOWLEDGEMENT

“Success is an amalgam of dedication, hard work and able

guidance of people around us”
I am indebted to my teachers and gurus who guide me at this junction of my career from where I can
take off better in the competitive scenario of today’s world . Working on this project has been a great pleasure
& a stimulating experience.

I am sincerely thankful to [Link] the chief executive of the company.. I am sincerely thankful
to [Link] Singh (Head of HRDepartment) who provided me affectionate working environment. I
express my deep sense of gratitude and profound thanks to

Mr. [Link] of marketing department for their valuable suggestions and manifold help in finalizing the
present work.

I am also thankful to Mr. Sood, Mr. Raj Kumar,Mr. Hans Raj Sharma, [Link] singh. Who
provided me needed information about their department and guided my training in the right direction.

I am also thankful to Our HOD Mrs. Anchal Soni and faculty guide Amrit Risham kaur for helping me to
get training in this reputed firm.
Preface
 CONTENTS

[Link]. PARTICULARS PAGE NO.

INDUSTRY PROFILE
 INDIAN TRACOR INDUSTRY

 CURRENT SCINEARIO IN TRACTOR

INDUSTRY

INTRODUCTION OF ITL

 COMPANY PROFILE

 ITL HIGHLIGHTS

 MANAGEMENT OF ITL

 KEY PLAYERS IN INDUSTRY

 TECHNOLOGIES

 PRODUCT AND MARKETS

 AWARDS AND RECOGNITIONS

 SWOT ANALYSIS

VARIOUS DEPARTMENTS OF ITL

 MARKETING DEPARTMENT

 PERSONNEL DEPARTMENT

 FINANCE DEPARTMENT

 R&D DEPARTMENT

 MANUFACTURING DEPARTEMENT

 ASSEMBLY DEPARTEMENT
OBJECTIVES OF PROJECT REPORT

REVIEW OF LITERATURE
 BACKGROUND
 PROMOTERS
 THE COMPANY AND ITS PRODUCT LINE
 FEATURES OF PRODUCT
 MARKETING STRATEGIES
 COMPETITORS
 NATIONAL AND INTERNATIONAL IMAGE OF
ITL

RESEARCH METHODOLOGY

STUDIES OF MARKETING MIX OF ITL

 PRODUCT

 PRICING

 PROMOTION

 PLACE /DISTRIBUTION

COMPETITIVE ANALYSIS OF ITL BASED ON

FEATURES

SURVEY : FINAL RESULTS

 ANALYSIS AND INTERPRETATIONS

 TABLE AND CHARTS

LIMITATIONS OF THE STUDY

CONCLUSION AND FINDINGS

SUGGESTIONS AND RECOMMENDATION

 BIBLIOGRAPHY & WEBLIOGRAPHY

OVERALL EXPIRIENCE

QUESTIONNAIRE

INDUSTRY PROFILE
Indian tractor industry, comparatively young by world standards have expanded at a spectacular pace during last
four decades. Consequently it now occupies a place of pride in India's automobile industry. The tractor industry
in India has made a significant progress in terms of production and capacity as well as indigenization of
technology. It is a typical sector where both imported technology and indigenous developed technology have
developed towards meeting the overall national requirements. In India tractor industry has played a vital role in
the development. The Tractors available in developed countries have advanced features and accessories that is
not found in Indian tractors .Tractor industry has made a steady and satisfactory progress even in drought areas.
The tractors between the 31-40 horse power and 31-40 hp range dominate the market .The reason for medium
horse power tractors being more popular is that the major tractor demanding states like Punjab Haryana and
Uttar Pradesh have plenty of alluvial soil which do not require deep tilling. Lately it is visualized that higher hp
segment has the maximum growth potential Higher horse powered tractors will be the future requirement with
the government intention to encourage contract farming through the leasing in and leasing out of farm lands.
Yet, by the late 1980s tractor production was nearly 140,000 units per year and by the late 1990s with
production approaching 270,000 per year, India over-took the United States as the world's largest producer of
four-wheel tractors with over 16 national and 4 multi-national corporations producing tractors today
Regarding exports India of latter has been exporting tractors to a number of countries, but predominantly to
Srilanka ,Nepal and U.S.A .However the study reveals that exports from India are going down in the recent
years .The major reason for the decline in exports of tractors of tractor from India is being the failure to find an
extensive market overseas ,deteriorating foreign exchange situation in African countries and their poor buying
capacity, comparatively cheaper imports of second hand tractors by South East Asian countries from developed
countries and the disintegration of erstwhile U.S.S.R. but also the potential export markets can be explored by
Indian in the future. Since Indian tractors confirm to the international standard by virtue of their foreign
collaboration it is possible for India to export to more tractors to the rice and wheat growing countries like
Canada, Philippines and Bangladesh. Tractor industry along with others benefited from this policy which
allowed free inflow of foreign technology .The manufacture of tractors started in India mainly with the help of
foreign collaboration secured from internationally reputed companies from the USA ,UK, USSR ,WEST
GERMANY, POLAND ,CZECH SLOVAKIA . Most of the models which were taken up for manufacture in
India were developed overseas. Though tractor manufacturing in India started in 1961, the industry has grown at
a phenomenal pace in the last five decades to achieve a record production of over three lakh units per year.

"Tractor companies are improving their designs with time. As per theecommendations received, the companies
direct their engineers to manufacture more hi-tech tractors. Now, there are tractors equipped with new
technologies, which is very good," said Sohan Singh, a farmer.

Mahindra Tractors, which has emerged as one of the leading producers of wheel type tractors in the world, is
reflecting the dynamism of the tractor manufacturers. Established in 1969, Sonalika is one of the top three
tractor manufacturing companies in India. Since the inception, the group has understood the customers desire to
be provided with value for money products.

The company has a state of art manufacturing facilities, located in Punjab and Himachal Pradesh. 95% of tractor sales
are on credit. Credit is extended by commercial banks, state land development banks and regional rural banks.

Tractor industry in India from its start and till present

1945 to 1960 War surplus tractors and bulldozers were imported for land reclamation and cultivation in mid
1940's. In 1947 central and state tractor organizations were set up to develop and promote the supply and use of
tractors in agriculture and up to 1960, the demand was met entirely through imports.

1961 to 1970 Local production began in 1961 with five manufacturers producing a total of 880 units per
[Link] 1970 annual production had exceeded 20,000 units with over 146,000 units working in the country.
1971 to 1980 Six new manufacturers were established during this period although three companies (Kirloskar
Tractors, Harsha Tractors and Pittie Tractors) did not survive. 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.

1981 to 1990 A further five manufacturers began production during this period but only one of these survived
in the increasingly competitive market place. Annual production exceeded 75,000 units by 1985 and reached
140,000 in 1990.

1991 to 1997 Since 1992, it has not been necessary to obtain an industrial license for tractor manufacture in
India. By 1997 annual production exceeded 255,000 units and the national tractor population had passed the two
million mark. India now emerged as one of the world leaders in wheeled tractor production.

1997 to 1999 Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo, already well
established in the motor industry, began tractor production in Pune. In April of the same year New Holland

Tractor (India) Ltd launched production of 70 hp tractors with matching equipment. Larsen and Toubro have
established a joint venture with John Deere, USA for the manufacture of 35-65 hp tractors at a plant in Pune,
Maharashtra and Greeves Ltd will produce Same tractors under similar arrangements with Same Deutz-Fahr of
Italy.

1999 to Present Facing market saturation in the traditional markets of the north west (Punjab, Haryana, eastern
Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales went below 200,000. Manufacturers
scrambled to push into eastern and southern India markets in an attempt to reverse the decline, and began
exploring the potential for overseas markets. Sales remained in a slump, and added to the market saturation
problems also came increased problems of "prestige" loan defaults, where farmers who were not financially
able took tractors in moves to increase their families prestige. By 2004 a slight up tick in sales once again due to
stronger and national and to some extent international markets. But by 2006 sales once again were down to
216,000 and now in 2007-08 have slid further to just over 200,000.
 CURRENT SCIENARIO OF TRACTOR INDUSTRY
Tractor manufacture is now firmly established in India and is highly competitive with rapid advances being
made in technical design and quality with increasing attention to export markets. Of the 16 companies that
began operations before 1990 six are considered major manufacturers (Eicher, Escorts Ltd, HMT, Mahindra and
Mahindra, PTL and TAFE). Five of these were set up with foreign collaborators and one (Punjab Tractors) with
indigenous know-how. Mahindra and Mahindra has emerged as the largest manufacturer producing 68000 units
in 1997 followed by TAFE, Escorts Ltd and Punjab Tractors with 49000, 48000 and 40000 units respectively.
Sales in Northern and Western India are forecast to remain strong whilst the market in the southern states is
likely to grow more rapidly along with export sales. However in some states such as the Punjab future sales will
be mainly replacement of existing stock as densities of as much as 82 tractors per 1000 ha have been reached.
The average size of tractor in the country is currently 35 hp which, following trends in other parts of the world,
seems likely to increase steadily to around 45 hp by 2020. By which time the total tractor population may have
increased from the present two million to five million with annual production up to 320000.

Tractor Manufacturers Association

The Tractor Manufacturers' Association of India (TMA) is housed under The Confederation of Indian Industry
(CII), New Delhi. Though not all manufacturers are members TMA is recognized as the main trade group
representing the agricultural tractor industry in India. Mr. Ramesh C Jain Chief Executive (Group
affairs) of Eicher Good earth Limited is currently serving as president.

COMPANY PROFILE

Sonalika, a special variety of wheat seeds was the major catalyst in ushering green revolution in India in the
early sixties. It was the adaptation of these Sonalika seeds that resulted in geometric growth in production of
Food

The spirit of the name Sonalika which literally means 'Sone ki Lakeerein' or Lines of GOLD has not only
helped the country in becoming self sufficient in food grains but also ensured that it turns India into an exporter
of food grains through the surplus in domestic

International Tractors Limited, manufacturer of Sonalika Farm Equipment and Tractors under the brand name
'Sonalika' has taken the same spirit forward not only in India but to over 70 countries across the world and has
become a name to reckon with.

Incorporated in 1969 to accomplish newer heights of success, Sonalika Group has come a long way. Today the
group is among the top three tractor manufacturers of India and provides a complete product line including
tractors, multi-utility vehicles, engines, farm machinery attachments, diesel gensets, auto components and pick
& carry cranes.
The group understands the requirements of its customers fairly well and tries coming up with exceptional tailor-
made products suiting their needs. The group's state-of-the-art production plants spread across many acres and
are strategically established in a pollution free zone in Punjab and Himanchal Pradesh.

Sonalika Group has also joined hands with some of the leading international names like Yanmar of Japan, JM
FINANCE Trustee & Magma Sharachi Finance.
Today Sonalika has become synonymous to prosperity, success and growth. With international technologies,
state-of-the-art production units, experienced teams and tailor-made solutions Sonalika has responded really
well to its customers' needs in India and abroad. We believe the coming years will bring the same results for us,
our associates and our customers provided we go along with the same fervor and optimism. And we are ready
for it. Ready to take on the challenges that destiny has in store for us and to climb new horizons of success that
are still untouched and unexplored.
Vision
 To become the World's leading tractor manufacturing company and a major player in automotive
products and services.
 To provide value for money to the customers by producing High Quality Innovative Products at
competitive price food grains in the country

Mission

"To translate vision in to reality”

Core values
 Fast adaptability to change.
 Innovative in fields and business.
 Offer service with a smile to customers.
 Provide enjoyable working environment to employees.

Logo Rationale

Red symbolizes the strength, power, determination, and desire of company. Yellow surrounding the the Sonalika
produces a warming effect, arouses cheerfulness, stimulates mental activity, and generates the same. Green Leaf
in the centre symbolizes growth, harmony, freshness, and fertility. Blue underlining the logo associates with
power, elegance, and 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.
SONALIKA GROUP
 INTERNATIONAL TRACTORS LTD

Name of the Company M/s International Tractors Limited.

Location Village Chak Gujran, Jalandhar Road,

Hoshiarpur Punjab

Brand Name Brand Name

Product TRACTORS

Established on 14.10.1996

Present production 250 Tractors per day

Installed capacity 300Tractors per day

Total Area 13+ Acres of land

ITL Certificates 9001 and 14001 certification.

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. These tractors are also exported to various countries including South Africa,
Australia, Zimbabwe, Sri Lanka, Canada, Bangladesh,Algeria,Zambia,Senegal,andGhanaetc.
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. Dealer network of 600, and 450 subdealers promote the company’s marketing efforts. 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.
They are also manufacturing tractors, meeting norms of Smoke & Mass Emission, Tested and certified by
ARAI, Pune. United States Environmental Norms Agency, Washington DC 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.

Sonalika 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 advance safety devices.

ITL HIGHLIGHTS

2010
 Sonalika Tractors are now EURO –III A Norms Compliant
 Started Export of Tractors to Argentina & Serbia
 Executed the export order to Cameroon worth 40 Million US$.

2009
  Grand Launch of tenchnical advanced worldtrac series of tractors. The series comprises of tractors
with advanced features.
 Developed in-house unique DIESEL SAVER UNIT FOR SONALIKA Tractors.
 Became only Company in India To Produce 90 Hp Tractors.

2008
 Launch of RX Series of Tractors. Aesthetically appealing designs and shape accepted across the
world.
 Export of Tractors Started to USA.

2007
 Joint Venture between International Tractors Ltd. and Magma Shrachi Finance.

2006
 Successfully Developed Four Wheel Drive front axles and Transmission of tractor for Yanmar.

2005
 Achieved turnover of USD 235 Million.
 Joint venture with Yanmar of Japan for manufacturing of Tractors in India.

2001
 Started in house manufacturing of engine for tractor application

2000
 Entered into Joint venture with Renault-France and Class-Germany. Which helped the group to upgrade
its tech.

MANAGEMENT OF ITL

CHAIRMAN SH. L.D. MITTAL

MANAGING DIRECTOR SH. A.S. MITTAL

JOINT MANAGING DIRECTOR SH. D.K. MITTAL

DIRECTOR SH. .S.K. MITTAL

VICE PRESIDENT SH .J.K. PALLIWAL

 KEY PLAYERS IN THE INDUSTRY

AGRI MACHINARY INDUSTRIES(Tractor) SALES- Domestic

INDUSTRY % Market Share Rank
M&M Group 39.15 1
TAFE Group 21.76 2
Sonalika 11.90 3
Escorts 9.76 4
JD 8.62 5
NH 6.12 6
Others 2.69 7

Total sales of tractor I Apr 15 to May 15 were 551463. Out of these ITL estimated sales were 66,175 with the
market share of 12% amongst all the other industries.
 AGRI MACHINARY INDUSTRIES(Tractor) SALES- EXPORT
INDUSTRY % Market Share Rank
M&M Group 26 1
TAFE Group 16 2
Sonalika 16 3
JD 25 4
NH 6 5
Escorts 1 6
Others 10 7

Total sales of tractor I Apr 15 to May 15 were 75376. Out of these ITL estimated sales were12, 060 with the
market share of 16% amongst all the other industries.

TECHNOLOGIES

ITL has four recognized and well-accepted tractor brands, which are on distinct
and separate technology platforms
DI Series: World Class Premium tractors, with single reduction and epicyclic reduction transmissions from 30
to 60 HP.
RX Series: Utility and Value-for-money tractors, offering straight-axle and hub-reduction tractors from 30 to 60
HP. India's No.1 economy range - engineered to give spectacular diesel economy.
WORLDTRAC Series: Tractors having hub-reduction transmission and twin-cylinder engines from 60 to 90
HP. Pioneering brand of tractors introduced by Escorts with unbeatable.
GARDENTRAC Series: Economy tractors suitable for gardening purpose. Engine ranging from 20 to 26 HP.
 ITL TRACTOR RANGE

SONALIKA GARDENTRAC SONALIKA DI-SERIES

SONALIKA RX SERIES SONALIKA WORLDTRAC

SERIES AVAILABLE

SERIES HP RANGE

GARDENTRAC 20-26 HP

DI-SERIES 30-60 HP

RX-SRIES 30-60 HP

WORLDTRAC 60-90

MODELS AVAILABLE

SERIES MODEL

GARDENTRAC GT DI 20

GT DI 26

DI-SERIES DI 30

DI 734
 DI 35CG

DI 740

DI 745 III

DI 750 III

DI 60
RX-SRIES DI 30 RX Baagban Super

DI 35RX

DI 42RX

DI 745 III RX

DI 47 RX

DI 750 III RX

DI 60 RX
WORLDTRAC WT 60

WT 75

WT 90
 ISO-CERTIFICATES

ITL has got ISO-9001 quality system certified by ICL

(International Certification Limited)

ISO-9001

It is used for conformance to specify requirement is to be assured by suppliers during the several stages which
may include design, development, production, installation and servicing.

Sonalika has arranged collaboration with French Renaults for technical know how and marketing, with the help
of this collaboration Sonalika will develop its own Dl-740 tractor engine which will help to reduce its cost.
After the collaboration, Sonalika will be able to make 100 tractors per day.

French Company will have 20% shares in Sonalika International Tractors Ltd. And will also have one director
in Board of Directors and 90% share part manufactured by the company.

ISO 14001 certification

ITL is an environment friendly plant. In order to achieve international slandered environmental management
system ITI has been awarded ISO 14001 certifications.

SWOT ANALYSIS
 VARIOUS DEPARTMENTS IN ITL

1. MARKETING & SALES DEPARTMENT

Marketing is a social and managerial process by which individuals and group obtain what they need and want
through creating and exchanging products and value with others. Marketing concept, which provides an
orientation for conducting business of thinking and basic approach to the business problems. Marketing itself is
of course a specific function in the enterprise as far as finances and accounting but the marketing concept is a
fundamental to the overall rationale and conduct of the enterprise. Marketing as a management involves several
activities including environmental scanning market opportunity analysis.

a) Marketing strategy program implementation and control

The organization mission programming and implementation and control scanning the Broader environment and
identifying analyzing market opportunity understanding and changing marketing environment and the
organization market in turn, provide a basic for developing effective marketing strategies. The specified target
markets are defined, marketing objectives delineated for each target market and the numerous marketing
programmes decision [Link] these activities make up a marketing strategy, which is then implemented
and controlled. Marketing is being applied in all type of manufacturing and non-manufacturing organization. On
the ground that all organization have marketing problems that can be solved by application of market theory and
practice. Marketing is designed to render to specify benefits to its implement first, marketing place and great
emphasizes on measuring the needs and desires to target market. Second marketing emphasizes the scientific
formulation and handling of activities involving

 Product development

 Pricing

 Communication

 Distribution

 Advertisement

Marketing becomes functionally more important as the country becomes more industrialized. Since person
specializes in producing a particular item he does not supply directly to himself with many other goods and
services that he needs to sustain life.

This is the point where marketing functions enters the economic process. As the production efficiency increases
it may also indicate that marketing is urgently need to find ways efficiently and effectively for distribution and
selling the output.

b) Marketing dept. organization structure

The company has a very efficient and involving marketing staff and organization structure. The hierarchy is as
follows:
 Vice President

General Mgr.

DGM

Sr. Manager

Manager

Deputy Mgr.

Assistant Mgr.

Sr. Sales Officer

Sales Officer

c) Functions Of Sales Management

Following are the general functions of sale management:

1. Sale planning and sale policies.

2. Pricing policies and price fixing.
3. Advertising and sales promotion.
4. Scientific salesmanship, management and control of sales force.
5. Marketing research
6. Planning and control of sales operation and control of sales costs.
7. Selection and management of channels of distribution.
8. Branding, packing and labeling.
9. After sale service, if necessary.
10. Integration and co-ordination of each functions.

d) MODERN SALES MANAGEMENT TRENDS

The outstanding development in sales management since 1960 are enumerated as follows :

1. Acceptance of marketing concept i.e. customer needs and wants given top attention.
2. Recognition of importance of planning, and programming of sales.
3. Greater dependence on marketing research.
4. Emphasis on profit performance and not merely on sales volume.
5. More attention on channel choice and channel relations.
6. Special stress on increasing productivity of sales personnel.
7. Decentralisation of sales management.
8. Improved motivation and relation of salesman.
9. Adaptation of managerial approach in selling or marketing.

e) Sales Organization Chart

f) Importance of sales organization

A sales organization is like a power station sending out energy which is devoted to the advertising and selling a
particular lines and there is tremendous loss of energy between the power station and points where it reaches the
great necessity of planning, organizing and controlling all sales efforts through a sound sales organization to
prevent wastage in distribution.

g) Basic functions of sales organization

2. PERSONNEL DEPARTMENT
The vice president is overall responsible for the functioning of the Department. The manager personal is in for
co-ordinates the function assistant personal officer, chief labour officer and the head time keeper.

 Recruitment/selection/training methodology
 The company has systematic recruitment and selection procedure so that it get the right person. For the
right job and its resources and benefits are not satisfied.

 Workers
Demands of workers depend upon the vacancies that exist in the department. The department in charges
submits their demands of workers to the personal manager as and when they require. The personal manager
forwards their demands to the trade union. Employment exchange and ITI etc. and obtain workers on arrival.
The personal manager examines their civil qualification and physical fitness. If found fit they are sent to the
concerned department on the trail for two days. After completion of the trail their employment forms are filled
and then workers are produced before the president for final approval.

 Supervisor
Demands of candidate will depend upon the vacancies that exist in the various departments. The
department in charges submits their demands to the personal manager as and when require. The personal
manager calls the candidate from the employment exchanges, institutes [Link] candidates are finally
interviewed by the interview board proceeded by the president. The other members of the board are the JT.
President, vice president, department in charge concerned. The selected candidates are then asked to report for
work on dates agreed upon other formalities as given below

a) Medical
b) Filling in to gratuity/ nomination forms
c) Nomination for pf and PPF
d) Nomination form
e) Appointment letter.

In case of senior appointment chairman and the managing director

can take decision directly

 Training

Sonalika Product Training Centre is dedicated to provide World class training to thousands of Dealers,
Dealers' staff, Company staff and visiting farmers since beginning. Dealers and company personnel go through
a rigorous training program on induction that is also supplemented by refresher courses and special courses for
new products & product improvements. All courses are normally conducted at the Training centre with frequent
field courses conducted as per the need in the different regions of India and Abroad.
Sonalika Product Training Centre plays a key role in educating students during industrial visits, foreign visitors
and farmers on farm mechanization and economical use of the tractors to increase the agriculture production.

 Retirement
Employees seeking voluntary retirement submit their request to their department incharges. They
submit the same to the personal department. The personal manager prepares memos and distributed time officer,
security officer, cashier/accounts and PF department. A similar procedure is adopted in case of individuals who
retire in the normal case on obtaining the age of supernuetion. However such individuals are informed through a
memo prepared by the personal manager three months to the retirement. All retirements or superannuating are
executed on 31st m

 Welfare
The company takes keen interest in welfare of its employees like providing of economized canteen
facilities. Proper arrangements of drinking water and urinals, systematic arrangement of pay packages and
providing gifts on special occasions. The company gives out Diwali gifts, cycles and sewing machines on
retirement to permanent workers and education to child.

3. FINANCE DEPARTMENT

The finance department has three basic departments:

 Finance department
Finance department looks into the cash inflow and outflow of the company finance department headed
by assistant vice president who responsible for three main activities like; Banking transactions including day
dealing with the banks and updating the books of account dealing with financial institutions for short term
financing of the company realization activities including for short term and long term financing of debtors after
the sale of goods on credit.

 General accounts
This department maintains all the books of accounts. It maintains the annual accounts that are audited
secretly. It also looks into dues to the Government taxes excise duty etc.

 TMS - Territory Management System

TMS fives a periodic report about the financial matters of the company to the head office and board of
directors. TMS also handles the budgeting on the last three year experience and the predictions of the next two
year based on that this it also works out of the company policy and helps in its implementation.

4. RESARCH & DEVELOPMENT DEPARTEMENT

Being Situated in the Punjab (The leading Agriculture state in India), Sonalika have deep knowledge of the
farming requirement and also done an extensive research on the requirement and the actual need of the farmers,
which resulted in development of the most suitable tractors and equipments for the Agriculture and commercial
applications.

International Tractors Ltd. has its own in house R & D setup which is recognized by Govt. of India, Ministry of
Science and Technology Department of Scientific and Industrial Research.
Ultra modern R&D facilities capable of Designing, Developing and Testing of components equipped with the
following designing & Analyzing Facilities
a) Design Facilities
 Ideas Nx & CATIA Software
 Product Design Package + Surfacing Set

 Power Mill 3-Axis CAM software

 Ideas to UG Software

 Metaphase

 Auto CAD

 Kiss software for gear & shaft geometrical analysis

 CAE Software for Analysis of Design.

 Team Center module being used in management techniques

b) Proto Shop Facilities

 Horizontal Machining Centre HMC-500m

 Vertical Machining Centre VMC-600m

 Turning Centre STC-200, and other sophisticated machines and equipments.

c) Testing Facilities
 Transmission Test beds.
 Testing Rigs.

 MGR Test Track.

 Endurance Test Rigs for Engine.

 Field Testing.
5) MANUFACTURING DEPARTEMENT
 Manufacturing
department

Heavy Light Gear & heat Press shop

machine shop machine shop treatment

a) Crank Case a) Control

…Valve
b) Differential a) Main shafts
…Housing b) Composite a) Skin panels
…Valve b) Lay shafts
b) Inner panels
c) Gear Box …
Housing c) Feathering c) Input shafts c) Floor panels
…Valve
d) Clutch … d) Gear with d) Oil pans
Housing d) Relief Valve …dog teeth
e) Fuel tanks
e) Trumpet … e) Release … e) Shifter …
Housing Valve sleeves

6) ASSEMBLY DEPARTEMENT
 OBJECTIVES OF PROJECT REPORT
 To flourish the adroitness to select data that is relevant to topic.

 To flourish the skills to understand analyze primary and secondary data, substantiate and support
ideas, analyze events and issues and impact.

 To develop the ability to understand .appreciate, accept different points of view.

 Comparing features of existing product of ITL with other companies of repute.

 To determine that what will be the features of the dream machine according to existing tractor holders
as well as potential buyers.

 To determine what kind of further improvement they wanted in existing product.

 To study the main problems faced by the different tractor owners.

 To study the main trends in the Indian tractor market.

 Studying the Effectiveness of OCM marketing strategies.

 To study the exposure of ITL advertisements.

 To know which is the most popular and effective way for marketing.

LITERATURE REVIEW
 Tractor industry in India is a major industry and key contributor in agriculture. Till 1945 to 1960
Tractors were imported for land reclamation and cultivation. Local production began in 1961 with five
manufacturers ( Eicher, Gujarat Tractors, TAFE, Escorts, M&M) producing a total of 880 units per
year. Six new manufacturer were introduced during 1972 (Kirloskar Tractors, Harsha Tractors and
Pittie Tractors, HMT).In 1981 five more manufacturer entered the market which were (Auto Tractors,
Haryana Tractors, United Auto Tractors, Asian Tractors, VST Tillers) . Five new manufacturers
started production in this period. In 1998 Bajaj Tempo, later renamed Force Motors, began tractor
production in Pune. In April of the same year New Holland Tractor (India) Ltd launched production of
70 hp tractors.

Tractors are getting widespread acceptance in India. Kotaks and ICRA reports estimate that nearly
4.3 million tractors were in operation, and 1 in 20 rural households owned a tractor in 2011. They
project that the market will grow at 7% to 8% per year, and only 19% of Indian rural farming
households that can afford a tractor have as yet purchased a unit. Designs that allow multifunctional
use, adapted to local needs and rural constraints, are experiencing higher demands. Five companies
account for over 80% of the market share - Mahindra and Mahindra (largest at 40% share), TAFE,
Escorts, ITL-Sonalika, and John Deere

Sonalika
International tractor limited was incorporated on 17 October 1987 . Sonalika manufactures tractor
between 18 HP to 90 HP. Sonalika Group is headed by Lakshman Das Mittal. Today the group is
among the top three tractor manufacturers of India and provides a complete product line including
tractors, multi-utility vehicles, engines, farm machinery attachments, diesel gensets, auto
components and pick & carry cranes. Sonalika Group has also joined hands with some of the leading
international names like Yanmar of Japan, JM Finance Trustee & Magma Sharachi Finance. Sonalika
has become one of the fastest growing industry in india with the production of 250 to 300 tractors
per day.
 Research methadology

RESEARCH
Research in common parlance refers to a search for knowledge. One can also define research as a scientific and
systematic search for pertinent information on a specific topic.
Research is an academic activity; as such the term should be used in a technical sense. Research refers to:

 Defining and redefining problem

 Formulating hypothesis or suggested solutions
 Collecting, organizing and evaluating data
 Making deductions and reaching conclusions
 At last carefully testing the conclusions to determine whether they fit the formulating hypothesis.
RESEARCH PROCESS

Research process consists of series of action or steps necessary to effectively carry out research. These steps are to be
followed in the same sequence. These steps are as follows:

 Specifying research objective

 Preparing a list of needed information
 Designing the data collection project
 Select a sample size
 Organizing and carrying data and reporting the findings.

RESEARCH METHODOLOGY ADOPTED

The project revolves around the tractor holders of different companies. Survey was conducted to know from
them that what is their dream about new tractor, what kind of further changes they want in their existing tractor
which will increase benefits to them. And to know their opinions about Sonalika tractors in comparison with
other tractors present in the Indian market. So in this survey the researcher has tried to get all the necessary
information from the farmers of Hoshiarpur district with the help of the questionnaire and he also tried to know
what are the various features that farmers want in the tractor at the time of purchase and is Horse Power of the
tractor has any effect on the price on the tractor and what are the main problems that occur in the tractors. And
this information has helped him to analyze all this important data to get the desired results to complete his
project.
 Data Interpretation

Table – 1

COMPANY FREQUENCY

Sonalika international tractor 20

Swaraj tractor 5

Farm trac 15

Ford 10

Tafe 2
Mahindra & mahindra 25

H.M.T. 2

Escort 2

Eicher 6

Massey 3

Any other 10

Total 100

Table 1 shows that the survey was based on 100 tractor holders of different companies. There were 20 Sonalika tractor
holders who were questioned; the number was 25 for mahindra tractor holders. 10 tractor holders were having Swaraj
tractors and Farm trac each. And the remaining includes Ford, Tafe, H.M.T., Escort, Eicher, and Massey etc. Information
regarding the tractors was sorted out from the tractor holders by an informal interview and then questionnaires were
filled after taking into consideration the sorted information.
Preferred HP range

HP RANGE % of customer using HP Range

Less then 30 HP Null

10-20 HP 1

20-30 HP 19

30-40 HP 25

40-50 HP 35

50-60 HP 20

total 100

FACTORS AFFECTING PURCHASE DECISION

Table no 2

Factors Frequency Percentage (%)

Advertisement 10 6

Technology 12 17

Reference group 38 54

Brand image 20 14

Availability 10 2

Any other 10 7
Total 100 100

Table – 2 shows that 54% tractor holders says that ‘Reference group’ play very important in their purchase decision.

Reference group consists of family, friends, neighbors, co-workers, professional, opinion leaders etc. It is clear from the
table that 38 tractor holders purchase their tractor with the help of reference groups.

17% about 12 tractor holders thought that technology is the factor that effect their purchase decision. While 10
customers are brand loyal and their future purchase will be from same company as they are fully satisfied from their
earlier purchase.

Advertising and availability of showroom does not seem to be very much important as per figures of the table.

Easy loan and exchange offer by the company, works a lot, is the idea of 7% of the tractor holders.
 Table – 3

SATISFACTION LEVEL FROM YOUR PURCHASE

%age Massey Eicher Escort HMT Mahindra Tafe Ford Farm Sonalika Swaraj Total
Trac

much 64% - - - 3 22 - - 4 14 6 45
fied

e 16% 3 - - - 2 - - 2 4 - 11
fied

OK 17% - 2 2 1 - 1 2 2 - 2 12

satisfied 3% - - - - - - - - 2 - 2

satisfied - - - - - - - - - - - -

l 100% 3 6 2 12 20 2 10 15 20 10 100

Table – 3 Shows that 64% of the tractor holders are very much satisfied from their purchase. 18 tractor holders
of Mahindra, 14 of Sonalika, 6 of Swaraj, 4 of Farm Trac and 3 of HMT, out of 20, 20, 8, 8, and 4 respectively,
‘very much’ satisfied covers the category which never have faced any kind of serious problem, since the
purchase of tractor.
Quite satisfied covers the category of those who have faced any kind of problem once or twice, since the
purchase of their tractor. Under this category we have 11 tractor holders, 4 were from Sonalika, 3 from Massy,
2 from Mahindra and Farm Trac each.
17% of tractor holders came under the category of ‘Just OK’, which means future purchase or advice to the
potential customer for purchasing the tractor of that company is 50 – 50.
2 tractor holders of Sonalika were not satisfied from their purchase as they are facing regular problem, from
their machine. One Sonalika holder is ready to get exchanged his tractor for Mahindra.

Table – 4(a)

Name of the companies %Age of ‘Very much Satisfied’

customers of tractor holders
MAHINDRA 22/25 * 100 = 90%
H.M.T. 3 /4* 100 = 75%
FARM TRAC 4/8 * 100 = 50%
SONALIKA 14/20 * 100 = 70%
SWARAJ 6/8 * 100 = 75%
MASSEY N.A.
EICHER N.A.

ESCORT N.A.

TAFE N.A.

FORD N.A.
Table – 4(b)
RATE THE THREE BEST TRACTORS IN THE MARKET
Rank Company Very much satisfied %age
level
1. Mahindra 90%
2. Swaraj & H.M.T. 75%
3. Sonalika 70%
Table 4(b) explains the success story of Mahindra tractors out of 20 Mahindra tractor holders 18 rank it to first
position while one Sonalika holder wants to be the owner of the Mahindra. Mahindra is no doubt a dream
machine for the customers. H.M.T. and Swaraj tractors are joint owners of the second position with 75% votes
while Sonalika grab the third spot with 70% votes.

Table – 5
RANK THE FACTORS YOU ATTACH IMPORTANCE TO WHILE SELECTING A PARTICULAR TRACTOR

Factors % Of Rank Rank Rank Rank Rank Rank Rank Total

1st I II III IV V VI VII
name
Fuel – 52% 36 34 14 10 - 13 - 100
efficiency
Price 20% 14 36 20 5 7 11 7 100

Durability 10% 14 14 50 13 - 4 5 100

Easy loans 8% 16 13 4 57 07 3 - 100

and
availability
of financial
institutions
Availability 5% 10 - - 7 63 3 17 100
of spare
parts and
after sales
service
Exchange 3% 5 13 6 5 3 67 1 100
offers
Power 2% 5 - 6 5 15 - 69 100

Total 100% 100 100 100 100 100 100 100 100

Table – 5 clearly explains the story of factors that customers attach importance to while selecting a particular
tractor.

1. Fuel efficiency: Tractor with less consumption of fuel is really the dream machine for customer Table
– 5 shows that 36 tractor holders ranked this factor as number one while remaining 34 ranked it at
number 2nd position. So the whole purchase decision depends mainly upon the fuel efficiency of the
machine.
 2. Price: 14 customers believe that price is important factor while selecting any tractor. 36 customers rank
this factor on second position from which 20 customers put it on at 3rd position.
3. Durability: 10% customer, about 7 in number ranked the long life factor of the tractor as number one.

4. Loan facilities: 8% customers ranked loan facilities by company for purchasing tractor as number
one. While 57 customers ranked it at 4th position.
5. Availability of spares: 5% customer gave 1st rank to availability of spare parts and after sales
service.
6. Exchange offer: 2 customers want to purchase new tractor from that company which provide
exchange offers to them.

STRENGTH AND WEAKNESSES OF TRACTORS

STRENGTHS:
1) SHAPE: The look of Sonalika is very impressive and is liked by most of the customers. It has a totally new and
different shape of bonnet. Sonalika seems to be the tractor of new generation.

2) BREAKS: Sonalika is lifted with power breaks that provide more safety and power to the driver. No rusting in
breaks (which is the common problem in others) was reported during the whole survey and its brakes are oil
immersed disc brakes which are better and more efficient and provide more safety for while applying brakes.

3) LIFT AND GEAR BOX: Usually, there is a problem regarding down fall of back-lift of tractor after some time.
But during the whole survey, no such complaint was found from Sonalika holders so lift and gear box are good in
comparison to other tractors.

4) SPARE PARTS AVAILABLE: The easy availability of spare parts increase the strengths of Sonalika tractors
but (Only from Authorized Dealers) these spare parts are available but for the facility of the tractor owners ITL
also sells spare parts in its factory premises so tractor owners can also get the spare parts from the ITL plant.

5) SOLID METAL BODY:Special steel is used for making the outer body of
The tractor which makes it more strong this steel is imported steel having some

Composition of other alloys.

6) FUEL EFFICIENCY: Sonalika tractor is friendly to farmers, as it provides good mileage. The 732 model of
Sonalika covers 2.5 acres in 1 hour with 3 Liters. of diesel while its 60 DC cover near about 4.5 acres per hour so
on the front of diesel usage Sonalika is also useful for the farmers.

7) POWER: Sonalika’s model like 745 and 750 cover 3.5 acres per hour and 4.25 acres per hour respectively.

8) TECHNOLOGY: Joint venture with Yanmar Japan provides latest technology, which helps to fulfill, needs
of Indian farmers.

9) AFTER SALES SERVICE: Satisfied after sales service increase the strength of Sonalika in market.

10) WIDE RANGE OF DIFFERENT MODELS: Sonalika International

provides wide range of different tractors to the farmers. Its models like 730, 732,

740, 750 III, 55 and 60 DC are commonly seen on Indian fields.

11) AFFORDABLE PRICE RANGE: Price Range is quite affordable.

WEAKNESSES:
 1) SPARE PARTS: The spare parts of Sonalika tractors were available with Authorized dealer of the company.
Non-availability of such spare parts with other dealer’s causes problem for customers and they has to used fake
or other company’s spares.

2) MUD GUARDS: The metal sheet of mudguards was not too strong and there is a problem of rusting in that
part of tractor. Moreover the gap between the tyres and mudguards is not same on both the sides (in few cases
only).

3) NON-AVAILABILITY OF ACCESSORIES: Accessories like Umbrella shed, Music box, Lock of oil tanks
creates problem, for that customers will have to use material of other companies.

4) STICKERS: Stickers used on Sonalika is made of hard plastic while other tractors have metal stickers for that
purpose.

5) MARKETS TO BE FOUND OR NEW ORGANIZATION : Sonalika is just few years old organization. So,
all the markets were not still covered by it. Moreover people require time to know about the technology of
Sonalika tractors.

Table – 6

OPINION REGARDING INCREASED HORSE POWER

Opinion Frequency Percentage

Yes 55 78%

No 15 22%

Total 70 100%
Table no. 6 shows that about 78% customers are in favor of increasing further H.P. of tractors. While 22% have
opposite opinion to that. Increased H.P. means big or more powerful engines to the tractor. Which will
obviously increase the cost of the tractor. That’s why 15 customers gave the opinion that there is no need for
that. But the majority of customers wanted an increased H.P., to enjoy more power in the field as well as out the
field.

Table no. 7

OPINION ABOUT SONALIKA TRACTORS

Opinions Frequency Percentage

Excellent 24 24%

Good 26 26%

Average 28 28%

Sub-standard 10 10%
Poor 12 12%

Total 100 100%

Table no. 8 and the above figure show the clear picture of opinions about Sonalika tractors.
20% accept Sonalika as an excellent tractor. This opinion was basically of Sonalika holders.

26% vote about Sonalika as ‘Good’ tractor but not comparable with Mahindra. Mahindra and Farm Trac holders
are on this opinion that Sonalika is Good but Mahindra is Excellent.
10% mark Sonalika under Sub-standard as they thought that there are a lot of problem in that tractor.

10% mark it as poor as they have some horrible experience with that machine or as they have not paid the remaining
amount of tractor to the company. But overall 62% are in favor of Sonalika tractors.

Table no. 8

HOW TO BOOST UP THE SALES OF TRACTORS

Solutions Frequency Percentage

Easy loan facilities 52 52%

Gifts and freebies 16 16%

Increase in number of 24 24%

Authorized Dealers

Exchange offer 8 8%

Any other
Total 100 100%

Above table suggests that 52% of the customers will purchase new tractor, if there will be easy loan facilities available to
them.

16% says that they will be attracted with free gifts and other freebies.

24% gave the opinion that sale will increase if there will be a large amount of Authorized Dealers.

8% gave ‘Exchange offer’ a solid reason to boost up the sales.

While 10% gave different opinions to increase sales which includes Advertisements, better after sales service, loans with
the help of companies itself etc.

If 100 marks were awarded to the best tractor, how may marks you will assign to Sonalika?

TRACTOR HOLDERS OF DIFFERENT COMPANIES OUT OF 100, MARKS ALLOTTED TO SONALIKA

Mahindra 20 Table no. 9

Tafe 40

Farm Trac 30

Eicher 60

Ford 40

Sonalika 90

Swaraj 60

Massey 60
Table no. 9 shows
HMT 60
that Sonalika

Escort 40 tractors have just

Average Marks 50
passed its half way to success. They have to provide more services, better performance from their product if

they want to be market leader. Table shows that only Sonalika tractor holders assign 90 marks to its own

machine.

In further it should be 100 percent.

In the view of Swaraj, Massey, HMT, and Eicher holders. Sonalika is a good tractor and they have allotted them

60 points each respectively. Mahindra the top market leader assign the minimum 20 points to Sonalika. So, if

we see the overall view of tractor holders, Sonalika is the second best option after Mahindra.

QUESTIONNAIRE
Name Contact NO.

1. Which brand of tractor you are currently using?

a. Sonalika b. Swaraj [Link] Trac [Link] [Link] f.M&M
g. HMT h. Escort i. Eicher j. Massey k. Any other
2. Which HP range tractor you have?
a. less than 10 HP b. 10-20 HP c. 20-30 HP d. 30-40 HP e. 50-60 HP
3. Tick mark on the scale given below with respect to satisfaction you have derived from your purchase?
And why? Reasons for that:

Dis-satisfied Not-satisfied Just OK Quite Satisfied

Very Much
Satisfied

4. Which particular factor affected your purchase decision?

FACTOR Strongly Disagree Neutral Agree Strongly
Disagree Agree
Advertisement
Technology
Reference
 group

Availability

Brand image

Any other

5. Which three tractors will you rate as the best in the market and why?
RANK Tractor Brand WHY
1st rank
2nd rank
3rd rank

6. Which factors you consider while purchasing a tractor?

FACTOR Strongly Disagree Neutral Agree Strongly
Disagree Agree
Fuel
efficiency
Price
After sales
service and
spare parts
Power
Durability
Availability of
financial
assistance
Exchange
offers

7. As per your opinion, which are the strengths and weaknesses of the tractor you have?
a. Positives _______________
 b. Negatives _______________

8. What is your opinion about Sonalika tractor in general and why?

Tractor Brand Poor Sub- Average Good Excellent Why
standard

Mahindra
Sonalika
HMT
Tafe
Escort
Messy
Ford
Farm Tec
Eicher

9. What should a company do to boost up its sales in tractors?

Factors Strongly Disagree Neutral Agree Strongly
Disagree Agree
Easy loan
facilities
Discounts, gifts
Increase the no.
of dealers
Personal selling
Price
Exchange offers

10. Out of 100 assign the points to various tractors?

Tractors Assigned Points Why
Mahindra
sonalika
HMT
 Tafe
Escort
Massey
Ford
Farm Trac
Eicher

11. From which factor you feel that this company tractor is different from other company’s tractor?
a. Engine performance b. technical advancement c. Price d. Promotional schemes
e. Any other (specify)

SUGGESTIONS:

Following are the important findings of the Survey:

1. The purchase decision of potential tractor owner was mostly dependent on the reference groups. The advice
from friends, co-workers, family, neighbors, and opinion leader works a lot for the potential buyer.
2. Brand image and technology is the two important factors that help in increasing the sales. Bad experience of any
customer with his tractor means advice for not purchasing that company’s tractor.
3. About 70% of the Sonalika tractor owners are satisfied from their purchase but still 30% came in the category of
not satisfied.
4. Rank wise, Sonalika tractor is ranked III after its competitors Mahindra at I and Swaraj and HMT at II spot.
5. Fuel efficiency and Price of tractor are the most important factors attached to customers while selecting a
particular tractor.
6. Increasing horsepower of the tractor means a more price to tractor. So Sonalika have to wait till there is a
market for such tractors.
7. About 56% tractor owners (including other companies) ranked Sonalika tractor as Excellent and Good.
8. Easy loan facilities, better after sales services are two other important factors to be considered if company wants
to boost up its sales.
9. Availability of spare parts was also needed in many areas.
10. Few minor problems like rushing in breaks, horns, lights, seat cover, lift, oil-tank lock also require a little
attention
11. Handling of the claims regarding spare parts or other requires some attention also.
12. Availability of accessories like umbrella shed, music box etc. will definitely helps in boosting sales.
 CONCLUSION:

From this survey the conclusion appears that people want a particular tractor which is having a good mileage and is
having low running costs involved and consumes less diesel so that farmers can save their hard earned money. The
tractor must be cheaper in cost than other competitors’ tractors and the engine should be strong and well maintained so
that it they should not be worried about its servicing all the time. and it should be durable in all conditions on safety side
it should be having disc brakes and if it is having 4 wheel drive than it is considered as a additional advantage. And the
spare parts and repair should be easily available so all these qualities people want in their tractor and they will like to
purchase that tractor which is having all these qualities.

Customers wanted a tractor, which have following features:

 Less consumption of oil

 Cheaper in cost
 Long life of machine
 Hard to be parted from (Durability)
 Powerful as well as stylish look.
 Solid from inside as well as outside.
 Good quality accessories like seat covers, umbrella shed music box etc.
 Easy availability of spare parts and repair.
 Low maintenance cost.
 Higher resale value of the machine.
 Availability of dealers