A COMPREHENSIVE STUDY ON CONSUMER BEHAVIOUR

TOWARDS MAHINDRA TRACTOR

By

UPPALA MEGHANA

HT NO: 217021683010
 ABSTRACT

Consumer Behavior is the study of how individual customers, groups or organizations select, buy, use, and
dispose ideas, goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in
the marketplace and the underlying motives for those actions.

Marketers expect that by understanding what causes the consumers to buy particular goods and services, they
will be able to determine—which products are needed in the marketplace, which are obsolete, and how best to
present the goods to the consumers.

The consumers play various roles in the marketplace. Starting from the information provider, from the user to
the payer and to the disposer, consumers play these roles in the decision process. This can be connected with
this study of understanding consumer behavior towards M&M tractors.

Agricultural growth depends primarily on two main factors - institutional factors and technical factors.
Institutional reforms or factors include land reform, tenancy reforms and institutional credit reforms etc.
Technical factors emphasize using agricultural inputs like high yielding variety seeds, fertilizers and
mechanization of agriculture. As far as the mechanization of agriculture is concerned, tractor is one of the most
important equipments used for farming. Major manufacturers of the tractors in India are – Either , Escorts, Ford,
Indo Farm, HMT, Mahindra & Mahindra, New Holland, Punjab Tractors , Sonalika, Tafe etc. This study
focuses on M&M tractors.

The project report highlights consumer perception towards Mahindra tractors and its good will in the market. It
also tells the popularity and brand recognition of M&M tractors among the customers i.e., agriculture farmers. It
reveals how focusing on quality in affordable prices have emerged as company’s core deliverables and satisfy
the needs of agriculture customers.
 TABLE OF CONTENTS

Sr. No. Particular Page No.

1. Introduction 2

2. 9
Company Profile
28
3. Research Objectives

4. Review of Literature 30

Research Methodology
i. Research Problem 35

ii. Types of research 35

5.
iii. Data collection method 35

iv. Sampling technique 36

v. Sample size 36

vi. Sample area 37

6. Data Analysis & Interpretation 38

7. Findings 49
8. Limitations 51
9. Conclusion 53
10. Recommendations 55
11. Bibliography 57
12. Annexure 59
 Questionnaire
60
 EXECUTIVE SUMMARY

MAHINDRA & MAHINDRA (M&M), the market leader in multi utility vehicles in India, today
announced the financial result for the quarter ended 31 st March 2018 and the audited result for the year
ended 31st March 2018.

The gross revenue and other income of M&M for the quarter is Rs.4171.6 crores as against Rs.3666.3
crores during the corresponding period last year a growth of 13.8%. During the quarter, the
company’s profit after tax shot up 89.1% to Rs.418.1 crores, as against Rs.221.1 crores in the same
period last year.

The main objective of the study is to understand the” Consumer Behavior towards Mahindra
Tractor”. The survey involved gathering wide information about the company, its product, customer
buying behavior and impact of various competitive firms on the company.

From the information collected, various aspect were identified by the company, where there is a needs
to focus more to improve the efficiency of marketing team of the Mahindra Automotives.

The research was conducted through collection of primary and secondary data. Secondary data was
collected through visiting web sites, automobile magazines and other reliable sources. Primary data
was collected through a well framed questionnaire, from which a detailed analysis was done using
various method. On the Basis, the secondary data analysis and the extensive analysis of the primary
data, interpretations were drawn for the question and conclusion has been drawn.

The internship was done at M&M, Fazalganj Kanpur and sample size of 50 was chosen. The
conclusions drawn from the study and analysis were Mahindra and Mahindra have a Good market
share near Kanpur. According to survey, majority of customer not satisfied with overall service
provided by Mahindra tractors. However, there are some following aspects that management should
resolve like attitude toward customer, after sales services, service call, servicing campaign, trade show
and conflict between dealers. The main competitor of Mahindra tractors in present scenario is John
Deere and Sonalika Tractors.

1
INTRODUCTION

2
 1. INTRODUCTION

1.1 CUSTOMER BUYING BEHAVIOUR & SATISFACTION

Customer Satisfaction is the buzzword used by the business people for the success of
organization in the present days. Due to the increases of heavy competition in every
product – Line it become difficult for the companies to retain the customers for longer
time. So retain the Customer for longer time the marketer has to do only one things i.e.
customer satisfaction .If Customer is fully satisfied by the product it not only rub the
organization successfully but also Fetch many benefits for the company. They are less
process sensitive and they remain customer For a longer period. They buy addition
products overtimes as the company introduce related Produce related products or
improved, so customer satisfactions is gaining a lot of importance in the present day.

The impact of automobile industry on the rest of the economy has been so pervasive
and momentous that is characterized as second industrial. It played a vital role in
helping the nation to produce higher value good and services and in the enhancing
their skills and impose tremendous demand for automobile.

The decrease in the interest rate and easy available of tractors from 2 to 3 years, lot of
car manufacturers company facing cut throat competition in the fields of technology
and price, So to gain the market share it is important for the institutes to satisfy its
customers and to retain the reputation and its image.

 Customer Satisfaction Strategies Followed By M&M:-

The different strategies followed by M&M consists of Customer relationship management,
Strategy to providing better facility to the owner, and strategy to provide better after sales
service to customer.
Customer Relationship Management:-
CRM as a tool was used to create positive word-of mouth, to monitor customer
experiences and generate referrals. A series of CRM activities were implemented with
regular direct communication, events and customer satisfaction surveys, etc.

3
1.2 Evolution and Growth of Tractors in India

As commercialization of agriculture grew in intensity in the mid-to-late 19th century the British
Raj and the local legislatures and provinces began investing in agricultural development through
support and establishment agricultural research farms and colleges and large scale irrigation
schemes yet the level of mechanization was low at the time of independence in 1947. The
socialist oriented five year plans of the 1950s and 60s aggressively promoted rural
mechanization via joint ventures and tie-ups between local industrialists and international tractor
manufacturers. Despite this aggressiveness the first three decades after independence local
production of 4-wheel tractors grew slowly. 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. Despite these impressive
numbers FAO statistics estimate that of total agricultural area in India, less than 50% is under
mechanized land preparation, indicating large opportunities still exist for agricultural
mechanization

1. 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. There were 8,500 tractors in use in 1951, 20,000 in 1955 and 37,000 by 1960.

2. 1961 to 1970

Local production began in 1961 with five manufacturers producing a total of 880 units per year.
By 1965 this had increased to over 5000 units per year and the total in use had risen to over
52,000. By 1970 annual production had exceeded 20,000 units with over 146,000 units working
in the country.

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 3. 1971 to 1980

Six new manufacturers were established during this period although three companies (Kirloskar
Tractors, Harsha Tractors and Pittie Tractors) did not survive.HMT, a large public sector unit,
began manufacturing Agricultural Tractors in 1972 under the HMT brand name with technology
acquired from Zetor of the Czech Republic. 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. Credit facilities for farmers continued to improve and the
tractor market expanded rapidly with the total in use passing the half million mark by 1980.

4. 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 when the total in use was about 1.2 million. Then India - a net
importer up to the mid-seventies - became an exporter in the 1980s mainly to countries in Africa.

5. 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.

6. 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. The company is making a $US 75 million initial investment in a state of the art plant
at Greater Noida in Uttar Pradesh state with an initial capacity of 35000 units per year. 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

5
similar arrangements with Same Deutz-Fahr of Italy. Looking to South American export markets
Mahindra and Mahindra are also developing a joint venture with Case for tractors in the 60-
200 hp range. Total annual production was forecast to reach 300,000 during the following year.

7. 1999 to Present

Facing market saturation in the traditional markets of the north west (Punjab, Haryana, Western
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. There are also reported increased misuse of these loans for buying either
lifestyle goods, or for social functions. Government and private banks have both tightened their
lending for this sector adding to the industry and farmers woes. 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.

1.3 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 largest manufacturer in India.

1.4 Consumers buying behavior towards Agriculture Equipments like Tractor

Studying consumers buying motives becomes more important because they make their buying
decisions in each and every aspects of life. All promotional activities are basically dependent on
consumption pattern of the consumers which is directly or indirectly affects the sales of the
products and services. The framed objectives of the paper, to study buying motives of
agricultural equipments and to evaluate the most important factors like products brand,

6
availability of products, financial subsidy, product capacity, after sales services etc considered
for the buying of any agricultural equipments. Descriptive research design has been used in this
study. The study was carried out in districts of Kanpur Dehat region in Uttar Pradesh. Research
paper has used to primary as well as secondary data. The researcher has been collected the
primary data from the equipments owners who had bought their equipments for services to the
dealer points during the study period in districts of Kanpur Dehat region. Factor analysis was
used to find out the most influencing factors considered by the respondents while making the
buying decision of agricultural equipments. It is found as per the ranking given by the
respondents subsidy is ranked first and followed by sources consulted, horse power, after sales
service, price and brand name respectively are considered for buying of agricultural equipments.

1.5 Pictures of Mahindra tractors

Figure1. Picture of M&M Tractors

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1.6 Benefits of tractors to the farmers
A tractor can act as a best friend to a farmer. In a country like India where farming and
agriculture is the leading occupation of the people, a tractor plays a vital role in the life of a
farmer. It can deliver several advantages to the farmers and make the task of farming easier

For a farmer saving time and resources is a smart strategy as it helps to cut down the expenses of
farming. The usage of tractor results in the reduction of human resources in terms of harvesting
and planting. Moreover, some good time is saved by the farmer as he is able to cover a large area
of land in lesser time.

As the advancement of technology has happened, farming equipment has evolved considerably.
Various farming implements are attachable to the tractors that help in processing the soil for
plantation, planting, and harvesting. Tractors can also be efficiently used to provide fertilizers to
lands of large areas.

So, these are some prominent reasons for the benefit of tractors in a farmer's life in India. As an
efficient machine, it helps the farmer to comprehensively carry out the various works related to
the farming. Therefore, with a tractor, you as a farmer in India can expect good profits in the
case of farming.

8
COMPANY PROFILE

9
 2. COMPANY PROFILE

2.1 Basics of M&M

Mahindra & Mahindra Limited

Formerly Mahindra and Mahindra

Type Public
BSE: 500520
Traded as
BSE SENSEX Constituent
Industry Automotive
Founded 1945; 73 years ago in [Jassowal
Sudan] Ludhiana, Punjab, India
Founder J. C. Mahindra
K. C. Mahindra
Malik Ghulam Muhammad
Headquarters Mumbai, Maharashtra, India
Area served Worldwide
Key people Anand Mahindra (Executive Chairman)
Pawan Kumar Goenka (MD)
Products Automobiles, commercial vehicles, two-wheelers
Revenue ₹93,896 crore(US$13 billion)[(2018)
Operating income ₹6,223 crore(US$870 million) (2018)
Net income ₹4,356 crore(US$610 million) (2018)
Total assets ₹47,416 crore(US$6.6 billion)(2018)
Number of 39,276[2] (March 2016)
employees
Parent Mahindra Group
Subsidiaries Pininfarina (76.06%)
Mahindra Two Wheelers limited
SsangYong Motor Company(70%)
B.S.A Company
Erkunt Tractor
Reva Electric Car Company
Peugeot Motocycles (51%)
Website www.mahindra.com

10
M&M's association with the automobile business dates back to 1945. The Company was

incorporated in 1945 and was originally formed to manufacture utility vehicles for the Indian

market, initially by importing and assembling Willys Jeep kits. The manufacture of utility

vehicles commenced in 1954 in collaboration with Willys Overland Corporation and its

successors, Kaiser Jeep Corporation and American Motor Corporation (now part of the Daimler

Chrysler group). The Company commenced manufacturing Light Commercial Vehicles (LCV)

in 1965. The Company has recently entered the three-wheeler market.

Over the years, the Mahindra brand of vehicles have come to represent high quality, ruggedness,
durability, reliability, easy maintenance and operational economy. These are the qualities that
have endeared the vehicle to individuals as well as institutions like the Indian armed forces.
M&M is the leader in the MUV business in the country since inception.

M&M has comprehensive manufacturing facilities with high level of vertical integration.

M&M's automotive division has four manufacturing plants, three in the state of Maharashtra and

one in Andhra Pradesh. In Maharashtra, its plants in Mumbai and Nasik manufacture multi-

utility vehicles, and engines are produced at the Igatpuri plant. Light commercial vehicles and

three-wheelers are manufactured at the Company's plant in Zaheerabad in Andhra Pradesh.

Locally owned business joins U.S. Network of dealers. Medina, OH- Medina Tractors sales in
now adding more valve muscles and power to its selection by offering the number one selling the
Tractor in the world, Mahindra Tractors after 81 years in the business, Medina Tractors sales is
joining the growing family of more than 300 U.S Tractor dealer that are offering customer the
valve of heavy duty to built the last Mahindra power house. In addition, Medina Tractors sales
will be offering the Mahindra’s “Best in Class” 5 years power Tractors Warranty program.

“Medina Tractors sales is provided to be a full services Mahindra dealer- parts, services sales and
looks forward to sharing our great customer services with the Mahindra family. “Said Brent
Hollopeter, President of Medina Tractors.”

11
Mahindra is known for building rugged work houses that never take a day off and for more
power for less money. Offering more than 30 two wheel and four wheel drive Tractors in the 18-
83 horse power range, Mahindra Tractors are perfect for homeowners, hobby formers, turf
managers, nursery operators and small and medium size contractors. All Mahindra tractors have
a 2 year bumper warranty plus additional 3 year warranty on the drive train for residential usage.

Mahindra USA Inc, enjoys an extraordinarily high level of customer satisfaction due to an
unequalled commitment to quality. A recent study found at 98% of Mahindra owners were likely
to recommend Mahindra to their friends and family.

Tractors owners are not the only people touting the quality of Mahindra products. In 2007
M&M’s farm equipment sector only tractor manufacturing in the world to receive the coveted
Japan quality medal for excellence in total quality management, awarded by the deming price
committee care of union of Japanese scientists.

Mahindra USA is the part of US $ 7.1 billion Mahindra Groups Automotive and farm sector- the
1 selling tractors company in world is based on volumes.

For the past 26 years, the farm sector has maintained his leadership position in the Indian tractor
industry, the world largest market and as a global presence with operations in 35 countries.

2003- It has Deming application price in Mahindra’s form sector.

2007- Japan quality models.

2.1 Place of the Company

 20th company in the World.

 2nd company in the India

Only the tractors manufacturing plants are:-

 5 Plants in India.
 2 Plants in China.
 3 Assembly plants in USA.
 1 Assembly plants in Australia.

12
The sector also as a subsidiary Agricultural tractors manufacturing company in India known as
Mahindra Gujarat Tractor Ltd [MGTL].
Houston tax as based Mahindra USA is only owned subsidiary of M&M Ltd.
3 distribution units in USA.

2.2 Board of Directors of M&M:-

The board of directors of the company has its member’s eminent person from Industry, Finance,
Investment and Other branches of business who bring diverse experience and expertise to the
board.

2.3 The company’s current board of director of M&M Tractor

Names Designation

Mr. Anand Mahindra CEO

Mr. Keshwb Mahindra Chairman

Mr. Anand. G. Mahindra Vice-Chair and MD

Mr. Deepak Shantilal Director

MM Murugappa Director

Bharat Naratham Joshi Executive Director and

Group Chief Finance Office

Arun Kumar Nanda Executive Director and

Secretary

Nandu Burioji Godrg Director

Narayanan vaghul Director

Dr Ashok shaker Ganguly Director

R K Kulkarni Director

Anupam Peadip Puri Director

Thomas Mathew Director

13
2.4 History of the Company

M&M was set up as a steel trading company in 1945. It soon expanded into manufacturing
general-purpose utility vehicles, starting with assembly under license of the iconic Willies Jeep
in India. Soon established as the Jeep manufacturers of India, M&M later branched out into the
manufacture of light commercial vehicles (LCVs) and agricultural tractors. Today, M&M is the
leader in the utility vehicle segment in India with its flagship UV Scorpio and enjoys a growing
global market presence in both the automotive and tractor businesses.

Over the past few years, M&M has expanded into new industries and geographies. They entered
into the two-wheeler segment by taking over Kinetic Motors in India. M&M also has controlling
stake in REVA Electric Car Company and acquired South Korea's SsangYong Motor Company
in 2011.

The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies
in its 'Global 200: The World's Best Corporate Reputations' list.

From army vehicles to farm tractors to major automobile manufacturing, Mahindra's relationship
with American industry goes back quite a few years. American GI's who served in India during
World War II recognize our parent company, M&M , which in l945 was selected to assemble the
famous Willis Jeep.

Following Indian independence in 1947, charted a course of product expansion and

globalization. The philosophy led to the company's entrance into the worldwide tractor market.

In 1962, M&M formed a joint venture with International Harvester to make tractors carrying the
name Mahindra name-plate for the Indian market. Armed with engineering, tooling and
manufacturing know-how gained from this relationship, M&M-a major auto maker- developed
its first tractor, the B-275. This successor to International Harvester's incredibly popular B-414 is
still the basis for some current Mahindra models. Today, Mahindra is the third largest tractor
manufacturer in the world with sales of nearly 85,000 units annually in 10 countries. This places
them ahead of John Deere & Kubota. In India, Mahindra has been the number one selling brand
since 1983.

14
2.5 The various types of tractors model and its prices:-

Tractors models Prices (in lakhs)

 275 DI New BP 4, 76,595

 275 DI Old BP 4, 82,595

 275 DI NST 4, 91,595

 295 DI Turbo 4, 91,595

 475 DI New BP 5, 01,595

 475 DI Old BP 5, 01,595

 475 DI MKM 5, 02,595

 475 DI Total [without

Case vehicles] 5, 30,595

 475 Delux [OTB] 5, 40,595

 575 DI New BP 5, 40,595

 575 DI Old BP 5, 33,595

 575 DI NST 5, 42,595

 595 DI Turbo 5, 62,595

 605 Arjun [Base] 5, 84,595

 605 Arjun [Carrarro]

Harvester special 6, 32,595

 605 Arjun [RJCE]Construction loader 6, 51,595

15
2.6 Various Variants of M&M Tractors:-

Figure 2. Image of Various variants of M&M tractors

2.7 Organization structure

16
 Figure3. Organization Structure

2.8 Theoretical aspects of Consumer Behavior

The study of consumer behavior is the study of how individuals make decision to spend their
available resources (time, money & effort) on consumption-related items. It includes the study
of what they buy why they busy is, when they buy it, where they buy it, how often they buy it
and how often they use it.

Consider a more durable product, such as the Two-wheeler. What kinds of consumer by fax
machines for how use? What features do they look for? What benefits do they seek? How likely
they to replace there are old models when new models with added features become available?
The answers theses questions can be found through consumer research and can provide
manufactures with important input for product scheduling, design, modification & promotional
strategy.

Although how and why consumer make decisions to buy goods and services consumer research
goes far beyond these facts of consumer behavior and encompasses all of the behaviors that
consumers display in searching for purchasing, using, evaluating, and disposing of products &
services that they except will satisfy their needs.

Marketers must decide at whom to direct their promotional efforts the buyer or the user. For
some products, they must identify the person who is most likely; to influence the decision-who
may be neither the buyer nor the user. Some marketers believe that the buyer of the product is
the best prospect others believe it is the user of the product, will still others play it safe directing
their promotional efforts to both buyers and users.

Consumer behavior was a relatively, new fields of study in the mid to late 1960’s. with no
history or body of research of its own, the discipline borrowed heavily from concepts developed
in other scientific discipline, such as psychology ( the study of how an individual), sociology (the
study of groups), social psychology (the study of how and individual operators in groups),
anthropology (the influence of society on the individual) and economics. Many early theories
concerning consumer behavior based on economics theory, on the notion those individuals at
rationally to maximize their benefit (satisfaction) in the purchase of goods and services.
17
2.9 Meaning of market

Market plays a very important role in management field. Where buyers and sellers come at one
point and make their business transactions all the activity and business transaction will be done
at one particular place. That place is called market.

2.10 Importance of the market

Market plays a very crucial role and make their purchase and sale decision. A market is a
dynamic world. A market is a place where buyer and seller meet together is place where
consumer can satisfy their needs and wants.

2.11 Definition/meaning of market

Although the description of the marketing has around some semantic controversies, which has
retained thematic similarity emphasis variations notwithstanding.

According to Philip Kotler “The process of planning and execution the conception pricing
promotion and distribution of ideas goods services to create exchange that satisfy individual and
organization goals.”

According to America,: marketing association(AMA) “Marketing is concerned with the

people and activities involved in the flow of goods and service from the producer to consumers.”

2.12 Who is consumer?

Consumer is one who is an actual user of the goods and services, who express his feelings after
actual use, whether the goods and services are up to his satisfaction of not. In other words
consumer are persons who act in the capacity of consumers, whether they consume on their own
behalf (final consumer) or consumer’s a necessary part of these employments in institutions or
industry

2.13 Consumer Buying Behavior

According to LONDON Della Bitta consumer may be defines as “The decision process and
physical activity individuals engage in men evaluating, acquiring, using or disposing of goods
and services”.

18
According to Webster it may be defined as “All psychological social and physical behavior of
the potential customers as they become aware of evaluate purchases, consume and other product
and services”.

In chart consumer behavior is the act of consuming or using goods or services. So in consumer
behavior we consider not only part of decision process but also why, after and under what
condition the purchases in needed.

2.13.1 The buying process

To be successful, marketer have to go beyond the various influences on buyers and develop an
understand of how consumers actually make their buying decisions. Specifically marketers must
indentify who makes the buying decisions and the steps in the buying process.

2.13.1.1 Buying roles:

We can distinguish five roles people might play in a buying decision:-

 Initiator: a person who first suggest the idea of buying the product or service.
 Influencer: a person whose view or advice influences the decision
 Decider: a person who decides on any component of a buying decision-whether to by,
what to buy, or where to buy.
 Buyer: the person who makes the actual purchase.
 User:- a person who consumes or uses the product or service.

2.14 Buying Behavior

Consumer decision-making varies with the type buying decision. Complex and expensive
purchases are likely to involve more buyer deliberation and more participants. Assail
distinguished four types of consumer buying behavior based on the degree of buyer involvement
and the degree of differences among brands.

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2.14.1 Major factors influencing buying:

2.14.1.1 Behavior

The buyer’s behavior is influenced by four major factors which are as follows:

Factor influencing consumer behavior:-

I. Cultural factors
 Culture
 Subculture.
 Social class.
II. Social factors
 Reference group.
 Family.

 Roles and statuses.

III. Personal factors
 Age and stage in the life cycle.
 Occupation.
 Economic circumstances
 Life style.
IV. Psychological factors
 Motivation
 Perception.
 Learning

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2.14.2 Buyer characteristics-

2.14.2.1 Influencing consumer:

Social
Cultural Reference
Personal
Groups
Culture
Age & Life Psychological B
Family
Occupation
Sub culture U
Economics Motivation Y
Role
Circumstance & Perception
Social class E
Strategies
Life style Leading R
Personality Attitude &
Beliefs

Philip kotler

Marketing management

Figure 4 . Influencing Consumer

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2.14.2.2 Cultural characteristics
The broadest influence on the buyer is the buyer cultural characteristics, particularly the buyer’s
culture, sub-culture and social class identification.

2.14.2.2 (A) Culture:

It is the most fundamental determinant of wants and behavior whereas of lower creatures is
largely by instinct, human behavior is largely learned. The new baby as it grows up in a society
will earn a basic of socialization involving the family and other Key institutions.

2.14.2.2 (B) Sub-culture:

Each culture contains similar groups or sub-groups and each of those provides more specific
identification and socialization for its members.

2.14.2.2 (C) Social class:

Virtually all-human societies exhibit social satisfaction. Satisfaction may take the form of a cast
system where the numbers of different castes are reared for certain roles and cannot change their
caste membership.

2.14.2.2 (D) Several features:

I. Persons within given class tends to behave more alike.

II. Persons as ranked as occupying inferior or superior position.

III. It is measured as weighted function of one’s occupation, income, wealth, education, value
orientation etc.

IV. It is continues rather than discrete, with individuals able to move into a higher social class or
drop into a lower one.

2.14.2.3 Social characteristics -

It includes reference group, family and status of the buyer.

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2.14.2.3.1 Reference groups

This group influence the person’s attitudes, opinions and values. Some are primary groups such
as family; close friends, neighbors and fellow worker and other are secondary groups such as
fraternal organization & professional association. Groups they are not members of called
Inspirational groups also influence people. Sports heroes & motive starts are typical members of
these groups.

2.14.2.3.2 Family

Of all the face groups, a person’s a family undoubtedly plays the largest & most enduring role in
influencing has or her attitudes. Opinions & values from the family the person acquires a mental
set not only towards religion, politics & economics but also towards personal ambition, self
worth & loves. Even if the buyer no longer interacts very much with his or her family, the family
influence on the unconscious behavior of the buyer can be strong.

2.14.2.3.3 Role & Statuses

A person participates in many groups throughout life family other reference groups,
organizations & institution.

The person will have a certain position in each group that can be defined in terms of role &
status. Each role has a status attached to it. This reflects the general esteem according to that
role in society or in the eyes of the immediate group.

2.14.2.4 Personal characteristics -

The buyer’s age and life cycle occupation, economic circumstances, life style & personality also
influence a buyer decision.

2.14.2.4(A) Age and life cycle:

The concept of family life cycles has been developed to help identity possible changing wants,
attitudes & values, as people grow older. Seven stages of the family life cycle have been
distinguished.

23
 The bachelor stage : young, single people.

Newly married couples : young no children.

The fullness I : young married couples with youngest

Child under six.

The fullness II :young married couples with youngest

Child six or over.

The fullness III : older married couples with

Depending on children.

The emptiness : older married couples with no

Children are living with them.

The solitary survivors : older single people.

2.14.2.4(B) Occupation:

Persons occupation will lead to needs and wants for goods services. A blue cooler worker will

buy work clothiers & work shoes. His or her company president buys expensive goods.

2.14.2.4(C) Economics circumstances:

People’s economic circumstances will greatly affects the goods & services they consider & buy.
Their circumstances consist of their income saving & asset, borrowing power & attitude towards
spending versus saving.

2.14.2.4(D) Life style:

People coming from some sub-culture, social class, and even occupational group can choose to
lead quite different life styles. Marketers believe that person’s products and brand choices are a
key indicator of his of her life style.

24
2.14.2.4(E) Personality:

Personality describes the organization of the individuals distinguishing character trait attitudes
and habits. Each person has a distinct personality marketed by such traits as their degree of
extraversion versus introversion impulsiveness versus deliberativeness, creativity versus
conventionality and activeness versus passiveness.

2.14.2.5 Psychological characteristics -

Four major Psychological process motivation, perception learning & beliefs & attitudes also
influence a person’s buying choice.

2.14.2.5(A) Motivation:

A person will recognize himself or herself as having all kinds of needs at any point in time.
Some needs are, Biogenic need for food, drink, sex and bodily comfort. Psychogenic such as
need for recognition, response or variety of experience.

A motive is stimulated need that it sufficiently pressing to direct the person towards the goal of
satisfying the need.

2.14.2.5(B) Learning:

A motivated person is ready to act. How the motivated person decides to act is influenced by
him or her perception of the situation. Two people in the same motivated state and objective
situation may act quite differently because they perceive the situation differently.

When people act, they experience direct and indirect effect, which influence their future behavior
learning, is the name given to the change in an individual behavior arising from experience most
of behavior is learned.

2.14.2.5(C) Beliefs and Attitudes:

Through the learning process, people acquire their beliefs and attitudes. These in turn influence
their behavior.

25
A belief is a descriptive thought that a person holds about something manufacturers are very
much interested in the beliefs that people carry in their heads about their products and services.
An attitude describes a person enduring favorable or unfavorable condition evaluation,
emotional, feeling and action tendencies towards some objects or idea. Attitudes function in
people’s level to enable them to have a fairly consistence behavior towards similar classes of
objects.

2.14.2.5(D) Buyers characteristics:

To understand buyer characteristics we should understand cultural, social, personal and

psychological factors.

a. Product characteristics

b. Seller characteristics

c. Situational characteristic

2.14.2.5[a] Product characteristics:-

Various characteristics of the product that is quality and backup services will influence the
buying outcome.

2.14.2.5[b] Seller characteristics:-

Characteristics of the seller that is retailer’s knowledge, ability, friendliness and services will
influence the buying outcome.

2.14.2.5[C] Situational characteristics:-

Various situational factors that are time pressure, time of the year, weather chance meeting with
friends and the current economic outlook will also influence the buying decision.

All four components of buying situation- buyer product, seller and situation interact to product
the buying outcome.

26
RESEARCH OBJECTIVES

27
 3. Research Objectives

1. To study the current consumer behavior towards purchase of M&M tractors.

2. To study the effectiveness of M&M tractors as agriculture equipment.

3. To determine the popularity of M&M tractors in comparison to various competitors in the

market.

4. To evaluate the consumer satisfaction towards the M&M tractors.

5. To suggest any improvement to the existing models of M&M tractor as per the customer
needs.

28
REVIEW OF LITERATURE

29
 4. Review of Literature

4.1 Meaning of the Customer Satisfaction

Whether the buyer is satisfied alter purchase depends on the oilers performance in relation to the
buyers expectations in general

"Satisfaction is a person’s feeling of pleasure or disappointment resulting from comparing a

products perceived performance (or outcome) in relation to his/her expectations.

As this definition makes clear, satisfaction is a faction of perceived performance and expectation.
If the performance fails short of expectations, the customer dissatisfied, highly many companies
are aiming for high satisfaction, because customers who are just satisfied still find it easy to
switch when a better offer comes along. Those also are highly satisfied are much less ready to
switch high rates faction or delight creates an emotional bond with the brand, net just a rational
preference the result is high customer loyalty.

Buying experiments friends and associates advice and market and competitor’s information and
promises. If marketer raises expectations too high the buying is likely to be disappointed.

A customer decision to be loyal or to default is the sum of many small encounters with the
company, consulting firms etc. Corporation says that in order to convert all the small encounters
to customer loyalty, companies need to create a "Brand Customer Experience".

Customer oriented thinking requires the company to define customer needs from the
customer point of view not from its own point of view. Every product involves tradeoffs, and
management cannot know what these are without talking 10 and researching customers. Thus, a
car buyer would like a high performance car that never breaks down that is safe, attractively
styled and chief Since, all of them virtues cannot be confined in one can the car designer must
make hard

Chooses not on what pleases them but rather on what customer prefer are expect. The aim, after
all, is to make a sale through meeting the customer’s need.

30
4.2 Why is it supremely important to satisfy to customer?

Basically because of company's sale each period comes from two groups ie; New customer and
repeat customer. It always cost more to attract new customers than to retain current customer.
Therefore, customer retention is more critical than customer attraction.

The Key to customer retention is customer satisfaction to satisfied Customer.

• Buys again

• Talks favorably to others about the company.

• Pays less attention to competing brands and advertising.

• Buys other products from the same company.

One Japanese businessman told the magazines "our aim goes behind satisfying the customers,
our aim is to delight the customer". In fact, this is higher the great marketers. They go behind
meeting the mere expectations of the customers, when they delight a customer, the customer
talks to even more acquaintances about the one company. The delighted customers are more
effective adventurous than advertisement placed in the Media.

Now let us consider what happen when the company creates a dissatisfied customer. Whereas we
have pointed out, a satisfied customer tells three people about a good product experience, a
dissatisfied customer gripes to eleven people. In fact, in one study, 13% of the people who had a
problem with an organization complain about the company to more than 20 people. Suppose
each person who heard the bad story told to eleven people. Suppose each person who told
another eleven and soon. Clearly, bad word of mouth travels faster and faster than good word of
mouth and car easily poison the public's attitude about the company.

Thus, a company should be away to regularly measure customer satisfaction. It cannot rely just
on voluntary complain from customers when they are dissatisfied. In fact, 96% of the unhappy
customers never tell the company. Companies should set up survey and suggestion systems to
maximize to customers opportunity to complaint.

31
.

Listening is not enough. He company must respond constructively in the complain of the
customers who register a complain between 54 and 70% will do business again with the
organization. If the customer feels that t h e complaint was resolved quickly. Customers who
have complain to an organization and had their complaints satisfactorily resolved tell about the
organization to fine people about the treatment they received. When a company realizes that a
loyal customer may account for a substantially sum of revenue over the years, it seems foolish to
risk losing over a small matter, for example, IBM makes sales person write a full report on each
least customer and all the steps are taken to restore satisfaction.

A customer-oriented company would track its customer satisfaction level each period and set
improvement goals. If they manage to increase customer satisfaction and loyalty, it docs not have
top worry even if its profits are down in a particular year. If is on the right track satisfaction
keeps falling it is on the working track. Profit would go up or down in a particular year for many
reasons, inclosing rising controls, falling prices, major new investments and soon. But, the
ultimate sign of a healthy company is that its customer satisfaction index is high and keeps rising
company’s future profits.

32
 RESEARCH

METHODOLOGY

33
 5 Research Methodology

5.1 Research Problem –

Tractor sales broke their strong link with the monsoons in 2018. In a rainfall deficient year,

tractor industry sales grew by 32 per cent for the 2018-19 fiscal. M&M tractor, the market

leader, saw its farm equipment segment revenues jump 40 per cent and profits zoom by 140 per

cent, over the previous year. Its tractor division’s margins improved by eight percentage points to

19 per cent in 2018-19. Mahindra Tractor manufacturers are expected to see a growth of about 8-

10 per cent in 2014-15 , down from 18-20 per cent last year due to bad monsoons may hasten the

slowdown. The research methodology used is qualitative.

5.2 Research Design –

I propose to first conduct an intensive secondary research to understand the full impact and

implication of the industry to review and criticize the industry norms and reports, on which

certain issues shall be selected. Hence, my research design used is exploratory.

5.3 Data collection sources –

A. Primary sources:

Observation: Direct observation

Personal Interview from customer who purchases a Mahindra tractor.

B. Observation sources:

Keeping the customer view for buying Mahindra tractor

34
Keep telling about Mahindra tractor to purchase from the market easily.

C. Survey:

Various surveys should be taken from the entire customer so that it helps to make the

questionnaire easily. This method of data collection involves the interviewers asking question

in a face to face contact through direct way contact.

5.4 Tools for Data collection –

Data collection tool place with the help of filling questionnaires. The questionnaire method has

come to the more widely used and economical means of data collections. The common factors in

all varieties of questionnaire method are the reliance of verbal responses to questions, written

and oral. I found it essential to make sure the questionnaire was easy to read and understand to

all the spectrum of people in the sample.

5.5 Sampling –

5.5.1 Sampling Population:

There are 100 employees working in Mahindra Tractor at Mahindra and Mahindra Company at

FazalGanj Kanpur. The population was mainly uneducated to understand the survey, however,

questionaaire was filled by asking their preferences for each question.

5.5.2 Sample Size:

I have taken 25 employees from each department.

35
There are 2 departments of the Mahindra tractors at M&M which are Marketing and Finance.

Sample size is 50 (25*2=50).

5.5.3 Sample Area:

The sample area is Fazalganj Kanpur.

5.3.4 Sampling Techniques:

The method I am using here is convenient sampling method.

36
DATA ANALYSIS

AND

INTERPRETATION

37
 6. Analysis of Customer Satisfaction

The analysis of customer satisfaction contain bar charts, pie charts and other tools for the
purpose of understanding the fact and figure in a specified manners.

The data is magnificently fed into excel tool to extract relevant results.

The researcher present and analyze the data collected through the primary source to enable him
read meaning into the responses to the questionnaire. The collected data presented in tables, with
frequency of each variable calculated the analysis drawn depends largely on response from the
data collected the set of questionnaire.

38
6.1 SWOT ANALYSIS OF M&M TRACTORS

Picture A: Swot Analysis of M&M Tractor

39
6.2 PORTER FIVE FORCES ANALYSIS OF M&M TRACTORS

Picture B: Porter Five Forces Analysis of M&M Tractor

40
6.3 Questionnaire Survey

Question 1: Table showing on Age of respondents who prefer Mahindra

tractors?

YEARS No. of Respondents Percentage

BELOW-20 7 20%

20-30 10 25%

30-40 27 40%

40-50 4 10%

ABOVE-50 2 5%

Total 50 100%

45
40 Age chart
35
30
25
20
15
10
5
0
Below-20 20-30 30-40 40-50 above-50

TABLE NO. 1 Age of respondent who prefer Mahindra tractor

INTERPRETATION: It is obvious from the table that the respondent who is in the age
group of 30-40 years has preferred the Mahindra Tractor when to other groups. The second place
goes to the respondent whose age group is in between 20 to 30 and their percentage is 25%.

41
Question 2: Explain is the Mode of sales of Mahindra tractor?

Particulars No. of Respondents Percentage

Cash 10 20%
Credit 40 80%
TOTAL 50 100%

sales

15%

cash
credit

85%

TABLE NO. 2 Mode of sale of Mahindra tractors

INTERPRETATION: Among the 50 numbers 80% respondents were purchase by credit

and remaining were by cash.

42
Question 3: What is the source of purchase of Mahindra tractors?

Particulars No. of Respondents Percentage

Showroom 40 80%
Friends Nil Nil
Relatives 10 20%
total 50 100%

purchase

showroom friends reletives

TABLE NO. 3 Sources of purchased of Mahindra tractors

INTERPRETATION: From the above table, it was explained that among 50 respondent
80% of them were purchased in the show room, 16% of them from other source, of them from
relatives.

43
Question 4: List of models of Mahindra tractors you have?

SL.NO PARTICULARS (NO NO OF PERCENTAGE

OFBRANDS) RESPODENTS

1 Mahindra-275 20 40%
2 Mahindra-575 15 30 %
3 Mahindra-585 8 16%
4 Mahindra-475 5 10%
5 Mahindra-Arjun 2 4%

TOTAL 50 100%

satiasfaction
4%
mahindra275
mahindra 575
16%
mahindra475
40% mahindra585
10% mahindra arjun

30%

TABLE NO. 4 Models of Mahindra tractors

INTERPRETATION: It has been further observed from the table that 40% of the share is
given to Mahindra – 275 in the market is 40%, Mahindra - 575 is 30%, Mahindra - 585 is 16%,
Mahindra - 475 is 10% and rest to Mahindra arjun.

44
Question 5: What is the Color perception of the Mahindra tractors?

Education No. of Respondents Percentage

Below & SSLC 30 60%

PUC 15 30%

DEGREE 5 10%

Total 50 100%

30
30
25
20
15
15
10
5 5
0
Blue
Red
Other
Clours

TABLE NO. 5 Color of tractors

INTERPRETATION: The field survey indicates that the blue color is more prefer by
respondents that is 60%. Red is preferred by 30% respondents and other 10% of respondents
prefer diversification of color.

45
 Question 6: Explain the Pricing Policy of Mahindra tractor?

OCCUPATION No. of Respondents Percentage

Very High 5 10%
High 15 30%
Reasonable 30 60%
TOTAL 50 100%

30 30

25

20

15
15

10

5
5

0
Very High 0
High 0
Reasonable

Pricing policy

TABLE NO. 6 Pricing policy of Mahindra tractor

INTERPRETATION: Above diagram indicates that the price policy followed by this
company for its tractors quite attractive and very low when compared to other competitors.

46
Question 7: What is the average mileage of Mahindra tractor in a rural area?

Mileage No. of Respondents Percentage

0-5 km/litre 16 33%
5-10 km/ litre 24 49%
Above- 10 km/litre 10 18%
TOTAL 50 100

Mileage
0-5 km/litre 5-10 km/ litre Above- 10 km/litre

20%
32%

48%

TABLE NO.7 Mileage of Mahindra tractor

INTERPRETATION: The above table clearly reveals that the majority of the respondents,
i.e. 20% tune of have preferred this Mahindra tractor as it gives more mileage i.e. above 10
km/litre.

47
FINDINGS

48
 7. Findings

A study has been conducted to understand the consumer’s behavior, beliefs, brand loyalty, brand
image and attitude towards M&M tractors. Following are the findings from data analysis

1. It is observed that most of the people who preferred are M&M tractors pleasure are 20-30

years below 20 years 45% and 29%.

2. It is observed that from the study that maximum percentage of M&M tractors pleasure is

high demand among the farmers and traders.

3. It is found that factors influenced to respondents to prefer M&M tractors are driving

comfort, safety, fuel efficient and mileage.

4. It is found that satisfaction level of M&M tractors with consumer is satisfied.

5. The quality of after sales service rendered by the dealer of M&M tractors is satisfied.

49
LIMITATIONS

50
 8. Limitations

1. The study was conducted in Fazalganj Kanpur, so the limited area of the study affects
the conclusion.
2. Some of the respondents could not give their proper response due to lack of times.
3. It might also be so that some respondent were not motivated enough to respond properly
although full attempt was made to keeps it as unbiased as possible.
4. The duration of report is too long, so the scope of more depth evaluation was not
possible.

51
CONCLUSION

52
 9. CONCLUSION

Mahindra & Mahindra limited’s (m&m) farm equipment sector sold 22,212 tractors in
January 2019, up 1% (up 28% mom). The total volume sold surpassed Bloomberg quint poll
estimate of 21,500 tractors. M&M sold 20,948 tractors in domestic market, up 1% (27%
mom). It exported 1,264 tractors, up 2% (41% mom). The volume growth rate for m&m
tractors (up 1%) was lower compared to peer escorts, which reported 13% volume growth in
January 2019.

Mahindra & Mahindra Ltd ended at Rs 688.10 up by Rs 7.3 or 1.07% from its previous
closing of Rs 680.80 on the BSE. The scrip opened at Rs 689 and touched a high and low of
Rs 715 and Rs 679.85 respectively. A total of 84,51,499 (NSE+BSE) shares were traded on
the counter. The current market cap of the company is Rs 84,636.55cr.

To conclude the summer project on "consumer satisfaction towards M&M tractors”. I have
received both favourable and unfavourable responses from the respondents. I have met 50
customers of different places and accommodated at M&M tractors and findings were enlightened
to me. The project work has helped in studying and understanding the practicalities of
organisation.

The study of “consumer satisfaction towards M&M tractors”. The data was collected from
various sources and also through the tools like questionnaire and relevant interaction with
Manager of M&M tractors and relevant interaction with concerned persons. The need was
identified in the form of findings and suitable suggestions were put forth in the form of
suggestions.

53
RECOMMENDATIONS

54
 10. Recommendations

After a detail study and analysis on the Mahindra tractors I got to know that all efforts has been
taken by M&M to sell Mahindra tractors easily in the market. I would like to provide suggestion
to marketing department like this:

Improvement is needed particularly in the field of safety to sell tractors easily in the market.

The training program should be made more need based and for this, proper assessment of the
training needs of the selling a Mahindra tractors in market according to the identification needs.

The company has to develop strategic training policy and programs to enhance sell of a
Mahindra tractor.

Proper feedback on training should be provided.

The training programs should be for a maximum period of time.

A proper selling of Mahindra tractor should be formulated in order to make the strengths and
weaknesses of selling the Mahindra tractors.

55
BIBLIOGRAPHY

56
 11. Bibliography

11.1 Books:
 Johansson.Johny k (2015). Global Marketing. New Delhi: The McGraw Hill Company.
 Salwan. Prashant (2012). International Marketing. Visant Vihar New Delhi: The McGraw
Hill Company.
 Seshadri.D.V.R (2014). Business Market Management. Noida: The Pearson Publication.
 Kotler. Philip (2016). Marketing Management. Noida: Pearson Publication.
 Chabra.T.N (2014). Principle of Marketing. Noida: Pearson Publication.

11.2 Journals:

 Hart, Susan Jane (2009). Journal of Marketing, 25(5-6): 397- 400.

 Hetzel, Patrick (2000). Journal on Consumer Behavior, 16(7): 697- 716.
 Wilson, Richard M.S (2008): Journal of International Marketing, 27(7-8): 661-668.

11.3 Websites:

 Fredrickson, C.B (2008, March14) Marketing & Sales Promotion. 4 Articles 0024b.
Retrieved November 20, 2008 from https://www.marketingsherpa.com.
 Mahindra, Anand (1991, April 4) Retrieved from
https://www.mahindra&mahindratractors.com.

57
ANNEXURES

58
 12. QUESTIONNAIRE
Q1. Which Mahindra vehicle do you own?
_______________________________________________________________

Q2. Are you satisfied with the overall service provided by the Mahindra Automobiles?
1. Strongly Agree 2. Agree

3. Neither agree nor disagree 4. Disagree

5. Strongly Agree

Q3. Authorized service station has sophisticated Tools and Techniques?

1. Strongly Agree 2. Agree

3. Neither agree nor disagree 4. Disagree

5. Strongly Agree

Q4. Authorized Service Station has sufficient and genuine spares?

1. Strongly Agree 2. Agree

3. Neither agree nor disagree 4. Disagree

5. Strongly Agree

Q5. Labor charges (Comparison to roadside mechanics or other authorized service station)?
1. Very High 2. High

3. Economical 4. Low

59
Q6. Delivery as per schedule?
1. Always 2. Most of times

3. Some times 4. Never

Q7. Distance of service station from your residence?

_____________________________________________________________

Q8. Road break-down service?

1. Poor 2. Fair

3. Good 4. Excellent

Q9. Have you come across any problem with authorized service station?

1. Yes 2. No

If yes, specify _________________________________________________

Q10. Whether people at service station are co-operative or not?

Low Moderate High Very High

1. Works Manager
2. Service Advisor
3. Service Supervisor
4. Technicians

60
Q11. Whether it is helpful for you, if service station is kept open on Sundays?

1. Yes 2. No

Q12. Can you suggest the best working time for the service station?

_____________________________________________________________

Q13. Whether you would recommend Tractor Service Station to others?

1. Yes 2. No

Q14. Any Suggestions to improve the services provided at Mahindra Automobiles?

__________________________________________________________________________________
__________________________________________________________________________________
____________________________________________________
1. Name of the Respondent: _________ ___________________________________
2. Address of the Respondent____________________________________________
3. Vehicle Model ____________________________________________
4. Vehicle No. ____________________________________________
5. Phone No: _______________ Mobile No.: ______________

61
THANK YOU

62