SALES AND DISTRIBUTION

JOHN DEERE EQUIPMENT

PRIVATE LIMITED

John Deere
Nailesh Jacob
Anish Pandath
Pradeep Kumar
Rishabh Sood
Govindarajan A
Symbiosis Institute of
International Business,Pune
INTRODUCTION
 Founded in 1837, presently employees around 56000

employees.

 Its business is spread over 52 countries in the world,

with its headquarters located at USA.

 For 2008, its net sales from equipments account for

about 26000 million USD.

John Deere
 John Deere consists of three major business segments:

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 agriculture and turf- includes farm equipments,
irrigation equipments, tractors, golf course equipments
etc.

 construction and forestry- leading manufacturer of

forestry equipments and construction equipments as
well.
 credit- in addition to financing of its agricultural and
construction equipments, also offers operating loans to
farmers, crop insurance etc.
INTRODUCTION
 The GREEN AND YELLOW TRACTORS

 Entered in India in 2002 and is at fifth position in Indian

Market.

 In Indian market JD potential competitors are Mahindra

and Mahindra, TAFE, Escorts, New Holland Ford etc.

 It is the No. 1 exporter of tractors in India exporting

almost 60% of the production.

 Offers a wide range of tractors from 35 hp to 70 hp.

John Deere
JOHN DEERE EQUIPMENT, SANASWADI PUNE
 John Deere Equipment Private Limited is a subsidiary of
Deere & Company, USA in India. Its factory, located
near Pune, manufactures “5000 Series” agricultural
tractors.

John Deere
THE MODELS OFFERED IN INDIA
MODEL Hp

5103 Economy 35

5103 40

5103 Super 42

5104 45

5203 47

5203 Super 50

5204 50

5310 55

5310 MFWD 55

5410 65

5310 Super 70

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SALES ORGANISATION
STRUCTURE (INDIA)

John Deere
 SALES ORGANISATION STRUCTURE
(MAHARASTRA)

Territory
Manager

Assistant Assistant Assistant Assistant Demonstrat-ors

Office
territory territory Territory territory and exchange
Manager 1 Manager 2 Manager 3 manager 4 Assistant experts

Dealers & sub

dealers

John Deere
SALES ORGANISATION STRUCTURE
(MAHARASTRA)
 In Maharashtra, state is roughly divided into four zones
viz. east, west, north, south.
 Each assistant territory manager is assigned one zone
which comprises of five to six districts.
 Demonstrators and Exchange experts play vital role in
strategic selling.

John Deere
SALES ORGANISATION STRUCTURE
(MAHARASTRA)
 Different theories that companies adopt for selling their
product, JD prefers AIDAS Theory. AIDAS means:
 A - Attract

 I - Develop Interest

 D - Deliver

 A - Action

 S - Satisfy

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 DISTRIBUTION NETWORK
INDIA

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Head office (PUNE)
Factory(PUNE)
Area office(14)
Learning & Development
Centres(4)
AREA OFFICES

 Ahmedabad  Jaipur
 Bangalore  Kolkata

 Bhopal  Lucknow

 Bhubaneswar  Patna

 Chandigarh  Pune

 Chennai  Raipur

 Hyderabad  Udaipur
John Deere
 SALES FORECASTING

 Operating sales forecast is a prediction of how

much of a company’s product can be sold
during a future period.
Following are the techniques for forecasting:
 Jury of Executive Opinion

 Poll of Sales Force Opinion

 Projection of Past Sales

 Survey of Customers Buying Plan

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 SALES FORCE EXECUTION

 How sales force actually works and

achieve targets at ground level.
Territory Assignment

Budget & Sales Expenditure

Job Responsibilities

Pricing Policy

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 TRAINING CENTRES
 JD emphasises on quality training and development of
its employees as well as dealers and his staff.
 JD has four training centres in India. These centres are
located at
 Maharashtra - Pune
 West Bengal - Burdwan
 Karnataka - Bengaluru.
 Haryana - Yamuna Nagar

John Deere
 TRAINING CENTRES
 JD conducts customised training programmes at these
training centres. Few of which are listed below.
 Product training programme
 Tractor overhaul programme
 Certified salesman programme
 Refresher programme etc
 It also conducts lectures by different consultants for
sales staff and dealers.

John Deere
 TERMS OF TRADE
 Payment Terms
o No credit provided to dealers with the exception
of big dealers with a good track record - at the
sole discretion of the company .

o Big dealers – Max of 15 days credit

o Max credit is 35 % of the total amount

o Goods dispatched from manufacturing unit only

once payment is received .
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o Payment is through RTGS or DD drawn
on nationalized banks only .
o Margin – 15 – 20 % of the cost of the
vehicle .

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o Commission – The sales staff are
provided 10 % commission on the
total margin of dealer .
o Individual customers are provided loans
at attractive rates by GE money via a
tieup with John Deere .
o NABARD or other co-operative banks
also provide subsidized loans .
 DELIVERY TERMS

 The tractors are insured by the company & a PDC ( Pre-

Dispatch Check ) is done at the manufacturing unit of the
company . A unique PDC no is also issued to every tractor .

 The total transportation costs & the insurance costs are

borne by the company .

 Dealer Delivery terms

o The company is responsible for the vehicle till it reaches
the dealer’s warehouse & the dealer signs the PDI form
(Pre- Delivery Inspection) .
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 The dealer checks for any damages
& reports it
to the company immediately & also bills the
company for any repairs required

 The company does not take back vehicles once

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sold to the dealer .
 Replacement Terms

 The company has long term contracts with transporters & in transit damage is
borne by the transporter (outside the ambit of insurance ) .

 If vehicles meet an accident then it is the responisbility of the transporter to

return the damaged vehicles back to the manufacturing unit .

 If a vehicle is found to be damaged during the PDI , the dealer informs the
company & if it is covered under insurance the company claims it . The dealer is
provided a holding charge for the damaged vehicle till the insurance is cleared .

 If during PDI any mechanical problem is found , the dealer repairs it and bills the
company the repair amount .

John Deere
 Linefill Rate
 Replenishment Time – 15 days

John Deere
 John Deere
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