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Case Analysis

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MARKETING MANAGEMENT

PRM 38 (2017-19)

TERM-II

VANRAJ MINI TRACTORS: IS SMALL BEAUTIFUL?

Submitted to:                                                Submitted by:

Prof. Pratik Modi                                                     Sarat Paruvada (p38166)

           Shashank Verma (p38170)

 ShubhamRathi (p38171)

 Siddharth Gupta (p38172)

            Surendran K (p38173)

  Vyom Joshi (p38176)

1. PROBLEM STATEMENT

Which particular market segment should be targeted by M/s Pramal Farmatics?

2. ANALYSIS

Based on the case, we are trying to analyse the usability of Vanaraj mini tractors and its comparative advantages over the current big tractors and bullocks. The target market segment of Vanraj mini tractor should be small and marginal farmers as this market segment promises to be a potential market because 82% of the farmers in this segment do not have tractors. To determine the comparative advantage of different farm utilization equipments we look at the subsequent purchasing cost, maintenance cost and usage cost of all the equipments.

From annexe. 3, we observe that 32 litres is the average diesel consumption of tractor. Also we have to multiply the entire thing by 2 as we are calculating for two cropping seasons.

Per year

Bullock (in Rs.)

Vanraj(in Rs.)

Rent (in Rs.)

Initial

27500(average price obtained by averaging the price limit given)

190000

0

Fuel/Fodder cost

17500(average price obtained by averaging the price limit given)*11/8=24602

32 *2*40*3.472=8888.32

250(average price obtained by averaging the price limit given)*19(total time for crop)*3.472*2=32984

Maintenance

0

2968(12.5% ,average rate obtained by averaging the limits given)

Inter-culturing cost

400 @ 15 rs/hour(assumed)=400*15*3.472/2.47=8434

Included in the fuel cost

Interest

19000(assuming it to be @ 10%)

Total

33036

30856

32984

...

...

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