CERTIFICATE

This is to certify that RAMESH KUMAR, PGDM (Second Year) of Institute of

Management Education, Sahibabad, Ghaziabad has done his Summer
Project GAUGING THE SALES POTENTIAL OF DIESEL ENGINE
SETS IN RAJASTAHN WITH SPECIFIC REFERENCE TO 15-40HP
ENGINES in EICHER TRACTORS, FARIDABAD under my guidance.
The duration of the project work was two months i.e. from 1 st May 2003 to
30th June 2003.

Date:

(RAMESH KINI)
Dy. Marketing Manager
Eicher Tractors
59, NIT, Faridabad

ACKNOWLEDGEMENT

The project Gauging the sales potential of 15-40 HP Diesel Engine sets in Rajasthan,
has been undertaken, in partial fulfillment of the requirements of Post Graduate
Diploma in Management (PGDM) offered by Institute of Management
Education, Ghaziabad. The project has been done at Eicher Tractors, a unit of
Eicher Limited, Faridabad. I take this opportunity to thank Prof. H.P. Gupta,
Director, IME for providing me an opportunity to take this project work. I would
also like to thank Mr. Srikant Kapoor, Faculty, IME, for providing guidance
during the project. And, above all I would like to thank Mr. Ramesh Kini, Deputy
Marketing Manager, Eicher Tractors, who was my project guide and was closely
associated with the project right from the beginning and under whose supervision
and guidance whole of the project has been completed. My sincere thanks also goes
to those dealers who participated in the survey work, and people of Rajasthan, who
selflessly revealed several information, without which I would not have been able to
unravel several mysteries of the engine world, which is now part of this report.

SYNOPSIS
The aim of the project is to gauge the sales potential of 15-40 HP engines in
Rajasthan.
Research work is based upon the response of questionnaire containing open and
closed ended questions, alongwith statements to be rated on Likert scale.
Business cycle of 10 years has been detected which can predict phases of growth
in number of dealers in Rajasthan.
Market estimate with per annum sales figure in 12 districts of Rajasthan found
out.
Market segments in engine sale were identified.
Customer behaviour in purchase of engine gauged.
Warranty / service policy of different companies are examined.
Relative competition ratio among 3 segments of engine sales

viz.

0-14 : 15-40 : >40 is found to be 1 : 4 : 2.

Brand equity in Rajasthan has been found out Kirloskar > Field Marshal >
Topland > Eicher ..
Extent of territorial infringement and several policies to combat infringement viz.
Kirloskars, Toplands etc.
In sufficient availability of finance for purchase of engines from various banks.

INTRODUCTION
Gauging

the sales potential of 15-40HP diesel engine sets in Rajasthan, is a

comprehensive analysis of the engine world, compiling most of information, about

growth in number of dealers over year, completion of brands, incentives to dealers,
buying and selling strategies, brand USPs, sales potential of different regions,
business market of dealership and relative completion and sales potential of different
segments of engine sales. The project report is based upon a comprehensive survey
work done in Rajasthan during a period of about 45 days stay in Rajasthan. Areas
visited were, Jaipur, Sikar, Dausa, Kota, Baran, Bundi, Jodhpur, Pali, Jalore,
Dhorimanna, Sanchore and Alwar. A separate survey of customers has been done to
reveal the consumers buying behavour. Analysis is based on a questionnaires
response. Accordingly the brand order, extent of infringement, sales potential of
regions has been gauged. All the figures are arrived at using scientifically approved
statistical tools, on which inference of each question is also based. Limitations and
errors if any, are inherent to these statistical tools. All the conclusions arrived at are
honestly based on this methodology and does not include any bias with respect to
brand and region.

COMPANY PROFILE OF
EICHER

AN OVERVIEW
Eicher began its business operations in 1959 with the roll out of India's first
tractor. Today the Eicher Group is a significant player in the Indian automobile
industry with a gross sales turnover of over Rs. 13,700 million in the year 200203.
The Eicher Group has diversified business interests in manufacturing & marketing of Tractors,
Commercial Vehicles, Automotive Gears, Motorcycles, and exports of vehicles, aggregates and
components. Eicher has also invested in the potential growth areas of Management Consultancy
Services. The activities of the Group are divided into the following business units covering all the
business interests.
EICHER LIMITED
EICHER TRACTORS
Tractors
ROYAL ENFIELD
Motorcycles
EICHER DEMM
Gears
EICHER MOTORS LIMITED
Commercial Vehicles
EICHER INTERNATIONAL LTD
Exports
ECS LTD.
Management Consultancy
Eicher has over 5000 employees located in 10 manufacturing facilities and 24 marketing offices all
around the country. The Group has around 950 vendors supplying components and sub-assemblies
which testifies to the strength of the vendor base. The Group's products are brought to the customer
through its network of around 800 dealers distributed across the length and breadth of the country.

EICHER TRACTORS
The Eicher Group started in 1948 when the Goodearth Company was set up to sell
and service imported tractors in India. Perceiving an urgent need to mechanise
Indian agriculture, the Company set up a tractor manufacturing facility, Eicher
Tractors Limited in 1959 in collaboration with Gebr. Eicher, Germany in India. The
first Indian tractor rolled out of Eicher's factory at Faridabad in India, in 1960.
Today, there are over 4,00,000 Eicher tractors that contribute to the nation's
agricultural development. Eicher's manufacturing and marketing facilities located
at Faridabad have been awarded ISO 9001 certification.
Eicher Tractors has a technology transfer tieup with Valtra, Inc of Finland. It has an
extensive network of over 400 tractor dealers and around 56 engine dealers across
India with 15 regional offices and 12 depots.
Committed to providing high quality products, Eicher invests significantly in
technology resources and infrastructure. Our manufacturing facilities are spread
across three states :
Location
Faridabad

Alwar

Bhopal

Address

Area
mtrs)

59
NIT
Faridabad
Haryana - 121 00112500
India
Itarana Road, Alwar
Rajasthan - 301 00111400
India
Plot No. 1, Sector D,
Industrial
Area,
Mandideep - 462 046 63640
District: Raisen (MP)
India

(sq.Annual
Capacity

Production

30000 tractors

42000 engines

18000 tractors

Highlights
Wide range of tractors, from 61 HP to 24 HP offering the best value for
money.
Product range includes air cooled and water cooled engines.
Highly fuel efficient machines, with low maintenance costs.
Conforming to international emission norms.

Product range also includes engines in the 22 HP to 32 HP and gensets in

the 15 KVA to 30 KVA categories.
7

EICHER MOTORS
Eicher Motors Limited (EML) was incorporated in 1982 and introduced its first
product, the Canter, a 6 ton GVW truck manufactured at its state of the art plant at
Pithampur, Indore in collaboration with Mitsubishi Motors Corporation, Japan, in
1986. The maiden offering soon created a strong customer base for itself.
From a single 6 Ton GVW truck in 1986, our range today extends from 5T to 16T
GVW trucks and the Skyline and Voila range of Buses. All our products can be
offered in BS II compatible options. We also have arguably the best CNG technology
in the world in our CNG Buses. Pioneering the concept of Built Up vehicles in the
country, we make products that consistently deliver high value to our customers and
are increasingly becoming the preferred option for all CV users, not only in India but
overseas too. Eicher CVs today have significant presence in more than 20 countries
across the world.
In India, Eicher Motors has consistently outperformed the industry in terms of
growth and currently holds over 30% market share in the 6T-11T GVW segments. In
the 9T GVW segment, Eicher Motors continues to be the leader with more than 50%
market share. Our well-equipped workshops result in faster turnaround of service. A
network of more than 4500 Eicher trained private mechanics, over 133 authorized
sales and service centres, and easy availability of genuine parts across more than 300
authorized spares outlets means less downtime and increased opportunities for our
customers to earn.
Eicher Motors is now poised to further consolidate its position in the CV industry by
entering into the Medium & Heavy Commercial Vehicle segments. Strategic plans
are in place to ensure necessary investments in technology and training to constantly
sharpen our development and manufacturing edge. EML is totally committed to
fulfilling the vision of being one of the top 3 CV manufacturers in the country by
giving customers what they want: vehicles that are safe, fuel efficient, easy to
maintain, enhance driver comfort and in turn productivity. Vehicles that deliver value
by providing low cost of ownership and increased profitability to our customers.
THE EML ADVANTAGE
Technological Expertise
Extensive Network
Customized Applications
Efficient cost of ownership
Exports
Vehicle Financing

Technological Expertise
Our products are manufactured at the Company's plant in Pithampur, near Indore,
Madhya Pradesh, India. The company has absorbed the technology and has
successfully indigenised the vehicles.

To ensure that we continue to create products that offer unique advantages and
benefits to our customers, Eicher Motors Limited has set up a Product Development
group, consisting of competent engineers. The team has developed several successful
vehicles and variants, an achievement made possible by the use of the latest
Computer Aided Design and Computer Aided Engineering (CAD-CAE) software
like NASTRAN and FEM analysis packages.
Extensive Network
Eicher Motors Limited provides its customers the benefit of an extensive sales and
service network, customised solutions and an efficient cost of ownership.
Our manufacturing capabilities are backed by a sales and service network of over
133 EML authorised sales & service centers and more than 300 authorised spares
outlets.
The three-tier service network consists of:

Authorised distributors in metros and cities.

133 Authorised Service Centre's.
Over 4500 company trained private mechanics.

Service highlights:
Eicher Genuine Spares - available across all Eicher dealerships, service
centers, spares distributors, satellite service outlets and retail outlets.300
authorized
spares
outlets
throughout
the
country.

A strong and wide dealer network

Grass-root level penetration through training to popular local mechanics,
currently numbering over 4500 nationwide.
Fully equipped modern workshops for fast and experienced service.
Driver-Safety training programmes for drivers of corporate and institutional
customers.
Free vehicle check-up camps, organised regionally.
A Comprehensive Service Audit System, which oversees the physical
infrastructure, ensures understanding and compliance with the system and
provides training and technical updates.

Customized Applications
Eicher specializes in offering ready-to-use custom-built application vehicles to suit
customer needs, in addition to the normal range of vehicles. Adaptation of product
specifications to suit local regulations and norms is an integral part of the process.
All Eicher exports to the Middle East meet Gulf Council Countries(GCC)
specifications, have power steering and air-conditioned cabins. A breakthrough in our
record as solution providers came when Eicher developed a cargo deck of a
composite material of Wood and Steel, called Metawood. Metawood is lighter and
more elegant, and vehicles fitted with these have more load capacity and yield higher
fuel efficiency. We also specially manufacture Commuter and Tourist Buses suited
for African markets. Our Commuter buses are designed for larger passenger carrying
capacities and to withstand tough road conditions.

Efficient Cost of Ownership

Eicher vehicles not only prove to be safe but also a profitable business investment.

10

This is a result of the engineering, maintenance and safety features built-into each
Eicher vehicle. We call this the efficient cost of ownership of an Eicher vehicle.
Some of the highlights are:

A Tiltable Cab for easy reach during routine and periodic service check-ups.
An Automated Exhaust Braking system that activates the brakes
automatically on deceleration, allowing for more driver control.
A collapsible steering wheel.
Adjustable seats for ergonomic comfort, thus reducing road fatigue.
An aerodynamic design and a highly fuel efficient engine, that make it the
most fuel efficient vehicle in its class.

Exports
Eicher Motors markets its range of Commercial Vehicles and customized
applications
to
over
28
countries
across
the
world.
Vehicle Financing
Eicher has arrangements with a number of key Non Banking Financial Companies
and Financial Institutions to help our customers to avail finance for the purchase of
vehicles. Eicher also provides customer finance through Auto Finance Company, a
division of EML.

11

EICHER DEMM
Eicher Demm (formerly Ramon & Demm) was set up in 1964, in technical collaboration
with Fratelli Daldi and Mattueucci of Italy - the makers of the famed Demm gears. In
1992, the Eicher Gear Business expanded with the takeover of the Ramon & Demm plant
at Thane, Mumbai.
At present the Gear Business has two plants - at Thane, and Parwanoo in Himachal
Pradesh - which collectively manufacture a spectrum of gear solutions which include:

Spiral and Hypoid Gears (Crown Wheel and Pinion)

Straight Bevel Gears
Spur and Helical Gears
Cam Shafts
Precision Machined Components
Machined Housings
Royal Enfield

Classic Bikes with power for leisure riding is what a Royal Enfield bike stands for, and Royal
Enfield leads this segment of the market in India by leaps and bounds. Its exquisite range of
motorcycles combines distinctive styles with power, riding comfort and ruggedness to deliver a
unique motorcycling experience.
The Beginning
Royal Enfield India was set up in 1955 when it started receiving 350cc bikes in kits from the UK
and assembling them in Chennai, India. But, eventually the entire bike was manufactured in India
and a couple of years later the Company started manufacturing the 500cc Bullet. By its sheer
power, unmatched stability, superior riding comfort and rugged good looks, the Bullet dominated
and continues to dominate the Indian roads. It is the dream choice of every motorcyclist in India
with even the Indian Army and Police endorsing the Bike.
The Eicher Chapter
In 1990, Royal Enfield entered into a strategic alliance with the Eicher Group, and later
merged with Eicher Group in 1994. The Eicher Group, is one of India's leading automotive
group with diversified interests in the manufacture of Tractors, Commercial Vehicles,
Automotive Gears, Exports, Garments, Management Consultancy and Motorcycles.
Since then, the Company has made considerable investments in modernizing its

12

manufacturing technology and systems and in 1996, when the Government decided to impose
stringent norms for emission Royal Enfield was the first motorcycle manufacturer to comply.
Royal Enfield is amongst the first few Indian companies to obtain the WVTA (Whole Vehicle
Type Approval) for meeting the European Community norms.
Royal Enfield - revving up
With the finest and brightest of teams in the country, comprising of management professionals
and a skillful, committed workforce, the Company has a unique and open culture, making Royal
Enfield a vibrant and responsive company. To its customers in India and elsewhere in the world,
Royal Enfield means more than just motorcycles it is a sense of belonging to an exclusive
community with unfading passion, emotion and interest. The Company, is all set to augment its
leadership position, be it in the power and leisure bike segment in India or the classic bike
segment elsewhere in the world, by introducing distinctively styled and higher-powered
motorcycles, strengthening existing communities around its products, expanding its network, and
delivering a unique motorcycling experience.

Maps & Travel Guides

Good Earth Publications specializes in the publication of world-class travel guides and
maps. These publications reflect excellence in editorial content and high production
value, and are benchmarked against the best available publications in the world. A highly
professional team of editors, cartographers, designers and production personnel have got
together to bring out these world class travel guides and maps.
Good Earth Publications is the only Indian publishing house which publishes highly
visual guidebooks based on research both on historical and architectural details as well as
hands-on collection of all data relating to travellers' needs.

13

GIS SERVICES & SOLUTIONS

GIS division was formalised in Dec 2000, with the Ministry of Defence, Government of
India , according approval to Eicher for licencing our digital maps of Delhi and satellite
towns.
Eicher now offer GIS products and services that cater to a wide spectrum of applications
in the corporate, and in the infrastructure development segments.
Its services in Digital Cartography include turnkey projects involving the entire gambit of
activities from surveying and mapping to creation of a GIS, and setting up a enterprise
GIS facility for applications in Transportation, Municipal, Electric, Water and Gas
utilities.
EICHER ENGINEERING SOLUTIONS
Eicher has been delivering engineering solutions to our clients for over 5 years. The
focus of our operations is to enable our customers to bring their quality products to
market in the shortest possible time. We achieve this through a pool of highly qualified
professionals who have honed their skills with live implementation experience in
Concept to Prototype Delivery with Product Design and Development, Engineering
Analysis and Software Services.
Eicher is uniquely poised with experience in the automotive area to ideate, design and
deliver virtual and physical prototypes and products. Highly driven by customer
requirements it deliver turnkey projects on design and development, providing high
quality, rapid time-to-market solutions.
Its Delivery Process is built to translate the customer requirements into delivery
specifications with quality checks. Project teams handle the customer orders with strong
adherence to schedules in a professional manner ensuring complete confidentiality. Its
networked locations ensure optimum use of specialised systems and resources.

14

RESEARCH METHODOLOGY
This project work is based on response of a questionnaire which included a variety of
questions both open ended and closed. A separate questionnaire on likert scale had
also been made. The response was taken during one to one interview with dealers of
Rajasthan. The response has been statistically analysed, to make out the conclusions
of the findings. Consumer behaviour has been gauged by surveying the real users of
the diesel engine sets in villages and quarrying about their preferences and
constraints while purchasing a diesel engine set.

Size of Sample = 51
To know about the financing of engines survey work in banks has also been done. The
banks visited are:
Jodhpur Central Cooperative Bank
Rural Bank (Gramin Bank)
Thar Aanchalik Bank
UCO Bank

15

QUESTIONNAIRE
Name:
Address:
Telephone No.:
E-mail:
Fax:
1.For how many years you are in this business
-----------------2.Please indicate the range of engines you are dealing in
a)0-14HP

b)15-40HP

c)>40HP

3.Rank in order , the range of engines contributing to your sale during last three years.
a)0-14HP
Vol .

b)15-40HP
vol .

c)>40HP
vol .

Please answer the following questions with specific reference to the range of 15-40hp engines
only
4.Which type of engines are available with you in this range.
a)air cooled
b)water cooled
c)both
5.Please indicate the price range in which 15-40 hp engines are available.
Rs---------------

RS---------------

Rs---------------

16

6.Is there any other dealer in your territory?

Yes / no
If yes, then please name them,
1______________________
2______________________
3____________________
7.1Please rank in order the name of competitors in your territory.
1
2..
3..
4..
5..
7.2 Why people prefer the brand you are dealing in against other brands available in the market

7.3 why do people buy the No. 1 brand

8.Please explain the kind of strategy adopted by you to sell i.e., competitive
,infringement,borrowed from the company's policy.
e.g.:-credited / market support by the company / field activities

17

pricing

9.Please explain how do you manage infringement.

10.Please , explain how do you perceive future of your product in market.

11.What are the warranty / after sales service contract available with you ?

12 . What are the terms for financing available with you ? ( banks / financial instn./ private )

18

QUESTIONNAIRE
ON
SURVEY OF ENGINE SALES
NAME
ADDRESS
CONTACT PERSON
Please react to the following statements on the given scale , about the brand you are dealing
in.Here,
1=strongly disagree
2=moderately disagree
3=neither agree nor disagree
4=moderately agree
5=strongly agree
1)People buy water cooled models because they are ignorant about merits of air cooled models.
(_) (_) (_) (_) (_)
1
2 3 4 5
2) People ask for most advertised/publicized / visible models
(_) (_) (_) (_) (_)
1
2 3 4 5
3)People buy because of price rather than anything else.
(_) (_) (_) (_) (_)
1
2 3 4 5
4)Customers come with predetermined model and brand to buy.
(_) (_) (_) (_) (_)
1
2 3 4 5
5)You most of the times change the decision of the customers.
(_) (_) (_) (_) (_)
1
2 3 4 5

19

6)You get sufficient dealership margin in sale.

(_) (_) (_) (_) (_)
1
2 3 4 5
7)You get adequate incentives and non monetary benefits, like travelling opportunities, to promote the
brand you are dealing in.
(_) (_) (_) (_) (_)
1
2 3 4 5
8)You are brand loyal and will stick to the brand you are dealing in.
(_) (_) (_) (_) (_)
1
2 3 4 5
9)You will change the brand , for higher margin , with similar sales potential.
(_) (_) (_) (_) (_)
1
2 3 4 5

THANK YOU VERY MUCH FOR ANSWERING ALL THE QUESTIONS WITH
PATIENCE.

20

PHASES IN GROWTH OF NO. OF DEALERS

Watch the product life cycle, but more important, watch the market life cycle
Kotler

Based on how many years old the dealers are in this business a frequency
distribution table has been made.
Table No. 1
Years old
0-5
5-10
10-15
15-20
20-25
25-30
30-35
35-40
40-45

No. of Dealers
8
4
8
9
5
5
6
4
2

21

Cumulative No. of Dealers

starting from the oldest
51
43
39
31
22
17
12
6
2

PLOT OF NO. OF DEALERS AGAINST YEARS OLD THEY ARE

NO. OF DLRS.
10
8
6
4

NO. OF DLRS.

40
-4
5

30
-3
5

20
-2
5

10
-1
5

05

2
0

Fig. 1
Smoothened version of the above drawn curve.

NO. OF DLRS.
10
8
6

NO. OF DLRS.

4
2
0
0

10

Fig. 2

22

PLOT OF CUMULATIVE NUMBER OF DEALERS AGAINST YEARS OLD

THEY ARE

no. of dealers
60
50
40
30
20
10
0

no. of dealers

40- 35- 30- 25- 20- 15- 10- 5- 0-5

45 40 35 30 25 20 15 10
Fig. 3
Smoothened version of the above drawn curve.

no. of dealers
60
50
40
30

no. of dealers

20
10
0
0

10
Fig. 4

23

Drawing the Curve for no. of dealers against years old they are, one can see there are
two phases of growth alternating each other.
One is the phase of fast growth.
And another is the phase of slow growth.
Each phase continues for 10 Years alternating each other.
One can easily see from the no. of dealers curve that the phase of fast growth has
already been round the corner for previous 2-3 years and will continue for 7-8 more
years to come when the curve will go down and a period of slow growth will take
effect.

24

MARKET SHARE & RELATIVE COMPETITION IN

THREE SEGMENTS OF ENGINE SALE
Poor firms ignore their competitor; average firms copy their competitors; winning firms
lead their competitors.

Table No. 2
Range of engines in HP
0-14
15-40
>40

No. of Dealers
46
31
10

%of Dealers
90.19
61.78
19.6

No. of Dealers
50
40
30
20
10
0

No. of Dealers

0-14

15-40

>40
Fig. 5

25

Table No. 3
Range of engines in HP
0-14
15-40
>40

Total Volume of sales

5572
1088
780
=7440

% Share
74.89
14.62
10.48

Total Volume of sales

>40
10%
15-40
15%

0-14
75%

Fig. 6
Hence rank order of sale of engines of each segment is
1.

0-14HP.

2.

15-40HP

3.

>40HP

Now putting the just arrived figures. Under the light of percentages of dealers
dealing in each segment.

Table No. 4

26

% of Dealers
Market Share

0-14 HP
90%
75%

15-40 HP
61%
15%

>40 HP
20%
10%

Assuming,
The total no. of Dealers in Rajasthan =

The volume of sales in Rajasthan

The above scenario can be depicted like this.

Table No. 5

No. of Dealers
No. of Customers

0-14 HP
(90/100)P
(75/100)Q

15-40 HP
(61/100)P
(15/100)Q

27

>40 HP
(20/100)P
(10/100)Q

Since,
Competition is directly proportional to no. of dealers,
and inversely proportional to no. of Customers.
Therefore,
Competition = K X No of Dealers
No. of Customers
(K= Proportionality constant)
Hence Dealer Customer ratio in each case is
Table No. 6
0-14 HP
(90/75) P/Q
=1.2 P/Q
=P/Q Approx.

15-40HP
(61/15) P/Q
=4.07 P/Q
=4 P/Q Approx.

>40 HP
(20/10) P/Q
=2 P/Q
=2 P/Q Approx.

Hence relative competition in the three segments is

P/Q:4 P/Q:2P/Q
=1:4:2
Therefore 15-40 HP engine Market is four times more competitive than 0-14
HP Market and it is two times more competitive than >40 HP engine Market

Hence the rule for line extension can be shown as.

0-14 HP

15-40 HP

>40 HP

While it is advisable to extend in >40 HP engines area. It is twice so in 0-14 HP

engines area.

AIR COOLED vs WATER COOLED

28

Table No. 7
No. of Dealers
dealing only air
cooled
2
3.92%

No. of Dealers
Dealing only water
cooled

Both

Air cooled

Water
cooled

32
62.75%

17
33.33%

19
37.25%

49
96.08%

No. of
Dealers
dealing only
air cooled
4%

Both
33%

No. of
Dealers
Dealing
only water
cooled
63%

Fig. 7
Since, 96.08% of Dealers keep water cooled sets, its immense popularity is
evident against those of the aircooled sets kept by 37.25%.
It was also found out during the survey that air cooled models are popular in
industries, and urban sector while water cooled models are popular in rural &
agricultural sector.

29

AVAILABILITY OF DEALERS IN DIFFERENT PRICE

SITUATION (DEALERS PRICE PREFERENCE)
The best way to get and keep customers is to constantly figure out how to given them
more for less
Kotler
Based on responses following table has been prepared
Table No. 8
Price Range (15-40HP) (Rs.)
5000-10000
10000-15000
15000-20000
20000-25000
25000-30000
30000-35000
35000-40000
40000-45000
45000-50000
50000-55000
55000-60000
60000-65000
65000-70000
70000-75000
75000-80000
80000-85000
85000-90000
90000-95000
95000-100000
100000-105000
105000-110000
110000-115000
115000-120000
120000-125000
125000-130000
130000-135000
135000-140000
30

No. of Dealers
1
1
5
9
9
8
7
7
8
7
5
6
7
7
6
6
6
5
5
5
4
5
5
5
5
5
5

140000-145000
145000-150000
150000-155000
155000-160000
160000-165000
165000-170000
170000-175000
175000-180000
180000-185000
185000-190000
190000-195000
195000-200000

5
5
3
3
3
3
3
3
3
2
1
1

No. of Dealers
10
8
6
4
2
0
180000-

155000-

130000-

105000-

80000-

55000-

30000-

500-

No. of Dealers

Fig. 8
SMOOTHENED VERSION OF THE PREVIOUS GRAPH

31

No. of Dealers
10
8
6
4
2
0

No. of Dealers

20

40

60

Fig. 9
A hypothetical chart has been prepared to take note of every change in the of no. of
Dealers against rise in price.
Table No. 9
PRICE (Rs.)

AVAILABLE NO. OF
DEALERS
1

8000-12000

32

13000-14000
15000
16000
17000
18000
19000
20000
21000
22000
23000
24000
25000
26000-30000
31000
32000
34500
35000
36000-39000
40000
41000-42000
43000-45000
46000-50000
51000-58000
59000-60000
61000-62000
63000-80000
81000-93000
94000-105000
106000-109000
101000-150000
151000-185000
185000-200000

2
2
2
4
5
6
5
7
7
8
7
10
9
12
10
9
9
9
11
10
10
8
7
7
7
6
5
5
5
5
2
1

33

34

AVAILABLE NO. OF DEALERS (15-40HP)

14
12
10
8
6
4
2
0

Fig. 10
Smoothened version of the previous curve

AVAILABLE NO. OF DEALERS (15-40HP)

15
10
5
0
0

10

20
Fig. 11

35

30

40

TOP DEALERS OF RAJASTHAN

From the response of different dealers of different territories in Rajasthan the

dealers of different regions has been ranked in order according to the dealers
perception
JAIPUR
1.

Jackson Traders

2.

Industrial Sales and manufacturing

3.

Arjun Metals

4.

Bhaskar Power Projects

5.

Sudhir Gen Sets

6.

Esen Engineers

7.

Laxmi Agencies

8.

Capital Engineers

9.

Atlantic

10. Pratap Diesels Private Ltd.

11. Auto Diesel Spare and Services

12. Supreme Engineers

13. Laxmi Aircon

14. Eicher Agencies

15. Allied Agencies

16. Vikash Agro engineers

36

8
7
7
6
6
5
4

4
3

3
2

2
1
1
0

Fig. 12

37

SIKAR
1.

Arjun Metals

2.

Laxmi Agro Agencies

3.

New Chaudhary Enterprises

4.

Chaudhary Machinery

5.

Chaudhary Auto Centre

6.

Chaudhary Auto Enterprise

7.

Chaudhary Trading
DAUSA

1.

Vijayvargia Sales Co.

2.

Rajesh Agencies

3.

Rajesh Automobiles

4.

Khandelwal Engine Co.

38

KOTA
1.

Fatehpuria Bros.

2.

Bombay Machinery

3.

Govind Agencies

4.

Maharashtra Engg. & Machinery

5.

Jainsons Enterprises

6.

M. M. Sales

7.

Maheswari Mill Store

8.

Hindustan Machinery Mart

9.

Delhi Machinery

10. Sanjay Agro Agencies

11. Nimish Enterprises
12. Dasmesh Enterprises
13. Ambika Krishi Kendra

39

BARAN
1.

Ganesh Machinery

2.

Garg Traders

3.

Banshal Machinery Stores

4.

Jain Traders

5.

Delhi Machinery

6.

Nagar Machinery

7.

Soni Enterprises

8.

Nakoda Industries

9.

Manoj Traders
BUNDI

1.

Rashmi Traders

2.

Shanti Traders

3.

Mahajan Mill Store

4.

Jhanwar Traders

5.

Sharma & Co.

6.

Usha Co.

7.

Sharma Agencies

8.

Vijay Agencies

9.

Pradeep Electronics

10. Ashoka Traders

40

JODHPUR
1.

Mahesh Engg. Centre

2.

Bhagwanti Machinery

3.

Jain Machinery Shop

4.

Kisan Bros.

5.

Azad Enterprises

6.

Harsh Trading Co.

7.

Shree Kisan Bros.

8.

Generators International.

9.

Kushal Traders
PALI

1.

Om Machinery Stores

2.

Kisan Bros.

3.

Mohan Machinery

SANCHORE
1.

G. M. Agencies

2.

Gehlot Machinery

3.

Jambheshwar Machinery

4.

Barmer Machinery Stores

5.

Gayatri Machinery

6.

Choudhary Sales Co.

41

DHORIMANNA
1.

Ashapuri Traders

2.

B. R. Chaudhary Machinery Stores

3.

Jangid Krishi Kendra

4.

Gehlot Machinery

5.

Kishan Machinery Store

6.

Malaxmi Machinery

7.

Godara Machinery Stores

8.

Gopal Diesel Engines

9.

Ganpati Traders

10.

Vishwakarma Machinery

11.

Jagdish Selection Machine Stores

12.

Sarvodaya Electricals
BARMER

1. Barmer Enterprises
2. Marudhar Enterprises
3. Barmer Machinery Parts
ALWAR
1.

Khandelwal Krishi Kendra

2.

Agriculture Associates

3.

Laxminarain Narendra Kumar

4.

Subham Agency

5.

Indrajit

42

COMPETITION OF BRANDS & BRAND EQUITY

No of Respondents

51

According to the responses from these dealers of different brands, rank in order of
competitors of different brands has been worked out, based on the following
formula.
No of Points

(No. of Brands ranked+1) (No. of

respondents of the concerned brand)
sumtotal of ranks assigned

Based on the points gathered the different brands has been ranked in descending
order

43

RANK IN ORDER OF COMPETITORS OF KIRLOSKAR

Table No. 10
RANK
1
2
3
4
5
6
7
8
9
9
9
12

BRAND
Field Marshal
Eicher
Ashok leyland
Cummins
Vishal Bharat
Prakash
Topland
Crown
Atul
Ajit
Usha
Mercury

POINTS
117
57
34
33
24
22
16
12
11
11
11
9

Perception of extent of competition given by other brands to Kirloskar.

POINTS
Crown Ajit
Usha
3%Atul 3%
3%
Topland
3%
4%

Mercury
3%

Field Marshal
33%

Prakash
6%
Vishal Bharat
7%
Cummins
9%

Eicher
16%
Ashok leyland
10%

Fig. 13

Perception of extent of competition given by other brands to Field Marshal

Table No. 11
RANK
1
2

BRANDS
Kirloskar
Topland
44

POINTS
82
61

3
4
5
6
7
7
9

Satyajit
Anil
Indrajit
Mercury
Sonnet
Progressive
Bharat

22
15
8
7
6
6
5

Perception of extent of competition given by other brands to Field Marshal.

Sonnet
3%
Indrajit
4%

Progressive
3%

Mercury
3%

Bharat
2%

Kirloskar
39%

Anil
7%

Satyajit
10%
Topland
29%

Fig. 14
Perception of extent of competition given by other brands to Topland
Table No. 12
RANK
1
2
3

BRANDS
Kirloskar
Field Marshal
Mercury
45

POINTS
8
6
3

Prakash

Perception of extent of competition given by other brands to Topland.

Mercury
15%

Prakash
15%

Kirloskar
40%

Field Marshal
30%

Fig. 15

Perception of extent of competition given by other brands to Eicher

Table No. 13
RANK
1
1
3
4
5
6

BRANDS
Kirloskar
Field Marshal
Topland
Anil
Sonnet
Satyajit

46

POINTS
10
10
8
4
3
2

Perception of extent of competition given by other brands to Eicher

Sonnet
8%

Satyajit
5%

Kirloskar
27%

Anil
11%

Topland
22%
Field Marshal
27%

Fig. 16

Perception of extent of competition given by other brands to

Usha
Table No. 14
RANK
1
2
3
4
5
6

BRANDS
Kirloskar
Field Marshal
Bharat
Topland
Prakash
Sonnet

Perception of extent of competition given by other brands to Usha

47

POINTS
24
12
5
4
3
2

Prakash
6%

Topland
8%

Sonnet
4%

Bharat
10%

Kirloskar
48%

Field Marshal
24%

Fig. 17

Perception of extent of competition given by other brands to Ashok Leyland

Table No. 15
RANK
1
2
3

BRANDS
Kirloskar
Tata
Cummins

POINTS
3
2
1

Cummins
17%

Tata
33%

48

Kirloskar
50%

Fig. 18

Perception of extent of competition given by other brands to Cummins

Table No. 16
RANK
1
2
3

BRANDS
Kirloskar
Ashok Leyland
Tata

Tata
17%

POINTS
3
2
1

Fig. 19

Kirloskar
50%

Ashok
Leyland
33%

Perception of extent of competition given by other brands to remaining brands

Table No. 17

49

RANK
1
2
3
4
4
4
7
7
9
9

BRANDS
Kirloskar
Field Marshal
Topland
Prakash
Satyajit
S.A Tiger
Harvest
Progressive
Sonnet
Varun

Sonnet
Progressive 6%
7%

Varun
6%

POINTS
26
20
19
10
10
10
9
9
8
8

Kirloskar
19%

Harvest
7%

Field
Marshal
16%

S.A Tiger
8%
Satyajit
8%

Prakash
8%

Topland
15%

Fig. 20

Measure of Brand power of each brand

Assuming each dealer rates his brand as number one in the territory the brand power of
individual brands has been calculated based on the same previous formula.
Table No. 18

50

Brands

Points gained by own

Points given by

Brand power

dealers

other dealers

(A+B)

(A)
430
279
54
78
32
9
9
232

(B)
156
165
57
11
108
36
34
186

586
444
111
89
140
45
43
418

Kirloskar
Field Marshal
Eicher
Usha
Topland
Ashok leyland
Cummins
Others

Fig. 21

rs

s
m
m
in

n
yl
a

d
n
la

U
sh

r
E
ic
h

h
rs

sk

700
Brand order in Rajasthan
600
156 Marshal 3.Topland 4.Eicher 5.Usha 6.Ashok Leyland 7. Cummins.
500 2.Field
1. Kirloskar
400
165
186
PERCEPTIONS,
SELLING PROPOSITIONS AND BRAND
300
430
200
11
57
279
108
232
36
34
100
54
78
32
9
9
USPs
0
th

C
u

le

T
op

M
a

K
ir
lo

From these two questions several selling propositions and perceptions about the

ie

A
sh

ld

different brands has been charted. They appear in the order of frequency they are
heard in the market.

KIRLOSKAR

Faith in name (Brand Power)

Powerful

Availability of service

Genuine parts

Engine is o.k.

Quality

Cheap

Requires overhauling after three years

51

FIELD MARSHAL

Good quality

Oldest name in the market

Good service

Free service camp in two years

Fuel economy

Availability of spares

Availability on credit

Reasonable price

TOPLAND

Heavy wheel

Less complaints

0% accident rate in 12 HP (Safe)

Good strengths

Availability of service

Fuel economy

Cheap
EICHER

Aircooled

Fuel economy

Maintenance free

52

Good quality

Engine gets derated at high temperature

Based on the information about different brands in question numbers 7.1 & 7.2
unique selling propositions (U.S.P.) of different brands has been worked out.
Table No. 19
NAME OF BRANDS
Kirloskar
Field Marshal
Topland
Eicher
Kisan
President
Satyajit
Annapurna
Ashok leyland
Cummins

U.S.P.
Brand power
Ready availability of service & spares.
Accident free
Fuel economy
Synonym of Topland
Synonym of Topland
Better piston position
Availability of spares
Heavy duty
Quality

53

SELLING STRATEGIES
Based on the response from 51 dealers a frequency distribution table of different
strategies for selling has been made.
Table No. 20
SELLING STRATEGIES
NO. OF DEALERS
Advertisement
25 (50%)
Field activities
16 (32%)
Credit sale
11 (22%)
Discount
8
(16%)
After sales service
4
(8%)
no effort
6
(12%)
Series 1 denotes the strategies adopted by the dealers while.

ef
fo
rt
no

is
D

l..

co
u

...
it
re
d
C

ac
ld
Fi
e

Ad
ve
r

45
6

47
4

sa

16

43
8

Af
te
r

25

40
11

nt

35

t..
.

26

t..
.

60
50
40
30
20
10
0

Series 2 shows dealers not adopting the corresponding strategies.

Fig. 22

Hence selling strategies in the order of popularity among dealers are as follows.

54

1. Advertisement 2.Discount and credit 3.Field activities 4.No effort

5. After sales service.

55

TERRITORIAL INFRINGEMENT
Established channels for different markets and aim for efficiency control and
adaptability.
Successful go to market strategies require integrating retailers, wholesalers
and logistical organizations
Kotler
Based on the response from 51 Dealers it was learnt that infringement is
happening at a sizeable level. Few dealers claimed that 30 to 40 percent of sale is
through infringement. It was also known that few brands are prone to
infringement for example, infringement is rampant among Kirloskar dealers. Few
dealers of Topland and Field Marshal also confided that infringement is
happening in every brand including theirs but not at a noticeable level. Few
dealers also confided that company instigates infringement. Infact Kirloskar has
made infringement its defacto policy. A total of 13 dealers out of 51 said that
there is no check to infringement and they counterinfringed in others territory.
However there was a general feeling that infringement acts as disincentive for
field work and brand building exercises.

infringement
57%

no
infringement
43%

56

Fig. 23
Infringement is rampant in engine market because of following reasons:

Overall shrinkage in the sale of engine

Shrinkage in the sale of big brands, like Kirloskars, because of drought on the one
hand ,and tough competition on the other hand

Infringement is the indicator of shrinkage in sale, and degree of infringement is

directly proportional it.
MANAGING INFRINGEMENT

KIRLOSKAR'S STRATEGY:
(De facto policy)
Kirloskar uses infringement to its advantage by compelling dealers to cut down their
margin & being able to clear inventory at the cost of dealers
(De Jure policy).

The commission of the infringing party goes to the dealer of the territory
TOPLAND'S STRATEGY

Make as many dealers in the same territory but give brand name to only one and
change the brand name like Kisan Topland or President Topland etc.
FIELD MARSHAL'S STRATEGY

Outright cancellation of dealership of the infringing party.

INFRINGEMENT IS FACED BY THE BIG BRANDS AT THE NOTICEABLE LEVEL

BECAUSE OF LARGE NO. OF DEALERS VYING FOR CONSISTENT MARKET
SHARE IN THE PERIOD OF DECLINING OVERALL SALES VOLUME.FURTHER
IT IS ACCENTUATED BY INCREASING COMPETITION BY OTHER BRANDS

57

WHICH ARE EATING A CHUNK OF THEIR PIE BELIEING THEIR PROJECTED

SALES FIGURE.

FUTURE PERCEPTIONS
The response of dealers has been divided into three categories
(i)

Good number of dealers perceiving future of engine industry as

good.

(ii)

Bleak number of dealers perceiving future of engine industry as

bleak or dark.

(iii)

Uncertain number of dealers perceiving future of engine industry as

Uncertain or based on factors like rain supply of electricity etc.
Table No. 21
Good
Bleak
Uncertain

19
12
18

Good
39%

Uncertain
37%

Bleak
24%

Fig. 24
Market Buzz about engines future

Demand for high speed engines will increase

Good rainfall will boost engine sale

Future of water pumps is bleak

58

Future of Gensets is bright

WARRANTY & SERVICE CONTRACTS

Based on response from dealers following information has been gathered
regarding warranty and service policy of the companies.

Field Marshal Policy

Field Marshal has warranty policy of 1Year, which covers:1. Body 2.Block 3.Head 4.Crank & 5. Wheel
However, it does not give warranty on
1. Nozzle 2. Plenzer & 3.Silencer
The company gives Rs.25/- per set for service to the dealers.
The company also arranges free service camp annually or biannually

Kirloskar Policy
Kirloskar gives 1Year warranty and has service engineerevery 14000 sets.
(Rajasthan has only one service engineer).

Eicher Policy
Eicher gives warranty for 1Year or 1000 running hours whichever is earlier.

Topland Policy
Top land gives 6 months warranty an each set.

Ashok Leyland & Cummins Policy

59

Ashok Leyland & Cummins offers 1Year warranty

(Dealers of Kota region have curtailed the warranty period to 6 months only,
for all the brands, irrespective of what is promised by the company.)
Every dealer has their own trained mechanic, and barring few exceptions all
of them bear the cost of servicing within warranty period.
Some Kirloskar dealers told that replacement is problematic and sometimes it
takes even a whole year.
Some minor brands like Swaraj, offers guarantee (Which in engine market
means replacement of whole set in case of any fault) of 1year.

60

FINANCING OF ENGINES
From the response of dealers following things has been learnt about financing
of engine. Financing of engine is available through banks. These banks
are:

Thar Anchalik Bank.

Gramin Bank.

Co-operative Bank

Land Mortgage Bank.

To get loan from any of these banks, membership is required, which is available
on producing evidence of being native of the region where the Bank is located,
and payment of membership fees. Banks dont give loan for engines if the
resident is in dark zone (notified by NABARD as regions where water level is
below 50 feets). For non dark Zone, loan is granted for upto 10HP engines, which
should necessarily be ISI marked. There is no list of preferred brand. Whereas Cooperative Bank requires margin money on quoted amount, Land Mortgage Bank
does not require any margin money. Rate of interest is 11.5%.
In addition to all these Banks several other Banks grant loan as personal loan.

61

ANALYSIS OF
RESPONSE TO STATEMENTS ON
LIKERT SCALE

62

S.1

People buy water cooled models because they are ignorant about merits of
air cooled models.
No. of Respondents

50
Table No. 22

Strongly agree (5)

Moderately agree (4)
Neither agree nor disagree (3)
Moderately disagree (2)
Strongly disagree (1)

13
7
6
6
18

Strongly
disagree (1)
36%

Strongly
agree (5)
26%

Neither
agree nor
disagree (3)
12%

Moderately
disagree (2)
12%

Fig. 25
Mean likert rating =2.78

63

Moderately
agree (4)
14%

Inference:
Likert rating of 2.73 and option wise break up of the Response, both shows
general disagreement to the proposed statement.
According to dealers perception about the customer buying water cooled sets,
amidst availability of good air-cooled sets, ignorance, is not the reason behind it
rather, it was learnt there are many barriers behind it. The most prominent are:Psychological Barrier and Perceived technological deficiency. People feel
aircooled sets create problems in the long run, like oil spillage, over-heating,
diminishing performance etc. Further water- cooled sets do have some inherent
problems with it but people are accustomed to it and consider it as safe bet
against air-cooled ones.
But it was also found out that air-cooled sets are fairly popular among industries
and corporate for they require little care from the operators.

64

S.2.

People ask for most advertised/publicized /visible models.

No. of Respondents

50
Table No. 23

Strongly agree (5)

Moderately agree (4)
Neither agree nor disagree (3)
Moderately disagree (2)
Strongly disagree (1)

Strongly
disagree (1)
14%

Moderately
disagree (2)
2%
Neither
agree nor
disagree (3)
8%

28
10
4
1
7

Strongly
agree (5)
56%
Moderately
agree (4)
20%

Fig. 26
Mean likert rating

=4.02

Inference:
65

Likert rating of 4.2 and only 16% of moderate and strong disagreement against
the statement suggests overwhelming acceptance of the proposed statement.
However during the survey it was learnt that visibility creates the most powerful
impact in the engine market, rather than advertising and publicity. People have
herd mentality and prefer to buy brand and model visible in the vicinity. Rural
folks have conservative

mindset and they want a secure buy rather than

venturing with an unknown brand in the market.

S.3.

People buy because of price rather than anything else.

66

No. of Respondents

50
Table No. 24

Strongly agree (5)

Moderately agree (4)
Neither agree nor disagree (3)
Moderately disagree (2)
Strongly disagree (1)

3
13
5
4
25
Fig. 27

Mean likert rating

2.3

50

Moderately
agree (4)
Likert rating of 2.3 and only 32% people
statement shows,
26%
majority of people dont buy because of price. However, there is a niche of
Neither
people in every
region who buy purely for price. There are around 6-7%
Strongly
agree nor
customers in adisagree
region buying
(1) purely for price while 25-26% people keep price
disagree (3)
high on the priority50%
of factors influencing their buying decision.
10%
Moderately
Customers come with predetermined model and brand
to buy.(2)
disagree
8%
Inference:

S.4.

Strongly
agree (5)
6%to the
agreeing

No. of Respondents

Table No. 25
Strongly agree (5)
Moderately agree (4)
Neither agree nor disagree (3)
Moderately disagree (2)Moderately
Strongly disagree (1)

disagree (2)
6%Fig. 28

Neither
agree nor
Meandisagree
likert rating (3) =
10%

26
11
5
3
5

Strongly
disagree (1)
10%

Inference:

Moderately
agree (4) 67
22%

Strongly
agree (5)
52%

Likert rating of 4 and 74% of people moderately and strongly agreeing to it,
shows that people come with predetermined brands and models to buy.
S.5.

You most of the times change the decision of the customer.

No. of Respondents

50
Table No. 26

Strongly agree (5)

Moderately agree (4)
Neither agree nor disagree (3)
Moderately disagree (2)
Strongly disagree (1)

14
26
4
2
4

Strongly
disagree (1)
8%

Moderately
disagree (2)
4%
Neither
agree nor
disagree (3)
8%

Moderately
agree (4)
52%

Fig. 29
Mean likert rating

3.88

68

Strongly
agree (5)
28%

Inference:
Likert rating of 3.88 and moderate agreement of 52% of dealers shows that they
are in partial agreement of the statement. Hence , it may be inferred that dealers
does not change the buyers decision most of the times but many times they do so.

69

S.6. you get sufficient margin in sale.

No. of Respondents

50
Table No. 27

Strongly agree (5)

Moderately agree (4)
Neither agree nor disagree (3)
Moderately disagree (2)
Strongly disagree (1)

9
8
5
10
18
Fig. 30

Mean likert rating

Strongly
2.6
disagree (1)
36%

Strongly
agree (5)
18%
Moderately
agree (4)
16%

Neither
Moderately
Likert rating of 2.6
with 56%(2)
of people clearly not agreeingagree
to the nor
statement,
disagree
(3)get in
shows widespread resentment
margin they
20% amongst dealers, regarding thedisagree
10% get 4-5%
sales. It was also revealed during the survey that Kirloskar dealers
Inference

margin, Field Marshal dealers get 3-4% margin, Topland dealers get 8-9%
margin, Eicher dealers get 6-7% margin, Kisan & president dealers get 5%
margin. General expectation of dealers is that they should get 10-12 % margin in
sale, so that they could bear the cost of field activities and servicing.

70

S.7.

you

get adequate incentives and non monetary benefits, like 71raveling

opportunities, to promote the brand you are dealing in.

No. of Respondents

50
Table No. 28

Strongly agree (5)

Moderately agree (4)
Neither agree nor disagree (3)
Moderately disagree (2)
Strongly disagree (1)

7
14
1
3
25

71

Fig. 31

Strongly
agree (5)
14%

Strongly
disagree (1)
50%

Moderately
agree (4)
28%
Neither
agree nor
disagree (3)
2%

Moderately
disagree (2)
6%
Mean likert rating

2.48

Inference:
Likert rating of 2.48 with 50% dealers strongly disagreeing and 56% moderately
& strongly disagreeing, while 42% strongly and moderately agreeing to the
statements, denotes, different expectation

of dealers from concerned brand

owners. Whereas Kirloskar dealers get target incentive, Topland dealers get target
discount and Field Marshal distributor get gifts like, T.V., V.C.P., Refrigerators
etc, on target fulfillment.
Many dealers get travelling opportunities, once or twice a year. However this is
not the point of contention and many felt they would be happy if such tours are
organized once in two years, so that they too may save their precious time.

72

73

S.8.

You are brand loyal and will stick to the brand you are dealing in.
No. of Respondents

50
Table No. 29

Strongly agree (5)

Moderately agree (4)
Neither agree nor disagree (3)
Moderately disagree (2)
Strongly disagree (1)

22
7
9
3
9

Strongly
disagree (1)
18%

Moderately
disagree (2)
6%

Neither
agree nor
disagree (3)
18%

Mean likert rating

Strongly
agree (5)
44%

Moderately
agree (4)
14%

3.5

Inference
Likert rating of 3.5 suggest reservations of dealers in admitting their brand
loyalty. Thus, dealers are not sure if they would

stick to the brand they are

dealing in. this shows the extent of uncertainties in this segment of sale.

74

S.9.

you will change the brand, for higher margin, with similar sales potential.
No. of Respondents

50
Table No. 30

Strongly agree (5)

Moderately agree (4)
Neither agree nor disagree (3)
Moderately disagree (2)
Strongly disagree (1)

17
15
4
3
11

Strongly
disagree (1)
22%

Moderately
disagree (2)
6%

Neither
agree nor
disagree (3)
8%

Moderately
agree (4)
30%
Fig. 32

Mean likert rating

3.68

Inference

75

Strongly
agree (5)
34%

Likert rating of 3.68, with 64% of dealers moderately & strongly agreeing to it
shows impact of margin on brand loyalty among dealers. Thus, agreement to
this extent suggests that margin plays a major role in shaping brand loyalty
among dealers. dealers who moderately agree prefer to add the incumbent brand
to the list without loosing the previously existing brand.

76

Table No. 31
S.

STATEMENTS

LIKERT

NO.
1

INFERENCE

RATING
People buy water- cooled Models because

2.78

Disagree

4.02

Agree

2.3

Disagree

they are ignorant about merits of air cooled

models.
2.

People ask for most advertised/publicized

/visible models.

3.

People buy because of price rather than

4.

anything else.
Customers come with predetermined model

Agree

5.

and brand to buy.

Customers come with predetermined model

3.88

Agree

6.
7.

and brand to buy.

You get sufficient margin in sale.
You get adequate incentives and non

2.6
2.48

Disagree
Disagree

monetary benefits, to promote the brand you

8.

are dealing in.

You are brand loyal and will stick to the

3.5

Agree

9.

brand you are dealing in.

You will change the brand, for higher

3.68

Agree

margin, with similar sales potential.

77

GAUGING THE SALES POTENTIAL OF 15-40HP

ENGINES IN RAJASTHAN
Calculated total sales of 38 dealers = 1088 sets
Since 99 dealers are listed and assuming 10% dealers remained
Unscanned.
Estimated No. of dealers = 99X(1+10%)=109
Therefore, total estimated sales = 109X1088 = 3120 sets
38
Likewise, projecting the sales figure all over the surveyed area we get the market
estimate of each region.

78

Table No. 32
NAME OF REGION
Jaipur
Sikar
Dausa
Kota
Barmer
Sanchore
Dhorimanna
Pali
Jodhpur
Bundi
Baran
Alwar

ESTIMATED SALES (15-40HP)

487
200
115
372
86
172
344
86
258
286
258
143

Rank in order of market sales of regions.

Bundi
10%

Baran
9%

Alwar
5%

Jaipur
18%

Dausa
4%

Jodhpur
9%
Pali
3%

Sikar
7%

Dhorimanna
12%

Sanchore
6%

Kota
Barmer 14%
3%

Fig. 33
Jaipur > Kota> Dhorimanna> Bundi> Jodhpur, Baran> Sikar> Sanchore> Alwar> Dausa>
Barmer, Pali

CUSTOMER BEHAVIOUR
The most important think is to forecast where customers are moving, and to be in front of
them

79

Kotler
A separate customer survey was done to gauge the customers buying behaviour. In this
survey it was found out that there is an order in which people choose a brand and model
to buy. This order can be shown as : Choice of dealer.
Availability of services & spares.
Quality of the set.
Price of the set.
Dealers have their area of influence and they get their customers from that area only.
Customers choose the dealer based on the performance of sets in his neighborhood or
one previously owned by him. Hence, dealers play the most important role in selling
an engine set. Some of the dealers are even known for assisting the customers in
getting loan, e.g., one Field Marshal dealers, who earlier dealt in Rocket brand
engine, was successful in selling bulk of them because of this policy only. Several
people in Hemaguda village of Sanchore Tehsil has bought Rocket brand because
of this only. However, customer behaviour has changed by then and few people talk
of buying on credit, even dealers dont want to sell on credit nowadays (Kota is an
exception, where credit sale in maximum). Nonetheless, dealers still come on top of
their mind while buying an engine.
After having chosen the dealer they know, customers look for whether services and
spares are readily available or not. People are ready to buy a mediocre set which can
be repaired easily by themselves or any readily available mechanic, rather than going
for sophisticated ones with complex engineering and which requires expert handling
in case of fault. An anecdote from an incident may prove useful in this case. While in
Pali, I encountered a villager who told me that he consider Massey Fergusson tractors
better than Ford or Eicher, because Ford or Eicher will not work in case of even miner

80

fault but Massey will work even if there is a fault in its engine. Same principle
applies in the case of diesel engine sets too.
After having ascertained dealer and availability of services and spares, the customers
looks for the quality of the set. Quality of the set is Judged on following parameters.
Expected life of the set
Time period after which servicing is required
Fuel efficiency.
Nowadays people considers buying an engine as a long time investment. Hence
people dont care, if they spend extra for better quality. Quality comes above price in
customers mind.

81

WHY DEALERS ARE SO IMPORTANT

Many businesses are wisely turning their suppliers and distributors into valued partners
Kotler

Types of Customers

Dealers Offer

Credit Hunter

Credit

Discount Hunter

Discount

Utility Hunter

Extra Service & Spares

Brand Hunter

Advertisement / Visibility

Information Barrier
On the left side of the above drawn diagram are the types of customers available in the
market and boxes on the right hand side shows the strategies adopted by dealers to lure
these customers. The broken vertical line shows a semi permeable barrier which can be
passed through the acquaintance with the dealer offering these customers their desired
bargain. Because, credit and discount are offered in the engine market in hidden way,
therefore, customers choose the one based on information floating in his surrounding.
That is why we find dealers commanding influence in pockets. Further, servicing of
engine is also promised by few dealers beyond warranty period. Since, much of the
pricing and servicing contract is being done in confidential manner between customer and
dealer, choice of dealer becomes of paramount importance to the customers.
82

Returning back to the diagram, if the customer is not able to pass through the semi
permeable barrier, he falls into the next lower category just below him and so on. Since,
customers try their best to remain in higher order, therefore, they cling on to the dealer
known to him rather than venturing and scanning the market.

83

EXPLOITING CUSTOMERS BEHAVIOUR TO BOOST

SALES POTENTIAL
Since the order of preference in buying a diesel engine set in known which reads
as
Dealer> Services & Spares> Quality> Price.
And the factor which makes 15-40HP segment most competitive (Relative
competition ratio of 3 segments is 1:4:2) is the overabundance of dealers over
customer. Both the facts suggests, brands should spread themselves all across the
dealers in the targeted territory. The brand like Kirloskar has wide presence
among dealers and hence it is better propositioned in the market. Field Marshals
strategy of distributors driven network will not work in this segment. In fact Field
Marshal is a new entrant in this segment and shall have to learn the hard fact that
it is a segment of very high competition, where competition among dealers can be
combated only by spreading the brand across the dealers.
Eicher is very vulnerable to this competition among dealers because there are very
few number of dealers of Eicher in this segment. In fact brands will find that sales
is directly proportional to the number of dealers in this segment.
A good service policy may be the next target to boost the sales. Ready availability
of spares and service centers across the targeted territory may boost sales. Infact,
anamoly is that dealers play

more on advertising and credit and discount, and

services comes last in their preferred tool for sales promotion techniques. Here,
Field Marshal scores over everyone by arranging annual free services camp. Little
to wonder is has acquired an envious aura in the engine market and customers
mindset.

84

Quality of the set is of importance only when the set has passed through two
previous stages in selling process. If the sale is decided on the previous two
parameters then even an O.K. quality will do. Infact, this behaviour is due to the
fact that people buy an engine sets to get return. They want it to work in required
time period. Hence services and spares are above quality in consumers preference.
Nevertheless, there is a section of quality conscious consumer who skips the
previous two stages and go for a better quality. These are the customers from
industries and corporates. They are the people who prefer aircooled over water
cooled, less bothered about complexity of engineering and services and spares.
Among majority of customers price is the last thing they look for in an engine set.
These days pricing is no more a barrier for good quality infact there are few
customers who buy purely an price basis.
Now looking at all the parameters that customers keep in mind while purchasing
an engine set. Kirloskar is the overall winner which plays an all the four fronts
while other brands are playing upon few of them only. Hence, Kirloskars
Marketing strategy with enormous brand power (shown earlier) is suitably poised
in 15-40HP diesel engine market.

85

MARKET SEGMENT IN 15-40HP, ENGINE SALES

15-40 HP engine market may be segmented on following basis1.

Based on electric supply in the region:(a)

About 12 hours of electric supply:- people buy to supplement the electric

supply from electric lines and use less of engines infact market size is meager
in this segment Sanchore, Jalore & Pali are such type of regions.

(b)

About 6hours of electric supply:- people depends fully on diesel engine sets
for irrigation and other applications. Dhorimanna & Barmer are such region.
In fact these are the real market for 15-40HP engines.

2. Based on credit sale:(1)

High credit sale:- People here prefer credit, which has given rise to a
distinet marketing environment. Kota, Baran & Bundi are such regions.

(2)

Moderate credit sale:- Jaipur, Sikar and Dausa.

(3)

Low credit sale Jodhpur, Alwar, Dhorimaama, Pali

Sanchore

3. Based on ease of maintenance & convenience of use:(i) Seeking convenient and easy to handle sets:-

Urban people who prefer

aircooled over water cooled, light weight over heavy weight, portable against non
portable sets and low-noise against high noise making sets.
(ii)

Seeking heavy duty high utility sets:- rural people, who use sets for
irrigation and related agricultural purposes, seeks water cooled and are not
bothered about weight, portability and noise level.
86

EICHER PERSPECTIVE
Eicher tractors manufacture engines starting from 22HP to upto 45HP, that means it is
placed in the most difficult segment of engine industry i. e, 15-40HP. Further, engine
sales in this segment is proportion to the number of dealers. with very low number of
dealers in this segment, Eicher cant expect to boost its sale. The first most important
thing is to increase the number of dealers. Good news is that growth in number of
dealers is passing through the stage of high rate of growth which is expected to be
maintained for coming 7-8 years. The company should try to make maximum number of
dealers within this period. Further, all dealers are not alike. Average sale per dealer
calculated during survey is 29 sets per annum. The company should set a realistic target
and reward the dealers who sell above this level. The realistic target, keeping in view the
brand power of Eicher (rated as No. 4 in industry) is 25 sets. Any dealer who sells above
25 sets in an year should be given target incentive on target discount. Looking at the
rated competitors of Kirloskar (the market leader in this segment), Eicher figures at
number 2 after Field Marshal. But, Field Marshal is new in this segment and unknown in
more than 20HP segment. This elevates Eicher from, Trailer to Runner status, thus
allowing it to make concentrated frontal attack on Kirloskar. Weak points of Kirloskar
enumerated during survey are:1.

Frustrated Dealers become of high level of territorial infringement and unrealistic

target.

2.

Poor conformance quality

3.

Short expected life of set.

4.

Delayed availability of services

87

Eicher may attack on Kirloskar based on following points.

1.

Treat dealers as business partners by giving them adequate incentive, realistic target
and other fringe benefits like travelling opportunities, gifts etc.

2.

Maintain high level of conformance standard in its set and frame some policy to
remove consumer dissatisfaction in case some of its sets are not meeting the
required standards.

3.

Frame a good servicing policy. And annual on biannual service camp, as organized
by Field Marshal, may be ideal for this purpose. Infact

a time frame should be

given within which a fault must get corrected.

4.

Burst the Myth of aircooled sets being problematic. It should spread awareness
among masses by showing the effectiveness and ease of operation of aircooled
engines in mass gathering, exhibition etc, because visibility creates great impact
among masses.

5.

Aircooled sets combined with fuel economy as USP and good servicing policy, it
can make a frontal attack on Kirloskar by means of
media or wall paintings or public gatherings.

88

comparative advertisement in

ANNEXURE

89

CALCULATION OF MARKET ESTIMATES

Gauging the sales potential of 15-40 HP engines in Rajasthan.
Calculated total sales of 38 dealers = 1088 sets
Since 99 dealers are listed and assuming 10% dealers remained unscanned.
10

99 1
109
100

Total estimated sale 3120 sets

Market estimate of
17
Jaipur
3120 486.6
109
Sikar

7
3120 200.367
109

Dausa

Kota

4
3120 114 .5
109

13
3120 372.11
109

Barmer

3
3120 85.87
109

Sanchore

6
3120 171.74
109

Dhorimanna

12
3120 343.5
109

90

Pali

3
3120 85.87
109

Jodhpur

Bundi

9
3120 257.61
109

10
3120 286.239
109

Baran

9
3120 257.615
109

Alwar

5
3120 143.12
109

91

LIST OF DEALERS
JAIPUR
Name of

Address

Phone & Fax

Contact Person

Dealership
Auto Diesel Spare

M.I. Road

2378137 (o)

Vijay Kumar Uppal

& Services
Esen Engineers

13, Motilal Atal

368661 (o) 378911,

Ravi Malhotra

Road

408833

Pratap Diesels Pvt.

453, Sanjay Nagar,

378911 (Fax)
2344351, 2346361

P.S. Sekhawar &

Ltd.

D Kalwar Road,

0141-23441551

D.S. Sekhawar

Ajmer Sikar Bypass, (Fax)

Jhotwara
141 B Ganpati

2365120, 2365159

Manju Sharma &

Plaza, M.I. Road

0141-5108538

Mahendra Sharma

Arjun Metals Pvt.

102, City Centre,

(Fax)
2369213, 2375499

Arjun Choudhary

Ltd.

S.C.Road

0141-2375498

Jackson Traders

(Fax)

Supreme Engineers

Radhika Complex,

2365811,

Ramniwas

Loha Mandi, S.C.

9829053265

Choudhary

Road
403, shalimar

(Mobile)
2371045, 5104045

P.K. Kochhar

Complex, Church

0141-2371045

Eicher Agencies

Road
7, Transport Nagar,

(Fax)
2340661 432759

Mahendra

Laxmi agencies

Agra Road
Shiv Bhawan,

2365691

Choudhary
Dinesh Bhati

Vikash Agro

Station Road
Vanasthali Marg

2366990 (Fax)
2361936

Santosh Kumar

Sudhir Gensets Ltd.

Engineers

Sharma
92

Capital Engineers

165-166, Ganpati

5102333

Rajendra Sharma

Industrial Sales &

Plaza
Katewa Bhawan,

2388658 (Fax)
2375371, 5108059

Shashank Bhargava

Manufacture Co.

M.I. Road

0141-2366329

M.I. Road, Purohit

(Fax)
2367465

Ji Ka Bagh

0141-2366879

Bhaskar Power

Anukampa Tower,

(Fax)
0141-375165

Projects (Pvt.) Ltd.

Church Road

9829058011

Atlantic Agencies

(Mobile)

93

G.R. Nahar

Manish Pareek

SIKAR
Name of
Dealership
Laxmi Agro

Address

Phone & Fax

Contact Person

Kalyani Circle,

01572-251207 (o)

Mahavir Prasad

Agencies
Arjun Metals
New Choudhary

Silver Jublee Road

Kalyani Circle
Kalyani circle,

255037 (R)
255548
51475 (O) 43100

Sharma
Mukanda Ram
Bhanwar Choudhary

Enterprises

Silver Jublee Road

(G) 58991

Name of

Address

Phone & Fax

Contact Person

Dealership
Rajesh Agencies

Lalsot Road

231754

Ramesh Kumar

DAUSA

Rajech Automobile
Khandelwal Engine

Lalsot Road
Lalsot road

230854
230290

Gupta
Brijmohan Gupta
D.P. Gupta

Co.
Vijaya Vargia Sales

Man Ganj

230139 (O)

Nawal vijay

Corp.

230406

PALI
Name of
Dealership
Om Machinery

Address

Phone & Fax

Contact Person

Mandia Road

230006

Om Prakash Solanki
& Yogesh Solanki

94

KOTA
Name of
Dealership
Gobind Agencies

Address

Phone & Fax

Contact Person

Opp. Allahabad

2450181

Gulab chand

Bank, Shopping

2450181 (Fax)

Nimish Enterprises

Centre
Near Payal Hotel,

2333808 (S)

Rajendr Tyagi

Jainsons Enterprises

Nayapura
Nayapura, Near

2430468 (R)
2340941

S.K. Jain & Hemant

Thana

2451041 (O)

Jain

2380598
94141-89091
Sanjay

(Mobile)
2322823

Agro Nayapura, Near

Agencies & Delhi Petrol Pump

2323824

Machinery
Hindustan

2322756

Nayapura

Machinery Mart
BARAN
Name of
Dealership
Manoj Traders
Soni Enterprises
Bansal Machinery
Store
Ganesh Machinery

Bhanwar Singh

Jitendra Kumar
Dhal

Address

Phone & Fax

Contact Person

Deendayal Park,

230957

Manoj Garg

Sahabad Road
Mangrol Road

234488 (O)

Jagdish Soni

Deendayal Park

230232
230302

Hemant Bansal &

Deendayal Park

230267
230293 (O)

Pramod Bansal
Ganesh Lal

Store

231049

Garg Traders

232001
231000

Anand Garg &

230372

Bharat Garg

Address

Phone & Fax

Contact Person

Lankagate Road

2442125

Bhagwan Totla

Hospital road

BUNDI
Name of
Dealership
Rashmi Traders

95

Sharma Agency
Sharma & Co.
Jhanwar Traders

Lankagate Road
Lankagate Road
Lankagate Tehsil

Mahajan Mill Store

Road
Lankagate road

2447716
2443461

2443145

Sohanlal Sharma
R.C. sharma
Parmeshwar
Jhanwar
Murli Manohar
Lakhotia &
Shelandra Lakhotia

JODHPUR
Name of
Dealership
Generators
International
Azad Engine Spares

Address

Phone & Fax

Contact Person

170, Clock Tower

540085 (O)

Lokesh Bhandari &

Inside Sojati Gate

511291
2615327 (O)

Kamal Bhandari
Purushottam

2622091 (O)

Lalwani

Centre

2430291
Bhagwanti

Inside Sojati Gate

Machinery Store

2626542
2639217 (O)

Yashwant

2611807 (O)

Bhagchandani

2513559
Mahesh Engineering Jalori Gate

2513559
2435755

Kamal Bhawnani

Centre
Shree Kishan Bros.

Opp. Kankariya

2643755
640244, 245

L.N. Bhati

Bldg. Jalori Gate,

640244 (Fax)

Choupasani Road
BARMER
Name of
Dealership
Barmer Enterprises
Barmer Machinery

Address

Phone & Fax

Contact Person

Subhash Chowk
Chohtan Road

222826, 221744
20050 (P.P)

Inder Paliwal
Misrimal Jain &

224922 (R)

Pawan Jain

Parts
DHORIMANNA
96

Name of
Dealership
B.R Chaudhary

Address

Phone & Fax

Contact Person

N.H-15 Sanchore

02986-221318

Bhiyaram

Machinery Store
Gopal Diesel

Road
Sanchore Road

221293,221603,221

Chaudhary
Ramshwar Lal

Engines
Gehlot Machinery
Ashapuri Traders

Sanchore Road
Sanchore Road

046
02986-221734
221532

Swami
Ruparamji Gehlot
Khuman Singh

Name of
Dealership
Barmer Machinery

Address

Phone & Fax

Contact Person

Raniwara Road,

222090

N.M. Jain &

Store
G.M. Agencies
Gehlot Machinery

Sanchore
Raniwara Road
Raniwara Road

222039, 222102
222106 (O),

Narendra Gupta
M.L Parmar
Ruparam Gehlot &

223048 (R)

Mafatlal Parmar

Address

Phone & Fax

Contact Person

Station Road

2336186

K.K. Gupta

SANCHORE

Store

ALWAR
Name of
Dealership
Laxmi Narain
Narandra Kumar

0144-2337399

Agriculture

1,Tej Mandi Station

(Fax)
2337340,

Subhash Joshi &

Associates

Road

5100882,

Rajnish Joshi

Khandelwal Krishi

2,Tej Mandi Station

2700882
2344581(O),

Deepak Khandelwal

97

Kendra

Road

2345752 (R)

& Neeraj
Khandelwal

98

BIBLIOGRAPHY

Marketing Management
- Philip Kotler
Marketing Research
- G.C. Beri
Statistics
- S.C. Gupta

99

GAUGING THE SALES POTENTIAL OF DIESEL

ENGINE SETS IN RAJASTHAN WITH SPECIFIC
REFERENCE TO 15-40HP ENGINES
PROJECT REPORT
2003
Submitted in partial fulfillment of the requirement
of

POST GRADUATE DIPLOMA IN MANAGEMENT

(2002-2004)
Submitted by:
RAMESH KUMAR

UNDER THE GUIDANCE OF:

INTERNAL GUIDE : Mr. SRIKANT KAPOOR
EXTERNAL GUIDE: Mr. RAMESH KINI

INSTITUTE OF MANAGEMENT EDUCATION

SAHIBABAD
100

CONTENTS
S.No.

Particulars

Page No.

1.

Certificate

2.

Acknowledgement

3.

Synopsis

4.

Introduction

5.

Company Profile

5-15

6.

Research Methodology

16

7.

Sample Questionnaire

17-21

8.

Phases in Growth of No. of Dealers

22-25

9.

Market Share & Relative Competition in three segments

of Engine sale

26-29

10.

Air Cooled Vs. Water Cooled

30

11.

Availability of Dealers in different price situations

31-35

12.

Top Dealers of Rajasthan

36-42

13.

Competition of Brands & Brand Equity

43-52

14.

Perceptions, Selling propositions & Brand USPs

53-55

15.

Selling Strategies

56-57

16.

Territorial Infringement

58-59

17.

Future Perceptions

60

18.

Warranty & Service Contracts

61-62

101

19.

Financing of Engines

63

20.

Analysis of Statements on Likert Scale

64-80

21.

Gauging the Sales potential of 15-40HP engines in

Rajasthan

81-82

22.

Customer Behaviour

83-84

23.

Why Dealers are so important

85-86

24.

Exploiting Customers behaviour to Boost sales

potential

87-88

25.

Market Segment in 15-40HP Engines sales

89

26.

Eicher Perspectives

90-91

27.

Annexure

92-101

Calculation of Market Estimate

93-94

List of Dealers visited

95-101

Bibliography

102

28.

102

INDEX OF TABLES
Table No.

Description

Page No.

1.

Years old Number of Dealers

22

2.

Range Number of Dealers

26

3.

Range, Volume, % Share

27

4.

Range, Market Share

28

5.

Number of Dealers, Number of Customers,

Range of Engines

28

6.

Competition in three segments

29

7.

Air Cooled, Water Cooled

30

8.

Price Number of Dealers

31

9.

Price Available Number of Dealers

34

10.

Competitors of Kirloskar

44

11.

Competitors of Field Marshal

45

12.

Competitors of Topland

46

13.

Competitors of Eicher

47

14.

Competitors of Usha

48

15.

Competitors of Ashok Leyland

49

16.

Competitors of Cummins

50

17.

Competitors of Remaining Brands

51

18.

Brand Power of Different Brands

52

19.

Brand USPs

55
103

20.

Selling Strategies

56

21.

Future Perceptions

60

22.

Response of Statement 1

65

23.

Response of Statement 2

67

24.

Response of Statement 3

69

25.

Response of Statement 4

70

26.

Response of Statement 5

71

27.

Response of Statement 6

73

28.

Response of Statement 7

75

29.

Response of Statement 8

77

30.

Response of Statement 9

78

31.

Inference of Likert Rating

80

32.

Estimated Sales (15-40 HP)

82

104

INDEX OF FIGURES
Figure No.

Description

Page No.

1.

Dealers Years old they are

23

2.

Smoothened version of dealers years

old they are

3.

23

Cumulative Number of Dealers against

years old they are

24

4.

Smoothened version of previous curve

24

5.

Range of Engines Number of Dealers

26

6.

Range of Engines Sales %

27

7.

Air Cooled, Water Cooled

30

8.

Price Availability of Dealers

33

9.

Smoothened version of
Price Availability of Dealers

33

10.

Price Available Number of Dealers

35

11.

Smoothened version of previous curve

35

12.

Top Dealers of Jaipur

37

13.

Competition given to Kirloskar

44

14.

Competition given to Field Marshal

45

15.

Competition given to Topland

16.

Competition given to Eicher

47

17.

Competition given to Usha

48
105

46

18.

Competition given to Ashok Leyland

49

19.

Competition given to Cummins

50

20.

Competition given to Other Brands

51

21.

Brand Power of different brands

52

22.

Selling Strategies

56

23.

Extent of Infringement

58

24.

Future Perceptions

60

25.

Response of Statement-1

65

26.

Response of Statement-2

67

27.

Response of Statement-3

69

28.

Response of Statement-4

70

29.

Response of Statement-5

71

30.

Response of Statement-6

73

31.

Response of Statement-7

75

Response of Statement-8

77

32.

Response of Statement-9

78

33.

Market Share of different Regions in 15-40HP

Engine Sales

82

106