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CASE: Vanraj Mini-Tractors: Is Small Beautiful?Group: The Mighty Marketers
Members: Avanita Somani (32058), Avinash Kumar (32059), Himanshu Bhardwaj (32069)
Rohitash Jain (32088), Salman Haider (32089)
ANALYSIS
The given case is about deciding on the market segment for “Vanraj Mini-Tractors” and thus
selecting the most appropriate market segment.The segmentation can be done on the basis of
the land holding, the type of soil (geographical) and by the type of the crop cultivated. The
focus states for Vanraj Mini- Tractors are Uttar Pradesh, Madhya Pradesh, Gujarat and
Maharashtra. Field trials conducted to check its functionality in black and laterite soils have
provided satisfactory results so segmentation on type of soil (geographical) doesn’t seem
necessary. To solve the dilemma of choosing the right segment for Vanraj we have done cost
benefit analysis from the perspective of small farmers having average land holding size of 1.4
hectare. 90% of tractors are bought on credit availed from banks. Due to restriction in credit
from banks to marginal farmers as their land holdings are less than 3 acres, Vanraj may not
be viable for them. Thus marginal farmers are not part of the target segment. As per case to
target small farmers we need to make them switch from use of bullocks or from the use of
rented tractors to Vanraj.
Following table shows the cost benefit analysis of different alternatives for small farmers.
Table1:
