Case Analysis
Essay by RSHUBHAM94 • December 5, 2017 • Term Paper • 519 Words (3 Pages) • 1,233 Views
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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