29-09-2016, 11:03 AM
Report on sale strategy and Market development plan to improve Leyland Deere Market share in Delhi/NCR region
1456742561-ReportInternshipProject1.pdf (Size: 2.2 MB / Downloads: 4)
EXECUTIVE SUMMARY
The project was started on 27th
of May 2013 after knowing all the relevant information
related to construction equipment manufacturing industry, under the guidance of Mr. Sameer
Wadhwa (AVP Marketing& Sales). The first part of my project involves the study of customer
and dealers in Delhi/NCR region, then identification of their problem and helping them in order
to increase sale. For this I used the method of personal interviews and questionnaires. At the
same time , they were being made aware of various scheme of Leyland Deere for the
quality insurance.
To complete my project i visited customer located in Gurgaon, Faridabad, Sonipat and Gautam
Buddha Nagar regions for better understanding of their grievances and to identify the gaps in
sale process. For this I visited around 30 customers in the area, and spoke to them. I was also
supposed to find out new customers and convince them to buy Backhoe loader of Leyland Deere
by showing them the opportunity of getting attached with a global brand like Leyland Deere and
how its product is superior to other products which are available in the market.
The second part of my internship was the study of consumer attitude towards Leyland Deere in
comparison to competitors like JCB, Escorts etc and to find out the factors affecting the decision
of purchase of Backhoe loader. For this a sample of 30 consumers was taken as it’s a niche
market and customers are less and a factor analysis was carried out to find the decision making
factors. After analysing these factors a proposed marketing development plan was formulated.
INTRODUCTION
Need of studyThe
project was an attempt to know the reasons behind low sale of backhoe loaders of Leyland
Deere in Delhi/NCR regions. Despite of being a renowned brand i.e. Ashok Leyland and John
Deere, the sale picture in Delhi/NCR region is very bleak due to stiff competitors like JCB,
Escorts, and CAT etc. There is a need to revamp the company and position it all over again in the
mind of the customer.
In doing so firstly Brand has to be positioned competitively in the market, creating more
awareness among the potential customers. Secondly a study on customer’s decision making
factors is required in order to understand their priorities which can be worked upon. For this
purpose a research is to undertaken to find out the market scenario.
With the help of the responses given by the consumers and data analysis, the company will be
able to understand its strengths, weakness, opportunities and threats. The survey report submitted
by me will assist the company to take right decisions to increase the turnover and market share.
Objective of the study –
The objectives of the study are the following:-
1. The main objective of this project is to probe the reasons behind small market share
of Leyland Deere and to find out the measures that can be adopted to increase the
sales.
2. To study the latest trends in construction industry.
3. To identify the issues related to backhoe loaders.
4. To get the feedback from current customers of our product.
5. To add up new customers.
6. To study Leyland Deere positioning in the mind of the consumers vis-à-vis
competitors.
7. To find out the factors that affect customer’s decision to purchase Backhoe loaders.
8. Suggesting viable recommendations to be implemented in the area
ORGANISATIONAL BACKGROUND
Founded in 1837, Deere & Company, most commonly known by its name, John Deere, is an
American corporation based in Moline, Illinois, and one of the largest manufacturers of
agricultural machinery in the world. Deere and Company agricultural products, sold under the
John Deere name, include tractors, combine harvesters, cotton harvesters, balers,
planters/seeders, sprayers, and UTVs. The company is also a manufacturer of construction
equipment and forestry equipment, as well as a supplier of diesel engines and drive trains (axles,
transmissions, and gearboxes) used in heavy equipment. Additionally, John Deere manufactures
equipment used in lawn, grounds, and turf care, such as walk-behind lawn mowers, zero-turn
lawn mowers, lawn tractors, and snow throwers. To support the core businesses, John Deere also
provides financial services and other related activities. The company's slogan is "Nothing Runs
Like a Deere" and has a picture of a leaping deer as a logo.
Ashok Leyland is an Indian automobile manufacturing company based in Chennai, India.
Founded in 1948, the company is one of India's leading manufacturers of commercial vehicles,
such as trucks and buses, as well as emergency and military vehicles. Operating six plants,
Ashok Leyland also makes spare parts and engines for industrial and marine applications. It sells
about 60,000 vehicles and about 7,000 engines annually. It is the second largest commercial
vehicle company in India in the medium and heavy commercial vehicle (M&HCV) segment with
a market share of 32%.
Ashok Leyland, the flagship firm of the Hinduja Group and the US-based John Deere announced
their entry into the burgeoning Indian construction equipment business through their 50:50 joint
venture, with the launch of their first product, Leyland Deere 435 Backhoe Loader, priced at Rs
23.59 lakhs (Ex-Showroom)
New BrandThe
new brand, Leyland Deere 435 Backhoe symbolises the coming together of two strong
partners, each bringing to the association their unique individual strengths and competencies.
John Deere brings in their advanced technical knowhow and vast experience in the global
construction equipment space, while Ashok Leyland lends in-depth knowledge of the Indian
market, proven expertise in manufacturing, sourcing and distribution, to this strategic
partnership
Redefining benchmarksThe
first product from this combine, the Leyland Deere 435 Backhoe Loader has been designed
to transform the nature of the construction equipment business in the country as well as redefine
the way construction equipment products are perceived and used. Exceptionally well engineered
and feature-rich, the 435 BHL will deliver superior value to the ever evolving construction
equipment customer by addressing the critical considerations of lower operating cost, higher
productivity and greater uptime. It is rugged in structure, powered by an Ashok Leyland engine
of proven pedigree from the 'H' Series platform and replete with USPs including power shift
transmission, best in class cabin with larger space and higher visibility, higher breakout forces
and greater dig depths. In order to make sure that patrons get higher uptime, Leyland Deere 435
BHL will be supported by innovative customer care package called the CARE programme which
will be delivered through the efficient Leyland Deere channel network developed. The CARE
programme will include an extended warranty of a year after the first year of warranty,
committed restoration time for the equipment and regular and periodic engineer visits to the
customer during warranty period and also an insurance cover of Rs 2 lakhs for the customer's
operator.
PlantThe
435 BHL is being manufactured at Leyland Deere's brand new facility at Gummidipoondi,
near Chennai. This plant incorporates globally benchmarked manufacturing processes like
robotic welding, CNC cutting, state of the art paint shop to ensure the highest standards of
product reliability and durability, supported by international standard quality processes and
systems.
ManagementChairman
–Mr. V. Sumantran
CEO – Mr. P. Ravishankar
AVP Marketing & Sales - Mr. Sameer Wadhwa
Backhoe Loader
A backhoe loader, also called a loader backhoe, digger, or colloquially shortened to backhoe, is a
heavy equipment vehicle that consists of a tractor fitted with a shovel/bucket on the front and a
small backhoe on the back. Due to its (relatively) small size and versatility, backhoe loaders are
very common in urban engineering and small construction projects such as building a small
house, fixing urban roads, etc. This type of machine is also known as a TLB i.e. Tractor-LoaderBackhoe.
Usage
Backhoe loaders are very common and can be used for a wide variety of tasks: construction,
small demolitions, light transportation of building materials, powering building equipment,
digging holes/excavation, landscaping, breaking asphalt, and paving roads. Enhanced articulation
of attachments can be achieved with intermediate attachments such as the tiltrotator. Many
backhoes feature quick coupler (quick-attach) mounting systems and auxiliary hydraulic circuits
for simplified attachment mounting, increasing the machine's utilization on the job site. Some
loader buckets have a retractable bottom or "clamshell", enabling it to empty its load more
quickly and efficiently. Retractable-bottom loader buckets are also often used for grading and
scraping. Their relatively small frame and precise control make backhoe-loaders very useful and
common in urban engineering projects such as construction and repairs in areas too small for
larger equipment. Their versatility and compact size makes them one of the most popular urban
construction vehicles. For larger projects, a tracked excavator is generally used. A backhoe
loader is an interesting invention because it is actually three pieces of construction equipment
combined into one unit. A backhoe loader is:-
A tractor
A loader
A backhoe
Each piece of equipment is suited to a particular sort of work. On a typical construction site, the
backhoe operator usually uses all three components to get the job done.
Working of backhoe Loader
The Tractor
The core structure of a backhoe loader is the tractor. Just like the tractors that farmers use in
their fields, the backhoe tractor is designed to move easily over all kinds of rough terrain. It has a
powerful, turbocharged diesel engine, large, rugged tires and a cab with basic steering controls
(a steering wheel, brakes, etc.). Backhoe cabs are either completely enclosed or have an open
canopy structure to give the operator protection.
The Loader
The loader is attached in the front and the backhoe is attached in the back. These two
components serve very different functions. The loader can do several different things. In many
applications, you use it like a big, powerful dustpan or coffee scoop. You usually don't dig with
it; you mostly use it to pick up and carry large amounts of loose material. It's also used to
smooth things over like a butter knife, or to push dirt like a plow. The operator controls the
loader while driving the tractor.
The Backhoe
The backhoe is the main tool of the backhoe loader. It's used to dig up hard, compact material,
usually earth, or to lift heavy loads, such as a sewer box. It can lift this material and drop it in a
pile to the side of the hole. Basically, the backhoe is a big, extremely powerful version of your
arm or finger. It has three segments:-
The backhoe moves in pretty much the same way as your arm. This design also provides extra
space for the bucket when the operator curls it in with a full load. The backhoe can dig all sorts
of holes, but is especially suited for digging ditches. To use the backhoe, the operator has to park
the tractor and turn the seat around. The tractor component is for moving the other two
components from place to place, and the operator also manoeuvres it when using the loader. The
loader and backhoe components are a natural combination for all sorts of jobs. When you dig up
a lot of dirt to make a ditch or any other sort of hole, you generally need a loader to either move
the dirt out of the area or to fill the dirt back in once you've got the pipes, power lines, etc. in
position. The most common application for a backhoe loader is this basic job digging a trench
with the backhoe and then back-filling it with the loader.
The Stabilizer Legs
The other appendages you'll typically notice on a backhoe loader are the two stabilizer legs just
behind the rear wheels. These legs are crucial to backhoe operation because they take the brunt
of the weight when a backhoe is digging. Without the stabilizer legs, the weight of a heavy load
or the downward force of digging into the ground would strain the wheels and tires, and the
whole tractor would bounce constantly. The stabilizers keep the tractor steady, minimizing the
jostling effect of digging with the backhoe. They also secure the tractor so that it won't slip into
the ditch or hole.
The stabilizer legs have two types of "shoes," so that they can be planted securely on both dirt
and pavement. The grouser shoe side digs into the dirt for a better grip, but would tear up the
pavement if you were to use it on a road. For a good grip on asphalt, the operator simply flips the
rubber-padded shoe into position.