Mahindra Samriddhi: Achieving Growth through Rural Prosperity
Mahindra and Mahindra recently began converting its Mahindra Tractors dealers into Samriddhi Centres: retail outlets for Mahindra’s agricultural products and services. The Samriddhi initiative is a part of Mahindra Farm equipment division, world’s largest tractor company by sales volume and aims at promoting farm productivity thereby promoting farmer’s prosperity, hence, the name Samriddhi, a Hindi term, meaning prosperity. At a Samriddhi centre, farmers are provided with farming solutions including soil and irrigation water testing facilities, technology interface through the internet, productivity demo farms, agri counseling facilities, finance & insurance products, sale of second hand tractors, micro-irrigation products, seeds & crop care products.
Mahindra has been into the agriculture business for many years, mainly through its well-known Mahindra tractors. The Mahindra tractor has evolved as a value for money, trust worthy brand that enjoys strong relationships with farmers, having owned by generations of the farmer. Mahindra increased its focus on agriculture business through the launch of Mahindra Shubhlabh Services Ltd. in 2000 for supply of ari-inputs, while in 2011, Mahindra acquired EPC Industries, for the supply of microirrigation tools.
MSSL is a provider of high yield seeds; crop care solutions such as insecticides, pesticides, herbicides, nutrients which were distributed through a large network of distributors along with company sales representations. Apart from agri-inputs, MSSL also partnered with farmers through contract farming to procure and supply fresh farm produce, especially fruits, which Mahindra supplies to large domestic customers as well as exports to a number of countries. ......
Expected Learning Outcomes
The case helps in the attaining of the following learning outcomes:
- • Appraise factors required for successful marketing of Agri inputs in rural markets which include tractors, farm mechanisation equipment and other agri-inputs such as crop care solutions, which would need an understanding of the following specifics stemming from the case:
- • Factors affecting farmer purchase decisions: identify means of building relationship with farmers
- • Need of guidance and advisory support services to build farmer awareness , which then aid in the purchase decision of the agri-input products: Understand the role of training and improving farmer productivity which in turn lead to building of trust and long term relationship, hence loyalty towards rural marketer.
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Case Positioning and Setting
The case may be discussed in a general Marketing Strategies course in Semester 2 or in an elective course in Marketing, such as Rural Marketing [both in Semester II or Trimesters V/VI in case trimester system followed]. The case primarily strives for students of Marketing, especially in the course of Rural Marketing to gain insights into how a company can build rural distribution strategy, especially for agri-inputs.
- I. What factors are needed to succeed in the Agri-input business in rural markets in India?
- II. What factors led to Mahindra starting the Samriddhi initiative? [Alternatively: Q. Do you think the decision to convert Mahindra Tractor dealers to Samriddhi centers makes sense-why/why not? Could Mahindra have begun marketing its agri-inputs through another distribution mechanism?
- III. ...................................