Insights into Brand and Product-Specific Marketing
Two insights into product marketing within the tractor industry are based on investing in new product designs and offering a wide product portfolio. Two insights into brand marketing within the tractor industry are focused on three main brand considerations — reliability, affordability, and safety; and attending local and national shows as the key to branding success
- The threat of rivalry in the tractor market is very severe which is why in 2018 and onward, the companies are expected to be investing heavily in product marketing, specifically based on high cash boosts to R&D and development of new product designs.
- This type of product marketing investment "creates products that address the problems of the farmers and support them by increasing the productivity with minimum inputs and cost efficiency" which then helps companies to create a market space for their products.
- According to analysis of key vendors globally (regardless of size) shows that the future of product marketing globally for the tractor industry is focused on "offering a wide range of product portfolio in all segments to gain a larger global market share and attract a large group of consumers. The vendors are investing in the development of advanced agriculture equipment technology for precision farming and machine automation in the global market. "
- Brand marketing in the tractor industry is based on three main brand considerations: reliability, affordability, and safety. These are specific to business-to-business brand marketing which is typical for the tractor industry.
- In order to successfully drive brand marketing, manufacturers and sellers who are focused on selling a particular brand point out that attending local and national shows is the key to branding success. If the brands do not attend agricultural shows with a stand displaying their go-to products, they are automatically considered to be out of the picture in the market.
In order to successfully meet the research criteria, we first defined the terms product marketing and brand marketing as follows:
- Product marketing is "the process of bringing a product to market and overseeing its overall success. Product marketers are focused on understanding and marketing to customer, and they drive demand and usage of the product, which often includes writing positioning and messaging."
- Brand marketing is "spending on marketing is an investment in building a brand’s value, and in-turn the company’s value. That investment-based strategy makes brand marketing different from other marketing strategies such as direct response marketing."
In the research criteria, the following brands are mentioned as examples of companies we should be focusing on: Kioti, Mahindra, LS Tractor, and Kubota. All four are examples of tractor manufacturers which is why for this research, we focused on looking into insights for tractor companies regarding brand and product marketing.
According to market reports, the tractor market cannot be properly segmented into big and small brands, specifically as some smaller brands such as Mahindra are considered to be major players in the market despite their relative company size. Therefore, an assumption that tactics applied by any company within the segment can be applied to all competitors regardless of size can be drawn. It is based on this assumption that we provide general insights for the product marketing and brand marketing within the tractor segment.