Vanraj mini-tractors: is small beautiful?

This case presents the dilemma of the decision maker in selecting the most appropriate market segment for Vanraj 10 HP mini-tractors — an innovation from a small farmer in Gujarat, India. Four market segments were identified: small and marginal farmers, large farmers, industries, and horticulture farmers. Vanraj was economical and possessed all the features of a big tractor. Mr. Trivedi, the decision maker, believed that the tractor would serve the needs of small and marginal farmers better, but his colleagues wanted him to think further before selecting any particular market segment for targeting. This case is useful for exploring segmentation and targeting decisions in marketing.