SUMMER TRAINING PROJECT REPORT

ON
“MARKETING STRATIGIES OF THE COMPANY”

In Escorts Auto Component Ltd. (EACL)

Submitted Towards the Partial Fulfillment of the

Requirement for the Degree of Master of Business
Administration

Session (2007-2009)

Submitted To: - Submitted By:

-Controller of the Examination Dheeraj birara
MDU Rohtak 3RD SEMESTER
Roll No- 314

Institute of Management and

technology, Faridabad
(Approved by AICTE & Affiliated to Mahrishi
Dayanand University, Rohtak)
Near Sai Dham, Tigaon Road, Faridabad-
121002
NBA-AICTE accredited Institute
 PREFACE

Master of Business Administration (MBA) Programme is one

of the most reputed professional course in the field of
management. This course includes both theory and its
application, as its content of curriculum industrial training is
an integral part of MBA. Each student is required to undergo a
practical training in an organization for a period of eight week
after the completion of his or her second semester
examination and before starting of the third semester. The
purpose of this training is to expose the students on the
practical front in almost all functional areas of an
organization. The training gives a unique experience to
aspirants who can visualize things what they have been taught
in classroom.
I was fortunate enough to have the opportunity to
eight week summer training in Rampur Distillery, a unit of
Radico Khaitan Limited, one of the leading liquor company in
the world. As a complementary to training, every trainee has
to prepare and submit a report. It is an attempt to present an
account of practical knowledge and observation gathered
during the summer training.
 CONTENTS

TOPICS PAGE NO.

1. SYNOPSIS 1

2. INTRODUCTION 3

 ESCORT PROFILE 4

 ESCORT GROUP 7

 COMPANY MISSION 11

 EACL PROFILE 17

3. METHODOLOGY 29

4. FINDINGS 31

 MARKETING 31

 STRATEGY 53

 SURVEY 68

 DEMAND ESTIMATION 70

5. LIMITATIONS 146

6. CONCLUSIONS 148

7. RECOMMENDATIONS 152

8. APPENDICES 156

9. BIBLIOGRAPHY 173
 SYNOPSIS

This project report in on Escort Auto Component Ltd. a solely

owned subsidiary of Escorts Ltd. Escorts Ltd. is one of the

leading business houses of India.

The project covers the in-depth history of Escort Ltd. and its

subsidiary Escort Auto Component Ltd.

The company is manufacturing industrial product (carburettor,

clutch, oil pumps) for two wheelers industry. The carburettor

manufactured by this company is marketed all over India under

the brand name MIKCARB.

The two fields which is covered in this project report is

1. Marketing

2. Human resource management.

The project highlights the various marketing strategies the

company has adopted, in relation to product, price, place and

promotion.

The company had adapted to marketing concepts

- Original Equipment Marketing

- Replacement marketing
In OE marketing company is selling carburettor to the original

equipment manufacturers like Bajaj Auto, Royal Enfield,

Majestic Motors, TVS Suzuki, Kinetic Engineering, LML &

Hero Honda Motors Ltd.

Company has a fresh experience in the replacement market.

Escort Auto is manufacturing carburettors for Hero Honda,

Bajaj & LML in this field. These are directly sold through

dealers all over India.

 INTRODUCTION OF THE COMPANY

OBJECTIVE

The objective of the project report is to have an in-depth

knowledge of

- How industrial marketing is done

- To analyse marketing strategies of the company

- In-depth study of human resource management system

adopted by the company.

- Lastly to recommend the company about what all they can do

in the field of marketing and human resource.

PROBLEM

Company is facing losses for the reason that it has lost its

major OE consumer Yamaha Motor Escort Limited. Company

is also facing problem in the field of replacement market. The

company has just ventured into this market and is facing tough

competition and though finding ways to fight with it.

 ESCORTS PROFILE

Escorts come into being with a vision that was nurtured by Mr.

H.P. Nanda and late Mr. Yudi Nanda. The foundation of Escorts

Ltd. was laid in the formation of Escorts (agent) Ltd. on 17 th

October 1944 and Escorts (Agriculture and machines) Ltd. in

1948. These two were later merged in 1953 to form Escorts

Agent Pvt. Ltd. the company's incorporation in present name

Escorts Ltd. was effected on 10 th January 1960.

Having initially started with a franchise for wasting house

domestic appliance ESCORTS has come along way in

manufacturing and marketing a range of product. It has

pioneered the farm mechanisation India through import and

distribution of agricultural tractors.

With its 19 manufacturing plants spread over 6 location, 2400

employees and a large network of dealers and distributors

ESCORTS today rank amongst the top 20 engineering

organisation in the country.

Till 1995 the company principal activities were trading and

representing several leading overseas for the sale of their

products in India. The company progressively entered in the

field of manufacturing establishing a series of manufacturing

plants.

The ESCORTS Group today headed by Rajan Nanda, rank

among the countries leading multi product industrial

conglomerated having collaborations with several global giants.

It has a strong presence in the core areas of Agri machinery,

Bi-wheeler construction and material handling equipment, auto

and railway ancillaries, telecommunications and finance. A

chronology of business actives is listed below.

1954 : Piston rings and cylinder liners

1960 : Piston
1961 : Assembly of tractors
1962 : Motorcycle and railway couplers
1963 : Automobile shock absorbers
1965 : Agricultural tractor under 'Ford' Brand name
1969 : Agricultural tractor under 'Ford' Brand name
1971 : Industrial and construction Equipment
1979 : Excavator loaders
1981 : 100 C.C. Motorcycles
1985 : Electronic PABX's
1991 : Harvester combines
1992 : V-sate Satellite Communications
1993 : Mobile Communications
1995 : Fork lift trucks
1996 : Disengagement of joint venture collaboration with new
Holland and launch of FARMTRACK tractor.
 ESCORTS GROUP

The Escorts odyssey, which began in 1944, from agency to

manufacturer to diversified industrial conglomerate, is a classic

study in corporate planning and business development.

Today Escorts ranks among the country's leading multi-product

industrial group having several international collaborations,

employing over 20,000 people with a turnover of Rs. 22, 000

million.

Beginning as a small agency house in Lahore in 1944, Escorts

after independence gauged the need for modernising agriculture

and pioneered farm mechanisatio in the country. It set up the

first dealer network of its kind to market tractors it was to

import. Simultaneously the company established a school of

farm mechanisation to educate farmers on use and benefits of

farm mechanisation. Escorts soon became the number one

tractors selling company in India.

Meanwhile, the company branched into manufacturing Pistons

rings in India in collaboration with GOETZEWERKE of

Germany. Since then Escorts has all along been diversifying and

growing steadily.

Currently, various group companies of Escorts manufacture

tractors, harvester combines, motorcycles, construction

equipment, auto and railway ancillaries, and Tele and satellite

communication equipment.

In the last five decades, Escorts growth has been fuelled by the

best available technology the company has acquired from

several global giants. Among them are Goetzawerke, Mahle and

faun from Germany, Yamaha Motor Co. and Kayaba from Japan,

JCB Amford Excavators Ltd. from the U.K., Hughes Network

System from the U.S.A. and Daewoo from Korea.

Organisations restructuring initiated by the company recently,

aims to consolidating competitive strength in the six core areas:

Farm machinery, Bi-wheelers, construction and material

handling equipment, engineering and auto ancillary products,

telecommunication and financial services. The resultant

transformation would enhance the company's volume in the

Indian as well as over seas markets. The group envisages to

cross the Rs. 75,000 million by 2000 AD

During the course of its growth Escorts has also remained a

responsible corporate citizen, ever conscious of its commitment

towards the welfare of society in general and the community and

environment in which it has adopted over 60 villages, Escorts

Hospitals and Research Centre at Faridabad and Escorts Heart

Institute and Research Centre and crowning examples of the

company's belief that the welfare of business is inter wined with

the welfare of society.

 ESCORTS BUSINESS REVIEW

AGRI MACHINARY AUTO COMPONENT

AUTOMOBILE
Tractors Piston, Piston Pin &

Escorts Farmatrac Piston rings Cylinder

Harvester Combines liners

Aluminium Cylinder

Blocks.

Power metal component

Shock absorbers, Front

Forks

And stouts,

Carburetors,

magnetos, clutches
BI-WHEELERS RAILWAYS

MOTORCYLCE
Yamaha – RX 100 Air brakes

Yamaha RX-G Coupes

Yamaha RX-Z Synthetic brake blocks

Rajdoot Electro pneumatic brakes

Mopeds Shock absorbers

CONSTUCTION EQUIPMENT TELECOM
Pin N carry cranes Cellular Telephone

All terrain pin N carry cranes services

360 angle slew cranes VAST service

Agriculture Boom cranes EPABX service

Front end loaders

Fork lifts, Aerial

Platforms, excavators

Vibratory Rollers

Backhoe loader
FINANCIAL SERVICES
Car finance

Commercial Vehicle France

Securities Trading

Personal Investment

Advertising

Consumer Finance

Equipment Leasing
 COMPANY’S MISSION

We strive to be strongest and most respected engineering

company in the country. We will achieve this by dearly

positioning our self in a competitive environment enhancing its

brand equity international quality products, market leadership,

enlarged customer base, better cost control and pricing

opportunities. We feel responsible to our employees and we

must recognize their dignity and recognize their merit. Each one

of us must uphold the core value of professionalism,

commitment and integrity in keeping with the highest tradition

of the company.

As responsible corporate citizens, we must not only encourage

civic improvement, better health and education but also protect

our environment and natural resources.

Finally we are responsible to our shareholder and for this

business must make a sound profits and thus to be investor

attractive.

We must experience with new ideas, new facilities and new

products. When we operate on these principles, the shareholder

should realise a fair return.

 ESCORTS STRATEGIC ALLAINCES

GERMANY

GOETZE AG PISTON RINGS&CYLINDER

LINERS
MAHLE Gmbh
PISTONS
CLASS OHG
HARVESTER COMBINES
FAUN Gmbir
HYDRAULIC CRANES
KNORR BREMSE Gmbh
RAILWAY BRAKE SYSTEMS
AUGUST BILSTEIN Gmbh
GASSPRESSUER SHOCK
HERION-WERKS Gmbh
ABSORBERS

HYDRAULIC PRODUCTS,
SWITCHES AND
AUTOMOBILE VALVES

JAPAN

YAMAHA MOTER CORP. MOTORCYCLES

KYESBA INDUSTRY TELESCOPIC FRONT FORKS

CO.LTD MC.

MIKUNI SHOKO CORP.

UK

JC BAMFORD AGRICULTURAL TRACTORS

EXCAVATORS LTD

FRANCE/SWEDEN

J.S. TELECOM GROUP ELECTRONIC PABX

BOSCH DYNAPAC HEAVY
ROAD CONSTRUCTION
EQUIPMENT AB
EQUIPMENT

USA

HUGHES NETWORK VAST SATELLITE

SYSTEMS COMMUNICATION
SYSTEMS

SOUTH KOREA

LGI-LUCKY GOLDSTAR STAREX-VSE, DIGITAL,

GROUP NON BLOCKING EXCHANG
SYSTEM
 MARKET SHARE OF ESCORTS GROUP

Products Market Share (%)

Agri Machinery 19.07
BI-Wheeler 28.3
Excavators Loader 86.00
Pick ‘N’ Carry Cranes 70.00
Loaders 85.00
Forklift 9.70
Piston 45.00
Rings 45.00
Shock absorber 22.00
Heavy duty shock absorber 85.00
Carburettor 15.00
Center buffer couplers 100.00
Vacuum controls valves 95.00
Electro pneumatic brakes 72.00
Compressed air brakes 38.00

COMPANY PROFILE

Escorts Employees Ancillaries Ltd. (EEAL), incorporated on

25 th August 1971, enunciated a unique concept of employee's

participation in the ownership of the company. Initially the

business of the company was restricted to trading which was

carried out from Delhi and Faridabad production of carburetor

from January 1978. Manufacturing activities of the company

started with the commencement of commercial in technical

collaboration with M/S MIKUNI of Japan.Company analyse

changed its named to Escorts Auto Component Ltd. (EACL)

in August last year.

Today with a Turnover of Rs. 275 million and strength of

394 people, EEAL is one of the most modern, high precision

auto ancillary plants in the country manufacturing Carburetors,

spokes nipples, clutch assemblies and pressure die casting

components for the Bi-wheeler industry. We are popularly

recognized as “MIKCARB” (our brand) in the auto mobile line,

our carburetor are being manufactured to suit Bi-wheelers

ranging frame 50- cc to 500 cc and are original equipment with

the most of the motorcycle/moped manufacturers in India,

besides marketing its product through a wide dealer network

spanning the entire country.

In addition To bring OE supplies of carburetors to major two

wheeler manufacture e.g. Escorts, Bajaj, TVS Suzuki,

Kinetic Engg, Enfield India, Hero Motors, EACL Markets its

products through a wide dealer networks, spanning the entire

country. The welfare shop (Owned by EACL) is also the model

dealership for Escorts range of motorcycles, Mopeds, Regional

Trading activities of companies e.g. Philips India, Advani

Oerlikon, Cut past Abrasine tools, Grind well Norton, Chiago

pneumatic are also handled by the welfare shop.

Diversification and growth a continuous process at EACL

backed by a strong research and development idea is poised to

meet tomorrow’s challenges today.

 HISTORY
1971 : Incorporated as public limited company technical
collaboration-Carburettor – Mikuni, Japan.

1973 : Trading activity started

1978 : Carburettor production commenced

1980 : Technical collaboration

• M/s Hoshi, Japan-Spokes & Nipples

• M/s Fuji Chemicals, Japan-Clutch

1984 : Pressure die-casting poetrations commenced

1988 : Export of Carburettor to USSR

1993 : Up-gradation cum capacity expansion of Carburettor

production

1996 : Carburettor shed expansion (covered area nearly 2

times). Introduction of down draft Carburettors
planned.
 ESCORTES EMPLOYEES ANCILLARIES LIMITED

AT A GLANCE

Year of commencing : 1978

production
Company promoted by : Escorts Limited
Products Manufactured : Carburettors
Pressure Die-Casting
Clutch Assembly
Spokes and Nipples
Technical know-how : Carburettors-Mikuni, Japan
Clutch Assembly-Fuji
Chemical, Japan, Spokes &
Nipples-Hoshi, Japan
Installed Capacity : Carburettors-6, 00,000 Nos.
Clutch Assembly-10, 00,000
Nos.
Spokes & Nipples-10, 00,000
Nos.
Land & Building : 35000 SQ. M (LAND AREA)
7268 SQ. M. (COVERED
AREA)
No of employees : 394
Gross Block : Rs. 150 millions
Production Volume : Years Nos.
(Caburattors) 1992-1993 215076
1993-1994 279999
1994-1995 357877
1995-1996 445705
1996-1997 478500
 1997-1998 491150
1998-1999 380500
1999-2000 444369
99737 till May
Cumulative Production Approx.
56 Lacks
Turn Over : Rs. 16.34 million
Shareholding Pattern : Shareholders % of Holding
Escorts Group 58.00
Financial Institutions .62
Others (EMPLOYES/
Dealers/Venders) 41.38
Total 100.00
Others Trading Business : YAMAHA MOTOR ESCORTS
LTD.
Motorcycle/Mopeds,
Accessories and spare parts.
ADVANI ORLIKON LTD
Welding sets, Welding
Electrodes and spare sets.
PHILIPS INDIA LTD.
Phillips MAKE Domestic
Luminaries and Industrial
Fittings/Fixtures.
Present Customers : Escorts Yamaha Motor Limited,
Faridabad.
Escorts Yamaha Motor Limited,
Surajpur,
Bajaj Auto Limited,
 Pune/Aurangabad
Hero Motors, Ghaziabad.
Majestic Auto Limited,
Ludhiana
Royal Enfield Motor Limited,
Chennai
TVS-Suzuki Limited, Hosur.
Kinetic Engg. Limited Pune
Scooter India Limited,
Lucknow
MARKET SHARE 2000 : 11%
Distribution Network : Zone No.
(Carburatter & spares parts North (Haryana, of
in DEALERS Replacement Punjab, Delhi, UP,
Market) Rajasthan 18
South
(Tamil Nadu, 20
Karnataka, Kerala,
A.P.)
East 09
West Bengal,
Andaman, & Nicobar,
Bihar and Orissa 15
West
Madhya-Pradesh,
Gujarat, Goa, &
Maharastra
 Total 62

CARBURETTORS UNDER DEVELOPMENT

Customer Product
Bajaj Auto Ltd. K-4S 110 cc Motorcycle –4S

Sunny Export 50 cc Scooter-2S

Bajaj Scooter 150 cc Scooter –2S

M50 cc Setup Thru-2S

Escorts Yamaha Motor Toro 50 cc Moped-2S

Ltd.
TVS Suzuki Ltd. TVS Champ 60 cc Moped 2S
Kinetic Engg. Ltd. 4S-100 cc Motorcycle-4S

Brat-7 cc Step Thru 2S

Royal Enfield Ltd. Bullet 535 cc Motorcycle-4S

Bullet 624 cc Motorcycle-4S

PLANTS HIGHLIGHTS

• Proven MIKUNI design and manufacturing technology

• Quality reliability in built into manufacturing processes.

MANUFACTURING FACILITIES

• Flexible manufacturing machine/dedicated SPM’s

• All critical machines from Japan/Switzerland.

• Ultrasonic clearing facility.

• Precision and functional parts manufacturing in house

• Continuous up gradation of manufacturing facility 25% of

Gross Block invested in last two year.

• State of the Arts Machine for jet making.

• Precision part/assembly manufacturing in dust free and AC

environment.

SUPPORT FACILITIES (INHOUSE)

• Tool Room

• Pressure Die-Castings

• 100% in house Power Generation

• Connected Load – 1066.50 KWB generation capacity- 1100

KVA

ENGINEERING AND R & D BACK UP

• Tool design in house expertise available.

• Tool manufacturing facilities equipped to meet jigs, fixtures

and die-casting tooling requirements.

• Special purpose machines-design and manufacturing facilities

available.

• Qualified and experienced manpower

• Chassis Dynamometer available for in house testing.

QUALITY ASSURANCE

• In–built on line inspection stages/facilities high product

quality and reliability.

• Latest equipment available most imported from Japan, Italy,

West Germany and Switzerland.

Carburettor fuel flow Toning Equipment.

Pilot Circuit Testing Equipment

Main Circuit Testing Equipment

Fuel Level Checking Equipment.

Cosmo Leakage Tester.

3 Co-ordinate Measuring Machine.

Surface finish Tester.

Well-equipment meteorological facilities.

Fully equipped Chemical/Metallurgical Laboratory.

Self-contained distillation plant for Carburettor flow checking

and calibrating fluid.

METERIALS AND VENDOR DEVELOPMENT

Nearly 50 vendor supplying over 300 bought out parts.

Bought out materiel contents 40% by value for carburettors.

Import value of special raw materials and components – 7% of

total bought out.

Technical and financial support to vendors for critical

components

High inventory turnery ratio-10

Single window service to vendors

Healthy vendor – Buyer relations based on term- dealing

concept.

OTHERS SUPPORTS

Escorts R&D facilities available

Training of manpower at all levels

ISO 9001

EEAL has ISO 9001 certificate this certificate has a different

benefits which are as following. This certificate also shows that

the company has its own design and Research for the product.

BENEFITES

1. Quality up gradation through documented system.

2. Increase profitability by reducing quality cost scraps

reworking.

3. Meets customer satisfaction and aspiration.

4. Prevents recurrence of fault and reduce fire fitting.

5. Makes company more competitive.

6. Global recognition.

7. Improve communications through inter linkage.

8. Improves company productivity.

9. Improves house keeping.

10.Focuses on individual development through continuous

training.

11.Ensure achievement of quality policy and its objective.

 Research Methodology

The methodology opted for the collection of data for this

project report is

1. Secondary sources

2. Primary sources

3. market research

Secondary sources: The information collector about the

profile of the company was collected by various sources like

Internet and Delhi Stock Exchange Library.

Prime sources: In this project the information collated,

basically depends upon primary sources. Interview of various

person was conductive from time to time. These interviews was

conducted for marketing department, human resource

department and new projects department.

The information collected was handle with extensive care and

was duly arrange in a set format.

Market Research: A Small market research was conducted in

Faridabad to know the actual performance and brand image of

the Carburettor. A conclusion from the samples is also

mentioned in the project.

 MARKETING DEPARTMENT

MARKETING CHIEF

MANAGER SR. MANAGER MANAGER

MARKETING (O.E.) (SERVICE) MARKETING SECRETARY
(REPLACEMENT)

TYPIST CUM OFFICE

ASST.

SUP SUP SUP

NORTH (EAST (SOUTH ZONE) (WEST ZONE)

ZONE)

INPLANT SERVICE TRAVELLING TRAVELLING

MAN SERVICE MAN SERVICE MAN

SUPERVISOR SUPERVISOR (PAYMENT SUPEVISOR (CASTING TRAVELLING

(EXERCISE) & COLLECTION) & PRICING) SERVICE MAN

ASSISTNAT ASSISTNAT (CUSTOMER

(DESPATCH) ACCO.)
SALE DATA IN 1991, 1992,1993,1994 (BY ACMA REPORT)

FOR 1991 1992 1993 1994

Rajdoot 175 cc 90121 75220 56612 45188

Yamaha Rx 100 75251 71718 68071 64120

Bajaj KB 100 12418 16120 34971 40791

Bullet 350 cc 25031 22178 203281 17283

Explorer 9156 12218 4982 16829

Bajaj Z 80 52448 64537 79040 81049

Hero puch 50680 62248 72551 75525

BY FORMULA ESTIMATION OF MIKCARB

CARBURETTOR

FOR 2001 2002 2003 2004

Rajdoot 175 cc 22530 18805 14153 11297

Yamaha Rx 100 18812 17929 17018 16030

Bajaj KB 100 3104 4030 8742 10197

Bullet 350 cc 6257 5544 5082 4320

Explorer 2289 3054 3745 4207

Bajaj Z 80 6556 8043 9880 10131

Hero puch 6335 7781 9069 9441

Total Estimated 65883 65186 67689 65623

demand
GRAPHICAL REPRESENTATION OF EST.DEMAND

68000
67689
67500
67000
66500
66000 65883
65500 65623
65186
65000
64500
64000
63500
2001 2002 2003 2004

67689
68000

67000 65883
65623
66000

65000 63890
64000

63000

62000

61000
2001 2002 2003 2004
 MANUFACTURING

1538 lacs

2.50%
2.50%

95%

Carburettors Die-casting Clutch

23%
36%

41%

Motorcycle Carburettors & components Agencies

 PRODUCTIVITY ANALYSIS

2.5
2.28

2
1.71 1.69
1.49
1.5 1.36 1.32
1.29
1.25 1.18 1.19
1.1 1.09
0.99 1.04
1 0.88

0.49
0.45 0.41 0.41 0.41
0.5

0
95-96 96-97 97-98 98-99 99-00

Agreed Best Average Worst

ESTIMATED DEMAND (BRAND-WISE)

25000

20000

15000

10000

5000

0
RAJDOOT YAMAHA BAJAJ KB BULLET EXPLO. BAJAJ Z- HERO
100 80 PUCH

2001 2002 2003 2004

 OUR VALUED CUSTOMER
Welfair Shop
14%

HERO-8 Model
35%
Bajaj-5 model
14%

Endfield-4 model
6%
Kinetic-2 models
2%
EYML Surajpur-
EYML FBD 1Models
25% 4%

EEAL'S MARKET SHARE (%age)

16.8 16.3
18 16.11
15.5
16
14
11.1 11
12
10
8
6
4
2
0
95-96 96-97 97-98 98-99 99-00 00-01

EEAL'S MARKET SHARE (%age)

 EEAL'S SALES TURNOVER ANALYSIS

1800
1567 1634
1600 1531
1457

1400
1211 1172
1200

1000 867
800

600

400

200

0
93-94 94-95 95-96 96-97 97-98 98-99 99-00

EEAL'S SALES TURNOVER ANALYSIS

 MASTER RECORDS

APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MARCH
PRODUCTION 36660 37112 28475 24600 30395 26700 29350 38000 50000 50500 47000 48150
DESPATCH (NOS) 33348 32005 24950 24925 30395 30408 31419 41293 46082 51098 50525 50067

COLL. EEAL 86.62 157.63 154.01 112.37 107.58 161.99 144.25 108.25 156.70 189.63 158.80 185.14
(LACS) MIL 64.12 218.58 134.34 106.24 92.20 131.90 144.47 134.59 183.63 161.18
WFS 65.61 57.88 60.08 57.11 60.60 46.28 59.91 63.60 66.53 84.11 78.84 101.41
SALES M/CY. 50 24 26 18 13 37 31 74 63 79 112 262
(NOS) CARB (R) 3099 5099 5899 5699 5399 5099 4399 5199 5599 6999 7099 7299
90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 TILL MARCH 00)
TURNOVER
(EEAL +WFS) 12.48 11.49 12.14 15.92 21.42 27.45 27.11 25.16 20.26 27.76 2.31
(CRORES)
WFS 4.12 3.71 3.99 3.49 4.94 8.03 8.35 7.89 6.7 8.79 0.73
MIL 3.42 5.29 5.06 6.20 8.48 10.61 14.41 15.33 12.78
CARBS (P) 275940 210772 212254 2865530 364432 445705 479300 491150 380500 444000 37000
(NOS) 37031
CARBS (D) 263647 219204 215076 288446 357877 443421 486935 483970 386032 444369
(NOS)
CARBS (D) REPL 12890 17540 15911 12982 29736 31436 36904 47674 56716 65969 5498
(NOS) 12890 17540 15911 12982 29736 31436 36904 47674 56716 65969 5498
M/CY SALES 959 625 587 514 497 1108 840 639 443 789 66
 MASTER RECORDS
2000-01 APRIL MAY JUNE JULY AUG. SEPT. OCT. NOV. DEC. JAN. FEB. MARCH
PRODUCTION 47606 52125 54570
DESPATCH 46400 52058 44040
(NOS)
BILLING EEAL 225.73 202.63 179.07
WFS 100.76 100.00 86.33
SALES M/CY. 231.88 153.80 190.08
(NOS) CARB (R) 110.24 110.06 77.03
PAST 90-91 91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-Z01 (TILL
PERFORMANCE JUNE)
TURNOVER
(EEAL + WFS) 12.48 11.49 12.14 15.92 21.42 27.45 27.11 25.16 20.26 27.76 8.94
(CRORES)
WFS 4.12 3.71 3.99 3.49 4.94 8.03 8.35 7.89 6.7 8.79 2.67
MIL 3.42 5.29 5.06 6.20 8.48 10.61 14.41 15.33 12.78
CARBS (P) 275940 21077 21225 2865530 36443 44570 47930 49115 38050 44400 154301
(NOS) 2 4 2 5 0 0 0 0
CARBS (D) 263647 21920 21507 288446 35787 44342 48693 48397 38603 44436 142498
(NOS) 4 6 7 1 5 0 2 9
CARBS (D) REPL 12890 17540 15911 12982 29736 31436 36904 47674 56716 65969 14297
(NOS)
M/CY SALES 959 625 587 514 497 1108 840 639 443 789 459
 Monthly Sales & Purchase of Carburettor & Spare Parts
1999 As
-00 On
Sale
S.No. MODEL Apr. May. Jun. Jul. Aug. Sep. Oct. No Dec Jan. Feb. Mar.
v. .
1 Model 897 1224 1596
2 Rajdoot 826 887 1359
3 Yezdi 41 83 31
4 Vijay super 23 35 130
5 Silver plus 25 143 218
6 Explorer 61 61 124
7 Bajaj Z-60 1325 2296 1562
8 Hero Puch 200 218 344
9 TVS Super Champ (VMX) 25 9 19
10 Scooter (XLS) 57 3 108
11 RX - 100 52 29 12
12 KB - 100/125 7 0 0
13 Bullet -500 3 0 7
14 Sunny Zip 32 42 24
15 Hero Winner 0 6 0
16 Kinetic Pride 5 13 41
17 H.Gizmo 15 7 7
18 Bajaj Chetak 0 0 0
19 K4S 5 43 17
Total 3599 5099 5599 0 0 0 0 0 0 0 0 0
Ave. Value 457.63 440.2 463.84
8
Sales Value of Carburettor & Spare Parts
Apr. May. Jun. Jul. Aug. Sep. Oct. No Dec Jan. Feb. Mar.
v. .
A Carburettor 16.47 22.45 25.97
B Spares 2.10 2.94 3.11
C Float &n Gasket (SPD) 0.53 0.91 0.71

Total 19.10 23.30 29.79 0 0 0 0 0 0 0 0 0

S.No. MODEL Apr. May. Jun. Jul. Aug Sep. Oct. Nov. Dec. Jan. Feb. Mar. Total
.
1 Rajdoot 1140 1001 2540 4681
2 Bullet 0 0 0 4193
3 Yezdi 0 0 0 0
4 Vijay super 500 220 0
5 Silver plus 0 0 0 720
6 Explorer 660 2840 3258 0
7 Bajaj Z-60 0 491 500 6766
8 Hero Puch 0 9 0 991
9 TVS Super 0 0 500 9
Champ (VMX)
10 Scooter (XLS) 50 0 40 500
11 RX - 100 0 0 0 90
12 KB - 100/125 0 25 0 0
13 Bullet -500 0 0 0 25
14 Sunny Zip 0 0 0 0
15 Hero Winner 0 0 50 50
16 Kinetic Pride 0 160 0 160
17 H.Gizmo 0 0 0 0
18 Bajaj Chetak 6 0 144 150
19 K4S 0 200 0 200
Total 2468 5904 10615 0 0 0 0 0 0 0 0 0 18625
 PRODUCTION & DESPATCH STATUS APRIL 2000

MODEL PRODU DESPATCH

CTION
OE SPD WFS TOTA
L
RAJDOOT 11460 9160 1000 1140 11300
RAJDOOT 1K1 0 0 0 0 0
YAMAHA RX-100 2115 1690 0 50 1740
BULLET - 350CC 3780 2506 800 3366
SILVER PLUS
EXPLORER
TVS XLS 100 100 100
TVS VMS 360 450 450
Z- 80 9350 8061 840 8901
SPIRIT 6280 5945 5945
KB - 125
KB - 4S/BOXER
SUNNY ZIP
HERO PUCH 6505 6620 6160
HERO SCOOTER 1320 1302 1302
HERO GIZMO 595 400 400
KEL PRIDE
KET SX 5725 6160 6160
LML TRENDY
YEZDI
VIJAY SUPER
DD CHETAK 6 6 6
HONDA 10 10 10
GIZMO - 4S 100 100

SAMPLE
TOTAL 47606 42504 1000 2396 46400
MKTG/RNS
 PRODUCTION & DESPATCH STATUS MAY 2000

MODEL PRODUCTI DESPATCH

ON OE SPD WFS TOTAL
RAJDOOT 11940 9160 1490 1000 11650
RAJDOOT 1K1
YAMAHA RX-100 770 1530 1530
BULLET - 350CC 3208 2800 820 3620
BULLET 500CC 200 182 25 207
SILVER PLUS 700 500 500
EXPLORER
TVS XLS 100 100 100
TVS VMS 360 450 450
Z- 80 9680 8281 1560 9841 8901
SPIRIT 6350 6706 6706
KB - 125
KB - 4S/BOXER 200 200 200
SUNNY ZIP
HERO PUCH 9000 8290 500 8790
HERO SCOOTER 4217 3825 3825
HERO GIZMO 1550 1887 1887
KEL PRIDE 160 160
KET SX 4170 3142 3142
LML TRENDY
YEZDI
VIJAY SUPER
DD CHETAK 140
HONDA
GIZMO - 4S

SAMPLE
TOTAL 52125 45803 1490 4765 52058
MKTG/RNS
 REVISED BUSINESS PLAN

CUSTOMER PRODUCT BUDGET BUDGE BUDGET

QTY. T QTY. QTY.
2000-01 2001-02 2002-03
EYML Rajdoot 175 70000 63000 56000
(FBD). (OE)
18000 18000 18000
Rajdoot 175c
(SPD)
EYML (S) Yamaha Rx-100 15000 18000 18000
BAL (A'BAD) Bajaj Spirit 58000 64000 70000
Bajaj - 4s 0 0 0
BAL (PUNE) Bajaj Z-80 (OE) 84000 60000 54000
Bajaj Bravo 0 20000 24000
EML (C) Bullet - 350cc- 18000 19000 20000
4s
1000 1000 1000
Bullet - 500cc -
4s 0 0 0

Explorer/S.Plus
MB & S (G) Hero Puch 63cc 66000 54000 50000
Hero Scooter 18000 12000 12000

MAL (L) Hero 24000 21000 19000

Gizmo/Pacer
KEL (PUNE) Kinetic SX 57000 55000 50000
Kinetic Pride 0 0 0
KHML Kinetic Honda 36000 43000 50000
(PUNE)
LML LML Trendy 12000 30000 11000
(KANPUR)
LML Scooter X- 0 6000 12000
Press
KB & S Kirloskar B&S 0 21000 50000
206cc
W/SHOP (F) Rajdoot 175cc 16000 15000 16000
Bullet 350cc 11000 10000 11000
Z-80 (O) 26000 25000 26000
Vijay Super 500 500 500
Yezdi 500 500 500
Hero Puch 5000 5000 5000
100ccHero 0 10000 15000
Honda
0 4000 8000
TVS Champs
30000 40000 50000
Bajaj Chetak
0 0 0
BajajKB-
100/125 4000 4000 4000

Explorer/S. Plus 0 0 0

Yamaha RX-100
Total 570000 659000 700000
 PRICES OF THE VAROIUS MODEL CARBURETTORS

SIL PLS WEF 16.11.96 5.8.98

EXPLR. RS 320.00 335.00

(THRU
WFS)

SIL PLS WEF 4.3.1986 1.9.87 22.10.87 22.12.87 1.8.88 19.10.88 20.1.89 1.07.90 01.10.90 23.3.93 19.8.93 1.10.94

EXPLR RS 120.00 124.00 135.00 130.00 140.00 157.60 167.60 172.00 179.60 211.30 205.00 216.00

WFS 1.1.1995 1.9.95

RS 225.90 250.00

PRIDE WEF 1.7.1990 1.10.90 112.91 1.9.94 1.6.95 1.1.96 28.5.96 8.12.97 1.2.98

RS 175.10 182.00 195.00 207.00 214.50 227.00 232.00 240.00 245.00

KEL-SX WEF 30.11.98 10.9.99

RS 442.00 305.00

LMS WEF 15.7.98 18.2.98

RS. 264.00 257.00

TVS WEF 27.16.91 01.9.91 01.8.94 01.4.95 01.4.96

RS. 182.00 201.00 215.00 222.00 230.00

XMCL WEF 26.2.00

RS. 305.00
CYGNET WEF 30.7.1997 01.8.97 1.17.99 1.10.99 1.1.2000
/SPIRIT
RS 234.00 246.00 241.00 244.57 244.57

KB-100 WEF 30.1.1995 01.1.96

RS 385.00 425.00

HERO WEF 01.6.1988 01.1.89 01.8.89 01.7.90 01.10.90 1.10.91 1.10.92 1.9.93 1.6.94 1.9.94 1.12.94 1.4.96
PUCH
RS 124.95 156.00 165.00 170.00 177.00 190.00 198.50 190.50 192.45 205.00 208.00 222.00

HERO(S) WEF 18.5.1995 1.4.99

RS 455.00 375.00

HERO WEF 1.7.1990 28.4.91 09.6.93 23.7.94 10.9.94 1.12.94 1.1.96 09.1.95 21.11.96 27.8.97 1.1.98
GIZMO
RS 105.00 177.00 198.50 196.00 205.00 208.00 226.00 231.00 232.00 247.00 250.00

BULLET WEF 20.3.1985 09.09.87 31.10.87 02.4.88 26.10.88 1.6.89 17.9.92 1.10.92 17.4.94 1.10.94 1.1.95 1.9.95
350CC
RS 231.00 250.00 240.00 244.00 258.00 273.00 310.00 330.00 317.00 334.00 348.00 383.00

WEF 01.4.1996 01.6.96 01.10.97 1.5.99

RS 393.00 401.00 423.00 430.00

BULLET WEF 28.8.1987 01.08.88 01.10.92 17.4.94 1.10.94 1.1.95 1.9.95 01.4.96 01.6.96 1.10.97
500CC
RS 301.50 313.30 350.00 339.00 357.00 369.00 410.00 413.00 421.40 456.40
 MARKETING

The product manufactured by ESCORT Auto Components

Ltd. is Carburettors, Oil Pumps, Clutches, which is an

Industrial product.

Industrial marketing is very much different from other

consumer products marketing. In Industrial Marketing the

product is consumed by another manufactures so the target is

the other Automobile manufacturer.

Definition- When the marketing efforts are towards an industry

or a whole, rather than individual consumer like you and me is

Industrial Marketing.

For marketing of carburettors EACL practices two types of

marketing concepts: -

1. Original Equipment (OE) Marketing

2. Replacement Marketing
Concept of Original Equipment (OE) marketing (and how it

is done)

Original Equipment marketing is done in a very different

fashion as compared to other marketing practices.

The OE marketing followed by EACL is done in a certain

fashion. A high level team, which consists of Plant head,

Manufacturing department head (automobile engineer)

Marketing head and the Planning head is made.

This high level team firstly does its home work and sets

accordingly its target to approach on the basis of market

Intelligence system. This high level team approaches various

prestigious two wheeler manufactured like Hero Honda Bajaj

etc. The team negotiates with the other company high level

officials about the product they want to manufacture referring to

particular model. There is now, negotiation goes on various

topics like the design, quality, material, accessories, spare parts.

Etc.

After all the above points are finalised, outline of that project is

prepared, this goes to the costing department of the two

companies. They evaluate the cost of the product, quantity they

want. On the basis of this the price is negotiated between the

two and is final format is prepared.

Now the planning is final and a deal between the two is fianlised

mentioning the above key issues. The automobile manufacturer

releases the design of the Carburettor to the company. These

designs are analysed in EACL by highly qualified engineers.

The changes in the design are done if required. EACL then

manufactures a sample Carburettor according to the design

given this sample is dispatch to the automobile company for

test. The performance of the Carburettor is tested and is passed

by the company.

The performance and problem of the product is timely check by

the service department.

Concept of Replacement Market:

It is practically seen that Carburettor of vehicle has certain life

expectancy. Constant wear and tear of Carburettor occurs with

usage of vehicle. Therefore in order the maintain optimum level

of fuel mileage and efficient running conditions of the vehicle,

it become essential to replace worn out Carburettor. For

purchasing new Carburettor the owner of the vehicle go to

authorised workshop of the dealer of vehicle where he by

genuine Carburettor or go to local workshop to get sub

standard/duplicate carburettor. So replacement market is a

market which consists of genuine Carburettor and

substandard/duplicate Carburettor produced by local

manufacturer.
 MARKETING STRATEGY

PRODUCT

Under Replacement Marketing

Company manufacture carburettors of those vehicles, which has

high sales and also has a high population in the market. Higher

the sales/population more the number of users, more the number

of Carburettors, demanded by the user because of wear and tear

of the product.

At the same time company also wants to manufacturer

Carburettor of those vehicle models in which the competitors

are lesser. (For e.g. company manufactures Carburettors for

Enfield motors in which only two competitors are there).

Under OE Marketing

Products are manufactured according to the automobile

manufacturers. They give the design to the carburettor

manufacturer and accordingly product is manufactured.

PRODUCT LINE

Pressures Die Castines:

EACL is geared to deliver a wide rang of Die cast components

to zero draft angle, with the Back up of a precision tool room.

EACL manufactures a side range of components for the Rajdoot

175 cc, Yamaha RX-100 and Yamaha 350 cc vehicles to

catering to it own needs.

Clutch Assemblies:

Made with technical assistance from M/S Fuji of Japan, their

high-powered clutch assemblies are fitted in Rajdoot 175 cc and

Yamaha 350 cc and Yamaha 350-cc range of motorcycles. Major

components for the Yamaha RX-100 are also manufactured at

EACL.

Spokes and Nipples:

With technical know-how from M/S Hoshi of Japan, EACL is

one of the leading manufactures of swaged spokes and nipples.

The Rajdoot 175 cc, Yamaha 350 cc, and the Yamaha RX-100cc

are equipped with spokes and nipples frame EEAL.

Mangnetos:

The latest addition to the EEAL range of products is the high

powered flywheel Magneto, to be Manufactured under technical

collaboration with leading Japanese collaborators.

Carburettors:

'MIKCARB' fine Carburettors are manufactured with technical-

how from M/S Mikuni of Japan. Designed for law commission,

these carburetor ensure high efficiency and better fuel Economy

in addition to festurs such as law attrition, longer life and better

pick up. The present range includes carburetors for the Rajdoot

175 cc, Bullet 350 cc, Yezdi 250-cc Vijay Super Bajaj Z-80,

Kinetic Spark, Hero Puch, Silver plus, Explorer, Yamaha RX-

100 cc.

Product Profile:

There is no such thing as "suction" in engines. Don't suck air

and fuel into the cylinders, infect, Air and fuel flaw into an

engine because the pressure in the cylinders is lower than

atmospheric Pressure. As a result, atmospheric pressure forces

the air/fuel mixture into the engine like a giant Hand pushing on
the corroborator. Our study is concerned here with pressure

differential. It's a Simple case of finding the path of latest

resistance. The carburetor intake stroke (caused by downward

Motion of piston) creates the flow. .

Function Of Carburettor:

Carburettor performance the following three function:

a) The function of Carburettor is to produce combustible air

fuel mixture by breaking fuel into tiny Particles in the form

of vapour a process known as atomisation.

b) It mixture by the fuel with air in a proper ratio and to deliver

into the engine.

c) To control the engine output by regulating the amount. An

ideal mixture burns without leaving any excess air or fuel and

is the key efficient engine performance. The ratio of fuel and

air is called the mixture ratio and is generally expressed by

the weight proportion. The erratically, the amount of air

required for complete combustion of 1 gram of fuel under

normal condition is 15 grams.

Mixture Ratio = 15 grams of air 1 grams of fuel

The ideal air-fuel ratio is 15:1 i.e. 15 grams of air for 1 grams of

fuel. The ratio however, varies from as 1:1 during cold starting

to 8:1 during idling and 14-16: I during cruising. For any

Vehicle where fuel consumption as lowest, which is normally

40-50 kms Per hour.

PRICE

Under Replacement Marketing

The price of the products is defined on the basis of competitors.

Under this concept the price for competitors is offering is

considered. The company always keeps the price slightly lower

than, what competitors are offering. A pre study is done in

which all the costing part of the product is done. Price is also

text on the basis of BEP (Brake Even Point) analysis, company

always wants to keep higher profit margin, but also considers

the profit margin with which they can compansate with . Price

with also fixed up on the basis of decision of volume sales.

Under OE Marketing

Price factor is negotiated between the two companies. There is

no pre define format for asserting the price. The cost /accounts

departments of the both the companies negotiate on the price

factors. The collective bargaining between the two takes place.

They also consider the volume of quantity the company wants.

 PRICE MOVEMENT - MIKCARB CARBURETTORS
RAJDOO WEF 01.4.198 01.4.87 1.10.87 1.1.88 1.5.88 1.8.88 01.6.89 9.4.90 01.7.90 1.10.90 1.1.91 16.9.9
T RS 6 202.99 209.99 215.99 227.54 234.97 242.63 246.48 251.33 256.63 265.10 1
202.00 280.30
WEF 1.6.92 1.11.92 1.4.94 3.10.94 1.1.95 2.4.96 1.7.96 1.2.200
RS 292.00 296.20 286.20 297.95 319.00 329.00 334.00 0
350.00
RAJ(SP.D WEF 31.3.98 1.2.200
) RS 431.00 0
438.00
RX-100 WEF 24.9.91 1.4.93 1.6.95 5.4.96 1.7.96
RS` 336.00 667.00 660.00 670.00 680.00
RX-100 WEF 1.4.98
(SP.D) RS 782.00
M-80 WEF 22.1.98 1.7.88 1.8.88 1.10.88 1.4.89 1.4.90 1.7.90 2.11.91 1.9.94 1.4.95 1.5.96 1.8.97
RS 128.00 135.00 140.00 160.00 165.00 170.00 182.00 195.00 207.00 2.13.00 225.00 240.00
WEF 1.7.99 1.10.99 1.1.200
RS 225.00 226.16 0
228.48
M-80 WEF 24.11.97
(SP.D) RS 256.80
KB-4S WEF 30.1.95 26.5.96
RS 425.00 470.00
S.ZIP WEF 22.4.96 1.8.97
RS 234.00 246.00
Explorer WEF 11.2.96 1.8.97
RS 207.00 240.00
 Price List
MIKCARB CARBURETTOR
WITH EFFECT FROM 15.04.99
S.No. Model Transfer Dealers Nett Ass. BED 16%
Price Value
1 Rajdoot 421.00 575.00 495.69 79.31
2 Bullet 421.00 580.00 500.00 80.00
3 Yezdi 390.00 570.00 491.38 78.62
4 Vijai 390.00 570.00 491.38 78.62
Super
5 Silver 260.00 365.00 314.66 50.34
Plus
6 Explorer 260.00 365.00 314.66 50.34
7 Baja M- 260.00 338.00 291.38 46.62
80
8 Hero 260.00 331.00 285.34 45.66
Puch
9 TVS 260.00 345.00 297.41 47.59
Astra
10 Scooty 260.00 345.00 297.41 47.59
11 RX - 100 755.00 1050.00 905.17 144.83
12 KB - 100 523.00 690.00 594.83 95.17
13 Bullet - 515.00 690.00 594.83 95.17
500
14 Sunny 260.00 345.00 297.41 47.59
Zip
15 H. 415.00 570.00 491.38 78.62
Scooter
16 K. Pride 260.00 345.00 297.41 47.59
17 H. Gizmo 260.00 345.00 297.41 47.59
18 KB-125 523.00 690.00 594.83 95.17
19 KB-4S 563.00 810.00 698.28 111.72
20 Bajaj 210.00 275.00 237.07 37.93
Chetak

We will give a discount of 5% on Dealers Network of Rs. 275.00

 MARKET SEGMENTATION AND
DISTRIBUTION
CHANNEL

EEAL'S marketing division concentrates on following activities:

1. Supply to original equipment manufacturer (OEM)

2. Supply to replacement market.

a) Supply to welfare shop (major dealer).

b) Supply to spare part division.

SUPPLY TO ORIGINAL EQUIPMENT MANUFACTURER

(OEM's)

The automobile industry depend to large extend on the ancillary

industries for the supply of numerous parts and components

needed for assembly of vehicle, therefore EEAL'S major

emphasis is laid on one of its product line consisting of

carburettors manufacturing. The company makes Carburettor for

its own group and other Bi-Wheelers manufacturers as per their

specifications and design requirement. For example Carburettor

is manufactured for Bajaj Auto Ltd. Enfield India Ltd. Majestic

Auto Ltd., EYML, etc.

SUPPLY TO REPLACEMENT MARKET

EEAL also supply Carburetor and no of components and spare

parts for the replacement of worn out Carburetors or parts to

keep vehicle roadworthy.

DISTRIBUTION CHANNEL :

For the distribution and selling of Carburettor and its spare

parts. There is a wide networking of dealers spreaded all over

the country. There are 65 dealers in all over the country.

PROMOTION

Under OE Marketing

Company takes up promotion into ways.

1. Company to company promotion

2. National and International exhibition

Company to company promotion: In the first method

companies higher officials market the product. The higher

officials (including plant head, marketing head and

manufacturing head) approaches the various companies and

demonstrate them their products and what all they can

manufacture according to their requirements. At the same time

these officials convenience them about the quality and price of

the products and assure them for quality of service.

A special Service Cell is there in the company to look after the

product, which is been used, in the automobile company. They

duly check the performance of the product and check if any

problem arises.
National and International exhibitions: company promote

their products in the exhibitions held in India and abroad.

Recently company had participated in and exhibition held in

China named GUANGHZO which was on auto component

products this was held in November last year. Participation in

this exhibition was done to cater international customers.

Company has also recently received an order from a Japanese

automobile company.

Under Replacement Marketing

The product is promoted by the joint effort put in by the

company and their dealers.

By the company

Company has presently taken up a promotion camp in Patiala

(Punjab,India). Where they launched the Bajaj Scooter

carburettor. Patiala was chosen as the region of launch because

of the simple fact that there is the largest population of Bajaj

Scooter. So larger the number of Bajaj Scooter large the number

of repair/ maintenance required. In this camp company

organised the workshop camp for mechanic were the entire

major mechanic invited and the product was demonstrated to

them. A trial test was also given on Bajaj Scooter to show them

the actual performance of the product.

Free sample was given to all the mechanics to get satisfaction in

terms of quality of the product.

As major dealer of the company Welfare Shop in Faridabad is

taking up various promotional camps to promote the product.

Company gives extra benefit to the dealer to markets this

product like. Company was offering dealers a Target based

commission on every sale of 30 Carburettors Company was

giving 2 Carburettor free.

All the years company introduces one are the other promotional

schemes for dealers like discounts pricing These are given on

the basis market conditions (sales).

 MARKET SURVEY

Market survey is very important to decide method to estimate

the demand of 'MIKCARB' Carburettor in the replacement

market. Market survey is very necessary to have practical

approach to get more practical results. For my project I did

market survey with specific questionnaire and personal meetings

with mechanics and supervisors and workshops of authorised

dealer of Bi-wheller manufacturing company to who

'MIKCARB' is supplied.

For market I took size 0.5

 FINDINGS

Findings of markets survey are as follows:

1. The main problems, that are concerned with MIKCARB

Carburettor are overflow, access of air which result is low

average over-race and starting problems. It is seen that

overflow problems is very frequent.

2. Since Carburettor performance is very good and age is very

high so rate of replacement per year is very low.

3. Average rate of MIKCARB Carburettor is 10 years.

4. 50% of vehicle Z-80 and Hero Puch are fitted with

MIKCARB and 50% of fitted with SPACCO. It is generally

observed that MIKCARB is slightly better than SPACCO.

5. It is also important to note that awareness about Carburettor

and its function is very low about 5%.

6. Due to lack of awareness most of the customer 40-50 go to

the local workshop where they get duplicate/substandard.

Carburettor generally at the time of replacement around 25-

30% go to authorized dealer where they get genuine

Carburettor and also good number of people run their vehicle

with worn about Carburettor as long as they can.

 METHODOLOGY OF DEMANDS

ESTIMATION

On the basic of market survey and data of Bi-wheeler sales from

ACMA report (Automobile components manufacturer

association of India) the methodology for demand.

Estimation of MIKCARB Carburettor in replacement market is

explained further. First there are some assumptions which I have

considered.

ASSUMPTIONS:

1. I have considers the age of Carburettor 10 years and after 10

year it is replaced.

2. I have assumed that only 25% owner of the vehicle go to the

authorised dealer where they get original MIKCARB

carburettor at the time of replacement.

3. I have assumed that age of a vehicle is not more than 20 year

so replacement of a carburettor is done at one time only.

ESTIMATION OF DEMAND

To estimate the demand of the "MIKCARB" for the further i.e.

for 2001, 2002, 2003,2004, we will consider the sales data for

the year 1991, 19921993,1994 respectively of the bi-wheeler in

which MIKCARB is used originally because carburettor of these

vehicles will be replaced after 10 years.

Before going any further we will keep in mind following points:

1. 50% vehicle of the Hero Puch and Bajaj Z-80 are fitted with

MIKCARB carburettor and 50% are fitted with SPACCO

carburettor.

2. There are 18 bi-wheelers in which MIKCARB carburettor is

used but we will consider only those whose sales were

considerably good in 1991, 1992, 1993, 1994, and mostly

which are still popular in the market.

Therefore estimation of demand of MIKCARB carburettor we

will consider following models:

a) Rajdoot 175 CC

b) Yamaha RX 100 CC
c) Bajaj KB 100 CC

d) Enfield Bullet 350 CC

e) Explorer 50 CC

f) Bajaj M 80

HENCE THE FORMULA:

Estimation demand of MIKCARB carburettor for 2001 in

replacement market

= 25% OF SALE OF Rajdoot motorcycle 1991

+ 25% of sale of Yamaha RX 100 CC in 1991

+ 25% of sale of KB 100 CC in 1991

+ 25% of sale of Bullet 350 CC in 1991

+ 25% of sale of explorer in 1991

+ 50% of (25% of sale of Bajaj M80 in 1991)

+ 50%of (25% of sale of Hero Puch in 1991)

Similarly we can estimate demand for 2002, 2003, and 2004.

 LIMITATIONS

- I could not get the exact Sales figure, projections and the data

depend upon the conditions prevailing today and last year. It

may change with the effect of various market forces, which are

not consistent.

-The report does not suffer with personnel biases. But despite of

high amount of procurement of data and information their can

be incorrect deduction and recommendations.

-A market research on a large scale has not been possible due to

limitations of resources and constraint of time. A true picture

could have emerged indicating future trends in this sector.

-The profile of Mr. Nikhil Nanda director of this company is not

mentioned.

-Industrial marketing is very different from other marketing

concepts. As far as possible is handled carefully, but some of

the other points may not be covered because there are 101

factors which effects industrial demands.

 CONCLUSION & SUGGESTION

Escort Employees Ancillaries Ltd. (EEAL) was recently in

August last year was renamed as Escort Auto Component Ltd.

(EACL).

EACL is one of those companies, which are operating from lost

3decades. Earlier EACL was raised by Escort Ltd. (EL) for the

season that EL had its business in two-wheelers industry also.

To reduce the cost of the bikes and to cater larger market, this

major auto component “Carburettor” was manufactured

indigenously. Which is manufacture by Escort Auto Component.

Escort Auto Component Ltd. had a major Customer Yamaha

Motors Escort Ltd. (which now totally taken/over by Yamaha).

Today EACL had lost its customer, and with the due fact the

company is facing losses.

Today Company has realized the competition in the market.

They had to market their products to other Auto Manufacturer

other their Escorts Yamaha. apart from being a big supplier to

two –Wheeler Company has ventured into Direct Marketing for

Replacement Market (Replacement Marketing). With this

concept of marketing EACL has made on attempt to cell

carburetors for those vehicle, which have higher population.

Higher the number of population of vehicles higher the much be

will be for were and tear so needed for Carburetor replacement”.

Company’s higher official say/s

EACL has also recorded a highest sales figure since its stepping

into this field, for 80488 (2000-2001) Carburetors against 65959

and 5671.6 for 99-2000 and 98-99 respectively. In replacement

Market Company has a cutthroat competition with other brands

like Spacco and Ukal.

In other words company is showing a good performance in the

field of Replacement Marketing.

EACL, which is manufacturing industrial product Carburettors,

which is for two-wheeler industry. Company had a ever growing

sales figure for 2000-01 478234 carburettors were sold and for

1999-2000 444369 carburetors was sold.

Which shows that they have been aggressively taking up this

field. EACL has always believed in customer satisfaction.

Company has garbed strong customers like Hero Honda,

Enfield, TVS Suzuki and Bajaj in OE Marketing. EACL

manufacturer product up to their satisfaction levels with most

advanced quality to give best performance. Bajaj Auto, which is

one of the most, satisfied one the oldest customer of EACL.

The performance of a two –wheeler depends on its carburetor,

Bajaj Scooters is the leader in market we can say that, indirectly

the carburetor manufactured by EACL which is fitted in Bajaj

Scooters is also showing good performance.

 BIBLIOGRAPHY

Magazines

• Business world

• Fortune

• Escort Company Journals

Newspapers

• Economic Times

Libraries

• CII

Websites

• Www.Indiainfoline.com

• Www.escortsgroup.com.