A Study of Sales and Distribution of Ashok Leyland

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND
INDEX
CHAPTER
CONTENTS
PG NO.
CHAPTER 1 INTRODUCTION Objectives Scopes Assumption Limitations CHAPTER 2 COMPANY PROFILE History Organization structure Product and service offer by the company Market share Future development Reorganization and awards CHAPTER 3 LITERATURE AND REVIEW a. b. Primary data Secondary data
CHAPTER 4 RESEARCH METHODOLOGY Data Analysis CHAPTER 5 CONCLUSION SUGGESTION BIBLIOGRAPHY QUESTIONNAIRE
CHAPTER 1 INTRODUCTION
CHAPTER 1 INTRODUCTION
An organizational study refers to the complete understanding of an organization in all dimensions.
Ashok Leyland is a well known automobile manufacturing company in India. Ashok Leyland believe that its historical success and future prospects are directly related to combination of strengths. The referred unit is a core limb of Ashok Leyland, the nations pioneering automobile manufacturer.
The study includes the brief study of the core departments of Ashok Leyland, Pune Branch Office. Different officials working in various departments have provided very important data in this report. Every effort has been made to understand the functions and activities of various departments as well as the Sales and distribution process.
INTRODUCTION TO THE PROJECT This automobile, in fact, was a self-powered, three wheeler, military tractor that made use of steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the steam engines made them very heavy and large, and required ample starting time. Oliver Evans was the first to design a steam engine driven automobile in the U.S.
The automobile industry finally came of age with Henry Ford in 1914 for the bulk production in Products. This lead to the development of the industry and it first begun in the assembly lines of his Products factory. The several methods adopted by Ford, made the new invention ie) Products, popular amongst the rich as well as masses.
According to the history of automobile industry U.S, dominated the automobile markets around the globe with no notable competitors. However, after the end of Second World War in 1945, the automobile industry of other technologically advanced nations such as Japan and certain European nations gained momentum and within a very short period, beginning in the early 1980s, the U.S automobile industry was flooded with foreign automobile companies, especially those of Japan and Germany.
The current trends of the Global automobile industry reveal that in the developed countries the automobile industry are stagnating as a result of the drooping Products markets, whereas the automobile industry in the developing nations, such as India and Brazil, have been consistently registering higher growth rates every passing year for their flourishing automobile markets.
INDIAN AUTOMOBILE INDUSTRY: India is one of the fastest growing automobile industries in the world. After 1960, the automobile industry saw rapid growth and many automotive manufacturers started production.
The automobile industry in India is the seventh largest in the world with and annual production of over 2.6 million units in 2009. In 2009, India emerged as Asias fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By 2050, the country is expected to top the world in Products volumes with approximately 611 million vehicles on the nations roads.
A well developed transport network indicates a well developed economy. For rapid development a well-developed and well-knit transportation system is essential. As Indias transport network is developing at a fast pace, Indian automobile industry is growing too. Also, the automobile industry has strong backward and forward linkages and hence provides employment to a large section of the population. Thus the role of automobile industry cannot be overlooked in the Indian economy. Indian automobile industry includes manufacture of trucks, buses, passenger Products, defence vehicles ,two wheelers etc.., The industry can be broadly divided into the Products manufacturing, two-wheeler manufacturing and heavy vehicle manufacturing units.
The major Products manufacturers are Hindustan Motors, Maruti Udhyog, Fiat India Pvt. Ltd, Ford India Ltd., General Motors Pvt. Ltd., Honda Seal Products India Ltd., Hyundai Motors India Ltd., Skoda India Pvt. Ltd., Toyota Kirloskar Motor Ltd., to name a few.
The two wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle & Scooter India Pvt. Ltd., Hero Honda, Yamaha, Bajaj etc..,
HEAVY VEHICLES MARKET: Heavy vehicles market in India comprises of trucks, machines, ambulances and school buses. The popular heavy vehicle brands in India are Volvo, Eicher, Ashok Leyland, Telco, Ashok Leyland and Swaraj Mazda. Following are the major players in the Indian Heavy Vehicles Market: Ashok Leyland Motors is the largest automobile manufacturing company in India that manufactures a wide range of heavy vehicles adhering to world class standards. It is the market leader in commercial vehicles in all the segments, be it heavy vehicles, medium size vehicles, small vehicles, buses or defence vehicles. The heavy vehicles manufactured by Ashok Leyland Motors have highly developed braking structure, high ground authorization, better direction competence and a muscular body. The advanced engine imparted to these heavy vehicles makes them a class apart from the other heavy vehicles running on the Indian roads and Highways. Ashok Leyland Motors leads this segment with a market share of 61%. Ashok Leyland is an exclusively heavy vehicle manufacturing company situated in Chennai and was initiated in the year 1948. It is one of Indias biggest producers of heavy vehicles such as trucks, buses, military vehicles and also the second biggest commercial vehicle firm in India heavy vehicle division with a market share of around 27%. Ashok Leyland is also renowned for producing auto spare parts and engines for marine and industrial submission. Eicher Motors was initiated in 3rd September, 1960. The first firm to manufacture the first tractor in India. The indigenously manufactured tractor was introduced in the Indian market straight from Eichers Faridabad factory. The history of the firm can be traced back to 1948, when Goodearth Company was established for vending and repairs of imported tractors in the nation. Swaraj Mazda, a tie up between Mazda and Swaraj Enterprise, Swaraj Mazda represents advanced Indian expertise and manufacturing. The firm has Research and Development improvement edge on international scale. The firm manufactures various products such as Bus, Ambulance, Trucks etc.
The modern automobile market in India has been considering key issues in the process of growth: Customer Productse, and not just service Domestic as well as multi-national investments Searing through cut-throat competition Road safety Anti-pollution norms Co-ordination with government to enable advancement Used vehicle trade
The future of Indian automobile market is bright as it looks forward to manufacturing and implementing new innovations such as electric Productss as provided by Reva, alternate fuels like CNG and LPG and probably customized internet automobile orders.
OBJECTIVE OF THE STUDY To familiarize with business organization. Getting practical experience regarding the organizational function. To understand the functions of HR, Finance, Production and Marketing departments. To understand the culture in the organization and its effect on employees. To get industrial exposure and experience.
SCOPE OF THE STUDY The scope of the study gives idea to develop the Ashok Leyland corporate
connections in the small scale medium enterprises. The study helps in improving existing customers satisfaction level. This helps in retaining the existing customers. The study helps in knowing the competitive advantage of Ashok Leyland corporate connections. This helps the Ashok Leyland (CDMA) telecom industry in focusing the key factors in which they get advantage. The study helps in knowing the existing customers satisfaction towards Ashok Leyland and new customers wants and services, and Ashok Leyland s services for the existing SME, the study also helps in improving service provider, aggressive marketing, more value good services and speed up connectivity.
ASSUMPTION Ashok Leyland is well known automobile manufacturing company, which is explore world wild, it is assume that in the automobile sector Ashok Leyland play good role to manufacturing well equipped heavy vehicles.
In upcoming time it is assuming that Ashok Leyland will launches the fuel efficiency revolution in automobile industries.
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LIMITATION OF THE STUDY The study has certain limitations under which it was Product out. As they were unavoidable, so it was decided to Product out study in spite of all these limitations.
The limitations are as follows:1. The time period was limited and the study has to be Product out within that period. 2. Some of the respondents were not fully co-operative and some of them felt annoyed to give an interview. 3. Ashok Leyland doesnt have any library which can facilitate any research work. 4. The study was restricted to Bangalore city only. 5. Many details of the company were not revealed to the researcher. 6. The management didnt share important marketing information and strategy of the company which made the study incomplete.
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CHAPTER 2 COMPANY PROFILE
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CHAPTER 2 COMPANY PROFILE Ashok Leyland has been a major presence in Indias commercial vehicle industry since 1948, the year it was born. The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India's first Prime Minister persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive manufacturing. They are one of the Indias leading manufacturer of commercial vehicles and special vehicles, engines for industrial purpose, gen sets and marine requirement equipments. For over five decades, Ashok Leyland has been the technology leader in Indias commercial vehicle industry, molding the countrys commercial vehicle profile by introducing technologies and product ideas that have gone on to become industry norms.
Ashok Leyland at the time of its inception was known as Ashok Motors. It was assembling Austin Products at the first plant, at Ennore, near Chennai. In 1950, the company started assembly of Leyland commercial vehicles and soon the local manufacturing under license from British Leyland, participation in the equity capital, in 1954, the company was re christened Ashok Leyland.
In 1987 the overseas holding by LRLIH (LAND ROVER
LEYLAND
INTERNATIONAL HOLDINGS LIMITED) was taken over by a joint venture between the Hinduja group, the Non Resident Indian Transnational group and IVECO Fiat SPA part of the Fiat group and Europes leading truck manufacturing company. Ashok P Hinduja is the chairman of the company. The Hinduja group also associated with Ennore Foundries Limited, Automotive Coaches and Components Limited, and Gulf Ashley Motors Limited.
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The subsidiary holdings are Ashley Holdings Ltd., Ashley Investment Ltd., and Ashok Leyland Project Services. The chief competitors of the company are;
Mahindra Volvo Ashok Leyland Motors
With a commanding strength of the about 12,000 employees the company is looking forwards to enhance the scope of its action. It is aiming at expanding its production operation overseas to make it a more globally accessible company. It is looking to acquire a small to medium sized commercial vehicle manufacturers in China and other developing nations, which have an established product line. An example would be the 2007 acquisition of the Czech based Avias truck business rechristened Avia Ashok Leyland Motors.
Since its inception, Ashok Leyland has been a major presence and these years have been punctuated by a number of technological innovations which went to become industry standard. This tradition of technological innovations and leadership was achieved through years of vigorous in-house research and development.
From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage vehicles, from numerous special application vehicles to diesel engines for industrial, marine and genset applications, Ashok Leyland offers a wide range of products.
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Ashok Leyland has seven manufacturing plants -
Ennore Plant, Chennai. Hosur Plants Unit I, Unit II and Unit II A. Alwar, Rajasthan. Bhandara, Maharashtra. Pantnagar, Uttarakhand
Early products of Ashok Leyland included the Leyland Comet bus chassis sold to many operators including Hyderabad Road Transport, Ahmedabad Municipality, Travancore State Transport, Bombay State Transport and Delhi Road Transport Authority.
In the popular metro cities, four out of five state transport undertaking buses come from Ashok Leyland. Some of them like the Double Decker and Vestibule buses are unique models from Ashok Leyland, tailor made high-density routes. Statistics reveal that the company is Indias largest exporter of medium and heavy duty trucks. It sells close to 83,000 medium and heavy vehicles each year. The company has a near 98.5% market share in the Marine Diesel engine markets in India. At 60 million passengers a day, Ashok Leyland buses Productsry more people than the entire Indian Railway network.
The Five AL Values are: 1. International 2. Speedy 3. Value Creator 4. Innovative 5. Ethical
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HISTORY The origin of Ashok Leyland can be traced to the urge for self-reliance, felt by independent India. Pandit Jawaharlal Nehru, India's first Prime Minister persuaded Mr. Raghunandan Saran, an industrialist, to enter automotive manufacture. In 1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars. The Company's destiny and name changed soon with equity participation by British Leyland and Ashok Leyland commenced manufacture of commercial vehicles in 1955.
Since then Ashok Leyland has been a major presence in India's commercial vehicle industry with atradition of technological leadership, achieved through tie-ups with international technology leaders and through vigorous in-house R&D.
Access to international technology enabled the Company to set a tradition to be first with technology. Be it full air brakes, power steering or rear engine busses, Ashok Leyland pioneered all these concepts. Responding to the operating conditions and practices in the country, the Company made its vehicles strong, over-engineering them with extra metallic muscles. "Designing durable products that make economic sense to the consumer, using appropriate technology", became the design philosophy of the Company, which in turn has moulded consumer attitudes and the brand personality
Ashok Leyland vehicles have built a reputation for reliability and ruggedness. The 5,00,000 vehicles we have put on the roads have considerably eased the additional pressure placed on road transportation in independent India.
In the populous Indian metros, four out of the five State Transport Undertaking (STU) buses come from Ashok Leyland. Some of them like the double-decker and vestibule buses are unique models from Ashok Leyland, tailor-made for high-density routes.
In 1987, the overseas holding by Land Rover Leyland International Holdings Limited 16
(LRLIH) was taken over by a joint venture between the Hinduja Group, the NonResident Indian transnational group and IVECO. (Since July 2006, the Hinduja Group is 100% holder of LRLIH).
The blueprint prepared for the future reflected the global ambitions of the company, captured in four words: Global Standards, Global Markets. This was at a time when liberalisation and globalisation were not yet in the air. Ashok Leyland embarked on a major product and process upgradation to match world-class standards of technology.
In the journey towards global standards of quality, Ashok Leyland reached a major milestone in 1993 when it became the first in India's automobile history to win the ISO 9002 certification. The more comprehensive ISO 9001 certification came in 1994, QS 9000 in 1998 and ISO 14001 certification for all vehicle manufacturing units in 2002. It has also become the first Indian auto company to receive the latest ISO/TS 16949 Corporate Certification (in July 2006) which is specific to the auto industry.
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ORGANIZATION STRUCTURE
ASHOK LEYLAND LTD.

MANAGING DIRECTOR
MAMANGIN
CFO
ED
INTERNAL AUDIT
ED
PRODUCT DEVELOPM -ENT
ED
HR
ED
&
COMPANY SECRETARY
SPECIAL DIRECTOR BUSINESS PLANNING
ED
CONSTRUCTION & ALLIED BUSINESS
SPECIAL DIRECTOR
PLANNING & PORTFOLIO MGMT
WHOLE TIME DIRECTOR & COO
ED
MFG
ED
MKTG
ED
PRODUCT PLANNING
ED
INTERNATIONAL OPERATIONS
ED
SALES & SERVICE
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ORGANIZATION STRUCTURE OF M/s. ASHOK LEYLAND LTD.
(AUTHORITY FLOW) MANAGING DIRECTOR
WHOLE TIME DIRECTOR
EXECUTIVE DIRECTOR
SPECIAL DIRECTOR
GENERAL MANAGER
DEPUTY GENERAL MANAGER
ASST. GENERAL MANAGER
DIVISIONAL MANAGER
SENIOR MANAGER 19
MANAGER
DEPUTY MANAGER
ASST. MANAGER
SENIOR OFFICER
OFFICER
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PRODUCT AND SERVICE OFFER BY THE COMPANY
PRODUCT PROFILE (Not Exhaustive): Ashok Leyland offers a comprehensive product range with trucks from 7.5 tons GVW to 49 tons GVW(Gross Vehicle Weight). From 19 to 80 seaters in passenger transport, a host of special application vehicles and diesel engines for industrial gensets and marine application. Product profile can be broadly split into five categories viz. Buses, Trucks, defence vehicles, special Vehicles and Engines.
BUSES LYNX BS-II Cheetah (Front engine) Airport Tarmac Coach Cruiser Stag BS-II Viking BS-II Viking BS-III Vestibule Bus Viking CNG BS-III Double Decker 12 M Bus-BS II Viking AL Panther (Rear engine) Falcon (Front engine)
TRUCKS 4x2 Haulage models 4x2 and Multi-axle Tipper Multi Axle vehicles Ecomet Tractor
DEFENCE VEHICLES Short Chassis Bus Topchi field Artillery tractor Stallion 6x6 Field artillery tractor Long Chassis Bus Stallion truck fire fighting Comet 4x4
SPECIAL VEHICLES Hippo tractor Beaver tractor Beaver Haulage Stallion Mk III Tipper Rapid Intervention Vehicle Hippo Haulage Hippo Tipper
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ENGINES Genset application Industrial application Marine application DG sets for exports
VEHICLE SALES:
SALES in Units YEAR 2006-07 2007-08 2008-09 2009-10 DOMESTIC EXPORTS 77069 76022 47619 57947 6025 7285 6812 5979
TOTAL SALES In Units 83094 83307 54431 63926
SALES TURNOVER & PROFIT:
YEAR
SALES TURNOVER Rs.Crore
NET PROFIT Rs.Crore 441.28 469.31 190 423.67
2006-07 2007-08 2008-09 2009-10
7168.17 7729.12 5981.07 7244.71
Ashok Leyland registered a sales turnover of Rs.7729.12 crores during 200708 compared to Rs. 7168.17 crores in 2006-07 showing an improvement of 7.8% After a sluggish start in 2008, the sales turnover improved by 21% touching Rs.7244.71 crores in 2009-10 compared to Rs.5981.07 crores in the 2008-09.
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The net profit rose by 6.4% in 2007-08 to touch Rs.469.31 crores compared to Rs.441.28 crore in 2006-07. Similarly the net profit improved to 123% to touch 423.67 crores in 2009-10 against Rs.190 crores in 2008-09.
PRODUCTION DEPARTMENT OF ASHOK LEYLAND LTD.
Production is an organized process of manufacturing/producing goods and services through the use of input resources of men, materials, money, machine, methods.
PRODUCTION MANAGEMENT STRATEGIES: Long range strategies Effective management of technology. Innovation in product management and process technology. Globalization in industry. Goodwill inside and outside the organization. An aggressive marketing strategy and risk taking ability.
Short range strategies Location and layout. Product selection and technology. Capital selection and investment. Flexible strategy of production. Standardization of design. Economy of size and variety.
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PRODUCTION SYSTEM: Ashok Leyland employs a continuous production system, making use of special purpose machines and produces standardized items in large quantities.
Characteristics Standard products are manufactured. Small work in progress in involved. More maintenance is required. Minimum cost of production per unit Division of labour is made more efficient.
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DEPARTMENTAL STRUCTURE:
EXECUTIVE DIRECTOR - MANUFACTURING
PLANT DIRECTOR
GENERAL MANAGER - MANUFACTURING
DGM -MFG
DGM -CHASSIS
DGM MFG SERVICE
AGM-ENGINES
AGM-CHASSIS
AGMMECHANICAL DIV -MGR DIV -MGR
SENIOR -MGR
SENIOR -MGR
DIV MGR MECHANICAL
DIV MGR ELECTRICAL
DIV MGR MECHATRONICS
SENIOR -MGR EXECUTIVES EXECUTIVES
SENIOR -MGR
SENIOR -MGR
EXECUTIVES ASSOCIATES & DAILY RATED WORKERS ASSOCIATES & DAILY RATED WORKERS ASSOCIATES & DAILY RATED WORKERS
EXECUTIVES
EXECUTIVES
ASSOCIATES & DAILY RATED WORKERS
ASSOCIATES & DAILY RATED WORKERS
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PLANT LAYOUT: Product layout is employed in chassis assembly and engine assembly where in the facilities are arranged in a line as per the process sequence of the component manufactured.
Characteristics Mechanized material handling. Lesser work in progress. Special purpose machines are used.
ENGINE ASSEMBLY: The engine case arrives at the first section and it is fitted with cam shaft and flywheel. The pistons are attached one by one to the crankshaft. Later fuel filters, oil coolers are attached. Belt and gears for the running came is attached in the next section. Finally the engine timing is set and sent for mounting on the body of a truck or a bus.
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FRAME ASSEMBLY: STAGE 1: Mounting of side members and cross members STAGE 2: Mounting of Front Spring-rear, Front Spring-rear, Rear spring-front, Rear spring-middle, Rear spring-rear. STAGE 3: Fitting of Engine mounting brackets and FES mounting brackets STAGE 4: Side members fastening to torque limit, Steering box bracket, Side Members reaming, Front tie channel mounting STAGE 5: Fitment of FES rear brackets, Shock absorber brackets and Torque checking PASSING STAGE: Checking and tilting
STAGES OF CHASSIS ASSEMBLY: Stage 1: Lay down regular Stage 2: Fixing of I & U bolt. Stage 3: Brake chamber. Stage 4: Steering gear. Stage 5: Silencer. Stage 6: Fuel / water separator. Stage 7: Air tank. Stage 8: Fuel tank. Stage 9: Engine mounting. Stage 10: Air/fuel piping. Stage 11: Propeller shaft. Stage 12: ACE link assembly Stage 13: Exhaust piping. Stage 14: Radiator. Stage 15: Tyre mounting. Stage 16: Lubrication. Stage 17: Front end structure (FES) Cab mounting. Stage 18: Bumper. Stage 19: Steering. 27
Now the cockpit of the truck is mounted on the body of the truck correctly and then it is sent for a drive or to the storage area. For every 13 minutes a truck rolls out from the factory and 135 chassis are assembled per day as per agreement.
Both these sections have a conveyor belt on which each process is Productsried on. The belt keeps on moving and the operator has to complete his designated job or else its nothing but an error.
PDI (PRE DELIVERY INSPECTION): Testing of vehicle on real road conditions The following are the various tests done to test the vehicle: 1. Speed test 2. Acceleration test 3. Vibration test 4. Torque tightening 5. Oil level and water level checking 6. Electrical components checking 7. Air leakage test 8. Grease level checking 9. Power steering hose routing and clamping 10. Road test
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PRODUCTION PERFORMANCE:
YEAR
PRODUCTION In Units
2006-07 2007-08 2008-09 2009-10
83558 84006 54049 64673
PLANT ENGINEERING:
Plant engineering is responsible for proper functioning of the plant by Productsrying out maintenance operations such as electrical and electronics equipments maintenance, fork lift charging and its repairing, repairing of pneumatic circuits etc.. It is also responsible for maintenance works Productsried out in the organisation. The following are the various types of maintenance:
Predictive maintenance Preventive maintenance Breakdown maintenance Routine maintenance
1. PREDICTIVE MAINTENANCE: Predictive maintenance is done on assumption by experience before the occurring or by any symptoms of occurring.
2. PREVENTIVE MAINTENANCE: Preventive maintenance is work directed to the prevention of failure of a facility
3. BREAKDOWN MAINTENANCE:
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Breakdown maintenance is work which is Productsried out after a failure, but for which advanced provision has been made in the form of spares, material, labour and equipment
4. ROUTINE MAINTENANCE: Routine maintenance is done on even time or on routine basis. It includes machine lubrication, replacement of bulbs throughout plant to arrest building deterioration.
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DIVISIONS:
Plant engineering is divided into 4 divisions to Productsry out its functions. The following are divisions of plant engineering:
Electrical Mechanical GWE(General Works Engineering) Civil
PERIOD OF MAINTENANCE: Period of maintenance is done on the basis of VED analysis. It is also known as time based maintenance. Here VED stands for V - Vital E - Essential D Desirable
ANALYSIS V- Vital E- Essential D- Desirable
DURATION 6 months 9 months Once in a year
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MARKET SHARE
INDIAN AUTOMOBILE MARKET: Commercial vehicle maker Ashok Leyland is targeting sales of 90,000 units next financial year - a volume growth of around 38 percent over this fiscal's sales - and hopes to garner 30 per cent of the market.
'We are looking at sales of around 90,000 units next fiscal. We hope to close this fiscal selling around 65,000 units,' the company's chief financial officer K. Sridharan told IANS. 'The sector is expected to grow by 15 per cent and our target market share is 30 per cent,' he added.
AUTO SPECIAL With its 75,000 units per annum Uttarakhand plant slated to go on stream March 5, Ashok Leyland believes it will be able to cater to the northern, eastern and western markets with much ease and at lower costs.
'Next year we will be rolling out around 25,000 units from Uttarakhand plant,' he said.
Nissan in talks with Leyland for small car
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The Rs 5,981-crore company plans to roll out around 1,000 trucks from its Uttarakhand plant this month and will save handsomely from excise duty exemption.
Sridharan also said the company will be raising a debt of around Rs.700 crore over the next two years to fund its capex plans.
'Our total capex - in our own plants and joint ventures - over the next two years is estimated at Rs.2,000 crore. While Rs.700-800 crore will come from debt, the balance will be met from internal accruals,' he added. More India business stories Ashok Leyland plans to invest around Rs.500 crore in its joint ventures and bulk of that will go into the joint venture with Nissan Motor Company of Japan to roll out light trucks. The Chennai-based firm will also be launching about six new trucks on its new U platform.
Some vital statistics regarding the automobile market in India has been mentioned below: India ranks 2nd in the global two-wheeler market India is the 4th biggest commercial vehicle market in the world India ranks 11th in the international passenger Products market India ranks 5th pertaining to the number of bus and truck sold in the world.
Marketing is concerned with the people and the activities involved in the flow of goods and services from the producer to the consumer.
Ashok Leyland has been offering world class products to millions of customers to 40 countries across the world.
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Its main product line include Trucks, Buses, Defence vehicles and special vehicles and engines for Indian and Overseas market.
Ashok Leyland is The market leader in Indian bus market offering CNG, Double decker and Vestibule bus variants. The market leader and pioneer for multi-axle trucks and tractor- trailers. Enjoys market supremacy in diesel engines for Industrial, Gen-set and Marine applications . Largest supplier of logistic vehicles to the Indian Army. Offers Total Maintenance Solutions through maintenance contracts for its products, relieving the customers of all maintenance worries.
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FUTURE DEVELOPMENT VISION Achieving leadership in the medium/heavy duty segments of the domestic commercial vehicle market and a significant presence in the world market through transport solutions that best anticipate customer needs, with the highest value -to-cost ratio.
MISSION -Identifying with the customer. -Being the lowest cost manufacturer. -Global benchmarking our products, processes and people, against the best in the industry.
QUALITY POLICY Ashok Leyland is committed to achieve customer satisfaction by anticipating and delivering superior value to the customer in relation to their own business, through the products and services offered by the company and comply with statutory requirements.
Towards this, the quality policy of Ashok Leyland is to make continual improvements in the processes that constitute the quality management system, to make them more robust and to enhance their effectiveness and efficiency in achieving stated objectives leading to 1. Superior products manufactured as also services offered by the company. 2. Maximum use of employees potential to contribute to quality and environment by progressive up gradation of their knowledge and skills as appropriate to their functions. 3. Seamless involvement from suppliers and dealers in the mission of the company to address customers changing needs and protection of the environment.
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REORGANIZATION AND AWARDS "As a technology leader in the commercial vehicle industry, Ashok Leyland is passionate about excellence in engineering and quality. It further drives our ambition to offer products with the best value for our customers," said Anuj Kathuria, Head of Strategic Sourcing, Ashok Leyland Ltd. "WABCO strongly contributes to our success through their outstanding results across our criteria for top quality."
A jury comprising Ashok Leyland managers from strategic sourcing, product development, engineering and manufacturing named WABCO their gold award recipient for superlative performance in quality results during 2009 and 2010.
"Everyone at WABCO-TVS is proud of the superlative recognition that Ashok Leyland has awarded to our organization, particularly in their assessment of quality systems at our manufacturing and logistics facilities," said P. Kaniappan, Managing Director, WABCO-TVS (India) Ltd. "Winning Ashok Leyland's gold award for quality excellence is another mark of our commitment to continuously achieve breakthrough levels of quality in our products and services."
WABCO Wins Gold Award for Quality Excellence From Ashok Leyland, One of India's Largest Manufacturers of Commercial Vehicles
A global technology leader and tier-one supplier to the commercial vehicle industry, today announced that its WABCO-TVS subsidiary in India has been recognized with a gold award for quality excellence from Ashok Leyland, one of India's largest manufacturers of commercial vehicles. Ashok Leyland offers a world class range of trucks, buses, special application vehicles and engines across 20 countries worldwide. Currently, WABCO is adapting for Ashok Leyland its OptiDrive modular automated manual transmission system, a breakthrough in transmission automation technology and one of the most creatively engineered products in WABCO's portfolio. WABCO's OptiDrive system is expected to be in volume production in early 2011.
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A jury comprising Ashok Leyland managers from strategic sourcing, product development, engineering and manufacturing named WABCO their gold award recipient for superlative performance in quality results during 2009 and 2010. "As a technology leader in the commercial vehicle industry, Ashok Leyland is passionate about excellence in engineering and quality. It further drives our ambition to offer products with the best value for our customers," said Anuj Kathuria, Head of Strategic Sourcing, Ashok Leyland Ltd. "WABCO strongly contributes to our success through their outstanding results across our criteria for top quality." "Everyone at WABCO-TVS is proud of the superlative recognition that Ashok Leyland has awarded to our organization, particularly in their assessment of quality systems at our manufacturing and logistics facilities," said P. Kaniappan, Managing Director, WABCO-TVS (India) Ltd. "Winning Ashok Leyland's gold award for quality excellence is another mark of our commitment to continuously achieve breakthrough levels of quality in our products and services." "Ashok Leyland's gold award powerfully acclaims WABCO's quality excellence as we continue to demonstrate game-changing capabilities in lean manufacturing that offer competitive advantages for our customers in emerging markets," said Leon Liu, WABCO President, Asia. "We are proud of WABCO-TVS for winning top honors in quality at Ashok Leyland as we strive to grow demand for automated manual transmissions worldwide, particularly in emerging markets where adoption of such systems is expected to expand rapidly."
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CHAPTER 3 LITERATURE AND REVIEW
38
CHAPTER 3 LITERATURE AND REVIEW
c. d.
Primary data Secondary data
The methodology used for the study is through the collection of primary and secondary data. Primary Data: Direct observation Live discussion with the managers and the staff members.
The primary or the first hand data was collected with the help of handing out the questionnaires for the survey. The respondents were asked how they feel about the Ashok Leyland services. And there service experience and the satisfaction level and what are the things that need improvement were also discussed in length at the discussions.
Secondary data Annual Reports Business Journals Existing Records Website of the company.
The major source of secondary or supporting data is Internet. The information on Telecom industry and company profile of Ashok Leyland as whole and the brand was collected from the Internet, journals, company brochures, magazines and news paper
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MARKETING PROCESS:
DELIVERING Sales Service Network Planning
UNDERSTANDING Customer /Markets Marketing Initiatives
CUSTOMER
SUPPORTING Parts AMC Used Vehicles Transport Exchange
MARKETING ENVIRONMENT: Legislative changes related to commercial vehicles. Improving efficiency in railway operations. Customers demanding more from manufacturers. Service products becoming important buying decision. Entry of multi-national players. Higher growth rate in LCV segment. Directly competing with railways. Road vs Rail share stabilizing Shift towards Hub and Spoke model
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BUSINESS INTEREST: Medium & Heavy commercial vehicles. Defence Exports Industrial applications Spare parts Service products
MARKETING STRATEGIES AND PLANS OF ASHOK LEYLAND: NEW PRODUCT LAUNCHES The company is expected to launch a slew of new products in the markets which is expected to propel the demand for its products.
INCREASING GLOBAL FOOTPRINT The company is now targeting new strategic markets with increased thrust on the Asian and African countries.
PLANS TO MEET THE GROWING NEEDS OF THE MARKET The company is constantly reviewing their strategies. They are moving into higher value added jobs because it becomes very important to engage workmen fully and also their efficient utilization.
FACTORS AFFECTING GROWTH: Infrastructure development Overall economic growth Restrictions on overloading Better operating economy of new trucks Restrictions on the age of vehicles Replacement demand due to changes in emission norms
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CURRENT PLAYERS IN THE COMMERCIAL VEHICLE INDUSTRY: Ashok Leyland Ashok Leyland Motors Eicher Motors Swaraj Mazda Volvo Tatra Udyog Force-MAN Asia Motor Works Mercedes Benz Scania Hino Motors Daimler -Chrysler
New entrants on the anvil- Mahindra Navistar,URAL
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ASHOK LEYLAND- DISTRIBUTION NETWORK:
PLANT
MARKETING
CUSTOMER GROUP
REGIONAL SALES OFFICE
DEALERSHIP
CUSTOMER
43
ASHOK LEYLAND- MARKETING NETWORK: Regional offices- 10 Areas offices- 18 Regional sales offices-19 Parts warehouse-7 Main dealers- 43 Dealer outlets- 177 Authorized service centres- 145 Service bays- 2352 DISTRIBUTION CHANNEL SALES:
REGION South-1 South-2 South-3 West-1 West-2 Central North-1 North-2 North-3 East
REGIONAL OFFICE Chennai Bangalore Secunderabad Mumbai Ahmedabad Nagpur Delhi Jaipur Chandigarh Kolkata
AREA OFFICE Chennai, Madurai, Eranakulam Bangalore, Hubli Secunderabad Mumbai Ahmedabad Nagpur, Indore Delhi, Lucknow Jaipur Chandigarh Kolkata, Bhubaneswar, Jamshedpur, Guwahati
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SWOT ANALYSIS
STRENGTHS
1. 2. 3. 4. 5.
Good Training System. Good Organizational Climate. High Market Share Skilled Employees Standard Quality Product
WEAKNESSES 1. 2. High price Sales representatives are less
OPPORTUNITIES 1. 2. Demand for heavy vehicle have steeped up all over the globe. Company provides better credit facility to dealers.
THREATS
1. 2. 3. 4.
High competition Promotional programmes of other brands Complicated national market New players entering the market.
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MARKETING STRATEGIES ADVERTISING: The need for advertising was felt by Ashok Leyland in 2006-07 when they had to project the transformation that has occurred within Ashok Leyland, but as yet not communicated to the public. They came up with a product related Ad campaign and a Corporate campaign. Their aim was to let their target audience perceive their brand as International, Innovative and Speedy, which has always been their core brand value. At the All India PR awards 2007 conducted by the Public Relations Society of India (PRSI). Ashok Leyland won the second prize for their corporate campaign. They gave a prelude to the campaign by exhibiting their product range and their field of pioneering.
This was followed by a three ad campaign. Only an Ashok Leyland engineer will be inspired by Raag Madhuvanti to create quieter luxury coaches. only an Ashok Leyland engineer will calculate the rpm of the ball, when a doosra is bowled. only an Ashok Leyland engineer will watch titanic to spot the design flaw in the ship. Also a television commercial was aired in 2007. The commercial was made in two languages- Hindi and Tamil. It was broadcast on mainline news channels for wider coverage. There were translates placed at airports for greater visibility.
ASHOK LEYLAND- THE BRAND: ENGINEERING YOUR TOMMOROWS has been Ashok Leylands Brand promise. The tag line finds expression at two levels: on the hard core strategy level, that is the sum total of the essential values of vehicle technology-safety, comfort, economy and ecology; on the inspirational level, it denotes a warm and Productising relationship with each stake holder in a unique way.
46
Brand values The two most visible- and recognized- components of the brand are the dynamic L logo and the name of Ashok Leyland. The name has historic reasons- and timeless meanings. Ashok meaning Happy is the name of the companys founder Raghunandan Sarans son. The second part of the companys name has come to cue the international aspect while the first part, so unmistakably Indian, has un-declined the custom built relevance of the companys products and operations in the Indian context.
Brand Ashok Leyland is essentially and experiential brand, its values felt in day to day life- more palpably by its immediate customers and end users. The core of the brand has always been innovative, international, speedy, moving with times- and often-even ahead of it. The innards of Ashok Leyland vehicles have always been contemporary. The core is now being matched by contours of the new, modern, future ready range of vehicles.
In 2006, Ashok Leyland felt a need for change in perception of image among its public after its research feedback by its brand study. Though the company has pioneered many product concepts, and technologies, it was perceived to be a slow, elderly and not modern brand. This made it necessary for Ashok Leyland to bring about a shift in perception and reinforce the fact that the company was fundamentally strong, masculine, traditional, sincere, transparent, financially managed and innovative. As per the research, the company was a fairly strong brand with good recall value. It was seen as an experiential brand, where the public related to it thought very high of it but those away from the brand has only a fuzzy image of it.
Thus emerged the new Ashok Leyland with a new face. The tangible shift began with a change in the typeface of the brand name along with a baseline. Also the company came up with a corporate identity manual which was strictly to be followed by all. The content specified brand name usage in various areas. Various advertisements were aired to promote the brand. The launch of a new website opened to doors to the world outside. Also screening of its corporate film helped them gain publicity. 47
CHAPTER 4 STATISTICAL METHODS
48
CHAPTER 4 STATISTICAL METHODS
Q.1 Knowledgeable salesperson (about product)
Fig 4.1
INFERENCE: 77% of the Respondents were strongly agree with knowledgeable salesperson 18% of the Respondents were agreeing at the same time. 5% of the respondent were disagree with this questionnaire
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Q.2 Employees spent enough time with you before sales and during sales
fig. 4.2
INFERENCE:
55% of the respondent were strongly agree and says that employ spend enough time before sales. 36% of respondent were agree with this questionnaire. 5% of respondent were neither agree nor disagree. 4% of respondent were disagree they said that employ not spend enough time during sales or before sales.
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Q.3 Availability of the product in showroom
Fig 4.3 INFERENCE: 50% of the respondent were strongly agree and says that products are available in showroom (Pareena motors ltd.). 36% of respondent were agree with availability of product in showroom (Pareena motors ltd.). 14% of respondent were neither agree nor disagree.
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Q.4 offered a test drive
Fig 4.5 INFERENCE: 41% of the respondents were strongly agreed with test drive offered. 32% of respondent were agree with test drive offered. 18% of respondent were neither agree nor disagree. 9%of respondent said that they do not offer test drive.
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Q.5 All the commitments are fulfilled
Fig 4.4 INFERENCE:
Only 9% of the respondents were strongly agree with fulfilled of commitments. 23% of respondent were agree with fulfilled of commitment. 45% of respondent were neither agree nor disagree. 18%of respondent were disagree. 5% of respondent were strongly disagree
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Q.6 Employees spent enough time with you after sales. (Service)
Fig 4.4 INFERENCE:
32% of the respondent were strongly agree with good service provided by pareena motors. 36% of respondent were agree with good service provided by pareena motors. 27% of respondent were neither agree nor disagree. 5%of respondent are disagree with service provided by pareena motors.
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Ashok Leyland has wide range of models.
An interior accessory of ASHOK LEYLAND Products is attractive.
55
Ashok Leyland Products long last.
Ashok Leylands party are available everywhere.
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CHAPTER 5 CONCLUSION
57
CHAPTER 5 CONCLUSION
The summer internship and the resulted report have been of great help to the researcher, as an aspirant manager, to understand the functioning of a major establishment like Ashok Leyland. The summer internship has also revealed many unknown facts about the working of a manufacturing unit and familiarize about the assembling of commercial vehicles.
1. In this organization there is good employer-employee relationship. 2. It targets 100% of its employees to be involved in its continuous improvement activities by motivating them through various financial and non-financial incentives. 3. There is a well integration of all the functional departments which facilitates the use of software like ERP. 4. To solve work related problems, QC (Quality Circle) and cross functional team are made effective. 5. Ashok Leyland has not got a foothold in the luxury trucks segment in its domestic market. 6. Advertisement is not given much importance. 7. The company is increasing its global foot print by entering Asian and African markets.
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SUGGESTION
The company should concentrate more on the luxury truck segments to keep a strong hold in the market The company should earmark more money for the advertisement and sales promotion of its products. It helps to increase the brand awareness and image. The company should concentrate on markets in the international arena where its competitors are less powerful.
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BIBLIOGRAPHY 1) L.M. Prasad, Human Resource Management, 2nd edition, New Delhi, Sultan -Chand & Sons. Yr.2005. 2) Philip Kotler, Marketing Management, Millennium edition, New Delhi, Prentice Hall of India (P) Ltd., Yr. 2001 3) Ashok Leyland In- House Journal Ashley News 4) www.ashokleyland.com
BOOKS 1) Marketing Management 2) Research Methodology 3) Business Statistics 4) Consumer Behavior Philip Kotler & Kevin Lane Keller C.R. Kothari Gupta & Gupta L.G. Shiffman & L.L. Kanuk
INTERNET www.Ashok Leyland.com www.Ashok Leylandmotors.com http://en.wikipedia.org/wiki/Ashok Leyland_motors http://en.wikipedia.org/wiki/Ashok Leyland_group http://en.wikipedia.org/wiki/Indian_automobile_industry http://www.Productswale.com/research/Productss/Ashok Leyland http://www.Ashok Leylandmotors.com/our_world/press_releases.php?ID=458&action=Pull http://www.Ashok Leylandmotors.com/our_world/press_releases.php?ID=500&action=Pull www.thehindubusinessline.com
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Appendix Questionnaire ANNEXURE
Questionnaire:-
Name Mobile Location Age
Dear respondents, I am a student of ................................... As a part of my curriculum I am conducting a study on Sales and distribution for ASHOK LEYLAND It would be a great help if you please spare some of your time to fill this questionnaire. The responses would be kept strictly confidential & use to data analysis.
Rate the following on a scale of 1-5
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Ashok Leyland Motor`s exclusive showrooms
Name: Age Mobile no. ..
Place .
How do you rate Ashok Leyland`s showrooms (Pareena motors) with respect to the following?
Rate the following on a scale of 1-5 1- Strongly disagree. 2- Disagree. 3- Neither agree nor disagree. 4- Agree 5Strongly agree
62

A Study of Sales and Distribution of Ashok Leyland

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A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

An organizational study refers to the complete understanding of an organization in all dimensions.

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

CHAPTER 2 COMPANY PROFILE

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

In 1987 the overseas holding by LRLIH (LAND ROVER

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

Mahindra Volvo Ashok Leyland Motors

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

Ashok Leyland has seven manufacturing plants -

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

ASHOK LEYLAND LTD.

SPECIAL DIRECTOR BUSINESS PLANNING

WHOLE TIME DIRECTOR & COO

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

ORGANIZATION STRUCTURE OF M/s. ASHOK LEYLAND LTD.

(AUTHORITY FLOW) MANAGING DIRECTOR

WHOLE TIME DIRECTOR

DEPUTY GENERAL MANAGER

ASST. GENERAL MANAGER

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

PRODUCT AND SERVICE OFFER BY THE COMPANY

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

TOTAL SALES In Units 83094 83307 54431 63926

SALES TURNOVER & PROFIT:

SALES TURNOVER Rs.Crore

NET PROFIT Rs.Crore 441.28 469.31 190 423.67

2006-07 2007-08 2008-09 2009-10

7168.17 7729.12 5981.07 7244.71

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

PRODUCTION DEPARTMENT OF ASHOK LEYLAND LTD.

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

EXECUTIVE DIRECTOR - MANUFACTURING

GENERAL MANAGER - MANUFACTURING

DGM MFG SERVICE

AGMMECHANICAL DIV -MGR DIV -MGR

DIV MGR MECHANICAL

DIV MGR ELECTRICAL

DIV MGR MECHATRONICS

SENIOR -MGR EXECUTIVES EXECUTIVES

ASSOCIATES & DAILY RATED WORKERS

ASSOCIATES & DAILY RATED WORKERS

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND

2006-07 2007-08 2008-09 2009-10

83558 84006 54049 64673

Predictive maintenance Preventive maintenance Breakdown maintenance Routine maintenance

A PROJECT REPORT ON SALE AND DISTRIBUTION OF ASHOK LEYLAND