REPORT ON
A Study on Efficiency of Distribution Channel and
expanding the reach of CEAT Tyres.
PREPARED BY
ABHIJEET NIGAM
PGDM MARKETING
INDIRA INSTITUTE OF MANAGEMENT,PUNE (MH)
(25TH MAY 2016 -25TH JULY 2016)
GUIDED BY
MR. MOHD. ANAS SIDDQUI
REGIONAL MANAGER
LUCKNOW
CEAT LTD.
CERTIFICATE
Place: Lucknow.
Date:
1 ACKNOWLEDGEMENT 4
2 IMPORTANCE OF THE PROJECT 5
3 OBJECTIVES OF THE PROJECT 6
4 METHODLOGY ADOPTED 7
5 TARGET RESPONDENTS 8
6 INDUSTRY PROFILE 9
7 EVOLUTIONARY PHASE OF THE TYRE INDUSTRY IN INDIA 11
8 MAJOR PLAYERS IN THE MARKET 12
9 COMPANY PROFILE 13
10 COMPOSITION OF BOARD 15
11 VISION OF THE COMPANY 16
12 VALUES OF THE COMPANY 16
13 GEOGRAPHICAL PRESENCE 18
14 PRODUCT CATEGORY 19
15 CUSTOMER SEGMENTS 20
16 DISTRIBUTION CHANNEL 22
17 CHANNEL DESIGN 22
18 TYPICAL DISTRIBUTION DESIGN 24
19 MAJOR ACHIEVEMENTS 25
20 SWOT ANALYSIS 26
21 RESEARCH METHODOLOGY 28
22 ANLYSIS & FINDINGS 29
23 CONCLUSIONS 40
24 LIMITATIONS 41
25 ANNEXURE 43
ACKNOWLEDGEMENT
Abhijeet Nigam
Student I.D – PGDM 0002/15
INDIRA INSTITUTE OF MANAGEMENT, PUNE.
IMPORTANCE OF THE PROJECT
The aim of the project was to check whether the current distribution
channel is efficient enough. Further it was aimed to bring the sub-
dealers to follow the distribution channel & buy from the authorized
distributor.
The project was also aimed at expanding the reach of CEAT Tyres in
terms of attracting new dealers & requesting the existing sub dealers to
up the ante in terms of sales.
Apart from it the project was also aimed towards increasing the visibility
of CEAT Tyres by putting up Billboards in front of the shops which are
dealing in various tyres. The main task was to find the suitable location
with a huge floating population where the output could be most in terms
of promotion.
OBJECTIVES OF THE PROJECT
PERIOD SELECTED FOR STUDY – 25TH MAY 2016- 25TH JULY 2016
CEAT LTD.’s customers are the dealers and the end customer of bus &
truck owners.
I had to cover dealers & sub dealers as part of my project & covered 70
odd dealers who dealt in CEAT Tyres. Most of the target respondents I
interview were from Lucknow region.
Key Features -
At present there are 39 companies in the tyre sector in India
with 60 manufacturing plants.
Major players are MRF, JK Tyres, and Apollo Tyres & CEAT,
which account for 63 per cent of the organized tyre market.
The other key players include Modi Rubber, Kesoram
Industries and Goodyear India, with 11 per cent, 7 per cent
and 6 per cent share respectively. Falcon, Tyre Corporation
of India Limited (TCIL), TVS-Srichakra, Metro
Tyres and Balkrishna Tyres are some of the other significant
players in the industry.
The Association acts as the industry’s interface with the media, opinion
leaders, NGOs and other Industry associations around the world so as
to present the perspective of Indian tyre industry on different issues.
Evolutionary phases of the Tyre industry in India
Phase Period Characteristics Policy Regime
No domestic production.
Demand met through imports.
Phase Key players included Dunlop
1920-35 Liberal imports
I (U.K), Firestone & Goodyear
(USA)
MRF
APOLLO TYRES
BRIDGESTONE
CEAT
JK TYRES
GOODYEAR
TVS Srichakra Ltd.
MICHELIN
FALCON
PIRELLI
CONTINENTAL
COMPANY PROFILE
1. OEM
2. Replacement tyres
3. Exports
CEAT LTD.
6 Manufacturing plants
10 outsourcing units for tyres, tubes and flaps
3 dedicated 2-3-wheeler plants controlled by CEAT
Since its inception, CEAT has been governed by its core values. They
shape the culture and define the character of our company. They guide
how they behave and make decisions.
Challenger: CEAT always attempts to try new things and never fears
failure. ‘We question existing ways of working and we are open to
critique and suggestions from the team and others in the organization’.
This is what every CEAT employee believes.
Integrity: CEAT take responsibility for its actions and ensures that the
behavior matches with their words. Being honest and transparent in their
work is their continuous endeavor.
Openness: CEAT values the skills, strengths and views of others and
has a passion for learning and sharing ideas. The employees appreciate
and are responsible with the information the company shares with them.
Core Values:
Apart from a pan India presence CEAT has made its mark in
Bangladesh & Sri Lanka & has a good business in the region.
CEAT marks the highest exports from India in truck, OTR and LCV
categories to over 130 countries. CEAT meets and exceeds the
expectations of its customers: with special sizes, quality that matches
world standards, and a global presence.
They have 3500+ strong dealer networks in India with 33 regional offices
& around 110 CFAs across India.
Apart from it also produces Inner tubes for all kind of vehicles & rubber
flaps.
TYRE TUBE
FLAP
CUSTOMER SEGMENTS
CEAT doesn’t deal directly with customer. It sells its tyres through
distributor, authorized dealers & exclusive stores named as CEAT
Shoppe. It has a strong network boosting of approximately 3000+
dealers &
It enjoys long standing business tie ups with major Original Equipment
Manufacturer including –
2 Wheelers
Honda
Hero
Bajaj
Royal Enfield
Yamaha
Piaggio
Mahindra & Mahindra
Force Motors
Atul Shakti
SIL
Passenger
Maruti
Tata
Mahindra.
Tata
Ashok Leyland
Eicher
SML ISUZU
HML
Mahindra
TRUCK
Bharat Benz
Tata Motors
Ashok Leyland
Eicher
AMW
FARM TYRES
OTR TYRES
BEML
Caterpillar
JCB
Telcon
Godrej
New Holland
Voltas
L&T
DISTRIBUTION CHANNEL
CEAT has one of the largest distribution networks for tyres in India. It
has divided the Indian sub-continent into 33 regions and has set up a
regional office for each region. Carrying & Forwarding agents are
attached to them. Often the larger regions have 2 or 3 or more C&FA to
cover across the region properly. The total number of C&FA’s across the
country is 112.
CHANNEL DESIGN
The CFA’s pull the goods from RDC’s according to demand. These
CFA’s then distribute the goods to the dealers.
• CEAT wins Cause Marketer of the year award at CNBC Awaaz Consumer Awards
2011
• CEAT wins awards for Employer Branding and Best HR Practices for 2010
• CEAT receives Reader's Digest Trusted Brand Gold Award for 2009
• The 2007-08 Raid de Himalayas 2 wheeler Rally was won on CEAT Tyres
• From a 2 wheeler tyre to a Car Tyre to a Giant OTR Tyre, CEAT makes the entire
Range of Tyres.
• CEAT won the Employer Branding Award for "Excellence in Training 2007-08" ( *
Awards by the Asia Pacific HR congress)
• CEAT has adopted a village "Tirad Seth", near Nasik as part of its CSR activities.
• RPG Best TQ\M Team Award for CFT in 2005 and 2006
STRENGTHS
WEAKNESSES
OPPORTUNITIES
PERIOD SELECTED FOR STUDY – 25TH MAY 2016- 25TH JULY 2016
30
25
20
15
Series1
10
0
1 2 3 4 5
30
25
20
Series1
15
Series2
10 Series3
0
1 2 3 4 5
35
30
25
20
Series1
15
10
0
1 2 3 4 5
35
30
25
20
15
10
0
1 2 3 4 5
35
30
25
20
15
10
0
1 2 3 4 5
35
30
25
20
15
10
0
1 2 3 4 5
35
30
25
20
15
10
0
TUBELESS TYRETUBE EQUAL
35
30
25
20
15
10
0
TUBELESS TYRETUBE EQUAL
For the retailers who ordered the tyres from dealers, the time taken
between order placed & delivery being done was less as compared to
the retailers who placed order through the distributor.
Apart from it the dealers were happy with the delivery being done timely.
Average turnaround time (TAT) for claim settlement?
35
30
25
20
15
10
0
TUBELESS TYRETUBE EQUAL
The time taken by the company on part of settling the claim took a lot of
time according to the Dealers & retailers.
Retailers had to settle the issue sometimes from their pocket just to
make sure they didn’t their business.
The claim settlement of other tyre companies is quite smooth & hence
especially in two wheeler tyre market the buyers preferred TVS because
of their smooth counter claim process.
Do you want DSE to be trained for claim
settlement?
35
30
25
20
15
10
0
TUBELESS TYRETUBE EQUAL
Most of the dealer & retailers emphasized on getting the DSE trained for
claim settlement to make sure the process in smooth & done timely.
Getting the DSE trained in terms of handling the claim settlement would
make the process efficient.
The sale of which type of tyre is more?
35
30
25
20
15
10
0
TUBELESS TYRETUBE EQUAL
According to most of the dealers in the city markets, the tubeless tyre
was demanded more in 2 wheeler category, whereas in the upcountry
market the demand of Tyre with tube was more.
According to few dealers & retailers the demand was equal for both
types of tyres.
Awareness of CEAT Brands on part of end
consumers?
25
20
15
10
0
1 2 3 4 5
According to the dealers most of the consumers hardly had any idea
about all brands of the tyres of a particular segment.
Like in 2 wheeler tyre segment there are lot of brands like F85, F86,
Secura Zoom, Sport etc. But the end consumer hardly had any
knowledge about them
CONCLUSIONS
A good healthy long term cordial relation with dealers & retailers
will ensure boost in sales.
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