-4362
"A STUDY OF MAJOR GAME PLAYERS OF INDIAN TYRE MARKET AND THEIR APPLICATIONS "
At
Submitted to
SUBMITTED TO:
KURUKSHETRA UNIVERSITY, KURUKSHETRA FOR THE AWARD DEGREE OF BACHELOR OF COMMERCE WITH VOCATIONAL SUBJECT ADVERTISEMENT AND SALES PROMOTION & SALES MANAGEMENT
SUBMITTED BY:
ACKNOWLEDGEMENT
I owe a never ending debt of gratitude to my adored and worshipful Almighty for his grace and blessings in the completion of this text. My deep gratitude is due to our concerned lecturer Ms. Meenu Gulati for their value able suggestion for my project work which has been benefited me immensely to complete my report work successfully. We also thankful to Dr. Sushma Arya, Principal, of our college for their valuable guidance. Last but not least I will thank to all friends and family.
CONTENTS
Topic INTRODUCTION Introduction To Organization Literature Review Industry Profile Pg.No.
APPROACH TO STUDY
Research Methodology
QUESTIONNAIRE
PREFACE
PREFACE
Sales and Advertisement is a course which combines both theory and its application as its contents of study in the field of management. As part and parcel of this course, every aspirant has to under go an Project Report . The purpose of this report is to expose the student of management sciences real life situations existing in the organization and to provide an insight into the various functions who can visualize thing what they have been taught in classrooms. Actually, it is the life force of management. It is in the practical training that the effectiveness of management itself is realized. I was fortunate enough to get this opportunity of working with reputed tyre industry of our country. This report includes the general information about Marketing strategy, some information about tyre industry as a whole, and some aspect of marketing, acceptance and the dealers, re-traders. Report is based on the study of various aspects of Marketing its functions, and effort undertaken by the Dept. To gain a competitive edge over the competitors in the market.
components likes growth, competitors, and foreign threats. To gain in depth knowledge, it was important to Study one brand in Indian Tyre Market and then have a competitor analysis with other players. For this purpose Tyre market is analyzed as epicenter for gaining application knowledge of tyre market .
SALIENT FEATURE: The Indian Tyre market is expected to grow by 12% this year As automobiles have become more sophisticated, technology has become key to success in this sector.
Truck and bus segment accounted for 60% of the total Tyre market by value. Passenger car radials at most profitable but because of poor road conditions in India; truck radial are yet to catch on. It will take at least 5 years for light trucks and over 10 years for heavy trucks to reach 25-30% radialisation.
THE INDIAN TYRE INDUSTRY Company wise Figures: COMPANY DIVISION OF MARKET SHARE(%)
SECTOR COMMENTS: Ever since the first Indian tyre company, Dunlop Rubber
Company (India) was incorporated in 1926, the tyre industry has Grown rapidly and today it is a Rs. 12000 crore industry. India has 2.61 lakh villages, connected by 6.23 lakh kms of metalled roads
By : Kshama Arora, Roll No.-4362
and 9.81 lakh kms of unmetalled roades.These villages are linked to small towns and cities. There is a daily traffic of over 4.12 lakh trucks, 1.27 lakh buses, 7.23 lakh cars, and thousands of taxis, two wheelers, three-wheelers, Roads.There tractors and animal drawn vehicle on Indian
exists a vast potential for the tyre industry in India. The and industrial
performance of the economy,the transportation needs and the production of vehicles. Hence, this is a very sensitive industry, which has to adapt itself to a highly volatile environment.
Market Profile: While the tyre industry is mainly dominated by the organised sector, the unorganised sector holds way in bicycle tyres. The major
players in the organised tyre segment consist of JK Industries, MRF, Apollo Tyres, CEAT, which account for 63 Percent of the organised tyre market. The other key players Include, Kesorem Industries and Goodyear
India, with 11 percent, 7 percent and 6 percent share respectively. Dunlop, Falcon, Tyre Corporation of India (TCIL), TVS-Srichakra, Metro Tyres and Balkrishna Tyres are some of the other players in the industry. MRF, the largest tyre manufacturer in the country, has strong brand
equity. While it rules supreme in the industry, other players have created niche markets of their own.
OUTLOOK: Globally, the OEM segment constiutes only 30 percent of the tyre market, exports 10 percent and the balance from the
replacement markets. In India, the scenario is quite different. Nearly 85 percent of the total tyre demand in the country is for replacement. This anomaly has placed retreaders in a better position that the tyre
manufacturers. Retreading is a looming over the tyre industry as a colossal threat. Simply put, retreading is replacing the worn-out tread of the old tyre with a new one.Most of the transporters in India retread their tyres twice during its lifetime, while a few fleet owners even retread thrice. In their zealousness to economies costs, they overlook the reality that retreading reduces the quality of the tyre. It is highly popular in the South unlike in the North where the transporters overload their trucks and have to ply their vehicles in a rough terrain an environment in which buying a new tyre is the best option. Though retreading has penetrated percent of the Tyre market, it hasnot made much of a dent in the rapidly growing two-wheelers and passangers car segments.
RESEARCH METHODOLOGY
The methodology is an integral primary part of the project work. Every project has been undertaken in and definite manner, which forms the validity of the report. The project undertaken by me is also based on a definite method, which is usually
found in most of the research projects. The methodology in my project is based on the following manner in a sequential order : (A) Research Design (i) (ii) Scope of Study Area of Study
(iii) Objective of Study (B) Data Collection (i) (ii) Data Collection Methods Data Collection Techniques
purchasing, manufacturing and physical distribution. SCOPE OF THE STUDY: 1. Determination Of Market Potential 2. Determination Of Competitive Information 3. Customer Behaviour Research AREA OF STUDY My Area Of Study Include the following : 1. Garg Motors 2. Vijay Luxmi Motors 3. Metro Motors 4. Kannav Motors 5. Khanna Motors
By : Kshama Arora, Roll No.-4362
(B)
DATA COLLECTION: The collection of data is a core part of every activity relating to
Marketing decisions. The information derived from such data is closely Analyzed, Interpreted and a conclusion has been arrived on which other decisions are totally depends.There are various sources from where data can be collected any theyre also most appropriate methods in the application of which we can collect the data. In the application of sources and methods the reliability and accuracy must be well judged prior to collection. The whole study has been worked out depending on the data availed from.
Data collection Methods There are two sources on which data can be collected via primary source and secondary source. The data, which are prepared from the main proposed and researcher or owner it, is called primary source and the data collected from this source is called primary data. The data which collected from the persons, private bodies, private research agencies etc are called secondary source and the data collected is from both primary and secondary type. The following are the data, which have been collected from both the sources:
I.
Primary data: - In the course of carrying out the project I have collected data from this source. The following data has been collected from this source like the market share of competitors and market share of JK.
II.
Secondary data: - The data in my project has been collected from the secondary source as the data is only available to them and source and
collected from them. The data collected from this source are the past records and it is used to analyses.The data, which have been collected from this source, are mentioned below: Historical data from Internet. Past records from the company Product line of Tyre Companies Data Collection Techniques: The method of data collection is as essential as the source of collection of data. The methods of data collection establish a pattern, the application that provides a well- fledged out data. A most appropriate method will produce data which more accurate, reliable and cheap and also will require less time and efforts in the collection. In the carrying of my project I have used the following methods in collection the data:
I.
Personal Enquiry: The data from the general publichas been collected by the use of the method of personal Enquiry. I to obtain favorable and required data to add in to the part of my project approached the dealers and customers (Transporters) located at different Places of local zone. I do it with the help of questionnaire.
II.
Personal Survey: The information regarding tyre industry being used by many transporters has been collected through personal survey. The application of the above mentioned methods
have been Instructed by the guide. Infant, in some cases it has been beneficial on the part of the project to meet the big persons like head persons of an organization or any company. The most
important part of the project under the data collection has been the collecting the information from the various sectors of local zone.
(C)
SAMPLING DESIGN: Sampling is a most important part of the data collection. It is a tool that tries to matches the
appropriate Selection. There are many methods of segregating the sample probability and non-Probability sampling. The probability
By : Kshama Arora, Roll No.-4362
sampling is the abstraction of the data in to mathematical calculation, which is done by the application of various formulas of probability. The non-probability sampling is the non- mathematical presentation of the sampling. The most important part of non-probability sampling is the samples are selected ambiguously without any concrete methods. There are various types of Non-Probability sampling, which is used by the investigator or researcher according to his convenience. Judgement Sampling: - The judgement sampling is a kind of nonprobability sampling where the researchers select the samples from according to its judgement. The criteria have been fixed previously before taking in to consideration of the samples. The judgment sampling is one of the most important parts carrying out in any project work. Sampling Techniques: In this project study, the method adopted for the sampling purpose is the most common method of sampling: Random Method of Sampling: In this method, we select our sample units by picking them from the population randomly. So when applied to our project, it means that we just walk out in different area of local zone for required no. Of respondents, but minimize the biasing effect, respondents were chosen from different localities.
A. COMPARE APPLICATION AREAS OF TYRE MARKET : 1. HEAVY COMMERCIAL VEHICLE(TRUCKS) 2. CARS 3. LIGHT COMMERCIAL VEHICLE
D. ANALYSE THE CHINESE TYREW MARKET IN THE AREA AND ITS EFFECT ON INDIAN MARKET:
1. Market Share of Different Tyre Companies In Trucks through fitment survey( 6 Wheelers & 10 Wheelers)
Sample Size 6 wheelers found 10 wheelers found 37 vehicles 29 vehicles 10 vehicles
AREAs WHERE SURVEY DONE; 1. Garg Motors 2. Vijay Luxmi Motors 3. Metro Motors 4. Kannav Motors 5. Khanna Motors In this assignment I had to find out the market share of the different tyre companies in the market for the Trucks with the help of Fitment Survey.A format was given to me regarding to write : The Truck No., Tyre company and Brand Name No. Of Company Found No. Of Tyres Found 4 26 18
P O S T IO N S O F T Y R E C O M P AN IE S iN TR U C K SEG M EN T
700 600 500 NO OF TYRES 625 604 563
CEAT B IR L A GOODYEAR M IC H L IN
COMPANY
NO OF TYRES
175 168
: NO 3
% 23.88535 20.96603 20.11677 13.16348 10.45648 7.590234 3.609342 0.212314 100
LEADING 18 BRANDS FOUND SR. NO. COMPANY BRAND NO OF TYRES 1. 2. 3. 4. 5. 6. 7 8 9 MRF APOLLO JK MRF JK APOLLO CEAT JK JK S.L. FIFTY XT-7 JET TRAK S.M.99 JET RIB AMAR LUG XL TRAK KING SUPER TRAK KING 10 11 12 13 14 15 16 17 18. TOTAL GOODYEAR HI-MILER BIRLA CHINA APOLLO APOLLO JK CEAT CEAT JK BT-112 WEST LAKE KZ-XDT HAULUG STAR LUG HCL SUPER FM SUPER JET SPEED 57 56 53 52 49 45 45 45 41 1587 2.17 2.13 2.03 1.98 1.87 1.71 1.71 1.71 1.56 60.48 292 216 134 101 90 90 85 69 67 11.13 8.23 5.11 3.85 3.43 3.43 3.24 2.63 2.53 %
JK 6
APOLLO 4
CEAT 3
MRF 2
BIRLA 1
GOODYEAR 1
CHINA 1
NO OF BRANDS 27 20 18 18 17 14 3 1 118
14 17
31
27
20 18 18
GOODYEAR MICHLIEN
Through
In this assignment I had to find out the market share of the different tyre companies in the market for the Cars with the help of Survey. A format was given to me regarding to write : The Car No., Tyre Company, Brand Name and Car Tyre Size.
TOTAL CARS FOUND TOTAL TYRES FOUND TOTAL COMPANIES FOUND TOTAL BRANDS FOUND TOTAL BIAS TYRE FOUND
: : : : :
L E A D I N G T Y R E C O M P A N I E S F B R ID E S T O N E OUND
700 600 500 400 300 200 100 0
C O M PA N Y
649
JK M RF GOODYEAR CEAT
COMPANY BRIDESTONE JK MRF GOODYEAR CEAT APOLLO BIRLA MODI DUNLOP OTHERS TOTAL
% 40.06 19.2 12.78 8.765 8.395 6.296 1.42 0.617 0.494 1.975 100
8 4.82
140 9.6286107
76 5.22696
98 6.74
14 0.9629
M-800
COMPANY
J.K. BRIDGESTONE MRF GOODYEAR CEAT APOLLO DUNLOP
SANTRO
%
26.54 8.077 22.31 6.154 21.54 12.31 3.077
ZEN
NO. OF TYRE
228 13 8 4 4 3 12
NO OF TYRE
69 21 58 16 56 32 8
COMPANY
BRIDGESTONE MRF APOLLO CEAT GOOYEAR JK OTHERS
%
83.82 4.779 2.941 1.471 1.471 1.103 4.412
COMPANY
JK MRF BRIDGESTONE GOODYEAR CEAT APOLLO OTHERS
NO OF TYRES
76 38 27 27 18 10 12
%
36.54 18.27 12.98 12.98 8.654 4.808 5.769
TOTAL
260
100
TOTAL
272
100
TOTAL
208
100
INDICA
COMPANY
BRIDGESTONE APOLLO JK GOODYEAR MRF BIRLA CEAT
WAGANOR
%
51.09 15.22 9.783 8.696 7.065 5.435 2.717
ESTEEM
%
56.82 28.03 9.091 3.03 3.03
NO OF TYRES
94 28 18 16 13 10 5
COMPANY
BRIDGESTONE JK MRF GOODYEAR BIRLA
NO OF TYRES
75 37 12 4 4
COMPANY
JK BRIDGESTONE GOODYEAR APOLLO CEAT
NO OF TYRES
48 23 10 8 3
%
52.17 25 10.87 8.696 3.261
TOTAL
184
100
TOTAL
132
100
TOTAL
92
100
3. Market Share of Different Tyre Companies In L.C.V. through fitment survey( 4 Wheelers & 6 Wheelers) Sample Size 4 wheelers found 6 wheelers found 20 vehicles 12 vehicles 8 vehicles
AREAs WHERE SURVEY DONE; Local Zone sarrounding in this assignment I had to find out the market share of the different tyre companies in the market for the L.C.V. with the help of Fitment Survey. A format was given to me regarding to write : The Truck No., Tyre company and Brand Name. No. Of Company Found No. Of Tyres Found 8 60
100
50
29
0 COMPANIES
The customers (Transporters) about the Tyre Companies and get some detailed information regarding the load of their vehicle, No. of vehicle they have, Avg. Life of their vehicle, which brand they prefer most, From where they purchase the tyre and on which route they run their Vehicle etc.
6 Wheelers 75 %
Attach 11 %
10 wheelers 10 %
4 Wheelers 3%
18 Wheelers 1%
N O Vehicles o f
11% 1% 10% 3%
4W 6W 10W 18W
75%
ATTAC H
51%
25%
11%
13%
L o a d P e rc a n ta g e
N O R M AL LO AD 13% 11% 51% 25% M ODERATE O VER LO AD S .H .L .
APOLLO
J.K.
MRF
CEAT
CHINA
BIRLA
GOODY EAR
23%
20%
17%
12%
11%
10%
7%
% SHAR E OF COMPANIES
MRF 7% 11% 17% JK CEAT BIRLA 23% 10% 12% 20% APOLLO G.Y. CHINA
Que. 4. What is your monthly consumption of tyres ? 0-15 34% 15-30 22% 30-45 22% 45-60 13% 60 above 9%
9% 13% 34%
22%
0 to 6 19%
6 to 9 44%
9 to 12 28%
12 to 15 9%
A. Should Provide Better Quality B. Increase The No. Of Dealers C. Offers should be provided
DEALERS SURVEY
NO. OF DEALERS MEET : 25
The Dealers about the Tyre Companies provide some detailed information regarding the Dealership, Monthly Selling, Brand Prefrences, ,which company provide better policy and suggestions etc. Que 1. From Which Company You Deal With ?
NO. OF DEALERS 8 7 5 2 2 4
10%
30%
25% 35%
300 ABOVE
Que. 3.According to you what is the market Trend In Truck Tyres. Give the Rating?
1. 2. 3. 4. 5. 6.
Que.4.what factor influences the most in the sale of any brand of Tyres?
30%
Que. 5. According to you what factor will lead to increase the sale of the product?
30%
Others
G. RETREADERS SURVEY :
No. Of Retreaders Found : 24
Retreading is a looming over the tyre industry as a colossal threat. Simply put, retreading is replacing the worn-out tread of the old tyre with a new one. The poularity of retreading stems from the fact that it costs only 20 percent of a new tyre but increases its life by 70 percent to 80 percent. Most of the transporters in India retread their tyres twice during its lifetime, while a few fleet owners Retreading is done by the two ways : (a) Hot Process -Full Caping -Top Caping (b) Cold Process Generally Cold Process is used for Retreading.It is done on the 110* F temprature and generally takes 12 to 14 hours. Bandag (U.S. base) company is leading in This. It has 45 colabration All over the world. even retread thrice.
13% 21%
17%
24% 25%
150-200 200-250
2 11 10 1
40% 60%
YES NO
Que.4. What Do You Think what can be done by the Indian Tyre Companies?
IMPROVE QUALITY 13% 10% 15% 33% OTHERS 29% REDUCE COST GURANTEE FREE GIFTS
20%
15% 65%
Growing
Not Growing
Dealers Survey :
Que. 1. Are You Dealing In Chinese Tyres? YES NO 70% 30%
30%
70%
YES
NO
Que. 2. If Yes, What Is your selling %age share of Chinese Tyre as compared to Indians? 0-10% 10-20% 20-30% 30-40% 4 5 4 2
2 4 4 5
0-10%
10-20%
20-30%
30-40%
80% 2% 18%
Que.4. What do you think what can be done by the Indian Companies?
IMPROVE QUALITY 9% 14% 5% 18% FREE GIFT 25% CREDIT FACILITY SALE PROMOTION ACTIVITIES 29% DECREASE COST GURANTEE
FINDINGS
In the end I find that JK has a good hold in Truck and Car Tyres but It is not the leader in any segment. I found JK at No.2 in truck segment and in Car segment also JK at No. 2. Good thing I found that It is No.1 in Front Axles of Truck Tyres but Bad thing I found that it is very far away in Car Tyres from market leader Bridgestone. The Top brand of JK- JET TRAK (134 Tyres found) is very far from the Market leader of MRF -S.L.FIFTY (292 Tyres found) and same in the Car Tyres. Good Thing I found that it has 6 brands in first fifteen of Truck Tyres but the Bad thing I found that They are very far away from their competitor Brands. Also JK has not any hold in the 2 Wheelers.
SUGGESTIONS
Tackling competition by way of introducing new technology products and reduce operational costs. Make the Marketing Department effcient. Co. may also go into the Retreading Rubber Business Work on understanding Customers ( end- users requirement, in Truck and Bus Tyre segments through market research) Increase Exports of Tyres. Order Booking should be done also through Net by the Dealers. Dealers to be trained for customer orientation. Solving all queries of a Customer/Dealer at a single point and not referring him to different level of hierarchy. Giving first priority to Customers visit or Telephone calls instead of keeping them waiting or not attending the call in time. Claim policy should be organised. Claim to the Dealers as soon as possible. Time -to- Time Dealers meeting or Fleet Owners meeting should be done. A Power Point Comparitive presentation Between JK versus othersmust be shown to the Dealers/Transporters in the Meeting. Road show can be done in local Areas for sale prmotion Paste a slip on tyre Always With You or Dial A Tyre No.23312136 Focus on Tyre fitters Deliver douments in time to customers/dealers. Prompt refund of balance against advance payment.
Locate the new customers but never forget the old one Full automation & computerization should be there at all offices & Branches. Awareness about market conditions, both Domestic & International should be there among the employees, All the employees must knowfully the competition & their roles.
CONCLUSION
Indian tyre industry is 12,000 crore market,facing continous threats from global players and South Asian dumping attacks. 7
company in India constitute nearly 85% of whole Indian tyre market. This consists of brands like J.K., MRF, APOLLO,
CEAT etc. The Tyre market has expanded in noticeable rate during recent years. Tyre Industry has direct linkage with the Automobile industry, thus a rise in sale of Automobile will
automatically give rise to supply of tyres. Appolo is the market leader in tyre industry and its growth rate in relativily high than its compititors. Greater competition, opening up of economy,Foreign Automobiles Giants financial schemes For the spark of entering Indian market and easy have ignited
common people
Indian
BIBLIOGRAPHY
Web Sites: Jktyre.com Apollotyre.com Mrftyre.com Irjournal.com