Study of selected Distribution Channels of Ralco Cycle Tyres and Tubes

INTRODUCTION TO RALSON INDIA LTD

qHistory :-Ralson India Ltd is pioneer of the tyre and tube company based at Ludhiana. qThe company was floated by Shri Sant Prakash Pahwa and Shri Om Prakash Pahwa. qIt is Indias largest company in the field of automobile tyres qProduct Mix:Tyres Tubes Hubs

Sister Concerns

Brands of Ralson

Awards and Certifications

Additional Qualities of Ralson Group

Organization Chart of the Company

SWOT ANALYSIS OF TRAINING UNIT

qSTRENGTHS :- Company has highest production base, it produces 1lakh tyres, q1 .5 lakh tubes, 20000 hubs every day. qRalson tyres have highest sales in the market inspite of highest prices. qCompany has best R&D department recoganized by GOI qWeaknesses:- Lack of Advertisement. qLack of Market Research qOppurtunities:- It has huge untapped demand for Ralco Tyres in the domestic market. qIt has huge oppurtunities in other segment of auto tyres. qThreat :- The labor comes from Bihar, thus company faces acute shortage of labor qIncrease in the prices of Raw material -Rubber

Financial Ratios
CURRENT RATIOS :-- CURRENT ASSETS/CURRENT LIABILITIES

CURRENT RATIO

2007-08

2008-09

1.42:1

1.46:1

LIQUID ASSET RATIO :- LIQUID ASSETS/ CURRENT LIABILITIES

LIQUID 2007-08 ASSET RATIO 0.93/1

2008-09

1.05/1

ABSOLUTE LIQUID ASSET RATIO:- ABSOLUTE LIQUID ASSETS/CURRENT LIABILITIES

ABSOLUTE 2007-08 LIQID ASSET RATIO 0.03:1

2008-09

0.14:1

DEBT EQUITY RATIO :- TOTAL OUTSIDERS FUND/ SHAREHOLDERS FUND

DEBT EQUITY 2007-08 RATIO 1.64:1

2008-09

1.48:1

EPS = NET PROFIT(AFTER TAX)/ NO OF EQUITY SHARES

Year EPS Trend

2004

100

2005

13.59

339.75

2006

4.13

103.25

2007

1.34

33.5

2008

13.28

332

2009

26.34

658.5

Introduction to Distribution Channels Of Ralson

Branch Networks

OEM

Consigne Agents

Title of the Research Project.

A STUDY OF SELECTED DISTRIBUTION CHANNELS OF RALCO CYCLE TYRES AND TUBES. OBJECTIVES: 1)To study satisfaction level of DEALERS and OEMS in context with certain attributes, who are dealing with the company for more than one year. 2)To know the problems faced by the Dealers and OEMs

Research Methodology
vResearch Design :- Frame work or blueprint for conducting the research project. vR esearch design employed Descriptive Research design for studying the market characteristics. v Data collcetion Method :- Questionnaire and Schedule. vSampling plan :- Feasible way to collect Market Research Data. vPopulation :- Dealers of the following areas:vLudhiana vMoga vSidhar vRaikot vJagraon vAhmedgarh

vSampling Frame : List of all dealers of these areas. vUniverse : List of all dealers of Punjab, and OEMS of Ludhiana. vSample Size : 50 Dealers, 4 OEMS. vSampling Technique :- Convenience Sampling of Location.

Need of Study
As Distribution channel plays a crucial role in having worthy market position and goodwill, so this project was chosen. Benefit to the Dealer and Oem:- It would help them to have the product according to the expectations. Benefit to the Company :- It will help the company to know thw factors which need improvement inorder to satisfy the dealers to a greater extent.

Data Analysis And Interpretation

Fig 4.1 Status of Dealership of Dealers(Percentage wise).

Fig 4.2 Name of Brands dealt by the Dealers.

Fig 4.3(a) Ranking of Brands by Dealers

Fig 4.3 (b)

Fig 4.3(c)

Fig 4.3(d)

Fig 4.3(e)

Cumulative Ranking of all brands together.

Fig 4.4 No of years of association of dealers with Ralco

Fig 4.5Means of communication used by the Dealers for placing order.

Fig 4.6(a) Major segmenr of Ralco tyres dealt by the Dealers.

Fig 4.6(b) Major Segment of Tubes Dealt by the Dealers.

Fig 4.7 Lead time taken by the branch to execute the order.

Fig 4.8Time taken by the company to replace the goods.

Fig 4.9 (a)Satisfaction regarding timely delivery of goods.

Fig 4.9 (b)Satisfaction regarding Replacement Services.

Fig 4.9(c) Satisfaction regarding Discount Schemes.

Fig 4.9(d) Satisfaction regarding Price.

Fig 4.10 Attributes which need improvement.

Fig 5.2 Ranking of Brands by Oems.

Fig 5.3 No of years of association of Oems with Ralson.

Fig 5.4 Level of Agreement regarding Quality.

Fig 5.5 Level of agreement regarding Demand fulfillment.

Fig 5.6 Allocation of points to different attributes of Ralco by Oems .

Fig 5.7 Response of Oems towards increasing the quant of products.

Findings and Conclusion

Replacement services although provided should be more speedy. Price should be decreased a bit to have more dealers and to beat its competitors in this context Greater inventory is required to satisfy the demand of OEMs. More discounts should be available to dealers.

LIMITATIONS: The sample size is limited ( only 50 dealers). Survey represents the response of Dealers of Punjab only( Raikot, Sudhar, Ahmedgarh Mandi, Moga, Jagraon and Ludhiana). Time was limited. Information by dealers might be incorrect

Thank You