13823112 jk-project
Upcoming SlideShare
Loading in...5
×
 

13823112 jk-project

on

  • 9,511 views

hi

hi

Statistics

Views

Total Views
9,511
Views on SlideShare
9,509
Embed Views
2

Actions

Likes
6
Downloads
446
Comments
1

1 Embed 2

http://www.slashdocs.com 2

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • best project of jk tyer
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

13823112 jk-project 13823112 jk-project Document Transcript

  • Unit-1:MARKET SHARE OF DIFFERENT TYRE COMPANIES IN TRUCK SEGMENT Unit-2: CUSTOMER’S PREFERENCE ON DIFFERENT BRANDS AND TYRECOMPANIES IN TRUCK SEGMENT Ambedkar Institute of Management Studies 1
  • ContentsUnit-1: MARKET SHARE OF DIFFERENT TYRE COMPANIES IN TRUCK SEGMENT.  Executive Summary: a. Introduction b. About Tyre industries in India (Background, key issues, Review of performance) c. Growth of Tyre Industries d. Various Types of Tyre segment  JK’s Brief profile (Company) a. About JK b. Mission & Vision c. Marketing strategy d. SWOT analysis e. Organizational structure  Objectives of the study  Need for the study  Limitation of the study  Research Methodology of the study  Data analysis & Interpretation  Findings  SuggestionsUnit-2: CUSTOMER’S PREFERENCE ON DIFFERENT BRANDS AND TYRE COMPANIES IN TRUCK SEGMENT.  Consumer Buying behaviour  Indian consumer profile  Objective of the study  Limitation Of the study  Methodology  Data analysis & interpretation  Findings  Suggestions  Conclusion Bibliography Annexure Ambedkar Institute of Management Studies 2
  •  Executive Summary: a. About Tyre industries in India b. Growth of Tyre Industries c. Various Types of Tyre segment  JK’s Brief profile (Company) a. About JK b. Mission & Vision c. Marketing strategy d. SWOT analysis e. Marketing OrganizationExecutive Summarya. Introduction Ambedkar Institute of Management Studies 3
  • In today’s world of intense competition and rapid dynamism, all the companiesworldwide are tuning their focuses on the customer. Suddenly, the customer hadsucceeded in capturing all the attention of the companies towards him, so much so, thatthe once famous maxim, “customer is the god” has become so true and relevant today.There has been a “paradigm shift” in the thinking of these companies and none other thenthe customer has brought this about. Earlier there was a sellers market, since goods and services were in short supply andthe sellers use to call the shots. But, ever since the advent of the era of globalization,there has been total transformation in the way the customers being perceived. Today,marketers are directing their efforts in retaining the customers and customers’ base. Theirfocus has shifted towards integrating the three elements people, service and marketing. The customer’s importance has assumed imponderable proportions in today’sworld, because of the inherent value that the customers command. A customers can“make or break” a company. It is the responsibility of every company to see that all itscustomers are equally satisfied with them, for one single dissatisfied customer will tell atleast nine others about the dissatisfaction and will spark off a chain reaction and spelldoom for that company. In such scenario, retention of the existing customers assumesdiabolical proportion. Research has thrown light on some important aspects of customers’retention it has been proved empirically that acquiring new customers can cost five timesmore than the cost involved in satisfying and retaining current customers.In the past, the customers was taken for a ride, as there were not many players in thefields, not much importance was attached to product safety, quality, service and productappeal. The attitude of the manufacture was that of “caveat – emptor”. Thanks to thegovernment policies on liberalization, globalization and privatization (LPG), the marketscenario has changed today. Today, the customer has a host of defense mechanism likethe customers protection laws, regulation of the government, the powerful hands of theorganization, customers’ courts, switching to substitute or competitors that offer atcompetitive prices, etc. The maxim,” caveat – emptor” has been replaced by “caveatvenditor”. Ambedkar Institute of Management Studies 4
  • In the past, after sales service was consider as a cost center, Companies were lethargic inattending to customers complaints. Availability of trainee service personal and qualitygenuine spare parts posed serious problems. However, with the rising competition, therecould not be much product differentiation, as price and quality were comparable andlatest technology was to each and every company in the field. Since, there could not bemuch differential a tangible assets, the companies concentrated on the “intangible assets”,namely the “service factor”, which served as a major differentiator. Today after salesservice is an important aspect of every company, and it is no more considered as a costcenter, but considered as a profit center. Every organization strives hard to retain itsexisting customers at any cost since it is five times costly to get a new customers, then toretain an existing customers. Most of the industries today use of information technologyto best services to their customers.b. About Tyre industries in IndiaBackgroundThe origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber Limitedset up the first tyre company in West Bengal. MRF followed suit in 1946. Since then, theIndian tyre industry has grown rapidly.Transportation industry and tyre industry go hand in hand as the two are interdependent.Transportation industry has experienced 10% growth rate year after year with an absolutelevel of 870 billion ton freight. With an extensive road network of 3.2 million km, roadaccounts for over 85% of all freight movement in India.Key Issues of tyre industriesHigh tax usageThe high tax content on tyres can be gauged from the fact that the percentage of total taxto the tax excluded price for various categories of tyres is - 44% for Truck Tyre; 41% forPassenger Car Radial Tyre, 35% for Tractor Rear Tyre and 76% for Truck Tyre Tube. Ambedkar Institute of Management Studies 5
  • Increase in raw material costsApart from being capital intensive, the tyre industry is highly raw material intensive. Anychange in the prices of raw materials affects the profitability of tyre companies. The rawmaterials used in the manufacture of tyres are rubber and petroleum derivatives likenylon tyre cord, carbon black, styrene butadiene rubber and poly butadiene rubber. Themost important raw material is rubber-natural and synthetic. Natural rubber (NR), with29% weightage in the cost of raw materials used by tyre industry, is the highest cost item.Annual consumption of NR by tyre industry is 3.50 lakh tonnes, valued at Rs. 14 billion.Over 85% of NR consumed by the industry is procured domestically. 15% is imported.In the 2003-04 fiscal, as against the Minimum Statutory Price of Rs. 32.0 per kg, theruling domestic price of NR had been over Rs. 50 per kg. This is higher than the worldrubber prices. However, this does not entail the tyre industry players to import as anumber of restrictions are imposed on the import of NR. NR can be imported onlythrough two ports-Kolkata & Visakhapatnam. The customs duty on import of naturalrubber is 20%, with 10% under Bangkok Agreement. However, this is not relevant, as NRis not cultivated in South Korea, Bangladesh & China (signatories under the BangkokAgreement). Hence, NR can be sourced only from Sri Lanka (under the Indo-Sri LankaAgreement), which is of bad quality. Thus, the options of rubber import are restricted andthe manufacturers have to rely on the domestic market for procuring rubber.Import of tyresDuring the FY2002, over 1,10,000 passenger car tyres were imported. Although thisconstitutes a small percentage (1.5%) of total passenger car tyre production in thecountry, since total imports are of radial passenger car tyres, the percentage is higherwhen compared against domestic production of radial passenger car tyres. A largepercentage of imports are from South Korea at a concessional rate of customs duty (i.e.15%) under the Bangkok Agreement - as against 20% normal rate of customs duty.Even though the Government has imposed a restraint on the import of used tyres intoIndia, occasionally there are reports of import of such tyres in a clandestine manner, Ambedkar Institute of Management Studies 6
  • sometimes as new tyre at low value, since there is no restriction on import of new tyres oras tyres under the "others" category. Many countries such as Japan, Bangladesh, Pakistan,Philippines, Thailand, Kenya, South Korea, etc. have either put a complete ban on importof used tyres or have placed stringent conditions on such imports.Tyre ExportsThe product focus of tyre exports from India has been Traditional Truck Tyres. Globallythis segment of tyre export is shrinking due to greater acceptance of radial tyres. Over theyears, China has emerged as a major exporter in bias tyre category. Additionally, exportof Indian tyres to select countries is subjected to non-tariff barriers (NTBs) by way ofstandards, tests, etc. Export of cheaper tyres from China to major tyre importing markets,like US, is adversely affecting Indian tyre exports to these markets. Indias share inexports to these countries (especially USA) is progressively declining. If the trend is notreversed, Indian tyre industry will find it extremely difficult to regain its erstwhileposition in these markets. Low rate of interest, cheaper electricity tariff, hidden subsidiesby the Chinese Government, better infrastructure facilities and lower transaction costs arefactors favourable to Chinese tyre industry.Trends in Production, Consumption, Price & Capacity UtilizationThe total tyre produced in the country was 51.58 million units in FY2003 - a 19% growthrate over FY2002. CAGR of tyre production (in %) FY 1993-2003 9% FY 1993-1998 7% FY 1999-2003 9% FY 2002-2003 19% Compiled by INGRESCurrently, the size of the Indian tyre industry is estimated at Rs. 128 billion (0.5% ofIndian GDP), as of FY2003. The total installed capacity of the Indian tyre industry isaround 60.5 mn units, and the capacity utilization is around 85%. The capacity utilizationimproved in FY2003 following improved demand from the automotive segment (75% inFY2001). Additionally, in FY2003, the price realization of tyre manufacturers alsoregistered an increase by 8%, as against a 0.6% increase in FY2002. Ambedkar Institute of Management Studies 7
  • Demand Supply GapThe demand for tyres is either in the domestic market or in the export market. As far asdomestic demand is concerned, the OEM and the replacement segments are likely towitness strong growth given the current performance of the automotive sector. Given thestrong linkages of tyre industry with automotives, its demand is likely to be strong overthe short to medium term. As for the export demand for tyres, the outlook is positive,even though some downsides remain.As regards supply of tyres, currently, the major players are in the process of expandingtheir capacities, in anticipation of uptrend in sales. For instance, Apollo Tyres has set up ajoint venture with Michelin for manufacture and sale of bus and truck radials. JK isexpanding its Mysore truck and bus radial facility along with eyeing acquisitions ofsmaller units. Ceat has increased its offtake by 3 times from Pirelli. However, acharacteristic of the Indian tyre industry is that most of the tyre manufacturers in the pasthad increased capacities in anticipation of a surge in demand, but when it did notmaterialise, they reduced their addition to capacities. Thus, the demand-supply gap islikely to be an important issue for the Indian tyre industry over the short to medium term.Review of PerformanceOverall PerformanceThe operating margin of the representative sample of tyre companies improved duringFY2003. However, the net profit margin of the tyre companies even though improved,was still at 3%.Performance in FY2004The tyre industry continues to be driven by good demand growth, propelled by sustaineduptrend in demand and sales of automobiles in general, and commercial vehicles andpassenger cars in particular. However, this does not get translated into improved marginsfor the industry, as it is witnessing sustained rise in prices of raw materials like naturalrubber. Additionally, the customs duty on imports has been brought down from 25% to20% and Special Additional Duty of 4% has been dispensed with. Ambedkar Institute of Management Studies 8
  • OutlookThe level of economic activity, performance of domestic automotive industry, and thefaring of the transport sector directly influence the performance of the tyre industry inIndia. With the replacement segment dominating the overall tyre demand in India, theindustry remains inherently vulnerable to economic cycles. While radicalization hasbecome the norm in the passenger car segment, in the bus and truck tyre segment, itsacceptance is still limited. Bus and truck radicalization could emerge in the long term asthe quality of roads improves and the restrictions on overloading are better enforced. Thepractice of re-treading, which is gaining increasing acceptance, could pose a challenge toreplacement demand in the medium term. The ability of the re-treading sector to capturepotential replacement demand would depend on the awareness among customers (of thebenefits of retreading) and also the quality of retreading done. Given the low levels ofpenetration of two-wheelers and passenger cars in the country, OEM demand is likely toincrease, which in turn would push up replacement demand with a lag.The prospects of tyre exports from India appear healthy, following efforts by Indiancompanies to increasingly enter into outsourcing agreements with tyre producers inSoutheast Asia, Eastern Europe and Latin America. Overall, tyre manufacturers are likelyto tap the export market in an effort to boost sales. The increasing exports of bus andtruck tyres (crossply variety) from India to developing countries is because of the factthat developing countries are unable to source them from developed countries as these areno more produced there. Tyre imports are unlikely to pose a threat to the domesticindustry, given that domestic prices are lower than international tyre prices.In the domestic market, tyre manufacturers are expected to increasingly focus onexpanding their dealership networks & explore possibilities of tie-ups among themselvesto penetrate the growing customer base. They are also likely to pursue innovativemeasures (such as "dial-a-tyre service and road shows) to improve customer awareness.The consolidation of the Indian tyre industry is likely to continue in the coming yearsthrough mergers among existing players. The industry is likely to expand through acombination of organic and inorganic growth. While organic growth would come from Ambedkar Institute of Management Studies 9
  • raising efficiency levels, inorganic growth would be achieved through alliances andM&As.c. Growth of Tyre industries in IndiaThe Indian tyre industry is expected to clock a tonnage growth of 9-10 per cent over thenext five years, according to a study by Credit Analysis and Research Limited (CARE), anoted rating firm that offers a wide range of rating and grading services across sectors.While the truck and buses tyres are set to register a CAGR (compounded annual growthrate) of 8 per cent, the LCV (lightCommercial vehicles) tyres are poised for a CAGR of 14 per cent.According to the CARE study, the growth in the Indian tyre industry will be fuelled bythe expansion plans of the automobile companies, governments focus on development ofroad infrastructure and sourcing of auto parts by the global Original EquipmentManufacturers (OEMs).However, the tyre industry has to grapple with raw material price volatility, rupeeappreciation and cheap Chinese imports.The tyre industry in India recorded a CAGR of 9.69 per cent during 2002-07.The size of the industry was estimated at Rs 19,000 crore in 2006-07 with a totalproduction of 736 lakh units of tyres.In 2006-07, the replacement tyres accounted for 53 per cent of the total tyre tonnageofftake, followed by 31 per cent share of OEM and 15 per cent by exports.Out of the 736 lakh ton of tyres, 54, 49,560 units worth Rs 2,600 crore were exported.The exports from India posted a CAGR of 13 per cent in unit terms and 18 per cent invalue terms between 2002-07. Ambedkar Institute of Management Studies 10
  • The study points out that on the export front, the Indian tyre companies need to explorenewer markets as the existing market for bias truck tyre which accounts for about 45 percent of the total export volume is nearing saturation.This apart, with rationalization catching up in the foreign markets, the Indian tyrecompanies need to graduate to radial tyres so as to protect their share in the exportmarket.At present, radicalization of tyres is low in India except for the car tyre market where 95per cent of the tyres is radicalized while cross ply tyres is preferred in all other categories.Cross ply tyres are preferred owing to poor road conditions, overloading in trucks, highercost of radial tyres and poor awareness among the tyre users in the country.The CARE report observes that though the tyre technology in India has witnessed severaldevelopments with continuous innovation, the domestic tyre manufacturers still lagbehind their global counterparts in terms of product differentiation.Global tyre makers offer a wide change of products like tyres with pressure warningsystems, run flat tyres, eco-friendly tyres and energy efficient tyres.d. Various types of Tyre segmentTyres by TypeThe Indian tyre industry produces the complete range of tyres required by the Indianautomotive industry, except for aero tyres and some specialised tyres. Domesticmanufacturers produce tyres for trucks, buses, passenger cars, jeeps, light trucks, tractors(front, rear and trailer), animal drawn vehicles, scooters, motorcycles, mopeds, bicyclesand off-the-road vehicles and special defence vehicles.The scenario in India stands in sharp contrast to that in the world tyre market, where cartyres (including light trucks) have the major share (88%) by volume followed by truck Ambedkar Institute of Management Studies 11
  • Tyres (12%). In India, however, passenger car tyres have a mere 17% share of the overalltyre market.Truck and Bus TyresThe truck and bus tyre segment accounted for 19% of tyres produced in India in FY2003.Every truck/bus manufactured generates a demand for seven tyres (six regular and onespare) as against three in the case of two-wheelers and five for passenger cars. Inaddition, the price of a truck tyre is significantly higher than that of a passenger car tyre(roughly 10 times) or a motorcycle tyre. Thus the demand multiple emanating from thecommercial vehicle segment is highest in value terms.Given the regular use and heavy wear and tear of truck and bus tyres, the demand fromthe replacement market in this segment worked out to 68% of the total demand for truckand bus tyres in FY2003; the OEM demand accounted for around 9% the same year. Withthe Indian manufacturers of cross-ply tyres focusing on the export market, this segmentaccounts for around 22% of the demand for truck and bus tyres.Passenger Car TyresThe passenger car tyre segment accounted for 17% of all tyres produced in India inFY2003. With passenger car production witnessing a growth of 12% in FY2003 over theprevious year, OEM demand accounted for about 33% of the total sales that year. Thereplacement market accounted for around 63% of the total sales of passenger car tyres inFY2003. Exports accounted for 4% of the total passenger car tyre demand in FY2003.With the stock of cars increasing, replacement demand is likely to continue.Motorcycle TyresMotorcycles accounted for 76% of two-wheelers sold in the domestic market in FY2003.Motorcycle tyres constitute the largest segment of the domestic tyre industry (29% oftotal tyre demand in FY2003). The replacement market accounted for around 49.8% ofthe total motorcycle tyres sold in FY 2003, while OEM demand accounted for around50%. Ambedkar Institute of Management Studies 12
  • Scooter TyresScooters were the dominant segment in the Indian two-wheeler industry till FY1998,accounting for around 42% of domestic two-wheeler sales. However, the introduction ofnew motorcycle models has seen the share of scooters declining to 19% of domestic two-wheeler sales in FY2003. The OEM segment accounted for around 34% of the total salesin the scooter tyre segment in FY2003, with the rest being accounted for by thereplacement market.Tyre Demand by MarketsVehicle Manufacturers or OEMsThe demand from the OEM segment is a derived one and directly correlated to the levelof automotive production. The OEMs demand varies significantly across categories frombetween 8% for truck and bus tyres to over 50% for some other segments like, jeeps andmopeds.Replacement Market Ambedkar Institute of Management Studies 13
  • The replacement market, including State transport undertakings and Government buying,accounted for around 59% of the total tyre demand in FY2003. The demand in thereplacement market depends on the vehicle population, the level of economic activity, lifeof the products transported, kilometreage per vehicle, the price of the tyres and thequality of the existing road infrastructure. Additionally, the replacement market, whichoffers better margins, is extremely competitive. The replacement market is dominated bythe truck and buses segment, which accounted for 22% of all tyre sales in the replacementmarket in FY2003.The large size of the replacement in turn is determined by the interplayof various factors as discussed below:The replacement demand may be lower because of longer replacement intervals andlower business mileage if the economic activity slows down. • Replacement demand in India is higher because of a low vehicle scrap page rate. • Poor road conditions by lowering the life of tyres, have a positive impact on replacement demand. • Stricter enforcement of the MV Act, which seeks to prevent overloading of vehicles, will result in an increase in the life of tyres and thus impact replacement demand negatively. • Applying a new tread or "re-treading" can extend the life of the tyre at a significantly lower cost, thereby lowering replacement demand. In India, re- treading finds greater acceptance in the commercial segment. • Radicalization of tyres is likely to result in lower replacement demand. While car radicalization in the country has reached a level of 65%, truck and bus radicalization stands at just 2-10%. Poor road and support infrastructure as well as traditional vehicle designs act as a barrier to radicalization in the commercial vehicle segment. Radial technology for trucks and buses would help increase operating efficiencies by delivering better mileage and minimizing wear and tear. According to ATMA, even if only 25% of the truck and bus segment is radicalized, the savings in fuel costs would be around Rs. 7,500 million. Ambedkar Institute of Management Studies 14
  • • Introduction of tubeless tyres in the passenger car segment is also likely to affect replacement demand adversely • Introduction of eco-friendly radial tyres such as hyper-bonding silica technology in the passenger car segment may affect replacement demand adversely.ExportsIn the light of the prevailing domestic market situation, most of the tyre manufacturershave taken to exports to reduce inventory build-ups. In FY2003, Indian tyre exports stoodat Rs. 10.8 billion (10% of the total industry) in value terms and 3.1 million in unit terms(6.5% of total production). Indian companies have currently entered into sourcingagreements (for tyres) with neighboring countries. For instance, Ceat and J K Tyres havesourcing agreements with tyre producers in Sri Lanka and China. This is likely to have apositive impact on tyre exports from India.Market PlayersSome of the major players in the Indian tyre industry are MRF, Ceat, JK Industries,Apollo Tyres, Bridgestone India, Goodyear India, Falcon Tyres and TVS Srichakra. Thetyre industry in India is fairly concentrated, with the sample of eight companiesJK’s Brief Profilea. About JKJk Tyre and Industries is a mega corporate entity that is emblematic of excellence,diversification and pioneering new technologies. A part of JK Organization which ranksamong the top private groups private groups in India, Jk Tyre and Industries is committedto self reliance and follows an ethic that views customer satisfaction as an index ofachievement.Over the years, the company has expanded and diversified its business portfolio. It hasdeveloped into a multi product, multi-location corporate entity comprising of followingbusiness divisions:The advent of JK Organization on the industrial landscape of India almost synchronizeswith the beginning of an era of industrial awareness - an endeavor for self reliance and Ambedkar Institute of Management Studies 15
  • the setting up of a dynamic Indian industry. This was way back in the middle of the 19thcentury. And the rest that followed is history.CORE VALUES:JK Organization has been a forerunner in the economic and social advancement of India.It always aimed at creating job opportunities for a multitude of countrymen and toprovide high quality products. It has striven to make India self reliant by pioneering theproduction of a number of industrial and consumer products, by adopting the latesttechnology as well as developing its own know-how. It has also undertaken industrialventures in several other countries.JK Organization is an association of industrial and commercial companies and charitabletrusts. Its member companies, employing nearly 50,000 persons are engaged in themanufacture of a variety of products and in diverse fields of commerce.Trusts are devoted to promoting industrial, technical and medical research, education,religious values and providing better living and recreational facilities. With the spirit ofsocial consciousness uppermost in mind, J.K. Organization is committed to the cause ofhuman advancement. 1933 First in India to manufacture Calico Prints- Juggilal Kamlapat Cotton Spinning and Weaving Mills Co. Ltd., Kanpur. 1940 First in India to manufacture steel Bailing Hoops for jute and cotton and to make the country self sufficient by meeting the entire demand- J.K. Iron & Steel Co. Ltd., Kanpur. 1944 First in India to produce Aluminium virgin Metal from Indian Bauxite- Aluminium Corporation of India Ltd., Jaykaynagar. 1949 First in India to manufacture Engineering files- J.K. Engineers ‘Files, Bombay. Ambedkar Institute of Management Studies 16
  • 1959 First in India to set up a continuous process Rayon Plant.1960 First to manufacture a Hydraulically Operated Cane Crushing Mill for Khandsari Sugar Plant and completed 100 ton plant-J.K. Iron & Steel Co. Ltd., Kanpur.1961 First in world to set up a plant for production of Hydrosulphite of soda by Sodium Amalgam Process- J.K. Chemicals Ltd., Bombay.1965 First to produce Sodium Sulphoxylate Formaldehyde (Rangolite C of Formosul) in India - J.K. Chemicals Ltd., Bombay1968 First to manufacture TV Sets in India- J.K. Electronics, Kanpur. First to manufacture Metallic Cops for Synthetic Filament yarn industries in India- Syntex tube works, Kanpur.1969 First to manufacture Acrylic Fibres- J.K. Synthetics Ltd. Kota First to develop differentially Dyeable Nylon- J.K. Synthetics Ltd., Kota1973 First in India to license Synthetic Fibre Technology to third party as well as the first to manufacture Synthetic Fibre Machinery Fibretech Engineers & Manufacturers, Dadri.1976 First in India to produce steel belted Radial Tyres for passenger cars, trucks and buses- J.K. Tyre Plant, Kankroli.1980 First in world to make Steel Belted Radial Tyres for three wheelers- J.K. Tyre Plant, Kankroli.1984 First in India to produce white cement through dry process- J.K. White cement. Gotan. Ambedkar Institute of Management Studies 17
  • 1985 First in India to produce Cathonic Dyeable Polyester Fibre- J.K. Synthetics Ltd., Kota. First in India to produce Nylon Tyre Cord based on Spin Draw Technology- J.K. Synthetics Ltd., Kota.1989 First in India to produce magnetic tapes with cobalt technology J.K. magnetics, Surajpur.1991 Banmore Tyre Plant (BTP) set-up with a capacity of 5.7 lacs tyres p.a.1992 R & D center set-up at HASTERI.1994 Indias first T-Rated tyre launched Banmore Tyre Plant (BTP) crossed 100 TPD.1995 Mercedes Benz Launched on JK steel radials First tyre manufacturer in the world to get ISO 90011996 Indias first dual contact high traction steel radial- aquasonic launched. Introduced steel wheels.1997 Awarded the National Export Award for 96-97. Vikrant Tyres (VTL) acquired. Indias first H rated tyre launched. Only Tyre manufacturer to get E Mark certification. HASETRI became the first research institute in Asia to get ISO 9002.1998 First tyre manufacturer in the world to get QS 9000. Awarded CAPEXILs highest export award for 1997-98. Ambedkar Institute of Management Studies 18
  • 1999 Synergy with VTL in procurement, marketing and production flexibility. Completion of state of the art modernisation of truck radials. JK Tyres ranked 16th largest Tyre Company in the world. ISA - 14000 accredition for environment & safety. 2000 JK introduced National Go-Karting Championships. 2001 Recieved CAPEXIL award. J.K. Industries recieved FOCUS LAC export award for the year 1999- 2000. Commendation Certificate of CII Exim. IInd National Go-Karting Championships held.JK Tyres No 1 market positionIn what is being considered as a landmark decision in the highly competitive Indian tyreindustry, the Advertising Standards Council of India (ASCI) has upheld JK IndustriesLtds claim of being Indias No 1 tyre manufacturer in the four-wheeler tyre segment,reaffirming JKs leadership position in the market.Expressing his happiness over ASCIs judgement, JK Tyre marketing director T KBanerjee says: This is a fabulous example of why all of us need to have faith in bodieslike ASCI. We believe that the process of self-regulation in Indian advertising is workingfor both companies and agencies. We also hope that this would encourage various playersto bring superior technology and consumer service standards and claim leadership in amore healthier and competitive manner.The case was started when few competitors filed a complaint with ASCI against JK Tyresprint advertisement, in which JK Tyre announced its numero uno position in the four-wheeler tyre segment, quoting production figures compiled by Automotive TyreManufacturer Association and other authentic industry sources. Ambedkar Institute of Management Studies 19
  • But the competitors contradicted the claim, stating the fact that market figures from acompanys annual report should be used as authentic data to claim ones leadership, notthe production figures.But ASCI considered the case at the Consumer Complaints Council on 23 May 2002 andupheld JK Tyres contention that production figures, as compiled by authentic industrysources and used by JK Tyre to claim its leadership, is a valid and applicable comparisonplatform.Hence, JK Tyres claim as No 1 tyre manufacturer in India is a perfectly valid and correctstatement. This also reflects ASCIs agreement to JK Tyres viewpoint that figures, asstated in the ones annual report, could actually be misleading and could include revenuesfrom non-tyre-related businesses also.JK Tyre, pioneers of radial technology in India, is today Indias largest manufacturer oftyres in the four-wheel segment, including tyres for trucks and buses, LCVs, passengercars, jeeps, tractors, ADVs and OTRs. After 25 years of pioneering world-classtechnologies in India, JK Tyre has recently launched the countrys first eco-friendlycoloured tyres as well as steel-belted tractor rear radials.b. Mission & VisionVision:To be amongst the most admire companies in India committed to be excellence.Mission:a. Be a customer obsessed companyb. No.1 Tyre brand in Indiac. Deliver enhanced value at all stakeholdersd. Most profitable Tyre Company in Indiae. Enhance global presence through acquisition Ambedkar Institute of Management Studies 20
  • f. Motivated and committed team development for high performance organizationc. Marketing StrategyStrategic thinking is key to the evolution of successful marketing strategies of JK tyre.This involves the following analyses: i. Understanding markets: Strategic perspective of the market requires skilful analysis of the trend and how they affect the market size and demand for the firm’s product.ii. Finding market niches: Price, service, convenience and technology are some of the niches in Indian market.iii. Product and service planning: Analysis of the customer’s promotion of the brand, both of the firm and competitors, besides an analysis of the situation in which the customer uses the product.iv. Distribution: Structural changes in inventory management, mobile distribution are some of the key factors that are going to affect the distribution process in the Indian market.v. Managing for result: With pressure on costs, prices, and margins, marketers will have to make effective utilization of every rupee spent in marketing.Market opportunity of JK:Identification of market opportunity is critical before the management of affirm takes adecision to launch or diversify in any product area. This involves analysis of thefollowing: Size of the market Marketing strategies and the extent and quality of services rendered by other firm in the industry. Market programmed required to satisfy market wants Identification of key success factors in an industry and linking them to a firm’s strengths and weaknessMarket opportunity Ambedkar Institute of Management Studies 21
  • a. Size of the market b. How well the market is served c. Prospective inches d. Marketing mix required to succeed e. Core competencies required Market Industry Competition segment analysis analysis analysis Demand Trade Condition analysis s Market opportunity Size of the market How well the market is served Prospective inches Marketing mix required to succeed Core competencies required Framework of market opportunity analysis Size of the market: Sizes of the market are.... I. Demand analysis: is the core aspect of market opportunity. II. Segmentation analysis: is the process of dividing the market into homogeneous sub units.III. Industry analysis: Ambedkar Institute of Management Studies 22
  • Entry Barriers: High The entry barriers are high for the tyre industry. It is a highly capital intensive industry. A plant with an annual capacity of 1.5 million cross-ply tyres costs between Rs. 4,000 and Rs. 5,000 million. A similiar plant producing radial tyres costs Rs. 8,000 million. Bargaining Power of theBargaining Power of the Suppliers: HighBuyers: HighThe OEMs have total control Inter Firm Rivalry: Low The tyre The tyre industry consumesover prices. In fact, the industry in India is fairly concentrated, nearly 50% of the naturalOEMs faced with declining with the top eight companies accounting rubber produced in theprofitability have also for more than 80% of the total country. The price of naturalreduced the number of production of tyres rubber is controlled by Rubbercomponent suppliers to make Control Board and thethe supply chain more domestic prices of naturalefficient. rubber have registered a significant increase in recent times. Threat of Substitutes: Low but Increasing During the FY2002, over 1,10,000 passenger car tyres were imported. This constitutes over 2% of total radial passenger car tyre production in the country. However, with the reduction of peak custom duty, the import of tyres is likely to increase. Industry Analysis - Porters Model iv. Competitor analysis: analysis of competition how well the market is served. Marketing mix: A Marketing mix is the division of groups to make a particular product, by pricing, product, branding, place, and quality. Although some marketers[who?] have added other Ps, such as personnel and packaging, the fundamentals of marketing typically identifies the four Ps of the marketing mix as referring to: Ambedkar Institute of Management Studies 23
  • 1. Product2. Price3. Promotion4. Place Product A tangible object or an intangible service that is mass produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism industry & the hotel industry. Typical examples of a mass produced tangible object are the tyre. A less obvious but ubiquitous mass produced service is a computer operating system. Ambedkar Institute of Management Studies 24
  • Product range: BIAS SIZE TYPERIB 9.00-2014PR JET RIB 9.00-2016PR JET RIB 10.00-2016PR JET RIB JET MILES 9.00-2014PR TRACK TUFSEMI 9.00-2016PRLUG TRACK TUF 10.00-2016PR TRACK TUF Ambedkar Institute of Management Studies 25
  • NORMAL LOAD 8.25-2014PR JET TRACK 9.00-2014PR JET TRACK 9.00-2016PR JET TRACK 10.00-2016PR JET KING 11.00-2016PR JET KING 12.00-2016PR JET KINGLUG MODERATE 8.25-2014PR JET TRACK 9.00-2014PR JET TRACK 9.00-2016PR JET TRACK 10.00-2016PR JET CLASSIC HEAVY 10.00-2016PR TRACK 39 & DX SUPER HEAVY 10.00-2016PR TRACK 39 DX RADIAL SIZE TYPE 9.00-2016PR JET STEEL-JDHLUG 10.00-2016PR JET STEEL-JDC 11.00-2016PR JET STEEL-JDC 09.00-2016PR JET WAY JUCSEMI 10.00R2016PR JET WAY JUCLUG 11.00R2016PR JET WAY JUC 9.00R2014/16PR JET WAY JUCRIB 10.00R2016PR JET WAY JBR 11.00R2016PR JET WAY JUH 12.00R2018PR JET WAY JUH Ambedkar Institute of Management Studies 26
  • PriceThe price is the amount a customer pays for the product. It is determined by a number offactors including market share, competition, material costs, product identity and thecustomers perceived value of the product. The business may increase or decrease theprice of product if other stores have the same product.PlacePlace represents the location where a product can be purchased. It is often referred to asthe distribution channel. It can include any physical store as well as virtual stores on theInternet.PromotionPromotion represents all of the communications that a marketer may use in themarketplace. Promotion has four distinct elements - advertising, public relations, word ofmouth and point of sale. A certain amount of crossover occurs when promotion uses thefour principal elements together, which is common in film promotion. Advertising coversany communication that is paid for, from television and cinema commercials, radio andInternet adverts through print media and billboards. One of the most notable means ofpromotion today is the Promotional Product, as in useful items distributed to targetedaudiences with no obligation attached. This category has grown each year for the pastdecade while most other forms have suffered. It is the only form of advertising thattargets all five senses and has the recipient thanking the giver. Public relations are wherethe communication is not directly paid for and includes press releases, sponsorship deals,exhibitions, conferences, seminars or trade fairs and events. Word of mouth is anyapparently informal communication about the product by ordinary individuals, satisfiedcustomers or people specifically engaged to create word of mouth momentum. Sales staffoften plays an important role in word of mouth and Public Relations.Broadly defined, optimizing the marketing mix is the primary responsibility ofmarketing. By offering the product with the right combination of the four Ps marketerscan improve their results and marketing effectiveness. Making small changes in themarketing mix is typically considered to be a tactical change. Making large changes in Ambedkar Institute of Management Studies 27
  • any of the four Ps can be considered strategic. For example, a large change in the price,say from $19.00 to $39.00 would be considered a strategic change in the position of theproduct. However a change of $131 to $130.99 would be considered a tactical change,potentially related to a promotional offer.The term "Marketing Mix" however, does not imply that the 4P elements representoptions. They are not trade-offs but are fundamental marketing issues that always need tobe addressed. They are the fundamental actions that marketing requires whetherdetermined explicitly or by default.d. SWOT AnalysisSTRENGTHS • Strong brand image • Very large distribution • Being quality oriented rather than quantity channel oriented • Reasonable price • Large product width & line (product mix) • Effective employee in JK • Economies of scale due to optimum capacity utilization • Collaboration with Vikrant, know for their technological superiority bringing together performance, economy, durability and comfort. • Strong financial positionsWEAKNESSES • Less Brand Awareness • Less concern about small car segmentOPPORTUNITIES• A burgeoning work force and growing middle class population• High growth potential for its exports as demand for JK tyre in Europe increasing. Ambedkar Institute of Management Studies 28
  • • Indian customers are mainly value buyers demanding a better overall package. JK is poised in a better position than other players in the market to capitalise on this opportunityTHREATS• Entry of new players with newer and better technologies in the small car tyre segment• So many close competitors like Appolo, Birla, Ceat, Modi, Kaizen etc.e. Organizational structure of JK Tyre Ambedkar Institute of Management Studies 29
  •  Objectives of the study  Need for the study  Limitation of the study  Research Methodology of the studyObjectives of the study  To find out market share of JK Tyres.  To understand the marketing strategy of JK Tyres.  To focus on the Marketing mix of JK tyre Ambedkar Institute of Management Studies 30
  •  To evaluate the limitations of JK tyre.  To analyze the customer’s needs regarding the product and policies formulated by the company.  To find out the brand image of JK tyreNeed for the studyManagement is like a coin having two sides. One is the theoretical part and second is thepractical part. In the theoretical part of management we learn in our classroom from thelectures, seminars, group discussions that are arranged from time to time.To know the practical aspect of management a practical training is provided to thestudents. The main idea behind practical training is to bring the management studentsface to face with the actual environment of practical management so that he/ she will beable to apply theory to practical situation before finally moving into the professionalworld to show the efficiency and capability.The project study focused on “JK tyre” as a product and the subject is to understand themind set of different customers about the product. Being a student of marketingmanagement, the inquisitiveness to peep on practical side of consumer perceptionpromoted in study.In this study efforts have been made to prepare the report as realistic as possible.Limitation of the studyThe project surfers from the following limitations due to the inherent and restrictivenature of the study undertaken: Ambedkar Institute of Management Studies 31
  • • Due to constraints of time, money and other resources applicable to this study. • This study is confined to only a few specified areas of and is not comprehensive study of the customers of JK tyre all over Kolkata and North 24 Pgs. • This study is restricted only to sample space chosen for the study. • The areas covered under the surveys are: Dunlop, Agarpara, Chiriamore, Panihati, Titagarh, Khardah,Research Methodology of the studySAMPLE SIZE: 500 trucksMETHOD OF COLLECTION: MARKET SURVEYDATA TYPE:For the above study both type of data were used such as primary data and secondary data.For primary data different areas of Kolkata were being visited and for the secondary datainternet & reference books have been used.• Collecting data from market through Fitment survey of Trucks on road.• Working on the data.• Graphical representation of results.• Analyzing the graph and driving further enquiries. Ambedkar Institute of Management Studies 32
  • Data analysis & InterpretationExhibit-3.1Table showing market share in RIB & SEMI LUG tyre Table-3.1 NO. OF RIB & SEMI % IN TOTAL RIB & NAME % IN TOTAL TYRES LUG TYRES SEMI LUG TYRES Ambedkar Institute of Management Studies 33
  • APOLLO 463 32.47% 13.24% BIRLA 122 8.56% 3.49% CEAT 185 12.97% 5.29% J.K. 415 29.10% 11.87% MRF 206 14.45% 5.89% GOOD YEAR 20 1.40% 0.57% OTHERS 15 1.05% 0.43% TOTAL 1426 100.00% 40.79% Fig-3.1(a) Fig-3.1(b) MKT SHARE IN RIB & SEMI LUG TYRES(%) MKT. SHARE OF RIB & SEMI LUG TYRES 35.00% 30.00% % OF TOTAL MKT SHARE APOLLO 25.00% BIRLA APOLLO 20.00% CEAT J.K. BIRLA 15.00% MRF CEAT GOOD YEAR 10.00% J.K. OTHERS MRF 5.00% GOOD YEAR 0.00% 1 OTHERS COMPANIESInterpretation: From the above table it is shown that in Rib and Semi lug tyresegment Appolo is the market leader with 32.47%, followed by JK with 29.10% marketshare, MRF with 14.45%, CEAT with 12.97%, Birla with 8.56%, Good Year with 1.40%and others with1.05% of market shar.Exhibit-3.2Table showing Market share in LUG tyre Table-3.2 NO. OF LUG % IN TOTAL LUG NAME % IN TOTAL TYRES TYRES TYRES APOLLO 493 23.82% 14.10% BIRLA 164 7.92% 4.69% Ambedkar Institute of Management Studies 34
  • CEAT 435 21.01% 12.44% J.K. 588 28.41% 16.82% MRF 215 10.39% 6.15% GOOD YEAR 110 5.31% 3.15% OTHERS 65 3.14% 1.86% TOTAL 2070 100.00% 59.21% Fig-3.2(a) Fig-3.2(b) MKT SHARE IN LUG TYRES(%) MKT.SHARE OF LUG TYRES IN % 30.00% % OF TOTAL MKT SHARE TYRES 25.00% APOLLO 20.00% BIRLA APOLLO CEAT BIRLA 15.00% J.K. CEAT MRF 10.00% GOOD YEAR J.K. OTHERS MRF 5.00% GOOD YEAR 0.00% OTHERS 1 COMPANIESInterpretation: From the above table it is shown that in lug tyre segment JK is themarket leader with 28.41% followed by Appolo with 23.82%,CEAT 21.01%, MRF with10.39%,Birla with 7.92%, Good Year with 5.31%,and others with1.86%Exhibit-3.2Table showing Total market share Table-3.3 NAME TOTAL NO OF TYRES % IN TOTAL APOLLO 956 27.35% BIRLA 286 8.18% Ambedkar Institute of Management Studies 35
  • CEAT 620 17.73% J.K. 1003 28.69% MRF 421 12.04% GOOD YEAR 130 3.72% OTHERS 80 2.29% TOTAL 3496 100.00% Fig-3.3(a) Fig-3.3(b) TOTAL MKT SHARE(%) TOTAL MKT. SHARE OF TYRES IN % 35.00% 30.00% % OF TOTAL MKT SHARE APOLLO 25.00% BIRLA APOLLO 20.00% CEAT BIRLA J.K. 15.00% CEAT MRF GOOD YEAR J.K. 10.00% OTHERS MRF 5.00% GOOD YEAR 0.00% OTHERS 1 COMPANIESFrom the above table it is shown that in lug tyre segment JK is the market leader with28.69% followed by Appolo 27.35% ,Ceat with 17.73% MRF with 12.04%, Birla with8.18%, Good Year with 3.27% and others are 2.29%. Ambedkar Institute of Management Studies 36
  •  Findings  SuggestionsFindingsAfter taking the feedback of more than 100 customers the study reveals that customersare fond of different brands in different areas. Like, in Gouripur area almost 70% ofcustomers prefer BIRLA tyres (especially SAMSON), in Panihati areas customers preferJK tyres, where in Dunlop people prefer JK & APOLLO. Not only different choices butalso having different experience on different brands. It is found that many customers Ambedkar Institute of Management Studies 37
  • prefer JK’s guaranteed tyres such as “JET TRAK 39” and economy class rib tyre“VIKRANT TRACK KING” for its milage & reliability but it is also true that many otherbrands such as “JET MILES”, “JET PACE”, “JET SUPER LUG” do not have a strongplace in customers mind. The study shows that JK’s strong contender is APOLLO who’squality was appreciated by many. APOLLO’s “XT-7” & “LOAD STAR SUPER” are verymuch preferred. In guaranteed tyres BIRLA’s “SAMSON” is the main contender of JK.Incase of normal loaded trucks customers mostly rely on CEAT but in over loadAPOLLO & JK are reliable. Certainly MRF has not a good reputation at all. 1. JK is the market leader followed by APOLLO. 2. VIKRANT TRACK KING of JK is most used/preferred tyre overall. 3. In economy segment JK has Strong hold but premium segment is dominated by APOLLO. 4. JK Tyre is having edge breaking problemSuggestion 1. JK Tyre is doing well in rib segment but they are based in only on one brand “Vikrant”. So JK should try to aware to increase the awareness of other brands. 2. “Price-Quality relationship” needs to improve in premium rib and lug tyre segment. 3. Keep eye to reduce the cost of manufacturing. So price will further reduced and competition will increased. 4. The company should look after its tread erosion/breaking problem. Ambedkar Institute of Management Studies 38
  • Unit-2: CUSTOMER’S PREFERENCE ON DIFFERENT BRANDS AND TYRE COMPANIES IN TRUCK SEGMENT. Consumer Buying behaviour Indian consumer profile Objective of the study Limitation Of the study MethodologyConsumer Buying BehaviourConsumer buying behavior is influenced by the culture and subculture. Habits, likes anddislikes of the people belonging to a particular culture or subculture can affect themarketing efforts of a firm to a great extent. The social class to which the individualbelongs tells about the type of products the individual prefers. Other factors that influencethe buying behavior are social factors like reference group and family, personal factorslike the age, life cycle and occupation, and psychological factors like motivation,perception and attitudes of the customers. Ambedkar Institute of Management Studies 39
  • Buying roles and buying decision constitute consumer’s decision-making behavior. Acustomer can adapt various buying roles like initiator, influencer, decider, buyer, preparer,maintainer and disposer in purchasing and using the products. Buying behavior helpsmarketers learn the intensity and degree of involvement of customers in purchasing theproducts. Customer buying behavior is broadly classified into three types. Extensiveproblem solving buying behavior is exhibited when a customer buys high involvement,expensive and less frequently purchased products. Consumers are involved in routineproblem solving decision-making process, when they purchase routinely purchased, lowcost products. Variety seeking behavior is seen when customers purchase low-involvement products.Customers usually go through five stages in arriving at a purchase decision, though itmight not be so in all the cases. In the first stage, the customer identifies an unsatisfiedneed in him. In the second stage, customers collect the information about the product andavailable brands through personal sources, commercial sources, public sources orexperiential sources. In the third stage, the customers evaluate all the alternatives with thehelp of available information. In the fourth stage, the customer makes a purchasedecision. And finally in the fifth stage, he experiences post purchase satisfaction ordissatisfaction.Post purchase usage and disposal of the product is also of equal importance to themarketer, as it can save cost and time of producing as well as help in protecting theenvironmental equilibrium.Factors influencing the behaviour of buyers.Consumer behaviour is affected by many uncontrollable factors. Just think, whatinfluences you before you buy a product or service? Your friends, your upbringing, yourculture, the media, a role model or influences from certain groups?Culture is one factor that influences behaviour. Simply culture is defined as our attitudesand beliefs. But how are these attitudes and beliefs developed? As an individual growingup, a child is influenced by their parents, brothers, sister and other family member who Ambedkar Institute of Management Studies 40
  • may teach them what is wrong or right. They learn about their religion and culture, whichhelps them develop these opinions, attitudes and beliefs (AIO). These factors willinfluence their purchase behaviour however other factors like groups of friends, or peoplethey look up to may influence their choices of purchasing a particular product or service.Reference groups are particular groups of people some people may look up towards tothat have an impact on consumer behaviour. So they can be simply a band like the SpiceGirls or your immediate family members. Opinion leaders are those people that you lookup to because your respect their views and judgments and these views may influenceconsumer decisions. So it maybe a friend who works with the IT trade who may influenceyour decision on what computer to buy. The economical environment also has an impacton consumer behaviour; do consumers have a secure job and a regular income to spendon goods? Marketing and advertising obviously influence consumers in trying to evokethem to purchase a particular product or service.People’s social status will also impact their behaviour. What is their role within society?Are they Actors? Doctors? Office worker? And mothers and fathers also? Clearly beingparents affects your buying habits depending on the age of the children, the type of jobmay mean you need to purchase formal clothes; the income which is earned has animpact. The lifestyle of someone who earns £250000 would clearly be different fromsomeone who earns £25000. Also characters have an influence on buying decision.Whether the person is extrovert (out going and spends on entertainment) or introvert(keeps to themselves and purchases via online or mail order) again has an impact on thetypes of purchases made.Types of buying behaviour.There are four typical types of buying behaviour based on the type of products thatintends to be purchased. Complex buying behaviour is where the individual purchases ahigh value brand and seeks a lot of information before the purchase is made. Habitualbuying behaviour is where the individual buys a product out of habit e.g. a dailynewspaper, sugar or salt. Variety seeking buying behaviour is where the individual likesto shop around and experiment with different products. So an individual may shop around Ambedkar Institute of Management Studies 41
  • for different breakfast cereals because he/she wants variety in the mornings! Dissonancereducing buying behaviour is when buyer are highly involved with the purchase of theproduct, because the purchase is expensive or infrequent. There is little differencebetween existing brands an example would be buying a diamond ring, there is perceivedlittle difference between existing diamond brand manufacturers.How do customers buy?Research suggests that customers go through a five-stage decision-making process in anypurchase. This is summarized in the diagram below: Ambedkar Institute of Management Studies 42
  • This model is important for anyone making marketing decisions. It forces the marketer toconsider the whole buying process rather than just the purchase decision (when it may betoo late for a business to influence the choice!)The model implies that customers pass through all stages in every purchase. However, inmore routine purchases, customers often skip or reverse some of the stages.For example, a student buying a favourite hamburger would recognize the need (hunger)and go right to the purchase decision, skipping information search and evaluation.However, the model is very useful when it comes to understanding any purchase thatrequires some thought and deliberation.The buying process starts with need recognition. At this stage, the buyer recognizes aproblem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds toa marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffeeand chocolate muffins).An “aroused” customer then needs to decide how much information (if any) is required.If the need is strong and there is a product or service that meets the need close to hand,then a purchase decision is likely to be made there and then. If not, then the process ofinformation search begins.A customer can obtain information from several sources: • Personal sources: family, friends, neighbors etc • Commercial sources: advertising; salespeople; retailers; dealers; packaging; point- of-sale displays • Public sources: newspapers, radio, television, consumer organizations; specialist magazines • Experiential sources: handling, examining, using the productThe usefulness and influence of these sources of information will vary by product and bycustomer. Research suggests that customer’s value and respect personal sources morethan commercial sources (the influence of “word of mouth”). The challenge for the Ambedkar Institute of Management Studies 43
  • marketing team is to identify which information sources are most influential in theirtarget markets. In the evaluation stage, the customer must choose between the alternativebrands, productsPost-purchase evaluation - Cognitive DissonanceThe final stage is the post-purchase evaluation of the decision. It is common forcustomers to experience concerns after making a purchase decision. This arises from aconcept that is known as “cognitive dissonance”. The customer, having bought a product,may feel that an alternative would have been preferable. In these circumstances thatcustomer will not repurchase immediately, but is likely to switch brands next time.To manage the post-purchase stage, it is the job of the marketing team to persuade thepotential customer that the product will satisfy his or her needs. Then after having made apurchase, the customer should be encouraged that he or she has made the right decision.Indian consumer profile  Indian consumers are knowledgeable.  They are tech savvy.  Indian consumers are literate.  Most of the Indian are middle class.  Standard of living improved.  Rational and think in a linear manner.  They can explain their thought and behaviour.  Think in words.OBJECTIVE • The objective of the project was solely to evaluate preference level of JK tyre among the minds of customers in respect of certain important factors like goodwill, acceptance, satisfaction etc. • To assess the consumer perception • To understand the factors this motivates the customers for buying. Ambedkar Institute of Management Studies 44
  • • To understand the satisfaction level of the customers.Limitation of the study  The sample size of 100 respondents was too small for generalization.  The survey was restricted only to Kolkata.  The duration of the study is only 45 days, due to the reason the study may not give full fledged information to the Media Planning Group.  Some of the respondents were reluctant to give the right information.Methodology of the studyTYPE OF STUDY:Study is partly descriptive and partly exploratory. It is deceptive as it is concerned withthe descriptions of the variables in the problem model, i.e. what variables or factorsconstitute customer satisfaction, and what additional variables or factors could beincluded, to constitute an acceptable the present customer satisfaction package or toincrease the degree of satisfaction of the customers from delight to “ecstasy”. It isexploratory as it is concerned with exploring and discovering the satisfaction levels andthe reasons for dissatisfaction, if any in general.DATA COLLECTION METHOD:PRIMARY DATA:The primary data is collected through survey research by conducting personal interviewswith the customers.RESEARCH TOOLS:The customers are administered a carefully prepared, well thought out and structuredquestionnaire, which consists of open- ended but mostly be close questions, whichincludes multiple choice questions, Dichotomous questions.SAMPLING DESIGN:The sample size is 100.Sampling areas: KolkataSECONDARY DATA:The data has been collected from various Magazines, Books and company Websites. Ambedkar Institute of Management Studies 45
  • Data analysis & interpretationAmbedkar Institute of Management Studies 46
  • EXHIBIT-2.1(a)Table showing Brand preference for front wheel as perrespondents Table-2.1(a) Brand No. Of Respondents Per Cent JK 31 31% APPOLO 28 28% MRF 8 8% BIRLA 23 23% OTHERS 10 10% TOTAL 100 100% Source- Primary data Fig-2.1(a) Brand preference for front w heel 10% 31% JK 23% APPOLO MRF BIRLA OTHERS 8% 28%Interpretation: From the above table it is shown that majority of the respondents [31]prefer JK tyer for front wheel because of smooth driving. 28% of respondents preferAppolo tyre for better mileage. 8% of respondents prefer MRF tyre for quick service.23% of the respondents prefer Birla tyre for better claim policy. 10% of the respondentsprefer other brands. Ambedkar Institute of Management Studies 47
  • EXHIBIT-2.1(b)Table showing Brand preference for rear wheel as perrespondents Table-2.1(b) Brand No. Of Respondents Per Cent JK 28 28% APPOLO 18 18% MRF 10 10% BIRLA 27 27% OTHERS 17 17% TOTAL 100 100% Source- Primary data Fig-2.1(b) Brand preference for rear w heel 17% 28% JK APPOLO MRF BIRLA 27% 18% OTHERS 10%Interpretation: From the above table it is shown that majority of the respondents [28%]prefer JK tyer for rear wheel because of smooth driving. 18% of respondents preferAppolo tyre for better mileage.10% of respondents prefer MRF tyre for quick service.27% of the respondents prefer Birla tyre for better claim policy. 17% of the respondentsprefer other brands. Ambedkar Institute of Management Studies 48
  • EXHIBIT-2.2Table showing Best brand as per respondents Table-2.2 Brand No. Of Respondents Per Cent JK 29 29% APPOLO 27 27% MRF 5 5% BIRLA 27 27% OTHERS 12 12% TOTAL 100 100% Source- Primary data Fig-2.2 Best brand as per respondents 12% 29% JK APPOLO M RF 27% BIRLA OTHERS 5% 27%Interpretation: From the above table it is shown that majority of the respondents [29%]prefer JK tyer because of smooth driving, better quality and reasonable price, etc. 27%of respondents prefer Appolo tyre for better mileage, good appearance.5% ofrespondents prefer MRF tyre for quick service, flexibility. 27% of the respondents preferBirla tyre for better claim policy, load capacity. 12% of the respondents prefer otherbrands. Ambedkar Institute of Management Studies 49
  • EXHIBIT-2.3Table showing Reason behind the selected brand as perrespondents Table-2.3 Particular No. Of Respondents Per Cent QUALITY 29 29% PRICE 23 23% CARRYING 27 27% CAPACITY DURABLITY 21 21% TOTAL 100 100% Source- Primary data Fig-2.3 Reason behind selected brand as per respondents 21% 29% QUALITY PRICE CARRING CAPICITY 27% DURABLITY 23%Interpretation: From the above table it is shown that 29% of the respondents prefer thebrand for better quality, 27% of the respondents prefer the brands for better carryingcapacity, 23% of the respondents prefer the brand for price and 21% of the respondentsprefer for durability. Ambedkar Institute of Management Studies 50
  • EXHIBIT-2.4Table showing Qualities of selected brand as per respondents Table-2.4 Particular No. Of Respondents Per Cent SERVICE 24 24% LESS EROSION 16 16% CLAIM 31 31% MILEAGE 19 19% OTHERS 10 10% TOTAL 100 100% Source- Primary data Fig-2.4 Quality of selected brand as per respondents 10% 24% SERVICE 19% LESSEROSION CLIAM MILLAGE 16% OTHERS 31%Interpretation: 31% of the respondents prefer the brand for better claim, 24% of therespondents prefer the brand for better service, 19% of the respondents prefer the brandfor better mileage, 16% of the respondents prefer the brand for less erosion and 10%of the respondents prefer the brand for other reason. Ambedkar Institute of Management Studies 51
  • EXHIBIT-2.5Table showing Best claim policy of selected brand as perrespondents Table-2.5 Brand No. Of Respondents Per Cent JK 19 19% APPOLO 30 30% MRF 17 17% BIRLA 23 23% OTHERS 11 11% TOTAL 100 100% Source- Primary data Fig-2.5 Best claim policy of selected brand as per respondents 11% 19% JK 23% APPOLO MRF BIRLA 30% OTHERS 17%Interpretation: From the above table it is shown that 30% of the respondents preferAppolo for better claim policy, 23% of the respondents prefer Birla, 19% of therespondents prefer JK tyre, 17% of the respondents prefer MRF and 11% of therespondents prefer other brands for better claim policy. Ambedkar Institute of Management Studies 52
  • EXHIBIT-2.6Table showing Best claim policies of JK as per respondents Table-2.6 Particular No. Of Respondents Per Cent QUICK 19 19% MORE FACILITY 20 20% RELIABLE 17 17% NO PENDING 21 21% GURANTEE 23 23% TOTAL 100 100% Source- Primary data Fig-2.6 Best claim policy as per respondents 23% 19% QUICK MORE FACILITY RELIABLE 20% NO PENDING 21% GURANTEE 17%Interpretation: From the above table it is shown that 23% of the respondents prefer JK’sguarantee policy, 21% of the respondents prefer no pending policy, 20% of therespondents prefer more facility, 19% of the respondents prefer quick policy, 17% of therespondents prefer more reliable policy. Ambedkar Institute of Management Studies 53
  • EXHIBIT-2.7(a)Table showing Brand preferred for heavy load capacity Table-2.7(a) Brand No. Of Respondents Per Cent JK 26 26% APPOLO 18 18% MRF 7 7% BIRLA 29 29% OTHERS 20 20% TOTAL 100 100% Source- Primary data Fig-2.7(a) Brand prefered for heavy load capacity 20% 26% JK APPOLO MRF BIRLA 29% 18% OTHERS 7%Interpretation: From the above table it is shown that 29% of the respondents preferBirla for heavy load capacity, 26%of the respondents prefer JK, 20% of the respondentsprefer other brand, 18% of the respondents prefer Appolo tyre and 7% of the respondentsprefer MRF tyre for heavy load capacity. Ambedkar Institute of Management Studies 54
  • EXHIBIT-2.7(b)Table showing Brand preference for medium load capacity Table-2.7(b) Brand No. Of Respondents Per Cent JK 27 27% APPOLO 26 26% MRF 8 8% BIRLA 14 14% OTHERS 25 25% TOTAL 100 100% Source- Primary data Fig-2.7(b) Brand prefered for m edium load capacity 25% 27% JK APPOLO MRF BIRLA 14% OTHERS 8% 26%Interpretation: From the above table it is shown that 27% of the respondents prefer JKtyre for medium load capacity, 26% of the respondents prefer Appolo tyre, 25% of therespondents prefer other brand, 14% of the respondents prefer Birla and 8% of therespondents prefer MRF for medium load capacity. Ambedkar Institute of Management Studies 55
  • EXHIBIT-2.7(c)Table showing Brand preference for normal load capacity Table-2.7(c) Brand No. Of Respondents Per Cent JK 24 24% APPOLO 23 23% MRF 10 10% BIRLA 23 23% OTHERS 20 20% TOTAL 100 100% Source- Primary data Fig-2.7(c) Brand prefered for norm al load capacity 20% 24% JK APPOLO MRF BIRLA 23% 23% OTHERS 10%Interpretation: From the above table it is shown that 24% of the respondents prefer JKtyre for normal load capacity, both 23% of the respondents prefer Appolo and Birla, 20%of the respondents prefer other brand and 10% of the respondents prefer MRF for normalload capacity. Ambedkar Institute of Management Studies 56
  • EXHIBIT-2.8Table showing Motivating factors behind the level ofsatisfaction Table-2.8 Particular No. Of Respondents Per Cent HANDLING 13 13% APPEARANCE 28 28% TRACTION 16 16% RIDE 16 16% DURABILITY 27 27% TOTAL 100 100% Source- Primary data Fig-2.8 Factors affecting behind the level of satisfaction as per respondents 13% 27% HANDLING APPEARANCE TRACTION 28% RIDE 16% DURABILITY 16%Interpretation: From the above table it is shown that 28% of the respondents aresatisfied with the appearance of the tyre, 27% of the respondents are satisfied with thedurability of the tyre, both 16% of the respondents are satisfied with the traction and rideof the tyre and 13% of the respondents are satisfied with the handling capacity of thetyre. Ambedkar Institute of Management Studies 57
  • Findings Suggestions ConclusionAmbedkar Institute of Management Studies 58
  • Findings1. Customers are loyal to different brands in different areas.2. In claim policy JK Tyre beat others by mile.3. Durability of JK Tyre is satisfactorySuggestions1. Some customers are not satisfied with the claim policies as it is not properly clear to the customers why the claim has been rejected.2. Today more people prefer guaranteed tyres like “JET TRAK 39”, “BIRLA SAMSON” so JK can modify its guaranty policy to attract more customers.3. Need to increase relationship with customersConclusionJK is one of the best Tyre manufacturing companies in India. Where theimprovement is required is the relationship with its potential customer. Alsoin some segment JK has not any strong hold compare to APOLLO, CEAT,BIRLA and others. So it can further increase its market share throughcustomer relationship program and brand awareness strategy. Ambedkar Institute of Management Studies 59
  • BIBLIOGRAPHYMarketing management, Rajan SaxsenaMarketing management, Philip Kittlerwww.indiacar.netwww.jktyre.comwww.businessstandard.com Ambedkar Institute of Management Studies 60