2. Assuring Values of Service
Introduction-
As the Indian automotive and construction sector develops at
a fast pace due to achievements of the giants of those sectors, there is an
utmost need of manufacturing of subsidiary parts of good quality at large
scale. Our company aims at providing the requisite parts as demanded with
proper specifications at sustainable prices. We duly support the ‘’Make in
India’’ campaign as the parts are totally manufactured and developed within
the boundary of the country.
Sales prediction and product selection –
AVS Inc. Is going to manufacture the following subsidiary
parts.
Coil Damper
Roller bearing
Knuckle joint and
M.S. Disc brakes.
Coil damper Sales expected
Four wheelers 30-40%
Two wheelers 30-40%
Three wheelers 5-10%
Heavy vehicles 7-10%
Roller bearing Sales
expected
Automotive 30-40%
Aerospace 5-10%
Rail road 30-40%
Machine tools 5-10%
3. M.S. Disc Brakes Sales expected
2 wheelers 40-45%
4 wheelers 30-40%
Railways 10-15%
Plant layout-
Marketing mix-
We consider the four points in our marketing strategy,
1. Product or service offered:- We are producing four products each having
a warranty period of 5 years.
2. Pricing:- We have set a standard price for our products depending on
optimum cost of manufacturing and market demand.
Knuckle joint Sales expected
Bicycle chains 6-10%
Tractors 10-20%
Trusses 2-5%
Automotive
wipers
2-5%
Cranes 20-25%
Railroad 10-20%
Earth movers 10-15%
4. 3. Promotion: - Advertisement featuring our company and products can be
seen in electronic media and print media and also through social
networking sites.
4. Distribution: - Company is set close to market place so that it can have
fewer expenses on supplies and the interaction between consumer and
market can be observed properly and we can easily adapt any changes
regarding demand and price policy in the market. We have strong
distribution network and our aim is to meet the demands at short time
interval.
Break even analysis-
Total no of units produced = 130000
Fixed cost = 14500000 Ojass coins (plant cost + given fixed cost)
Sales = 303750000 Ojass coins
Variable cost = 177314468.5 Ojass coins (taxation + labour and employee+
marketing+misc.+ Warranty cost)
Break-even point of AVS Inc. = 14910 units
(Break-even point of M.S. brake disc = 3441)
(Break-even point of Coil damper = 2294)
(Break-even point of Knuckle joint = 4014)
(Break-even point of Roller bearing = 5161)
