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1
A
PROJECT REPORT
ON
MARKETING MIX OF CEAT LIMITED
(Dealer: Satyam Sales Pvt. Ltd)
PREPARED BY
PRITESH RADADIYA
GUIDED BY...
2
DECLARATION
I undersigned, Mr.PRITESH RADADIYA student of T.Y.B.B.A. here by declare
that the project work presented in ...
3
ACKNOWLEDGEMENT
First of all I am thankful to the Satyam sales pvt. ltd of CEAT Limited for giving me
this opportunity.
...
4
PREFACE
B.B.A. is a professional course of management study and management itself is an
art. Art involves the practice, ...
5
Main INDEX
NO. PARTICULARS
1 General information
2 Marketing department
3 Marketing mix
4 Future plan
5 Mile stone
6 SWO...
6
GENERAL
INFORMATION
7
INDEX
NO PARTICULAR
1 Introduction to the firm
2 History of the firm
3 Overview
4 Covered area
5 Brand name & team
6 Vis...
8
INTRODUCTION TO THE FIRM
CEAT Limited is a part of the RPG Goenka group. It is the second largest tyre
manufacturer in t...
9
HISTORY OF THE FIRM
CEAT Limited is tyre manufacturing company founded in Italy as CEAT Tyre by
Virginio Bruni Tedeschi....
10
OVERVIEW
Type Public
Industry Tyres & tubes
Founded 1958
Headquarter Mumbai, India
Key people R.P.Goenka, Chairman
H.V....
11
COVERED AREA
 MARKET SHARE
 CEAT TYRE has about 20% of the local truck and light truck tyre market.
 It had 11% mark...
12
BRAND NAME & TEAM
BRAND NAME
CEAT TYRE
REGISTERED OFFICE
463 Dr Annie Besant Road,
Worli,
Mumbai,
Maharashtra-400030
Ph...
13
VISION & MISSION
The mission statement articulates the company's purpose both for those in the
organization and for the...
14
SIZE AND TYPE OF THE ORGANIZATION
 SIZE
There are three types of the organization. These are as under:
(1) Large scale...
15
MARKETING
DEPARTMENT
16
INDEX
NO. PARTICULAR
1 Introduction
2 Importance of department in organization
3 Organizational chart
4 Marketing of th...
17
INTRODUCTION
Marketing is the basic reason for the existence of a business organization. In the age
of fast changes, Ma...
18
IMPORTANCE OF DEPARTMENT IN ORGANIZATION
For a successful business it is important that marketing plays a pivotal role....
19
MARKETING OF THE PAST AND PRESENT
Traditional experts view on marketing is a very narrow sense.
According to them “Mark...
20
ADVERTISING
“Advertising is any paid form of non-personal presentation and promotion of ideas,
goods and services by an...
21
MARKET SHARE
 MARKET SHARE
 CEAT TYRE has about 20% of the local truck and light truck tyre market.
 It had 11% mark...
22
COMPETITORS
Today’s world is full of competitors. It is very difficult to survive in this competitive
world. Competitio...
23
24
INDEX
SR.NO TOPICS
1. Introduction
2. Meaning ,definition and element
3. Element of marketing mix
Product mix
Price m...
25
INTRODUCTION
In common parlance, Marketing is process of selling something at shop or market
place, but according to mo...
26
DEFINITION AND ELEMENT
“Marketing is process of planning executive the conception, pricing and distribution
of ideas, g...
27
PRODUCT MIX
28
INDEX
SR.NO TOPICS
1. Introduction
2. Product mix of the company
3. New product & reason to develop
29
INTRODUCTION
Product is an engine of vehicle of the company for providing consumer
satisfaction. The product is most im...
30
PRODUCT MIX
‘Product mix is the set of all product line and items that a particular seller
offers for sale to the buyer...
31
LIST OF THE PRODUCT MIX
1) CEAT Zoom
2) CEAT Grip
3) CEAT Liittle master
4) CEAT milaze
5) CEAT secura sport
6) CEAT Ve...
32
PROCESS OF THE NEW DEVELOPMENT PRODUCT
Idea Generation
Idea Screening
Concept Development and Testing
Business Analysis...
33
NEW DEVELOPMENT & REASON
The typical new product development process followed by CEAT
tyre is as follows:
IDEA GENERATI...
34
35
PRICE MIX
36
INDEX
SR.NO TOPICS
1. Pricing as a decision
2. Company’s general pricing policy
3. PLC & pricing strategy
4 Factor affe...
37
PRICING AS A DECISION
Skimming Price Policy:
This strategy involves setting a very high price, so that in the
initial s...
38
COMPANYS GENERAL PRICING POLICY
Companies revolves the pricing issue by selecting a pricing
method. the pricing method ...
39
PRODUCT LIFE CYCLE AND PRICING STRATEGY
From the time the produce idea is been during its development
and up to the tim...
40
FACTOR AFFECTING TO PRICING POLICY
The price fixed by the seller’s own sentiment may not
necessarily be accepted in the...
41
So far as P.P.L. is concerned, the factors which affect the
pricing policy can be summarized as under:
Internal factors...
42
Product perishability
While fixing the prices, the decision makers should not
underestimate the perishable quality of t...
43
Competitor’s price in the Market
.
Thus, above all factors are taken into account while fixing
prices for the products....
44
PROMOTION MIX
45
INDEX
SR.NO TOPICS
1. Introduction
2. Elements of promotion mix
3. Advertising
4. Sales promotion
46
INTRODUCTION
Promotion is a form of communication to accept ideas, products, and services
and hence persuasive communic...
47
ADVERTISING
Promote sales because it is only way to commercialize the product. Any
activity towards sales-promotion may...
48
SALES PROMOTION
Sales promotion is a key ingredient in marketing campaigns. Sales promotion
consists of diverse collect...
49
PLACE
MIX
50
INDEX
SR.NO TOPICS
1. Introduction
2. Types of distribution channel
3. Channel of distribution
4. Factors affecting to ...
51
INTRODUCTION
The path through which goods and services travel from the vendor to the
consumer or payments for those pro...
52
TYPES OF DISTRIBUTION CHANNEL
Types of distribution channel are as under:
 Manufacturer to Customer
Manufacturer makes...
53
 Manufacturer to Agent to Wholesaler to Retailer to Customer
Distribution that involves more than one intermediary inv...
54
CHANNEL OF DISTRIBUTION
The Distribution Channel is the chain of intermediaries, each of them passing on
the product or...
55
FACTORS AFFECTING TO CHANNEL DECISION
The selection of distribution is affected by many of factors, which play
signific...
56
FINDINGS
&
ANALYSIS
57
QUESTIONNAIRE
MARKETING MIX OF CEAT TYRE
1 NAME :
2 GENDER: Male Female
3 OCCUPATION:
4 How do you come to know about C...
58
7 Which is a major feature you consider to purchase tyre ?
Excellent Very Good Average Poor Very Poor
Quality
Features
...
59
12 According to you, Rate the promotional activity of CEAT TYRE?
Very
Effective
Effective Less
Effective
Not
Effective
...
60
Q.1 Since how many years, are you using CEAT Tyre?
 Aim of question:
The objective of this question is to know the loy...
61
Q-2 In which of the following vehicle, are you using CEAT Tyre?
 Aim of question:
The objective of this question is to...
62
Q.3 Which type of CEAT Tyre, are you using?
 Aim of question:
The objective of this question is to know that what type...
63
Q.4 According to you, what if life period of CEAT Tyre?
 Aim of question:
The aim of this question is to know the life...
64
Q.5 According to you, rate the following parameters?
 Aim of question:
The aim of this question is to know what is in ...
65
 Analysis:
From the above data, majority people say quality of product is
excellent and some less people say quality o...
66
Q.6 According to you, rate the price of CEAT tyre?
 Aim of question:
The objective of this question is to know that pr...
67
Q.7 Is CEAT tyre available at your convenient place?
 Aim of question:
The aim of this question is to know that the di...
68
Q.8 According to you, rate the promotional activity of CEAT tyre?
 Aim of Question:
The objective of this question is ...
69
 Chart:
 Analysis:
From the above information, we can say that majority people say
that advertising is effective and ...
70
ALL OVER
FINDINGS
71
ALL OVER FINDINGS
In my research, I found many point which are as under,
 CEAT tyre is famous in the country.
 Life p...
72
FUTURE PLAN
73
FUTURE PLAN
CEAT plans to set up two plants, one in Maharashtra for specialty tyres
and the other for radial tyres for ...
74
MILE STONE
75
MILE STONE
 Awards
CEAT received 'Innovative Franchise Model' Award to CEAT Shoppe by
the Franchising Association of I...
76
SWOT ANALYSIS
77
SWOT ANALYSIS
 Strength
 Establish brand name.
 Extensive distribution network
 Research & development initiation
...
78
79
INDEX
SR.NO TOPICS
1. Atmosphere
2. Pricing structure
80
ATMOSPHERE
CEAT tyre is unique unit in itself. Today in tyre industry the firms
believes that to give standard quality ...
81
PRICING STRUCTURE
Price is only element in marketing mix that creates sales revenue for
the company. Pricing is a very ...
82
CONCLUSION
83
CONCLUSION
During this marketing research, I have learnt lot of thing. It was really a
great experience, while doing pr...
84
SUGGESTION
85
SUGGESTION
 The price of CEAT tyre is high compare with its competitor. So they
should decrease their price.
 They sh...
86
BIBLIOGRAPHY
87
BIBLIOGRAPHY
 BOOKS
Marketing management - Philip Kotler
 SITES
www.studymode.com (for distribution channel)
www.ceat...
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Ceat tyre PROJECT REPORT

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Ceat tyre PROJECT REPORT

  1. 1. 1 A PROJECT REPORT ON MARKETING MIX OF CEAT LIMITED (Dealer: Satyam Sales Pvt. Ltd) PREPARED BY PRITESH RADADIYA GUIDED BY Prof. JATIN SETH COLLEGE VIVEKANAND COLLEGE OF COMP. SCIENCE & MGT SUBMITTED TO: SAURASHTRA UNIVERSITY, RAJKOT ACADEMIC YEAR 2013-2014
  2. 2. 2 DECLARATION I undersigned, Mr.PRITESH RADADIYA student of T.Y.B.B.A. here by declare that the project work presented in this report is my own work and has been carried out under the supervision of prof. Jatin sheth, the professor of Geetanjali college. This work has not been submitted previously to any other university for examination or any other purpose. Date: Place: signature of student,
  3. 3. 3 ACKNOWLEDGEMENT First of all I am thankful to the Satyam sales pvt. ltd of CEAT Limited for giving me this opportunity. I should also thanks to Mr. Jatin sheth for his guidance & co-operation in making this project report. Without his guidance it could not be possible for me to make this project. I should also to all those people who have helped me directly or indirectly in making this project report.
  4. 4. 4 PREFACE B.B.A. is a professional course of management study and management itself is an art. Art involves the practice, so it is necessary for B.B.A. student to know practically how the business runs. To fulfill the same purpose, a practical has been entered in this course, which involves the study of any organization and making complete report on it. So in now a day, practical knowledge is very important. The chief objective of practical training is to get an outlook of what we study theoretically inside the classroom. It also helps to develop the awareness about business practices among the student. I have taken up this project report on marketing mix of Ceat tyre.
  5. 5. 5 Main INDEX NO. PARTICULARS 1 General information 2 Marketing department 3 Marketing mix 4 Future plan 5 Mile stone 6 SWOT Analysis 7 My observations 8 Suggestion 9 Conclusion 10 Bibliography
  6. 6. 6 GENERAL INFORMATION
  7. 7. 7 INDEX NO PARTICULAR 1 Introduction to the firm 2 History of the firm 3 Overview 4 Covered area 5 Brand name & team 6 Vision & mission 7 Size &types of the organization
  8. 8. 8 INTRODUCTION TO THE FIRM CEAT Limited is a part of the RPG Goenka group. It is the second largest tyre manufacturer in the country after MRF. It manufactures over 10 billion tyres every year & enjoys a major market share in a light truck and truck tyre market. CEAT Limited offers widest range of tyres to all user segments and manufacture world class radial for all Indian vehicles including: heavy duty trucks and buses, light commercial vehicles, earthmovers, forklifts, tractors, trailers, car, motorcycles, scooter and auto rickshaws. CEAT – Cavi Electrici Affini Torino
  9. 9. 9 HISTORY OF THE FIRM CEAT Limited is tyre manufacturing company founded in Italy as CEAT Tyre by Virginio Bruni Tedeschi. The company established its manufacturing in India in 1958 and was sold to Pirelli in 1970. The company’s Indian division was then taken over by RPG enterprise in the year 1982, which also got the rights to CEAT brand and renamed the company as CEAT Limited. Its tagline is “take it on “
  10. 10. 10 OVERVIEW Type Public Industry Tyres & tubes Founded 1958 Headquarter Mumbai, India Key people R.P.Goenka, Chairman H.V.Goenka, Paras K. Chowdhary, Managing Director Website www.ceat.in
  11. 11. 11 COVERED AREA  MARKET SHARE  CEAT TYRE has about 20% of the local truck and light truck tyre market.  It had 11% market share in 2010 of Indian tyre industry.  It had 12% market share in 2011 of Indian tyre industry.  MARKET SEGMENT There are many segments in which CEAT Limited entered. These are as under:  Commercial segment i.e. Trucks, Buses  Passenger car segment i.e. Cars, Jeep  Specialty segment i.e. Earthmovers & Forklifts  Farm segment i.e. Tractor & Trailers  Motorcycles, Auto rickshaws etc.  MARKET AREA Ceat tyre is covered global market as well as the local market. Ceat limited have many regional area like Mumbai, Gujarat, Uttar Pradesh, Tamilnadu and all india. Ceat limited have many global area like U.K, U.S.A, Canada, Australia, and many other country.
  12. 12. 12 BRAND NAME & TEAM BRAND NAME CEAT TYRE REGISTERED OFFICE 463 Dr Annie Besant Road, Worli, Mumbai, Maharashtra-400030 Phone : 91-22-24930621 Fax : 91-22-66606039 E-mail : investors@ceat.in Web : http://www.ceattyres.in KEY PEOPLE R P Goenka , Chairman H V Goenka , Vice Chairman Paras K Chowdhary , Whole-time Director Anant Vardhan Goenka , Managing Director
  13. 13. 13 VISION & MISSION The mission statement articulates the company's purpose both for those in the organization and for the public. The difference between a mission statement and a vision statement is that a mission statement focuses on a company’s present state while a vision statement focuses on a company’s future. To be amongst the most profitable tyre companies in India by 2016 through:  Market Leadership in select categories in India and  Market Leadership in significant countries outside India  VISION “ CEAT will at all times provide total customer satisfaction through products and services of highest quality and reliability.”  MISSION “ To nurture an exciting and challenging work environment with fairness and transparency.”
  14. 14. 14 SIZE AND TYPE OF THE ORGANIZATION  SIZE There are three types of the organization. These are as under: (1) Large scale organization (2)Medium scale organization (3)Small scale organization CEAT tyre is a large scale organization. Size: 5001-10000 Employees Turnover: 2500-5000 Crores  TYPE There are five forms of organization. (1) Sole proprietorship (2) Partnership firm (3) Private limited (4)Public limited (5)Joint stock company CEAT Ltd. is private limited company.
  15. 15. 15 MARKETING DEPARTMENT
  16. 16. 16 INDEX NO. PARTICULAR 1 Introduction 2 Importance of department in organization 3 Organizational chart 4 Marketing of the past and present 5 Advertising 6 Market share 7 Competitors
  17. 17. 17 INTRODUCTION Marketing is the basic reason for the existence of a business organization. In the age of fast changes, Marketing is the spring board of all activities. The success of a business depends largely on the effectiveness with its marketing strategy are formulated & implemented. Marketing is said to be the eyes &ears of a business organization. Because it keep the business in close contact with its economic, political, social & technological environment & informs it of events that can influence its activities as per requirements of the market. Thus, the marketing department has a key role in the company.
  18. 18. 18 IMPORTANCE OF DEPARTMENT IN ORGANIZATION For a successful business it is important that marketing plays a pivotal role. Marketing department is one of the most important components of a business’s survival in the market. The main aims of the marketing department revolve around understanding the customers and their needs. Marketing activities involve designing, promoting, pricing a product according to the needs of the market and customers. Today the competition is gradually increasing with the increase in customers’ expectations and needs. The aim of the marketing department is to ensure that the changing requirements of the customers are well understood and product or service is developed or altered to meet these requirements. Customers’ buying decision is influenced by various factors just as product features, price, quality packaging, and prompt delivery and after sales support. The aim of marketing department is to ensure that all these criteria are met and customers are satisfied. Marketing department aims to work towards finding out the present and future needs of the customers. In order to anticipate future needs, proper analysis of customer trends should be undertaken. In order to gain a competitive advantage it is necessary that the firm has the capability to develop new products quickly.
  19. 19. 19 MARKETING OF THE PAST AND PRESENT Traditional experts view on marketing is a very narrow sense. According to them “Marketing is a performance of business activity that direct the flow of goods and services from producers to consumer”. Hence, traditional concept is product oriented and it neglects the importance of social responsibility and after sales service. But in today’s world marketing mix “The process of discovery and translating consumer needs and wants into product specifications, creation demand and services, and then turn expanding the demand”. In short it includes all those activities which are under taken to fulfill the consumer needs and wants. In today’s world business unit follow societal marketing concept which calls upon marketer to build social ethical consideration into their marketing factors they balance between profit, consumers want, satisfaction and public interest.
  20. 20. 20 ADVERTISING “Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.” - AMA (American Marketing Association) The word advertising is derived from a Latin word ‘advertere’, which means turn attention towards a specific thing. Advertisement is a form of mass communication. Advertisement presents message about product availability in the market. It is general term used for any and all types of publicity. Company is done advertising by the regional News paper, Television, magazine and poster.
  21. 21. 21 MARKET SHARE  MARKET SHARE  CEAT TYRE has about 20% of the local truck and light truck tyre market.  It had 11% market share in 2010 of Indian tyre industry.  It had 12% market share in 2011 of Indian tyre industry.
  22. 22. 22 COMPETITORS Today’s world is full of competitors. It is very difficult to survive in this competitive world. Competition increases very fast in any business. Competition is very important for the development of the economy and country. COMPETITORS OF CEAT TYRE MRF Apollo Tyres Balkrishna Inds. Goodyear India JK Tyres & Inds.
  23. 23. 23
  24. 24. 24 INDEX SR.NO TOPICS 1. Introduction 2. Meaning ,definition and element 3. Element of marketing mix Product mix Price mix Promotion mix Place mix 4. Factor affecting marketing mix
  25. 25. 25 INTRODUCTION In common parlance, Marketing is process of selling something at shop or market place, but according to modern marketing concepts selling is not an important part of marketing but it is only a tip at marketing iceberg. The aim of the marketing for any of the company is to make their sales superfluous. Marketing occupies an important position in any organization. Traditional viewpoint was that the customer would accept whatever product the seller presented to him. However, according to Modern viewpoint is to focus on the consumer needs & wants. Marketing deals with identifying and meeting consumer needs. One of the shortest definitions of marketing is “Meeting Needs Profitability” producer does not produce what they like but produce what the consumer wants.
  26. 26. 26 DEFINITION AND ELEMENT “Marketing is process of planning executive the conception, pricing and distribution of ideas, goods, services to create exchanges that satisfy individuals and organizational goals”. Philip Kotler. According to Phillp Kotler, “Marketing Mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market”. Marketing mix is the various marketing tools that marketer use to sell its products. There are 4 P’s of marketing Mix. A list of the relevant market forces and the element of the marketing mix would be helpful in analyzing marketing problems. The main aim of all marketing activities is “profitability”. The marketing manger should therefore devise such a marketing mix that will give the optimum profit for the product he has to market. By blending this marketer make a proper plan of action to push its products in the market Product Price Promotio n Place
  27. 27. 27 PRODUCT MIX
  28. 28. 28 INDEX SR.NO TOPICS 1. Introduction 2. Product mix of the company 3. New product & reason to develop
  29. 29. 29 INTRODUCTION Product is an engine of vehicle of the company for providing consumer satisfaction. The product is most important conversion by which any firm can prove its efficiency intention of quality product is a symbol of the business firm product is center point around which all the activity of the business i.e. finance, marketing, production etc. are woven without a product nothing to sell nothing to price nothing to run a business. A range of associated products that yields larger sales revenue when marketed together than if they were marketed individually or in isolation from others.
  30. 30. 30 PRODUCT MIX ‘Product mix is the set of all product line and items that a particular seller offers for sale to the buyer.’ ‘Product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed though same types of outlets of fall within a given price range’. A company’s product mix has a certain width, length, depth, and consistency.  The width of product mix offers to how many different product lines the company carries.  The length of product mix refers to total number of items in its product mix.  The depth of product mix refers to the total number of items in its product mix.  The consistency of product mix refers to how variants are referred of each product in the line.
  31. 31. 31 LIST OF THE PRODUCT MIX 1) CEAT Zoom 2) CEAT Grip 3) CEAT Liittle master 4) CEAT milaze 5) CEAT secura sport 6) CEAT Vertigo Sport
  32. 32. 32 PROCESS OF THE NEW DEVELOPMENT PRODUCT Idea Generation Idea Screening Concept Development and Testing Business Analysis Beta Testing and Market Testing Technical Implementation Commercialization New Product Pricing
  33. 33. 33 NEW DEVELOPMENT & REASON The typical new product development process followed by CEAT tyre is as follows: IDEA GENERATION: New Products are born from ideas. Before searching ideas, top management should define the products and markets and should also state the objectives for NPD.  New products launch by CEAT ltd are as under: Truck - High mileage , High Load front tyre (10.00-20 RD 13) High Mileage Tyres (9.00-20 MILE XL RIB and 11.00-20 MILE XL RIB) LCV - High Mileage Tyres (7.00-15 MILE XL RIB and 7.00-16 MILE XL RIB)  Reasons for new product development: - To increase share in the market. - To increase customer of company in the market. - To face the competition.
  34. 34. 34
  35. 35. 35 PRICE MIX
  36. 36. 36 INDEX SR.NO TOPICS 1. Pricing as a decision 2. Company’s general pricing policy 3. PLC & pricing strategy 4 Factor affecting pricing
  37. 37. 37 PRICING AS A DECISION Skimming Price Policy: This strategy involves setting a very high price, so that in the initial stage cream of demand may be skimmed and enormous profits made for an indefinite period or the price may be covered later in order to tap other segments of the market. Penetration Price Policy: In this strategy a low price is set to reach the market immediately. CEAT tyre has adopted penetration price policy for their items of biscuits and confectionery, because in consumer products there are many competitors prevailing in the market. So it is not possible to set a very high price in the initial period. Considering their competitors policy CEAT tyre has adopted penetration price policy.
  38. 38. 38 COMPANYS GENERAL PRICING POLICY Companies revolves the pricing issue by selecting a pricing method. the pricing method then lead to a specific price. As there are many pricing methods which are as under :  Mark – up Pricing  Target Return Pricing  Perceived Value Pricing  Going Rate Pricing  Sealed Bid Pricing
  39. 39. 39 PRODUCT LIFE CYCLE AND PRICING STRATEGY From the time the produce idea is been during its development and up to the time it is launched in the market, a product goes through the various phases of its development. Its life begins with its market introduction, next it goes through a period during which its market grown rapidly. Ultimately it resides marketing, maturity after which its market declines and finally the product dies. The product life cycle may move through five stages  Introductory, pioneering as development stage.  Growth or the market acceptance stage.  Market Maturity stage  The Saturation stage  The Decline stage In CEAT Tyre Ltd. the product of the unit has reached at growth stage. In this stage, the product is produced in significant quantity and put in the market without delay. Here in this unit also the CEAT Tyre is having ready stock working with them. As the company CEAT Tyre has reached as its growth stage there are large number of competitors entered in the product. CEAT Tyre is having a number of distribution outlets and that’s why the products of CEAT Tyre fixed at economic rate.
  40. 40. 40 FACTOR AFFECTING TO PRICING POLICY The price fixed by the seller’s own sentiment may not necessarily be accepted in the market. Historically, prices were set up by buyers & sellers negotiating with each other. Seller would ask for higher price than they expected to receive & buyers world offer less than they except to pay. Through bargaining. They world arrive at an acceptable price. Today, most sellers set one price for all buyers. Yet, many companies do not handle pricing well. There are number of factors which affect the pricing policy of the company. If the entrepreneur would not give much importance these factors, he may not be able to survive in the consumer’s markets. The factors affecting the pricing policy can be broadly deviled into two categories.  Internal factors which include the company’s marketing objectives, marketing – mix strategy, costs & organization etc.  External factors which include the nature of the market & demand, competition and other environmental elements.
  41. 41. 41 So far as P.P.L. is concerned, the factors which affect the pricing policy can be summarized as under: Internal factors Cost of Production At the time of marketing the pricing. The manager has to attempt to optimize the cost. Cost optimization means setting of reasonable prices which provide equitable return on capital at the same tome suit the consumer’s purchasing power. Distribution cost P.P.L. are transported to a very distance, naturally the distribution cost would be high. Again, the costs on middlemen clue generally high because the profit given to the would also be included in to them would also be included in the cost. Normal Profit Margin The main objective of any company is to earn maximum profit. Here, also the margin of profit is taken into account while fixing the prices. But the prices are changed at the cost of society.
  42. 42. 42 Product perishability While fixing the prices, the decision makers should not underestimate the perishable quality of the products. The unit also gives much stress on this factor & fixes prices accordingly. External factors: Demand of the Product The decision makers of the unit are always in trying to study the nature & magnitute of demand & according the level of demand, the unit fixes prices. Socio – Economic Environment Rise in the level of income or in the standard of living may affects the pricing policy. The decision makers may prefer to increase the price, where there is a high standard of living & vice versa. Government Regulations The decision makers of the unit are always keep in the mind the regulations introduced by the Government. This factor requires more care & precaution.
  43. 43. 43 Competitor’s price in the Market . Thus, above all factors are taken into account while fixing prices for the products. Ultimately, consumer perceptions of price and value determine whether the company has set the right price, if the price is higher than the sum of the perceived values, consumer will not buy the product.
  44. 44. 44 PROMOTION MIX
  45. 45. 45 INDEX SR.NO TOPICS 1. Introduction 2. Elements of promotion mix 3. Advertising 4. Sales promotion
  46. 46. 46 INTRODUCTION Promotion is a form of communication to accept ideas, products, and services and hence persuasive communication becomes heart of promotion. It is said that, “In a competitive market without promotion nothing can be sold” Promotion has been defined as “The co-ordinate self- initiated efforts to establish channels of information and persuasion to facilitate sale of goods or services or to acceptance of ideas or points of view.” The promotion mix includes four ingredients viz.  Advertising  Publicity  Personal selling  Sales promotion
  47. 47. 47 ADVERTISING Promote sales because it is only way to commercialize the product. Any activity towards sales-promotion may be called promotional activities. Such activities include advertising. “Any paid form of non-personal communication of ideas, goods or services by business firms identified in advertising message intended to lead to sale immediately or eventually.” -American Marketing Association Today, no business survives without advertisement. Advertisement helps to increase sales goals and to give a tough fight to competitors. The problem or else we can say question is not whether to do advertisement or not? But question is that how to advertise with a view to maximize returns on money invested. An advertisement can prove to be better when it is adequately planned, executed and constantly evaluated. As one knows advertisements prove of the great importance having many objectives. The main objectives of advertising are as given below:  Preparing a ground for new product  Creation of demand  Facing competition  Creating goodwill  Awareness to customers  Creating good brand image CEAT ltd gives advertising on television and in newspaper. List of the news paper: I. Times of India II. The Economics time III. The New Indian express IV. Maharastra Time
  48. 48. 48 SALES PROMOTION Sales promotion is a key ingredient in marketing campaigns. Sales promotion consists of diverse collection of incentive tools. Mostly short term, designed to simulate quicker or greater purchase of particular products or services by consumer or the trade. “Advertising offers a reason to buy; sales promotion offers an incentive to buy.” “Sales promotion is short term incentives to encourage purchase or sale of product or service.” CEAT ltd uses many ways and techniques of promoting sales. It has different activities for different class of distributors.
  49. 49. 49 PLACE MIX
  50. 50. 50 INDEX SR.NO TOPICS 1. Introduction 2. Types of distribution channel 3. Channel of distribution 4. Factors affecting to channel decision
  51. 51. 51 INTRODUCTION The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributors, agents and retailers. Each intermediary receives the item at one pricing point and movies it to the next higher pricing point until it reaches the final buyer. Coffee does not reach the consumer before first going through a channel involving the farmer, exporter, importer, distributor and the retailer also called the channel of distribution. It is a path traced in the direct or indirect, transfer of title to a products as it move from a producer to ultimate customers or industrial users. We can define the distribution channels as movement of goods and services between the point of production and point of consumption through organization that perform a variety of marketing activities. The route of the channel include both manufacturer and the consumer and intermediaries who are linked in the channel system by one or more of the marketing flows like transfer of title or ownership, physical movement of goods of merchandise, flow of money through payment of prices or so or transmission of marketing information. A distribution system has two sub divisions
  52. 52. 52 TYPES OF DISTRIBUTION CHANNEL Types of distribution channel are as under:  Manufacturer to Customer Manufacturer makes the goods and sells them to the consumer directly with no intermediary, such as a wholesaler, agent or retailer. Goods come from the manufacturer to the user without an intermediary. For example, a farmer may sell some produce directly to customers. For example, a bakery may sell cakes and pies directly to customers.  Manufacturer to Retailer to Consumer Purchases are made by the retailer from the manufacturer and then the retailer sells the merchandise to the consumer. This channel is used by manufacturers that specialize in producing shopping goods. For example, clothes, shoes, furniture and fine china. This merchandise may not be needed immediately and the consumer may take her time and try on the items before making a buying decision. Manufacturers that specialize in producing shopping goods prefer this method of distribution.  Manufacturer to Wholesaler to Customer Consumer’s can buy directly from the wholesaler. The wholesaler breaks down bulk packages for resale to the consumer. The wholesaler reduces some of the cost to the consumer such as service cost or sales force cost, which makes the purchase price cheaper for the consumer. For example, shopping at some of the warehouse clubs, the customer may have to buy a membership in order to buy directly from the wholesaler.
  53. 53. 53  Manufacturer to Agent to Wholesaler to Retailer to Customer Distribution that involves more than one intermediary involves an agent called in to be the middleman and assist with the sale of the goods. An agent receives a commission from the producer. Agents are useful when goods need to move quickly into the market soon after the order is placed. For example, a fishery makes a large catch of seafood; since fish is perishable it must be disposed of quickly. It is time consuming for the fishery to contact many wholesalers all over the country so he contacts an agent. The agent distributes the fish to the wholesalers. The wholesalers sell to retailers and then retailers sell to consumers.
  54. 54. 54 CHANNEL OF DISTRIBUTION The Distribution Channel is the chain of intermediaries, each of them passing on the product or service to another intermediary until it reaches the consumer. The term channel of distribution is used to denote the middle man engaged in moving goods from the place of production to the place of consumption. CEAT has one of the largest distribution networks for tyre in India. It has divided the Indian sub-continent into 33 regions and has set up a regional office for each region. The distribution channel of CEAT Limited is as under: Manufacturer Regional distribution system Carrying & forwarding agents Dealers Retailers Customers
  55. 55. 55 FACTORS AFFECTING TO CHANNEL DECISION The selection of distribution is affected by many of factors, which play significant role while choosing the channel for distribution. It may include the buying pattern of consumer, type of the product is perishable, or auto mobile, weight and bulk and it also depends on the company's resources. The main affecting factors are following: Organization objectives - If company objective is to have mass appeal and rapid market penetration. Type of product - Perishable products should have a short distribution channel, FMCG goods should have a wide reaching, intensive distribution channel. Nature and extent of market- Distribution to consumer market or industrial markets would be different channel structures. Existing channel for comparable product- company may chose its existing channel of distribution for relative product. Buying habit of customers- Understanding consumer needs and criteria for buying Channel Availability - Channels may not be available Thus these factors put effect on the selection of channel.
  56. 56. 56 FINDINGS & ANALYSIS
  57. 57. 57 QUESTIONNAIRE MARKETING MIX OF CEAT TYRE 1 NAME : 2 GENDER: Male Female 3 OCCUPATION: 4 How do you come to know about CEAT TYRE ? Television From relatives News paper Other 5 In which of the following vehicle, are you using CEAT TYRE? Car Tractor Bike Truck Auto Rickshaw Others 6 Which type of CEAT TYRE, are you using? Simple Tyre Radial Tyre Tubeless Tyre Vertigo Tyre Secura Tyre
  58. 58. 58 7 Which is a major feature you consider to purchase tyre ? Excellent Very Good Average Poor Very Poor Quality Features Design Durability performance 8 What is durability of CEAT TYRE, According to utilization ? Less than one year One to five year Above five year 9 According to You, Rate the price of CEAT TYRE? Low High Reasonable Very high 10 Is CEAT TYRE available at your convenient place? Yes No 11 From where you prefer to purchase CEAT TYRE ? Company showroom Online Retailer Other
  59. 59. 59 12 According to you, Rate the promotional activity of CEAT TYRE? Very Effective Effective Less Effective Not Effective Advertising Offers and Discount Attitude of Dealer and Staff 13 Suggestion :
  60. 60. 60 Q.1 Since how many years, are you using CEAT Tyre?  Aim of question: The objective of this question is to know the loyalty of customer towards company’s product.  Findings: YEAR USER < 1 year 20 1 to 5 year 62 > 5 year 18  Chart:  Analysis: Through the above data, we can say that majority people do have CEAT TYRE for more than 1 year and less than 5 year. There are few people who use CEAT TYRE for more than 5 year. 20% 62% 18% Time period <1 year 1 to 5 year >5year
  61. 61. 61 Q-2 In which of the following vehicle, are you using CEAT Tyre?  Aim of question: The objective of this question is to know that in which vehicle, they use CEAT Tyre.  Findings: VEHICLE USER VEHICLE USER Car 23 Tractor 7 Bike 55 Truck 3 Auto Rickshaw 4 others 8  Chart:  Analysis: Out of all sample, majority people use CEAT Tyre in Bike than in other vehicles. As per research, few people use tyre in truck, auto rickshaws in tractor. 23% 55% 4% 7% 3% 8% Car Bike Auto Rickshaw Tractor Truck Other
  62. 62. 62 Q.3 Which type of CEAT Tyre, are you using?  Aim of question: The objective of this question is to know that what type of CEAT Tyre, they are use.  Findings: TYRE USER TYRE USER Simple 50 Radial 9 Tubeless 20 vetigo 4 secura 17  Chart:  Analysis: Out of all the sample, majority people use simple tyre in their vehicles than compare with other tyre. Few people use vertigo tyre in their vehicles. 50% 20% 17% 9% 4% Tyre Simple Tubeless Secura Radial Vertigo
  63. 63. 63 Q.4 According to you, what if life period of CEAT Tyre?  Aim of question: The aim of this question is to know the life period of CEAT Tyre as per customer opinion.  Findings: YEAR <1 year 11 1to 5 year 53 >5 year 36  Chart:  Analysis: From the above data we can say that majority people say that life period of CEAT tyre is more than 5 year. Few people say that life period is less than 1 year. 11% 53% 36% Year <1year 1 to 5 year >5 year
  64. 64. 64 Q.5 According to you, rate the following parameters?  Aim of question: The aim of this question is to know what is in customer mind about product quality, features, design, durability and performance.  Findings: Excellent Very Good Average Poor Very poor Quality 46 43 11 0 0 Features 21 49 28 2 0 Design 29 43 21 6 1 Durability 28 48 19 3 2 Performance 46 34 10 7 3  Chart: 46 21 29 28 46 43 49 43 48 34 11 28 21 19 10 0 2 6 3 7 0 0 1 2 3 0 10 20 30 40 50 60 Quality Features Design Durability Performance Excellent Very good Average poor Very poor
  65. 65. 65  Analysis: From the above data, majority people say quality of product is excellent and some less people say quality of product is very good. While majority people say features, design and durability of product is very good and only few people say poor or very poor. Majority people say performance of the product is excellent.
  66. 66. 66 Q.6 According to you, rate the price of CEAT tyre?  Aim of question: The objective of this question is to know that price of a product is perfect for the customer or not.  Findings: PRICE USERS Low 3 Reasonable 48 High 43 Very high 6  Chart:  Analysis: From the above information, majority people say the price of CEAT tyre is reasonable and some less people say price is high. Only few people say price is very high. 3% 51% 45% 1% low reasonable high very high
  67. 67. 67 Q.7 Is CEAT tyre available at your convenient place?  Aim of question: The aim of this question is to know that the distribution channel for product is sufficient and effective to provide the product to the customer or not.  Findings: Particular USERS Yes 79 No 21  Chart:  Analysis: From the above data, we can say that majority people say that CEAT tyre is available at their convenient place and some people say that they do not get CEAT tyre at their convenient place. 79% 21% yes no
  68. 68. 68 Q.8 According to you, rate the promotional activity of CEAT tyre?  Aim of Question: The objective of this question is to know that promotional activity of company like advertising, offer & discount are effective or not.  Findings: Very effective Effective Less effective Not effective Advertising 44 54 2 0 Offer & discount 17 43 38 2 Attitude of dealer & staff 35 52 8 5
  69. 69. 69  Chart:  Analysis: From the above information, we can say that majority people say that advertising is effective and very few people say that it is less effective. Majority people say that offer and discount is effective but many people say that it is not effective. Majority people say that attitude of dealer and staff is effective. 44 17 35 54 43 52 2 38 8 0 2 5 0 10 20 30 40 50 60 advertising offer & discount attitude of dealer &staff very effective effective less effective not effective
  70. 70. 70 ALL OVER FINDINGS
  71. 71. 71 ALL OVER FINDINGS In my research, I found many point which are as under,  CEAT tyre is famous in the country.  Life period of CEAT tyre is also high.  Quality, features, design and performance of CEAT is good.  They need to decrease their price because many people find it high.  They also need to improve their distribution channel, so all people get it easily.  Advertising and attitude of dealer are effective but they need to improve their promotional scheme.
  72. 72. 72 FUTURE PLAN
  73. 73. 73 FUTURE PLAN CEAT plans to set up two plants, one in Maharashtra for specialty tyres and the other for radial tyres for cars, utility vehicles and trucks at a total capital outlay of about Rs 900 crore. Ceat plans Rs250 crore tyre manufacturing plant in Bangladesh. The firm aims to capture 40% of the projected demand of cross-ply tyres in the region by 2015. Cross-ply tyres are different from radial or radial-ply tyres, a newer technology. All passenger cars in India use radials and commercial vehicles too are moving in that direction. Bangladesh imports at least 1.5 million tyres annually. Of this, around 60% come from India and the rest from China, Indonesia, Japan and Thailand.
  74. 74. 74 MILE STONE
  75. 75. 75 MILE STONE  Awards CEAT received 'Innovative Franchise Model' Award to CEAT Shoppe by the Franchising Association of India. It won 'Excellence in Training' Award of the Asia Pacific HR Congress Employer Branding Awards 2007 for the India Region. The company’s manufacturing units have received ISO /TS16949 certification for quality management. CEAT exports tyres to countries namely USA, Africa, America, Australia and other parts of Asia. The company has pan-India network of 36 regional offices, over 3,500 dealers and more than 100 C&F agents. It also provides after-sales services through its all four divisional offices, assisted by 50 service engineers. Since 1984, the company conducts an R&D activity that focuses on providing customer a high-end product.
  76. 76. 76 SWOT ANALYSIS
  77. 77. 77 SWOT ANALYSIS  Strength  Establish brand name.  Extensive distribution network  Research & development initiation  Weakness  Cost pressures  Lack of focus  Pricing pressure  Opportunities  Economic growth  Global sourcing of raw materials  Improvement in road transport & infrastructure  Increase in demand of radials especially for MHCV, LCVs  Threat  Increasing prices of natural rubber  Cheaper imports  Increasing crude of prices  Ban on overloading of vehicles
  78. 78. 78
  79. 79. 79 INDEX SR.NO TOPICS 1. Atmosphere 2. Pricing structure
  80. 80. 80 ATMOSPHERE CEAT tyre is unique unit in itself. Today in tyre industry the firms believes that to give standard quality at reasonable prices. I feel glad that I have been the part of it for few days.  The unit is well equipped with a latest technology and modern machinery and equipments.  Self discipline is followed by employee.  As it is weighing industry accuracy plays very important role because it affects the quantity of products. The unit was kept very accurate capacity.  The staff and workers were well organized and co-operative. I sincerely, wish CEAT tyre all the best for future and hope that it succeeds all the goals that it has set for itself.
  81. 81. 81 PRICING STRUCTURE Price is only element in marketing mix that creates sales revenue for the company. Pricing is a very critical decision in marketing management. The primary objective of the firm, i.e. to earn a profit very much depends upon the correct price decision. We have to consider two factors, which almost effect to the cost of production. That factors affect to the price directly or indirectly. Today, most sellers set one price for all buyers. Yet, many companies do not handle pricing well. There are number of factors which affect the pricing policy of the company. If the entrepreneur would not give much importance these factors, he may not be able to survive in the consumer’s markets. The factors affecting the pricing policy can be broadly deviled into two categories.  Internal factors which include the company’s marketing objectives, marketing – mix strategy, costs & organization etc.  External factors which include the nature of the market & demand, competition and other environmental elements.
  82. 82. 82 CONCLUSION
  83. 83. 83 CONCLUSION During this marketing research, I have learnt lot of thing. It was really a great experience, while doing project report on Ceat tyre, how to explain them to fill up questions and what kind of complains are raised by customers during marketing research. This task is learning through only practical study. It was really a nice experience to do project on CEAT tyre and work with Jivrajani motor stores staff that is really good and open minded. In my report I have research on “marketing mix of CEAT TYRE” & find hypothesis. And also proved following hypothesis. H0: “marketing mix is effective”
  84. 84. 84 SUGGESTION
  85. 85. 85 SUGGESTION  The price of CEAT tyre is high compare with its competitor. So they should decrease their price.  They should improve their distribution channel so all people get its product easily.  They should also increase their promotional activity to attract more people to use product.  They should also increase after sales service to give more satisfaction and attract new customer to use product.
  86. 86. 86 BIBLIOGRAPHY
  87. 87. 87 BIBLIOGRAPHY  BOOKS Marketing management - Philip Kotler  SITES www.studymode.com (for distribution channel) www.ceat.in

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