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Customers’ Attitude towards Different
Brands of Tyre: An Empirical Study in
Kolkata and Its Outskirts

                        By

                 Subhadip Saha
         (Student, JIS College of Engg.)
                          &
                Mrinal Kanti Das
        (Asst. Prof., JIS College of Engg.)
Needs & Necessities
          For Academic                        For Industry & Business

The research provides opportunity to        The Indian tyre industry recovered
students to demonstrate the application     remarkably in FY10 following the
of    their   knowledge,       skill   &    slowdown in FY09. This was a result
competencies required during the            of growing demand for automobile
session. The research also helps the        industry, growing replacement base
students to devote their skill to analyze   and the overall recovery in the
the problem to suggest alternative          economy. The growth in the Indian
solution to evaluate them & to provide      tyre industry is expected to increase in
feasible recommendation on the              future due to significant demand from
provided data.                              the automobile industry.
Objectives




    Here are some basic (main) objectives of this study:


   To know the influence of different brands of tyre on its sales.
   To know if there is any significant influence of different regions under
    study on sales.
   To ascertain the current position/rank of different brands of Tyre
    selected for our study.
   To sought out the various administrative areas which require
    improvements of different key market players.
   To extract various factors play in mind of a customer before buying a
    tyre.
Research Methodologies
Sources of data: Primary data have
been        collected      through
Convenience Sampling technique
for selecting consumers as well as
dealers of different areas with the
help of Personal Discussions,
Documentary Observations &
Field Observations.
Research design: To get clarity of
the      problem        statements,
exploratory study was carried out.
                                          Tools and techniques used: For
                                          analyzing data following
Data collection period: Three             techniques has been used.
months (June, July, August)’12
data were collected to analyze the
                                         Analysis of Variance (ANOVA)
performance of the tyre companies.
                                         Thurstone Case V Scale
Sample Size: Based on 104
                                         Graphical Presentation
Customers &20 Dealers
ANALYSIS & FINDINGS
 ANOVA
 Source of      SS             df              MS              F                P-value      F crit *
 variation
 Brands          19.95918           6           3.326531         9.715232         2.3E-06     2.363751
 Regions         6.816327           6           1.136054         3.317881        0.010538     2.363751
 Error           12.32653           36          0.342404
 Total           39.10204           48
                                                                                     *Sources: Primary data
                      * Means critical value of F obtained from table with α =0.05


Null Hypothesis 1: There is no significant influence of different brands of tyre on sales.
Null Hypothesis 2: There is no significant influence of different regions on sales.

As the critical value of F (6, 6) with α =0.05 is 2.363751 which is lesser than the calculated value
of F=9.715232, we reject the null hypothesis that implies significant influence of different
brands of tyre on the sales.

On the other hand, it is found from the above table that the critical value of F (36, 6) with = 0.05 is
2.363751 which is also lesser than the calculated value of F = 3.317881. So we have to reject the
null hypothesis that indicates there is significant influence of different regions on sales.
ANALYSIS & FINDINGS
Paired Comparison Matrix
                         Absolute Figure
Brand    MRF      CEAT         JK          Ralco   Apollo        Birla
MRF      -        0.05         0.25        0       0.15          0.10
CEAT     0.95     -            0.85        0.20    0.80          0.70
JK       0.75     0.15         -           0.05    0.35          0.10
Ralco    1        0.80         0.95        -       0.85          1
Apollo   0.85     0.20         0.65        0.15    -             0.40
Birla    0.90     0.30         0.90        0       0.60          -


                         Relative Figure
Brand    MRF      CEAT         JK          Ralco   Apollo        Birla
MRF      -        1            5           NA      3             2
CEAT     19       -            17          4       16            14
JK       15       3            -           1       7             2
Ralco    20       16           19          -       17            20
Apollo   17       4            13          3       -             8
Birla    18       6            18          NA      12            -


                                                        *Sources: Primary data
ANALYSIS & FINDINGS
Thurstone Case V Scale
Brand        MRF         CEAT       JK          Ralco       Apollo       Birla
MRF          -           -1.65      -0.67       -3.49       -1.04        -1.28
CEAT         1.65        -          1.04        -0.84       0.84         0.53
JK           0.67        -1.04      -           -1.65       -0.39        -1.28
Ralco        3.49         0.84      1.65        -           1.04         3.49
Apollo       1.04        -0.84      0.39        -1.04       -            -2.05
Birla        1.28        -0.53      1.28        -3.49       2.05         -
Total        8.13        -3.22      3.69        -10.51      2.50         -0.59
Average      1.355       -0.537     0.615       -1.751      0.417        -0.098
Adding the   3.106       1.214      2.366       0           2.168        1.653
MOD value
of the
highest
negative
Rank         1           5          2           6           3            4

                                                                 *Sources: Primary data



 The table reflects that MRF has been ranked first amongst six brands of tyre
 manufacturing companies & Ralco stood 6th considered for this study.
ANALYSIS &
                            FINDINGS
         Administrative areas require improvements

 Birla




Apollo




Ralco                                                                     Dealer supports

                                                                          Billing & credits

                                                                          Inventory tracking
    JK
                                                                          Shipping

                                                                          Order processing

 CEAT




 MRF



         0        2         4        6        8      10   12        14

                                                               *Sources: Primary data
ANALYSIS & FINDINGS
Factors play in mind before buying a tyre




                                                                                 Brand name


                                                                                 Price


                                                                                 Past experiences


                                                                                 After sales service



                                                        *Sources: Primary data


 Here we can see that the most common factor upon which customers trust is Past
 experience of the product. Next to it is none other than Price of that particular
 product. Brand name & after sales service plays a little role in making decision to
 buy a tyre.
Conclusion
Based on the objectives that we set, following are the conclusions:
There must have some significant influences of different brands of tyre
as well as different regions on its sales.


Birla, Apollo, JK & CEAT needs to focus on its Inventory Tracking
system where as Ralco suffers from Dealer Supports facility & MRF
has to speed up its Order Processing system.


Past Experiences & Price are the most important factors play in mind of
a customer before buying a tyre followed by Brand Name & After Sales
Service.


& overall, As we had expected before conducting the study, MRF is
the market leader at present followed by JK Tyres .
Limitations




 1) Shortage of time span may become a constraint.
 2) Lack of Dealer’s & Customer’s cooperation & support may be a major
constraint.
 3) Study was conducted in a small part of Kolkata & its outskirts, so the
result of the study may not be applicable to other areas.
 4) Sample of 104 Customers & 20 Dealers may not represent the whole
universe (population) & we cannot draw inference about the whole population
on the basis of small sample.
Thank you
all!

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Indian Tyre Industry

  • 1. Customers’ Attitude towards Different Brands of Tyre: An Empirical Study in Kolkata and Its Outskirts By Subhadip Saha (Student, JIS College of Engg.) & Mrinal Kanti Das (Asst. Prof., JIS College of Engg.)
  • 2. Needs & Necessities For Academic For Industry & Business The research provides opportunity to The Indian tyre industry recovered students to demonstrate the application remarkably in FY10 following the of their knowledge, skill & slowdown in FY09. This was a result competencies required during the of growing demand for automobile session. The research also helps the industry, growing replacement base students to devote their skill to analyze and the overall recovery in the the problem to suggest alternative economy. The growth in the Indian solution to evaluate them & to provide tyre industry is expected to increase in feasible recommendation on the future due to significant demand from provided data. the automobile industry.
  • 3. Objectives Here are some basic (main) objectives of this study:  To know the influence of different brands of tyre on its sales.  To know if there is any significant influence of different regions under study on sales.  To ascertain the current position/rank of different brands of Tyre selected for our study.  To sought out the various administrative areas which require improvements of different key market players.  To extract various factors play in mind of a customer before buying a tyre.
  • 4. Research Methodologies Sources of data: Primary data have been collected through Convenience Sampling technique for selecting consumers as well as dealers of different areas with the help of Personal Discussions, Documentary Observations & Field Observations. Research design: To get clarity of the problem statements, exploratory study was carried out. Tools and techniques used: For analyzing data following Data collection period: Three techniques has been used. months (June, July, August)’12 data were collected to analyze the  Analysis of Variance (ANOVA) performance of the tyre companies.  Thurstone Case V Scale Sample Size: Based on 104  Graphical Presentation Customers &20 Dealers
  • 5. ANALYSIS & FINDINGS ANOVA Source of SS df MS F P-value F crit * variation Brands 19.95918 6 3.326531 9.715232 2.3E-06 2.363751 Regions 6.816327 6 1.136054 3.317881 0.010538 2.363751 Error 12.32653 36 0.342404 Total 39.10204 48 *Sources: Primary data * Means critical value of F obtained from table with α =0.05 Null Hypothesis 1: There is no significant influence of different brands of tyre on sales. Null Hypothesis 2: There is no significant influence of different regions on sales. As the critical value of F (6, 6) with α =0.05 is 2.363751 which is lesser than the calculated value of F=9.715232, we reject the null hypothesis that implies significant influence of different brands of tyre on the sales. On the other hand, it is found from the above table that the critical value of F (36, 6) with = 0.05 is 2.363751 which is also lesser than the calculated value of F = 3.317881. So we have to reject the null hypothesis that indicates there is significant influence of different regions on sales.
  • 6. ANALYSIS & FINDINGS Paired Comparison Matrix Absolute Figure Brand MRF CEAT JK Ralco Apollo Birla MRF - 0.05 0.25 0 0.15 0.10 CEAT 0.95 - 0.85 0.20 0.80 0.70 JK 0.75 0.15 - 0.05 0.35 0.10 Ralco 1 0.80 0.95 - 0.85 1 Apollo 0.85 0.20 0.65 0.15 - 0.40 Birla 0.90 0.30 0.90 0 0.60 - Relative Figure Brand MRF CEAT JK Ralco Apollo Birla MRF - 1 5 NA 3 2 CEAT 19 - 17 4 16 14 JK 15 3 - 1 7 2 Ralco 20 16 19 - 17 20 Apollo 17 4 13 3 - 8 Birla 18 6 18 NA 12 - *Sources: Primary data
  • 7. ANALYSIS & FINDINGS Thurstone Case V Scale Brand MRF CEAT JK Ralco Apollo Birla MRF - -1.65 -0.67 -3.49 -1.04 -1.28 CEAT 1.65 - 1.04 -0.84 0.84 0.53 JK 0.67 -1.04 - -1.65 -0.39 -1.28 Ralco 3.49 0.84 1.65 - 1.04 3.49 Apollo 1.04 -0.84 0.39 -1.04 - -2.05 Birla 1.28 -0.53 1.28 -3.49 2.05 - Total 8.13 -3.22 3.69 -10.51 2.50 -0.59 Average 1.355 -0.537 0.615 -1.751 0.417 -0.098 Adding the 3.106 1.214 2.366 0 2.168 1.653 MOD value of the highest negative Rank 1 5 2 6 3 4 *Sources: Primary data The table reflects that MRF has been ranked first amongst six brands of tyre manufacturing companies & Ralco stood 6th considered for this study.
  • 8. ANALYSIS & FINDINGS Administrative areas require improvements Birla Apollo Ralco Dealer supports Billing & credits Inventory tracking JK Shipping Order processing CEAT MRF 0 2 4 6 8 10 12 14 *Sources: Primary data
  • 9. ANALYSIS & FINDINGS Factors play in mind before buying a tyre Brand name Price Past experiences After sales service *Sources: Primary data Here we can see that the most common factor upon which customers trust is Past experience of the product. Next to it is none other than Price of that particular product. Brand name & after sales service plays a little role in making decision to buy a tyre.
  • 10. Conclusion Based on the objectives that we set, following are the conclusions: There must have some significant influences of different brands of tyre as well as different regions on its sales. Birla, Apollo, JK & CEAT needs to focus on its Inventory Tracking system where as Ralco suffers from Dealer Supports facility & MRF has to speed up its Order Processing system. Past Experiences & Price are the most important factors play in mind of a customer before buying a tyre followed by Brand Name & After Sales Service. & overall, As we had expected before conducting the study, MRF is the market leader at present followed by JK Tyres .
  • 11. Limitations 1) Shortage of time span may become a constraint. 2) Lack of Dealer’s & Customer’s cooperation & support may be a major constraint. 3) Study was conducted in a small part of Kolkata & its outskirts, so the result of the study may not be applicable to other areas. 4) Sample of 104 Customers & 20 Dealers may not represent the whole universe (population) & we cannot draw inference about the whole population on the basis of small sample.