Jk Tyre Report Ed Khan Solanki Compurter

8/13/2019 Jk Tyre Report Ed Khan Solanki Compurter

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SUMMER TRAINING PROJECT REPORT

ON

MARKET ANALYSIS JK TYRE

AT

SUBMITTED TO

JIWAJI UNIVERSITY GWALIOR

In the parta! "#!"!!$ent %" &e'reeMASTER O( BUSINESS ADMINISTRATION

)*+) TO )*+,

SUBMITTED TO-. SUBMITTED BY-.

DR/ GEORGE T0OMAS ED K0AN

0OD %" Mana'e$ent MBA 1r&Se$e2ter

IPS COLLEGE O( TEC0NOLOGY AND

MANAGEMENT GWALIOR


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STUDENTS DECLARATIONIED K0ANa student of IPS COLLEGE O( TEC0NOLOGY AND

MANAGEMENT GWALIOR. Hereby declare that industrial training

report is the record of authentic work carried out by me from +3 4#ne t% 1*

4#!5 )*+1towards fulfillment of requirement for the completion of MBA

course as prescribed by JIWAJI UNIVERSITY6 GWALIOR6 MP has not

been submitted to any other university of institute for the award of anydegree/diploma etc.

DATE-. ED K0ANPLACE - GWALIOR MBA 1RDSEM


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ACKNOWLEDGEMENT

Many people have helped and encouraged me. It is

impossible to single them out give them the credit

they deserve. I am thankful to MR/ VIS0NU

BANDELfor providing me an opportunity to work

with J K t5re p7t !t&/ for the summer training

pro!ect.

PLACE- . ED K0AN

Date-. MBA 1r&SEM


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CONTENT

Chapter .+

C%$pan5 Pr%"!e Introduction

About "yre Industries

#rowth of tyre Industries

$arious types of tyre segment

About !k

Mission $ision

%&'" analyes 'rganisation structure

Chapter .) Mar8et Ana!522

'b!ectives of the study

(eed of the study

)imitation of the study

Chapter .1 Re2ear9h Meth%&%!%'5 Data Collection

Data Analysis

Chapter ., *indings

%uggestions

Bibliography

+estionnairs


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Chapter .+

C%$pan5 Pr%"!e


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Introduction

In today,s world of intense competition and rapid dynamism- all

the companies worldwide are tuning their focuses on the customer.

%uddenly- the customer had succeeded in capturing all the attention

of the companies towards him- so much so- that the once famous

maim- customer is the god0 has become so true and relevant

today. "here has been a paradigm shift0 in the thinking of these

companies and none other then the customer has brought this

about.

1arlier there was a seller,s market- since goods and services

were in short supply and the sellers use to call the shots. But- eversince the advent of the era of globali2ation- there has been total

transformation in the way the customers being perceived. "heir

focus has shifted towards integrating the three elements people-

service and marketing.

A customers can make or break0 a company. It is the

responsibility of every company to see that all its customers are

equally satisfied with them- for one single dissatisfied customer

will tell at least nine others about the dissatisfaction and will spark

off a chain reaction and spell doom for that company. 3esearch has


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"Excellence comes not from mere words or procedures. Itcomes from an urge to strive and deliver the best. A mindsetthat says, when it is good enough, improve it. It is a way ofthinking that comes only from a power within." -

.!.!inghania

T0E (OUNDERS

89 'rgani2ation owes its name to )ate )ala 8uggilal %inghania- a

dynamic personality with a broad vision. Inspired by the cause of

the %wadeshi movement of Mahatma #andhi- and driven by the

2eal to set up an Indian enterprise- )ala 9amlapat %inghania


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founded 8.9. 'rgani2ation in the :; thcentury ushering in a new

industrial era in India.

"he process of industriali2ation and diversification was worthily

and successfully carried on by )ala 9amlapat,s three illustrious

sons


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0'h ta: #2a'e

"he high ta content on tyres can be gauged from the fact that the

percentage of total ta to the ta ecluded price for variouscategories of tyres is < @@ for "ruck "yreG @: for 6assenger ar

3adial "yre- EF for "ractor 3ear "yre and D> for "ruck "yre

"ube.

In9rea2e n ra; $atera! 9%2t2

Apart from being capital intensive- the tyre industry is highly raw

material intensive. Any change in the prices of raw materials

affects the profitability of tyre companies. "he raw materials used

in the manufacture of tyres are rubber and petroleum derivativeslike nylon tyre cord- carbon black- styrene butadiene rubber and

poly butadiene rubber. "he most important raw material is rubbern ?@(Y )**.)*+* ?

(Y )*+*.)*++ ?

(Y )*++.)*+) ?

(Y )*+).)*+1 /)+?

Compiled by INGRESurrently- the si2e of the Indian tyre industry is estimated at 3s.

:=C billion 5.F of Indian #?67- as of *J=E. "he total

installed capacity of the Indian tyre industry is around >.F mn

units- and the capacity utili2ation is around CF. Additionally- in


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*J=E- the price reali2ation of tyre manufacturers also registered

an increase by C- as against a .> increase in *J==.

De$an& S#pp!5 Gap

"he demand for tyres is either in the domestic market or in the

eport market. As far as domestic demand is concerned- #iven the

strong linkages of tyre industry with automotives- its demand is

likely to be strong over the short to medium term.

As regards supply of tyres- currently- the ma!or players are in the

process of epanding their capacities- in anticipation of uptrend in

sales. *or instance- Apollo "yres has set up a !oint venture with

Michelin for manufacture and sale of bus and truck radials. 89 is

epanding its Mysore truck and bus radial facility along with

eyeing acquisitions of smaller units. eat has increased its offtake

by E times from 6irelli. However- a characteristic of the Indian tyre

industry is that most of the tyre manufacturers in the past had

increased capacities in anticipation of a surge in demand- but when

it did not materialise- they reduced their addition to capacities.

"hus- the demand


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Re7e; %" Per"%r$an9e

O7era!! Per"%r$an9e

"he operating margin of the representative sample of tyre

companies improved during *J=E. However- the net profit

margin of the tyre companies even though improved- was still at

E.

Per"%r$an9e n (Y)**,

"he tyre industry continues to be driven by good demand growth-

propelled by sustained uptrend in demand and sales of automobiles

in general- and commercial vehicles and passenger cars in

particular. However- this does not get translated into improved

margins for the industry- as it is witnessing sustained rise in prices

of raw materials like natural rubber. Additionally- the customs duty

on imports has been brought down from =F to = and %pecial

Additional ?uty of @ has been dispensed with.

Growth of Tyre industries in India

"he Indian tyre industry is epected to clock a tonnage growth of

;


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"he study points out that on the eport front- the Indian tyre

companies need to eplore newer markets as the eisting market is

nearing saturation. "his apart- with rationali2ation catching up in

the foreign markets- the Indian tyre companies need to graduate to

radial tyres so as to protect their share in the eport market.

"he A31 report observes that though the tyre technology in India

has witnessed several developments with continuous innovation-

the domestic tyre manufacturers still lag behind their global

counterparts in terms of product differentiation. #lobal tyre makers

offer a wide change of products like tyres with pressure warning

systems- run flat tyres- eco


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"he scenario in India stands in sharp contrast to that in the world

tyre market- where car tyres 5including light trucks7 have the ma!or

share 5CC7 by volume followed by truck

"yres 5:=7. In India- however- passenger car tyres have a mere

:D share of the overall tyre market.

Tr#98 an& B#2 T5re2

"he truck and bus tyre segment accounted for :; of tyres

produced in India in *J=E. 1very truck/bus manufactured

generates a demand for seven tyres 5si regular and one spare7 as

against three in the case of two


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demand for truck and bus tyres.

Pa22en'er Car T5re2

"he passenger car tyre segment accounted for :D of all tyres

produced in India in *J=E. &ith passenger car production

witnessing a growth of := in *J=E over the previous year-

'1M demand accounted for about EE of the total sales that year.

"he replacement market accounted for around >E of the total

sales of passenger car tyres in *J=E. 1ports accounted for @

of the total passenger car tyre demand in *J=E. &ith the stock

of cars increasing- replacement demand is likely to continue.

M%t%r959!e T5re2

Motorcycles accounted for D> of two


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S9%%ter T5re2

%cooters were the dominant segment in the Indian two


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awareness < an endeavor for self reliance and the setting up of a

dynamic Indian industry. "his was way back in the middle of the

:;th century. And the rest that followed is history.

JK T5re2 N% + $ar8et p%2t%n

In what is being considered as a landmark decision in the highly

competitive Indian tyre industry- the Advertising %tandards

ouncil of India 5A%I7 has upheld 89 Industries )tds claim of

being Indias (o : tyre manufacturer in the four


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Hence- 89 "yres claim as (o : tyre manufacturer in India is a

perfectly valid and correct statement. "his also reflects A%Is

agreement to 89 "yres viewpoint that figures- as stated in the ones

annual report- could actually be misleading and could include

revenues from non


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ission ! Vision

Vision:

"o be amongst the most admire companies in India committed to

be ecellence"

Mission:

a. Be a customer obsessed company

b. (o.: "yre brand in India

c. ?eliver enhanced value at all stakeholders

d. Most profitable "yre ompany in India

e. 1nhance global presence through acquisition

f. Motivated and committed team development for high

performance organi2ation


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#$%T Analysis

STRENGT0

Heavy range of products

Brand awareness

Best promotion by display.

Advertisement.

1ffective margin for delaers.

Brand image of radial tyres

WEAKNESS

)ack of co


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%rgani&ational structure of JK Tyre


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Chapter -2


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%b'e

cti(e

s of

the

stud

y

)ee

d for

the

stud

y

*imit

ationof

the

stud

y


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%b'ecti(es of the study

"o find out market share of 89 "yres.

"o understand the marketing strategy of 89 "yres.

"o focus on the Marketing mi of 89 tyre

"o evaluate the limitations of 89 tyre.

"o analy2e the customer,s needs regarding the product and

policies formulated by the company.

"o find out the brand image of 89 tyre

)eed for the study

Management is like a coin having two sides. 'ne is the theoretical

part and second is the practical part. In the theoretical part of

management we learn in our classroom from the lectures-

seminars- group discussions that are arranged from time to time.

"o know the practical aspect of management a practical training is

provided to the students. "he main idea behind practical training isto bring the management students face to face with the actual

environment of practical management so that he/ she will be able

to apply theory to practical situation before finally moving into the

professional world to show the efficiency and capability.


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"he pro!ect study focused on 89 tyre0 as a product and the sub!ect

is to understand the mind set of different customers about the

product. Being a student of marketing management- the

inquisitiveness to peep on practical side of consumer perception

promoted in study.

In this study efforts have been made to prepare the report as

realistic as possible.

*imitation of the study

The pro!ect surfers from the following limitations due to the

inherent and restrictive nature of the study undertaken

?ue to constraints of time- money and other resources

applicable to this study.

"his study is confined to only a few specified areas of

and is not comprehensive study of the customers of

89 tyre all over #&A)I'3

"his study is restricted only to sample space chosen

for the study.

"he areas covered under the surveys are "ransport

(agar- 6urani hhavni- Hanuman 6arking- 9ansana,s

6remises.


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+hapter ,-

.esearch ethodology


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.esearch ethodology of the study

SAMPLE SIFE- =DF trucks

MET0OD O( COLLECTION- MA391" %L3$1J

5*I"M1(" %L3$1J7

LOCATION- BA(M'31

DATA TYPE-

*or the above study both type of data were used such as primary

data and secondary data. *or primary data different areas of

Banmore were being visited and for the secondary data internet

reference books have been used.

ollecting data from market through *itment survey of

"rucks on road.

&orking on the data.

#raphical representation of results.

Analy2ing the graph and driving further enquiries.


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METHOD OF COLLECTION: MARKET SURVEY

DATA TYPE-

*or the above study both type of data were used such as primary

data and secondary data. *or primary data different areas of

#&A)I'3 were being visited and for the secondary data internet

reference books have been used.

ollecting data from market through *itment survey of "rucks

on road.

&orking on the data.

#raphical representation of results.

Analy2ing the graph and driving further enquiries.


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+/+Ta!e 2h%;n' $ar8et 2hare n RIB t5re2

NAME O( COMPANY NO/ O( TYRES PERCENTAGE S0ARE

APOLLO @ :D

BIRLA :F D

BRIDGESTONE :

CEAT FD =F C0INA F =

JK : @E

MR( :@ >

OT0ERS

*ig


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C-*.E/E with "% and )R*01E/!.E 2 others with % of

market share

/"0 Table showing ar1et share in *2G tyre


APOLLO DE :> BIRLA FD :=

BRIDGESTONE

CEAT :FD E@

C0INA =F F

JK ::: =@

MR( @E ;

OT0ERS =

Interpretat%n-

From the above table it is shown that in lug tyre segment CE! is

the market leader with 34% followed by JK with "4%, $&&


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with '%, )*R& with '"%,+RF with 5%, C-*.E/E with #%,and

others with %

/"- Table showing Total mar1et share


APOLLO :; :>

BIRLA D= ::

BRIDGESTONE :

CEAT =:@ E:

C0INA E @

JK =:: E

MR( FD C

OT0ERS =

Interpretation:


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*rom the above table it is shown that in tyre segment5>

wheelers7 1A" is the market leader with E: followed by 89

E -A6'))' with :> BI3)A with ::- M3* with C-

HI(A with @ and others are .

/"3Table showing Total mar1et share4/5$677*7.#8


APOLLO :F: :

BIRLA :E@ ;

BRIDGESTONE >

CEAT :C> :E

C0INA EDF =>

JK @DE E= MR( :=@ ;

OT0ERS :: :


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From the above table it is shown that in tyre segment6' wheelers7 JK is the

market leader with 3"% followed by C-*. "% ,Ceat with '3% $&&

with '%, )irla with 5%, +RF with 5% and others are '%

/"9 Table showing mar1et share in .IB tyre4/5$677*7.#8


APOLLO F= :C

BIRLA E> :=

BRIDGESTONE

CEAT @= :@

C0INA :E F JK ::: EC

MR( E: ::

OT0ERS D =


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From the above table it is shown that in R*) tyre segment6'

wheelers7 JK is the market leader with 3"% followed by $&&

'8% ,Ceat with '4% $&& with '8%, +RF with ''%, C-*.

with #% and others are "%

/": Table showing mar1et share in *2G tyre4/5

$677*7.#8


APOLLO ;; ;

BIRLA ;C C

BRIDGESTONE > : CEAT :@@ :=

C0INA E>= E:

JK E>= E:

MR( ;E C

OT0ERS @


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From the above table it is shown that in &91 tyre segment6'

wheelers7 JK 2 C-*.E/E RE the market leaders with 3'% ea:h

followed by CE! '"% ,$&& with 5% )*R& 2 +RF with

8% ea:h, and others are %

Chapter .,


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;indings

;indings

After taking the feedback of more than : customers analy2ing

=:F> tyres the study reveals that customers are fond of different

brands in different areas. )ike- in 6urani chhavni area almost >

of customers prefer BI3)A tyres 5especially B"EE;7- in hanuman

areas customers prefer 89 tyres- where in "ransport (agar people

prefer 89 A6'))'. (ot only different choices but also having


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different eperience on different brands. It is found that many

customers prefer 89,s guaranteed tyres such as 81" "3A9 E;0

and economy class rib tyre $I93A(" "3A9 9I(#0 for its

milage reliability but it is also true that many other brands such

as 81" MI)1%0- 81" A10- 81" %L613 )L#0 do not have a

strong place in customers mind. "he study shows that 89,s strong

contender is 1A" who,s quality was appreciated by many.

1A",s *M DC0 H) %L6130 are very much preferred. In

guaranteed tyres A6'))',s *MDC0 is the main contender of 89.

Incase of normal loaded trucks customers mostly rely on 1A"

but in over load A6'))' 89 are reliable. ertainly M3* has

not a good reputation at all. Also for )L# %emi )ug segment

hinese tyres such as J1))' %1A 3'%% are also grabbing a

strong foothold in the market.

:. 89 is the market leader followed by A6'))'.

=. $I93A(" "3A9 9I(# of 89 is most used/preferred tyre

overall.

E. In economy segment 89 has %trong hold but premium

segment is dominated by 1A".

@. 89 "yre is having edge breaking problem


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#uggestion

:. 89 "yre is doing well in rib segment but they are based in

only on one brand $ikrant0. %o 89 should try to aware to

increase the awareness of other brands.

=. 6rice


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E. 9eep eye to reduce the cost of manufacturing. %o price will

further reduced and competition will increased.

@. "he company should look after its tread erosion/breaking

problem.

BIBLIOGRAPHY

"et Book

Marketing Management 6hilip 9otler


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3esearch Methodology . 3. 9othari

Brand Management J. ). 3. Murthi

Marketing Management ?r. 3A8A( %AN1(A

(ews 6apers atalogue

?ainik Bhaskar

(ai ?uniya

6roduct atalogue

Business economics.

&eb %ite

www.indiacar.net

www.jktyre.com

www.businessstandard.com

e2t%nnar2(AM1OOOOOOO..

8'B ('OO.

+ :Ta!e 2h%;n' $ar8et 2hare n RIB t5re2
http://www.indiacar.net/http://www.jktyre.com/http://www.businessstandard.com/http://www.indiacar.net/http://www.jktyre.com/http://www.businessstandard.com/


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A F+* W0EELERS@

A heapest

B 3easonable

High

+/3 Ta!e 2h%;n' $ar8et 2hare n RIB t5re>+* W0EELERS@

A J1%

B ('

+/H Ta!e 2h%;n' $ar8et 2hare n LUG t5re>+* W0EELERS@A #ood B Better Average

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Jk Tyre Report Ed Khan Solanki Compurter