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8/7/2019 Marketing -II - Assignment I
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The Bearing Industry The current Indian bearings industry is worth Rs.$ 33
billion growing at approximately 20% annually.
About 12 large and medium units which together turn
out over 100 million bearings every year. Almost allthe units have foreign collaboration.
It makes around 500 types of bearings as against over
30,000 types of bearings being used by the Indian
industry.
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Application
It is applicable in possibly every movingmachinery, but is of significant importance for
Steel
Paper & Pulp Heavy Metal
Earthmovers
Engineering
Construction
Sugar Industries
Textile Industries
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Kirti bearings Corporation
Since 1972
Primarily a dealer for all kinds of bearings andaccessories
In 2007, took-up distributorship for ZKL India
Annual Turnover Rs. 1.5 Crore in 2009
Turnover from ZKL Rs. 50 Lacs in 2009
No. of employees 5
Office and Warehouse - Mumbai
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Company Details
More than 90years old
Located in Czech Republic
It was represented in India by a few dealersand distributors who simply used the brand
for trading purpose.
ZKL Bearings (India) Pvt. Ltd. was set up inlate 2002 to provide an official representation
for the brand in the country.
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Manufacturer Importer
Distributor/Dealer Customer
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Role of each members of the System
Importer
The importer is the sole supplier of ZKL bearings to
the distributors. The importer imports the
products from ZKL Czech Republic. They are
responsible for creating awareness , appointing
regional distributors, encouraging promotional
activities and providing technical support.
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Distributor/Retailer
The role of distributor/dealer is to aggressively
marketing and selling the product to the end
users. They are responsible for allpre-sales
(promotion), sales and after-sales activities
(services).
Role of each members of the System
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Manufacturer 100%
Importer 60%
Distributor 33%
Retailer 15%
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Business & Operations
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Relationship & Expectation
Manufacturers
expectation from the
Importer
1. On-time payment
2. Frequent and timely
orders
3. Creating brand
awareness & effective
promotion
Importers expectation
from the Manufacturer
1. On-time and safe
delivery of goods
2. Provide according to
the latest trends and
technology
3. Adequate support
and necessary
services
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Importers/Distributor
expectation from the
Distributor/Retailer
1. On-time payment
2. Achieve targets
mutually agreed upon
3. Creating awareness
4. Ensure customersatisfaction
5. Maintain
Manufacturers brand-
image
Distributors /RetailerDistributors /Retailer
expectation from the
Importer / Distributor
1. On-time and safe
delivery of goods
2. Discounts
3. Passing on valuable
and timely
information
4. Provide necessary
support
5. Allows multi-brand
distributorship/Deale
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Distributors/Retailer
expectation from the
End User
1. On-time payment
2. Frequent and timely
orders / Contracts
3. Brand loyalty
4. Criticism and
feedbacks
Customers expectation
from the
Distributor/Retailer
1. On-time and safe
delivery of goods
2. Discounts
3. Provide products
according to the
latest trends and
technology
4. Services
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Suppliers expectation
from the Retailer
1. On-time payment
2. Frequent and timely
orders
3. Consumer
Expectations
Retailers expectation
from the Supplier
1. On-time and safe
delivery of goods
2. Discounts
3. Provide according to
the latest trends and
technology
4. Services
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What Marketing Decisions to be
made?
Marketing decisions are normally made
individually at all three levels
Though the decision is voluntarily made itrequires the approval of the Importer
Also, in most cases part sponsorship is
provided by importers
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Physical Distribution
Gets an order collects all the materials
physically transported to the transportation
office to the destined branch the customer
collects it from the transportation office
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Sales Incentives & Trade Promotions
Classified on the basis of sales
Higher the
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Information Flow
ZKL Cz ZKL India Distributors/Dealers
Local Market & End users
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Financial Transactions & Credit Terms
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Basic Economics of Business
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Significant Problem Areas
High level of duplication
Lack of awareness and quality checking
procedures by end users Threat from the chinese market
Resistance to experiment new brand
Corruption Fragmented with economies of scale