1

SUMMER TRAINING REPORT AT

JK TYRE & INDUSTRIES LIMITED

PROJECT TITLE :- ANALYSIS OF DEALER AND CUSTOMER SATISFACTION

Submitted in partial fulfilment of the requirements of Post Graduate By:-Varun Jha

Batch 2015-17 Roll No. :-2015MBA021

2

ACKNOWLEDGEMENT I owe a debt of gratitude to JK tyre & industries Limited for giving an opportunity to practical exposure of corporate. I am thankful to Mr. Pawan Kumar for giving me an opportunity to learn in this organization. I am grateful to Mr. Parinay Gusain who not only helped me in the project but also taught me about the various traits of tyre industry Last but not the least I am thankful to all dealers and customers for sharing their valuable information with me.

[Varun Jha]

3

DECLARATION I VARUN JHA student of JK LAKSHMIPAT UNIVERSITY, JAIPUR Batch 2015-17 declare that every part of the Project Report “Dealer and Customer Satisfaction” AT JK TYRE & INDUSTRIES Ltd. submitted by me is original. I was in regular contact with my faculty guide and contacted many times for discussing the project. Date of project submission __________________ Signature Faculty Mentor’s Comments:- _______________________________________________________________________________________________________________________________________________________________________________________ Signature Dr. Kapil Arora Faculty Guide

4

TABLE OF CONTENTS S.No. Particulars Page No. 1 Acknowledgement 2 2 Declaration 3 3 Executive Summary 6 4 JK Brief Profile 26 5 Objective of this study 52 6 Research Methodology 53 7 Data Analysis and Interpretation 54-78 8 Conclusion 79 9 Finding and Observation 80 10 Suggestion 81 10 Learning and Experience 82 11. Achievement and Awards 83 12. Week wise Description 84-86

13. Bibliography 87 14. Annexures 89

5

Executive Summary

JK Tyre a prominent player in the tyre industry. As its expansion plan, JK Tyre is planning to enter the two-wheeler market. The study was conducted to understand the existing market practices and learn from the leaders. The report aims at discovering various factors affecting customer satisfaction. Understanding these factors will help develop better strategies to attract & retain customers. The study also aims at identifying factors influencing dealer’s satisfaction. Dealers/Retailers are the most prominent channel partners as they directly interact with the customer and represent the company. For the purpose of research the data was collected via interviews, observations and structured questionnaire. The study has discovered that customers are highly satisfied by (Price, Quality, Brand, durability). The dealers were most motivated to push the products because of (Commission, New Scheme, Service, Quality, and Brand). The company can also consider the importance of the above discussed factors to improve their market interaction with dealers and motivate customer to buy their products.

6

Introduction

In today’s world of intense competition and rapid dynamism, all the companies worldwide are tuning their focuses on the customer. Suddenly, the customer had succeeded in capturing all the attention of the companies towards him, so much so, that the once famous maxim, “customer is the god” has become so true and relevant today. There has been a “paradigm shift” in the thinking of these companies and none other than the customer has brought this about. Earlier there was a seller’s market, since goods and services were in short supply and the sellers use to call the shots. But, ever since the advent of the era of globalization, there has been total transformation in the way the customers being perceived. Today, marketers are directing their efforts in retaining the customers and customer’s base. Their focus has shifted towards integrating the three elements people, service and marketing. The customer’s importance has assumed imponderable proportions in today’s world, because of the inherent value that the customers demand. A customers can “make or break” a company. It is the responsibility of every company to

7

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. In such scenario, retention of the existing customers assumes diabolical proportion. Research has thrown light on some important aspects of customer’s retention it has been proved empirically that acquiring new customers can cost five times more than the cost involved in satisfying and retaining current customers. In the past, the customers was taken for a ride, as there were not many players in the fields, not much importance was attached to product safety, quality, service and product appeal. The attitude of the manufacture was that of “caveat – emptor”. Thanks to the government policies on liberalization, globalization and privatization (LPG), the market scenario has changed today. Today, the customer has a host of defense mechanism like the customers protection laws, regulation of the government, the powerful hands of the organization, customers‟ courts, switching to substitute or competitors that offer at competitive prices, etc. The maxim,” caveat – emptor” has been replaced by “caveat venditor”.

8

In the past, after sales service was consider as a cost center, Companies were lethargic in attending to customers complaints. Availability of trainee service personal and quality genuine spare parts posed serious problems. However, with the rising competition, there could not be much product differentiation, as price and quality were comparable and latest technology was to each and every company in the field. Since, there could not be much differential a tangible assets, the companies concentrated on the “intangible assets”, namely the “service factor”, which served as a major differentiator. Today after sales service is an important aspect of every company, and it is no more considered as a cost center, but considered as a profit center. Every organization strives hard to retain its existing customers at any cost since it is five times costly to get a new customers, then to retain an existing customers. Most of the industries today use of information technology to best services to their customers.

9

A. About tyre industries in India:- The origin of the Indian Tyre Industry dates back to 1926 when Dunlop

Rubber Limited set up the first tyre company in West Bengal. MRF followed suit in 1946. Since then, the Indian tyre industry has grown rapidly. Indian Tyre Industry now provides direct and indirect employment to nearly 1 million persons, including dealers, sub dealers, growers of Natural Rubber, employment in raw material sector etc. A vast majority of dealers handle multi-brands of tyres. Tyre companies also have exclusive retail distribution outlets.

Indian tyres are meant, and expected to perform, under different and extreme road conditions. Indian Tyre companies also follow a unique warranty system whereby pro-rata adjustment is given for manufacturing defects through the dealers. The Indian tyre industry has become one of the most competitive markets in the world and with the help of new technology, ultra-modern production facilities and availability of raw materials at lower rate, the sector is set to grow further.

Nature of the Industry:- Tyre Industry is highly raw-material intensive. Raw materials cost accounts for approx. 63% of tyre industry turnover and 72% of production cost. The industry is a major consumer of the domestic rubber market. Natural rubber

10

constitutes 80% while synthetic rubber constitutes only 20% of the material content in Indian tyres, 62% of total Natural Rubber consumption is by the Tyre Sector, balance by rubber based non-tyre industries. Interestingly, world-wide, the proportion of natural to synthetic rubber in tyres is 30:70.

Tyre Export:- Indian tyres have good acceptance in global markets. Compounded Average Growth Rate (CAGR) of tyre exports in the last one decade has been 8%. Exports to over 65 countries worldwide. 17% export to highly quality conscious US market. Other major export markets are - (countries in) Latin America; UAE, Bangladesh, Iran, Philippines, Vietnam, etc. Over 20% of truck and bus tyres (bias) produced domestically are exported. Emphasis now is on export of radial tyres, including Passenger Car radial tyres. All large tyre companies are exporting as a long term commitment.

Care Research Growth Estimates:-

Domestic market to grow at a CAGR (Compound Annual Growth Rate) Of 9 – 10 per cent till FY14:- The strain on automotive demand impacted the Original Equipment Manufacturer (OEM) demand for tyres in FY14. At the same time replacement demand which constitutes around 65-70 per cent of tyre demand also remained muted. Lower freight demand during past couple of years translated into lower movement of commercial vehicles resulting in low wear and tear of tyres,

11

consequently low replacements during FY14 CARE Research foresees the domestic tyre industry (replacement and OEM demand) to grow at a CAGR of around 9-10 per cent in tonnage terms. The growth would be driven by both OEM and replacement demand led by the economic revival.

OEM demand would witness moderate improvement during FY15:-

OEM demand which formed around 32 per cent of the total domestic demand (OEM and replacement) in tonnage terms during FY14 is likely to witness moderate improvement during FY15 driven by expected economic revival on account of new government formation. However, comprehensive revival of the OEM demand can be seen a couple of years away until the economic concerns completely fade away. CARE Research foresees Scooter and LCV tyres to drive demand for OEM segment. Economic concerns would fade away in medium to long term; the revival is expected in consumer spending as a result LCV demand would pose healthy recovery. Moreover, rising demand from female buyers combined with its growing preference among the urban middle and upper middle class male buyers as a second vehicle would fuel demand for scooters.

12

Replacement demand is expected witness healthy growth during FY15:-

Replacement demand currently forms around two-third of the total domestic demand for tyres in the country. CARE Research expects replacement demand to grow by 8 per cent during FY15. Strong growth in automobile sales in FY11 and FY12 would transform in healthy replacement demand for tyres in the next 2 year period. Moreover, dip in replacement demand growth was witnessed during FY14 as a result of postponements of purchases owing to strained purchasing power on account of high inflation and lower income levels. Consequently, delayed purchases would come into picture during FY15. T&B radials (TBR) to constitute almost half of the T&B category demand by next

T&B radials (TBR) to constitute almost half of the T&B category demand by next five years:-

CARE Research observed that during last 3-4 years, the radial tyres in T&B category has witnessed strong rise in demand. The T&B category is currently one of the least penetrated automobile segments by radialization. However, its penetration has increased nearly three folds from around 7-8 per cent in FY10 to 25 per cent in FY14 (Estimated). The jump in the demand for radial tyres has been mainly due to

13

improvement in road infrastructure and implementation of ruling given by Supreme Court in 2005 on strict implementation on overloading. In addition to this, fleet operators have also realized the comparative advantage of radial tyres over cross-ply in terms of cost economics, which has also supported the increase in the replacement demand for radial tyres in M&HCV segment. CARE Research estimates that the proportion of radial tyres in T&B tyre production to increase to around 48-50 per cent by FY19. ATMA (Automotive Tyre Manufacturers Association) data for financial

year 2016 According to ATMA data, in the financial year ending 31st March 2016. For the growth, tyre manufacturers are betting big on the improving demand in medium & respectively in FY 2015-16 , whereas passenger car tyres segment saw muted growth of 7 percent in the same period. Domestic tyre demand in all segments will grow, and Chinese imports in Truck and Bus Radials have come down. Production of vehicles in CV / LCV, Passenger Car , Tractors and Two-Wheelers should see an increase in 2016, as the overall economy may look up, more so in rural segment. In a Scooter segment, both in Urban and Semi-Urban, will continue to grow and with Rural market income likely to go up further,

14

Motorcycle sales also will see better numbers, in 2016. According to data released by industry body Society of Indian Automobile Manufacturers (SIAM) in December 2015, the passenger car segment continued to be on growth track for 14th consecutive month. Last month, the segment grew by 12.87 percent. The M&HCVs segment is also doing well. For the month of September 2015, this segment reported maximum growth of 63.76 percent. According to data from ATMA, import of radial tyres has reached 1, 10, 000 units per month between April-September, 2014.Heavy commercial vehicles (M&HCVs) and passenger car segments. "M&HCVs and passenger car segments of automobile industry have shaken off the recessionary phase and are posting decent growth rates", he added M&HCV and LCV tyre production was down by 2 percent and 14 percent.

15

2015-16: Favorable outlook on tyre Industries:- Domestic tyre industry expected to grow by 4%-8% over the next three

years: - The domestic tyre industry is estimated to have grown by 10%-12% during 2014-15, supported by 7.0%-7.5% growth in OEM segment and 12%-15% growth in the replacement segment. ICRA expects the tyre industry to report a growth of 4%-8% over the next three years, supported by pick up in auto OE demand across segment. Headwinds from the motorcycle and tractor segments, weaker exports and Chinese imports would however persist over the next 12 months.

Tyre imports surge in 2014-15 led by sharp inflow of two wheeler (2W) tyres

60%, 60%30%, 30%

10%, 10%

Segment mix (in tonnage): FY15

OEM Replacement Exports

16

Tyre imports, after recording a sequential annual decline of 5.5% during the period 2011-2014, grew by a sharp 19% (volumes) in 2014-15 led primarily by surge in 2W tyres. ICRA expects the trend of rising imports to continue over the near term with issues of capacity constraints in the 2W tyre segment and rerouting of US bound Chinese exports to India, with the recent imposition of anti-dumping duty on Chinese tyres in the US. Further, the anticipated spike in Truck and Bus (T&B) imports in 2015-16 - with the February-15 sunset of the erstwhile Anti-Dumping Duty (ADD) on T&B imports – is also expected to drive imports.

Tyre exports (value) de-grew by 0.7% for 2014-15; monthly volume trends

suggest weakening demand in key export destinations:- Exports on the other

60%23%

6%1% 9%

Product mix (in tonnage): FY15

CV PV 2W OTR TRACTOR Others

17

hand, de-grew by 3%-6% (in volume) across segments owing to weak off-take on the back of subdued global auto demand, especially in Africa and parts of Asia. The global shift towards radials is also leading to a drop in exports as India primarily exports cross ply. ICRA expects 4%-5% de-growth in tyre exports (value and volumes) from India during 2015-16, assuming stable Currency levels. That said, the levy of preliminary ADD by US on Chinese tyres may provide some opportunities for Indian tyre exporters too.

Large scale capital expenditure in full swing across several product

categories: - In line with our expectations, the tyre industry witnessed commencement of several large scale capex programs during 2015-16. ICRA Estimates that the industry is currently witnessing investments in projects worth over Rs. 56 billion – wherein these capacities are likely to come on-stream over the next 12 – 24 months (full ramp up in the next 12-18 months following commercial production). Over the medium term, ICRA anticipates that, while TBR capacities are expected to be absorbed in whole (gradually), utilizing of redundant bias capacities could be a concern.

Favorable input costs drive industry margins to all time high:- The

industry is currently experiencing one of the best periods recording sharp

18

expansion in profits driven by low input costs. While Natural Rubber (NR) prices trended up in Q4 2014-15 following policy measures, they are currently trading lower at Rs. 120-130 (per kg) levels. Crude linked derivatives such as synthetic rubber, carbon black and rubber chemicals too, despite rising in line with in crude oil prices during 2015-16, remain favorable. However, we expect the depleting NR stock and demand driven inflation to lead to higher input costs over the next 12-18 months which would lead to correction in profit margins to more sustainable levels.

Market is dominated by few large players, with MRF remaining the leader:- Over the years, MRF has been the dominant player in the country (estimated based on turnover) by virtue of its strong product capabilities apart from focused branding efforts backed by a deep distribution network panning across India and steady exports. However, several players (Apollo, JK and CEAT in particular) have challenged its market share in recent years through prudent brand management backed by sizeable investments in product development / capacities. Global majors like Goodyear and Bridgestone have also increased their share in India in recent years. Over the medium term, ICRA expects the competitive intensity in the industry to rise with expected on-

19

streaming of several Greenfield and Brownfield capacities by domestic as well as international players.

Despite fall in realizations industry recorded expansion in profits in 2014-15:- During 2014-15, the industry posted a 2.6% and 0.6% YoY(Year over Year) and sequential drop in revenues respectively as volume growth was nullified by drop in realizations with tyre makers passing on benefits of softer input prices. With the correction in input prices (both NR and other crude derivatives), the industry recorded a healthy operating and net margins of 17.2% (up 340 bps) and 8.8% (up 550 bps) respectively.

Credit profile improves in 2014-15:- For the fiscal 2014-15, the industry recorded a 6.9% YoY revenue growth following 5.8% growth in the preceding fiscal. With the decline in NR prices, the industry wide operating and net

29%

17%13%12%

7%5%

4%3% 4% 1% 5%Market Share(based on FY15 sales)

MRFAPOLLOJK TyreCEATBalkrishnaBirlaBridgestoneGoodyearTVS sricharaMetroOthers

20

margins expanded by 50bs each to 14.3% and 6.4% respectively. Industry capital structure improved to 0.6x in March 2015 (from 0.9x in March 2014) while on the coverage front, interest coverage improved from 5.9x to 6.9x and total debt to OPBDITA(Operating Profit Before Depreciation, Interest, Tax and Amortization.) improved from 1.9x to 1.7x for the same period under comparison.

Outlook: Revenues expected to grow by 7%-8% in 2015-16; however

profit margins are likely to correct:- ICRA (Indian independent and professional investment information and credit rating agency) expects the domestic tyre industry (revenues) to grow by 7%-8% during 2015-16, up from 5.7% during 2014-15. These competitive pressures are likely to impact the margins going forward, particularly exports, as manufacturers are forced to stay price competitive. ICRA expects operating margins to correct from 14.4% in 2014-15 to 13.9% in 2015-16 and further to 12.4% and 12.0% during 2016-17 as input prices start inching upwards.

Radial Tyre:- Indian Tyre Industry hitherto is predominantly a cross ply/bias tyre

manufacturing industry, particularly in the commercial vehicle segment

21

(truck, bus, LCV) whereas in the developed countries radialization level is much higher. In comparison to normal (Bias) tyres, Radial tyres offer higher life/mileage, lower fuel consumption, improved safety and ride quality and several other benefits. However, the initial cost of a radial tyre is approx. 25% higher though on a cost per kilometer (CPK) basis, radial tyre gives higher benefits. Though radial tyres offer multiple benefits, low level of radialization in the truck and bus segment is mainly due to higher initial cost (with limited demand pull), low level of fitment by OEs on commercial vehicles and poor road conditions. With an improvement in road infrastructure, radialization in the commercial vehicle (CV) segment needs an added thrust by way of:

i) Increase in fitment by the OEs (as in the case of passenger car tyres) ii) Increased demand for fitment of commercial vehicle radials in the replacement markets.

Tubeless Tyre:-Tubeless tyres or tyres (in some Commonwealth Nations)

are pneumatic tires that do not require a separate inner tube. The tubeless tyre is a step forward in the technological evolution of the tyre industry. Being a new

22

product, it offers higher margins to tyre makers compared to the old and well-established tubed tyres, where competition is far greater. They are cheaper to manufacture as tyre makers save on the cost of making a tube. As the volumes go up, cost savings can be as high as 5% of the material cost of a tyre. Tubeless tyres are a superior alternative to conventional tyres. They offer greater comfort in handling, reliability and fuel efficiency. Most importantly, they offer greater safety at high-speed driving. Tyres bursting and flattening at higher speeds on highways is a major cause of road accidents in India. Use of tubeless tyres minimize these risks significantly. Consumers, on the other hand, are willing to pay a premium for tubeless radials, thus providing greater margins to tyre makers. Besides, tubeless tyres are the norm the world over and vehicle makers in India are now gradually shifting to tubeless tyres from the conventional tube type ones.

23

B. PESTLE Analysis 1 .Political factors - The Customs Duty Rate on Tyres The peak rate of Customs Duty on all nonagricultural products were progressively reduced in the Union Budgets during the last few years, but in the case of Natural Rubber the rate of 20% has remained unchanged for over a decade. This has resulted in a serious anomaly of Customs Duty on raw-material (Natural Rubber - 20%) being higher than the Customs Duty on finished product (Tyres - 10%).

FICCI has also given the following recommendations for the tyre industry:

FICCI would request for waiver of Customs Duty on all raw materials not manufactured domestically.

To overcome problem with respect to exports of tubes / flaps, it is suggested to include 'Tyre Manufacturer' as a class of Exporters under Rule 20 of Central Excise Rules to allow them procure tubes and flaps without payment of duty for exports.

2. Economic factors - The Demand Cycle of the Tyre Industry

There is a hike in the tyre prices due to the devaluation in rupee. Around 15 % decline in rupee in the month of May and June has put pressure on the margins of tyre companies as the raw material costs have gone up. Growth in M&HCV replacement

24

demand is affected by as lower economic growth. Since there is a slowdown in demand the tyre giants are evaluating how much of the increase in cost can be passed on to the customers.

Raw materials comprise almost 85 % of the cost of the tyre and with the devaluation of rupee, the import cost has gone up. The tyre makers are still importing rubber, a key raw material, as it is cheaper. The OE tyre market is sluggish while the replacement tyre market is stable. The car sales are expected to pick up in the second half of the year provided the interest rates come down. In the current situation exports have become viable for the tyre companies. The economic turmoil in Europe has not affected exports as the region is not a big buyer. Indian exports are made to South America and Africa for exports in a big way.

3. Social Factors - Explosion in the Number of Nuclear Families

As the joint-family system crumbles and the number of nuclear families explode, more small families seem to be demanding a two/four wheeler for themselves. This has directly resulted in higher sales of tyres in the past decade.

Higher car density per family: The number of upper-class and upper-middle class families is more than one car per family, seems to be increasing exponentially. This

25

is especially true in cities where working members of same family find it difficult to survive without more than one car for transportation. With higher disposable incomes, these families are finally able to afford this need.

Shifting Savings to EMI culture: Another notable trend that seems to be fueling car sales (and therefore tyre sales) is the shift in the middle-class consumer saving habits. The Indian middle-class family has long been known for its saving frenzy. But with a younger workforce, higher disposable incomes, lower unemployment and the influence of globalization, the average Indian middle-class family is slowly warming up the idea of EMI and buying on credit. This has helped in furthering the sales of passenger cars significantly.

Rubber has helped the farmers to get a steady income, and they are able to get good money for their produce almost throughout the year. The best part about rubber is that it can yield almost throughout the year, only except for a brief gap in summer and here in winter. If the economic growth improves, then consumption of rubber will also go up.

4. Technical factors

The Indian tyre market has attracted global manufacturers on account of encouraging growth figures. These manufacturers are expected to invest huge amounts into the industry over the next few years, with a major proportion of this investment directed

26

towards the Truck & Bus (T&B) radial tyre capacity expansion. As per the study, several “Greenfield” plants are in pipeline to include new capacities. The implementation of brown-field projects is executed to cater to the growing demand. Greenfield units are expected to go on-stream in the coming years, just by the time when there will be an urgent need to bridge an increasing demand-supply gap in T&B radial tyre segment.

5. Legal Factors

Incidence of excise duty on tyres continues to be high around 24%, the same as on luxury products like air-conditioners etc. In addition there are several local taxes and levies imposed on tyres. Ultimate burden of high taxes falls on the consumer. Apart from high Excise Duty, various embedded taxes (viz. Sales Tax, Cess etc.) take the total tax incidence on tyres to an even higher level. Truck and Bus tyres are used in vehicles for transportation of common man and goods. In February, 1988, as per a directive of the Ministry of Industry, Embossing of MRP on truck and bus tyres was started. This was based on the recommendations of the Committee on Tyre Industry (1984, known as Satyapal Committee). In the last over 15 years, the economic scenario has undergone a sea change with liberalization, removal of controls and free global trade in most items. Tyre Industry is also deli censed. Major raw-materials of tyre industry (Natural Rubber and petroleum based materials) undergo

27

wide fluctuations in prices. In such a dynamic scenario, it is a not practical to emboss the price on tyres due to market dynamics.

6. Environmental Factors

Scrap tyres are about to become the latest headache for a government still smarting from the debacle over its mountain. New ways will have to be found to dispose the tyres that are stockpiled or put in landfills every year. The problem is huge. The number of tyres in use is forecast to increase by up to 60% by 2021, as the number of vehicles rises. Every day, 100,000 are taken off cars, vans, trucks, buses and bicycles. It is widely estimated that there are now more than 200m lying around. By their very nature, tyres are difficult to dispose of. They are designed not to fall apart while you're driving along the motorway, so they are one of the more intractable issues. Although tyres remain substantially intact for decades, some of their components can break down and leach. Environmental concern centers on the highly toxic additives used in their manufacture, such as zinc, chromium, lead, copper, cadmium and sulfur. The environment agency is launching a campaign later this month to alert the public and industry to the need to prolong the life of existing tyres and find new recycling methods. The best use of tyres is probably to retread them, but this is now expensive, and fewer than ever are recycled in this way. Around

28

48,500 tons are converted into "crumb rubber", used in carpet underlay and to make surfaces such as those on running tracks and children's playgrounds. More controversially, a further 18% are burnt as a "replacement fuel" in the manufacture of cement. This is fast becoming the most popular way of disposing of them, but it is of increasing concern to environmentalists and scientists. Tyre burning emits ultra-fine particles that have a toxicity all of their own. The toxicity is even stronger if this contains metals such as nickel and tin, which you get when you throw the whole tyre into the furnace. If the metal content of the particles goes up, then there is going to be an increasing impact on health.

C. Growth of tyre industries in India:-

The Indian tyre industry has been witnessing tremendous growth for the past few years on account of growth in automobiles demand, especially in passenger vehicles and two-wheeler segments. In fact, availability of raw material (natural rubber) and ultramodern production facilities has led the country to emerge as one of the world’s most competitive tyre markets. Driven by the strong demand in automobile OEM sector and replacement market, the India tyre industry has been witnessing stupendous growth from since the last two fiscal years.

29

Further, according to our research report, “Indian Tyre Industry Forecast to 2015”, the tyre production in India is anticipated to reach 191 Million Units by the end of FY 2016. Moreover, manufacturers are expected to invest huge amount into the industry over the next few years, with a major proportion of this investment directed towards the radial tyre capacity expansion.

During the course of our study, it has also been found that India’s market for radial tyres in commercial vehicles section is still in its infancy. The passenger car segment switched to radial tyres in a short period of time, with radial tyre penetration level for the category reaching 100%. However, penetration level of radial tyre has also started to increase rapidly in the light commercial vehicles and truck & bus segment. This segment will be the largest growth area over the next few years.

We have found that companies are also looking for overseas plantation of rubber to meet their raw materials need which will help the companies to acquire raw material at cheaper prices. Apart from this, we have done the tyre manufacturing cost analysis in our report and found that raw material account for the major share in total cost. In addition, we have separately analyzed various raw materials cost in our report.

Further, tubeless tyres are gaining ground in Indian market as almost all the automobile manufacturers are launching their vehicles with tubeless tyres. This

30

shows that tubeless tyre market will exhibit tremendous growth in the coming years.

Our report, “Indian Tyre Industry Forecast to 2015”, evaluates the future growth potential of India’s tyre industry, and provides statistics and information on market structure, tyre production by segments, exports and imports trends. Tyre market projections, in value terms, have been provided for all prominent segments, including passenger cars, utility vehicles, multi-purpose vehicles and two-wheelers.

Besides that, through the section of key players, we have tried to provide the insight of current market scenario and existing competition to our customers. Additionally, to provide clearer picture of competitive landscape, we have also included future plans & strategy of key players coupled with the comprehensive analysis of their strengths and weaknesses. All the above information covered in report will provide clients with cutting edge market intelligence and help them make sound investment decisions

D. Various types of Tyre segment:-

The Indian tyre industry produces the complete range of tyres required by the Indian automotive industry, except for aero tyres and some specialized tyres. Domestic

31

manufacturers produce tyres for trucks, buses, passenger cars, jeeps, light trucks, tractors (front, rear and trailer), animal drawn vehicles, scooters, motorcycles, mopeds, bicycles and off-the-road vehicles and special defense vehicles. The scenario in India stands in sharp contrast to that in the world tyre market, where car tyres (including light trucks) have the major share (88%) by volume followed by truck Tyres (12%). Truck and Bus Tyres: - The truck and bus tyre segment accounted for 19% of tyres produced in India in FY2015. Every truck/bus manufactured generates a Demand for seven tyres (six regular and one spare) as against three in the case of two-wheelers and five for passenger cars. In addition, the price of a truck tyre is significantly higher than that of a passenger car tyre (roughly 10 times) or a motorcycle tyre. Thus the demand multiple emanating from the commercial vehicle segment is highest in value terms. Given the regular use and heavy wear and tear of truck and bus tyres, the demand from the replacement market in this segment worked out to 68% of the total demand for truck and bus tyres in FY2015; the OEM demand accounted for around 9% the same year. With the Indian manufacturers of cross-ply tyres focusing on the export market, this segment accounts for around 22% of the demand for truck and bus tyres.

32

Passenger Car Tyres The passenger car tyre segment accounted for 17% of all tyres produced in India in FY2015. With passenger car production witnessing a growth of 12% in FY2015 over the previous year, OEM demand accounted for about 41% of the total sales that year. The replacement market accounted for around 58% of the total sales of passenger car tyres in FY2015. Exports accounted for 4% of the total passenger car tyre demand in FY2015. With the stock of cars increasing, replacement demand is likely to continue.

Motorcycle Tyres Motorcycles accounted for 76% of two-wheelers sold in the domestic market in FY2016. Motorcycle tyres constitute the largest segment of the domestic tyre industry (29% of total tyre demand in FY2015). The replacement market accounted for around 49.8% of the total motorcycle tyres sold in FY 2015, while OEM demand accounted for around 50%.

Scooter Tyres Scooters were the dominant segment in the Indian two-wheeler industry till FY1998, accounting for around 42% of domestic two-wheeler sales. However, the introduction of new motorcycle models has seen the share of scooters declining to 19% of domestic two-wheeler sales in FY2015. The OEM segment accounted for

33

around 34% of the total sales in the scooter tyre segment in FY2015, with the rest being accounted for by the replacement market. Segment According to Vehicle Industry:-

Vehicle Manufacturers or OEMs:-

The demand from the OEM segment is a derived one and directly correlated to the level of automotive production. The OEMs demand varies significantly across categories from between 8% for truck and bus tyres to over 50% for some other segments like, jeeps and mopeds.

Replacement Market :-

The replacement market, including State transport undertakings and Government buying, accounted for around 61% of the total tyre demand in FY2015. The

34

demand in the replacement market depends on the vehicle population, the level of economic activity, life of the products transported, kilo meter per vehicle, the price of the tyres and the quality of the existing road infrastructure. Additionally, the replacement market, which offers better margins, is extremely competitive. The replacement market is dominated by the truck and buses segment, which accounted for 22% of all tyre sales in the replacement market in FY2015.The large size of the replacement in turn is determined by the interplay of various factors as discussed below:- The replacement demand may be lower because of longer replacement intervals and lower business mileage if the economic activity slows down.

Replacement demand in India is higher because of a low vehicle scrap page rate.

Poor road conditions by lowering the life of tyres, have a positive impact on replacement demand.

Radialization of tyres is likely to result in lower replacement demand. While car radialization in the country has reached a level of 65%, truck and bus radialization stands at just 15%. Poor road and support infrastructure as well as traditional vehicle designs act as a barrier to radialization in the commercial vehicle segment. Radial technology for

35

trucks and buses would help increase operating efficiencies by delivering better mileage and minimizing wear and tear.

Industry's SWOT Analysis:-

Strengths

Revival in economic activity:- After reporting falling car sales over the past two fiscal Year, India's automotive industry had begun a gradual recovery as customer sentiment improved following the general election in May 2015. India's new government, led by Prime Minister Narendra Modi promising to revive economic growth and kick-start investment. With economic growth, demand revival likely to sustain in consumer durables, particularly in automobiles, it would have a positive impact on the tyre sector. Besides, emphasis on infrastructure in terms of development of roads will also increase demand for tyres.

R&D (Research & Development) initiatives by top players:- With the focus on providing better products and services, the Indian tyre manufacturers are setting up well-equipped in-house R&D centers with emphasis on developing cutting edge technology for compound development, development of new designs for different segments, reinforcement materials, cost

36

optimization for quality improvements and orientation towards changing customer requirements. Although most of the tyre players do not engage in basic research due to the high costs involved, but a significant proportion of R&D effort in the tyre sector is being carried out by four- five top companies.

Limited competition:- Despite having more than 40 players in the Indian market, the industry's competition is limited to top ten players only as the industry is controlled by these top ten players, holding 90 to 95% of the market share.

Weakness

Highly capital intensive:- The tyre industry is highly capital intensive and the level of technological expertise required is also highly specific. One requires roughly Rs 400 crore to set up a radial tyre plant with a capacity of 15 Lakh tyres and around Rs 150-200 crore, for a cross-ply tyre plant of a 15 Lakh tyre-manufacturing capacity.

Fluctuation of exchange rate:- As most of the tyre companies are expanding their operations around the globe there is a widespread impact of sharp currency fluctuations. In simple terms, it shrinks the receivables of exporters

37

and makes life easier for importers as the prices of imports get cheaper. A sharp fluctuation in the currency hits the small and mid-cap companies harder than their larger peers, as the larger players can manage the situation through actively managing (hedging) the currency and working with the scale. Eg. Balkrishna Industries' approximately 90% revenues are generated through exports and the Company also imports lot of its raw materials and capital equipment’s; it is exposed to high risks due to currency fluctuations.

Pricing Pressures:- The tyre industry in India is a highly competitive sector with a very cut throat competition among the leading players. Any rise in raw material costs would result in pressure on the realizations and though the players vouch to increase the prices, due to competitive pressures, they have not been able to pass on the entire increase to the consumers.

Opportunities

Improvement in Automobile Industry prospect:- Growing economy leads to improving Automobile Industry prospect which further leads to Increasing

38

OEM demand that in turn leads to Subsequent rise in replacement demand. With continued emphasis being placed by the Central Government on development of infrastructure, particularly roads, agricultural and manufacturing sectors, the Indian economy and the automobile sector/ tyre industry are poised for an impressive growth.

Access to global sources for raw materials:- with the access to global sources for raw materials, Indian tyre industry can stabilize price fluctuation in raw materials and control their margins. Furthermore, Indian tyre companies can also follow and maintain global quality standards and international process and system certifications, which will help them during export. Eg. Balkrishna Industries imports natural rubber and has very little exposure to domestic rubber price fluctuations and thus margins have remained strong.

Exploration of new markets:- Many Indian tyre companies are exploring the opportunities to enter into new markets. Recently, Apollo Tyres confirmed Hungary as the location for its first Greenfield facility outside India. The company has decided to setup facility over there after receiving the necessary approval from its board of directors on the proposed investment towards setting-up a Greenfield facility in Eastern Europe. This facility will produce

39

both, Apollo and Vredestein branded tyres, and will cater to the entire European market, and will complement Apollo Tyres' existing facility in the Netherlands.

Threats

Introduction of other transport facilities:- Introduction of other transport facilities like metro, monorails and local trains keeping pollution hazards caused by combustion of automobile fuels.

Cheaper imports of Tyres:- The major concern for the Indian manufacturers is that the price of the tyres in the overseas market like China and South Korea is comparatively low compared to domestic market. Therefore, many automobile manufacturers have switched to the option of importing tyres from international market. The landed cost of tyres from China is much lower than the Indian price. In addition, tyres from South Korea are imported at 30% customs duty while from other countries the duty levied is 35%. Therefore in both cases the Indian tyre manufacturers are on receiving end.

Expectation of rise in natural rubber prices:- Natural rubber prices, which accounts for over one third of total raw material costs, are expected to rise as

40

Total output of Natural rubber in India is likely to drop over 10 percent in 2014/15 from the previous crop year, hit by heavy rain in key growing regions and as farmers suspends tapping due to lower prices.

Market Players

Some of the major players in the Indian tyre industry are MRF, Ceat, JK Industries, Apollo Tyres, Bridgestone India, Goodyear India, Falcon Tyres and TVS Srichakra, Michelin, BKT.

41

JK Brief Profile About JK Organization The J. K. Organization is a group of companies with headquarters in Delhi and run by the Singhania family which rose to prominence in Kanpur, India, under Lala Kamlapatji, a fighter for Indian independence who burnt up his stock of English cloth on the call of Mahatma Gandhi during his satyagrah call against British rule. Kamlapatji also set up the Uttar Pradesh Chamber of Commerce. The name JK is derived from the initials of Kamlapatji (1884–1937) and his father Seth Juggilal (1857–1922) who belonged to the family associated with the Marwari firm Sevaram Ramrikhdas of Mirzapur .The JK group was founded in 1918. The group rose in importance in the 1960s and 1970s when it occupied the third position as an industrial conglomerate after the Birla and Tata conglomerates. The family is currently divided into three main groups headed by 3 patriarchs namely Dr.Gaur Hari Singhania based out of Kanpur, Shri Hari Shankar Singhania based out of Delhi and Shri Vijaypat Singhania, based out of Mumbai. These three patriarchs are first cousins who now run independent businesses. The Kanpur family runs JK Cements, JK Techno soft, the Delhi family runs, JK Tyre, JK Papers, JK Lakshmi Cement, Fenner India, JK Risk Managers & Insurance Brokers and the Mumbai family runs the Raymonds group of companies. To maintain the family history and legacy, the various family run companies though completely

42

independent and many publicly owned and listed subscribe to the JK Group Logo and the oldest male member of the generation in power by tradition becomes the President of the JK Group (The Association of Trade unions) and allots the logo to companies run by various family members as and when the apply for membership and pay an annual fee for the same.

Product of JK Organization

43

JK TYRE & INDUSTRIES LTD. About JK Tyre JK Tyre & Industries Ltd is an Automotive Tyre, Tubes and flaps manufacturing company based in Delhi, India. The name JK is derived from the initials of Kamlapatji (1884–1937) and his father Seth Juggilal (1857–1922).The company is the market leader in Truck/Bus Radial tyre in India and is the only tyre manufacturer offering the entire range of 4 wheeler radials for Trucks, Buses and Cars. JK Tyre has a worldwide customer base in over 80 countries across all 6 continents. It is a part of J. K. Organization group of Companies. JK Tyre acquired Mexican tyre major – Tornel in 2008. With state-of-the-art modern production facilities in all 9 plants, total production capacity is almost 20 million tyres p.a. JK Tyre & Industries Ltd is also part of the JK Organization, one of India’s leading private sector conglomerates with multi-product, multi-location, multi-country and multi-business operations founded more than 100 years ago.JK Tyre is one of India’s leading four-wheeler tyre manufacturers and among the 25 largest tyre manufacturers in the world. JK Tyre pioneered radial technology in India in 1977; the Company is the leader in the country’s truck /bus radial segment today.

44

Mission:-

Be a customer-obsessed Company – where the customer first 24x7. Be India’s number one tyre brand. Be the most profitable tyre company in India. Sustain a motivated and committed team for performance excellence.

Vision:-

To be amongst the most admire companies in India committed to be excellence.

Research and Development It has an R&D division, Hari Shankar Singhania Elastomer And Tyre Research Institute (HASETRI) with headquarters at Kankroli under the directorship of renowned scientist, Dr. Mukhopadhyay. It has two more branches: one in Faridabad and one in Chennai. It is known for its state-of-the-art Finite Element

45

Method, NVH and tyre-testing capabilities. This R&D facility is one of its kind in Asia. HASETRI is India's first and foremost independent Research and Testing Center, which fulfills the Nation's need for developing newer and better technologies for Elastomer and Tyres. It is recognized under SIRO (Scientific and Industrial Research Organization) by the Department of Scientific and Industrial Research (DSIR), Govt. of India. It is also acknowledged by the Indian Institute of Technology (IITs) and other universities for registration leading to higher studies. Apart from the R&D facility there is also a Product Development Cell present in the Faridabad facility. The Chennai operation is a joint initiative of IIT Chennai and JK tyres.

46

JK Tyre –The Growth Journey

47

Organizational Structure

Marketing Strategies:- o Analysis of 4 P’s

Product: - 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. JK Tyre - one of the leading

48

tyre manufacturers in India that provides best tyres with an array of products including car/bus/truck tyres. JK Tyre & Industries Ltd, pioneers of radial tyres in India, showcased their formidable new product range covering different product segments-Passenger Cars, Truck, Light Commercial Vehicle and Farm Radials at this year’s.

49

Price: - The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. Place: - Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet.

50

Promotion: - Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public

51

relations, and word of mouth. Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers.

52

JK Tyre – Key Partners to Leading of OEMs

SWOT Analysis:-

Strengths

Strong brand image Being quality oriented rather than quantity oriented

53

Large product width & line (product mix) Economies of scale due to optimum capacity utilization Very large distribution channel Collaboration with Vikrant Tyres, known for their technological superiority,

bringing together performance, economy, durability & comfort. Strong Financial position

Weakness

Less Brand awareness. Less concerned about small car segment.

Opportunities

An enthusiastic workforce and growing middle class population. High growth potential for its exports, especially in Europe.

Threats

Entry of new player with newer and better technologies in small car tyre segment.

So many close competitors like Apollo, Birla, Ceat, Modi, Kaizen etc.

54

Competitors of JK Tyre:-

55

JK Tyre entering in Two Wheeler Segment

JK Tyre & Industries Ltd. the country's third-largest tyre maker, the company plans to produce two-wheeler tyres in-house at the recently acquired Kesoram Facility in Haridwar and will not outsource like many other. It to enter the two-wheeler segment through the trading route as it steers clear of investing a fresh in manufacturing facilities in a slowing auto market. JK is very optimistic about the two-wheeler tyre market and plans to sell through the OE and after market route. They are working on signing up with vendors and they are also exploring both local and international vendors. They will service both the after market and OEM (original equipment manufacturer) segment.

Tag line of two wheeler tyre is CHALLENGER (Har Challenge ke liye tyar) which means don't let things stay the way they are, they go against something already in place and they will ready for every challenge. It’s a brand promise also.

Challenger Tyre Series for two wheelers. Costs less but comes with unmatched

performance, be it mileage, durability or better grip.

56

Brand Promise - “Harr Challenge ke liye Taiyaar”

Product Deliverable – “High performance with unmatched price”

Marketing Strategies:- o Analysis of the 4 P’s:-

1. Product: - The basic definition of a product is anything that can be offered to a market to satisfy a want or need. JK Organization differentiates itself from the competition, on its two pillars of High Quality and Endurance. Product are offering in market are two wheeler and three wheeler.

Motorcycle Scotty

57

Scooty Product Range / Product Portfolio:-

58

2. Price: - The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product.

59

3. Place: - Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. 6 Tyre plants located in various places in India. 4000 Dealers and 1000 exclusive in India. Basically JK tyre sell a product on 1800 Existing dealers and new motorcycle dealers (non truck 2/3 wheeler sellers)

4. Promotion: - Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and one of the most notable means of promotion today is the Promotional Product, as in useful items distributed to targeted audiences with no obligation attached. JK Tyre promote a two wheeler tyre by provide a

60

product catalogue and provide free tyre stand to dealer with unconditional warranty strap.

61

Description of tyre :-

1. CHALLENGER F21 Straight line ribbed patterns with lateral cuts facilitates easy handling and good traction, especially at curves

High performance compound ensuring long life with good dry grip and wet traction

Steady ride imparted by curb rib at buttress.

Unique tread pattern provides higher mileage & lesser slippage

62

2. CHALLENGER R42

FEATURES & BENEFITS • Double grooves at center provides stable

ride with good handling • Block design with uniform grooves to

avoid aquaplaning • Unique tread pattern ensures lesser tread

wear leading to longer life

63

3. Challenger R43

FEATURES & BENEFITS • Strong & fortified construction • Proportionate tread design for

higher safety in adverse conditions • High performance compound

gives better resistance to gravel & enhances breaking ability

64

4. Challenger R45

FEATURES & BENEFITS • Reinforced carcass enables it to

perform exceptionally on all terrains

• Directional pattern for stable cornering at high speed

• High performance compound & flexible sidewall makes it puncture immune & better at absorbing shocks

65

5. Challenger S61

FEATURES & BENEFITS • Resilient carcass ensures versatility

on all terrains • Extraordinary traction on trails &

dirt roads • Blocks at mid shoulder and edge of

shoulder provides better wet & dry traction

66

6. Challenger S63

FEATURES & BENEFITS • Center groove pattern • Uniformly distributed lateral grooves

gives reliable & comfortable ride with safe high speed cornering

• Fortified carcass & supple sidewall provides resistance against punctures with better shock absorption

• Centre rib with sipes at the shoulder gives better dry & wet traction

67

Competitor in market for Two Wheeler Tyre Segment 1. MRF

About the Company:-

The company, MRF Ltd., originally started as a small manufacturing unit of balloons, latex cast squeaking toys and industrial gloves.

A young entrepreneur, K. M. Mammen Mappillai, opened a small toy balloon manufacturing unit in a shed at Tiruvottiyur, Madras (now Chennai).

The company established its first office in 1949 at Chennai

It began the manufacturing of tyres in 1961.

Vision:-

“The vision of MRF is to emerge as pre-eminent global players in the field of polymers and make INDIA a global super power in terms of technology and life.”

Mission:-

“The mission of MRF is that zero defect, zero break down, zero accidents, zero pollution, and there by zero losses with their new performance standards”.

68

Objective:-

The main quality objective of the company is to attain global standards through the continuous improvement in the quality of products and services and also to maintain market leadership.

Goal:-

The main goal is to optimistic and continue to make investments in our existing plants to increase overall revenue and share. Their products continue to be the preferred choice of the customer even though many options are available in the market. They are the first Indian company to supply aircraft tyres to the Indian defense, joining the league of select global companies who have the expertise to manufacture these tyres. Operations continue to be profitable and plans are afoot to increase its revenue further.

Marketing Strategies:- o Analysis of the 4P’s:-

1. Product:- The basic definition of a product is anything that can be offered to a market to satisfy a want or need. MRF differentiates itself from the competition, on its two pillars of High Quality and Endurance.

69

List of Product:- MRF Zapper D (Scooter) MRF Nylogrip (Scotter) MRF Zaffer FG MRF RIB and RIB plus. MRF Mogrip Moto D MRF Mogrip Meteor M

2. Place:- 7 plants located in various places in South India. 2,500 outlets in India and exports to over 65 countries worldwide. Its distribution channels include:

Factories Divisional And Regional Distribution Centres Carrying And Forwarding Agents Dealers

3. Price:- MRF has been a leader in the Passenger Car tyre segment. By virtue of their market share, they have traditionally been price makers. The rest of the tyre industry has followed the pricing cues set by these leaders. Mark-up pricing is the common pricing method followed across the tyre industry.

70

4. Promotion:- Excellent brand recognition in all categories of vehicles in the tyre market. Sports celebrities and event endorsements- a major vehicle for promoting their brand.

2. CEAT

About the Company:-

Ceat Ltd. is a part of the RPG conglomerate.

The company offers the widest range of tyres to leading Original Equipment Manufacturers across the world. They manufacture a range of tyres catering to various segments. The company operates two plants in Maharashtra.

The company has a robust national network consisting of 34 regional offices and over 3,500 dealers. The company has their presence in 110 countries.

Products are known for their superior quality & durability and are recognized as being ‘born tough’. Presently focusing on catering to the fast growing passenger car and two wheeler industry.

Vision:-

“CEAT will at all times provide total customer satisfaction through products and services of highest quality and reliability”.

71

Mission:-

“To nurture an exciting and challenging work environment with fairness & transparency”.

Objective:-

To continuously focus on new product launches and has launched over a 100 new products.

Goal:-

To out perform the industry and to emerged as one of the fastest growing tyre companies in the industry.

Marketing Strategies:- o Analysis of the 4P’s:-

Product: - Product 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

72

groups, are marketed though same types of outlets of fall within a given price range.

A company’s product has a certain width, length, depth, and consistency are:-

The width of product offers to how many different product lines the company carries.

The length of product refers to total number of items in its product mix. The depth of product refers to the total number of items in its product mix. The consistency of product refers to how variants are referred of each product

in the line. List of Product:-

1) CEAT Zoom 2) CEAT Grip 3) CEAT little master 4) CEAT milaze 5) CEAT secura sport 6) CEAT Vertigo Sport

73

Price: - There are two types of pricing policy are:-

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. 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.

Promotion: - Promotion is a form of communication to accept ideas, products, and services and hence persuasive communication becomes heart of promotion.

74

It is said that, “In a competitive market without promotion nothing can be sold”. Generally CEAT ltd gives advertising on television and in newspaper mostly.

Place: - 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. 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.

SWOT Analysis:- Strengths

Right products, quality, reliability. 100% vendors are ISO Certified. Superior product performance. Products have required accreditations. High degree of Customer satisfaction. Brand Image.

75

Weakness

Not very popular in International market. Delivery staff needs training. Customer service staff needs training.

Opportunities

Profit margins will be good. Could extend to overseas. Could seek better supplier deals. An applied research center to create opportunities for developing techniques

to provide added value services.

Threats

Vulnerable to reactive attack by its competitors. Lack of infrastructure in rural areas could constrain investment. Sales depend on car sales. High Volume/Low cost market is intensively competitive.

76

In Shop Branding of MRF and Ceat :-

Define: - In Shop Branding is a very simple concept. It is the promotion of any store or the chain of product we are making or different type of products we are selling in our store. In shop branding is the best marking alternative inside showroom and shops and so on the ground that it directly comes in the customers’ line of vision when they are enter in the shops.

The procedure of marketing begin with former visit estimation of cons pious , eye – getting spaces accessible in the shops , after that imparting presentation to customer & adjusting fine art according to items showed adjustment measured spaces.

77

1. MRF

78

2. Ceat

Description about MRF: - Sign board is good.

They are use Red color in sign board so they are more attractive. Arrangement of stocks are good. Lighting and interior are very nice

Description about Ceat:- sign board is also good Racks for tyre are good. Lighting and interior are nice.

79

Research Methodology of the study and Data Collection Data Collection:- Sample Area Sample size was collected from South Delhi, Faridabad, NCR region, North Delhi. And the customers, I had to mailed them the questionnaires and meet some of them personally and ask them to provide their response to questioner. A.) Primary Interview Personal Interview (Unstructured) Survey through questionnaires.

B.) Secondary Source In regards to know the company history and information , its market share competitors for that use the secondary data source .i used the official website of JK Tyre for collecting these all information other website as well which provide some other information about the company and competitors . And use the company magazine for knowing about the company events, awards and know about upcoming products.

80

Methodology The data for the present study was collected from 20 dealers and 32 customers in Delhi. The research instrument used in collecting primary data was a Questionnaire. The questionnaire was prepared on the basis of information gathered from mentor and sales officer of the company. The analysis of the information gathered has been made on the basis of the clarifications sought during the personal discussions with concerned people and perception during the personal visits to the important areas of services. The collected data are analyzed on the basis of percentage methods and presented through graphs. Objectives of the study:-

Study and analysis of dealer policies for two wheeler tyre. Customer’s preference and analysis for two wheeler tyre.

81

Data analysis & Interpretation:- Interpretation:-

During my internship I conducted two surveys to measure the satisfaction level of different companies of customers for e.g.:- MRF, CEAT, TVS, MECHILIN, APOLLO, ETC. Every companies has two categories of customers one is their dealers and another category is the end customers or the ultimate buyers. With the help of these things I have to complete my project. Analysis of Dealer Satisfaction Survey:- The questionnaire that I prepared to survey the dealers contained 13 questions. But the below analysis will focus only on those questions that are related to the subject matter and that will give the best result of the survey. By the end of my internship I had 20 dealers interviewed in Delhi. Few are authorized dealers and few are sub dealers. The analyses of the key questions are given below:-

82

1. Preference of dealer while selling bike tyres. I enquired from the dealers for their preferred brand of tyre while selling. Since dealers directly influence the end customer while buying process. Preference of dealer depends on various factors such as incentive, relation with company, service provided by company etc. Result of my survey has been mentioned below.

Observation:- From the result it is evident that dealer almost equally push for MRF and Ceat

brands, followed by TVS and other brands. Reason for push from dealer could be due to incentive or pull of brand may

also be working. As per dealers since customer always opt for OEM fitted tyres until and unless customer has faced some issue with OEM brand.

MRF has the strongest presence in the market. It is popular in the market out of every other brand. That why easily sell a tyre for dealers

9, 35%

8, 31%3, 11%3, 11%1, 4%1, 4%1, 4%

Preference of dealer while selling bike tyresMRFCEATTVSMECHILINBRIDGESTONEAPOLLOCONTINENTAL

83

2. Product of particular brand, which is fast selling.

Observation:- From the collected results it’s been observes that MRF’s Nylogrip and zapper are

most selling products. Whereas for Ceat it is Milaze and securagrip are fast selling. As Nylogrip (MRF) capture a market 75%, second position was captured a secura zoom (ceat). This tyre is preferred by customer because of good mileage, good grip and good performance.

11%, 11%

31%, 31%

4%, 4%35%, 35%

11%, 11%4%, 4%4%, 4%

Product (of your preferred brand)JUMBO (TVS)MILAZE AND SECURA ZOOM (CEAT)ACTIGIP(APOLLO)NYLOGRIP AND ZAPPER(MRF)PILOT SPORTY (MECHILIN)BATTLAX AUO(BRIDGESTONE)

84

3. Which size of tyre is fast selling?

Observation:- From the graph it is evident that size of 100/90, 3.00-18 in rear and 2.75 in front

tyre are most selling. Reason for the same could be population of vehicle in which said tyre size fits.

00.5

11.5

22.5

33.5

44.5

Total

Front size100/80-17 M/c 52P(nylon grip zapper Fx)100/80-18 56P(nylon zapper -y)2.7-18 42P2.75 -18 42P 4PR2.75 -18 42P(secura zoom)2.75-17 41P2.75-17 41P 4PR2.75-17 41P 4PR(Aft 525)2.75-17 4PR (nylon grip)2.75-17 4PR 41P(conti metro politan)2.75-17 4PR41P2.75-18 42P2.75-18 42P 4PR2.75-18 42P 4PR(secura zoom)2.75-18 42P(JAP 360 Maxi RIB)2.75-18 42P(mystery)

012345678

Total

100/90-17 55P100/90-17 M/C 55P100/90-17 M/C 55P(mogrip meteor)100/90-18 M/C 56P100/90-18 M/C 56P(zapper)100/90-M/C 55P(Nylon Grip Zapper)120/80 M/C 62P120/80-18 62P (nylon)130/90-15 66P130/90-15 M/C 66P140/60R17M/c63PRadial(cekz)2.75-18 44L 4PLY2.75-18 48P 6PR2.75-18 48P 6PR (nylon secura zoom +)2.75-18 48P(mia gic)2.75-18 50L 6PR(Mogrip Moto)2.75-18 6PR 48P3.00-17 50P 6PR(nylon grip)3.00-17-0P 6PR3.00-18 52P3.00-18 52P3.00-18 52P (magic)3.00-18 52P 6PR

85

4. Factors which influence dealers to promote particular brand.

Observation:-

From the research done only two factors plays important role. First it is incentive which accounts for 60% and second it is customer demand which accounts for 30%. Even dealer converts these 30% into first category by selling skills so that his interest of getting incentive is safeguarded.

1, 5% 1, 5%0, 0%

12, 60%

6, 30%

Factors which influence dealers to promote particular brand.

Incentive / CommissionCustomer DemandLess ReplacementEasy ServiceBest Quality

86

5. Customer pull for particular brand as per dealer’s experience.

Observation:- From the research done it’s been found that customer pull for MRF is highest

followed by Ceat. It may be due to kind of advertisement and promotions done by above said companies are higher than any other.

Also most of the new vehicles gets launched with MRF/Ceat hence customer prefers even the same while replacement.

0123456789

10

MRF CEAT APOLLO TVS CONTINENTAL MECHILIN

Customer pull for particular brand as per dealer’s experience.

Series 1

87

6. Dealer’s preference for incentive format.

Observation:-

From the data collected it’s been found that 90% dealers prefers cash discount whereas only 10% dealers accounts for cash + gifts.

The dealers think this sort of schemes give them a motivation to do business

with a certain brand and to stay competitive in the market. Gifts scheme 10%. According to the dealers it is a very common approach

and almost all the companies do that. But if the company offers something

Gift, 2, 10%Foreign trip, 0, 0%

Cash Discount, 18, 90%

Dealer’s preference for incentive format

GiftForeign tripCash Discount

88

that has never been introduced before, then the dealers might be interested in availing such offers.

It may be due to high competition in market among dealers for better pricing.

89

7. Dealer’s expectation from JK Tyre for sales incentive.

Observation:- From the survey done it’s been found that minimum expectation of dealers

are 15% whereas maximum it is 22%. Opinion of most of dealers of having 15% minimum sales incentive is for actual saving after sales. Hence having discount for dealers in the range of 20-25% may work since in that case dealer would be able to give additional discount of 10% to customer.

15%, 13, 65%16%, 4, 20%

17%, 1, 5%20%, 1, 5% 22%, 1, 5%

Sale commision

15%16%17%20%22%

90

8. Credit day’s expectation from JK tyre to dealer.

Observation:- 30-45 days of credit is being expected by dealers, it may be due to their current

terms with other manufactures. However having 30 days credit with two rotations may work better.

9. Security deposit dealers expect to keep with JK Tyre.

Observation:- From the data collected dealers expect Rs. 2-3 lacks of security deposit.

13, 65%6, 30%

1, 5%

Credit Days

3045Same Day

11, 58%4, 21%1, 5%

2, 11% 1, 5%

security deposit2 LAKH1 LAKH3 LAKH10 LAKHSAME DAY15 LAKH

91

10. Service level expectation by dealers for JK Tyre.

Observation:- It’s been observed that dealers demand for easy replacement or unconditional

warranty on tyres in order to have hassle free transaction with customer.

10, 50%8, 40%

2, 10%

service are expect from Tyre industries

Unconditional warrantyEasy ReplacementBoth

92

11. Current feedback for JK tyre.

Observation:- Commission:- 0 to 2 Dealer say commission given by JK tyre is Excellent. 0 to 6 Dealer say commission given by JK tyre is Average. 0 to 12 Dealer say commission given by JK tyre is Not Good. Quality:- 0 to 15 Dealer say Product Quality of JK tyre is Good. 0 to 4 Dealer say Product Quality of JK tyre is Not Good. Customer Demand :- 0 to 15 Dealer say Customer Demand of JK tyre is Good. 0 to 4 Dealer say Customer Demand of JK tyre is Not Good. Services:- 0 to 1 Dealer say Service of JK tyre is Excellent. 0 to 13 Dealer say Service of JK tyre is Good. 0 to 2 Dealer say Service of JK tyre is Average. 0 to 3 Dealer say Service of JK tyre is Not Good.

12. Suggestions by dealers Observation:- Most of the dealers are in view of improvement in quality of JK tyre. So prior

to any new launch JK tyre should focus on position itself as quality tyre manufacturer in two wheeler segment.

93

About Customer Satisfaction

Customer satisfaction:- In a competitive market place where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

Measuring customer satisfaction:- Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products.

94

Improving Customer Satisfaction:- The International Customer Service Institute (TICSI) has released The International Customer Service Standard (TICSS). TICSS enables organizations to focus their attention on delivering excellence in the management of customer service, whilst at the same time providing recognition of success through a 3rd Party registration scheme. TICSS focuses an organization’s attention on delivering increased customer satisfaction by helping the organization through a Service Quality Model.TICSS Service Quality Model uses the 5 P's - Policy, Processes, and People, Premises, Product/Services, as well as performance measurement. The implementation of a customer service standard should lead to higher levels of customer satisfaction, which in turn influences customer retention and customer loyalty.

95

Analysis of Customer Satisfaction Survey:- Next I prepared a questionnaire through which I surveyed the customers. Altogether, it had 22 questions. But again my analysis will focus only on those questions that will give me a good insight on the satisfaction level of the customers. I interviewed 32customers.

Preference of customer while purchasing bike tyres. As dealers I started with the same question to the customers- which are the factors that influence their purchase decision of a particular tyre. I mentioned 7 factors (Mileage, Price, Brand Name, After Sales Service, Availability,

96

Credit Purchase and Warranty and Claim Policy), tubeless tyre prefer or not and also asked them if they have anything else in their mind and told them to mention that as well.

(A) In Pie Chart: Customers preferred brand of tyre as per survey:-

Observation: - From the above pie chart it is shown that majority of respondent. (56%) prefer MRF tyre because smooth driving, better grip, better

quality and reasonable price. (32%) of respondent prefer Ceat tyre because better mileage and good

experience. (6%) respondent prefer Apollo tyre for quick service and flexibility.

10, 32%

18, 56%

2, 6%1, 3% 1, 3%

Prefer Brand as per Respondent

CeatMRFApolloMechilinOthers

97

(3% respondent prefer Michelin tyre for better claim policy, better quality and also flexible.

(3%) respondent prefer others brands. Undoubtedly the answer was MRF tyre and they also cleared out the reasons why they use such brand. Different opinions came up. Most of them them said that they are old user of MRF.

o MRF came quite early in the market and has established a strong appearance. It has earned much dependency of its customers. Again, they said that since it is an Indian company they know about the condition of our roads. Its good quality has earned much acceptance too.

98

(B) In Pie Chart showing factors which influence the buyer.

Observation: - For the above Pie Chart it is shown that 55% of the respondents prefer

the brand for brand Name because Word of mouth is any apparently informal communication about the product by ordinary individuals, satisfied customers or people specifically engaged to create word of mouth momentum.

19% of the respondents prefer provide best quality because after brad name generally new customer those are not aware. They are prefer quality. I quality is good than customer interest are generate to purchase prefer brand.

17, 55%

3, 10%

6, 19%

5, 16% 0, 0%

Reason behind selected brand as per respondents

Brand Name Price Provide Best Quality Durability Others

99

16% of respondent prefer durability because if tyre are durable then it is not effect on mileage of bike and better traction and good stability.

10% of the respondents prefer Price because if price are high then it provide better quality. Rest of the others respondent prefer other things.

100

(C) In Pie Chart showing Features of preferred brand as per respondents:-

Observation:- 59% of the respondent prefer the brand for Mileage. 16% of the respondent prefer brand for better Service. 12% of the respondents prefer brand for Less Erosion. 13% of the respondents prefer for claim policy.

5, 16%4, 12%

19, 59%

4, 13%

Features of selected brand as per respondents

ServiceLess ErosionMilageClaim

101

(D) In Pie chart showing features of preferred brand of tyre as per respondents:-

Observation: -

For the above Pie Chart it is shown that 50% of the respondent are prefer better grip.

35% of the respondents are prefer good quality. 6% of the respondents are prefer brand value 3% of the respondents are prefer affordable price.

16, 50%

2, 6%

11, 35%

2, 6%1, 3%

Use of Prefer Brand of Tyre

Better GripBrand valueGood qualityReliableAffordable Price

102

(E) Best claim policy as per respondent.

Observation: - For the above Pie Chart it is shown that 44% of the respondent are

prefer MRF.

38% of the respondents are prefer Ceat. 9% of the respondents are prefer Michelin. 6% of the respondents are prefer Apollo. 3% of the respondents are prefer others.

12, 38%

14, 44%

2, 6%3, 9%

1, 3%

Claim Policy

CeatMRFApollomechilinOthers

103

(F) Quality vs. pricing analogy as per respondent.

Observation: - For the above Pie Chart it is shown that 75% of the respondent are

prefer say YES.

25% of the respondents are prefer say NO.

Yes, 75%, 75%

No, 25%, 25%

Higher price indicates higher quality

Yes No

104

(G) Customers perception about after sales service for tyre

Observation: -

For the above Pie Chart it is shown that 69% of the respondent are prefer very important.

31% of the respondents are prefer important. The result of this question came out with a positive response from all of them. They all agreed that after sales service is very important in this industry. As the dealers, their answers were almost the same.

22, 69%10, 31% 0, 0%0, 0%

After sale service

Very Important Important Not Important No Idea

105

(H) Kind of service expected by customer.

Observation:-

For the above Pie Chart it is shown that 47% of the respondent are prefer change tyre within 24/48 hours.

31% of the respondents are prefer tyre claim (tyre return of tyre) (Replace) within the given warranty period.

22% of the respondent are prefer nearby service center so that if they face any problem they do not have to go far but can solve their problem in nearest service centers.

7, 22%

10, 31%

15, 47%

'After sales service' you are looking for

Nearby service center Tyre claim (tyre in return of tyre) Change tyre within 24/ 48 hours Other

106

(I) Brand pull as per customer survey.

Observation: -

MRF is ranked in the first position by most of the customers. CEAT tyre some of the customers have ranked it number 2. Apollo tyre some of the customer have ranked it number 3. Michelin tyre some of the customer have ranked it number 4. Bridgestone tyre some of the customer have ranked it number 5.

o But undoubtedly MRF has been ranked in number 1 by both the customers and dealers.

16, 38%

10, 24%5, 12%

7, 17%4, 9%

MRFCEATApolloMechilinBreidgestone

107

(J) Problems being faced while purchasing “Any Tyre”.

Observation: - For the above Pie Chart it is shown that:- 81% customer faced no problem. 10% customer faced the problem due to lack of information. 9% customer faced the problem due to delay. No customer faced the problem due to non-cooperation of show room

people.

3, 10%3, 9%

26, 81%

Problems faced while purchasing “Any Tyre”

Lack of information’sNon co-operations of show roompeoplesDelayNo Problem

108

(K) Preference of customers on (tubeless or tube).

Observation:-

For the above Pie Chart it is shown that 100% of the respondents are prefer tubeless tyre no one prefer tube tyre because In case of puncture in tubeless tyre, loses air slowly allowing to keep riding until one reaches a service area. It is good for safety and low maintenance. It is easy to repair. The life of tubeless tyre is longer in a comparison of tube tyre.

In a tubeless tyre and rim of the wheel form an airtight seal, with the

valve being directly mounted on the rim. If a tubeless tyre gets a small

32, 100%

Preference of customers on (tubeless or tube )

Tubeless Tyre Tube Tyre

109

puncture, air escapes only through the punctured hole, leading to a gentle deflation.

110

(L) Pull creation by JK Tyre.

Observation:-

For the above Pie Chart it is shown that 91% of the respondents are prefer better promotional activity.

3 %of the respondents are prefer Discounts. 6% of the respondents are prefer others things.

Better promotional activity91%

Discount3%Others6%

Better promotional activityDiscountOthers

111

Conclusion During this marketing research, I have learnt lot of thing. It was really a great experience, while doing project report on JK tyre, how to explain them to fill up questions and what kind of complains are raised by customers and Dealer during marketing research. This task is learning through only practical study. It was really a nice experience to do project on JK tyre entering in two wheeler segment and work with Parinay Gausain. That is really good. In my report I have research on an “Analysis of Dealer and Customer Satisfaction”. Customers’ demands are less of JK Tyre in a compared to other tyre

industries because due to less advertisement activities in compare of other tyre industries.

112

Most of the Dealer are not very happy with JK Tyre because they say improve a quality and increase branding activities.

Summer internship has helped me to gain the knowledge about the Tyre sector as well as channel sales methodology.

113

SUGGESTIONS (To the Board of Directors)

Advertisement:-JK Tyre should spend more on advertisement activities to attract those customers who does not know about JK Tyre. If you see MRF Company they can spend more and more money on Advertisement and promotion campaign and that’s why they can increase customer through advertisement activities and also his advertisement are more attractive in compare of other tyre brands.

Schemes: - The Company should come up with attractive schemes so that the existing Dealer and Sub Dealer can get benefit from the scheme and can order more tyre from JK Tyre. Separate schemes should be made for the Dealer and Sub Dealer who are a new in market. but they have to bring more schemes so that dealers get a good push to sell the products and customers feel motivated to buy the products for e.g. :- more cash discount , foreign trip , Gifts , etc.

114

Hoardings and posters: - Hoardings and posters can be put over to public transports like buses, metros and railway stations where maximum number of people visits daily it will create brand awareness.

Margin:-Dealer are getting very high margin from the other brands so

the company should also take care of it Dealer expectations so that it will fulfil their needs and keep them satisfied.

115

Finding & Observation During the course of my internship, I came across to certain things that gave me a idea about the organization and its work. There were some good sides of the working process but at the same time the organization is lacking at some of the areas that ultimately leading towards dealer’s dissatisfaction to some extent. The problems that I felt during my term after interviewing the dealers and customers was mostly related to the branding of the product, polices and promotion/awareness about the product. And according to my opinion these are effecting the sells and also impacting negatively on its customers. Here, I tried to point out some of those findings: - In terms of doing business or purchasing a particular brand, there are some

influential factors that affect both dealers and customers buying decisions. From dealers’ side, it is the demand of the market and from customers’ side price, quality and mileage. Along with these things there are some other factors too.

Again, one of the issues that JK is facing is the lack of knowledge of the dealers as well as the customers. Most of them are holding the idea that JK Tyre is an old company that has started its business long ago and does not coming up with new pattern and not upgrading them according to market requirement.

116

As said earlier, some of the Chinese Tyre brands have earned a lot of popularity because of its lower price. And people are influenced to buy that regardless of the quality.

The presence of JK Tyres in the market is from long term. But while meeting the people I get to know that many people do not prefer JK Tyre because of lack of awareness and advertising and promotion activities.

Chinese and other foreign companies’ tyres presence in the market. For example:- Michelin, MRF and CEAT etc. They have become popular because of their low price and brand image on international level somewhat good quality. Therefore, people are considering them over JK Tyres.

The claim process is considered to be very hectic and tiring. When most of the customers are on rush this slow process has given them more problems instead of relief. Then again, the vehicles that are on high way, it is not possible for them to execute this process.

Another issue that dealers pointed out is that though they are satisfied with the

quality of JK Tyre but there should be some activities that would increase the demand of the product. Additionally, they asked to make the policy a bit easier especially the business so that they can do the business more smoothly and make the policy transparent for all the dealers.

117

Learning and Experience

Learning forms an important part is a student’s life. Each and every opportunity provided should be utilized for betterment of one’s career. Throughout my summer internship of 6 weeks, I was able to get a valuable exposure of the corporate world. The major learning’s were: Professional attitude towards work

Sincerity of completion of work assigned

Punctuality of time

Know about tyre industry dealer and customer.

Know The Basic of tyre marketing.

Familiar with tyre Dealers are of Delhi.

Learn about basics of two wheeler tyre

Understand the Customer and Dealer Demand Pattern.

To communicate well with Dealers about the sale schemes, price of the products, commission etc.

118

Awards and Achievements

JK Tyre Awarded At Global Tyre Expo - Powered by TIA (Tyre Industry Association) at SEMA (Specialty Equipment Market Association Show) in Las Vegas. Dr. Raghupati Singhania inducted into “TIA Hall of Fame 2015” Honored for his distinguished & exemplary service towards growth & development of Tyre industry.

JK Tyre achieve a 3rd Asian to receive this coveted award in last 30 years.

JK Tyre achieve a Performance Excellence Award to Dr. R P Singhania for “Outstanding contribution to the growth of Industry and remarkable commitment to society” by India Institution of Industrial Engineering.

119

TPM Consistency Award 2015” by Japan Institute of Plant Management (JIPM) – JK Tyre & Industries Limited, Vikrant Tyre Plant, Mysore.

120

METHODOLOGY WEEKWISE DESCRIPTION OF ACTIVITIES

a. Weekly activities assigned Monday:-

- Training day - Identify size of tyre of different brand. - Put data on with Pie Chart in Excel - Learn about tyre.

Tuesday:-

- Market visit on Faridabad - Identifying the Dealer. - Asking about tyre margin, quality, better product, most popular brand, sell

most tyre (tubeless, tube), sell most size of tyre and Product also, etc.

Wednesday Market:- - Market visit on Kalka ji , New Delhi - Identifying the Dealer. - Asking about tyre margin, quality, better product, most popular brand, sell

most tyre (tubeless, tube), sell most size of tyre and Product also, etc.

Thursday Market:- - Market visit on Green Park Colony, South Delhi - Identifying the Dealer. - Asking about tyre margin, quality, better product, most popular brand, sell

most tyre (tubeless, tube), sell most size of tyre and Product also, etc.

Friday:-

- Market visit on Green Park Colony, South Delhi - Identifying the Dealer. - Asking about tyre margin, quality, better product, most popular brand, sell

most tyre (tubeless, tube), sell most size of tyre and Product also, etc.

121

Status of activities assigned DAY 1- Completed DAY 2- Completed DAY 3- Completed DAY 4- Complete DAY 5-Completed

Learning from the activities assigned/ Work accomplished Tools and techniques used and information about it-

- Microsoft excel. - Understanding of how to retain and identify your potential

customer.

- Learned about the margin, popular brand, sale scheme, sell most size and product and how in shop branding all are doing, etc.

- Understanding of Dealers and Customers Interest.

(This was the beat plan for 1 month)

122

Cards of Dealers

123

BIBLIOGRAPHY www.google.com www.wikipedia.com www.slideshare.com http://www.htmlpublish.com/newTestDocStorage/DocStorage/17e2e05c65e

c4a5d9ce8abbd87896b05/SH-2015-Q3-1-ICRA-Tyres.rtf http://www.atmaindia.org/production-export-trend.html http://www.mrftyres.com/services/tyretok https://www.google.co.in/forms/about/ http://www.jktyre.com/productselector.aspx

124

Annexures QUESTIONNAIRE DEALER’S SATISFACTION SURVEY 1.) Which company’s tyre are you dealing most in two wheeler tyre? a.)MRF B.)Ceat C.)Mechilin D.)Apollo 2.) Which factor influences you the most to deal with particular brand? a.)Profit b.) Quality c.) Customer Demand d.) company policy 3.) Which product (of your preferred brand) do you sell the most? a.)Jumbo b.)Miaze c.)Actizip d.)Nylogrip 4.) Which size of tyre do you sell most? a.)2.75 b.)3.50 c.)3.00 d.)100/90 5.) What kind of sale policy would you like most? a.)Gift b.)Foreign trip c.)Cash Discount 6.) How much sale commission do you expect from Tyre industries? 7.) How much credit days do you expect from Tyre industries? 8.) How much security deposit expect from Tyre industries

125

QUESTIONNAIRE CUSTOMER’S SATISFACTION SURVEY 1.) Which of the following tyre do you use? A.)MRF B.)Ceat C.)Apollo D.)Michelin E.)Others 2.) What are the factors influence your decision to purchase a particular brand of tyre? A.) Brand Name B.) Price C.) Provide Best Quality D.) Durability 3.) Which feature do you prefer in a particular brand? A.) Service B.) Mileage C.) Less Erosion D.)Other 4.) Which company provide best claim policy? A.)MRF B.)Ceat C.)Apollo D.)Michelin 5.) Do you believe that 'higher price indicates higher quality? A.)Yes B.)No 6.) What is your idea of 'after sales service' in tyre industry? A.) Very Important B.) Important C.) Not important D.) No idea

126

7.) What type of 'after sales service' you are looking for and also give reason? A.) Nearby service center B.) Tyre claim (tyre in return of tyre) C.) Change tyre within 24/ 48 hours D.)Other 8.) Are you satisfied with the current Tyre you are using? A.)Yes B.)No 9.) What problems faced while purchasing “Any Tyre”? A.) Lack of information’s B.) Non co-operations of show room peoples C.) Delay D.) No Problem 10.) Which tyre do you like most (tubeless and tube) and also give reason?

127