A PROJECT REPORT ON A STUDY ON PRODUCT MIX STRATEGIES OF JK TYRES

Under kind Supervision of Dr. Nandini Sharma By Alka Pareek _______________________________________ Biyani Group of Colleges R-4, Sector No 3, Vidyadhar Nagar, Jaipur -302023, Rajasthan, INDIA

A project report submitted in partial fulfillment of the requirements for Bachelors in Business Administration (BBS)

Student declaration

I hereby declare that the project report entitled A STUDY ON PRODUCT MIX STRATEGIES OF JK TYRES Submitted in partial fulfillment of the requirements for the degree of Business of Business Administration To Biyani Group of Colleges, India, is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes

Guidance By: Dr. Nandini Sharma

Submitted By: Alka Pareek

Place: Jaipur Date: May

ACKNOWLEDGEMENT
As a partial fulfillment for the award of the degree of BBA under Biyani Group of Colleges, a project was to be carried out by all the students during their 3 rd semester. On the course of report preparation, we had to select a particular business organization. This project, as a part of my training, was a good experience providing me great insight into the market dynamics of tyre industry, buyer behavior and the sales & marketing of JK Tyre. This work has helped me in understanding some of the intricacies and complexities involved in the tyre industry in particular.

I would like to express my gratitude to all those who gave me the possibility to complete this project report. I want to thank Biyani Group of Colleges for providing me the opportunity to conduct this small scale study as a partial fulfillment of the Bachelor degree in business administration. I have furthermore to thank Dr. Nandini Sharma for her guidance, valuable suggestion, encouragement, support, co-operation and supervision throughout my studies.

I am thankful as well for the continual support of my family and friends, who have provided me with important feedback on this thesis and with the encouragement that I have needed to complete my work. To my parents and brother thank you for your positivity and for helping me to bring stress back into perspective.

Regards, Alka Pareek

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PREFACE
It is a great opportunity for me to have the BACHELOR OF BUSINESS ADMINITRATION (BBA) in BIYANI GROUP OF COLLEGES, JAIPUR. In the accomplishment of this degree I am submitting a project report on A STUDY ON PRODUCT MIX STRATEGIES OF JK TYRES. Subject to the limitation of time efforts and resources every possible attempt has been made to study the problem deeply. The whole project is measured through the questionnaire, the data further analyzed and interpreted and the result was obtained.

The whole project has been divided into 7 chapters. Introduction Research Design Company profile Theoretical background of the study Analysis of JK Tyres Product Mix Analysis & Interpretation of Data Summary of Findings, Suggestion & Conclusion

EXECUTIVE SUMMARY
Introduction In todays 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 sellers 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 customers base. Their focus has shifted towards integrating the three elements people, service and marketing. The customers importance has assumed imponderable proportions in todays world, because of the inherent value that the customers command. A customers can make or break a company. It is the responsibility of every company to see that all its customers are equally satisfied with them, for one single dissatisfied customer will tell at least nine others about the dissatisfaction and will spark off a chain reaction and spell doom for that company. In such scenario, retention of the existing customers assumes diabolical proportion. Research has thrown light on some important aspects of customers retention it has been proved empirically that
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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.

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.

About Tyre industries in India Background 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.

The Indian tyre industry has been reporting good growth figures, over the past few years, spurred on by the rise in the automobile industry led by passenger vehicles and two-wheelers. The Indian tyre industry has emerged as one of the most competitive markets in the world and with the emergence of new technology, ultra modern production facilities and availability of raw materials, the sector is poised to grow further. A recent study states that the Indian tyre production is expected to reach almost 20 crores units by 2016-17. In the previous financial year, the Indian tyre industry witnessed a turnover of Rs. 30,000 crores, producing 11.92 crores tyres, a total tonnage of 14.88 lakh metric tons. Currently India has 40 listed tyre manufacturing companies, out of which the top 10 account for over 96 percent of the countrys total tyre production. The tyre export market in India is valued at Rs. 3600 crores. While the tyre industry is largely dominated by the organized sector, the unorganized sector is predominant with respect to bicycle tyres. Increase/Decrease in raw material costs Apart from being capital intensive, the tyre industry is highly raw material intensive. Any change in the prices of raw materials affects the profitability of tyre companies. The raw materials used in the manufacture of tyres are rubber and petroleum derivatives like nylon tyre cord, carbon black, styrene butadiene rubber and poly butadiene rubber. The most important raw material is rubber-natural and synthetic.
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Rubber prices have softened in the last four months but tyre makers are not considering a cut in tyre prices because they are yet to recover from a surge in prices of raw materials last year. Natural rubber prices have crashed by almost 20% from October last year.

Prices have fallen below Rs 160 this month and moving in the narrow range of Rs 156-157 per kg. This could perhaps be the worst crash in the recent times. The last time prices dropped below Rs 160 was in May 2010. The plunge in prices benefitted tyre manufacturers the most with major tyre companies reporting good results for the quarter ending December 2012. But they are not ready to pass it on to customers basically for two reasons. First, they are still to recover the rise in input costs early last year. Second, demand for tyres continues to be subdued forcing companies to cut production.

Import of tyres Daily rubber supplies to key spot markets are lower than normal as farmers are holding back produce."Farmers think speculators in futures market are depressing prices. They think in coming months prices will recover above 200 rupees (per kg)," Valy said. This year, despite importing 23.5 percent more rubber in the first half, tyre makers are signing new import deals as buying locally is still expensive after farmers held back supplies hoping prices would rise in the future, industry officials said. "Tyre makers were actively signing import deals in September. Then the difference between local and overseas prices widened to over 45 rupees per kg," said George Valy, president of the Indian Rubber Dealers' Federation.
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The country's total imports could rise to over 225,000 tonnes in 2012/13, up 5.2 percent on the year, Valy said. In June 2012, Sheela Thomas, chairman of the state-run Rubber Board, said India's imports were likely to drop by 27 percent to 150,000 tonnes in 2012/13 on the back of a rise in local output and lower incentives to import rubber. But since June the price difference between local and overseas prices has widened, peaking in September 2012. Export of Tyres Five percent of the nearly $100 billion global tyre industry is accounted for by India. The industry turnover is about Rs.13,500 per annum. The top four companies include MRF, Apollo, JK and Ceat. Despite the economic slow down and high input costs last year, the Indian tyre industry saw a growth of 5.3% (volumes) in 2011-2012. According to rating agency ICRA, industry growth was in terms of volumes. The revenue growth was definitely aided by the depreciating rupee and stable rubber prices by the end of the financial year. At the beginning of 2011, the rubber prices were about Rs.240/ kg which came to Rs.185-200/ kg by the year end. The trend has been upward with regard to the cost of crude derivatives. There was a 40% increase in the prices of synthetic rubber. The hike in tyre prices was not sufficient enough to neutralise the effects of the rising costs. As per reports, the compound annual growth (CAGR) of the tyre Industry has been about 8%, keeping pace with the economic growth India has seen in the last five years. Even with faltering growth, the tyre industry is expected to pick up momentum in the future. The Indian tyre industry exports to around 65 countries. In terms of value and tonnage, the truck and bus tyres account for more than 60% of the turnover. The
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tyres are predominantly cross ply and bias in India. Radialization has grown due to its distinct advantages, in the passenger car segment. Review of the Indian Tyre Industry

Source: http://stockshastra.moneyworks4me.com/indian-tyre-industry-analysisand-review/ The tyre industry segments are divided into personal and commercial usage based on vehicle category and into OEMs (original equipment manufacturers), replacement demand and exports based on industry. About 65% of the total Indian tyre industry is constituted by the replacement segment. As per reports, the domestic market is set to grow at a CAGR of 11-12%, and OEM demand to grow at a CAGR of 10-11%. Replacement demand is expected to grow at a CAGR of 12%. According to the ICRA, exports rose by 46% and the revenues saw a 28% growth because of the strong depreciation in the Indian rupee vs. US dollar, and hike of over 20% in realizations. ICRA said, "We expect the demand for tyres from the OEM segment to be relatively muted at 8-9% during 2012-13, despite anticipated revival in
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replacement volume, driven by vehicles, particularly truck and bus tyres, sold post the recessionary dip of 2009. Revenue growth for tyre companies is also expected to be supported by price revisions of around 5-8% and continued export thrust to SE Asian countries". Mr. Subrata Ray, Sr. Group Vice President & Head-Corporate Sector Ratings, ICRA, says, In line with the sombre outlook for the automotive industry, we expect OEM tyre demand to be muted, however we expect replacement demand and exports to support industry volumes. The softer input costs would however pay dividends during the current year, with operating margins set to expand during H1, 2012-13. Historical and Projected Growth Rate

Source:http://www.docstoc.com/docs/16139151/tyre-industry-in-India So far, going by the current trends, the Indian tyre industry is poised for good growth in the coming years.

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TABLE OF CONTENTS
ACKNOWLEDGEMENT EXECUTIVE SUMMARY CHAPTER I INTRODUCTION 1.INTRODUCTION 2.LIST OF BOARD OF DIRECTORS CHAPTER II RESEARCH DESIGN 2.1 TITLE OF THE PROJECT 2.2 OBJECTIVE OF THE STUDY 2.3 SCOPE OF THE STUDY 2.4 METHOD ADOPTED 2.5 LIMITATION OF THE STUDY 2.6 CHAPTER SCHEME CHAPTER III COMPANY PROFILE 3.1 VISION OF JK TYRES 3.2 MISSION OF JK TYRES 3.3 WHAT IS JK TYRES? 3.4 PRODUCT MIX OF JK TYRES 28-34 28 28 31 32 24-27 24 24 24 25 26 26 15 23 15-23

CHAPTER IV THEORITICAL BACKGROUND OF THE STUDY 4.1 MARKET 12 35-49 35

4.2 MARKETING 4.3 MARKETING MIX OR 4PS OF MARKETING 4.4 PRODUCT MIX 4.5 BRANDING 4.6 PACKAGING AND LABELLING 4.7 PRODUCT WARRANTY

36 36 39 40 44 47

CHAPTER V ANALYSIS OF JK TYRES PRODUCT MIX 5.1 MODELS OF TYRES 5.2 DIVERSIFICATION POLICY OF JK TYRES 5.3 FACTORS INFLUENCING PRODUCT MIX POLICY OF THE COMPANY 5.4 BRANDING IN JK TYRES 5.5 PRODUCT WARRANTY 50-59 50 52 53 54 56

CHAPTER VI ANALYSIS & INTERPRETATION OF DATA 6.1 SOURCES THROUGH WHICH RESPONDENTS BECOME AWARE 6.2 ANALYSIS OF FROM HOW MANY YEARS THEY KNOW ABOUT THIS BRAND 6.3 USAGE OF THIS BRAND IN YEARS 6.4 ANALYSIS OF PREFERENCE OF CUSTOMERS TOWARDS THIS PRODUCT 6.5 ANALYSIS OF BASIS ON WHICH THEY PURCHASE 6.6 ANALYSIS OF SATISFACTION OF THE RESPONDENTS 6.7 CHANCES OF SHIFTING IF THEY ARE 13 65 66 62 63 64 60-78 60

NOT SATISFIED WITH THIS BRAND 6.8 ANALYSIS OF SWITCHING TO THIS BRAND 6.9 ANALYSIS OF PRICE 6.10 ANALYSIS OF FACTORS THEY CONSIDER WHILE PURCHASING THE TYRES 6.11 ANALYSIS OF AVERAGE PERIOD OF PURCHASING THE TYRES 6.12 ANALYSIS OF MAJOR ADVANTAGES IN THIS PRODUCT 6.13 ANALYSIS OF SATISFACTION OF DESIGN OF THIS PRODUCT 6.14 ANALYSIS OF THE OUTLOOK AND STYLE OF THIS BRAND 6.15 OTHER SERVICES PREFERRED FROM THIS BRAND 6.16 ANALYSIS OF THE RELATIONSHIP THEY HAVE WITH THIS BRAND

67 68 70

71 72 73 74 75 76 77

CHAPTER VII SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION 7.1 FINDINGS 7.2 SUGGESTION 7.3 CONCLUSION 79-83 79 81 82

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CHAPTER 1 INTRODUCTION
1. Introduction:
J K Industries is a mega corporate entity that is emblematic of excellence, diversification and pioneering new technologies. A part of JK organization which ranks among the top private groups in India, JK industries is committed to self reliance and follows an ethic that views customer satisfaction as an index of achievement.

Over the years, the company has expanded and diversified its business portfolio. It has developed into a multi product, multi location corporate entity comprising of following business division.

Market is a group of buyers and sellers interested in negotiating the terms of purchase/ sale of goods or services. --Philip Kotler

Marketing is the set of human activities directed at facilitating and consummating exchange. The essence of marketing is exchange of products and the transactions is to satisfy human needs & wants. All business activities facilitating the exchange are included in marketing. --Philip Kotler

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The product is a bundle of all kinds of satisfaction of both a material and nonmaterial kinds, ranging from economic utilities to satisfaction of a social psychological nature.

Product mix is the entire range of products of a company for sale product mix need not consists of related products.

Product mix of a company has three main characteristics: -

1) Width

2) Depth

3) Consistency

Width: - Width of a product mix depends upon the number of product groups of product line found within the company.

Depth: - Depth depends upon the number of product items within each product line.

Consistency: - Consistency of the product mix refers to the question whether or not the products have production affinity, marketing affinity or research affinity.

Brand is a name, term, symbol, design or combination of them which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

Packing may be defined as the general group of activities in the planning of a product. These activities concentrate on formulating a design of a package and producing an appropriate and attractive container or wrapper for a product. The
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container itself act as a forceful though silent and colorful salesman at the point of purchase.

Warranty is an obligation of the producer and seller to stand behind the product and assure the buyer that he will derive certain services and satisfactions from the product.

All manufactures and dealers and appliances must offer a very efficient after sales services, i.e., free services during the guarantee period and thereafter at low charges. It covers repairs, spare parts and maintenance.

1933

First in India to manufacture Calico Prints- Juggilal Kamlapat Cotton Spinning and Weaving Mills Co. Ltd., Kanpur.

1940 First in India to manufacture steel Bailing Hoops for jute and cotton and to make the country self sufficient by meeting the entire demand-J.K. Iron & Steel Co. Ltd., Kanpur.

1944 First in India to produce Aluminium virgin Metal from Indian BauxiteAluminium Corporation of India Ltd., Jaykaynagar. 1949 First in India to manufacture Engineering files- J.K. Engineers Files, Bombay.

1959 First in India to set up a continuous process Rayon Plant.

1960 First to manufacture a Hydraulically Operated Cane Crushing Mill for Khandsari Sugar Plant and completed 100 ton plant-J.K. Iron & Steel
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Co. Ltd., Kanpur.

1961 First in world to set up a plant for production of Hydrosulphite of soda by Sodium Amalgam Process- J.K. Chemicals Ltd., Bombay.

1965 First to produce Sodium Sulphoxylate Formaldehyde (Rangolite C of Formosul) in India - J.K. Chemicals Ltd., Bombay

1968 First to manufacture TV Sets in India- J.K. Electronics, Kanpur. First to manufacture Metallic Cops for Synthetic Filament yarn industries in India- Syntex tube works, Kanpur.

1969 First to manufacture Acrylic Fibres- J.K. Synthetics Ltd. Kota First to develop differentially Dyeable Nylon- J.K. Synthetics Ltd., Kota

1973 First in India to license Synthetic Fibre Technology to third party as well as the first to manufacture Synthetic Fibre Machinery Fibretech Engineers & Manufacturers, Dadri.

1976 First in India to produce steel belted Radial Tyres for passenger cars, trucks and buses- J.K. Tyre Plant, Kankroli.

1980 First in world to make Steel Belted Radial Tyres for three wheelersJ.K. Tyre Plant, Kankroli.

1984 First in India to produce white cement through dry process- J.K. White cement. Gotan.

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1985 First in India to produce Cathonic Dyeable Polyester Fibre- J.K. Synthetics Ltd., Kota. First in India to produce Nylon Tyre Cord based on Spin Draw Technology- J.K. Synthetics Ltd., Kota.

1989 First in India to produce magnetic tapes with cobalt technology J.K. magnetics, Surajpur.

1991 Banmore Tyre Plant (BTP) set-up with a capacity of 5.7 lacs tyres p.a.

1992 R & D center set-up at HASTERI.

1994 India's first T-Rated tyre launched Banmore Tyre Plant (BTP) crossed 100 TPD.

1995 Mercedes Benz Launched on JK steel radials First tyre manufacturer in the world to get ISO 9001

1996 India's first dual contact high traction steel radial- aquasonic launched. Introduced steel wheels.

1997 Awarded the National Export Award for 96-97. Vikrant Tyres (VTL) acquired. India's first H rated tyre launched. Only Tyre manufacturer to get 'E' Mark certification. HASETRI became the first research institute in Asia to get ISO 9002.

1998 First tyre manufacturer in the world to get QS 9000. Awarded CAPEXIL's highest export award for 1997-98.

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1999 Synergy with VTL in procurement, marketing and production flexibility. Completion of state of the art modernisation of truck radials. JK Tyres ranked 16th largest Tyre Company in the world. ISA - 14000 accredition for environment & safety.

2000 JK introduced National Go-Karting Championships.

2001 Recieved CAPEXIL award. J.K. Industries recieved FOCUS LAC export award for the year 19992000. Commendation Certificate of CII Exim. IInd National Go-Karting Championships held.

2002

J.K.Industries Ltd has informed BSE that CRISIL has assigned a P1+ rating to the Commercial Paper programme of the company.

2003 - J.K. Industries Ltd (JKI) has a new Marketing Director in Mr Ajay Kapila. Before joining JKI, Mr Kapila was Senior Vice-President (Sales and Marketing) at Kinetic Engineering Ltd. He was also Director on board and operational head of Kinetic's direct selling arm - Kinetic Marketing Services Ltd. -Completes its comprehensive restructuring exercise of businesses that leads to its emergence as a pure automotive tyre company. Along with the de-merger of its non-tyre business, Sugar and Agri Seeds, into separate companies namely JK Sugar Ltd and JK Agri-Genetics Ltd, JKI also completes the merger of Vikrant Tyres Ltd with itself -J.K.Industries delists from Jaipur Stock Exchange -divested its wholly-owned subsidiay called J.K. Drugs and Pharmaceuticals Ltd to TEVA Pharmaceuticals of Israel.

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2004 -JK Industries Ltd has informed that its securities are delisted from Delhi Stock Exchange Association Ltd (DSE) w.e.f. January 29, 2004.

2007 - JK Industries Ltd has informed that the name of the Company has been changed from "J K Industries Ltd" to "JK Tyre & Industries Ltd" w.e.f. April 02, 2007. - Company name has been changed from JK Industries Ltd to JK Tyre & Industries Ltd.

2008 -The company has issued rights in the ratio of 1:3 at a premium of Rs.75 Per Share.

2009 - JSL Ltd announced huge expansion plans under which it would set up 1.6 MT greenfield plant in Orissa due to which its stainless steel manufacturing capacity will rise to about 2.5 MT by March 2014, thus making it the largest producer in India. - Jsl Limited has informed that consequent upon vacancy caused by the sad demise of Sh. A.K. Jain, Company Secretary of the company on January 1, 2009, Mr. Sunil Yadav has been appointed as Company Secretary of the company w.e.f. January 13, 2009. Mr. Sunil Yadav has also been designated as Compliance Officer of the company in pursuance of clause 47(a) of the listing agreement.

2010 - JSL Ltd has informed BSE that the name of the Company have been changed from "JSL Limited" to "JSL Stainless Limited". The Registrar
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of Companies, NCT of Delhi & Haryana has issued the fresh certificate of incorporation dated August 06, 2010 consequent upon change of name. - JSL Ltd has informed BSE that the Board of Directors of the Company has appointed Mr. Jurgen Hermann Fechter and Mr. James Alistair Kirkland Cochrane as Additional Directors w.e.f. March 09, 2010 by passing the resolution through circulation. - JSL Limited led by Ratan Jindal is going to setup a 1320 Mw power project in the state of Orissa. The company signed a MoU with the Orissa government for setting up a super critical thermal power plan in the state on Thursday. The plant will be setup with a total investment of Rs 7,375 crore.

2011 - JSL Stainless signs power purchase agreement with GRIDCO. - JSL Stainless Ltd has informed BSE that the name of the Company have been changed from "JSL Stainless Limited" to "Jindal Stainless Limited" with effect from December 07, 2011. The Registrar of Companies, NCT of Delhi & Haryana has granted its approval on December 07, 2011.

2012 - The Company has allotted 3,64,972 equity shares of Rs. 2/- each to "The Royal Bank of Scotland NV London Branch".

2. Board of Directors of JK Industries:

Name Raghupati Singhania Vikrampati Singhania Designation Vice Chairman & Mng.Director Deputy Managing Director
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Arun K Bajoria Kalpataru Tripathy Om Prakash Khaitan Wolfgang Holzbach

President & Director Director Director Additional Director

Name Bharat Hari Singhania Swaroop Chand Sethi Arvind Singh Mewar Bakul Jain Vimal Bhandari

Designation Managing Director Whole Time Director Director Director Director

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CHAPTER-II RESEARCH DESIGN

2. Introduction:
Research methods are all those methods/techniques that are used for conducting to the researchers use in performing research. Here more emphasis is made on collection of the data directly through the customers with directly interacting with them. 2.1 TITLE OF THE PROJECT STUDY Title of the Project Study is A STUDY ON PRODUCT MIX STRATEGIES OF J K TYRES.

2.2 OBJECTIVES OF THE STUDY: -

Considering the importance of the study, the following main objectives have been drawn out.

1. To study and understand the profile of JK TYRES and various activities in the company 2. The study made with special reference to PRODUCT MIX 3. To know the reaction of the consumers towards the Brand 4. To offer suggestions for major findings

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2.3 SCOPE OF THE STUDY: Scope of the study extends to discover dealers reaction to the products performance and physical characteristics, of J K TYRES.

Perform various marketing activities, how the product is perceived as compared to its competitors performance with respect to quality, advertising and company good will.

2.4 METHODOLOGY ADOPTED: -

The chief criteria for the validity of any research study lies in the methodology an esquire would prove a failure if it were not done along certain methodical lines.

PRIMARY DATA: Primary data was collected through structured questionnaires, which were given to variety of respondents and personal discussion.

SECONDARY DATA: Secondary data was collected through company manuals, study materials and survey reports.

SAMPLING: Random sampling: - It is based on theory of probability. It provides known zero change for selection of each population element. Under this sampling design every item of the universe has an equal chance of inclusion in the sample. It is so to say a

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lottery method in which individual units are picked up from the whole group, not deliberately but by some mechanical process. Sample Unit: In this study the respondents are from Jaipur City. Sample Size: Sample size has taken 50 respondents. 2.5 LIMITATIONS OF THE STUDY: -

Any study of this kind will have its own limitations 1. Due to the information and time constraint, it was not possible to go in detail to the study of PRODUCT MIX STRATAGIES OF J K TYRES. 2. The study is made in one place at one dealers show room 3. It is restricted to certain area and to limited time.

2.6 CHAPTER SCHEME: -

Chapter-I INTRODUCTION Chapter-II RESEARCH DESIGN Chapter-III COMPANY PROFILE

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Chapter-IV THEORITICAL BACKGROUND Chapter-V ANALYSIS OF JK TYRES PRODUCT MIX Chapter-VI ANALYSIS & INTERPRETATION OF DATA Chapter VII SUMMARY OF FINDINGS, SUGGESTIONS& CONCLUSION

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CHAPTER-III COMPANY PROFILE

3.1 VISION OF JK TYRES To be amongst the most admired companies in India committed to excellence.

3.2 MISSION OF JK TYRES To be the largest & most profitable tyre company in India. To retain No. 1 position in truck & bus segment & to be amongst top two in all other 4-wheller tyre To make truck/bus radial operations profitable & retain leadership in the passenger radial market. To be the largest indian tyre exporter. Continue to be a significant player in the world in truck & bias market. To be a customer obsessed company. To enhance value to shareholders & service to all stakeholder.

We the people of J K TYRES will have an organisation committed to quality in everything we do. We will continuously anticipate and understand our customers requirements, convert these into performance standards for our products and services and meet

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these standards every time. Full-customer satisfaction- both internal and externalis our motto.

J K industries set up its first tyre plant at Jajkajgram near Udaypur, Rajasthan in 1977. The plant with an installed capacity of 5 lakh tyres per annum was

established in technical collaboration with General Tire International co., U S A.

As J K Tyre grew from strength to strength, demand for tyres increased proportionally to meet this growing demand, the plant at Rajasthan was expanded and by 1990. The plant was producing nearly 14 lakhs tyres per annum.

J K Tyre then went on to establish what is rated as the most modern plant in India, a state of the art tyre plant in 1991, at Banmore near Gwalior, Madya pradesh.

The plant deploys the most sophisticated techniques such as a Betaray scanner, Xray, units, computer controlled processing and tyre testing machines to ensure a high quality of products. Both the plants have set standards of efficiency and productivity in the tyre industry and have consistency operated at high capacity utilisation with a total capacity of 28.13 lakhs tyres per annum.

J K Tyres focus on R & D the plants ensures not just the incorporation of the latest technology in products but also helps in the development of new types and sizes of tyres. With the strategic acquisitions of a controlling interest in Vikrant Tyre Limited. The V T L plant at Mysore to contributes to J K Tyres total production capacity at its plants, which amounts to 40 lakhs tyres per annum.

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We believe that people are the biggest asset that a firm can possess. J K Tyre offers unlimited opportunity for committed motivated individuals at all levels and across a wide range of areas.

To ensure the same, J K Tyre has developed for its employees an infrastructure consisting of: 1) Regular upgradation of skill and practices 2) Management development programs 3) National and international globally growing training if you dream of working for a

Corporation that encourages excellence rewards merit and initiative. Vast in its operations and massive in its seal of activities JK Industries is a mega corporate entity that is emblematic excellence diversification and pioneering new technologies.

A part of J K Organisation that ranks among the top private groups in India, J K Industries is committed to self-reliance and follows an ethic that views customer satisfaction as an index of achievement.

Aside from J K Tyre, the flagship brand of the corporation, J K Industries includes: JK Sugar The manufacturer of the best quality sugar in the country. JK Agrigenetics The Company that is revolutionizing Indian agriculture through its research and production of pest-resistant and high yield hybrid seeds and crops.

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J K International: - A diversified trading house that exports a range of products including textiles and leather goods, pharmaceuticals, tea, coffee, spices, processed food and de-oiled cakes, to developed countries like USA, UK, Canada, Germany, Netherlands and to countries in the middle east, west Asia.

3.3 WHAT IS J K TYRE: 1) It is the leading manufacturer of Radial tyres for both truck and car 2) It is the only supplier of the tyre for Mercedizs Benz 3) First to get the ISO 9001 certificate in the entire world for the entire operation 4) 2nd largest manufacturer for 4 wheelers in India 5) 16th largest tyre manufacturer in the world 6) First Indian company to export for radials to Europe 7) First Indian company to export over 45 countries across Six Continents 8) First and only Indian company to get the E mark Certificate 9) J K Tyre has 25-customer centers around the country. 10} J K Tyre the only Indian Company producing radials for the entire ranges i.e., Trucks, buses, LCVs and Cars.

J K Tyre supplies tyres to different cars they are as follows: -

Ambassador, Armada, Cielo GL, Cielo GLE, Contessa, Fiat UNO, Ford Escort, Mahindra commander, Mahindra classic, Maruthi Esteem, Maruthi Omni, Maruthi Gypsy, Maruthi Zen, Maruthi 800, Hyundai santro, Mercedise Benz, Opel astra,
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Peugot GI and GLD, Premier padmni, Premier 118NE, TATA Estate, TATA Mobile, TATA Sierra, TATA sumo, Honda City, Mitsubishi lancer.

3.4 PRODUCT MIX OF JK TYRES: BIASTRUCK: JET-TRAK JET-TRAK 39 HIGRIP SAND CUM HIGHWAY BIASTRUCK / BUS: JETKING JETRIB NULIFE HIGH WAY KING RADIAL TRUCK: JET STEELNS STELL KINGNS RADIAL- CAR: RALLY TORNADO AQUASONIC ULTIMA
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 ULTIMAXS BRUTE

JK TYRE launched the radial tyres because of the following advantages it gave to its customer some of the advantages are as follows: -

1) J K Steel belted radials help in fuel saving 2) Retreated radials give better mileage than retreated ordinary bias tyres. 3) Radials enhance the comfort level while driving 4) Tyre can wear and tear the effect even if there is under inflation pressure. ABOUT THE RALLY: J K Tyre has been largely responsible for promoting motor sports in India and bringing it to the forefront of national consciousness a role the company continues to play. Our involvement extends to all levels from the grass roots to the professional and encompasses rallying, racing, Go-karting. Family navigational rallies and vintage car rallies, pioneer in developing motor car rally talent in the nation, J K Tyre has the countrys most successful rally team.

THE DIFFERENT STANDARDS HELD BY THE J K TYRES: 1. I S O 9001 Standard 2. Q C 9000 Standard
33

J K Tyre is the Ist tyre manufacturer in the world to get the ISO 9001 certificate in 1994 itself, for its entire operations, including marketing, design, development, manufacturing, testing, stocking, distribution, sales and services of conventional (bias) and radial tyres, tubes and flaps. J K Tyre has become the only tyre manufacturer in India and the first tyre manufacturer in the world to achieve the Q C 9000 for multi location operations, in the year 1998. J K Tyre is attaining another milestone in its plan of achieving TQM, i.e., Total Quality Management, and CII-EXIM award by 2000

THE DIFFERENT AWARDS HELD BY THE J K TYRE AND J K INDUSTRIES ARE: National Export award Brand Equity award Capexil award (top export award)

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CHAPTER-IV THEORITICAL BACKGROUND OF THE STUDY

Before knowing in deep about product and product mix it is important to know the market and marketing.

4.1 MARKET The American Marketing Association defines a Market as the aggregate demand of the potential buyers for a product. An area for potential exchange thus a market is a group of buyers and sellers interested in negotiating the terms of purchase of goods or services. --Philip kotler TYPES OF MARKETING 1 ON THE BASIS OF SELLING AREA 2 ON THE BASIS OF ARTICLE OF TRADE 3 ON THE BASIS OF NATURE OF EXCHANGE DEALINGS 4 ON THE BASIS OF NATURE OF GOODS SOLD 5 ON THE BASIS OF PERIOD

KINDS OF GOODS: -

35

 CONVENIENCE GOODS SHOPPING GOODS SPECIALITY GOODS

4.2 MARKETING: The American Marketing Association defines Marketing as the performance of business activities that directs the flow of goods and services from producer to consumer or user. The set of human activities directed at facilitating and consummating exchange. The essence of Marketing is exchange of products and the transaction is to satisfy human needs and wants. All business activities facilitating the exchange are included in marketing. --Philip kotler

4.3 MARKETING MIX OR 4 Ps OF MARKETING: Marketing mix is the set of controllable variable that a firm can use to influence the buyers response within a given marketing environment. It has four elements of 4 Ps. 1 PRODUCT 2 PRICE 3 PROMOTION 4 PHYSICAL DISTRIBUTION

36

PRODUCT: A product is an idea, service or tangible good that a customer can acquire through a monetary transaction or an exchange. Not only tangible goods are considered as products; intangible like services and ideas are also included. A Product then is the potential satisfied of a consumers want or need. But a product is not just the essential item; it is made up of a number of components that contribute to its ability to satisfy needs and wants. Components that are included in a product are its package or the availability of maintenance service. The total product is the sum of all physical and psychological features that aid in satisfying a customers needs and wants. The success of a product is judged by how well it satisfies those needs and how well it sells.

PRICE: The price is the amount that is paid to purchase a product. It is also the means through which the company recovers its costs and makes a profit. Pricing is the marketing variable that offers the most flexibility. Price dictates what the company selling the product will receive in return for its efforts. Price defines the value of product or service to the customer. How much the customer is willing to give in order to have a particular product indicates how much the item is worth to the customer. The price is where the value of a product to the customer and the companys compensation for producing the product intersect. Marketers should establish prices that will expand the sales of highly profitable item and contract sales of relatively unprofitable products within the same time.

37

PROMOTION: Promotion is the sharing of information, concepts and meanings by the source and it receives about product and services and the organisation that sells them.

There are 4 basic forms of marketing communication: 1. ADVERTISING 2. SALES PROMOTION 3. PUBLICITY 4. PERSONAL SELLING PHYSICAL DISTRIBUTION: Place or physical distribution is another element in the marketing mix, which is considered with getting the product physically from the manufacturer to the place where consumer can buy it. The members of the distribution channel are the people and business involving the product from the point of production to the point of consumption. These members of the distribution channel are sometimes referred as Marketing Intermediaries. Physical distribution is concerned with the movement and storage activities required for making the firms product available to customer. The physical distribution managers goal is to provide at the lowest possible cost, the rights, the product to the right customer at the right time in the right quality at the right location in the right condition. Business logistics is the flow of materials from procurement of raw materials to manufacturing to the consumers.

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WHAT IS A PRODUCT? The product is a bundle of all kinds of satisfaction of both a material and nonmaterial kinds, ranging from economic utilities to satisfaction of a social psychological nature.

A product supplies two kinds of utility: 1. Economic utility 2. Supplementary utility The product may be a good, a service, a good plus service, or just an idea. A product is all things offered to a market. Those things include physical object, design, package, label, price, services, supportive literature, amenities and satisfaction not only from physical product and services offered but also from ideas, personalities and organizations. In short, a product is the sum of physical, economic, social and psychological benefits. Marketers must define their market in terms of product functions what the customer expects from the product.

4.4 PRODUCT MIX:

It is the entire range of products of a company for sale. Product mix need not consists of related products. For example the product mix of J K TYRE includes a diverse range of products such as TYRES, TUBES, FLAPS.

The product mix of a company has three main characteristics: 1. WIDTH 2. DEPTH
39

3. COSISTENCY WIDTH of a product mix depends upon the number of product groups of product lines found within the company.

DEPTH depends upon the number of product items within each product line.

CONSISTENCY of the product mix refers to the question whether or not the products have production affinity, marketing affinity or research affinity.

4.5 BRANDING: -

WHAT IS BRANDING? American Marketing Association defines as - The word BRAND is a comprehensive term. A brand is a name, term, symbol or design, or a combination of them, which is intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. A brand identifies the product for a buyer and gives seller a chance to earn goodwill and repeated patronage.

IMORTANCE OF BRANDING: 1. The marketer can build up a bridge of his organization around the brand. 2. Branding enables the firm assured control over the market. 3. Branding by differentiating a product from the rivals enables the brand owner to establish his own price which cannot be easily compared with the price for competing goods.

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RESONS FOR BRANDING: 1. Ever-increasing competition. 2. Importance of packaging as a distinct marketing function. 3. Need for Advertising and Publicity. 4. Development of consumer brand. ESSENTIALS OF GOOD BRAND: A Brand should suggest something about product benefits, its uses, quality, product nature, purpose, performance or action. The name should be short, simple, easy to pronounce to spell and remember, easy to identify and explain. It should be easy to advertise. It should be capable of being registered and protected legally under the legislation. It should have a stable life and be unaffected by time. It should not depend upon fashions and styles as they have a short life. It should create pleasant associations. It should not be used as a general or common name for all products It should be unique, attractive and distinctive.

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TYPES OF BRANDS:

1. INDIVIDUAL BRAND NAME 2. FAMILY BRAND NAME 3. UMBRELLA BRAND 4. COMBINATION DEVICE 5. PRIVATE OR MIDDLEMANS BRAND

Individual Brand Name: Each product has a special and unique brand name, such as J K Tyre, J K sugar, J K Internationals, Surf, etc., the manufacturer has to promote each individual brand in the market separately. This creates a practical difficulty in promotion. Otherwise it is the best marketing strategy.

Family Brand Name: Family name is limited to one line of a product, i.e., products that complete the sales cycles, e.g., J K TYRES for tyres, Amul for milk products, Ponds for cosmetics, etc., family. Brand name can help combined advertising and sales promotion.

Umbrella Brand Name: We may have for all products the name of the company or the manufacturer. All products such as soaps, chemicals, textiles, engineering goods etc., manufactured by the Tata concerns will have the TATAs as one umbrella brand, such a device will also obtain low promotion cost and minimize marketing efforts.

Combination Device:
42

TATA house is using a combination device, each product has an individual name but it also has the umbrella brand to indicate the business house producing the product, e.g., Tatas Taj. Under this method, side by side with the product image, we have the image of the organisation also. Many companies use this device profitably. Private Middlemans Brand: Manufacturers or distributors such as wholesalers, large retailers, can do branding. This practice is popular in the woolen, hosiery, ports goods, and such other industries. Big manufacturers also use it.

Benefits of Branding: As long as branding is considered desirable and as long as we do not have overflow of branded goods, consumers in India may have the following benefits of branding: -

1. Right kind of brand advertising and personal selling provide ample information to the consumer about the branded products. 2. Branded goods have uniform and standardized quality and holder of the registered brand is personally responsible to maintain the quality.

3. Rapid sales turnover assures fresher products due to frequent replacement of stock with the retailer.

4. There is considerable saving in time in the selection of goods and also in the making up of orders.

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4.6 PACKAGING AND LABELING: Packing may be defined as the general group of activity in the planning of a product. These activities concentrate on formulating a design of the package and producing an appropriate and attractive container or wrapper for a product. The container itself can act as a forceful though silent and colorful salesman at the point of purchase or an effective medium of advertisement encouraging impulse buying. Many a time, package design itself can act as a registered brand. Almost every article has to be packaged to make a trip to the ultimate consumer. But packing is merely a physical action and provides a handling convenience.

Packaging criteria: The entities that influence package development are broadly classified into the following criteria groups. 1. Appearance 2. Protection 3. Function 4. Cost 5. Disposability

Appearance: The appearance of a package is very important from many angles. With the growing super-bazaars and cash transactions in marketing activities, appearance is gaining momentum appearance helps to: 1. Identify the product throughout the distribution channel; 2. Carry instructions for use and disposal; 3. Carry information about the product and satisfy legal requirements;
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4. Exhibit brand name producers name; 5. Act as an important sales aid. Protection: Protection to the product is very important and the type of protection required depends upon the following factors: 1. Name of the product; 2. Distribution system adopted for the product; 3. The total time required to protect; 4. Package system.

Protection is normally required from environment and physical hazards. The unit package should provide protection from physio-chemical and biological hazards. The bulk package is expected to protect the contents against rough handling, storage and transportation.

Functions of Packaging: Protection Dependability Storage cost of filled packages Distribution and insurance cost Cost due to package/ spoilage/product lose Effect of the package on sales.

Disposability: In developing countries the packaging industry has been fully criticized on the grounds of environmental pollution. The disposal of packaging materials after use
45

assumes a greater importance. This was considered to be a very minor problem. The disposability of the package material after use had different forms, totally eliminating the material or converting at the end of its useful life as a package. However three methods are followed to dispose the package material after use. Recycling, Using it as non-package appliance, Total elimination.

Package design: A well-designed and attractive package is an ever-present shelf sales man for the retailer. The package design itself can act as a brand. A good package is: 1. Economical (to manufacturer, to store) 2. Functional (in transit, in store, at home) 3. Communicative (of brand, of products, of performance, of usage) 4. Attractive (in color, in design, in graphic impact)

At present packaging must also solve the problem of pollution by reducing waste and by conserving scare resources.

LABELLING: Label is a part of a product. It gives verbal information about the product and the seller. The purpose of labeling, like the purpose of branding is to give the customer information about the product he is buying and what it will and will not do from him. A label is also a part of a package or it may be attached directly to the product. There is a very close relationship between labeling and packaging as well as labeling and branding or grading.

46

Brand label mentions the brand name of mark. Grade label identifies the quality by a letter, number or word. Descriptive and informative labels are similar; they give helpful information on the following:

Brand name, name and address of producer, weight measure count. Ingredients by percentages, where possible, directions for the proper use of the product, cautionary measures concerning the product and its use, special care of the product, if necessary recipes of food products, nutritional guidelines, Date of packing and date of Expiry, Retail price, and unit price for comparison.

4.7 PRODUCT WARRANTY: In modern life we have numerous products with complicated, intricate and elaborate mechanism, such as radio, Television, motor car, electrical appliances, etc., an average consumer is incompetent to known the INs and outs of such sophisticated products. He will be at a loss if he is compelled to take his own care while buying such products. Warranty is a stipulation collateral to the main purpose of the contract. If it is broken, the victimized party, i.e., the buyer can claim for damages but has no right to reject the contract.

A warranty is an obligation of the producer and seller to stand behind the product and assure the buyer that he will derive certain services and satisfaction from the product. The product warranty must be clear unambiguous and meaningful. It has become an important selling point and a mean of product differentiation in a competitive market. Warranties are also considered as promotional devices. Full disclosure of warranty information will ensure the consumers right to know.

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Warranty as seller aid: A warranty is an assurance of the quality, service and performance. It is a written guarantee of the intrinsic value of a product. It points out the responsibility of the maker for repair, service and maintenance in the case of consumer durable. The producer should use the word warranty instead of the word guarantee.

After sales services: After sales service is an important aspect of a marketing transaction. Every increase in the use of machinery, appliances and equipment in all branches of out economy has created a continuous demand for after sales service, i.e., for the smooth maintenance and rapiers and low charges as well as quick access to spare parts and accessories at responsible prices.

All manufacturers and dealers costly mechanical and electrical machines and appliances must offer a very efficient after sales services, i.e., and free services during the guarantee period and thereafter at low charges.

After sales service covers repairs, spare parts and maintenance. After sales service is an important selling point helping the customer to take a quick decision to purchase durable and costly goods. Such facilities prevent dissatisfaction, frustration, and ill will among customers. Benefits of after sales service 1. It can build up and maintain sellers goodwill 2. Mass distribution of costly consumers durable is possible only through after sales service and consumer credit 3. Complaints and grievances regarding servicing and maintenance will be promptly and efficiently dealt with by the seller
48

4. Sales campaign will achieve remarkable success if after sales service is included in sales promotion 5. Free service during the guarantee period is the best selling point in the sales of machinery and appliances.

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50

CHAPTER-V ANALYSIS OF JK TYRES PRODUCTS MIX

The product is the most tangible and important single component of the marketing program. The product policy and strategy is the cornerstone of a marketing mix. Without a product there is nothing to distribute, nothing to promote, nothing to price. If the product fails to satisfy consumer demand, no additional cost on any of the other ingredients of the marketing mix will improve the product performance in the market place.

J K Tyres offers following types of product for sale: a) Tyres b) Tubes c) Flaps It is manufacturing different lines of products like Truck tyres, Light Commercial Vehicle tyres (LCV), for jeep, passenger car, tractors etc., 5.1 Models of tyres According to the needs and requirements of the consumers company is releasing to the market: Black color tyres and the following models of tyres. BIAS-TRUCK: JET-TRAK JET-TRAK 39 HIGHRIP SAND CUM HIGHWAY
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BIAS-TRUCK/BUS: JETKING JET RIB NULLIFY HI-WAY KIND

RADIAL-TRUCK: JET STEEL-NS STEELKING-NS

RADIAL-CAR: RALLY TORNADO AQUASONIC ULTIMA ULTIMA XS

Because of some marketing problems and competition in the market the company follows the policy of product consistency. So all the products or all the products offered by the company is related to each other but not unrelated.

While introducing the new product to the market the company will take into consideration the following factors:

a) Cost involved in the introduction of a new product to the market. b) Demand for the product in the market
52

c) Competitive situation in the market for the product.

However, it is difficult for the company to explain the customers about the suitability of its application. 5.2 DIVERSIFICATION POLICY OF J K TYRES Company is concentrating its attention on product diversification rather than simplification. The main reasons for diversification of product lines are as follows: a) Technology developments have contributed to the diversification of product lines b) Company is interested in widening its product line because it feels that it could avoid the risks involved in a narrow product line c) Company also prefers diversification of products to minimize the risks arising out of changes in consumers tastes d) It is also concentrating on diversification of products with the intention of utilizing ideal plant capacity fully, man power and financial resources. e) Further company also feels that through diversification it can go for better market reach, and can get huge popularity and customer belief for the products. f) It feels that it can acquire more market share through diversification g) Company also feels that if it goes for product diversification, it can create demand for new product on the reputation of existing products. Companys product is meant for following types of customers: Heavy Truck: - Commercial goods operators Light Truck: - Light goods operators, passenger bus operators Light Commercial Vehicles: - Passenger operators, passenger car owners, Farmers (tractor owners)
53

5.3 FACTORS INFLUENCING PRODUCT MIX POLICY OF THE COMPANY a) Application of its product for its suitability b) Economy in introducing various types of products c) Cost factor involved By product mix company is able to utilize the available marketing capacity fully. However, company is not able to reduce the advertising and distribution cost by adopting product mix. But it is possible for the company to add new product to its existing line of product. Even the government policies do not affect the product mix policy mix policy of the organization.

PRODUCT MODIFICATION IN J K TYRES

Company believes that if it is offering same type of product to the market continuously without any modification, it is difficult to attract the existing and prospective customers. Therefore, it modifies the model of tyres and other related products as and when it is required and felt by the customers while conducting consumer survey and by observing the behavior of the customers towards the product.

PROFITABILITY OF THE ORGANIZATION BY PRODUCT MIX: No doubt, companys profitability has increased because of product and product line expansion. However, how much profit has increased depends upon the capacity of the product. Company is getting major share of its profit by offering for sale Jet Rib and Jet Track.
54

It should be noted that company is not incurring loss from any of its product or product line. It is because company is having its own QS standards. It will not allow the continuation of production of the product until it reaches elimination or deletion stage. 5.4 BRANDING IN J K TYRES

Company is having its own Brand name J K INDUSTRIES, which is registered under the Trade Name and Trade Marks Act. Branding strategy of the company indicates how the firm chooses to use branding as an integral part of its overall marketing strategy. So branding is simple another dimension of marketing strategy.

Because of Branding, company is able to build up a bright image of the organization, has control over the market. Further, it is quite possible for the company to avoid product substitution. The companys Brand is helpful not only for creating demand for existing product but also for new products for getting good reputation in the market.

Companys brand has the following characteristics: a) It is familiar to the customers b) It is suggesting about the product c) Its name is short, simple and easy to pronounce d) It is capable of being registered and protect legally under the legislation e) It is having stability and unaffected by time f) It is not depending upon fashions and styles as they have short life

55

Company is adopting Family Brand names. It helps the company to have combined advertising and sales promotion. Company is able to expand the product mix with less risk by branding.

Advantages of branding to the customers of j k tyres: a) Branded products of the company have uniform and standardized quality. b) Rapid sales turnover assures fresher product c) There is considerable saving in time in the selection of the product.

PACKAGING OF THE COMPANY PRODUCTS Company is packing its products while distributing it to the market. The more effectively a product is packaged the more effective is its identity individuality. Packaging alone makes possible branding and advertising of products. Company will pack its products for the purpose of protections from various types of damages but not for the purpose of promotion. As companys intention in its packaging is for the purpose of giving protection to its products, it need not be that much attractive. So it need not spend huge amount of money on packaging, so that the price of the final product will not get increased to an enormous extent. Packaging system is able to protect the contents from all types of breakage, spoilage and pilferage. Consumer, therefore are not facing any major problems with regard to packaging system of the organization. So companys package acts as a multi -purpose arrangement. It is fulfilling utility function of protection, identification and convenience.
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LABELING Companys Labeling provides verbal information about the product. The intention of labeling is to give information to the consumers about the product he is buying and what it will and will not do for him. It contains name, size of application, inflation pressure, load carriable etc. 5.5 PRODUCT WARRANTY Company is giving warranty for its products. The warranty provided by the company meets the obligation of manufacturing defects. If there is any damage in the tyres distributed by the manufacturer, it can be replaced by the distributor within the warranted period. Because of warranty given by the manufacturers both the distributors and the consumers have been satisfied. In addition to providing qualitative products, warranty etc., company is also providing After-Sale-Service to the distributors and in turn to the ultimate consumers like customers education for application, repair facilities and over all maintenance.

Company will provide After-Sale-Service for the following terms: a) Trucks:- 18 Months b) Light Commercial Vehicle:- 3 Years

Though it is providing After-Sales-Service, price of the product wills not increase, as sales turn over will increase in the same proportion. By providing after sales service, to the customers can get better knowledge of the product and thereby can avoid losses.

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Competitors of J K TYRES like MRF, Apollo, Ceat, Dunloop, Modi continental, Bridgestone, Good Year are also providing same type of after sales service as providing by this company. CHANNELS OF DISTRIBUTION IN J K TYRES In the field of marketing, channel of distribution indicates route or pathways through which goods and services flow or move from producers to consumers. J K TYRES follows the following distribution channel while distributing its products to the market. FACTORY AREA OFFICE-DEALER-CUSTOMER CLEARING & FORWARDING DEALERS CUSTOMERS The product manufactured by the J K TYRES follow the channels of distribution in a very simple way. The goods manufactured in the factory the ultimate customer from there in. The other channels of distribution adopted by the J K TYRES are the movement of goods from the factory point to the area office, and from there the goods are moved towards the clearing and forwarding department, and from there towards the dealers. And the goods move from the dealers towards the hands of the ultimate customers. The company will take into consideration the following factors while selecting a particular channel for the distribution of tyres: ---

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a) The situation in the factory b) The operational cost involved c) Product availability to the customers d) Financial position of the dealers e) Financial position of the company It covers the geographical area like: a) Well maintained high ways b) Crucial road in rural and sub-urban places c) Farms d) Mines The company is providing 2% to 4% commission to its agents depending on the volume of sales affected and as per the rules and regulation of the company. The company has to go through certain formalities while distributing its products to the maker. a) The products have to pass through commercial tax check post b) All the invoices and documents for the sale should satisfy the conditions of sale of goods act. The company provides 15 days of credit facility to its agents. In addition to this facility company gives cash discount if immediate cash is paid. And turnover discount is provided on the basis of sales affected. If the agent/distributors failed to make payment within 15 days, they are liable to pay penalty as imposed by the company. Company is able to supply the goods in time.

COMPANY EXPECTS THE FOLLOWING FROM THE DISTRIBUTORS:

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1) Quick payment 2) Better understanding 3) Having good knowledge about the product

In addition to selling tyres through distributors to the market company is also selling products to the consumers if they buy in huge quantities provided if they are a bus or truck operators. Through a particular channel is followed by the company. It is not fixed; according to the change in circumstances it can also change the channel. Company has undertaken so many promotional activities like giving advertisements in T.Vs and magazines. It provides Credit facilities, price concessions, guarantee, warrantee, after sales services, gifts etc.,

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CHAPTER-VI ANALYSIS AND INTERPRETATION OF DATA

The data collected through the questionnaires is called as the primary data. The primary data collected from 50 respondents through random sampling. Percentages, bar diagrams, histogram, pie charts etc., are used for analysis of data. The analysis is explained as follows: -

6.1 Sources through which respondents became aware

Table No.6.1

SI. NO: 1 2

Options TV News paper/magazines

No. of Respondents 17 18

% 34 36

3 4 Total

Friends Others

8 7 50 Source: primary data

16 14 100

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Interpretation: It can be observed from the above table that 34% of the respondents are become aware of the J K TYRE product through T V, 18 % from News paper and magazines, and 8% and 7 % have aware through Friends and others.

Sources through which they became aware

20 18 16 14 12 10 8 6 4 2 0

17

18

No. of respondents
TV News papers.Magazines Friends Others

Fig. 6.1 showing sources through which they became aware.

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6.2 Analysis of from how many years they know about this brand. Table No.-6.2 SI. NO: OPTIONS No of respondents 1 Less than 2 years 2 3 2 to 5 years More than 5 years Total Source: primary data 50 100 14 27 28 54 9 18 %

From how many years using this product

30 25 20 15 10 5 0 Lessthan 2 Years 2 to 5 Years Morethan 5 Years 14 9 27

Series1

Fig. 6.2 showing in years known about this product.

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Interpretation: From the above table it is clear that 54% of the customers have known about the J K Tyres Brand from more than 5 years, 25% of the customers have known from 2 to 5 years and remaining are known from less than 2 years.

6.3 Usage of this brand in years. Table No.6.3 SI. NO OPTIONS No. of respondents 1 Less than 3 years 2 3 3 to 5 years More than 5 years TOTAL 50 Source: primary data 100 18 21 36 44 11 22 %

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USAGE IN YEARS

21

11 18

Lessthan 3 Years 3 to 5 years 5 & above

Fig.6.3 showing usage of this brand in years.

Interpretation:

From the above table it is known that more than 44% of the customers have been using this brand from more than 5 years and 36 %, 22% of the customers are using from less than 3 years. 6.4 Analysis of preference of customers towards this product. Table No.6.4 SI. NO: No of respondents 1 2 3 TOTAL Quality Price Durability 32 8 10 50 64 16 20 100 %

Source: primary data

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Interpretation:

From the above diagram it is clear that more than (64%) the respondents prefer this brand because of quality, 16 % only because of price and remaining 20% of the respondents prefer because of durability.

20% 16%

Preference of the customer

Quality

64%

Fig. 6.4. Showing the preference of customer towards JK tyres

6.5. Aalysis of basis on which they purchase. Table-6.5 SI NO: 1 2 3 TOTAL Cash Credit Half cash & Credit No. of respondents 34 5 11 50 % 68 10 22 100

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Source: primary data

Basis of Purchase

35 30 25 20 15 10 5 0 Cash Credit Half Cash & Credit 11 5 34

Fig. 6.5 showing basis on which they purchase.

Interpretation:

From the above table it is clear that more than 68% of the customers purchase on cash basis, 10% on credit basis and 22% half cash and credit basis.

6.6 Analysis of satisfaction of the respondents. Table No.6.6 SI NO: No. Respondents 1 2 Yes No 38 12 76 24 %

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TOTAL

50 Source: primary data

Satisfaction

100

No Yes
Yes No

Fig. 6.6 showing % of respondents satisfied

Interpretation:

From the above table it is observed that 76% of the respondents satisfied with this brand the 24 % of the respondents are not completely satisfied with this brand. 6.7 Chances of shifting if they are not satisfied with this brand. Table No.6.7 SI NO: No of respondents 1 2 3 MRF Ceat Good year 26 5 2 52 10 4 %

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4 5 6 TOTAL

Modi TVS Apollo

4 5 8 50

8 10 16 100

Source: primary data

Brand they Prefer

30 25 20 15 26 10 5 5 0 MRF Ceat 2 Good Year 4 Modi 5 TVS Apollo

Fig.6.7 showing the chances of shifting to other brand.

Interpretation:

From the above table 52 % of the respondents will shift to the MRF tyres, 16% shift to the Apollo, 20% of the respondents shift to the TVS and Ceat products and remaining 12 % (8+4) will shift to Good year and Modi products. 6.8. Analysis of switching to this brand. Table No.6.8 SI NO: No of %

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respondents 1 2 3 Initial mileage Re- treading After sales service 4 TOTAL Performance 12 50 Source: primary data 24 100 8 20 10 16 40 20

switch to this brand

24%

16%

Initial Milage Re- treading

After sales service

20%

40%

Performance

Fig.6.8 showing the why they prefer this brand.

Interpretation:

From the above table 40 % of the respondents like the brand for re-trading and 24 % of the respondents for performance and 20 % for after sales services and 16% for the initial mileage.

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6.9 Analysis of price. Table No .6.9 SI NO: 1 2 TOTAL Yes No No of respondents 42 8 50 Source: primary data % 84 16 100

Price Satisfaction
0 8

42

Fig.6.9 showing the price satisfaction.

Interpretation:

From the above table it is known that 84 % of the respondents are happy with the price of this brand and remaining 16 % of the responders are unhappy with this brand.

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6.10 Analysis of factors they consider while purchasing the tyres. Table No.6.10 SI NO: No of respondents 1 2 3 TOTAL Quality Durability Price 21 18 11 50 42 36 22 100 %

Source: primary data

Factors they Consider

Price Durability Quality 0

11 18 21 5 10 15 20 25

Fig.6.10 showing the factor considered while purchasing the tyres.

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Interpretation:

From the above table it is clear that while purchasing the tyres most of the (42%) respondents consider the quality, 36% of the respondents consider the durability and 22 % of them consider the price of the product.

6.11 Analysis of average period of purchasing the tyres. Table No-6.11 SI NO: No of respondents 1 2 3 4 3 Months 6 Months 9 Months 1 year & above TOTAL 50 Source: primary data 100 3 6 16 25 6 12 32 50 %

Average period of Purchase

30 25 20 15 10 5 0 25 16 3 3 Months 6 6 Months 9 Months 1 Year & more

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Fig. 6.11. Showing the average period of purchase.

Interpretation:

It is difficult to tell that average period of purchasing it depends on how use their vehicle and the weight they carry. From the above table we came to know that 50 % of the respondents purchase tyres once in a year. And less than 32 % purchase within 9 months.

6.12 Analysis of major advantages in this product. Table No-6.12 SI NO: No of respondents 1 2 3 4 TOTAL Everything Nothing Initial mileage Smoothness 29 -17 4 50 Source: primary data 34 8 100 58 %

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Major advantages
35 30 25 20 15 10 5 0 0 4 17

29

Fig. 6.12 showing the major advantages they find in this product.

Interpretation:

From the above table58% of the respondents accepted that the product of the JK Tyres for everything and 34% find major advantage of initial mileage and 8% for smoothness of the product.

6.13 Analysis of satisfaction of design of this product. Table No-6.13 SI NO: No of respondents 1 2 TOTAL Yes No 32 18 50 Source: primary data
75

64 36 100

Satisfaction of Design

36%

Yes No

64%

Fig. 6.13 showing the satisfaction of design of the product.

Interpretation:

From the above table and graph it is observed that more than 64% of the respondents are satisfied with the design of the JK Tyres, and remaining are not satisfied. 6.14. Analysis of the outlook and style of this brand. Table No-6.14 SI NO: No of respondents 1 2 TOTAL Yes No 38 12 50 Sources primary data 76 24 100 %

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Out look & Style

24% 76%

Yes No

Fig. 6.14 showing the outlook and style of the product respondents

Interpretation:

From the above table and diagram it is observed that more than 76 % of the respondents are satisfied with the style and design of this brand and remaining are not satisfied. 6.15. Other services preferred from this brand. Table No.6.15 SI NO: No of respondents 1 2 3 TOTAL Source: primary data
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Product knowledge Door delivery Monthly camp

13 15 22 50

26 30 44 100

Fig. 6.15 showing the services they prefer.

Services Prefered

25
20 15 10 5 0 Product Knowledge Mnthly Camp 22

13 Door

15

delivery

Interpretation:

From the above table it is clear that (44%) most of the respondents are prefer monthly camp, 30% prefer door delivery of the product and 26% prefer like product knowledge. 6.16 Analysis of the relationship they have with this brand. Table No-.6.16 SI NO: No of respondents 1 2 3 Regular Occasional Special 35 7 5 70 14 10 %

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4 TOTAL

Rare

3 50

6 100

Sources primary data

Relationship

35 30

25
20 15 10 5 0 Regular Special 7 5 3 35

Fig.6.16 showing the relationship they have with this brand.

Interpretation:

From the above table it can be observed that 70% have the regular relationship, and 14% of the respondents are occasional relation and 10 % have Special relationship.

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CHAPTER-VII SUMMARY OF FINDINGS, SUGGESTIONS& CONCLUSION

In this chapter, I would like to bring out my survey findings & suggestions are explained with reference to survey data. The findings are recorded in tables and graphs; from the study the following findings were made. 7.1 FINDINGS: It is found in survey that 24 % of the respondents are not satisfied with the product quality.

It is observed that only 18 % of the respondents are dissatisfied for the after sales service.

It is observed from the survey that many of your consumers want to shift over to MRF (52%), Ceat (10%), TVS (10%), Modi (8%), and 4% to Good year.

24% and 76% of the respondents are dissatisfied with the re-treading and mileage performance of J K TYRES.

It is found in the survey that most of the respondents are getting information about the JK Tyres products through the Television (34 %) and Newspaper (36%).

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 In the survey it came to know that most of the respondents have come to know about the JK Tyres from more than 5 years, it is clear that the JK tyres company has been taking steps to give information about its products.

It is observed through the survey that only 16 % of the respondents are cost conscious, and 64 % of the respondents are quality conscious they prefer only because of quality and durability.

It is found in the survey that 40 % of the respondents switching to this brand because of re-treading and 24% are because of performance.

While purchasing tyres 42% of the respondents consider quality. 36% of the respondents consider durability of course price is also major important they dont worry about this much more.

Purchasing of tyres frequently is depends upon the how they use vehicles and the weight they carry, more than 50% of the respondents purchase once in a year.

More than 44 % of the respondents preferred service of the monthly camp for quick knowledge.

It is observed in the survey that more than 64% of the respondents satisfied with the design, and 76% of the respondents satisfied with the outlook and style of the tyres. Company is not encouraging credit basis of selling the products.
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 Regarding pricing when compared with the other competitors pride of this product, respondents are happy with the price of the JK tyres because quality and price are equal.

More than 58 % of the respondents have accepted this brand only because they are getting major advantages form this brand.

7.2 SUGGESTIONS: From the above findings the following suggestions were made. 1. Quality is a main tool to get a good market of the product. The quality should be accepted by all respondents. Even if a small percentage is dissatisfied, they always reject and opinion always will negative. In this context it is suggested that the company should improve the quality of tyres, tubes and other items to win the consumers hearts to obtain the market share.

2. In every business customer care is very important in post and pre sale, many precautionary steps should be taken in all the levels of the activities. It is suggested that company should introduce programs like consumer council, sale after service etc. these steps will encourage the consumers to explain their own feelings and opinion.

3. Satisfaction of old customer and searching for new customer is the main policy of all the business. In this respect it is suggested that maintaining

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good quality, economy in price, promotional policy and appointing effective dealers will help to attract the new customers.

4. Credit system introduction is necessary in mobilizing of sale. This system will help to keep many more customers as well as getting new customer.

5. It is suggested that the dissatisfaction of the customer will loose the reputation and switching over to competitors product. In this aspect it is suggested that improvement and standardization of the product quality will bring down the problems while marketing the product.

7.3 CONCLUSIONS: Success and failure of any business enterprise depend upon the quality products and services that company provides. In the present scenario customers are more attracted towards the quality.

In olden days customers preferred the products that were suggested by the friends and neighbors. But now it is not like that they purchase which ever they, like because they are getting information about the product quality and about the companys marketing strength.

In order to demonstrate its commitments towards quality, JK Tyre has made never-ending efforts to make all its products of world-class quality.

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Even though competitions at international market, JK Tyre keep its name and fame in the international market by consciously following a policy of continuously modernizing and expanding its tyre manufacturing facilities to retain its edge in the market.

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BIBLIOGRAPHY
MARKETING MANAGEMENT-SHERLEKAR

MARKETING MANAGEMENT--

PHILIP KOTLER

PRODUCT MANAGEMENT--

GANDHI

MARKETING MANAGEMENT--

W.J. STANTON

RESEARCH METHODOLOGY --

O.R. KRISHNA SWAMI

RESEARCH METHODOLOGY -WEB SITE--

C.R. KOTHARI www.jktyre.com www.google.com www.askgeeves.com

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