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Summer Training Project Report


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Titled
BRAND AND IMAGE
Sumitted in partial !ul!illment !or t"e
A#ard o! degree o!
Ma$ter o! Bu$ine$$ Admini$tration
Sumitted B%& Sumitted To&
Ra'"i M$(Sil'% Tuteja
MBA III Sem
)**+,)*--
PRE.A/E
As it is said ............"The theory without practice is lame and practice without
theory is blind." obviously the theory and practice are two facts of same coin,
or in other way theory and practices complementary and supplementary to
each other. And of course these two embody the real knowledge based on the
principle of coming by doing or in pursuit of knowledge these two have
become part and parcel. Here, the practical during summer vacation is of
prime to the Faculty of Management for the purpose of evolution of final !rth
"emester# e$amination assist the paper in order to complete in M.%.A. course
of the academic curriculum.
This dissertation imparts a deductive and prescriptive discussion on the duly
on "ales &romotion with reference to %'()A Tyres )td. Marketing division,
Mu*affarpur# in comprehensible and concise way............ on the basis of the
training, which was done by me in marketing division of %'()A Tyres )td.,
Mu*affarpur. The report has been written for main of marketing as well as the
consumer, Marketing is the lifeblood of any organi*ation to run fast. "o
marketing starts right from the time of production. Marketing is nothing but first
to assess the market and then to access the market. The present study is
entitled to the study on "ales &romotion of %'()A Tyres have been
determined.
The whole study has been done to a particular area i.e. Mu*affarpur.
"implicity is the main feature of this report from beginning to end so that even
a non+marketing man can take advantage of it.
My observation in %'()A Tyres )td. was to treat main, who are the main
Factor of &roduction among man, machine, materials, money manufacturing
technology with respect and dignity.
A/0NO12EDGEMENT
The pro,ect of such magnitude cannot be accomplished without the
assistance and co+operation of several people. -$change of ideas generates
a new ob,ect to work in a better way. "o, whenever a person is helped and
co+operation by others, his heart is bound to pay gratitude and is not merely
formalities but an e$pression of deep sense of gratitude and cumulative
appreciation.
.ow first and foremost, ' feel highly obliged to Mr( R( 0( S"arma3 Di$trict
Manager& %'()A Tyres )td. Mu*affarpur who got me placed for pro,ect
training, which had sent materials, according to my topic for e$ecution in order
to perform the work for preparing this dissertation.
' would like to mention something special about my supervisor Mr( 4ipin
0umar, Asst. &rofessor# )...Mishra /ollege of %usiness Management,
Mu*affarpur, and making acknowledgement that without his kind co+operation,
attention, wise guidance and a regular feedback from me, my mission would
not have been fulfilled its milestone. ' have not the desired word power to
e$press my heartiest gratitude regards reverence and indebtness to him.
' also acknowledge with a deep sense of reverence, my gratitude towards of
my parents and member of my family, who has always supported me morally
as well as economically.
Executive Summary
'n today0s world of intense competition and rapid dynamism, all the companies
worldwide are tuning their focuses on the customer. "uddenly, the customer
had succeeded in capturing all the attention of the companies towards him, so
much so, that the once famous ma$im, 1customer is the god2 has become so
true and relevant today. There has been a 1paradigm shift2 in the thinking of
these companies and none other then the customer has brought this about.
-arlier there was a sellers market, since goods and services were in
short supply and the sellers use to call the shots. %ut, ever since the advent of
the era of globali*ation, there has been total transformation in the way the
customers being perceived. Their focus has shifted towards integrating the
three elements people, service and marketing.
A customers can 1make or break2 a company. 't is the responsibility of every
company to see that all its customers are e3ually 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. (esearch has thrown light on some important aspects of
customers0 retention it has been proved empirically that ac3uiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers.
'n 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,
3uality, service and product appeal. The attitude of the manufacture was that
of 1caveat 4 emptor2. Thanks to the government policies on liberali*ation,
globali*ation and privati*ation )&5#, 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
organi*ation, customers0 courts, switching to substitute or competitors that
offer at competitive prices, etc. The ma$im,2 caveat 4 emptor2 has been
replaced by 1caveat venditor2
Tale o! content$
S( No( Particular$ Pg( No(
1. 'ntroduction to the 'ndustry
2. 'ntroduction to the 6rgani*ation
3. (esearch Methodology
7.8 6b,ective of "tudy
7.9 Type of (esearch
7.7 "ample "i*e : method of
selecting sample
7.! "cope of "tudy
7.; )imitation of "tudy
4. Facts and Findings
5. Analysis and 'nterpretation
6. "<6T
7. /onclusion
8. (ecommendations :
"uggestion
9. Appendi$
10. %ibliography
INTROD5/TION TO BIR2A T6RES
Birla Tyres was first established in 1991, as part of Kesoram Industries Limited. It then
collaboratedwith world-class tyre manufacturer Pirelli, in the production and deelopment of
its tyres. !ince then, Birla Tyres has built a solid reputation for "uality and is now reco#ni$ed
as one of the best tyre manufacturers around
Li%e our products, Birla Tyres remains resilient and %eeps for#in# ahead, always
ready to e&plore the uncharted.
The first plant in Balasore was set up in collaboration with world-renowned tyre
manufacturer Pirelli in 1991.
The new hi#h-tech factory at La%sar-'aridwar, (ttaranchal, was built in a record time
of 1) months. This modern *s. +,)) crore 'aridwar factory today has a combined
production capacity of oer -- la%h truc% tyres per year.
The company en.oyed an increase in turnoer of *s. 19-/.++ crore in +))0 to *s.
+0-9.11 crores in +))9. 2e are now loo%in# ahead to reach a tar#et of *s. 33)) crore.
The 'aridwar plant attained a total pro.ected inestment of *s. +,)) crores.
In +))9, our e&port turnoer e&ceeded *s. ,/3 crore. Birla Tyres now e&ports to oer
3) countries.
4ur robust domestic networ% consists of 1) $onal offices. 2e hae also #rown our
sales depots from 0) to more than 1/) points to meet eery customer demand.
2e hae more than 1/) new sales en#ineers at ma.or locations to proide +--hour
claim settlements.
2ith an e&pandin# networ% of oer ,+)) dealers, Birla Tyres is #rowin# from
stren#th to stren#th. 2e are constantly wor%in# on new and attractie schemes to
increase dealer benefits
Birla Tyres entered the Indian tyre mar%et in 1991. The manufacturin# facilities are
located at Balasore in 4rissa. In ten years of operation, it has scaled new hei#hts of
productiity. The initial capacity of 1 million tyres per annum has since been
enhanced to 1.3 million tyres per annum. The new millennium saw it roll out hi#h
performance !teel Belted 5ar and L.5.6. radials, usin# state-of-the-art machines with
the latest technolo#y from the world famous Pirelli of Italy. The continuous "uest for
e&cellence saw the Birla Tyres team add many feathers to its cap. It has receied I!4
9))1, I!4 1-))) and 7! 9))) certification.
IND5STR6 PRO.I2E
A(G2OB2E 2E4E2
E7port Net#or'
%'()A T=(-" is a leading e$porter of Tyres from 'ndia and has achieved
;;> growth in e$ports during the year 9??@+9?8?.
%irla Tyres is a 5ovt. recogni*ed Trading House "tatus Holder and also has
been the recipient of /ape$il awards for -$ports for many years for its
consistency in maintaining marketing strategies for the e$port markets and
also developed new products to adapt to specific re3uirements of different
e$port markets. The e$ports operate through a strong and dedicated
distribution channels and our importers are fully supported by the companies
technical team and their duly trained persons. To make business we reach out
to the end usersA satisfying them with a 3uality product at a very reasonable
price(
'n spite of todayBs competitive global landscape, %'()A T=(-" continues to
en,oy high customersB confidence and loyalty. %'()A T=(-" e$ports 8;> of
its production of %us and Truck Tyres to more than ;? /ountries namely
%angladesh, Cietnam, Middle -ast, Africa, &hilippines, Afghanistan, "outh
America, .orth America etc. %'()A T=(-" occupies more than ;?> market
share in certain markets. <e feel proud that there are satisfied people around
the world riding safely on our tyres.
As a part of academic curriculums in partial fulfillment of 8Ma$ter o!
Bu$ine$$ Admini$tration8 the trainee has done this summer pro,ect in the
marketing division of BIR2A T6RES 2TD( Mu9a!!arpur. The introduction as
well as completion of the study is ST5D6 O. BRAND IMAGE #it" re$pect
to Price 2eader$"ip !or BIR2A 2(/(4( : S(/(4 T%re$3 at Mu9a!!arpur.
The study centered to take strategic decisions in support of BIR2A T6RES in
the field of marketing. The main scope of this study is to ascertain various
methods to increase the sales volume of the concern. The method includes
regular product information to the buyers, creating a brand position in the
market and taking measures to make the brand remain in its position. 6ne of
the important aspects of this study is also to increase the market segment for
the products.
A T;EORETI/A2 ASPE/T O. BRAND IMAGE 1IT; RESPE/T TO PRI/E
2EADERS;IP
A rand is a collection of images and ideas representing an economic
producerA more specifically, it refers to the descriptive verbal attributes and
concrete symbols such as a name, logo, slogan, and design scheme that
convey the essence of a company, product or service. %rand recognition and
other reactions are created by the accumulation of e$periences with the
specific product or service, both directly relating to its use, and through the
influence of advertising, design, and media commentary. A brand is a
symbolic embodiment of all the information connected to a company, product
or service. A brand serves to create associations and e$pectations among
products made by a producer. A brand often includes an e$plicit logo, fonts,
color schemes, symbols and sound which may be developed to represent
implicit values, ideas, and even personality. The key ob,ective is to create a
relationship of trust.
The brand, and "branding" and brand e3uity have become increasingly
important components of culture and the economy, now being described as
"cultural accessories and personal philosophies".
'n non+commercial conte$ts, the marketing of entities which supply ideas or
promises rather than product and services e.g. political parties or religious
organi*ations# may also be known as "branding"./oncepts
"ome marketers distinguish the psychological aspect of a brand from the
e$periential aspect. The e$periential aspect consists of the sum of all points of
contact with the brand and is known as the rand e7perience. The
psychological aspect, sometimes referred to as the rand image, is a
symbolic construct created within the minds of people and consists of all the
information and e$pectations associated with a product or service.
Marketers engaged in branding seek to develop or align the e$pectations
behind the brand e$perience see also brand promise#, creating the
impression that a brand associated with a product or service has certain
3ualities or characteristics that make it special or uni3ue. A brand is therefore
one of the most valuable elements in an advertising theme, as it demonstrates
what the brand owner is able to offer in the marketplace. The art of creating
and maintaining a brand is called brand management. This approach works
not only for consumer goods %9/ %usiness+to+/onsumer#, but also for %9%
%usiness+to+%usiness#, see &hilip Dotler : <aldemar &foertsch.
A brand which is widely known in the marketplace ac3uires rand
recognition. <hen brand recognition builds up to a point where a brand
en,oys a critical mass of positive sentiment in the marketplace, it is said to
have achieved rand !ranc"i$e. 6ne goal in brand recognition is the
identification of a brand without the name of the company present. For
e$ample, Eisney has been successful at branding with their particular script
font originally created for <alt EisneyBs "signature" logo#, which it used in the
logo.
/onsumers may look on branding as an important value added aspect of
products or services, as it often serves to denote a certain attractive 3uality or
characteristic see also brand promise#. From the perspective of brand
owners, branded products or services also command higher prices. <here
two products resemble each other, but one of the products has no associated
branding such as a generic, store+branded product#, people may often select
the more e$pensive branded product on the basis of the 3uality of the brand
or the reputation of the brand owner.
Brand name
The brand name is often used interchangeably with "brand", although it is
more correctly used to specifically denote written or spoken linguistic
elements of a brand. 'n this conte$t a "brand name" constitutes a type of
trademark, if the brand name e$clusively identifies the brand owner as the
commercial source of products or services. A brand owner may seek to
protect proprietary rights in relation to a brand name through trademark
registration. Advertising spokespersons have also become part of some
brands, for e$ampleF Mr. <hipple of /harmin toilet tissue and Tony the Tiger
of DelloggBs.
The act of associating a product or service with a brand has become part of
pop culture. Most products have some kind of brand identity, from common
table salt to designer clothes.
Brand identity
How the brand owner wants the consumer to perceive the brand + and by
e$tension the branded company, organisation, product or service. The brand
owner will seek to bridge the gap between the brand image and the brand
identity.
G9H
%rand identity is fundamental to consumer recognition and
symboli*es the brandBs differentiation from competitors.
%rand identity may be defined as simply the outward e$pression of the brand,
such as name and visual appearance.
G7H
"ome practitioners however define
brand identity as not only outward e$pression or physical facet#, but also in
terms of the values a brand carries in the eye of the consumer. 'n 8@@9 Iean+
.oel Dapferer developed the %rand 'dentity &rism, which charts the brand
identity along a constructed source and constructed receiver a$is, with
e$ternali*ation on the one side and internali*ation on the other. 6n the
e$ternali*ation side brand identity consists of "physical facet", "relationship"
and "reflected consumer". 6n the internali*ation side brand identity consists of
"personality", "culture values#" and "consumer mentalisation". 'n this respect
Dapferer positions brand personality as one factor within brand identity.
Brand personality
%rand personality is the attribution of human personality traits to a brand as a
way to achieve differentiation. "uch brand personality traits may include
seriousness, warmth, or imagination. %rand personality is usually built through
long+term marketing, as well as packaging and graphics.
Brand promise
%rand promise is a statement from the brand owner to customers, which
identifies what consumers should e$pect from all interactions with the brand.
'nteractions may include employees, representatives, actual service or
product 3uality or performance, communication etc. The brand promise is
often strongly associated with the brand ownerBs name andJor logo.
Brand value
Brand e<uit% or brand value measures the total value of the brand to the
brand owner, and reflects the e$tent of brand franchise.
A brand can be an intangible asset, used by analysts to rationali*e the
difference between a companyBs "book value" and market value. For e$ample,
the market value of a company can far e$ceed its tangible assets physical
assets owned by the company, such as stock or machinery#, and its brand
value can account for some of the difference. Kp to L; percent of a
company0s market value might be intangible for e$ample know+how, e$isting
client relationships#, and 'nterbrand, a brand consultancy, states that tangible
assets may account for less than five percent of a company0s market value.
%rand value, especially in the case of consumer product brands, may arise
out of customer loyalty. %rand value may also arise in terms of staff retention
benefits e.g. the ability of the company to attract and retain skilled andJor
talented employees offering competitive salaries#.
/ampaigning groups may deliberately target a company0s brand value to
force a company into adopting a certain position or practices. "ome campaign
groups have thought to do this by deliberately subverting a brand0s image,
logo or message, creating a negative association among consumers. This
attack may be visual, as pioneered by groups such as Adbusters, or focusing
on the message.
Brand monopoly
'n economic terms the "brand" is, in effect, a device to create a "monopoly" M
or at least some form of "imperfect competition" M so that the brand owner
can obtain some of the benefits which accrue to a monopoly or uni3ue point of
sale, particularly those related to decreased price competition. 'n this conte$t,
most "branding" is established by promotional means. However, there is also
a legal dimension, for it is essential that the brand names and trademarks are
protected by all means available.
'n all these conte$ts, retailersB "own label" brands can be ,ust as powerful. The
"brand", whatever its derivation, is a very important investment for any
organi*ation
Branding policies
There are a number of possible policiesF
Company name
6ften, especially in the industrial sector, it is ,ust the companyBs name which is
promoted leading to one of the most powerful statements of "branding"A the
saying, before the companyBs downgrading,#.
'n this case a very strong brand name or company name# is made the vehicle
for a range of products or even a range of subsidiary brands.
ndividual !randing
'ndividual branding, also called multibranding, is the marketing strategy of
giving each product in a product portfolio its own uni3ue brand name.
This is contrasted with family branding in which the products in a
product line are given the same brand name. The advantage of
individual branding is that each product has a self image and identity
thatBs uni3ue. This facilitates the positioning process. That means that
there are less Halo+effects and one can position all products differently
without making trade+offs.
"ttitude !randing
Attitude branding is the choice to represent a larger feeling, which is not
necessarily connected with the product or consumption of the product at all.
Marketing labeled as attitude branding include that of .ike, "tarbucks, The
%ody "hop, "afeway, and Apple /omputer. 'n the 9??? book, .o )ogo,
attitude branding is described by .aomi Dlein as a "fetish strategy".
#$o%!rand# !randing
(ecently a number of companies have successfully pursued ".o+%rand"
strategies, e$amples include the Iapanese company Mu,i, which means ".o
label, 3uality goods" in -nglish. Although there is a distinct Mu,i brand, Mu,i
products are not branded. This no+brand strategy means that little is spent on
advertisement or classical marketing and Mu,iBs success is attributed to the
word+of+mouth, a simple shopping e$perience and the anti+brand movement.
6ther brands which are thought to follow a no+brand strategy like Mu,i, does
not brand its products.
&erived !rands
'n this case the supplier of a key component, used by a number of suppliers of
the end+product, may wish to guarantee its own position by promoting that
component as a brand in its own right.
Brand development
'n terms of e$isting products, brands may be developed in a number of waysF
Brand e'tension
The e$isting strong brand name can be used as a vehicle for new or modified
productsA for e$ample, many fashion and designer companies e$tended
brands into fragrances, shoes and accessories, home te$tile, home decor,
luggage, sun+# glasses, furniture, hotels, etc.
(ulti%!rands
Alternatively, in a market that is fragmented amongst a number of brands a
supplier can choose deliberately to launch totally new brands in apparent
competition with its own e$isting strong brand and often with identical product
characteristics#A simply to soak up some of the share of the market which will
in any case go to minor brands. The rationale is that having 7 out of 89 brands
in such a market will give a greater overall share than having 8 out of 8?
even if much of the share of these new brands is taken from the e$isting
one#. 'n its most e$treme manifestation, a supplier pioneering a new market
which it believes will be particularly attractive may choose immediately to
launch a second brand in competition with its first, in order to pre+empt others
entering the market.
-arlier there was a sellers market, since goods and services were in short
supply and the sellers use to call the shots. %ut, ever since the advent of the
era of globali*ation, there has been total transformation in the way the
customers being perceived. Their focus has shifted towards integrating the
three elements people, service and marketing.
A customers can 1make or break2 a company. 't is the responsibility of
every company to see that all its customers are e3ually satisfied with them, for
one single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company. (esearch has thrown light on some important aspects of
customers0 retention it has been proved empirically that ac3uiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers.
'n the past, the customers was taken for a ride, as there were not many
players in the fields, not much importance was attached to product safety,
3uality, service and product appeal. The attitude of the manufacture was that
of 1caveat 4 emptor2. Thanks to the government policies on liberali*ation,
globali*ation and privati*ation )&5#, the market scenario has changed today.
Today, the customer has a host of defense mechanism like the customers
protection laws, regulation of the government, the powerful hands of the
organi*ation, customers0 courts, switching to substitute or competitors that
offer at competitive prices, etc. The ma$im,2 caveat 4 emptor2 has been
replaced by 1caveat venditor2.
Aout T%re indu$trie$ in India
Bac'ground
The origin of the 'ndian Tyre 'ndustry dates back to 8@9N when Eunlop
(ubber )imited set up the first tyre company in <est %engal. M(F followed
suit in 8@!N. "ince then, the 'ndian tyre industry has grown rapidly.
Transportation industry and tyre industry go hand in hand as the two are
interdependent. Transportation industry has e$perienced 8?> growth rate
year after year with an absolute level of LO? billion ton freight. <ith an
e$tensive road network of 7.9 million km, road accounts for over L;> of all
freight movement in 'ndia.
0e% I$$ue$ o! t%re indu$trie$
;ig" ta7 u$age
The high ta$ content on tyres can be gauged from the fact that the percentage
of total ta$ to the ta$ e$cluded price for various categories of tyres is + !!> for
Truck TyreA !8> for &assenger /ar (adial Tyre, 7;> for Tractor (ear Tyre
and ON> for Truck Tyre

Increa$e in ra# material co$t$
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. .atural rubber .(#, with 9@> weightage in
the cost of raw materials used by tyre industry, is the highest cost item.
Annual consumption of .( by tyre industry is 7.;? lakh tonnes, valued at (s.
8! billion. 6ver L;> of .( consumedB by the industry is procured
domestically. 8;> is imported.
Import o! t%re$
Euring the F=9??9, over 8,8?,??? passenger car tyres were imported.
Although this constitutes a small percentage 8.;># of total passenger car
tyre production in the country, since total imports are of radial passenger car
tyres, the percentage is higher when compared against domestic production
of radial passenger car tyres. A large percentage of imports are from "outh
Dorea at a concessional rate of customs duty i.e. 8;># under the %angkok
Agreement + as against 9?> normal rate of customs duty.
-ven though the 5overnment has imposed a restraint on the import of used
tyres into 'ndia, occasionally there are reports of import of such tyres in a
clandestine manner, sometimes as new tyre at low value, since there is no
restriction on import of new tyres or as tyres under the "others" category.
Many countries such as Iapan, %angladesh, &akistan, &hilippines, Thailand,
Denya, "outh Dorea, etc. have either put a complete ban on import of used
tyres or have placed stringent conditions on such imports.
T%re E7port$
The product focus of tyre e$ports from 'ndia has been Traditional Truck Tyres.
5lobally this segment of tyre e$port is shrinking due to greater acceptance of
radial tyres. 6ver the years, /hina has emerged as a ma,or e$porter in bias
tyre category. Additionally, e$port of 'ndian tyres to select countries is
sub,ected to non+tariff barriers .T%s# by way of standards, tests, etc. -$port
of cheaper tyres from /hina to ma,or tyre importing markets, like K", is
adversely affecting 'ndian tyre e$ports to these markets. 'ndiaBs share in
e$ports to these countries especially K"A# is progressively declining. 'f the
trend is not reversed, 'ndian tyre industry will find it e$tremely difficult to
regain its erstwhile position in these markets. )ow rate of interest, cheaper
electricity tariff, hidden subsidies by the /hinese 5overnment, better
infrastructure facilities and lower transaction costs are factors favourable to
/hinese tyre industry.
Trend$ in Production3 /on$umption3 Price : /apacit% 5tili9ation
The total tyre produced in the country was ;8.;L million units in F=9??7 + a
8@> growth rate over F=9??9.
/AGR o! t%re production =in >?
.6 -++@,)**@ +>
.6 -++@,-++A B>
.6 -+++,)**@ +>
.6 )**),)**@ -+>
Compiled !y $)*+,
/urrently, the si*e of the 'ndian tyre industry is estimated at (s. 89L billion
?.;> of 'ndian 5E&#, as of F=9??7. The total installed capacity of the 'ndian
tyre industry is around N?.; mn units, and the capacity utili*ation is around
L;>. Additionally, in F=9??7, the price reali*ation of tyre manufacturers also
registered an increase by L>, as against a ?.N> increase in F=9??9.
Demand Suppl% Gap
The demand for tyres is either in the domestic market or in the e$port market.
As far as domestic demand is concerned, the 6-M and the replacement
segments are likely to witness strong growth given the current performance of
the automotive sector. 5iven the strong linkages of tyre industry with
automotives, its demand is likely to be strong over the short to medium term.
As regards supply of tyres, currently, the ma,or players are in the process of
e$panding their capacities, in anticipation of uptrend in sales. For instance,
Apollo Tyres has set up a ,oint venture with Michelin for manufacture and sale
of bus and truck radials. ID is e$panding its Mysore truck and bus radial
facility along with eyeing ac3uisitions of smaller units. /eat has increased its
offtake by 7 times from &irelli. However, a characteristic of the 'ndian tyre
industry is that most of the tyre manufacturers in the past had increased
capacities in anticipation of a surge in demand, but when it did not materialise,
they reduced their addition to capacities. Thus, the demand+supply gap is
likely to be an important issue for the 'ndian tyre industry over the short to
medium term.
ReCie# o! Per!ormance
OCerall Per!ormance
The operating margin of the representative sample of tyre companies
improved during F=9??7. However, the net profit margin of the tyre
companies even though improved, was still at 7>.
Per!ormance in .6)**D
The tyre industry continues to be driven by good demand growth, propelled by
sustained uptrend in demand and sales of automobiles in general, and
commercial vehicles and passenger cars in particular. However, this does not
get translated into improved margins for the industry, as it is witnessing
sustained rise in prices of raw materials like natural rubber. Additionally, the
customs duty on imports has been brought down from 9;> to 9?> and
"pecial Additional Euty of !> has been dispensed with.
Outloo'
The level of economic activity, performance of domestic automotive industry,
and the faring of the transport sector directly influence the performance of the
tyre industry in 'ndia. <ith the replacement segment dominating the overall
tyre demand in 'ndia, the industry remains inherently vulnerable to economic
cycles. <hile radicali*ation has become the norm in the passenger car
segment, in the bus and truck tyre segment, its acceptance is still limited. %us
and truck radicali*ation could emerge in the long term as the 3uality of roads
improves and the restrictions on overloading are better enforced. The practice
of re+treading, which is gaining increasing acceptance, could pose a challenge
to replacement demand in the medium term.
'n the domestic market, tyre manufacturers are e$pected to increasingly focus
on e$panding their dealership networks : e$plore possibilities of tie+ups
among themselves to penetrate the growing customer base. They are also
likely to pursue innovative measures such as "dial+a+tyre service and road
shows# to improve customer awareness.
The consolidation of the 'ndian tyre industry is likely to continue in the coming
years through mergers among e$isting players. The industry is likely to
e$pand through a combination of organic and inorganic growth. <hile organic
growth would come from raising efficiency levels, inorganic growth would be
achieved through alliances and M:As.
a( Gro#t" o! T%re indu$trie$ in India
The 'ndian tyre industry is e$pected to clock a tonnage growth of @+8? per
cent over the ne$t five years, according to a study by /redit Analysis and
(esearch )imited /A(-#
<hile the truck and buses tyres are set to register a /A5( compounded
annual growth rate# of L per cent, the )/C light/ommercial vehicles# tyres
are poised for a /A5( of 8! per cent.
According to the /A(- study, the growth in the 'ndian tyre industry will be
fuelled by the e$pansion plans of the automobile companies, governmentBs
focus on development of road infrastructure and sourcing of auto parts by the
global 6riginal -3uipment Manufacturers 6-Ms#. However, the tyre industry
has to grapple with raw material price volatility, rupee appreciation and cheap
/hinese imports.
The tyre industry in 'ndia recorded a /A5( of @.N@ per cent during 9??9+?O.
The si*e of the industry was estimated at (s 8@,??? crore in 9??N+?O with a
total production of O7N lakh units of tyres. 'n 9??N+?O, the replacement tyres
accounted for ;7 per cent of the total tyre tonnage offtake, followed by 78 per
cent share of 6-M and 8; per cent by e$ports.
6ut of the O7N lakh ton of tyres, ;!, !@,;N? units worth (s 9,N?? crore were
e$ported. The e$ports from 'ndia posted a /A5( of 87 per cent in unit terms
and 8L per cent in value terms between 9??9+?O.
The study points out that on the e$port front, the 'ndian tyre companies need
to e$plore newer markets as the e$isting market is nearing saturation. This
apart, with rationali*ation catching up in the foreign markets, the 'ndian tyre
companies need to graduate to radial tyres so as to protect their share in the
e$port market.
The /A(- report observes that though the tyre technology in 'ndia has
witnessed several developments with continuous innovation, the domestic
tyre manufacturers still lag behind their global counterparts in terms of product
differentiation. 5lobal tyre makers offer a wide change of products like tyres
with pressure warning systems, run flat tyres, eco+friendly tyres and energy
efficient tyres
'ndividual brand names naturally allow greater fle$ibility by permitting a variety
of different products, of differing 3uality, to be sold without confusing the
consumerBs perception of what business the company is in or diluting higher
3uality products.
6nce again, &rocter : 5amble is a leading e$ponent of this philosophy,
running as many as ten detergent brands in the K" market. This also
increases the total number of "facings" it receives on supermarket shelves.
"ara )ee, on the other hand, uses it to keep the very different parts of the
business separate M from "ara )ee cakes through Diwi polishes to )B-ggs
pantyhose.
,mall !usiness !rands
%randing a small or medium si*ed business "M-# follows essentially the
same principle a branding larger corporation. The main differences being that
small businesses usually have a smaller market and have less reach than
larger brands. "ome people argue that it is not possible to brand a small
business, however there are many e$amples of small businesses that
became very successful due to branding.
-.n !rands and generics
<ith the emergence of strong retailers the "own brand", a retailerBs own
branded product or service#, also emerged as a ma,or factor in the
marketplace. <here the retailer has a particularly strong this "own brand" may
be able to compete against even the strongest brand leaders, and may
outperform those products that are not otherwise strongly branded.
/oncerns were raised that such "own brands" might displace all other brands,
but the evidence is that M at least in supermarkets and department stores M
consumers generally e$pect to see on display something over ;? per cent
and preferably over N? per cent# of brands other than those of the retailer.
The strength of the retailers has, perhaps, been seen more in the pressure
they have been able to e$ert on the owners of even the strongest brands and
in particular on the owners of the weaker third and fourth brands#.
(elationship marketing has been applied most often to meet the wishes of
such large customers and indeed has been demanded by them as
recognition of their buying power#. "ome of the more active marketers have
now also switched to Bcategory marketingB + in which they take into account all
the needs of a retailer in a product category rather than more narrowly
focusing on their own brand.
8t the same time, probably as an out#rowth of consumerism, 9#eneric9 :that is,
effectiely unbranded #oods; hae also emer#ed. These made a positie irtue
of sain# the cost of almost all mar%etin# actiities< emphasi$in# the lac% of
adertisin# and, especially, the plain pac%a#in# :which was, howeer, often
simply a ehicle for a different %ind of ima#e;..
)( INTROD5/TION TO T;E ORGANIEATION
;i$tor% o! t"e Organi9ation
BIR2A T%re$ straddles the 'ndian tyre industry much like the 5reek "un 5od
%'()ABs four horse+drawn chariot races across the vast e$panse of the sky,
symbolising the creation of light, hence knowledge and truth. And like the
5reek charioteer, %'()A Tyres has stood the test of time on the four pillars of
vision, integrity, 3uality and sheer determination.
The history of %'()A Tyres dates back to 8@O! when it was incorporated as a
company in /ochin, Derala through the purchase of a licence from the (uby
(ubber <orks. /ochin by Mr. Mathew T. Marattukalam, Iacob Thomas and
his associates. 'n 8@ON, the company was taken over by Er. (auna3 "ingh.
%'()ABs first manufacturing facility often referred to as the Bmother plantB# is in
&erambra, /ochin where production commenced in 8@OO with an installed
capacity of !9?,??? each of tyres and tubes.
The first 9? years of the companyBs e$istence were not easy. Those were
times when licences and 3uotas ruled the world of manufacturing in a market
dominated by multinational companies with access to technology and
machinery and deep pockets.
Therefore, soon after its inception, due to the huge investments re3uired,
%'()A wiped out its net worth and became a %'F( company during the
-mergency years. However, %'()A Tyres was returned to its owners during
the Ianata 5overnment.
%'()A then used to make the entire gamut of tyres re3uired for scooters,
bicycles, trucks and cars. However, the then core team, led by 6nkar "ingh
Danwar, reali*ed that to make an impact in the market and become financially
viable it had to become a dominant player in the commercial vehicles
segment. At the time, Modi Tyres had an overwhelming market share and
reputation. -$tensive on+ground research by the team allowed it to
understand the areas in which %'()A could make an impact.
The philosophy then was Bone product fits allB, where regardless of the kind of
usage, the tyres truckers fitted on their vehicles were the same. Team %'()A
decided to known as the BoverloadB segment and produce tyres which could
withstand the e$tra load the vehicles were made to carry, while providing
drivers with the crucial safety net. 't was a tyre called the Hercules which was
the first of its kind. )ater, products like Amar, )oadstar and PT+O, PT+@ and
PT+@ 5old were introduced, products still en,oy consumer validation. 'n fact,
PT+@ is the only tyre in 'ndia to have sold more than one crore units, providing
the superiority of the product.
'n later years, there have been many such first in %'()ABs cap. Apart from
en,oying the distinction of being the first tyre company to segment the market
on the basis of load and mileage re3uirements, it has been the first to
introduce packaging for car tyres and tubes and also the very first 'ndian
company to introduce farm radial tyres. n other innovative moves, %'()A is
the first tyre company to run customer loyalty and awareness programmes to
enable them to derive optimal benefits from their %'()A farm tyres, and also
the first to launch e$clusive rural retail stores B%'()A Tyre <orldB for truck
tyres. %'()A tyres )td. has another first to its credit being the first Tyre
Manufacturing /ompany <orldwide to be certified for %OO@@ given for
information security of 'T systems. Another landmark has been the successful
implementation of "A& across the organisation for better results and
productivity.
"People deliver innovation
Innovations deliver success
A few of the differences our people made"
First 'ndian tyre company to launch e$clusive branded outlets ++ %'()A Tyre
<orld ++ for truck tyres
First 'ndian tyre company to segment the market on the basis of load and
mileage re3uirements
First 'ndian tyre company to introduce packaging for car and two+wheeler
tyres and tubes
First 'ndian tyre company to run a customer loyalty programme
First 'ndian tyre company to introduce radial tyres for the farm category
First tyre company in 'ndia to obtain '"6 /ertification for all its operations
First 'ndian tyre company to produce H, C and <+speed rated tubeless tyres
First 'ndian tyre company to run H'C+A'E" awareness and prevention clinics
for the trucking community
First 'ndian tyre company to support the creation of an -mergency Medical
"ervice in an 'ndian city
First 'ndian tyre company to e$ecute an overseas ac3uisition
First 'ndian tyre company to reach a revenue of over K"Q 8 billion
8@O; 'nception
8@O; (egistered as a company
8@OO First plant commissioned in &erambra /ochin, Derala#
8@@8 "econd plant commissioned in )imda %aroda, 5u,arat #
8@@; Ac3uired &remier Tyres in Dalamassery /ochin, Derala#
8@@N -$clusive tubes plant commissioned in (an,angaon &une,
Maharashtra#
9??? -$clusive radial capacity established in )imda
9??? -stablished %'()A Tyres Health /are /linic for H'C+A'E" awareness
and prevention in "an,ay 5andhi Transport .agar, Eelhi
9??7 -$pansion of passenger car radial capacity to N,N?? tyresJday
9??! &roduction of 'ndia Bs first H+speed rated tubeless passenger car radial
tyres
9??! "upport in setting up 'ndia Bs first -mergency Medical "ervice in
%aroda , 5u,arat 9??; %'()A Tyres Health /are /linics in Kdaipur
in (a,asthan and Danpur in Kttar &radesh
9??N -$pansion of passenger car radial capacity to 8?,??? tyresJday
9??N -$pansion of passenger car range to include !$! and all+terrain tyres
9??N Ac3uired Eunlop Tyres 'nternational in "outh Africa and Rimbabwe
9??N 6pening of %'()A Tyres Health /are /linic in Kkkadam, Tamil .adu
9??N )aunch of EuraTread, treading material and solutions
9??N )aunch of 'ndiaBs first range of ultra+high performance C and <+speed
rated tyres
9??O )aunch of (egal truck and bus radial tyres
9??O )aunch of EuraTyre, retreaded tyres from %'()A
9??O )aunch of the %'()A Tennis 'nitiative and Mission 9?8L
T"e .uture
At %'()A Tyres, they believe in being in control of their destiny. They set
ambitious targets and believe in stretching themselves to outperform them.
Therefore, the leadership position in the 'ndian market notwithstanding,
%'()A is now set to look overseas for new challenges. .early all initiatives
being taken at this point in time are geared to fuel this ambition.
At home and abroad, %'()A is looking to not only consolidate its leadership
position in various segments through newer, high technology products but
also through consistent organic and inorganic growth opportunities, in tyres
and allied products. %ecoming a leader in the passenger car tyre segment is a
priority as is the e$port of passenger car radials. 'f the company continues to
grow at the current pace, %'()A e$pected to reach the K"Q8 billion mark in
less than five years. /ontinuous focus on cost control and operating efficiency
remains the hallmark of the company.
Adding to all this is the fact that radialisation in 'ndia is throwing up fresh
opportunities, as is the boom in road infrastructure and the completion of the
5olden Suadrilateral and the .orth+"outh+-ast+<est corridor. Therefore the
future is optimistic with promises of a virtuous cycle of growth.
%'()A has three Tyre manufacturing facilities and one unit for the production
of tubes and flaps in four locations based in <est and "outh 'ndia. %'()A
-ndeavour has been to have the widest spread of sales and regional offices,
along with stock points at locations which allow for ma$imum customer reach
and efficient supply chain management. %'()A dealer or business partners
are also chosen with great care. %'()ABs products are sold through a
combination of outlets ranging from e$clusive dealerships to multi+brand and
branded retail outlet The continuous up gradation of dealer knowledge is in
%'()ABs interest and therefore their training is undertaken by the company.
<ith a dedicated field sales, technical and commercial force of N??, we feel
that we are best positioned to meet the customer specific needs.
Re$earc" and DeCelopment !or BIR2A T%re$
The state+of+the+art (esearch : Eevelopment /entre had its birth at
&erambra, /ochin and later on, it has grown to a substantial height and
stature at its present location at )imda, %aroda. From the hour of inception, its
goal has been to foster development and promote the evolution of new
technologies in the field of Tyre "cience : Technology. (ecently company
has tie ups with ''TBs : ''MBs for (ubber Technologies.
All the activities of the centre are e$tensively supported by a series of highly
sophisticated e3uipment, which help the research scientists develop products
as per customersB specific re3uirements.
<e have the facilities and e$pertise forF
Eevelopment of compounds for improved performance
(aw material development
Analytical research
(everse engineering
Advanced design using /AE
F-A modeling of tyres
"imulation testing of the designed product
&roduct validity : reliability studies
The different activities of the centre are being e$ecuted by a pool of
specialists from the arena of &olymer "cience, (ubber Technology, 'norganic
: 6rganic /hemistry, Te$tile Technology, &hysics and Mathematics. Through
a synergistic blend of knowledge, e$perience and hard work, this
multidisciplinary team of scientist devoted to lead the organisation towards an
outstanding level of success. /urrently, the centre is aiming for further growth
and is e$ploring unchartered areas of research in the field of Tyre Technology
that will provide %'()A Tyres the edge in todayBs ultra+competitive global
market scenario. The brand name is often used interchangeably with "brand",
although it is more correctly used to specifically denote written or spoken
linguistic elements of a brand. 'n this conte$t a "brand name" constitutes a
type of trademark, if the brand name e$clusively identifies the brand owner as
the commercial source of products or services. A brand owner may seek to
protect proprietary rights in relation to a brand name through trademark
registration. Advertising spokespersons have also become part of some
brands, for e$ampleF Mr. <hipple of /harmin toilet tissue and Tony the Tiger
of DelloggBs.
Mar'eting Strateg%
"trategic thinking is key to the evolution of successful marketing strategies of
%irla Tyre. This involves the following analysesF
i. 5nder$tanding mar'et$& "trategic perspective of the market re3uires
skilful analysis of the trend and how they affect the market si*e and
demand for the firm0s product.
ii. .inding mar'et nic"e$& &rice, service, convenience and technology are
some of the niches in 'ndian market.
iii. Product and $erCice planning& Analysis of the customer0s promotion of
the brand, both of the firm and competitors, besides an analysis of the
situation in which the customer uses the product.
iv. Di$triution& "tructural changes in inventory management, mobile
distribution are some of the key factors that are going to affect the
distribution process in the 'ndian market.
v. Managing !or re$ult& <ith pressure on costs, prices, and margins,
marketers will have to make effective utili*ation of every rupee spent in
marketing.
Mar'et opportunit% o! Birla&
'dentification of market opportunity is critical before the management of affirm
takes a decision to launch or diversify in any product area. This involves
analysis of the followingF
"i*e of the market
Marketing strategies and the e$tent and 3uality of services rendered by
other firm in the industry.
Market programmed re3uired to satisfy market wants
'dentification of key success factors in an industry and linking them to a
firm0s strengths and weakness
Market opportunity
a. "i*e of the market
b. How well the market is served
c. &rospective inches
d. Marketing mi$ re3uired to succeed
e. /ore competencies re3uired
Market opportunity
!i$e of the mar%et
'ow well the mar%et is sered
Prospectie inches
=ar%etin# mi& re"uired to succeed
5ore competencies re"uired
>emand
5ondition
s
=ar%et
se#ment
analysis
Industry
analysis
5ompetition
analysis
Trade
analysis
Framework of market opportunity analysis
Si9e o! t"e mar'et&
"i*es of the market are....
'. Demand anal%$i$& is the core aspect of market opportunity.
''. Segmentation anal%$i$& is the process of dividing the market into
homogeneous sub units.
III( Indu$tr% anal%$i$&
Indu$tr% Anal%$i$ , PorterF$ Model
Inter ?irm *ialry@ Low
The tyre industry in India is fairly
concentrated, with the top ei#ht
companies accountin# for more than
0)A of the total production of tyres
Bntry Barriers@ 'i#h
The entry barriers are hi#h for the tyre
industry. It is a hi#hly capital intensie
industry. 8 plant with an annual capacity of
1.3 million cross-ply tyres costs between *s.
-,))) and *s. 3,))) million. 8 similiar plant
producin# radial tyres costs *s. 0,)))
million.
Bar#ainin# Power of the
!uppliers@ 'i#h
The tyre industry consumes
nearly 3)A of the natural
rubber produced in the
country. The price of natural
rubber is controlled by *ubber
5ontrol Board and the
domestic prices of natural
rubber hae re#istered a
si#nificant increase in recent
times.
Bar#ainin# Power of the
Buyers@ 'i#h
The 4B=s hae total control
oer prices. In fact, the
4B=s faced with declinin#
profitability hae also
reduced the number of
component suppliers to ma%e
the supply chain more
efficient.
Threat of !ubstitutes@ Low but Increasin#
>urin# the ?C+))+, oer 1,1),))) passen#er
car tyres were imported. This constitutes oer
+A of total radial passen#er car tyre
production in the country. 'oweer, with the
reduction of pea% custom duty, the import of
tyres is li%ely to increase.
iv. /ompetitor anal%$i$& analysis of competition how well the market is
served.
Mar'eting mi7&
A Marketing mi$ is the division of groups to make a particular product, by pricing,
product, branding, place, and 3uality. Although some marketers
Gwho?H
have added
other &Bs, such as personnel and packaging, the fundamentals of marketing
typically identifies the four &Bs of the marketing mi$ as referring toF
8. &roduct
9. &rice
7. &romotion
!. &lace
Product
A tangible ob,ect or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units. 'ntangible
products are often service based like the tourism industry : the hotel industry.
Typical e$amples of a mass produced tangible ob,ect are the tyre. A less
obvious but ubi3uitous mass produced service is a computer operating
system.
Product range&
BIAS
SIEE T6PE
RIB @.??+9?8!&(
I-T ('%
@.??+9?8N&(
I-T ('%
8?.??+9?8N&( I-T ('%
I-T M')-"
SEMI
25G
@.??+9?8!&(
T(A/D TKF
@.??+9?8N&(
T(A/D TKF
8?.??+9?8N&(
T(A/D TKF
.6(MA)
)6AE
L.9;+9?8!&(
I-T T(A/D
@.??+9?8!&( I-T T(A/D
@.??+9?8N&( I-T T(A/D
8?.??+9?8N&( I-T D'.5
25G
88.??+9?8N&( I-T D'.5
89.??+9?8N&( I-T D'.5
M6E-(AT-
L.9;+9?8!&(
I-T T(A/D
@.??+9?8!&( I-T T(A/D
@.??+9?8N&( I-T T(A/D
8?.??+9?8N&( I-T /)A""'/
8?.??+9?8N&(
T(A/D 7@ : EP
8?.??+9?8N&(
T(A/D 7@ EP
RADIA2
SIEE T6PE
25G
@.??+9?8N&( I-T "T--)+IEH
8?.??+9?8N&( I-T "T--)+IE/
88.??+9?8N&( I-T "T--)+IE/
SEMI
25G
?@.??+9?8N&( I-T <A= IK/
8?.??(9?8N&( I-T <A= IK/
88.??(9?8N&( I-T <A= IK/
RIB
@.??(9?8!J8N&( I-T <A= IK/
8?.??(9?8N&( I-T <A= I%(
88.??(9?8N&( I-T <A= IKH
89.??(9?8L&( I-T <A= IKH
Price
H-AC=
"K&-(
H-AC=
The price is the amount a customer pays for the product. 't is determined by a
number of factors including market share, competition, material costs, product
identity and the customerBs perceived value of the product. The business may
increase or decrease the price of product if other stores have the same
product.
Place
&lace represents the location where a product can be purchased. 't is often
referred to as the distribution channel. 't can include any physical store as well
as virtual stores on the 'nternet.
Promotion
&romotion represents all of the communications that a marketer may use in
the marketplace. &romotion has four distinct elements + advertising, public
relations, word of mouth and point of sale. A certain amount of crossover
occurs when promotion uses the four principal elements together, which is
common in film promotion. Advertising covers any communication that is paid
for, from television and cinema commercials, radio and 'nternet adverts
through print media and billboards. 6ne of the most notable means of
promotion today is the &romotional &roduct, as in useful items distributed to
targeted audiences with no obligation attached. "aes staff, word of mouth,
&ublic relations etc are other such means of promotion.
.inancial Statu$ o! t"e Organi9ation
NG .INAN/IA2 ;IG;2IG;TSOPERATI
Competitors o/ t0e -rgani1ation
)ist of competitors
CEAT
MRF
DUNLOP
BRIDGESTONE
J.K.Tyre
BIRLA
GOODYEAR
OTHERS
<e are manufacturers and e$porters of Automotive Tyres, Tubes : Flaps.
Carious types of tyres available is given here F
Eeep Tread Highway (ib, "tandard Highway (ib, Heavy Euty Highway (ib,
Highway (ib, -$tra Heavy Euty )ug, All Terrain Highway Traction, -$tra
Eurable )ug, ('%+)K5 F6( H-AC= EKT= 6.J6FF K"-, H'5H<A= ('%,
&A""-.5-( %'A" T=(-", (-A( FA(M T=(-", FA(M "-(C'/- ('%,
FA%('/ %-)T-E (AE'A) &A""-.5-( T=(-", MKE A.E ".6< T=(-".
<e provide services such as F
-"/ F =6K( C'TA) )'.D T6 TH- '.F6(MAT'6. T-/H.6)65= A.E
-)-/T(6.'/" '.EK"T(= '. '.E'A.
-lectronics and /omputer "oftware -$port &romotion /ouncil -"/#+an
autonomous organi*ation under the Ministry of 'nformation Technology,
5overnment of 'ndia is the nodal agency to promote the -lectronics and
/omputer "oftware trade with 'ndia. 't has a membership of 8L?? companies
divided into the following product groups F+ /onsumer -lectronics and toys of
all kinds, -lectronic /omponents, /omputer Hardware and &eripherals,
Telecommunication -3uipment, -lectronic 'nstruments, Medical and other
'ndustrial -lectronics, /omputer "oftware, 'nternet (elated "ervices.
&ractically all ma,or players in the 'ndian -lectronics e$port arena are
members of -"/. The services provided by -"/ include. +
Eevelopment of e$port and e$ploration of possibilities of strategic tie ups,
contract manufacturing and other tie ups.
Market research studies in ma,or overseas markets on a regular basis to
e$plore foreign markets and identify items of e$port potential.
A constant stream of upgraded information on international marketing trends
and products specifications is made available, on a regular basis to 'ndian
electronics and computer software e$porters.
The information is packaged through "eminars, <orkshops and Eeep Tread
Highway (ib, "tandard Highway (ib, Heavy Euty Highway (ib, Highway (ib,
-$tra Heavy Euty )ug, All Terrain Highway Traction, -$tra Eurable )ug, ('%+
)K5 F6( H-AC= EKT= 6.J6FF K"-, H'5H<A= ('%, &A""-.5-( %'A"
T=(-", (-A( FA(M T=(-", FA(M "-(C'/- ('%, FA%('/ %-)T-E
(AE'A) &A""-.5-( T=(-", MKE A.E ".6< T=(-".
<e provide services such as F
-"/ F =6K( C'TA) )'.D T6 TH- '.F6(MAT'6. T-/H.6)65= A.E
-)-/T(6.'/" '.EK"T(= '. '.E'A.
-lectronics and /omputer "oftware -$port &romotion /ouncil -"/#+an
autonomous organi*ation under the Ministry of 'nformation Technology,
5overnment of 'ndia is the nodal agency to promote the -lectronics and
/omputer "oftware trade with 'ndia. 't has a membership of 8L?? companies
divided into the following product groups F+ /onsumer -lectronics and toys of
all kinds, -lectronic /omponents, /omputer Hardware and &eripherals,
Telecommunication -3uipment, -lectronic 'nstruments, Medical and other
'ndustrial -lectronics, /omputer "oftware, 'nternet (elated "ervices.
&ractically all ma,or players in the 'ndian -lectronics e$port arena are
members of -"/. The services provided by -"/ include. +
Eevelopment of e$port and e$ploration of possibilities of strategic tie ups,
contract manufacturing and other tie ups.
Market research studies in ma,or overseas markets on a regular basis to
e$plore foreign markets and identify items of e$port potential.
A constant stream of upgraded information on international marketing trends
and products specifications is made available, on a regular basis to 'ndian
electronics and computer software e$porters.
The information is packaged through "eminars, <orkshops and&ublications.
-"/ participates in practically all ma,or electronic e$hibitions in the world to
help 'ndian electronics and computer software e$porters meet potential
importers.
6rganises buyersJsellers meets, market surveys and sales study missions in
overseas markets. <e are one of the leading manufacturers of automotive
Tyres and Tubes in 'ndia. <e are part of %.D. %irla 5roup of companies, one
of the biggest business houses in 'ndia, having set+up of a very modern plant
at %alasore and 6rissa, in technical collaboration with &irelli )td., K.D. The
plant has an installed capacity of 8 million Tyres : Tubes per annum.
%irla Tyres became one of the first tyre manufacturers in the country to be
awarded the '"6 @??8 certificates. 6ur tyres are approved by E6T Eept. of
Transportation, K"A# and in+metro, %ra*il.
Consumer Buying Behaviour
/onsumer buying behavior is influenced by the culture and subculture. Habits,
likes and dislikes of the people belonging to a particular culture or subculture
can affect the marketing efforts of a firm to a great e$tent. The social class to
which the individual belongs tells about the type of products the individual
prefers. 6ther factors that influence the buying behavior are social factors like
reference group and family, personal factors like the age, life cycle and
occupation, and psychological factors like motivation, perception and attitudes
of the customers.
%uying roles and buying decision constitute consumer0s decision+making
behavior. A customer can adapt various buying roles like initiator, influencer,
decider, buyer, preparer, maintainer and disposer in purchasing and using the
products. %uying behavior helps marketers learn the intensity and degree of
involvement of customers in purchasing the products. /ustomer buying
behavior is broadly classified into three types. -$tensive problem solving
buying behavior is e$hibited when a customer buys high involvement,
e$pensive and less fre3uently purchased products. /onsumers are involved
in routine problem solving decision+making process, when they purchase
routinely purchased, low cost products. Cariety seeking behavior is seen
when customers purchase low+involvement products.
/ustomers usually go through five stages in arriving at a purchase decision,
though it might not be so in all the cases. 'n the first stage, the customer
identifies an unsatisfied need in him. 'n the second stage, customers collect
the information about the product and available brands through personal
sources, commercial sources, public sources or e$periential sources. 'n the
third stage, the customers evaluate all the alternatives with the help of
available information. 'n the fourth stage, the customer makes a purchase
decision. And finally in the fifth stage, he e$periences post purchase
satisfaction or dissatisfaction.
&ost purchase usage and disposal of the product is also of e3ual importance
to the marketer, as it can save cost and time of producing as well as help in
protecting the environmental e3uilibrium.
.actor$ in!luencing t"e e"aCiour o! u%er$.
/onsumer behaviour is affected by many uncontrollable factors. Iust think,
what influences you before you buy a product or serviceT =our friends, your
upbringing, your culture, the media, a role model or influences from certain
groupsT
/ulture is one factor that influences behaviour. "imply culture is defined as
our attitudes and beliefs. %ut how are these attitudes and beliefs developedT
As an individual growing up, a child is influenced by their parents, brothers,
sister and other family member who may teach them what is wrong or right.
They learn about their religion and culture, which helps them develop these
opinions, attitudes and beliefs A'6#. These factors will influence their
purchase behaviour however other factors like groups of friends, or people
they look up to may influence their choices of purchasing a particular product
or service. (eference groups are particular groups of people some people
may look up towards to that have an impact on consumer behaviour. "o they
can be simply a band like the "pice 5irls or your immediate family members.
6pinion leaders are those people that you look up to because your respect
their views and ,udgments and these views may influence consumer
decisions. "o it maybe a friend who works with the 'T trade who may
influence your decision on what computer to buy. The economical
environment also has an impact on consumer behaviourA do consumers have
a secure ,ob and a regular income to spend on goodsT Marketing and
advertising obviously influence consumers in trying to evoke them to purchase
a particular product or service.
&eople0s social status will also impact their behaviour. <hat is their role within
societyT Are they ActorsT EoctorsT 6ffice workerT And mothers and fathers
alsoT /learly being parents affects your buying habits depending on the age
of the children, the type of ,ob may mean you need to purchase formal
clothesA the income which is earned has an impact. The lifestyle of someone
who earns U9;???? would clearly be different from someone who earns
U9;???. Also characters have an influence on buying decision. <hether the
person is e$trovert out going and spends on entertainment# or introvert
keeps to themselves and purchases via online or mail order# again has an
impact on the types of purchases made.
T%pe$ o! u%ing e"aCiour(
There are four typical types of buying behaviour based on the type of products
that intends to be purchased. /omple$ buying behaviour is where the
individual purchases a high value brand and seeks a lot of information before
the purchase is made. Habitual buying behaviour is where the individual buys
a product out of habit e.g. a daily newspaper, sugar or salt. Cariety seeking
buying behaviour is where the individual likes to shop around and e$periment
with different products. "o an individual may shop around for different
breakfast cereals because heJshe wants variety in the morningsV Eissonance
reducing buying behaviour is when buyer are highly involved with the
purchase of the product, because the purchase is e$pensive or infre3uent.
There is little difference between e$isting brands an e$ample would be buying
a diamond ring, there is perceived little difference between e$isting diamond
brand manufacturers.
;o# do cu$tomer$ u%G
(esearch suggests that customers go through a five+stage decision+making
process in any purchase. This is summari*ed in the diagram belowF
This model is important for anyone making marketing decisions. 't forces the
marketer to consider the whole buying process rather than ,ust the purchase
decision when it may be too late for a business to influence the choiceV#
The model implies that customers pass through all stages in every purchase.
However, in more routine purchases, customers often skip or reverse some of
the stages.
The buying process starts with need recognition. At this stage, the buyer
recogni*es a problem or need e.g. ' am hungry, we need a new sofa, ' have
a headache# or responds to a marketing stimulus e.g. you pass "tarbucks
and are attracted by the aroma of coffee and chocolate muffins#.
An 1aroused2 customer then needs to decide how much information if any# is
re3uired. 'f the need is strong and there is a product or service that meets the
need close to hand, then a purchase decision is likely to be made there and
then. 'f not, then the process of information search begins.
A customer can obtain information from several sourcesF
&ersonal sourcesF family, friends, neighbors etc
/ommercial sourcesF advertisingA salespeopleA retailersA dealersA
packagingA point+of+sale displays
&ublic sourcesF newspapers, radio, television, consumer organi*ationsA
specialist maga*ines
-$periential sourcesF handling, e$amining, using the product
The usefulness and influence of these sources of information will vary by
product and by customer. (esearch suggests that customer0s value and
respect personal sources more than commercial sources the influence of
1word of mouth2#. The challenge for the marketing team is to identify which
information sources are most influential in their target markets. 'n the
evaluation stage, the customer must choose between the alternative brands,
products
Po$t,purc"a$e eCaluation , /ognitiCe Di$$onance
The final stage is the post+purchase evaluation of the decision. 't is common
for customers to e$perience concerns after making a purchase decision. This
arises from a concept that is known as 1cognitive dissonance2. The customer,
having bought a product, may feel that an alternative would have been
preferable. 'n these circumstances that customer will not repurchase
immediately, but is likely to switch brands ne$t time.
To manage the post+purchase stage, it is the ,ob of the marketing team to
persuade the potential customer that the product will satisfy his or her needs.
Then after having made a purchase, the customer should be encouraged that
he or she has made the right decision.
Indian con$umer pro!ile
'ndian consumers are knowledgeable.
They are tech savvy.
'ndian consumers are literate.
Most of the 'ndian are middle class.
"tandard of living improved.
(ational and think in a linear manner.
They can e$plain their thought and behaviour.
Think in words.
@( RESEAR/; MET;ODO2OG6
@(-Title o! t"e $tud%& %rand and 'mage
@() Duration o! t"e $tud%&
@(@ OjectiCe o! t"e Stud%2%
"uch a study is part of my curriculum to complete management "tudies, '
have to complete this part also. "o while taking part in the practical e$posure
by ,oining %'()A Tyres )imited for si$ weeks training. ' am fulfilling the
ob,ectives of my curriculum.
Euring this practical e$posure of "i$ <eeks. ' have collected some
important information for about# %'()A Tyers ltd. at Mu*affarpur. This is
important of management. This increase penetrability in the market. 'n any
marketing ,ob this forms one of the important tools and therefore to know the
utility of such a tool is definitely one of the important aims of this study.
The main ob,ective of study is to present conclusion and necessary
suggestions regarding consumer awareness relating to %'()A Tyres.
The purpose of the study is to e$plore the market of %'()A Tyres )td.
and betterment of its "ale.
The ob,ective of study is to describe the uni3ue characteristics of
%'()A Tyres in /omparison to others.
To collect the information and their attitude from Tyres customers.
To know the awareness level of customers of %'()A Tyres specially.
To collect their ideas about future purchasing of %'()A Tyres.
The ob,ective of the study is to develop sound inter personal relation to
get ma$imum output both customer and producer of %'()A Tyres.
To know the latest grievance of /ustomers.
@(D Scope o! t"e Stud%
The scope of marketing research can be pointed out by a single word,
"/onsumer &reference". 't can be termed as the balance wheel as the
marketing system which harmonies the study and demand factors.
Marketing survey has wide scope and covers all aspects of marketing.
%roadly its scope can be classified in the following categories F+
't is concerned with product of %'()A Tyres.
't is concerned with "ales and Eistribution of %'()A Tyres.
(esearch on &romotional &olicies of %'()A Tyres
(esearch on pricing of %'()A Tyres.
%usiness -conomics (esearch of %'()A Tyres
't is concerned with %uying behaviour of %'()A Tyres.
)ast but not the least %rand 'mage of %'()A in market
@(H Met"odolog% o! t"e Stud%
Euring the entire study, methods were followed which were found to be most
important F+
i? Per$onal Di$cu$$ion &,
A lot of information on the sub,ect, which were well known to the
different departments and branches of the company, were prevalent.
Academic went to these depts. And branches together, these
information from their respective heads.
ii? Documentar% O$erCation$ &,
"econdary sources like books, ,ournals published and unpublished
materials from different departments of the company were consulted.
iii? .ield O$erCation &,
Euring the training period ' visited Mu*affarpur market being sent by
%'()A Tyres )td. Mu*affarpur to observe how the marketing operations
were being performed there.
The marketing strategies and operations are closely observed for all these
information ' visited retailers dealers and as well as consumers to assess the
present market situation of the product of %'()A T=(-" )TE.
@(I2imitation o! t"e Stud%
'n "ummer &ro,ect this study has some limitations when ' ,oined the company
that time EM was too much busy with his own assignments as it was the
period where market was witnessing a lot dynamic changes like F+ i#
Knusual price increase like L+8?> in last 7 months.
ii# All of a sudden under load restriction was imposed by the 5ovt. of
%ihar e.g. 5olden /ard which was a govt. authori*ed taken for
overload# was withdrawn for transporters.
Knder these circumstances or critical situations ' face difficulties which may
affect my report directly or indirectly.
D( .A/TS AND .INDING
Findings
8fter ta%in# the feedbac% of more than 1)) customers D analy$in# +131 tires the
study reeals that customers are fond of different brands in different areas. Li%e, in
Purani chhani area almost 1)A of customers prefer BI*L8 tires :especially BT,,9;,
in hanuman areas customers prefer Birla tyres, where in Transport Ea#ar people
prefer FK D 8P4LL4. Eot only different choices but also hain# different
e&perience on different brands. It is found that many customers prefer FKGs
#uaranteed tyres such as HFBT T*8K ,9I and economy class rib tyre H6IK*8ET
T*85K KIEJI for its mila#e D reliability but it is also true that many other brands
such as HFBT =ILB!I, HFBT 85BI, HFBT !(PB* L(JI do not hae a stron# place in
customers mind. The study shows that FKGs stron# contender is 5B8T whoGs "uality
was appreciated by many. 5B8TGs H?= /0I D H'5L !(PB*I are ery much
preferred. In #uaranteed tyres 8P4LL4Gs H?=/0I is the main contender of FK.
Incase of normal loaded truc%s customers mostly rely on 5B8T but in oer load
8P4LL4 D FK are reliable. 5ertainly =*? has not a #ood reputation at all. 8lso for
L(J D !emi Lu# se#ment 5hinese tyres such as CBLL4 !B8 D 5*4!! are also
#rabbin# a stron# foothold in the mar%et.
1. Birla is the mar%et leader followed by 8P4LL4.
+. 6IK*8ET T*85K KIEJ of FK is most usedKpreferred tyre oerall.
,. In economy se#ment FK has !tron# hold but premium se#ment is dominated
by 5B8T.
-. FK Tyre is hain# ed#e brea%in# problem
<e are manufacturers and e$porters of Automotive Tyres, Tubes : Flaps.
Carious types of tyres available is given here F
, out of which ; countries, we are market leaders
5( DATA ANA26SIS AND INTERPRETATION
Eue to rapid changes in Technology, /ompetitor and /onsumer preferences
a company can not to stick solely with its e$isting products and services.
/ustomers want the new and improved product that comes about competitor.
A company may obtain new product development in companyBs own research
and development. To serve this purpose "%'()A Tyres" has (esearch and
development department which develops new products as per the demand of
the market. To improvise this products or services they collects information
from the research person about their competitors products.
%'()A Tyres is the largest tyre manufacturing company in 'ndia. 't provides
good tyres to their customers.
8. <hich %rand of Tyres you use in )ug &attern T
Company $ame $o. o/ *espondents
%'()A N?
M(F ;?
I.D. 7;
/eat 9;
%irla 9?
6thers 8?
Brand o! T%re$ %ou u$e in 2ug Pattern
9@>
9;>
8L>
87>
8?>
;>
Apollo M(F I.D. /eat %irla 6thers
9. <hich %rand you use in ('% &attern T
Company $ame $o. o/ *espondents
%'()A N?
M(F ;?
I.D. 7;
/eat 9;
%irla 9?
6thers 8?
Brand o! T%re$ %ou u$e in Ri Pattern
9@>
9;>
8L>
87>
8?>
;>
Apollo M(F I.D. /eat %irla 6thers
7. 'n case of %'()A, rank the following T
Company $ame *an3ing 4ercentage
Suality 8 ;9>
Mileage 9 9;>
(etred ability 7 8?>
/laim "ettlement ! L>
&rice ; ;>
!.'n case of other %rand what is the reason for choosing other brand T
In ca$e o! ot"er Brand #"at i$ t"e rea$on !or
c"oo$ing ot"er rand
79>
9O>
97>
8L>
&rice "ensitivity
Mileage
"ervice after sale#
/redit
*eason $o. o/ *espondents
&rice "ensitivity N;
Mileage ;;
"ervice after sale# !;
/redit 7;
;.Have you heard 9 days "/laim "amadhan" by %'()A T
O;>
9;>
"eard ) da%$ 8/laim Samad"an8 % Apollo
=es
.o
$o. o/ *espondents
yes 8;?
.o ;?
N.=our &urchase on F
No( o! Re$pondent$
/ash ;?
/redit ;?
%oth 8??
6our Purc"a$e on
9;>
9;>
;?>
/ash
/redit
%oth
O.Eoes /ompanyBs Eealer help in choosing the %rand as per your
re3uirement T
$o. o/ *espondents
=es ;?
.o 8??
%oth ;?
/ompan%F$ Dealer "elp in c"oo$ing t"e Brand
9;>
;?>
9;>
=es
.o
%oth
L.Following table shows Market share of different company in Mu*affarpur.
/ompan% Name Sale$ T%re$ >
%'()A 8?! ;9>
M(F ;? 9;>
I.D. 9? 8?>
/eat 8N L>
%irla 8? ;>
Total )** -**>
Mar'et $"are o! di!!erent compan% in Mu9a!!arpur
;9>
8?>
9;>
;>
L>
Apollo I.D. M(F %irla /eat
6.SWOT Analysis
STRENGT;
Heavy range of products
%rand awareness
%est promotion by display.
Advertisement.
-ffective margin for delaers.
%rand image of radial tyres
1EA0NESS
)ack of co+ordination of the
demand put forth by dealers and
the supply of appropriate tyres
from the plant.
The offerings given by the
company are not enough for the
business partners to make the
market operating rates
competitive
The supply of truck radial tyres is
not in proportion to the demand
OPPORT5NITIES
)ot of scope for grabbing
chunk of the market share in
radial tyres in most of the
towns coming under the
depo..
<ith ade3uate and prompt
advertisement and lucrative
offers sale of farm tyres can
be enhanced or doubled.
T;REATS
-ntry of chinese tyres in the
region has resulted in
awareness for the truck
radial tyres and calls for
immediate improvement in
supply chain.
'nade3uacy of supply may
result into brand changes by
the consumers as the
competitors are very
aggressive
B(/onclu$ion
After conducting si$ weeks survey at Mu*affarpur ' have reached these
conclusion.
%'()A tyre is the market leader in the )/C:"/C segment followed by
M(F, I.D., %irls, /eat.
%'()A Tyres brand PT+O and Amar are market leader at Mu*affarpur
Krban and (ural Area.
PT+O is )ug tyres and Amar ('% tyres, Most of the customers are
satisfied with the performance of both tyres.
Appo$ O?> customers have positive and 7?> customers have
negative attitude in support of preference of %'()A tyre at Mu*affarpur.
/ustomerBs awareness level is better at Mu*affarpur area.
%'()A tyres is the first tyre company which has launched new scheme
to solve the claim within 9 days.
Most of the customers are unsatisfied with this scheme. %ecause
dealers do not provide them this type of facility at their disposal.
A(( Recommendation and $ugge$tion
The suggestions from the consumers to the tyre company are following.
"ome consumer are unsatisfied with the price because competitors
product price are less than %'()A, "o company should pay attention in
their mind on price.
/ompany should provide more mileage of tyres because overloading
has been imposed by the government.
/ompany should provide credit facility because customer demands this
type of facility.
The problem of %'()A consumers are lack of ade3uate promotional
schemes. Eealers donBt provide ade3uate information in the support of
the %'()A brands. They see their margin of profit alone.
"ome schemes should be provided by company. 't is good techni3ue
for sales promotions.
/ompany should give special attention after sales service of their
customers.
9. APPENDIJ
5uestionnaire
8# .ame of respondentF ......................................................................
9# Address F ..............................................................................................
..............................................................................................................
7# /ontact .o. F .......................................................................................
!# How many vehicle you have )/CJ"/C# T
a# 8 b# 9 c# 7
d# ! e# above !
;# <hich %rand of tyres you use in )ug &attern T
a# %'()A b# M(F c# I.D.
d# /eat e# %irla f# 6thers
N# <hich %rand you use in (ib &attern T
a# %'()A b# M(F c# I.D.
d# /eat e# %irla
O# 'n case of %'()A, rank the following according to priority F+
a# Mileage ............................
b# &rice ............................
c# Suality ............................
d# (etread ability .........................
e# /laim "ettlement .....................
L# 'n case other brand what is the co region for choosing other brand
a# ................................... b# ......................................
c# ....................................... d# .......................................
@# Have you heard 9 days "/laim "ettlement" by %'()A.
a# =es b# .o
8?# =our &urchase on F
a# /ash b# /redit c# %oth
88# Eoes /ompanyBs Eealer help in choosing the %rand as per your
re3uirementT
a# =es b# .o
89# 'n case of not using %'()A %rand reason for it.
a#
b#
c#
d#

-*( BIB2IOGRAP;6
Marketing Management + Dotler &hilip
"tatistical 'nvestigation + 5upta %...
Monitoring the competition + )eonard. M. Fuld
/onsumer behavior and action + Assel Henry
Maga*ines and (eports
%usiness <orld
%usiness 'ndia
Advertising Marketing
www.%'()Atyres.com