AN

INDUSTRIAL PROJECT REPORT AUSTIN ENGINEEIRNG COMPANY LIMITED

PATLA, TA.BHESAN, VIA RANPUR (SARATH), POST HADMATIYA-362 030, DIST.JANAGADH. (INDIA) E-MAIL :info@aecbearings.com PHONES: (91285)2660144,2660069 FAX: (91285)2661505 VISIT at http://www.aec bearings.com

PREPARED BY : STANDARD : ROLL NO : ENROLMENT NO.: ACADEMIC YEAR: GUIDED BY :

PANSERIYA HITEN G. MBA sem II 032 107230592055 2010-2011 PROF. KIRAN MUNGRA

INSTITUTE
K.N.V. INSTITUTE OF BUSINESSMANAGEMENT K.N.V CAMPUS, KALAVAD ROAD, METODA RAJKOT 360 021

DECLARATION.

I, Hiten panseriya student of MBA (Semester II) of Batch 2010-2011 studying at KNV INSTITUTE OF BUSINESS MANAGEMENT, Rajkot, declare that the project work entitled, market analysis on product mix of Austin Engineering Company Limited was carried on by me on partial fulfillment of my MBA programmed under Gujarat Technological University.

This project was undertaken as a part of academic curriculum according to university rules and norms and it has not commercial interest and motive. It is my original work and is not submitted to any other organization for any other purpose.

Date:Place:- Rajkot. Hiten Panseriya. MBA (Sem II)

CERTIFICATE

Sr.

Particulars
Executive Summary Introduction (a) Overview of Industry (b) Company Details (c) Competitors details (d) Regulatory Environment details Organisational Study a) Marketing Department study b) Operations Department Study c) Financial Department Study d) Human Resource Department Study Objective of Research Review of Literature Statement of the Problem Research Methodology Limitation of the Study Data Analysis & Interpretation Findings Recommendations/Suggestions Conclusion Appendixes : (1) List of Graphs (2) List of Tables (3) Glossary of Terms Bibliography

Page

1 2

4 5 6 7 8 9 10 11 12 13

14

ACKNOWLEDGEMENT I express my sincere gratitude to my industry guide Mr. Amit Joshi, Austin Engineering Company Ltd (AECL), for his able guidance, continuous support and co-operation throughout my project, without which the present work would not have been possible. I would also like to thank the entire team of Austin Engineering Company Ltd (AECL), for the constant support and help in the successful completion of my project. Also, I am thankful to my faculty guide Ms. Kiran Mungra of my institute, for her continued guidance and invaluable encouragement.

Hiten Panseriya

PREFACE

As a new paradigm based on proper integration of formal teaching and actual practice, this Summer Training has been introduced under the Degree of Master of Business Administration (M.B.A) to get a feel of actual Business Environment. To bridge the gap between theory & practice and to cultivate proper temperament and generate much needed morale i.e. to help the students to identify their strong and week points in the following and appreciating various organizational activities. So that appropriate measures can be taken at an earliest time. I undertook eight weeks training at Austin Engineering Company Limited. This report presents the workings, findings and recommendations from the study of Production mix at Austin Engineering Company Limited. It gives the better understanding of the market position of Austin Engineering Company Limited. Finally I shall consider my hard work worthwhile, if this endeavor is able to satisfy all those concerned and proves useful to anyone or for any further study in future.

Executive summary
The project is about of production mix AUSTION ENGINIRING COMPANY at Junagagh

Project in MBA curriculum is an opportunity given to management students where they can get insight into the practical aspects of the day to day working in corporate sector. It imparts a real time environment to the theoretical knowledge that the student acquires in the business school.

The project was undertaken to make a study on the various aspects of the production mix. The Project highlights the aims and objectives of the project report. It also explains the importance of marketing analysis. It gives the theoretical aspects and some practical aspects. The Project covers the production management includes sources, deposit, loans & investment & also production mix, pricing, promotion, branding, paceging, market segmantation, and distribution includes Marketing & production

Marketing information adopted for getting the data is empirical in nature and therefore release in the companys annual report and marketing information has been used.

Introduction to project report

WHY: To measure these four parameters of company. We know that companys past, present, future

WHOM: The topic selection was done by the Finance Department. Finance department of the company take decision for companys more profit from this analysis they idea about profit of the company it is goes up or down from last year and why? So Finance department has give me this topic for analysis.

WHERE: The Analysis of Companys Marketing, production, promotion, other analysis at Austin Engineering Company Limited.

WHEN: The time period of this research is 1 June, 2011 to 15 July, 2011. Using the data of last three years.

HOW: The Market executive, production mix, market research by using Last Three information and other project of the Company.

Year

Objectives of project report

The main objective of this report is to know the practical reality that exists in an organization.

Management is a subject which is not possible without practicality and so in this report it is tried to convert all theoretical aspects which we have got in past one year.

To know about the whole system of companys activity and progress

To go through a deep understanding about the various aspects of Market analysis, production, packaging, of AUSTION ENGENERING COMPANY

General Information

1. INTRODUCATION

As per the syllabus, there is a industrial training for student of M.B.A. So. I have taken a training at the Austin Engineering Company Limited establish at patla. The registered office of this unit is at 101, GIDC, estate junagadh -362001. the registered trade mark of this company is ace the main product of this unit is bearings. Austin manufactures all kinds of bearing.

The Austin Engineering Company Limited was started as a partnership and now company limited, so it progress is very good Austin is most successful unit in Gujarat as well as in India. Company got certificate that is ISO 9001 : 2000.

This international organization gives such award to make standardizes for companys production material and product.

2.Name and Address of company

HEAD OFFICE 101, G.I.D.C. Estate, Vadal Road, Junagadh 362 003 REGISTERED OFFICE 101, G.I.D.C. Estate, Vadal Road, Junagadh 362 003 DIRECTORS Shri N.C. Vadgama Shri J.R. Bhogayta Shri R.M. Bamaniya Shri S.M. Thanki AUDITORS Shri Dhirubhai & Menpara Associates, Chartered Accountants Junagadh. BANKERS Bank of Baroda Azad Chowk, Junagadh-362001 Chairman & Executive Director Executive Director Joint Managing Director Managing Director

3. Bio-Data of Company
NAME: Austin Engineering Co. Ltd.

PLANT:

ADDRESS: AUSTIN ENGINEERINGCOMPANY LTD. PATALA - JUNAGADH

BANKERS :

Bank of Baroda - Junagadh.

PRODUCT : Bearings

EMPLOYEE :
655

MANUFACTURING CAPACITY
10 MM ID TO 12000 ID

MANUFACTURING RANGE
More than 4000 bearing

MACHINERY AVAILABLE :
More than 220

Website :
www.aec-bearings.com

E-mail :

Info@aecbearings.com

4.Current Status of the Company

At present the Austin engineering com. Ltd. has become a wide and popular unit in the market. The trademark of the company is '' AEC'' in the initial years of the company was produced only 40 varieties of bearings and now it produce 4000 to 4500 bearings varietie

Therefore we can say that the company has large growth and development in the field of bearings due to its high quality and increasing demand. Thus the firm its turn over is increasing year by year.

At present these company investment four cores. So, the size of the AUSTIN Engineering company is large scale.

5. Future plan of company

Vision We strongly believe that one should Always improve continuously. Utilize resources in a most efficient way. Be versatile to adapt changes. Serve society in a most efficient manner.

Mission We strongly believe that one should Always improve continuously. Utilize resources in a most efficient way. Be versatile to adapt changes. Serve society in a most efficient manner.

Increasing manufacturing capability up to 1800 mm. Dim Product Profile

6.PRODUCT RANGE

Single Source for Bearings

We manufacture over 4000 size/types of bearings used in several industrial segments and are constantly adding more items to our current wide range of all your rolling element bearing needs. Our engineering is backed by a strong R&D, quality assurance, testing and gauging team and our customers have seen the value of this investment in every single bearing we manufacture.

Our product range includes:

6.1 Ball Bearings Ball bearings use balls instead of cylinders. Ball bearings can support lightly-loaded bearings. Precision balls are typically cheaper to produce than shapes such as rollers; combined with high-volume use, ball bearings are often much cheaper than other bearings of similar dimensions. Ball bearings may have high point loads, limiting total load capacity compared to other bearings of similar dimensions.

6.2 Spherical Roller Bearing Spherical roller bearings use rollers that are thicker in the middle and thinner at the end. However, spherical rollers are difficult to produce and thus expensive, and the bearings have higher friction than a comparable ball bearing since different parts of the spherical rollers run at different speeds on the rounded race and thus there are opposing forces along the bearing.

6.3 Cylindrical Roller Bearings Cylindrical Roller Bearings are similar to the flexible type. Cylindrical Roller Bearings are used where temperature in the surrounding area is less than 80C.

6.4 Needle roller bearings Needle roller bearings use very long and thin cylinders. The rollers are thin, the outside diameter of the bearing is only slightly larger than the hole in the middle. .

6.5 Tapered roller bearings Taper roller bearings are used, for example, as the wheel bearings of most cars, trucks, buses, and so on. The downsides to this bearing are that due to manufacturing complexities, tapered roller bearings are usually more expensive than ball bearings.

6.6 Flexible roller bearings Flexible Roller Bearings are used where there is a heavy shock load & the surrounding temperature is more than 80C

7. Facilities provided to the Employee

Provident found facility 12%

Yearly bonus 20%

30 days leaves per year

Dearness allowance

Medical allowance

Free bus service

Free interest loan

Training in-house

Training at outside for specific employees

Social camp i.e. Blood donation, Eye donation, medical health care in a year

8.Current Status of the Company

They make sure that other industries run smoothly but their own is going has not been too smooth. This is the fate of companies in the bearings industry faces demand slow down, steady capacity build-up, mounting import threat and rising input costs.

With such pressures on earnings, the stock market has, predictably, been harsh to the companies. Top players such as SKF bearings, FAG bearings and NRB bearings are now trading way below their historic highs.

Even the unprecedented stock market boom of 1999-2000 failed to drive the share prices of bearings companies. Considering the slowdown in the automobile sector and the persistent threat of cheaper imports, the outlook for the bearings industry is not positive.

The bearings industry consists of bimetal bearings and antifriction bearings. The anti-friction bearings market can be further classified into two segments - boll and roller bearings. Ball bearings constitute the biggest segment (over 50 percent) in volume terms in the industry.

Ball - bearings account for the bulk of the demand in the market. Higher volumes have attracted more players to this segment.

The bearings industry is characterized by the presence of global majors, such as SKF and FAG, and companies from the unorganized sector on the other. There is other about 19 units in the organized sector, with an installed capacity of about 152 million units. The domestic production accounts for about 70 percent of the demand, the rest filled by imports.

For the bearings producers, volume is the key driver of earnings. Considering that the industry is highly capital - intensive, operating at the minimum economic volume assumes greater significance. A decline in the capacity utilization level would lead to a major negative impact on the operational parameters considering the huge initial capital outlay.

9. CONTRIBUTION OF THE UNIT THE INDUSTRY

AUSTIN ENGINEERING COMPANY LIMITED is most popular in the field of bearings in India because it is very successful unit in India.

Its

rank

4th in India in bearings industry it also contribution in relation to employment. This

company is also helpful in increase national income of the country. It is also helpful in development of backward area announced by government. The company raises the of living of their employees by providing so many benefits to their workers. To includes, I would say the company is on its path to words a bright future contributing for wards the economics betterment of the company

History of company

Austin Engineering

Austin Engineering Company Ltd was established in 1973 by five technocrats with initial investment of 3500 US dollars in Junagadh, G.I.D.C. area with the name of ACCURATE ENGINEERING. Due to repid development and the increase in the demand of the product. It was convert into private company in year 1978 In those days, Ball bearing industry is developed very fast rate therefore to sustain & develop the unit, it converted into public limited by issuing equity share under the name of Austin Engineering Company Ltd and purchase the trade mark aec in the year 1994. AECL has established second unit, on 15thFebruary, 1987, which is located at Patla a village nearly 25 km away from Junagadh.

The Austin Engineering Company Ltd. is one of the leading manufacturers of anti-friction rolling bearings in India. This co. is in this field since last 37 years. The co has developed around 4500 different sizes of bearings.

Past Data 1973 1978 Austin Engineering co Ltd established with partnership firm by four partners namely ACCURATE COM LTD. The capital investment 3500 US Dollar. In 27th July partnership firm converted into PVT. LTD. Company because making a good performance of the Accurate Private LTD. Company. It converted into corporate body and become a PVT. LTD. Company. The main 1985 object of the manufacture by all kinds of the ball bearings. The accurate PVT. LTD. Company becomes Austin engineering public LTD. company and at present it becomes an Austin engineering Company 1986 LTD. New plant started with installation of machineries and testing / measuring equipments imported from the Germany, U.K. and the United States of America. Started exporting bearings to developed nations such as the U.S.A., 1999 2000 2002 2006 the U.K., Italy, and other E.U. countries. The Austin engineering company LTD. Awarded ISO 9001 certification from PUV Rahineland Establishment of AEC Europe S.r.l. in Milan (Italy) and started working with globally well known bearing manufacturers. The Austin engineering company LTD. Developed stains steel bearings. Awarded ISO / TS 16949 : 2002 by TV Rheinland

History of companys organization development

In 1978, a new landmark appeared is the history of Indian Bearing Industry keeping the specific pressing, needs of the automotive industry in mind a team of five top and qualified engineers decided to produce high quality of bearings. The company was incorporated as private limited company on 27th July, 1978 with the main object of manufacturing of all kinds of rolling bearings. The company is located at GIDC INDUSTRIAL EASTATE At Junagadh is the state of Gujarat. An industrially backward area to receive various incentives.

The company was admitted as a partner into partnership firm M/S. Accurate engineering company from 1st July, 1984 and the entire undertaking of the firm manufacturing bearings was allotted to the company with all the assets and liabilities upon a dissolution of the said firm is the settlement of its right, little and interest as partner. The company has also made agreement with M/S. accurate engineers for the non-exclusive use of well-known and popular trademark AEC for the bearings manufacturing by the company.

Organization chart

2.SIZE OF THE UNIT & FORM OF ORG.

SIZE:
to the public. As per the definition given by the Government, There are three types of the Size Viz, small Scale, Medium scale & Large Scale.

Industries with investment more than 1 crore are included under the large-scale industries. Accordingly Austin is a large-scale industry commencing with authorized capital of Rs. 4 Crores.

FORM OF ORGANIZATION:

Every business has different form of organization depending on capital investment & registration. Austin is a PUBLIC LIMITED COMPANY since it is incorporated under the Indian companies. Act, 1956 issuing shares

3. ORGANISATION STRUCTURE

There are many types of Organization Structure. (1) Line Organization (2) Staff organization (3) Line and staff organization (4) Functional organization etc.

It depends upon the necessary of the Firm which types of organization should be there is firm.

From the Austin Company ltd. has line and staff organization structure in types of organization structure there is in and individual specialist who is the head of type of the departments and this line officers advice to the employees. The special aspect of this type of organization structure is that staff member are concentrators their attention in research and planning aspect of business problems.

Types of Organization Structure

LINE ORGANIZATION

STAFF ORGANIZATION

LINE & STAFF ORGANIZATION

FUNCTIONAL ORGANIZATION

DIVISIONAL ORGANIZATION
9

As far as AEC Co. Ltd. Is concern it has adopted Line & Staff organization Structure. In this type of structure line of authority & responsibility moves downward. Here individual & a group of specialists advise the line officer for the special aspects. It would be clear by following organization

Marketing Activities and Function

1.INTRODUCTION
Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the customers point of view. Business success is not determined by the producer but by the customer. Today, companies find themselves competing in a race where the road signs and rules keep changing, where there is no finish line, no permanent win. They simply must keep racing, hopefully in a direction where the public want them to go.

Marketing management, today, is a subject of growing interest in all types of organizations within and outside the business sector in all kinds of circumstances. It is the conscious effort to achieve desired exchange outcomes with the target markets. The marketers basic skill lies in influencing the level, timing and composition of demand for a product, service, organization, place person or idea.

2.PRODUCT MIX

Product mix plays an important role while determining the pricing policy of any organization. It can be defined as the set of products offered for sale by a company. It shows the mix of different characteristics of the products of the company, means the total number of products are included on product mix is a list of all product offered by a company.

Any companys product mix has a certain width, length, depth and consistency. Width Length Depth : - It refers to how many different product lines the company carries : - It refers to total number of items in the mix. : - it refers to how many variants are offered in each line of product. : - It refers to how closely relate the various product lines to each other.

Consistency

In Austin, the product mix can be explained by a chart shown below.

From above chart, we that is can see Austin having

only one product line i.e. bearing which also can be said the width of the product mix. The length of the product mix is having six different types of bearings and under that they have various sizes under each type. Thus, total items they are producing are about 3000 different bearings in size and type. When we talk about consistency, all the products are related in channels of distribution, consumer needs and other factors because f a common product line.

3.MARKET SEGMENTATION
Market consists of buyers, and buyers differ in one or more respects. They may differ in their wants, purchasing power, geographical locations, buying attitudes and buying practices. Any of these variables can be used to segment a market.

It is a process of dividing the total market for goods and services into small groups, such that the members of each group are similar with respect to factors that influence demand. It is a strategy of divide and conquer i.e. dicing market in order to conquer them. Its philosophy is something for everybody within practicable limits. It enables the market to give better attention to the selection of the customer and offer an appropriate marketing mix for each segment for a group of buyers having homogeneous demand.

In Austin, they have selected target market to satisfy the wants of customers. They have divided the target market in different division.

Indian defence department Steel plants and steel rolling mills Textile machinery manufactures Power plants Automotive industries Indian railways Process industries State road transport undertakings throughout India Overseas customer in the USA, the UK. EU nations etc. Replacement market/after market

4.MARKETING DEPATMENT OF ORGANISATION

Marketing of the product is an quite essential factor in modern time without proper marketing the product can not get enough output of sales. To have a wide marketing organization is much important with a view to make more and more sales in product and by that to earn more profit.

Marketing organization is to vital because organization cannot merely satisfied with selling only, but with selling it because their duty to look after their effective factor of production as cost, transportation other important factor.

It is necessary to decide quite properly regarding all this factor which can be done by effective marketing organization.

The organization chart of marketing department of AUSTIN ENGINEERING COMPANY LIMITED is as under:

5. MANUFACTURING PROCESS

1. Raw material purchase 2. Testing of raw material 3. Cutting and parting 4. Turning and finishing 5. Heat Treatment 6. Grinding and Honing 7. Assembling 8. Washing, Clearing and oiling 9. Packing and Forwarding

6.MARKETING RESEARCH
In the long history of the business, management devoted of its attention to managing money, material, machines and men. But today, management has recognized the critical importance of fifth resources, information. Well known companies know that what, where, how, and when of their customers and this is done through paper marketing research. Every firm must organize the flow of marketing through proper marketing research. Every firm must organize the flow of marketing information of its marketing manager. Companies are studying their mangers information need and designing marketing information system to meet these needs. Marketing research is a the systematic design, collection, analysis and reporting if data and findings relevant to a specific marketing situation the company in other words, it is a process of collection, organizing, analyzing and interpreting the public views regarding the product, their demand, their suggestion etc. towards improvement and modification of a product. For a stable and continuous market, market research is a must. There are various methods of marketing research. By appropriate method, companies can do the marketing research. These are as follows: Survey method Observation method Panel method Experiment method Among all these methods, Austin generally uses any of these methods as per requirement. According to marketing research of the co., they think that it is important because it can give firsthand knowledge of the customer and change in pattern of demand. It is also useful in formulation market strategies. Price, brand and package etc. are the areas of marketing research. To collect data, they use multi-media like survey, panel approach, experiment approach, observation etc.

7.PRICING POLICY
Price is the exchange value of product or service, which is expressed in terms of money. It is the only element in marketing mix which produces revenue: the other elements produce costs. Price is also one of the most flexible elements of the marketing mix, in that it can be changed quickly, unlike product features and channel commitments. Decision about pricing means the pricing policy is considered important aspect for success of marketing of any product for any organization. While formulating pricing policy, the following questions should be kept in mind: How should a price be set on a product or service for the first time? How should the price be adopted over time and space to meet varying circumstances and opportunities? When should the company initiate the price change, and how should it respond to a competitors price change? Austin is manufacturing industrial goods. Consumers but are used for making the final product do not directly use bearing. There are different prices for different types and sizes of bearing. The cost of production is also considered while pricing. Moreover, the price depends on other factors like bulk purchasing and the prices are set by the competitors. Thus the pricing policy of Austin is formulated by the following factors. Cost of production Quantity of good purchased Size and type of the product Price of the competitors product.

8. SALES PROMOTION
Sales promotion refers to the promotion activities, which stimulates consumer purchasing like displays, exhibitions, show rooms, demonstrations, free samples, coupons, premiums, contests and many other selling efforts. It is an important instrument in marketing to lubricate the marketing efforts. Today, sales promotion is a necessary and not expense but it is an investment, which can pay rich dividends. Sales promotion is a vital link between advertising and personal selling. It aims at stimulating consumers purchasing at point of sale and at retail channel of distribution, particularly because retailing is highly competitive. In short, by sales promotion all prospective buyers are attracted, urged and even persuaded to buy the product.

Austin has paid attention to sales promotion because of its vital role in increasing sales. It uses sales promotion at consumer level and dealer level. They promote sales by giving gifts to the consumers and dealers like dairies, paper weights, clocks, pens key chain etc.

9. ADVETISING
Nothing except mint can make money without advertising. Advertising is any paid form of non promotion of ideas, goods or services by an identified responsive. It is a form of mass communication and paid by seller who wants to communicate about his product or services to his customers. It is a very important promotional tool in the hands of marketing manager. The adviser or the sponsor wants to persuade and induce the readers, viewers or listeners to take some action and i.e. to buy the advertised products, so that the advertiser has profitable sales. It appears in the recognized media such as T.V., magazines, radio, newspapers, hoarding, posters etc.

Austin is one of the leading companies in manufacturing of bearings and as it has selected O.E.M. (Original Equipment Manufacturer) as largest market, the company does not require advertising its product goods rather than consumer goods. If the company fined the need of advertisement, it advertises the product in print media and by hoarding.

10. PUBLICITY
Publicity has now become important marketing function. The total process of building goodwill towards a business enterprise and securing a bright image of the company is called public relations. It creates a favourable atmosphere for conducting business. There are four groups of public: Customers Shareholders Employees The community

The marketers should have the best possible relations with these groups. Effective marketing communication is not possible without establishing and maintaining mutual understanding between the company and its customers. Publicity works as a lubricant for making the wheels of marketing run smoothly. Austin always accepts the sponsorships or cultural programs, sports organizations and tournaments to make effective publicity. Sometimes it also gives free of charge products to these organizations, which run for the purpose of social services and public welfare.

10.CHANNELS OF DISTRIBUTION

Distribution channel decisions require a special attention as this involves long term commitments to the other firms with whom marketer enters into contracts. The most fundamental factor for channel choice and channel management is the economic criteria i.e. cost and profits. But there are number of other factors such as nature of the products, market trends, competition outlook, pricing policies, typical consumer needs and manufacturer himself who should be considered. There are two types of channel:

Direct Channel

Indirect Channel

Austin is producing bearings and i.e. industrial goods. So in this case, direct channel will be more effective than indirect channel. So the company mostly uses direct channel of distribution and i.e. Manufacturer Consumer

For replacement market, the company uses indirect channel of distribution. For this, they appointed zone wise dealers under whom sub dealers are appointed. This channel is as under: Manufacturer Distributors Dealers Consumers

Production Mix
Product mix refers to the set of items offered for the sale by a particular business house. It represents each & every product lines & products in each line separately. The product mix of Austin consists of 1800 items.

The whole 1800 types of bearings are divided into two main product lines viz,

(1) (2)

Automobile bearings Industrial bearings

This is the broad classification of the bearings on basis of the use to which they put on. If we consider the different industries the Austin produces for textile industries to the machine industries.

Hence it can be said that Austin is having a unique product mix, which only proves profitable for the firm but also assist the country in the development process.

1.1.Product mix
A decision concerning product mix is the major aspect in marketing management. Product mix is the set of all products & items that a particular seller offers for sales. Product mix is also known as product assortment. It includes following four items i.e. length, width, depth & consistency.

1.2.PRODUCT MIX LENGTH

The length of a product mix refers to the total number of items in the mix. The AEC ltd are producing near about 2500 types of bearings products.

1.3.PRODUCT MIX WIDTH

The width of a product mix refers to how many different product lines the company carries. Here in AEC ltd number of product line is only one because it produces only bearings of different types. The product line is one i.e. Ball Bearing. So width of the product mix of AEC ltd is one.

1.4.PRODUCT MIX DEPTH

The depth of a product mix refers to how many variants were offered of each product in the line. AEC ltd has only one product line, which offers four types of products. Needle roller bearing. Spherical roller bearing, cylindrical roller bearing & Tapper roller bearing. In short product mix depth of the products of AEC ltd is four.

1.5.PRODUCT MIX CONSISTANCY

The consistency of the product mix refers to how closely various product lines are related to each other in the end use. E.g. P & G product line are consistent because they are producing consumer goods that goes through the same distribution channel while in Manekchand it is not possible because they are producing consumer goods as well as industrial goods also. Therefore, it needs different distribution channels. Therefore, we can say that in P & G product consistency is there while in Manekchand products there is lack of consistency. In AEC ltd the product is industrial nature. So consistency is there

2. PRICING DECISION
In pricing decision I knew something in the practical business, by which pricing decision is taken? As we know that price denotes value of product terms of money. It is equally sellers and buyers.

Austin Eng. Co. fixed its price at prevailing market rates as it faces full competition from both national as well as international market. Thus it has also got rank in ball bearing industries in India, when I discuss marketing manager of Austin Eng. Co. that should we think that prices is very important in marketing mix. He replied positively, prices are powerful instruments as marketing weapon. Pricing is the big gun, may do a good product to failure. Price reflects purchasing power of currency, it also effect consumer purchasing and sales promotion. Therefore pricing decision plays a very important role in the design of the marketing mix.

3. PROMOTION
We know that there are four ingredients in promotion mix.

1. Advertising 2. Personnel selling 3. Sales promotion

4. Publicity

(1)

Advertising:

Austin company is the leading manufacturing company of bearing and as its has selected OEM as a market segment therefore company need not require to advertise its product for selling in market. But just for information they used as advertisement so, Austin company always prefer press as a media on the basis of nature of products.

(2) Personnel selling:

According to the marketing manager, salesmen must know technical knowledge of product communication skill greater personality knowledge regarding customer and many other things are the good quality of good salesman.

4. CONSUMER BEHAVIOR
We know that consumers behavior is concerned with how, when, why, where, when and from whom they will be buy product.

Consumer behavior may be viewed as orderly process where by the individual intellect with his environment for the purpose of making for the purpose of making marketing decision for the product as services

I have observed that in Austin engineering while his strategies and marketing mix for help them to understand requirement and what should we have to do now. For this decision they always refer to current consumer behavior.

5. PRICING & DISTRIBUTION DECISION

Pricing Decision:
Pricing decision is the most vital decision the marketing mix as it is accounts for the sales revenue. The firm ought to fix that price which not only covers its cost but also generates demand & stood in the competition. Every firm has its own pricing policy. Austin too adopts different pricing policy. The Austin produces bearings of 1800 types. Each product is different so as its price is also different. Hence this PRICE DISCRIMIATION POLICY adopted in which price is disorientated product wise.

While fixing the price the cost involve in addition to product development cost considered.

Distribution Decisions:

The production is centralized while the consumption decentralized this requires a particular channel which enable the consumers to obtain product from the producer.

Distribution channel is such on organized channel consist of various distribution can be direct or indirect Austin sell its of its production sold through the dealers & 10% product is exported.

middlemen. The

40% product directly to the CEM 50%

The dealers collect orders from the consumers & pass the same to the firm they purchase the bearings & sold the same. In the case of report market selling is through the agents.

SHORT ANALISIS OF A.E.C.

9

3.1 Strength 3.2 Weakness 3.3 Opportunities 3.4 Threats

3.1 Strength
The director are well experienced and technically qualified with well succession plan.

The company is this line of business for more than 26 years and enjoys its brand name in the market.

The company has wide market network with established customer base.

The company is a profit making and self performance are improving year after year.

3.2 Weakness
The industry is highly capital intensive and as such operating at the minimum economics volume assumes greater significance. A decline in the capacity utilization would lead a major negative impact on the operational parameters considering the huge initial capital outlay.

The manufactures are facing a threat from the serious parts manufactured who manufacture duplicated parts and sell them in the names of popular brands in the replacement market at a very low price.

Steel and alloy steel are the basic raw-material for the bearings industry and their prices are expected the upward trend in the coming future.

A serious threat is being faced from imports due to decline in duty rates at the same time, domestic manufactures are subject to the increased levels.

Higher inventory holding also lead to increases in direct cost.

3.3 Opportunities
The demand for bearing industry is derived from demand in two key user Segmentsautomotive and industrial sector.

India is one the fastest growing passenger car markets in the world and it is already the second largest two wheeler manufacturer globally. The Indian domestic market will continue to be dominated by small cars.

The Indian economy has shown growth of average 8% or the last few years and is respected to keep this growth trend over the next decade. Your company aims to leverage this opportunity on its financial strength and its market leadership.

3.4 Threats
The counterfeiting of bearings is the biggest threat to the industry since these spurious bearings affect business and brand image.

Spurious bearings are of poor quality and are unsafe and unreliable.

Spurious bearings mainly cater to the replacement market, which is price sensitive.

This company is taking steps to curtail spurious trade by improved packing, creating awareness and other necessary action.

The significant increase in steel prices has resulted in pricing and margin pressure on bearing manufactures.

Dumping by particular in the auto sector is adding to the woes of the industry in India which is already under the slowdown in the domestic economy.

Such dumping affects the replacement market as well as the OEM market.

CONCLUSION
Austin is following no dividend policy since so many years. It does not mean that the company is not able to pay to the employees but it prefers to retain their earnings. Nevertheless, as per my suggestion, the shareholders are the main owners of the company & they must get return of their investment, which they made, in this company. Whatever risk they had taken, they should get proper compensation in terms of dividend.

The company should follow extensive marketing strategies to boost its sales.

As we all know that the financial position of this company is very sound. The sales, gross profit & net profit are rising continuously. The profitability ratios reflect that the company is enough capable to manage perfect finance. However, company has not performed any major social responsibility like constructing any hospital or any kind of charitable shows or other activities for the upliftment of the concerned area.

Besides, we can understand that the dividend decisions are generally taken in any company after evaluating all the determinants of dividend not only the financial capacity. The decision relating to the performance of the social responsibility can also be taken after conformation of the shareholders & it may possible that they do not find it feasible for the future of the company too.

BIBLIOGRAPHY SR. NO. NAME OF THE BOOK 1. PRODUCTION MANAGER 2. MARKETING MANAGEMENT COMPANYS ANNUAL REPORT

AUTHORS PHILLIP KOTLER

WEB RESOURCES (www.aec-bearing.com)