A Project Report by Alka Pareek

7/28/2019 A Project Report by Alka Pareek

1/85

1

A PROJECT REPORT ON

A STUDY ON PRODUCT MIX STRATEGIES OF JK

TYRES

Under kind Supervision of

Dr. Nandini Sharma

By

Alka Pareek

_______________________________________

A project report submitted in partial fulfillment of the requirements for

Bachelors in Business Administration (BBS)

Biyani Group of Colleges

R-4, Sector No 3, Vidyadhar Nagar,

Jaipur -302023, Rajasthan, INDIA
http://www.jkorg.in/


2/85

2

Student declaration

I hereby declare that the project report entitled

A STUDY ON PRODUCT MIX STRATEGIES OF JK TYRES

Submitted in partial fulfillment of the requirements for the degree of

Business of Business AdministrationTo Biyani Group of Colleges, India, is my original work and not submitted for the

award of any other degree, diploma, fellowship, or any other similar title or prizes

Guidance By: Submitted By:

Dr. Nandini Sharma Alka Pareek

Place: Jaipur

Date: May


3/85

3

ACKNOWLEDGEMENT

As a partial fulfillment for the award of the degree of BBA under Biyani Group of

Colleges, a project was to be carried out by all the students during their 3rd

semester. On the course of report preparation, we had to select a particular business

organization. This project, as a part of my training, was a good experience

providing me great insight into the market dynamics of tyre industry, buyer

behavior and the sales & marketing of JK Tyre. This work has helped me in

understanding some of the intricacies and complexities involved in the tyreindustry in particular.

I would like to express my gratitude to all those who gave me the possibility to

complete this project report. I want to thank Biyani Group of Colleges for

providing me the opportunity to conduct this small scale study as a partial

fulfillment of the Bachelor degree in business administration. I have furthermore tothank Dr. Nandini Sharma for her guidance, valuable suggestion, encouragement,

support, co-operation and supervision throughout my studies.

I am thankful as well for the continual support of my family and friends, who have

provided me with important feedback on this thesis and with the encouragement

that I have needed to complete my work. To my parents and brotherthank you

for your positivity and for helping me to bring stress back into perspective.

Regards,

Alka Pareek


4/85

4

PREFACE

It is a great opportunity for me to have the BACHELOR OF BUSINESS

ADMINITRATION (BBA) in BIYANI GROUP OF COLLEGES, JAIPUR. In

the accomplishment of this degree I am submitting a project report on A

STUDY ON PRODUCT MIX STRATEGIES OF JK TYRES. Subject to the

limitation of time efforts and resources every possible attempt has been made to

study the problem deeply. The whole project is measured through the

questionnaire, the data further analyzed and interpreted and the result wasobtained.

The whole project has been divided into 7 chapters.

Introduction

Research Design

Company profile

Theoretical background of the study

Analysis of JK Tyres Product Mix

Analysis & Interpretation of Data

Summary of Findings, Suggestion & Conclusion


5/85

5

EXECUTIVE SUMMARY

Introduction

In todays world of intense competition and rapid dynamism, all the companies

worldwide are tuning their focuses on the customer. Suddenly, the customer had

succeeded in capturing all the attention of the companies towards him, so much so,

that the once famous maxim, customer is the god has become so true and

relevant today. There has been a paradigm shift in the thinking of these

companies and none other than the customer has brought this about.

Earlier there was a sellers market, since goods and services were in short supply

and the sellers use to call the shots. But, ever since the advent of the era of

globalization, there has been total transformation in the way the customers being

perceived. Today, marketers are directing their efforts in retaining the customers

and customers base. Their focus has shifted towards integrating the three elements

people, service and marketing.

The customers importance has assumed imponderable proportions in todays

world, because of the inherent value that the customers command. A customers can

make or break a company. It is the responsibility of every company to see that

all its customers are equally satisfied with them, for one single dissatisfied

customer will tell at least nine others about the dissatisfaction and will spark off a

chain reaction and spell doom for that company. In such scenario, retention of the

existing customers assumes diabolical proportion. Research has thrown light on

some important aspects of customers retention it has been proved empirically that


6/85

6

acquiring new customers can cost five times more than the cost involved in

satisfying and retaining current customers.

In the past, the customers was taken for a ride, as there were not many players in

the fields, not much importance was attached to product safety, quality, service and

product appeal. The attitude of the manufacture was that of caveat emptor.

Thanks to the government policies on liberalization, globalization and privatization

(LPG), the market scenario has changed today. Today, the customer has a host of

defense mechanism like the customers protection laws, regulation of the

government, the powerful hands of the organization, customers courts, switching

to substitute or competitors that offer at competitive prices, etc. The maxim,

caveatemptor has been replaced by caveat venditor.

In the past, after sales service was consider as a cost center, Companies were

lethargic in attending to customers complaints. Availability of trainee service

personal and quality genuine spare parts posed serious problems. However, with

the rising competition, there could not be much product differentiation, as price

and quality were comparable and latest technology was to each and every company

in the field. Since, there could not be much differential a tangible assets, the

companies concentrated on the intangible assets, namely the service factor,

which served as a major differentiator. Today after sales service is an important

aspect of every company, and it is no more considered as a cost center, but

considered as a profit center. Every organization strives hard to retain its existing

customers at any cost since it is five times costly to get a new customers, then to

retain an existing customers. Most of the industries today use of information

technology to best services to their customers.


7/85

7

About Tyre industries in India

Background

The origin of the Indian Tyre Industry dates back to 1926 when Dunlop Rubber

Limited set up the first tyre company in West Bengal. MRF followed suit in 1946.Since then, the Indian tyre industry has grown rapidly.

The Indian tyre industry has been reporting good growth figures, over the past few

years, spurred on by the rise in the automobile industry led by passenger vehicles

and two-wheelers. The Indian tyre industry has emerged as one of the most

competitive markets in the world and with the emergence of new technology, ultra

modern production facilities and availability of raw materials, the sector is poised

to grow further. A recent study states that the Indian tyre production is expected to

reach almost 20 crores units by 2016-17. In the previous financial year, the Indian

tyre industry witnessed a turnover of Rs. 30,000 crores, producing 11.92 crores

tyres, a total tonnage of 14.88 lakh metric tons. Currently India has 40 listed tyre

manufacturing companies, out of which the top 10 account for over 96 percent of

the countrys total tyre production. The tyre export market in India is valued at Rs.

3600 crores. While the tyre industry is largely dominated by the organized sector,

the unorganized sector is predominant with respect to bicycle tyres.

Increase/Decrease in raw material costs

Apart from being capital intensive, the tyre industry is highly raw material

intensive. Any change in the prices of raw materials affects the profitability of tyrecompanies. 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.


8/85

8

Rubberprices have softened in the last four months but tyre makers are not

considering a cut in tyre prices because they are yet to recover from a surge in

prices of raw materials last year. Natural rubber prices have crashed by almost

20% from October last year.

Prices have fallen below Rs 160 this month and moving in the narrow range of Rs

156-157 per kg. This could perhaps be the worst crash in the recent times. The last

time prices dropped below Rs 160 was in May 2010. The plunge in prices

benefitted tyre manufacturers the most with major tyre companies reporting good

results for the quarter ending December 2012. But they are not ready to pass it on

to customers basically for two reasons. First, they are still to recover the rise in

input costs early last year. Second, demand for tyres continues to be subdued

forcing companies to cut production.

Import of tyres

Daily rubber supplies to key spot markets are lower than normal as farmers are

holding back produce."Farmers think speculators in futures market are depressing

prices. They think in coming months prices will recover above 200 rupees (per

kg)," Valy said.

This year, despite importing 23.5 percent more rubber in the first half, tyre makers

are signing new import deals as buying locally is still expensive after farmers held

back supplies hoping prices would rise in the future, industry officials said.

"Tyre makers were actively signing import deals in September. Then the difference

between local and overseas prices widened to over 45 rupees per kg," said George

Valy, president of the Indian Rubber Dealers' Federation.
http://economictimes.indiatimes.com/topic/Rubberhttp://economictimes.indiatimes.com/topic/Rubber


9/85

9

The country's total imports could rise to over 225,000 tonnes in 2012/13, up 5.2

percent on the year, Valy said.

In June 2012, Sheela Thomas, chairman of the state-run Rubber Board, said India's

imports were likely to drop by 27 percent to 150,000 tonnes in 2012/13 on the back

of a rise in local output and lower incentives to import rubber.

But since June the price difference between local and overseas prices has widened,

peaking in September 2012.

Export of Tyres

Five percent of the nearly $100 billion global tyre industry is accounted for by

India. The industry turnover is about Rs.13,500 per annum. The top four

companies include MRF, Apollo, JK and Ceat. Despite the economic slow down

and high input costs last year, the Indian tyre industry saw a growth of 5.3%

(volumes) in 2011-2012. According to rating agency ICRA, industry growth was in

terms of volumes. The revenue growth was definitely aided by the depreciating

rupee and stable rubber prices by the end of the financial year. At the beginning of

2011, the rubber prices were about Rs.240/ kg which came to Rs.185-200/ kg by

the year end.

The trend has been upward with regard to the cost of crude derivatives. There was

a 40% increase in the prices of synthetic rubber. The hike in tyre prices was not

sufficient enough to neutralise the effects of the rising costs. As per reports, the

compound annual growth (CAGR) of the tyre Industry has been about 8%, keeping

pace with the economic growth India has seen in the last five years. Even with

faltering growth, the tyre industry is expected to pick up momentum in the future.

The Indian tyre industry exports to around 65 countries. In terms of value and

tonnage, the truck and bus tyres account for more than 60% of the turnover. The


10/85

10

tyres are predominantly cross ply and bias in India. Radialization has grown due to

its distinct advantages, in the passenger car segment.

Review of the Indian Tyre Industry

Source: http://stockshastra.moneyworks4me.com/indian-tyre-industry-analysis-

and-review/

The tyre industry segments are divided into personal and commercial usage based

on vehicle category and into OEMs (original equipment manufacturers),

replacement demand and exports based on industry. About 65% of the total Indian

tyre industry is constituted by the replacement segment. As per reports, the

domestic market is set to grow at a CAGR of 11-12%, and OEM demand to grow

at a CAGR of 10-11%. Replacement demand is expected to grow at a CAGR of

12%. According to the ICRA, exports rose by 46% and the revenues saw a 28%

growth because of the strong depreciation in the Indian rupee vs. US dollar, and

hike of over 20% in realizations.

ICRA said, "We expect the demand for tyres from the OEM segment to be

relatively muted at 8-9% during 2012-13, despite anticipated revival in
http://stockshastra.moneyworks4me.com/indian-tyre-industry-analysis-and-review/http://stockshastra.moneyworks4me.com/indian-tyre-industry-analysis-and-review/http://indiatransportportal.com/wp-content/uploads/2013/03/review.pnghttp://stockshastra.moneyworks4me.com/indian-tyre-industry-analysis-and-review/http://stockshastra.moneyworks4me.com/indian-tyre-industry-analysis-and-review/


11/85

11

replacement volume, driven by vehicles, particularly truck and bus tyres, sold post

the recessionary dip of 2009. Revenue growth for tyre companies is also expected

to be supported by price revisions of around 5-8% and continued export thrust to

SE Asian countries".

Mr. Subrata Ray, Sr. Group Vice President & Head-Corporate Sector Ratings,

ICRA, says, In line with the sombre outlook for the automotive industry, we

expect OEM tyre demand to be muted, however we expect replacement demand

and exports to support industry volumes. The softer input costs would however pay

dividends during the current year, with operating margins set to expand during H1,

2012-13.

Historical and Projected Growth Rate

Source:http://www.docstoc.com/docs/16139151/tyre-industry-in-India

So far, going by the current trends, the Indian tyre industry is poised for goodgrowth in the coming years.
http://www.docstoc.com/docs/16139151/tyre-industry-in-Indiahttp://indiatransportportal.com/wp-content/uploads/2013/03/historical.pnghttp://www.docstoc.com/docs/16139151/tyre-industry-in-India


12/85

12

TABLE OF CONTENTS

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

CHAPTER I 15-23

INTRODUCTION

1.INTRODUCTION 15

2.LIST OF BOARD OF DIRECTORS 23

CHAPTER II

RESEARCH DESIGN 24-27

2.1 TITLE OF THE PROJECT 24

2.2 OBJECTIVE OF THE STUDY 24

2.3 SCOPE OF THE STUDY 24

2.4 METHOD ADOPTED 25

2.5 LIMITATION OF THE STUDY 26

2.6 CHAPTER SCHEME 26

CHAPTER III

COMPANY PROFILE 28-34

3.1 VISION OF JK TYRES 28

3.2 MISSION OF JK TYRES 28

3.3 WHAT IS JK TYRES? 31

3.4 PRODUCT MIX OF JK TYRES 32

CHAPTER IV

THEORITICAL BACKGROUND OF THE STUDY 35-49

4.1 MARKET 35


13/85

13

4.2 MARKETING 36

4.3 MARKETING MIX OR 4PS OF MARKETING 36

4.4 PRODUCT MIX 39

4.5 BRANDING 40

4.6 PACKAGING AND LABELLING 44

4.7 PRODUCT WARRANTY 47

CHAPTER V

ANALYSIS OF JK TYRES PRODUCT MIX 50-59

5.1 MODELS OF TYRES 50

5.2 DIVERSIFICATION POLICY OF JK TYRES 52

5.3 FACTORS INFLUENCING PRODUCT MIX POLICY OF THE COMPANY 53

5.4 BRANDING IN JK TYRES 54

5.5 PRODUCT WARRANTY 56

CHAPTER VI

ANALYSIS & INTERPRETATION OF DATA 60-78

6.1 SOURCES THROUGH WHICH RESPONDENTS BECOME AWARE 60

6.2 ANALYSIS OF FROM HOW MANY YEARS

THEY KNOW ABOUT THIS BRAND 62

6.3 USAGE OF THIS BRAND IN YEARS 63

6.4 ANALYSIS OF PREFERENCE OF 64

CUSTOMERS TOWARDS THIS PRODUCT

6.5 ANALYSIS OF BASIS ON WHICH THEY PURCHASE 65

6.6 ANALYSIS OF SATISFACTION OF THE RESPONDENTS 66

6.7 CHANCES OF SHIFTING IF THEY ARE


14/85

14

NOT SATISFIED WITH THIS BRAND 67

6.8 ANALYSIS OF SWITCHING TO THIS BRAND 68

6.9 ANALYSIS OF PRICE 70

6.10 ANALYSIS OF FACTORS THEY CONSIDER

WHILE PURCHASING THE TYRES 71

6.11 ANALYSIS OF AVERAGE PERIOD OF PURCHASING THE TYRES 72

6.12 ANALYSIS OF MAJOR ADVANTAGES IN THIS PRODUCT 73

6.13 ANALYSIS OF SATISFACTION OF DESIGN OF THIS PRODUCT 74

6.14 ANALYSIS OF THE OUTLOOK AND STYLE OF THIS BRAND 75

6.15 OTHER SERVICES PREFERRED FROM THIS BRAND 76

6.16 ANALYSIS OF THE RELATIONSHIP THEY HAVE WITH THIS BRAND 77

CHAPTER VII

SUMMARY OF FINDINGS, SUGGESTIONS AND CONCLUSION 79-83

7.1 FINDINGS 79

7.2 SUGGESTION 81

7.3 CONCLUSION 82


15/85

15

CHAPTER 1

INTRODUCTION

1.Introduction:

J K Industries is a mega corporate entity that is emblematic of excellence,

diversification and pioneering new technologies. A part of JK organization which

ranks among the top private groups in India, JK industries is committed to self

reliance and follows an ethic that views customer satisfaction as an index of

achievement.

Over the years, the company has expanded and diversified its business portfolio. It

has developed into a multi product, multi location corporate entity comprising of

following business division.

Market is a group of buyers and sellers interested in negotiating the terms of

purchase/ sale of goods or services.

--Philip Kotler

Marketing is the set of human activities directed at facilitating and consummating

exchange. The essence of marketing is exchange of products and the transactions is

to satisfy human needs & wants. All business activities facilitating the exchange

are included in marketing.

--Philip Kotler


16/85

16

The product is a bundle of all kinds of satisfaction of both a material and non-

material kinds, ranging from economic utilities to satisfaction of a social

psychological nature.

Product mix is the entire range of products of a company for sale product mix need

not consists of related products.

Product mix of a company has three main characteristics: -

1) Width 2) Depth 3) Consistency

Width: - Width of a product mix depends upon the number of product groups of

product line found within the company.

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

line.

Consistency: - Consistency of the product mix refers to the question whether or

not the products have production affinity, marketing affinity or research affinity.

Brand is a name, term, symbol, design or combination of them which is intended to

identify the goods or services of one seller or group of sellers and to differentiate

them from those of competitors.

Packing may be defined as the general group of activities in the planning of a

product. These activities concentrate on formulating a design of a package and

producing an appropriate and attractive container or wrapper for a product. The


17/85

17

container itself act as a forceful though silent and colorful salesman at the point of

purchase.

Warranty is an obligation of the producer and seller to stand behind the product

and assure the buyer that he will derive certain services and satisfactions from the

product.

All manufactures and dealers and appliances must offer a very efficient after sales

services, i.e., free services during the guarantee period and thereafter at low

charges. It covers repairs, spare parts and maintenance.

1933 First in India to manufacture Calico Prints- Juggilal KamlapatCotton Spinning and Weaving Mills Co. Ltd., Kanpur.

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

1944 First in India to produce Aluminium virgin Metal from Indian Bauxite-Aluminium Corporation of India Ltd., Jaykaynagar.

1949 First in India to manufacture Engineering files- J.K. Engineers Files,Bombay.

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

1960 First to manufacture a Hydraulically Operated Cane Crushing Mill forKhandsari Sugar Plant and completed 100 ton plant-J.K. Iron & Steel


18/85

18

Co. Ltd., Kanpur.

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

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

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

1969 First to manufacture Acrylic Fibres- J.K. Synthetics Ltd. Kota

First to develop differentially Dyeable Nylon- J.K. Synthetics Ltd.,Kota

1973 First in India to license Synthetic Fibre Technology to third party aswell as the first to manufacture Synthetic Fibre Machinery Fibretech

Engineers & Manufacturers, Dadri.

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

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

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


19/85

19

1985 First in India to produce Cathonic Dyeable Polyester Fibre- J.K.Synthetics Ltd., Kota.

First in India to produce Nylon Tyre Cord based on Spin DrawTechnology- J.K. Synthetics Ltd., Kota.

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

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

1992 R & D center set-up at HASTERI.

1994 India's first T-Rated tyre launched Banmore Tyre Plant (BTP) crossed100 TPD.

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

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

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

HASETRI became the first research institute in Asia to get ISO 9002.

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


20/85

20

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

2000 JK introduced National Go-Karting Championships.

2001 Recieved CAPEXIL award.J.K. Industries recieved FOCUS LAC export award for the year 1999-2000.Commendation Certificate of CII Exim.IInd National Go-Karting Championships held.

2002 J.K.Industries Ltd has informed BSE that CRISIL has assigned a P1+rating to the Commercial Paper programme of the company.

2003 - J.K. Industries Ltd (JKI) has a new Marketing Director in Mr Ajay

Kapila. Before joining JKI, Mr Kapila was Senior Vice-President (Salesand Marketing) at Kinetic Engineering Ltd. He was also Director on

board and operational head of Kinetic's direct selling arm - KineticMarketing Services Ltd.

-Completes its comprehensive restructuring exercise of businesses thatleads to its emergence as a pure automotive tyre company. Along withthe de-merger of its non-tyre business, Sugar and Agri Seeds, intoseparate companies namely JK Sugar Ltd and JK Agri-Genetics Ltd,

JKI also completes the merger of Vikrant Tyres Ltd with itself

-J.K.Industries delists from Jaipur Stock Exchange

-divested its wholly-owned subsidiay called J.K. Drugs andPharmaceuticals Ltd to TEVA Pharmaceuticals of Israel.


21/85

21

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

2007- JK Industries Ltd has informed that the name of the Company has

been changed from "J K Industries Ltd" to "JK Tyre & Industries Ltd"w.e.f. April 02, 2007.

- Company name has been changed from JK Industries Ltd to JK Tyre& Industries Ltd.

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

2009- JSL Ltd announced huge expansion plans under which it would set up1.6 MT greenfield plant in Orissa due to which its stainless steelmanufacturing capacity will rise to about 2.5 MT by March 2014, thusmaking it the largest producer in India.

- Jsl Limited has informed that consequent upon vacancy caused by thesad demise of Sh. A.K. Jain, Company Secretary of the company onJanuary 1, 2009, Mr. Sunil Yadav has been appointed as CompanySecretary of the company w.e.f. January 13, 2009. Mr. Sunil Yadav hasalso been designated as Compliance Officer of the company in

pursuance of clause 47(a) of the listing agreement.

2010 - JSL Ltd has informed BSE that the name of the Company have beenchanged from "JSL Limited" to "JSL Stainless Limited". The Registrar


22/85

22

of Companies, NCT of Delhi & Haryana has issued the fresh certificateof incorporation dated August 06, 2010 consequent upon change oname.

- JSL Ltd has informed BSE that the Board of Directors of the

Company has appointed Mr. Jurgen Hermann Fechter and Mr. JamesAlistair Kirkland Cochrane as Additional Directors w.e.f. March 09,2010 by passing the resolution through circulation.

- JSL Limited led by Ratan Jindal is going to setup a 1320 Mw powerproject in the state of Orissa. The company signed a MoU with theOrissa government for setting up a super critical thermal power plan inthe state on Thursday. The plant will be setup with a total investment oRs 7,375 crore.

2011- JSL Stainless signs power purchase agreement with GRIDCO.

- JSL Stainless Ltd has informed BSE that the name of the Companyhave been changed from "JSL Stainless Limited" to "Jindal StainlessLimited" with effect from December 07, 2011. The Registrar ofCompanies, NCT of Delhi & Haryana has granted its approval onDecember 07, 2011.

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

2.Board of Directors of JK Industries:

Name DesignationRaghupati Singhania Vice Chairman & Mng.Director

Vikrampati Singhania Deputy Managing Director


23/85

23

Arun K Bajoria President & Director

Kalpataru Tripathy Director

Om Prakash Khaitan Director

Wolfgang Holzbach Additional Director

Name DesignationBharat Hari Singhania Managing Director

Swaroop Chand Sethi Whole Time Director

Arvind Singh Mewar Director

Bakul Jain Director

Vimal Bhandari Director


24/85

24

CHAPTER-II

RESEARCH DESIGN

2. Introduction:

Research methods are all those methods/techniques that are used for conducting to

the researchers use in performing research. Here more emphasis is made on

collection of the data directly through the customers with directly interacting with

them.

2.1 TITLE OF THE PROJECT STUDY

Title of the Project Study is A STUDY ON PRODUCT MIX STRATEGIES OF J

K TYRES.

2.2 OBJECTIVES OF THE STUDY: -

Considering the importance of the study, the following main objectives have been

drawn out.

1. To study and understand the profile of JK TYRES and various activities

in the company

2. The study made with special reference to PRODUCT MIX

3. To know the reaction of the consumers towards the Brand

4. To offer suggestions for major findings


25/85

25

2.3 SCOPE OF THE STUDY: -

Scope of the study extends to discover dealers reaction to the products

performance and physical characteristics, of J K TYRES.

Perform various marketing activities, how the product is perceived as compared to

its competitors performance with respect to quality, advertising and company

good will.

2.4 METHODOLOGY ADOPTED: -

The chief criteria for the validity of any research study lies in the methodology an

esquire would prove a failure if it were not done along certain methodical lines.

PRIMARY DATA: -

Primary data was collected through structured questionnaires, which were given to

variety of respondents and personal discussion.

SECONDARY DATA: -

Secondary data was collected through company manuals, study materials and

survey reports.

SAMPLING: -

Random sampling: - It is based on theory of probability. It provides known zero

change for selection of each population element. Under this sampling design every

item of the universe has an equal chance of inclusion in the sample. It is so to say a


26/85

26

lottery method in which individual units are picked up from the whole group, not

deliberately but by some mechanical process.

Sample Unit:

In this study the respondents are from Jaipur City.

Sample Size:

Sample size has taken 50 respondents.

2.5 LIMITATIONS OF THE STUDY: -

Any study of this kind will have its own limitations

1. Due to the information and time constraint, it was not possible to go in detail to

the study of PRODUCT MIX STRATAGIES OF J KTYRES.

2. The study is made in one place at one dealers show room

3. It is restricted to certain area and to limited time.

2.6 CHAPTER SCHEME: -

Chapter-I

INTRODUCTION

Chapter-II

RESEARCH DESIGN

Chapter-III

COMPANY PROFILE


27/85

27

Chapter-IV

THEORITICAL BACKGROUND

Chapter-V

ANALYSIS OF JKTYRES PRODUCT MIX

Chapter-VI

ANALYSIS & INTERPRETATION OF DATA

Chapter VII

SUMMARY OF FINDINGS, SUGGESTIONS& CONCLUSION


28/85

28

CHAPTER-III

COMPANY PROFILE

3.1 VISION OF JK TYRES

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

3.2 MISSION OF JK TYRES

To be the largest & most profitable tyre company in India.

To retain No. 1 position in truck & bus segment & to be amongst top two in allother 4-wheller tyre

To make truck/bus radial operations profitable & retain leadership in the passengerradial market.

To be the largest indian tyre exporter. Continue to be a significant player in the

world in truck & bias market.

To be a customer obsessed company.

To enhance value to shareholders & service to all stakeholder.

We the people of J K TYRES will have an organisation committed to quality in

everything we do.

We will continuously anticipate and understand our customers requirements,

convert these into performance standards for our products and services and meet


29/85

29

these standards every time. Full-customer satisfaction- both internal and external-

is our motto.

J K industries set up its first tyre plant at Jajkajgram nearUdaypur, Rajasthan in

1977. The plant with an installed capacity of 5 lakh tyres per annum was

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

As J K Tyre grew from strength to strength, demand for tyres increased

proportionally to meet this growing demand, the plant at Rajasthan was expanded

and by 1990. The plant was producing nearly 14 lakhs tyres per annum.

J K Tyre then went on to establish what is rated as the most modern plant in India,

a state of the art tyre plant in 1991, at Banmore near Gwalior, Madya pradesh.

The plant deploys the most sophisticated techniques such as a Betaray scanner, X-

ray, units, computer controlled processing and tyre testing machines to ensure a

high quality of products. Both the plants have set standards of efficiency and

productivity in the tyre industry and have consistency operated at high capacity

utilisation with a total capacity of 28.13 lakhs tyres per annum.

J K Tyres focus on R & D the plants ensures not just the incorporation of the latest

technology in products but also helps in the development of new types and sizes of

tyres. With the strategic acquisitions of a controlling interest in Vikrant Tyre

Limited. The V T Lplant at Mysore to contributes to J K Tyres total production

capacity at its plants, which amounts to 40 lakhs tyres per annum.


30/85

30

We believe that people are the biggest asset that a firm can possess. J K Tyre offers

unlimited opportunity for committed motivated individuals at all levels and across

a wide range of areas.

To ensure the same, J K Tyre has developed for its employees an infrastructure

consisting of: -

1) Regular upgradation of skill and practices

2) Management development programs

3)National and international training if you dream of working for aglobally growing

Corporation that encourages excellence rewards merit and initiative.

Vast in its operations and massive in its seal of activities JK Industries is a mega

corporate entity that is emblematic excellence diversification and pioneering new

technologies.

A part of J K Organisation that ranks among the top private groups in India, J K

Industries is committed to self-reliance and follows an ethic that views customer

satisfaction as an index of achievement.

Aside from J K Tyre, the flagship brand of the corporation, J K Industries includes:

JK SugarThe manufacturer of the best quality sugar in the country.

JK AgrigeneticsThe Company that is revolutionizing Indian agriculture through

its research and production of pest-resistant and high yield hybrid seeds and crops.


31/85

31

J K International: - A diversified trading house that exports a range of products

including textiles and leather goods, pharmaceuticals, tea, coffee, spices,

processed food and de-oiled cakes, to developed countries like USA, UK,

Canada, Germany, Netherlands and to countries in the middle east, west Asia.

3.3 WHAT IS J K TYRE: -

1) It is the leading manufacturer of Radial tyres for both truck and car

2) It is the only supplier of the tyre for Mercedizs Benz

3) First to get the ISO 9001 certificate in the entire world for the entire

operation

4) 2nd largest manufacturer for 4 wheelers in India

5) 16th largest tyre manufacturer in the world

6) First Indian company to export for radials to Europe

7) First Indian company to export over 45 countries across Six Continents

8) First and only Indian company to get the E mark Certificate

9) J K Tyre has 25-customer centers around the country.

10} J K Tyre the only Indian Company producing radials for the entireranges i.e., Trucks, buses, LCVs and Cars.

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

Ambassador, Armada, Cielo GL, Cielo GLE, Contessa, Fiat UNO, Ford Escort,

Mahindra commander, Mahindra classic, Maruthi Esteem, Maruthi Omni, Maruthi

Gypsy, Maruthi Zen, Maruthi 800, Hyundai santro, Mercedise Benz, Opel astra,


32/85

32

Peugot GI and GLD, Premier padmni, Premier 118NE, TATA Estate,

TATA Mobile, TATA Sierra, TATA sumo, Honda City, Mitsubishi lancer.

3.4 PRODUCT MIX OF JK TYRES: -

BIASTRUCK: -

JET-TRAK

JET-TRAK 39

HIGRIP

SAND CUM HIGHWAY

BIASTRUCK / BUS: -

JETKING

JETRIB

NULIFE HIGH WAY KING

RADIAL TRUCK: -

JET STEELNS

STELL KINGNS

RADIAL- CAR: -

RALLY

TORNADO

AQUASONIC

ULTIMA


33/85

33

ULTIMAXS

BRUTE

JK TYRE launched the radial tyres because of the following advantages it gave to

its customer some of the advantages are as follows: -

1) J K Steel belted radials help in fuel saving

2) Retreated radials give better mileage than retreated ordinary bias tyres.

3) Radials enhance the comfort level while driving

4) Tyre can wear and tear the effect even if there is underinflationpressure.

ABOUT THE RALLY: -

J K Tyre has been largely responsible for promoting motor sports in India and

bringing it to the forefront of national consciousness a role the company continues

to play.

Our involvement extends to all levels from the grass roots to the professional and

encompasses rallying, racing, Go-karting. Family navigational rallies and vintage

car rallies, pioneer in developing motor car rally talent in the nation, J K Tyre has

the countrys most successful rally team.

THE DIFFERENT STANDARDS HELD BY THE J K TYRES: -

1. I S O 9001 Standard

2. Q C 9000 Standard


34/85

34

J K Tyre is the Ist tyre manufacturer in the world to get the ISO 9001 certificate in

1994 itself, for its entire operations, including marketing, design, development,

manufacturing, testing, stocking, distribution, sales and services of conventional

(bias) and radial tyres, tubes and flaps.

J K Tyre has become the only tyre manufacturer in India and the first tyre

manufacturer in the world to achieve the Q C 9000 for multi location operations, in

the year 1998.

J K Tyre is attaining another milestone in its plan of achieving TQM, i.e., Total

Quality Management, and CII-EXIM award by 2000

THE DIFFERENT AWARDS HELD BY THE J K TYRE AND J K

INDUSTRIES ARE: -

National Export award

Brand Equity award

Capexil award (top export award)


35/85

35

CHAPTER-IV

THEORITICAL BACKGROUND OF THE STUDY

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

market and marketing.

4.1 MARKET

The American Marketing Association defines a Market as the aggregate demand

of the potential buyers for a product.

An area for potential exchange thus a market is a group of buyers and sellers

interested in negotiating the terms of purchase of goods or services.

--Philip kotler

TYPES OF MARKETING

1 ON THE BASIS OF SELLING AREA

2 ON THE BASIS OF ARTICLE OF TRADE

3 ON THE BASIS OF NATURE OF EXCHANGE DEALINGS

4 ON THE BASIS OF NATURE OF GOODS SOLD

5 ON THE BASIS OF PERIOD

KINDS OF GOODS: -


36/85

36

CONVENIENCE GOODS

SHOPPING GOODS

SPECIALITY GOODS

4.2 MARKETING:

The American Marketing Association defines Marketing as the performance of

business activities that directs the flow of goods and services from producer to

consumer or user.

The set of human activities directed at facilitating and consummating exchange.

The essence of Marketing is exchange of products and the transaction is to satisfy

human needs and wants. All business activities facilitating the exchange are

included in marketing.

--Philip kotler

4.3 MARKETING MIX OR 4 Ps OF MARKETING: -

Marketing mix is the set of controllable variable that a firm can use to influence

the buyers response within a given marketing environment. It has four elements of

4 Ps.

1 PRODUCT

2 PRICE

3 PROMOTION

4 PHYSICAL DISTRIBUTION


37/85

37

PRODUCT: -

A product is an idea, service or tangible good that a customer can acquire through

a monetary transaction or an exchange. Not only tangible goods are considered as

products; intangible like services and ideas are also included.

A Product then is the potential satisfied of a consumers want or need. But a

product is not just the essential item; it is made up of a number of components that

contribute to its ability to satisfy needs and wants. Components that are included in

a product are its package or the availability of maintenance service. The total

product is the sum of all physical and psychological features that aid in satisfying a

customers needs and wants. The success of a product is judged by how well it

satisfies those needs and how well it sells.

PRICE: -

The price is the amount that is paid to purchase a product. It is also the means

through which the company recovers its costs and makes a profit. Pricing is the

marketing variable that offers the most flexibility. Price dictates what the companyselling the product will receive in return for its efforts.

Price defines the value of product or service to the customer. How much the

customer is willing to give in order to have a particular product indicates how

much the item is worth to the customer. The price is where the value of a product

to the customer and the companys compensation for producing the product

intersect. Marketers should establish prices that will expand the sales of highlyprofitable item and contract sales of relatively unprofitable products within the

same time.


38/85

38

PROMOTION: -

Promotion is the sharing of information, concepts and meanings by the source and

it receives about product and services and the organisation that sells them.

There are 4 basic forms of marketing communication: -

1. ADVERTISING

2. SALES PROMOTION

3. PUBLICITY

4. PERSONAL SELLING

PHYSICAL DISTRIBUTION: -

Place or physical distribution is another element in the marketing mix, which is

considered with getting the product physically from the manufacturer to the place

where consumer can buy it.

The members of the distribution channel are the people and business involving the

product from the point of production to the point of consumption. These members

of the distribution channel are sometimes referred as Marketing Intermediaries.

Physical distribution is concerned with the movement and storage activities

required for making the firms product available to customer. The physical

distribution managers goal is to provide at the lowest possible cost, the rights, the

product to the right customer at the right time in the right quality at the right

location in the right condition. Business logistics is the flow of materials from

procurement of raw materials to manufacturing to the consumers.


39/85

39

WHAT IS A PRODUCT?

The product is a bundle of all kinds of satisfaction of both a material and non-

material kinds, ranging from economic utilities to satisfaction of a social

psychological nature.

A product supplies two kinds of utility:

1. Economic utility

2. Supplementary utility

The product may be a good, a service, a good plus service, or just an idea. A

product is all things offered to a market. Those things include physical object,design, package, label, price, services, supportive literature, amenities and

satisfaction not only from physical product and services offered but also from

ideas, personalities and organizations.

In short, a product is the sum of physical, economic, social and psychological

benefits. Marketers must define their market in terms of product functions what the

customer expects from the product.

4.4 PRODUCT MIX:

It is the entire range of products of a company for sale. Product mix need not

consists of related products. For example the product mix ofJ K TYRE includes a

diverse range of products such as TYRES, TUBES, FLAPS.

The product mix of a company has three main characteristics:

1. WIDTH

2. DEPTH


40/85

40

3. COSISTENCY

WIDTH of a product mix depends upon the number of product groups of product

lines found within the company.

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

CONSISTENCY of the product mix refers to the question whether or not the

products have production affinity, marketing affinity or research affinity.

4.5 BRANDING: -

WHAT IS BRANDING?

American Marketing Association defines as - The word BRAND is a

comprehensive term. A brand is a name, term, symbol or design, or a combination

of them, which is intended to identify the goods or services of one seller or group

of sellers and to differentiate them from those of competitors. A brand identifies

the product for a buyer and gives seller a chance to earn goodwill and repeated

patronage.

IMORTANCE OF BRANDING:

1. The marketer can build up a bridge of his organization around the brand.

2. Branding enables the firm assured control over the market.

3. Branding by differentiating a product from the rivals enables the brand owner

to establish his own price which cannot be easily compared with the price for

competing goods.


41/85

41

RESONS FOR BRANDING:

1. Ever-increasing competition.

2. Importance of packaging as a distinct marketing function.

3.Need for Advertising and Publicity.

4. Development of consumer brand.

ESSENTIALS OF GOOD BRAND:

A Brand should suggest something about product benefits, its uses,

quality, product nature, purpose, performance or action.

The name should be short, simple, easy to pronounce to spell and

remember, easy to identify and explain. It should be easy to advertise.

It should be capable of being registered and protected legally under the

legislation.

It should have a stable life and be unaffected by time. It should not

depend upon fashions and styles as they have a short life.

It should create pleasant associations.

It should not be used as a general or common name for all products

It should be unique, attractive and distinctive.


42/85

42

TYPES OF BRANDS:

1. INDIVIDUAL BRAND NAME

2. FAMILY BRAND NAME

3. UMBRELLA BRAND

4. COMBINATION DEVICE

5. PRIVATE OR MIDDLEMANS BRAND

Individual Brand Name:

Each product has a special and unique brand name, such as J K Tyre, J K sugar, J

K Internationals, Surf, etc., the manufacturer has to promote each individual brand

in the market separately. This creates a practical difficulty in promotion. Otherwise

it is the best marketing strategy.

Family Brand Name:

Family name is limited to one line of a product, i.e., products that complete the

sales cycles, e.g., J K TYRES for tyres, Amul for milk products, Ponds for

cosmetics, etc., family. Brand name can help combined advertising and sales

promotion.

Umbrella Brand Name:

We may have for all products the name of the company or the manufacturer. All

products such as soaps, chemicals, textiles, engineering goods etc., manufactured

by the Tata concerns will have the TATAs as one umbrella brand, such a device

will also obtain low promotion cost and minimize marketing efforts.

Combination Device:


43/85

43

TATA house is using a combination device, each product has an individual name

but it also has the umbrella brand to indicate the business house producing the

product, e.g., Tatas Taj. Under this method, side by side with the product image,

we have the image of the organisation also. Many companies use this device

profitably.

Private Middlemans Brand:

Manufacturers or distributors such as wholesalers, large retailers, can do branding.

This practice is popular in the woolen, hosiery, ports goods, and such other

industries. Big manufacturers also use it.

Benefits of Branding: -

As long as branding is considered desirable and as long as we do not have

overflow of branded goods, consumers in India may have the following benefits of

branding: -

1. Right kind of brand advertising and personal selling provide ample

information to the consumer about the branded products.

2. Branded goods have uniform and standardized quality and holder of

the registered brand is personally responsible to maintain the quality.

3. Rapid sales turnover assures fresher products due to frequent

replacement of stock with the retailer.

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

in the making up of orders.


44/85

44

4.6 PACKAGING AND LABELING:

Packing may be defined as the general group of activity in the planning of a

product. These activities concentrate on formulating a design of the package and

producing an appropriate and attractive container or wrapper for a product. The

container itself can act as a forceful though silent and colorful salesman at the

point of purchase or an effective medium of advertisement encouraging impulse

buying. Many a time, package design itself can act as a registered brand. Almost

every article has to be packaged to make a trip to the ultimate consumer. But

packing is merely a physical action and provides a handling convenience.

Packaging criteria:

The entities that influence package development are broadly classified into the

following criteria groups.

1. Appearance

2. Protection

3. Function

4. Cost

5. Disposability

Appearance:

The appearance of a package is very important from many angles. With the

growing super-bazaars and cash transactions in marketing activities, appearance is

gaining momentum appearance helps to:

1. Identify the product throughout the distribution channel;

2. Carry instructions for use and disposal;

3. Carry information about the product and satisfy legal requirements;


45/85

45

4. Exhibit brand name producers name;

5. Act as an important sales aid.

Protection:

Protection to the product is very important and the type of protection required

depends upon the following factors: -

1.Name of the product;

2. Distribution system adopted for the product;

3. The total time required to protect;

4. Package system.

Protection is normally required from environment and physical hazards. The unit

package should provide protection from physio-chemical and biological hazards.

The bulk package is expected to protect the contents against rough handling,

storage and transportation.

Functions of Packaging:

Protection

Dependability

Storage cost of filled packages

Distribution and insurance cost

Cost due to package/ spoilage/product lose

Effect of the package on sales.

Disposability:

In developing countries the packaging industry has been fully criticized on the

grounds of environmental pollution. The disposal of packaging materials after use


46/85

46

assumes a greater importance. This was considered to be a very minor problem.

The disposability of the package material after use had different forms, totally

eliminating the material or converting at the end of its useful life as a package.

However three methods are followed to dispose the package material after use.

Recycling, Using it as non-package appliance, Total elimination.

Package design:

A well-designed and attractive package is an ever-present shelf sales man for the

retailer. The package design itself can act as a brand. A good package is:

1. Economical (to manufacturer, to store)

2. Functional (in transit, in store, at home)

3. Communicative (of brand, of products, of performance, of usage)

4. Attractive (in color, in design, in graphic impact)

At present packaging must also solve the problem of pollution by reducing waste

and by conserving scare resources.

LABELLING:

Label is a part of a product. It gives verbal information about the product and the

seller. The purpose of labeling, like the purpose of branding is to give the customer

information about the product he is buying and what it will and will not do from

him. A label is also a part of a package or it may be attached directly to the

product. There is a very close relationship between labeling and packaging as well

as labeling and branding or grading.


47/85

47

Brand label mentions the brand name of mark. Grade label identifies the quality by

a letter, number or word. Descriptive and informative labels are similar; they give

helpful information on the following:

Brand name, name and address of producer, weight measure count. Ingredients by

percentages, where possible, directions for the proper use of the product,

cautionary measures concerning the product and its use, special care of the

product, if necessary recipes of food products, nutritional guidelines, Date of

packing and date of Expiry, Retail price, and unit price for comparison.

4.7 PRODUCT WARRANTY:

In modern life we have numerous products with complicated, intricate and

elaborate mechanism, such as radio, Television, motor car, electrical appliances,

etc., an average consumer is incompetent to known the INs and outs of such

sophisticated products. He will be at a loss if he is compelled to take his own care

while buying such products. Warranty is a stipulation collateral to the main

purpose of the contract. If it is broken, the victimized party, i.e., the buyer can

claim for damages but has no right to reject the contract.

A warranty is an obligation of the producer and seller to stand behind the product

and assure the buyer that he will derive certain services and satisfaction from the

product. The product warranty must be clear unambiguous and meaningful. It has

become an important selling point and a mean of product differentiation in a

competitive market. Warranties are also considered as promotional devices. Full

disclosure of warranty information will ensure the consumers right to know.


48/85

48

Warranty as seller aid:

A warranty is an assurance of the quality, service and performance. It is a written

guarantee of the intrinsic value of a product. It points out the responsibility of the

maker for repair, service and maintenance in the case of consumer durable. The

producer should use the word warranty instead of the word guarantee.

After sales services:

After sales service is an important aspect of a marketing transaction. Every

increase in the use of machinery, appliances and equipment in all branches of out

economy has created a continuous demand for after sales service, i.e., for the

smooth maintenance and rapiers and low charges as well as quick access to spare

parts and accessories at responsible prices.

All manufacturers and dealers costly mechanical and electrical machines and

appliances must offer a very efficient after sales services, i.e., and free services

during the guarantee period and thereafter at low charges.

After sales service covers repairs, spare parts and maintenance. After sales service

is an important selling point helping the customer to take a quick decision to

purchase durable and costly goods. Such facilities prevent dissatisfaction,

frustration, and ill will among customers.

Benefits of after sales service

1. It can build up and maintain sellers goodwill

2. Mass distribution of costly consumers durable is possible only through

after sales service and consumer credit

3. Complaints and grievances regarding servicing and maintenance will be

promptly and efficiently dealt with by the seller


49/85

49

4. Sales campaign will achieve remarkable success if after sales service is

included in sales promotion

5. Free service during the guarantee period is the best selling point in the

sales of machinery and appliances.


50/85

50


51/85

51

CHAPTER-V

ANALYSIS OF JK TYRES PRODUCTS MIX

The product is the most tangible and important single component of the marketing

program. The product policy and strategy is the cornerstone of a marketing mix.

Without a product there is nothing to distribute, nothing to promote, nothing to

price. If the product fails to satisfy consumer demand, no additional cost on any of

the other ingredients of the marketing mix will improve the product performance in

the market place.

J K Tyres offers following types of product for sale:

a) Tyres

b) Tubes

c) Flaps

It is manufacturing different lines of products like Truck tyres, Light Commercial

Vehicle tyres (LCV), for jeep, passenger car, tractors etc.,

5.1 Models of tyres

According to the needs and requirements of the consumers company is releasing to

the market: Black color tyres and the following models of tyres.

BIAS-TRUCK: -

JET-TRAK

JET-TRAK 39

HIGHRIP

SAND CUM HIGHWAY


52/85

52

BIAS-TRUCK/BUS: -

JETKING

JET RIB NULLIFY HI-WAY KIND

RADIAL-TRUCK: -

JET STEEL-NS

STEELKING-NS

RADIAL-CAR: -

RALLY

TORNADO

AQUASONIC

ULTIMA

ULTIMA XS

Because of some marketing problems and competition in the market the company

follows the policy of product consistency. So all the products or all the products

offered by the company is related to each other but not unrelated.

While introducing the new product to the market the company will take into

consideration the following factors:

a) Cost involved in the introduction of a new product to the market.

b) Demand for the product in the market


53/85

53

c) Competitive situation in the market for the product.

However, it is difficult for the company to explain the customers about the

suitability of its application.

5.2 DIVERSIFICATION POLICY OF J K TYRES

Company is concentrating its attention on product diversification rather than

simplification. The main reasons for diversification of product lines are as follows:

a) Technology developments have contributed to the diversification of

product lines

b) Company is interested in widening its product line because it feels that it

could avoid the risks involved in a narrow product line

c) Company also prefers diversification of products to minimize the risks

arising out of changes in consumers tastes

d) It is also concentrating on diversification of products with the intention of

utilizing ideal plant capacity fully, man power and financial resources.

e) Further company also feels that through diversification it can go for

better market reach, and can get huge popularity and customer belief for

the products.

f) It feels that it can acquire more market share through diversification

g) Company also feels that if it goes for product diversification, it can create

demand for new product on the reputation of existing products.

Companys product is meant for following types of customers:

Heavy Truck: - Commercial goods operators

Light Truck: - Light goods operators, passenger bus operators

Light Commercial Vehicles: - Passenger operators, passenger car owners,

Farmers (tractor owners)


54/85


55/85

55

It should be noted that company is not incurring loss from any of its product or

product line. It is because company is having its own QS standards. It will not

allow the continuation of production of the product until it reaches elimination or

deletion stage.

5.4 BRANDING IN J K TYRES

Company is having its own Brand name J K INDUSTRIES, which is registered

under the Trade Name and Trade Marks Act. Branding strategy of the company

indicates how the firm chooses to use branding as an integral part of its overall

marketing strategy. So branding is simple another dimension of marketing strategy.

Because of Branding, company is able to build up a bright image of the

organization, has control over the market. Further, it is quite possible for the

company to avoid product substitution.

The companys Brand is helpful not only for creating demand for existing product

but also for new products for getting good reputation in the market.

Companys brand has the following characteristics:

a) It is familiar to the customers

b)It is suggesting about the product

c) Its name is short, simple and easy to pronounce

d)It is capable of being registered and protect legally under the

legislation

e) It is having stability and unaffected by time

f) It is not depending upon fashions and styles as they have short life


56/85

56

Company is adopting Family Brand names. It helps the company to

have combined advertising and sales promotion. Company is able to

expand the product mix with less risk by branding.

Advantages of branding to the customers of j k tyres:

a) Branded products of the company have uniform and standardized

quality.

b)Rapid sales turnover assures fresher product

c) There is considerable saving in time in the selection of the product.

PACKAGING OF THE COMPANY PRODUCTS

Company is packing its products while distributing it to the market. The more

effectively a product is packaged the more effective is its identity

individuality. Packaging alone makes possible branding and advertising of

products.

Company will pack its products for the purpose of protections from various

types of damages but not for the purpose of promotion. As companys

intention in its packaging is for the purpose of giving protection to its

products, it need not be that much attractive. So it need not spend huge

amount of money on packaging, so that the price of the final product will not

get increased to an enormous extent. Packaging system is able to protect the

contents from all types of breakage, spoilage and pilferage. Consumer,therefore are not facing any major problems with regard to packaging system

of the organization. So companys package acts as a multi-purpose

arrangement. It is fulfilling utility function of protection, identification and

convenience.


57/85

57

LABELING

Companys Labeling provides verbal information about the product. The intention

of labeling is to give information to the consumers about the product he is buying

and what it will and will not do for him. It contains name, size of application,

inflation pressure, load carriable etc.

5.5 PRODUCT WARRANTY

Company is giving warranty for its products. The warranty provided by the

company meets the obligation of manufacturing defects. If there is any damage in

the tyres distributed by the manufacturer, it can be replaced by the distributor

within the warranted period. Because of warranty given by the manufacturers both

the distributors and the consumers have been satisfied.

In addition to providing qualitative products, warranty etc., company is also

providing After-Sale-Service to the distributors and in turn to the ultimate

consumers like customers education for application, repair facilities and over all

maintenance.

Company will provide After-Sale-Service for the following terms:

a) Trucks:- 18 Months

b) Light Commercial Vehicle:- 3 Years

Though it is providing After-Sales-Service, price of the product wills not

increase, as sales turn over will increase in the same proportion. By providing

after sales service, to the customers can get better knowledge of the product and

thereby can avoid losses.


58/85

58

Competitors of J K TYRES like MRF, Apollo, Ceat, Dunloop, Modi

continental, Bridgestone, Good Year are also providing same type of after sales

service as providing by this company.

CHANNELS OF DISTRIBUTION IN J K TYRES

In the field of marketing, channel of distribution indicates route or pathways

through which goods and services flow or move from producers to consumers.

J K TYRES follows the following distribution channel while distributing its

products to the market.

FACTORY

AREA OFFICE-DEALER-CUSTOMER

CLEARING & FORWARDING

DEALERS

CUSTOMERS

The product manufactured by the J K TYRES follow the channels of

distribution in a very simple way. The goods manufactured in the factory theultimate customer from there in.

The other channels of distribution adopted by the J K TYRES are the movement

of goods from the factory point to the area office, and from there the goods are

moved towards the clearing and forwarding department, and from there towards

the dealers. And the goods move from the dealers towards the hands of the

ultimate customers.

The company will take into consideration the following factors while

selecting a particular channel for the distribution of tyres: ---


59/85

59

a) The situation in the factory

b) The operational cost involved

c) Product availability to the customers

d) Financial position of the dealers

e) Financial position of the company

It covers the geographical area like: -

a) Well maintained high ways

b) Crucial road in rural and sub-urban places

c) Farms

d) Mines

The company is providing 2% to 4% commission to its agents depending on the

volume of sales affected and as per the rules and regulation of the company.

The company has to go through certain formalities while distributing its

products to the maker.

a) The products have to pass through commercial tax check post

b) All the invoices and documents for the sale should satisfy the conditions

of sale of goods act.

The company provides 15 days of credit facility to its agents. In addition to this

facility company gives cash discount if immediate cash is paid. And turnover

discount is provided on the basis of sales affected. If the agent/distributors

failed to make payment within 15 days, they are liable to pay penalty as

imposed by the company. Company is able to supply the goods in time.

COMPANY EXPECTS THE FOLLOWING FROM THE

DISTRIBUTORS:


60/85

60

1) Quick payment

2) Better understanding

3) Having good knowledge about the product

In addition to selling tyres through distributors to the market company is also

selling products to the consumers if they buy in huge quantities provided if they

are a bus or truck operators.

Through a particular channel is followed by the company. It is not fixed;

according to the change in circumstances it can also change the channel.

Company has undertaken so many promotional activities like giving

advertisements in T.Vs and magazines. It provides Credit facilities, price

concessions, guarantee, warrantee, after sales services, gifts etc.,


61/85

61

CHAPTER-VI

ANALYSIS AND INTERPRETATION OF DATA

The data collected through the questionnaires is called as the primary data. The

primary data collected from 50 respondents through random sampling.

Percentages, bar diagrams, histogram, pie charts etc., are used for analysis of data.

The analysis is explained as follows: -

6.1 Sources through which respondents became aware

Table No.6.1

SI. NO: Options No. of Respondents %

1 T V 17 34

2 News

paper/magazines

18 36

3 Friends 8 16

4 Others 7 14

Total 50 100

Source: primary data


62/85

62

Interpretation:

It can be observed from the above table that 34% of the respondents are become

aware of the J K TYRE product through T V, 18 % from News paper and

magazines, and 8% and 7 % have aware through Friends and others.

Fig. 6.1 showing sources through which they became aware.

1718

87

0

2

4

6

8

10

12

14

16

18

20

1

No. of respondents

Sources through which they became aware

TV News papers.Magazines Friends Others


63/85

63

6.2 Analysis of from how many years they know about this brand.

Table No.-6.2

SI. NO: OPTIONS No of

respondents

%

1 Less than 2

years

9 18

2 2 to 5 years 14 28

3 More than 5

years

27 54

Total 50 100


Fig. 6.2 showing in years known about this product.

914

27

0

5

10

15

20

25

30

Lessthan 2 Years 2 to 5 Years Morethan 5 Years

From how many years using this product

Series1


64/85

64

Interpretation:

From the above table it is clear that 54% of the customers have known about the

J K Tyres Brand from more than 5 years, 25% of the customers have known

from 2 to 5 years and remaining are known from less than 2 years.

6.3 Usage of this brand in years.

Table No.6.3

SI. NO OPTIONS No. of

respondents

%

1 Less than 3

years

11 22

2 3 to 5 years 18 36

3 More than 5

years

21 44

TOTAL 50 100



65/85

65

Fig.6.3 showing usage of this brand in years.

Interpretation:

From the above table it is known that more than 44% of the customers have

been using this brand from more than 5 years and 36 %, 22% of the customers

are using from less than 3 years.

6.4 Analysis of preference of customers towards this product.

Table No.6.4

SI. NO: No of

respondents

%

1 Quality 32 64

2 Price 8 16

3 Durability 10 20

TOTAL 50 100


11

18

21

USAGE IN YEARS

Lessthan 3 Years

3 to 5 years

5 & above


66/85

66

Interpretation:

From the above diagram it is clear that more than (64%) the respondents prefer

this brand because of quality, 16 % only because of price and remaining 20% of

the respondents prefer because of durability.

Fig. 6.4. Showing thepreference of customer towards JK tyres

6.5. Aalysis of basis on which they purchase.

Table-6.5

SI NO: No. of respondents %

1 Cash 34 68

2 Credit 5 10

3 Half cash & Credit 11 22

TOTAL 50 100

64%16%

20%

Preference of thecustomer

Quality


67/85

67


Fig. 6.5 showing basis on which they purchase.

Interpretation:

From the above table it is clear that more than 68% of the customers purchase

on cash basis, 10% on credit basis and 22% half cash and credit basis.

6.6 Analysis of satisfaction of the respondents.

Table No.6.6

SI NO: No.

Respondents

%

1 Yes 38 76

2 No 12 24

0

5

10

15

20

25

30

35

Cash Credit Half Cash& Credit

34

5

11

Basis of Purchase


68/85


69/85

69

4 Modi 4 8

5 T V S 5 10

6 Apollo 8 16

TOTAL 50 100


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

Interpretation:

From the above table 52 % of the respondents will shift to the MRF tyres, 16%

shift to the Apollo, 20% of the respondents shift to the TVS and Ceat products

and remaining 12 % (8+4) will shift to Good year and Modi products.

6.8. Analysis of switching to this brand.

Table No.6.8

SI NO: No of %

26

52

4 58

0

5

10

15

20

25

30

MRF Ceat Good Year Modi T V S Apollo

Brand they Prefer


70/85


71/85

71

6.9 Analysis of price.

Table No .6.9

SI NO: No of respondents %

1 Yes 42 84

2 No 8 16

TOTAL 50 100


Fig.6.9 showing the price satisfaction.

Interpretation:

From the above table it is known that 84 % of the respondents are happy with

the price of this brand and remaining 16 % of the responders are unhappy with

this brand.

000

42

8

0

Price Satisfaction


72/85

72

6.10 Analysis of factors they consider while purchasing the tyres.

Table No.6.10


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

SI NO: No of

respondents

%

1 Quality 21 42

2 Durability 18 36

3 Price 11 22

TOTAL 50 100

21

18

11

0 5 10 15 20 25

Quality

Durability

Price

Factors they Consider


73/85

73

Interpretation:

From the above table it is clear that while purchasing the tyres most of the

(42%) respondents consider the quality, 36% of the respondents consider the

durability and 22 % of them consider the price of the product.

6.11 Analysis of average period of purchasing the tyres.

Table No-6.11

SI NO: No of

respondents

%

1 3 Months 3 6

2 6 Months 6 12

3 9 Months 16 32

4 1 year &

above

25 50

TOTAL 50 100


36

16

25

05

101520

2530

3 Months 6 Months 9 Months 1 Year & more

Average period of Purchase


74/85

74

Fig. 6.11. Showing the average period of purchase.

Interpretation:

It is difficult to tell that average period of purchasing it depends on how use

their vehicle and the weight they carry. From the above table we came to knowthat 50 % of the respondents purchase tyres once in a year. And less than 32 %

purchase within 9 months.

6.12 Analysis of major advantages in this product.

Table No-6.12

SI NO: No of

respondents

%

1 Everything 29 58

2 Nothing --

3 Initial mileage 17 34

4 Smoothness 4 8

TOTAL 50 100



75/85

75

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

Interpretation:

From the above table58% of the respondents accepted that the product of the JK

Tyres for everything and 34% find major advantage of initial mileage and 8%

for smoothness of the product.

6.13 Analysis of satisfaction of design of this product.

Table No-6.13

SI NO: No of

respondents

%

1 Yes 32 64

2 No 18 36

TOTAL 50 100


29

0

17

4

0

5

10

15

20

25

30

35

Major advantages


76/85

76

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

Interpretation:

From the above table and graph it is observed that more than 64% of the

respondents are satisfied with the design of the JK Tyres, and remaining are not

satisfied.

6.14. Analysis of the outlook and style of this brand.

Table No-6.14

SI NO: No of

respondents

%

1 Yes 38 76

2 No 12 24

TOTAL 50 100

Sources primary data

64%

36%

Satisfaction of Design

Yes

No


77/85

77

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

Interpretation:

From the above table and diagram it is observed that more than 76 % of the

respondents are satisfied with the style and design of this brand and remaining

are not satisfied.

6.15. Other services preferred from this brand.

Table No.6.15

SI NO: No of

respondents

%

1 Product knowledge 13 26

2 Door delivery 15 30

3 Monthly camp 22 44

TOTAL 50 100


76%

24%

Out look & Style

Yes

No


78/85

78

Fig. 6.15 showing the services they prefer.

Interpretation:

From the above table it is clear that (44%) most of the respondents are prefer

monthly camp, 30% prefer door delivery of the product and 26% prefer like

product knowledge.

6.16 Analysis of the relationship they have with this brand.

Table No-.6.16

SI NO: No of

respondents

%

1 Regular 35 70

2 Occasional 7 14

3 Special 5 10

0

5

10

15

20

25

ProductKnowledge

MnthlyCamp

1315

22

Services Prefered

Doordeliver


79/85

79

4 Rare 3 6

TOTAL 50 100

Sources primary data

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

Interpretation:

From the above table it can be observed that 70% have the regular relationship,

and 14% of the respondents are occasional relation and 10 % have Special

relationship.

0

5

10

15

20

25

30

35

Regular Special

35

7 5 3

Relationship


80/85

80

CHAPTER-VII

SUMMARY OF FINDINGS, SUGGESTIONS&

CONCLUSION

In this chapter, I would like to bring out my survey findings & suggestions are

explained with reference to survey data. The findings are recorded in tables and

graphs; from the study the following findings were made.

7.1 FINDINGS:

It is found in survey that 24 % of the respondents are not satisfied with the

product quality.

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

sales service.

It is observed from the survey that many of your consumers want to shift over

to MRF (52%), Ceat (10%), TVS (10%), Modi (8%), and 4% to Good year.

24% and 76% of the respondents are dissatisfied with the re-treading and

mileage performance of J K TYRES.

It is found in the survey that most of the respondents are getting information

about the JK Tyres products through the Television (34 %) and Newspaper

(36%).


81/85

81

In the survey it came to know that most of the respondents have come to know

about the JK Tyres from more than 5 years, it is clear that the JK tyres company

has been taking steps to give information about its products.

It is observed through the survey that only 16 % of the respondents are cost

conscious, and 64 % of the respondents are quality conscious they prefer only

because of quality and durability.

It is found in the survey that 40 % of the respondents switching to this brand

because of re-treading and 24% are because of performance.

While purchasing tyres 42% of the respondents consider quality. 36% of the

respondents consider durability of course price is also major important they

dont worry about this much more.

Purchasing of tyres frequently is depends upon the how they use vehicles and

the weight they carry, more than 50% of the respondentspurchase once in a

year.

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

quick knowledge.

It is observed in the survey that more than 64% of the respondents satisfied with

the design, and 76% of the respondents satisfied with the outlook and style of

the tyres.

Company is not encouraging credit basis of selling the products.


82/85

82

Regarding pricing when compared with the other competitors pride of this

product, respondents are happy with the price of the JK tyres because quality

and price are equal.

More than 58 % of the respondents have accepted this brand only because they

are getting major advantages form this brand.

7.2 SUGGESTIONS:

From the above findings the following suggestions were made.

1. Quality is a main tool to get a good market of the product. The quality

should be accepted by all respondents. Even if a small percentage is

dissatisfied, they always reject and opinion always will negative. In this

context it is suggested that the company should improve the quality of

tyres, tubes and other items to win the consumers hearts to obtain the

market share.

2. In every business customer care is very important in post and pre sale,

many precautionary steps should be taken in all the levels of the

activities. It is suggested that company should introduce programs like

consumer council, sale after service etc. these steps will encourage the

consumers to explain their own feelings and opinion.

3. Satisfaction of old customer and searching for new customer is the main

policy of all the business. In this respect it is suggested that maintaining


83/85

83

good quality, economy in price, promotional policy and appointing

effective dealers will help to attract the new customers.

4. Credit system introduction is necessary in mobilizing of sale. This system

will help to keep many more customers as well as getting new customer.

5. It is suggested that the dissatisfaction of the customer will loose the

reputation and switching over to competitors product. In this aspect it is

suggested that improvement and standardization of the product quality

will bring down the problems while marketing the product.

7.3 CONCLUSIONS:

Success and failure of any business enterprise depend upon the quality products

and services that company provides. In the present scenario customers are more

attracted towards the quality.

In olden days customers preferred the products that were suggested by the

friends and neighbors. But now it is not like that they purchase which ever they,

like because they are getting information about the product quality and about

the companys marketing strength.

In order to demonstrate its commitments towards quality, JK Tyre has made

never-ending efforts to make all its products of world-class quality.


84/85

84

Even though competitions at international market, JK Tyre keep its name a

Date post:	03-Apr-2018
Category:	Documents
Upload:	gunjan-pareek
View:	229 times
Download:	0 times

A Project Report by Alka Pareek

Documents