13823112-jk-project-110204044415-phpapp02

8/3/2019 13823112-jk-project-110204044415-phpapp02

1/60

Unit-1:

MARKET SHARE OF DIFFERENT

TYRE COMPANIES IN TRUCK

SEGMENT

Unit-2:

CUSTOMERS PREFERENCE ON

DIFFERENT BRANDS AND TYRE

COMPANIES IN TRUCK SEGMENT

Ambedkar Institute of Management Studies 1


2/60Ambedkar Institute of Management Studies

Contents

Unit-1: MARKET SHARE OF DIFFERENT TYRE COMPANIES IN TRUCK SEGMENT.

Executive Summary:a. Introduction

b. About Tyre industries in India (Background, key issues,Review of performance)

c. Growth of Tyre Industriesd. Various Types of Tyre segment

JKs Brief profile (Company)a. About JKb. Mission & Visionc. Marketing strategyd. SWOT analysis

e. Organizational structure

Objectives of the study

Need for the study

Limitation of the study

Research Methodology of the study

Data analysis & Interpretation

Findings

Suggestions

Unit-2: CUSTOMERS PREFERENCE ON DIFFERENT BRANDS AND TYRE COMPANIES IN TRUCK SEGMENT.

Consumer Buying behaviour

Indian consumer profile

Objective of the study

Limitation Of the study

Methodology

Data analysis & interpretation

Findings

Suggestions

Conclusion

Bibliography

Annexure

2


3/60


4/60

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 then

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 acquiring new customers can cost five times

more than the cost involved in satisfying and retaining current customers.

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

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

appeal. The attitude of the manufacture was that of caveat emptor. Thanks to the

government policies on liberalization, globalization and privatization (LPG), the market

scenario has changed today. Today, the customer has a host of defense mechanism like

the customers protection laws, regulation of the government, the powerful hands of the

organization, customers courts, switching to substitute or competitors that offer at

competitive prices, etc. The maxim, caveat emptor has been replaced by caveat

venditor.



5/60

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.

b. 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.

Transportation industry and tyre industry go hand in hand as the two are interdependent.

Transportation industry has experienced 10% growth rate year after year with an absolute

level of 870 billion ton freight. With an extensive road network of 3.2 million km, road

accounts for over 85% of all freight movement in India.

Key Issues of tyre industries

High tax usage

The high tax content on tyres can be gauged from the fact that the percentage of total tax

to the tax excluded price for various categories of tyres is - 44% for Truck Tyre; 41% for

Passenger Car Radial Tyre, 35% for Tractor Rear Tyre and 76% for Truck Tyre Tube.



6/60

Increase in raw material costs

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

change in the prices of raw materials affects the profitability of tyre companies. The raw

materials used in the manufacture of tyres are rubber and petroleum derivatives like

nylon tyre cord, carbon black, styrene butadiene rubber and poly butadiene rubber. The

most important raw material is rubber-natural and synthetic. Natural rubber (NR), with

29% weightage in the cost of raw materials used by tyre industry, is the highest cost item.

Annual consumption of NR by tyre industry is 3.50 lakh tonnes, valued at Rs. 14 billion.

Over 85% of NR consumed' by the industry is procured domestically. 15% is imported.

In the 2003-04 fiscal, as against the Minimum Statutory Price of Rs. 32.0 per kg, the

ruling domestic price of NR had been over Rs. 50 per kg. This is higher than the world

rubber prices. However, this does not entail the tyre industry players to import as a

number of restrictions are imposed on the import of NR. NR can be imported only

through two ports-Kolkata & Visakhapatnam. The customs duty on import of natural

rubber is 20%, with 10% under Bangkok Agreement. However, this is not relevant, as NR

is not cultivated in South Korea, Bangladesh & China (signatories under the Bangkok

Agreement). Hence, NR can be sourced only from Sri Lanka (under the Indo-Sri Lanka

Agreement), which is of bad quality. Thus, the options of rubber import are restricted and

the manufacturers have to rely on the domestic market for procuring rubber.

Import of tyres

During the FY2002, over 1,10,000 passenger car tyres were imported. Although this

constitutes a small percentage (1.5%) of total passenger car tyre production in the

country, since total imports are of radial passenger car tyres, the percentage is higher

when compared against domestic production of radial passenger car tyres. A large

percentage of imports are from South Korea at a concessional rate of customs duty (i.e.

15%) under the Bangkok Agreement - as against 20% normal rate of customs duty.

Even though the Government has imposed a restraint on the import of used tyres into

India, occasionally there are reports of import of such tyres in a clandestine manner,



7/60

sometimes as new tyre at low value, since there is no restriction on import of new tyres or

as tyres under the "others" category. Many countries such as Japan, Bangladesh, Pakistan,

Philippines, Thailand, Kenya, South Korea, etc. have either put a complete ban on import

of used tyres or have placed stringent conditions on such imports.

Tyre Exports

The product focus of tyre exports from India has been Traditional Truck Tyres. Globally

this segment of tyre export is shrinking due to greater acceptance of radial tyres. Over the

years, China has emerged as a major exporter in bias tyre category. Additionally, export

of Indian tyres to select countries is subjected to non-tariff barriers (NTBs) by way of

standards, tests, etc. Export of cheaper tyres from China to major tyre importing markets,

like US, is adversely affecting Indian tyre exports to these markets. India's share in

exports to these countries (especially USA) is progressively declining. If the trend is not

reversed, Indian tyre industry will find it extremely difficult to regain its erstwhile

position in these markets. Low rate of interest, cheaper electricity tariff, hidden subsidies

by the Chinese Government, better infrastructure facilities and lower transaction costs are

factors favourable to Chinese tyre industry.

Trends in Production, Consumption, Price & Capacity Utilization

The total tyre produced in the country was 51.58 million units in FY2003 - a 19% growth

rate over FY2002.

CAGR of tyre production (in %)FY 1993-2003 9%

FY 1993-1998 7%

FY 1999-2003 9%

FY 2002-2003 19%

Compiled by INGRESCurrently, the size of the Indian tyre industry is estimated at Rs. 128 billion (0.5% of

Indian GDP), as of FY2003. The total installed capacity of the Indian tyre industry is

around 60.5 mn units, and the capacity utilization is around 85%. The capacity utilization

improved in FY2003 following improved demand from the automotive segment (75% in

FY2001). Additionally, in FY2003, the price realization of tyre manufacturers also

registered an increase by 8%, as against a 0.6% increase in FY2002.



8/60

Demand Supply Gap

The demand for tyres is either in the domestic market or in the export market. As far as

domestic demand is concerned, the OEM and the replacement segments are likely to

witness strong growth given the current performance of the automotive sector. Given the

strong linkages of tyre industry with automotives, its demand is likely to be strong over

the short to medium term. As for the export demand for tyres, the outlook is positive,

even though some downsides remain.

As regards supply of tyres, currently, the major players are in the process of expanding

their capacities, in anticipation of uptrend in sales. For instance, Apollo Tyres has set up a

joint venture with Michelin for manufacture and sale of bus and truck radials. JK is

expanding its Mysore truck and bus radial facility along with eyeing acquisitions of

smaller units. Ceat has increased its offtake by 3 times from Pirelli. However, a

characteristic of the Indian tyre industry is that most of the tyre manufacturers in the past

had increased capacities in anticipation of a surge in demand, but when it did not

materialise, they reduced their addition to capacities. Thus, the demand-supply gap is

likely to be an important issue for the Indian tyre industry over the short to medium term.

Review of PerformanceOverall Performance

The operating margin of the representative sample of tyre companies improved during

FY2003. However, the net profit margin of the tyre companies even though improved,

was still at 3%.

Performance in FY2004

The tyre industry continues to be driven by good demand growth, propelled by sustained

uptrend in demand and sales of automobiles in general, and commercial vehicles and

passenger cars in particular. However, this does not get translated into improved margins

for the industry, as it is witnessing sustained rise in prices of raw materials like natural

rubber. Additionally, the customs duty on imports has been brought down from 25% to

20% and Special Additional Duty of 4% has been dispensed with.



9/60

Outlook

The level of economic activity, performance of domestic automotive industry, and the

faring of the transport sector directly influence the performance of the tyre industry in

India. With the replacement segment dominating the overall tyre demand in India, the

industry remains inherently vulnerable to economic cycles. While radicalization has

become the norm in the passenger car segment, in the bus and truck tyre segment, its

acceptance is still limited. Bus and truck radicalization could emerge in the long term as

the quality of roads improves and the restrictions on overloading are better enforced. The

practice of re-treading, which is gaining increasing acceptance, could pose a challenge to

replacement demand in the medium term. The ability of the re-treading sector to capture

potential replacement demand would depend on the awareness among customers (of the

benefits of retreading) and also the quality of retreading done. Given the low levels of

penetration of two-wheelers and passenger cars in the country, OEM demand is likely to

increase, which in turn would push up replacement demand with a lag.

The prospects of tyre exports from India appear healthy, following efforts by Indian

companies to increasingly enter into outsourcing agreements with tyre producers in

Southeast Asia, Eastern Europe and Latin America. Overall, tyre manufacturers are likely

to tap the export market in an effort to boost sales. The increasing exports of bus and

truck tyres (crossply variety) from India to developing countries is because of the fact

that developing countries are unable to source them from developed countries as these are

no more produced there. Tyre imports are unlikely to pose a threat to the domestic

industry, given that domestic prices are lower than international tyre prices.

In the domestic market, tyre manufacturers are expected to increasingly focus on

expanding their dealership networks & explore possibilities of tie-ups among themselves

to penetrate the growing customer base. They are also likely to pursue innovative

measures (such as "dial-a-tyre service and road shows) to improve customer awareness.

The consolidation of the Indian tyre industry is likely to continue in the coming years

through mergers among existing players. The industry is likely to expand through a

combination of organic and inorganic growth. While organic growth would come from



10/60

raising efficiency levels, inorganic growth would be achieved through alliances and

M&As.

c. Growth of Tyre industries in India

The Indian tyre industry is expected to clock a tonnage growth of 9-10 per cent over the

next five years, according to a study by Credit Analysis and Research Limited (CARE), a

noted rating firm that offers a wide range of rating and grading services across sectors.

While the truck and buses tyres are set to register a CAGR (compounded annual growth

rate) of 8 per cent, the LCV (light

Commercial vehicles) tyres are poised for a CAGR of 14 per cent.

According to the CARE study, the growth in the Indian tyre industry will be fuelled by

the expansion plans of the automobile companies, government's focus on development of

road infrastructure and sourcing of auto parts by the global Original Equipment

Manufacturers (OEMs).

However, the tyre industry has to grapple with raw material price volatility, rupee

appreciation and cheap Chinese imports.

The tyre industry in India recorded a CAGR of 9.69 per cent during 2002-07.

The size of the industry was estimated at Rs 19,000 crore in 2006-07 with a total

production of 736 lakh units of tyres.

In 2006-07, the replacement tyres accounted for 53 per cent of the total tyre tonnage

offtake, followed by 31 per cent share of OEM and 15 per cent by exports.

Out of the 736 lakh ton of tyres, 54, 49,560 units worth Rs 2,600 crore were exported.

The exports from India posted a CAGR of 13 per cent in unit terms and 18 per cent in

value terms between 2002-07.



11/60

The study points out that on the export front, the Indian tyre companies need to explore

newer markets as the existing market for bias truck tyre which accounts for about 45 per

cent of the total export volume is nearing saturation.

This apart, with rationalization catching up in the foreign markets, the Indian tyre

companies need to graduate to radial tyres so as to protect their share in the export

market.

At present, radicalization of tyres is low in India except for the car tyre market where 95

per cent of the tyres is radicalized while cross ply tyres is preferred in all other categories.

Cross ply tyres are preferred owing to poor road conditions, overloading in trucks, higher

cost of radial tyres and poor awareness among the tyre users in the country.

The CARE report observes that though the tyre technology in India has witnessed several

developments with continuous innovation, the domestic tyre manufacturers still lag

behind their global counterparts in terms of product differentiation.

Global tyre makers offer a wide change of products like tyres with pressure warning

systems, run flat tyres, eco-friendly tyres and energy efficient tyres.

d. Various types of Tyre segment

Tyres by Type

The Indian tyre industry produces the complete range of tyres required by the Indian

automotive industry, except for aero tyres and some specialised tyres. Domestic

manufacturers produce tyres for trucks, buses, passenger cars, jeeps, light trucks, tractors

(front, rear and trailer), animal drawn vehicles, scooters, motorcycles, mopeds, bicycles

and off-the-road vehicles and special defence vehicles.

The scenario in India stands in sharp contrast to that in the world tyre market, where car

tyres (including light trucks) have the major share (88%) by volume followed by truck



12/60

Tyres (12%). In India, however, passenger car tyres have a mere 17% share of the overall

tyre market.

Truck and Bus Tyres

The truck and bus tyre segment accounted for 19% of tyres produced in India in FY2003.

Every truck/bus manufactured generates a demand for seven tyres (six regular and one

spare) as against three in the case of two-wheelers and five for passenger cars. In

addition, the price of a truck tyre is significantly higher than that of a passenger car tyre

(roughly 10 times) or a motorcycle tyre. Thus the demand multiple emanating from the

commercial vehicle segment is highest in value terms.

Given the regular use and heavy wear and tear of truck and bus tyres, the demand fromthe replacement market in this segment worked out to 68% of the total demand for truck

and bus tyres in FY2003; the OEM demand accounted for around 9% the same year. With

the Indian manufacturers of cross-ply tyres focusing on the export market, this segment

accounts for around 22% of the demand for truck and bus tyres.

Passenger Car Tyres

The passenger car tyre segment accounted for 17% of all tyres produced in India in

FY2003. With passenger car production witnessing a growth of 12% in FY2003 over the

previous year, OEM demand accounted for about 33% of the total sales that year. The

replacement market accounted for around 63% of the total sales of passenger car tyres in

FY2003. Exports accounted for 4% of the total passenger car tyre demand in FY2003.

With the stock of cars increasing, replacement demand is likely to continue.

Motorcycle Tyres

Motorcycles accounted for 76% of two-wheelers sold in the domestic market in FY2003.

Motorcycle tyres constitute the largest segment of the domestic tyre industry (29% of

total tyre demand in FY2003). The replacement market accounted for around 49.8% of

the total motorcycle tyres sold in FY 2003, while OEM demand accounted for around

50%.



13/60


14/60

The replacement market, including State transport undertakings and Government buying,

accounted for around 59% of the total tyre demand in FY2003. The demand in the

replacement market depends on the vehicle population, the level of economic activity, life

of the products transported, kilometreage per vehicle, the price of the tyres and the

quality of the existing road infrastructure. Additionally, the replacement market, which

offers better margins, is extremely competitive. The replacement market is dominated by

the truck and buses segment, which accounted for 22% of all tyre sales in the replacement

market in FY2003.The large size of the replacement in turn is determined by the interplay

of various factors as discussed below:

The replacement demand may be lower because of longer replacement intervals and

lower business mileage if the economic activity slows down.

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

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

replacement demand.

Stricter enforcement of the MV Act, which seeks to prevent overloading of

vehicles, will result in an increase in the life of tyres and thus impact replacement

demand negatively. Applying a new tread or "re-treading" can extend the life of the tyre at a

significantly lower cost, thereby lowering replacement demand. In India, re-

treading finds greater acceptance in the commercial segment.

Radicalization of tyres is likely to result in lower replacement demand. While car

radicalization in the country has reached a level of 65%, truck and bus

radicalization stands at just 2-10%. Poor road and support infrastructure as well as

traditional vehicle designs act as a barrier to radicalization in the commercial

vehicle segment. Radial technology for trucks and buses would help increase

operating efficiencies by delivering better mileage and minimizing wear and tear.

According to ATMA, even if only 25% of the truck and bus segment is radicalized,

the savings in fuel costs would be around Rs. 7,500 million.



15/60

Introduction of tubeless tyres in the passenger car segment is also likely to affect

replacement demand adversely

Introduction of eco-friendly radial tyres such as hyper-bonding silica technology

in the passenger car segment may affect replacement demand adversely.

Exports

In the light of the prevailing domestic market situation, most of the tyre manufacturers

have taken to exports to reduce inventory build-ups. In FY2003, Indian tyre exports stood

at Rs. 10.8 billion (10% of the total industry) in value terms and 3.1 million in unit terms

(6.5% of total production). Indian companies have currently entered into sourcing

agreements (for tyres) with neighboring countries. For instance, Ceat and J K Tyres have

sourcing agreements with tyre producers in Sri Lanka and China. This is likely to have a

positive impact on tyre exports from India.

Market Players

Some of the major players in the Indian tyre industry are MRF, Ceat, JK Industries,

Apollo Tyres, Bridgestone India, Goodyear India, Falcon Tyres and TVS Srichakra. The

tyre industry in India is fairly concentrated, with the sample of eight companies

JKs Brief Profile

a. About JK

Jk Tyre and 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 private groups in India, Jk Tyre and Industries is committed

to self reliance and follows an ethic that views customer satisfaction as an index ofachievement.

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 divisions:

The advent of JK Organization on the industrial landscape of India almost synchronizes

with the beginning of an era of industrial awareness - an endeavor for self reliance and



16/60

the setting up of a dynamic Indian industry. This was way back in the middle of the 19th

century. And the rest that followed is history.

CORE VALUES:

JK Organization has been a forerunner in the economic and social advancement of India.

It always aimed at creating job opportunities for a multitude of countrymen and to

provide high quality products. It has striven to make India self reliant by pioneering the

production of a number of industrial and consumer products, by adopting the latest

technology as well as developing its own know-how. It has also undertaken industrial

ventures in several other countries.

JK Organization is an association of industrial and commercial companies and charitable

trusts. Its member companies, employing nearly 50,000 persons are engaged in the

manufacture of a variety of products and in diverse fields of commerce.

Trusts are devoted to promoting industrial, technical and medical research, education,

religious values and providing better living and recreational facilities. With the spirit of

social consciousness uppermost in mind, J.K. Organization is committed to the cause of

human advancement.

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

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

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

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



17/60

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

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 as wellas the first to manufacture Synthetic Fibre Machinery FibretechEngineers & 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.



18/60

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 launchedBanmore Tyre Plant (BTP) crossed 100 TPD.

1995 Mercedes Benz Launched on JK steel radials

First tyre manufacturer in the world to get ISO 9001

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

Introduced steel wheels.

1997 Awarded the National Export Award for 96-97.

Vikrant Tyres (VTL) acquired.

India's first H rated tyre launched.

Only Tyre manufacturer to get 'E' Mark certification.

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

1998 First tyre manufacturer in the world to get QS 9000.

Awarded CAPEXIL's highest export award for 1997-98.



19/60

1999 Synergy with VTL in procurement, marketing and production flexibility.

Completion of state of the art modernisation of truck radials.

JK Tyres ranked 16th largest Tyre Company in the world.

ISA - 14000 accredition for environment & safety.

2000 JK introduced National Go-Karting Championships.

2001 Recieved CAPEXIL award.J.K. Industries recieved FOCUS LAC export award for the year 1999-2000.

Commendation Certificate of CII Exim.IInd National Go-Karting Championships held.

JK Tyre's No 1 market position

In what is being considered as a landmark decision in the highly competitive Indian tyre

industry, the Advertising Standards Council of India (ASCI) has upheld JK Industries

Ltd's claim of being India's No 1 tyre manufacturer in the four-wheeler tyre segment,reaffirming JK's leadership position in the market.

Expressing his happiness over ASCI's judgement, JK Tyre marketing director T K

Banerjee says: ''This is a fabulous example of why all of us need to have faith in bodies

like ASCI. We believe that the process of self-regulation in Indian advertising is working

for both companies and agencies. We also hope that this would encourage various players

to bring superior technology and consumer service standards and claim leadership in a

more healthier and competitive manner.''

The case was started when few competitors filed a complaint with ASCI against JK Tyre's

print advertisement, in which JK Tyre announced its numero uno position in the four-

wheeler tyre segment, quoting production figures compiled by Automotive Tyre

Manufacturer Association and other authentic industry sources.



20/60

But the competitors contradicted the claim, stating the fact that market figures from a

company's annual report should be used as authentic data to claim one's leadership, not

the production figures.

But ASCI considered the case at the Consumer Complaints Council on 23 May 2002 and

upheld JK Tyre's contention that production figures, as compiled by authentic industry

sources and used by JK Tyre to claim its leadership, is a valid and applicable comparison

platform.

Hence, JK Tyre's claim as No 1 tyre manufacturer in India is a perfectly valid and correct

statement. This also reflects ASCI's agreement to JK Tyre's viewpoint that figures, as

stated in the one's annual report, could actually be misleading and could include revenues

from non-tyre-related businesses also.

JK Tyre, pioneers of radial technology in India, is today India's largest manufacturer of

tyres in the four-wheel segment, including tyres for trucks and buses, LCVs, passenger

cars, jeeps, tractors, ADVs and OTRs. After 25 years of pioneering world-class

technologies in India, JK Tyre has recently launched the country's first eco-friendly

coloured tyres as well as steel-belted tractor rear radials.

b. Mission & Vision

Vision:

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

Mission:

a. Be a customer obsessed company

b. No.1 Tyre brand in India

c. Deliver enhanced value at all stakeholders

d. Most profitable Tyre Company in India

e. Enhance global presence through acquisition



21/60

f. Motivated and committed team development for high performance organization

c. Marketing Strategy

Strategic thinking is key to the evolution of successful marketing strategies of JK tyre.

This involves the following analyses:

i. Understanding markets: Strategic perspective of the market requires skilful analysis

of the trend and how they affect the market size and demand for the firms product.

ii. Finding market niches: Price, service, convenience and technology are some of the

niches in Indian market.

iii. Product and service planning: Analysis of the customers promotion of the brand,

both of the firm and competitors, besides an analysis of the situation in which the

customer uses the product.

iv. Distribution: Structural changes in inventory management, mobile distribution are

some of the key factors that are going to affect the distribution process in the Indian

market.

v. Managing for result: With pressure on costs, prices, and margins, marketers will

have to make effective utilization of every rupee spent in marketing.

Market opportunity of JK:

Identification of market opportunity is critical before the management of affirm takes a

decision to launch or diversify in any product area. This involves analysis of the

following:

Size of the market

Marketing strategies and the extent and quality of services rendered by other firm in

the industry.

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a firms

strengths and weakness

Market opportunity



22/60

a. Size of the market

b. How well the market is served

c. Prospective inches

d. Marketing mix required to succeed

e. Core competencies required

Framework of market opportunity analysis

Size of the market:

Sizes of the market are....

I. Demand analysis: is the core aspect of market opportunity.

II. Segmentation analysis: is the process of dividing the market into homogeneous sub

units.

III. Industry analysis:

Ambedkar Institute of Management Studies

Market opportunitySize of the marketHow well the market is servedProspective inchesMarketing mix required to succeedCore competencies required

Demand

Condition

Marketsegmentanalysis

Industryanalysis

Competitionanalysis

Trade

analysis

22


23/60

Industry Analysis - Porter's Model

iv. Competitor analysis: analysis of competition how well the market is served.

Marketing mix:

A Marketing mix is the division of groups to make a particular product, by pricing, product,

branding, place, and quality. Although some marketers[who?] have added other P's, such as

personnel and packaging, the fundamentals ofmarketing typically identifies the four P's of

the marketing mix as referring to:


Inter Firm Rivalry: Low The tyreindustry in India is fairly concentrated,

with the top eight companies accountingfor more than 80% of the total

production of tyres

Entry Barriers: High

The entry barriers are high for the tyreindustry. It is a highly capital intensiveindustry. A plant with an annual capacity of

1.5 million cross-ply tyres costs between Rs.4,000 and Rs. 5,000 million. A similiar plant producing radial tyres costs Rs. 8,000million.

Bargaining Power of theSuppliers: High

The tyre industry consumenearly 50% of the natura

rubber produced in thcountry. The price of naturarubber is controlled by RubbeControl Board and thdomestic prices of naturarubber have registered significant increase in recentimes.

Bargaining Power of theBuyers: HighThe OEMs have total controlover prices. In fact, the

OEMs faced with declining profitability have alsoreduced the number ofcomponent suppliers to makethe supply chain moreefficient.

Threat of Substitutes: Low but IncreasingDuring the FY2002, over 1,10,000 passengercar tyres were imported. This constitutes over2% of total radial passenger car tyreproduction in the country. However, with thereduction of peak custom duty, the import oftyres is likely to increase.

23
http://en.wikipedia.org/wiki/Marketerhttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Personnelhttp://en.wikipedia.org/wiki/Packaginghttp://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketerhttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Personnelhttp://en.wikipedia.org/wiki/Packaginghttp://en.wikipedia.org/wiki/Marketing


24/60

1. Product

2. Price

3. Promotion

4. Place

Product

A tangible object or an intangible service that is mass produced or manufactured on a

large scale with a specific volume of units. Intangible products are often service based

like the tourism industry & the hotel industry. Typical examples of a mass produced

tangible object are the tyre. A less obvious but ubiquitous mass produced service is a

computer operating system.

http://en.wikipedia.org/wiki/Mass_producedhttp://en.wikipedia.org/wiki/Tourism_industryhttp://en.wikipedia.org/wiki/Tourism_industryhttp://en.wikipedia.org/wiki/Hotel_industryhttp://en.wikipedia.org/wiki/Motor_carhttp://en.wikipedia.org/wiki/Motor_carhttp://en.wikipedia.org/wiki/Computer_operating_systemhttp://en.wikipedia.org/wiki/Mass_producedhttp://en.wikipedia.org/wiki/Tourism_industryhttp://en.wikipedia.org/wiki/Hotel_industryhttp://en.wikipedia.org/wiki/Motor_carhttp://en.wikipedia.org/wiki/Computer_operating_system


25/60

Product range:

BIAS

SIZE TYPE

RIB 9.00-2014PR

JET RIB

9.00-2016PR

JET RIB10.00-2016PR JET RIB

JET MILES

SEMILUG

9.00-2014PRTRACK TUF



http://www.jktyre.com/marketing-productrange-farm.htmlhttp://www.jktyre.com/marketing-passenger.htmlhttp://www.jktyre.com/marketing-productrange-lcv.htmlhttp://www.jktyre.com/marketing-productrange-truck-lcv.html


26/60

LUG

NORMAL LOAD8.25-2014PR

JET TRACK

9.00-2014PR JET TRACK


10.00-2016PR JET KING



MODERATE8.25-2014PR

JET TRACK



10.00-2016PR JET CLASSIC

10.00-2016PR TRACK 39 & DX

10.00-2016PR TRACK 39 DX

RADIAL

SIZE TYPE

LUG

9.00-2016PR JET STEEL-JDH

10.00-2016PR JET STEEL-JDC

11.00-2016PR JET STEEL-JDC

SEMILUG

09.00-2016PR JET WAY JUC

10.00R2016PR JET WAY JUC

11.00R2016PR JET WAY JUC

RIB

9.00R2014/16PR JET WAY JUC

10.00R2016PR JET WAY JBR

11.00R2016PR JET WAY JUH

12.00R2018PR JET WAY JUH


HEAVY

SUPER HEAVY


27/60

Price

The price is the amount a customer pays for the product. It is determined by a number of

factors including market share, competition, material costs, product identity and the

customer's perceived value of the product. The business may increase or decrease theprice of product if other stores have the same product.

Place

Place represents the location where a product can be purchased. It is often referred to as

the distribution channel. It can include any physical store as well as virtual stores on the

Internet.

Promotion

Promotion represents all of the communications that a marketer may use in the

marketplace. Promotion has four distinct elements - advertising,public relations, word of

mouth and point of sale. A certain amount of crossover occurs when promotion uses the

four principal elements together, which is common in film promotion. Advertising covers

any communication that is paid for, from television and cinema commercials, radio and

Internet adverts through print media and billboards. One of the most notable means of

promotion today is the Promotional Product, as in useful items distributed to targeted

audiences with no obligation attached. This category has grown each year for the past

decade while most other forms have suffered. It is the only form of advertising that

targets all five senses and has the recipient thanking the giver. Public relations are where

the communication is not directly paid for and includes press releases, sponsorship deals,

exhibitions, conferences, seminars or trade fairs and events. Word of mouth is any

apparently informal communication about the product by ordinary individuals, satisfied

customers or people specifically engaged to create word of mouth momentum. Sales staff

often plays an important role in word of mouth and Public Relations.

Broadly defined, optimizing the marketing mix is the primary responsibility of

marketing. By offering the product with the right combination of the four Ps marketers

can improve their results and marketing effectiveness. Making small changes in the

marketing mix is typically considered to be a tactical change. Making large changes in

http://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Placehttp://en.wikipedia.org/wiki/Promotionhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Word_of_mouthhttp://en.wikipedia.org/wiki/Word_of_mouthhttp://en.wikipedia.org/wiki/Point_of_salehttp://en.wikipedia.org/wiki/Pricehttp://en.wikipedia.org/wiki/Placehttp://en.wikipedia.org/wiki/Promotionhttp://en.wikipedia.org/wiki/Advertisinghttp://en.wikipedia.org/wiki/Public_relationshttp://en.wikipedia.org/wiki/Word_of_mouthhttp://en.wikipedia.org/wiki/Word_of_mouthhttp://en.wikipedia.org/wiki/Point_of_sale


28/60

any of the four Ps can be considered strategic. For example, a large change in the price,

say from $19.00 to $39.00 would be considered a strategic change in the position of the

product. However a change of $131 to $130.99 would be considered a tactical change,

potentially related to a promotional offer.

The term "Marketing Mix" however, does not imply that the 4P elements represent

options. They are not trade-offs but are fundamental marketing issues that always need to

be addressed. They are the fundamental actions that marketing requires whether

determined explicitly or by default.

d. SWOT Analysis

STRENGTHS

Very large distribution

channel

Reasonable price

Effective employee in JK

Economies of scale due to optimum capacity utilization

Collaboration with Vikrant, know for their technological superioritybringing together performance, economy, durability and comfort.

Strong financial positions

WEAKNESSES

Less Brand Awareness

Less concern about small car segment

OPPORTUNITIES

A burgeoning work force and growing middle class population

High growth potential for its exports as demand for JK tyre in Europe

increasing.


Strong brand image

Being quality oriented rather than quantity

oriented

Large product width & line (product mix)

28


29/60

Indian customers are mainly value buyers demanding a better overall package.

JK is poised in a better position than other players in the market to capitalise

on this opportunity

Entry of new players with newer and better technologies in the small car tyre

segment

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

e. Organizational structure of JK Tyre


THREATS

29


30/60

Objectives of the study

To find out market share of JK Tyres.

To understand the marketing strategy of JK Tyres.

To focus on the Marketing mix of JK tyre


Objectives of the

study

Need for the

study

Limitation of the

study

Research

Methodology of

the study

30


31/60

To evaluate the limitations of JK tyre.

To analyze the customers needs regarding the product and policies formulated by

the company.

To find out the brand image of JK tyre

Need for the study

Management is like a coin having two sides. One is the theoretical part and second is the

practical part. In the theoretical part of management we learn in our classroom from the

lectures, seminars, group discussions that are arranged from time to time.

To know the practical aspect of management a practical training is provided to the

students. The main idea behind practical training is to bring the management students

face to face with the actual environment of practical management so that he/ she will be

able to apply theory to practical situation before finally moving into the professional

world to show the efficiency and capability.

The project study focused on JK tyre as a product and the subject is to understand the

mind set of different customers about the product. Being a student of marketing

management, the inquisitiveness to peep on practical side of consumer perception

promoted in study.

In this study efforts have been made to prepare the report as realistic as possible.


The project surfers from the following limitations due to the inherent and restrictive

nature of the study undertaken:



32/60

Due to constraints of time, money and other resources applicable to this

study.

This study is confined to only a few specified areas of and is not

comprehensive study of the customers of JK tyre all over Kolkata and

North 24 Pgs.

This study is restricted only to sample space chosen for the study.

The areas covered under the surveys are: Dunlop, Agarpara, Chiriamore,

Panihati, Titagarh, Khardah,

Research Methodology of the study

SAMPLE SIZE: 500 trucks

METHOD OF COLLECTION: MARKET SURVEY

DATA TYPE:

For the above study both type of data were used such as primary data and secondary data.

For primary data different areas of Kolkata were being visited and for the secondary data

internet & reference books have been used.

Collecting data from market through Fitment survey of Trucks on road. Working on the data.

Graphical representation of results.

Analyzing the graph and driving further enquiries.



33/60

Data analysis & Interpretation

Exhibit-3.1Table showing market share in RIB & SEMI LUG tyre

Table-3.1

NAMENO. OF RIB & SEMI

LUG TYRES% IN TOTAL RIB &SEMI LUG TYRES

% IN TOTAL TYRES



34/60

APOLLO 463 32.47% 13.24%

BIRLA 122 8.56% 3.49%

CEAT 185 12.97% 5.29%

J.K. 415 29.10% 11.87%

MRF 206 14.45% 5.89%

GOOD YEAR 20 1.40% 0.57%

OTHERS 15 1.05% 0.43%

TOTAL 1426 100.00% 40.79%

Fig-3.1(a) Fig-3.1(b)

MKT SHARE IN RIB & SEMI LUG TYRES(%)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

1

COMPANIES

%O

FTOTALMKTSHA

RE

APOLLO

BIRLA

CEAT

J.K.

MRF

GOOD YEAR

OTHERS

MKT. SHARE OF RIB & SEMI

LUG TYRES

APOLLO

BIRLA

CEAT

J.K.

MRF

GOOD YEAR

OTHERS

Interpretation:From the above table it is shown that in Rib and Semi lug tyre

segment Appolo is the market leader with 32.47%, followed by JK with 29.10% market

share, MRF with 14.45%, CEAT with 12.97%, Birla with 8.56%, Good Year with 1.40%

and others with1.05% of market shar.

Exhibit-3.2Table showing Market share in LUG tyre

Table-3.2

NAMENO. OF LUG

TYRES% IN TOTAL LUG

TYRES% IN TOTAL TYRES

APOLLO 493 23.82% 14.10%

BIRLA 164 7.92% 4.69%



35/60

CEAT 435 21.01% 12.44%

J.K. 588 28.41% 16.82%

MRF 215 10.39% 6.15%

GOOD YEAR 110 5.31% 3.15%

OTHERS 65 3.14% 1.86%

TOTAL 2070 100.00% 59.21%

Fig-3.2(a) Fig-3.2(b)

MKT SHARE IN LUG TYRES(%)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

1

COMPANIES

%O

FTOTALMKTSHARETYR

APOLLO

BIRLA

CEAT

J.K.

MRF

GOOD YEAR

OTHERS

MKT.SHARE OF LUG TYRES IN %

APOLLO

BIRLA

CEAT

J.K.

MRF

GOOD YEAR

OTHERS

Interpretation: From the above table it is shown that in lug tyre segment JK is the

market leader with 28.41% followed by Appolo with 23.82%,CEAT 21.01%, MRF with

10.39%,Birla with 7.92%, Good Year with 5.31%,and others with1.86%

Exhibit-3.2Table showing Total market share

Table-3.3

NAME TOTAL NO OF TYRES % IN TOTAL

APOLLO 956 27.35%

BIRLA 286 8.18%



36/60

CEAT 620 17.73%

J.K. 1003 28.69%

MRF 421 12.04%

GOOD YEAR 130 3.72%

OTHERS 80 2.29%

TOTAL 3496 100.00%

Fig-3.3(a) Fig-3.3(b)

TOTAL MKT SHARE(%)

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

1

COMPANIES

%O

FTOTAL

MKTSHAR APOLLO

BIRLA

CEAT

J.K.

MRF

GOOD YEAR

OTHERS

TOTAL MKT. SHARE OF TYRES IN %

APOLLO

BIRLA

CEAT

J.K.

MRF

GOOD YEAR

OTHERS

From the above table it is shown that in lug tyre segment JK is the market leader with

28.69% followed by Appolo 27.35% ,Ceat with 17.73% MRF with 12.04%, Birla with

8.18%, Good Year with 3.27% and others are 2.29%.



37/60

Findings

Suggestions

Findings

After taking the feedback of more than 100 customers the study reveals that customers

are fond of different brands in different areas. Like, in Gouripur area almost 70% of

customers prefer BIRLA tyres (especially SAMSON), in Panihati areas customers prefer

JK tyres, where in Dunlop people prefer JK & APOLLO. Not only different choices but

also having different experience on different brands. It is found that many customers



38/60

prefer JKs guaranteed tyres such as JET TRAK 39 and economy class rib tyre

VIKRANT TRACK KING for its milage & reliability but it is also true that many other

brands such as JET MILES, JET PACE, JET SUPER LUG do not have a strong

place in customers mind. The study shows that JKs strong contender is APOLLO whos

quality was appreciated by many. APOLLOs XT-7 & LOAD STAR SUPER are very

much preferred. In guaranteed tyres BIRLAs SAMSON is the main contender of JK.

Incase of normal loaded trucks customers mostly rely on CEAT but in over load

APOLLO & JK are reliable. Certainly MRF has not a good reputation at all.

1. JK is the market leader followed by APOLLO.

2. VIKRANT TRACK KING of JK is most used/preferred tyre overall.

3. In economy segment JK has Strong hold but premium segment is dominated byAPOLLO.

4. JK Tyre is having edge breaking problem

Suggestion

1. JK Tyre is doing well in rib segment but they are based in only on one brand

Vikrant. So JK should try to aware to increase the awareness of other brands.

2. Price-Quality relationship needs to improve in premium rib and lug tyre

segment.

3. Keep eye to reduce the cost of manufacturing. So price will further reduced and

competition will increased.

4. The company should look after its tread erosion/breaking problem.



39/60

Consumer Buying Behaviour

Consumer buying behavior is influenced by the culture and subculture. Habits, likes and

dislikes of the people belonging to a particular culture or subculture can affect the

marketing efforts of a firm to a great extent. The social class to which the individual

belongs tells about the type of products the individual prefers. Other factors that influence

the buying behavior are social factors like reference group and family, personal factors

like the age, life cycle and occupation, and psychological factors like motivation,

perception and attitudes of the customers.


Unit-2: CUSTOMERS PREFERENCE ON DIFFERENT BRANDS AND TYRE COMPANIES IN TRUCK SEGMENT.

Consumer Buying behaviour


Objective of the study

Limitation Of the study

Methodology

39


40/60

Buying roles and buying decision constitute consumers decision-making behavior. A

customer can adapt various buying roles like initiator, influencer, decider, buyer, preparer,

maintainer and disposer in purchasing and using the products. Buying behavior helps

marketers learn the intensity and degree of involvement of customers in purchasing the

products. Customer buying behavior is broadly classified into three types. Extensive

problem solving buying behavior is exhibited when a customer buys high involvement,

expensive and less frequently purchased products. Consumers are involved in routine

problem solving decision-making process, when they purchase routinely purchased, low

cost products. Variety seeking behavior is seen when customers purchase low-

involvement products.

Customers usually go through five stages in arriving at a purchase decision, though it

might not be so in all the cases. In the first stage, the customer identifies an unsatisfied

need in him. In the second stage, customers collect the information about the product and

available brands through personal sources, commercial sources, public sources or

experiential sources. In the third stage, the customers evaluate all the alternatives with the

help of available information. In the fourth stage, the customer makes a purchase

decision. And finally in the fifth stage, he experiences post purchase satisfaction or

dissatisfaction.

Post purchase usage and disposal of the product is also of equal importance to the

marketer, as it can save cost and time of producing as well as help in protecting the

environmental equilibrium.

Factors influencing the behaviour of buyers.

Consumer behaviour is affected by many uncontrollable factors. Just think, what

influences you before you buy a product or service? Your friends, your upbringing, your

culture, the media, a role model or influences from certain groups?

Culture is one factor that influences behaviour. Simply culture is defined as our attitudes

and beliefs. But how are these attitudes and beliefs developed? As an individual growing

up, a child is influenced by their parents, brothers, sister and other family member who



41/60

may teach them what is wrong or right. They learn about their religion and culture, which

helps them develop these opinions, attitudes and beliefs (AIO). These factors will

influence their purchase behaviour however other factors like groups of friends, or people

they look up to may influence their choices of purchasing a particular product or service.

Reference groups are particular groups of people some people may look up towards to

that have an impact on consumer behaviour. So they can be simply a band like the Spice

Girls or your immediate family members. Opinion leaders are those people that you look

up to because your respect their views and judgments and these views may influence

consumer decisions. So it maybe a friend who works with the IT trade who may influence

your decision on what computer to buy. The economical environment also has an impact

on consumer behaviour; do consumers have a secure job and a regular income to spend

on goods? Marketing and advertising obviously influence consumers in trying to evoke

them to purchase a particular product or service.

Peoples social status will also impact their behaviour. What is their role within society?

Are they Actors? Doctors? Office worker? And mothers and fathers also? Clearly being

parents affects your buying habits depending on the age of the children, the type of job

may mean you need to purchase formal clothes; the income which is earned has an

impact. The lifestyle of someone who earns 250000 would clearly be different from

someone who earns 25000. Also characters have an influence on buying decision.

Whether the person is extrovert (out going and spends on entertainment) or introvert

(keeps to themselves and purchases via online or mail order) again has an impact on the

types of purchases made.

Types of buying behaviour.

There are four typical types of buying behaviour based on the type of products that

intends to be purchased. Complex buying behaviour is where the individual purchases a

high value brand and seeks a lot of information before the purchase is made. Habitual

buying behaviour is where the individual buys a product out of habit e.g. a daily

newspaper, sugar or salt. Variety seeking buying behaviour is where the individual likes

to shop around and experiment with different products. So an individual may shop around



42/60

for different breakfast cereals because he/she wants variety in the mornings! Dissonance

reducing buying behaviour is when buyer are highly involved with the purchase of the

product, because the purchase is expensive or infrequent. There is little difference

between existing brands an example would be buying a diamond ring, there is perceived

little difference between existing diamond brand manufacturers.

How do customers buy?

Research suggests that customers go through a five-stage decision-making process in any

purchase. This is summarized in the diagram below:



43/60

This model is important for anyone making marketing decisions. It forces the marketer to

consider the whole buying process rather than just the purchase decision (when it may be

too late for a business to influence the choice!)

The model implies that customers pass through all stages in every purchase. However, in

more routine purchases, customers often skip or reverse some of the stages.

For example, a student buying a favourite hamburger would recognize the need (hunger)

and go right to the purchase decision, skipping information search and evaluation.

However, the model is very useful when it comes to understanding any purchase that

requires some thought and deliberation.

The buying process starts with need recognition. At this stage, the buyer recognizes a

problem or need (e.g. I am hungry, we need a new sofa, I have a headache) or responds to

a marketing stimulus (e.g. you pass Starbucks and are attracted by the aroma of coffee

and chocolate muffins).

An aroused customer then needs to decide how much information (if any) is required.

If the need is strong and there is a product or service that meets the need close to hand,

then a purchase decision is likely to be made there and then. If not, then the process of

information search begins.

A customer can obtain information from several sources:

Personal sources: family, friends, neighbors etc

Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-

of-sale displays

Public sources: newspapers, radio, television, consumer organizations; specialist

magazines

Experiential sources: handling, examining, using the product

The usefulness and influence of these sources of information will vary by product and by

customer. Research suggests that customers value and respect personal sources more

than commercial sources (the influence of word of mouth). The challenge for the



44/60

marketing team is to identify which information sources are most influential in their

target markets. In the evaluation stage, the customer must choose between the alternative

brands, products

Post-purchase evaluation - Cognitive Dissonance

The final stage is the post-purchase evaluation of the decision. It is common for

customers to experience concerns after making a purchase decision. This arises from a

concept that is known as cognitive dissonance. The customer, having bought a product,

may feel that an alternative would have been preferable. In these circumstances that

customer will not repurchase immediately, but is likely to switch brands next time.

To manage the post-purchase stage, it is the job of the marketing team to persuade thepotential customer that the product will satisfy his or her needs. Then after having made a

purchase, the customer should be encouraged that he or she has made the right decision.


Indian consumers are knowledgeable.

They are tech savvy.

Indian consumers are literate.

Most of the Indian are middle class.

Standard of living improved.

Rational and think in a linear manner.

They can explain their thought and behaviour.

Think in words.

OBJECTIVE

The objective of the project was solely to evaluate preference level of JK tyre

among the minds of customers in respect of certain important factors like

goodwill, acceptance, satisfaction etc.

To assess the consumer perception

To understand the factors this motivates the customers for buying.



45/60

To understand the satisfaction level of the customers.


The sample size of 100 respondents was too small for generalization.

The survey was restricted only to Kolkata.

The duration of the study is only 45 days, due to the reason the study may not

give full fledged information to the Media Planning Group.

Some of the respondents were reluctant to give the right information.

Methodology of the study

TYPE OF STUDY:

Study is partly descriptive and partly exploratory. It is deceptive as it is concerned with

the descriptions of the variables in the problem model, i.e. what variables or factors

constitute customer satisfaction, and what additional variables or factors could be

included, to constitute an acceptable the present customer satisfaction package or to

increase the degree of satisfaction of the customers from delight to ecstasy. It is

exploratory as it is concerned with exploring and discovering the satisfaction levels and

the reasons for dissatisfaction, if any in general.

DATA COLLECTION METHOD:

PRIMARY DATA:

The primary data is collected through survey research by conducting personal interviews

with the customers.

RESEARCH TOOLS:

The customers are administered a carefully prepared, well thought out and structured

questionnaire, which consists of open- ended but mostly be close questions, which

includes multiple choice questions, Dichotomous questions.

SAMPLING DESIGN:

The sample size is 100.

Sampling areas: Kolkata

SECONDARY DATA:

The data has been collected from various Magazines, Books and company Websites.



46/60Ambedkar Institute of Management Studies

Data analysis & interpretation

46


47/60

EXHIBIT-2.1(a)Table showing Brand preference for front wheel as per

respondents

Table-2.1(a)Brand No. Of Respondents Per Cent

JK 31 31%

APPOLO 28 28%

MRF 8 8%

BIRLA 23 23%

OTHERS 10 10%

TOTAL 100 100%

Source- Primary data

Fig-2.1(a)

Brand preference for front w heel

31%

28%

8%

23%

10%

JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation: From the above table it is shown that majority of the respondents [31]

prefer JK tyer for front wheel because of smooth driving. 28% of respondents preferAppolo tyre for better mileage. 8% of respondents prefer MRF tyre for quick service.

23% of the respondents prefer Birla tyre for better claim policy. 10% of the respondents

prefer other brands.



48/60

EXHIBIT-2.1(b)Table showing Brand preference for rear wheel as per

respondents

Table-2.1(b)Brand No. Of Respondents Per Cent

JK 28 28%

APPOLO 18 18%

MRF 10 10%

BIRLA 27 27%

OTHERS 17 17%

TOTAL 100 100%


Fig-2.1(b)

Brand preference for rear wheel

28%

18%

10%

27%

17%JK

APPOLO

MRF

BIRLA

OTHERS

Interpretation:From the above table it is shown that majority of the respondents [28%]

prefer JK tyer for rear wheel because of smooth driving. 18% of respondents prefer

Appolo tyre for better mileage.10% of respondents prefer MRF tyre for quick service.

27% of the respondents prefer Birla tyre for better claim policy. 17% of the respondentsprefer other brands.



49/60

EXHIBIT-2.2Table showing Best brand as per respondents

Table-2.2

Brand No. Of Respondents Per Cent

JK 29 29%

APPOLO 27 27%

MRF 5 5%

BIRLA 27 27%

OTHERS 12 12%

TOTAL 100 100%


Fig-2.2

Best brand as per respondents

29%

27%5%

27%

12%

J K

APPOLO

MRF

BIRLA

OTHERS

Interpretation:From the above table it is shown that majority of the respondents [29%]

prefer JK tyer because of smooth driving, better quality and reasonable price, etc. 27%

of respondents prefer Appolo tyre for better mileage, good appearance.5% ofrespondents prefer MRF tyre for quick service, flexibility. 27% of the respondents prefer

Birla tyre for better claim policy, load capacity. 12% of the respondents prefer other

brands.



50/60


51/60

EXHIBIT-2.4Table showing Qualities of selected brand as per respondents

Table-2.4

Particular No. Of Respondents Per Cent

SERVICE 24 24%

LESS EROSION 16 16%

CLAIM 31 31%

MILEAGE 19 19%

OTHERS 10 10%

TOTAL 100 100%


Fig-2.4

Interpretation: 31% of the respondents prefer the brand for better claim, 24% of the

respondents prefer the brand for better service, 19% of the respondents prefer the brand

for better mileage, 16% of the respondents prefer the brand for less erosion and 10%of the respondents prefer the brand for other reason.


Quality of selected brand as per res pondents

24%

16%

31%

19%

10%

SERVICE

LESSEROSION

CLIAM

MILLAGE

OTHERS

51


52/60

EXHIBIT-2.5Table showing Best claim policy of selected brand as per

respondents

Table-2.5Brand No. Of Respondents Per Cent

JK 19 19%

APPOLO 30 30%

MRF 17 17%

BIRLA 23 23%

OTHERS 11 11%

TOTAL 100 100%


Fig-2.5

Interpretation: From the above table it is shown that 30% of the respondents prefer

Appolo for better claim policy, 23% of the respondents prefer Birla, 19% of the

respondents prefer JK tyre, 17% of the respondents prefer MRF and 11% of the

respondents prefer other brands for better claim policy.


Best claim policy of selected brand as pe r r espondents

19%

30%

17%

23%

11%

JK

APPOLO

MRF

BIRLA

OTHERS

52


53/60

EXHIBIT-2.6Table showing Best claim policies of JK as per respondents

Table-2.6Particular No. Of Respondents Per Cent

QUICK 19 19%

MORE FACILITY 20 20%

RELIABLE 17 17%

NO PENDING 21 21%

GURANTEE 23 23%

TOTAL 100 100%


Fig-2.6

Interpretation:From the above table it is shown that 23% of the respondents prefer JKs guarantee policy, 21% of the respondents prefer no pending policy, 20% of the

respondents prefer more facility, 19% of the respondents prefer quick policy, 17% of the

respondents prefer more reliable policy.


Best claim policy as per respondents

19%

20%

17%

21%

23% QUICK

MORE FACILITY

RELIABLE

NO PENDING

GURANTEE

53


54/60

EXHIBIT-2.7(a)Table showing Brand preferred for heavy load capacity

Table-2.7(a)

Brand No. Of Respondents Per Cent

JK 26 26%

APPOLO 18 18%

MRF 7 7%

BIRLA 29 29%

OTHERS 20 20%

TOTAL 100 100%


Fig-2.7(a)

Interpretation: From the above table it is shown that 29% of the respondents preferBirla for heavy load capacity, 26%of the respondents prefer JK, 20% of the respondents

prefer other brand, 18% of the respondents prefer Appolo tyre and 7% of the respondents

prefer MRF tyre for heavy load capacity.


Brand prefered for heavy load capacity

26%

18%

7%

29%

20% JK

APPOLO

MRF

BIRLA

OTHERS

54


55/60

EXHIBIT-2.7(b)Table showing Brand preference for medium load capacity

Table-2.7(b)Brand No. Of Respondents Per Cent

JK 27 27%

APPOLO 26 26%

MRF 8 8%

BIRLA 14 14%

OTHERS 25 25%

TOTAL 100 100%


Fig-2.7(b)

Interpretation: From the above table it is shown that 27% of the respondents prefer JK

tyre for medium load capacity, 26% of the respondents prefer Appolo tyre, 25% of the

respondents prefer other brand, 14% of the respondents prefer Birla and 8% of therespondents prefer MRF for medium load capacity.


Brand prefered for medium load capacity

27%

26%8%

14%

25%JK

APPOLO

MRF

BIRLA

OTHERS

55


56/60

EXHIBIT-2.7(c)Table showing Brand preference for normal load capacity

Table-2.7(c)Brand No. Of Respondents Per Cent

JK 24 24%

APPOLO 23 23%

MRF 10 10%

BIRLA 23 23%

OTHERS 20 20%

TOTAL 100 100%


Fig-2.7(c)

Interpretation: From the above table it is shown that 24% of the respondents prefer JKtyre for normal load capacity, both 23% of the respondents prefer Appolo and Birla, 20%of the respondents prefer other brand and 10% of the respondents prefer MRF for normalload capacity.


Brand prefered for normal load capacity

24%

23%

10%

23%

20% JK

APPOLO

MRF

BIRLA

OTHERS

56


57/60

EXHIBIT-2.8Table showing Motivating factors behind the level of

satisfaction

Table-2.8Particular No. Of Respondents Per Cent

HANDLING 13 13%

APPEARANCE 28 28%

TRACTION 16 16%

RIDE 16 16%

DURABILITY 27 27%

TOTAL 100 100%


Fig-2.8

Interpretation: From the above table it is shown that 28% of the respondents are

satisfied with the appearance of the tyre, 27% of the respondents are satisfied with thedurability of the tyre, both 16% of the respondents are satisfied with the traction and ride

of the tyre and 13% of the respondents are satisfied with the handling capacity of the

tyre.


Factors affecting behind the level of satisfaction as per

respondents

13%

28%

16%

16%

27% HANDLING

APPEARANCE

TRACTION

RIDE

DURABILITY

57


58/60


59/60

Findings

1. Customers are loyal to different brands in different areas.2. In claim policy JK Tyre beat others by mile.

3. Durability of JK Tyre is satisfactory

Suggestions

1. Some customers are not satisfied with the claim policies as it is not properly clear to

the customers why the claim has been rejected.

2. Today more people prefer guaranteed tyres like JET TRAK 39, BIRLASAMSON so JK can modify its guaranty policy to attract more customers.

3. Need to increase relationship with customers

Conclusion

JK is one of the best Tyre manufacturing companies in India. Where the

improvement is required is the relationship with its potential customer. Also

in some segment JK has not any strong hold compare to APOLLO, CEAT,

BIRLA and others. So it can further increase its market share through

customer relationship program and brand awareness strategy.



60/60

BIBLIOGRAPHY

Marketing management, Rajan Saxsena

Marketing management, Philip Kittler

www.indiacar.net

www.jktyre.com

www.businessstandard.com
http://www.indiacar.net/http://www.jktyre.com/http://www.businessstandard.com/http://www.indiacar.net/http://www.jktyre.com/http://www.businessstandard.com/

Documents

13823112-jk-project-110204044415-phpapp02