Dissertation

ON

SALES AND DISTRIBUTION SYSTEM AT

SUBMITTED TO SUBMITTED BY

MR. ADARSH ARORA AFZAL LODHIFaculty Guide B.Com (H)

Enr. No.A3104608040

AMITY COLLEGE OF COMMERCE & FINANCE AMITY UNIVERSITY, UTTAR PRADESH

ACKNOWLEDGEMENT

I acknowledge the sincere assistance provided to me from several rather

unexpected quarters during the course of execution of this study. It would be a

mammoth task to place on record my gratitude to each and every one of them but a

whole hearted attempt would be made nevertheless, least I be branded ungrateful.

I am very thankful to Mr. AdarshArora, Faculty Guide, ACCF, Amity

University, Noida, U.P. for her valuable guidance and support at all time.

AFZAL LODHI

EXECUTIVE SUMMARY

The automotive industry is an extremely reliable indicator of

economic growth; quite obviously, its growth boosts the economy’s

performance.

In this report we study how two big players in the Indian automotive

sector, namely TATA Motors and Hyundai Motors India manage their

sales and distribution system, the pace of growth we had mentioned earlier

led us to select this sector and these companies as they are among the

best performers.

While one company was a truck manufacturer until the early nineties

and the other a late entrant in the mid nineties as a subsidiary of a Korean

Industrial conglomerate. We felt there would be a big diversity between

both these companies in the distribution and sales, diversity in the form of

models and structures.

Part A of the project is data collated from mainly secondary sources

but it serves as the groundwork, giving the reader a good idea of the

company we are studying. Part B has all the data and findings we have

collected on the field, we have interviewed dealers of both these

companies and also company sources. We had circulated questionnaires

To understand the system better and also get an idea of what all the

respondents thought of the system.

We have given certain recommendations based on the data we have

assimilated and also the conclusions have been based on the same.

Contents:

Title:

1. Executive Summary

2. Methodology

a) Sector and Players

b) Information Sources

c) Data Collection Tools

d) Limitations

3. Company Background

1. Brief History

2. Year of Establishment

3. Turnover and other financials

4. Product Mix

5. Market Share

6. Area of operation

4. Findings

5. Data Analysis

6. Conclusion

7. Recommendations

8. Annexure

9. Bibliography

Methodology

A Sector & Players

The sector that we chose for the project is the Automobile sector.

We chose this particular sector because the India automobile

sector has seen a tremendous growth rate over the past few years. The

investors have gained confidence over the years in the Indian automobile

market especially after the process of globalization and reforms in the

economy is firmly on track.

Another reason for choosing this sector was that it covers all the 3

aspects i.e. Distribution network, Service network and Sales functioning.

The players (companies) chosen for study are Hyundai Motors

and TATA Motors. Both the companies are leaders in the market and both

are renowned for making quality cars.

We have done an in depth study of the distribution networks the

service networks and the sales functions.

B Information sources

Primary sources

The primary source of information has been the dealers of both the

companies. They have provided us all data of the distribution, sales and

after sales network in their capacity as channel partners of the concerned

companies.

Secondary sources

Various sources such as company URLs, Internet, magazines and relevant

journals have been used. All information retrieved from such sources has

been appropriately classified in the bibliography.

C Data collection tools

The two tools we have used for data collection in this report are:

a: Discussion guidelines

b: questionnaires

Samples of both these can be found in the annexure

D: Limitations

Some information was not provided to us by the company citing it as

confidential. Like how much profit margin they keep.

Time constraint

Most interviews with the company sources have been quite short, limiting

the information we could gather due to the demands on their time.

Company Background

A) History

Hyundai Motor India Ltd. was established in 1996, and is a

subsidiary of the giant South Korean multi national, the Hyundai Motor

Company. It is Korea's top automobile manufacturer, with it sales revenue

touching 8.24 billion in 1997. The Santro is steadily capturing the Indian

market, and giving a strong competition to its rivals in the same segment.

It's success story is an example of a profitable Indian - Korean partnership

where Indian skills and workmanship combine with Korean design and

technology to produce one of the best cars.

The Hyundai Santro has been designed and developed in India at the

integrated auto-manufacturing unit at Irrungattukotai near Chennai. This

plant is capable of producing 1, 20,000 cars and 1, 30,000 engine and

transmission systems annually. It also has in built facilities for the

manufacture of critical components. It is planned to invest another $3

billion in this facility by the year 2011.

The Company has set up more than 70 dealer workshops that are

equipped with the latest technology, machinery, and international quality

press, body and paint shops, across the country, thereby providing a one-

stop shop for a Hyundai customer. Hyundai also has a fleet of 78

emergency road service cars - specially equipped Santro that can provide

emergency service to all its customers anytime, anywhere.

:

TATA Motors Ltd is subsidiary of TATA Sons, the holding company of the

TATA Group, the oldest and among the largest industrial conglomerates of

India.

Established in 1945, TATA Motors entered into collaboration with Daimler

Benz of Germany in 1954 to manufacture commercial vehicles. The

collaboration ended in1969.

The company until the nineties was a player only in the commercial

vehicles segment. In the early nineties the company entered the

passenger car market with the TATA Estate and the Sierra, at the same

time the company reentered into an agreement with Daimler Chrysler for

setting up a JV for Mercedes Benz in India.

The tie with Mercedes ended in the mid nineties and the company started

investing in the development of an indigenous car for the mass. Named the

Indica the car was launched 1998; this car was a totally indigenous product

and also the first in the history of the Indian automotive Industry.

In between the company also introduced the TATA SUMO in the utility

vehicle segment; the product went on to be a big success and became the

leader in the segment.

Around the same time the Indica was introduced the company also

introduced the TATA Safari, a SUV which enjoys enormous prestige in the

market today.

The most recent product of the company was the sedan TATA Indigo

which was based on the Indica platform. This product is a bestseller even

after one year of it’s presence in the now extremely competitive Indian

automotive industry.

The company has also developed numerous concept cars such as the

TATA Aria and the Marina.

The company today exports the Indica to countries across the world and

the most notable being the agreement with ROVER U.K for 5,00,000 cars

which are today being sold as the City Rover in the U.K.

The Company has spread its manufacturing facilities across India by

setting up plants at Jamshedpur, Pune and Lucknow.

This is coupled with a nation-wide sales, service and spare parts network.

The Company enjoys a significant demand in export markets like Europe,

Australia, South East Asia, Middle East and Africa. The Company's

vehicles are seen in all the continents.

B) Year of Establishment:

Hyundai Motors

India Ltd.

1996

TATA Motors

Ltd.

1945

C) Financials :

Particulars TATA Motors Hyundai

Turnover* Rs. 1549 Cr Rs 2310 Cr

The turnover for TATA is only for its passenger car unit.

* Source: India Info line & India Car (URLs).

D) Product Mix

All the above cars are a product of Hyundai Motors and are available in the

market.

Indica Indigo

Safari Sumo

All the above cars are a product of TATA motors and are available in the

market.

E) Market Share

TATA Hyundai

B segment 18% 30%

C segment 17% 15%

MUV & SUV 28% 3%

F) Area of operation

Company North East West South

1. TATA motors

2. Hyundai motors

Findings

Distribution structure for Hyundai Motors

Factory/Plant

C&FA C&FA

Dealers

Dealers

Dealers

Dealers

Dealers

Dealers

Distribution structure of TATA Motors

TATA motors does not have any C&F agents. The cars are delivered to the

dealers directly by the company owned transportation facility.

Factory/Plant

Dealers Dealers Dealers Dealers Dealers Dealers

Sales structure of Hyundai

MD

President

Executive Director (Marketing &

Sales)

GM(Sales)

Regional ManagerRegional Manager

Regional Manager

Regional Manager

Sales Manager

Sales Executives

(dealers)

Sales Manager

Sales Executives (Dealers)

Sales Manager

Sales Executives (Dealers)

Sales Manager

Sales Executives (Dealers)

Sales Structure for TATA Motors

ChairmanChairman

Passenger Car Business Unit

Passenger Car Business Unit

Business DevelopmentBusiness

Development

VPVP

GMSales (cars)

GMSales (cars)

DGMSales (UV)

DGMSales (UV)

Commercial Vehicle Division

Commercial Vehicle Division

Engineering Research

centre

Engineering Research

centre

GM ServiceGM

Service

DGM Dealer development

& commercial planning

DGM Dealer development

& commercial planning

Regional Manager

South

Regional Manager

South

Regional Manager

West

Regional Manager

West

Regional Manager

East

Regional Manager

East

Regional Manager

North

Regional Manager

North

Dealer Accounts Manager

Dealer Accounts Manager

DealersDealers DealersDealers DealersDealers

Channel Structure for Hyundai Motors India Limited

The distribution system for Hyundai Motors can be broadly divided into two

tiers:

Tier 1:

The cars are shipped from the factory to the dealer direct by the C&FA.

There is no warehousing at this level.

Tier 2:

The cars are transported through train under the RAKE system.

The Hyundai Motors plant is located in Chennai, from where after the

dealer request his order through the order request form. The order is

routed through the regional office to the plant over the company’s ERP

system. Once the allotted car is rolled out, it is stored in the car lot which

has designated areas for each area. The C&FA agent takes over from

there and the cars are loaded in trailers and are transported through road.

However there are two different ways a car is shipped to its required

destination:

1. The conventional Method

2. RAKE Movement.

1. Conventional Method:

The cars are handed over to the C&FA who transports all the cars to the

required destinations. Different C&F agents are contracted for different

regions. The C&FA move all the cars from the factory to the dealers by

trailers.

2. RAKE Movement:

This system is used for the Key regions, namely Delhi and Mumbai. The

Company has constructed a railway terminal within its factory premises

where all the cars required for these markets are loaded onto a separate

train made possible by a contract with Indian Railways. The C&FA for the

market will have his own terminal at the destination where the cars are

unloaded and dispatched to the dealers by trucks.

The logic behind this system is that for these key markets, the volume of

cars required are more than other markets, hence if the cars are to be sent

by truck, it will lead to a shortage of trucks for the other markets. Also the

cost is more viable through such means for such large volumes over long

distances. The company pays for all the transportation costs of the cars.

Financial Terms with Channel partners

Within this network the only channel partners are dealers and C&F agents.

The C&F agents are selected by the company on the basis of their

capacity and ability in transporting the cars and the cost they quote for

their services.

The dealers on the other hand are selected by the company on the basis

of their ability and willingness to invest, their ability to promote sales and

the availability of an appropriate location for the showroom and service

centre on their part.

The company maintains a sincerity deposit of Rs 2.5 lakhs per dealer. This

is to hedge the company’s risks over payment of servicing dues one dealer

owes to another. The other commitment the company expects from the

dealer is setting up of a fully fledged service centre and showroom with

competent personnel.

Since the company does not allow credit on any basis to any dealer for the

stock, the dealers are expected to pay for all cars they order for from the

company and every dealer is expected to maintain a stock of two to three

weeks at any given time of both cars and spares. The required stock is

determined on the basis of the territory the dealer represents. For

example:

In the north region:

A+ Category – Delhi

A Category – Ludhiana/ NOIDA

B Category – Kanpur

C Category – Dehra Dun

All orders are made on an order form which is collected by the company’s

appointed courier agency and the payments are made by the dealers’

banks to the company’s bank ABN AMRO, Chennai through clearing

facilities arranged by the company. This is done in order to remove the

delay in time.

The dealers’ get a return of 3% to 4% per car depending on the model and

variant sold. The return the dealers get on servicing depends on the

amount payable for servicing where the dealer levies a service charge.

The dealers main profits are made on the spare parts they sell.

Sales Targets

The company normally issues targets to all the dealers based on the sales

of the corresponding month of the previous year. The target is also

assigned depending on the regions classified territory.

Due to the company’s export obligations, wherein the Letter of credit is

prepared one month in advance to shipping the cars, the company cannot

possibly default on the shipments. Hence, the target is not based on the

company’s total production but the production apart from the export

obligations.

The production level including exports, for the month once set is divided

between domestic and exports and then a certain target is allotted to each

region. This target though issued to the dealers, is overseen by the

regional sales office.

Order Processing:

Since the plant starts production of a particular car only when a confirmed

order is placed, time is an important element.

The company has an ERP system between all the regional offices and the

plant and the dealer for making the order form and confirming the order will

first have to make the payments for all the cars ordered and then the

regional office will make the necessary transaction over the ERP upon

confirmation of payment from their bank.

Service Network:

All the dealers of the company are equipped with a fully fledged service

centre; however the company also has a number of authorized service

centers in other places, which are operated by the dealers themselves or

by other parties who may not be a dealer.

All spare parts are stored in a warehouse which is operated by the regional

office and all these spare parts are sent from the factory to the service

centers through these warehouses.

At the time of sale the dealer is entitled to Rs 2500 per car as servicing

charges, however if a car sold by one dealer is serviced by another then

the latter is entitled to reimbursement of the amount. This is done through

a reimbursement slip sent to the regional office, which pays it from the

loyalty deposit and later charged upon with other payments.

For Example:

X Hyundai in Delhi sold a Santro to Mr. Shingla who later serviced his car

in Y Hyundai in Kanpur; the servicing charge which X Hyundai had taken

from the customer would be reimbursed to Y Hyundai through the regional

office.

This amount though small, adds up to a lot, for example if a dealer sells

100 cars a month, then he is entitled to Rs 2, 50,000 on this account only.

Hyundai motors also has a 24hours help line number. This facility is

available only in big town at the moment and very less on the highways.

Channel structure for TATA Motors

The distribution network for TATA motors is very simple. There is no C&F

agent involved. After the production of the car the cars are directly

transported to the dealers in the different regions. The transport is done

through TATA itself.

TATA has its manufacturing units in Jamshedpur, Pune and Lucknow.

After the dealer has placed his order to the company through a request

form the cars are allotted to them and loaded in the trailers to be sent off

the dealers.

However here also there are 2 methods of shipping the car.

1. Conventional method

2. By train

1. Conventional method

the cars are loaded onto the trailers from the factory and transported to

different dealers located in the different regions. There are different type of

trailers with capacities to carry 5,7 and 10 cars.

2. By Train

It is very rare that the cars are transported through the trains, if so then

C&F agents are hired for the job. This transportation is done very rarely

and mainly for key regions like Delhi & Mumbai.

This transportation is usually done when there is a high demand in the

market and the transportation by trailers is not able to meet the high

demand of the market.

Financial terms with channel partners

In this network there are no channel partners. The transportation is done

through the company itself and most of the trailers are company owned. If

any C&F agent is required then they are chosen on the basis of their

goodwill and their ability to transport at a pre quoted price.

The dealers are chosen by the company on the basis of their capacity to

invest, experience, existing line of business and most important of all their

reputation in the market. The dealers’ location also is a major factor for

their selection for a TATA dealership.

There is a major misconception that TATA asks for a security deposits

from its dealers. TATA motors do not ask for any security deposit from its

dealers instead they ask them to take a Working Loan from HDFC bank.

This loan amount can vary from dealer to dealer depending on their

location. For a small town like Dehra Dun this loan amount is about 2.5 cr.

The main purpose of this loan is that the dealers can make the payment of

the cars that they take from the company, as the company policy does not

have any credit policy. There is also a benefit in taking this loan. If a dealer

takes this loan then he is charged interest as low as 8% whereas if he

takes a loan from some other bank he is charged as high as 12% to 13 %.

TATA motors have a tie up with HDFC bank exclusively for dealers.

The dealers are expected to keep a stock of two to three weeks at any

given point of time for both spares and cars. The stock is determined on

the basis of the segment a dealer falls into. For example

Category

A upto 1500 cars per annum *

B upto 1200 cars per annum

C upto 900 cars per annum

D upto 600 cars per annum#

* As told to us by the company officials 70% of the dealers fall in the A

category

# As told to us by company officials only 2% to 3% of its dealers fall

in D category.

The dealers get a return of 3% on every car they sell depending upon the

variant sold. These days the company offers the dealers various

promotional schemes for example.

If a dealer sells five petrol Indicas he can win a trip to Bangkok. They also

get sales incentives like on selling a petrol Indica car the dealer gets Rs

1000/- per car and even more on selling a petrol Safari.

The return the dealers get on servicing depends on the amount payable

for servicing where the dealer levies a service charge. Most of the dealer’s

profits are made on selling the spare parts.

Sales Targets

The dealers are normally assigned targets based on their area of operation

and their sales based on the corresponding month of the previous month.

The sales targets are not only assigned keeping in mind the region but

also the festive season and not to forget the financial year. During the

festival season the company assigns little higher targets because this time

of the year is considered very auspicious and people buy cars in this

season. Similarly during Shraad the company assigns low targets to the

dealers as the people don’t buy cars or any form of metal during this time.

In the month of March the company expects the dealers to sell high

volumes because all the allocation of the budget is done in this month and

the company whishes to capitalize on it.

Due to TATA’S export obligation the target is not based on the full

production capacity of the factories.

Service Network

All the dealers are equipped with a fully fledged service center: however

the company has about 450+ service networks which include 152 dealers

and about 300 TATA service centers and TATA service point. The basic

difference between TATA service center and TATA service point is that a

service center can give a guarantee whereas a service point cannot. The

service point is not that well equipped and can only handle emergency

cases like in a highway.

All the spare parts are sent to the dealers from the factories through C&F

agents. The C&F agents are hired only to deliver the spare parts to the

dealers. No C&F agents are involved in other process.

At the time of sale the dealer is entitled to some amount per car as

servicing charges, however if a car sold by one dealer is serviced by

another then the latter is entitled to reimbursement of the amount. This is

done through a reimbursement slip.

TATA motors also have a 24 hour helpline no. This facility is only available

in big towns like Delhi and Mumbai. It is also available in small towns also

but only in a limited area

TATA motors takes good care of its customers by getting a White form a

customer satisfaction form and a sales satisfaction form filled by its

customers. This insures the customer they haven’t made a mistake by

selecting the car.

FINDINGS AND ANALYSIS OF QUESTIONNAIRES

We questioned two dealers each from Hyundai and from TATA. We found little

difference in the distribution system of the two companies.

There are about 134 dealers all over India for Hyundai and about 152

dealers for TATA all over India.

Hyundai has 122 service centres all over India and TATA has about 300

service centres and service points.

Dealers

This graph represents how many cars a dealer sells in a month. As

seen in the graph a Hyundai dealer sells about 120 Santro’s a month

whereas a TATA dealer sells about 90 India’s a month.

This graph represents the sales of Hyundai Accent and TATA Indigo

respectively. As seen in the graph the TATA has a better sale for its Sedan

as compared to that of Hyundai.

On comparing both the companies it was found out that Hyundai sells

more B segment cars than TATA. But TATA sells more of its Indigo’s as

compared to the Hyundai Accent.

This graph represents how much margin a dealer gets in selling a car.

As seen in the graph a Hyundai dealer makes about 3% to 4% per car they

sell whereas a TATA dealer gets about 3%.

There are various other incentives schemes for both the dealers on

achieving the sales targets.

There is no significance difference in the

How are the cars delivered to the dealers?

Both the dealers were asked as to how the cars are delivered to them.

They both said that the cars are delivered to them through trailers. In the

case of TATA most of the Trailers are company owned whereas Hyundai

hires C&F agents who deliver the car to them through Trailers.

These trailers are of different capacities carrying 5, 7 and 10 cars.

Does the company give any Credit policy?

Both the dealers were asked if they get a credit policy from the company to

which both of them refused saying that the company does not give any

credit to them. The cars are dispatched to them only when full payment for

the car is received by the company.

TATA has a tie up with HDFC bank which provides Working Loans to the

dealers with interest rate as low as 8%.

What kind of a Warranty does the company give for the car?

TATA gives a one and a half year warranty to the customer for the car they

sell. Additional one and a half year warranty is also available for additional

Rs 2700.

Hyundai gives a year warranty on each car it sells. There is no additional

warranty available.

How many Free Services are given?

TATA gives 3 free services for each car it sells whereas Hyundai also

gives 3 free services. These free services can be availed only during a set

period of time.

How many sales people do you have?

Each TATA showroom has about 21 sales people on an average. There

are about 15 sales executives, 2 sales managers, 1 receptionist, 1 on Tele

marketing, 1 on documentation and at least 2 have to be in the show room

at any given point of time.

Each Hyundai showroom has about 20 sales people. There is one GM, 2

area managers, 3 finance executives, 8 sales executives and 6 field

agents. Hyundai also has 1 for telemarketing.

How long does it take to service a car?

Both Hyundai and TATA take 1 day to service a car. Usually 80% of the

cars are booked before servicing and only 20% are taken for emergency.

This is almost the case for both the companies.

How do you go about the process of corporate selling?

Hyundai has a special incentive scheme for corporate buyers and fleet

selling. Special sales presentations are made in front of the corporate

buyers. Corporate people have to fill a form and their needs and

requirements are assessed through this form. Depending on their

requirements special incentives are offered to them. These incentives are

in the form of discounts.

Even TATA has special incentive schemes for their corporate buyers. Like

Hyundai they also make special presentations in front of their corporate

buyers offering them huge discounts. TATA has at least one or two sales

people who specially take care of the corporate selling.

Approximately how much do you spend on advertising?

It was found out that both the company and the dealers pay for the

advertising done by the dealers for both the companies. There is no fixed

budget on advertising on the dealer’s behalf but both Hyundai and TATA

dealers spend about one to one and a half lakhs per month. This amount is

equally divided i.e. 50% the company pays and 50% the dealer pays in

TATA but the ratio is different for Hyundai. The company pays about 70%

of the money the dealers spend on advertising.

Does the company offer any incentives on achieving the sales

targets?

Both the companies give incentives on achieving the sales targets.

Hyundai motors offers incentives in the form of Trade Discounts to its

dealers. TATA motors gives holiday packages to the dealers on achieving

the sales targets. They also get Trade discounts from the company. There

are other incentives also like on selling five petrol Indica’s in a month the

dealer gets a holiday package to go to Bangkok and on the sale of each

petrol Indica they get Rs 1000 as incentive.

How many cars do you keep in stock?

Both the dealers maintain almost equal stock of cars. Hyundai dealers are

expected to keep a stock of minimum 2 weeks i.e. if the sell 200 cars in a

month then they are expected to keep a stock of at least 25 cars. Even

TATA dealers are expected to keep a stock of at least 2 to 3 weeks.

Does the dealer perform any other function other than sales?

It is mandatory for both the dealers to have a fully equipped service centre

for after sales services. It was found out from our survey that

approximately 20% to 30% of the dealer’s revenues are earned from sales

and rest 80% to 70% are earned through service.

CONCLUSION

From our research we have found out that there are about 152 dealers for

TATA and about 134 dealers for Hyundai. Hyundai has one manufacturing

unit which is based in Chennai whereas TATA has 3 units, but we also

have to keep in mind that TATA also manufactures commercial vehicles

like trucks and busses.

Tata motors benefits from its widespread dealer network. Being an

indigenous company it has a well oiled mechanism for delivering the car to

its end customer. It also has large number of service centers spread

across the breadth and width of company. the company offers sufficient

incentives to motivates its sales force even foreign trips are given as

incentives.

Tata motors should try to reduce its order processing time as customer

may loose interest if it stretches long. There is a waiting of 10 to 12 days

on Indigo; company should take steps to reduce this time.

In spite of being a foreign company, Hyundai has a well maintained

distribution network and because of this it has a bigger market share in the

B segment category but to further increase its strength it can increase its

dealerships in the smaller cities and towns. It has one of the best service

centers facilities in the industry.

RECOMMENDATIONS

1. Both the companies should try to boost up their order

processing time because it takes them about 4 to 7 days to

deliver a car. The customer loses out interest in that particular

vehicle and opts for a vehicle, which he can take in a day’s

time.

2. Hyundai motors need to set up more service centres all over

the country. The demand for their vehicle is high these days

and is good for them to set a few more service centres for

their customers.

3. Hyundai should concentrate on after sales services. They

need to send frequent reminders to the customer reminding

them to get their cars serviced. This can be done by posting a

letter or giving the customer a call.

4. Compared to Tata, there are a few dealers of Hyundai in allover

country. Keeping in mind the fact that, Hyundai Santro has

emerged a serious competitor for the small segment car, Hyundai

should definitely increase the number of dealers in the country in

order to face competition given by Tata Indica.

5. Usually the dealers buy cars from the company even before

they get orders from the customers and then they are free to

sell to the customers. So in a way there is no direct relation

between the customers and the company but we think that

there has to be some sort of direct relationship between the

two.

6. In case of both the companies (i.e.-Tata & Hyundai) each sales

executive is given a target. If the target is met the employees

gets commission but in case of Tata, the company gives

special offers like international trips to executive with superior

performance. This type of policy should also be adopted by

Hyundai for a better and an efficient work force in the future.

Annexure

Discussion guidelines

Distribution

1. What is the channel structure used by your company?

2. What are the functions performed by the different channel

members?

3. At present how many dealers does the company have?

4. What is the minimum investment required for a dealership?

5. What is the minimum commitment of a dealer?

6. What is the return per car sold?

7. How is the logistics managed?

Sales

1. What is the sales structure of your organization?

2. How do you determine the targets for each territory?

3. Who is responsible for assigning targets?

4. Who is responsible for achieving the sales targets?

Service

1. How long does it take for a car to get serviced?

2. What is the company system for overseeing the after sales function?

3. How are the service recorded?

4. How are authorised service centers handled?

5. Are there any incentives for service network?

QUESTIONNAIRES FOR THE DEALERS

1. How many cars do you sell in a month?

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2. How do you determine your sales mix?

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3. How much return do you get per car sold?

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4. How are the cars delivered to you?

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5. How many sales people go you have?

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6. Does the company give you any credit policy?

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7. What is the action of the complaints?

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8. What is the network for the supply of spares parts?

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9. How do you go about the process of corporate selling?

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10. Does the company offer any incentives on

achieving the sales targets?

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11. Usually how long does it take to service a car?

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12. How long does it take to deliver the car to the

customer?

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13. What kind of a warranty does the company give for

a car?

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14. How many free services does the company give for a car?

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15. Approximately how much do you spend on

advertising?

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BIBLIOGRAPHY

The entire project is the result of our sincere effort. We have taken

the help of library, referring to different books and how can we

forget the net.

1. The library visited :-

A) IIPM, library

B) British library

2. Books Referred :-

a) Marketing Management by Philip Kolter

b) Sales Management by Richard R.Still, Edward W.Cundiff,

Norman A.P. Govoni

3. Websites :-

a) www. Google.com

b) www. India Infoline.Com

c) www.AutoIndia.Com

d) www.CarStreet.com

e) www.OverDrive.Com