College Presentation

1

STP OF TRACTOR-TRAILER (HCV)

Summer Project Topic :-

“Segmentation, Targeting & Positioning of

Tractor-Trailer (HCV)”

For

Mahindra Navistar Automotives Ltd. Pune

Prepared by :- Amit C Sharma PGDM

Exe. Batch (2009-2011) BIMM, Pune.

2

Content

• Company Overview

• JV’S objective

• Current Products & Future Plans

• Market Scenario

• Scope, Details & Objective of Projects

• Steps in Research

• Questionnaire Format

• Customer Details

• Research Detailed Analysis

• Conclusions & Recommendations


3


Vision :-

To create a fully collaborative environment in which suppliers can deliver exactly what the company needs, when it needs it, and at a competitive cost. ´We don’t have a group-wide mission statement. Our core purpose is what makes all of us to get up & come to work in the morning -Mr. Anand Mahindra

Our aim is to provide high performance solutions for every commercial vehicle segment right from 3.5 tonne GVW to 49 tonne GVW.

Our product range will be engineered to fulfill the requirements specific to Indian business, with the technological support of Navistar.

Mission :-

To create India's largest automobile and automobile- related products distribution network by providing dealers and customers with the largest choice of unique world class products and services.

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(Joint Venture between M&M, India & ITEC, USA)

M&M (Mahindra & Mahindra) A US $6 billion group, is among the top 10 industrial houses in

India Has significant presence in key sectors of Indian economy

Automobiles & auto components, IT, Telecom, Infrastructure etc Over 60 years of experience with strong base of technology &

distribution Exports in almost every continent

ITEC (International Truck & Engine Corporation) Navistar Corporation is the parent company Market leader in medium range trucks in North America with

sales of over 100,000 CVs World leader in diesel engines (160 – 325 hp) producing over

400,000 diesel engines per year Strong R&D base

MAHINDRA NAVISTAR AUTOMOTIVES LTD.


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JV BUSINESS OBJECTIVES

1. Become a full range commercial vehicle company in India.

2. Be a full service provider of Engineering Services to ITEC.

3. Component sourcing from India for ITEC.


6

CURRENT PRODUCTS(LCV Segments)


7


8

16+D25+D32+D

Products with variants engineered to suit a variety of usage segments

Tourister 25+D available in BS III version with CRDe engine

Delux bus under development

PASSENGER RANGE


9

Loadking

Sherpa Tipper

DI 3200

Loadking Tipper

Products with variants engineered to suit a variety of usage segments

LOAD CRX RANGE


10

Mahindra DI 3200Ideal for Intra city / small distance operation

GVW 4600 kg, Pay load 2575 kg

CARGO VEHICLES


11

LK 4T LWB BS II LK 6T LWB BS II/BSIII LK CNG BSIII/BS IV

LK 6T SWB BS II /BS III LK 6T SWB BS II CBC/FBT LK 6T SWB BS II/BS III

Mahindra LOAD KING Rugged, Durable, Fuel efficient

CARGO VEHICLES


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Parameters DI 3200 Loadking Super Loadking Pride Loadking CRDe

GVW (kg) 4600 5950 5500 5500

Payload (kg) 2575 3585 3280 3520

Engine MDI 3200 TCI4 cyl 2.5 lit - BS II

NEF 3200 TCI4 cyl 2.6 lit - BS II

NEF 3200 TCI4 cyl 2.6 lit - BS II

LCV CRDe BS III4 Cyl 2.6 Lit

Power 45 kw (61.2 hp) @ 3200 rpm

53.5 kw (72.7 hp) @ 3200 rpm

53.5 kw (72.7 hp) @ 3200 rpm

58.5 kw (82 hp) @ 3200 rpm

Wheel base (mm) 2654 3320 2500 2500

LxWxH (mm) 2920 x 1800 x 500/1090 3120 x 1800 x 500 3120 x 1920 x 500 3120 x 1920 x 500

Cabin width (mm) 1690 1690 1690 1690

No. of tyres 2F, 2R 2F, 4R 2F, 2R 2F, 2R

Variants WB: 2500 mmLB Lngth: 3120

6 Tyre (2F, 4R),GVW 5950,

High side deck

6 Tyre (2F, 4R),GVW 5950,

High side deck

CARGO VEHICLES


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NEW INTRODUCTIONS (Load)

Parameters LK 4T LWB LK 6T LWB LK 4T/6T LWB CNG

Loadking Tipper

fbt

Sherpa Ttipper

cbc

GVW (kg) 6255 5950 6255 5950 7450

Payload (kg) 4020* 3585 4020* 3760 3500

Engine NEF 3200 TCI2.6lit BS II

NEF 3200 TCI2.6lit BS II

NEF 2.6 Ltr CNG BS III

NEF 3200 TCI 2.6lit BS II

NEF 3200 TCI 3.2 lit BS II

Power 53.5 kw (71.7 HP)

@ 3200 rpm

53.5 kw (71.7 HP)

@ 3200 rpm

52 Kw (70 Hp) @3600 RPM

53.5 kw (71.7 HP)

@ 3200 rpm

73.5 kw (100 PS)

@ 3150

Wheel base (mm) 3320 3320 3320 2500 2800

Lx Wx H (mm) 4250 x 1920 x 500/1090

4250 x 1800 x 500

4250 x 1920 x 500/1090

3130 x 1720 x 530

Cabin width (mm) 1690 1690 1690 1690 1690

No. of tyres 2F,2R 2F,4R 2F,2R/4R 2F, 4R 2F, 4R


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FUTURE PRODUCTS(HCV Segments)


15


16

Tata Motors Ltd63%

volvo india pvt ltd/

volvo buses india0%

ashok leyland ltd18%

asia motors works

1%

VE CV's-Eicher mo-

tors ltd8%

force mo-tors

ltd(bajaj tempo ltd)

3%JCBL ltd

0%Mahindra Navistar

3%mecrcedes-benz

0%Swaraj Mazda

3%

Industry market share

F 02 F 03 F 04 F 05 F 06 F 07 F 08 F 09 F 100

50

100

150

200

250

300

350

400

132

168

220

264 270

336 330

237

319

CV GROWTH(DOMESTIC) FY 01-02 TO 09-10 (ABOVE 3.5 TON TO 49 TON)

YOY GROWTH %

Nos.

'000


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Competitors :-

• TATA Motors Ltd• Ashok Leyland• VE CVs- Eicher Motors ltd• Swaraj Mazda Ltd• Mercedes- benz• TVS(CNG- KING)• Asia Motor Works• JCBL Ltd• Piaggio Vehicles Pvt Ltd• Force Motors Ltd• Kamaz Vectra Motors Ltd

New entrants to the commercial vehicle markets:-

•Daimler after the collapse with the Hero Group, the German auto giant is searching a company having a strong dealer network in country to make a joint venture.•General Motors (GM) & Shanghai Automotive Industry Corporation (SAIC) also having their eye on Indian CV industry.•John Deere is looking after small tractor business in India.•As Eicher Motors buys 3.18% stake from Mitsubishi, this show that Mitsubishi also having some interest to involve in CV business in Indian market.


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SCOPE OF PROJECT

•The project is focused on selected Transport owners in Mumbai & Pune city.

•The study enables to know the expectation of the Transporters.

•The project highlights the scope of future improvements on the basis of research findings.

•The project can give a preview of devising better strategy against competitors.


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OBJECTIVE OF PROJECT

To understand segment characteristics of Tractor-trailer .

• Profile of the customer :-* Classification of customer in the different sizes of the fleet handling capacities. * List down the customers who own or operate the tractor-trailers. * Note down the company, model and fleet size of their vehicles. * Also list down the cost of vehicle, trailer building cost and year of purchase of that vehicle.

• Usage profile of Tractor-Trailer :-*List down the information regarding the application for which customers are using their vehicles.


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* Also list down routes on which the vehicle is running most of the time, total running for daily and monthly basis. * Also check out the load carrying capacity of the vehicle and note down how much total load they are carrying through their vehicle. * Note down operating speed with reference to the carried load of the vehicle and check out the fuel efficiency of that vehicle.

• Vehicle performance :-• Check the performance of the vehicle used by the owner or operator

regarding to the mileage (fuel economy), pulling power, max.speed, and the gradeability of the vehicle. * Verify the accelerating power of vehicle. Also check out the company of the tyre and tyre life.

• Expected performance :-• Check out the purchasing parameters of customers and vehicle

specifications and verify whether the customers are satisfied with those parameters or not. Ask them about their expectations.


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• Expected features :-* List down all the expected features that have been required by the vehicle for better performance as well as very good drivability. * Study the features like cabin specifications, tyres, advance features like GPS, navigation systems, central lubrication, hub reduction, anti theft systems. Also list down the extra features customer requires.


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Step by step project details1. Company study.

2. Detail study of specifications of competitor’s products.

3. Preparation of questionnaire & other checklists.

4. Competitors dealers visit in Pune & Collections of Various information & Brochures of competitors products.

5. Collection of various details of transport owners application segment wise in Maharashtra(Mumbai, Pune).

6. Visit to various Cities specially the big Hubs of Tractor- trailers in Maharashtra.

7. Collection of Information through Questionnaire, Operating economics & other details.

8. Collection & analyzing total research findings.


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Study of operating economics :- After studying all bellow given parameters we have calculated profitability of the transport owner per vehicle they are using. •Fixed costs :-

1)Price of vehicle2)Trailer building cost3)Loan amount

- Down payment and % of finance 4)Interest rate of finance5)Tenure6)Insurance 7)Registration cost8)Modification/accessories cost9)No. of drivers10)Driver salary per month11)Driver allowance per day12)Co-driver salary per month13)Co-driver allowance per day14)Office expenses (staff and filing cost)

•Variable costs :-1)Monthly running of vehicle2)Tyre life3)Maintenance cost per km4)Toll expenses per km or per trip

•Revenue :-1)Load –up trip – distance 2)Load – down trip – distance3)Freight rate Rs./Ton-km

FIXED COST + VARIABLE COST = TOTAL COSTREVENUE – TOTAL COST = PROFIT


24

STEPS IN RESEARCH

Define & Development of approach to the problem.Research Design formulation.Field work or Data collection.Findings & Interpretations.Satisfaction and importance data for tractor-trailers.


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Method of Research :- DESCRIPTIVEIn this case we knew what we were looking for. We had a clear idea who our target customers would be. The company was interested to know the scope in the HCV Segment & how they could meet the customer’s requirements.

Type Of Research :- InterviewObservation

Research Objective :-Research Objective same as Project Objective

Data Type :-Primary ( obtained through customer interviews )

Data Collection:-The data, which is collected for the purpose of study, is divided into 2 bases:Primary Source : The primary data comprises information survey of vehicle owners, operators and transport agencies. The data has been collected directly from respondent & with the help of structured questionnaires.Secondary Source : The secondary data was collected from Company’s website and other informative websites.


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Research Methodology :- This describes the methodology of the study. After the detailed study, an attempt has been made to understand the segment characteristic of tractor-trailer market & also how that market may vary with respect to the application segment and GCW of the vehicle.

Survey design :- The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience.

Sample Size and Design:- A sample of 82 transport owners has been collected for detailed study of the tractor-trailer segment. Before going on the real field visit, the test sampling has been carried out near Pune to check and to get familiar with the market. The actual customers were contacted on the basis of random sampling.After completing the test sampling, the real field visit was carried out by visiting the tractor-trailer hub near Pune, Panvel and Mumbai. Visits have been done at-

•Transport Nagar at Nigdi, Pune

•Kalamboli at Panvel

•Gavanpada (HPCL & BPCL Refineries) near Chembur, Mumbai •Masjid Bunder at Mumbai


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Sr.no 35TSample Size

40TSample Size

49TSample Size

Total Sample Size

1 Steel 7 Steel 10 Steel 8 25

2 Container 10 Container 8 Container 5 23

3 Tankers 6 Tankers 5 Tankers 3 14

4 Engg Items 4 Engg Items 5 Engg Items 3 12

5 ODC 5 ODC 3 ODC 3 11

Total 27 31 22 85

Segment wise distribution :-

Research Period:- The research work was carried out for 30 days. Approximately 3-4 interviews per day.

Research Instrument:

This work is carried out through face to face survey & self-administered questionnaires. The questions included were open ended, dichotomous and offered multiple choices.


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• What is Customer Preferences for Tonnes.

• As per the graph Customer mostly Prefers 35 Tonne vehicle for their operations.

• Reasons :- Customer Mostly Prefers 35 Tonne vehicle for their operations because mainly of the Mileage & Load carrying capacity of the vehicle. Also the price for 49T vehicle is very high to afford by small and medium size transporters.

35T

40T

49T

0 100 200 300 400 500 600 700 800

731

359

135

No of Vehicles

GC

W

535 T – 731 Nos i.e. 60 %

40 T – 359 Nos i.e. 29 %

49 T – 135 Nos i.e. 11 %


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• What is the Fleet size of the customers.

• As per the graph the average Fleet size the customers have is 5- 10 nos.

5-10

11-15

16-20

21-25

26 & above

0 5 10 15 20 25 30 35 40

36

11

3

2

15

Fleet size of customers

No of Customers

Fle

et

siz

e

5-10 – 36 Nos i.e. 54 %

11-15 – 11 Nos i.e. 16 %

16-20– 3 Nos i.e. 4 %

21-25 – 2 Nos i.e. 3 %

26 - 75 – 15 Nos i.e 22 %


30

• What is Distance per Trip.

• As per the graph on an average vehicle covers 500-1000 km per trip.

• Reasons :- It covers PAN India. But it prefers 500-1000 km per trip as it can have more no of trips in a month.

Less than 500 – 3 Nos i.e. 4 %

501– 1000 – 58 Nos i.e. 58%

1001- 1500 – 28 Nos i.e. 35 %

1501- 2000 – 1 Nos i.e. 1%

2001– 4000 – 2 Nos i.e 2 % Less than 500

501-1000

1001-1500

1501-2000

2001 - 4000

0 5 10 15 20 25 30 35 40 45 50

3

47

28

1

2

Distance per Trip

No of Customers

Dis

tance in K

m


31

• What is Driving Time per day.

• As per the graph on an average vehicle covers 9-10 hrs per day.

• Reasons :- Because drivers prefers to drive the vehicle on an average of 9-10 hrs as due to Fatigue factors.

Less than 8 Hrs

9-10

11-12

13-14

15-16

0 5 10 15 20 25 30 35 40

32

37

6

5

1

Driving Time / Day

No of Customers

Dri

vin

g T

ime in H

rs

Less than 8 hrs – 32 Nos i.e. 40 %

9-10 – 37 Nos i.e. 46 %

11-12 – 6 Nos i.e. 7 %

13-14 – 5 Nos i.e. 6 %

15-16 – 1 Nos i.e 1 %


32

• What is Running Monthly of the Vehicles.

• As per the graph on an average vehicle covers 5000-6000 km per monthly.

• Reasons :- It varies per month but on an average of 5000 to 6000 km per month. As it depends on the business and time factors.


3001-4000 – 2 Nos i.e. 2 %

4001-5000 – 6 Nos i.e. 7 %

5001 – 6000 – 38 Nos i.e. 48 %

6001- 9000 – 30 Nos i.e 37 %

Less than 3000 km

3001-4000

4001-5000

5001-6000

6001-9000

0 5 10 15 20 25 30 35 40

4

2

6

38

30

Running Monthly

No of Customers

Month

ly R

unnin

g in K

ms


33

• What is the no of Trips per month.

• As per the graph on an average vehicle covers 4 to 5 trips per month.

• Reasons :- It covers PAN India. As it covers on an average 500- 1000 km per trip as it can have more no of trips in a month .


2-3 – 15 Nos i.e. 22 %

4-5 – 24 Nos i.e. 35 %

6-7 – 2 Nos i.e. 3 %

7-8 – 21 Nos i.e 31 % Less than 1

2-3

4-5

6-7

7-8

0 5 10 15 20 25 30

6

15

24

2

21

No of Trips / Month

No of customers

No o

f tr

ips/

month


34

• What is the time taken per Trip.

• As per the graph on an average vehicle takes 2 -3 days per trip.

• Reasons :- As per the driving conditions and routes available the time taken per trip may differ.

Less than 1

2-3

4-5

6-7

7-8

0 10 20 30 40 50 60

10

53

17

0

0

Time Taken per Trip

No of Customers

Tim

e t

aken

days Less than 1 – 10 Nos i.e. 13 %

2-3 – 53 Nos i.e. 66 %

4-5 – 17 Nos i.e. 21 %

6-7 – 0 Nos i.e. 0 %

7-8 – 0 Nos i.e 0 %


35

• What is the Loading / Unloading days per Trip.

• As per the graph on an average vehicle takes 2-3 days for Loading / Unloading per trip.

• Reasons :- It takes 2-3 days as it depends on the labour and load availability for loading / Unloading.


2-3 – 82 Nos i.e. 66 %

4-5 – 6 Nos i.e. 21 %

6-7 – 0 Nos i.e. 0 %

7-8 – 0 Nos i.e 0 % Less than 1

2-3

4-5

6-7

7-8

0 10 20 30 40 50 60 70

10

66

5

0

0

Loading / Unloading Days

No of Customers

Loadin

g/u

nlo

adin

g d

ays


36

• What is the mileage of 35T vehicle.

• As per the graph mileage for 35T isFor Overload- 2.1 to 2.5 kmplFor Rated load- 2.5 to 3 kmplFor Under load-3.1 to 3.5 kmpl

• Reasons :- As per the loading capacity of 35T vehicle is lesser than 40 and 49T vehicle, the fuel mileage increases for this vehicle.

3.1-3.5

2.51-3

2.1-2.5

underl

oad

rate

d load

overl

oad

0 1 2 3 4 5 6

5

4

3

Coding for mileage

Less than 1.51.51-22.1-2.52.51-33.1-3.5

0 1 2 3 4 5 6 7

00

12

6

Underload Mileage - 35 T

No of Customers

Underl

oad m

ileage

Less than 1.51.51-22.1-2.52.51-33.1-3.5

0 5 10 15 20 25 30 35 40

03

1635

9

Rated Load Mileage - 35 T

No of CustomersRate

d load m

ileage

Less than 1.5

1.51-2

2.1-2.5

2.51-3

3.1-3.5

0 2 4 6 8 10 12

1

10

11

2

1

Overload Mileage - 35 T

No of Customers

Overl

oad m

ileage


37


• As per the graph mileage for 40T isFor overload- 1.51 to 2 kmplFor rated load- 2.1 to 2.5 kmplFor under load-3.1 to 3.5 kmpl

Less than 1.5

1.51-2

2.1-2.5

2.51-3

3.1-3.5

0 2 4 6 8 10 12 14 16 18

0

2

14

16

2


No of Customers

Rate

d load m

ileage

Less than 1.5

1.51-2

2.1-2.5

2.51-3

3.1-3.5

0 2 4 6 8 10 12

3

11

1

1

0


No of Customers

Overl

oad m

ileage

3.1-3.5

2.1-2.5

1.51-2

underl

oad

rate

d load

overl

oad

0 1 2 3 4 5 6

5

4

2

Coding for mileage


38


• As per the graph mileage for 49T is For overload- less than 1.5 For rated load- 1.51 to 2 kmpl For under load-3.1 to 3.5 kmpl

3.1-3.5

1.51-2

less than 1.5

underl

oad

rate

d load

overl

oad

0 1 2 3 4 5 6

5

2

1

Coding for mileage

Less than 1.5

1.51-2

2.1-2.5

2.51-3

3.1-3.5

0 2 4 6 8 10 12

4

10

2

1

0


No of Customers

Rate

d load m

ileage

Less than 1.5

1.51-2

2.1-2.5

2.51-3

3.1-3.5

0 1 2 3 4 5 6

5

4

0

0

0


No of Customers

Overl

oad m

ileage


39

• What is the Fuel Tank Capacity normally Preferred.

• As per the graph on an average vehicle has 350- 400 Ltr’s capacity fuel tank.

• Reasons :- It covers PAN India and they don’t want to increase the capacity more than this as possibility of fuel theft is more.


250-300 – 12 Nos i.e. 15 %

300-350 – 29 Nos i.e. 36 %

350-400– 31 Nos i.e. 39 %

400-600– 0 Nos i.e 0 %

less than 250

250-300

300-350

350-400

400-600

0 5 10 15 20 25 30 35

8

12

29

31

0

Fuel Tank Capacity

No of Customers

Fuel ta

nk c

apacit

y in L

trs.


40

• Major, Medium, Minor, segment of the T-T Business.

• As per the graph for the following observations :- Major Segment – ODC Medium Segment – Engineering Items Minor Segment – Steel .

Steel

Container

Tankers

Engg Items

ODC

0 5 10 15 20 25 30 35 40

16

12

17

4

36

Major Segment of Business

No of Customers

Applicati

ons

Steel

Container

Tankers

Engg Items

ODC

0 2 4 6 8 10 12 14

12

4

0

12

2

Med. Segment of Business

No of Customers

Applicati

ons

Steel

Container

Tankers

Engg Items

ODC

0 1 2 3 4 5 6

5

2

0

3

0

Minor Segment of Business

No of Customers

Applicati

ons


41

• What type of cabin is preferred by customers.

• As per the graph major customer prefers Locally built Cabin.

• Reasons :- It costs less & they modify the cabin as per their need & applications.

locally built

company built

0 10 20 30 40 50 60 70 80

69

12

Type of Cabin

No of Customers

Type o

f cabin

Locally built – 69 Nos i.e. 85 %

Company built – 12 Nos i.e. 15 %


42

• Which type of cabin customers have at present .

• As per the graph major customers have 2-sleeper cabin in their vehicle.

• Reasons :- As their vehicle covers PAN India & for the long route 2 sleeper is preferred for driver comfort & rest.

1- Sleeper – 8 Nos i.e. 85 %

2- Sleeper – 73 Nos i.e. 15 %

Day – 0 Nos i.e 0 %

1-Sleeper

2-Sleeper

Day

0 10 20 30 40 50 60 70 80

8

73

0

Type of Cabin

No of Customers

Type o

f cabin


43

• Which color customer prefers for their vehicle.

• As per the graph major color opted is white .

• Reasons :- Normally company color is used.

Red

Yellow

White

Golden Brown

Blue

0 5 10 15 20 25 30

13

19

27

22

1

Colour option preferred by customer

No of Customers

Colo

rs

Blue – 1 Nos i.e. 16 %

Golden Brown – 27 Nos i.e. 23 %

White – 27 Nos i.e 33 %

Yellow – 19 Nos i.e 27 %

Red – 13 Nos i.e 1 %


44

• What is the current life of Front & Rear tyres.

• As per the graph Front tyre – 45001 to 60000 km Rear tyre – 35001 to 50000 km

• Reasons :- Normally due to road conditions & load carried.

30000-45000

45001-60000

60001-75000

75001-90000

90001-100000

0 5 10 15 20 25 30 35

12

33

4

18

14

Front Tyre current life

No of Customers

Tyre

lif

e in K

ms

20000-35000

35001-50000

50001-65000

65001-80000

80001-900000

0 5 10 15 20 25 30 35

13

31

10

14

13

Rear Tyre current life

No of Customers

Tyre

lif

e in K

ms


45

• What is the Expected life for Front & Rear tyres.

• As per the graph Front tyre life – 90001 & above . Rear Tyre life – 80001 & above.

• Reasons :- Because it will reduce the cost of replacing & remoulding of tyre to a great extent.

30000-45000

45001-60000

60001-75000

75001-90000

90001 & above

0 5 10 15 20 25 30 35 40 45

0

15

14

11

40

Expected Front tyre life

No of Customers

Tyre

lif

e in K

ms

20000-35000

35001-50000

50001-65000

65001-80000

80001 & above

0 5 10 15 20 25 30 35 40

1

16

13

13

37

Expected Rear tyre life

No of Customers

Tyre

lif

e in K

ms


46

• Which type of tyre customer uses for its vehicles.

• As per the graph major customer prefers

Cross ply tyre in their vehicle.

Cross Ply

Radial

Tubeless Radial

0 10 20 30 40 50 60 70 80

76

6

0

Tyre type of the vehicle

No of Customers

Tyre

type

Cross Ply – 76 Nos i.e. 93 %

Radial – 6 Nos i.e. 7 %

Tubeless Radial – 0 Nos i.e 0 %

Sr. noTyre Type

Preference reasons

Coding Cust Nos %

1Tyre which came

along with vehicle from beginning

1 4 5

2 Good Service 2 50 63

3 Own Agency 3 0 0

4 Cheaper 4 5 6

5 Less Friction 5 17 22

6 Easy Availability 6 3 4

Tyre which came along with vehicle from beginning

Good Service

Own Agency

Cheaper

Less Friction

Easy Availability

0 10 20 30 40 50 60

4

50

0

5

17

3

Cust. Preference for Tyre Type

No of Customers


47

• Which make of tyre customer prefers for its vehicle.

• As per the graph customer prefers MRF make tyre most in their vehicle.

MRF

APOLLO

JK

MICHELLEN

CEAT

0 5 10 15 20 25 30 35 40 45 50

47

24

4

0

6

Make of tyres

No of Customers

Tyre

com

pany CEAT – 6 Nos i.e. 7 %

MICHELLIN – 0 Nos i.e. 0 %

JK – 4 Nos i.e 5 %

APOLLO – 24 Nos i.e 30 %

MRF – 47 Nos i.e 58 %

Sr. no Tyre make preference Reasons Coding Cust

Nos %

1 Good Service 1 37 46

2 Good Life 2 16 20

3 Tyre on Credit 3 4 5

4Tyre which came along

with vehicle from beginning

4 7 9

5 Own Agency 5 3 46 Good Performance 6 6 77 Good Reliability 7 3 48 As per availability 8 4 5

Good Service

Tyre on Credit

Own Agency

Good Reliability

0 5 10 15 20 25 30 35 40

3716

47

36

34

Reasons for Preference

No of Customers


48

• What is best combination in 35 Tonne Tractor-Trailer.

• As per the graph best combination opted by the customer is 180 HP

Sr. no Tonnes Best Combination Coding

1 35 T 180 1

2 35 T 200 2

3 35 T 220 3

180 HP – 50 Nos i.e. 79 %

200 HP – 8 Nos i.e. 13 %

220 HP – 5 Nos i.e 5 %

Sr. no Reasons Coding Cust Nos %

1 Good load carrying capacity a 11 21

2 Good mileage b 39 73

3 Good power c 3 6

4 Good for Application d 0 0

180 HP / 14.5-14.7/3

200 HP/14.9-15.1/2.85

220 HP/15.3-15.5/2.75

0 10 20 30 40 50 60

50

8

5

Best Combination in 35 Tonnes

No of Customers

Opti

ons

Good load carrying capacity

Good mileage

Good power

Good for Application

0 5 10 15 20 25 30 35 40 45

11

39

3

0


No of Customers


49



260 HP – 20 Nos i.e. 79 %

220 HP – 6 Nos i.e. 13 %

180 HP – 3 Nos i.e 5 %


1Good load

carrying capacity

a 13 42

2 Good mileage b 8 263 Good power c 9 29


Best combination for 40 T No of Customers %

260 HP 20 69220 HP 6 21180 HP 3 10

180 HP/15.5-15.7/2.5

220 HP/15.9-16.1/2.4

260 HP/16.5-16.7/2.8

0 5 10 15 20 25

3

6

20


No of Customers

Opti

ons


Good mileage

Good power


0 2 4 6 8 10 12 14

13

8

9

1


No of Customers


50



Best combination for 49 T No of Customers %

230 HP 0 0260 HP 5 62 320 HP 2 25400 HP 1 13


1Good load

carrying capacity

a 6 43

2 Good mileage b 0 03 Good power c 1 7


230 HP – 0 Nos i.e. 0 %

260 HP – 5 Nos i.e. 62 %

320 HP – 2 Nos i.e 25 %

400 HP - 1 Nos i.e 13 %

230 HP/23.5-24/2.2

260 HP/26-26.5/2.4

320 HP/28.5-29/2

400 HP/37-40/1.8

0 1 2 3 4 5 6

0

5

2

1


No of Customers

Opti

ons


Good mileage

Good power


0 1 2 3 4 5 6 7 8

6

0

1

7

Reasons For Preference

No of Customers


51

• Advance features expected by the customers.

• As per the graph customers preferred the central lubrication system.

• Reasons :- This is a new system in the market & in addition it will save time & money for greasing the vehicle etc.

GPS

Navigation Systems

AC

Central Lubrication

Anti Fuel Theft System

Anti Vehicle Theft System

Tyre Pressure Monitoring System

Hub Reduction

0 10 20 30 40 50 60 70

2

1

4

59

6

0

1

0

Expected features

No of Customers

Expecte

d f

eatu

res

HR – 0 Nos i.e. 0 %

TPMS– 1 Nos i.e. 1 %

ANTS – 0 Nos i.e 0 %

AFTS – 6 Nos i.e 8 %

CLS– 59 Nos i.e 81 %

AC – 4 Nos i.e. 6 %

NS – 1 Nos i.e 1 %

GPS – 2 Nos i.e 3 %


52

Important – Satisfaction Rating Graphs

35 , 40 & 49 Tonne Tractor- Trailer Segment.


53

• Imp- Satisfaction Graph for Tractor-Trailer Vehicle (Overall)

Parameters IMP Rating

SatisfactionRating

Reliability of the vehicle

4.7 4.4

Safety of the driver/occupant

4.7 4.3

Power for overloading

4.7 4.3

Gradeability 4.7 4.1

Driver comfort for higher productivity

4.0 4.0

Less turnaround time for more no of trips

4.2 3.9

Power output for max speed

3.7 3.6

Price of the vehicle

4.7 3.8

Higher fuel economy

4.9 3.8

Effective brakes for lesser stopping time in case of emergency

4.6 3.8

Tyre life 4.5 3.0


54

• Important- Satisfaction Graph for 35 Tonne Vehicle

Parameters

IMP Rating

Satisfaction Rating


4.8 4.4

Higher fuel economy

4.7 4.4


4.7 4.2



3.9 4.0


3.7 3.5


4.1 3.9

Tyre life 4.9 3.9


4.9 3.8


4.6 3.7


4.5 3.0


55


Parameters

IMP Rating

Satisfaction Rating


4.7 4.4


4.6 4.4


4.6 4.2


4.2 4.1


3.9 3.9


3.7 3.7


Price of the vehicle 4.7 3.9

Higher fuel economy

4.9 3.8


4.6 3.6

Tyre life 4.5 2.9


56


Parameters

IMP Rating

Satisfaction Rating

Higher fuel economy

4.9 5.0

Price of the vehicle 4.1 4.8


4.7 4.7


4.6 4.4


3.1 4.1



4.2 3.5

Tyre life 4.5 3.4


4.6 3.3


5.0 2.7


4.2 2.3


57

Overall 35T 40T 49T

Parameters

Tyre life Tyre life Tyre life Tyre life

Effective brakes for lesser

stopping time in case of

emergency



emergency



emergency

Effective brakes for

lesser stopping time in case of

emergency

Higher fuel economy


Higher fuel economy



Driver comfort for higher

productivity


Driver comfort for higher

productivity


Less turnaround time for more no

of tripsGradeability Gradeability

Less turnaround

time for more no of trips

Important parameters where customers are mostly unsatisfied.


58

Important – Satisfaction Graphs of Competitor’s Vehicles


59

• Important- Satisfaction Graph for AL-3516 Tonne Vehicle

ParametersImportance data

Satisfaction data

Safety of the driver/occupant 4.69 4.47Reliability of the vehicle 4.76 4.45Power for overloading 4.70 4.24Gradeability 4.73 4.18Price of the vehicle 4.76 4.02Driver comfort for higher productivity

3.96 3.87


4.19 3.84

Power output for max speed 3.74 3.37Higher fuel economy 4.93 3.82


4.63 3.79

Tyre life 4.51 3.05


60

• Important- Satisfaction Graph for TATA-3516 Tonne Vehicle

Parameters Importance

Satisfaction

Reliability of the vehicle 4.76 4.80

Safety of the driver/occupant 4.69 4.70

Gradeability 4.73 4.50Power for overloading 4.70 4.45Power output for max speed 3.74 3.90Driver comfort for higher productivity

3.96 4.05


4.19 3.70

Price of the vehicle 4.76 4.10Higher fuel economy 4.93 3.95Effective brakes for lesser stopping time in case of emergency

4.63 3.95

Tyre life 4.51 3.00


61


Parameters Importance Rating

SatisfactionRating

Reliability of the vehicle 4.76 4.38Power for overloading 4.70 4.31Less turnaround time for more no of trips

4.19 4.00

Gradeability 4.73 3.97Safety of the driver/occupant

4.69 3.93


3.96 3.45

Power output for max speed 3.74 3.79

Price of the vehicle 4.76 3.76Higher fuel economy 4.93 3.69Effective brakes for lesser stopping time in case of emergency

4.63 3.52

Tyre life 4.51 2.86


62


ParametersImportance Rating

Satisfaction Rating

Reliability of the vehicle 4.76 4.69Price of the vehicle 4.76 4.44Power for overloading 4.70 4.38Safety of the driver/occupant 4.69 4.38Less turnaround time for more no of trips

4.19 4.31


3.96 3.75

Power output for max speed 3.74 3.75Gradeability 4.73 4.13Higher fuel economy 4.93 3.88Effective brakes for lesser stopping time in case of emergency

4.63 3.50

Tyre life 4.51 2.81


63


ParametersImportanc

e Rating

Satisfaction

RatingSafety of the driver/occupant 4.69 5.00Driver comfort for higher productivity

3.96 4.88

Power for overloading 4.70 4.75Reliability of the vehicle 4.76 4.63Price of the vehicle 4.76 4.50Gradeability 4.73 4.25Power output for max speed 3.74 4.13Less turnaround time for more no of trips

4.19 4.00


4.63 3.13

Higher fuel economy 4.93 2.50Tyre life 4.51 2.13


64


ParametersImportance

RatingSatisfaction

RatingDriver comfort for higher productivity

3.96 5.00

Safety of the driver/occupant 4.69 5.00Reliability of the vehicle 4.76 5.00Power for overloading 4.70 4.50Gradeability 4.73 4.25Power output for max speed 3.74 3.75Higher fuel economy 4.93 3.50Effective brakes for lesser stopping time in case of emergency

4.63 3.50


4.19 3.25

Price of the vehicle 4.76 3.25Tyre life 4.51 2.50


65

• Important- Satisfaction Graph for MAN-49 Tonne Vehicle

ParametersImportance

RatingSatisfaction

Rating

Power for overloading 4.70 5.00Gradeability 4.73 5.00Safety of the driver/occupant 4.69 5.00Power output for max speed 3.74 4.00Driver comfort for higher productivity

3.96 4.00


4.19 4.00


4.63 3.00

Reliability of the vehicle 4.76 3.00Higher fuel economy 4.93 2.00Tyre life 4.51 2.00Price of the vehicle 4.76 2.00


66

• Important- Satisfaction Graph for VOLVO-400 Tonne Vehicle

Parameters Importance Rating

Satisfaction Rating

Higher fuel economy 2 2Power output for max speed 4 4Power for overloading 4 4Gradeability 3 3Effective brakes for lesser stopping time in case of emergency

4 4

Tyre life 3 3Driver comfort for higher productivity

5 5

Safety of the driver/occupant 5 5Less turnaround time for more no of trips

3 3

Reliability of the vehicle 3 3Price of the vehicle 2 2


67

SWOT Analysis of MNAL :-

Strengths :-•Company is backed by a strong brand name called “ Mahindra & Mahindra “.•Company has ability to introduce new product in the market & to generate sales from those new products.•Introducing innovative services like “Extra Mile “•Ruggedness & Toughness of vehicles.

Weakness :- •Lack of Expertise in Heavy commercial vehicles segment.•Price of Quoted for the HCV is higher than the competitors.Competitors are providing discounts.•Lack of Awareness about Mahindra Navistar’s HCV in the market.

Opportunities:-•High Growth rate in commercial vehicle segment.•Improving infrastructure facilities in India.For eg : Golden quadrilateral project connecting all the metro cities.•Tapping Market outside India.

Threats :- •Tata Motors & Ashok Leyland having a strong hold in the HCV Market.•To Influence the consumer perception from existing players to Mahindra- Navistar products.


68

Porter’s 5 Force Model :-

Bargaining Power of Bargaining Power of

Bargaining Power of Customers :-

Is high at Par offerings by competitors like Tata Motors , Ashok Leyland.

Competitive Rivalry within an Industry :-

Within an Industry Tata Motors, Ashok Leyland, Volvo, Mercedez Bens, Man- Force.

Threat of New Entrants :-

As MNAL is a new player . Foreign players like Volvo & Mercedez benz in Indian Market.

Threat of substitute Products:-

No such threat in this segment.

Bargaining Power suppliers :-

Is low because of high brand image of Mahindra Navistar in market.


69


CONCLUSIONS & RECOMMENDATIONS (with respect to the sample size)

Segment wise application:- Major – ODC Medium – Steel Minor- Engineering items, Car Carriers, Tankers The main segment of the market that regulates application wise might be steel, ODC and engineering item for tractor-trailers.

Out of sample size of 70 transporters60 transporters are handling 35T along with the combination of 40 T & 49 T41 transporters are handling 40T along with the combination of 35 T & 49 T 18 transporters are handling 49T along with the combination of 35 T & 40 T So most popular vehicle in this segment of tractor-trailers is 35T vehicle according to the review of transport owners. Also 40T vehicle usage is growing fast because of highly fluctuating steel,

engineering and ODC markets. As the prices and loading capacity of 49T vehicles are high, the small and

medium size transporters are not willing to purchase it.

70


71

Fleet size handling :-• As the prices and loading capacity of 49T vehicles are high, the small and medium

size transporters are not willing to purchase it. • Transporters having fleet sizes more than 30 vehicles approximately goes for the 49T

vehicles because the freight rates are high and load carrying capacity.

Important parameters :-• As per the survey taken, the importance parameters have been analyzed to find out

the important parameter that is very much required to the transporters for their profitability and vehicle maintenance.

• Survey shows following observations are important considered by the Transport

owner while purchasing the vehicle.o Fuel Economyo Priceo Tyre Life o Power for loading & Gradeabilityo Effective Brakes

• In the pricing and reliability parameters of vehicle. Customer prefers the vehicles of the company which have less price & discounts etc.


72

Importance to tyres and tyre life :- Tyre life leads to the cost cutting in the overall variable costs. They always prefer the tyres having long life and comparatively cheaper price. So tyre life is also an effective aspect for the company that increases efficiency of the vehicle.

Importance of Loading & Overloading power :- The transporting business is thus totally depend on the pulling or overloading power of vehicle, the company also should look after the effective overloading power for their vehicles. Though the options for the best combinations gives more power options, the transporters also suggested to increase the loading capacity for respective options for vehicles if possible.

Comfortability for Drivers :- Many of transporters also look after to the Comfortability for their drivers for high productivity by lowering their fatigues they built cabins as per their preferences, but if company will provide the cabins as per their requirements they also prefer company built cabins. But they may be mostly stick to the price differences between company and locally built cabins. Other factors like effective braking while in the case of emergency and lesser

turnaround time for the vehicle trip to increase profitability also are very much important for the transporters and vehicle owners.


73

Competitors Market Presence :- In the commercial vehicles market, TATA Motors and Ashok Leyland are the big competitors for Mahindra Navistar. Also by the survey that has been carried out it has been found out that most of the North Indian Transporters mostly prefer the TATA vehicles while Ashok Leyland is mostly popular vehicle company in the Southern region of India. Promotional Plan :- Major Customers during the survey were not aware about the company’s new truck launch in the market. So company should have rigorous promotional plan for their product. Mahindra company which is very much famous for their rugged and efficient engines, the customers are very much eagerly waiting for the new vehicle to come up in the market.


Thank you…

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Thank you…

75


Documents

College Presentation