INTRODUCTION TO THE PROJECT`

Appendix l

A

Project Report

On

JK TYRE Marketing Strategies

Submitted for partial fulfillment of requirement for the award of degree

Of Bachelor of Business Administration (II)

Of

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

Session 2011-14 Supervision By Submitted byMr. Pramod Kumar Pandey Manav Pal Designation: Assistant Professor Roll No.: 1190111212 Department: Management Enrollment No.: 1130320018 BBA VI Semester 2014MAHARSHI DAYANAND UNIVERSITY, ROHTAK

Appendix II

DECLARATION

I the undersigned solemnly declare that the report of the project work entitled JK Tyre Marketing Strategies, is based my own work carried out during the course of my study under the supervision of Mr. Pramod Kumar PandeyI assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.

(Signature of the Candidate)

Manav Pal

Roll No.: 119011212

Enrollment No.: 1130320018

Appendix-III

CERTIFICATE BY GUIDEThis to certify that the report of the project submitted is the outcome of the project work entitled JK Tyre Marketing Strategies carried out by Manav Pal bearing Roll No.:-1190111212 & Enrollment No.:-1130320018 Carried by under my guidance and supervision for the award of Degree in Bachelor of Business Administration of Maharshi Dayanand University, Rohtak, Haryana.

To the best of the my knowledge the report

i) Embodies the work of the candidate him/herself,

ii) Has duly been completed,

iii) Fulfils the requirement of the ordinance relating to the BBA (II) degree of the University and

iv) Is up to the desired standard for the purpose of which is submitted.

_______________________

(Signature of the Guide)

Name: Mr. Pramod Kumar Pandey Designation: Assistant Professor Department: Management Name & Address of the Institute JIMS Vasant KunjThe project work as mentioned above is hereby being recommended and forwarded for examination and evaluation.

Appendix IV

ACKNOWLEDGEMENT

I would like to express my sincere thanks to JK Tyre, for giving me the opportunity to carry out the Internship Program in their organization.

I am very thankful to Mr. Pramod Kumar Pandey (Project Guide), for giving me the opportunity to complete my training in JK Tyre and giving me the guidance and interest evinced throughout the preparation of this project.

I take this opportunity, also to express my love and sincere thanks to my family members and friends for their support and advice during various stage of work.Last but not the least I thank God almighty for giving me the support for the completion of the task.

_______________________

(Signature of the student)TABLE OF CONTENTSS. No TOPICPage. No

Chapter 1 Introduction

1-511.1. Overview of Industry as a whole

1.2. Profile of the Organization

Origin

Recent Achievements

Mission & Vision

Products

Organization Structure

1.3 Introduction to the Topic/Title/Problem Studied

Chapter 2 - Objective & Methodology

52-582.1. Objectives of the Study

2.2. Research Methodology

Research Design

Sources of data

Sampling Technique

Sample size, if any

Methods of data collection

Tools and techniques of analysis

2.3. Limitations of the Study

Chapter 3 - Data Analysis & Interpretation

59-76

Chapter 4 - Findings

77-78

Chapter 5 - Recommendations

79-80

Annexures

81-87

Questionnaire/s

Tables/Graphs/ Annual Reports of Company/Industry etc.

Any other relevant documents

Bibliography/References

88-89CHAPTER-1INTRODUCTIONINTRODUCTION

1.1. Overview of Industry as a whole

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.

Analysis of any industry would require a through study along with critical analysis to know the exact nature of the business. This study of Indian tyre industry is no exception.

This project is undertaken to study the nature of Indian tyre industry along with its different shades that affects Indian economy. The study includes analysis of various key components like, growth, competitors, and foreign threats.

To gain in depth knowledge, it was important to study one brand in Indian tyre market and then have a competitors analysis with other players. For this purpose JK TYRES is analyzed as epicenter for gaining Marketing strategies as well as issues hampering the tyre industry.

Strategy is a word that generates much confusion because different people use it in different ways. And of course, there are different levels of strategy. For example: Corporate Strategy, Marketing Strategy, Advertising Strategy, Creative Strategy, Media Strategy. Regardless of level, strategy can be defined as the overall direction which summarises how all the detailed tactics achieve a specific objective. Here is an example of three competitors with three different marketing strategies in the tyre market: Goodyear chose a strategy of mass volume, low cost market leadership.

Michelin chose a product development strategy and invested in new technology and research and development to develop the radial tyre. This eventually redefined customer needs and made the cross-ply tyre obsolete.

Armstrong Rubber adopted a third strategy: exploiting specialist application by focusing on special tyres for agricultural, aviation and civil engineering market segments.

Strategies are chosen from a range of carefully considered strategic options. American author Michael Porter identified some core generic strategic options: Cost, Differentiation and Focus. This means that you can choose whether to compete on price, or differences in the features and benefits of your product, or you can compete by focusing on specific target markets and serving them better than anyone else.

You can of course have more than one strategy. Here's Microsoft's Euaropean Marketing Director.

"If our goal is to achieve a certain level of market share within a product category we could decide that, let's say we needed to achieve 50% market share. We could determine that our strategy would be to get 25% of that market share by encouraging new people to buy spread sheets. So we would grow the overall market and consequently achieve 25% market share. To secure the other 25% market share our strategy could be to progressively attack one of our competitors customer bases and encourage them to move from their product to our own. So, you can build up therefore two different strategies. One of market expansion and creation of demand and the other of a competitive stand point encouraging brands which are within a competitors' base."John Leftwich, European Marketing Director, MicrosoftThere is one important question that influences the choice of strategies: 'Does it develop and exploit our sustainable competitive advantage? Which strategy exploits our competitive strengths, or our competitive advantage? Is this advantage sustainable in the future or will competition eat away at this temporary advantage. The key term here is sustainable competitive advantage. Do we know what it is and do we know the strategies to exploit it? A typical competitive advantage might be better designed products, or perhaps more cost efficient production, or better customer service, or brand imagery.

Perhaps the easiest way of understanding strategy is: it's a summary of how you are going to achieve the objectives; it drives and summarises the tactics. It's 'the big picture'. It often pans over a longer period of time than shorter term tactical activities. The choice of strategy is influenced firstly by objectives, and secondly by the resources available. For example: developing superior products depends on having excellent research and development facilities and people - or at least it depends on having the money to buy the facilitates and also the time to recruit and build a Research and Development team. So the dimensions of marketing strategy can include: objectives and resources, the scale of operation, a summary of marketing mixes, positioning, target markets and timing - do we want to be 'first to market' or come in later with a 'Me Too' product?. Finally, strategy and tactics, have military meanings. It's no coincidence that there are several books written on marketing warfare. The ultimate, for me at least, is Tsung Szu's ancient Chinese 'Art of War'. Although it was written in 500BC it provides a rich source of reading for any budding marketing strategists - and maybe it has been used extensively by some very successful global companies already.

THE INDIAN TYRE INDUSTRY-AN OVERVIEW

Highlights

The tyre industry is a Rs. 12,000 crore industry. The fortune of this industry depends on the agricultural and industrial performance of the economy, the transportation needs and the production of vehicles. While the tyre industry is mainly dominated by the organized sector, the unorganized sector holds away in bicycle tyres. In the last five years (2008 to 2009), the industry managed to achieve a compounded annual growth of only 4.40 per cent. However in the last fiscal the industry registered a growth of 7 per cent.

Natural rubber constitutes 25 per cent of the total raw material cost of the tyres. The ratio of natural rubber content to synthetic rubber content is 80:20 in Indian tyres, whereas world wide, the ratio of natural rubber to synthetic rubber is 30:70. The overall recession in the Indian economy and especially the automobile sector continued for 3-4 years. The largest hit among the auto sector was the commercial vehicle segment. Tyre industry is capital intensive, and as production is released in spurts, it leads to constant demand-supply imbalances and consequent cyclically in prices.

As raw materials form 70% of the costs, variable costs are very high. Profit margins are therefore thin. Production process is technology intensive and globally huge sums are invested in R&D. Tyre demand is a derived demand, dependent on the auto industry.

Excellent Powerpoint Slides on Marketing and Strategy

In this section, you will find 14 excellent powerpoint slides on marketing and strategy. All slides are designed in powerpoint files (ppt) so that you can modify and immediately use for your own learning process.

Elements of Marketing Strategy

A marketing strategy is composed of several interrelated elements. The first and most important is market selection: choosing the markets to be served. Product planning includes the specific products the company sells, the makeup of the product line, and the design of individual offerings in the line.

Marketing Mix and Strategy

A marketing strategy outlines the manner in which the marketing mix is used to attract and satisfy the target market(s) and accomplish an organization's objectives. Specifically, marketing strategy is develop by considering the following factors.

Marketing Plan Outline

The following article explores key components need to be included in designing an effective marketing plan. First element: Product Performance. Two to three paragraphs summarizing the product's performance relative to last year's plan, along with explanations of variances from the plan. Any research conducted on product performance or quality can be included in this section as well.

Key Elements of Brand Equity

Brand equity is a set of brand assets and liabilities linked to a brand, its name and symbols, that add to or subtract from the value provided by a product or service to a firm and/or to that firm's customer. For assets or liabilities to underlie brand equity they must be linked to the name and/or symbol of the brand.

12 Steps for New Product Development

New product development can play a variety of roles in defining corporate strategy to gain competitive advantage. This variability makes the process of new product development subject to the emerging organizational issues of the day. In general, a long-run, focused, and ongoing strategic commitment to attractive market opportunities should define the role of new product development. New product development should be integrated into an organizations strategy and significantly contribute to its perpetual renewal.

Positioning Strategy

All marketing strategy is built on STP: Segmentation, Targeting, and Positioning. A company discovers different needs and groups in the marketplace, targets those needs and groups that it can satisfy in a superior way, and then positions its offering so that the target market recognizes the company's distinctive offering and image.

SALIENT FEATURES

The Indian tyre market is expected to grow by 12% this year.

As automobiles have become more sophisticated, technology has become key to success in this sector.

Truck and bus segment account for 60% of the total tyre market by value.

Passenger car radials are the most profitable but because of poor road conditions in India; truck radials are yet to catch on.

It will take at least 5 years for light trucks and over 10 years for heavy trucks to reach 25-30% radialisation.

With the large additions in capacity over the last two decades, tyre companies have found themselves hard-pressed to maintain market share.

THE INDIAN TYRE INDUSTRY

Company wise figures

CompanyFY99 (in nos.)DIVISION OF TYRE

MARKET (%)

Excludes 2/3

Wheelers tyres

Apollo Tyres269,01310.7

Birla170,6405.6

Ceat279,76417.0

Goodyear19,72111.4

JKI/Vikrant424,22918.7

MRF232,57425.1

Modi Rubber173,9049.9

Sector Comments

Ever since the first Indian tyre company, Dunlop Rubber Company (India) was incorporated in 1926, the tyre industry has grown rapidly and today it is a Rs. 12,000 crore industry. India has 2.61 lakhs villages, connected by 6.23 lakhs kms of metalled roads and 9.81 lakhs kms of unmetalled roads. These villages are linked to small towns and cities. There is a daily traffic of over 4.12 lakhs trucks, 1.27 lakhs buses, 7.23 lakhs cars, and thousands of taxis, two-wheelers, tractors and animal driven vehicles on Indian roads. There exists a vast potential for the tyre industry in India. The fortune of the tyre industry depends on the agricultural and industrial performance of the economy, the transportation needs and the production of vehicles. Hence, this is a very sensitive industry, which has to adapt itself to a highly volatile environment.

Market Profile

While the tyre industry is mainly dominated by the organized sector, the un-organized sector holds sway in bicycle tyres. The major players in the organized tyre segment consist of MRF, Apollo Tyres, Ceat, and JK Industries, which account for 63 per cent of the organized tyre market. The other key players include Modi Rubber, Kesoram Industries and Goodyear India, with 11 per cent, 7 per cent share and 6 per cent share respectively. Dunlop, Falcon, Tyre Corporation of India Limited (TCIL), TVS-srichakra, Metro Tyres and Balkrishna Tyres are some of the other players in the industry. MRF, the largest tyre manufacturer in the country, has strong brand equity. While it rules supreme in the industry, other players have created niche markets of their own.

Sector specifics

The tyre industry is a major consumer of the domestic rubber production. Natural rubber constitutes 80 per cent of the material content in Indian tyres. Synthetic rubber constitutes only 20 percent of the rubber content of a tyre in India. World wide, the ratio of natural rubber to synthetic rubber is 30:70. Apart from natural and synthetic rubber, rubber chemicals are also widely used in tyres.

Most of the RSS-4 grade natural rubber required by the Indian tyre industry is domestically sourced, with only a marginal amount being imported. This is an advantage for the industry, since natural rubber constitutes 25 per cent of the total raw material cost of the tyres. The two types of synthetic rubber used in tyres are Poly Butadiene Rubber (PBR) and Styrene Butadiene Rubber (SBR). The former is used in most of the tyres, while the latter is mainly used in the radials for passenger cars. Synthetic rubber accounts for 14 per cent of the raw material cost. Unlike in the case of natural rubber, India imports 60 per cent of its synthetic rubber requirements.

Apart from rubber, major raw materials are nylon tyre cord and carbon black. The former is used to make the tyres strong and impart tenacity to it. The latter is responsible for the colour of the tyre and also enhances the life span of the tyre. Nylon tyre cord comprises 34 per cent, while carbon black accounts for another 13 per cent of the raw material cost. In India, the carbon black used is of the N660, N220 and N330 variety.

To sum up, the tyre industry is highly raw-material intensive, with raw material costs accounting for 70 per cent of the lost of production. Fortunately for the industry, the rubber and carbon black prices have taken a beating recently, which means lower costs for the tyre industry. The export-import policy allows free import of all types of new tyres and tubes. However, import of retreaded tyres, either for use or for reclamation of rubber is restricted. This has led to used tyres being smuggled into the country under the label of new tyres except natural rubber are under open general license (OGL), only import of natural from Sri Lanka is eligible under OGL.

Sector Trends

Cross ply tyres have been used in India for several decades. In these tyres, the ply cords run across each other or diagonally to the outer surface of the tyre. Rayon and nylon tyre cords are used as the reinforcing medium. These tyres can be retreaded twice during their lifetime and are hence preferred by Indian transport operators who normally overload their trucks. A vehicle with the normal carrying capacity of around 12 tones is usually loaded with double the capacity. Moreover, one also has to contend with the bad suspensions and bad road conditions. No wonder, 95 per cent of the tyres used in India are cross plies. Radial tyres have their cords running radially from bead at 90-degree angle to the rim or along the outer surface of the tyre.

The reinforcing mediums used in these tyres are polyester, nylon, fiberglass and steel. Hence, these tyres are 20 per cent more expensive than the cross plies. But they have a longer life and provide lower fuel consumption. The unhealthy condition of the Indian roads has resulted in radial tyres accounting for only 5 per cent of the tyre industry as against a global trend of 60 per cent. With two-thirds of the capacity of all major tyre manufacturers being reserved for radials, this is a real cause for concern.

Tyre Industry in India comprises of 40 tyre companies (53 factories), 12 companies account for over 85% of total production (In Nos.)1.2 Company profile of the organization

Detailed Study of JKJ.K Organization founded over 100 years ago ranks within the Elite private groups in terms of assets and sales. The Groups operations can best be characterized as multi-business, multi-product and multi-location with head office in New Delhi, the capital of India. The Group has a distinguished record of being pioneers in introducing several new products and processes into India for the first time.

1.2.1 Origin:

It comprises of a number of industrial and commercial companies, exceeding 70 in number, most of them public limited, in which J.K Organization has controlling interest ranging from 35 to 70%. In the major public limited companies, there are a large number of public shareholders aggregating over 8,00,000.

J.K. Organization has achieved a number of important technological break-through and has an impressive record of FIRSTS in India, prominent among them being:

1944 First in India to produce Aluminiurn Virgin Metal from Indian Bauxite. The Company was nationalized in 1973.

1949 First in India to manufacture Steel Engineering in 1973.

1969 First to manufacture Acrylic Fibres in India.

1977 First to produce Steel Belted Radial Tyres for passenger cars , trucks and buses in India.

1980 First in the World to make Steel Belted Radial Tyres for 3 wheelers.

1984 First to produce White cement in India using dry processed technology, etc.

ASSETS AND TURNOVER: Member units of J.K. Organization have total assets of over US $ 2.4 billion and these are expected to touch $ 3.0 billion within the next 2 years.

PRODUCT AND SERVICES: J.K. Organization has very diversified manufacturing activities such as Synthetic Fibres like: Nylon, Polyester, Acrylic; Paper & Boards; Cement; Automobile Tyres & Tubes; Cotton, Woollen and Jute Textiles; Engineering; Plastic Processing; Agrochemicals; Hybrid Seeds; Cosmetics; Audio & Video magnetic tapes; Power transmission including V-Belts and conveyor Beltings, Automotive Belts, Oil Seals; System Engineering, Industrial, Electronics and Material handling systems, etc.

The group is further diversifying in other fields like Petrochemicals, steel, Drugs & Pharmaceuticals, Food & Dairy Products, Electronics, Computer Software, Power Generation, Rubber hoses, etc. The Group exports number of products including Jute Textiles, Woollen textiles, Readymade Garments, Engineering files, Tyres and Tubes, Synthetic Fibres, Paper, Marine products, Spices, etc. The entrepreneurial, managerial and technical expertise available within the J.K. Organization has enabled it to establish and operate several projects in India and abroad.

Most of the industries promoted and established by J.K. Organization are today the leaders in their product lines in India. The success of a manufacturing enterprise depends, especially in a competitive consumer product line, on the efficiency of its manufacturing and marketing organization and more so in India where the marketing activities have to be very competitive. In fact, the success of J.K. Group of companies is based primarily on the latest technology, innovation, and continuous Research & development policies as also on its effective marketing set-up, which is involved on a sustained basis in:

Maintaining continuous touch with the customer,

Identifying the needs of the consumer,

Establishing effective channels of distribution,

After-Sales Service and consumer satisfaction.

J.K. Organization has well-established necessary infrastructure and capabilities to market a very wide range of products, which include core sector industrial products, engineering products, consumer goods, agrochemicals, etc.

To cater to the needs of the various consumers for the goods manufactured by the group and to provide prompt delivery and services, as, when and where required, the organization has established:

Over 50 well-equipped branch offices all over the country for distribution, control and monitoring product lines;

Four Zonal Offices at:

New Delhi

Bombay

Calcutta and

Kanpur

To support and monitor the branch offices.

Network of over 5,000 distributors and retailers for distribution and sales promotion of different products.

Besides the above, the Group has established, wherever required, number of show rooms for retail trade as in case of woolen Textiles. The large distribution network has enabled the Group to enter very successfully into many competitive lines of manufacture such as Paper, Cement, Automobile Tyres & Tubes, Synthetic Fibres, Agrochemical, Cosmetics, etc. The Group enjoys high reputation for the quality of their products and has been able to capture reasonably high share of the market within a short time.

The group has in-house setup for handling, advertising, market service, sales promotion, supply/demand forecast, government liaison and coordination supported by some of the leading outside marketing and advertising agencies and arrangements with diverse media and publicity channels like newspapers, magazines, financial weeklies, cinema slides, commercials on TV etc., depending on the type of product.

J.K. Organization is highly competent and eminently suited to promote and operate industrial enterprises as also plantations. It offers Entrepreneurial, Commercial, Managerial and Technical expertise for launching new projects right from concept to commissioning, which would include:

Identification and development of new projects

Selection of Technology

Preparation of Feasibility Reports

Arranging Basic and Detailed Engineering of the Projects

Procurement and Inspection of Equipment & Machinery

Training of personnel

Erection and commissioning of Plants

Running and Management of the Plants

Social & Welfare Activities

J.K. organization, conscious of its social responsibilities and dedication to improving the quality of life of its people, strives to serve the community in diverse fields of social welfare. These include promotion of education, religious and ethical values, provision of medical and modern living facilities and amenities.

J.K. Industries is a mega corporate entity that is emblematic of excellence, diversification and pioneering new technologies. A part of JK Organization which ranks among the top private groups private groups in India, J.K. Industries is committed to self reliance and follows an ethic that views marketing strategy as an index of achievement. Over the years, the company has expanded and diversified its business portfolio. It has developed into a multi product, multi-location corporate entity comprising of following business divisions:

1.2.2: Achievements

Achievements

JK Tyre is India's leading four-wheeler tyre manufacturer. It has four state-of-the-art plants strategically located in Rajasthan, Madhya Pradesh and Karnataka. The company recently embarked upon an international odyssey by making its first international acquisition in the form of Compania Hulera Tornel a well-established

tyre company in Mexico. Tornel has three manufacturing plants in Mexico with a combined capacity of 6.6 million tyres per annum. The advantages of this acquisition have been immense but possibly the most significant is that it provides JK Tyre access to the NAFTA trade block and the emerging economies of Central and South America. In addition to the above manufacturing facilities, JK Tyre also has strategic international sourcing arrangements in South East Asia and China.Today, JK Tyre is India's leading exporter with presence in 80 countries across six continents and enjoys a premium brand status in various markets, including the US. In India, JK Tyre is a preferred partner to some of the best names in the automotive business including Maruti Suzuki,Tata Motors, Ashok Leyland, Fiat, AMW, Mahindra & Mahindra, Eicher, Force Motors,TAFE etc and is also a leading supplier for defence vehicles and to various State Transport Undertakings. In fact, Delhi Transport Corporation the world's largest eco-friendly fleet of public transport buses rides exclusively on JK Radial Tyres. JK Tyre has established a nationwide network of 127 stocking points, 4000 dealers and an exclusive franchised network of retail outlets branded as 'JK Tyre Steel Wheels'. These 125 elite outlets are equipped with sophisticated wheel servicing equipment and provide cutting-edge service to consumers. Today, JK Tyre Steel Wheels is rapidly expanding with an aggressive thrust in nonmetro towns.

History

JK Tyre commenced operations in 1977 when it set up its first tyre manufacturing plant, with an installed capacity of 500,000 tyres per annum in Kankroli, Rajasthan. Keeping pace with the growth in the market and the demand for its products, JK Tyre established a new state-of-the-art passenger radial manufacturing facility at Banmore near Gwalior in Madhya Pradesh. In 1997 it made a strategic acquisition of Vikrant Tyre, a Government of Karnataka undertaking. In a short span, JK Tyre had turned it into a qualitydriven company with all four ISO 9001, QS 9000, ISO 14001 and TS 16949 accreditations to its credit. This indeed is a true reflection of JK Tyre's commitment to systems and its quality-oriented approach. S. Sarath Kumar's lap times at the MRF Challenge broke records set by seasoned professionals. S. Sarath Kumarwon the 2010 National Championship with 7 victories and lap records. [Shawn Abraham] sets the record of the fastest lap in One make championships.

Sidvin Indian National Motorcycle Racing Championship

Ten10 Racing participated in almost all classes in the Sidvin Indian National Motorcycle Racing Championship 2010 (INMRC)and registered the fastest laps at Saturday's qualifying, with riders securing Pole in all 3 categories - Group D (stock category), Group B (modified category for Indian bikes) and Group A (600cc Supersport). Vikram V. qualified 3rd on his 600cc bike and was placed in the front row on the grid, whereas, Sameer V. qualified 6th on the grid.

JK Tyre FMSCI National Racing Championship

Ten10 Racing made their presence felt in their first race at the historic Irungattukottai Track on August 12, 2009 with two podium finishes in both the Group 'A' Superbike races at the JK Tyre FMSCI National Racing Championship.

WTR-Ten10

The Ten10 Racing Team joined with the Sammarinese WTR Team to enter the world of MotoGP in the 125cc class for 2011 MotoGP season

Ten10 Racing that has tied up with the San Marino-based WTR Team for a provisional entry in the 125cc class. The joint venture will be called WTR-Ten10 Racing Team. The team will be field two riders, one Indian (S. Sarath Kumar) and one Italian (Francesco Mauriello). This is the first time that an Indian rider will make it to the MotoGP grid. These developments mark India?s entry onto the global motorcycle motorsport. The country prepares to hold its first motorcycle GP in 2012 at the Jaypee Circuit in Greater Noida. The contract includes a 3-year deal of technical-commercial partnership between the two teams. The team is named "WTR-Ten10 Racing Team", a wanted choice aimed at representing the strong cohesion of the partnership: passion for the sport, same principles, ambitions and future growth expectations are the values commonly shared together.Besides entry into the 125cc class, both the teams will continue to race in the upcoming Moto3 class for 2012 and also look at getting into the Moto2 category in due course.

MotoGP

Road Racing World Championship Grand Prix is the premier championship of motorcycle road racing and is currently divided into three distinct classes: 125cc, Moto2 and MotoGP. The 125cc class uses a two-stroke engine.125cc machines are restricted to a single cylinder and a minimum weight of 80 kilograms. First instituted in 2005, all riders in the 125cc class can not be older than 28 years or 25 years for new contracted riders participating for the first time and wild. The 125cc class will be replaced in 2012 by the Moto3 class. This class will be restricted to single cylinder 250cc 4-stroke engines with a maximum bore of 81mm. Ten10's partnership with WTR enables it to gain entry into the MotoGP in the 125cc class.

1.2.3: Mission & Vision

MISSION OF THE COMPANY

To be the largest & profitable tyre in India.

To retain no 1 position in truck & bus segment and to be amongst top two in all other four-wheeler tyre segment.

To make truck/ bus radial operations profitable and retain leadership in the passenger radial market.

To be largest Indian tyre exporter

To is customer-obsessed company

To enhance value to shareholders an service to stake holders

To develops highly motivated team with a sense of Amanda.

To excel as value driven organization.

To be the most preferred tyre brand in India.

VISION

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

MISSION

Be a Customer Obsessed Company - Customer First 24x7

No.1 Tyre Brand in India

Most profitable Tyre Company in India

Motivated and Committed team for excellence in performance

Be a Green Company

Deliver Enhanced Value to all stakeholders

Enhance global presence through Acquisition / JV / Strategic Partnerships

GLOBAL VISION OF THE COMPANY

J.k tyres branded products are sold in nearly sixty countries across six countries. J.k

Tyre is the number one exporter of tyres from India to developed nations like U.S.A. this Has lead to repeated recognition such as prime ministers national export award top? Export award of chemical and allied products export council lac export award for exports

1.2. 4. Product range of the company

The TITANS of the automotive industry forge ahead J.K. Tyre has been at the forefront of the radial revolution in India. Since inception, we have been regularly releasing high quality & technology products, which have withstood the test of time. It is our philosophy to continuously anticipate and understand the customer requirements, convert them into performance standards for our products and services, and meet these standards every time.

APOLLO TYRES

J.K TYRES

MODISTONE

BIRLA TYRES

CEAT

MODI RUBBER LTD

CEAT INDIA LT

MRF LTD

FALCON TYRE LTD

PREMIER TYRE LTD

GOODYEAR INDIA LTD

VIKRANT TYRE LTD

Industry turnover Rs 100,000 Million

Installed capacity 5730 Million Numbers

Production 4140 Million Numbers

Capacity Utilization

72%

(2009-2010)

Taxes and Duties paid Rs 28,500 Million

SALIENT FEATURES OF INDIAN TYRE INDUSTRY

Adaptability & Absorption

Successful and fast absorption of international technology and availability of technical expertise and professionals to absorb and implement technical advancements.

Innovativeness

Several innovations introduced to apply international technologies/ processes to create tyres suitable for Indian road conditions.

Exports

Sustained exports for over a decade to more than 50 countries. All large tyre companies are exporting, with over 30% exports to US. Approx. 20% of total Truck & Bus tyres produced domestically is exported. All large companies are engaged in sustained exports as a long-term commitment.

Technology Progression

Within a span of four decades, technology progression from cotton (reinforcement) carcass to high performance radial tyres.

Indigenous and Ready Availability

New vehicle manufacturers, while launching a series of latest models, have easy access to (and ready availability of) indigenous tyres of their respective specifications and matching international standards.

To Latin America.

Ever since its inception it has been JK Tyre's belief in the value of technological superiority that has made it grow by leaps and bounds. This division produces and sells tyres and tubes under the brand name "JK Tyre" for Truck, Buses, Passenger Cars, Jeeps, Light Commercial Vehicles, Multi Utility Vehicles and Tractors. The company pioneered Steel Radial Technology in India in 1977 and continues to be. The industry leader in the Radial segment in India. JK Tyre is the only Tyre Manufacturer in the country to produce high performance 'T' & 'H' -rated steel radial tyres. JK Tyre has consciously followed a policy of continuously modernizing and expanding its tyre manufacturing facilities to retain its edge in the market place.

Our customer base covers virtually the entire Original Equipment Manufacturers (OEMs) in India together with Replacement Market for four wheeler vehicles, Defence and State Transport Units. Besides India, we have a worldwide customer base in over 45 countries across all 6 continents. To keep pace with the market demand as well as technological leadership in Indian market, J.K. Industries acquired Vikrant Tyres Limited, Mysore in 1997. J.K. Industries and Vikrant Tyres Limited are the only tyre companies in India to have received all three ISO 9001, QS 9000 and ISO 14001 certificates. With three plants located in Rajasthan, Madhya Pradesh and Karnataka, JK Tyre is the largest manufacturer of truck and bus tyres in India. The truck and bus tyres produced account for nearly 74% of the total tyre business in India, thus giving JK Tyre an undisputed position. Additionally, JK Tyre is the only manufacturer of truck/ bus steel radial tyres, and the second largest manufacturer of 4-wheeler tyres in the country. Also, JK Tyre is the largest exported tyre brand from India. It was awarded the CAPEXIL's Highest Export Award for 1997-97 by FIEO. It enjoys preferred premium brand status in Truck Bias market in USA and across many markets in Africa, Middle East and South East Asia.

JK Tyre plans Rs 170-cr expansionJK Tyre is investing Rs 170 crore this year to augment production capacity at its car and truck radial facilities and aims 15 per cent top line growth at Rs 2,300 crore this fiscal due to rising car tyre sale. "We have earmarked Rs 170 crore to increase production capacity at two of our manufacturing units, one for cars and the other for truck radials," JK Tyre vice chairman Raghupati Singhania told PTI. The production capacity at the passenger car tyres unit will be hiked to 3.6 million units from 3.2 million units at present while production at the truck radial tyre plant will be augmented to 3.5 lakhs units over 2.5 lakhs units. The Rs 170 crore investment will be a mix of internal accruals and debt. At present, JK Tyre has 22 per cent market share in the Rs 12,000 crore Indian four-wheeler tyre market, which produces 20 million units annually. The JK Industry flagship targets 25 per cent rise in export earnings at Rs 400 crore during 2008-09 over Rs 320 crore last year. The company ships tyres to 65 countries, including Australia and the Southeast Asian countries. JK Tyre also sources tyres from a number of countries like China and European nations for both domestic and international markets.

Colored Tyres from JK Tyre

India's No.1 manufacturer of four-wheeler tyres and pioneers of radial tyre technology in India today unveiled nation's first eco-friendly coloured radials. Developed indigenously at JK Tyre's state-of-the-art R&D facilities HASETRI (Hari Shankar Singhania Elastomer and Tyre Research Institute), these tyres employ path-breaking technology, which replaces the traditionally used Carbon Black with environment friendly material Silica. Besides being environmentally less hazardous, silica also promises higher fuel efficiency as a result of itslower rolling resistance.

These tyres will also have longer life due to advanced compounding technology - offering excellent performance; handling and breaking that are a hallmark of tyres from JK Tyre. Results of JK Tyre's pioneering research initiatives into new-age environment-friendly raw materials, these tyres are made from silica based tread compounds. The tyres also offer higher durability as compared to normal radials and offer better resistance against cuts - thanks to its superior compounding technology.

Showcasing the stunning next generation tyres - Mr. Raghupati Singhania - Managing Director, JK Industries, said, " We have always been conscious and committed towards the cause of environment and its conservation. Indeed, it was the inspiration from nature's best gift to mankind - colour, along with the technical competence of our R&D team, which lead to the development of the product you're seeing today. In line with it's pioneering spirit, JK Tyre has again set an example for the entire Indian automobile industry to become more sensitive towards the environment. Celebrating our 25th year of glorious existence, we dedicate this product to our nation on the eve of the World Environment Day. Welcome toa colorful journey ahead."

The new radials, to be initially available in green colour, will be manufactured at state-of-the-art Banmore radial tyre plant of JK Industries. To be launched in a phased manner, they would be currently available in the major cities such as Delhi, Mumbai, Bangalore, Chennai, Cochin,Pune and Chandigarh.

These new tyres will not onlyadd a dash of glamour to cars on the road, but also promise to transform the image of a tyre from just an auto accessory to a key-differentiating feature which is sure to catch fancy of customers across all segments.

Apart from being eco-friendly, the coloured tyres promise to make a lifestyle statement. These revolutionary tyres are currently available in the sizes 165/65/R13 Tornado Green (for Hyundai Santro & Tata Indica) & 175/70/R13 Ultima XPS Green (for Ford Icon, Hyundai Accent, Fiat Siena, Opel Corsa, Honda City, Daewoo Cielo, Maruti Esteem).

J K INDUSTRIES COMPLETES RESTRUCTURING

Demerger of Sugar and Agri-Genetics and Merger of Vikrant Tyres creates a Tyre giant The Board of Directors of J K Industries Limited (JKI), a flagship company of H S Singhania Group, today announced the completion of the restructuring of its Businesses. As a result JKI, upon demerger of its non-tyre businesses and merger of Vikrant Tyres has emerged as a Tyre giant with Automobile Tyres as its sole business. Non tyre business viz. Sugar and Agri seeds have been demerged into two separate entities namely J K Sugar Limited (JKSL) and J K Agri-genetics Limited (JKAGL) respectively.

Commenting on the restructuring initiatives, Mr Hari Shankar Singhania, Chairman, JKI said "This is a forward looking strategic step for the Company by creating strong business focussed entities, which will be able to leverage their core competencies in the competitive business environment both in the domestic as well as global markets. This reorganization and creation of three business focussed entities opens up tremendous possibilities of strategic alliances and enhancement of technological prowess which would result in further strengthening market leadership in these important sectors of Indian Economy".

JKI's main business is Tyres sold under the well-known brand "J K Tyre". Some time back the Company had made foray into Agri businesses by setting up facility for manufacture of Sugar and established research farms and facilities for production of Hybrid and High Yielding Seeds. These businesses will now have better focus on a stand-alone basis. JKI had acquired majority stake in Vikrant Tyres Ltd. (VTL) in 1997 and turned it around in a short period of one year. Merger of VTL with JKI is a logical step forward to achieve the benefits of scale, synergy, logistics and marketing, besides greater financial strength. The consolidated tyre entity will increase its global competitive strength thereby significantly contributing to better profitability and future growth, thus maximizing shareholder value. J.K. Tyre is the foremost manufacturer of four wheeler tyres and is the largest bus and truck tyre manufacturer.

Mr Singhania added that JK Tyre pioneered radial technology in India way back in 1977 and is the leader in radials. It is the only Indian manufacturer producing the entire range of truck/bus, LCV, MUV, Jeep, Car and Tractor radials. It has taken upon the challenge of leading the radial revolution in commercial vehicle segments as well. JK Tyre is first and the only manufacturer of truck radials in India. It has a state-of-the-art Truck Radial plant in Mysore, which is poised for further expansion of the capacity. JK Tyre's expansion of bias truck tyres and passenger radials is nearing completion, which will raise its radial passenger capacity by 50%. This shall further strengthen its market share. JKI's turnover in a years time would be Rs.2, 500 crores, which is expected to increase to Rs.5, 000 crores by the year 2009. JK Tyre is the largest exporter of tyres from India accounting for 30% of total tyre exports. It exports to over 60 countries in all the 6 continents including USA, Latin America, Africa, Middle East, South East Asia, Australia, etc. It has launched its products in China and is also out-sourcing tyres from China for international markets. JK Sugar's current capacity of 4,300 TCD is poised for expansion to 5,000 TCD. Its co-generation capacity of 19 MW and export of power to UP Power Corporation adds great value to the business.

JK Agri-Genetics Ltd. is a leading producer of Hi-yielding Hybrid seeds under its brand name "JK Seeds". It produces seeds for a large variety of crops such as Bajra, Jowar, Cotton, Maize, Rice, Sun Flower, Tomato, etc. It is the largest in Bajra and leader in Jowar and Cotton. JK Seeds are sown by 8 lakhs farmers in 15 states covering an area of 2 million acres under cultivation. It has a state-of-the-art Biotechnology Lab in Hyderabad and research farms to carry out its research activities.

Both these Agri businesses of Sugar and Hybrid Seeds have tremendous scope for growth, looking at India's fundamental strength in Agriculture. The shareholders of JKI will reap benefits by creation of these 3 focused entities. They will be receiving the share of J K Sugar and J K Agri-genetics as well in the same proportion as their existing holding in JKI. The shareholders of VTL shall also be rewarded. For every holder of 100 shares of VTL, the shareholder will be receiving 45 shares of JKI i.e. in the proportion of 9 shares of JKI for every 20 shares held in VTL. This is a win-win situation for the shareholders in every respect.

TANKER LUG/FEATURES & BENEFITS

Specialized tyre for tanker operations and vehicles carrying dynamic load.

16 PR Nylon Tyre for Rear Fitment On Normal Load Vehicles.

Optimum design and premium Lug depth for Extra High Mileage for Normal Load Applications.

Computer Designed Tread for Uniform wears.

Wide Deep Pyramid Lugs for all types of road conditions.

Wider Center Rib for Higher Initial Mileage and Tread life.

Special tread compound for more mileage.

INNOVATIVE CONSTRUCTION Super Strong Casing, which gives Maximum Service and Better Retreadibility.

Deep Tread gives High Mileage.

SUPERIOR PERFORMANCE

Dual Compound Tread to ensure Structural Stability and High Mileage Potential.

Cut Ressistant.

Runs Cooler For High Performance.

Gives Extra High Mileage.

Renders Excellent Service and Clean Casing.

1.2.5 Organization Structure

S.W.O.T ANALYSIS OF J.K TYRE

STRENGTH.

Best of the technology used for production.

State govt incentives are available since the manufacturing plants are located in socially and economically backward areas.

High production capacity

Sound dealer network throughout the country

Biggest truck/ bus tyre manufacturer in India

Wide product range

Pioneer in radial tyre

Supplier to OEMS like telco m&m Mercedes Benz

Economics of scale provide a competitive edge over the others

Pricing is better as compared to other Indian tyre manufacturing company

The brand quality of jet track 39 of j.k and track king and star lug of vtl is found to be better than competing brand of Apollos amar&xt-7 and Ceats hcl 80 plus

They have good performance tyres for rainy as well as winter season this adds up to there line up of good tyre manufacturers.

J.K industries gives claim up to 50% of ruggedness while its major competitor entertained only up to 10% of ruggedness.

WEAKNESS

Quality control problems.

Slow dealer response.

No proper communication channel with dealers.

Fluctuating rates are disturbing the market price.

There is more swelling of tyres have been reported in vikrant.the quality of tyres are inferior to Apollo tyres.

The performance of tyre is found to be bad in summers.

J.k tyres performance in overloading is not satisfactory.

More manufacturing defects have been found out in j.k and vtl.

There is lack of equity in schemes for big and small dealers.

There have harsh payment policies as compared to mrf tyres.

Stock of vikrant tyres is inappropriate as complained by several dealers.

OPPORTUNITIES

Passenger car market growing @ 12% per annum.

Good export potential.

Still immense scope in truck/ bus radial market.

Two wheeler segments is still to be explored.

The upward trend of the share of road transport vs. train transportation is expected to strengthen further with govt. initiative for developing a network of multilane high ways and for giving shape to the golden quadrangle.

Eco friendly tyre is a hotcake in the market with no substitute.

There is tremendous potential in the Delhi area that opens the gateway for increasing the sales and capturing a larger to ast of market share.

The price to quality ratio of Apollo is similar to the price quality ratio of j.k tyres if the r&d work is done more in j.k some of the popular brands like jet track and jet track-39 the quality could be improve so that it could work better in summers with relative less increase in price.

j.k tyres has been found out to have poor performance in overloading which can be improve through R&D. however the quality of vikrant tyres in overloading has been found out to be superior. Tyre infinding its place infront as well as rear tyres.

The claim must be given with in 2/3 days as demand by most of the dealers and thus could enhance their claim services above atl.

There should be proper communication in disclosing the complaints of the dealers as early as possible.

There is a high demand for the promotional scheme that should be in the market regularly to boost up sales.

The scheme for the dealer and customers must be separate as Apollo launches attractive schemes for the dealers.

THREATS

The market is flooded with many competitors like atl ceat mrf Apollo Goodyear Birla in truck segment. Many new multinational players are going to launch their products in the near future. In order to save themselves and maintain and increase their market share they have to constantly incur expanse in R&D to have superior quality better technology and environment friendly.

There is a threat of price war that is set at the stage to have the cutthroat competition. The price quality ratio must have the competitive edge over its nearest competitor Apollo tyres.

In the overloading capacity the performance of tyre is not satisfactory as compared to its nearest competitor mrf & Apollo.

The mileage has unsatisfactory performance as compared to the multinational brands like Goodyear and mrf and national company like Apollo.

The shortage in availability which is currently noticed in all the companies in India if persist long time may lead to a set back in the brand image and also will loose the marketing strategy. The shortage especially faced by the smaller dealers may result in the purchase from the bigger ones may also affect the sales from companies premises.

Up coming competition in radial segment from countries like china & South Korea.

Liquid products are being transported through pipelines, which is again a major threat for tyre industry.

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 of marketing typically identifies the four P's of the marketing mix as referring to:

Product

Price

Promotion

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.

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 the price 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 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.

1.3 Introduction to the Topic/Title/Problem Studied

PROBLEMS OF THE ORGANIZATION

The study includes analysis of various key components like, growth, competitors, and foreign threats.

This study of Indian tyre industry is no exception. This project is undertaken to study the nature of Indian tyre industry along with its different shades that affects Indian economy. To gain in depth knowledge, it was important to study one brand in Indian tyre market and then have a competitors analysis with other players. For this purpose JK TYRES is analyzed as epicenter for gaining Marketing strategies as well as issues hampering the tyre industry.

Analysis of any industry would require a through study along with critical analysis to know the exact nature of the business.

competition information

THE company is one among the major players in the Indian tyre industry the main competitors being. Apollo MRF Ceat, Birla G- year Bridgestone.

The competition is not restricted to the product mix only but also to the price mix promotion mix product range quality product development product positioning and other areas in preview of marketing management.

J.K Tyre has successfully overcome the prevailing recession in the economy and further strength then its position vis--vis competitors by improved operations cost reduction and aggressive consumer focused marketing.

The rate of growth is much higher than the comparative growth in the industry.

Briefing about the CompetitiorGOODYEAR INDIA LTD: -Goodyear India ltd is subsidiary of Goodyear an American multinational that is one of the largest tyre manufacturers in the world. Goodyear has a substantial share in the global market and in 1955 it was 3rd among the top 20 tyre manufacturers in the world with a sales of $10105million. But Goodyear indicated is relatively enjoying a market share of about 6% and despite strong brand loyalty has not been able to overcome its increase in its cost.

MRF: - MRF ltd was established in 1960 manufacturers automobile tyre in collaboration with mans field tyre and rubber company U.S.A. MRF becomes the largest manufacturer in 1993 with a turnover of Rs 1500crore. The company makes automotive tyres conveyor belts tubes leather products and surface coaching. It was the largest producer of tyre in each and every segment in 1995-1996. Mrf enjoys high brand equity as well as a very good reputation both between consumer and dealers. Today mrf has a Vast network spanning 3000 dealers across India around 50 to 100 new dealers joining up every year. Today the company spends about Rs 40 crorers on advertising, which revolves around strengths and the vision of its pneumonic the mrf muscleman.

A special factory dedicated entirely to the manufacture of radials is being built up at Pondichery, MRF tyres were also chosen for fitment on the ford opal and feat uno further proofs its superior quality.

DUNLOP INDIA: - Dunlop world wide had been at the fore front of every development of pneumatic tyres, which is the actual name of tyres we use for 100 years after 100 years of establishment Dunlop tyre group is a global network, fully geared to meet the growing needs of the world market. Today Dunlop has the size economies and scale that enable it to invest in research and development and in modern facilities to manufacture products of highest quality. It has got technical collaboration with sumitomo rubber industries Japan Dunlop ltd U.K. currently under take over of Mr. Chhabria.

CEAT LTD: - set up in 1958 management under R.P. Goenka, technical collaboration with Yokohama rubber company Japan. Ceat ltd enjoys a market share of about 20%. It has found its position amongst the top manufactures in the country. It has manufactured a wide range of tyres and boosts of capacity utilization of 55%. It is the second largest car tyre manufacturers in the world with a turn over of $322million.

APOLLO TYRES: -set up in 1972 in Karla by industrialist Raunaa Singh with technical collaboration with general tyre international. Apollo is one of the fastest growing tyre companies in the world. Its strength lie in its aggressive marketing and this is reflected in sales growing of over 30% per annum for the last 5 years, the company produced truck lcv passenger car tyres. Apollo is tied up with s Kumars to manufacture-2 wheeler tyre to sell under the Apollo brand name Apollo is among top three manufacturers in the country and in 1995 it was 16th amongst the top 25 tyre manufacturers in the world with a turn over of about $376million.

QUALITY POLICY OF JK TYRES

We the people of JK Tyre will have an organization committed to quality in everything we do. We will continuously anticipate and understand our customers requirements, convert these into performance standards for our products and services and meet these standards for our products and services and meet these standards every time. Full marketing strategy - both internal and external is our motto.

Quality Management

ISO 9001: - JK Tyre worlds first tyre company to receive ISO 9001 certification for its entire operations in 1995 in one go. Our Quality Management System is completely integrated into all aspects of our operations.

QS 9000: - JK Tyre the worlds first tyre company to receive Quality Management System certification QS 9000, in 1998 for multi location operations. We are using QS 9000 system as a tool for continuous incremental improvement.

Environment Management System (ISO 14001): - JK Tyre recognizes the impact that our business has on the environment and takes our responsibilities for maintaining harmony with nature. We are the first tyre company in India to receive ISO 14001 certification for multi location operations in 1999.

E-mark

JK Tyre is the only Tyre Company in India having the E-mark certification on their products, a mandatory requirement for exporting tyres to European Markets.

DOT (Department of Transport)

JK Tyre has the DOT certification on its products, a mandatory requirement for exporting tyres to US Market.

We also have the certification from INMETRO a mandatory requirement for exporting tyres to Brazil (South America). This is a product as well as a system certification. Also this is a proof of superior quality of JK Tyre and our ability to meet stringent international standards.

THE CURRENT SCENARIO OF JK TYRESJK Tyres have risen by leaps and bounds by posting a net profit of Rs. 44.2mn in April, 03 as compared to Rs. 23.8mn in the corresponding period last year. This happened due to a rise in sales and operating margins.

Net sales raised due to a rise in demand for commercial vehicles and passenger cars. Operating margin (less other income) has risen fallen to a rise in prices of important petroleum based raw materials like carbon black and nylon tyre cord. The management has succeeded in keeping a check on interest costs, which, however, provided as a support to the bottom line.

The recent development of FIIs expressing their desire to sell their 44% stake in the company is still hanging fire with the management opposing such a move. The outlook for the company is not rosy, as it will be facing increasing competition from the likes of Apollo Tyres, Ceat and Goodyear.

BACKGROUND

JK derives its revenue from sale of automobile tyres, automobile tubes and automobile flaps and camelback/retreating materials.01 A small portion of the revenue comes from trading in tubes, flaps, garments and other articles. JK has a presence in almost all the segments of the tyre industry. It manufactures truck, bus, car, jeep, tractor (front, rear and trailer), and scooter and motorcycle tyres. The company has a market share of 14.8%.

Sales are concentrated in the truck and bus (T & B) tyre segment, which also forms the bulk of the market. 45 % production caters to the T&B segment. Next comes the passenger car segment with about 9.7% of total production catering to it. It also has a decent presence in the tractor segment with about 10% of total industry production.

MARKETIG STRATEGIES OF JK TYREStrategic thinking is key to the evolution of successful marketing strategies of JK tyre.

This involves the following analyses:

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.

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

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.

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.

Managing for result: With pressure on costs, prices, and margins, marketers will have to make effective utilization of every rupee spent in marketing.

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. See strategy dynamics.

Marketing strategy involves careful scanning of the internal and external environments. Internal environmental factors include the marketing mix, plus performance analysis and strategic constraints. External environmental factors include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement. Besides SWOT analysis, portfolio analyses such as the GE/McKinsey matrix or COPE analysis can be performed to determine the strategic focus.

Once a thorough environmental scan is complete, a strategic plan can be constructed to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation. A final step in developing a marketing strategy is to create a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan.

Types of strategies

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Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:

Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:

Leader

Challenger

Follower

Nicher

Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firms sustainable competitive advantage. The generic strategy framework (porter 1984) comprises two alternatives each with two alternative scopes. These are Differentiation and low-cost leadership each with a dimension of Focus-broad or narrow.

Product differentiation (broad)

Cost leadership (broad)

Market segmentation (narrow)

Innovation strategies This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:

Pioneers

Close followers

Late followers

Growth strategies In this scheme we ask the question, How should the firm grow?. There are a number of different ways of answering that question, but the most common gives four answers:

Marketing warfare strategies - This scheme draws parallels between marketing strategies and military strategies.

Strategic models

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (June 2010). Marketing participants often employ strategic models and tools to analyze marketing decisions. When beginning a strategic analysis, the 3Cs can be employed to get a broad understanding of the strategic environment. An Ansoff Matrix is also often used to convey an organization's strategic positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to pursue a defined strategy.

There are many companies especially those in the Consumer Package Goods (CPG) market that adopt the theory of running their business centered around Consumer, Shopper & Retailer needs. Their Marketing departments spend quality time looking for "Growth Opportunities" in their categories by identifying relevant insights (both mindsets and behaviors) on their target Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in market trends, segment dynamics changing and also internal brand or operational business challenges.The Marketing team can then prioritize these Growth Opportunities and begin to develop strategies to exploit the opportunities that could include new or adapted products, services as well as changes to the 7Ps.

Real-life marketingReal-life marketing primarily revolves around the application of a great deal of common-sense; dealing with a limited number of factors, in an environment of imperfect information and limited resources complicated by uncertainty and tight timescales. Use of classical marketing techniques, in these circumstances, is inevitably partial and uneven.

Thus, for example, many new products will emerge from irrational processes and the rational development process may be used (if at all) to screen out the worst non-runners. The design of the advertising, and the packaging, will be the output of the creative minds employed; which management will then screen, often by 'gut-reaction', to ensure that it is reasonable.

For most of their time, marketing managers use intuition and experience to analyze and handle the complex, and unique, situations being faced; without easy reference to theory. This will often be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the knowledge of the customer which has been absorbed almost by a process of osmosis, will determine the quality of the marketing employed. This, almost instinctive management, is what is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing, form favored by the theorists.

Business model

Customer engagement

Market segmentation

Pricing strategies

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.

Size of the market

How well the market is served

Prospective inches

Marketing mix required to succeed

Core competencies required

Size of the market:

Sizes of the market are....

Demand analysis: is the core aspect of market opportunity.

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

Market SegmentationThe customer base of JK Tyre covers the entire Original Equipment Market (OEM) in India together with Replacement Market for four wheeler vehicles, Defense and State Transport Undertakings (STU). "The demand of tyres in a particular market is determined by the vehicular population in that market. However, the ownership patterns are now slowly changing, specially in the metros, affecting the marketing strategies of tyre majors" In this section of brand speak, Neeraj Bhatia, General Manager- Marketing talks to exchange4media's Nikhil Gupta, about the brand- JK Tyres, their marketing strategy and unique trends in the Indian market. Starting his career with the Modi Group, Bhatia joined JK tyres as a marketing manager in year 1994, rose through the ranks to become General Manager- Marketing in year 2001 and he is now driving the brand towards new levels in the consumer mind space.

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. 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.

Sales & Marketing

Strategically situated across the North American continent, our Sales and Marketing teams offer customers a comprehensive portfolio of well-known and highly-respected tire brands for every market segment and price point. Whether you enjoy direct customer contact or developing sophisticated marketing strategies, our Sales and Marketing organizations offer a wide range of challenging career options.

Sales Michelin sales professionals are field-based and customer-focused. You'll work independently, without daily supervision in a competitive, dynamic, and goal-driven environment. You'll need effective communication skills and the ability to interface equally well with the tire technician or the company owner. Extensive travel, both on a daily and overnight basis, is required. All sales employees complete extensive training at the Michelin Sales Training Center in Greenville, S.C.

Retail Sales Representative The Retail Sales Representative professionally represents Michelin and optimizes the sell-in and sell-out of passenger tires through all national retail account locations. You'll assist in achieving the business objectives and priorities of the National Retail Group (NRG) through proper implementation of distribution, training, merchandising/promotions and pricing/competitive strategies.

Analyzes strengths, weaknesses, opportunities and threats facing the National Retail Group locations within each market

Determines the need for and provides training to customers to achieve business objectives and priorities set by the National Retail Group

Ensures implementation of all team/individual promotions at each point of sale

Reports on all competitive activities, including pricing, strategies and other local marketing activities

Effectively communicates with internal/external customers at all levels

Ensures that all NRG accounts comply with established merchandising programs

Supports and participates in weekend account-specific events and activities

A bachelor's degree, preferably in business administration or a related field, is required. Knowledge of market analysis, customer relations, budget management, needs analysis, and brand positioning is helpful.

Fleet Account Manager Fleet Account Managers (FAMs) serve as business consultants to truck fleet customers and assist in lowering fleet operating costs through tire sales, analyzing alignment/wear problems, performing cost-per-mile analyses, and investigating mechanical issues. As an FAM, you'll implement a variety of sales strategies, tactics, programs, and training to create a level of support and service that meets or exceeds the needs of the fleet customer.

Forms effective, consultative partnerships with assigned accounts that result in increased sales of Michelin products

Advises, recommends and assists in the development and execution of sales and service plans

Maintains the highest possible net recovery for each given sale

A bachelor's degree, preferably in business administration or a related field, is required. Knowledge in market analysis, customer relations, budget management, needs analysis, and brand positioning is helpful.

Marketing The Michelin North America marketing strategy is based on delivering superior value in brands, products and services to customers with vehicles ranging from bicycles to the Space Shuttle.

Our products are marketed directly to end-users in the trucking, earthmover, aircraft, and agricultural markets and through various channels including national retailers (like Sam's Club, Wal-Mart and Sears), independent wholesalers and retailers.

Associate Marketing Manager The Associate Marketing Manager is an entry-level position within the passenger and light-truck marketing group located at North American Headquarters in Greenville, S.C. Initial assignments may be in market research, advertising, communications or web site development. A strong marketing orientation, excellent oral and written communications skills, analytical skills, and creative problem solving abilities are required. Project assignments vary and include budget analysis, consumer and trade promotions, new product introductions and point-of-sale material development. New employees receive product training at the Michelin Sales Training Center. Experienced employees receive additional training in applied marketing throughMichelin Marketing Training.

Manages the brand S&A budget

Develops and executes consumer and trade promotions

Analyzes brand financial and budget status

A bachelor's degree in marketing and relevant marketing experience is required; MBA is strongly desired

ORIGINAL EQUIPMENT MARKET (OEMS)

The category under which automobiles industries use particular branded tyre as standard fitment for their vehicles. Companies, which form this market, are MUL, M&M, TELCO, HM, and BAJAJ TEMPO. It consists of nearly 32 % of JK business. The association of MUL with JK Tyre is envy of many competitors in same segment. Maruti 800, Zen is few models, which have standard fitment of JK tyres.

REPLACEMENT MARKET

The market comprising of Dealers and Distributors. It constitutes largest Business share of JK Tyre constituting nearly 53% of total business. It is backed up by 3500 strong dealership network spread all across the country.

EXPORT

The production process being undertaken for a predetermined foreign market falls under Export category. It is widely spread across 50 countries in 6 continents constituting 11 % of business.

KEY MARKETING AND COMPETATIVE ADVANTAGES

Technology leadership

Pioneered the Radial Revolution in India.

Introduced T- Rated Radial Tyres in India.

ISO 9001 Worlds first ever tyre company to get this certification for entire operations.

Introduced H- Rated Radial in India.

QS- 9000 - Worlds first tyre company for multi- location operations.

ISO 14001 - Indias first tyre company for multi- location operations.

R & D Center

Hari Shanker Singhania Elastomer & Tyre Research Institute (HAESETRI) an independent research institute promoted by JK Tyre is engaged in basic & applied research in elastomer & tyre including assimilation and dissemination of knowledge, First of its kind in India.

Quality Movement

J.K. Tyre has the following Quality System Accreditation to its credit:

ISO 9001

QS 9000

ISO 14001

HASETRI has the following Quality system Accreditation:

ISO 9002

Sales and ServiceCountrys top exporter with exports to 50 countries across six continents. It has a vast distribution and service network besides the unique steel wheels outlets a chain of more than 90 tyre care centers across India. It has unique dial a tyre service to its credit.

Continuous up-gradation.

IN pursuit of excellence, J K has invested Rs 280 Crores in last five years on up gradation of manufacturing facilities.

ASSOCIATION WITH MOTOR SPORTS

JK Tyre has expressed its corporate responsibility in the development of exports in India, promoting professional rallying and racing by sponsoring team of drivers-Team JK Tyre, which has reigned as the national Rally Champion for four years in a row (2009-10).

JK adopted the promotion and development of Motor sports as its long-term strategy. It has taken upon itself the task of identifying motor sport racing talent in the country and then guides these talents to get essential exposure to various national and international forums.

Akbar Ebrahim: The first Indian to drive in F2 and F3 championship.

Narain Karthikeyan: The first Indian to test drive at F1.

Parthiva Sureshwaran: The fastest Indian in Asia.

The above-mentioned are few name of outstanding talented drivers, JK has put on the International circuit. Over the span of last five years, JK has invested over Rs 15 crores to support its several initiatives in this direction and build a unique infrastructure.

SUPPLY CHAIN MANAGEMENT Long term partnerships, have been developed with technical collaborators, OEMs dealers / distributors, C&F agents, Transporters, service providers and vendors. These partnerships have been developed over last few years and are based on mutual trust and benefits. The partners have been selected on the basis of the items as well as their capabilities to meet their volumes, quality, delivery and other service requirements.

TECHNICAL COLLABORATIOR CONTINENTAL AG, GERMANY

JK tyre has long-term partnership of more than 25 years with them, and still going strong.

OEMs

They have two major OEMs as their partners Maruti Udyog and Mahindra Automotives. They are the only tyre company, which was audited by Suzuki Motor Corporation R&D for ascertaining their capabilities to tailor make a Tyre, which could provide optimal performance of the vehicle.

DEALEARS / DISTRIBUTORSIn the replacement market they have around 3500 dealers in the country. In addition, an innovative concept of steel wheels outlets has been created currently the chain has 90 tyres care centers, which will increase to 130 by April03. A one-stop shop for the wheel alignment, computerized wheel balancing and automatic tyre changing were few concepts provided by JK Tyres to its customers through their dealers and distributors. Through the concept of A SYNERGY OF ENERGY JK and Indian Oil Corporation have built a mutually beneficial relationship to service the customer. This includes installation of air filling stations and free tyre check camps at selected IOC petrol pumps.

C&F AGENTS: JK have 51 C&F Agents spread all across the country.

EXPORTS: Based on the principles of dealing, reliability of quality and delivery and standing by the customer during difficult market conditions has paid dividend in terms of consistent exports over the last four years. As a result, export volumes of truck / bus tyres as a total truck tyre production has been higher than the industry average by 3-5%.

TRANSPORTERS

JK have developed transporters for movement of both finished goods as well as raw materials on the basis of SWOT analysis, their customer base, responsiveness etc. Training is imparted to them on various aspects of Quality Management Syste