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Page No
ACKNOWLEDGEMENT 2
EXECUTIVE SUMMARY 3
METHDOLOGY 5
APPENDICES 46
REFERENCE 50
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ACKNOWLEDGEMENT
They have taken keen interest in my work and were always available
to help me out with my problems, in spite of their busy schedule.
Last but not the least I am also grateful to all the staff members of JK
tyres for their kind cooperation and help during the course of this
project.
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EXECUTIVE SUMMARY
In order to start the project the first thing needed was the
understanding of the JK Industries as a whole. This formed a basis to
understand JK Tyre. By SWOT analysis & secondary research the
position of JK Tyres in Indian Tyre Industry was ascertained.
For the basic understanding and to get every insights of the project,
the Works Manager of all the Maruti Dealer Workshops were visited
and their feedback were taken into consideration, which was
necessary in the process of problem finding and giving adequate
recommendations and suggestions.
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suppliers for various models of cars present in the Delhi region. This
analysis was based on a survey of about 100 cars in Connaught Place
region of Delhi, thereafter it was confirmed that JK Tyre stood second
with a market share of 20% & Bridgestone Tyre at the first position
with a market share of 42%. (Restricted to Delhi region).
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OBJECTIVE OF THE STUDY
Project Objective:
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RESEARCH METHODOLOGY
Sample:
Across Delhi.
62 Swift owners
Data Collection:
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market through a fitment form. Surveyed 100 cars randomly in
different parts of Delhi.
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MAIN REPORT/ ANALYSIS
Background
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JK Organization has been a forerunner in the economic and social
advancement of India. It always aimed at creating job opportunities
and to provide high quality products. It has striven to make India self
reliant by pioneering the production of a number of industrial and
consumer products, by adopting the latest technology as well as
developing its own know-how. It has also undertaken industrial
ventures in several other countries.
Over the years, the company has expanded and diversified its
business portfolio. It has developed into a multi product, multi-
location corporate entity.
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segregation of the tyre and non-tyre businesses of the group and is
likely to have significant implications for its flagship company, JK
Industries Limited.
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is the only company producing truck radials in India. It has its
technical collaboration with Continental of Germany.
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Vision
Values
3. Commitment to excellence.
Mission
Corporate Strategies –
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• Exploit Multi locational advantage to address all price segments
& improve plant efficiencies & customer service.
Corporate Strategies –
Corporate Strategies –
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• Reduce cost through weight rationalisation.
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4. To be the largest Indian tyre exporter. Continue to be a
significant player in the World in Truck Bias segment.
Corporate Strategies –
Corporate Strategies –
Corporate Strategies –
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• Contribute to society at large.
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7. To develop a highly motivated team with a sense of
Ananda.
Corporate Strategies –
• Be a learning Organization.
Corporate Strategies –
• Practice transparency.
Corporate Strategies –
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• Take up brand building as a company wide exercise.
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Quality Policy
Environmental Policy
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We commit to communicate this policy to all employees and to make
it available to the public on request.
Growing Big
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• Given JK’s leadership in truck and bus tyres, strong presence in
4 wheelers radials and focus on increasing exports, we believe
the outlook is strong.
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• It has been awarded “Superbrand”. This is the only tyre
company to receive the prestigious status.
Technology:
Product Range:
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JK Tyre manufactures tyres for a wide range of vehicles and
offers the most comprehensive range of products to suit the
requirements of its customers. Presently JK offers tyres for:
Trucks
Jeep
Car
Tractor
Trailer
Plant Locations:
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JK TYRE
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.
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India, they have a worldwide customer base in over 45 countries
across all 6 continents.
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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.
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QUALITY MANAGEMENT
ISO 9001
QS 9000
"E-mark"
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"DOT" (Department of Transport)
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MARKETING
International:
It is the first and only tyre manufacture in the world to receive the QS
9000 for multilocation operations : World's first tyre manufacture to
receive the ISO 9000 for all its operations in one go. Also J.K Tyres is
the first tyre company in India to receive ISO 14001 in recognisition
of its environmental management systems. Today, JK Tyre's products
compete with the best international players in the premium
international bias market in more than 55 countries in 6 continents .
The exports operate through a strong and dedicated distribution
network, and their distributors are fully supported by the company's
technical team in terms of continued product development to meet
specific market needs. JK Tyre had obtained international
accreditation for its products in the US , Europe , South America and
the Middle East.
J.K Tyre has been the recepient of various awards for exports for the
last many years for its commitment to offer superior performance
standards & path -breaking innovations. Recently , it was honored
with ' The Special Export Award 2000-2001' from Capexil, making it
its fourth consecutive award from India's premier industrial
association . JK Tyre has also been recently recognised by Indian
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Trade Promotion Organisation (ITPO) for being the largest tyre
exporter to Latin America markets and is the proud recepient of first-
ever FOCUS LAC Award for the year 1999-2000. J.K Tyres constant
endeavor to deliver superior value to its customers and a sound
marketing strategy forms the foundation of this spectacularly
consistent performance on the international front.
With radial tyres for commercial vehicles having failed to excite bus
and truck owners in India, JK Tyres has hit upon an unconventional
selling strategy.
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It has come out with a money-back guarantee scheme on its radial
tyres. The company has signed up over 5,000 fleet operators and six
state transport undertakings (STUs) to fit its radials in exchange of
performance guarantee. These 5,000 fleet operators together
operate around 3,00,000 buses and trucks, out of which 20% are
expected to convert to radial tyres in the coming times.
JK is promising a fuel saving of 7-10% and upto 50% more tyre life on
its radial tyres as compared to conventional crossply tyres. The fleet
operators and STUs will be reimbursed with the cost of the tyres in
case they fail to realise the savings as promised.
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vehicles per month. The company is currently selling around 20,000
units of CV radials per month to all segments in India.
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JK STEEL WHEELS
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branded as 'STEEL WHEELS' 'The One stop Sales cum Service
Centres'. These exclusive outlets are redefining tyre retailing.
• Wheel alignment
• Wheel Balancing
• Tyre Rotation
The benefits of correct tyre care are longer tyre life , better vehicle
handling and ride comfort , fuel conservation. Very soon other allied
automotive products will also be available at JK Tyre Steel Wheels. JK
Tyre already has more than 100 such outlets across the country and
the chain is rapidly growing.
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As a market leader JK Tyre has been in the forefront for providing pro
active customer care. Steel Wheels outlets have been the cutting
edge in providing service to customers.
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DIAL-A-TYRE SERVICE
From the pioneer and leader in radials in India comes yet another
innovation India's first and only unique -"Dial-a-Tyre Service",
delivering tyres at the customer's doorstep.They have made possible
for tyre replacement which is just a phone call away. All you need to
do is just dial "23312136"* from the comfort of your home or office
and leave instructions for delivery of tyres while you are enjoying
your weekend or running through a busy work schedule.
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Other Marketing Campaigns, Promotions and
schemes
Customer Service both pre and post sale has today become one of
the critical differentiating factors which aggregates as a complete
package deal for the customer when he purchases the product and
can be used as an effective tool for ensuring loyalty of the customers.
The concept branded as 'Cool Wheels" stands for a free tyre check
camp (for all car tyre brands) conducted by them wherein they
offered the following services to the customers
• All the customers visiting the outlet are given a tyre inspection
report and a copy of this report is retained for records and
future use/customer contact.
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• The customer visiting the camps are given a small giveaway,
and they became eligible to enter into the lucky draw contest.
This is being done to create higher brand visibility and recall
and ensure higher customer interest in the activity.
The camps are conducted at the Steel Wheels Outlets and some
other major multibrand counters. Till date they have conducted Cool
Wheels service camps in the following cities- Chennai, Delhi (thrice),
Bangalore, Coachin, Mumbai, Noida(twice), Faridabad (twice),
Ludhiana and Chandigarh to name a few, wherein over 10,000
customer have availed of these services.
Also at these outlets you will come across air filling machines
sponsored by JK Tyres.
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• Important marketplaces / commercial complexes
• Residential areas
• Office complexes
• Cinema halls
• Traffic intersections
Demand determinants
40
Raw material price fluctuations : The prices of natural rubber, an
agricultural commodity. In the last few months, prices have
recovered due to increase in international prices. Other raw materials
are mainly petrochemical based and movements are cyclical.
JK TYRES HR MANTRA
They start the day as fresh as any one else. But at the end of the day,
they become more fatigued than any ordinary workmen. These are
corporate executives we are talking about and this is the concern
that is at the core of JK Tyres' human resource development
initiatives.
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relationships, and the quality and productivity of the company on the
whole," says Dr S Mukherjee, general manager (HRD), JK Tyres.
Keeping its employees healthy and mentally fresh also serves the
very core objective of the company-productivity and profitability. If its
executives can perform their tasks in a stress-relieved mind-frame,
they become more creative and efficient at their work, their output
grows and, most important, their interpersonal relationships become
more conducive to work. All these result in higher productivity as well
as better quality, which further translates into higher profits for the
company. Further, by keeping its employees physically and mentally
fit, the company also circumvents `hidden costs' such as loss of
working hours and low productivity.
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development through the release of stress and tension, improved
health and well-being, and greater clarity and creativity of mind.
SWOT ANALYSIS OF
JK TYRE
Strengths:
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• Research and Technological advances
Weaknesses
Opportunities
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and passenger traffic through roads with resultant growth in
demand for tyres.
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Threats
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DATA ANALYSIS BASED ON
CONSUMERS’ SURVEY
(Sample Size-62)
15%
39%
LXI
VXI
ZXI
46%
The responses for this question reveals that the most popular
model amongst the consumers is VXI(46%), the second most
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popular model is LXI(39%), and the last but not the least
favourite model is ZXI(15%).
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2. After how many kilometres you get these services done?
0-5000km
5000-10,000km
10,000-15,000km
15,000-20,000km
3%
Yes
No
97%
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48% Correct
52%
Incorrect
The first pie chart shows that 97% of the consumers are aware
about tyre rotation while only 3% of the consumers are not
aware about it. Out of the 97% consumers who are aware
about tyre rotation, only 52% of them are correct. Correct in
the sense, they know when this service has to be performed.
Whereas, a huge percentage i.e. 48% of the consumers have
incorrect knowledge about this service.
15%
Yes
No
85%
50
11%
Correct
Incorrect
89%
The first pie chart above shows that 85% of the consumers are
aware about tyre alignment while only 15% of them are not
aware about it. But out of the 85% consumers who are aware
about tyre alignment 89% of the consumers have correct
information while only 11% of them have incorrect knowledge
about this service.
16%
Tyre Rotation
Tyre Alignment
84%
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Here we can clearly see in the pie chart that between 0-
5000kms, 84% of the consumers get their tyres rotated and
16% of the consumers get their tyres aligned.
38%
Tyre Rotation
Tyre Alignment
62%
From this pie chart we can find out that between 5000-10,000kms,
62% of the consumers get the service of tyre alignment done while
38% of the consumers get their tyres rotated.
From the survey it was also revealed that not even a single consumer
get these services of tyre rotation and tyre alignment done between
10,000-15,000km & 15,000-20,000kms.
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3. Did you change your tyre after the purchase of your
vehicle?
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4. Which features of tyre do you give importance?
50
40
30
20
10
The graph shows that durability is more important for the consumer
from the tyre features point of few, followed by mileage which is a
little less important. Tyre quality is also one of the aspect which a
consumer looks for in the features of the tyre. And the least
important is the availability aspect of the tyre of which the consumer
is not much bothered about.
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5. Are you aware of the recommended tyre pressure of
your vehicle?
26%
Yes
No
74%
25%
Correct
Incorrect
75%
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This pie chart shows that majority of the consumers are not
aware of the correct tyre pressure. Of the 26% that say they
are aware only 75% are actually correct. This shows a low
level of awareness regarding basic usage of tyres. This is
especially important as many of the complaints generate
from incorrect tyre pressure.
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7. From where do you buy the replacement tyre?
19%
Dealer
Retailer
81%
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58
8. Does the price of the tyre affect your purchase decision?
18%
Yes
No
82%
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9. What all influence your purchase decision?
50
45
40 Brand
35 Advertisement
30 Promotional
Offers
25
Service Station
20
Supervisor
15
Others
10
5
0
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brand value for its products by extensive marketing
exercises.
All the respondents tell that they get 0-15 Swifts in a day for
servicing and none of them gets more than 15 swifts in a day
for servicing.
Q2. Please write the break up of the model you get per day?
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24%
36%
LXI(165/80 R14)
VXI(165/80 R14)
ZXI(185/70 R14)
40%
From this pie chart we can make out that maximum number
of VXI were found in the service station followed by LXI which
is less by only 4% and then the least number of ZXI were
seen which comprises of 24%. This implies that the market
for tyre size(165/80 R14) is very promising.
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Wheel
Alignment
Tyre Pressure
The pie chart shows that the services, wheel alignment and
tyre rotation are both equally availed by the customers (26 %
each), followed by 24% of the customers who avail the
service of wheel balancing, which is followed by a little 18%
of customers who get the tyre pressure service. Whereas
only 4% customers avail the service for uneven wearing and
2% the service for premature failure. That means the
durability and tyre quality is absolutely fine.
Q4. What kind of feedback do you get from the customers? Do you
get any kind of tyre complaints? If yes, please specify.
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-- Although most of the Works Manager said that they get
satisfactory feedback. But still there were few complaints which
they receive from the customers. Some of the complaints are as
follows:-
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(c) Dealers _________ (d)Others(Specify)__________
20
18
16
14
12 Company
Retailers
10
Dealers
8 Others
6
4
2
0
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We can clearly see in the graph that 19 Works Manager of
different Maruti Service Stations fulfill their requirements of
tyres from dealers while only 4 out of the 24 Works Manager
fulfill it from the company. And only one, fulfill it from his
own arrangement. But not even a single workshop get their
needs of tyre fulfilled from retailers.
0-5000km
5000-10,000km
10,000-
15,000km
15,000-
20,000km
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25
20
15
22
10
18
12
12
5
3
2
1
0
0-5000km 5000-10,000km 10,000-15,000km 15,000-20,000km
Q7. Do you provide any kind of free tyre servicing to the customer?
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The answer to this question was not surprising and that is
“No” by all the service stations Works Manager. Not even a
single service station provides any kind of free tyre servicing
to the customer.
Q8. Do you get any type of promotional offers from any of the brand?
A fitment survey is used to find out the market existence of all the
tyre manufacturers in a particular region. A collective analysis of
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this survey would help to ascertain the actual percentage of market
share of all the players in the region.
Analysis Report :-
17% 20%
JK Tyre
7% Bridgestone
Good Year
Apollo
14%
MRF
42%
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Good Year has 14 % market share and last but not the least is Apollo
tyres with 7% of the market share..
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Recommendations and Suggestions
Basic Understanding
A tyre for the passenger car segment is more or less a high valued
product as the end consumers are from the high end income groups.
• Mileage
• Price
• Tyre Quality.
• Brand Advertisement
• Aesthetics
Although not many of the customers accept the above as being their
motivational factors for purchasing a particular brand of tyres. These
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are some of the conceived purchasing forces driving a customer’s
choice for a tyre. I confirmed this statement only after talking to a
number of service stations and in particular and after having a long
casual conservation with many of the Swift owners.
Promotions:
Many service managers were not satisfied with the response that
their clients get from the tyre companies. For instance they cited
many instances in which the tyre company refused to replace the
tyres putting the blame back on the customers. This creates a bad
image for the company. This results in loosing not only that particular
customer but also many others which the customer may influence.
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The company should take extreme caution while evaluating such
complaints. It is also recommended to reduce the time taken for
handling
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Use of Information Technology:
It is true that most of the end consumers of the Swift are advanced in
terms of technology, education, internet, etc. Internet not only
reduces the chain of distribution thus cutting costs for the company
but also reduces time lag between order placement and delivery. It is
also known that none of the tyre manufacturers are using this kind of
technology in the tyre industry at present. Therefore, it is
recommended that JKI’s IT department could keep this kind of
business, e- commerce, as their pipeline future marketing strategies.
Mileage and quality of the tyre was rated as the most important
factors, so JK
Sales Team
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be in touch with the latest happenings in the market and also will be
able to take necessary actions at the appropriate time.
Sampling Error
Situational Factors.
Time Constraint
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APPENDICES
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CONSUMERS’ SURVEY QUESTIONNAIRE
NAME :_______________________________________________________
VEHICLE NO :_______________________________________________________
ADDRESS :_______________________________________________________
CONTACT NO :_______________________________________________________
0-5000km
5000-10,000km
10,000-15,000km
15,000-20,000km
3. Did you change your tyre after the purchase of your vehicle?
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4. If your answer to the above question is yes, then please specify
why do you feel the need for changing the tyre and with which tyre
brand and size you did so?
______________________________________________________________________
________________________________________________________
Yes No
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8. If your answer to the above question is no, please specify the
problems faced by you with the performance of your tyre?
_______________________________________________________________
10. Does the price of the tyre affect your purchase decision?
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( Thank You )
NAME :_________________________________________________
DESIGNATION :_________________________________________________
ADDRESS :_________________________________________________
CONTACT NUMBER:________________________________________________
2. Please write the break up of the model you get per day?
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(a) Wheel Alignment (b) Tyre Pressure (c) Wheel
Balancing
4. What kind of feedback do you get from the customers? Do you get
any kind of tyre complaints? If yes, please specify.
______________________________________________________________________
________________________________________________________
0-5000km
5000-10,000km
10,000-
15,000km
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15,000-
20,000km
8. Do you get any type of promotional offers from any of the brand?
( Thank You )
REFERENCE:
BOOKS:
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WEBSITES:
1. www.jktyre.com
2. www.ft.com
3. www.jkorg.in
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