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An

IDP

REPORT

ON

To study the market potential of industrial roller bearing

AT

ABC Bearing Ltd. s

Bharuch.

SUBMITTED TO:

NARMADA COLLEGE OF MAMAGEMENT

ZADESHWAR, BHARUCH

(Affiliated to Gujarat Technological University)

In partial fulfillment of the requirement for the

Degree of

Master in Business Administration of NCM

SUBMITTED BY:

Darbar Devendrasinh R.

SEM IV, MBA-II

ROLL NO. 1033

College Guide: External Guide:

Mr. Kunal Mr.Nirmal Parmar

(Lecturer) (Marketing Executive)

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CERTIFICATE

I hereby, certify that this project report entitled

Market Potential of Industrial Roller

Bearing submitted to Veer Narmad South

Gujarat University Surat, in partial fulfillment of

the requirement for the degree of Master of

Business Administration, embodies the result

of bonafide work carried out by Mr.

Devendrasinh Darbar

I, find the work complete and of sufficiently high

standard to warrant its presentation for the

examination.

I, further certify that work has been carried out

under my guidance.

Narmada Education & Scientific Research Societys

NARMADA COLLEGE OF MANAGEMENT(Approved by AICTE & affiliated to South Gujarat University)

ZADESHWAR, BHARUCH 392011.Phone : (02642) 230595 Fax : (02642) 231930E-Mail : [email protected] Web : www.nestedu.org

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(Ms. Trupti Almola) (Mr. Kunal)Director Lecturer/ Guide

Date: -

DECLARATION

The Project Report entitled MARKET POTENTIAL OFINDUSTRIAL ROLLER BEARINGS OF ABC Bearings Ltd,

BHARUCH. Submitted to NARMADA COLLEGE OF

MANAGEMENT, BHARUCH in partial fulfillment of requirement

for MASTER OF BUSINESS ADMINISTRATION degree has

been completed by me under the guidance of Mr.Kunal,

lecturer, NARMADA COLLEGE OF MANAGEMENT, Zadeshwar,

Bharuch.

This Project is entirely an outcome of my own efforts and is not

submitted either in part or whole to any other university or

institute for any other degree.

Place: Bharuch

Devendrasinh DarbarDate:

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PREFACE

ABC Bearing Ltd. is one of the Leading players in the country in the

Bearing Industry, enjoys a very good reputation in the Bearing market.

ABC is major in Taper Roller bearing and all the major Automobile

companies OEMs are its Customers. However market reveals that ABC

& other major companies are loosing there share in After Market. So

company wanted to see that where it stands in the market with respect

to other competitors and what should it do to increase its market

share.

This study of market potential of industrial roller in India with the help

of scientifically designed research survey among the Dealer and

industries.

As all the Dealers and Industry keeps all major Brands so its possible to

find the where each company stands, also results obtained are valid as

respondents know about what is asked and even they are seller anduser.

The Scope of study is restricted to the area of 30 industries taken as

100 % sample size of ABC Company in region of Baroda. The study is

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to know about the companies and products from perspective of seller

and users. Questionnaire made by me especially for the survey

purpose by me. I have use the M-Excel programme for analysis.

ACKNOWLEGEMENT

I wish to express my gratitude to all the people involved in my Winter

Training Programmed especially Mr.Nirmal Parmar (marketing

Executive in ABC bearing Ltd) and Mr. Kunal (Faculty Guide). Who

provides me opportunity to carry out this project successfully.

I am thankful to Mr.Dave Sir(HR Manager) & ABCs Employees who

gave me precious information about my project during my winter

training in their firm.

I am very thankful to our Director Trupti Mam for providing me the

opportunity to learn practical things.

It has been a pleasure to work with ABC Bearing limited.

I would also like to thanks my parents without their support it would be

difficult to finish my task. As well as I would also likes to thanks all

people to whom I met during my training.

Devendrasinh DarbarDevendrasinh Darbar

(Student)(Student)

NCM College,NCM College,

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Zadeshwar,Zadeshwar,

BHARUCH.BHARUCH.

INDEX

Sr. No. CONTENTSPAGE

No.1. Executive summary 12. About ABC Bearings Ltd 3

3. A Journey Towards Horizon 54. Sales Channel Of ABC 105. Objective of study 166. Importance of study 177. Research Methodology 188. Limitation of project 259. literature 2610. Analysis of Data 38

11. Findings Of the Project 59

12.Suggestion for ABC Bearing

Ltd61

13. Conclusion 6314. Annexure 64

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EXECUTIVE SUMMARY

This project is a study of Market potential of INDUSTRIAL Roller

Bearing Ltd. in India. And to find where ABC stands in compare to

other Bearing companies, like SKF, Timken, NBC, FAG, Tata Bearings,

Deluxe etc. With respect to Dealers and different OEM in industrial

sector.

The study is Practical one based on Survey method by using

Questioner, and is based on Primary data analysis.ABC is actively

involved in application engineering and product design to assure

consistent quality and optimize the cost for its customers.

I have taken sample size of 20 industries residing Baroda Region.

Research instrument used is questionnaire. The research design isdescriptive and I have also gathered various data from secondary

sources (internet).

The objective of my study is To find out the market potential

of industrial roller bearings for different industrial OEM sector.

I have drawn some findings for the ABC Bearings Limited

SKF is market leader in bearing industries. Almost 85% Bearings in

India are imported.Indian bearing industry is estimated around 5000

CR.Automotive segment accounts for 45 percent of the revenues and

the remaining 55 percent of revenues are being contributed by

industrial demand. There are about 12 large and medium organized

units in bearing in India and numbers of unorganized units, and almost

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all organized units having foreign collaboration.CRB and TRB are

mainly used in industries as a strong use to applications with high and

very high radial and axial loads. The combine present market of TRB

and CRB is around 15.5% (750crore) and Market potential of TRB andCRB is around 784crore.As far as product performance is concern all

the companies are satisfied with their present supplier but 25%

companies are not satisfied with services.

I have also drawn some suggestions for the ABC Bearings

Limited. company should think about to provide better and faster

delivery service to their customer with the help of transport facilityand also make the bearing available at those places where it is not

presently Available. Company should increase distributors. Company

should think of Launching a less cost brand other than present brand of

bearing which may serve both the level of customers viz: High in

Quality & Price and Less in Quality & Price. Initially company can target

small scale and medium scale industries and after brand name is

established it can target the large scale industries customers.

Advertising activity of company is not good; company should use Sign

Boards & Hoardings for its Advertising in some key Areas and also they

should advertise in business magazine. Company should increase its

production capacity because sometimes they get some big contract,

but they are not able to fulfill it because of less production capacity.

And finally I can conclude that there is potential market available of

industrial roller bearing for ABC bearing Ltd.

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Brief introduction about ABC

Bearings Ltd.

What is a Bearing

Ball & roller bearings, generally called roller bearing or

antifriction bearings are commonly used as machine

elements.

Any of the rotating part can not be roll without use of

bearing.

The ABC Bearing LtdManufactures: -

Tapered Roller Bearings

Cylindrical Roller Bearings

Tapered Roller Bearings : -

Bearing of this type uses conical rollers guided by a back

face rib on the cone. These bearings are capable of taking

high radial loads and also axial loads in one direction. They

are generally mounted in pairs. In this case, the proper

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internal clearance can be obtained by adjusting the axial

distance between the cones or cups of the two opposed

bearings. The inner ring assembled with retainer and

rollers is called as cup. Since they are separable, the cone

assembles and cup can be mounted independently.

Cylindrical Roller Bearing : -

Cylindrical Roller bearings are characterized by a very high

radial load carrying capacity and are suitable for high

speeds. The high load capacity is achieved by a modified

line contact between roller and raceways, which eliminates

edge stressing. Cylindrical roller bearing is very rigid

bearing. The removable parts of cylindrical roller bearings

can be exchanged between each other. Inner and outer

can be mounted separately.

Cylindrical Roller bearings are most frequently used in

gears, electric motors & Railway axle boxes.

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A Journey towards horizon

In 1961 a small movement began. A company, ABC Bearings

Limited (Formerly known as The Antifriction Bearings Corporation

Limited) which was originally set up to manufacture only Ball

Thrust Bearings, has grown multifold and added Tapered and

Cylindrical roller bearings in its product basket.

This success story took a global leap when entered into a

strategic alliance with NSK Japan in the year 1998. NSK needs

no introduction, having 46 plants over the globe and one of the

largest manufacturers of rolling bearings. We follow the

philosophy Localization to Globalization.

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Today, most of the companies in India, which uses Tapered roller

and cylindrical roller bearings, they use ABC make bearings.

Now, ABC is geared and focusing its efforts more on commercial

vehicle and tractor industries to create niche in Tapered roller

bearing segment. Now they are trying to capture industrial

market of taper and cylindrical roller bearing in India.

ABC is surging towards more and more innovations to offer

nothing but the very best and the latest bearing technology to

esteemed customers. As a part of backward integration plan.

Thus, ABC is able to monitor the quality from the very beginning

till the final product.

The manufacturing process at ABC is of paramount

importance. The process uses state-of-art production technology based

on the Japanese model of the production management. ABC is actively

involved in application engineering and product design to assure

consistent quality and optimize the cost for its customers.

ABC is accredited with QS -9000: 1998 and ISO

9001:2000 Certification by TUV Certification body of the TUV

Management Service. For us, quality is the top line.

Tata Motors, Ashok Leyland, Punjab Tractors, Escorts,

Swaraj Mazda, Mahindra & Mahindra, Toyota Kirloskar Motors and

many more.

Journey continues adding new industries, customers

and milestones of success to be competitive, globally.

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LIST OF MAJOR CUSTOMERS

Tata Motors

Ashok Leyland

Toyota Kirloskar Motors Limited.

Toyota Kirloskar Auto Parts Limited.

Escorts Limited

Mahindra & Mahindra

Punjab Tractors

Vehicle Factory Jabalpur

Elecon Engg.

Bajaj Tempo Limited

Carraro India

Dana India

.. And many more.

Company History

1961: Company inception in technical collaboration with Daimler

Puch AG, Austria (Until 1986), to manufacture Ball Thrust

Bearings.

1966: Product range expanded to include Tapered and

Cylindrical Roller Bearings.

1980:Tapered Roller Bearing Division I established in Bharuch.

1981: Promoted ring-manufacturing company MIPCO.

1995:Tapered roller capacity expanded at Bharuch.

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1996: Cylindrical Roller Bearings IZUMI, Japan, and Line

installed.

1998: Entered into a strategic alliance with NSK Ltd., Japan for

Ball and Tapered Roller Bearings.

2002: Company name changed to ABC Bearings Ltd.

2003: Bharuch CRB capacity expanded.

2005 - SAP system installed. On Line connectivity of all offices,

godown & plant. Lonavala Plant closed. Works integrated at one

location

2006 -Major capacity expansions for TRB and CRB completed.

Received ISO/TS 16949 accreditation from TUV

2007 -Established Joint Venture Company NSK ABC Bearings Ltd.

With NSK, Japan in March 2007 at Chennai to produce Hub &

Transmission Bearings

2011- ABC Bearings Ltd. Has started Their new plant at Bharuch

for Industrial Bearings named ABC Bearings Ltd. (SLB).

Production Capacity

Annual Capacity in Million nos.

Taper Roller Bearing: 8

Cylindrical Roller Bearing: 2

0

1

2

3

4

5

6

7

89

TRB CRB

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ABC V/s Industry Growth

Year 2011-2012

Industry Growth Rate: 10 %

ABC Growth Rate: 11 %

9.4

9.6

9.8

10

10.2

10.4

10.6

10.8

11

11.2

ABC Industry

ABC Industry

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Factors Fueling Our Growth

Excellent

Quality

(ISO 9001,

QS 9000)

Strategic

Alliance

With

NSKJapan

Highly

Professional

Staff

Prompt& Premium

Technical

Assistance

Continuous

Process

Improvement &

Supply Efficiency

Premium

Attention to

Customers

Competitive

Prices

ABC

Strategic Alliance with NSK, Japan

With Strategic Alliance with worlds second largest RollerBearing manufacturer, NSK, ABC acquires a strong hold on its

quality and know-how that is not second to any other bearing

manufacturing company.

ABC can now expand its market to include passenger cars, as

well as consolidate its position in the electrical and white

goods industry.

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Sales Channel of ABC

The length of channel of distribution in the resellers market

depends on the type of product being marketed. In case of

ABC then distribution or sales channel is shown below.

Because of Dealers and Retailers profit margin at both level &

physical distribution is extremely important. When flow of

goods to the market goes down & consumer is unable to find

desired brand, that sale may lost forever. Thus the

distribution channel most important for a company.

Company

Dealer

Retailer

Consumer/User

Dealers in Gujarat

Dhimant Bearing Suppliers. Ahemdabad

Prashant Bearing Corp. Ahemdabad

Patel Bearing Corp. Surat

Industrial Bearing Corp. Baroda

Nemnath Bearings. Chikkhli (Navsari)

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Objective of study

To find out the Total market potential of industrial

Roller bearing in Baroda region.

Sub objective

My sub objective is to learn a practical knowledge from corporate

world and getting real experience from corporate world.

Whatever theoretical knowledge I have learn in my first, second

And third semester of M.B.A as well as my whole study life, Ihave apply that whole knowledge in this W.T.P program for

getting the end result as well as to get as much as information

about market potential for industrial bearing.

To find out the potentiality of the industrial tapered roller and

cylindrical roller bearing for ABC Bearing Ltd.

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Importance of study:-

Presently ABC Bearing producing only automobile bearing. Now

their planning is to expand their business in industrial cylindricaland taper roller bearing.

So I helped them to find out the potential market of industrial

taper and cylindrical roller bearing in India.

And study also helped them to find out what are the market

shares of other player in industrial bearing.

It helped them to know where they lack and where are the

chances of improvement of that industrial roller bearing in

particular area.

This report will be help to company in future decision.

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Research

Methodology

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Research Design: -

The research design is descriptive:--

I have selected descriptive research design as it definitely

fits my research study & provide effective results for the study.

It is based on fact finding enquires.

Major purpose of descriptive research is description of the

state of affairs as it exists at present.

Descriptive research includes Surveys and fact-finding

enquiries of different kinds.

Develop the Research Plan

The Primary Data has been collected from the industry

residing in the Baroda Region.

And secondary data had been collected from various sites

from internet.

Data Sources

Data Sources

Primary Data Secondary Data

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Primary Data.

The data that are collected first hand by someone specifically for

the purpose of facilitating the study are known as primary data.

Secondary data

It means data which are already exist in the market and used for

detail study. E.g. internet, books, historical reports etc.

Sampling Plan:--

The basic idea of sampling is that by selecting some of the

elements in a population, we may draw conclusion about

element is the basic objective on which the measurement is

being taken. A population is a total collection of elements about

which we wish to make some interference.

Sampling Size: - The sample size chooses are 30 industries and 8

dealers residing the Baroda region

Sample unit: OEM industries in Baroda region.

Sampling Procedure: - Sampling procedure is Non Probabilitysampling in 30 industries as well as in 8 dealers. In both study

industries as well as in dealer, Non probability Convenience

sampling is used because there is a no freedom part of a sample and

every industry is not a part of a survey, I did survey as per my

convenience.

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Research technique: -- I had used survey method for

research technique in which I used interview method because data are

usually collected through the use of questionnaires.

Research instrument:--

The instrument that has been use for conducting the

survey research is the Questionnaire include some open ended

question to get some idea of respondent about market potential,

and rest are close ended question. The question have been arrange

in a proper and logical sequence so as to avoid any confusion. Also

the language use in the questionnaire is very simple and easy tounderstand.

Open Ended: -

Allows respondents to answer in their own words & are difficult

to Interpret and Tabulate.

Close Ended: -

Pre-specify all the possible answers & are easy to Interpret and

Tabulate.

Types Of Questions Included:

Dichotomous Questions

Which has only two answers Yes or No.

Multiple Choice Questions

Where respondent is offered more than two choices. Likert Scale

A statement with which the respondent shows the

amount of agreement / disagreement.

Importance Scale

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A scale that rates the importance of some attribute.

The Survey is done on Two Levels

Survey Level

Dealers IndustriesLevel 1 Level 2

Contact Methods

In my project I went for Personal Interviewing, as its necessary

to go meet the Dealers and industrial people at their place and

so that I can collect their top of mind and right information.

Collect the Information

I had visited all the Dealer & different OEM industries in Baroda

city to collect the data via questionnaire.

I used to talk with them and in that talk I asked them the

relevant question of the questionnaire so I could get Top of Mind

information from them.

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Analysis:--

In analysis I have used different bar charts, pie charts.

Ms-Excel was heavily used for tabulation, data analysis.

Generally the average of all the data was use to come at final

conclusion.

Analysis is given on page no.

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Limitations of Project

Time was the major limitation for the project.

Again time for filling the questioners was less as I was supposed

to do the interaction as fast as possible to get maximum number

of respondents per day.

Monetary limitations always occur when a student does the

project and thus I could have done much better if supported by

monetary resources.

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Literature:--

Market potential

An estimate of the maximum possible sales of a

product, or a service for an entire industry in a market

during a stated period is called market potential.

Potential market: - those in the total population who have

interest in acquiring the product.Available market - those in the potential market who have enough

money to buy the product.

Total estimation:--

Total bearing market in India = 5000cr.

45% used in automobile industries, its about 2250cr.

55% used in industrial segments, its about 2750 cr.

1. This chart shows the segmentation of totalbearing market in India:--

Automotive segments=45%

Industrial segments=55%

0

10

20

30

40

50

60

A uto .B ear. IB

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2. This chart shows the total market share of balland roller bearings in India:--

Ball bearing = 55%

Roller bearing= 45%

3. Absolute versus Industrial requirement ofBearings

Ball bearings: 55% (25% Industrial)

Taper Roller bearings: 30% (12% Ind)

Cylindrical Roller bearings: 5% (3.5% Ind)

Spherical Roller bearings: 5% (4.0% Ind)

Needle Roller bearings: 2% (1% Ind)

Rest other types: 3% (2.0% Ind)

BB

55%

RR

45%

Slice 3

0%

0

10

20

30

40

50

60

Absolute Indus trial

Ball

Taper

Cylindrical

Spherical

Needle

Others

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4. Industrial requirement of roller Bearings

Taper Roller bearings: 30% (12% Ind)

Cylindrical Roller bearings: 5% (3.5% Ind)

Spherical Roller bearings: 5% (4.0% Ind)

Needle Roller bearings: 2% (1% Ind)

Rest other types: 3% (2.0% Ind)

01020304050607080

T

RB

IT

RB

C

RB

IC

RB

S

RB

IS

RB

N

RB

IN

RB

OTHE

RS

IOTHE

RS

%

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5. Overall market share of bearings in India:--

SKF India overall market share: 34%

NTN overall market share: 16%

FAG-India overall market share: 20% with 50% share

in Cylindrical and Spherical roller bearings.

Timken India: 18% (TRB)

ABC Bearings Limited: 8% (TRB & few CRB)

Others 4%

SKF

34%

FAG

20%

ABC

8%

NTN

16%

TIMKEN

18%

OTHERS

4%

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6. Major players market share in Industrial bearings (IB)

SKF constitutes to 27% revenue from IB

NTN constitutes 10% from IB

FAG constitutes to 21% of its bearing for IB

Timken constitutes 16% share to Industrial segment

NBC constitute to 26% of CRB & TRB to Industrial

fragments

0

5

10

15

20

25

30

% 27 21 26 10 16

SKF FAG NBC NTNTIMKE

N

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7. Total market share of cylindrical TRB/CRB

TRB = 30%

CRB = 5%

8. Total market share of TRB/CRB in industrial segments

TRB in IB = 12%

CRB in IB = 3.5%

0

5

10

15

20

25

30

CRB TRB

%

3.5

12

0 5 10 15

CRB

TRB

CRB TRB

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Segment shares

Automotive segment accounts for 45 percent of the revenues,

which amount to (Rs 2,250 crores) and the remaining 55

percent (Rs 2750 crores) of revenues, are being contributed

by industrial demand.

The Indian industrial segment consumes small and medium

bearings mainly in five categories, i.e. ball bearings,

cylindrical roller bearings, taper roller bearings, spherical

roller bearings and needle roller bearings.

The Top five Industrial Demand Determinants

Electric motors, pumps & Compressors

Power sector exciters, gearbox & DG sets

Mining equip & crushers (Conveyors, crushers, Horizontal &

vertical grinding mills vibrating screens)

Steel sector and Rolling mills

Cement Plants.

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Electric Motors & pumps

Ball: 65% Cylindrical: 20%

Spherical: 5%

Taper: 10%

Compressors

Ball: 45%

Cylindrical: 20%

Spherical: 15%

Taper: 20%

Power sector heavy industries

Ball: 20%

Cylindrical: 35%

Taper: 15%

Spherical 30%

Diesel Generator Units

Ball: 40%

Cylindrical: 35%

Taper: 10%

Spherical:15%

Gearbox Bearings

Ball: 65%

Cylindrical: 10%

Taper: 23%

Spherical:2%

In a Cement Plant

Ball: 30%

Cylindrical: 35%

Taper: 15%

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Spherical 20%

The Major application in the Industrial Bearing Market is:

Electric Motors & pumps

Electric Fans

Compressors

DG units

Precision Machines

Machine Tools

Marine equipments

Turbines

Agro machine equipments

Textile Machinery

Wind Mills

Rolling Mills

Steel Sector

Power Sector

Heavy Industries

Cement Plants

Paper making industry

Sugar mills

Pharmaceutical Sector

Mining equip & crushers (Conveyors, crushers, Horizontal &

vertical grinding mills vibrating screens)

Chemical & Petrochemical process industries

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Total market potential for industrial TRB/CRB

Total market for bearing is 100 %( 5000cr)

out of them 55 %( 2750cr) for ball bearing and

45 %( 2250cr) for roller bearing.

In roller bearing TRB/CRB Consumed

30 %( 1500cr) +5 %( 250cr) =35 %( 1750cr) of

overall roller bearing. And out of them IB consumed

12 %( 600cr) +3.5 %( 175cr) =15.5 %( 775cr).

Total growth of bearing annually is about 5% and

Market potential for industrial TRB/CRB For next four

years.

For TRB/CRB = 775CR*1.05=814cr for year 2008

For year 2009 814*1.05=855cr

For year 2010 855*1.05=897cr

For year 2011 897*1.05=942cr

Sales potential for ABC Bearings Ltd.:--

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Every year 8 million bearing produced by ABC. Its

about Rs.280 cr

And its propose capacity for industrial bearing will

be around 2.5billion bearing during a year of 2013

its about Rs.75 to 80cr

Sales potential of ABC industrialTRB/CRB for next five years are Given below:--

For TRB/CRB = 75 to 80cr for year

2012

For year 2009 81 to 86cr



Future Potential Growth- CRB/ TRB in the ABCIndustrial bearing Sectors

0

2

4

6

8

10

12

14

16

18

20

cr 3.5 7 12 20

2009-10 2010-11 2011-12 2012-13

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Figure 1

SKF is market leader in bearing.

The Indian bearing industry makes around 500 types of bearings

as against over 30000 types of bearings being used by Indian

industry.

Brand Strength Weakness

SKF 1.Good quality2.Durability3.Easily available4.Excellent brandimage

1. High to reasonableprice2. No discount

FAG 1.Good quality

2. Durability3. fairly available4. good brand image

1.High price

2.low discount3.high % of importedbearings

1.

ABC 1.good quality2.ease in application3.indigeneousmanufacturer

1.lower availability2. higher price3.limited productrange4.restricted brandvisibility

NBC 1.quality product

2.wider range ofproducts

1.reasonable price

2.availability

Timken 1.good quality2.good customerrelations3.ease in application

1.high price2.lower availability

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Analysis of the Information or Data Collected

Analysis of primary data (OEM Industries):--

1. Sources for buying bearing.

factor Response %Sales person -Exhibition & trade shows 13.33%

Direct mail -Press release -

Journal ads -Word of mouth -Industrial directories 86.66%

0

20

40

60

80

100

Industrial

directories

Exhibition &

trade shows

%

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As shown in pie chart 86.66% companies get the information through

industrial directories and 13.33% companies get the information

through exhibition and trade shows

2. way of accepting the proposal of suppliers

factor responseFormal offer -quotation 100%Formal bids -

Here, there are 100% industries accept proposal with the help of

quotation

0

10

20

30

40

50

60

70

80

90

100

Quotation

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3. Type of buying situation having for purchasing of bearing.

factor responseRoutine Re-buy 70

Modified re-buy 30New task -

70

30

0

0 20 40 60 80

routine re buy modified re buy new task

Here 70% industries says that their buying situation is routine re buy

where as 30% industries says that their buying situation is modified re

buy.

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4. Person who influence the most for final decision for buying

bearing.

A) Within the organization

factor responseTechnical person 76.66%

designer 23.33%

Quality engineer -Maintenance engineer -

B) Outside the organization

factor response

consultant -experts -

010

2030405060708090

technical

person

designer

quality

engineer

maintenance

engineer

%

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Here 76.66% industries say that their final decision is taken by

technical person where as 23.33% industries says that their final

decision is taken by designer.

5. Person who takes the final decision for buying bearing.

factor Response %Top Management 86.66

Technical Person -Purchasers 33.33Finance person -Marketing people -

Here 66.66% industries say that their final decision is taken by top

management and 33.33% say that their final decision is taken by

purchase manager.

010203040506070

topmgm

t

tech

.perso

n

purcha

sers

finan

ceperso

n

mktin

gpe

ople

%

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6. Industries which Intend to buy bearing within the nextsix month.

factor Response %Slight possibility 40High possibility 36.66

certain 23.33

Here 40% industries say that there is slightly possibility, 36.66%industries says that high possibility whereas 23.33% industries says

that certain possibility of buying bearing within next 6 month or 1 year.

0

510

1520

2530

3540

45

slight

possibility

high possibility certain

%

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7. Companies which are exporting.

factor Response %yes 63.33no 36.66

Here, there are 63.33% industries exports. And 36.66%

industries are not exporting.

If yes,

factor Response %Same product 72.72Other product 27.27

0

10

20

30

40

50

60

70

YES NO

%

0

10

20

30

40

50

60

70

80

same product other product

%

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Here, there are 72.72% industries are planning to expand its business

in same product where as 27.27% industries are planning to diversify

in some other product.

8. Rank the following product factors or attributes whichthey consider before buying bearing.

Rank Score

allotted torank

Durability Brand

name

quality Reliability Packagin

g style

Guaranties

andwarranties

1 6 - - 30 - - -

2 5 14 16 - - - -

3 4 16 13 - 1 - -

4 3 - - - 18 1 11

5 2 - - - 11 7 12

6 1 - - - - 22 7

Average ranking=

Where,

N=total no. Of respondents.

Average ranking (quality) =total ranking/sample size= 30*6+0*5+0*4+0*3+0*2+0*1/30= 6

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1st rank quality 6

2nd rank durability 4.46

3rd rank brand name 4.4

4th rank reliability 2.66

5th rank Guaranties and warranties 2.13

6th rank Packaging style 1.3

6

4.4

4.46

1.3

2.13

2.66

0 1 2 3 4 5 6 7

rank

Quality Brand name Durability

Packinging style Warranties reliability

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Here most of the industries give first rank to quality and then after

brand name, durability, warranties, reliability and last is packaging

style.

9. Present supplier in terms of satisfaction on the scale of 1to 5.

For quality:--

factor rating response Total rating

Highly satisfy 5 2 10

satisfy 4 27 108

Moderate satisfy 3 - -

Dis satisfy 2 1 2

Least satisfy 1 - -

total 30 120

Average rating (quality) = total rating/sample size

=5*2+27*4+1*2/30=120/30=4

1 2 3 4 5

4

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Where, 5 stand for =highly satisfy4 stand for =satisfy3 stand for =moderate satisfy2 stand for =dis satisfies1 stand for =least satisfies

For durability:--factor rating response Total rating

Highly satisfy 5 - -

satisfy 4 17 68

Moderate satisfy 3 9 27

Dis satisfy 2 4 08

Least satisfy 1 - -

total 30 103

Average rating (durability) = total rating/sample size=17*4+9*3+4*2/30=103/30=3.43

For brand name:--



satisfy 4 28 112


Dis satisfy 2 - -Least satisfy 1 - -

total 30 118

Average rating (brand name) = total rating/sample size

=28*4+3*2/30

1 2 3 4 5

3.43

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=118/30=3.93

For reliability:--



satisfy 4 9 36


Dis satisfy 2 6 12Least satisfy 1 - -

total 30 93

Average rating (reliability) = total rating/sample size=9*4+15*3+6*2/30=93/30=3.1

For packaging style:--



satisfy 4 23 92


Dis satisfy 2 - -

Least satisfy 1 - -

total 30 113

Average rating (packaging style) = total rating/sample size=23*4+7*3/30=113/30=3.76

1 2 3 4 5

3.93

1 2 3 4 5

3.1

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For services:--


Highly satisfy 5 2 10

satisfy 4 18 72


Dis satisfy 2 3 06

Least satisfy 1 - -

total 30 109

Average rating (services) = total rating/sample size

=5*2+4*18+3*7+2*3/30=109/30=3.63

1 2 3 4 5

3.76

1 2 3 4 5

3.63

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0

1

2

3

4

5

6

7

avg. rate

Quality

Packinging style

reliability

Services

brand name

Durability

Above diagram shows that avg. rate of satisfaction for quality 4, for

durability 3.43, for reliability 3.1, for packaging style 3.76, for brand

name 3.93 and for services is 3.63.

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10. Different kind of payment terms prefer by the industries.

factor Response %Advance payment -At the time of installation 5

Credit terms 95

0

5

95

0 20 40 60 80 100

Advance payment At the time of installation Credit terms

Here 95% industries use credit terms, 5% industries use at the time of

installation and no one use advance payment.

11. satisfaction level with price of present supplier.

factor Response %yes 93.33no 6.66

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0

10

20

30

40

50

60

70

80

90

100

Pricesatisfaction

Price

dissatisfaction

Here 93.33% satisfy with price whereas 6.66% industries are notsatisfied with price.

12. Distribution factors which they look most beforepurchase.

factor Response %availability 100Timely delivery 100

replacement 70

0

20

40

60

80

100

Avalability 100

Timely

delivery

100

Re lacement 80

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Here 100% industries firs look for availability and timely delivery

services whereas 70% industries look for replacement also before

purchasing of bearing.

13. Rank the following promotion or communication factorswhich influences before buying bearing.

Rank Scoreallotted torank

Discountscheme

Advertising

Tradeshow

Personalselling

Packaging style

Gift itemsonpurchase

1 6 23 7 - - - -

2 5 7 19 - 4 - -

3 4 - 4 - 23 2 1

4 3 - - 11 3 - 16

5 2 - - 15 - 11 4

6 1 - - 4 - 17 9

Average ranking=

Where,

N=total no. pf respondents.

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Average ranking (discount scheme) =total ranking/sample size= 23*6+7*5/30=173/30= 5.76

1st rank discount scheme 5.76

2nd rank advertising 5.1

3rd personal selling 4.03

4th

gift on purchase items 2.35th rank trade shows 2.23

6th rank Packaging style 1.56

0

1

2

3

4

5

6

7

rank

discount scheme

advertising

personal selling

gift on purchase

trade shows

pachaging style

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14. If some other new player come and provides you samequality product and better services at lesser price what is yourresponse.

factor Response %Stick to present supplier 60Ready to switch 40

60

40

0 20 40 60 80

Stick to present supplier Ready to switch

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If the companies will get a new option of good quality product and

services with lesser price 40% companies are ready to switch

Analysis of primary data (Dealer):--

1. Credit period between dealer and supplier.

Most of the dealer says that.

The credit period is around 45 to 90 days between dealer and supplier.

2. Satisfaction level of dealer with credit period and discountscheme given by supplier.

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0

57.1

4

42.8

5

0 20 40 60 80 100 120

SATISFY DISSATISFY Bar 3

Here 57.4% dealers are satisfied with discount scheme given by

the supplier whereas 42.8% are not satisfied with discount

scheme given by supplier.

Out of them Timken, SKF are not giving much discount whereas

discount given by FAG is moderate.

3. Brand suggest by dealer when any customer comes to them.

There is no specific brand suggest by them. Because they are

suggesting their customer brand as per their specialization.

4. Present market share of different bearing industries.

SKF

30%

FAG

19%ABC

8%

NTN

16%

TIMKEN

21%

OTHERS

6%

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Ans. most of the dealer said that SKF is market leader in industrial

segment.

Findings (OEM Industries):-- 86.66% companies get the information through industrial

directories and 13.33% companies get the information through

exhibition and trade shows.

100% Industries accept the proposal through quotation.

There are 63.33% industries exports. And 36.66%

industries are not exporting.

There are 72.72% industries are planning to expand

its business in same product where as 27.27% industries are

planning to diversify in some other product.

And most of the industry expects nearly 10% growth

in next years.

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Advertising having no effects or minimum effect on

small and medium scale industry

The Service Provided by ABC bearings to dealer is

good, but Company is falling weak in its Marketing activity which is

one of the reason company is loosing its identity at lower segment

of Distribution channel i.e. End users.

Advertising activity of company is not good;

company should use Sign Boards & Hoardings for its Advertising in

some key Areas.

Transport used by ABC in some area takes longer period even

though the distance is less (Baroda).

People want a low price product with Intermediate Quality

Quality and Brand name having great influence on

purchase

As far as product concern all most all customers are

satisfied with their present suppliers

Each customer gives high priority to distribution

factors like availability, timely delivery and replacement.

Currently 85% of the industrial bearings in India are

imported

Almost all the units having foreign collaboration

Findings (Dealer):--

China entered with very less price of bearing which is

a threat for small scale bearing industry.

In Gujarat most of the market captured by the FAG

and also the north part.

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There is no specific brand suggest by them. Because

they are suggesting their customer brand as per their specialization.

Most of the dealer says that, the credit period is

around 45 to 90 days between dealer and supplier.

Here 57.4% dealers are satisfied with discount

scheme given by the supplier whereas 42.8% are not satisfied with

discount scheme given by supplier.

Out of them Timken, SKF are not giving much

discount whereas discount given by FAG is moderate.

Suggestion for the ABC Company

company should think about to provide better and faster delivery

service to their customer with the help of transport facility and

also make the bearing available at those places where it is not

presently Available.

Company should increase distributors.

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Company should think of Launching a less cost brand other than

present brand of bearing which may serve both the level of

customers viz: High in Quality & Price and Less in Quality & Price.

Initially company can target small scale and medium scale

industries and after brand name is established it can target the

large scale industries customers.

A company needs to require understanding the needs and wants

of consumers.

Advertising activity of company is not good; company should use

Sign Boards & Hoardings for its Advertising in some key Areas

and also they should advertise in business magazine.

Company should increase its production capacity because

sometimes they get some big contract, but they are not able to

fulfill it because of less production capacity.

ABC should try to motivate their dealer with the help of good

incentive and discount scheme.

Space of Dealers Shop can be used for putting Companys

Hoardings. It will do Advertising for company and for that

company do not need to pay high money. Only cost of Hording

which is minor cost.

Example of Tata Bearing making at Dealer office, which is

excellent example of Advertising. Also the certificate is show with

picture of Tata bearing Plant and product, it should be taken in to

consideration by ABC Company and Such Innovative Idea should

be made by Company.

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Market potential of industrial CRB and TRB is

around 914cr for year 2012-13.

So finally I can conclude that there is potential

market available of industrial cylindrical and taper

roller bearing for ABC bearing Ltd.

Questionnaire for OEM Industry:--

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Note: - Select the boxes for your selection of answers.

Which product and semi finished products made by thecompany?

Ans.

From where do you get information for buyingequipment/machine/bearing?Ans.

a) Sales Personb) Exhibition & trade showsc) Direct Maild) Press Releasee) Journal ads

f) Word of Mouthg) Industrial directories

How do you accept the proposal of suppliers?Ans.

a. Formal offerb. Quotationc. Formal bids

Which type of buying situation are you having for purchasing of machine?Ans.

d. Routine Re-buye. Modified Re-buyf. New task

Who influence the most for final decision of any equipment/machine/bearing?

A)Within the organization

a) Technical Person

b) Designerc) Quality Engineerd) Maintenance Engineer

B) Outside the organization

a) Consultantb) Experts

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Who takes the final decision for buying equipment/machine/bearing?Ans.

g. Top Management

h. Technical Personi. Purchasers

j. Finance personk. Marketing People

Which types of decisions are taken?Ans.

l. Autonomousm. Joint

Which type of machine / equipment /Bearing used most?

a. branded b. unbranded

Who is your target customer?Ans.

What is your present sale?Ans

What is your expected sale for next two years?Ans.

Are you exporting?

a. yes b. no

If yes,What is percentage (%) of exporting?

Are you planning for diversification or expansion?

a. yes b. no

If yes,- Same product -other product

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What will be time period?Ans.

a. 6 monthsb. 6 to 12 month

c. More than 1 year

How long are you with the present supplier of equipment / bearings?Ans.

Rank the following product factors or attributes which you consider beforebuying equipment/machine/bearing

Rank Quality Durability Design Reliability Packagingstyle

Guarantiesandwarranties

1

2

3

45

Which type of after sales services do you look for any bearing?

Spare part availabilityRepair & maintenance capabilityOther

Where do you put present supplier in terms of satisfaction on the scale of 1 to 5?

Rank Quality Durability Design Reliability Packagingstyle

Services

1

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2

34

5

Any thing beyond this do you want which is not provided by your present supplier?

No yesIf yes,Please suggest

Which kind of payment terms do you prefer?

o Advance payment

o At the time of installation

o Credit terms

Where do you put present supplier in terms of price?

o Better price better quality

o Higher price

o Affordable price

o Cheap

o No comment

Where do you put present supplier in terms of

credit terms and conditions on the scale of 1 to 5?

15

Any thing beyond this do you want which is not provided by your presentsupplier?

No yesIf yes

Please suggest

Where do you put present supplier in terms of satisfaction on the scale of 1 to 5?

Availability 15

Timely delivery 15

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Replacement 15


N0 yes

If yesPlease suggest

Rank the following promotion or communication factors which influences youbefore buying equipment/machine/bearing

Rank Discountscheme

Advertising Tradeshow

Personalselling

Packagingstyle

Gift itemsonpurchase

other

1

2

3

4

5


No YesIf yes

Please suggest

Would you like to stick on particular brand of machine/bearing or try the differentbrands which may satisfied your unsatisfied needs?

No YesQuestionnaire for OEM Industry:--

1. What is credit period?

2. Are you satisfied with credit period and discount scheme given by supplier?

3. Which brand do you suggest when any customer comes to you?

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4. What are the present market shares of different bearing industries?

5. Why do you select present company-?

6. Plus points of present company compare to competitor-

7. Negative points of present company compare to competitor-

Documents

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