Final Project Jk Tyre

8/10/2019 Final Project Jk Tyre

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PROJECT REPORT

A STUDY ON JK TRUCK RADIAL ISSUES AND CHALLENGES FACED

IN A COMPETATIVE MARKET SCENARIO

INTEGRATED TERM PROJECT REPORT

SUBMITTED IN PARTIAL FULFILMENT OF PGDM PROGRAM 2013-15

Submitted By

Name: Janis KingRoll No: 57

Faculty Mentor

Name: Dr. Anil Kumar Sinha

Designation: Director

Financial Services


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Table of Content

S.No. Content Page No.

1 Executive Summary 3

2 Company Profile/Swot/Pest/Competitors 4-15

3 Introduction to the topic and Competitive

Analysis

16-19

4 Objective of the Study 20

5 Research Methodology 21-22

6 Data Analysis 23-29

7 Finding 30-32

8 Limitations 33

9 Conclusion 34

10 Recommendations 35

11 Bibliography 36


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Chapter 1

Executive Summary

The Project seeks to find out the issues and challenges of Truck Radial tyres in competitive market

scenario. Customer satisfaction has always been JK Tyre & Industries Ltd. prime focus. While quality is

important JK Tyre & Industries Ltd. believe, customer oriented sales service is even more important. In

view of this, JK Tyre & Industries Ltd. has engaged highly experienced and professional team for winning

the trust of customers and building strong relationship with them.

Now for CUSTOMER RETENTION JK Truck Radial (TBR) provides services broadly classified as

FLEET MANAGEMENT, CRM (Customer Relationship Management) & TYRE CARE CENTRES.

So the objective of doing this project is to analyse the JK truck radial issues and challenges in competitive

market scenario. And to educate fleet owners and dealers about services that JK Tyres offers so that they

can maximise the benefits from the product and the company. And also Generate suggestions that they

can improve the quality and reach of the services currently provided by JK Tyres.

The sample of the study is consisted of 25 dealers and 20 fleet owners working in different areas through

the questionnaire. Excel is used to analyze the data. This study will help the JK Tyre for taking the

positive action for satisfying their customers and making their policy to compete with their competitors.

Hence this research was mainly undertaken to investigate on the significance of factors such as price,

quality, after sale service, availability, durability, retreadability, credit policy and relationship with their

customers. This report presents comprehensive findings of JK tyres and their competitors and

suggestions to improve them.


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CHAPTER 2

COMPANY PROFILE

1.1 COMPANY BACKGROUND

JK Tyre & Industries Ltd. (JKTIL) earlier known as J.K. Industries Ltd. (JKI) is a profit making, dividend

paying, and flagship Company of the JK Organisation (Eastern Zone) headed by Shri Hari Shankar

Singhania as its Chairman. The operations of the company are steered by Dr.Raghupati Singhania as its

Vice Chairman & Managing Director. JKTIL promoted on Feb. 14, 1951 as a private limited company, was

engaged in managing agency business until the system was abolished in 1970. In 1974, the company was

converted into a public limited company.

Dr. Raghupati Singhania with ultra large sized OTR Tyre manufactured for the first time

JKTIL manufactures the entire range of tyres for trucks, buses, LCV, utility vehicles, cars, jeeps, tractors

and OTR tyres. The current installed capacity is 119.53 Lacks tyres p.a. and 8.98 lacks tyres p.a. is under

expansion at its most modern plants located at Kankroli - Rajasthan, Banmore - Madhya Pradesh,

MysoreKarnataka (3 plants) and Chennai

Tamilnadu.

In 1975 JK Tyre set-up facilities at Jaykaygram, Kankroli, Rajasthan for manufacture of 5 lacs tyres p.a. of

Automotive Tyres and Tubes each in technical collaboration with the General Tires International Co., USA

(now Continental AG Germany). This capacity has been expanded through a series of expansion program

to reach the present level of 17.40 lacs tyres p.a.


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In the year 1991, the company set up a new plant at Banmore in Morena district of Madhya Pradesh. This

plant was set up with an initial installed capacity of 5.69 lacs tyres p.a. Over a period of time the plant

capacity at Banmore has been expanded to 56.73 lacs tyres p.a.

In June 1997, the company acquired controlling interest in erstwhile Vikrant Tyres Ltd. By acquiring 52% of

its equity capital. Karnataka State Industrial Investment & Development Corporation Ltd. (KSIIDC) was a

partner with 26% equity. VTL has 3 Tyre plants, including a Truck Radial Plant, the only of its kind in the

country, located at Mysore with an aggregate capacity of 12.00 lacks tyres p.a. Over a period of time the

plant capacity at Vikrant has been expanded to 24.65 lacks tyres p.a. The company has since been merged

with JKTIL w.e.f. 1stApril 2002.

The Company undertook its first business restructuring exercise operative from April 01, 2002 which involved

transfer of non-tyre businesses to separate entities and merging of erstwhile Vikrant Tyres Limited into the

residual JKTIL.

The Company undertook another restructuring scheme under which residual investments held by the

Company were de-merged into another Company by way of vertical split. The Scheme becomes operative

from 01.10.2005.

In January 2012, The Company has started its new radial tyre manufacturing unit (one of the best modern

tyre plant in India with fully automatic machinery) at Chennai. The Current existing capacity of Chennai Tyre

Plant is 25 Lacks Passenger Car Radial tyres and 2 Lacks Truck Bus Radial Tyres per annum. Additional

capacity of 2 Lacks Truck Bus Radial is expansion.

The Company also made Rights Issue of equity shares in September 2008 at Rs.85/- per share (including

premium of Rs. 75 per share) amounting to Rs.87.25 crs.


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Fig1.1 Corporate Network of JK Tyre and Industries


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JK Tyre has consciously been modernizing and expanding its manufacturing facilities continuously to

retain its edge in the market place. The company is a leading Supplier to all Major OEMs Ashok

Leyland, Tata Motors, Eicher Motors, Force Motors, Maruti Suzuki, Mahindra & Mahindra, Mahindra

Renault, Punjab Tractors, Swaraj Mazda etc. Besides India, the company has a worldwide customer base

in over 75 countries across all 6 continents, and its tyres enjoy premium brand status in various markets,

including USA and Australia.

JK Tyre & Industries has announced its first overseas acquisition with the buy-out of privately-held

Mexican tyre manufacturer Tornel for Rs270 crore. With this, JK Tyre leapfrogs into fourth place in the list

of large Indian tyre makers, with an annual turnover exceeding $1 billion. This is also the company's

second big investment in capacity addition after it took a 51 per cent stake in domestic tyre company

Vikrant Tyres. JK Tyre plans to raise funds through a special purpose vehicle (SPV) in Mexico and the

buyout is expected to close by May-end. Tornel's annual turnover was around Rs800 crore ($202 million

in 2007), while JK Tyres turnover was in excess of Rs3,200 crore ($808 million) in the last fiscal year, of

which Rs500 crore ($125 million) was from exports. The North and South American market accounted for

as much as 48 per cent of these exports, and JK Tyre can further its market there after this acquisition.

Additionally, Mexico has free-trade agreements with several countries in the region, which can be

effectively leveraged by JK Tyre for exports. Another potential advantage of the acquisition is that it frees

up JK Tyre's domestic capacity to focus on the Indian market. Tornel has three operating tyre plants with

an aggregate capacity of 6.6 million tyres per annum, and has a network of 241 distributors and 282 sales

outlets. It produces the entire range, including tyres for trucks, light commercial vehicles and high speed

passenger cars, and employs 2000 people.

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


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CORE VALUES

"Excellence comes not from mere words or procedures. It comes from an urge to strive and deliver the best.

A mindset that says, When it is good enough, improve it. It is a way of thinking that comes only from a power

within."

Caring for people

Integrity including intellectual honesty, openness, fairness & trust

Commitment to excellence

1.2JK TYRE FIRSTS - LEADING THE WAY

Ever since its inception, JK Tyre has been a leader rather than a follower. They have garnered many Firsts to

our credit like;

First Indian tyre company to introduce All Steel Truck & Bus Radialsin India in 1999.

Pioneered Radial technologyin India by introducing passenger radials in 1977

First Indian tyre company to be recognized as 'SUPERBRAND' by Global Advertising Professionals

First in India to launch 'Eco-friendly - Green tyre'

First in India to launch 'Dual Contact' - Aquasonic tyre

First to launch 'Asymmetric' tyre

First in India to launch high performance tyre-

H rated - Speed of above 190 kms upto 210 kms

V rated - Speed of above 210 kms upto 240 kms

Z rated - Speed of above 240 kms. Upto 300 kms.

World's first tyre manufacturer to get QS 9000 certification for all its multi-location operations

World's first tyre manufacturer to get ISO 9001 certificationfor its entire operations.

1.3 EXPANSION PLANS

The pace of radialization of truck/bus segment in India is picking up fast. It is expected to move from

nearly 7% to 15% in the next 5 years. To fulfill this rising demand, JK Tyre is expanding its trucks and

bus radial capacity from 3.67 lakh to 8.00 lakh tyres, i.e. more than double.

The company is fast expanding its capacity, to cater to the rising demand and drive growth. JK Tyre has

undertaken expansion of Rs.480 crores to increase the capacity and is further planning to increase its

off-the-road (OTR) tyre capacity with an investment of Rs120 crore and augmenting its truck radial tyre

capacity to 8 lakh tyres from the existing 3.67 lakh tyres by investing Rs315 crore.


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1.4 ENTRY OF PRIVATE LABELS IN THE INDIAN TYRE INDUSTRY

Indian tyre industry is a Rs 20,000 crore industry, out of which truck and bus tyres account for 65% of the

industry turnover. Major players include JK tyres (19% of the total market share), MRF (18% of the total

market share), ATL (22% of the total market share), CEAT (16% of the total market share), Birla (17% of

the total market share). The market is skewed towards truck tyre segment with a market size of around6,50,000 tyres per month and further this segment is categorized into Super Heavy Load (9% of total

market), Heavy Load(35% of total market), Medium Load(31%of total market) and Normal load (25% of

total market). These categories have been explained subsequently.

Type of Truck Normal Load

(in Tonnes)

Medium Load

(in Tonnes)

Heavy Load

(in Tonnes)

Super Heavy

Load

(in Tonnes)

6 Wheeler 9-12 12-15 15-18 18-24

10 Wheeler 12-15 15-25 25-30 30-45

Private labels refer to a product or variety of products offered by the retailer in competition with branded

goods. Unlike the branded products, private labels sell because of the reputation of the retailer(in this

particular context) and not because of the name of the manufacturer of that product.

Due to globalization the imports have increased over the past two years and more and more private

labels are coming to India. At present China is the world's largest tyre producer. China's tyre production is

the world's fastest production market, which is about $8 billion, accounting for 9 per cent of the world tyre

market share. In India, Private labels have a market of around 1,00,000 tyres currently.

At present, the number of tyre production enterprises in China is around 300, but 70 per cent of them are

small factories whose annual output is under 500,000. The average production capacity of China's tyre

manufacturer is only 400,000 / year, only 15 larger manufactories whose production capacity is over 1

million / year and 3 mega manufactories whose production capacity is over 3 million / year. Therefore, an

outstanding feature of Chinas tyre industry is the concentration ratio of large manufactories has been

intensified markedly, the output of radial ply tyre of the top 10 manufactories accounted for over 77 per

cent of the total output of radial ply tyre.

1.5 TRUCK/BUS RADIAL GROUP (TRG) DEPARTMENT

JK Tyre has emerged as Indias leading four-wheeler tyre manufacturer and the amongst top 20 tyre

manufacturer in the world. As the pioneers of Radial technology in India, the company brought the

radial revolution by introducing Passenger Radials way back in 1977 and has taken forward this


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revolution in the Truck and Bus segments in 1999. The Company continues to be the undisputed

Industry Leader in Radial tyres in Indiathe only tyre manufacturer, offering full range of radial tyres

for Cars, Jeeps, SUVs, LCVs, Truck & Bus and Tractors. The companys state-of-the-art Truck/Bus

Radial Plant in Mysore (Karnataka) is the only of its kind in India.

JK TYRE & INDUSTRIES LTD.CREDO-CUSTOMER SATISFACTION

Customer satisfaction has always been JK Tyre & Industries Ltd. prime focus. While quality is important

JK Tyre & Industries Ltd. believe, customer oriented after-sales service is even more important. In view of

this, JK Tyre & Industries Ltd. has engaged highly experienced and professional team for winning the

trust of customers and building strong relationship with them.

The company has a strong distribution network of over 4000 dealers. JK Tyre was ranked highest in

2005, and continues to be in top two since then in customer satisfaction rated by the JD Power Asia

Pacific Tyre Customer Satisfaction Index (TCSI)study. JK Tyre is the first and the only Indian Tyre to

be recognized as a Superbrand.

Now for CUSTOMER RETENTIONJK Truck/Bus Radial (TBR) provides services broadly classified as

FLEET MANAGEMENT

CRM (Customer Relationship Management)


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TYRE CARE CENTRE


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1.6 TYRE INDUSTRY ANALYSIS APPLYING PORTERS FIVE FORCES

Entry Barriers: HighThe entry barriers are high for the tyre industry. It is a highly capital intensive industry. A plant with an annualcapacity of 1.5 million cross-ply tyres costs between Rs.4,000 and Rs. 5,000 million. A similar plant producing

radial tyres costs Rs. 8,000million.

Bargaining Power of the Buyers: High The OEMs have total control over prices. In fact, the OEMs faced with declining profitability have also

reduced the number of component suppliers to make the supply chain more efficient.

Bargaining Power of the Suppliers: High

The tyre industry consumes nearly 50% of the natural rubber produced in the country. The price of naturalrubber is controlled by Rubber Control Board and the domestic prices of natural rubber have registered a

significant increase in recent times.

Inter Firm Rivalry: LowThe tyre industry in India is fairly concentrated, with the top eight companies accounting for more than 80% ofthe total production of tyres.

Threat of Substitutes:Low but IncreasingDuring the FY2002, over 1,10,000 passenger car tyres were imported. This constitutes over 2% of total radial

passenger car tyre production in the country. However, with the reduction of peak custom duty, the import of

tyres is likely to increase

1.7 COMPETITORS


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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.

1.9 SWOT ANALYSIS

STRENGTH

They have wide dealership network.

They have built a very good brand name over decades and are an aggressive company

They have good understanding of customer needs

They are continuously innovating and improving the efficiency levels

They have successfully received accreditations of ISO 9000 QS 9001 and ISO 14001

They are one of the leading tyre exporters of India

Steel Wheel initiative was implemented as one stop sales cum service center.

Dial a tyre service is an excellent example of innovative concept in tyre industry, with the ordered tyre being

delivered at your doorstep.

WEAKNESS

Limited market share due to the presence of other major brands in the segment.

Low presence in two/three wheeler segment

OPPORTUNITIES

Emerging markets and improved lifestyle

More tie-ups with Automobile companies as its mainly into B2B market.

Horizontal and concentric Diversification

Improved Infrastructure has fuelled more and more transportation

Emergence of India as a hub for small car production

THREATS

Price wars

Stiff competition from national and international brands


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Cheaper technologies

Volatility in prices and availability of raw material as Indias rubber production is less than its demand.

Government Policies export duties, import duties, tax levied on automobile industries and economic

condition of nation as it determines the sale of automobiles.

Introduction of other transport facilities like metro, monorails and local trains keeping pollution hazards

caused by combustion of automobile fuels.


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CHAPTER 2

INTRODUCTION TO THE TOPIC AND COMPETITIVE ANALYSIS

2.1 DESIGNING OF TYRES AND COMPETITIVE ANALYSIS

Passengers cars (including jeep) Radial and bias

Farm tyres Radial and bias

OTR Bias

Truck and Bus Tyres

JK Tyres produce radial as well as bias tyres for this segment. Their tyres are specifically designed in

accordance to the different loading and application requirements of their customers, such as tyres

specifically designed for different vehicles, difficult terrains to match customer requirements such as initial

life, retreadability, load carrying capacity and fuel efficiency.

Bias Tyres JK Tyres manufacture bias truck and bus tyres to cater to various market segments and

customer needs.These can be classified as under:

Radial Tyres As radial tyres require far more controls on quality of vehicle, quality of maintenance

and reasonably good roads for the tyres to p Company manufactures radial tyres for various

applications separately for truck and buses

Light commercial vehicles

Vehicles used to transport goods under approximately seven tonnes are categorized under the category

of light commercial vehicles. This category also includes vehicles like mini vans, mini buses, and eight

seater taxis. Similar to the truck and bus tyre category, tyres for light commercial vehicle (LCV) segment

are produced by us in both radial and bias. The tyres are exclusively developed for different type of

applications in the country which has wide range of requirements and varieties of vehicles using different

tyre sizes with different specifications and loading patterns.

Bias Tyres Their product range in bias LCV tyres starts from ultra light commercial vehicle tyres for

vehicles capable to carry sub-ton load to vehicles capable to carry few tons of loads.

Passenger Cars


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The Passenger car segment typically comprises of private owned cars and commercial taxis including

jeeps, sports utility vehicles and multi purpose vehicles. In the domestic market these classes of vehicles

are categorized into A, B, C, D and SUV classes depending upon the size of the vehicle.

Radial Tyres Their product mix also varies according to the demand of cars in the country and is driven

by tyresbeing used by small cars, which commands maximum market share. They also produce tyres for

high end vehicles. They also engineer our products to meet stringent quality demand put by car

manufacturersuch as V rated tyres capable to take the car up to 240 KMPH.

Bias Tyres They produce bias tyres for a small part of the replacement market. Our major brand is

Jetdrive XS, which is available for compact vehicles such as Maruti 800, Omni, Ambassador and Premier

Padmini.

Farm

Farm segment primarily consists of tractors, tractor trailers and harvester combines. We produce mainly

bias tyres in this segment and have developed radial tyres as well. The segment is dividedbased on thelocation of fitment of tyres in farm equipment especially in tractors.

OTR

The OTR segment primarily consists of earth movers, graders and cranes. We produce only bias tyres

for this segment.

2.2 Competitor Analysis

The next step was to identify the type of loads that are carried by the trucks and carry out the competitor

analysis with respect to JK Tyres.

There are 4 major categories of load:

Super Heavy Load

Heavy Load

Medium Load

Normal Load

Super Heavy Load:

Special feature offered by JK in this category: Warranty and superior load carrying capacity

Load: About 24 Tonnes in 6 wheelers .


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Mileage: About 50,000 Kms in Lug Tyre(Back tyres)

About 60,000 Kms in Rib Tyre(front tyres)

Premature failures in this segment are very high mainly because of the bad road conditions and very high

load (against 9 tonnes permissible).

Customer is ready to pay premium price in this category. Pure Concussion and Cut concussion are the

two major categories of failures and both are covered by majority of companies under special warranty

package.

Heavy Load:

Special feature offered by JK in this category: Good mileage with good load

Load: About 18 Tonnes in 6 wheelers.



Casing value is important in this segment as remoulded tyres of this segment are used in buses,

normal load applications and medium load applications.

Medium Load:

Special feature offered by JK in this category: Good mileage




Product pricing is very important in this segment

Normal Load:

Special feature offered by JK in this category: Very good mileage




Product pricing is very important in this segment


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The next task was to identify Critical to category points in each Load category in their order of

importance (Quality, Price, Mileage, Reliability, Value for money, any other)

In Super heavy load: Warranty, Reliability, Quality, Mileage, Price

In Heavy load: Quality, Reliability, Mileage, Price.

In Medium load: Mileage, Price, Reliability, Quality

In Normal load: Price , Mileage, Reliability, Quality


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CHAPTER 3

OBJECTIVES OF THE STUDY

3.1 OBJECTIVES OF THE STUDY

Primary objective

To analyse the JK truck radial issues and challenges in competitive market scenario.

Secondary objective

Educate fleet owners and dealers about services that JK Tyres offers so that they can maximise the

benefits from the product and the company.

Generate suggestions that they can improve the quality and reach of the services currently provided

by JK Tyres.


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CHAPTER 4

RESEARCH METHODOLOGY

4.1RESEARCH METHODOLOGY

Research is the systematic investigation into existing or new knowledge. It is used to establish or confirm

facts, reaffirm the results of previous work, solve existing or new problems, support theorems, or develop new

theories. A research project may also be an expansion on past work in the field. In order to test the validity ofinstruments, procedures, or experiments, research may replicate elements of prior projects, or the project as

a whole.

The goal of the research process is to produce new knowledge or deepen understanding of a topic or issue.

There are two ways to conduct research: Primary and secondary research.

There are two major research designs: qualitative research and quantitative research. Researchers choose

one of these two tracks according to the nature of the research problem they want to observe and the

research questions they aim to answer. I have chosen quantitative research. .

4.2 SOURCES OF DATA COLLECTION

The study requires both primary and secondary data.

Primary data: Questionnaires

Secondary data: Library and research works, Internet and Books.

Secondary data has been used to analyze the primary data in the light of real world situation.

SAMPLING TECHNIQUES

The population for the study consist of different dealers and various fleet owners of truck.

Sampling unit: The research is conducted in Delhi and NCR.

Sample population: Population of Delhi and NCR.


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Sampling size: Out of the total population, the sample taken among respondents is 45. Wherein 25

respondents are dealers and 20 from different Fleet owners.

Sample method: The research is done by selecting particular respondent who is appropriate for the study

from the market. So, the sample type is cluster sampling.


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CHAPTER 5

DATA ANALYSIS

4.1 DEALER ANALYSIS

1. Which all brands of truck radial tyres do you keep in your stock for further sale?

Jk tyres 14 17%

Apollo 9 11%

MRF 22 27%

Birla 9 11%

Ceat 7 9%

Michelin 10 12%

Chinese 2 2%

Bridgestone 5 6%

Others 4 5%

Total 82 100%

Interpretation:

In my research, maximum of dealers keep MRF tyres followed by JK Tyres whereas only 2% of Chinese

tyres are maintain by dealers.


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2. What are the various factors that you look at while dealing with a particular truck radial tyres company?

Factors very

important

Somewhat

important

Average not at all

important

Total

Price 23 2 0 0 25

Quality 20 4 1 0 25

Credit policy 7 17 1 0 25

Availability 8 14 2 1 25

After sales service and claim 7 8 9 1 25

demand in the market 12 12 1 0 25

Factors very Somewhat Average not at all Total


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important important important

Price 92% 8% 0% 0% 100%

Quality 80% 16% 4% 0% 100%

Credit policy 28% 68% 4% 0% 100%

Availability 32% 56% 8% 4% 100%

After sales service and claim 28% 32% 36% 4% 100%

demand in the market 48% 48% 4% 0% 100%

Interpretation:

92% of dealers said that most important factor is price and quality where as Availability and after sales

service and claim are the least important factors while purchasing truck radial tyres.

3. What makes you to choose JK tyres in comparison to other tyre brands?

Price 6 40%

Quality 3 20%

Availability 5 33%

Better mileage 1 7%

After sales service 0 0%

Other specific reason 0 0%

Total 15 100%


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Interpretation:

40% of dealers said that price is the most important factor for choosing JK Tyres in comparison of other

tyres brands.

4. Which truck radial tyre gives you the best margin in terms of profit?

J.K. Tyres 2 6%

Apollo 3 9%

MRF 20 63%

Birla 5 16%

CEAT 1 3%

Michelin 1 3%

Chinese 0 0%

Bridgestone 0 0%

0thers 0 0%

Total 32 100%


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Interpretation:

63% of dealers said that MRF give them best margin in terms of profit.

4.2 FLEET OWNERS ANALYSIS

Q1. How many trucks do you have?

Vehicle Type No.of.vehicle No.of.vehicle

6 94 9%

10 276 27%

12 382 38%

14 174 17%

18 88 9%

Multi axel 18 & above 0 0%

Total 1014 100%


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Interpretation:

In my research, 38% of the fleet owners have 12 tyres truck followed by 10 tyres truck .

Q2. (a) What type of tyre do you use?

Bias 0 0%

Radial 8 40%

Both 12 60%

Total 20 100%

Interpretation:

60% of the fleet owners use both the tyres radial and bias.


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Q3. What are the problems you face with tyres?

Tyre cut 14 29%

Mis-alignment 8 17%

Punctures 20 42%

Uneven wear 6 13%

Any other 0 0%

Total 48 100%

Interpretation:

42% of the fleet owners said that they face problem of punctures in tyres followed by tyre cut.


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CHAPTER 6

FINDINGS OF THE STUDY

5.1 FINDINGS FROM DEALERS

27% of the dealers keep MRF tyres whereas JK tyres acted as a challenger of MRF with the

reserve stock of 17% for further sale on the same side birla, Apollo and michlin acted as follower

with 11% reserve stock.

In other than mention tyres 5% of the dealers keep Goodyear and Continental tyres in their stock

for sale.

According to dealers price and quality are very important factors whereas credit policy availability

of the truck radial tyres are somewhat important which they look while dealing with a particular

truck radial tyres company.

However after sales service and claim adjustment are not important for the dealers while dealing

with a particular truck radial tyres company.

Three fourth of the dealers choose JK tyres and comparison to other brands because of price

availability.

However after sales service place no role in the selection of jk tyres in comparison to other

brands.

100% dealer said that MRF tyres marketing and promotional/ activities conducted by the

company for their tyres are good whereas 93% of dealers are also highly satisfy with the JK tyres

promotional and marketing activities.

Ceat, Birla and Bridgestone has the average marketing/ promotional activities as per the dealers.

More than 50% of the dealers said that MRF provides them better sales support and relevant

services whereas JK tyres and Apollo has average sales support and relevant services according

to dealers.

In other than mention tyres goodyear and continental provides average sales support and

relevant services.

63% of the dealers said MRF truck radial tyres gives them the best margin in terms of profit.


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However, Apollo giving the direct competition to the JK tyres because they provide somewhat

same margin in terms of profit to the dealers.

More than 50% of the dealers said retreadability to the consumers while purchasing new tyres is

important.

51% of the dealers said MRF has the highest retreadability which is according to the customers

are very important.

However Apollo and michelin giving direct competition to Jk tyres in terms of retreadability

provided to the customers as these 3 tyres has somewhat same % of retreadability.

Safety, durability and availability are the highly satisfied attributes whereas dealers are somewhat

satisfied range of tyres offered by the Jk truck radial tyres in compare to others brands.

Credit policies is the only attributes of Jk truck radial tyres by which dealers are not at all satisfied.

5.2 FINDINGS FROM FLEET OWNER

Maximum of the fleet owner has 12 tyres truck wherein Minimum one tyre can carry 2.75 ton load

whereas more than 2.75 which consider as overload.

(1 Ton= 1000kg).

No fleet owner uses bias tyres alone they either keep radial or both.

However 60% of the fleet owner uses bias as well as radial tyres.

Fleet owner maintain the break up in percentage term in their monthly tyre purchase which is

28% in bias and 72% in radial tyres.

Fleet owner prefer radial over bias because radial tyres can take heavy load, it also perform well

in different roads and has better quality it is used for long run.

Fleet owners who prefer bias over radial because it has less operating cost than radial and

according to the fleet owners its gives desired result.

36% of the fleet owners use MRF radial tyres whereas again Apollo giving direct competition to

JK tyres with the use 21%.

On the other hand fleet owner does not use Ceat and MRF bias tyres. But Birla and Apollo has

the higher usage in terms of bias tyres whereas JK tyres is neutral usage both the tyres.


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As per the importance by the fleet owners while purchasing tyres are as follow most important

variable as per the rank are Retreadability, Less operating cost, Driving comfort, and Strong

casing.

Where as Claim Policy, Fuel efficiency, Resistance to cuts / Punctures and ITM are the least

important variable considered by fleet owners while purchasing tyres.

In JK tyres Fuel efficiency is very good, ITM, resistance to cuts, less operating cost, driving

comfort is good, retreadability is average, strong casting, and claim policy is very poor in

comparison to other tyres.

In maximum brands driving comfort in the common variable which like by the fleet owner.

Strong casting and fuel efficiency are the common variable in all the brands which is unlike by thefleet owners.

Punctures and tyre cut are the measure problem which is faced by the fleet owners.

APOLLO is the direct competitor of JK TYRE whereas MRF is much ahead in every attribute

when it is concerned to truck radial tyres because of their policies.


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CHAPTER 7

LIMITATION OF THE STUDY

6.1 LIMITATIONS OF THE STUDY

There were few unorganized market where some of the transporters didnt had basic information

and data like mileage given by their vehicles, when to change their tyres, when to go for

retreadability etc.

Majority of the customers were not much educated so they were reluctant to answer questions on

technical front.

It was difficult to meet the transporters because of their busy schedule. Many transporters

directed us to their support staff to answer to our queries and for filling up the questionnaire.

At times desired information was not extracted as these support people didnt have the relevant

knowledge about tyres and service requirements.

On questioning about the no. of vehicles owned, it came out that transporters gave fabricated

information. Some exaggerated no. of vehicles owned by them and few transporters truncated the

no. of vehicles owned by them. This came into light as I revisited these transporters again and

again and each time their response varied. The probable reason for it was to evade Income tax

people.


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CHAPTER8

CONCLUSION

JK is one of the best Tyre manufacturing companies in India. Where the improvement is required is the

relationship with its potential customer. Also in some segment JK has not any strong hold compare to

MRF, APOLLO, CEAT, and others. So it can further increase its sales through customer relationship

program and revised policy so that equal benefit can be achieve by each dealers.

Although as per the result of the research MRF has taken the place of leader whereas JK TYRE acting as

a competitor and JK Tyres biggest competitor is Apollo who is trying to take place of JK Tyres.

At the end I would like to conclude by stating that the factors which make customers highly satisfied are

quality, marketing/ promotional, Safety and durability, Availability, Fuel efficiency, Resistance to cuts, ITM,

Less operating cost and Driving comfort.

but there are some factors which actually avert people from getting complete satisfaction and these are

sales support and relevant services, margin in terms of profit, retread ability, Credit policy and Strong

Casting.


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CHAPTER 9

RECOMMENDATIONS

1. Some customers are not satisf ied with the claim pol ic ies as i t is not properl y c lear to

the customers why the claim has been rejected.

2. Today more people prefer guaranteed tyres l ike MRF so JK can modify its guaranty policy

to attract more customers.

3. MRF treats equal to all dealers in terms of margin whether they order less product or more but JK

tyre has got different policy as they give higher margin to big dealers who take big stock of tyre than

smaller ones. So JK Tyre should try to revise their policy to compete MRF.

4. JK Tyre needs to maintain good relationship with their customers for retaining them because many of

dealers switched their brand with other like MRF and APOLLO.


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CHAPTER 10

BIBLIOGRAPHY

http://www.belembassy.org/poland/pol/economics/belszynapl.pdf

http://www.minitab.com/support/answers/answer.aspx?log=0&id=1026

http://www.minitab.com/search/?q=pareto&collection=AllSites

http://www.financialexpress.com/news/mrf-jkteyres-claim-marketshare/69724/

http://www.indiacar.net/news/n2419.htm

www.jktyres.com

www.lifescapes.org/papers/measuring_customer_satisfaction.htm

http://www.fourwheeler.com/techarticles/wheels/129_1102_tire_construction_technology_bias_an

radial/#ixzz2WNe425vx

Reference brochure by JK Tyres on truck tyre
http://www.belembassy.org/poland/pol/economics/belszynapl.pdfhttp://www.minitab.com/support/answers/answer.aspx?log=0&id=1026http://www.minitab.com/search/?q=pareto&collection=AllSiteshttp://www.financialexpress.com/news/mrf-jkteyres-claim-marketshare/69724/http://www.indiacar.net/news/n2419.htmhttp://www.jktyres.com/http://www.lifescapes.org/papers/measuring_customer_satisfaction.htmhttp://www.fourwheeler.com/techarticles/wheels/129_1102_tire_construction_technology_bias_an%20%20%20%20%20%20radial/#ixzz2WNe425vxhttp://www.fourwheeler.com/techarticles/wheels/129_1102_tire_construction_technology_bias_an%20%20%20%20%20%20radial/#ixzz2WNe425vxhttp://www.fourwheeler.com/techarticles/wheels/129_1102_tire_construction_technology_bias_an%20%20%20%20%20%20radial/#ixzz2WNe425vxhttp://www.fourwheeler.com/techarticles/wheels/129_1102_tire_construction_technology_bias_an%20%20%20%20%20%20radial/#ixzz2WNe425vxhttp://www.fourwheeler.com/techarticles/wheels/129_1102_tire_construction_technology_bias_an%20%20%20%20%20%20radial/#ixzz2WNe425vxhttp://www.lifescapes.org/papers/measuring_customer_satisfaction.htmhttp://www.jktyres.com/http://www.indiacar.net/news/n2419.htmhttp://www.financialexpress.com/news/mrf-jkteyres-claim-marketshare/69724/http://www.minitab.com/search/?q=pareto&collection=AllSiteshttp://www.minitab.com/support/answers/answer.aspx?log=0&id=1026http://www.belembassy.org/poland/pol/economics/belszynapl.pdf

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