1

A

Summer Training Project Report

On

Titled

“BRAND AND IMAGE”

Submitted in partial fulfillment for theAward of degree of

Master of Business Administration

Submitted By: Submitted To:Rakhi Ms.Silky TutejaMBA III Sem

2009-2011

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PREFACE

As it is said ............"The theory without practice is lame and practice without

theory is blind." obviously the theory and practice are two facts of same coin,

or in other way theory and practices complementary and supplementary to

each other. And of course these two embody the real knowledge based on the

principle of coming by doing or in pursuit of knowledge these two have

become part and parcel. Here, the practical during summer vacation is of

prime to the Faculty of Management for the purpose of evolution of final (4rth

Semester) examination assist the paper in order to complete in M.B.A. course

of the academic curriculum.

This dissertation imparts a deductive and prescriptive discussion on the duly

on Sales Promotion (with reference to BIRLA Tyres Ltd. Marketing division,

Muzaffarpur) in comprehensible and concise way............ on the basis of the

training, which was done by me in marketing division of BIRLA Tyres Ltd.,

Muzaffarpur. The report has been written for main of marketing as well as the

consumer, Marketing is the lifeblood of any organization to run fast. So

marketing starts right from the time of production. Marketing is nothing but first

to assess the market and then to access the market. The present study is

entitled to the study on Sales Promotion of BIRLA Tyres have been

determined.

The whole study has been done to a particular area i.e. Muzaffarpur.

Simplicity is the main feature of this report from beginning to end so that even

a non-marketing man can take advantage of it.

My observation in BIRLA Tyres Ltd. was to treat main, who are the main

Factor of Production among man, machine, materials, money manufacturing

technology with respect and dignity.

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ACKNOWLEDGEMENT

The project of such magnitude cannot be accomplished without the

assistance and co-operation of several people. Exchange of ideas generates

a new object to work in a better way. So, whenever a person is helped and

co-operation by others, his heart is bound to pay gratitude and is not merely

formalities but an expression of deep sense of gratitude and cumulative

appreciation.

Now first and foremost, I feel highly obliged to Mr. R. K. Sharma, District

Manager: BIRLA Tyres Ltd. Muzaffarpur who got me placed for project

training, which had sent materials, according to my topic for execution in order

to perform the work for preparing this dissertation.

I would like to mention something special about my supervisor Mr. Vipin

Kumar, (Asst. Professor) L.N.Mishra College of Business Management,

Muzaffarpur, and making acknowledgement that without his kind co-operation,

attention, wise guidance and a regular feedback from me, my mission would

not have been fulfilled its milestone. I have not the desired word power to

express my heartiest gratitude regards reverence and indebtness to him.

I also acknowledge with a deep sense of reverence, my gratitude towards of

my parents and member of my family, who has always supported me morally

as well as economically.

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Executive Summary

In today’s world of intense competition and rapid dynamism, all the companies

worldwide are tuning their focuses on the customer. Suddenly, the customer

had succeeded in capturing all the attention of the companies towards him, so

much so, that the once famous maxim, “customer is the god” has become so

true and relevant today. There has been a “paradigm shift” in the thinking of

these companies and none other then the customer has brought this about.

Earlier there was a sellers market, since goods and services were in

short supply and the sellers use to call the shots. But, ever since the advent of

the era of globalization, there has been total transformation in the way the

customers being perceived. Their focus has shifted towards integrating the

three elements people, service and marketing.

A customers can “make or break” a company. It is the responsibility of every

company to see that all its customers are equally satisfied with them, for one

single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company. Research has thrown light on some important aspects of

customers’ retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers.

In the past, the customers was taken for a ride, as there were not many

players in the fields, not much importance was attached to product safety,

quality, service and product appeal. The attitude of the manufacture was that

of “caveat – emptor”. Thanks to the government policies on liberalization,

globalization and privatization (LPG), the market scenario has changed today.

Today, the customer has a host of defense mechanism like the customers

protection laws, regulation of the government, the powerful hands of the

organization, customers’ courts, switching to substitute or competitors that

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offer at competitive prices, etc. The maxim,” caveat – emptor” has been

replaced by “caveat venditor”

Table of contents

S. No. Particulars Pg. No.

1. Introduction to the Industry

2. Introduction to the Organization

3. Research Methodology

3.1 Objective of Study

3.2 Type of Research

3.3 Sample Size & method of

selecting sample

3.4 Scope of Study

3.5 Limitation of Study

4. Facts and Findings

5. Analysis and Interpretation

6. SWOT

7. Conclusion

8. Recommendations &

Suggestion

9. Appendix

10. Bibliography

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INTRODUCTION TO THE INDUSTRY

As a part of academic curriculums in partial fulfillment of "Master of

Business Administration" the trainee has done this summer project in the

marketing division of BIRLA TYRES LTD. Muzaffarpur. The introduction as

well as completion of the study is STUDY OF BRAND IMAGE with respect

to Price Leadership for BIRLA L.C.V. & S.C.V Tyres, at Muzaffarpur.

The study centered to take strategic decisions in support of BIRLA TYRES in

the field of marketing. The main scope of this study is to ascertain various

methods to increase the sales volume of the concern. The method includes

regular product information to the buyers, creating a brand position in the

market and taking measures to make the brand remain in its position. One of

the important aspects of this study is also to increase the market segment for

the products.

A THEORETICAL ASPECT OF BRAND IMAGE WITH RESPECT TO PRICE

LEADERSHIP

A brand is a collection of images and ideas representing an economic

producer; more specifically, it refers to the descriptive verbal attributes and

concrete symbols such as a name, logo, slogan, and design scheme that

convey the essence of a company, product or service. Brand recognition and

other reactions are created by the accumulation of experiences with the

specific product or service, both directly relating to its use, and through the

influence of advertising, design, and media commentary. A brand is a

symbolic embodiment of all the information connected to a company, product

or service. A brand serves to create associations and expectations among

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products made by a producer. A brand often includes an explicit logo, fonts,

color schemes, symbols and sound which may be developed to represent

implicit values, ideas, and even personality. The key objective is to create a

relationship of trust.

The brand, and "branding" and brand equity have become increasingly

important components of culture and the economy, now being described as

"cultural accessories and personal philosophies".

In non-commercial contexts, the marketing of entities which supply ideas or

promises rather than product and services (e.g. political parties or religious

organizations) may also be known as "branding".Concepts

Some marketers distinguish the psychological aspect of a brand from the

experiential aspect. The experiential aspect consists of the sum of all points of

contact with the brand and is known as the brand experience. The

psychological aspect, sometimes referred to as the brand image, is a

symbolic construct created within the minds of people and consists of all the

information and expectations associated with a product or service.

Marketers engaged in branding seek to develop or align the expectations

behind the brand experience (see also brand promise), creating the

impression that a brand associated with a product or service has certain

qualities or characteristics that make it special or unique. A brand is therefore

one of the most valuable elements in an advertising theme, as it demonstrates

what the brand owner is able to offer in the marketplace. The art of creating

and maintaining a brand is called brand management. This approach works

not only for consumer goods B2C (Business-to-Consumer), but also for B2B

(Business-to-Business), see Philip Kotler & Waldemar Pfoertsch.

A brand which is widely known in the marketplace acquires brand

recognition. When brand recognition builds up to a point where a brand

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enjoys a critical mass of positive sentiment in the marketplace, it is said to

have achieved brand franchise. One goal in brand recognition is the

identification of a brand without the name of the company present. For

example, Disney has been successful at branding with their particular script

font (originally created for Walt Disney's "signature" logo), which it used in the

logo.

Consumers may look on branding as an important value added aspect of

products or services, as it often serves to denote a certain attractive quality or

characteristic (see also brand promise). From the perspective of brand

owners, branded products or services also command higher prices. Where

two products resemble each other, but one of the products has no associated

branding (such as a generic, store-branded product), people may often select

the more expensive branded product on the basis of the quality of the brand

or the reputation of the brand owner.

Brand name

The brand name is often used interchangeably with "brand", although it is

more correctly used to specifically denote written or spoken linguistic

elements of a brand. In this context a "brand name" constitutes a type of

trademark, if the brand name exclusively identifies the brand owner as the

commercial source of products or services. A brand owner may seek to

protect proprietary rights in relation to a brand name through trademark

registration. Advertising spokespersons have also become part of some

brands, for example: Mr. Whipple of Charmin toilet tissue and Tony the Tiger

of Kellogg's.

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The act of associating a product or service with a brand has become part of

pop culture. Most products have some kind of brand identity, from common

table salt to designer clothes.

Brand identity

How the brand owner wants the consumer to perceive the brand - and by

extension the branded company, organisation, product or service. The brand

owner will seek to bridge the gap between the brand image and the brand

identity.[2] Brand identity is fundamental to consumer recognition and

symbolizes the brand's differentiation from competitors.

Brand identity may be defined as simply the outward expression of the brand,

such as name and visual appearance.[3] Some practitioners however define

brand identity as not only outward expression (or physical facet), but also in

terms of the values a brand carries in the eye of the consumer. In 1992 Jean-

Noel Kapferer developed the Brand Identity Prism, which charts the brand

identity along a constructed source and constructed receiver axis, with

externalization on the one side and internalization on the other. On the

externalization side brand identity consists of "physical facet", "relationship"

and "reflected consumer". On the internalization side brand identity consists of

"personality", "culture (values)" and "consumer mentalisation". In this respect

Kapferer positions brand personality as one factor within brand identity.

Brand personality

Brand personality is the attribution of human personality traits to a brand as a

way to achieve differentiation. Such brand personality traits may include

seriousness, warmth, or imagination. Brand personality is usually built through

long-term marketing, as well as packaging and graphics.

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Brand promise

Brand promise is a statement from the brand owner to customers, which

identifies what consumers should expect from all interactions with the brand.

Interactions may include employees, representatives, actual service or

product quality or performance, communication etc. The brand promise is

often strongly associated with the brand owner's name and/or logo.

Brand value

Brand equity or brand value measures the total value of the brand to the

brand owner, and reflects the extent of brand franchise.

A brand can be an intangible asset, used by analysts to rationalize the

difference between a company's "book value" and market value. For example,

the market value of a company can far exceed its tangible assets (physical

assets owned by the company, such as stock or machinery), and its brand

value can account for some of the difference. Up to 85 percent of a

company’s market value might be intangible (for example know-how, existing

client relationships), and Interbrand, a brand consultancy, states that tangible

assets may account for less than five percent of a company’s market value.

Brand value, especially in the case of consumer product brands, may arise

out of customer loyalty. Brand value may also arise in terms of staff retention

benefits (e.g. the ability of the company to attract and retain skilled and/or

talented employees offering competitive salaries).

Campaigning groups may deliberately target a company’s brand value to

force a company into adopting a certain position or practices. Some campaign

groups have thought to do this by deliberately subverting a brand’s image,

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logo or message, creating a negative association among consumers. This

attack may be visual, as pioneered by groups such as Adbusters, or focusing

on the message.

Brand monopoly

In economic terms the "brand" is, in effect, a device to create a "monopoly" —

or at least some form of "imperfect competition" — so that the brand owner

can obtain some of the benefits which accrue to a monopoly or unique point of

sale, particularly those related to decreased price competition. In this context,

most "branding" is established by promotional means. However, there is also

a legal dimension, for it is essential that the brand names and trademarks are

protected by all means available.

In all these contexts, retailers' "own label" brands can be just as powerful. The

"brand", whatever its derivation, is a very important investment for any

organization

Branding policies

There are a number of possible policies:

Company name

Often, especially in the industrial sector, it is just the company's name which is

promoted (leading to one of the most powerful statements of "branding"; the

saying, before the company's downgrading,).

In this case a very strong brand name (or company name) is made the vehicle

for a range of products or even a range of subsidiary brands.

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Individual branding

Individual branding, also called multibranding, is the marketing strategy of

giving each product in a product portfolio its own unique brand name. This is

contrasted with family branding in which the products in a product line are

given the same brand name. The advantage of individual branding is that

each product has a self image and identity that's unique. This facilitates the

positioning process. That means that there are less Halo-effects and one can

position all products differently without making trade-offs.

Attitude branding

Attitude branding is the choice to represent a larger feeling, which is not

necessarily connected with the product or consumption of the product at all.

Marketing labeled as attitude branding include that of Nike, Starbucks, The

Body Shop, Safeway, and Apple Computer. In the 2000 book, No Logo,

attitude branding is described by Naomi Klein as a "fetish strategy".

"No-brand" branding

Recently a number of companies have successfully pursued "No-Brand"

strategies, examples include the Japanese company Muji, which means "No

label, quality goods" in English. Although there is a distinct Muji brand, Muji

products are not branded. This no-brand strategy means that little is spent on

advertisement or classical marketing and Muji's success is attributed to the

word-of-mouth, a simple shopping experience and the anti-brand movement.

Other brands which are thought to follow a no-brand strategy like Muji, does

not brand its products.

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Derived brands

In this case the supplier of a key component, used by a number of suppliers of

the end-product, may wish to guarantee its own position by promoting that

component as a brand in its own right.

Brand development

In terms of existing products, brands may be developed in a number of ways:

Brand extension

The existing strong brand name can be used as a vehicle for new or modified

products; for example, many fashion and designer companies extended

brands into fragrances, shoes and accessories, home textile, home decor,

luggage, (sun-) glasses, furniture, hotels, etc.

Multi-brands

Alternatively, in a market that is fragmented amongst a number of brands a

supplier can choose deliberately to launch totally new brands in apparent

competition with its own existing strong brand (and often with identical product

characteristics); simply to soak up some of the share of the market which will

in any case go to minor brands. The rationale is that having 3 out of 12 brands

in such a market will give a greater overall share than having 1 out of 10

(even if much of the share of these new brands is taken from the existing

one). In its most extreme manifestation, a supplier pioneering a new market

which it believes will be particularly attractive may choose immediately to

launch a second brand in competition with its first, in order to pre-empt others

entering the market.

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Earlier there was a sellers market, since goods and services were in short

supply and the sellers use to call the shots. But, ever since the advent of the

era of globalization, there has been total transformation in the way the

customers being perceived. Their focus has shifted towards integrating the

three elements people, service and marketing.

A customers can “make or break” a company. It is the responsibility of

every company to see that all its customers are equally satisfied with them, for

one single dissatisfied customer will tell at least nine others about the

dissatisfaction and will spark off a chain reaction and spell doom for that

company. Research has thrown light on some important aspects of

customers’ retention it has been proved empirically that acquiring new

customers can cost five times more than the cost involved in satisfying and

retaining current customers.

In the past, the customers was taken for a ride, as there were not many

players in the fields, not much importance was attached to product safety,

quality, service and product appeal. The attitude of the manufacture was that

of “caveat – emptor”. Thanks to the government policies on liberalization,

globalization and privatization (LPG), the market scenario has changed today.

Today, the customer has a host of defense mechanism like the customers

protection laws, regulation of the government, the powerful hands of the

organization, customers’ courts, switching to substitute or competitors that

offer at competitive prices, etc. The maxim,” caveat – emptor” has been

replaced by “caveat venditor”.

About Tyre industries in India

Background

The origin of the Indian Tyre Industry dates back to 1926 when Dunlop

Rubber Limited set up the first tyre company in West Bengal. MRF followed

suit in 1946. Since then, the Indian tyre industry has grown rapidly.

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Transportation industry and tyre industry go hand in hand as the two are

interdependent. Transportation industry has experienced 10% growth rate

year after year with an absolute level of 870 billion ton freight. With an

extensive road network of 3.2 million km, road accounts for over 85% of all

freight movement in India.

Key Issues of tyre industries

High tax usage

The high tax content on tyres can be gauged from the fact that the percentage

of total tax to the tax excluded price for various categories of tyres is - 44% for

Truck Tyre; 41% for Passenger Car Radial Tyre, 35% for Tractor Rear Tyre

and 76% for Truck Tyre

Increase in raw material costs

Apart from being capital intensive, the tyre industry is highly raw material

intensive. Any change in the prices of raw materials affects the profitability of

tyre companies. The raw materials used in the manufacture of tyres are

rubber and petroleum derivatives like nylon tyre cord, carbon black, styrene

butadiene rubber and poly butadiene rubber. The most important raw material

is rubber-natural and synthetic. Natural rubber (NR), with 29% weightage in

the cost of raw materials used by tyre industry, is the highest cost item.

Annual consumption of NR by tyre industry is 3.50 lakh tonnes, valued at Rs.

14 billion. Over 85% of NR consumed' by the industry is procured

domestically. 15% is imported.

Import of tyres

During the FY2002, over 1,10,000 passenger car tyres were imported.

Although this constitutes a small percentage (1.5%) of total passenger car

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tyre production in the country, since total imports are of radial passenger car

tyres, the percentage is higher when compared against domestic production

of radial passenger car tyres. A large percentage of imports are from South

Korea at a concessional rate of customs duty (i.e. 15%) under the Bangkok

Agreement - as against 20% normal rate of customs duty.

Even though the Government has imposed a restraint on the import of used

tyres into India, occasionally there are reports of import of such tyres in a

clandestine manner, sometimes as new tyre at low value, since there is no

restriction on import of new tyres or as tyres under the "others" category.

Many countries such as Japan, Bangladesh, Pakistan, Philippines, Thailand,

Kenya, South Korea, etc. have either put a complete ban on import of used

tyres or have placed stringent conditions on such imports.

Tyre Exports

The product focus of tyre exports from India has been Traditional Truck Tyres.

Globally this segment of tyre export is shrinking due to greater acceptance of

radial tyres. Over the years, China has emerged as a major exporter in bias

tyre category. Additionally, export of Indian tyres to select countries is

subjected to non-tariff barriers (NTBs) by way of standards, tests, etc. Export

of cheaper tyres from China to major tyre importing markets, like US, is

adversely affecting Indian tyre exports to these markets. India's share in

exports to these countries (especially USA) is progressively declining. If the

trend is not reversed, Indian tyre industry will find it extremely difficult to

regain its erstwhile position in these markets. Low rate of interest, cheaper

electricity tariff, hidden subsidies by the Chinese Government, better

infrastructure facilities and lower transaction costs are factors favourable to

Chinese tyre industry.

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Trends in Production, Consumption, Price & Capacity Utilization

The total tyre produced in the country was 51.58 million units in FY2003 - a

19% growth rate over FY2002.

CAGR of tyre production (in %)

FY 1993-2003

9%FY 1993-1998 7%

FY 1999-2003 9%

FY 2002-2003 19%

Compiled by INGRES

Currently, the size of the Indian tyre industry is estimated at Rs. 128

billion (0.5% of Indian GDP), as of FY2003. The total installed capacity of

the Indian tyre industry is around 60.5 mn units, and the capacity

utilization is around 85%. Additionally, in FY2003, the price realization of

tyre manufacturers also registered an increase by 8%, as against a 0.6%

increase in FY2002.

Demand Supply Gap

The demand for tyres is either in the domestic market or in the export market.

As far as domestic demand is concerned, the OEM and the replacement

segments are likely to witness strong growth given the current performance of

the automotive sector. Given the strong linkages of tyre industry with

automotives, its demand is likely to be strong over the short to medium term.

As regards supply of tyres, currently, the major players are in the process of

expanding their capacities, in anticipation of uptrend in sales. For instance,

Apollo Tyres has set up a joint venture with Michelin for manufacture and sale

of bus and truck radials. JK is expanding its Mysore truck and bus radial

facility along with eyeing acquisitions of smaller units. Ceat has increased its

offtake by 3 times from Pirelli. However, a characteristic of the Indian tyre

industry is that most of the tyre manufacturers in the past had increased

capacities in anticipation of a surge in demand, but when it did not materialise,

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they reduced their addition to capacities. Thus, the demand-supply gap is

likely to be an important issue for the Indian tyre industry over the short to

medium term.

Review of Performance

Overall Performance

The operating margin of the representative sample of tyre companies

improved during FY2003. However, the net profit margin of the tyre

companies even though improved, was still at 3%.

Performance in FY2004

The tyre industry continues to be driven by good demand growth, propelled by

sustained uptrend in demand and sales of automobiles in general, and

commercial vehicles and passenger cars in particular. However, this does not

get translated into improved margins for the industry, as it is witnessing

sustained rise in prices of raw materials like natural rubber. Additionally, the

customs duty on imports has been brought down from 25% to 20% and

Special Additional Duty of 4% has been dispensed with.

Outlook

The level of economic activity, performance of domestic automotive industry,

and the faring of the transport sector directly influence the performance of the

tyre industry in India. With the replacement segment dominating the overall

tyre demand in India, the industry remains inherently vulnerable to economic

cycles. While radicalization has become the norm in the passenger car

segment, in the bus and truck tyre segment, its acceptance is still limited. Bus

and truck radicalization could emerge in the long term as the quality of roads

improves and the restrictions on overloading are better enforced. The practice

of re-treading, which is gaining increasing acceptance, could pose a challenge

to replacement demand in the medium term.

In the domestic market, tyre manufacturers are expected to increasingly focus

on expanding their dealership networks & explore possibilities of tie-ups

among themselves to penetrate the growing customer base. They are also

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likely to pursue innovative measures (such as "dial-a-tyre service and road

shows) to improve customer awareness.

The consolidation of the Indian tyre industry is likely to continue in the coming

years through mergers among existing players. The industry is likely to

expand through a combination of organic and inorganic growth. While organic

growth would come from raising efficiency levels, inorganic growth would be

achieved through alliances and M&As.

a. Growth of Tyre industries in India

The Indian tyre industry is expected to clock a tonnage growth of 9-10 per

cent over the next five years, according to a study by Credit Analysis and

Research Limited (CARE)

While the truck and buses tyres are set to register a CAGR (compounded

annual growth rate) of 8 per cent, the LCV (lightCommercial vehicles) tyres

are poised for a CAGR of 14 per cent.

According to the CARE study, the growth in the Indian tyre industry will be

fuelled by the expansion plans of the automobile companies, government's

focus on development of road infrastructure and sourcing of auto parts by the

global Original Equipment Manufacturers (OEMs). However, the tyre industry

has to grapple with raw material price volatility, rupee appreciation and cheap

Chinese imports.

The tyre industry in India recorded a CAGR of 9.69 per cent during 2002-07.

The size of the industry was estimated at Rs 19,000 crore in 2006-07 with a

total production of 736 lakh units of tyres. In 2006-07, the replacement tyres

accounted for 53 per cent of the total tyre tonnage offtake, followed by 31 per

cent share of OEM and 15 per cent by exports.

Out of the 736 lakh ton of tyres, 54, 49,560 units worth Rs 2,600 crore were

exported. The exports from India posted a CAGR of 13 per cent in unit terms

and 18 per cent in value terms between 2002-07.

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The study points out that on the export front, the Indian tyre companies need

to explore newer markets as the existing market is nearing saturation. This

apart, with rationalization catching up in the foreign markets, the Indian tyre

companies need to graduate to radial tyres so as to protect their share in the

export market.

The CARE report observes that though the tyre technology in India has

witnessed several developments with continuous innovation, the domestic

tyre manufacturers still lag behind their global counterparts in terms of product

differentiation. Global tyre makers offer a wide change of products like tyres

with pressure warning systems, run flat tyres, eco-friendly tyres and energy

efficient tyres

Individual brand names naturally allow greater flexibility by permitting a variety

of different products, of differing quality, to be sold without confusing the

consumer's perception of what business the company is in or diluting higher

quality products.

Once again, Procter & Gamble is a leading exponent of this philosophy,

running as many as ten detergent brands in the US market. This also

increases the total number of "facings" it receives on supermarket shelves.

Sara Lee, on the other hand, uses it to keep the very different parts of the

business separate — from Sara Lee cakes through Kiwi polishes to L'Eggs

pantyhose.

Small business brands

Branding a small or medium sized business (SME) follows essentially the

same principle a branding larger corporation. The main differences being that

small businesses usually have a smaller market and have less reach than

larger brands. Some people argue that it is not possible to brand a small

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business, however there are many examples of small businesses that

became very successful due to branding.

Own brands and generics

With the emergence of strong retailers the "own brand", a retailer's own

branded product (or service), also emerged as a major factor in the

marketplace. Where the retailer has a particularly strong this "own brand" may

be able to compete against even the strongest brand leaders, and may

outperform those products that are not otherwise strongly branded.

Concerns were raised that such "own brands" might displace all other brands,

but the evidence is that — at least in supermarkets and department stores —

consumers generally expect to see on display something over 50 per cent

(and preferably over 60 per cent) of brands other than those of the retailer.

The strength of the retailers has, perhaps, been seen more in the pressure

they have been able to exert on the owners of even the strongest brands (and

in particular on the owners of the weaker third and fourth brands).

Relationship marketing has been applied most often to meet the wishes of

such large customers (and indeed has been demanded by them as

recognition of their buying power). Some of the more active marketers have

now also switched to 'category marketing' - in which they take into account all

the needs of a retailer in a product category rather than more narrowly

focusing on their own brand.

At the same time, probably as an outgrowth of consumerism, "generic" (that is,

effectively unbranded goods) have also emerged. These made a positive virtue

of saving the cost of almost all marketing activities; emphasizing the lack of

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advertising and, especially, the plain packaging (which was, however, often

simply a vehicle for a different kind of image)..

2. INTRODUCTION TO THE ORGANIZATION

History of the Organization

BIRLA Tyres straddles the Indian tyre industry much like the Greek Sun God

BIRLA's four horse-drawn chariot races across the vast expanse of the sky,

symbolising the creation of light, hence knowledge and truth. And like the

Greek charioteer, BIRLA Tyres has stood the test of time on the four pillars of

vision, integrity, quality and sheer determination.

The history of BIRLA Tyres dates back to 1974 when it was incorporated as a

company in Cochin, Kerala through the purchase of a licence from the Ruby

Rubber Works. Cochin by Mr. Mathew T. Marattukalam, Jacob Thomas and

his associates. In 1976, the company was taken over by Dr. Raunaq Singh.

BIRLA's first manufacturing facility (often referred to as the 'mother plant') is in

Perambra, Cochin where production commenced in 1977 with an installed

capacity of 420,000 each of tyres and tubes.

The first 20 years of the company's existence were not easy. Those were

times when licences and quotas ruled the world of manufacturing in a market

dominated by multinational companies with access to technology and

machinery and deep pockets.

Therefore, soon after its inception, due to the huge investments required,

BIRLA wiped out its net worth and became a BIFR company during the

Emergency years. However, BIRLA Tyres was returned to its owners during

the Janata Government.

BIRLA then used to make the entire gamut of tyres required for scooters,

bicycles, trucks and cars. However, the then core team, led by Onkar Singh

Kanwar, realized that to make an impact in the market and become financially

viable it had to become a dominant player in the commercial vehicles

segment. At the time, Modi Tyres had an overwhelming market share and

23

reputation. Extensive on-ground research by the team allowed it to

understand the areas in which BIRLA could make an impact.

The philosophy then was 'one product fits all', where regardless of the kind of

usage, the tyres truckers fitted on their vehicles were the same. Team BIRLA

decided to known as the 'overload' segment and produce tyres which could

withstand the extra load the vehicles were made to carry, while providing

drivers with the crucial safety net. It was a tyre called the Hercules which was

the first of its kind. Later, products like Amar, Loadstar and XT-7, XT-9 and

XT-9 Gold were introduced, products still enjoy consumer validation. In fact,

XT-9 is the only tyre in India to have sold more than one crore units, providing

the superiority of the product.

In later years, there have been many such first in BIRLA's cap. Apart from

enjoying the distinction of being the first tyre company to segment the market

on the basis of load and mileage requirements, it has been the first to

introduce packaging for car tyres and tubes and also the very first Indian

company to introduce farm radial tyres. n other innovative moves, BIRLA is

the first tyre company to run customer loyalty and awareness programmes to

enable them to derive optimal benefits from their BIRLA farm tyres, and also

the first to launch exclusive rural retail stores 'BIRLA Tyre World' for truck

tyres. BIRLA tyres Ltd. has another first to its credit being the first Tyre

Manufacturing Company Worldwide to be certified for B7799 given for

information security of IT systems. Another landmark has been the successful

implementation of SAP across the organisation for better results and

productivity.

"People deliver innovation

Innovations deliver success

A few of the differences our people made"

24

First Indian tyre company to launch exclusive branded outlets -- BIRLA Tyre

World -- for truck tyres

First Indian tyre company to segment the market on the basis of load and

mileage requirements

First Indian tyre company to introduce packaging for car and two-wheeler

tyres and tubes

First Indian tyre company to run a customer loyalty programme

First Indian tyre company to introduce radial tyres for the farm category

First tyre company in India to obtain ISO Certification for all its operations

First Indian tyre company to produce H, V and W-speed rated tubeless tyres

First Indian tyre company to run HIV-AIDS awareness and prevention clinics

for the trucking community

First Indian tyre company to support the creation of an Emergency Medical

Service in an Indian city

First Indian tyre company to execute an overseas acquisition

First Indian tyre company to reach a revenue of over US$ 1 billion

1975 Inception

1975 Registered as a company

1977 First plant commissioned in Perambra (Cochin, Kerala)

1991 Second plant commissioned in Limda (Baroda, Gujarat )

1995 Acquired Premier Tyres in Kalamassery (Cochin, Kerala)

1996 Exclusive tubes plant commissioned in Ranjangaon (Pune,

Maharashtra)

25

2000 Exclusive radial capacity established in Limda

2000 Established BIRLA Tyres Health Care Clinic for HIV-AIDS awareness

and prevention in Sanjay Gandhi Transport Nagar, Delhi

2003 Expansion of passenger car radial capacity to 6,600 tyres/day

2004 Production of India 's first H-speed rated tubeless passenger car radial

tyres

2004 Support in setting up India 's first Emergency Medical Service in

Baroda , Gujarat 2005 BIRLA Tyres Health Care Clinics in Udaipur

in Rajasthan and Kanpur in Uttar Pradesh

2006 Expansion of passenger car radial capacity to 10,000 tyres/day

2006 Expansion of passenger car range to include 4x4 and all-terrain tyres

2006 Acquired Dunlop Tyres International in South Africa and Zimbabwe

2006 Opening of BIRLA Tyres Health Care Clinic in Ukkadam, Tamil Nadu

2006 Launch of DuraTread, treading material and solutions

2006 Launch of India's first range of ultra-high performance V and W-speed

rated tyres

2007 Launch of Regal truck and bus radial tyres

2007 Launch of DuraTyre, retreaded tyres from BIRLA

2007 Launch of the BIRLA Tennis Initiative and Mission 2018

The Future

26

At BIRLA Tyres, they believe in being in control of their destiny. They set

ambitious targets and believe in stretching themselves to outperform them.

Therefore, the leadership position in the Indian market notwithstanding,

BIRLA is now set to look overseas for new challenges. Nearly all initiatives

being taken at this point in time are geared to fuel this ambition.

At home and abroad, BIRLA is looking to not only consolidate its leadership

position in various segments through newer, high technology products but

also through consistent organic and inorganic growth opportunities, in tyres

and allied products. Becoming a leader in the passenger car tyre segment is a

priority as is the export of passenger car radials. If the company continues to

grow at the current pace, BIRLA expected to reach the US$1 billion mark in

less than five years. Continuous focus on cost control and operating efficiency

remains the hallmark of the company.

Adding to all this is the fact that radialisation in India is throwing up fresh

opportunities, as is the boom in road infrastructure and the completion of the

Golden Quadrilateral and the North-South-East-West corridor. Therefore the

future is optimistic with promises of a virtuous cycle of growth.

BIRLA has three Tyre manufacturing facilities and one unit for the production

of tubes and flaps in four locations based in West and South India. BIRLA

Endeavour has been to have the widest spread of sales and regional offices,

along with stock points at locations which allow for maximum customer reach

and efficient supply chain management. BIRLA dealer or business partners

are also chosen with great care. BIRLA's products are sold through a

combination of outlets ranging from exclusive dealerships to multi-brand and

branded retail outlet The continuous up gradation of dealer knowledge is in

BIRLA's interest and therefore their training is undertaken by the company.

With a dedicated field sales, technical and commercial force of 600, we feel

that we are best positioned to meet the customer specific needs.

27

Research and Development for BIRLA Tyres

The state-of-the-art Research & Development Centre had its birth at

Perambra, Cochin and later on, it has grown to a substantial height and

stature at its present location at Limda, Baroda. From the hour of inception, its

goal has been to foster development and promote the evolution of new

technologies in the field of Tyre Science & Technology. Recently company

has tie ups with IIT's & IIM's for Rubber Technologies.

All the activities of the centre are extensively supported by a series of highly

sophisticated equipment, which help the research scientists develop products

as per customers' specific requirements.

We have the facilities and expertise for:

Development of compounds for improved performance

Raw material development

Analytical research

Reverse engineering

Advanced design using CAD

FEA modeling of tyres

Simulation testing of the designed product

Product validity & reliability studies

28

The different activities of the centre are being executed by a pool of

specialists from the arena of Polymer Science, Rubber Technology, Inorganic

& Organic Chemistry, Textile Technology, Physics and Mathematics. Through

a synergistic blend of knowledge, experience and hard work, this

multidisciplinary team of scientist devoted to lead the organisation towards an

outstanding level of success. Currently, the centre is aiming for further growth

and is exploring unchartered areas of research in the field of Tyre Technology

that will provide BIRLA Tyres the edge in today's ultra-competitive global

market scenario. The brand name is often used interchangeably with "brand",

although it is more correctly used to specifically denote written or spoken

linguistic elements of a brand. In this context a "brand name" constitutes a

type of trademark, if the brand name exclusively identifies the brand owner as

the commercial source of products or services. A brand owner may seek to

protect proprietary rights in relation to a brand name through trademark

registration. Advertising spokespersons have also become part of some

brands, for example: Mr. Whipple of Charmin toilet tissue and Tony the Tiger

of Kellogg's.

Marketing Strategy

Strategic thinking is key to the evolution of successful marketing strategies of

Birla Tyre. This involves the following analyses:

i. Understanding markets: Strategic perspective of the market requires

skilful analysis of the trend and how they affect the market size and

demand for the firm’s product.

ii. Finding market niches: Price, service, convenience and technology are

some of the niches in Indian market.

iii. Product and service planning: Analysis of the customer’s promotion of

the brand, both of the firm and competitors, besides an analysis of the

situation in which the customer uses the product.

29

iv. 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.

v. Managing for result: With pressure on costs, prices, and margins,

marketers will have to make effective utilization of every rupee spent in

marketing.

Market opportunity of Birla:

Identification of market opportunity is critical before the management of affirm

takes a decision to launch or diversify in any product area. This involves

analysis of the following:

Size of the market

Marketing strategies and the extent and quality of services rendered by

other firm in the industry.

Market programmed required to satisfy market wants

Identification of key success factors in an industry and linking them to a

firm’s strengths and weakness

Market opportunity

a. Size of the market

b. How well the market is served

c. Prospective inches

d. Marketing mix required to succeed

e. Core competencies required

30

Framework of market opportunity analysis

Size of the market:

Sizes of the market are....

I. Demand analysis: is the core aspect of market opportunity.

II. Segmentation analysis: is the process of dividing the market into

homogeneous sub units.

III. Industry analysis:

Market opportunitySize of the marketHow well the market is servedProspective inchesMarketing mix required to succeedCore competencies required

Demand Condition

s

Market segment analysis

Industry analysis

Competition analysis

Trade analysis

31

Industry Analysis - Porter's Model

iv. Competitor analysis: analysis of competition how well the market is

served.

Inter Firm Rivalry: LowThe tyre industry in India is fairly concentrated, with the top eight

companies accounting for more than 80% of the total production of tyres

Entry Barriers: High

The entry barriers are high for the tyre industry. It is a highly capital intensive industry. A plant with an annual capacity of 1.5 million cross-ply tyres costs between Rs. 4,000 and Rs. 5,000 million. A similiar plant producing radial tyres costs Rs. 8,000 million.

Bargaining Power of the Suppliers: High

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

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.

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.

32

Marketing mix:

A Marketing mix is the division of groups to make a particular product, by pricing,

product, branding, place, and quality. Although some marketers[who?] have added

other P's, such as personnel and packaging, the fundamentals of marketing

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

1. Product

2. Price

3. Promotion

4. Place

33

Product

A tangible object or an intangible service that is mass produced or

manufactured on a large scale with a specific volume of units. Intangible

products are often service based like the tourism industry & the hotel industry.

Typical examples of a mass produced tangible object are the tyre. A less

obvious but ubiquitous mass produced service is a computer operating

system.

Product range:

BIAS

SIZE TYPE

RIB 9.00-2014PR

JET RIB

9.00-2016PR

34

JET RIB

10.00-2016PR JET RIB

JET MILES

SEMI

LUG

9.00-2014PR

TRACK TUF

9.00-2016PR

TRACK TUF

10.00-2016PR

TRACK TUF

LUG

NORMAL

LOAD

8.25-2014PR

JET TRACK

9.00-2014PR JET TRACK

9.00-2016PR JET TRACK

10.00-2016PR JET KING

11.00-2016PR JET KING

12.00-2016PR JET KING

MODERATE

8.25-2014PR JET TRACK

9.00-2014PR JET TRACK

9.00-2016PR JET TRACK

10.00-2016PR JET CLASSIC

10.00-2016PR TRACK 39 & DX

10.00-2016PR TRACK 39 DX

RADIAL

HEAVY

SUPER

HEAVY

35

SIZE TYPE

LUG

9.00-2016PR JET STEEL-JDH

10.00-2016PR JET STEEL-JDC

11.00-2016PR JET STEEL-JDC

SEMI

LUG

09.00-2016PR JET WAY JUC

10.00R2016PR JET WAY JUC

11.00R2016PR JET WAY JUC

RIB

9.00R2014/16PR JET WAY JUC

10.00R2016PR JET WAY JBR

11.00R2016PR JET WAY JUH

12.00R2018PR JET WAY JUH

Price

The price is the amount a customer pays for the product. It is determined by a

number of factors including market share, competition, material costs, product

identity and the customer's perceived value of the product. The business may

increase or decrease the price of product if other stores have the same

product.

Place

Place represents the location where a product can be purchased. It is often

referred to as the distribution channel. It can include any physical store as well

as virtual stores on the Internet.

36

Promotion

Promotion represents all of the communications that a marketer may use in

the marketplace. Promotion has four distinct elements - advertising, public

relations, word of mouth and point of sale. A certain amount of crossover

occurs when promotion uses the four principal elements together, which is

common in film promotion. Advertising covers any communication that is paid

for, from television and cinema commercials, radio and Internet adverts

through print media and billboards. One of the most notable means of

promotion today is the Promotional Product, as in useful items distributed to

targeted audiences with no obligation attached. Saes staff, word of mouth,

Public relations etc are other such means of promotion.

37

Financial Status of the Organization

NG FINANCIAL HIGHLIGHTSOPERATI

38

Competitors of the Organization

List of competitors

CEATMRF

DUNLOPBRIDGESTONE

J.K.Tyre

BIRLAGOODYEAR

OTHERS

39

We are manufacturers and exporters of Automotive Tyres, Tubes & Flaps.Various types of tyres available is given here : Deep Tread Highway Rib, Standard Highway Rib, Heavy Duty Highway Rib, Highway Rib, Extra Heavy Duty Lug, All Terrain Highway Traction, Extra Durable Lug, RIB-LUG FOR HEAVY DUTY ON/OFF USE, HIGHWAY RIB, PASSENGER BIAS TYRES, REAR FARM TYRES, FARM SERVICE RIB, FABRIC BELTED RADIAL PASSENGER TYRES, MUD AND SNOW TYRES.We provide services such as : ESC : YOUR VITAL LINK TO THE INFORMATION TECHNOLOGY AND ELECTRONICS INDUSTRY IN INDIA.Electronics and Computer Software Export Promotion Council (ESC)-an autonomous organization under the Ministry of Information Technology, Government of India is the nodal agency to promote the Electronics and Computer Software trade with India. It has a membership of 1800 companies divided into the following product groups :- Consumer Electronics and toys of all kinds, Electronic Components, Computer Hardware and Peripherals, Telecommunication Equipment, Electronic Instruments, Medical and other Industrial Electronics, Computer Software, Internet Related Services.Practically all major players in the Indian Electronics export arena are members of ESC. The services provided by ESC include. - Development of export and exploration of possibilities of strategic tie ups, contract manufacturing and other tie ups.Market research studies in major overseas markets on a regular basis to explore foreign markets and identify items of export potential.A constant stream of upgraded information on international marketing trends and products specifications is made available, on a regular basis to Indian electronics and computer software exporters.The information is packaged through Seminars, Workshops and Deep Tread Highway Rib, Standard Highway Rib, Heavy Duty Highway Rib, Highway Rib, Extra Heavy Duty Lug, All Terrain Highway Traction, Extra Durable Lug, RIB-LUG FOR HEAVY DUTY ON/OFF USE, HIGHWAY RIB, PASSENGER BIAS TYRES, REAR FARM TYRES, FARM SERVICE RIB, FABRIC BELTED RADIAL PASSENGER TYRES, MUD AND SNOW TYRES.We provide services such as : ESC : YOUR VITAL LINK TO THE INFORMATION TECHNOLOGY AND ELECTRONICS INDUSTRY IN INDIA.Electronics and Computer Software Export Promotion Council (ESC)-an autonomous organization under the Ministry of Information Technology, Government of India is the nodal agency to promote the Electronics and Computer Software trade with India. It has a membership of 1800 companies divided into the following product groups :- Consumer Electronics and toys of all kinds, Electronic Components, Computer Hardware and Peripherals, Telecommunication Equipment, Electronic Instruments, Medical and other Industrial Electronics, Computer Software, Internet Related Services.Practically all major players in the Indian Electronics export arena are members of ESC. The services provided by ESC include. - Development of export and exploration of possibilities of strategic tie ups, contract manufacturing and other tie ups.Market research studies in major overseas markets on a regular basis to

40

explore foreign markets and identify items of export potential.A constant stream of upgraded information on international marketing trends and products specifications is made available, on a regular basis to Indian electronics and computer software exporters.The information is packaged through Seminars, Workshops andPublications.ESC participates in practically all major electronic exhibitions in the world to help Indian electronics and computer software exporters meet potential importers.Organises buyers/sellers meets, market surveys and sales study missions in overseas markets. We are one of the leading manufacturers of automotive Tyres and Tubes in India. We are part of B.K. Birla Group of companies, one of the biggest business houses in India, having set-up of a very modern plant at Balasore and Orissa, in technical collaboration with Pirelli Ltd., U.K. The plant has an installed capacity of 1 million Tyres & Tubes per annum.Birla Tyres became one of the first tyre manufacturers in the country to be awarded the ISO 9001 certificates. Our tyres are approved by DOT (Dept. of Transportation, USA) and in-metro, Brazil.

Consumer Buying Behaviour

Consumer buying behavior is influenced by the culture and subculture. Habits,

likes and dislikes of the people belonging to a particular culture or subculture

can affect the marketing efforts of a firm to a great extent. The social class to

which the individual belongs tells about the type of products the individual

prefers. Other factors that influence the buying behavior are social factors like

reference group and family, personal factors like the age, life cycle and

occupation, and psychological factors like motivation, perception and attitudes

of the customers.

Buying roles and buying decision constitute consumer’s decision-making

behavior. A customer can adapt various buying roles like initiator, influencer,

decider, buyer, preparer, maintainer and disposer in purchasing and using the

products. Buying behavior helps marketers learn the intensity and degree of

involvement of customers in purchasing the products. Customer buying

behavior is broadly classified into three types. Extensive problem solving

buying behavior is exhibited when a customer buys high involvement,

expensive and less frequently purchased products. Consumers are involved

in routine problem solving decision-making process, when they purchase

routinely purchased, low cost products. Variety seeking behavior is seen

when customers purchase low-involvement products.

41

Customers usually go through five stages in arriving at a purchase decision,

though it might not be so in all the cases. In the first stage, the customer

identifies an unsatisfied need in him. In the second stage, customers collect

the information about the product and available brands through personal

sources, commercial sources, public sources or experiential sources. In the

third stage, the customers evaluate all the alternatives with the help of

available information. In the fourth stage, the customer makes a purchase

decision. And finally in the fifth stage, he experiences post purchase

satisfaction or dissatisfaction.

Post purchase usage and disposal of the product is also of equal importance

to the marketer, as it can save cost and time of producing as well as help in

protecting the environmental equilibrium.

Factors influencing the behaviour of buyers.

Consumer behaviour is affected by many uncontrollable factors. Just think,

what influences you before you buy a product or service? Your friends, your

upbringing, your culture, the media, a role model or influences from certain

groups?

Culture is one factor that influences behaviour. Simply culture is defined as

our attitudes and beliefs. But how are these attitudes and beliefs developed?

As an individual growing up, a child is influenced by their parents, brothers,

sister and other family member who may teach them what is wrong or right.

They learn about their religion and culture, which helps them develop these

opinions, attitudes and beliefs (AIO). These factors will influence their

purchase behaviour however other factors like groups of friends, or people

they look up to may influence their choices of purchasing a particular product

or service. Reference groups are particular groups of people some people

may look up towards to that have an impact on consumer behaviour. So they

can be simply a band like the Spice Girls or your immediate family members.

Opinion leaders are those people that you look up to because your respect

their views and judgments and these views may influence consumer

42

decisions. So it maybe a friend who works with the IT trade who may

influence your decision on what computer to buy. The economical

environment also has an impact on consumer behaviour; do consumers have

a secure job and a regular income to spend on goods? Marketing and

advertising obviously influence consumers in trying to evoke them to purchase

a particular product or service.

People’s social status will also impact their behaviour. What is their role within

society? Are they Actors? Doctors? Office worker? And mothers and fathers

also? Clearly being parents affects your buying habits depending on the age

of the children, the type of job may mean you need to purchase formal

clothes; the income which is earned has an impact. The lifestyle of someone

who earns £250000 would clearly be different from someone who earns

£25000. Also characters have an influence on buying decision. Whether the

person is extrovert (out going and spends on entertainment) or introvert

(keeps to themselves and purchases via online or mail order) again has an

impact on the types of purchases made.

Types of buying behaviour.

There are four typical types of buying behaviour based on the type of products

that intends to be purchased. Complex buying behaviour is where the

individual purchases a high value brand and seeks a lot of information before

the purchase is made. Habitual buying behaviour is where the individual buys

a product out of habit e.g. a daily newspaper, sugar or salt. Variety seeking

buying behaviour is where the individual likes to shop around and experiment

with different products. So an individual may shop around for different

breakfast cereals because he/she wants variety in the mornings! Dissonance

reducing buying behaviour is when buyer are highly involved with the

purchase of the product, because the purchase is expensive or infrequent.

There is little difference between existing brands an example would be buying

a diamond ring, there is perceived little difference between existing diamond

brand manufacturers.

43

How do customers buy?

Research suggests that customers go through a five-stage decision-making

process in any purchase. This is summarized in the diagram below:

This model is important for anyone making marketing decisions. It forces the

marketer to consider the whole buying process rather than just the purchase

decision (when it may be too late for a business to influence the choice!)

The model implies that customers pass through all stages in every purchase.

However, in more routine purchases, customers often skip or reverse some of

the stages.

The buying process starts with need recognition. At this stage, the buyer

recognizes a problem or need (e.g. I am hungry, we need a new sofa, I have

a headache) or responds to a marketing stimulus (e.g. you pass Starbucks

and are attracted by the aroma of coffee and chocolate muffins).

An “aroused” customer then needs to decide how much information (if any) is

required. If the need is strong and there is a product or service that meets the

44

need close to hand, then a purchase decision is likely to be made there and

then. If not, then the process of information search begins.

A customer can obtain information from several sources:

Personal sources: family, friends, neighbors etc

Commercial sources: advertising; salespeople; retailers; dealers;

packaging; point-of-sale displays

Public sources: newspapers, radio, television, consumer organizations;

specialist magazines

Experiential sources: handling, examining, using the product

The usefulness and influence of these sources of information will vary by

product and by customer. Research suggests that customer’s value and

respect personal sources more than commercial sources (the influence of

“word of mouth”). The challenge for the marketing team is to identify which

information sources are most influential in their target markets. In the

evaluation stage, the customer must choose between the alternative brands,

products

Post-purchase evaluation - Cognitive Dissonance

The final stage is the post-purchase evaluation of the decision. It is common

for customers to experience concerns after making a purchase decision. This

arises from a concept that is known as “cognitive dissonance”. The customer,

having bought a product, may feel that an alternative would have been

preferable. In these circumstances that customer will not repurchase

immediately, but is likely to switch brands next time.

To manage the post-purchase stage, it is the job of the marketing team to

persuade the potential customer that the product will satisfy his or her needs.

Then after having made a purchase, the customer should be encouraged that

he or she has made the right decision.

45

Indian consumer profile

Indian consumers are knowledgeable.

They are tech savvy.

Indian consumers are literate.

Most of the Indian are middle class.

Standard of living improved.

Rational and think in a linear manner.

They can explain their thought and behaviour.

Think in words.

46

3. RESEARCH METHODOLOGY

3.1Title of the study: “Brand and Image”

3.2 Duration of the study:

3.3 Objective of the Study:-

Such a study is part of my curriculum to complete management Studies, I

have to complete this part also. So while taking part in the practical exposure

by joining BIRLA Tyres Limited for six weeks training. I am fulfilling the

objectives of my curriculum.

During this practical exposure of Six Weeks. I have collected some

important information for (about) BIRLA Tyers ltd. at Muzaffarpur. This is

important of management. This increase penetrability in the market. In any

marketing job this forms one of the important tools and therefore to know the

utility of such a tool is definitely one of the important aims of this study.

The main objective of study is to present conclusion and necessary

suggestions regarding consumer awareness relating to BIRLA Tyres.

The purpose of the study is to explore the market of BIRLA Tyres Ltd.

and betterment of its Sale.

The objective of study is to describe the unique characteristics of

BIRLA Tyres in Comparison to others.

To collect the information and their attitude from Tyres customers.

47

To know the awareness level of customers of BIRLA Tyres specially.

To collect their ideas about future purchasing of BIRLA Tyres.

The objective of the study is to develop sound inter personal relation to

get maximum output both customer and producer of BIRLA Tyres.

To know the latest grievance of Customers.

3.4 Scope of the Study

The scope of marketing research can be pointed out by a single word,

"Consumer Preference". It can be termed as the balance wheel as the

marketing system which harmonies the study and demand factors.

Marketing survey has wide scope and covers all aspects of marketing.

Broadly its scope can be classified in the following categories :-

It is concerned with product of BIRLA Tyres.

It is concerned with Sales and Distribution of BIRLA Tyres.

Research on Promotional Policies of BIRLA Tyres

Research on pricing of BIRLA Tyres.

Business Economics Research of BIRLA Tyres

It is concerned with Buying behaviour of BIRLA Tyres.

Last but not the least Brand Image of BIRLA in market

48

3.5 Methodology of the Study

During the entire study, methods were followed which were found to be most important :-

i) Personal Discussion :-

A lot of information on the subject, which were well known to the different departments and branches of the company, were prevalent. Academic went to these depts. And branches together, these information from their respective heads.

ii) Documentary Observations :-

Secondary sources like books, journals published and unpublished materials from different departments of the company were consulted.

iii) Field Observation :-

During the training period I visited Muzaffarpur market being sent by BIRLA Tyres Ltd. Muzaffarpur to observe how the marketing operations were being performed there.

The marketing strategies and operations are closely observed for all these

information I visited retailers dealers and as well as consumers to assess the

present market situation of the product of BIRLA TYRES LTD.

49

3.6Limitation of the Study

In Summer Project this study has some limitations when I joined the company

that time DM was too much busy with his own assignments as it was the

period where market was witnessing a lot dynamic changes like :- (i)

Unusual price increase like 8-10% in last 3 months.

(ii) All of a sudden under load restriction was imposed by the Govt. of

Bihar e.g. Golden Card (which was a govt. authorized taken for

overload) was withdrawn for transporters.

Under these circumstances or critical situations I face difficulties which may

affect my report directly or indirectly.

50

4. FACTS AND FINDING

FindingsAfter taking the feedback of more than 100 customers & analyzing 2156 tires the

study reveals that customers are fond of different brands in different areas. Like, in

Purani chhavni area almost 60% of customers prefer BIRLA tires (especially BT339),

in hanuman areas customers prefer Birla tyres, where in Transport Nagar people

prefer JK & APOLLO. Not only different choices but also having different

experience on different brands. It is found that many customers prefer JK’s

guaranteed tyres such as “JET TRAK 39” and economy class rib tyre “VIKRANT

TRACK KING” for its milage & reliability but it is also true that many other brands

such as “JET MILES”, “JET ACE”, “JET SUPER LUG” do not have a strong place in

customers mind. The study shows that JK’s strong contender is CEAT who’s quality

was appreciated by many. CEAT’s “FM 78” & “HCL SUPER” are very much

preferred. In guaranteed tyres APOLLO’s “FM78” is the main contender of JK.

Incase of normal loaded trucks customers mostly rely on CEAT but in over load

APOLLO & JK are reliable. Certainly MRF has not a good reputation at all. Also for

LUG & Semi Lug segment Chinese tyres such as YELLO SEA & CROSS are also

grabbing a strong foothold in the market.

1. Birla is the market leader followed by APOLLO.

2. VIKRANT TRACK KING of JK is most used/preferred tyre overall.

3. In economy segment JK has Strong hold but premium segment is dominated

by CEAT.

4. JK Tyre is having edge breaking problem

We are manufacturers and exporters of Automotive Tyres, Tubes & Flaps.

Various types of tyres available is given here :

, out of which 5 countries, we are market leaders

51

5. DATA ANALYSIS AND INTERPRETATION

Due to rapid changes in Technology, Competitor and Consumer preferences

a company can not to stick solely with its existing products and services.

Customers want the new and improved product that comes about competitor.

A company may obtain new product development in company's own research

and development. To serve this purpose "BIRLA Tyres" has Research and

development department which develops new products as per the demand of

the market. To improvise this products or services they collects information

from the research person about their competitors products.

BIRLA Tyres is the largest tyre manufacturing company in India. It provides

good tyres to their customers.

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1. Which Brand of Tyres you use in Lug Pattern ?

Company Name No. of Respondents

BIRLA 60

MRF 50

J.K. 35

Ceat 25

Birla 20

Others 10

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2. Which Brand you use in RIB Pattern ?

Company Name No. of Respondents

BIRLA 60

MRF 50

J.K. 35

Ceat 25

Birla 20

Others 10

54

3. In case of BIRLA, rank the following ?

Company Name Ranking Percentage

Quality 1 52%

Mileage 2 25%

Retred ability 3 10%

Claim Settlement 4 8%

Price 5 5%

55

4.In case of other Brand what is the reason for

choosing other brand ?

Reason No. of Respondents

Price Sensitivity 65

Mileage 55

Service (after sale) 45

Credit 35

56

5.Have you heard 2 days "Claim Samadhan" by BIRLA ?

No. of Respondents

yes 150

No 50

57

6.Your Purchase on :

No. of Respondents

Cash 50

Credit 50

Both 100

58

7.Does Company's Dealer help in choosing the Brand

as per your requirement ?

No. of Respondents

Yes 50

No 100

Both 50

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8.Following table shows Market share of different company in Muzaffarpur.

Company Name Sales Tyres %

BIRLA 104 52%

MRF 50 25%

J.K. 20 10%

Ceat 16 8%

Birla 10 5%

Total 200 100%

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6.SWOT Analysis

STRENGTH

Heavy range of products Brand awareness Best promotion by display. Advertisement. Effective margin for delaers. Brand image of radial tyres

WEAKNESS

Lack of co-ordination of the demand put forth by dealers and the supply of appropriate tyres from the plant.

The offerings given by the company are not enough for the business partners to make the market operating rates competitive

The supply of truck radial tyres is not in proportion to the demand

OPPORTUNITIES

Lot of  scope for grabbing chunk of the market share in radial tyres in most of the towns coming under the depo..

With adequate and prompt advertisement and lucrative offers sale of farm tyres can be enhanced  or doubled.

THREATS

Entry of chinese tyres in the region has resulted in awareness for the truck radial tyres and calls for immediate improvement in supply chain.

Inadequacy of supply may result into brand changes by the consumers as the competitors are very aggressive

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7.Conclusion

After conducting six weeks survey at Muzaffarpur I have reached these

conclusion.

BIRLA tyre is the market leader in the LCV&SCV segment followed by

MRF, J.K., Birls, Ceat.

BIRLA Tyres brand XT-7 and Amar are market leader at Muzaffarpur

Urban and Rural Area.

XT-7 is Lug tyres and Amar RIB tyres, Most of the customers are

satisfied with the performance of both tyres.

Appox 70% customers have positive and 30% customers have

negative attitude in support of preference of BIRLA tyre at Muzaffarpur.

Customer's awareness level is better at Muzaffarpur area.

BIRLA tyres is the first tyre company which has launched new scheme

to solve the claim within 2 days.

Most of the customers are unsatisfied with this scheme. Because

dealers do not provide them this type of facility at their disposal.

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8.. Recommendation and suggestion

The suggestions from the consumers to the tyre company are following.

Some consumer are unsatisfied with the price because competitors

product price are less than BIRLA, So company should pay attention in

their mind on price.

Company should provide more mileage of tyres because overloading

has been imposed by the government.

Company should provide credit facility because customer demands this

type of facility.

The problem of BIRLA consumers are lack of adequate promotional

schemes. Dealers don't provide adequate information in the support of

the BIRLA brands. They see their margin of profit alone.

Some schemes should be provided by company. It is good technique

for sales promotions.

Company should give special attention after sales service of their

customers.

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9. APPENDIX

Questionnaire

(1) Name of respondent: ......................................................................

(2) Address : ..............................................................................................

..............................................................................................................

(3) Contact No. : .......................................................................................

(4) How many vehicle you have (LCV/SCV) ?

(a) 1 (b) 2 (c) 3

(d) 4 (e) above 4

(5) Which Brand of tyres you use in Lug Pattern ?

(a) BIRLA (b) MRF (c) J.K.

(d) Ceat (e) Birla (f) Others

(6) Which Brand you use in Rib Pattern ?

(a) BIRLA (b) MRF (c) J.K.

(d) Ceat (e) Birla

(7) In case of BIRLA, rank the following according to priority :-

a) Mileage ............................

b) Price ............................

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c) Quality ............................

d) Retread ability .........................

e) Claim Settlement .....................

(8) In case other brand what is the co region for choosing other brand

a) ................................... b) ......................................

c) ....................................... d) .......................................

(9) Have you heard 2 days "Claim Settlement" by BIRLA.

(a) Yes (b) No

(10) Your Purchase on :

a) Cash b) Credit c) Both

(11) Does Company's Dealer help in choosing the Brand as per your

requirement?

(a) Yes (b) No

(12) In case of not using BIRLA Brand reason for it.

a)

b)

c)

d)

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10. BIBLIOGRAPHY

Marketing Management - Kotler Philip

Statistical Investigation - Gupta B.N.

Monitoring the competition - Leonard. M. Fuld

Consumer behavior and action - Assel Henry

Magazines and Reports

Business World

Business India

Advertising Marketing

www.BIRLAtyres.com