global tires meeting 2012 - 13
TRANSCRIPT
Global Tires Business Strategy Meet & Budget – 2012-13
Unit: Kapico Auto1 India (P) Limited
Presented By: Mr.Jayadevan.S.MCountry Head – Indian Tire Operations
Country Potential
• Indian tire industry is worth US$ 3.2 billion comprises of over forty players in the organized & unorganized sectors.
• Growth trends indicate the Indian tire industry has grown at a CAGR of 11% in terms of volume in last 5 years.
• Indian tire industry is concentrated and the top four companies control 78% of the total revenue.
• Unlike the global market where passenger car tires dominate, in India a majority of the turnover is contributed by commercial vehicle tyre segment.
• The commercial vehicle tires segment account for bulk of the sales at 70% of the industry revenues.
• The PCR segment is growing faster than other segments (CAGR 16%), a drastic shift towards a global structure is not expected in the next 3-5 years.
• The Indian tire industry is two tiered. The Tier-I players account for around 85% of the industry's turnover with a well diversified product-mix and presence in all three major segments of the replacement market, original equipment manufacturers (OEMs) and exports. Tier-II companies are smaller in size, with a focus only on one or two categories of tyres, plus tubes and flaps primarily for the replacement market.
• The Indian tire aftermarket is experiencing significant growth due to a combination of factors such as high vehicle sales across all categories and increasing industrial activity.
• India’s vehicle population has grown at an average of 10.5 percent per annum from 2000 to 2005, which in turn, positively impacted the tire aftermarket.
• Around 90.0 percent of passenger car tires in 2005 were radials, and this is expected to reach 96.0 to 98.0 percent by 2012.
Country Potential – Contd…
Indian Passenger Car Radial/ SUV Tire Market
• Focus Market Category – PCR Tubeless Tires. (Extended Category – PCR Tube type)
• Passenger Cars & Utility Vehicle Total Market Population – > 10 Million (Approx)
• Projected Market Population 2010 – > 14 Million
• Leading Car Brands – Maruti, TATA, Hyundai, Mahindra, Skoda, Mercedes, BMW,
• New Entrants – Renault, Nissan, Volkswagen, Volvo
Tyre Segment Domestic (In Millions) Imports
2006-07 2007-08 (E)
Passenger Car Radial 14.04 16.12
SUV/ Jeep 1.36 1.48
Light Truck 4.66 5.03
Truck & Bus 12.24 13.11
Off the Road 0.12 0.13
Major Brands in India & their Attributes
B/stone Goodyear Michelin Apollo JK Tires MRF
PCR Output 3.6 Mn 1.6 Mn Imports 3.5 Mn 2.3 Mn 2.2 Mn
Target markets All India All India All India All India All India All India
Product quality Excellent Average Excellent Good Average Average
Growth Trend + - + + = =
Networks& Resources
Int’l R&D &3000+dealers
Int’l R&D & Wide Segment
Int. R&D 4500+dealers 2500+dealers 3000+dealers
Brand Image Excellent Good Excellent Good Average Average
Other AttributesF1 & OE Presence
OE PresenceRacing & Int. Brand
RecognitionOE Presence
Racing & OE Presence
Racing & OE Presence
Distribution Strategy
Dealers Distributors Dealers Dealers Dealers Dealers
Strength
Product Performance
Wide Range & Brand Equity
Product Performance
Wide Range & Brand Equity
Product Performance
Wide Range & Brand Equity
Product Performance & Brand
Equity
Brand Equity in SUV & LT Segments
Brand Equity
Weakness Dealer Margins & Competition
Distribution model
of working
Small dealer network
& premium price
Few Product Patterns
Low Riding Comfort
Low Riding Comfort
CEAT, BIRLA & Imported players are not included in the comparison table as their representation in the PCR market is insignificant as compared to other players
Major Brands in India & their Attributes – Contd..
B/stone Goodyear Michelin Apollo JK Tires MRF
Pricing HighestLow & flexuating
Highest Moderate Moderate Moderate
Reputation Excellent Medium High Excellent High High
Brand Awareness Very High Very High High Very High High High
Technology Superior High Superior Medium Medium Medium
Market SegmentsPCR, LTR &
TBRPCR, LTR,
AGRI & OTRPCR, LTR &
TBRPCR, LTR,
TBR & AGRIPCR, LTR,
TBR & AGRI
PCR, LTR, TBR,
AGRI & OTR
Opportunity for NEXEN
Low Dealer Profitability
Uncontrolled over pricing
& distribution
Selective Distribution &
High Price
Low representati
onin UHP & HP
Tires
Low representati
on in UHP & HP
Tires
Low representatio
n in UHP & HP
Tires
ThreatEnd
CustomerAcceptance
No significantthreats
exceptfor price
Rapidly growing
Dealer Network
Well Accepted
Products
Strong Brand
Equity in
Upcountry
Markets
Strong Brand Equity in
Upcountry Markets
Auto1 (Nexen) Market Share
PROJECTED MARKET SHARE
B/stone
Goodyear
Michelin
Apollo
JK Tires MRF
Others
NEXEN
PCR Output3.6
Mn 1.6 Mn Imports
3.5 Mn
2.3 Mn
2.2 Mn
2.5 Mn
Market share 22% 13% 4% 10% 10% 10% 31%
Replacement Market S & W (Excluding 12”)
2.1 Million 23% 15% 7% 18% 14% 12%10.75
% .25%
AUTO1 BRANDS 08-09 AUTO1 BRANDS 09-10
Projected Output 50000 75000
Market Share 2.1% 2.7%
2007-08 Results – A snapshot
0
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
2006-07
2007-08 - Bud
2007-08 - Actual (As on 17.03.2008)
2008-09 - Proj
2006-07 1,481,498 0 1,981,122
2007-08 - Bud 100,000,000 8,333,333 20,500,000
2007-08 - Actual (As on 17.03.2008) 9,077,000 4,850,000 18,385,000
2008-09 - Proj 100,000,000 8,335,000 18,753,750
Sales Receivables Inventory
Brand Contribution In Detail
• Reasons• Reasons
Explain Contribution
Top ContributorsNo. of Months
Stock Total*Non Moving*
No of Months Good
Stock*
Nexen Tires 1.97
Golden Bridge Tires 19.00
Nexen Tubes 52.88
TOTAL 74 0 0.00
• Number of Months Stock = Total Stock / Average Cost of Sales )• Number of Months Good Stock Value = (Total Stock Value – Non-
moving stocks)/average cost of sales last 3 months
* Indicates a required field that must be updated manually. All other fields are
calculated automatically
Brand Contribution Snapshot
NEXEN97%
GOLDENBRIDGE2%
NEXEN TUBES1%
• Goldenbridge tires were available for sale only on the last quarter of the FY07-08• Product leaflets and literature on the products we not available immediately• Price of this new brand is comparatively high when compared to competing
brands• Goldenbridge tires come without warranty
Goldenbridge
Nexen Tubes• Nexen Tubes were added to our offering only on the last quarter of the FY07-08
Sales Analysis – Top 5 Tamilnadu & Andhra
0
1000000
2000000
3000000
4000000
'07-08 '08-09
Car Care Zone Annai Tyres
Shakthi Murugan Kumaran
Anuppar
• Top 5 customers sales projection FY08-09 INR 8.1 mn
0
1000000
2000000
3000000
4000000
'07-08 '08-09
Kochery Sales & Agencies
Prakash Tyre Agencies
Moral Tyre Trades
Sri Rama Tyres
SVK Tyres (Kakinada)
• Top 5 customers sales projection FY08-09 INR 10.2 mn
Sales Analysis – Top5 Gujarat & Maharastra
0
200000
400000
600000
800000
'07-08 '08-09
Kirti Tyres (Surat)
Raj Automobiles (Himatnagar)
Arun Agro (Junagadh)
P Patiala (Jamnagar)
JK Enterprises (Vapi)
0
200000
400000
600000
800000
1000000
1200000
'07-08 '08-09
Khubchand Sagarmal United Tyre Crafts
Qwality Tyres V Rangildas & Co
• Top 5 customers sales projection FY08-09 INR 2.05 mn
• Top 4 customers sales projection FY08-09 INR 3.84 mn
SWOT
Strengths
• Extensive Range of Tires for majority of Indian & Imported car models in the Indian market.
• Excellent product quality & performance attributes
• Wide Selection of patterns
• Tubeless Range
• Directional Tires
• Specific tires for various kind of applications/ preferences
• KAIPL expertise of handling distribution of imported tires in various other international markets.
• KAPIL’s options to add brands from various origins as compared to other Indian manufacturers
• Anytime Stock of unique/ upsizing tires for a majority of car models.
• Commitment to have long term approach with the market channels.
• National level approach in the business of imported tires.
• Clean & Transparent transaction procedures on imports of tires.
• Financial Strength & managements’ perseverance for a long term approach towards the
market.
• Limited financial & operational liability compared to other manufacturers with production
facilities.
Strengths – Contd…
• One of the few Specialist Marketing & Distribution companies in the business of tires in
India.
• Working & In depth knowledge of the team about most of important tire markets in India.
• Auto1’s credentials & experience of having created a successful tire agency model in
Kuwait & UAE.
• Auto1’s excellent contacts with Global tire manufacturers.
• Average experience of field personnel’s experience in their respective territories is more
than 10 years.
• Well maintained and equipped central warehouse in Coimbatore for more than 12000 sq.
ft.
• Ability to offer credit terms to channel partners.
• Sure plans in setting up of satellite warehouses in all the important tire markets in India.
• Dealer prospect of earning high margins on the product compared to established brands
in the market.
• Offer of unconditional warranty on Nexen tires.
• Lean organizational model facilitates quick decision making on immediate and critical
issues.
• Cost advantage with other Indian manufacturers over their fixed costs.
Weakness
• Levy of restrictions & duties on the import item.
• Being a late entrant to the market, knowing the right channel partner &
getting into a rapport with them will take time.
• General impression of the importing tire distributors, are that they are short
term oriented towards the market.
• Brand Power – Lack of brand equity with the target market.
• Inability to enter the market with an exciting approach due high costs of
marketing & branding.
• Lack in control & quick implementation of plans.
• Absence of a professional marketing approach owing to manpower limitations.
• Lesser occurrence of team meetings due to high cost & wide dispersion of
team.
• Limited resources on the distribution support at present
Weakness – Contd…
• Limited knowledge on the few of the markets on the channel options.
• Increased time of the material to reach the destination states due to
unavailability of stocking facilities at present.
• Lack of clarity on interstate transaction procedures & delay in setting it,
cause hurdles in starting up business.
• Limited control on the new product developments to keep inline with
domestic market requirements.
• Limitation on getting immediate supplies for crucial market requirements.
• Lack of service infrastructure.
• Limitations on advertising & promotional intensity & spend.
• Limited scope of control on fixing of selling prices as compared to Indian
manufacturers, due to our agency model.
Opportunities
• Growing Indian automotive market.
• Low Brand Loyalty in replacement markets
• The Indian PCR market is growing faster than the capacity of Indian tire
manufacturers, already all manufacturers running their plants at around 90%
capacity there is very little Indian manufacturers will be able to make up.
• The thrust for expansions from most of the major tire players is more on OTR
manufacturing capabilities and less on PCR manufacturing capacities. Hence,
is expected create an unbalanced demand supply gap in the Indian PCR
market.
• Scope for value addition to the distribution channel through offering of various
international brands.
• Growing car population in India has created the demand for more tire service
providers & thereby a space for a national/ regional level tire retailing concept.
• Potential increase in demand for UHP tires through the entry of international
car brands in India like the BMW, VW, Volvo, Nissan & the various other luxury
car brands.
• Changes in lifestyle of of the population have increased the awareness &
acceptance for high quality imported brands.
• Irregular demand: supply pattern in some markets, due to improper
planning/ lack of transparency of supply chain activities among various
market players.
• Decreasing age of vehicle ownership, creating a market for attractive, sporty
and aggressive style tire requirement among the youth.
• Decreasing profit margins for tire distribution channels due to competition
from the same & other brands.
• It’s relatively easier now to create a market for a known international brand
in India. This is due to the increased exposure of the target Indian customer
with internet & travel thereby learns more about the international scenario.
• Increased acceptance & fitment of tubeless tires over the last couple of
years.
Threats
• Increasing replacement cycle of tires due to better product features &
driving conditions.
• Aggressive marketing approach of the top 5 tire brands in the country.
• Increased influx of imported brands in to the Indian market
• Price increase by our suppliers.
• Potential implementation of mandatory certification procedures for all
imported tires sold in India.
• Potential threat from all competing firms through their efforts to
counter the penetration of Nexen tires.
Product / Import Planning with Movement Analysis
Movement Analysis
BrandsMonth
sApr-07
May-07
Jun-07
Jul-07
Aug-07
Sep-07
O-07
Nov-07
Dec-07
Jan-08
Feb-08
Mar-08 (As
on 18)Total
NEXEN TYRE
Inward
0 0 0 2346 370 422 0 0 3959 0 1171 2581 10,849
Outward
5 92 816 163 99 729 656 934 425 3,919
GB TYRE
Inward
0 0 0 0 0 0 0 0 0159
30 0 1,593
Outward
56 9 12 77
NEXEN TUBES
Inward
0 0 0 0 0 0 0 0 0 0 19010 0 19,010
Outward
228 170 398
Abstract of Import Plan FY 08-09
New product lines suggested for sourcing
Product / Import Planning with Movement Analysis
Sales & Procurement Plan
Brands
Current
Stock +
Pipeline
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Total
SALES PLAN 4000 4150 4500 4500 4750 4750 4500 4250 3750 3500 3375 3975 50000
EXPECTED BRAND MIX ( 7:1:1:1)
NEXEN TYRE 2800 2905 3150 3150 3325 3325 3150 2975 2625 2450 2363 2783 35000
GB TYRES 400 415 450 450 475 475 450 425 375 350 338 398 5000
GOODRIDE 455 490 490 515 515 450 465 415 390 378 438 5000
NEXEN TUBES 4000 4150 4500 4500 4750 4750 4500 4250 3750 3500 3375 3975 50000
IMPORT PLAN
3665 2400 36502075
04850 3650 2400
21900
3635 2400 24001945
091150
NEXEN TYRE 12361 2400 2400 2400 3600 3600 2400 2400 2400 2400 2400 2400 3600 32400
GB TYRE 3516 1250 1250 1250 3750
GOODRIDE 1265 1250 1250 1235 5000
NEXEN TUBE 18612 1715
0 18250 14600 50000
•The figures given against various brands for the respective months denotes the order to placed with the supplier on that month.
•Various factors considered while arriving at the import plan are
•Current Stock levels & Pipeline stocks
•Peak & Lean month requirement
•Delivery Lead time (For Nexen 30-45 days, Goldenbridge & Goodride 30 days & Nexen Tubes 30-45 days)
Product / Import Planning with Movement Analysis
Total Import for FY 08-09: 33x40ft containers & 3x20ft
containers
NEXEN: 27x 40ft containers
Goldenbridge: 3x40ft containers
Goodride: 3x40ft containers
Nexen Tubes: 3x20ft containers
Sales Plan 2008-09 – Key Drivers & Target Achievement Plan
• Feedback awaited from field personnel
Operating Expenses – General Control Measures
• Manpower• Optimum utilization of available man power• There is no scope for cost reduction in this area as per current levels. • KAIPL is already operating with minimum manpower resources during this year.
• Occupancy• Optimum utilisation of available space in the existing warehouse and C&F Premises
• Sales & Distribution• Product distribution cost to be minimised• Maximum utilization of C&F arrangement
• General Admin • Centralized procurement of stationeries• Communication expenses – Maximum utilization of cheap more of communication
• Finance Charges• Collection of outstanding on or before the due date
Advertising & Sales Promotion Activity Planner & Calendar – 2008-09
ACTIVITIES PLANNED IN THE MARKETING PROGRAM• T Shirts/ Shirts to employees with brands & logo• Create a Press Kit• Answering Machine in the office (Nicely recorded voice messages on our activities & offers)• Distribute Auto1 & our dealing brands merchandise (pens, key chains, Mugs, mouse pads)• Ads through fixing of sticker in Taxi & Call Taxi• Maintaining of roadside gardens in prominent locations in all districts of the state• Ads in popular websites• Yellow Pages Ad (National & Local)• Install dealer boards (minimum 30 in each state)• Participate in Trade Shows (list of trade shows for the next year in each state)• Creation of dealer welcome kit• Collect dealer information (Send gifts, cards on their landmark days) (Printing of Greeting
Cards)• Window displays in hospitals on road safety• Road signs/ safety slogans on side of highways in coordinating with traffic police/ highways
department• Displays in hotels, airports• Offer referral purchase discounts to end customers• Useful & Safety information handout
Monthly, Quarterly & Annual Activity Cycles
Monthly Activity Cycle• Press Release/ Articles to newspapers & magazines• Ads in National Magazine• One dealer place promotion in every state• Dealer of the Month - Publish in Newsletter with months activity &
achievements
Quarterly Activity Cycle• Minimum one Tire Check-up Camp in each state• Ads in regional magazines/ newspapers in local language• Ads in national newspapers in English• Newsletter to all dealers & institutional customers• Seminars in every state
• Taxi Operators• Dealers• Automobile Workshops
Annual Activity Cycle• Dealer Meet in every state• Annual Award for dealers in every state & publicize
Marketing Activity – AMJ 2008
Month/ Week FY 08-09
Effort Campaign
ManagerPlace Costs Expected Benefit
Results
April - Week1
April - Week2 Dealer Place Promotion Pats & Shiva TN & AP 10000
April - Week3Dealer Place PromotionTire Checkup Camp TN
Shibu & RajuPats
KL & GJTN
100005000
April - Week4Dealer Place Promotion Seminar TN
Hariharan Pats
MH & KATN
1000020000
Apr/ May - Week1 (28-3)
Ad in Autocar India Hariharan M All India 50000 Awareness on Auto1 Brands
May - Week2Dealer Place Promotion Tire Checkup camp KLSeminar GJ
Pats & ShivaShibuRajesh
TN & APKLGJ
10000500020000
May - Week3Dealer Place PromotionSeminar AP
Shibu & RajuShiva
KL & GJAP
1000020000
May - Week4 Dealer Place Promotion Hariharan MH & KA 10000
May - Week5 Tire Checkup Camp AP Shiva AP 5000
June - Week1Ad in Autocar IndiaSeminar KL
Hariharan MShibu
All India 50000 Awareness on Auto1 Brands
June - Week2Dealer Place Promotion Tire Checkup Camp GJ
Pats & ShivaRajesh
TN & APGJ
100005000
June - Week3 Dealer Place Promotion Shibu & Raju KL & GJ 10000
June - Week4 Dealer Place Promotion Hariharan MH & KA 10000
June/ July - Week1 (30-5)
Ad in Autocar India Hariharan M All India 50000 Awareness on Auto1 Brands
Marketing Activity – JAS 2008
Month/ Week FY 08-09
Effort Campaign
ManagerPlace Costs
Expected Benefit
Results
June/ July - Week1Quarterly Newsletter AMJ
08Hariharan M All India 5000
July - Week2Dealer Place Promotion Tire Checkup Camp KLSeminar GJ
Pats & ShivaShibuRajesh
TN & APKLGJ
100005000
20000
July - Week3Dealer Place PromotionSeminar TN
Shibu & RajuPats
KL & GJTN
1000020000
July - Week4Dealer Place Promotion Tire Checkup Camp TNSeminar KL
HariharanPatsShibu
MH & KATNKL
100005000
20000
July/ Aug - Week1Ad in Autocar IndiaSeminar AP
Hariharan MShiva
All IndiaAP
5000020000
Awareness
August - Week2Dealer Place PromotionTire Checkup Camp GJ
Pats & ShivaRajesh
TN & APGJ
100005000
August - Week3 Dealer Place Promotion Shibu & Raju KL & GJ 10000
August - Week4 Dealer Place Promotion Hariharan MH & KA 10000
August - Week5 Tire Checkup Camp AP Shiva AP 5000
September - Week1 Ad in Autocar India Hariharan M All India 50000 Awareness
September - Week2 Dealer Place Promotion Pats & Shiva TN & AP 10000
September - Week3 Dealer Place Promotion Shibu & Raju KL & GJ 10000
September - Week4 Dealer Place Promotion Hariharan MH & KA 10000
Sept/ October - Week1
Ad in Autocar India Hariharan M All India 50000 Awareness
Marketing Activity – OND 2008Month/ Week FY
08-09Effort
Campaign Manager
Place CostsExpected
BenefitResult
s
Sept/ October - WeekQuarterly News Letter JAS
2008 5000
October - Week2Dealer Place Promotion Seminar KL
Pats & ShivaShibu
TN & APKL
1000020000
October - Week3Dealer Place Promotion Seminar AP
Shibu & RajuShiva
KL & GJAP
1000020000
October - Week4Dealer Place Promotion Seminar GJ
Hariharan Rajesh
MH & KAGJ
1000020000
October - Week5 Tire Checkup Camp GJ Rajesh GJ 5000
November - Week1 Ad in Auto car India Hariharan All India 50000 Awareness
November - Week2Printing of 2009 Calender &
DiaryChris All India
100000
November - Week3Dealer Place Promotion Tire Checkup Camp APSeminar TN
Shibu & RajuShivaPats
KL & GJAPTN
10000500020000
November - Week4 Dealer Place Promotion Hariharan MH & KA 10000
December - Week1 Ad in Autocar India Hariharan All India 50000 Awareness
December - Week2Dealer Place Promotion Tire Checkup Camp KL
Pats & Shiva TN & AP100005000
December - Week3Distribution of 09 Calendar &
DiaryChris 10000
December - Week4Dealer Place Promotion Tire Checkup Camp TN
Hariharan Pats
MH & KATN
100005000
Dec/ January - Week1 Ad in Autocar India Hariharan M All India 50000 Awareness
Marketing Activity – JFM 2008Month/ Week FY 08-09
Effort Campaign
ManagerPlace
Costs
Expected BenefitResul
ts
Dec/ January - Week1
Quarterly News Letter OND 2008
January - Week2
Dealer Place PromotionSeminar GJ
Pats & Shiva TN & AP
January - Week3
Dealer Place Promotion Seminar AP
Shibu & Raju KL & GJ
January - Week4
Dealer Place Promotion Seminar KL
Hariharan MH &
KA
10000
January - Week5
Tire Checkup Camp APSeminar TN
Shiva
February - Week1
Ad in Autocar India Hariharan M All India5000
0Awareness on Auto1
Brands
February - Week2
Dealer Place PromotionTire Checkup Camp KL
Pats & Shiva TN & AP
February - Week3
Dealer Place Promotion Shibu & Raju KL & GJ
February - Week4
Dealer Place Promotion Tire Checkup Camp GJ
Hariharan MH &
KA
10000
March - Week1
Ad in Autocar India Hariharan M All India 500
00
Awareness on Auto1 Brands
March - Week2
Updating of Product Catalogues - All brands
Dealer Place Promotion Pats & Shiva TN & AP
March - Week3
Dealer Place Promotion Tire Checkup Camp TN
Shibu & Raju KL & GJ
March - Week4
Dealer Place Promotion Hariharan MH &
KA
10000
March - Week5
Quarterly Newsletter JFM 2008
Quarterly Marketing Expense• Dealer promotion programs – 90000 (5000 x 18 programs/ Qtr)• Tire Checkup Clinics – 20000 (5000 x 4 clinics/ Qtr)• Seminars – 80000 (20000 x 4 clinics/ Qtr)• Ad in Auto Car – 150000 (50000 x 3 issues/ Qtr)• Other Expenses – 100000 (CtC basis on need)• Quarterly Newsletter - 10000• Giveaways/ Merchandise items – 50000
TOTAL INR. 500000.00/ Qtr
Warehouse Status & Requirements in line to Budget 2008-09
• Coimbatore Warehouse Area – 11400 Sft• Stocking Area – 10000 Sft• Office Area – 480 Sft• Claim Area – 320 Sft• Gangway – 600 Sft
• Maximum Capacity – 11000 PCR & SUV Tires
• Local Delivery Vehicle Required to reach local
dealers & transport agents
• Permanent Loading & Unloading Staff
• C&F Arrangements on Pipeline
• Maharastra – 1000 Sft
• Andrapradesh – 1000 Sft
• Gujarat – 800 Sft
• C&F Arrangements to be initiated in
• Karnataka – 1000 Sft
• Kerala – 800 Sft
• Distributor arrangements to be made in
• Pondy
• Goa
• Chattisgarh
• Orissa
Future requirement to cater 2008-09 stock Levels
Travel Plans / Expenditure – Control Measures
• All Sales staff shall give their annual travel budget.• Annual Travel budget shall be further broken month wise with
place of travel need to be specified• Repetitive travel to one location without any compelling
reasons to be avoided• Travel by air for overnight journey to be avoided • Use of company vehicle wherever possible
Manpower – Status & Needs
Sales Manager Gujarat
DGM - Sales
Sales Manager - Kerala Warehouse Executive
Asst. Manager
CommercialService Engineer
Dy Sales Manager - AP
Dy Sales Manager - TN
Current Manpower
Aspects of Manpower Affecting Business Operations
• Limitations in Manpower Resources
Proposed Manpower Recruitment Plan (Budget 2008-09)
Field Staff• Manager/ Dy. Manager – Maharastra• Manager/ Dy. Manager – Karnataka• Dy. Manager – Tamilnadu (Mr. Pattabi)• Dy. Manager – Chattisgarh
Commercial• Accounts Assistant
Credit Norms, Evaluation Techniques & Post Control Measures
Present Credit Norms
• A stipulated credit period of 30 days is given to all dealers from the date of invoice. In
case of upcountry dealers, grace period equivalent to delivery time – transit period of 7
days for the billing on same state and 14 days for billing to other states.
• Payment Mode: Payment should be preferably by way of pre-signed local cheque in
case of local dealers and by way of Demand Draft in case of upcountry dealers.
• Cheque Returns: A penalty of rupee 500/- or 1% of the cheque value whichever is
higher will be levied in case of cheque return. And payment against cheque return
should be strictly by way of demand draft.
• Cash Discount: Dealers would be eligible for a cash discount of 1.5% on all payments
received with in 3 days in case of local dealers and 7 days in case of up-country dealers
• All appointed dealers will ideally have a Trade Advance (have a bearing on expected
business volume) deposited to KAIPL before start of the business.
• Credit limit for dealers generally fixed equivalent to maximum of 3 times the TAS
amount.
Evaluation Techniques
• No of years in business
• Annual Turnover
• Counter potential
• Dealers reputation in the market
• Brands represented
• Credit History
• Dealer infrastructure
• Financial strength
• No of outlets
Post Control Measures
• Quarterly confirmation of balance
• Acknowledgment of delivery and price by the dealer on the invoice
• Obtaining post dated cheque
• Review of supply to dealers with overdue more than 60 days
• Dealers having 3 or more occurrences of default in payments would be dealt only
on DD
Over Due Receivable Analysis / Recovery / Avoiding Techniques
Date INV Partys' NamePending Amount
30 to 60
days
90 to 120
days
(> 120 days )
Reason Expected Collection
Date
08-09-2007 21
Chequered Flag Tyres & Services 923,005 923005
10-09-2007 25
Chequered Flag Tyres & Services 24,921 24921
18-10-2007 54 MADURA TYRES 20,694 20694
31-10-2007 63 MADURA TYRES 30,634 30634
03-11-2007 66 Tyre Mart 135,074 135074
06-12-2007 74 Tyre Centre 125,186 125186
24-12-2007 91 Tyre Mart 133,420 133420
27-12-2007 98 BHAGYA MARKETING 93,850 93850
29-12-2007 101 BHAGYA MARKETING 27,693 27693
11-01-2008 119 The Covai Tyress 14,684 14684
12-01-2008 121 Tyre Mart 55,898 55898
TOTAL OVERDUE AMOUNT1,585,05
945073
1 165708 968620 Outstanding More than 30 days for local dealer & 45 days for upcountry dealer is
considered as overdue
Gross Margin Improvement Plan - Concept
• Product Mix: Try to sell more the size
which is having maximum margins.
• Adding of more profitable product
lines.
• Having our retail outlets.
• Decreasing the cost of clearing &
forwarding the tyres.
• Negotiating for discounts from the
supplier/ avoiding price increases.
• Possibility of increasing the selling
price.
New Business Opportunities – Conceive, Utilize & Convert
• Feedback awaited from field personnel
New Business Opportunities & Conversions - 2008-09
Sr.
Project Description Value Status Target Date
1
2
3
Issues & Achievements
•Main Bullet one•Main Bullet two
• Sub bullet one• Sub bullet two• Sub bullet three
o Third bullet indento Third bullet indent
•Main Bullet three• Sub bullet one
o Third bullet indent
•Main Bullet one•Main Bullet two
• Sub bullet one• Sub bullet two• Sub bullet three
o Third bullet indento Third bullet indent
•Main Bullet three• Sub bullet one
o Third bullet indent
Issues Achievements
Thank You