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2012-2014
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Acknowledgement
I express my sincere thanks to my project guide Mr. Sandeep Vyas .I sincerely acknowledge
him/her/them for extending their valuable guidance, support for literature, critical reviews of
project and the report and above all the moral support he/she/they had provided to me with
Vinay Khatri
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TABLE OF CONTENTS
TOPIC PG NO.
1. 1.MARKET SEGMANTATION 56
3. 3. CUSTOMER FEEDBACK 59
6. BIBLOGRAPHY 72
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INTRODUCTION
India is an emerging country with huge potential. The domestic economy is now
growing at around 8-9% per annum and India’s importance in global terms is being
reinforced by rapidly rising exports and domestic consumption. At a time when
numbers of a slowdown and overheating in the Indian economy have started gaining
momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the
trillion-dollar (42,00,000 crore) mark.
The automotive industry is at the centre of India’s new global dynamic. The domestic
market expanding rapidly as incomes rise and consumer credit becomes more
widely available. Manufacturer’s product lines are being continually expanded, as is
the local automotive manufacturing base. Expectation are high that India can
develop as a global hub for vehicle manufacturers and as an outsourcing centre that
offers the global automotive industry solution high up the automotive value chain.
The automotive industry in India grew at a computed annual growth rate (CAGR) of
11.5 percent over the past five years, the Economic Survey 2011-12 tabled in
parliament on 2nd July’10 said. The industry has a strong multiplier effect on the
economy due to its deep forward and backward linkages with several key segments
of the economy, a finance ministry statement said. The automobile industry, which
was plagued by the economic downturn amidst a credit crisis, managed a growth of
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0.7 percent in 2011-12 with passenger car sales registering 1.31 percent growth
while the commercial vehicles segment slumped 21.7 percent.
Indian Automobile industry can be divided into three segments i.e. two wheeler, three
wheeler &four wheeler segment. The domestic two-wheeler market is dominated by
Indian as well as foreign players such as Hero Honda, Bajaj Auto, Honda Motors,
TVS Motors, and Suzuki etc. Maruti Udyog and Tata Motors are the leading
passenger car manufacturers in the country. And India is considered as strategic
market by Suzuki, Yamaha, etc. Commercial Vehicle market is catered by players
like EICHER Motors, Ashok Leyland, Volvo, Force Motors, Tata Motors etc.
Key Facts:
• India ranks 12th in the list of the worlds top 15 automakers
• Contributes 5% to the GDP
• Production of four wheelers in India has increased from 9.3 lakh units in 2003-04 to
88 lakh units in 20011-12
• Targeted to be of $ 145 Billion by 2016
• Exports increased from 88,000 units in 2002-03 to 5,80,000 units in 2011-12
Market share
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Market share of Medium and Heavy Commercial Vehicles in India.
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Eicher Motors
Company Overview
Eicher Motors operates in three segments: Commercial Vehicles, Two Wheelers, and
Components of engineering products, as well as in the publication of city map and
travel guides. Its commercial vehicle plant is located at Dhar, MP. The company
manufactures motorcycles at a plant at Thiruvottiyur, TN, promoted under the brand
Royal Enfield. The company’s engineering component plants - located at Gurgaon,
Haryana and Dewas, MP - manufacture gears, gear boxes, and other components
The company is also involved in management consultancy services and customized.
It has a joint venture agreement with Volvo AB. The company has a strong network
of 142 dealers distributed across India. Eicher Motors is present in over 40 countries
across the world. Most of the exports are to South Asia, West Asia, and African
countries
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EICHER
COMPANY PROFILE
Of
EICHER
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AN OVERVIEW
Eicher began its business operations in 1959 with the roll out of India's first
tractor. Today the Eicher Group is a significant player in the Indian automobile
industry with a gross sales turnover of over Rs. 13,700 million in the year
2002-03.
EICHER LIMITED
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EICHER MOTORS LIMITED
Eicher Motors Limited (EML) was incorporated in 1982 and introduced its first
product, the Canter, a 6 ton GVW truck manufactured at its state of the art plant at
Pithampur, Indore in collaboration with Mitsubishi Motors Corporation, Japan, in
1986. The maiden offering soon created a strong customer base for itself.
From a single 6 Ton GVW truck in 1986, our range today extends from 5T to 16T
GVW trucks and the Skyline and Voila range of Buses. All our products can be
offered in BS II compatible options. We also have arguably the best CNG
technology in the world in our CNG Buses. Pioneering the concept of Built Up
vehicles in the country, we make products that consistently deliver high value to our
customers and are increasingly becoming the preferred option for all CV users, not
only in India but overseas too. Eicher CVs today have significant presence in more
than 20 countries across the world.
In India, Eicher Motors has consistently outperformed the industry in terms of
growth and currently holds over 30% market share in the 6T-11T GVW segments.
In the 9T GVW segment, Eicher Motors continues to be the leader with more than
50% market share. Our well-equipped workshops result in faster turnaround of
service. A network of more than 4500 Eicher trained private mechanics, over 133
authorized sales and service centres, and easy availability of genuine parts across
more than 300 authorized spares outlets means less downtime and increased
opportunities for our customers to earn.
Eicher Motors is now poised to further consolidate its position in the CV industry by
entering into the Medium & Heavy Commercial Vehicle segments. Strategic plans
are in place to ensure necessary investments in technology and training to
constantly sharpen our development and manufacturing edge. EML is totally
committed to fulfilling the vision of being one of the top 3 CV manufacturers in the
country by giving customers what they want: vehicles that are safe, fuel efficient,
easy to maintain, enhance driver comfort and in turn productivity. Vehicles that
deliver value by providing low cost of ownership and increased profitability to our
customers.
marketing offices all around the country. The Group has around 950 vendors
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supplying components and sub-assemblies which testify to the strength of the
vendor base. The Group's products are brought to the customer through its network
of around 800 dealers distributed across the length and breadth of the country .
Technological Expertise
EML products are manufactured at the Company's plant in Pithampur, near Indore,
Madhya Pradesh, India. The company has absorbed the technology and has
successfully indigenised the vehicles.
To ensure that we continue to create products that offer unique advantages and
benefits to our customers, Eicher Motors Limited has set up a Product
Development group, consisting of competent engineers. The team has developed
several successful vehicles and variants, an achievement made possible by the
use of the latest Computer Aided Design and Computer Aided Engineering (CAD-
CAE) software like NASTRAN and FEM analysis packages.
Extensive Network
Eicher Motors Limited provides its customers the benefit of an extensive sales and
service network, customised solutions and an efficient cost of ownership.
Our manufacturing capabilities are backed by a sales and service network of over
133 EML authorised sales & service centers and more than 300 authorised spares
outlets.
The three-tier service network consists of:
• Authorised distributors in metros and cities.
• 133 Authorised Service Centre's.
• Over 4500 company trained private mechanics.
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Service highlights:
• Eicher Genuine Spares - available across all Eicher dealerships, service
centres, spares distributors, satellite service outlets and retail outlets.300
authorized spares outlets throughout the country.
Customized Applications
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Eicher vehicles not only prove to be safe but also a profitable business
investment. This is a result of the engineering, maintenance and safety
features built-into each Eicher vehicle. We call this the efficient cost of
ownership of an Eicher vehicle.
Exports
Eicher Motors markets its range of Commercial Vehicles and customized
applications to over 28 countries across the world.
Vehicle Financing
Eicher has arrangements with a number of key Non Banking Financial
Companies and Financial Institutions to help our customers to avail finance
for the purchase of vehicles. Eicher also provides customer finance through
Auto Finance Company, a division of EML.
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EICHER COMMERCIAL VEHICLES
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The Commercial vehicle division was established in 1986 in collaboration with
Mitsubishi Motors Japan and is one of the leading manufacturers of commercial
vehicles in India having capacity of manufacturing 38,000 Commercial vehicles.
The Product range includes 5 ton, 7 ton, 9 ton, 11 ton, 16 ton & 25 ton GVW
categories trucks, tipper, trailers; Bus range includes City buses, School bus, luxury
coach, Intercity CWC, Nova 200; Ready-To-Use application vehicles - Around 85
RTU built vehicles to suit a diverse range of applications.
The manufacturing plant equipped with state-of-art facilities with stringent quality
control norms - practices like Kaizen, Just-in-time, TQM and TQC etc. and State of
the art R&D set up helping the commercial vehicles unit to serve their customers
better.
EICHER’S CV BUSINESS
Eicher is the third largest player in the Indian Commercial Vehicles market:
– It leads in the LCV segment with 27% market share in domestic 5-12T cargo
segment in FY 07.
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– It is gaining momentum in the HCV segment with successful launch of 16T, 25T,
Tipper and Passenger segments and 1.8% domestic cargo market share in FY 07
implying a growth of 32.9% in sales volume over FY 06.
–Strong brand equity, an established Marketing and Distribution Network and cost
competitive R&D and manufacturing base providing a ready platform for foray in
HCV segment.
Eicher – the third largest player in the industry – is well set to leverage its dominant
presence in LCV segment to gain significant market share in the fast growing HCV
Segment
With the introduction of new products and upgrading of existing products across the
range, Eicher poised for higher volumes.
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• CV industry (5T & above) has grown by 25.4% with 355,761 vehicle s sold in FY 07
over last year.
• Strong position in LCV segment with market share of 27% in 5 -12T domestic cargo
segment.
• Absence from Sub 5T category leaves significant room for further expanding the
product portfolio.
• Established track record and Brand Equity, recognized for superior product
quality/specifications.
• Incumbent Brand Equity to facilitate successful foray into lucrative HCV market.
Sales and Marketing Infrastructure
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• Established R&D infrastructure and proven skill set.
The Eicher range of Buses & Chassis is a contemporary offering of superior vehicle
performance with safety features, superior comfort and redefined styling. The range
comprises of:
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Buses
Eicher Offers a wide range of options in the Buses. There are two range of Built up
buses - Skyline & Starline with a seating capacity starting from 16 seater till 65
seater. As per the requirement of the customers, Eicher also offers a wide range of
chassis starting from a 12 seater capacity till the 65 seater Capacity. Eicher buses
are trusted by the customers for the best in class fuel efficiency.
School Buses
Eicher introduced “SKYLINE - The First Safe School Bus” in India, developed in
association with IRTE (Institute of Road Traffic Education) in the year 1996, thereby
pioneering the concept of School Bus. The school bus specific features have now
become a norm in the industry. Apart from being safest the popular Skyline school
bus is now available in enhanced features, superior aesthetics & increased
passenger comfort.
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\
Staff Buses
Eicher Skyline has made staff commutation as comfortable as it can be. Aesthetic
superiority, high passenger comfort & Economical performance has made this bus
class apart. The faith of customers & industry is reflected with the fact that Skyline
Executive was awarded with CV-Apollo Award 2010 for “LCV" Bus of the year.
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City Buses
The latest offering from Eicher - the Rear Engine Semi Low Floor (RESLF) bus has
been developed in line with the guidelines laid down by the Ministry of Urban
Development as applicable to Mass Urban Transportation needs. This offering has
been received with lot of optimism & excitement by various State Transport
Undertakings, City Administrations and Municipal Bodies across India. Eicher also
offers a wide range of products in the Mini, Midi and Heavy buses for City Bus
Deployment. The products have been designed to suit the frequent start-stop duty
cycle of intra city operations.
Trucks
Eicher manufactures a range of Haulage (5 T- 31T), Tipper (8T to 25T), Articulated
Tractor (40 T) and Special Applications trucks.
Eicher Trucks are built to deliver low ‘Total Cost-of-Ownership’. The Eicher haulage
trucks’ range includes the E2 Plus series of 5T-13T Light & Medium Duty Trucks
(LMD) – tagged as “Mileage KaBadshah” and VE Series of Fuel efficient Heavy Duty
Trucks (HD) of 16T-31T. Designed for superior performance with better fuel
economy, higher rated payload and faster turnaround these trucks have low
operating cost and, high reliability leading to higher profits.
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Tipper
Eicher Terra series of 16T & 25T offer enhanced value to customers in areas which
are critical to a tipper operating economics. The USP of Eicher Tippers is their better
uptime and pulling power, stronger aggregates, and the ability to run more number of
trips. Terra tippers offer enhanced benefits which accrues from the results of
extensive research done by the company in the market understanding of the usage
pattern and various duty cycle of its operation. The range makes a significant and
positive effect on the operators’ productivity and profitability by offering better fuel
economy.
Articulated Tractor
Eicher 40.40 (Articulated Tractor) from the VE series is built to “Deliver More!” Fitted
with Cummins Engine of 132.5 Kw, Max Torque of 650 Nm and the ET-80 gear box,
the optimized power and torque benefits come along with the High Fuel Efficiency,
stronger aggregates which offer high reliability and durability. The soft suspended
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Cabin offers higher driving comfort which means faster turnaround and more trips
Special Applications
Eicher produces an efficient range of Special Application trucks which have been
envisioned and developed to suit the specific requirements of:
Special Applications
Eicher produces an efficient range of Special Application Vehicles which are used as
for various applications as Troop Carriers, Garbage Tippers, Water Containers, Mild
Steel Container & Ambulances.
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Eicher Ambulance is a state of art van with all facilities pertaining for an emergency
medical vehicle. Vehicle is equipped with on board equipments not just for safe and
swift transfer of patients but also for providing emergency medical aid.
Troop Carrier
Its about Determination and Conquering the spirit, Eicher vehicles deliver on these.
Water Tanker
Low operating cost, efficient and durable water tankers. Fully built Water Tankers
options available in 3.5 KL, 5KL, 6KL & 9KL
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s
Basic Information
Company Name: VE Commercial Vehicles Ltd. (A Volvo Group and Eicher
Motors joint venture)
Business Type: Manufacturer
Eicher Sells: Gears, Gearbox, Transmission, Agriculture Gearbox,
Planetary Gearbox, Axle, PTO Gearbox, Worm Gearbox
Eicher Buys: forgings, Gear Cutters
Address: S.V.Road
Number of Employees: Above 1000 People
Year Established: 1971
Main Markets: 1. South America 2. Eastern Asia
. 3. Southeast Asia . 4. Africa.
. 5. North America
Total Annual Sales Above US$100 Million
Factory Information
Management Certification: ISO 9001:2008 ISO/TS 16949
Contract Manufacturing: OEM Service Offered Design Service Offered Buyer
Overview
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VE Commercial Vehicles Limited is a 50:50 joint venture between the Volvo Group
(Volvo) and Eicher Motors Limited (EML). It is a partnership that brings together
Global leadership in technology, quality, safety and environmental care, along with
the deep knowledge and understanding of the Indian Commercial Vehicle (CV)
market. VE Commercial Vehicles Ltd. (VECV) owes its inception to the compelling
intent of driving modernization in commercial transportation, in India and other
developing markets.
Key Facts
VE Commercial Vehicles Limited (VECV) is a 50:50 joint venture between the Volvo
Group and Eicher Motors Limited, and is headquartered at New Delhi. This joint
venture came into effect in July 2008.
Volvo Trucks India: Sales and after sales support of Volvo trucks in
India:
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Volvo Trucks in India is synonymous with the mining and the construction industries.
They have been tried and tested for operations in extreme conditions, reliable and
robust performance and maximum productivity. Over the years Volvo Trucks has built
up an elite customer base having over 100 vehicles in their fleet operating at various
mining sites across India. The customers vouch by the high reliability and
productivity and have expanded business operations at a fast pace with quick return
on investments. Being the customer’s best business partner, Volvo Trucks extend
support to customers’ right through the life-cycle of the products with a wide network
of service and parts centres and on site assistance.
Eicher Trucks and Buses (ETB) has a strong presence in the L/MD segment with a
dominant share in the 5T-12T truck segment. Eicher’s 21-69 seater buses have a
growing presence in the LD school bus, staff and route-permit segments. ETB has
also made strong inroads into heavy-duty trucks segment of 16T-40T with their “VE”
series of Fuel Efficient heavy-duty trucks.
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(CNC) and Cleveland Hobbing machines, latest heat treatment facilities and CNC
bore and Cylindrical grinding machines.
VECV has over 3000 employees across its different divisions in India.
Mission
We care for our customers holistically by offering not just trucks and buses, but
also the best service and soft products to enable him to be most profitable;
We work with the driver community to enhance their productivity and overall
working environment;
We ensure a level of quality and innovation that will continue to set standards in the
commercial transportation industry;
Going Forward
VECV aims to emerge as an Industry leader in driving modernization in commercial
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vehicle transportation in India and the developing world by bring about improvement
in transport efficiencies.
In the near course, VECV will strengthen each of its product brands as leaders in
their respective segment through innovative products and expansion of its existing
network spanning the geographical expanse of the country.
Company description
VE Commercial Vehicles Limited owes its inception to the compelling intent of driving
modernization in commercial transportation, in India and other developing markets.
As a 5050 joint venture between the Volvo Group (Volvo) and Eicher Motors Limited
(EML), VE Commercial Vehicles (VECV) incorporates unique abilities to be able to
do so. The organization brings together global leadership in technology along with
deep knowledge and experience of the Indian commercial vehicle (CV) market.
VECVs portfolio of commercial vehicles includes two product brands with absolutely
different market positions yet complementing segment synergies. Eicher Trucks &
Buses have a wide offering in the mass market, 5T40T range while Volvo Trucks
command a strong presence in the premium, high-performance, heavy duty
segments from 25T49T. With a formidable presence in the existing light and medium
duty segments, VECVs main focus is on increasing the penetration and market
share of its heavy duty products. Thus, its investments in design, development,
manufacturing, systems, distribution and services are largely oriented towards
creating a stronger position in the heavy duty market.
VECV is going all-out to gear itself in becoming a proactive solutions and service
provider meeting all customer needs. This it will do by strengthening each of its
product brands as leaders in their respective segments. In the near course, VECV
will offer an even more innovative line-up of technologically advanced and
ergonomically aesthetic products. Volvos widespread distribution network will
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facilitate the export of these products to countries world over and will help VECV
bolster its presence in more than 26 countries to where it currently exports. With an
improved thrust on retail network development and after sales service, VECV will
soon come to be recognized as a lean organization capable of setting new
benchmarks in response times.
It is important for VECV, that its growth must also have a positive influence on the
industry it serves; ensuring that the industry becomes more efficient, environment
friendly, offers safer products and manufactures products that are driver friendly. And
this dictum of being the differentiator not only reflects in VECVs approach in the
market place but also in its internal workplace moving it to becoming a preferred
employer in the industry.
VE Commercial Vehicles has over 4000 employees with a sales & support network
that spreads across more than 300 points across the country. Companies industrial
base includes an integrated commercial vehicle factory in Pithampur producing
Eicher trucks & buses along with factories in Thane, Gurgoan and Dewas dedicated
to manufacturing gear boxes and gear box assemblies.
VECV is jointly managed by Volvo and EML with shared management and equal
representation rights on the board of Directors. All management positions are
appointed by the board. Mr. Par Ostberg (Chairman, Trucks Asia, Volvo Group) is
VECVs chairperson while Mr. Siddhartha Lal is the Managing Director and CEO.
Eicher Motors Limited comprises of the automotive businesses of the Eicher Group .
The business activities of the company are carried out by its constituent Business
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Units, each covering a product category as described below.
ROYAL ENFIELD
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MARKET MAPPING OF EICHER
MOTORS
Market mapping
Market mapping is used in market segmentation to help companies identify the
target group(s) for segmenting and forms the second step in the segmentation
process. It also has a number of other important applications, such as tracking
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changes in the channels to market, presenting your own company's performance on
these routes to market and illustrating where your sales and marketing resources are
allocated, which can then be compared with how your key competitors allocate their
resources.
You may discover that a lot of the buying decisions are actually so highly influenced
by intermediaries in the map, that those intermediaries effectively 'own' a large
percentage of the buying decisions. Besides being a key step in the segmentation
process, it can be become apparent that two marketing plans will be required. A
'push' plan which is about improving the way we satisfy the benefits sought by those
intermediaries, and a 'pull' plan which is about better addressing the benefits sought
by the 'consuming' end segments.
A slightly cynical example makes the point. Who can doubt that the Consultants and
System Integrators recommendations hold huge sway with the purchase decision of
a CIO/IT Director. Does anybody doubt that that SAP became the ERP system of
choice partly because it was in the interests of the SIs that it did so?
Definition
A definition favoured by some of my colleagues is as follows:
A market map defines the distribution and value added chain between final users
and suppliers, which takes into account the various buying mechanisms found in a
market, including the part played by ‘influencers’.
This is OK, but I believe causes someone new to the segmentation process to
assume a market map is the same as a physical distribution chain, or a value chain.
This can be partly true but is not necessarily the case.
The primary purpose of a market map is to describe the flow and relationship
between Influencers ‘and Decision Makers between suppliers and final users (as
Decision Makers) whilst noting the channels used.
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Market Mapping
To make the best use of your sales and marketing budget, knowing who you are
selling too and how to reach them is critical. Commerce intelligence group research
and define the distribution and value chain between supplier and final user, taking
into account the various buying mechanisms found in a market, including the critical
part played by relationships and 'influencers'.
Our market mapping process allows you to focus attention on key decision makers
within a market, and identify key target market segments. Consequently sales
channels and the key players within channels can be easily identified with the help of
a graphic presentation of a market.
This market map can help deliver key customer and consumer insights, and ensures
you have a full awareness of the total market place and how best to utilize your
resources.
„ 3.External Interviews
„ 5. Strategy Workshop
„ This establishes the starting point for the project by identifying the set of critical
uncertainties and assumptions about the future of the market environment held by
the leadership team and key internal stakeholders Through a series of interviews
and/or a structured workshop, we gather input from questions like
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Ans. Jaipur market have a large number of potential customers. Presence of good
number of educational institutes and transport companies is an proof of its potential.
Educational institutes are the major customers for Buses and transport companies
are for trucks and hence these are the critical sector for the eicher commercial
vehicle.
2. How are these customers evolving their business model?
Ans. Customer are continuously demanding for effective and efficient products
according to their requirement.
3. What kinds of problems do you think these customers are trying to solve with
products and services like yours?
Ans . Current customers of eicher trucks are aspiring for :-
Overloading ability
Solution of frequent maintenance problem
Easy accessibility to spare parts
Workshops in jaipur area.
4. What baseline “minimum acceptable” criteria do you think these customers
use to evaluate potential suppliers and their solutions to these problems?
Ans. Basically a customer looks for the following things in a truck bus or other
applications
Bus
Model
Wheelbase (mm)
Overall Length (mm)
Rear Overhang (mm)
Front Overhang (mm)
Overall width (mm)
Internal height
Steering
Brakes
No. of seats
Type Of Seats
Engine – Type
Engine - Max Power
Engine - Max Torque
Trucks
5. Which attributes do you think will differentiate suppliers from each other and
drive the choice of products and services in the future?
Ans. Some of the Eicher trucks and buses seems better in
1. Mileage 2.Fast Trip 3.Accerlaratin 3.Space in the containers(truck)
4.Average
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The Market Value Process
Market Value Partners help organizations build and sustain competitive market
advantage. Using the Market Value Process we provide organizations with a proven
methodology for rigorous market analysis. This results in a clear and actionable
market strategy.
Market Value Partners believe that to truly create superior shareholder value it is
important for an organization to precisely define and focus on superior value to
customer in chosen market segments.
The Eicher motors "Market Value Process" is further can be used used to
analytically examine its product and services offerings, enabling it to make
critical strategic and tactical marketing decisions that will improve its market
position.
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product(s), non-product(s), and pricing appropriate for chosen market
segments:
1. Focus
2. Map
3. Measure
a company's ability to meet the selected market needs relative to the competition
under various market scenarios.
Developing a market strategy via the "Market Value Process" provides an analytical
approach for measuring market opportunities and challenges. Without this analytical
approach, concepts such as customer value become extremely fuzzy. In contrast,
the visual impact of the 'Market Value Maps' gives an organization a record of their
market value-creation decisions along with valuable market insights.
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A significant amount of effort is be spent in examining the chosen market definitions.
It's not wise to short-change the amount of time spent on creative market
segmentation. All too often organizations keep this effort brief and perfunctory. This
is probably because the imaginative process of defining markets is sometimes
perceived as frustrating. There is sometimes a feeling that organizations are
thrashing and not necessarily getting anywhere. This is deceptive. The reality is that
this is some of the most important "Marketing Work" an organization can do if the
result is a strong and creative market segmentation that leads to successful
marketing program direction and subsequent market share gain.
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your plan never ends up on the bookshelf. These scenarios enable an organization
to think about how the price, product, and non-product sensitivities in the chosen
markets may potentially evolve.
In coming up with market scenarios, the organization should first determine the
greatest uncertainty that the market faces (whether competitive or environmental).
Often the greatest uncertainty is the future "quality-sensitivity" of the market (i.e. the
slope of the 'market wants' line - please see the charts attached below as reference).
The organization then needs to identify the drivers of this uncertainty. In the case of
the quality sensitive market, the driver is the timing, source, and magnitude of the
next major breakthrough that improves the innovating company's market share.
Demand drivers
Freight outlook- CV sales have a direct correlation with the state of the freight
industry, with growth in CV sales (MHCV trucks) closely tracking increase in freight
movements. Strong economic activity in the country, especially in sectors like
cement, mining, steel production, automobiles, consumer durables, food processing
and food grain production, leads to increased demand for freight movement by road.
Freight rates and fuel price- Truck operators’ profitability is most sensitive to freight
rates and fuel prices (60-65% of the total cost). With other things remaining constant,
operator profit before depreciation and tax rises 6.5% with a 1% rise in freight rates
and 3.5% for a 1% decline in fuel prices Policy initiatives- The CV industry has
benefited from regulations like discouraging the use of old, polluting and
Uneconomical vehicles. The Supreme Court ban on overloading has also been very
positive, leading to incremental Volumes in the last two years. Further any
government’s likely policy initiatives like scrapping vehicles more than 15 Years old
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can potentially unleash a huge replacement demand. Further the industry is also
expected to benefit from the proposed phase-out of Central sales Tax by 2010.
Replacement cycle- Replacement cycle for trucks has been shrinking, declining from
about 12 years to nearly seven years now. The proportion of trucks under five years
of age rose from about 34% in FY02 to nearly 45%.
Competition from Indian Railways- Road transport competes with the Indian
Railways (IR) for transportation of all major commodities, with roads having an edge
in transportation of non-bulk commodities owing to point to point delivery with
railways commanding a higher share in transportation of bulk commodities. Over the
years, roads have gained an increasing preference vis-à-vis the railways and the
share of road transport currently stands at about 65%.Demand supply scenario- The
significant part of the demand for new trucks comes from capacity additions by small
fleet operators and first-time users. This along with policy changes like ban on
overloading has led to significant addition in the truck population. Also with easy
availability of finance at low interest rate helped in increase of capacity in the past
five years. But as interest rates are set to increase it might lead to slight dampening
in demand for M&HCV in near future. However, demand is likely to remain healthy
for LCV owing to the rise in demand for small commercial vehicle for providing the
last mile connectivity and the creation of hub and spoke models.
The Market Value Process is used to measure and map how an organization's
customers perceive its quality relative to the competition's quality. Quality is defined
as the precision with which the product meets the customer's product needs. Quality
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is the "basket of needs", product and non-product. We consider both the product and
non-product dimensions of quality in detail. We will work with the extended
management team to measure and map the relative quality an organization offers in
each chosen market.
The process enables an organization to build a strategy for deploying the resources
needed to attain the desired objective by market. To gain share an organization
would typically put in motion an aggressive set of actions to improve its product and
non-product quality. The theory is that improved pricing and improved product quality
will offer customers superior value and delivery higher shareholder value to the
vendor.
RESEARCH METHODOLOGY
Introduction
Before undertaking a study, it is useful to plan how it would be done. This involves
designing the research work and its methodology. Research methodology is a
systematic way for solving any research problem. It may be understood as a science
of studying how research is done scientifically. Research methodology has many
dimension and the research methods are an integral part of it. The usefulness of the
output will depend upon how the research has been designed and implemented at
each strong of its process. The project is related to the determination of financial
analysis for the company. The co. comprises many divisions all over India. On the
basis of need for individual division, the financial analysis for the entire organization
is determined.
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Research design
The research design is a plan of the proposed research work on the market ground
of Eicher Motors . It is the way through which the stated research objectives can be
achieved. It is a blueprint for the collection, measurement and analysis of the data
that are collected from the market. It means it involves the data collection method,
the specific research instrument and the sampling plan that would be used for the
purpose of market mapping of Eicher motors.
There are various methods for the collection of data. However, for the selection of
any method, the following factors are considered.
Time element
Accuracy required
Availability of data
Primary data
Secondary data
Primary data are those which are collected for the first time from the Jaipur market .
This happens to be original in character.
Secondary data are those that have already been collected and analyzed by
someone else. The data used in the report is collected from internet, magazines..
For this study I had used primary and secondary data available from the company
and various divisions and websites.
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Research Objective
Competitors
Tata Motors -Based in Mumbai, India, Tata Motors Limited is a part of Tata
Group. It manufactures commercial and passenger vehicles primarily in India.
It offers passenger cars, multi-utility vehicles, and pick-ups; medium and
heavy commercial vehicles, such as rigid trucks, tractor trailers, and tippers;
intermediate, light, and small commercial trucks; buses; and defense related
vehicles. The company, through its subsidiaries, also provide engineering and
automotive products; manufacture of construction equipment; automotive
vehicle components manufacturing and supply chain activities; and provision
of machine tools and factory automation products, as well as offers high-
precision tooling, and plastic and electronic components for automotive and
computer applications. In addition, it provides automotive retailing and
services, as well as financing for the vehicles sold by the company. The
company markets its products in Europe, Africa, the Middle East, south Asia,
south east Asia, and Australia.[25]
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Market share
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levels. It also helps in building strong brand loyalty among customers. In addition the
presence in business such as auto spares, buses, exports and defence helps
companies to weather the cyclist in CV sales.
• Higher steel prices have been a key concern over the last two years. The CV
industry has tackled this both by passing part of the costs through price hikes and
also by optimizing their selling, advertising costs and treasury efficiencies.
• Another concern is a slowdown in the Indian economy. This would lead to lower
investment in infrastructure which in turn will affect the CV demand.
• Higher domestic inflation and increase in fuel prices are other major concerns.
Without a concomitant increase in freight rates increase in fuel price will have a
negative impact on demand for CVs.
Outlook
Although rise in interest rates and fuel price may dampen the growth of the sector in
short run the long-term outlook for the domestic CV industry remains strong. The
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expected continuance of economic growth and investments in infrastructure will help
the sector report robust growth going forward. The entry of new players in the
industry and the significant capacity additions expected are however likely to keep
the competitive pressures high. On the demand side, a combination of tightening
regulatory norms (on emissions and vehicle scrapping) and increasing customer
selectivity is expected to drive a shift towards high tonnage quality products. The top
players in the domestic CV industry have robust financials, supported by strong cash
accruals and a comfortable capital structure. These players are capable of funding
their significant investment plans over the medium term without resorting to any large
borrowings. Moreover, the ongoing capacity expansions are based largely on
outsourcing models, which aim at better sharing of risks with component suppliers
and lower the break-even levels. The significant export drives being made by the
leading CV players are likely to lower the risks arising from concentration on the
domestic market and mitigate the impact of cyclical downturns to an extent.
Market segmentation
1. Target Market survey
2. Customer Feedback
Overview
Jaipur market has a good number of potential customers for the commercial
vehicles. Main players in the field are TATA Motors, Ashok layland, Eicher Motors,
Mahindra. Mainly the customers to whom we met are Transport companies in Jaipur.
We met around 500 customers of commercial vehicles in the market of Jaipur and
collected the primary data regarding Eicher motors to get the main objective of
“market mapping of Eicher motors.
Market Segmentation:
Different Customers have different and specific types of needs and demands in the
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market according to which they acts in the market .Customers need and demand
differs in the sense of sex, age, geographical regions, climatic conditions etc....
For example: - In hilly areas a customer will prefer a bus having powerful engine
rather then having better speed.
During this process we identified the market where we can proceed to survey and
can get valuable information from the target market, so that the facts and figures can
be collected and farther can be used for the marketing purpose.
1. Transport nagar
2. V.K.I Area
3. Muhana Mandi
4. Automobile Nagar
5. Jalupura
6. Chandi ki Taksal
7. Chotti Choppar
8. Sansarchand road
9. Sindhi Camp
10. Durgapura
Market Survey:
In this field we had collected facts and figures of commercial vehicles in the Market
of Jaipur and make conclusion on the basis of this .
Market explanation:
Transport Nagar
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less number of potential customers of Eicher motors. Companies like Ashock
Layland ,Tata motors dominates in this field .According to survey report Eicher
motors lagging behind because of the following reasons:-
Automobile Nagar
V.K.I industrial area has a large and scattered type of pattern of transport
companies. According to the market survey it is a bigger market of heavy commercial
vehicles, especially of trucks. A large number of transport companies locates here
and hence plays an important role in the commercial vehicle market of Jaipur .It
includes road number 1 to 15. According to the survey of market, most of the
transport companies owns the Product of Tata and ashock layland and in future also
they interested in the same .Eicher seems to be at back foot because of two main
common reason among all i.e.
1. Eicher Trucks are less able to bear overloading in comparison to Tata and trucks
of Ashock Layland.
2. Having less number of workshops is the Jaipur area is the major drawback.
Muhana Mandi/Sanganer
The transport companies in the Muhana Madi are situated on the basis of
Mandi market .Sabji Mandi of Muhana market always needed transporters to
transport eatable materials. Muhana Mandi is a market of large and heavy as well as
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small commercial vehicles. There were customers of trucks but less in numbers.
Some transporters had just purchased the trucks and some are still interested in
purchasing.
Other areas
In other areas of Jaipur like Chand pole, Jalupura, sansar chand Road and Badi
Chopper there is a large number of transport companies situated and hence create a
market for commercial vehicle industry. There are hot as well as cold customers to
whom we meet and get the information regarding their transport vehicle.
We collected information regarding the commercial vehicle they owned and vehicle
which they want to buy in the future .we concluded about their reactions and
experiences in the market regarding the commercial vehicles .We come to know that
Tata Motors is in leading role in Jaipur area in trucks and buses. The major reason
behind this success of Tata Motors is customer satisfaction by maintaining quality at
reasonable price.
Customer feedback:-
-Spare parts of Eicher trucks and buses are not easily available
3. Fast Trip, Acceleration and space in containers are the positive points of Eicher
trucks
5. Eicher trucks are seems to be best suitable for caring agricultural equipments and
machineries.
4. Goodwill.
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- Tata is leading in this goodwill factor
5. COST.
6. MAINTENANCE.
Rathore
transport com.
VRL Logistics
New Golden
transport com.
JAIN transport
com.
O9New
Shekhawati
transport com.
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Geetangali
Tours and
Travels
For determining the size and relative share of the market. Such studies provide key
information for determining market growth, competitive positioning and tracking
share of market. The CEO usually wants to know this information. Industry consortia
often commission this type of study.
Directed at identifying who the customers are, who they are not, and why they are or
are not your customers. This is often a descriptive market segmentation and market
share analysis.
Where the customer is along the purchase process. The aggregation of this
information provides information about the diffusion of innovation process for the
market and product as a whole… What are the levels of Awareness–Knowledge–
Intention– Purchase– Repurchase?
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Q.3. Did it met all the expectation that you aspired from the product before
purchasing?.
-Mileage
-Average
-Maintenance
-Speed
-Wheelbase (mm)
-Loading
-Steering
-Brakes
-No. of seats
-Type Of Seats
-Engine – Type
-Engine - Max Power
-Engine - Max Torque
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How does the current product meet customer expectations and what attitudes have
customers formed about the product and/or company? Attitudes and expectations
analysis can be used in a variety of situations such as directing advertising and
improving customer conversion, commitment, and loyalty.
Q.5. Did the Eicher motors product met all your expectations which u aspired before
purchasing it?
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Q.6 Are you satisfied by the product of Eicher motors u purchased
Especially appropriate for the study of shopping goods (and other high priced goods)
because of the magnitude of the decision process for the customers, the long
purchase process (time from need recognition to purchase), and depth of consumer
attitudes formed about the product and/or company.
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Pie chart showing the trust and loyalty relation with the company
Concept test studies are appropriate in the initial screening of new product concepts.
Likes and dislikes about the concept and evaluation of acceptability and likelihood of
purchase are especially useful measures.
Ans.- 1.Workshops
4.Less maintenance
Conjoint analysis studies are implemented primarily for the estimation of demand for
new products. Typically, these products can be described or have been developed in
drawing or concept, but have not yet been developed physically. Conjoint analysis
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allows the manager to develop market share estimates to find which of the
alternative potential products offer the greatest market promise.
Ans.1. Tata motors – 60% 2.Ashock laylend – 20% 3.Eicher Motors - 15%
4. Mahindra – 5%
Products contain bundles of benefits (both tangible and image) that are promised to
the user. The product fulfilment study determines if the expectations created for the
product by advertising, packaging, and the produce appearance are fulfilled when
the product is used.
Q. Are u satisfied with the promised benefits with the eicher products.
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Pie chart showing customer satisfaction with the promised benefits
Test markets are conducted to determine the actual buyer response to a new product
offering. Test market evaluation is most often concerned with evaluation of the
product purchase process, evaluation of the product and marketing materials used in
the test market.
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Pie chart showing the grades given to the Eicher Motors on the basis of
overall satisfaction
Ans. (a) Grade “A” – 10% (b) Grade “B” – 40% (c) Grade “C” – 30%
Brand equity analysis focuses on the measurement of the psychological value that a
brand carries with it. Brand equity is described in the marketing literature as being a
composite of brand awareness, brand quality, brand associations, and brand loyalty.
Each of these concepts can be measured. There is no formal procedure for
combining all items into a single overall “value” or “score” that measures brand
equity.
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Q. Goodwill of Eicher motors in comparison with its competitors?
Pie chart showing the goodwill of eicher motors and its competitors in
the market
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Q. Is your relationship is good with sales department of the eicher motors
4Pie chart showing customer relationship with the Eicher Motore company.
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Figure 5: Pie chart showing the satisfaction level of customers regarding
delivery services.
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BIBILOGRAPHY
Primary Data:-
Eicher Office
Eicher Customer
Educational Institute
Secondary Data:-
1. Eicher broachers
2. Websites:-
www.eicherworld.com
www.wikipedia.com
www.scribed.com
www.mbaguyes.com
www.managementparadise.com
Times of India
Business World
Economics Times
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