Dissertation ON SALES AND DISTRIBUTION SYSTEM AT SUBMITTED TO SUBMITTED BY MR. ADARSH ARORA AFZAL LODHI Faculty Guide B.Com (H) Enr. No.A3104608040
Oct 25, 2014
Dissertation
ON
SALES AND DISTRIBUTION SYSTEM AT
SUBMITTED TO SUBMITTED BY
MR. ADARSH ARORA AFZAL LODHIFaculty Guide B.Com (H)
Enr. No.A3104608040
AMITY COLLEGE OF COMMERCE & FINANCE AMITY UNIVERSITY, UTTAR PRADESH
ACKNOWLEDGEMENT
I acknowledge the sincere assistance provided to me from several rather
unexpected quarters during the course of execution of this study. It would be a
mammoth task to place on record my gratitude to each and every one of them but a
whole hearted attempt would be made nevertheless, least I be branded ungrateful.
I am very thankful to Mr. AdarshArora, Faculty Guide, ACCF, Amity
University, Noida, U.P. for her valuable guidance and support at all time.
AFZAL LODHI
EXECUTIVE SUMMARY
The automotive industry is an extremely reliable indicator of
economic growth; quite obviously, its growth boosts the economy’s
performance.
In this report we study how two big players in the Indian automotive
sector, namely TATA Motors and Hyundai Motors India manage their
sales and distribution system, the pace of growth we had mentioned earlier
led us to select this sector and these companies as they are among the
best performers.
While one company was a truck manufacturer until the early nineties
and the other a late entrant in the mid nineties as a subsidiary of a Korean
Industrial conglomerate. We felt there would be a big diversity between
both these companies in the distribution and sales, diversity in the form of
models and structures.
Part A of the project is data collated from mainly secondary sources
but it serves as the groundwork, giving the reader a good idea of the
company we are studying. Part B has all the data and findings we have
collected on the field, we have interviewed dealers of both these
companies and also company sources. We had circulated questionnaires
To understand the system better and also get an idea of what all the
respondents thought of the system.
We have given certain recommendations based on the data we have
assimilated and also the conclusions have been based on the same.
Contents:
Title:
1. Executive Summary
2. Methodology
a) Sector and Players
b) Information Sources
c) Data Collection Tools
d) Limitations
3. Company Background
1. Brief History
2. Year of Establishment
3. Turnover and other financials
4. Product Mix
5. Market Share
6. Area of operation
4. Findings
5. Data Analysis
6. Conclusion
7. Recommendations
8. Annexure
9. Bibliography
Methodology
A Sector & Players
The sector that we chose for the project is the Automobile sector.
We chose this particular sector because the India automobile
sector has seen a tremendous growth rate over the past few years. The
investors have gained confidence over the years in the Indian automobile
market especially after the process of globalization and reforms in the
economy is firmly on track.
Another reason for choosing this sector was that it covers all the 3
aspects i.e. Distribution network, Service network and Sales functioning.
The players (companies) chosen for study are Hyundai Motors
and TATA Motors. Both the companies are leaders in the market and both
are renowned for making quality cars.
We have done an in depth study of the distribution networks the
service networks and the sales functions.
B Information sources
Primary sources
The primary source of information has been the dealers of both the
companies. They have provided us all data of the distribution, sales and
after sales network in their capacity as channel partners of the concerned
companies.
Secondary sources
Various sources such as company URLs, Internet, magazines and relevant
journals have been used. All information retrieved from such sources has
been appropriately classified in the bibliography.
C Data collection tools
The two tools we have used for data collection in this report are:
a: Discussion guidelines
b: questionnaires
Samples of both these can be found in the annexure
D: Limitations
Some information was not provided to us by the company citing it as
confidential. Like how much profit margin they keep.
Time constraint
Most interviews with the company sources have been quite short, limiting
the information we could gather due to the demands on their time.
Company Background
A) History
Hyundai Motor India Ltd. was established in 1996, and is a
subsidiary of the giant South Korean multi national, the Hyundai Motor
Company. It is Korea's top automobile manufacturer, with it sales revenue
touching 8.24 billion in 1997. The Santro is steadily capturing the Indian
market, and giving a strong competition to its rivals in the same segment.
It's success story is an example of a profitable Indian - Korean partnership
where Indian skills and workmanship combine with Korean design and
technology to produce one of the best cars.
The Hyundai Santro has been designed and developed in India at the
integrated auto-manufacturing unit at Irrungattukotai near Chennai. This
plant is capable of producing 1, 20,000 cars and 1, 30,000 engine and
transmission systems annually. It also has in built facilities for the
manufacture of critical components. It is planned to invest another $3
billion in this facility by the year 2011.
The Company has set up more than 70 dealer workshops that are
equipped with the latest technology, machinery, and international quality
press, body and paint shops, across the country, thereby providing a one-
stop shop for a Hyundai customer. Hyundai also has a fleet of 78
emergency road service cars - specially equipped Santro that can provide
emergency service to all its customers anytime, anywhere.
:
TATA Motors Ltd is subsidiary of TATA Sons, the holding company of the
TATA Group, the oldest and among the largest industrial conglomerates of
India.
Established in 1945, TATA Motors entered into collaboration with Daimler
Benz of Germany in 1954 to manufacture commercial vehicles. The
collaboration ended in1969.
The company until the nineties was a player only in the commercial
vehicles segment. In the early nineties the company entered the
passenger car market with the TATA Estate and the Sierra, at the same
time the company reentered into an agreement with Daimler Chrysler for
setting up a JV for Mercedes Benz in India.
The tie with Mercedes ended in the mid nineties and the company started
investing in the development of an indigenous car for the mass. Named the
Indica the car was launched 1998; this car was a totally indigenous product
and also the first in the history of the Indian automotive Industry.
In between the company also introduced the TATA SUMO in the utility
vehicle segment; the product went on to be a big success and became the
leader in the segment.
Around the same time the Indica was introduced the company also
introduced the TATA Safari, a SUV which enjoys enormous prestige in the
market today.
The most recent product of the company was the sedan TATA Indigo
which was based on the Indica platform. This product is a bestseller even
after one year of it’s presence in the now extremely competitive Indian
automotive industry.
The company has also developed numerous concept cars such as the
TATA Aria and the Marina.
The company today exports the Indica to countries across the world and
the most notable being the agreement with ROVER U.K for 5,00,000 cars
which are today being sold as the City Rover in the U.K.
The Company has spread its manufacturing facilities across India by
setting up plants at Jamshedpur, Pune and Lucknow.
This is coupled with a nation-wide sales, service and spare parts network.
The Company enjoys a significant demand in export markets like Europe,
Australia, South East Asia, Middle East and Africa. The Company's
vehicles are seen in all the continents.
B) Year of Establishment:
Hyundai Motors
India Ltd.
1996
TATA Motors
Ltd.
1945
C) Financials :
Particulars TATA Motors Hyundai
Turnover* Rs. 1549 Cr Rs 2310 Cr
The turnover for TATA is only for its passenger car unit.
* Source: India Info line & India Car (URLs).
D) Product Mix
All the above cars are a product of Hyundai Motors and are available in the
market.
Indica Indigo
Safari Sumo
All the above cars are a product of TATA motors and are available in the
market.
E) Market Share
TATA Hyundai
B segment 18% 30%
C segment 17% 15%
MUV & SUV 28% 3%
F) Area of operation
Company North East West South
1. TATA motors
2. Hyundai motors
Findings
Distribution structure for Hyundai Motors
Factory/Plant
C&FA C&FA
Dealers
Dealers
Dealers
Dealers
Dealers
Dealers
Distribution structure of TATA Motors
TATA motors does not have any C&F agents. The cars are delivered to the
dealers directly by the company owned transportation facility.
Factory/Plant
Dealers Dealers Dealers Dealers Dealers Dealers
Sales structure of Hyundai
MD
President
Executive Director (Marketing &
Sales)
GM(Sales)
Regional ManagerRegional Manager
Regional Manager
Regional Manager
Sales Manager
Sales Executives
(dealers)
Sales Manager
Sales Executives (Dealers)
Sales Manager
Sales Executives (Dealers)
Sales Manager
Sales Executives (Dealers)
Sales Structure for TATA Motors
ChairmanChairman
Passenger Car Business Unit
Passenger Car Business Unit
Business DevelopmentBusiness
Development
VPVP
GMSales (cars)
GMSales (cars)
DGMSales (UV)
DGMSales (UV)
Commercial Vehicle Division
Commercial Vehicle Division
Engineering Research
centre
Engineering Research
centre
GM ServiceGM
Service
DGM Dealer development
& commercial planning
DGM Dealer development
& commercial planning
Regional Manager
South
Regional Manager
South
Regional Manager
West
Regional Manager
West
Regional Manager
East
Regional Manager
East
Regional Manager
North
Regional Manager
North
Dealer Accounts Manager
Dealer Accounts Manager
DealersDealers DealersDealers DealersDealers
Channel Structure for Hyundai Motors India Limited
The distribution system for Hyundai Motors can be broadly divided into two
tiers:
Tier 1:
The cars are shipped from the factory to the dealer direct by the C&FA.
There is no warehousing at this level.
Tier 2:
The cars are transported through train under the RAKE system.
The Hyundai Motors plant is located in Chennai, from where after the
dealer request his order through the order request form. The order is
routed through the regional office to the plant over the company’s ERP
system. Once the allotted car is rolled out, it is stored in the car lot which
has designated areas for each area. The C&FA agent takes over from
there and the cars are loaded in trailers and are transported through road.
However there are two different ways a car is shipped to its required
destination:
1. The conventional Method
2. RAKE Movement.
1. Conventional Method:
The cars are handed over to the C&FA who transports all the cars to the
required destinations. Different C&F agents are contracted for different
regions. The C&FA move all the cars from the factory to the dealers by
trailers.
2. RAKE Movement:
This system is used for the Key regions, namely Delhi and Mumbai. The
Company has constructed a railway terminal within its factory premises
where all the cars required for these markets are loaded onto a separate
train made possible by a contract with Indian Railways. The C&FA for the
market will have his own terminal at the destination where the cars are
unloaded and dispatched to the dealers by trucks.
The logic behind this system is that for these key markets, the volume of
cars required are more than other markets, hence if the cars are to be sent
by truck, it will lead to a shortage of trucks for the other markets. Also the
cost is more viable through such means for such large volumes over long
distances. The company pays for all the transportation costs of the cars.
Financial Terms with Channel partners
Within this network the only channel partners are dealers and C&F agents.
The C&F agents are selected by the company on the basis of their
capacity and ability in transporting the cars and the cost they quote for
their services.
The dealers on the other hand are selected by the company on the basis
of their ability and willingness to invest, their ability to promote sales and
the availability of an appropriate location for the showroom and service
centre on their part.
The company maintains a sincerity deposit of Rs 2.5 lakhs per dealer. This
is to hedge the company’s risks over payment of servicing dues one dealer
owes to another. The other commitment the company expects from the
dealer is setting up of a fully fledged service centre and showroom with
competent personnel.
Since the company does not allow credit on any basis to any dealer for the
stock, the dealers are expected to pay for all cars they order for from the
company and every dealer is expected to maintain a stock of two to three
weeks at any given time of both cars and spares. The required stock is
determined on the basis of the territory the dealer represents. For
example:
In the north region:
A+ Category – Delhi
A Category – Ludhiana/ NOIDA
B Category – Kanpur
C Category – Dehra Dun
All orders are made on an order form which is collected by the company’s
appointed courier agency and the payments are made by the dealers’
banks to the company’s bank ABN AMRO, Chennai through clearing
facilities arranged by the company. This is done in order to remove the
delay in time.
The dealers’ get a return of 3% to 4% per car depending on the model and
variant sold. The return the dealers get on servicing depends on the
amount payable for servicing where the dealer levies a service charge.
The dealers main profits are made on the spare parts they sell.
Sales Targets
The company normally issues targets to all the dealers based on the sales
of the corresponding month of the previous year. The target is also
assigned depending on the regions classified territory.
Due to the company’s export obligations, wherein the Letter of credit is
prepared one month in advance to shipping the cars, the company cannot
possibly default on the shipments. Hence, the target is not based on the
company’s total production but the production apart from the export
obligations.
The production level including exports, for the month once set is divided
between domestic and exports and then a certain target is allotted to each
region. This target though issued to the dealers, is overseen by the
regional sales office.
Order Processing:
Since the plant starts production of a particular car only when a confirmed
order is placed, time is an important element.
The company has an ERP system between all the regional offices and the
plant and the dealer for making the order form and confirming the order will
first have to make the payments for all the cars ordered and then the
regional office will make the necessary transaction over the ERP upon
confirmation of payment from their bank.
Service Network:
All the dealers of the company are equipped with a fully fledged service
centre; however the company also has a number of authorized service
centers in other places, which are operated by the dealers themselves or
by other parties who may not be a dealer.
All spare parts are stored in a warehouse which is operated by the regional
office and all these spare parts are sent from the factory to the service
centers through these warehouses.
At the time of sale the dealer is entitled to Rs 2500 per car as servicing
charges, however if a car sold by one dealer is serviced by another then
the latter is entitled to reimbursement of the amount. This is done through
a reimbursement slip sent to the regional office, which pays it from the
loyalty deposit and later charged upon with other payments.
For Example:
X Hyundai in Delhi sold a Santro to Mr. Shingla who later serviced his car
in Y Hyundai in Kanpur; the servicing charge which X Hyundai had taken
from the customer would be reimbursed to Y Hyundai through the regional
office.
This amount though small, adds up to a lot, for example if a dealer sells
100 cars a month, then he is entitled to Rs 2, 50,000 on this account only.
Hyundai motors also has a 24hours help line number. This facility is
available only in big town at the moment and very less on the highways.
Channel structure for TATA Motors
The distribution network for TATA motors is very simple. There is no C&F
agent involved. After the production of the car the cars are directly
transported to the dealers in the different regions. The transport is done
through TATA itself.
TATA has its manufacturing units in Jamshedpur, Pune and Lucknow.
After the dealer has placed his order to the company through a request
form the cars are allotted to them and loaded in the trailers to be sent off
the dealers.
However here also there are 2 methods of shipping the car.
1. Conventional method
2. By train
1. Conventional method
the cars are loaded onto the trailers from the factory and transported to
different dealers located in the different regions. There are different type of
trailers with capacities to carry 5,7 and 10 cars.
2. By Train
It is very rare that the cars are transported through the trains, if so then
C&F agents are hired for the job. This transportation is done very rarely
and mainly for key regions like Delhi & Mumbai.
This transportation is usually done when there is a high demand in the
market and the transportation by trailers is not able to meet the high
demand of the market.
Financial terms with channel partners
In this network there are no channel partners. The transportation is done
through the company itself and most of the trailers are company owned. If
any C&F agent is required then they are chosen on the basis of their
goodwill and their ability to transport at a pre quoted price.
The dealers are chosen by the company on the basis of their capacity to
invest, experience, existing line of business and most important of all their
reputation in the market. The dealers’ location also is a major factor for
their selection for a TATA dealership.
There is a major misconception that TATA asks for a security deposits
from its dealers. TATA motors do not ask for any security deposit from its
dealers instead they ask them to take a Working Loan from HDFC bank.
This loan amount can vary from dealer to dealer depending on their
location. For a small town like Dehra Dun this loan amount is about 2.5 cr.
The main purpose of this loan is that the dealers can make the payment of
the cars that they take from the company, as the company policy does not
have any credit policy. There is also a benefit in taking this loan. If a dealer
takes this loan then he is charged interest as low as 8% whereas if he
takes a loan from some other bank he is charged as high as 12% to 13 %.
TATA motors have a tie up with HDFC bank exclusively for dealers.
The dealers are expected to keep a stock of two to three weeks at any
given point of time for both spares and cars. The stock is determined on
the basis of the segment a dealer falls into. For example
Category
A upto 1500 cars per annum *
B upto 1200 cars per annum
C upto 900 cars per annum
D upto 600 cars per annum#
* As told to us by the company officials 70% of the dealers fall in the A
category
# As told to us by company officials only 2% to 3% of its dealers fall
in D category.
The dealers get a return of 3% on every car they sell depending upon the
variant sold. These days the company offers the dealers various
promotional schemes for example.
If a dealer sells five petrol Indicas he can win a trip to Bangkok. They also
get sales incentives like on selling a petrol Indica car the dealer gets Rs
1000/- per car and even more on selling a petrol Safari.
The return the dealers get on servicing depends on the amount payable
for servicing where the dealer levies a service charge. Most of the dealer’s
profits are made on selling the spare parts.
Sales Targets
The dealers are normally assigned targets based on their area of operation
and their sales based on the corresponding month of the previous month.
The sales targets are not only assigned keeping in mind the region but
also the festive season and not to forget the financial year. During the
festival season the company assigns little higher targets because this time
of the year is considered very auspicious and people buy cars in this
season. Similarly during Shraad the company assigns low targets to the
dealers as the people don’t buy cars or any form of metal during this time.
In the month of March the company expects the dealers to sell high
volumes because all the allocation of the budget is done in this month and
the company whishes to capitalize on it.
Due to TATA’S export obligation the target is not based on the full
production capacity of the factories.
Service Network
All the dealers are equipped with a fully fledged service center: however
the company has about 450+ service networks which include 152 dealers
and about 300 TATA service centers and TATA service point. The basic
difference between TATA service center and TATA service point is that a
service center can give a guarantee whereas a service point cannot. The
service point is not that well equipped and can only handle emergency
cases like in a highway.
All the spare parts are sent to the dealers from the factories through C&F
agents. The C&F agents are hired only to deliver the spare parts to the
dealers. No C&F agents are involved in other process.
At the time of sale the dealer is entitled to some amount per car as
servicing charges, however if a car sold by one dealer is serviced by
another then the latter is entitled to reimbursement of the amount. This is
done through a reimbursement slip.
TATA motors also have a 24 hour helpline no. This facility is only available
in big towns like Delhi and Mumbai. It is also available in small towns also
but only in a limited area
TATA motors takes good care of its customers by getting a White form a
customer satisfaction form and a sales satisfaction form filled by its
customers. This insures the customer they haven’t made a mistake by
selecting the car.
FINDINGS AND ANALYSIS OF QUESTIONNAIRES
We questioned two dealers each from Hyundai and from TATA. We found little
difference in the distribution system of the two companies.
There are about 134 dealers all over India for Hyundai and about 152
dealers for TATA all over India.
Hyundai has 122 service centres all over India and TATA has about 300
service centres and service points.
Dealers
This graph represents how many cars a dealer sells in a month. As
seen in the graph a Hyundai dealer sells about 120 Santro’s a month
whereas a TATA dealer sells about 90 India’s a month.
This graph represents the sales of Hyundai Accent and TATA Indigo
respectively. As seen in the graph the TATA has a better sale for its Sedan
as compared to that of Hyundai.
On comparing both the companies it was found out that Hyundai sells
more B segment cars than TATA. But TATA sells more of its Indigo’s as
compared to the Hyundai Accent.
This graph represents how much margin a dealer gets in selling a car.
As seen in the graph a Hyundai dealer makes about 3% to 4% per car they
sell whereas a TATA dealer gets about 3%.
There are various other incentives schemes for both the dealers on
achieving the sales targets.
There is no significance difference in the
How are the cars delivered to the dealers?
Both the dealers were asked as to how the cars are delivered to them.
They both said that the cars are delivered to them through trailers. In the
case of TATA most of the Trailers are company owned whereas Hyundai
hires C&F agents who deliver the car to them through Trailers.
These trailers are of different capacities carrying 5, 7 and 10 cars.
Does the company give any Credit policy?
Both the dealers were asked if they get a credit policy from the company to
which both of them refused saying that the company does not give any
credit to them. The cars are dispatched to them only when full payment for
the car is received by the company.
TATA has a tie up with HDFC bank which provides Working Loans to the
dealers with interest rate as low as 8%.
What kind of a Warranty does the company give for the car?
TATA gives a one and a half year warranty to the customer for the car they
sell. Additional one and a half year warranty is also available for additional
Rs 2700.
Hyundai gives a year warranty on each car it sells. There is no additional
warranty available.
How many Free Services are given?
TATA gives 3 free services for each car it sells whereas Hyundai also
gives 3 free services. These free services can be availed only during a set
period of time.
How many sales people do you have?
Each TATA showroom has about 21 sales people on an average. There
are about 15 sales executives, 2 sales managers, 1 receptionist, 1 on Tele
marketing, 1 on documentation and at least 2 have to be in the show room
at any given point of time.
Each Hyundai showroom has about 20 sales people. There is one GM, 2
area managers, 3 finance executives, 8 sales executives and 6 field
agents. Hyundai also has 1 for telemarketing.
How long does it take to service a car?
Both Hyundai and TATA take 1 day to service a car. Usually 80% of the
cars are booked before servicing and only 20% are taken for emergency.
This is almost the case for both the companies.
How do you go about the process of corporate selling?
Hyundai has a special incentive scheme for corporate buyers and fleet
selling. Special sales presentations are made in front of the corporate
buyers. Corporate people have to fill a form and their needs and
requirements are assessed through this form. Depending on their
requirements special incentives are offered to them. These incentives are
in the form of discounts.
Even TATA has special incentive schemes for their corporate buyers. Like
Hyundai they also make special presentations in front of their corporate
buyers offering them huge discounts. TATA has at least one or two sales
people who specially take care of the corporate selling.
Approximately how much do you spend on advertising?
It was found out that both the company and the dealers pay for the
advertising done by the dealers for both the companies. There is no fixed
budget on advertising on the dealer’s behalf but both Hyundai and TATA
dealers spend about one to one and a half lakhs per month. This amount is
equally divided i.e. 50% the company pays and 50% the dealer pays in
TATA but the ratio is different for Hyundai. The company pays about 70%
of the money the dealers spend on advertising.
Does the company offer any incentives on achieving the sales
targets?
Both the companies give incentives on achieving the sales targets.
Hyundai motors offers incentives in the form of Trade Discounts to its
dealers. TATA motors gives holiday packages to the dealers on achieving
the sales targets. They also get Trade discounts from the company. There
are other incentives also like on selling five petrol Indica’s in a month the
dealer gets a holiday package to go to Bangkok and on the sale of each
petrol Indica they get Rs 1000 as incentive.
How many cars do you keep in stock?
Both the dealers maintain almost equal stock of cars. Hyundai dealers are
expected to keep a stock of minimum 2 weeks i.e. if the sell 200 cars in a
month then they are expected to keep a stock of at least 25 cars. Even
TATA dealers are expected to keep a stock of at least 2 to 3 weeks.
Does the dealer perform any other function other than sales?
It is mandatory for both the dealers to have a fully equipped service centre
for after sales services. It was found out from our survey that
approximately 20% to 30% of the dealer’s revenues are earned from sales
and rest 80% to 70% are earned through service.
CONCLUSION
From our research we have found out that there are about 152 dealers for
TATA and about 134 dealers for Hyundai. Hyundai has one manufacturing
unit which is based in Chennai whereas TATA has 3 units, but we also
have to keep in mind that TATA also manufactures commercial vehicles
like trucks and busses.
Tata motors benefits from its widespread dealer network. Being an
indigenous company it has a well oiled mechanism for delivering the car to
its end customer. It also has large number of service centers spread
across the breadth and width of company. the company offers sufficient
incentives to motivates its sales force even foreign trips are given as
incentives.
Tata motors should try to reduce its order processing time as customer
may loose interest if it stretches long. There is a waiting of 10 to 12 days
on Indigo; company should take steps to reduce this time.
In spite of being a foreign company, Hyundai has a well maintained
distribution network and because of this it has a bigger market share in the
B segment category but to further increase its strength it can increase its
dealerships in the smaller cities and towns. It has one of the best service
centers facilities in the industry.
RECOMMENDATIONS
1. Both the companies should try to boost up their order
processing time because it takes them about 4 to 7 days to
deliver a car. The customer loses out interest in that particular
vehicle and opts for a vehicle, which he can take in a day’s
time.
2. Hyundai motors need to set up more service centres all over
the country. The demand for their vehicle is high these days
and is good for them to set a few more service centres for
their customers.
3. Hyundai should concentrate on after sales services. They
need to send frequent reminders to the customer reminding
them to get their cars serviced. This can be done by posting a
letter or giving the customer a call.
4. Compared to Tata, there are a few dealers of Hyundai in allover
country. Keeping in mind the fact that, Hyundai Santro has
emerged a serious competitor for the small segment car, Hyundai
should definitely increase the number of dealers in the country in
order to face competition given by Tata Indica.
5. Usually the dealers buy cars from the company even before
they get orders from the customers and then they are free to
sell to the customers. So in a way there is no direct relation
between the customers and the company but we think that
there has to be some sort of direct relationship between the
two.
6. In case of both the companies (i.e.-Tata & Hyundai) each sales
executive is given a target. If the target is met the employees
gets commission but in case of Tata, the company gives
special offers like international trips to executive with superior
performance. This type of policy should also be adopted by
Hyundai for a better and an efficient work force in the future.
Annexure
Discussion guidelines
Distribution
1. What is the channel structure used by your company?
2. What are the functions performed by the different channel
members?
3. At present how many dealers does the company have?
4. What is the minimum investment required for a dealership?
5. What is the minimum commitment of a dealer?
6. What is the return per car sold?
7. How is the logistics managed?
Sales
1. What is the sales structure of your organization?
2. How do you determine the targets for each territory?
3. Who is responsible for assigning targets?
4. Who is responsible for achieving the sales targets?
Service
1. How long does it take for a car to get serviced?
2. What is the company system for overseeing the after sales function?
3. How are the service recorded?
4. How are authorised service centers handled?
5. Are there any incentives for service network?
QUESTIONNAIRES FOR THE DEALERS
1. How many cars do you sell in a month?
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2. How do you determine your sales mix?
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3. How much return do you get per car sold?
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4. How are the cars delivered to you?
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5. How many sales people go you have?
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6. Does the company give you any credit policy?
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7. What is the action of the complaints?
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8. What is the network for the supply of spares parts?
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9. How do you go about the process of corporate selling?
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10. Does the company offer any incentives on
achieving the sales targets?
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11. Usually how long does it take to service a car?
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12. How long does it take to deliver the car to the
customer?
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13. What kind of a warranty does the company give for
a car?
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14. How many free services does the company give for a car?
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15. Approximately how much do you spend on
advertising?
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BIBLIOGRAPHY
The entire project is the result of our sincere effort. We have taken
the help of library, referring to different books and how can we
forget the net.
1. The library visited :-
A) IIPM, library
B) British library
2. Books Referred :-
a) Marketing Management by Philip Kolter
b) Sales Management by Richard R.Still, Edward W.Cundiff,
Norman A.P. Govoni
3. Websites :-
a) www. Google.com
b) www. India Infoline.Com
c) www.AutoIndia.Com
d) www.CarStreet.com
e) www.OverDrive.Com