1 A PROJECT REPORT ON MARKETING MIX OF CEAT LIMITED (Dealer: Satyam Sales Pvt. Ltd) PREPARED BY PRITESH RADADIYA GUIDED BY Prof. JATIN SETH COLLEGE VIVEKANAND COLLEGE OF COMP. SCIENCE & MGT SUBMITTED TO: SAURASHTRA UNIVERSITY, RAJKOT ACADEMIC YEAR 2013-2014
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1
A
PROJECT REPORT
ON
MARKETING MIX OF CEAT LIMITED
(Dealer: Satyam Sales Pvt. Ltd)
PREPARED BY
PRITESH RADADIYA
GUIDED BY
Prof. JATIN SETH
COLLEGE
VIVEKANAND COLLEGE OF COMP. SCIENCE & MGT
SUBMITTED TO:
SAURASHTRA UNIVERSITY, RAJKOT
ACADEMIC YEAR
2013-2014
2
DECLARATION
I undersigned, Mr.PRITESH RADADIYA student of T.Y.B.B.A. here by declare
that the project work presented in this report is my own work and has been carried
out under the supervision of prof. Jatin sheth, the professor of Geetanjali college.
This work has not been submitted previously to any other university for examination
or any other purpose.
Date:
Place: signature of student,
3
ACKNOWLEDGEMENT
First of all I am thankful to the Satyam sales pvt. ltd of CEAT Limited for giving me
this opportunity.
I should also thanks to Mr. Jatin sheth for his guidance & co-operation in making
this project report. Without his guidance it could not be possible for me to make this
project.
I should also to all those people who have helped me directly or indirectly in making
this project report.
4
PREFACE
B.B.A. is a professional course of management study and management itself is an
art. Art involves the practice, so it is necessary for B.B.A. student to know practically
how the business runs. To fulfill the same purpose, a practical has been entered in
this course, which involves the study of any organization and making complete
report on it. So in now a day, practical knowledge is very important.
The chief objective of practical training is to get an outlook of what we study
theoretically inside the classroom. It also helps to develop the awareness about
business practices among the student.
I have taken up this project report on marketing mix of Ceat tyre.
5
Main INDEX
NO. PARTICULARS
1 General information
2 Marketing department
3 Marketing mix
4 Future plan
5 Mile stone
6 SWOT Analysis
7 My observations
8 Suggestion
9 Conclusion
10 Bibliography
6
GENERAL
INFORMATION
7
INDEX
NO PARTICULAR
1 Introduction to the firm
2 History of the firm
3 Overview
4 Covered area
5 Brand name & team
6 Vision & mission
7 Size &types of the organization
8
INTRODUCTION TO THE FIRM
CEAT Limited is a part of the RPG Goenka group. It is the second largest tyre
manufacturer in the country after MRF. It manufactures over 10 billion tyres every
year & enjoys a major market share in a light truck and truck tyre market.
CEAT Limited offers widest range of tyres to all user segments and manufacture
world class radial for all Indian vehicles including: heavy duty trucks and buses,
Manufacturer makes the goods and sells them to the consumer directly with
no intermediary, such as a wholesaler, agent or retailer. Goods come from the
manufacturer to the user without an intermediary. For example, a farmer may sell
some produce directly to customers. For example, a bakery may sell cakes and pies
directly to customers.
Manufacturer to Retailer to Consumer
Purchases are made by the retailer from the manufacturer and then the retailer
sells the merchandise to the consumer. This channel is used by manufacturers that
specialize in producing shopping goods. For example, clothes, shoes, furniture and
fine china. This merchandise may not be needed immediately and the consumer may
take her time and try on the items before making a buying decision. Manufacturers
that specialize in producing shopping goods prefer this method of distribution.
Manufacturer to Wholesaler to Customer
Consumer’s can buy directly from the wholesaler. The wholesaler breaks
down bulk packages for resale to the consumer. The wholesaler reduces some of the
cost to the consumer such as service cost or sales force cost, which makes the
purchase price cheaper for the consumer. For example, shopping at some of the
warehouse clubs, the customer may have to buy a membership in order to buy
directly from the wholesaler.
53
Manufacturer to Agent to Wholesaler to Retailer to Customer
Distribution that involves more than one intermediary involves an agent
called in to be the middleman and assist with the sale of the goods. An agent receives
a commission from the producer. Agents are useful when goods need to move
quickly into the market soon after the order is placed. For example, a fishery makes
a large catch of seafood; since fish is perishable it must be disposed of quickly. It is
time consuming for the fishery to contact many wholesalers all over the country so
he contacts an agent. The agent distributes the fish to the wholesalers. The
wholesalers sell to retailers and then retailers sell to consumers.
54
CHANNEL OF DISTRIBUTION
The Distribution Channel is the chain of intermediaries, each of them passing on the product or service to another intermediary until it reaches the consumer. The term channel of distribution is used to denote the middle man engaged in moving goods from the place of production to the place of consumption.
CEAT has one of the largest distribution networks for tyre in India. It has divided the Indian sub-continent into 33 regions and has set up a regional office for each region. The distribution channel of CEAT Limited is as under:
Manufacturer
Regional distribution system
Carrying & forwarding agents
Dealers
Retailers
Customers
55
FACTORS AFFECTING TO CHANNEL DECISION
The selection of distribution is affected by many of factors, which play
significant role while choosing the channel for distribution. It may include the
buying pattern of consumer, type of the product is perishable, or auto mobile,
weight and bulk and it also depends on the company's resources.
The main affecting factors are following:
Organization objectives - If company objective is to have mass appeal and rapid
market penetration.
Type of product - Perishable products should have a short distribution channel,
FMCG goods should have a wide reaching, intensive distribution channel.
Nature and extent of market- Distribution to consumer market or industrial
markets would be different channel structures.
Existing channel for comparable product- company may chose its existing
channel of distribution for relative product.
Buying habit of customers- Understanding consumer needs and criteria for
buying
Channel Availability - Channels may not be available
Thus these factors put effect on the selection of channel.
56
FINDINGS
&
ANALYSIS
57
QUESTIONNAIRE
MARKETING MIX OF CEAT TYRE
1 NAME :
2 GENDER: Male Female
3 OCCUPATION:
4 How do you come to know about CEAT TYRE ?
Television From relatives
News paper Other
5 In which of the following vehicle, are you using CEAT TYRE?
Car Tractor
Bike Truck
Auto Rickshaw Others
6 Which type of CEAT TYRE, are you using?
Simple Tyre Radial Tyre
Tubeless Tyre Vertigo Tyre
Secura Tyre
58
7 Which is a major feature you consider to purchase tyre ?
Excellent Very Good Average Poor Very Poor
Quality
Features
Design
Durability
performance
8 What is durability of CEAT TYRE, According to utilization ?
Less than one year
One to five year
Above five year
9 According to You, Rate the price of CEAT TYRE?
Low High
Reasonable Very high
10 Is CEAT TYRE available at your convenient place?
Yes No
11 From where you prefer to purchase CEAT TYRE ?
Company showroom Online
Retailer Other
59
12 According to you, Rate the promotional activity of CEAT TYRE?
Very
Effective
Effective Less
Effective
Not
Effective
Advertising
Offers and Discount
Attitude of Dealer and Staff
13 Suggestion :
60
Q.1 Since how many years, are you using CEAT Tyre?
Aim of question:
The objective of this question is to know the loyalty of
customer towards company’s product.
Findings:
YEAR USER
< 1 year 20
1 to 5 year 62
> 5 year 18
Chart:
Analysis:
Through the above data, we can say that majority people do have
CEAT TYRE for more than 1 year and less than 5 year. There are few
people who use CEAT TYRE for more than 5 year.
20%
62%
18%
Time period
<1 year
1 to 5 year
>5year
61
Q-2 In which of the following vehicle, are you using CEAT Tyre?
Aim of question:
The objective of this question is to know that in which
vehicle, they use CEAT Tyre.
Findings:
VEHICLE USER VEHICLE USER
Car 23 Tractor 7
Bike 55 Truck 3
Auto Rickshaw 4 others 8
Chart:
Analysis:
Out of all sample, majority people use CEAT Tyre in Bike than
in other vehicles. As per research, few people use tyre in truck, auto
rickshaws in tractor.
23%
55%
4% 7%
3%8%
Car
Bike
Auto Rickshaw
Tractor
Truck
Other
62
Q.3 Which type of CEAT Tyre, are you using?
Aim of question:
The objective of this question is to know that what type
of CEAT Tyre, they are use.
Findings:
TYRE USER TYRE USER
Simple 50 Radial 9
Tubeless 20 vetigo 4
secura 17
Chart:
Analysis:
Out of all the sample, majority people use simple tyre in their
vehicles than compare with other tyre. Few people use vertigo tyre in their
vehicles.
50%
20%
17%
9%
4%
Tyre
Simple
Tubeless
Secura
Radial
Vertigo
63
Q.4 According to you, what if life period of CEAT Tyre?
Aim of question:
The aim of this question is to know the life period of
CEAT Tyre as per customer opinion.
Findings:
YEAR
<1 year 11
1to 5 year 53
>5 year 36
Chart:
Analysis:
From the above data we can say that majority people say that life
period of CEAT tyre is more than 5 year. Few people say that life period is
less than 1 year.
11%
53%
36%
Year
<1year
1 to 5 year
>5 year
64
Q.5 According to you, rate the following parameters?
Aim of question:
The aim of this question is to know what is in customer
mind about product quality, features, design, durability and performance.
Findings:
Excellent Very
Good
Average Poor Very
poor
Quality 46 43 11 0 0
Features 21 49 28 2 0
Design 29 43 21 6 1
Durability 28 48 19 3 2
Performance 46 34 10 7 3
Chart:
46
21
29 28
4643
49
43
48
34
11
28
2119
10
02
63
7
0 0 1 2 3
0
10
20
30
40
50
60
Quality Features Design Durability Performance
Excellent Very good Average poor Very poor
65
Analysis:
From the above data, majority people say quality of product is
excellent and some less people say quality of product is very good. While
majority people say features, design and durability of product is very good
and only few people say poor or very poor. Majority people say
performance of the product is excellent.
66
Q.6 According to you, rate the price of CEAT tyre?
Aim of question:
The objective of this question is to know that price of a
product is perfect for the customer or not.
Findings:
PRICE USERS
Low 3
Reasonable 48
High 43
Very high 6
Chart:
Analysis:
From the above information, majority people say the price of
CEAT tyre is reasonable and some less people say price is high. Only few
people say price is very high.
3%
51%
45%
1%
low
reasonable
high
very high
67
Q.7 Is CEAT tyre available at your convenient place?
Aim of question:
The aim of this question is to know that the distribution
channel for product is sufficient and effective to provide the product to the
customer or not.
Findings:
Particular USERS
Yes 79
No 21
Chart:
Analysis:
From the above data, we can say that majority people say that
CEAT tyre is available at their convenient place and some people say that
they do not get CEAT tyre at their convenient place.
79%
21%
yes
no
68
Q.8 According to you, rate the promotional activity of CEAT tyre?
Aim of Question:
The objective of this question is to know that promotional
activity of company like advertising, offer & discount are effective or not.
Findings:
Very
effective
Effective Less
effective
Not effective
Advertising 44 54 2 0
Offer &
discount
17 43 38 2
Attitude of
dealer & staff
35 52 8 5
69
Chart:
Analysis:
From the above information, we can say that majority people say
that advertising is effective and very few people say that it is less effective.
Majority people say that offer and discount is effective but many people say
that it is not effective. Majority people say that attitude of dealer and staff
is effective.
44
17
35
54
43
52
2
38
8
02
5
0
10
20
30
40
50
60
advertising offer & discount attitude of dealer &staff
very effective effective less effective not effective
70
ALL OVER
FINDINGS
71
ALL OVER FINDINGS
In my research, I found many point which are as under,
CEAT tyre is famous in the country.
Life period of CEAT tyre is also high.
Quality, features, design and performance of CEAT is good.
They need to decrease their price because many people find it high.
They also need to improve their distribution channel, so all people get it
easily.
Advertising and attitude of dealer are effective but they need to improve
their promotional scheme.
72
FUTURE PLAN
73
FUTURE PLAN
CEAT plans to set up two plants, one in Maharashtra for specialty tyres
and the other for radial tyres for cars, utility vehicles and trucks at a total capital
outlay of about Rs 900 crore.
Ceat plans Rs250 crore tyre manufacturing plant in Bangladesh.
The firm aims to capture 40% of the projected demand of cross-ply tyres
in the region by 2015. Cross-ply tyres are different from radial or radial-ply tyres, a
newer technology.
All passenger cars in India use radials and commercial vehicles too are moving in
that direction.
Bangladesh imports at least 1.5 million tyres annually. Of this, around
60% come from India and the rest from China, Indonesia, Japan and Thailand.
74
MILE STONE
75
MILE STONE
Awards
CEAT received 'Innovative Franchise Model' Award to CEAT Shoppe by
the Franchising Association of India.
It won 'Excellence in Training' Award of the Asia Pacific HR Congress
Employer Branding Awards 2007 for the India Region.
The company’s manufacturing units have received ISO /TS16949
certification for quality management.
CEAT exports tyres to countries namely USA, Africa, America, Australia
and other parts of Asia. The company has pan-India network of 36 regional
offices, over 3,500 dealers and more than 100 C&F agents. It also provides
after-sales services through its all four divisional offices, assisted by 50
service engineers.
Since 1984, the company conducts an R&D activity that focuses on
providing customer a high-end product.
76
SWOT ANALYSIS
77
SWOT ANALYSIS
Strength
Establish brand name.
Extensive distribution network
Research & development initiation
Weakness
Cost pressures
Lack of focus
Pricing pressure
Opportunities
Economic growth
Global sourcing of raw materials
Improvement in road transport & infrastructure
Increase in demand of radials especially for MHCV, LCVs
Threat
Increasing prices of natural rubber
Cheaper imports
Increasing crude of prices
Ban on overloading of vehicles
78
79
INDEX
SR.NO TOPICS
1. Atmosphere
2. Pricing structure
80
ATMOSPHERE
CEAT tyre is unique unit in itself. Today in tyre industry the firms
believes that to give standard quality at reasonable prices. I feel glad that I have
been the part of it for few days.
The unit is well equipped with a latest technology and modern machinery
and equipments.
Self discipline is followed by employee.
As it is weighing industry accuracy plays very important role because it
affects the quantity of products. The unit was kept very accurate capacity.
The staff and workers were well organized and co-operative.
I sincerely, wish CEAT tyre all the best for future and hope that it
succeeds all the goals that it has set for itself.
81
PRICING STRUCTURE
Price is only element in marketing mix that creates sales revenue for
the company. Pricing is a very critical decision in marketing management. The
primary objective of the firm, i.e. to earn a profit very much depends upon the
correct price decision.
We have to consider two factors, which almost effect to the cost of
production. That factors affect to the price directly or indirectly.
Today, most sellers set one price for all buyers. Yet, many
companies do not handle pricing well. There are number of factors which
affect the pricing policy of the company. If the entrepreneur would not give
much importance these factors, he may not be able to survive in the
consumer’s markets. The factors affecting the pricing policy can be broadly
deviled into two categories.
Internal factors which include the company’s marketing objectives,
marketing – mix strategy, costs & organization etc.
External factors which include the nature of the market & demand,
competition and other environmental elements.
82
CONCLUSION
83
CONCLUSION
During this marketing research, I have learnt lot of thing. It was really a
great experience, while doing project report on Ceat tyre, how to explain them to fill
up questions and what kind of complains are raised by customers during marketing
research. This task is learning through only practical study.
It was really a nice experience to do project on CEAT tyre and work with
Jivrajani motor stores staff that is really good and open minded.
In my report I have research on “marketing mix of CEAT TYRE” & find
hypothesis. And also proved following hypothesis.
H0: “marketing mix is effective”
84
SUGGESTION
85
SUGGESTION
The price of CEAT tyre is high compare with its competitor. So they
should decrease their price.
They should improve their distribution channel so all people get its
product easily.
They should also increase their promotional activity to attract more
people to use product.
They should also increase after sales service to give more satisfaction