PREFACE The project report contains material collected from the study on “Distribution Channel” in J.K Tyres Ltd, Guwhati, as a part of the course curriculum of 3dr BBA; NEHU. As regards to the subject, it can be said that; marketing is an essential element for the proper functioning of the different companies. Without marketing the vital communications between the manufacturer sand the consumers does not exists. And thus the term marketing management is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals. Now, as regards to the topic, it can be said that distribution channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption.
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Transcript
PREFACE
The project report contains material collected from the study on “Distribution Channel” in J.K
Tyres Ltd, Guwhati, as a part of the course curriculum of 3dr BBA; NEHU.
As regards to the subject, it can be said that; marketing is an essential element for the proper
functioning of the different companies. Without marketing the vital communications between
the manufacturer sand the consumers does not exists. And thus the term marketing
management is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods, and services to create exchanges that satisfy individual and
organizational goals.
Now, as regards to the topic, it can be said that distribution channels are sets of interdependent
organizations involved in the process of making a product or service available for use or
consumption.
ACKNOWLEDGEMENT
The project work done by me was not entirely out of my own effort, but also the co-operation
of many useful hands. The work would not have been made possible and so systematic if the
helpful hands would not joined hands with me to conduct the meritious outcome of the
survey.
First of all, I would like to thank the Almighty because nothing could have been possible
without his blessings and divinity.
Next, am very much indebted to our Principal Father V.A Cyraic, my teachers Sir Sanjeev
Hazarika(HOD) Department of Business Administration, Sir Bilrak k Marak. Sir Sendrik A
Sangma and Sir Paul Hrangkhawl for their help and support.
Thirdly, I would like to thank my friends and family members for their constant help in
conducting my project work. Also I would like to acknowledge my thanks to the ex-senior
students whose projects were of great help in preparation of my project
Last but not the least; I would like to thank Mr. Debarikhav Phukan, the sales and service
engineer (truck Radial) for helping me to out in giving the relevant details of the required
topic and thus helping me to prepare my project report efficiently.
Thus, I acknowledge my thanks to all of them, without whom I would have not been able to
carry out my project preparations so successfully.
SWARNIMA TIWARI
CHAPTERS
1. EXECUTIVE SUMMERY
1.1 Introduction
1.2 Importance of the subject
1.3 Reasons for selecting the topic
1.4 Reasons for selecting the company
2. COMPANY PROFILE
2.1 Introduction
2.2 Core values of the organization
2.3 Introduction to the company
2.4 General Information
2.5 Their Plants
2.6 Their vision and Mission
2.7 Organizational Chart
3. HISTORY OF TYRES
3.1 General Information
3.2 Tyre Technology
4. DISTRIBUTION DEPARTMENT OF THE COMPANY
4.1 General Introduction to the department
4.2 Functions of the Department
4.3 Organizational setup
4.4 Pictures of the C&F
5. TOPIC THEORY
5.1 Introduction to the topic
5.2 Characteristics of distribution channel
5.3 Role and Importance of distribution channel
5.4 Functions of distribution channel
5.5 Types or classification of distribution channel
5.6 Major types of intermediaries in distribution channel
5.7 Types of channels in distribution channel
5.8 Factors governing the choice of an intermediary
5.9 The channel policy and strategies
5.10 Some other dimensions of channel management
Page No.
1-2
3-8
9-12
13-14
15-26
6. DISTRIBUTION OF J.K TYRES LTD
5.10 Distribution pattern Of J.K tyres Ltd
5.11 Map showing J.K tyres operation in India
5.12 Their operation in North-East India
6. RESEARCH OBJECTIVE AND METHODOLOGY
6.1 Research objectives
6.2 Research methodology
7. METHODS OF DATA COLLECTION
7.1 Introduction
7.2 Methods of data collection
8. GRAPHICAL REPRESENTATION OF DATA
9. LIMITATIONS
10. CONCLUSION
11. ANNEXURES
12. QUESTIONNAIRE
13. BIBLIOGRAPHY
1. EXECUTIVE SUMMERY
1.1: INTRODUCTION: Marketing Management usually represents all managerial efforts and
functions to operate the marketing concept not only in letters, but also in sprit. It is a concept,
combining the various elements of Marketing and Management.
In the “Marketing concept”, it usually demands customer-oriented marketing plans, programs and
policies so that the market can assure perfect positive correlation between the supply and customers
desires and expectations.
In the “Management concept”, it usually deals in the management cycle of planning, effective
implementation, evaluation and control, feedback and re-planning.
Thus combining the two concepts of Marketing and Management, we get the full concept of the term
Marketing Management, which represents a vital functional area of Business Management efforts for
the flow of goods and services from the producer to the consumers. It has to implement the marketing
strategies, promotions and campaigns. Finally, it must evaluate the effectiveness of each part of
marketing mix and introduce vital modifications to remove discrepancies in the actual execution of
plans, policies, strategies, procedures and programs. The survival and growth of any business depends
upon the profitability, when marketing management becomes a good practitioner of the marketing
concept.
Thus, Marketing Management is an ongoing process dynamic marketing environment. It is the
analysis, planning, implementation, and control of programs designed to creates build and maintain
beneficial exchanges with target buyers for the purpose of achieving organizational objectives. Thus,
Marketing Management involves managing demand which in turn involves managing customer’s
relationship.
1.2 IMPORTANTANCE OF THE SUBJECT: After a brief introduction of the subject, it can be
said that marketing is an ongoing process, comprising of:
Discovering and translating consumer needs and desires into products.
Creating demands for the products and services through promotion and pricing.
Serving the consumer demand through planned physical distribution.
Expanding the market even in the face of keen competition.
Thus, the given important aspects of “Marketing Management” are important tool for
all its major functioning. Without it the process of marketing is not possible and it does not lead to
efficient management in the company. Thus for a company it is very vital to efficiently use all its
resources in meeting the demands of the consumers and also earning a high profit turnover.
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1.3: REASONS FOR SELECTING THE TOPIC: The following are the reasons as to why,
the given topic namely “Distribution Channel” was chosen by me.
1. To know the types of distribution channels in the organization.
2. To know the functioning of the various distribution channels
3. To know that how they act as intermediary between the producer and the consumers.
4. To know that whether they are able to supply the goods to the consumers’ in time or not.
1.4: REASONS FOR SELECTING THE COMPANY: The following are the reasons as to
why J.k Tyres Ltd was Chosen by me.
1. The company is a well known one and has goodwill in the national and international market
also.
2. To know about the operation and distribution pattern of J.K Tyres in North East.
3. To know the market share of J.K. Tyres in Northern Market.
Thus, these were the reasons for selecting the company to carry out the project.
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2. COMPANY PROFILE
2.1: INTRODUCTION TO THE ORGANIZATION: J.K organization owes its name to
late Juggilal Singhania, a dynamic perrsonality with a broad vision. Inspoerd by the cause of
the Swadeshi movement of Mathama Gandhi, and driven by the zeal to set up an Indian
enterprise, Lala Kamlatath Singhania Founded J.K Organization in the 19 th century ushering
in a new industrial era in India.
The process of Industrialzation and diversification was worthily and successfully carried on
by Lala Kamlapath and three illustrious sons-sir padampat, Lala Kailashpat and lala
lakshmipat, aided in no small measure by the late Gopal Krishna son of Sir Padampat.
The advent of JK Organization on the industrial landscape of India almost synchronizes with
the beginning of an era of industrial awareness - an endeavor for self reliance and the setting up of a dynamic Indian industry. This was way back in the middle of the 19th century. And
the rest that followed is history.
2.2: CORE VALUES OF THE ORGNIZATION:
JK Organization has been a forerunner in the economic and
social advancement of India. It always aimed at creating job opportunities for a multitude of countrymen and to provide high quality products. It has striven to make India self reliant by
pioneering the production of a number of industrial and consumer products, by adopting the latest technology as well as
developing its own know-how. It has also undertaken industrial ventures in several other countries.
JK Organization is an association of industrial and commercial companies and charitable trusts. Its member companies,
employing nearly 50,000 persons are engaged in the manufacture of a variety of products and in diverse fields of commerce.
Trusts are devoted to promoting industrial, technical and medical research, education, religious values and providing better living and recreational facilities.
With the spirit of social consciousness uppermost in mind, J.K. Organization is committed to the cause of human advancement.
2.3: INTRODUCTION TO THE COMPANY:J.K Tyre & Industries Ltd is the
flagshipcompany under the umbrella of J.K organization.It has been established in 1977 by
late Jugilal and Kamlapath Singhania. Jk Tyre and Industries is a mega corporate entity that is
emblematic of excellence, diversification and pioneering new technologies. A part of JK
Organization which ranks among the top private groups private groups in India, J.k Tyre and
Industries is committed to self reliance and follows an ethic that views customer satisfaction
as an index of achievement.
Over the years, the company has expanded and diversified its business portfolio. It has
developed into a multi product, multi-location corporate entity comprising of number of
business divisions.
2.4: GENERAL INFORMATION:
Ever since its inception it has been JK Tyre's belief in the value of technological superiority
that has made it grow by leaps and bounds. This division produces and sells tyres and tubes
under the brand name "JK Tyre" for Truck, Buses,
Passenger Cars, Jeeps, Light Commercial
Vehicles, Multi Utility Vehicles and Tractors.
The company pioneered Steel Radial Technology
in India in 1977 and continues to be the industry
leader in the Radial segment in India. JK Tyre is
the only Tyre Manufacturer in the country to
produce high performance 'T' & 'H' -rated steel
radial tyres.
JK Tyre has consciously followed a policy of
continuously modernizing and expanding its tyre
manufacturing facilities to retain its edge in the
market place.
Our customer base covers virtually the entire Original Equipment Manufacturers (OEMs) in
India together with Replacement Market for four wheeler vehicles, Defense and State
Transport Units. Besides India, we have a worldwide customer base in over 45 countries
across all 6 continents.
To keep pace with the market demand as well as technological leadership in Indian market,
J.K. Industries acquired Vibrant Tyres Limited, Mysore in 1997. J.K. Industries and Vibrant
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Tyres Limited are the only tyre companies in India to have received all three ISO 9001, QS
9000 and ISO 14001 certificates. This indeed is a true reflection of our commitment to system
oriented approach. The company has a technical collaboration with M/s Continental AG,
Germany, which is among the top five tyre manufacturers in the world to keep pace with latest
technological developments. To stay at the forefront of technological advancements a state of
art Research & Development Centre, HASETRI, was set up, which remains the nerve centre
for providing cutting edge technology. In a short span of time it has emerged as the 17th
largest tyre manufacturer in the world an achievement in itself.
JK Tyre is a leading radial manufacturer and the first in the world to be awarded the
OS 9000 for multi- location operation. It is also the first tyre manufacturer in the world to get
the ISO 9001 certification for its entire operation.
JK Tyre has consciously followed a policy of continuously modernizing its tyre
manufacturing facilities to retain its edge in the market place.
Also, JK Tyre is the largest exported tyre brand from India. It was awarded the
CAPEXIL’s Highest Exported award for 1997-98 by FIEO. It enjoys prefer premium brand
status in truck Bias market in USA and across many markets in Africa, Middle East and South
East Asia.
Ever since its inception it has been JK Tyre's belief in the value of technological
superiority that has made it grow by leaps and bounds. This division produces and sells tyres
and tubes under the brand name "JK Tyre" for
Truck, Buses, Passenger Cars, Jeeps, Light
Commercial Vehicles, Multi Utility Vehicles and
Tractors.
The company pioneered Steel Radial Technology
in India in 1977 and continues to be the industry
leader in the Radial segment in India. JK Tyre is
the only Tyre Manufacturer in the country to
produce high performance 'T' & 'H' -rated steel
radial tyres.
JK Tyre has consciously followed a policy of
continuously modernizing and expanding its tyre
manufacturing facilities to retain its edge in the
marketplace.
5
Our customer base covers virtually the entire Original Equipment Manufacturers (OEMs) in
India together with Replacement Market for four wheeler vehicles, Defence and State
Transport Units. Besides India, we have a worldwide customer base in over 45 countries
across all 6 continents.
To keep pace with the market demand as well as technological leadership in Indian market,
J.K. Industries acquired Vikrant Tyres Limited, Mysore in 1997. J.K. Industries and Vikrant
Tyres Limited are the only tyre companies in India to
have received all three ISO 9001, QS 9000 and ISO
14001 certificates. This indeed is a true reflection of
our commitment to system oriented approach. The
company has a technical collaboration with M/s Continental AG, Germany, which is among
the top five tyre manufacturers in the world to keep pace with latest technological
developments. To stay at the forefront of technological advancements a state of art Research
& Development Centre, HASETRI, was set up, which remains the nerve centre for providing
cutting edge technology. In a short span of time it has emerged as the 17th largest tyre
manufacturer in the world an achievement in itself.
2.4Their plants:
With three plants located in Rajasthan,
Madhya Pradesh and Karnataka, JK Tyre is
the largest manufacturer of truck and bus tyres
in India. The truck and bus tyres produced
account for nearly 74% of the total tyre
business in India, thus giving JK Tyre an
undisputed position. Additionally, JK Tyre is
the only manufacturer of truck/ bus steel radial
tyres, and the second largest manufacturer of
4-wheeler tyres in the country.
Also, JK Tyre is the largest exported tyre
brand from India. It was awarded the CAPEXIL's Highest Export Award for 1997-97 by
FIEO. It enjoys preferred premium brand status in Truck Bias market in USA and across
many markets in Africa, Middle East and South.
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2.7 JK TYRE VISION AND MISSION:
JK TYRE VISION:
JK TYRE MISSION:
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2.8 ORGANISATIONAL CHART
ORGANISATIONAL CHART OF JK TYRE INDUSTRIES, GUWAHATI :
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Area Manager
Service
Engineer
Sales
Officer (1)
Sales
Officer (1)
Sales
Officer (1))
Sales
Officer (1)
Sales
Officer (1)
(Commercial Staff)
3. HISTORY OF TYRES
3.1 THE HISTORY OF THE TYRE:
The following chronicles the development of the tyre as we know it today. RW Thomson invented and patented the Pneumatic Tyre in 1845. His first design used a number of thin inflated tubes inside a leather cover (illustrated). This design actually had its advantages over later designs. It would take more than one puncture to deflate the whole tyre, and varying the pressures could alter the ride conditions.
It was not until the late nineteenth century, 1888, that John Boyd Dunlop invented the Rubber Pneumatic Tyre. Despite
these technological breakthroughs the solid rubber tyre continued to be the dominant tyre and it was not until 1889 that the pneumatic tyre caught on.
Dunlop first advertised his tyres in December 1888 in the Irish Cyclist, and in May of the following year the Tyre had its first breakthrough. A Belfast Cycle Race was won on pneumatic rubber tyres, and by now the public were starting to take note.
Unfortunately the original tyre had its drawbacks. The inner tube was difficult to get at because the tyre was stuck to the wheel. In 1890 CK Welsh patented the design of a wheel rim and outer cover with inextensible lip. By now we had the basics for today’s tyre. Over the years the tyre has developed into today’s high technology offerings. Two of the most important technical developments include Michelin’s creation of the radial tyre with its vastly superior grip in 1948, and when Dunlop did away with the inner tube on car tyres in 1972.
Time has given the motor industry tyres capable of many different applications. This ranges from High Speed Racing such as Formula One to Heavy Plant Usage on vehicles as large as a house. All tyres deliver a comfortable ride, relative puncture resistance, wear and performance. The importance of a tyre must not be taken for granted. After all a tyre is your vehicles only point of contact with the road.
Several Tyre Manufacturers have developed tyres, and tyre systems that allow a vehicle to continue moving despite a loss of pressure. There are two different approaches:
1. Reinforce tyre sidewall manufacturer of thi8s include: Bridgestone, Continental, Goodyear, Dunlop, and Pirelli.
2. Rubber clip to your rim manufacturers of this include Michelin. All Run flat technology must operate in tandem with tyre pressure warning systems.
1. Reinforced Tyre Sidewall:
The Diagram below shows The Dunlop DSST system for run flat. These tyres can be placed on any rim. The sidewall is reinforced allowing the tyre to support the vehicles weight. The tyre is constructed with new rubber compounds that prevent tyre destruction with excessive flexing. Run Flat Tyres allow a vehicle with complete loss of tyre pressure to handle effectively. Braking, acceleration, and steering behaviour remain unchanged. Mobility is maintained even after a puncture, but you must refer to each individual tyre’s guidelines from the Manufacturer.
Dunlop DSST Tyre Tyres that carry this technology include the Bridgestone RFT series, Continental SSR series Dunlop DSST series, Goodyear ROF series, and the Pirelli Euphori@ series.
The rubber clip prevents the tyre rim cutting into your tyre when you experience a loss of pressure. This system has been developed by Michelin and is known as the PAX System. Like the reinforced sidewall it operates in tandem with automated tyre pressure monitors.
Why fill my tyres with Nitrogen? Why would you want to do this? The benefits of Nitrogen filling are as follows:
Improved comfort of ride Improved safety Increased fuel savings Improved life of tyre
Nitrogen has long been the accepted gas medium for filling aircraft tyres, racing tyres and heavy mining and construction vehicle tyres. Nitrogen is used for safety reasons and to ensure that tyres are always at a constant pressure. Compressed air, the traditional medium for inflating car tyres, contains both oxygen (21%) and nitrogen (78%). The rubber tyre is like a membrane, through which oxygen permeates three times faster than the nitrogen. The result is that the oxygen slowly leaks out through the rubber walls, and the under-inflation leads to higher tyre wear with a consequent decrease in safety and comfort, and higher fuel costs.
Bridgestone is one of the first tyre manufacturers to prepare itself for the latest demands in the Truck & Bus industry with the latest technology.
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New Truck & Bus Tyres:
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