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.

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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.

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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

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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,

light commercial vehicles, earthmovers, forklifts, tractors, trailers, car, motorcycles,

scooter and auto rickshaws.

CEAT – Cavi Electrici Affini Torino

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HISTORY OF THE FIRM

CEAT Limited is tyre manufacturing company founded in Italy as CEAT Tyre by

Virginio Bruni Tedeschi. The company established its manufacturing in India in

1958 and was sold to Pirelli in 1970. The company’s Indian division was then taken

over by RPG enterprise in the year 1982, which also got the rights to CEAT brand

and renamed the company as CEAT Limited.

Its tagline is “take it on “

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OVERVIEW

Type Public

Industry Tyres & tubes

Founded 1958

Headquarter Mumbai, India

Key people R.P.Goenka, Chairman

H.V.Goenka,

Paras K. Chowdhary, Managing Director

Website www.ceat.in

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COVERED AREA

MARKET SHARE

CEAT TYRE has about 20% of the local truck and light truck tyre market.

It had 11% market share in 2010 of Indian tyre industry.

It had 12% market share in 2011 of Indian tyre industry.

MARKET SEGMENT

There are many segments in which CEAT Limited entered. These are as

under:

Commercial segment i.e. Trucks, Buses

Passenger car segment i.e. Cars, Jeep

Specialty segment i.e. Earthmovers & Forklifts

Farm segment i.e. Tractor & Trailers

Motorcycles, Auto rickshaws etc.

MARKET AREA

Ceat tyre is covered global market as well as the local market.

Ceat limited have many regional area like Mumbai, Gujarat, Uttar Pradesh,

Tamilnadu and all india.

Ceat limited have many global area like U.K, U.S.A, Canada, Australia, and many

other country.

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BRAND NAME & TEAM

BRAND NAME

CEAT TYRE

REGISTERED OFFICE

463 Dr Annie Besant Road,

Worli,

Mumbai,

Maharashtra-400030

Phone : 91-22-24930621

Fax : 91-22-66606039

E-mail : investors@ceat.in

Web : http://www.ceattyres.in

KEY PEOPLE

R P Goenka , Chairman

H V Goenka , Vice Chairman

Paras K Chowdhary , Whole-time Director

Anant Vardhan Goenka , Managing Director

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VISION & MISSION

The mission statement articulates the company's purpose both for those in the

organization and for the public.

The difference between a mission statement and a vision statement is that a

mission statement focuses on a company’s present state while a vision statement

focuses on a company’s future.

To be amongst the most profitable tyre companies in India by 2016 through:

Market Leadership in select categories in India and

Market Leadership in significant countries outside India

VISION “ CEAT will at all times provide total customer satisfaction

through products and services of highest quality and reliability.”

MISSION “ To nurture an exciting and challenging work environment with

fairness and transparency.”

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SIZE AND TYPE OF THE ORGANIZATION

SIZE

There are three types of the organization. These are as under:

(1) Large scale organization

(2) Medium scale organization

(3) Small scale organization

CEAT tyre is a large scale organization.

Size: 5001-10000 Employees

Turnover: 2500-5000 Crores

TYPE

There are five forms of organization.

(1) Sole proprietorship

(2) Partnership firm

(3) Private limited

(4) Public limited

(5) Joint stock company

CEAT Ltd. is private limited company.

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MARKETING

DEPARTMENT

16

INDEX

NO. PARTICULAR

1 Introduction

2 Importance of department in organization

3 Organizational chart

4 Marketing of the past and present

5 Advertising

6 Market share

7 Competitors

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INTRODUCTION

Marketing is the basic reason for the existence of a business organization. In the age

of fast changes, Marketing is the spring board of all activities. The success of a

business depends largely on the effectiveness with its marketing strategy are

formulated & implemented. Marketing is said to be the eyes &ears of a business

organization.

Because it keep the business in close contact with its economic, political, social &

technological environment & informs it of events that can influence its activities as

per requirements of the market.

Thus, the marketing department has a key role in the company.

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IMPORTANCE OF DEPARTMENT IN ORGANIZATION

For a successful business it is important that marketing plays a pivotal role.

Marketing department is one of the most important components of a business’s

survival in the market. The main aims of the marketing department revolve around

understanding the customers and their needs. Marketing activities involve designing,

promoting, pricing a product according to the needs of the market and customers.

Today the competition is gradually increasing with the increase in customers’

expectations and needs. The aim of the marketing department is to ensure that the

changing requirements of the customers are well understood and product or service

is developed or altered to meet these requirements. Customers’ buying decision is

influenced by various factors just as product features, price, quality packaging, and

prompt delivery and after sales support. The aim of marketing department is to

ensure that all these criteria are met and customers are satisfied. Marketing

department aims to work towards finding out the present and future needs of the

customers. In order to anticipate future needs, proper analysis of customer trends

should be undertaken. In order to gain a competitive advantage it is necessary that

the firm has the capability to develop new products quickly.

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MARKETING OF THE PAST AND PRESENT

Traditional experts view on marketing is a very narrow sense.

According to them “Marketing is a performance of business activity that

direct the flow of goods and services from producers to consumer”.

Hence, traditional concept is product oriented and it neglects the

importance of social responsibility and after sales service.

But in today’s world marketing mix “The process of

discovery and translating consumer needs and wants into product

specifications, creation demand and services, and then turn expanding

the demand”. In short it includes all those activities which are under

taken to fulfill the consumer needs and wants.

In today’s world business unit follow societal marketing

concept which calls upon marketer to build social ethical consideration

into their marketing factors they balance between profit, consumers

want, satisfaction and public interest.

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ADVERTISING

“Advertising is any paid form of non-personal presentation and promotion of ideas,

goods and services by an identified sponsor.”

- AMA (American Marketing Association)

The word advertising is derived from a Latin word ‘advertere’, which means turn

attention towards a specific thing.

Advertisement is a form of mass communication. Advertisement presents message

about product availability in the market. It is general term used for any and all types

of publicity.

Company is done advertising by the regional News paper, Television, magazine

and poster.

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MARKET SHARE

MARKET SHARE

CEAT TYRE has about 20% of the local truck and light truck tyre market.

It had 11% market share in 2010 of Indian tyre industry.

It had 12% market share in 2011 of Indian tyre industry.

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COMPETITORS

Today’s world is full of competitors. It is very difficult to survive in this competitive

world. Competition increases very fast in any business. Competition is very

important for the development of the economy and country.

COMPETITORS OF CEAT TYRE

MRF

Apollo Tyres

Balkrishna Inds.

Goodyear India

JK Tyres & Inds.

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INDEX

SR.NO TOPICS

1. Introduction

2. Meaning ,definition and element

3. Element of marketing mix

Product mix

Price mix

Promotion mix

Place mix

4. Factor affecting marketing mix

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INTRODUCTION

In common parlance, Marketing is process of selling something at shop or market

place, but according to modern marketing concepts selling is not an important part

of marketing but it is only a tip at marketing iceberg. The aim of the marketing for

any of the company is to make their sales superfluous.

Marketing occupies an important position in any organization. Traditional

viewpoint was that the customer would accept whatever product the seller presented

to him. However, according to Modern viewpoint is to focus on the consumer needs

& wants. Marketing deals with identifying and meeting consumer needs. One of the

shortest definitions of marketing is “Meeting Needs Profitability” producer does

not produce what they like but produce what the consumer wants.

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DEFINITION AND ELEMENT

“Marketing is process of planning executive the conception, pricing and distribution

of ideas, goods, services to create exchanges that satisfy individuals and

organizational goals”.

Philip Kotler.

According to Phillp Kotler, “Marketing Mix is the set of marketing tools

that the firm uses to pursue its marketing objectives in the target market”.

Marketing mix is the various marketing tools that marketer use to sell its

products. There are 4 P’s of marketing Mix.

A list of the relevant market forces and the element of the marketing mix

would be helpful in analyzing marketing problems. The main aim of all

marketing activities is “profitability”. The marketing manger should therefore

devise such a marketing mix that will give the optimum profit for the product he

has to market.

By blending this marketer make a proper plan of action to push its

products in the market

Product Price Promotio

n

Place

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PRODUCT MIX

28

INDEX

SR.NO TOPICS

1. Introduction

2. Product mix of the company

3. New product & reason to develop

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INTRODUCTION

Product is an engine of vehicle of the company for providing consumer

satisfaction. The product is most important conversion by which any firm can prove

its efficiency intention of quality product is a symbol of the business firm product is

center point around which all the activity of the business i.e. finance, marketing,

production etc. are woven without a product nothing to sell nothing to price nothing

to run a business.

A range of associated products that yields larger sales revenue when marketed

together than if they were marketed individually or in isolation from others.

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PRODUCT MIX

‘Product mix is the set of all product line and items that a particular seller

offers for sale to the buyer.’

‘Product line is a group of products that are closely related because they

function in a similar manner, are sold to the same customer groups, are marketed

though same types of outlets of fall within a given price range’.

A company’s product mix has a certain width, length, depth, and

consistency.

The width of product mix offers to how many different product lines the

company carries.

The length of product mix refers to total number of items in its product

mix.

The depth of product mix refers to the total number of items in its

product mix.

The consistency of product mix refers to how variants are referred of

each product in the line.

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LIST OF THE PRODUCT MIX

1) CEAT Zoom

2) CEAT Grip

3) CEAT Liittle master

4) CEAT milaze

5) CEAT secura sport

6) CEAT Vertigo Sport

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PROCESS OF THE NEW DEVELOPMENT PRODUCT

Idea Generation

Idea Screening

Concept Development and Testing

Business Analysis

Beta Testing and Market Testing

Technical Implementation

Commercialization

New Product Pricing

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NEW DEVELOPMENT & REASON

The typical new product development process followed by CEAT

tyre is as follows:

IDEA GENERATION:

New Products are born from ideas. Before searching ideas, top

management should define the products and markets and should also state

the objectives for NPD.

New products launch by CEAT ltd are as under:

Truck

- High mileage , High Load front tyre (10.00-20 RD 13) High Mileage

Tyres (9.00-20 MILE XL RIB and 11.00-20 MILE XL RIB)

LCV - High Mileage Tyres (7.00-15 MILE XL RIB and 7.00-16 MILE XL

RIB)

Reasons for new product development:

- To increase share in the market.

- To increase customer of company in the market.

- To face the competition.

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35

PRICE MIX

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INDEX

SR.NO TOPICS

1. Pricing as a decision

2. Company’s general pricing policy

3. PLC & pricing strategy

4 Factor affecting pricing

37

PRICING AS A DECISION

Skimming Price Policy:

This strategy involves setting a very high price, so that in the

initial stage cream of demand may be skimmed and enormous profits made

for an indefinite period or the price may be covered later in order to tap other

segments of the market.

Penetration Price Policy:

In this strategy a low price is set to reach the market

immediately.

CEAT tyre has adopted penetration price policy for their items

of biscuits and confectionery, because in consumer products there are many

competitors prevailing in the market. So it is not possible to set a very high

price in the initial period. Considering their competitors policy CEAT tyre

has adopted penetration price policy.

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COMPANYS GENERAL PRICING POLICY

Companies revolves the pricing issue by selecting a pricing

method. the pricing method then lead to a specific price. As there are many

pricing methods which are as under :

Mark – up Pricing

Target Return Pricing

Perceived Value Pricing

Going Rate Pricing

Sealed Bid Pricing

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PRODUCT LIFE CYCLE AND PRICING STRATEGY

From the time the produce idea is been during its development

and up to the time it is launched in the market, a product goes through the

various phases of its development. Its life begins with its market

introduction, next it goes through a period during which its market grown

rapidly. Ultimately it resides marketing, maturity after which its market

declines and finally the product dies.

The product life cycle may move through five stages

Introductory, pioneering as development stage.

Growth or the market acceptance stage.

Market Maturity stage

The Saturation stage

The Decline stage

In CEAT Tyre Ltd. the product of the unit has reached at

growth stage. In this stage, the product is produced in significant quantity

and put in the market without delay. Here in this unit also the CEAT Tyre is

having ready stock working with them. As the company CEAT Tyre has

reached as its growth stage there are large number of competitors entered in

the product. CEAT Tyre is having a number of distribution outlets and that’s

why the products of CEAT Tyre fixed at economic rate.

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FACTOR AFFECTING TO PRICING POLICY

The price fixed by the seller’s own sentiment may not

necessarily be accepted in the market. Historically, prices were set up by

buyers & sellers negotiating with each other. Seller would ask for higher

price than they expected to receive & buyers world offer less than they

except to pay. Through bargaining. They world arrive at an acceptable price.

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.

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So far as P.P.L. is concerned, the factors which affect the

pricing policy can be summarized as under:

Internal factors

Cost of Production

At the time of marketing the pricing. The manager has to

attempt to optimize the cost. Cost optimization means setting of reasonable

prices which provide equitable return on capital at the same tome suit the

consumer’s purchasing power.

Distribution cost

P.P.L. are transported to a very distance, naturally the

distribution cost would be high. Again, the costs on middlemen clue

generally high because the profit given to the would also be included in to

them would also be included in the cost.

Normal Profit Margin

The main objective of any company is to earn maximum profit.

Here, also the margin of profit is taken into account while fixing the prices.

But the prices are changed at the cost of society.

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Product perishability

While fixing the prices, the decision makers should not

underestimate the perishable quality of the products. The unit also gives

much stress on this factor & fixes prices accordingly.

External factors:

Demand of the Product

The decision makers of the unit are always in trying to study

the nature & magnitute of demand & according the level of demand, the unit

fixes prices.

Socio – Economic Environment

Rise in the level of income or in the standard of living may

affects the pricing policy. The decision makers may prefer to increase the

price, where there is a high standard of living & vice versa.

Government Regulations

The decision makers of the unit are always keep in the mind the

regulations introduced by the Government. This factor requires more care &

precaution.

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Competitor’s price in the Market

.

Thus, above all factors are taken into account while fixing

prices for the products. Ultimately, consumer perceptions of price and value

determine whether the company has set the right price, if the price is higher

than the sum of the perceived values, consumer will not buy the product.

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PROMOTION MIX

45

INDEX

SR.NO TOPICS

1. Introduction

2. Elements of promotion mix

3. Advertising

4. Sales promotion

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INTRODUCTION

Promotion is a form of communication to accept ideas, products, and services

and hence persuasive communication becomes heart of promotion. It is said that, “In

a competitive market without promotion nothing can be sold”

Promotion has been defined as “The co-ordinate self- initiated efforts to

establish channels of information and persuasion to facilitate sale of goods or

services or to acceptance of ideas or points of view.”

The promotion mix includes four ingredients viz.

Advertising

Publicity

Personal selling

Sales promotion

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ADVERTISING

Promote sales because it is only way to commercialize the product. Any

activity towards sales-promotion may be called promotional activities. Such

activities include advertising.

“Any paid form of non-personal communication of ideas, goods or

services by business firms identified in advertising message intended to lead to

sale immediately or eventually.”

-American Marketing Association

Today, no business survives without advertisement. Advertisement helps to

increase sales goals and to give a tough fight to competitors. The problem or else we

can say question is not whether to do advertisement or not? But question is that how

to advertise with a view to maximize returns on money invested. An advertisement

can prove to be better when it is adequately planned, executed and constantly

evaluated.

As one knows advertisements prove of the great importance having many

objectives. The main objectives of advertising are as given below:

Preparing a ground for new product

Creation of demand

Facing competition

Creating goodwill

Awareness to customers

Creating good brand image

CEAT ltd gives advertising on television and in newspaper.

List of the news paper:

I. Times of India

II. The Economics time

III. The New Indian express

IV. Maharastra Time

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SALES PROMOTION

Sales promotion is a key ingredient in marketing campaigns. Sales promotion

consists of diverse collection of incentive tools. Mostly short term, designed to

simulate quicker or greater purchase of particular products or services by consumer

or the trade.

“Advertising offers a reason to buy; sales promotion offers an incentive to

buy.”

“Sales promotion is short term incentives to encourage purchase or sale of

product or service.”

CEAT ltd uses many ways and techniques of promoting sales. It has different

activities for different class of distributors.

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PLACE

MIX

50

INDEX

SR.NO TOPICS

1. Introduction

2. Types of distribution channel

3. Channel of distribution

4. Factors affecting to channel decision

51

INTRODUCTION

The path through which goods and services travel from the vendor to the

consumer or payments for those products travel from the consumer to the vendor. A

distribution channel can be as short as a direct transaction from the vendor to the

consumer, or may include several interconnected intermediaries along the way such

as wholesalers, distributors, agents and retailers. Each intermediary receives the item

at one pricing point and movies it to the next higher pricing point until it reaches the

final buyer. Coffee does not reach the consumer before first going through a channel

involving the farmer, exporter, importer, distributor and the retailer also called the

channel of distribution.

It is a path traced in the direct or indirect, transfer of title to a products

as it move from a producer to ultimate customers or industrial users. We can define

the distribution channels as movement of goods and services between the point of

production and point of consumption through organization that perform a variety

of marketing activities. The route of the channel include both manufacturer and the

consumer and intermediaries who are linked in the channel system by one or more

of the marketing flows like transfer of title or ownership, physical movement of

goods of merchandise, flow of money through payment of prices or so or

transmission of marketing information. A distribution system has two sub divisions

52

TYPES OF DISTRIBUTION CHANNEL

Types of distribution channel are as under:

Manufacturer to Customer

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.

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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

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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.

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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

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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

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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

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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

and attract new customer to use product.

86

BIBLIOGRAPHY

87

BIBLIOGRAPHY

BOOKS

Marketing management - Philip Kotler

SITES

www.studymode.com (for distribution channel)

www.ceat.in