Download - Summer Training Project Report
Study of selected Distribution Channels of Ralco Cycle Tyres and
Tubes
INTRODUCTION TO RALSON INDIA LTD
History :-Ralson India Ltd is pioneer of the tyre and tube company based at Ludhiana.
The company was floated by Shri Sant Prakash Pahwa and Shri Om Prakash Pahwa.
It is India’s largest company in the field of automobile tyres
Product Mix:-Tyres TubesHubs
Sister Concerns
Ram Lubhhaya and Sons Ltd
Priya Machines
Ralco Enterprises Pvt Ltd
Ralco Exports
Brands of Ralson
Ralson
Ralco
Awards and Certifications
Capexil Award
Decathlon Award
ISO 9001 Certified company
Additional Qualities of Ralson Group
R&D Department of this company is the only one of its kind
in Tyre industry
It is recoganized by Department of Science and
technology, govt of India.
Organization Chart of the CompanyChaiman (Mr Sanjeev Pahwa)
Senior V.P. Materials
(Mr Darshan Kumar)
V.P. Marketing (
Mr G.S. Passi)
V.P. Accounting
(Mr A.K Sareen)
V.P.Works ( Mr N.P. Gupta)
V.P. Tax ( Mr
Hoshiar Singh)
G.M. {HRD}( Mr
V.K Khurana)
Chairman ( Mr Sanjeev Pahwa)
Vice President (Mr G.S.Passi)
Publicity Manager (Mr Yogeshwar Sharma)
Deputy General Manager (Mr Karanjit Singh)
Senior Sales Manager(Mr Dutta Rai)
Sales Manager (Mrs Rajinder Kaur)
Sales officers
SWOT ANALYSIS OF TRAINING UNIT
STRENGTHS :- Company has highest production base, it produces 1lakh tyres,
1 .5 lakh tubes, 20000 hubs every day. Ralson tyres have highest sales in the market inspite of highest prices. Company has best R&D department recoganized by GOI Weaknesses:- Lack of Advertisement. Lack of Market Research Oppurtunities:- It has huge untapped demand for Ralco Tyres in the
domestic market. It has huge oppurtunities in other segment of auto tyres. Threat :- The labor comes from Bihar, thus company faces acute
shortage of labor Increase in the prices of Raw material -Rubber
Financial Ratios
CURRENT RATIO 2007-08 2008-09
1.42:1 1.46:1
CURRENT RATIOS :-- CURRENT ASSETS/CURRENT LIABILITIES
LIQUID ASSET RATIO
2007-08 2008-09
0.93/1 1.05/1
LIQUID ASSET RATIO :- LIQUID ASSETS/ CURRENT LIABILITIES
ABSOLUTE LIQUID ASSET RATIO:- ABSOLUTE LIQUID ASSETS/CURRENT LIABILITIES
ABSOLUTE LIQID ASSET RATIO
2007-08 2008-09
0.03:1 0.14:1
DEBT EQUITY RATIO :- TOTAL OUTSIDERS FUND/ SHAREHOLDERS FUND
DEBT EQUITY RATIO 2007-08 2008-09
1.64:1 1.48:1
EPS = NET PROFIT(AFTER TAX)/ NO OF EQUITY SHARES
Year EPS Trend
2004 4 100
2005 13.59 339.75
2006 4.13 103.25
2007 1.34 33.5
2008 13.28 332
2009 26.34 658.5
2004 2005 2006 2007 2008 20090
100
200
300
400
500
600
700
800
Earning Per Share
TrendEPS
EPS
Introduction to Distribution Channels Of Ralson
DISTRIBUTION CHANNELBRANC
H NETWORKS
OEM EXPORT CONSIGNE AGENTS
Branch Networks
BRANCH MAINDEALERS
SUBDEALERS
OEMPRODUCER
ORIGINAL EQUIPMENT MANUFATURERS
Consigne Agents
PRODUCER CONSIGNE AGENT MAIN DEALER
Title of the Research Project.
A STUDY OF SELECTED DISTRIBUTION CHANNELS OF RALCO CYCLE TYRES AND TUBES.OBJECTIVES:1) To study satisfaction level of DEALERS and OEM’S in context
with certain attributes, who are dealing with the company for more than one year.
2) To know the problems faced by the Dealers and OEM’s
Research Methodology
Research Design :- Frame work or blueprint for conducting the research project.
R esearch design employed – Descriptive Research design for studying the market characteristics.
Data collcetion Method :- Questionnaire and Schedule. Sampling plan :- Feasible way to collect Market Research Data. Population :- Dealers of the following areas:- Ludhiana MogaSidharRaikotJagraon Ahmedgarh
Sampling Frame : List of all dealers of these areas. Universe : List of all dealers of Punjab, and OEM’S of
Ludhiana. Sample Size : 50 Dealers, 4 OEM’S. Sampling Technique :- Convenience Sampling of Location.
Need of Study
As Distribution channel plays a crucial role in having worthy market position and goodwill, so this project was chosen.Benefit to the Dealer and Oem:- It would help them to have the product according to the expectations.Benefit to the Company :- It will help the company to know thw factors which need improvement inorder to satisfy the dealers to a greater extent.
Data Analysis And InterpretationFig 4.1 Status of Dealership of Dealers(Percentage wise).
66%
34%
Chart Title
NO OF WHOLESALERS NO OF RETAILERS
Fig 4.2 Name of Brands dealt by the Dealers.
HINDUSTAN RALCO INTERNATIONAL METRO BEDROCK
10
50
39
26
6
20
100
78
52
12
Brands dealt by the dealersRESPONSE OF THE DEALERS PERCENTAGE
Fig 4.3(a) Ranking of Brands by Dealers
1 2 3 4 5
1
46
20 19
Ranking of HindustanNo of dealers giving this rank
Fig 4.3 (b)
1 2 3 4 5
25
18
5
2
0
Ranking of RalcoNo of dealers giving this rank
Fig 4.3(c)
1 2 3 4 5
14
17
11
5
3
Ranking of MetroNo of dealers giving this rank
Fig 4.3(d)
1 2 3 4 5
109
21
8
2
Ranking of InternationalNo of dealers giving this rank
Fig 4.3(e)
1 2 3 4 5
02
7
15
26
Ranking of BedrockNo of dealers giving this rank
Cumulative Ranking of all brands together.
HINDUSTAN RALCO METRO INTERNATIONAL BEDROCK
202
84
116
133
215
Ranking of Brands by dealers
Fig 4.4 No of years of association of dealers with Ralco
1 YR 2 YRS 3 YRS 4 YRS 5 YRS MOREA B C D E F
15
1 25
36
2
10
2 410
72
No of years of association of dealers with Ralco
No of Dealers PERCENTAGE
Fig 4.5Means of communication used by the Dealers for placing
order.
A)THROUGH SALES REP
B)TELEPHONE
C)PERSONAL VISIT
D)ANY OTHER
21
13
3
13
42
26
6
26
Means of communication used by dealersPERCENTAGE No of Dealers
Fig 4.6(a) Major segmenr of Ralco tyres dealt by the Dealers.
2%
8%
34%56%
Major Segment of Ralco tyres dealt by the dealers
A)SHORT TYRESB) SEMI HEAVY DUTY TYRESC)HEAVY DUTY NYLON TYRESD)COTTON TYRES
Fig 4.6(b) Major Segment of Tubes Dealt by the Dealers.
68%
32%
Major Segment of tubes dealt by the dealers NO OF DEALERS
A) JOINTED TUBES B) MOULDED TUBES C) BUTYL TUBES
Fig 4.7 Lead time taken by the branch to execute the order.
54%34%
4%4%
4%
Lead Time taken by Branch to execute the order
A) 0-1 DAY B)1-2 DAYS C)2-3 DAYSD) 3-4 DAYS E)MORE THAN 4 DAYS
Fig 4.8Time taken by the company to replace the goods.
A) 1 WEEK B) 2 WEEKS C) 3 WEEKS D) 1 MONTH
33
12
2 3
66
24
46
Time taken by the company to replace goods
No of Dealers Percentage
Fig 4.9 (a)Satisfaction regarding timely delivery of goods.
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
58
11
0
-5 -4
29
11
35
2
Satisfaction regarding timely delivery of goodsResponse No of the dealers
Fig 4.9 (b)Satisfaction regarding Replacement Services.
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
32
27
0
-3
0
16
27
4 3
0
Satisfaction level of dealers regarding replacement services
Replacement services No of the dealers
Fig 4.9(c) Satisfaction regarding Discount Schemes.
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
22
19
0
13
0
11
19
7
13
0
Satisfaction level of dealers regarding Discount SchemesResponse No of the dealers
Fig 4.9(d) Satisfaction regarding Price.
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
42
13
0
-9
-2
21
13
69
1
Satisfaction level of dealers regarding priceResponse No of the dealers
Fig 4.10 Attributes which need improvement.
1 2 3 40
2
4
6
8
10
12
14
16
18
20
0 0 0 00,Quality
19,Price
13,Replacement services
11,Delivery time of goods
Attributes No of Dealers
Fig 5.2 Ranking of Brands by Oem’s.
A)METRO
B)INTERNATIONAL
C)RALSON
D)HINDUSTAN
E)BEDROCK
0 2 4 6 8 10 12 14 16 18 20
Fig 5.3 No of years of association of Oems with Ralson.
A)5 Yrs B)10 Yrs C)15Yrs D)More than 15 Yrs
0
20
40
60
80
100
120
0 0 0 4
100
NO OF OEMS PERCENTAGE
Fig 5.4 Level of Agreement regarding Quality.
Highly Agree(+2) Agree(+1) Neutral(0) Disagree(-1) Highly Disagree (-2)
8
0 0 0 0
4
0 0 0 0
Level of Agreement regarding QualityResponse No of OEM's
Fig 5.5 Level of agreement regarding Demand fulfillment.
Highly Agree(+2) Agree(+1) Neutral(0) Disagree(-1) Highly Disagree (-2)
3
1
0 0 0
6
1
0 0 0
Level of Agreement Regarding Demand Fulfilment
Response No of OEM's
Fig 5.6 Allocation of points to different attributes of Ralco by
Oems .
A) Brand Name B)Quick Delivery C) After Sales Services D)Price
205
110
65
20
Totalof each attributeTotal
Fig 5.7 Response of Oems towards increasing the quant of products.
1 20
20
40
60
80
100
120
100
0
RESPONSE OF OEM TOWARDS INCREASING THE QUANT OF PROD-UCTS
Series2
No of oems
Percentage
Findings and Conclusion
• Replacement services although provided should be more speedy.
• Price should be decreased a bit to have more dealers and to beat its competitors in this context
• Greater inventory is required to satisfy the demand of OEMs.
• More discounts should be available to dealers.
LIMITATIONS:-
• The sample size is limited ( only 50 dealers).• Survey represents the response of Dealers of
Punjab only( Raikot, Sudhar, Ahmedgarh Mandi, Moga, Jagraon and Ludhiana).
• Time was limited.• Information by dealers might be incorrect
Thank You