lucas tvs project
DESCRIPTION
A project report on Lucas Tvs India LimitedTRANSCRIPT
EXECUTIVE SUMMARY
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Lucas –TVS joint venture of Lucas Industries plc., UK and TV Sundaram Iyenger & Sons (TVS), India, to manufacture Automotive Electrical Systems. One of the top ten automotive component suppliers in the world, Lucas Varity was formed by the merger of the Lucas industries of the UK and the Varity Corporation of the US in September 1996. The company designs, manufactures and supplies advanced technology systems, products and services to the world’s automotive, after market, diesel engine and aerospace industries. Lucas-TVS Limited provides: Air Freight services, Alternators, Headlamp Washing Systems, Ignition coils, Motor Bases, Starter Motors, Starters and filters.
The project undertaken is a study on the product promotion of filters promotion of filters produced by Lucas-TVS. The focus of the Study was to understand the reasons for the decrease in the sales of filter products, when compared with their level of expectation and indentify the issues & Concerns followed by the suggestions to fill the gap. The study involves working with salesman of Lucas-TVS for the purpose of getting opinions from the dealers and mechanic/end users regarding the survey. The primary data was collected by visiting the market along with the sales representatives. Various data were collected and was used to understand the competitor’s strategy at the ground level which helped to respond accordingly for the marketing unit.
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INTRODUCTION
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INTRODUCTION TO THE TOPIC
Lucas-TVS Limited follows the multi market strategy where the risk is being diversified and serves several markets. Lucas-TVS manufacture products such as: Alternators, Headlamp, Washing Systems, Ignition Coils. Motor Bases, Starter Motors, Starters and filters. Lucas-TVS started to produce filters only from the middle of the year 2009. Right now they are manufacturing filters around 50 varieties for four wheelers including heavy commercial vehicles. The entering of Lucas-TVS in to manufacturing of filters can be referred as laggard entry. The earlier companies in to this field are Mico Bosch, Purolator, Fleet Guard, Elofic etc... The competition is high regarding the sales of fillers. This is due to the awareness and the trust established by the end users towards the previous companies.
As the filter products of Lucas-TVS falls under the laggard entry strategy they have to serve the needs of the market butter than the present firms. As they need to serve the market in a better manner and capture the market share, they are providing many offers and promotional schemes to the dealers/retailers right now. As the end users are mostly mechanic, Lucas-TVS which has a good brand name in the market purely believe in personal selling (in the form of dealers) rather than creating awareness by advertising to the end users. Right now, the company can’t reach out their expected sales in the market because of various factors.
In this project a detailed study is done based on all their activities and their effectiveness on their target customers by doing a survey. The survey is mainly done to both dealers and mechanics. The sample size is based on the two types of localities, urban and semi-urban. The two different localities are taken to find whether there is any significant difference between two different localities. This survey based on two different localities gives us a clear knowledge about the factors affecting the sales of the product.
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INTRODUCTION TO AUTOMOBILE INDUSTRY
Automobile, which is a self propelled vehicle used primarily on public roads but adaptable to other surfaces. Automobiles changed the world during 20th century, particularly in US and other industrialized nations. The key elements of industrial economies are the manufacturing, sales and servicing of automobiles. Along with job creation and greater mobility, automobile has brought noise and air pollution. Automobile accidents rank as the leading cause of death and injury throughout the world.
Automobiles can be classified by size, style, number of doors, and intended use. The typical automobile, called car, auto, motorcar, and passenger car, has four wheels and can carry up to six people. Larger vehicles are designed to carry more passengers are called vans, minivans, omnibuses or buses. Depending on their size and design, those which are used to carry cargo are called pickups or trucks, Sport-utility vehicles, also known as SUVs, are more rugged than passenger cars and are designed for driving in mud or snow.
In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first Automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled, military tractor that made the use of a steam engine. The range of the automobile, however, was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition, these automobiles were not fit for the roads as the steam engines made them very heavy and large and required ample starting time. Oliver Evans was the first to design a steam engine driven automobile in the U.S.
A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were amongst the first to invent more applicable automobiles, making use of non-rechargeable electric batteries in 1842. Development of roads made travelling comfortable and as a result, the short ranged, electric battery driven automobiles were no more the best option for travelling over longer distance.
Charles Kettering’s invention of the electric starter in 1912 turned the process of starting automobiles faster and easier at the same time, doing away with the hand tools. Crude oil being discovered in Texas, the automobiles driven by engines that ran on gasoline became even more affordable, as the prices of gasoline reduced. The prices of electric automobiles were going
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through a constant rise, in spite of the fact that these were less efficient than the gasoline automobiles.
Jean Joseph Etienne Lenoir was first to invent an internal combustion engine that ran on petroleum and attached it to a three-wheeled carriage, and successfully traversed a distance of fifty miles in 1863. Karl Benz manufactured the first automobile (a three-wheeled car) that was affordable and compatible for travelling over long distance for its internal combustion engine that ran on gas, in 1886. Later in 1887, Gottlieb Daimler was the first to invent the predecessor of the modern automobile with an engine that had a vertical cylinder in addition to a gasoline driven carburetor. First building a two-wheeled automobile (“Reitwagen”). Daimler was again the first to build a four-wheeled automobile in 1886. The engines manufactured by Daimler were improved upon and these portable and fast engines made automobiles the way we see them today.
The advanced engines turned the slow, expensive automobiles of the yesteryears, a thing of the past, and cars became more affordable as both the prices of gasoline and petroleum as well as the manufacturing costs reduced through their mass manufacture at the assembly lines of factories. Penhard and Levassor in 1889, and Peugeot in 1991 became the earliest mass manufacturers of the modern automobiles.
At present, Indian automobile industry is making a major contribution in increasing the country’s GDP by 9% every year. New heights have been scaled by the industry in the year 2010. In January 2010, total automobile sales in the domestic market reached 11, 14, 157 units, this shows an increment of 44.9% compared to the sales units of 7, 68, 698 of same period last year. Even for the month of April-October after a gap of 11 years, total automobile sales in India stood at 1, 120, 081 Units. Annually, the Indian automobile industry is growing at an average rate of 30% and marketing itself as one of the fastest growing industries in India. According to reports of society of Indian Automobiles Manufacturers (SIAM), annual car sales are estimated to reach 5 million vehicles by 2015 and more than 9 million by 2020. New York Times reports, several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki have expanded their manufacturing facilities owing to India’s strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars.
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Some of the statistics for the Automobile Industry are
At present, India is the second largest market for two & three wheelers
after china.
India along with china is the largest manufacturers in the production of
tractors.
The subcontinent stands as the 4th largest producer of trucks in the
world.
Our country is positioned 11th in car production in the world in
passenger car segment.
In India car penetration per 1000 is only 7 compared to 500 in
Germany.
India will become the world’s third largest automobile market by 2030,
behind just China and the US.-(Forecasted by US-based consultancy
Keystone-a subsidiary of LaSalle Consulting Associates)
MAJOR COMPANIES OF THE AUTOMOBILE INDUSTRY IN INDIA
The largest manufacturers in each segment within the automobile industry in India are given in the Table 1.
Car Market Heavy Vehicles Market
Maruti Suzuki Ashok Leyland Hyundai Motors Eicher Motor Ltd Tata Motors Tata Motors Mahindra & Mahindra Swaraj Enterprise Hindustan Motors Force MotorHonda siel cars India LtdFiat India Pvt LtdReva Electric Car Co.General MotorsFord India Ltd Toyota kirloskar Motor Ltd Skoda auto India Private Ltd
Table 1: Major players of the automobile industry in India
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CAR SEGMENT
Maruti Suzuki
Maruti Suzuki India Ltd. This was formerly known as the Maruti Udyog ltd. Is a subsidiary of the Japan based Suzuki Motor Corporation.
The company offers around 14 brands and over 150 variants of cars across a wide range of segments. It is one of the biggest and one of the first companies to serve India in car segments. Maruti was the first company which studied the consumer demand and reacted to it. Market segmentation strategy adopted by7 Maruti Is to Target different income level people and with different models or variants of cars.
The company is also listed on Bombay Stock Exchange and National stock exchange.
Hyundai Motors
Hyundai entered into the Indian market in the year 1996 through its subsidiary HMIL.HMIL presently markets 6 models of cars across different segments. It manufacturers cars like the Santro, i10, i20, accent, Verna, Sonata and Santa Fe.
HMIL is the first automobile Company in India that has managed to export around 10 lakh cars in just over a decade. The present market share of HMIL as of 2010is 13.52%.
Mahindra & Mahindra
Mahindra & Mahindra Limited is the company of the Mahindra Group, based in Mumbai, India. The company was formed in 1945 in Ludhiana as Mahindra & Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik ghulam Mohammed. The company changed its Name to Mahindra & Mahindra in 1948.
Mahindra & Mahindra was basically a steel trading company in 1945. But soon it moved to manufacturing of light commercial vehicles (LCVs) and Agricultural tractors. Today, M&M is the leader in the utility vehicles, starting with assembly under license of the iconic will’s jeep in India.
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M&M later moved into the manufacturing of the light commercial vehicles (LCVs) and agricultural tractors. Today, M&M is the leader in the utility vehicle segment in India with its UV Scorpio and enjoys a growing global market presence in both the automotive and tractor businesses.
General Motors
GMIPL is a subsidiary of General of General Motors that is that is into the automobile business in India. It is the 5th largest automobile manufacturing company in India.
In1994 GMIPL was formed as a joint venture as a joint venture, where owned 50 percent by Hindustan Motors and 50 percent by General Motors. GM bought out the Hindustan Motors interest in 1991. 2003 it started production of Chevrolet vehicles at Haloi location.
In 2000, Gm Moved its Headquarters to Gurgaon. In 2003, the company also opened its technical center operations in Bangalore, which included research and development and vehicle engineering activities.
The technical center was expanded to include purchasing and financial support services for General Motors operations located outside of India (2006), vehicle engine and transmission design and engineering (2007) and a vehicle design studio (2007).
GMIPL now has a second vehicle assembly plant in Talagaon, Which started production of Chevrolet vehicles in September 2008.
HEAVY VEHICLES SERGMENT
Ashok Leyland Ltd.
For over five decades, Ashok Leyland has been the technology leader in India’s commercial vehicle Industry, molding the country’s commercial vehicle profile by introducing technologies and product ideas that have gone on to become industry norms.
From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage vehicles, from numerous special application vehicles to diesel
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engines for industrial, marine and genset application, Ashok Leyland offers a wide range of products.
Eicher Motors Ltd.
Eicher began its business operation in 1959 with the roll of India’s first tractor. Today the Eicher group is a significant player in the Indian automobile industry with a gross turnover of over 19000 million in the year 2005-06.
Eicher group has diversified business interests in design & development, manufacturing and local/international marketing of Trucks & buses, Motorcycles, Automotive Gears and Components. Eicher Motors Limited Comprises of the automotive business of the Eicher group. The table 2 below describes about the business activities of the company are carried out by its constituent business units, each covering a product category.
Business Area Products
VE Commercial Vehicles Ltd
Trucks & Buses
Volvo Trucks
Gears & Shafts
Royal Enfield Motorcycles
Table 2: Business activities of Eicher group
Tata motors
Tata Motors Limited is India’s largest automobile company, with consolidated revenues of Rs.1, 23,133 crores (USD 27 billion) in 2010-11. It is leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The Company is the world’s fourth largest truck manufacture, and the world’s third largest bus manufacture.
The Company’s over 25,000 employees are guided by the vision to be “Best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics.”
In January 2008, Tata Motors unveiled its People’s car, the Tata Nano, which India and the world have been looking forward to. The Tata Nano has
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been subsequently launched, as planned, in India in March 2009. A development, which signifies a first for the global automobile industry, the Nano brings the comfort and safety of a car within the reach of thousands of families. The standard version has been priced at Rs. 100,000 (excluding VAT and transportation cost).
Tata Motors, the first Company from India’s engineering sector to be listen in the New York Stock Exchange (September 2004), has also emerged as an international automobile company.
Force Motors
A fully vertically integrated and complete automobile company- concentrating on satisfying customer needs with high quality, high utility and high technology products through superior product design, production engineering, hi-tech manufacturing and innovative marketing.
The world ‘Force’ to us is not just the product of ‘mass’ and ‘acceleration’. It reflects our values of ethical business, our strength in technology, in manufacturing and mutually beneficial relations with our customers, dealers, suppliers and business associates. Force is the dynamism with which we venture into our future supported by the array of Technical Collaborations and Business Alliances with world leaders like MAN, Daimler Chrysler.
GLOBAL SCEANARIO
Over the years, the industry has grown significantly to become as one of the well-established industries all over the world. The global automotive industry has been evolving through different phases characterized by its own developments. Over a period of time, the industry has witnessed several ups and downs, only to emerge stronger and better equipped to take on the challenges. General Motors, Established in 1908 in Michigan, USA is almost completing a century of operation. Later, it was Henry Ford, who in the year 1914 endeavored in the mass production of cars, reducing the costs of manufacturing. In fact, these two companies are considered to be the pioneers in the automobile industry for bringing in innovation and setting high standards in the industry.
In 2007 a total of 79.9 million new automobiles were sold worldwide: 22.9 million in Europe, 21.4 million in Asia-pacific, 19.4 million in USA and
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Canada, 4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa. The markets in North America and Japan were stagnant, while those in South America and other parts of Asia grew strongly. Of the major markets, China, Russia, Brazil and India saw the most rapid growth. About 250 million vehicles are in use in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007: they burn over 260 billion gallons of gasoline and diesel fuel yearly [SIAM India-Society of Indian Automobile Manufacturers].
The numbers are increasing rapidly, especially in China. In the opinion of some, urban transport systems based around the car have proved unsustainable, consuming excessive energy, affecting the health of populations, and delivering a declining level of service despite increasing investments. Many of these negative impacts fall disproportionately on those social groups who are also least likely to own and drive cars. The sustainable transport movement focuses on solutions to these problems.
INDIAN SCENARIO
India is emerging as a source of high value and advanced quality engineering products and services for multinational companies. India is set to emerge not only as a large domestic market for automotive manufacturers, but also as a crucial link in the global automotive chain. Among other industries, the automotive industry in India is understood to be the most dynamic. It has been experiencing strong growth rates after de-licensing of the industry in 1941, when major economic reforms took place in India.
Size of the industry
The automotive industry is one of the largest industries in India and is of high strategic importance to the Indian manufacturing sector overall. The industry has been growing at a fast and steady pace over the past five years registering a CAGR of 17 per cent. According to the Indian Brand Equity Foundation (IBEF), India is envisaged to be the third largest automobile market in the world by 2030 only behind USA and China. Given below are some of the key features of the key features of the automotive industry in India that indicate the size Indian automotive industry
Fourth largest market for passenger cars in Asia.
Second largest manufacturer of two-wheelers worldwide.
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Fifth largest manufacturer of commercial vehicles worldwide.
Largest manufacturer of tractors and three-wheelers worldwide.
The table 3 depicts about the market share for the year 2010-11 according to the category. We can clearly see that more than 75% of the market share is held by the two-wheeler category.
Table 3: The domestic market share 2010-11
Passenger Vehicles; 16.25%
Commercial Vehicles; 4.36%
Three Wheelers;
3.39%
Two Wheelers; 76.00%
The domestic market share 2010-11
The pie chart & the above table give us the information about the domestic share of the automobile industry according to their category. We can infer that 3/4th of market share are only by two wheelers. The remaining 1/4th of the market share is shared by passenger vehicles, three wheelers, and commercial
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Market Share
Passenger Vehicles 16.25%
Commercial Vehicles 4.36%
Three Wheelers 3.39%
Two Wheelers 76%
vehicles. These above details are gathered from the source SAIM (society of Indian Automobile Manufacturers).
Export Trends
Exports have emerged as a significant revenue earner for the vehicle manufacturers in India, from past few years. With players’ aggressive export plans, the new few years are set to witness new levels of industry revenues from exports. The key destinations are the SAARC countries, European Countries, Middle East, Latin America, and neighboring countries like Bangladesh, and Sri Lanka. Maruti Suzuki, Tata Motors and Hyundai Motor India are key exporters for passenger cars; Tata Motors and Ashok Leyland for commercial vehicles, and Bajaj Auto for two and three wheelers.
CategoryAutomobile Export Trends
2008-09 2009-10 2010-11
Passenger Vehicles 22.00% 24.70% 19.40%
Commercial Vehicles 2.70% 2.50% 3.30%
Three Wheelers 9.70% 9.60% 11.50%
Two Wheelers 65.60% 63.20% 65.80%
Source: SIAM (society of Indian Automobile Manufacturers)
From the table we can infer that two wheelers and three wheelers have a better growth rate when compared to commercial vehicles and passenger vehicles.
PEST ANALYSIS
PEST analysis refers to the analysis of the environment in which a business operates. It is a tool which helps to minimize the threats and maximize the advantages.
POLITICAL FACTORS
Tax policies, laws and trade restrictions relating to the industry are included under this category. The liberalization policies of 1991 lead to the opening of new paths of growth for the automobile sector.
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The AUTO POLICY proposed by the government in 2002 aimed at converting India into a globally competitive automobile industry and also a source of automotive components. It also aimed at achieving high degree of employment and ensures balance of trade and minimizes the risk for the Indian economy. It facilitates research and development and also encourages development of vehicles propelled by some alternative sources of energy.
Government of India also introduced environmental regulations to promote healthy growth of automobile industry. Mass emission norms were introduced for petrol and diesel vehicles in the year 1991 and 1992 respectively. Two-wheelers in India have to follow the stringent emission norms. Use of alternative fuels like bio gas and hydrogen are being encouraged to ensure healthy growth of the sector. (Davos, 2006)
ECONOMIC FACTORS
The level of economic activity affects the commercial use of automobile in an economy. This includes changes in the interest rate, exchange rates and inflationary rates. The contribution of the automobile industry to the Indian GDP is near about 5% and is expected to grow two-fold by 2016.
The rapid growth of the Indian economy has encouraged the global competitors to start up business in India. There has been a growth of 8-10% in the past 5 years. The improved standard of living of the people and the feasible financial schemes has enhanced the growth of the automobile sector.
The liberalization further encouraged the de-licensing of automobile industry in India. It has permitted 100% FDI in manufacturing of automobiles and its components and also 100% FDI in the automotive route, it allowed easy export and import of automobile and automotive components.
SOCIAL FACTORS
There has been an increase in the customer base to serve due to the changing life- styles of people. Population growth rate, age distribution and changes in taste and buying behaviour are included under social factors.
An average family size of 4 in India makes it favorable for the people to purchase more of passenger cars. Indian customers prefer fuel efficient cars with low running cost; hence there is a greater preference for compact cars in India.
TECNOLOGICAL FACTORS
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Factors like R&D activities, automation, technology incentives and the rate of technology change are included here. There has been advancement in technologies due to the entry of global competitors in India. There have been introduction of hybrid vehicles and fuel-efferent cars due to the environmental issues. In order to capture the market share and economic growth, heavy investments on R&D have been done.
The Government of India is promoting NATRIP (National Automotive Testing and R&D Infrastructure project) to support the growth of auto industry in India. Integrated supply chain for the automobiles has been brought into practice. There has also been development of customized solutions for easier collection and analysis of customer feed-back. Technology developments have also decreased the use of automobiles to some extent. Internet has lead to the increase in the number of people working from home, and has thus reduced the use of automobiles for transportation.
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COMPANY PROFILE
The TVS Group was established in 1911 by Shri. T V Sundaram lyengar. As one of India’s largest industrial entities it epitomizes Trust, Value and Service. Today, there are over thirty companies in the TVS Group, employing more than 40, 000 people worldwide and with a turnover in excess of US$ 4 billion.
With steady growth, expansion and diversification, TVS commands a strong presence in manufacturing of two-wheelers, auto components and computer peripherals. We also have vibrant businesses in the distribution of heavy commercial vehicles, passenger cars, finance and insurance.
Lucas-TVS established in 1961 as a joint venture between Lucas UK and T V Sundram lyengar & Sons (TVS), India to manufacture Automotive Electrical Systems. Lucas-TVS is the Leader in Auto Electricals in India today with 48 years experience in design and manufacturing. 4 out of 5 vehicles rolled out daily are fitted with Lucas-TVS products. Lucas-TVS is a TS 16949 and OSHAS 18001 certified company. Lucas-TVS has bagged the Deming application price in 2004 from the Japanese Union of Scientists and Engineers (JUSE).
PEOPLE
Human resource is an asset never disclosed in a company’s balance sheet. They at Lucas-TVS strongly believe that an organization’s most valued assets are its people who individually and collectively contribute to the achievement of the objectives of the business. Keeping this in mind, Lucas-TVS’s management style lays great emphasis on employee involvement and actively encourages participation and commitment through Small Group Activities (SGA), Suggestion Schemes, Voluntary Work Teams and the like.
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CULTURE
A highly visible culture of Commitment backed up by Discipline & positive Attitude prevails across the organization.
They believe in the following equation:
Employee performance = (Knowledge+ skill) * Will
Trust, Value, and Service are the key words and beliefs practiced always internally and externally, Openness and transparency are seen in leadership styles/meetings. Internal customer-supplier equations are externally strong. SOP (Standard Operating procedure-shop floor) & SWP (Standard Work procedure-office areas) are base of DRM in ac line and staff TM functional departments. TEL (Total Employee involvement) is the foundation of the organization. Learning culture prevails at all times and all places in the company. 5S is the first step in every function. Approach and outlook of engineers/ managers is always bi-focal (short term and long term). PDCA is the belief and the Continuous improvement is the driver of growth. Systems and procedures are always put in place in reality to recognize an orderly workflow. Performance culture is encouraged and visible results are rewarded. Customer, economy in operations and Gemba are the basics of business culture. They take care of their employees and they in turn take care of our customers.
EDUCATION AND DEVELOPMENT
Human Potential is vast and requires the right amount of inputs to be utilized satisfactorily. Keeping this in mind, they invest significantly in upgrading our employees and their potential. Training, Skill-building & Career Development are given primary importance as they all lead to all round development. Beyond all this, On the Job Training and Job Rotation are also practiced extensively to hone the skills of our employees. Company operates a fully equipped training center, which features a multi-skill workshop, a product knowledge center, a CNC trainer and computer facilities. Individual skills are fine-tuned through specialized courses, both within the country and abroad. Lucas TVS employees in every part of India share ideas and learn from each other every day. This rich diversity and cultural experience come together to inspire new technologies, design ideas that meet the needs of all out customers.
KAIZEN CULTUREPage | 19
The work ‘Kaizen’ originates from the Japanese language. ‘Kai’ means ‘change’ and ‘Zen’ means ‘better’ anything that is improved from the existing level can be termed as ‘’Kaizen’’. From the industry perspective, the Kaizens can generally be classified into 3levels, namely simple and first level Kaizens, medium level and high level Kaizens, which are innovations or breakthrough improvements.
In a nutshell, Kaizen is a way of life in Lucas TVS at all levels of functions for sustaining the existing standards of performance and continually improving the standards for better to cope up with ever increasing customer expectations and business competitiveness.
As a part of TPM implementation, they have created Kaizen circles. The circles focus on Kaizens in line those mine pillars. Periodical reviews are being conducted Pillar wise and the Kaizen done in each pillar are explained to all and this way the Kaizen culture is implemented in all the departments.
CUSTOMERS
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AWARDS
Lucas-TVS believes that quality beings and ends with the customer. This means identifying customer needs and comprehensively meeting them. For the company, quality is not just conformance to drawings or specifications but customer satisfaction.
1. II PLACE IN NATIONAL ENERGY CONSERVATION, AWARDS-
2008 Automotive sector Ministry of power, Govt. of India.
2. TATA CUMMINS Lucas-TVS is Awarded “OUTSTANTDING
SUPPLIER & EXCELLENCE PERFORMANCE during the year 2007
by CUMMINS INDIA LIMITED.
3. Deming Application prize JUSE, Japan.
4. Best Supplier Award Maruti Udyog.
5. 100 PPM Award Hyundai motor India.
6. Q1 Award From Ford.Page | 21
PRODUCT PROFILE
Lucas-TVS Limited located located in India provides: Air Freight Services, Alternators, Headlamp Washing systems. Ignition Coils, Motors Bases, Starters and filters.
Air Filter
An air filter is an important part of a car’s intake system, because it is through the air filter that the engine “breathes.” An engine needs an exact mixture of fuel and air in order to run, and all of the air enters the system first through the air filter. The air filter’s purpose is to filter out dirt and other foreign particles in the air, preventing them from entering the system and possibly damaging the engine.
Air Filter
An air filter for your car will generally be pretty cheap, due to the construction of filters is simple. An air filter is generally a paper-like or fibrous material, folded accordion-style and arranged on a plastic or metal frame to fit your cars air filter holder. An air filter can also be made out of a cotton-or fabric-like material, which is then oiled in order to incase airflow through the filter. The air filter holder is usually a plastic or metal box in which the air filter sits. Generally, the air filter holder is connected to the intake manifold by a large plastic tube through which the air flows.
FUEL FILTER
The fuel filter is found along the fuel lines, either in the engine compartment or underneath the vehicle by the fuel tank. The job of fuel filter is to trap any large foreign particles in the fuel and stop them from getting into the engine. With the force of the fast up-and-down motion of the pistons (which compress the air-fuel mixture so it will burn more efficiently), if any large particles manage to get in the fuel, this could cause some serious damage to the engine. So, maintaining a clean fuel filter is important to the performance of a vehicle’s engine.
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Fuel Filter
Every fuel filter is different and this is due to the differences in the fuel delivery systems. A carbureted engine (uses a vacuum to suck fuel into the engine) has quite a low-pressure fuel system. Fuel passes through fuel-resistant rubber hoses. So, the fuel filter is made of metal or plastic, with an inlet tube out one end and the outlet tube from the other, then a hose is attached over each end with a circular clamp.
In vehicles with electronic fuel injection, the injectors will squirt fuel into each of the cylinders. Here fuel is highly pressurized by a pressure regulator. Because of the high-pressure system, the fuel lines have to be made of metal. Sometimes in these cases the fuel injected system is placed in a low-pressure section, and can be connected to the rubber hoses with clamp (almost like that in the carbureted system). However, the fuel filter is normally equipped with a threaded fitting on each end and it screws into the fuel lines on either side.
OIL FILTER
An oil filter is an integral part of the inner workings of your car. The oil filter allows oil to move through various parts of your car, which is important because oil does things such as cool your engine and absorb potentially harmful particles that could damage your car. When oil passes through the oil filter it removes these contaminants from the oil allowing it to pass through your car again. A properly working oil filter is the reason why you only have to have your oil changed after an average of 3,000 miles of driving.
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Oil Filters
Oil is pushed through the oil filter back into the engine. The actual filter material has two parts. The first removes smaller particles (things like dirt and debris) that could harm various components in your car if they were left to flow normally through. The liquid oil can move through the filter material but these solid particles cannot. The second part of the filter material stops larger particles that the first part couldn’t get. Once the oil passes through your oil filter it passes back into the engine free from these particles at which point it repeats the process.
SWOT ANALYSIS
Strengths
Lucas-TVS have covered all the segments in the automotive industry from two wheelers to heavy commercial vehicles.
It comprises of more than 2000 outlets for distribution network which covers the entire length and breadth of the country.
It mainly focuses on quality products which are combined with an urge to constantly learn and improve in their quality.
The efforts by the workforce are difficult to be matched by its competitors.
Participation at the worker level is done by the SGA (small group activity). This clearly indicates about their management style.
Weaknesses
The backward integration is not established properly. From the entire supplies, only 10% are able to match their quality standard.
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In spite of excessive measures taken to improve the quality, the company has not been able to bring down the rejection levels to the international standards.
Opportunities
A huge opportunity is a waiting for Lucas-TVS in the form of exports market.
Rapid inflow of investments in this sector will further open up new avenues for the company by ensuring JIT delivery to OEMs (Original Equipment Manufacturer).
Threat
The company has established many collaborators. This might prove to be a threat in future.
With the liberalization on automobile and auto components, world-class automobile manufacturers shown interest in entering Indian markets. This will further increase the competition level.
PRODUCT/PROJECT PROFILE
The aim of the study was to understand the reason behind the decrease in sales of their filter products from their level of expectation and identify the issues & concerns followed by the suggestions to fill the gap. Lucas-TVS manufacture products such as: Alternators. Headlamp Washing Systems, Ignition coils, Motor Bases, Starter Motors, Starters and filters. The main problem to the company as of now is, the filter products haven’t reached the sales as the other products. The filter product has brought in to the market only in the year 2009. Their expectation of increase in sales was purely because of their brand name in the market purely believe in personal selling (in the form of dealers) rather than creating awareness by advertising to the end users. Right now, the company can’t reach out their expected sales in the market because of various factors.
The project started with the collection of secondary data for gathering details about the company and the products produced by them. The initial week is spent by having the experience of visiting the company and gathering details about the company and by understanding the exact problem being
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faced by the company. The observations made on all the members involved helped in devising the questionnaire. One month is spent by doing survey in both urban and semi-urban areas of Asansol and Durgapur. The analysis of the data gathered is done and reported to the company executive in the last day of the month.
RESEARCH METHODOLOGYPage | 26
PROBLEM STATEMENT
Lucas-TVS haven’t achieved their expected sales in their filter products which are being introduced in August-2009. The issues/concerns faced by Lucas-TVS in the sales of filters have to be identified and promotional strategy for increasing the sales of their filter products.
OBJECTIVES
The objectives of study are,
1) To identify the issues/concerns faced by Lucas-TVS in the sales of filters.
2) To analyze the significant difference in opinions between urban and semi-urban areas of Asansol and Durgapur.
3) To identify the promotional strategy for increasing the sales.
RESEARCH METHODOLOGY
The methodology of the study would include conducting research with target audience as the dealers and mechanics. This includes primary data
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collection by person administered survey for analysis and final interpretation of data.
Descriptive research is undertaken in this study to obtain answer to request of who, what, where, when and how. Descriptive research is also desirable when we wish to project a study’s findings to a large population. If a descriptive study’s sample is representative, the findings may be used to predict some variable of interest, such as sales.
Finally the tools used in the process of this study are independent T-test, content analysis and percentage analysis.
SOURCE OF DATA
The two main sources of data are primary data and secondary data.
PRIMARY DATA
Primary data is a term for data collection on source which has not been subjected to processing of any other manipulation. Here the questionnaire is considered as the primary data. From this questionnaire the opinions of various people is known. The survey is conducted based on two localities, urban and semi-urban areas.
Data collection methods in questionnaire are
Dichotomous form (yes or no).
Multiple choice questions.
Ranking based questions.
Scaling based question.
Open ended questions i.e., inviting free response.
SECONDARY DATA
Secondary data is data collected by someone other than the user. The sources of secondary data include company details, surveys, and organizational records.
SAMPLING PLAN
The study was conducted as convenient sampling is urban and semi-urban areas. Urban areas in this survey constitute of Asansol and Durgapur
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and semi-urban areas constitute of Nachan, Aara, Natunpally, Rambandh and Damra. The Durgapur Auto Electricals (Lucas-TVS) had provided a sales executive in order to conduct the survey in the Semi-urban areas. The sample size from both urban and semi-urban areas comes around to 225.
Dealers Mechanics TOTAL
Urban 50 100 150
Semi-urban 25 50 75
TOTAL 75 150 225
Sample size of the servey
The above table gives the detailed information about the sample size of the survey being conducted. From the table we can infer that 150 members from urban and 75 members from semi-urban areas are being surveyed.
TOOLS USED FOR DATA COLLECTION
The main tool that is being used for the data collection is questionnaire. The questionnaire was developed after getting in depth knowledge about the given topic from various people from urban and semi-urban areas.
STATISTICAL TOOL USED
The role of statistics in research is to furnish a tool in designing research, analyzing its data and drawing conclusion there from. As well as know that a researcher cannot ignore the science of statistics. Tools used in the study are as follow.
PERCENTAGE ANALYSIS
This method is widely used to find the percentage of each of the attribute in the given question. This is helpful to estimate how many of the respondent
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support the attribute, it also clearly state the preference and non preference of the respondent. It is the easy method to find the respondent likes and dislike.
Formula:
Percentage = (No. of respondent / total respondent)*100
INDEPENDENT T-TEST
Independent T-test involves examination of the significant differences on one factor or dimension (dependent variable) between means of two independent groups (e.g., male vs. female, with disability vs. without disability) or two experimental group (control group vs. treatment group). For example, you might want to know whether there is a significant difference on the level of social activity between individuals with disabilities and individuals without disabilities.
The independent T-test is used in any analysis where:
o There is only one dimension or factor (dependent variable)
o There are three or more groups of the factor (independent variable)
o One is interested in looking at mean differences across two
independent groups.
CONTENT ANALYSLIS
Content analysis is used to analyze text, including, interview transcripts, newspapers, books, manuscripts, and Web sites to determine the frequency of specific words or ideas. The content analysis is a kind of secondary data. The results of content analysis allow researchers to identify, as well as quantify, specific ideas, concepts, and their associated patterns, and trends of ideas that occur within a specific group or over time. It provides objective analysis of written materials and can identify meaning from text data.
The main strength of content analysis is to quantify the qualitative data. The content analysis is very useful in case of open ended responses.
LIMITATIONS OF THE STUDY:Page | 30
The study is based on assumption that all the responses given are
true.
The study is based on the response obtained from the people in
urban (Asansol & Durgapur) and semi-urban (Nacha, Aara,
Natunpally, Rambandh & Damra) areas. It cannot be generalized
for the whole country.
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ANALYSIS
&
FINDINGS
OBSERVATION AND ANALYSIS
QUESTIONNAIRE ANALYSIS:
1) Are you aware of filters produced by Lucas-TVS?
Dealers Yes No
Urban 42 8
Semi-Urban 0 25
Awareness to dealers about filters produced by Lucas-TVS
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Yes No0
5
10
15
20
25
30
35
40
45
84%
16%
0%
100%
Urban Semi-Urban
Awareness to dealers about filters produced by Lucas-TVS
Inference
From the above figure we can infer that the awareness about the filter products in Semi-Urban area is Zero percent. The picture also depicts that the awareness about the product in urban area has only 84% and not even reached 100% (This is because of their sales, which is mainly concerned only with the main retailers and not concerned about the small sized retailers). This implies that the company has to take some serious steps regarding advertisement of the product produced by Lucas-TVS.
Mechanics Yes No
Urban 45 55
Semi-Urban 0 50
Awareness to mechanics about filters produced by Lucas-TVS
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Yes No0
10
20
30
40
50
6045%
55%
0%
100%
Urban Semi-Urban
Awareness to mechanics about filters produced by Lucas-TVS
Inference
The above figure also depicts that the awareness about the product among the main end users is itself very low. We can infer that even in urban areas, the percentage of unknown users (55%) is more than the known users (45%). But in the semi-urban areas, the percentage of known customers is NIL. This implies that they have to make some serious steps for increasing their awareness about the product to the end users.
2) Which brand would you prefer while purchasing filters?
Dealers Elofic Fleet Guard
Lucas-TVS Purolator Mico
Urban 6 15 4 40 31Semi-Urban 4 22 0 9 20
Preference of dealers towards purchasing filters
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Elofic Fleet Guard Lucas-TVs Purolator Mico0
5
10
15
20
25
30
35
40
12%
30%
8%
80%
62%
16%
88%
0%
36%
80%
Urban Semi-Urban
Preference of dealers towards purchasing filters
Inference
From the above figure we can recognize that Purolator dominates the market share in urban areas with 80% of the total purchase. Whereas, Fleet gurad dominates in semi-urban areas with 88% of total purchase. But we can also notice that Mico brand stands in second position in both urban and semi-urban areas with 62% and 80% respectively. This clearly indicates that Mico brand stands above all in the overall purchase (both urban and semi-urban). We can also infer that the purchasing of Lucas-TVS brand by dealers is very low in both urban and semi urban areas. This indicates that some serious strategies should be adopted as soon as possible to gain the market share in this competitive market.
Mechanics Elofic Fleet Guard
Lucas-TVS Purolator Mico
Urban 15 35 10 74 55Semi-Urban 3 41 0 16 35
Preference of mechanics towards purchasing filters
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Elofic Fleet Guard Lucas-TVs Purolator Mico0
10
20
30
40
50
60
70
80
15%
35%
10%
74%
55%
6%
82%
0%
32%
70%
Urban Semi-Urban
Preference of mechanics towards purchasing filters
Inference
The above figure depicts that the customers in urban are more attached towards Purolator brand and gets the majority of the market share with 74%. Whereas the customers in semi- urban prefer Fleet guard with the share of 82%. We can also infer that the purchasing of Lucas-TVS brand by mechanics is very low in both urban and semi-urban areas. This indicates that some important strategies should be adopted by marketing department as soon as possible to gain the market share in this competitive market.
3) Why do you prefer that brand?
Dealers Brand Name
Quality Awareness
Profit Margin
Cust. Pref
Others
Urban 33 17 36 3
Semi-Urban 19 0 24 5
Reasons for preferring that brand by dealersPage | 36
Brand Name Quality Awareness Profit Margin Cust. Pref Others0
5
10
15
20
25
30
35
4066%
34%
72%
6%
76%
0%
96%
20%
Urban Semi-Urban
Reasons for preferring that brand by dealers
Inference
From the above figure we can recognize that the purchasing power of the particular brand mainly depends up on the customer preference. Both in urban and semi-urban areas we can see that customer preference gains majority of the share with 72% and 96%. Besides the customer preference the dealer also prefers quality and profit margin for purchasing the particular brand. But the dealers also expect some proper relationship and supply to be maintained between them for purchasing that particular brand.
Mechanics Brand Name
Quality Awareness
Coup. Or Points
Cust. Pref
Others
Urban 100 40 15 30
Semi-Urban 40 3 45 0
Reason for preferring that brand by Mechanics
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Brand Name Quality Awareness Coup. Or points
Cust. Pref Others0
10
20
30
40
50
60
70
80
90
100
100%
40%
15%
30%
80%
6%
90%
0%
Urban Semi-Urban
Reason for preferring that brand by Mechanics
Inference
The above figure depicts that most of the mechanic is mainly concerned about the quality of the product in urban areas. Whereas the quality is to be secondary in semi-urban areas with 80% this is next to the coupons or points with 90%. But some of the other reasons for preferring that brand are due to proper availability and customers preference towards the brand.
4) What influence’s customer on purchasing filters?
Dealers Quality Price Factor
Brand Name
Awareness Making Profit
Others
Urban 45 0 30 5 15Semi-Urban
20 3 15 19 0
Dealers opinion on factors influencing customers on purchasing filters
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Quality PriceFactor Brand Name Awareness Making Profit Others0
5
10
15
20
25
30
35
40
45
90%
0%
60%
10%
30%
80%
12%
60%
76%
0%
Urban Semi-Urban
Dealers opinion on factors influencing customers on purchasing filters
Inference
In this data analysis the customer is mechanic most of the times. We can infer from the figure that the mechanic/customer in the urban areas give more preference to quality 90% rather than profit 10%. Whereas the mechanic in semi-urban areas the preference given is more or less equal to both quality 80% and making profit 76% by earning coupons or points.
Mechanics
Quality Price Factor
Brand Name
Awareness Making Profit
Others
Urban 90 15 65Semi-Urban
43 10 35
Mechanics opinion on factors influencing customers on purchasing filters
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Quality PriceFactor Brand Name Awareness Making Profit Others0
10
20
30
40
50
60
70
80
90
90%
15%
65%
86%
20%
70%
Urban Semi-Urban
Mechanics opinion on factors influencing customers on purchasing filters
Inference
In this data analysis the customer is the owner of the particular vehicle. From the above figure we can infer that the end users prefer quality and awareness about the particular brand name for purchasing filters. We can recognize almost 90% of the people in urban and semi-urban areas give preference to quality and only 15% to 20% of the customers give preference to the price factor of the particular product. The picture also depict that the second factor but most significant factor that influence the purchasing behavior is awareness about the particular brand.
5) What is your priority given while purchasing filters?
Inference
The data is been analyzed in the excel sheet and the excel sheet is attached with this document. The results from the analyzed results are depicted below.
Dealers
The total survey consists of 75 dealers, out of which 50 are from urban areas and 25 are from semi-urban areas. The priority is been calculated by the least count method. The dealers in the urban areas have given more priority to the customer preference. Next to that preference the availability factor is given
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more priority. This is followed by profit margin, quality, brand name, promotional schemes, and at last to the credit period. The dealers in the semi-urban areas also have given more priority to the customer preference. Next to that preference the availability factor is given more priority. This is followed by quality, brand name, profit margin, promotional schemes, and at last to the credit period. One of the main differences between urban and semi-urban areas is the profit margin factor. In urban areas the profit margin is more prioritized than quality. But the quality is given more priority than price factor in semi-urban areas.
Mechanic
The total survey consists of 150 mechanics, out of which 100 are from urban areas and 50 are from semi-urban areas. The mechanics in the urban areas have given more priority to the quality. Next to that preference the availability factor is given more priority. This is followed by brand name, customer preference, making profit, promotional schemes, and at last to the credit period.
The mechanics in the semi-urban areas also have given more priority to the quality. Next to that preference the making profit is given more priority. This followed by availability, brand name, promotional schemes, customer preference, and at last to the credit period. One of the main differences between urban and semi-urban areas and semi-urban areas is the profit margin factor, In urban areas the profit margin is more prioritized than quality. But the quality is given more priority than price factor in semi-urban areas.
6) Have you purchased Lucas-TVS filters?
Dealers Yes NoUrban 15 35
Semi-Urban 0 25
Purchase of Lucas-TVS filters by dealers
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Yes No0
5
10
15
20
25
30
35
30%
70%
0%
100%
Urban Semi-Urban
Purchase of Lucas-TVS filters by dealers
Inference
From the above figure we can recognize that the purchasing of the filters by dealers in both urban and semi-urban is very low. In urban areas low usage is mainly because of very less customer preference given to the particular product. Another main reason for this reduced percentage of purchase is the fear of inventory being created if there is no customer preference towards the product. In the semi-urban areas the purchasing of the product is NIL, because of lack of awareness about the product.
Mechanic Yes NoUrban 15 35
Semi-Urban 0 25
Purchase of Lucas-TVS filters by mechanic
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Yes No0
10
20
30
40
50
60
70
80
20%
80%
0%
100%
Urban Semi-Urban
Purchase of Lucas-TVS filters by mechanic
Inference
The above graph shows that the purchasing of filters in Lucas-TVS in urban is just 20% and NIL in semi-urban. The reason for this lower percentage of purchase by mechanics in urban areas is mainly due to lack of awareness of the product. Another main reason is the unavailability of the product in most of the retailer shops. Some of the mechanics also fear about the duplicity of the same product available in the market. The reason for Zero% purchase in semi-urban areas is mainly due to lack of awareness and also the availability of the product is NIL.
7) What is your opinion about usage of Lucas-TVS filters?
URBAN
Dealers
Q- Quality
FM- Fast Moving
Mechanics
Q FM P Av PF Q EF F/A Av Aw
2 4 3 2 3 3 2 2 4 5
2 5 3 1 3 2 2 3 5 5
3 5 3 2 3 3 2 3 4 5
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P- Packaging
Av- Availability
PF- Price Factor
EF- Ease to fit
F/A- Finish/Appearance
Aw- Awareness
Opinion:
1- Very Good
5- Worst
2 5 3 1 3 2 2 3 4 5
2 5 3 1 3 3 2 3 4 5
2 4 3 2 3 2 2 3 5 5
2 5 3 1 3 3 2 2 4 5
2 5 3 1 3 2 2 3 4 5
3 5 3 2 3 3 2 3 5 5
2 3 3 2 3 2 2 3 4 5
2 5 3 1 3 3 2 2 4 5
2 4 3 2 3 3 2 3 4 5
3 5 3 2 3 2 2 3 5 5
2 4 3 2 3 3 2 3 4 5
2 5 3 1 3 3 2 3 5 5
33 69 45 23 45 2 2 3 4 5
3 2 2 5 5
3 2 3 4 5
2 2 3 4 5
3 2 3 5 5
52 40 56 87 100
Opinion about the usage of filters (Table - 4)
The table 4 provides you the list of users who has purchased the Lucas-TVS filters. The users referred here are both dealers and mechanic. As per the survey only 15 dealers and 20 mechanics have purchased the product. So, their opinion is been figured by scaling method. We have used the scale of 5 to analyze the opinion about filter product.
Dealers
In urban areas 15 dealers have purchased the filters produced by Lucas-TVS. As per the opinion given by them in the scale of 5, we can see that availability factor has got the least counting (23). This depicts that the
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availability of the Lucas-TVS filter is almost very good. Next to the availability factor, we can find the quality factor has got the least counting. This infers that the opinion about the quality factor is good. The main factor that has to be noted here is the fast moving factor. This factor has got the maximum counting (69/75), which clearly indicates that it’s not preferred by most of the customer in urban areas.
Mechanic
In Urban areas 20 mechanics have purchased and used the filters produced by Lucas-TVS. As per the opinion given by them in the scale of 5, we can see that Ease of fit factor has got the least counting (40). This indicates that they don’t find any problem in fixing the filters in vehicle. Next to the availability factor, we can find the quality factor has got the least counting. This infers that the opinion about the quality factor is good. The main factors that have to be noted here are the awareness and availability factor. These factors have got the maximum counting (100, 87), which clearly indicates that it lacks awareness and availability at shops in urban areas.
Inference
According to the opinion given by the dealers and mechanic from the urban areas, we can infer that the awareness factor to the end user is very worst. Because of this reason the customer performance towards the product will be very less. Since there is no much of customer preference the dealers are afraid of inventory being created in future. This is one of the important factors that have to be noted and rectified as soon as possible by increasing the awareness to the end users/mechanic.
8) What type of promotional activity would you prefer for Lucas-TVS?
Dealers Providing Discounts
Cupons or Points
Inc.Profit Margin
No Need Others
Urban 15 35 10Semi-Urban
23 5 2
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Promotional activities for Lucas-TVS dealers
Providing Discounts
Coupons or Points
Inc. Profit Margin
No Need Others0
5
10
15
20
25
30
35
30%
70%
20%
92%
20%
8%
Urban Semi-Urban
Promotional activities for Lucas-TVS dealers
Inference
As per the above figure, the dealer in urban areas mainly suggests to increase their profit margin in the sales of filters. The suggestion by dealers in urban areas is 70%. But the suggestion for increasing profit is only 20% in the semi-urban areas. But the suggestion for providing cupons or points to mechanic gains the major percentage in semi-urban areas with 92%.
Mechanic Providing Discounts
Cupons or Points
Inc.Profit Margin
No Need Others
Urban 76 20 4Semi-Urban
47 3 0
Promotional activity for Lucas-TVS by mechanics
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Providing Discounts
Coupons or Points
Inc. Profit Margin
No Need Others0
10
20
30
40
50
60
70
80
76%
20%
4%
94%
6%0%
Urban Semi-Urban
Promotional activity for Lucas-TVS by mechanics
Inference
As per the above graph, the mechanic in both urban and semi-urban areas maily suggests to provide cupons or points during the sales of filters. The suggestion for providing cupons in semi-urban areas is 94% and urban constitutes of 76%. Some mechanic who provides the authorized service doesn’t require any sorts of promotional activity for increasing the sales. Some of the mechanic gave other ideas like providing gifts according to their purchasing power per month.
9) Provide your ranking for Lucas-TVS based on its filter products?
Dealers Excellent Good Fair PoorUrban 14 36
Semi-Urban 0 25
Dealers ranking based on filter products
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Excellent Good Fair Poor0
5
10
15
20
25
30
35
40
70%
20%
20%
6%
Urban Semi-Urban
Dealers ranking based on filter products
Inference
According to the figure we can infer that 72% in urban areas and 100% in semi-urban gave the ranking as poor. This is purely because of the awareness created among the customers is very low. The awareness created in the urban areas also constitute to some regular customers for the purpose of their sales. This clearly indicates that some advertisement strategy should be adopted by some means for creating proper awareness.
Mechanic Excellent Good Fair PoorUrban 16 84
Semi-Urban 0 50
Mechanics ranking based on filters products
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Excellent Good Fair Poor0
10
20
30
40
50
60
70
80
90
16%
84%
0%
100%
Urban Semi-Urban
Mechanics ranking based on filters products
Inference
The above figure depicts that only 16% of the mechanic in urban areas has voted fair for providing the ranking for filters produced by Lucas-TVS. This is mainly because of the lack of availability in all the shops and also because of awareness created for the product is very low towards the end customers. Also the ranking given by 100% of mechanic in semi-urban areas is poor. This is purely due to lack of awareness about the product to both dealers and end customers.
10) Provide your valuable opinions for Lucas-TVS to improve its sales in filters product?
Dealers Inc.Awareness Inc. Avail
C or P
Inc. Prof. Mar
Proper Relationship
Others
Urban 50 29 15 6 5
Semi-Urban
25 18 4 0 3
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Dealers opinion to improve the sales of filters
05
101520253035404550
100%
58%
30%
12% 10%
100%
72%
16%0%
12%
Urban Semi-Urban
Dealers opinion to improve the sales of filters
Inference
According to the graph we can clearly infer that the first and foremost thing that has to be done is increasing awareness about the product to the end users/mechanic. Next to that, they have to provide some kind of coupons or points for mechanic for improving their sales in this competitive market. The company has to mainly take care of these two things in order to capture the market and increase their sales.
Mechanics
Inc.Awareness Inc. Avail
C or P
Inc. Prof. Mar
Proper Relationship
Others
Urban 89 63 19
Semi-Urban
50 33 44
Mechanics opinion to improve sales of filters
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0102030405060708090
89%
63%
19%
100%
66%
88%
Urban Semi-Urban
Mechanics opinion to improve sales of filters
Inference
From the above figure we can clearly infer that the first and foremost thinh that has to be done is increasing awareness about the product to the end users/mechanic. Next to that they have to provide some kind of assurance about the availability of the products. But cupons or points for mechanic has to be provided for improving their sales in this competitive market. The company has to mainly take care of all the three things in order to capture the market in both urban and semi-urban and increase their sales.
11) How often the company representative visit you?
Dealers Once in a month
When Needed
Never Others
Urban 41 9Semi-Urban 0 25
Visiting of dealers by company representativePage | 51
Once in a month When Needed Never Others0
5
10
15
20
25
30
35
40
4582%
18%
0%
100%
Urban Semi-Urban
Visiting of dealers by company representative
Inference
The figure depicts that the company representative have never visited the semi-urban areas and even in the urban areas they have visited only when they need to increase their sales. This clearly indicates that there is no proper relationship being maintained between the company and dealers. Because of this perception a negative impression is being created on the company.
Mechanics Once in a month
When Needed
Never Others
Urban 74 26Semi-Urban 0 50
Visiting of mechanics by company representative
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Once in a month When Needed Never Others0
10
20
30
40
50
60
70
8074%
26%
0%
100%
Urban Semi-Urban
Visiting of mechanics by company representative
Inference
The above figure depicts that the company representative have never visited the semi-urban areas and even in the urban areas they visited only 74% of the customers when need to increase their sales. This clearly indicates that there is no proper relationship being maintained between the company and mechanics in both urban and semi-urban areas. Because of this perception a negative impression is being created on the company.
Significance Test
Significance test has to be done to check whether there is any significant difference in the opinion given by the people during the survey. Here, I am using independent T-Test for checking whether there is any significant difference in the opinions between urban and semi-urban areas.
T-Test
The t test is a statistics test generally used to determine whether the means of two populations are different. In the test, at Value is calculated based upon the difference in the means and variances of samples drawn from each of two
Page | 53
populations. This t value is then compared to a critical t value, which is based upon your required level of certainty (perhaps you need to be at least 95% certain of the outcome) and the degrees of freedom present in the test. If the t value is greater than the critical t value, you can sate that the 2 means are different, within your required degree of certainty.
1) By the independent t-test, we have to analyze whether there is any significant difference between urban and semi-urban areas in terms of making profit by mechanic during the purchase.
Null Hypothesis H0:
Ho: µ1=µ2
There is a no significant difference between urban and semi-urban areas in terms of making profit by mechanic during the purchase.
Alternate Hypothesis Ha:
Ha: µ1≠ µ2 (µ1 < µ2 or µ1 > µ2)
There is significant difference between urban and semi-urban areas in terms of making profit by mechanic during the purchase.
Place N Mean Std. Deviation Std. Error Mean
Making Profit Urban Semi-Urban
10050
4.671.84
.9431.057
.094
.149
Group Statics
From the table we can infer the mean value and standard deviation value between the two different groups being considered in independent T-test. The mean value for the urban areas in terms of making profit is 4.67 for the maximum possible value 7.
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Leven’s Test for Equality of
Variances
T-test for Equality of Means
95% confidence
Interval of the Difference
F Sig. T Df Sig. (2-
tailed)
Mean Difference
Std. Error Difference
Lower Upper
Making Equal variances Profit assumed
Equal variances not assumed
3.121 .079 16.632
16.013
148
88.849
.000
.000
2.830
2.830
.170
.177
2.494
2.479
3.166
3.181
Independent test in terms of making profit by mechanics
The table above shows us the output of the T-test. In this table, we get the significance value for checking the null hypothesis. As we took the level of confidence as 95%, the level of significance is 5%. Therefore if the significance value is less than 0.05 the null hypothesis is rejected. Else if the value exceeds 0.05 the null hypothesis is accepted. In the above table the significance value is 0.000 which is less than 0.05. This indicates to reject the null hypothesis and accept the alternative hypothesis.
2) By the independent T-test, we have to analyze whether there is any significant difference between urban and semi-urban areas in terms of seeking more profit margin by dealers during the purchase.
Null Hypothesis H0:
H0:µ1 = µ2
There is no significant difference between urban and semi-urban areas in terms of seeking more profit margins by dealers during the purchase.
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Alternate Hypothesis Ha:
Ha: µ1 ≠ µ2 (µ1< µ2 or µ1 > µ2)
There is significant difference between urban and semi-urban areas in terms of seeking more profit margins by dealers during the purchase.
Place N Mean Std. Deviation Std. Error Mean
Profit margin Urban
Semi-Urban
50
25
2.84
5.04
.738
.735
.104
.147
Group Statics
From the above table, we can infer the mean value and standard deviation value between the two different groups being considered in independent T-test. The mean value for the urban areas in terms of making profit is 2.84 and 5.04 in semi-urban areas for the maximum possible value 7.
Leven’s Test for Equality of Variances
T-test for Equality of Means
95% confidence Interval of the
Difference
F Sig. T Df Sig. (2-
tailed)
Mean Differenc
Std. Error Differenc
Lower Upper
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e e
Profit Margin
Equal variances assumed
Equal variances not
assumed
.388 .535 -12.182
-12.202
73
48.321
.000
.000
-2.200
-2.200
.181
.180
-2.560
-2.562
-1.840
-1.838
Independent test in terms of profit margin by dealers
The above table shows us the output of the T-test. In this table, we can get the significance value for checking the null hypothesis. As we took the level of confidence as 95%, the level of significance is 5%. Therefore if the significance value is less than 0.05 the null hypothesis is rejected. Else if the value exceeds 0.05 the null hypothesis is accepted. In the above table the significance value is 0.000 which is less than 0.05. this indicates to reject the null hypothesis and accept the alternative hypothesis.
Therefore we can infer that there is significant difference between urban and semi-urban areas in terms of seeking more profit margins by dealers during the purchase.
FINDINGS
The awareness about the filter product towards dealers is NIL in semi-
urban areas and it’s more than 80% in urban areas. Whereas the
awareness towards mechanics is NIL in semi-urban areas and it’s less
than 50% in urban areas.
As per the ranking method, the dealers both in urban and semi-urban
areas give more priority to customer preference which is followed by
availability of that product. Whereas the mechanics both in urban and
semi-urban areas give more priority to quality which is followed by
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availability of that product in urban areas and making profit in semi-
urban areas.
The T-Test has revealed that there is a significant difference between
urban and semi-urban areas in terms of making profit by mechanic
during the purchase.
The T-Test has revealed that there is significant difference between
urban and semi-urban areas in terms of seeking more profit margins by
dealers during the purchase.
Dealers in both urban and semi-urban areas insist to increase
awareness and provide coupons or points for increasing their sales,
whereas mechanics in urban and semi-urban areas feel that increasing
awareness, increasing availability and providing coupons is essential
for increasing their sales.
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RECOMMENDATIONS
Awareness has to be increased mainly to the end users/mechanic in both rural and semi-urban areas.
1. It can be created by arranging a meeting with all the mechanics and offering gifts or by umbrella campaign.
2. Banners can be placed in front of the retail shops for increasing the mind recalling capacity among the users.
3. Painting on the wall about the product will help in mind recalling among the end-users.
Prepaid Coupons can be provided initially to increase their sales in this competitive market.
Prepaid Coupons
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This is a kind of promotional activity where both the mechanic and dealers will get profit. In this activity, the company will reduce the coupon amount from MRP while selling products to dealers. Whereas the dealers will give the amount to their users only when they get back their coupons. Because of this activity the dealers will gain profit if the coupons are not being returned back to them by their users. This might prove to be one of the most efficient schemes that benefits both dealers and customers. This activity doesn’t need any separate department for maintenance as the activity gets completed between dealers and mechanics.
Availability has to be increased in all the shops for avoiding the mechanics from choosing some alternative brand.
1. At least one distributing centre should be established in each district in order to increase the availability.
2. Dealers have to be offered gifts regularly according to their level of purchase in order to increase the availability in their shops.
The company representative has to be sent at least once in six months to maintain proper relationship with dealers and mechanics.
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