J.K.Tyres Analysis

J.K.Tyres Analysis Executive summary A small, sincere and dedicated step towards the fulfillment of my responsibilities and duties ensured me a giant leap to accumulate knowledge and real life exposure to business during my summer training period. My first experience of corporate world started with big frame company J.K.Tyres, a division of J.K.Industries. The projects given to me deals with fitment trend, market share along with consumers perception for J.K.Tyres in truck tyres segment. The area allocated to me was Ghaziabad and Meerut and the time duration in which we completed our project was from 10th May to 24th June. The research, which was carried, was more of descriptive research thus had a planned way to proceed. For appropriate results data collection method is absolutely necessary, in this project I have to depend upon primary data, so keeping this in my mind I collected the data through a set of questionnaire and with the help of observation method to get the accurate data and time to time I made the summery of collected data so that all the datas are gathered at a single place. Personal interviews (with questionnaire) of the customer are taken in order to get their own independent views. I have taken a sample of 230 trucks for knowing the fitment trend and I have tried to cover the entire customer, in the process I met with 90 transporters. In data analysis part various statistical tools like pie bar charts are used for comparative study and convenience in understanding the data to make the data livelier COMPANY PROFILE â€Å"Excellence comes not from mere words or procedures. It comes from an urge to strive and deliver the best. Mindset that says, when it is good enough, improve it. It is a way of thinking that comes only from a power within.† H.S. SINGHANIA J.K.Tyres a division of JK industries is a flagship company under the umbrella of JK organization. The advent of JK organization on the industrial landscape of India almost synchronizes, with the beginning of an era of industrial awareness an endeavor for self-reliance and the setting of a dynamic Indian Industry. This was way back in the middle of the 19th century. And the rest that followed is history. VISION OF THE COMPANY To become the most admired company in India committed to excellence CORE VALUE JK organization has been a forerunner in the economic and social advancement of India. It always aimed at creating job opportunities for a multitude of countrymen and to provide high quality product. It has striven to make India self reliant by pioneering the production of a number of industrial and consumer products, by adopting the latest technology as well as developing its own know-how. It has also under taken industrial venture in several other countries. JK organization is an association of industrial and commercial companies and charitable trusts. Its member companies, employing nearly 50,000 persons are engaged in the manufacture of a variety of products and in diverse fields of commerce. Trusts are devoted to promoting industrial technical and medical research education religious values and providing better living and recreation facilities with the spirit of social consciousness uppermost in the minds of J.K. organization and thus it is committed to the cause of human development. Today J.K. organization, and association of industrial and commercial companies and charitable trusts, continues to grow to greater heights under the stewardship of its president, Shri Hari Shankar Singhania The principal business of JK organization includes tyre, paper, cement, drugs and pharmaceuticals, agri. Genetics, dairy and food products audio magnetic tapes, sugar, cosmetics, woolen textiles, steel, engineering, material handling system, etc. The group besides having a consistent record of growth and diversification has created a reputation for quality for all its products and most of its products enjoy a leadership status in their respective market segments. To cope up with the demand in the market most of the companies in JK organization are certified for international quality systems like ISO 9001,ISO 1401 and QS 9000. JK INDUSTRIES LTD. J.K. Industries is a merge corporate entity that is emblematic of excellence, diversification and pioneering new technologies. A part of J.K. Organization, which ranks among the top private groups in India. J.K. Industries is committed to self-reliance and follows an ethic that views customers satisfaction as an index of achievements. Over the years the company has expanded and diversified its business portfolio. It has developed into a multi product, multi-location corporate entity comprising of following business division. BACKGROUND Group companies Straw and JK Synthetic promoted JK Industries, which belong to Shri Laxmipaty Singhania faction of the J.K. GROUP, in 1951. It was initially engaged in managing agency business. Manufacturing activities began with commissioning of a 0.4mn tyres and tubes plant, in 1977 at Jaykaygarm, Rajasthan, in technical tie up with general tyre international Co., U.S.A, for manufacturer of nylon bias and radial tyres. JKI was the 1st domestic manufacturer of radial tyres. The capacity later increased to 0.625mn tyres. The Rajasthan plant labour problems in the past capacity utilization levels have been low. In 1981, a new factory was set up at Banmore, near Gwalior, M.P for the manufacturer of 0.6mn tyres, capacity has been gradually increased in both the plants and currently JKI has a combined capacity of 2.13mn tyres. In FY90, it set up JKI agri-genetics, to procedure, process and distributes hybrid and high yielding seeds of cereals, Oilseeds and pulses under the brand name of J.K. Seeds. In FY91, it set up J K Pharmachem, a JV with TIDCO for the manufacture of Penciling. It has also set up a trading arm by the name of J K International, which deals in a range of goods including agro products, leather product, textiles and marine product. In FY12/96, the companys pharmaceutical business was restructured and hived off to JK Pharmaceuticals Ltd INTRODUCTION ABOUT TYRES Tyre is an indispensable part of our vehicle and need to be chosen and looked after with care. The wheel was invented over 20,000 years ago. Early wheels were usually made from wood and as these were not flexible, the ride was extremely hard. In 1939, CHARLES GOODYEAR discovered the culcatisation process, which gave rubber its elastic properties. In 1845, R.W. THOMPSON filed a patent for elastic; air filled belt of rubber rises fabric and leather. He had great hopes of his invention becoming successful, but nobody was convinced that one could ride on air; Thompson was sadly forced to abandon his ideas. In 1888, JHON BOYD DUNLOP reinvented the pneumatic tyre and filed a patent claiming easy operation over rough roads, immunity from vibration and increased speed of vehicle. Over the year, several methods were tried to keep the inflated pneumatic tyre fixed to the wheel. By the 1920s most tyre had steel wire beading, which allowed a tyre to remain firmly fitted to the wheel rim. Development was slow and the early tyre led a troubled life, some of the common problems were punctures tread separation, cracking, tearing and even blowouts. Since tyre lasted for only a couple of thousand kilometers, the cost of replacement also account for a large part of expenses. Early tyres were mainly white because they took their colour from the reinforcing agent zinc oxide. It was not until carbon black was found to be the best reinforcing agent that tyre become black. In 1948, MICHELIN made a most significant contribution by introducing the radial tyre, which was to influence tyre design all over the world. Radials offered much superior grip but, the rede was harsh and they also had a tendency to lose grip suddenly once the limits of adhesion were crossed. In contrast, the cross-ply tyre lost its grip, in a gradual manner enabling the driver to take corrective action. Then a new generation of radial tyre evolved, in which the belts were made of rayon, which being more flexible, prevented sudden loss of grip. The evolution of the radial tyre brought about a lot of changes. For the first 60 years, the tyre industry had not been able to produce a tyre that fulfilled its long list of requirement. Good quality was achieved only at the cost of steering response; similarly extra grip resulted in faster wear and a shorter life. The radial tyre changed all this; its structure was such that each part of it could be designed independently. The tread, sidewalls, etc could have a separate construction and they could be made from different materials. New materials, rubbers compound, synthetic polymers, manufacturing methods, all have resulted in present day tyre becoming more reliable, durable, safer and almost maintenance free. In fact, modern day tyre are so good that most of us take these for granted and do not even bother giving them the 2nd look. However it is very important that we do know them better. THE ORIGIN OF WHEEL Wealthy gentlemen pushing himself through 1820s London on a hobbyhorse would have used his muscles just as efficiently as a courier dodging todays traffic on a mountain bike. The story of bicycle technology has been one of going faster for the same effort, researchers have found. Alberto Minetti, of Manchester Metropolitan University, and colleagues have been looking at the work needed to propel different bicycles of different speeds. The bicycles ranged from the hobby horse an expensive toy from the 1820s which riders kicked along with their legs, velocipedes with pedals fixed to the front wheel, through to chain- driven cycle of the 1880s that look much like todays. The main benefit of cycling as opposed to running or walking, the researchers found, is that the riders limbs no longer bear his or her weight, and so their efforts can be devoted to propulsion. Even the hobbyhorse takes two-thirds of the weight off the legs, and allows the rider to go twice as fast as a walker for the same amount of energy. All the bicycles tested were equally efficient at turning their riders muscle power in motion. This came as a shock -â€Å" we were convinced that the efficiency would have increased † as bicycle design improved, says Minetti. â€Å" But muscles were always used at there maximum efficiency.† What ha changed is the speed at which efficiency peaks. The problem with early bicycles, says Robert McNeill Alexander, a biomechanics researcher at the university of Leeds, was that â€Å" to go to reasonable speeds you had to move the pedals very fast â€Å"; leg muscles do not perform well at such high speeds. One solution was the high-wheeler, or penny-farthing, whose all-metal frame, gigantic front wheel; rubber tyres and long springy spokes give a fast and comfortable ride. Safety problems made this bicycle an evolutionary dead end. â€Å" My father used to tell me alarming stories about falling off them † says McNeill Alexander Minettis team found that the ‘safety bikes that superseded the penny-farthing actually needed more work to drive them forward. Their smaller wheels generated a higher resistance with the ground and their primitive chains demanded a lot of legwork. The subsequent invention of pneumatic tyres dramatically reduced the resistance against the road; modern cyclists expand most of their energy battling the wind. One consequence of this study could be come back for the hobbyhorse, says cycle historian John Pinkerton, one of the studys co-authors. â€Å" The hobby horse would be ideal for getting people who would have knee or hip operations back on their feet,† says Pinkerton. The researchers are currently negotiating with hospitals about this possibility. TASKS OF A TYRE A tyre has several roles to play. Its job is to absorb shocks and provide sufficient grip, respond quickly to steering inputs, and work in tandem with the brakes to bring the vehicle to a safe stop in the shortest possible distance. A tyre should have minimum rolling resistance to prevent any strain on the engine, so as to affect either speed or fuel economy. It must also run silently and keep road noise to the minimum. It must have a slow and even rate of wear and be resistance to the effects of sunlight, fuel, debris and other hazards it encounters on the roads. A tyre should be able to perform in all conditions and on all kinds of terrain. A tyre to be good looking and surveys shows that this is one must be string and capable of withstanding heavy loads and a variety of abuse such as hitting kerbed, drivers, etc. Tyres are also expected to influencing factors in the final choice made by the customers. WHAT ARE ENVIRONMENT FRIENDLY TYRES? The JK Tyre, being the pioneers of radial technology in India, have taken the lead on all technological aspects to give you the very best. The eco-friendly range of green tyres is one such step in that direction. The manufacturing of these tyres requires state- of- the- art compound development and research facility. These environment friendly tyres are obtained by using special rubber compounding technology. The silica is used instead of carbon black -one of the key ingredients a normal tyre, which is not eco-friendly. The eco-friendly range of tyre help to improve tyre performance, provide better fuel efficiency than normal radial tyres even offer the benefit of low rolling resistance. In fact the JK Tyre range of eco-friendly tyres do not require any special treatment for their maintenance. All one has to do is to wash tyre periodically with mild soap solution to remove dust and mud that might subdue the colour. Advantage of eco-friendly tyres:  · Superior handling and cornering at high speeds  · Optimized tyre life  · Better dry and wet traction  · Silica-based compound for better fuel efficiency  · Reduced rolling resistance  · Less carbon black MAIN COMPETITORS IN THE MARKET SR. NO. COMPANY NAME 1. M.R.F. 2. APOLLO 3. CEAT 4. BIRLA 5. CHINESE (VIVA) JK TYRE Ever since its inception it has been JK Tyres belief in the value of technological superiority that has made it grow by leaps and bounds. This division produces and sells Light Commercial vehicles, Multi Utility Vehicles and Tractors. The company pioneered Steel Radial Technology in India in 1977 and continues be the industry leader in the industry leader in the Radial segment in India. KJ Tyre is the only Tyre Manufacturer in the country to produce high performance â€Å"T† â€Å"H† -rated steel radial tyres. JK Tyre has consciously followed a policy of continuously modernizing and expanding its tyre manufacturing facilities to retain its edge in the market place. Our customer base covers virtually the entire original Equipment Manufacturers (OEMs) in India together with Replacement market for four wheeler vehicles, Defence and State Transport Units. Besides India, we have a worldwide base in over 45 countries across all 6 continents. To keep pace with the market demand as well as technological leadership in Indian market, J.K. Industries acquired Vikrant Tyres Limited, Mysore in 1997.J.K.Industries and Vikrant Tyre limited are the only tyre companies in India to have received all three ISO 9001, QS 9000 and ISO 14001 certificates. This indeed is a true reflection of our commitments to system-oriented approach. Technical collaboration with M/S Continental AG, Germany, which is among the top five technical tyre manufacturers in the world to keep pace with latest technological developments. To stay at the forefront of technological advancements a state of art Research Industries Development center, Hari Shankar Singhania Elastomer and Tyre Research Institute (HASETRI) was set up, which remains the nerve center for providing cutting edge technology. In a short span of time it has emerged as the 17th largest tyre manufacturer in the world an achievement in itself. BEYOND BUSINESS Identifying with social issues and contribution to the society has been a philosophy, which has been carried on from the founding fathers. Various institutions set up by the group throughout India in diverse fields of social welfare stand testimony to this philosophy. Involved with the diverse array of medical and health services, the organization has set up a number of pioneering institutes all over country including super specialty Pushpawati research institutes, New Delhi for liver, renal and digestive diseases, the first of its kind in India. JK Tyre attaches tremendous value to RD in its efforts to maintain the high quality of its products and lead the field in innovation. HASETRI, a world-class research and development center is a symbol of this. The Hari Shankar Singhania Elastomer Tyre Research Institute (HASETRI) is the very 1st of its kind in India. Established in October 1991, HASETRI has already been recognized under SIRO (scientific and industrial research organization) by the department of scientific and industrial research (SDIR), Govt. of India. And has been acknowledged by the Indian institute of technology (IIT) and other universities for registration leading to higher studies. HASETRI fulfills the research requirements for services related to elastomer and tyre industry. PLANT LOCATION: With three plants located in Rajasthan, Madhyapradesh and Karnataka, JK tyre is the largest manufacturer of truck and bus tyre in India. The truck and bus producer accounts for nearly 74% of total tyre business in India, thus giving JK Tyre an undisputed position. Additionally, JK Tyre is the only manufacturer of truck/bus steel radial tyre, and the second largest manufacturer of 4-wheeler tyre in the country. Also JK Tyre is the largest exported tyre brand form India. It enjoys preferred premium brand status in truck bias market in USA and across many markets in Africa, Middle East and East Asia. NEW TYRE LAUNCH: During the year, the company introduced â€Å" tanker lug † and â€Å" jet haul † in the truck and bus tyre segment. In the truck tyre category â€Å"WL-407† has been launched and developed for a specific target for new car models. JKI also became the 1st tyre company to introduce jeep radial tyres. The company has a 3,500 strong dealer network nation wide. In order to increase its retail push, the company has introduced an innovative â€Å"dial a tyre† scheme. Under this scheme mobile vans are at hand to set right problems arising wheels. STEEL WHEELS: The ever-growing steel wheelers chain continues to provide cutting edge service to the customer and is a vital last mile interface problem. Several milestones have been crossed during the past year as a part of the network expansion programmes. Some of them are 1st installation of the 3D Alignment equipment at a company franchised in India to service the vehicles. INTRODUCTION JK Tyre is one of the leading domestic tyre producers and pioneer in radial tyres in India. JK Tyre has a presence in truck bus passengers cars and tractor tyre segments. My project, which was given to me, is concerned with consumers behavior, market share and fitment trend of JK Tyre in truck segment at Meerut and Ghaziabad. To understand the project it is necessary to know about trucks and tyre specifications, which are filled in their vehicle. Basically here are two types of truck: 1) 6 Wheeler 2) 10 Wheeler The examples of trucks are: TATA 1210 TATA 1613 TATA 1612 Companies like Apollo, Birla, Ceat, MRF some local players among with JK Tyre have their presence in the market in the corresponding segment. The range of JK companies of super JK, Track King, Jet miles, Jet Rib, Jet King, Jet Track 39,Jet track 39 DLX, JK DX (Rear) The tyre sizes, which are filled in these vehicles, are 90.0-20 PR16 OR PR18 for both front and rear tyres. PRODUCT PROFILE Jet Rib (front Tyre): Features Benefits  · Aggressive 5-Rib pattern for easy steering  · Computer designed to ensure uniform tread wearing.  · Sides designed to ensure uniform tread wearing.  · Strong casing for dimensional stability, longer life and better casing value.  · Dual compound tread to ensure structural stability and high mileage potential.  · The ultimate Rib tyre for maximum mileage  · Offers best value for money.  · Higher retread ability JET TRACK (REAR TYRE) FEATURE AND BENEFITS:  · For load carrying light commercial vehicle.  · Time proven patterns-Reduces lug chips  · Use of specially compounded thread rubber for cooler running and more mileage  · Special bead construction to carry heavy loads  · Special tread design for better handling  · Wider center Rib for higher initial mileage and read life Renders excellent service and clean casing fetches far better casing Value. RESEARCH METHODOLOGY Research Methodology is a systematized effort to gain new fact and knowledge. The peculiarity of a research lies in its design. First the aim and purpose of research has to be explored. The determination of research methodology is a most important part of it as one has to decide what technique should be adopted. The choice of technique depends upon the scope and the nature of market research. The determination of technique facilities the research program. Question arise which analysis is relevant information and consequently identifying and solving problems in the field of marketing. While dealing with project I have tried integrate all possible way to find out customer perception and fitment trend of our brand with the help of customer feedback and observation. RESEARCH PROCESS The market research process involves the number of interrelated activities that does not follow particular sequence and often requires few steps ahead. In the project I have carried out an independent survey for the comprehensive study of JK Tyres position in Truck Tyres segment by looking in different brands of tyres used by different customers with the help of fitment survey. I also carried out a survey by making a set questionnaire for consumers to know their perception about the tyre they are using and why do they prefer that brand. Through the questionnaire I came to know what consumer wants from our brand and what are the main reasons for using or not using out brand. RESEARCH DESIGN The research carried out is a descriptive research where the purpose is to ho through an intensive study of the perception of consumers about JK Truck Tyres. DESCRIPTIVE RESEARCH Descriptive research includes surveys and fact-finding enquiries of different kinds, to portray accurately the characteristics of particular individual, situation or a group. DESIGNING OF DATA COLLECTION In order to get the information I have to depend on the primary data, for that I have done 1) Finding market share 2) Fitment Survey 3) Consumer survey 4) The methods used for collecting data are; 1) Observation Method 2) Survey Method 3) Questionnaire 4) All the above stated methods were in order to get the data. To find the market share we have visited many transport companies, met with the transport owner and then observed more than 1600 fitments. In fitment survey observation method was used a set of questionnaire which has to be answered by observing the Truck Tyres itself. On the other hand method (With Questionnaire) was used for consumer contact Survey method was based on personal interview to collect detailed information from the customer. A suitable questionnaire was designed through people were comfortable in answering questionnaire was designed through were comfortable in answering questions orally rather than going through people were comfortable in answering questions orally rather than going through a questionnaire. SAMPLING DESIGN After deciding to carry out a field survey, its time for sample design .The survey was the mixture for both 1) Census Survey 2) Sample Survey For consumers contacts census techniques was used. I tried to cover almost all consumers. I have met with 90 customers who have truck vehicles. For the fitment survey it was not practically possible to cover the entire vehicle, hence sample of 230 trucks has been taken. SWOT ANALYSIS 1) Strength 2) Weakness 3) Opportunity 4) Threats STRENGTH 1) JK Tyre has a renowned name. 2) JK Tyre has one its own R D center â€Å"HASETRI† 3) A lot of quality awards are their associated with JK Tyre ISO 9001, ISO 14001 and ISO 9002 4) JK Tyre is Indias only tyre super brand. WEAKNESS 1) After sale service is good enough. 2) Schemes are not attractive. 3) Consumers perception is not strong regarding its performance. 4) Relation of dealers with customers is not good. OPPORTUNITY 1) Lot of potential in the Truck Tyre segment. 2) JK Tyre should try to concentrate on a single aspect of low cost tyre with good quality 3) More consumers awareness should be needed, as JK is one of the oldest tyre manufacturing companies, as new companies are more focused on advertising. 4) JK Tyre should try to capture its lost position by giving more advantages to its customer. THREATS 1) A good numbers of competitors are there in the tyre industry. 2) Tyre companies like Apollo and MRF are stressing on a single agenda, improving quality of tyres. 3) Apollo is totally concentrating on after sales service, while Ceat is concentrating on low price. 4) JK Tyres major competitors in the market like Apollo, MRF, Ceat and Birla are doing aggressive advertising and promoting their products FITMENT TREND OF TRUCK TYRES Fitment survey is conducted with the objective of knowing the position of different companies and their brands along with JK that are get fitted in the Truck tyres. The trend of the tyres are get fitted, company wise as well as Brand wise according to the Fitment Survey for both Front Rear are as follows: I have taken data of 230 trucks, these include 160 six wheelers and 70 ten wheelers. It means 460 front and 1200 Rear Fitment. COMPANY WISE FITMENT (IN FRONT TYRES) MEERUT Apollo: 29.12% JK: 14.10% Birla: 20.16% Ceat: 18.14% MRF: 10.08% OTHERS: 08.40% MEERUT Company wise front fitment: COMPANY WISE FITMENT (FRONT) MEERUT Apollo: 19.12% JK: 14.10% Birla: 20.16% Ceat: 18.14% MRF: 10.08% OTHERS: 08.40% MEERUT COMPANY WISE FITMENT (FRONT) COMPANY WISE FITMENT (IN FRONT TYRES) GHAZIABAD Apollo : 29.42 % JK : 20.16 % Birla : 10.44 % Ceat: 17.18 % MRF : 14.36 % OTHERS : 08.64 % Company wise front fitment Ghaziabad FRONT TYRES COMPANY WISE FITMENT (IN FRONT TYRES) GHAZIABAD Apollo : 29.42 % JK : 20.16 % Birla : 10.44 % Ceat : 17.18 % MRF : 14.36 % OTHERS : 08.64 % COMPANY WISE FITMENT (IN FRONT TYRES) BRAND WISE FITMENT (IN FRONT TYRES) MEERUT BRAND WISE FITMENT (IN FRONT TYRES) MEERUT BRAND WISE FITMENT (IN FRONT TYRES) MEERUT BRAND WISE FITMENT (IN FRONT TYRES) GHAZIABAD KZ-77R 12 AMAR 64 AT-RIB 1 XT-7 8 JET TRAK 5 JET RIB 1 TRAK KING 22 FLEET KING 14 SUPER TRAK KING 1 BT-339 10 BT-369 4 ROAD MILER 4 SUPER MILER XB 15