project on eicher motors

. INTERNATIONAL SCHOOL OF INFORMATICS AND MANAGEMENT A CONTEMPORARORY REPORT ON “Market Mapping of EICHER Trucks & Buses”

Submitted in the partial fulfilment for the Award of the degree of Master of Business Administration

2012-2014

Submitted to:Submitted by:DR. SUMEDHA SHANDILYA VINAY KHATRI 1

ASSO. PROFESSOR, ISIM MBA/12/2331

2

Acknowledgement I express my sincere thanks to my project guide Mr. Sandeep Vyas .I sincerely acknowledge him/her/them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he/she/they had provided to me with all stages of this project.

Vinay Khatri

3

TABLE OF CONTENTS TOPIC

1.

PG NO.

INTRODUCTION

-

INDIAN AUTOMOBILE INDUSTRY

4

2.

EICHER LTD.

-

COMPANY OVERVIEW

7

3.

EICHER MOTORS LTD.

-

COMPANY PROFILE

9

4.

VOLVO EICHER COMMERCIAL VECHILE LTD - OVERVIEW AND PROFILE

31

5.

MARKET MAPPING OF EICHER TRUCKS AND BUSES

38

6.

1.

1.MARKET SEGMANTATION

56

2.

2.TARGET MARKET SURVAY

57

3.

3. CUSTOMER FEEDBACK

59

4.PRESENTATION OF ANALYSED DATA

60

BIBLOGRAPHY

72

4

INTRODUCTION Indian Automobile Industry India is an emerging country with huge potential. The domestic economy is now growing at around 8-9% per annum and India’s importance in global terms is being reinforced by rapidly rising exports and domestic consumption. At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark. The automotive industry is at the centre of India’s new global dynamic. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available. Manufacturer’s product lines are being continually expanded, as is the local automotive manufacturing base. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing centre that offers the global automotive industry solution high up the automotive value chain.  India eyes 25 million automotive jobs.  India's GDP is set to double over the next decade  In percentage terms, the automotive industry's contribution should also double. In dollar terms, the sector's contribution is set to quadruple to some $145bn With the world’s second largest and fastest-growing population, there is no denying India’s potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a well-developed components industry and a production level of 1 million fourwheeled vehicles a year, plus a further 5 million two- and three-wheelers. The automotive industry in India grew at a computed annual growth rate (CAGR) of 11.5 percent over the past five years, the Economic Survey 2011-12 tabled in parliament on 2nd July’10 said. The industry has a strong multiplier effect on the economy due to its deep forward and backward linkages with several key segments of the economy, a finance ministry statement said. The automobile industry, which was plagued by the economic downturn amidst a credit crisis, managed a growth of 5

0.7 percent in 2011-12 with passenger car sales registering 1.31 percent growth while the commercial vehicles segment slumped 21.7 percent. Indian Automobile industry can be divided into three segments i.e. two wheeler, three wheeler &four wheeler segment. The domestic two-wheeler market is dominated by Indian as well as foreign players such as Hero Honda, Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc. Maruti Udyog and Tata Motors are the leading passenger car manufacturers in the country. And India is considered as strategic market by Suzuki, Yamaha, etc. Commercial Vehicle market is catered by players like EICHER Motors, Ashok Leyland, Volvo, Force Motors, Tata Motors etc.  Key Facts: • India ranks 12th in the list of the worlds top 15 automakers • Contributes 5% to the GDP • Production of four wheelers in India has increased from 9.3 lakh units in 2003-04 to 88 lakh units in 20011-12 • Targeted to be of $ 145 Billion by 2016 • Exports increased from 88,000 units in 2002-03 to 5,80,000 units in 2011-12 Market share

Market share of Light commercial vehicles in India.

6

Market share of Medium and Heavy Commercial Vehicles in India.

7

Eicher Motors

Company Overview Eicher Motors Limited is an India-based company engaged in the business of automobile products and related components. The Company’s product range includes commercial vehicles (Eicher and Volvo trucks), motorcycles, and components, including gears and engineering solutions. The Company operates in the leisure cruiser segment with engine capacity of 350 circuit current and above. During the year ended December 31, 2009, the Company sold 51,955 motorcycles .In 2009, the Company introduced Classic bike in the two categories of 350cc and 500cc. The Classic bikes are powered by a single cylinder 500 cc unit construction engine (UCE) supported by electronic fuel injection (EFI). The UCE has an integrated assembly for the engine, gear box and clutch to reduce friction. Eicher Motors' subsidiaries include VE Commercial Vehicles Limited, Eicher Engineering Solutions, Inc., Hoff Automotive Design Company and Hoff Technology Service Company. Eicher Motors operates in three segments: Commercial Vehicles, Two Wheelers, and Components of engineering products, as well as in the publication of city map and travel guides. Its commercial vehicle plant is located at Dhar, MP. The company manufactures motorcycles at a plant at Thiruvottiyur, TN, promoted under the brand Royal Enfield. The company’s engineering component plants - located at Gurgaon, Haryana and Dewas, MP - manufacture gears, gear boxes, and other components The company is also involved in management consultancy services and customized. It has a joint venture agreement with Volvo AB. The company has a strong network of 142 dealers distributed across India. Eicher Motors is present in over 40 countries across the world. Most of the exports are to South Asia, West Asia, and African countries

8

9

EICHER COMPANY PROFILE Of EICHER

10

AN OVERVIEW Eicher began its business operations in 1959 with the roll out of India's first tractor. Today the Eicher Group is a significant player in the Indian automobile industry with a gross sales turnover of over Rs. 13,700 million in the year 2002-03. The Eicher Group has diversified business interests in manufacturing & marketing of Tractors, Commercial Vehicles, Automotive Gears, Motorcycles, and exports of vehicles, aggregates and components. Eicher has also invested in the potential growth areas of Management Consultancy Services. The activities of the Group are divided into the following business units covering all the business interests.

EICHER LIMITED Subsidiary Companies

Products

 EICHER MOTORS LIMITED

-

Commercial Vehicles

 EICHER TRACTORS

-

Tractors

 ROYAL ENFIELD

-

Motorcycles

 EICHER DEMM

-

Gears

 EICHER INTERNATIONAL LTD

-

Exports

 ECS LTD.

–

Management Consultancy

 GOOD EAREH PUBLICATIONS Guides

11

-

City Maps, Travels

EICHER MOTORS LIMITED Eicher Motors Limited (EML) was incorporated in 1982 and introduced its first product, the Canter, a 6 ton GVW truck manufactured at its state of the art plant at Pithampur, Indore in collaboration with Mitsubishi Motors Corporation, Japan, in 1986. The maiden offering soon created a strong customer base for itself. From a single 6 Ton GVW truck in 1986, our range today extends from 5T to 16T GVW trucks and the Skyline and Voila range of Buses. All our products can be offered in BS II compatible options. We also have arguably the best CNG technology in the world in our CNG Buses. Pioneering the concept of Built Up vehicles in the country, we make products that consistently deliver high value to our customers and are increasingly becoming the preferred option for all CV users, not only in India but overseas too. Eicher CVs today have significant presence in more than 20 countries across the world. In India, Eicher Motors has consistently outperformed the industry in terms of growth and currently holds over 30% market share in the 6T-11T GVW segments. In the 9T GVW segment, Eicher Motors continues to be the leader with more than 50% market share. Our well-equipped workshops result in faster turnaround of service. A network of more than 4500 Eicher trained private mechanics, over 133 authorized sales and service centres, and easy availability of genuine parts across more than 300 authorized spares outlets means less downtime and increased opportunities for our customers to earn. Eicher Motors is now poised to further consolidate its position in the CV industry by entering into the Medium & Heavy Commercial Vehicle segments. Strategic plans are in place to ensure necessary investments in technology and training to constantly sharpen our development and manufacturing edge. EML is totally committed to fulfilling the vision of being one of the top 3 CV manufacturers in the country by giving customers what they want: vehicles that are safe, fuel efficient, easy to maintain, enhance driver comfort and in turn productivity. Vehicles that deliver value by providing low cost of ownership and increased profitability to our customers. Eicher has over 5000 employees located in 10 manufacturing facilities and 24 marketing offices all around the country. The Group has around 950 vendors 12

supplying components and sub-assemblies which testify to the strength of the vendor base. The Group's products are brought to the customer through its network of around 800 dealers distributed across the length and breadth of the country .  

 THE EML ADVANTAGE -Technological Expertise -Extensive Network -Customized Applications -Efficient cost of ownership -Exports -Vehicle Financing Technological Expertise EML products are manufactured at the Company's plant in Pithampur, near Indore, Madhya Pradesh, India. The company has absorbed the technology and has successfully indigenised the vehicles. To ensure that we continue to create products that offer unique advantages and benefits to our customers, Eicher Motors Limited has set up a Product Development group, consisting of competent engineers. The team has developed several successful vehicles and variants, an achievement made possible by the use of the latest Computer Aided Design and Computer Aided Engineering (CADCAE) software like NASTRAN and FEM analysis packages.

Extensive Network Eicher Motors Limited provides its customers the benefit of an extensive sales and service network, customised solutions and an efficient cost of ownership. Our manufacturing capabilities are backed by a sales and service network of over 133 EML authorised sales & service centers and more than 300 authorised spares outlets. The three-tier service network consists of: • Authorised distributors in metros and cities. • 133 Authorised Service Centre's. • Over 4500 company trained private mechanics. 13

Service highlights: • Eicher Genuine Spares - available across all Eicher dealerships, service centres, spares distributors, satellite service outlets and retail outlets.300 authorized spares outlets throughout the country. • •

A strong and wide dealer network Grass-root level penetration through training to popular local

• •

currently numbering over 4500 nationwide. Fully equipped modern workshops for fast and experienced service. Driver-Safety training programmes for drivers of corporate and institutional

• •

customers. Free vehicle check-up camps, organised regionally. A Comprehensive Service Audit System, which oversees the physical

mechanics,

infrastructure, ensures understanding and compliance with the system and provides training and technical updates.

Customized Applications Eicher specializes in offering ready-to-use custom-built application vehicles to suit customer needs, in addition to the normal range of vehicles. Adaptation of product specifications to suit local regulations and norms is an integral part of the process. All Eicher exports to the Middle East meet Gulf Council Countries(GCC) specifications,

have

power

steering

and

air-conditioned

cabins.

A

breakthrough in our record as solution providers came when Eicher developed a cargo deck of a composite material of Wood and Steel, called Met wood. Met wood is lighter and more elegant, and vehicles fitted with these have more load capacity and yield higher fuel efficiency. We also specially manufacture Commuter and Tourist Buses suited for African markets. Our Commuter buses are designed for larger passenger carrying capacities and to withstand tough road conditions. Efficient Cost of Ownership

14

Eicher vehicles not only prove to be safe but also a profitable business investment. This is a result of the engineering, maintenance and safety features built-into each Eicher vehicle. We call this the efficient cost of ownership of an Eicher vehicle. Some of the highlights are: • A Tilt able Cab for easy reach during routine and periodic service check-ups. • An Automated Exhaust Braking system that activates the brakes automatically on deceleration, allowing for more driver control. • A collapsible steering wheel. • Adjustable seats for ergonomic comfort, thus reducing road fatigue. • An aerodynamic design and a highly fuel efficient engine, that make it the most fuel efficient vehicle in its class. Exports Eicher Motors markets its range of Commercial Vehicles and customized applications to over 28 countries across the world. Vehicle Financing Eicher has arrangements with a number of key Non Banking Financial Companies and Financial Institutions to help our customers to avail finance for the purchase of vehicles. Eicher also provides customer finance through Auto Finance Company, a division of EML.

Eicher Motors Limited

15

EICHER COMMERCIAL VEHICLES

16

The Commercial vehicle division was established in 1986 in collaboration with Mitsubishi Motors Japan and is one of the leading manufacturers of commercial vehicles in India having capacity of manufacturing 38,000 Commercial vehicles. The Product range includes 5 ton, 7 ton, 9 ton, 11 ton, 16 ton & 25 ton GVW categories trucks, tipper, trailers; Bus range includes City buses, School bus, luxury coach, Intercity CWC, Nova 200; Ready-To-Use application vehicles - Around 85 RTU built vehicles to suit a diverse range of applications. The manufacturing plant equipped with state-of-art facilities with stringent quality control norms - practices like Kaizen, Just-in-time, TQM and TQC etc. and State of the art R&D set up helping the commercial vehicles unit to serve their customers better.

 Diagram showing diversifications in various fields by Eicher Motors Limited with their percentage and capital distribution.

EICHER’S CV BUSINESS Eicher is the third largest player in the Indian Commercial Vehicles market: – It leads in the LCV segment with 27% market share in domestic 5-12T cargo segment in FY 07.

17

– It is gaining momentum in the HCV segment with successful launch of 16T, 25T, Tipper and Passenger segments and 1.8% domestic cargo market share in FY 07 implying a growth of 32.9% in sales volume over FY 06. Eicher’s CV business is well positioned to tap the incumbent growth in the CV industry owing to its: –Established track record and stronghold in LCV segment –Strong brand equity, an established Marketing and Distribution Network and cost competitive R&D and manufacturing base providing a ready platform for foray in HCV segment. Eicher – the third largest player in the industry – is well set to leverage its dominant presence in LCV segment to gain significant market share in the fast growing HCV

Segment With the introduction of new products and upgrading of existing products across the range, Eicher poised for higher volumes. EICHER CV BUSINESS – AN OUTLOOK

Industry on Fast Track

18

• CV industry (5T & above) has grown by 25.4% with 355,761 vehicle s sold in FY 07 over last year. • Improving road infrastructure creating market opportunities for high performance products. Strong Position in LCV Segment • Strong position in LCV segment with market share of 27% in 5 -12T domestic cargo

segment. • Absence from Sub 5T category leaves significant room for further expanding the product portfolio. • Established track record and Brand Equity, recognized for superior product quality/specifications.

Ready Platform for Successful HCV Foray • Successfully launched 16T, 25T, Tipper and Passenger segments with an

indigenously designed product range. • Various success stories in segments and geographies, that would be replicated pan-India with expanding sales & marketing infrastructure and focused marketing push. • New products on the verge of being launched, providing significant opportunity to capture wider spectrum of the market and expanding customer segments. • Incumbent Brand Equity to facilitate successful foray into lucrative HCV market. Sales and Marketing Infrastructure • Strong dealer network in West, Central and South India • Strengthening the dealership network, primarily to increase geographical coverage • Sales & Marketing setup was historically more focused on LCV. Significant progress made to gear up the same to cater to HCV segment.

Low Cost Manufacturing and Product Development 19

• Established R&D infrastructure and proven skill set.

• Proven capability to develop new products in short timeframe and at minimal development cost, giving crucial time to market and cost advantage. • Constantly evolving supply chain management with robust supplier base. • Optimized manufacturing set-up with a good mix of “Make and Buy”.

Management and Engineering Skill Set • Qualified and motivated management with established track record of change

management, business integration and new product development. • Strong engineering and product development skills.

Product Range of Eicher Motors Ltd.  LEADING THE WAY TO Profitability Leveraging 25 years of local presence and international Partnerships to drive Modernization in the Indian transportation industry.

TrucksBuses

Special Applications

Non-Automotive Engines

The Eicher range of Buses & Chassis is a contemporary offering of superior vehicle performance with safety features, superior comfort and redefined styling. The range comprises of:

20

Buses Eicher Offers a wide range of options in the Buses. There are two range of Built up buses - Skyline & Starline with a seating capacity starting from 16 seater till 65 seater. As per the requirement of the customers, Eicher also offers a wide range of chassis starting from a 12 seater capacity till the 65 seater Capacity. Eicher buses are trusted by the customers for the best in class fuel efficiency. School Buses Eicher introduced “SKYLINE - The First Safe School Bus” in India, developed in association with IRTE (Institute of Road Traffic Education) in the year 1996, thereby pioneering the concept of School Bus. The school bus specific features have now become a norm in the industry. Apart from being safest the popular Skyline school bus is now available in enhanced features, superior aesthetics & increased passenger comfort.

21

\

Staff Buses Eicher Skyline has made staff commutation as comfortable as it can be. Aesthetic superiority, high passenger comfort & Economical performance has made this bus class apart. The faith of customers & industry is reflected with the fact that Skyline Executive was awarded with CV-Apollo Award 2010 for “LCV" Bus of the year.

22

City Buses The latest offering from Eicher - the Rear Engine Semi Low Floor (RESLF) bus has been developed in line with the guidelines laid down by the Ministry of Urban Development as applicable to Mass Urban Transportation needs. This offering has been received with lot of optimism & excitement by various State Transport Undertakings, City Administrations and Municipal Bodies across India. Eicher also offers a wide range of products in the Mini, Midi and Heavy buses for City Bus Deployment. The products have been designed to suit the frequent start-stop duty cycle of intra city operations.



Route Permit Buses Eicher Offers a wide range of chassis for Route permit (Stage Carriage) deployments. Eicher products are well suited for the unique requirement of the route permit application, which necessitates a frequent start-stop operation, overload and rugged usage.

Trucks Eicher manufactures a range of Haulage (5 T- 31T), Tipper (8T to 25T), Articulated Tractor (40 T) and Special Applications trucks. Eicher Trucks are built to deliver low ‘Total Cost-of-Ownership’. The Eicher haulage trucks’ range includes the E2 Plus series of 5T-13T Light & Medium Duty Trucks (LMD) – tagged as “Mileage KaBadshah” and VE Series of Fuel efficient Heavy Duty Trucks (HD) of 16T-31T. Designed for superior performance with better fuel economy, higher rated payload and faster turnaround these trucks have low operating cost and, high reliability leading to higher profits.

23

Tipper Eicher Terra series of 16T & 25T offer enhanced value to customers in areas which are critical to a tipper operating economics. The USP of Eicher Tippers is their better uptime and pulling power, stronger aggregates, and the ability to run more number of trips. Terra tippers offer enhanced benefits which accrues from the results of extensive research done by the company in the market understanding of the usage pattern and various duty cycle of its operation. The range makes a significant and positive effect on the operators’ productivity and profitability by offering better fuel economy.



Articulated Tractor Eicher 40.40 (Articulated Tractor) from the VE series is built to “Deliver More!” Fitted with Cummins Engine of 132.5 Kw, Max Torque of 650 Nm and the ET-80 gear box, the optimized power and torque benefits come along with the High Fuel Efficiency, stronger aggregates which offer high reliability and durability. The soft suspended

24

Cabin offers higher driving comfort which means faster turnaround and more trips

leading to higher revenues.

.

Special Applications Eicher produces an efficient range of Special Application trucks which have been envisioned and developed to suit the specific requirements of:

Special Applications Eicher produces an efficient range of Special Application Vehicles which are used as for various applications as Troop Carriers, Garbage Tippers, Water Containers, Mild Steel Container & Ambulances.

25

Eicher Ambulance is a state of art van with all facilities pertaining for an emergency medical vehicle. Vehicle is equipped with on board equipments not just for safe and swift transfer of patients but also for providing emergency medical aid.

Mild Steel Container Ready to use from day 1, Eicher MS container options are unique with respect to fine engineering design and flexibility requirements. Engineered design, Fine workmenship and rugged but light in weight are few features of Eicher containers offered with 18 months of warranty on container.

Troop Carrier Its about Determination and Conquering the spirit, Eicher vehicles deliver on these.

Water Tanker Low operating cost, efficient and durable water tankers. Fully built Water Tankers options available in 3.5 KL, 5KL, 6KL & 9KL

26

27

28

29

s

About Volvo Eicher collaboration 30

Company Profile:

-

VE COMMERCIAL VEHICLES manufactures a range of commercial vehicles with GVW of 5 to 11 tons. It has been outperforming the industry for the past six years. The sales growth in its LCV segment has been higher than that of the industry. In technical and financial collaboration with Mitsubishi Motors Corporation of Japan, EML started manufacturing the CANTER range of vehicles in 1986 at its plant at Pithampur in Central India. The plant is a "state-of-the-art" facility with an integrated capacity of around 20000 vehicles per annum.

Basic Information Company Name: Business Type: Eicher Sells: Eicher Buys: Address: Number of Employees: Year Established: Main Markets: . . Total Annual Sales Factory Information Management Certification: Contract Manufacturing:

VE Commercial Vehicles Ltd. (A Volvo Group and Eicher Motors joint venture) Manufacturer Gears, Gearbox, Transmission, Agriculture Gearbox, Planetary Gearbox, Axle, PTO Gearbox, Worm Gearbox forgings, Gear Cutters S.V.Road Above 1000 People 1971 1. South America 2. Eastern Asia 3. Southeast Asia . 4. Africa. 5. North America Above US$100 Million ISO 9001:2008 ISO/TS 16949 OEM Service Offered Design Service Offered Buyer

Overview 31

VE Commercial Vehicles Limited is a 50:50 joint venture between the Volvo Group (Volvo) and Eicher Motors Limited (EML). It is a partnership that brings together Global leadership in technology, quality, safety and environmental care, along with the deep knowledge and understanding of the Indian Commercial Vehicle (CV) market. VE Commercial Vehicles Ltd. (VECV) owes its inception to the compelling intent of driving modernization in commercial transportation, in India and other developing markets.

Key Facts VE Commercial Vehicles Limited (VECV) is a 50:50 joint venture between the Volvo Group and Eicher Motors Limited, and is headquartered at New Delhi. This joint venture came into effect in July 2008. VECV is a leading full-range commercial vehicle player in India. ETB, completed 25 years of operations in India in the month of June 2011. The first Eicher truck was rolled out from its manufacturing plant in Pithampur, Madhya Pradesh in 1986 and over the past 25 years, the products have got endorsement from happy customers of over 300,000 vehicles. Dec 2007: Signing of Letter of Intent Dec 2007: Signing of Letter of Intent Jan 2010: Launch of VE-series of Eicher HD trucks Jan 2010: Launch of VE-series of Eicher HD trucks

 Volvo Trucks India: Sales and after sales support of Volvo trucks in India: 32

Volvo Trucks in India is synonymous with the mining and the construction industries. They have been tried and tested for operations in extreme conditions, reliable and robust performance and maximum productivity. Over the years Volvo Trucks has built up an elite customer base having over 100 vehicles in their fleet operating at various mining sites across India. The customers vouch by the high reliability and productivity and have expanded business operations at a fast pace with quick return on investments. Being the customer’s best business partner, Volvo Trucks extend support to customers’ right through the life-cycle of the products with a wide network of service and parts centres and on site assistance. Eicher Trucks and Buses (ETB) has a strong presence in the L/MD segment with a dominant share in the 5T-12T truck segment. Eicher’s 21-69 seater buses have a growing presence in the LD school bus, staff and route-permit segments. ETB has also made strong inroads into heavy-duty trucks segment of 16T-40T with their “VE” series of Fuel Efficient heavy-duty trucks. Eicher Engineering Components (EEC), the automotive component division of VECV,came into existence in 1992. Eicher Engineering Solutions (EES) was set up in 1997, as a center of excellence to provide design, development and consulting expertise in the field of engineering services. It has two main business areas – EES Inc. (US) and EES Gurgaon (Delhi). The state-of-the-art plant in Pithampur has access to top line manufacturing processes which includes cab weld shop with robotic welding, CED paint shop, integrated testing facilities, 100% hot test facility for engines and a lean and scalable manufacturing set up. The plant has an annual production capacity of 48,000 units. In 2010, in a global first initiative, VECV announced an investment of 2,880MINR (million Indian rupees) in its Pithampur plant for the production and final assembly of the Volvo Group’s new global VE Powertrain.

The manufacturing set up in Thane houses state-of-the-art machines which include Gleason Conifex machines for straight bevel gear, Pfauter, Liebherr, Mitsubishi 33

(CNC) and Cleveland Hobbing machines, latest heat treatment facilities and CNC bore and Cylindrical grinding machines. The Plant in Dewas, Madhya Pradesh houses technologically advanced machines and equipment which includes a battery of Mitsubishi CNC Hobbing machines, fellow shaping machines, Reishauer Gear Grinder RZ400, Shaving Cutter Re-sharpening machine from Gleason Hurth, state-of-the-art Continuous Gas Carburising Furnace (from Aichelin) – fully PLC controlled with robotics for Press Quenching and PLC Controlled Sealed Quench Furnaces (with hot oil quenching for reduced distortions). VECV has over 3000 employees across its different divisions in India.

Vision & Mission Vision To be recognised as the industry leader driving modernization in commercial transportation in India and the developing world .

Mission VECV aims to continuously improve transportation efficiency in India and developing markets, thereby reducing logistics costs for goods and people – leading to higher enablement of specialization in manufacturing, agriculture and services, thereby increasing the nation’s economic activity and productivity. We choose to do this in a sustainable manner by having the safest, most durable and efficient products in the market; We care for our customers holistically by offering not just trucks and buses, but also the best service and soft products to enable him to be most profitable; We work with the driver community to enhance their productivity and overall working environment; We ensure a level of quality and innovation that will continue to set standards in the commercial transportation industry;

Going Forward VECV aims to emerge as an Industry leader in driving modernization in commercial 34

vehicle transportation in India and the developing world by bring about improvement in transport efficiencies. In the near course, VECV will strengthen each of its product brands as leaders in their respective segment

through innovative products and expansion of its existing

network spanning the geographical expanse of the country.

Company description VE Commercial Vehicles Limited owes its inception to the compelling intent of driving modernization in commercial transportation, in India and other developing markets. As a 5050 joint venture between the Volvo Group (Volvo) and Eicher Motors Limited (EML), VE Commercial Vehicles (VECV) incorporates unique abilities to be able to do so. The organization brings together global leadership in technology along with deep knowledge and experience of the Indian commercial vehicle (CV) market. As a company, VECV includes the complete range of Eichers commercial vehicles, components and engineering design businesses as well as the sales and distribution of Volvo trucks. Thus, each of its business units is already well-established and backed by a sizable customer base. VECVs portfolio of commercial vehicles includes two product brands with absolutely different market positions yet complementing segment synergies. Eicher Trucks & Buses have a wide offering in the mass market, 5T40T range while Volvo Trucks command a strong presence in the premium, high-performance, heavy duty segments from 25T49T. With a formidable presence in the existing light and medium duty segments, VECVs main focus is on increasing the penetration and market share of its heavy duty products. Thus, its investments in design, development, manufacturing, systems, distribution and services are largely oriented towards creating a stronger position in the heavy duty market. VECV is going all-out to gear itself in becoming a proactive solutions and service provider meeting all customer needs. This it will do by strengthening each of its product brands as leaders in their respective segments. In the near course, VECV will offer an even more innovative line-up of technologically advanced and ergonomically aesthetic products. Volvos widespread distribution network will 35

facilitate the export of these products to countries world over and will help VECV bolster its presence in more than 26 countries to where it currently exports. With an improved thrust on retail network development and after sales service, VECV will soon come to be recognized as a lean organization capable of setting new benchmarks in response times. It is important for VECV, that its growth must also have a positive influence on the industry it serves; ensuring that the industry becomes more efficient, environment friendly, offers safer products and manufactures products that are driver friendly. And this dictum of being the differentiator not only reflects in VECVs approach in the market place but also in its internal workplace moving it to becoming a preferred employer in the industry. VE Commercial Vehicles has over 4000 employees with a sales & support network that spreads across more than 300 points across the country. Companies industrial base includes an integrated commercial vehicle factory in Pithampur producing Eicher trucks & buses along with factories in Thane, Gurgoan and Dewas dedicated to manufacturing gear boxes and gear box assemblies. VECV is jointly managed by Volvo and EML with shared management and equal representation rights on the board of Directors. All management positions are appointed by the board. Mr. Par Ostberg (Chairman, Trucks Asia, Volvo Group) is VECVs chairperson while Mr. Siddhartha Lal is the Managing Director and CEO. Operational since July 2008, VE Commercial Vehicles is headquartered at New Delhi

Business areas of Volvo Eicher Motors Limited

Eicher Motors Limited comprises of the automotive businesses of the Eicher Group . The business activities of the company are carried out by its constituent Business 36

Units, each covering a product category as described below.

Business Area

Products

VE Commercial Vehicles Ltd Gears & Shafts

-

Motorcycles

-

Eicher Trucks & Buses, Volvo Trucks, Royal Enfield

VE COMMERCIAL VEHICLES LTD It manufactures a range of commercial vehicles with GVW of 5 to 11 tons. It has been outperforming the industry for the past six years. The sales growth in its LCV segment has been higher than that of the industry. In technical and financial collaboration

with

Mitsubishi

Motors

Corporation

of

Japan,

EML

started

manufacturing the CANTER range of vehicles in 1986 at its plant at Pithampur in Central India. The plant is a "state-of-the-art" facility with an integrated capacity of around 20000 vehicles per annum. ROYAL ENFIELD Royal Enfield, manufacturers of the renowned range of Bullet motorcycles, has pioneered manufacture of motorcycles in India. It has a wide range of high powered bikes in its stable to deliver a ‘unique motorcycling experience’ to its rider. Presently Royal Enfield is producing six different models ranging from 300cc to 600cc.All the products are manufactured indigenously in its manufacturing plant in Chennai, which has an annual installed capacity of manufacturing 39,000 motorcycles .

37

MARKET MAPPING OF EICHER MOTORS

Market mapping Market mapping is used in market segmentation to help companies identify the target group(s) for segmenting and forms the second step in the segmentation process. It also has a number of other important applications, such as tracking 38

changes in the channels to market, presenting your own company's performance on these routes to market and illustrating where your sales and marketing resources are allocated, which can then be compared with how your key competitors allocate their resources. You may discover that a lot of the buying decisions are actually so highly influenced by intermediaries in the map, that those intermediaries effectively 'own' a large percentage of the buying decisions. Besides being a key step in the segmentation process, it can be become apparent that two marketing plans will be required. A 'push' plan which is about improving the way we satisfy the benefits sought by those intermediaries, and a 'pull' plan which is about better addressing the benefits sought by the 'consuming' end segments. A slightly cynical example makes the point. Who can doubt that the Consultants and System Integrators recommendations hold huge sway with the purchase decision of a CIO/IT Director. Does anybody doubt that that SAP became the ERP system of choice partly because it was in the interests of the SIs that it did so?

Definition A definition favoured by some of my colleagues is as follows: A market map defines the distribution and value added chain between final users and suppliers, which takes into account the various buying mechanisms found in a market, including the part played by ‘influencers’. This is OK, but I believe causes someone new to the segmentation process to assume a market map is the same as a physical distribution chain, or a value chain. This can be partly true but is not necessarily the case.

For me, a better definition is as follows: The primary purpose of a market map is to describe the flow and relationship between Influencers ‘and Decision Makers between suppliers and final users (as Decision Makers) whilst noting the channels used. 39

Market Mapping To make the best use of your sales and marketing budget, knowing who you are selling too and how to reach them is critical. Commerce intelligence group research and define the distribution and value chain between supplier and final user, taking into account the various buying mechanisms found in a market, including the critical part played by relationships and 'influencers'. Our market mapping process allows you to focus attention on key decision makers within a market, and identify key target market segments. Consequently sales channels and the key players within channels can be easily identified with the help of a graphic presentation of a market. This market map can help deliver key customer and consumer insights, and ensures you have a full awareness of the total market place and how best to utilize your resources.

About Market Mapping Market Mapping takes a strategic, forward-looking approach to crafting market driven strategy and segmentation, focusing on where customers are going, instead of where they've been In addition, the Market Mapping process goes well beyond simply gathering and reporting market data by providing a collaborative, team-based process for bridging the gap between information and action. Market Mapping is an ideal complement to a Future Mapping scenario planning exercise. In the same way that scenarios help leadership teams develop and align around a common view of the future, Market Mapping addresses alignment with customers

Market Mapping Applications „ Market Mapping can help leadership teams address issues like these: We have a

vision of the future but we’re not sure whether our customers share it We think we know the best way to segment our market but we couldbe wrong We simply don't know our customers well enough to understand where they are going We’re not sure which new products or services they will want in the future, or how they’ll want 40

to buy them We think the decision process for our products/services will change but we're not sure how We expect consolidation in the industry and in our markets but we’re not sure how that will affect our competitive position We can't agree on how we should differentiate ourselves from our competitors or on our best opportunities for growth and profitability

Key Steps in Market Mapping „ No matter how much quantitative data an or ganization has in hand, it is critical for

them to understand the underlying thought proc ess of the end user and decision maker; their wants, needs and values; the way they evaluate products. Once they understand how customers think about the future, management will be in a position to deliver true solutions. At it’s best, this is the threshold of discovery leading to a breakthrough idea. Market Mapping has been specifically designed for leadership teams, providing them with both qualitative and quantitative views of customer thinking, integrated into working hypotheses that can provide bridges to action .  „ A typical Market Mapping project has the following steps: „ 1.Conventional Wisdom” Debrief „ 3.External Interviews „ 4. Data Synthesis and Analysis „ 5. Strategy Workshop

 Conventional Wisdom Debrief of Eicher motors „ This establishes the starting point for the project by identifying the set of critical

uncertainties and assumptions about the future of the market environment held by the leadership team and key internal stakeholders Through a series of interviews and/or a structured workshop, we gather input from questions like 1. Which customers are critical to your future success? 41

Ans.

Jaipur market have a large number of potential customers. Presence of good

number of educational institutes and transport companies is an proof of its potential. Educational institutes are the major customers for Buses and transport companies are for trucks and hence these are the critical sector for the eicher commercial vehicle. 2. How are these customers evolving their business model? Ans. Customer are continuously demanding for effective and efficient products according to their requirement. 3. What kinds of problems do you think these customers are trying to solve with products and services like yours? Current customers of eicher trucks are aspiring for : Overloading ability  Solution of frequent maintenance problem  Easy accessibility to spare parts  Workshops in jaipur area. 4. What baseline “minimum acceptable” criteria do you think these customers

Ans .

Ans.

use to evaluate potential suppliers and their solutions to these problems? Basically a customer looks for the following things in a truck bus or other

applications

Bus Model Wheelbase (mm) Overall Length (mm) Rear Overhang (mm) Front Overhang (mm) Overall width (mm) Internal height Steering Brakes No. of seats Type Of Seats Engine – Type Engine - Max Power Engine - Max Torque Trucks Wheelbase Options (mm) 42

Cargo body Deck Length (FT) Overall Length (mm) Minimum Turning Radius (m) Ground Clearance (mm) Gross Vehicle Weight (kgs) Payload (kgs) Engine Type Engine performance Max. Power Max. Torque Bore x Stroke (mm) Clutch Gear Box Rear Axle Front Axle Trailing Axle Steering Frame

5. Which attributes do you think will differentiate suppliers from each other and drive the choice of products and services in the future? Ans. Some of the Eicher trucks and buses seems better in 1. Mileage 2.Fast Trip 3.Accerlaratin 3.Space in the containers(truck) 4.Average 6. When Market Mapping is used in conjunction with a Future Mapping session, the outputs from the first phase form the basis for the strategic choices considered in the second phase

Data Analysis and Reporting Market Mapping results are best presented inter actively, usually in the context of a collaborative workshop. Data is analyze d and reported in three dimensions: quantitative, qualitative and working hypotheses. If conflicting ideas are present, they are offered as counter arguments. Leadership teams that are comfortable with idea conflict usually respect the results mo re if alternative opinions are evaluated and considered.

43

The Market Value Process Market Value Partners help organizations build and sustain competitive market advantage. Using the Market Value Process we provide organizations with a proven methodology for rigorous market analysis. This results in a clear and actionable market strategy.

 The Concepts Behind "The Market Value Process" Market Value Partners believe that to truly create superior shareholder value it is important for an organization to precisely define and focus on superior value to customer in chosen market segments. 

The Eicher motors "Market Value Process" is further can be used used to analytically examine its product and services offerings, enabling it to make critical strategic and tactical marketing decisions that will improve its market position.



To "manage superior customer and shareholder value" the "Market Value Process" gives organizations methodologies to fully examine the required

44

product(s), non-product(s), and pricing appropriate for chosen market segments: o Product (Product features, product performance, reliability, ease of use) o Non-Product (Consultative selling, brand awareness, support, etc.) o Pricing (Price per user, Total Cost of Ownership) 

The Market Value Process is a technique to: 1. Focus 2. Map 3. Measure

a company's ability to meet the selected market needs relative to the competition under various market scenarios.  The Value of Market Maps Developing a market strategy via the "Market Value Process" provides an analytical approach for measuring market opportunities and challenges. Without this analytical approach, concepts such as customer value become extremely fuzzy. In contrast, the visual impact of the 'Market Value Maps' gives an organization a record of their market value-creation decisions along with valuable market insights.  The Theory Behind A Successful Market Strategy Process  Step 1: Define Your Market(s) A company wins customers by creatively identifying differences in particular type of customers' needs (price, product, and non-product needs). Recognizing the different discreet needs of different customers is the first step towards delineating different market sectors. This will enables an organization to stake claim on the most lucrative sectors of the market, matching corporate capabilities to the market requirements. This provides the logistical focus for marketing program execution.

45

A significant amount of effort is be spent in examining the chosen market definitions. It's not wise to short-change the amount of time spent on creative market segmentation. All too often organizations keep this effort brief and perfunctory. This is probably because the imaginative process of defining markets is sometimes perceived as frustrating. There is sometimes a feeling that organizations are thrashing and not necessarily getting anywhere. This is deceptive. The reality is that this is some of the most important "Marketing Work" an organization can do if the result is a strong and creative market segmentation that leads to successful marketing program direction and subsequent market share gain. Because strategies uniquely deliver value to specific markets, getting market definition wrong means getting everything else in the process misdirected.

Q. Who are the customers of commercial vehicles. Ans. Mainly the customers of commercial vehicles are:1. Transport companies 4. Educational institutes

2.Hospitles

3.Individuals

5.Government agencies

 Step 2: Envision Market Evolution with Scenarios Once an organization has defined its markets by uncovering differences in price, product and non-product needs, the next issue is to envision how these markets will evolve over time. To do this, the organization should create scenarios that help the organization imagine the different ways in which key trends may unfold. Looking at various market evolutionary possibilities is far richer than relying on a detailed forecast for a single "official future" that reflects an organization's traditional thinking and become obsolete or unlikely before the ink is dry on the business plan. With MVP's value maps, the scenarios are dynamic, easily updated, and flexible, so that 46

your plan never ends up on the bookshelf. These scenarios enable an organization to think about how the price, product, and non-product sensitivities in the chosen markets may potentially evolve. In coming up with market scenarios, the organization should first determine the greatest uncertainty that the market faces (whether competitive or environmental). Often the greatest uncertainty is the future "quality-sensitivity" of the market (i.e. the slope of the 'market wants' line - please see the charts attached below as reference). The organization then needs to identify the drivers of this uncertainty. In the case of the quality sensitive market, the driver is the timing, source, and magnitude of the next major breakthrough that improves the innovating company's market share. Successful organizations envision alternative futures and have a strategic response ready to meet whatever future actually materializes.

Demand drivers

Freight outlook- CV sales have a direct correlation with the state of the freight industry, with growth in CV sales (MHCV trucks) closely tracking increase in freight movements. Strong economic activity in the country, especially in sectors like cement, mining, steel production, automobiles, consumer durables, food processing and food grain production, leads to increased demand for freight movement by road. Freight rates and fuel price- Truck operators’ profitability is most sensitive to freight rates and fuel prices (60-65% of the total cost). With other things remaining constant, operator profit before depreciation and tax rises 6.5% with a 1% rise in freight rates and 3.5% for a 1% decline in fuel prices Policy initiatives- The CV industry has benefited from regulations like discouraging the use of old, polluting and Uneconomical vehicles. The Supreme Court ban on overloading has also been very positive, leading to incremental

Volumes in the last two years. Further any

government’s likely policy initiatives like scrapping vehicles more than 15 Years old 47

can potentially unleash a huge replacement demand. Further the industry is also expected to benefit from the proposed phase-out of Central sales Tax by 2010. Replacement cycle- Replacement cycle for trucks has been shrinking, declining from about 12 years to nearly seven years now. The proportion of trucks under five years of age rose from about 34% in FY02 to nearly 45%. Competition from Indian Railways- Road transport competes with the Indian Railways (IR) for transportation of all major commodities, with roads having an edge in transportation of non-bulk commodities owing to point to point

delivery with

railways commanding a higher share in transportation of bulk commodities. Over the years, roads have gained an increasing preference vis-à-vis the railways and the share of road transport currently stands at about 65%.Demand supply scenario- The significant part of the demand for new trucks comes from capacity additions by small fleet operators and first-time users. This along with policy changes like ban on overloading has led to significant addition in the truck population. Also with easy availability of finance at low interest rate helped in increase of capacity in the past five years. But as interest rates are set to increase it might lead to slight dampening in demand for M&HCV in near future. However, demand is likely to remain healthy for LCV owing to the rise in demand for small commercial vehicle for providing the last mile connectivity and the creation of hub and spoke models.  Step 3: Determine Whether a Particular Market Will Reward Your Specific Investment THE degree to which a market is attractive and promises to reward an investment depends on the fit between the direction the market is headed and the organization's core competencies. This process also helps an organization prioritize the markets for investment.  Step 4: Deliver Quality Through Product and Non-Product Benefits The Market Value Process is used to measure and map how an organization's customers perceive its quality relative to the competition's quality. Quality is defined as the precision with which the product meets the customer's product needs. Quality 48

is the "basket of needs", product and non-product. We consider both the product and non-product dimensions of quality in detail. We will work with the extended management team to measure and map the relative quality an organization offers in each chosen market.  Defining Market Objectives and Developing Marketing Strategies In developing a strategy for a particular market, an organization identifies several possible objectives for its position in that particular market. The obvious possibilities are to gain, or hold market shares. Each objective is usually associated with a particular level of investment in human and capital resources relative to the competition. The process enables an organization to build a strategy for deploying the resources needed to attain the desired objective by market. To gain share an organization would typically put in motion an aggressive set of actions to improve its product and non-product quality. The theory is that improved pricing and improved product quality will offer customers superior value and delivery higher shareholder value to the vendor.

RESEARCH METHODOLOGY

Introduction Before undertaking a study, it is useful to plan how it would be done. This involves designing the research work and its methodology. Research methodology is a systematic way for solving any research problem. It may be understood as a science of studying how research is done scientifically. Research methodology has many dimension and the research methods are an integral part of it. The usefulness of the output will depend upon how the research has been designed and implemented at each strong of its process. The project is related to the determination of financial analysis for the company. The co. comprises many divisions all over India. On the basis of need for individual division, the financial analysis for the entire organization is determined. 49

Research design The research design is a plan of the proposed research work on the market ground of Eicher Motors . It is the way through which the stated research objectives can be achieved. It is a blueprint for the collection, measurement and analysis of the data that are collected from the market. It means it involves the data collection method, the specific research instrument and the sampling plan that would be used for the purpose of market mapping of Eicher motors.

Data collection method There are various methods for the collection of data. However, for the selection of any method, the following factors are considered.  Nature, Objective and scope of the study  Availability of funds  Time element  Accuracy required  Availability of data

Collection of data can be of two types:  

Primary data Secondary data

Primary data are those which are collected for the first time from the Jaipur market . This happens to be original in character. Secondary data are those that have already been collected and analyzed by someone else. The data used in the report is collected from internet, magazines.. For this study I had used primary and secondary data available from the company and various divisions and websites.

50

Research Objective  The main objective of conducting research is to identify the marketing strength and weakness of Eicher Motors.  Another objective is to judge profitability and marketing soundness of the Eicher Motors.  To analyze the soundness of the company with the help of marketing management tools.  To study the trends and reasons for deviation.  Market mapping of Eicher motors  Customer satisfaction level  Market Analysis  Customer Feedback

Competitors 

Tata Motors -Based in Mumbai, India, Tata Motors Limited is a part of Tata Group. It manufactures commercial and passenger vehicles primarily in India. It offers passenger cars, multi-utility vehicles, and pick-ups; medium and heavy commercial vehicles, such as rigid trucks, tractor trailers, and tippers; intermediate, light, and small commercial trucks; buses; and defense related vehicles. The company, through its subsidiaries, also provide engineering and automotive products; manufacture of construction equipment; automotive vehicle components manufacturing and supply chain activities; and provision of machine tools and factory automation products, as well as offers highprecision tooling, and plastic and electronic components for automotive and computer applications. In addition, it provides automotive retailing and services, as well as financing for the vehicles sold by the company. The company markets its products in Europe, Africa, the Middle East, south Asia, south east Asia, and Australia.[25]



Mahindra & Mahindra Ltd - The company manufactures a range of automotive vehicles, agricultural tractors, implements, and industrial engines. 51

It is also involved in property development and construction activities. The company offers various multi utility vehicles, light commercial vehicles, threewheelers, and tractors as well as spare parts and related services. It also provides various services related to financing, leasing, and hire purchase of automobiles and tractors. In addition it also offers design and engineering services to the automotive, aerospace, and general engineering industries; and produces automotive components, as well as forgings, gears, steel, stampings, and special polymers. It is headquartered in Mumbai, India. [26] 

Swaraj Mazda (SWARAJMAZD-BY) -Headquartered in Chandigarh, India, Swaraj Mazda Limited manufactures and sells light commercial vehicles for goods and passenger applications in India. The company also offers specialty vehicles, such as ambulances, dumper placers, water tankers, and troop carriers. In addition, it sells spare parts and scrap. It operates as a subsidiary of Sumitomo Corporation.[27]



Force Motors (FORCEMOT-BY) -The Group's principal activity is to manufacture and market utility and light commercial vehicles, agricultural tractors and diesel engines. Its plant are located at Bombay Pune road, Akurdi, Pune and Pithampur, District Dhar, Madhya Pradesh. With technical collaboration of MAN AG, Germany, Force Motors has a range of heavy commercial vehicles with a payload capacity ranging from 16 to 50 tonne

52

Market share

Market share of Light commercial vehicles in India

Market share of Medium and Heavy Commercial Vehicles in India

Key Success Factors Ability to enhance and vary product mix - A diverse and broad product mix enables a manufacturer to serve a wide variety of transportation solutions across different load 53

levels. It also helps in building strong brand loyalty among customers. In addition the presence in business such as auto spares, buses, exports and defence helps companies to weather the cyclist in CV sales.  Sales and distribution service network - A widespread sales and distribution setup enables the company to ensure a geographically diversified client profile.  Access to new technologies – In addition to matching competitor’s new products and upgraded machinery, technology is also going to be critical with emission norms are going to be stricter going forward. The requirement of updated technologies has driven domestic players into acquisition/collaborations/JVs with global majors.  Balance between outsourcing and in-house production - Companies with high integration level have higher fixed costs which results in higher profitability in robust growth scenario. However it also results in sharp drop in performance as they would be affected by lower sales volume backed by Industry cyclical nature. More over company’s proximity to their raw material and component suppliers help them in reducing procurement costs. • Higher steel prices have been a key concern over the last two years. The CV industry has tackled this both by passing part of the costs through price hikes and also by optimizing their selling, advertising costs and treasury efficiencies. • Another concern is a slowdown in the Indian economy. This would lead to lower investment in infrastructure which in turn will affect the CV demand. • Higher domestic inflation and increase in fuel prices are other major concerns. Without a concomitant increase in freight rates increase in fuel price will have a negative impact on demand for CVs.

Outlook Although rise in interest rates and fuel price may dampen the growth of the sector in short run the long-term outlook for the domestic CV industry remains strong. The 54

expected continuance of economic growth and investments in infrastructure will help the sector report robust growth going forward. The entry of new players in the industry and the significant capacity additions expected are however likely to keep the competitive pressures high. On the demand side, a combination of tightening regulatory norms (on emissions and vehicle scrapping) and increasing customer selectivity is expected to drive a shift towards high tonnage quality products. The top players in the domestic CV industry have robust financials, supported by strong cash accruals and a comfortable capital structure. These players are capable of funding their significant investment plans over the medium term without resorting to any large borrowings. Moreover, the ongoing capacity expansions are based largely on outsourcing models, which aim at better sharing of risks with component suppliers and lower the break-even levels. The significant export drives being made by the leading CV players are likely to lower the risks arising from concentration on the domestic market and mitigate the impact of cyclical downturns to an extent.

Market segmentation 1. Target Market survey 2. Customer Feedback 3. Presentation of analysed data

Overview Jaipur market has a good number of potential customers for the commercial vehicles. Main players in the field are TATA Motors, Ashok layland, Eicher Motors, Mahindra. Mainly the customers to whom we met are Transport companies in Jaipur. We met around 500 customers of commercial vehicles in the market of Jaipur and collected the primary data regarding Eicher motors to get the main objective of “market mapping of Eicher motors.

Market Segmentation: Different Customers have different and specific types of needs and demands in the 55

market according to which they acts in the market .Customers need and demand differs in the sense of sex, age, geographical regions, climatic conditions etc.... For example: - In hilly areas a customer will prefer a bus having powerful engine rather then having better speed. Market Segmentation can be defined as similar needs, demands and characteristics regarding a particular type of product. Selecting any particular type of customers having Hence to identify a specific group of people having similar characteristics , needs and demands at any particular geographical region , market segmentation is important .It seems much effective technique rather then working randomly for the identification of the target market. During this process we identified the market where we can proceed to survey and can get valuable information from the target market, so that the facts and figures can be collected and farther can be used for the marketing purpose.

 Areas which we segmented from the Jaiper market are 1. Transport nagar 2. V.K.I Area 3. Muhana Mandi 4. Automobile Nagar 5. Jalupura 6. Chandi ki Taksal 7. Chotti Choppar 8. Sansarchand road 9. Sindhi Camp 10. Durgapura

Market Survey: In this field we had collected facts and figures of commercial vehicles in the Market of Jaipur and make conclusion on the basis of this . Market explanation:  Transport Nagar Transport Nagar is widely depressed market for transport companies having a 56

less number of potential customers of Eicher motors. Companies like Ashock Layland ,Tata motors dominates in this field .According to survey report Eicher motors lagging behind because of the following reasons:1. Coastally spare parts 2. Lack of authorized workshops of Eicher motors 3. Frequent Maintenance requirement. 4. Resale price is less  Automobile Nagar We had surveyed about 60 companies in the Automobile Nager. There are potential customers of heavy vehicle, mainly of trucks. But there is a need to grab the opportunity by Eicher Motors in the market, as the goodwill of the Tata motors in the market is seems to be better. Customer are mainly focused on or demanding trucks which can bear overload , fuel efficient ,less maintenance , easy availability of work shops.  V.K.I industrial area V.K.I industrial area has a large and scattered type of pattern of transport companies. According to the market survey it is a bigger market of heavy commercial vehicles, especially of trucks. A large number of transport companies locates here and hence plays an important role in the commercial vehicle market of Jaipur .It includes road number 1 to 15. According to the survey of market, most of the transport companies owns the Product of Tata and ashock layland and in future also they interested in the same .Eicher seems to be at back foot because of two main common reason among all i.e. 1. Eicher Trucks are less able to bear overloading in comparison to Tata and trucks of Ashock Layland. 2. Having less number of workshops is the Jaipur area is the major drawback.  Muhana Mandi/Sanganer The transport companies in the Muhana Madi are situated on the basis of Mandi market .Sabji Mandi of Muhana market always needed transporters to transport eatable materials. Muhana Mandi is a market of large and heavy as well as 57

small commercial vehicles. There were customers of trucks but less in numbers. Some transporters had just purchased the trucks and some are still interested in purchasing.  Other areas In other areas of Jaipur like Chand pole, Jalupura, sansar chand Road and Badi Chopper there is a large number of transport companies situated and hence create a market for commercial vehicle industry. There are hot as well as cold customers to whom we meet and get the information regarding their transport vehicle. We collected information regarding the commercial vehicle they owned and vehicle which they want to buy in the future .we concluded about their reactions and experiences in the market regarding the commercial vehicles .We come to know that Tata Motors is in leading role in Jaipur area in trucks and buses. The major reason behind this success of Tata Motors is customer satisfaction by maintaining quality at reasonable price.

Customer feedback:-

1. About spare parts

:-

- 25 customers had complaint regarding this. -Spare parts of Eicher trucks and buses are not easily available -Spare parts are costly 2. About Average and mileage:-Eicher Trucks and buses provide better average and mileage 3. Fast Trip, Acceleration and space in containers are the positive points of Eicher trucks 5. Eicher trucks are seems to be best suitable for caring agricultural equipments and machineries. 4. Goodwill. -EICHER product have goodwill in some areas of jaipur according to our survey. 58

- Tata is leading in this goodwill factor 5. COST. -Customers expects better discount from Eicher Motors -According customers Tata is providing better services to their values spend 6. MAINTENANCE. - Maintenance required is more than Tata in Eicher trucks.

7. Service centres:-About 35 customers complained regarding this. -Lack of service centres of Eicher motors in the area

Table of Survey report of some transport companies for feedback

Customers

Costly Spare Parts

Lack of WORKSHOP

Rathore transport com. VRL Logistics New Golden transport com. JAIN transport com. O9New Shekhawati transport com. 59

Bear less ENGINE OVERLOADI capacity NG

FINANCE SCHEME

Geetangali Tours and Travels

Type of Survey in various market of jaipur Market Description Surveys: For determining the size and relative share of the market. Such studies provide key information for determining market growth, competitive positioning and tracking share of market. The CEO usually wants to know this information. Industry consortia often commission this type of study. Q.1. Which Company Vehicle is being used by you ? (A). TATA Motors (B) Ashok Layland (C) Eicher Motors (D) Mahindra

1: Pie chart showing the number of customers of different companies. 60

Market Profiling–Segmentation Surveys: Directed at identifying who the customers are, who they are not, and why they are or are not your customers. This is often a descriptive market segmentation and market share analysis.

Q.2. Who are the customers of commercial vehicles ?

2: Pie chart showing customers as organisation .

Stage in the Purchase Process/Tracking Surveys: Where the customer is along the purchase process. The aggregation of this information provides information about the diffusion of innovation process for the market and product as a whole… What are the levels of Awareness–Knowledge– Intention– Purchase– Repurchase?

61

Q.3. Did it met all the expectation that you aspired from the product before

purchasing?. 3: Pie chart showing satisfaction level of the customer after purchasing of Eicher commercial products.

Customer Intention–Purchase Analysis Surveys: Directed at understanding the current customer. What motivates the customer to move from interest in the product to actual purchase? Understanding this process and how it can be improved is the key to customer conversion, commitment, and loyalty study. Q.4. Which factor a customer prefers in their Commercial Vehicle Product? -Mileage -Average -Maintenance -Speed -Wheelbase (mm) -Loading -Steering -Brakes -No. of seats -Type Of Seats -Engine – Type -Engine - Max Power -Engine - Max Torque

Customer Attitudes and Expectations Surveys: 62

How does the current product meet customer expectations and what attitudes have customers formed about the product and/or company? Attitudes and expectations analysis can be used in a variety of situations such as directing advertising and improving customer conversion, commitment, and loyalty. Q.5. Did the Eicher motors product met all your expectations which u aspired before purchasing it?

63

Q.6 Are you satisfied by the product of Eicher motors u purchased

Pie chart showing satisfaction level of Eicher Motors customers

Ans.-

(A) Yes

-

27%

(C)No Response

(B) No -

-

58%

15%

Customer Trust–Loyalty–Retention Analysis Surveys: Especially appropriate for the study of shopping goods (and other high priced goods) because of the magnitude of the decision process for the customers, the long purchase process (time from need recognition to purchase), and depth of consumer attitudes formed about the product and/or company.

Q.6.Would you recommend eicher product ? 64

 Pie chart showing the trust and loyalty relation with the company Ans.- 1.

Yes

-

65%

2. No

-

35 %

New Product Concept Analysis Surveys: Concept test studies are appropriate in the initial screening of new product concepts. Likes and dislikes about the concept and evaluation of acceptability and likelihood of purchase are especially useful measures. Q.7. What major improvement you like in the product ? Ans.- 1.Workshops 2. Overload bearing capacity 3. Cheap and easy availability of spare parts 4.Less maintenance

New Product Acceptance and Demand Surveys (Conjoint): Conjoint analysis studies are implemented primarily for the estimation of demand for new products. Typically, these products can be described or have been developed in drawing or concept, but have not yet been developed physically. Conjoint analysis 65

allows the manager to develop market share estimates to find which of the alternative potential products offer the greatest market promise. Q. Which companies product u prefer to buy in the commercial vehicles.(only bus and truck)

 Pie chart showing the customer preferences in purchasing commercial vehicles Ans.1. Tata motors – 60%

2.Ashock laylend – 20%

3.Eicher Motors - 15%

4. Mahindra – 5%

Product Fulfilment Surveys (Attribute, Features, Promised Benefits) Products contain bundles of benefits (both tangible and image) that are promised to the user. The product fulfilment study determines if the expectations created for the product by advertising, packaging, and the produce appearance are fulfilled when the product is used. Q. Are u satisfied with the promised benefits with the eicher products.

66

 Pie chart showing customer satisfaction with the promised benefits Ans.-

Yes

-

40 %

No

-

60%

Test Market Surveys (Product Use and Acceptability Evaluation) Test markets are conducted to determine the actual buyer response to a new product offering. Test market evaluation is most often concerned with evaluation of the product purchase process, evaluation of the product and marketing materials used in the test market.

Q. Grades to the Eicher commercial vehicle products on the basis of overall performance

67

 Pie chart showing the grades given to the Eicher Motors on the basis of overall satisfaction Ans. (a) Grade “A” – 10% (b) Grade “B” – 40% (c) Grade “C” – 30% (d)Grade “D” – 20%

Brand Equity Analysis Surveys: Brand equity analysis focuses on the measurement of the psychological value that a brand carries with it. Brand equity is described in the marketing literature as being a composite of brand awareness, brand quality, brand associations, and brand loyalty. Each of these concepts can be measured. There is no formal procedure for combining all items into a single overall “value” or “score” that measures brand equity.

68

Q. Goodwill of Eicher motors in comparison with its competitors?

 Pie chart showing the goodwill of eicher motors and its competitors in the market

Sales Force Effectiveness Surveys: Sales force effectiveness evaluation is a combination of measures that focus on the activities, the level of performance associated with those activities and the effectiveness in terms of producing the desired and measurable effect or goal. Often sales force effectiveness is measured as a multiple part survey completed by the sales person, the client (evaluating the sales call), and the supervisor responsible for evaluating the sales person.

69

Q. Is your relationship is good with sales department of the eicher motors

4Pie chart showing customer relationship with the Eicher Motore company.

Sales Lead Generation Surveys: Sales lead generation surveys are an effective online tool for:(1) assuring timely use and follow-up of sales leads, (2) qualifying sales leads (thereby saving valuable sales force time), and (3) providing more effective tracking of sales leads. Q. Are you satisfied with the delivery services of Eicher motors?

70

Figure 5:  Pie chart showing the satisfaction level of customers regarding delivery services.

Ans-

25% Yes 65% No 10% Others (No response)

71

BIBILOGRAPHY Primary Data:Eicher Office Eicher Customer Industries & Factory Educational Institute

Secondary Data:1. Eicher broachers

2. Websites:www.eicherworld.com www.wikipedia.com www.scribed.com www.mbaguyes.com www.managementparadise.com

3. Books & Magazine:Marketing management (Philip Kotler ) Times of India Business World Economics Times

72