In this project I have study of “factors influencing while purchasing tyres” JK tyres manufactured by Jk Tyre & Industries.
In this competitive era of marketing where the satisfaction of the customer towards the product is become first priority, it is therefore very important to analyze customer behaviour. Consumer behaviour can be looked upon as study of how individuals make decisions on how to spend their available resources like time, effort, money in various consumption related items. The understanding of customer needs and wants is one of the major underpinning construct of marketing. Without putting customer on the top company cannot get success, forgetting success every company should target customer, because market is totally customer oriented.
This project evaluated which factors influence the customer most when he/she goes for purchasing tyres. Finally I have given some views and suggestions to the company with which they can satisfy the customer the most.
Inspite of theoretical knowledge gained through class room study, a person is incomplete if not subjected to practical exposure of real corporate world. He may have to face hurdules, which will be difficult to overcome without any first hand experience of business.
In this context, research program has been designed to make aware of happening of real business. The project entitled “Factors influencing while purchasing tyres” with special refrece to JK tyres, has been done at New Delhi and Jalandhar as completion part of Msc International Business.
In my work-based dissertation, we worked upon the analysis of the JK tyre industries in New Delhi and Jalandhar by customer attitude through the personal contact and questionnaires. During my work-based dissertation, I got opportunity to apply my theoretical skills and knowledge and meaningful concept to actual business condition and Familiarize with the marketing activities of the products. All the work done on this project is confined to my broad objective.
In today’s world of intense competition and rapid dynamism, all companies worldwide are tuning their focus on the customer. Suddenly, customer had succeeded in capturing all attention of the companies towards him, so much so, that maxim, “customer is god” has become so true and relevant today. There has been a paradigm shift in the thinking of these companies and none other than customer has brought this about.
Earlier there was seller market, since the goods and services were in short supply and sellers use to call the shots. But ever since the advent of era of globalization there has been total transformation in the way of customers being perceived. Today, marketers are marketers are directing their effort in retaining customers and customer base.
The customer importance has assumed imponderable proportion in today’s world because of inherent value that customers command. A customer can “make or break” the company. It is the responsibility of every company that to see all its customers are equally satisfied with them , for one single dissatisfied customer will tell at least nine other customer about the dissatisfaction and will spark off the chain reaction and spell doom for that company
In the past customer were taken as ride, as there were not many players in the fields, not much importance was attached to product safety, quality, service and product appeal. The attitude of manufacturer was that of “Caveat-emptor”. Thanks to the government policies on liberalization, globalization and privatization, the market has changed today. Today customer has host of defence mechanism like customer protection laws, regulation of government, the powerful hands of organization, switching to or competitors. The maxim “Caveat-emptor” has been replaced by “Caveat-venditor”.
In the past after sales service was consider as cost centre, companies were lethargic in attending the customer complaints. Availability of trainee service personal and quality genuine spare parts was serious problems. However, with rising competition, there could not be much product differentiation as product, quality was comparable and latest technology was with each and every company in the field. Since there could not be much differential a tangible assets, the companies concentrated on the intangible assets normally service factor which served as major differentiator. Today after sales is considered as major aspect for every company and it is no more considered as cost centre but now it considered as profit centre
JK tyre is only manufacturer of truck and bus tyres and second largest manufacturers of 4- wheelers. JK tyre and Industries in counted among the huge corporate entity which is the symbol of excellence, diversification and pioneering new technologies. Since its commencement it has been supreme in the value of technology which made it grow .JK tyre manufacturers and sells the tyres and tubes fot passenger car, truck, jeep, buses, multi utility vehicle,tractors and light commercial vehicle under its brand “JK tyre”. The company is the only manufacturer of ‘T’& ‘H’ high performance tyres in India. JK ranked “Highest in customer satisfaction with original tyres by J.D power Asia Pacific Study”.
Its customers are mostly Replacement for four wheelers, entire Original Equipment Manufacturers (OEMs) in India along with state and defence transport units. Moreover JK have customer base across 45 countries and 6 continents.
3, Bahadurshah Zafar Marg,
New Delhi – 110 002
Vision & mission
“To be amongst most admired companies in India committed to excellence”
· Be customer obsessed company
· No. 1 Tyre Brand in India
· Deliver enhance value to all stakeholders
· Most profitable tyre company in India
· Enhance global presence through acquisition
· Motivated and committed team development for high performance organization
JK tyre & industries Earning results for first quarter declared 30.06.09
For the first quarter company has reported net profit of INR 40.75 crores or earnings of Rs 9.92per share on the Net Sales of INR 897.67 Crores In gross sales has been INR 964.58 Crores .The board recommended@ 27% dividend on equity shares for the financial year ended 31 march 2009 . Companies profit before tax had been INR 62.16 crores and operating profit was INR 107.14 Crores. Performance during the quarter has significantly improved on account of all round cost reduction measures, better operating effeciencies, productivity, and richer product mix.
First tyre company to receive ISO 14001.
First and only tyre company to export passenger car radial to Europe.
World’s first tyre manufacturer to get QS9000 for its operation.
India’s first to get ISO 9001.
JK tyre is pioneer in promoting Rallying, karting, motor sports, JK tyre pioneer of steel radial technology.
JK tyre is the preferred choice of the all leading vehicle manufacturers in India like
Ashok Leyland (http://www.financialexpress.com/news/truck-tyre-mkt-on-road-to-radialisation/88811/)
JK Tyre meets ISO 9001, QS9000, ISO14001,E-MARK, DOT,IN METRO standards where ever applicable. JK Tyres efficient R&D department is deeply involved in making improvements in the product performance, quality, and bring out new products. Company aims to give satisfaction to its customer by offering high quality and cost effective tyres and tubes.
History of the company
On 14 February 1951 JK organization was incorporated as a private limited company. Till 31 March 1970, the company was involved only in the business managing agency. After that, company took manufacturing activities and in February 1972 company obtained the letter of intent for production of automobile tyres and tubes. In 1974 company manufactured 4 lakh automobiles tyres and tubes per annum then on 1st April 1974 company was converted into public limited company.
After this company promoted manufacturing project, it was done by J.K. Synthetics Ltd and straw Products Ltd. The company took international step by collaboration with General Tire Co.,U.S.A.,which was subsidiary of General Tire & Rubber Co.,U.S.A. ,this collaboration was for the technical services which was for about 5 years and sales agreement for the supply of technical know-how, engineer and documentation for operation facilities for eight years. According to the agreement, J.K. tyre had right to use on its products the wording made in the collaboration with General Tire Co.
Company renewed its technical collaboration agreement for further 5 years. In 1987 apart from 51 days strike as well as go slow from 14 October the overall working resulted in substantial profits. Since the strike was resolved efforts were made to launch a new pattern in steel belted Radial tyres and it was introduced for Maruti Gypsy and Tata Mobile by the company in 1988. The company proposed install latest and sophisticated R&D equipement by incurring expenditure of Rs 300 lakh.
Due to R&D in 1989 company introduced several new pattern and sizes of tyres including a semi-lug Nylon Truck tyre, and got good response from the market. In 1991 Hidrive Finance Ltd., Radial Finance Ltd., Handeep Investment, J.K International Ltd., J.K Asia Pacific, Shivdham Properties, Pancham Investment ltd., became the subsidiaries of the companies. By 1992 company international division expanded its activities by opening its office in Moscow( Russia) apart from company’s subsidiaries already in U.K and Hongkong. Market well accepted the radial tyres for tractors launched previous year. In 1993 company introduced new brands of radial tyres ‘Brute’ and ‘Ultima’. After this compony started manufacturing steel belted radial tyres for the prestigious cars like Mercedes Benz, Peugeot,Daewoo race and Opel Astra. Market well received the new patterns developed for bus and trucks ‘PE-T8’.
Despite of rise in inputs cost and cost of raw material and the competion company maintained its progress. Company attained higher capacity and all around cost reduction on both plants at Jaykaygra and Banmore. Many new generation cars accepted the J.K steel radial as T- rated ultima launched and was accepted by Daewoo’s ‘Cielo’ and then Mercedes benz india also choosed J.K steel radial after this it G.M’s ‘Astra’. Then next were `Peugekot’ FIAT’s, `UNO’ and M & M’s `Ford’.
After this company launched premium tyre to meet heavy load market which was ‘Jet Trak’-39 with this company launched new tractor rear tyre ‘SONA’ which was also greatly accepted by the market. During 1996 company launched car tyre JET Drive XS,and nylon car tyre for maruti along with semi-lug and heavy duty lug tyre for trucks. In radial category, Ultima XR Radial, a terrain tyre was introduced.
All these tyres got good response from the consumers. Companies both the plants were operated at full capacity. In radial tyres units also launched dual contact high traction and high performance Aquasonic steel radial car tyre. As company had loan repayment of Rs 635 crores it proposed to reduced its debt by 125 crore in 2000. J.K tyre and the Indian oil corporation came collaboration to install digital air pressure gauges and setting up sales out at IOC petrol station across the country.
In 2001 managing director of J.K Industries Raghupati singhania was selected 19th chairman of ATMA (Automotive Tyre Manufacturers Association). J.K Industries in 2003 got new Marketing Director as Mr. Ajay Kapila who was earlier Senior-Vice President in Kinetic Engineering Ltd. J.K. tyres merged with Vikrant tyres along with the non tyre business, sugar and agriculture into separate companies which were J.K Sugar Ltd and J.K Agri-Gentics Ltd. On 2nd April 2007 J.K Industries Ltd changed their name to J.K tyre and Industries Ltd.
History of JK Organisation
JK Organisation owes its name to late Lala Juggilal Singhania, dynamic personality with broad vision. Inspired by the cause of Swadeshi movement of Mahatma Gandhi and driven the zeal to set up an Indian enterprise .Lala Kamlapat Singhania founded JK organization in 19 century ushering in new industrial era in India. The process of industrialization and diversification was worthily and successfully carried on by Lala Kamlapat’s illustrious sons –Sir Padampat, Lala kailashpat, Lala Lakshmipat, aided in no small measures by the Late Gopal Krishna son of Sir Padampat.
1933- Juggilal Kamlapat cotton Spinning and Weaving Mills Co. Ltd was the first to manufacture calco prints in the country. In 1940 J.K iron and steel Co Ltd manufactured first time steel bailing hoops for jute and cotton with which country became self sufficient in meeting the entire demand. Then in 1944 they produced first time aluminium virgin Metal from the Indian Bauxite at Aluminium corporation of India Ltd, Jaykaynagar. There after J.K engineer files manufactures first time in India Engineering files in 1949. In 1959 they were the first one to set up a continuous process plant of Rayon. In 1960 J.K Iron &steel Co Ltd at Kanpur manufactured for the first time in the country a hydraulically operated cane crushing Mill for their sugar plant in Khandsari and then they completed their 100 ton plant. During 1961 J.K chemical set up world’s first plant for production Hydrosulphite of soda by the amalgamation process of sodium.
Similarly in 1962 they their company J.K synthetics Ltd at kota produced first time nylon-6 with its own polymerised raw material in India. J.K Chemicals Ltd was the first one to produce sodium formaldehyde in India. In 1968 they produce T.V sets in India along with Metallic Cops for Synthetic Filament yarn industries. In 1969 J.K synthetics manufactured acrylics fibres in the country for the first time in the country and J.K synthetics Ltd developed Dyeable Nylon. In 1973 they were the first to the licence Synthetic fibre technology to third party and produce Synthetic Fibre Machinery. In 1976 they produce steel belted radial for the first time in india for the trucks, buses and passenger cars in their tyre plant at kankroli and then they make steel belted radial tyres for three wheelers which was manufactured for the first time in the world.
In 1984 they produced white cement in India for the first time in India through dry process. Then J.K Synthetics produced Cathonic Dyeable fibre first time in India and nylon tyre cord based on Spin Draw Technology. In India J.K magnetic produced first magnetic tapes with cobalt technology. In 1991 company set up a tyre palnt at Banmore with annual capacity 5.7 lakh tyres. Then in 1992 HASTERI R&D centre was established bu the company after two years in 1994 they launched India’s first T-rated tyre and Banmore tyre plant crossed 100 TPD. Next year mecedez benz was launched on J.K tyres and they got the ISO 9001 which was given to first time in history to tyre manufacturer. In 1996 they introduced steel wheels and launched first time in India dual contact high traction steel radial- aquasonic.
Next was the big year for the compay they acquired Vikrant tyres ,awarded national export award for 96-97, first and the only tyre manyfacturer to get ‘E’ mark certification, they launched first H rated tyre and their research institute got ISO 9002. In 1998 they were awarded capexil’s highest export award for 1997-98, got QS 9000. In 1999 Jk tyre was ranked world’s 16 largest tyre company, synergy with VTL in procurement, marketing and production flexibility, they got ISA-14000 certificate for environment and safety. In 2000 National Go-Karting championships were introduced by the company. In 2001 company received CAPEXIL award and FOCUS LAC export award. In this year 2nd Go-karting championship was held by the company.
Jk tyre acquisition of Mexican tyre company tornel
JK tyre acquired Mexican based –company with the annual capacity of 6.6 million tyres ,this deal cost Rs 270 crores. This deal made the JK tyre No.1 tyre maker in the country as their annual capacity increased to 15 million units because they have surpassed Apollo tyres which was earlier No.1 with the capacity of 8-10 million. This acquisition not only gives JK tyres an additional tyres but access to the lucrative market of Latin and North America.
The company is planning to sell both the brands JK and Tornel in U.S and Canada. They have planned to spend million more on the Tornel plants to add new shape to JK brand and launch the JK radial and Tornel passenger and light truck brands for U.S customers.
JK tyre and motor sports
It’s been two decades that the JK tyre is closely related to adventurous world of motor sports. JK tyre has been constantly promoting motorsports not just only to discover several winners, but also using their awareness and knowledge of R&D department to develop tyres on which world can race upon.
JK tyre realised the absence of the infrastructure, which is necessary for the accomplishment of the motorsports in India. Over the last five years, JK tyre has embarked over Rs 15 crore to support the motorsport in India.
Jk tyre along with its associates Vikrant Tyres Ltd is the leading exporter of tyres from the country which counts roughly 26% of exports.
JK tyre is the world’s first manufacturer of tyre to receive ISO 9000 along with QS 9000 for its operations. Across the world only JK tyre has received has certificate of QS 9000 for its multilocation operations. In the country it is only JK tyre was the first company to receive ISO 14001 in recognition of its environmental management systems.
Nowadays, products manufactured by JK tyres compete with international players in the international market across the world. The products are exported to to more than 55 countries and in 6 continents. The company has robust and well developed distribution network for exports and the distributors get the full support from technical team for the product development so that they can meet the market requirements. JK tyre products are internationally certified in Europe, US, Middle East and South America.
For commitment of offer in superior quality , standards and path-breaking breaking innovation the company has received numerous awards for exports for last years.in 1999-00 JK being the largest tyre exporter to Latin America it was acknowledged by the Indian trade promotion organization (ITPO). In 200-01 company was honoured with ‘The Special Export Award’ from Capexil, with this company made its fourth consecutive award from India’s premier industrial association. JK tyre is constantly making any eefort to deliver value to customerswith along with sound marketing strategy forms which are establishment consistent performance in international market.
To develop new products of excellent and distinguished products so that they can compete in the international market, JK tyre had had maintained its marketing and distribution strategies for export market. This credit goes to India’s biggest in-house R&D centre, HASTERI (Hari Shankar Singhania Elastomer And Tyre Research Institute). This centre is well equipped with latest testing facilities which helps in getting excellence by evolving technologies for superior product performance and it also reduces waste and thinks about the consumer needs.
All over JK tyre has obtained many milestones. Despite of , bencjmarking customer sevice and plans to bring in several pioneering technologies there, a lot which will roll out in future in JK tyre’s winning path.
JK tyres in North America
In Mexican based company Tornel, JK tyre bought 100% stake. By this move JK tyre got access in the markets Of US along with this company can entered into the markets of South America. Tornel has total three manufacturing units with total capacity of 6.6.Million tyres per annum
Technology at JK tyres
Error proof Computer Aided Design & Analysis
JK tyres use updated tools and techniques which help them to figure out and annihilate failure at the drawing board only.
World class manufacturing on Automatic Machines
Manufacturing of radials is done at air-conditioned plant fitted with the finest machinery to provide customer consistent good quality.
Before the JK tyres reach the market it has to go through tough validation tests, both indoor and outdoor. Jk is one of the few companies that test their tyre so rigorously.
Network of JK tyre
With the objective of meeting customer demand s and bringing best products and services form the customers, JK tyre established franchised chain nationwide retiled outlets as JK tyre steel wheels. It is considered to be one stop solution for the problems of and requirements of tyres and their services. In these they provide facilities like computerized wheel alignment, automated tyre changing, wheel balancing, air care, tyre rotation with the high technology and trained personnel guidance.
JK tyre has started delivering the tyre at the customer’s door. With this JK trained technician will deliver and fit the tyres at a pre-appointed time. In this wheel changing, balancing, and alignment is including. This step is user friendly to make the customer comfortable and for his convenience.
JK tyre launched different types of ad campaigns to promote the product and the brand. The company publicized its product by placing its information in the media. Following are some of the ad-campaigns of JK tyres.
JK tyre is leading manufacturer of tyres in India. It manufactures tyres for entire segment of Truck/Bus, LCV, Passenger and Farms.
JK Tyre is the leader in the segment of Truck/ Bus tyres. It has 70% market share in the truck and bus tyre segment. However this is very small sector Indian market but it is expected to grow in near future. They make Bias and radial types of tyres for this segment.
In LCV segment they manufacturer such type of tyres and this they provide Bias and Radial. JK is the second largest market share .
Corporate social responsibility initiative by JK tyres
J.K tyre believes that they get numerous inputs from the society, it adds value to these and offers the needed products and services to public at large. The profit which company makes is the enhancement by the public for value added.
The purpose of CSR is enhance the government efforts by helping the citizen of the country, with which they can lead life which is prosperous, healthy, happy and more meaningful. It is believed that it is not only the job of the government to do the needful to the extent needed. That’s where the role of corporate citizen comes. In fact, it is helping ourselves because inputs and outputs comes from society and go back to society. So it is long run.
J.K tyre and Industries undertook three major initiatives, 2004 onwards, as per deliberation in the central HRD Committee, presided over by Shri Hari Shankar Singhania, where all presidents and all time directors are members.
In 1950 the condition of china and india was same i.e 18% of literacy. If the so huge population is illetrate then it is very difficult to imagine society making scientific progress and citizen leading purposeful and meaningful lives. From1950 there has been progress in this issue. China has got illiteracy 95% but our country got stuck at 65%. Looking at this J.K group took initiative, started in may 2004 has made 6900 citizens of the country literate. Today, another 700 are participating in learning session in 30 groups at 10 different locations in different six local languages viz.
Tamil, Telugu, Kannada, Oriya, Gujarati & Hindi, under the guidance of our plants’ local management. The company has target for the year 2009 which 3000 plus. The various place where classes are taken are J Central Pulp Mills at Songadh in Gujarat], Lakshmi Cement in Sirohi Rajasthan, J K sugar nr. Barielly, Fenner [ Hyderabad & Madurai], J K agri in Hyderabad. For this company use the software developed by M/s TCS at the locations. The photograph shows a class in progress in a village near Hyderabad, organized by J K agri.K Tyre [ Banmore nr. Gwalior, Vikrant in Mysore, Kankroli in Rajasthan], J K paper [Rayagada in Orissa &
Prevention Of Hiv / Aids : Focus on Outside Community
Mainly truckers and their helpers who are highly attacked by the disease HIV/AIDS. Looking at this scenario J.K tyre started in November 2005, and is supporting three clinics in situated at National Highway at Indore, Dhanbad, and Vishwa karma Nagar. J K Tyre supports the work being done by Melinda & Bill Gates Foundation in collaboration with TCI Foundation.
Awareness is the main objective of the project so that people should use preventive measures. In ‘Infotainment Melas’ which are held near the clinics company also participate , in these mela’s entertainment is combined with spreading message.
Despite of 3 clinics run by TCI foundation and supported by JK tyre , one clinic named “JEEVAN KIRAN” which is fully financed by JK tyre has been opened in Nov 2007 at Transport Nagar, Jaipur and 2nd clinic at shahpura on NH-8, which 70 Km short of Jaipur on way from Delhi on 25th May 2008. It’s day-to-day operations are controlled and managed by NGO called, “Vatsalya”.
Till now , in all five clinics more than 39000 persons have been attended to for ailments, of which 9590 were treated for STI’s [sexually transmitted infection] and rest for general ailments. Suspected cases were referred to government centres.
Prevention Of Hiv / Aids : Inhouse , Focus on Our Employees
JAN 2008 = MOU signed ; between ILO [Internationaal Labour Organization] for helping us in this endeavour ; also a 2 hr presentation was made to group of Sr executives by ILO.
March 2008 = J K TYre HIV /AIDS POLICY was announced & has been widely disseminated. Four pillars of this policy are : AWARENESS, NON-DISCRIMINATION, CONFIDENTIALTY & CPOLLABORATION.
APRIL 2008 = among employees a survey was carried out at all the location to assess the level of knowledge on the subject by an outside agency.
MAY 2008 = among the employees training of 31 master trainers by ILD took place who will address the other employees for 2 hour awareness session at all location.
By the starting of July 2008, approximately 7000 employees took part in the 2 hour awareness program addressed by the Master trainers/Peer Trainersand this was highly appreciated by the workers and unions.
HIV / AIDS, As additional initiative in 2008 for Observing WORLD AIDS DAY
ON 1st December 2008 Company joined TCI foundation in observing the WORLD AIDS DAY at 13 locations across India [Delhi, Kanpur, Ghaziabad, Agra, Varanasi, Jaipur, Indore, Nagpur, Pune, Dhandbad, Jamshedpur, Hyderabad, Bangalore]
The function called Truckers ‘Utsav’ was attended by 22000 truckers which combined awareness generation with entertainment. Many invitations went out in transport community with J.K tyre logo. JK tyre also facilitates their products and banners and speaks few minutes about the company on the mike.
What is tyre?
Review of literature
What is Tyre?
“A tyre is just black and round with hole in the middle. Actually, it’s a complex piece of high technology that is essential for the passenger safety and the efficient running of the vehicle. It’s a composite product. A tyre is a composite product that is, an inseparable assembly of materials with very different properties, whose manufacture demands great precision.”
Structure of Tyre
· Tread is that part of which comes into contact with road. It provides high grip, longer life durability and protects carcass.
· Steel belt also protects carcass and provides stiffness to tread.
· The work Spiral layer contributes to high durability and manoeuvrability.
· Shoulder being thickest part of the tyre it saves the carcass from outer shocks and damages.
· Side wall being most flexible protect the carcass and provides comfortable ride to the driver.
· Main body of the tyre is ply cord, it’s that which manages inflation pressures and endures load and road shocks.
· Bead filler contributes in the high durability as well as manoeuvrability.
· A bead wire is that part which hold tyre on rim.
· Heat generated due abrasion of bead and rim flange id protected by chafer.
NOTE: Construction of tyre may vary with size and pattern.
Maintenance of tyre
Maintenance of tyres is very essential to obtain the best performance. Following steps should be followed for proper maintenance of tyres-:
Proper tyre mounting and de-mounting
· New tube should be used with new tyre.
· It should be kept in mind that tyre and tube are of same brand.
· Combination of tyre and rim should always be correct.
· Rim should be dirt and rust free and no bend should be there on the rim.
· It should check that rim valve is smooth and round.
· Before the tube is placed in the tyre, it should be cleaned the properly.
· Mounting machines should used as much as possible and use of hammers and chisel should be avoided.
· Ensure that before mounting and de-mounting tyre beads are lubricated.
· Before inflating the tyre, ensure that tyre beads are seating correctly on rim or not.
An un-balanced tyre may cause vibration. So it is very important. Balancing of tyre should be done under following circumstances-:
· When vehicle covers 5000 Km
· If vehicle is coming across any vibration
Tyres must be rotated if any defect is found or vehicle have covered the distance of 5000 Km. First tyre rotation is very important as it sets stage for long and even for tyre wear.
· Proper wheel alignment should be maintained of the vehicle.
· It should done when ever required or after every 5000 Km.
Daily tyre check
Every morning before starting the vehicle, tyres should be properly checked. If the damages are exposed in the tyre, it should be cha
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