A SUMMER TRAINING PROJECT REPORT

ON

A study on retailers perception on Break shoe

and Clutch plate by SPARK MINDA
SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF
DEGREE OF MASTER IN BUSINESS ADMINISTRATION 2014-16

UNDER THE GUIDANCE OF:

Ms./ Mr./ Dr./ Prof. BUSHRA

Assistant Professor/ Associate Professor/ Professor, RDIAS
SUBMITTED BY:
NITISH BEDI
ROLL NO.10980303914 BATCH NO. 2014-16

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES

An ISO 9001:2008 Certified Institute

NAAC Accrediated :A ,Category A+ Institute
(Approved by AICTE, HRD Ministry, Govt. of
India)
Affiliated to Guru Gobind Singh Indraprastha
University, Delhi

2A & 2B, Madhuban Chowk, Outer Ring Road,

Phase-1, Delhi-110085

Table of Contents
Student Declaration i
Certificate from Company............ii
Certificate from Guide............iii
Acknowledgement.........................................................................................................iv
Executive Summary..v

A summary statement designed to provide a quick overview of the full length

report on which it is based.

List of Tables.vi
List of Graphsvii
List of Chartsviii
List of Abbreviations, if anyix
Page no.

CHAPTER- 1: INTRODUCTION
1.1 About the Industry
1.2 About Organization/ Company Profile

CHAPTER 2: LITERATURE REVIEW

2.1 Literature Review
2. 2 About The Topic

CHAPTER 3: RESEARCH METHODOLOGY

3.1 Purpose of the study

.....

3.2 Research Objectives of the study

..

3.3 Research Methodology of the study

3. 3.1 Research Design

......

3.3.2 Data Collection Techniques

3.3.3 Sample design

...

3.3.3.1 Population
3.3.3.2 Sample size

3.3.3.3 Sampling method

3.3.4 Method of data collection

..

...

..

3.3.4.1 Instrument for data collection

3.3.4.2 Drafting of a questionnaire

3.3.5 Limitations

CHAPTER 4: ANALYSIS & INTERPRETATION

4.1 Analysis & Interpretation .

CHAPTER- 5: FINDINGS & SUGGESTIONS

5.1 Findings ..
5.2 Suggestions......

CHAPTER- 6 : CONCLUSIONS
6.1 Conclusions
..

BIBLIOGRAPHY
Bibliography........

ANNEXURES (if any)

Annexures 1

STUDENT DECLARATION
This to certify that I have completed the project titled A study on retailers
perception on Break shoe and Clutch plate by SPARK MINDA under the guidance
of Ms BUSHRA in the partial fulfillment of the requirement for the award of the
degree of Master in Business Administration from Rukmini Devi Institute of
Advanced Studies, New Delhi. This is an original work and I have not submitted it
earlier elsewhere.

Name : NITISH BEDI

Enrollment No : 10980303914

CERTIFICATE FROM COMPANY

CERTIFICATE (From Guide)

This is to certify that the project titled ------- -------- is an academic work done
by ------------- submitted in the partial fulfillment of the requirement for the
award of the degree of Masters in Business Administration from Rukmini
Devi Institute of Advanced Studies, New Delhi. under my guidance and
direction. To the best of my knowledge and belief the data and information
presented by him in the project has not been submitted earlier elsewhere.

Dr./Ms.
Asstt. Prof./Associate Prof./Professor
RDIAS

ACKNOWLEDGEMENT
I offer my sincere thanks and humble regards to Rukmini Devi Institute Of Advanced
Studies, GGSIP University, New Delhi for imparting us very valuable professional
training in MBA.
I pay my gratitude and sincere regards to Prof./Dr./Ms BUSHRA, my project Guide for
giving me the cream of his knowledge. I am thankful to him/her as he/she has been a
constant source of advice, motivation and inspiration. I am also thankful to him/her for
giving his/her suggestions and encouragement throughout the project work.
I take the opportunity to express my gratitude and thanks to our computer Lab staff
and library staff for providing me opportunity to utilize their resources for the
completion of the project.
I am also thankful to my family and friends for constantly motivating me to complete
the project and providing me an environment which enhanced my knowledge.

EXECUTIVE SUMMARY
I have completed my project titled A STUDY ON RETAILERS PERCEPTION ON
BREAK SHOE AND CLUTCH PLATE BY SPARK MINDA after an in depth
analysis on automotive spare part industry of India.
In this project I have learned the current market position of SPARK MINDA in the
market by conducting a market survey from the retailers selling automotive spare parts
in Delhi. I did a primary data collection through questionnaire covering the sample of
60 retailers across Delhi. In that I collected the views of retailers towards current price,
quality and availability of products currently being offered by SPARK MINDA in the
market. I have also collected views of these retailers on whether they would buy the
BREAK SHOE and CLUTCH PLATE of SPARK MINDA when they introduce them in
the market.
In this report I have studied the current market buying behavior of retailers of spare
parts and I have analyzed that the retailers dont mind paying little more if they get a
good quality product from the company. From the responses that I have got from the
retailers it was clear that the retailers were happy with the quality being offered by
SPARK MINDA in their products. The retailers dont mind paying little high prices for
their products. The company has a high goodwill in the market because it offers good
quality and long lasting products to its customers.
I conclude that due to high goodwill of the company in the market , the retailers are
ready to purchase BREAK SHOE and CLUTCH PLATE that the company is planning
to
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CHAPTER 1
INTRODUCTION

INTRODUCTION TO INDUSTRY
The automobile parts and components industry has been exporting more than 10% of its output
for the last few years. In the year 1999-2000, industry has exported US$ million 396 versus US$
million 333 in year 1998-99. Principal export items include replacement parts, tractor parts,
motorcycle parts, piston rings, gaskets, engine valves, fuel pump nozzles, fuel injection parts,
filter & filter elements, radiators, gears, leaf springs, brake assemblies & bearings, clutch
facings, head lamps, auto bulbs & halogen bulbs, spark plugs and body parts.
India has a good network of manufacturers of Auto components and spares spread all over the
country. These component manufactures also manufacture all kinds of parts for all Indian
vehicles apart from Japanese, German & Continental Vehicles. They have the capability to
design as per client's specification / drawing to provide them quality service.
International standards are also kept in mind while producing these products. Best quality
materials are used so as to meet the international standards. The list varies from Alternator
Assemblies, Alternator Stators Coils, Alternator Rotors/Coils, Alternator Rectifiers, Alternator
Regulators, Alternator Carbon Brushes, Alternator Vaccum Pump, Blades, Alternator Plastic
Insulators, Starter Assemblies, Starter Armatures, Starter Components, Electronic Relays, Timer
Relays, Signal Flashers, Heater Glow Plugs, Tie Rod Ends & Ball Joints, Engine Mounting,
Suspension Rubber Bushing, Clutch Plate & Covers Assy, Gaskets, Radiators, Universal Cross
Assembly, Couplings, Propeller Shaft Assy, Fly Wheel Ring Gears, Brake Parts, Nut & Bolts,
Jacks, Bearings, Plastic Gears, Bearing Housings, Wheel Spanners, Filters (Oil, Air, Fuel), Diesel
Pump Parts, Automobile Acessories like Wheel Caps, CarSpeakers, Fog Lights, Car Care
Products, CAR AC PARTS, Car AC Condenser, Car Cooling Coil, Car AC Hoses, Car Receiver
Drier, FLCD Kit and Car Batteries.
The Indian automobile in striding inroads into the rural middle class after its inroads into the
urban markets and rural rich. It is trying to bring in varying products to suit requirements of
different class segments of customers.

ACMA
The Automotive Component Manufacturers Association of India (ACMA) is the nodal agency
for the Indian Auto Component Industry.

It's active involvement in trade promotion, technology up-gradation, quality enhancement and
collection and dissemination of information has made it a vital catalyst for this industry's
development. It's other activities include participation in international trade fairs, sending trade
delegations overseas and bringing out publications on various subjects related to the automotive
industry.
ACMAs charter is to develop a globally competitive Indian Auto Component Industry and
strengthen its role in national economic development as also promote business through
international alliances.
ACMA is represented on a number of panels, committees and councils of the Government of
India through which it helps in the formulation of policies pertaining to the Indian automotive
industry.
For Exchange of Information and especially for co-operation in trade matters, ACMA has signed
Memoranda of Understanding with its counterparts in Australia, Brazil, Canada, Egypt, France,
Germany, Iran, Italy, Japan, Malaysia, Pakistan, South Africa, South Korea, Spain, Sweden,
Thailand, Tunisia, Turkey, UK, USA and Uzbekistan.
ACMA represents over 700 companies, which contributes more than 85% of the total auto
component output in the organised sector. In the domestic market, they supply components to
vehicle manufacturers as original equipment, to tier-one suppliers, to state transport
undertakings, defence establishments, railways and even to the replacement market. A variety of
components are being exported to OEMs and after-markets world-wide.
ACMA is inseparably linked with the auto component sector and hence forms the channel
through which business contacts are established with the Indian Automotive Industry.
ACMA is an ISO 9001:2008 Certified Association

COMPANY DESCRIPTION

Spark Minda, Ashok Minda Group is one of the leading manufacturers of Automotive Components
in India. It is engaged in the manufacture of Mechanical and Electronic Locks, Door Handles,
Immobilizers, Key-less Entry Systems, Connectors, Controllers, Sensors, Instrument Clusters,
Plastic Interiors, Windows Regulators, Keys & Key Duplicating Machines and Die Castings Parts
and caters to leading two, three, four-wheeler and off road vehicle manufacturers in India and
overseas including, Europe, CIS Region, ASEAN countries.
The Group has 32 plants in India and overseas including Indonesia, Vietnam and Germany with
office in Japan and a logistics centre in Netherlands. The turnover of the Group was INR 3,000 Cr
/ USD 500 Mn for 2013-14.
With multiple businesses, several Joint Ventures, and a global footprint the need was felt for an
apex entity that could provide leadership and direction to the group, with a focus on the future.
Minda Management Services Limited (MMSL) is the culmination of such an organization.
Established in April 2007, MMSL has emerged as a powerful entity of professionals providing
thought leadership and direction to the Group in the key strategic areas of Strategy, Marketing,
Finance, Legal, Projects, HR, Business Excellence and Communications with office in Gurgaon,
India and a design and marketing office in Japan.
Today MMSL is extending its support to Group Companies to achieve the vision of the Group and
undertaking various activities such as Systems, Policies & Strategy development, financial support,
competence building and enabling them to expand and consolidate growth. Mr. Ashok Minda heads
MMSL in the capacity of the Group Chief Executive Officer. In its short existence MMSL has
enabled the Spark Minda, Ashok Minda Group companies to move higher up the value chain,
implement advanced processes, latest technology, and a wider global visibility.

HISTORY
2013

Introduced foldable key in India with integrated remote to OEMs.

Supply of patented magnetic shutter started to ASEAN

2012

One patent filed by security systems for making a total number of 13

New Plant of security system was set up in Chennai.

2011

Two patents filed for making a total number of 12 for security systems & 2 for plastic
interiors.
SAP Implementation in all Units
Acquired Electronics ESS Business for After Market from Minda Valeo
Production of Interior Plastics in India started

2010
Two Patents Filed by Interior Division making a total number of 10
Platinum Trophy from ACMA for Technology Excellence was received
Commencement of Interior Division
New Plant set up in Pune
2009

Acquired Die Casting Business at Greater Noida & Pune

Acquired Surface Finishing Business
Business of E Bike controllers with TAA from NEC corporation, Japan was started

2008

Door System business with TAA - Castellon, Spain was Started

2007

Four wheeler division hived off into a separate company - Minda Valeo Security Systems
Pvt. Ltd.
Company renamed as Minda Corporation Ltd.

2006

First patent in Mechanical Security Systems filed

2005

New Plant set up in Pune

2004

Establishment of Manufacturing Plant in Aurangabad

Capacity increased to 20 Million locks / Annum

2003
Major re-layout Completed in a drive towards lean Manufacturing
2002

Operations Consolidated at single Location

Supply of Electronic Security Systems to Two & Four Wheeler OEM's Initiated

ISO 14001 certification Obtained

Inauguration of Exports Division
Exports of Two Wheeler Locksets to European Manufacturers Started
2001

Commencement of Electronic Division

Joined CII - ACT Cluster Project for Productivity & Quality Improvement
Q.S. 9000 Certification Obtained

1999

ERP Implemented
Introduction to RAPID tooling for faster development of parts
ISO 9001 Certification Obtained

1997

Capacity increased to 14 million locks / Annum

Exports for Mercedes Benz Started
Design from Concept

1996
Development of Solid / Surface Modeling capability
1995

Joint Venture formed with Huf Hlsbeck & Frst GmbH & Co. KG
Introduction to Four wheeler Locksets

1994
Introduction to Auto CAD for product design
1989

Commercial Production started for Two Wheeler locks

1985

Minda Corporatation Ltd. commences operation under the name of Minda Switch Auto
Pvt. Ltd. and started manufacturing Ignition Switches for Indian Automotive Industry

COMPANY

PROFILE

Minda Corporation Limited is a diversified company with a product portfolio encompassing from
Mechanical & Electronic Security System, Door System, Electronic Controllers for Electric
Vehicles, Plastic Interiors for Auto OEMs across the Globe. It also manufactures, Die Casting Parts
for auto and consumer durable industries.
Minda Corporation Limited is one of the largest suppliers of Electronic & Mechanical Security

Systems to 2 wheeler, 3 wheeler and Off Road vehicles. It exports about 20% of its products to
USA, UK, Europe & South East Asia and ASEAN countries.
It is the only company in India to have its own patented Magnetic Shutter for 2 wheeler application.
To enhance the vehicle security it manufactures Lock sets with conventional keys, 2 track keys, 4
track keys & Snake Biting keys for 2 wheeler applications.
The company designs & manufactures Immobilizers for 2 wheeled vehicle applications and also has
patent for the Immobilizer application for vehicles operating with drained or no battery condition.
Orbital Australia Pty. Limited supports in the design of the products for its global customers.
To provide German technology at Indian price to Indian Auto OEMs, Minda Corporation Limited
has set up its Plastic Interiors manufacturing operations with support from its Group companies in
Europe.
This company has its own Die Casting Division, which develops Aluminum & Zinc Die Cast parts
not only for Captive consumption but also for other Tier 1 & OEM customers in India and abroad.
It is having Pressure Die Casting as well as Gravity Die Casting Technologies. The Division also
has excellent facilities for Machining & Powder coating of the components.

RESEARCH AND DEVELOPMENT

Minda Corporation Limited is a company which has grown with the technology. The company has a
separate focus on developing new products and has a special cell which is working day & night to
develop new technology products for its customers.
A team of 75 engineers are working on Mechanical & Electronic Security Systems, Door Systems
& Window regulators, Electronic Controllers & Plastic Interiors.
The engineers are trained all over the world and have an ability to design new products. Latest
technological advancements are tracked & the products are benchmarked with the best in the class
products. The design teams of the Group companies in Germany & Japan very much integrated
with our design team.
The R&D not only works for its Indian operations but also develops products for its manufacturing

companies in Indonesia & Vietnam.

The Company is very sensitive to IPR and has a cell which continuously keeps track of the
happenings in the globe. Minda Corporation Limited has filed 10 patents on Magnetic Shutter
technology and Immobilizers & 2 patents on Plastic interiors. Some of the patents are applicable in
Indonesia, Vietnam, Phillippines, Thailand and Japan besides India. Two (2) patents have been
granted to Minda Corporation Limited.
The R&D team jointly undertakes certain development projects with premium technical institutes in
India and also has Japanese advisors on its panel to help it update on technology front & be a
market Leader.

MANUFACTURING
Minda Corporation Limited was the first company in the Minda Group to establish and develop the
robust Minda Manufacturing Systems which have been imbibed across the manufacturing plants of
the Minda Group of companies.
The best practices like Kaizen, VSM, Poke-Yokes, Cellular manufacturing, Piece Flow etc are
implemented throughout its plants.
The State of the Art testing & validation equipment is installed at Minda Corporation Limited, to
make it self sufficient to test & validate the vide range of the products manufactured by it. The
company also has its own Standards Laboratory for calibrating its equipment from time to time.
Quality & Standardization is given the importance at Minda Corporation Limited. OEM's in India
respect Minda Corporation Limited for its quality levels across all products.
All Plants of Minda Corporation Limited are ISO/TS 16949, ISO 14000 certified. The Pant Nagar
plant also OHSAS certified.
TPM activities are in place at its Pune & Pant Nagar plants.

CORPORATE ADDRESS

Noida
D-6-11,Sector-59,
Noida - 201301
Distt. G.B. Nagar U.P. (India)
Tel: +911204787100
Fax:+911204787200
Email : infoonweb@mindacorporation.com

GROUPS MISSION
Our mission is to be an manufacturers automotive system solution provider and build a brand
recognized by vehicle progressively all over the world, as an organization providing products and
systems unparalleled in quality and price

GROUPS VISSION
To be a dynamic, innovative and profitable global automotive organization for emerging as
the preferred supplier and employer, to create value for stakeholders

GROUPS VALUES

Passion for excellence

Nurture talent, competency & willingness
Respect and humility

CORE PURPOSE
To be a happy, inspiring and proud place to work, setting benchmarks and delivering products
that give customers an edge in their businesses.

AWARDS AND RECOGNITION

During the year under review, the company has been conferred with various awards and
recognitions for its performance at different levels. These awards include the following:
1. Pantnagar Unit has won the prestigious BAL TP, Excellence and BAL Q Super
Platinum award from BAJAJ Auto Limited.
2. Security Division, Greater Noida has been conferred the Commendation Award for QCID.L. Shah National Awards on Economics of Quality in Manufacturing Sector. The
Award was given at the 7th National Quality Conclave held in 2012.
3. The company won the Gold Award in the category of development of new Products
from India Yamaha Motor Private Limited.
4. The Lakshay Quality Circle team from security division of Minda Corporation ltd,
Greater Noida won the Gold category award in chapter convention on Quality Circle
(CCQC) -12 competition.
5. During 52nd Annual Session and National Conference of ACMA held on September 2012
at New Delhi, security division, Noida, has been honoured with Bronze medal by
Automotive Component Manufacturers Association, India (ACMA) for excellence in
technology for the year 2011-2012.

GLOBAL PRESENCE
The group has a strong presence in India as well as the international market. It has its plants in
the following market:

INDIA
VIETNAM
INDONESIA
JAPAN
RUSSIA
POLAND
GERMANY

In India the plants are located in:

BAWAL, GURGAON (HARYANA)

NOIDA, GREATER NOIDA (UP)
PANTNAGAR (UTTRAKHAND)
AURANGABAD
PUNE, MUMBAI (MAHARASHTRA)
PITHAMPUR (MADHYA PRADESH)

 CHENNAI (TAMIL NADU)

PRODUCT PORTFOLIO
CATEGORY

PRODUCTS

Safety, security and restraint Systems

Electronic & mechanical security systems; Ebike controllers; window regulators; Door
checkers; key (Mechanical & electronic); die
casting-Zn, Al & Gravity

Plastic Interior Systems

Kinematics; premium surfaces and interior

module ; dashboards consoles; air vent; air duct;
ash tray; arm rest; cup holder; fender; cylinder
head cover; glove box; underhood cover; air
louvers ; coupling; transmissions; fans; coolant
tanks; interior steering; spare wheel wells;
engine

encapsulation;

frontend

carrier;

underbody lining; seat components; battery

mount
Driver information and telematics systems

Wiring harness, connectors, terminals, fuse box,

cable ties

Security Systems

Plastic interior

Plastic interior
CUSTOMERS OF MINDA CORPORATION LTD.
MINDA has both domestic as well as global automotive customers. Minda Corporation is
supplying security systems, die casting, interiors, and door systems to these customers. The
company has plan to increase business in global market in various countries like U.S. ,
EUROPEAN COUNTRIES, ASIAN COUNTRIES etc.
DOMESTIC CUSTOMERS ARE:
BAJAJ
FIAT
FORD

MARUTI
SUZUKI
TATA
HYUNDAI
JCB
YO BYKES
ULTRA MOTOR
LML
SKODA
BOSCH
TVS
YAMAHA
MAHINDRA
GENERAL MOTORS

INTERNATIONAL CUSTOMERS ARE:

HONDA
APRILIA
PIAGGIO
PEUGEOT
KAWASAKI
TRIUMPH
SUZUKI
YAMAHA

MANAGEMENT TEAM
Corporate :
Mr. Sanjay Aneja

CFO

Mr. Sudhir Kashyap

Executive Director & CEO

Mr. Hardeep Singh Arora

Chief Technology Officer

Mr. Praveen Kumar Dhawan

Head Corporate Business Development

Mr. Rajeev Khanna

Head Corporate International Business

Security Division
Corporate :

Mr. Devender Singh Mehra

Head Corporate Engineering

Mr. Bhaskar Kumar

Head Corporate Supply Chain Management

Mr. Sanjeev Kumar Singh

Head Corporate HR

Mr. J.K. Gupta

Head Corporate F & A

Mr. Ajay Kumar Sharma

Head SBU (Noida)

Mr. Sumit Doseja

Head SBU (Pant Nagar and Chennai)

Mr. V. Srinivasan

Head SBU (Pune)

Mr. Ashim Vohra

President- Die Casting Business

Mr. Anil Chore

Head Marketing

Mr. Ajay Kumar

Head Financial

Security Division SBU

Heads :

Die Casting Division:

Die Casting Division SBU (Heads) :

Mr. Amit Jalan

Head SBU (Greater Noida)

Mr. Maghshyam J Vibhandik

Head SBU (Pune)

Mr. Sanjay Thapar

President Plastic Business

Mr. Amitabh Mathur

Chief Executive Officer

Mr. Rajesh Sahasrbuddhe

Head SBU Operation

Mr. Kuldeep Verma

Head Supply Chain Management

Mr. Vijay Patil

Head Marketing

Mr. Pankaj Gupta

Head Finance

Plastic Division :

Mr. Manu Madhav

Head SBU Engineering

COMPETITORS OF MINDA CORPORATION LIMITED

JAY USHIN
JAY INDUSTRIES
SANDHAR LOCKING DEVICES
HUF INDIA

CHAPTER 2
LITERATURE REVIEW.

Report on spare parts for automotive market

The objective of the investigation. The conclusions of the report.

The object and the scope of the investigation

In February 2009, through the Order no. 69 of the President of the Competition Council, a sector
inquiry on the market for motor vehicle spare parts was opened, under Article 26 of the
Competition Law no. 21/1996, as amended.
The investigation was carried out by the competition authority using a proactive monitoring tool
for markets, through which a comprehensive analysis and the assessment of the competition is
conducted on the national market.
The sector inquiry aimed at identifying the mechanisms of the market, in order to identify and
correct any flaw on competition.
To achieve this objective, a market research was carried out at the national level, in this sector:
vehicle manufacturers, parts dealers, automobile dealers, service units (repairers). In addition,
insurance companies were surveyed.
Another activity, not less important than the market research, was the identification and the
analysis of the legal framework specific to this sector.
During the investigation a survey among consumers was conducted. The questionnaire contained
15 questions and was available online for approx. 3 months on the Competition Councils
website. At the end of the period allocated to the survey, 646 responses belonging to private
individuals were validated. Results are presented in a distinct chapter of this Report.

The main conclusions resulted from the analysis on the spare parts for automotive market and the
proposals of the investigation team are discussed below.

The conclusions of the Report.

1.

The spare parts market is a low concentrate market. (The degree of market concentration,

HHI =463/2010)

The spare parts for automotive market is a market on which thousand of firms are activating.
Auto spare part dealers hold about three-quarters of the value of sales of the spare parts estimated
for 2008-2010 (the dealers share is rising up from year to year). A total of 11 traders were
holding in 2010, almost one third of the turnover estimated for the entire market (rising up from
one quarter, in 2008). However, after application of Herfindahl-Hirschman Index, which is
measuring the market concentration, it was shown that the spare parts market is

weakly

concentrated. Based on 23 known market shares (of the largest traders and dealers in the market)
and the (very relaxed) hypothesis that the rest of the firms are holding less than 5% market
shares, an upper limit of the HHI was estimated. For each of the three years (2008, 2009 and
2010) an upper limit of the HH Index below 500 resulted.
It is worth mentioning that this degree of concentration is estimated for the entire market. In a
particular case, given the criteria for defining the relevant market (segmentation of the spare
parts in original and non-original parts, as well as their sub segmentation according to the car
brand) and given that a replacement part is in itself a distinct market, not being interchangeable
with another, the market shares can differ significantly (e.g., if parts have visible origin, for
which legal protection is granted under the patents law on models and drawings, monopoles can
exist.).

2.

Competition Council proposes to amend national legislation with respect to the design

protection by introducing a "repair clause" in order to open the competition on visible spare part
market. The proposal is addressed to the Ministry of Economy, Trade and Business Environment,
ministry to which the State Office for Inventions and Trademarks is under its authority, the sole
authority which insures the protection of drawings and models.

The protection of drawings/ models

Under the Directive 98/71/EC (transposed into Romanian legislation by Law nr. 129/1992 with
subsequent amendments), the design or industrial model which meets certain conditions is
protected for one or more periods of five years, with the possibility of extending it to up to 25
years from the date of filing the application. The main purpose of the drawings and model
protection is to grant exclusive rights to the appearance of the product.
Automotive sector is the most affected by the Directive. According to ECAR , in 2005, in EU-27
there were approx. 260 million cars in need of maintenance and repair. Market for repairs, also
called the secondary market, was worth approx. 84 billion Euros, of which nearly 44 billion were
parts.
Repair clause
Repairs clause stipulates that protection is not provided for a drawing or model which is one
piece of a product used in repairing of a complex product in order to restore its original
appearance.

! Repair clause is applicable only to visible parts (in automotive sector, may be body parts,
lighting units, car windows) on the secondary market (replacing parts market) from the moment
that the complex product (the automotive) is traded on the primary market (market of primary
manufacture of the components) by the right holder or with his consent.

The repair clause provides to the auto manufacturers the design protection, the exterior aspect of
their components (on the primary market) and fully support for their core business- production
and sales of new cars. Extending protection to the parts that replace the original parts, for
repairing, results in unjustified monopoly of the car manufacturers on the secondary spare parts
market.
Liberalization of the spare part market
It is necessary to amend national legislation on the protection of drawings and models because its
current form allows the extension of the protection given to the parts from the primary market on
the secondary market as well. The result is the creation of a monopoly on the secondary market;
every car manufacturer became the sole provider of the visible spare parts for its vehicles. Thus,
only auto manufacturers as the right holders could produce and distribute this type of parts
within the Union Europe. As these parts are for a particular model only and are not
interchangeable with other automotive parts, competition is completely excluded.
Introduction on the Romanian market of some visible parts of poor quality and unsafe for the
consumer, after the opening on the spare parts market, would be supervised by the national
technical body R.A.R. which is responsible for approval/ certification of the used products on
road vehicles. R.A.R. could refuse certification, sale or utilization of the road vehicles, if the
parts present a serious risk to the road safety or harm significantly the environment and/ or the
public health.
Changing domestic legislation is permitted to the state members under ART. 14 of Directive
97/91/CE which contains a transitional provision that State Members maintain their existing laws
in this regard and change them only in the scope of liberalization of the spare parts market
exchange.
Observing that the Directive 98/71/CE does not ensure a smooth functioning of the internal
market with respect to the protection of the drawings/ models, the European Commission
proposed to amend it in September 2004. Commission underlined that, due to fragmentation and
uncertainty about development of Community rules on protection on drawings in EU, Europeans
do not know in which Member States are permitted or not the acquisition of certain spare parts
and are disadvantaged, in some parts of the Community, regarding to choosing between
competing parts. For the same reason, spare parts producers, especially IMMs, cannot use

economies of scale offered by a unique market and are discouraged from investing and creating
jobs. A sensitive issue derived from its current form of the Directive which requires urgent
resolution is the impact on the personal and moral integrity of the business people, considered to
be correct in countries where protection for spare parts does not exist and criminals in countries
where there is protection is grated for this type of parts.
By adopting Regulation No. 6-2002 on Community models and drawings, the European
Commission took a first step to remedy the shortcomings created by the current form of the
Directive. At art. 110(1), the Regulation contains a transitional provision by which protection is
not granted under the title of Community model or drawing or model which is part of a complex
drawing used to allow the repair of this complex product in order to restore its original
appearance (so-called repairs clause). Therefore, at the Community level, unlike some national
regimes, protection is not granted for the exterior aspects of the visible spare parts.
In December 2007, the European Parliament approved the European Commissions proposal on
modifying Directive by introducing repair clause. Moreover, according to the proposed
amendments, consumers will be adequately informed about the origin of the product used to
repair, so that they can choose, with full knowledge between the competing products choices
offered for repair.
The directive on amending Directive 98/71/EC on the legal protection of drawings and models is
still not applicable before it would be adopted by the Council of EU.
By this date, 10 State Members

have applied the transitional provision of the directive,

following up Commissions invitation to open its spare parts market.

Romania belongs to the states which extend the protection of the exterior appearance of the spare
parts. The consequence is that a car owner whose visible spare parts are protected is forced to
accept exclusively the use of the spare parts provided by the manufacturer of the car. In this way,
the consumer cannot choose and the competition on this type of spare parts market does not
exist.
3.

The Competition Council proposes that the sale of counterfeit products utilized on road

automotive, to be considered felony and not contravention. The actual provisions of O.G. nr.
80/2000 are not correlated with the law nr. 84/1998 on trademarks and geographical indicators.

The proposal is addressed to the Ministry of Transportation and Infrastructure, under which the
Romanian Automobile Registry is, authority and technical service for approval, certification and
supervision of introducing on the market of the new exploitation materials.
The provisions of O.G. nr. 80/2002 concerning the approval and certification of products and
exploitation materials utilized for road vehicles, as well as the conditions of their introduction on
the market, regarding the sanctions applied for sales of pirate/ counterfeit parts, do not correlate
with those provided for the same act, by Law nr. 84/1998 on trademarks and geographical
indications.
Thus, according to O.G. nr. 80/2000, marketing of pirated or counterfeit products constitutes a
contravention and in accordance to the Law nr. 84/1998 on trademarks and geographical
indications, counterfeiting of a trademark is an offence punishable by imprisonment from 3
months up to 3 years or a fine from 50,000 lei up to 150,000 lei.
The correlation of the provisions could have the effect of reducing the spare parts market
counterfeit, whose share is perceived by the industry to be about 30% from the total.

4.

Competition Council proposes the regulation of reconditioned parts. The proposal is

addressed to the Ministry of Transport and Infrastructure under whose authority the Romanian
Auto Register is placed, the authority responsible for technical service and for approval of
certification and supervision of introducing on the market of the products and new exploitation
materials.
Companies that sell remanufactured parts do not have to go through the procedure of approval/
certification for their marketing, such as those who are selling new parts, as defined in O.G. nr.
80/2000.
Thus, this category of auto spare part dealers enjoys an advantage in the marketing of parts
(because they are exempted from the steps of approval/ certification and payment of taxes to
RAR).

Furthermore, we must take into account the possible negative effect on final users (could be
major parts of the vehicle systems and use of other parts which are not certified could lead to the
change of the certified characteristics, with impact on traffic safety or environment).
According to R.A.R., reconditioned parts are not included in the product and new materials
operating category, which are subject to the provisions of the order of Ministry of Transportation,
Construction on Tourism nr. 2131/2005. The regulation does not contain legal provisions on
introducing on the market and sale of this type of part, but regulations that established the
methodology and conditions for authorization the methodology and the conditions for
authorization economic operators carrying out repairs, maintenance, adjustment, changes
construction, reconstruction of road vehicles and the dismantling of the disabled vehicles.
!It is important to underline that the retreaded envelopes previous to the first mounting after
retreading, but within the warranty period, unused, are considered new products.
Given that the reconditioning activity is similar to the retreading of tires, after which a product is
brought into a similar state to the original, it would need that the remanufactured parts to meet
the conditions and requirements applied in the case of any other product considered new on the
basis of any specified ordinance.
5. The appeal of the National Consumer Protection Authority regarding the abuse of the warranty
of the auto dealers: application of the rules on consumer protection and their informal
campaigns.
According to the car owners who had participated in the online survey conducted in
investigation, there are auto dealers that impose the buyer, by the contract of purchase, to make
all its repairs only at their auto dealership or suggest, from the moment of purchasing, that the
warranty is lost if they go to other than the network auto repairers.
The procurement contract between the dealer and final user is the responsibility of the NAPC,
the institution who is able to detect and sanction such abuses on the part of car sellers.
Almost three quarters of survey participants were forced to accept the use of the mark of auto
manufacturer in operations that are not under warranty service. The contracts between
automakers and auto dealers or between the manufacturer representative and the regional dealer,

received during the investigation, do not contain clauses by which the constructors require
exclusive use of their brands. In contracts is stated that they may use equivalent quality parts for
repairs not covered by the warranty.
Consequently, imposing the brand to the auto manufacturer is an abuse of dealers in relation to
their clients, the car buyers. The dealers, taking advantage of poorly informed consumers with
regard to what they could impose or not to the car dealer, are notifying the consumers verbally,
or by the purchasing contract, that it is necessary to use auto parts bearing the manufacturers
brand, even if the repairs are not subject to warranty and the cost is supported by the owner of
the car.
According to art. 10 a) of O.G. nr. 21/ 1992 on protection of the consumers, the freedom to
make decisions to purchase products and services without requiring unfair terms in contracts or
which may favor the use of unfair trade practices in sales, likely to influence their choice is a
consumer right when concluding contracts. Under the same ordinance, violation of this provision
is a contravention and it is fined from 2,000 to 20,000 lei.

6.

Intensification of R. A. R. control regarding the sale of spare parts resulted from

dismantling and counterfeit parts.

Although national legislation prohibits marketing for reuse the systems, equipment, spare parts
and technical entities concerning traffic safety, as well as the marketing for reusing the car body/
chassis of the vehicle removed from use, taught for dismantling, it appears that the marketing of
such parts is currently carried out unimpeded, with diverse offerings (including online) for auto
parts whose trade is prohibited by law. These facts are contravention and are sanctioned with a
fine by the R.A.R. staff.
Companies that have participated in market research conducted by the Competition Council
consider that the marketing of spare parts resulting from dismantling, as well as the counterfeit
ones are constituting a public danger and source of tax evasion.
Regardless the type of work they perform on the auto market (merchant-importer or not) car
dealers, repairers, car manufacturers), companies who responded to the competition authority are

considering that there exists counterfeit spare parts in the market to a considerable percentage.
The perception of the people who are active on the spare parts market is that the share of the
counterfeit spare parts in Romania is about 27%, way above the EU (10%).
7.

The simplification and the accessibility of the certification/ approval procedure of the

spare parts, applied by R.A.R. administrative barrier

The procedure for approval/certification of R.A.R. is considered by the importers of spare parts
an administrative barrier to market entry. They argue that the procedure is heavy, complex and
ambiguous.
Importers have indicated as the main issue the certification granted to an owner and not to a
brand. Therefore, R.A.R. does not certify that a product respects the legal provisions, but states
that an importer could sell that product, another importer with a similar product will have to
follow the same certification process of certification. Concerning this issue, in the discussions
with the R.A.R. representatives, they denied this thing. These different interpretations show that
there is a need for improvement and a clearing of the aspects of the processes used by the
technical authority in the field.
Another deficiency of the actual legislation on the approval/ certification raised by those
presented on the market is that, in the control process there is not sufficient information
regarding the certification agencies that R.A.R. would have or should have links in EU countries.
Therefore, even though a product is internationally approved in one of the European Union
member states, R.A.R. does not have this information and, consequently, it requires the importer
to prove the existence of such approvals. Even the importer would like to do this proof, the
information requested by R.A.R. are inconclusive (in the sense of the description of the
document to be presented, of the issuer for each country of the Union etc.).
Unclear legislation is invoked by the importers of tires (warranty conditions, limit use, etc.)
The presence on the market of the second-hand tires constitutes the most important matter which
needs to be remediated. According to traders, the commercialization of this type of envelopes is
not verified and the sellers have no warranty/ certification stating the fact that they could be used
in good conditions, with negative consequences for the final user and the road users.

Among the proposed solutions by the operators from the auto sector for improving the specific
legislation and to clarify certain aspects of interpretation, we mention:

The existence of a unique guide for regulations on trading of the spare parts activity so

that the RNTR technical norms be more appropriate structured and be more accessible to the
concerned subjects.

Simplifying the bureaucratic procedures concerning the approval/ certification process

and the involvement of RAR regarding the product certification for the purposes of their testing,
at the importers request.

Cooperation (information exchange) with the approval authorities/ bodies certification

from other states members of EU to obtain information on approved products in other states.
Conclusion on relationship between the insurer and suppliers/ approved repairs.
In order to identify the mechanism of the insurer- provider relationship agreed on parts and
respectively insurer- authorized repairer, during the investigation there were interviewed
insurance companies as well. Asked about the criteria for selection of the spare parts dealers with
which they collaborate, the companies mentioned that there are not imposed eligibility
requirements for the spare part suppliers. Any provider which operates in accordance with the
Romanian law may conclude a cooperation agreement. Following the required qualifications (IT
system of automatically interrogation of the database for marketed parts, nationwide, wide range
of auto parts, short delivery time) it is found that it could be performed by the spare parts
suppliers in the high and very high category, which have financial and logistic capacity.
According to the insurance companies, such collaboration aimed, primarily, the satisfaction of
the clients requirements, but also reduces car repair costs.
The most often reason invoked by the insurance companies to conclude agreements with units of
auto service is customer satisfaction (the insured), who will enjoy the repair made in priority
basis, and will take the vehicle in service immediately after the repair, without waiting for the
repair payment.
92% of the repairers who responded to the Competition Council during the investigation *
whether they are part of the authorized segment or not) have signed collaboration agreements

with insurance companies. The most common argument they have mentioned on cooperation
with insurers is the increased activity.
Although the repairers are complaining about the quality of the relationship with the insurer,
claiming delays in payment repairers made or the obligation to use in repairers only spare parts
delivered by approved suppliers, however, they continue working with that insurance companies
accepting the conditions set by mutual agreement, conventions or collaboration protocols.
The report is structured in 7 chapters and annexes, as follows:

Chapter 1 provides definitions, concepts, competition rules and regulations specific to the

automotive sector;

Chapter 2 is describing the evolution of spare parts automotive market;

Chapter 3 contains examples of previous decisions related to the definition of relevant

market;

Chapter 4 contains information on regulation for the protection of industrial design

(protection of the exterior design elements for cars);

Chapter 5 describes the role of the insurance companies in the auto sector;

Chapter 6 contains the results of the survey conducted among consumers;

Chapter 7 contains data and information about the national vehicle fleet on various

criteria (age, county/ region, fuel type).

Annexes.

CHAPTER-3
RESEARCH METHODOLOGY

INTRODUCTION TO RM

Marketing research is the function which likes the consumers, customers & public to
the marketer through information which is used to identify & define marketing
opportunities & problems, generate, refine & evaluate marketing action; monitor
marketing performances & improve understanding of marketing as a process.
It has following steps:
I: PROBLEM DEFINITION
II: DEVELOPMENT OF AN APPROACH TO THE PROBLEM
III: RESEARCH DESIGN FORMULATION
IV: FIELDWORK OR DATA COLLECTION
V: DATA PREPARATION AND ANALYSIS
VI: REPORT PREPRATION AND PRESENTATION

2.1

RESEACH DESIGN:

It is framework or blueprint for conducting the market research project. It specifies

the details of procedures necessary for obtaining the information needed to structure
and/or solve marketing research problem.

Research design broadly classified into two parts :

Exploratory Research
Conclusive Research

EXPLORATORY RESEARCH:

Exploratory research looks for hypothesis in well-established fields of study.

Hypothesis usually comes from ideas developed in previous researches or are
delivered from theory. Hypothesis is tentative answer to the question that serves as
guide for most of the research projects
It seeks to discover new relationships. All marketing research projects start with it.
This is a preliminary phase & is absolutely essential in order to obtain a proper
definition of problems at hand. The major emphasis is on the discovery of ideas &
insight.

CONCLUSIVE RESEARCH:

Conclusive research provides information that helps the executive so that he can make
a rational decision. This study has done well while attempting to arrive at a more clear
description of an apparent problem.

2.2 TARGET POPULATION:

The collection of elements or object that possess the information sought by the
researcher and about which inference are to be made Target population should be
defined in term of Element and Sampling unit.

ELEMENT:

Object that possess the information sought by the researcher and about which
inferences are to be made.

SAMPLING UNIT:

The basic unit containing the elements of the population to be sampled .

2.3 SAMPLE SIZE:

Sample size refers to the number of elements to be used in a study.
60 samples were used in sampling .

2.4 SAMPLING TECHNIQUES:

Sampling Techniques are of two types:
Non probability (non random)

Probability sampling (random sampling)

The sampling technique used in this research is Non - random sampling techniques in
which I have choose convenience sampling technique because it is least expensive and
least time consuming of all sampling techniques.
Convenience sample:
It is also known as "accidental" sample or "man-in-the-street" samples.

2.5 DATA COLLECTION METHOD:

The data collection process can be relatively simple depending on the type of data
collection tools required and used during the research. Data collection tools are
instruments used to collect information for performance assessments, self-evaluations,
and external evaluations. The data collection tools need to be strong enough to support
what the evaluations find during research. Here are a few examples of data collection
tools used within three main categories.
Secondary participation: Secondary participation require no direct contact to Data
collection tools used in personal contact observations are used ather information. It
involve:

Postal mail
Electronic mail
Telephone
Web-based surveys
In-person observations when there is face to face contact with the participants. Some
examples of this type of data collection tool would include:
In-person surveys used to gain general answers to basic questions
Direct or participatory observations where the researcher is directly involved with the
study group
Interviews used to gain more in depth answers to complex questions
Focus groups where certain sample groups are asked their opinion about a certain
subject or theory.

Case Studies And Content Analysis:

Case studies and content analysis are data collection tools which are based upon preexisting research or a search of recorded information which may be useful to the
researcher in gaining the required information which fills in the blanks not found with the
other two types during the data collection process. Some examples of this type of data
collection tool would include:
Expert opinions leaders in the field of study
Case studies previous findings of other researchers
Literature searches research articles and papers
I have used internet sites, previous year reports and newspapers for preparing the
project report.

CHAPTER 4
ANALYSIS
&
INTERPRETATION

Summary of the market

survey by Spark Minda

1. How many retailers sell spark minds products?

o Yes - 88.33%
o No 11.66%

Yes
NO

Interpretation:
Most of the retailers who filled the questionnaire sell spark
mindas products. And only few of them dont sell their
products because of their relative high price.
2. What products they sell?
o All 71.66%
o Specific 28.33%

ALL
Specific

Interpretation:
Among the retailers who sell spark mindas products , 71% of
them sell all their products and rest of them sell selective
products.

3. Availability of spark minda products?

Available
1 66.66%
2 30%
3 3.33%
4 0%
5 0%
Not available

1
2
3
4
5

Interpretation:
Almost every retailer have rated the availability of spark
mindas products on 1 and 2 that means that the products of
spark minda are easily available to them by the company
and 3.33% retailers have marked it as neutral.

4. Pricing of spark minda products?

Yes 58.33%
No 41.66%

Yes
No

Interpretation:

Out of the 60 retailers who have filled my questionnaire,

almost 59% of them happy with the current pricing of spark
minda products, and rest 41% consider the products to be
high priced.
5. Which brand of break shoe do the retailers sell?
ASK 100%
Others - 0%

ASK
Others

Interpretation:
All the retailers sell break shoe of ASK brand because of
its good quality and market dominance.

6. Which brand of clutch plate do the retailers sell?

Makino - 100%
Others - 0%

Makino
Others

Interpretation:
All the retailers sell clutch plate of MAKINO brand because of
its good quality and market dominance.
7. How much quantity of break shoe and clutch plate do
the retailers sell?
0-50 35%
50-100 26.66%
100-150 3.33%
150+ - 3.33%
NA 31.66%
0-50
50-100
100-150
150+
NA

Interpretation:

There were different quantities of break shoe and clutch

plates being sold by the retailers. Out of the sample of 60,
35% of retailers sell 0-50 quantity
26% of retailers sell 50-100 quantity
3% of retailers sell 100-150 quantity
3% of retailers sell 150+ quantity and,
32% of retailers marked it as not applicable.
8. What should be the price of break shoe and clutch
plate by spark minda?
Same 56.66%
Low by 5-10% - 38.33%

Low by 10-15% - 5%

Same
Low by 5-10 %
Low by 10 %

Interpretation:
On being asked about the price that spark minda
company should set of their break shoe and clutch
plate,
56% of the retailers said it should be the same as of
existing break shoe and clutch plate in the market

38% of the retailers said it should be less than 5-10% of

the existing prices of break shoe and clutch plate in the
market
5% of the retailers said it should be less than 10-15% of
the existing prices of break shoe and clutch plate in the
market

CHAPTER 5
FINDINGS
&
SUGGESTIONS

FINDINGS: On the basis of above we can derive the following findings

Almost every respondent out of 60 were happy selling spark mindas
products.
Those retailers who are selling spark mindas products are happy with the
quality of the products.
The reason for few retailers to not sell spark mindas products is their
relative high price of products as compared to other competitors.
Most of the retailers sell spark mindas products because of it good quality.
Most of the retailers sell all the products of spark minda.
Products of spark minda are easily available to retailers in the market.
Products of spark minda are well priced.
ASK is the current leader of manufacturing break shoe in the market.
MAKINO is the current leader of manufacturing clutch plate in the market.
Most of the retailers sell 0-100 monthly qquantity of break shoe and clutch
plate.

 Most of the retailers said that if spark minda launches break shoe and clutch
plate then its price should be the same or should be less than 5% than the
current market price of break shoe and clutch plate.
All the retailers said that they will start selling break shoe and clutch plate of
spark minda only when it is well priced with good quality.

SUGGESTIONS: After conducting an in-depth analysis of

Amways various marketing strategies in India, I would
like to suggest a few suggestions

In order to make more customers, company should cut down the prices of its
products by 5-7%.
The company should provide attractive schemes for retailers so that they
willingly purchase its products.
The quality of break shoe and clutch pate to be introduced should be above
the existing leaders in the market.
The salesperson should often visit the retailers to ask whether they are
getting the schemes provided by the company or not because most of the
times the wholesalers do not forward the schemes to the retailers.
The salesperson should regularly be in touch with the retailers.

CHAPTER 6
CONCLUSIONS

CONCLUSION:

For conducting a market survey of spark minda company from the

retailers of automotive spare parts in Delhi region about the

existing position of spark minda in the market and also whether

the retailers will purchase 2 new products that the company will
launch in the near future I have made a questionnaire involving
several questions regarding companys current products, their
pricing, their availability, their quality and I have also included
question about the 2 new products that the company are wiling to
launch in the market i.e BREAK SHOE and CLUTCH PLATE.
After getting the questionnaire filled up by the retailers I have
come up to the conclusion that:

The company is placed at the top in ranks in the market for

the products it is offering.
They provide the best quality in the market.
The pricing of their products are little on a higher side.
The retailers purchase their products at higher price only
because of best quality.
The retailers are satisfied with the availability of the products
to them.
The retailers are happy as they are frequently visited by the
companys sales person.
All the problems faced by the retailers are quickly solved.
The retailers are willing to purchase the new products being
launched by the spark minda that is BREAK SHOE and
CLUTCH PLATE because it has companys name attached to
it.

 The retailers are of the point of view that any product

launched by spark minda will be a great success in the
market because of the brand image of the company in the
market.
The company has a high goodwill in the market because of
its quality products.

Annexure 1

QUESTIONNAIRE

Market survey from Spark

Minda
For Retailers

Q1.Do you sell Spark minda's products?

YES
NO

Q2.What products of spark minda do you sell?

Q3.Views on availability of spark minda's products?

Easily available
1
2
3
4
5
Not available

Q4.Are the products well priced?

YES
NO

Q5.Who is the current leader of manufacturing break shoes and clutch plates in the market?

Q6.Which brand of break shoe and clutch plate do you sell?

Q7.How much monthly quantity of break shoe and clutch plate do you sell?

Q8.In relation to the current competition of brake shoes & Clutch plates, what all new
improvements you want us to make?

Q9.What should be the price of our break shoe and clutch plate?

Q10. What schemes are given to you by the manufacturers of break shoe and clutch plate?